Company: HGBL
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038691
Chunk: 86

Company: Heritage Global Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1B
Chunk 86
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 million or approximately 22%. The decrease in gross profit in the current year is primarily due to a significant one-time principal auction transaction in our Industrial Asset Division in the first quarter of 2023, as well as decreased volume of transactions within our Brokerage segment as compared to 2023. 

Selling, general and administrative expense – Selling, general and administrative expense was $24.3 million in 2024 as compared to $26.0 million in 2023, a decrease of $1.8 million or 7%. As compared to 2023 there was a decrease in selling, general and administrative expense during 2024 primarily due to decreased compensation expense as a result of lower performance in certain operational segments. 

Significant components of selling, general and administrative expense were as shown below (dollars in thousands):

19

    Year Ended December 31,

    2024

    2023

    % change

    Compensation:

    Auction and Liquidation
     
    $
    5,714

    $
    6,502

    (12
    )%

    Refurbishment & Resale

    2,413

    2,314

    4
    %

    Brokerage

    5,185

    6,217

    (17
    )%

    Specialty Lending

    1,483

    1,030

    44
    %

    Corporate & other

    2,228

    2,357

    (5
    )%

    Stock-based compensation

    1,253

    776

    61
    %

    Board of Directors fees

    401

    322

    25
    %

    Accounting, tax and legal professional fees

    1,558

    1,421

    10
    %

    Insurance

    590

    540

    9
    %

    Occupancy

    1,263

    1,285

    (2
    )%

    Travel and entertainment

    603

    831

    (27
    )%

    Advertising and promotion

    611

    604

    1
    %

    Information technology support

    607

    711

    (15
    )%

    Provision for credit losses

    (256
    )

    530

    (148
    )%