Company: HGBL
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038691
Chunk: 161

Company: Heritage Global Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 7
Chunk 161
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 and Joint Venture lending activity related to the Company's Specialty Lending segment are significant in the computation of segment operating income and reported separately as shown in the table below.

Notwithstanding the foregoing, the reported segment operating income for ALT and HGC represents incremental costs for managing these segments as part of their sister segments (HGP for ALT and NLEX for HGC). As such, the reported operating income for ALT and HGC does not represent their true standalone contribution, as we do not attempt to allocate existing fixed divisional overhead costs of the sister divisions to the newer segments. Similarly, corporate overhead cost is not allocated to the operating divisions for management reporting purposes. Further, we do not utilize segmented asset information to evaluate the performance of our reportable segments and do not include intercompany transfers between segments for management reporting purposes.

18

The following table sets forth certain financial information for the Company's reportable segments (in thousands):

    Year Ended December 31, 2024

    Auction and Liquidation

    Refurbishment & Resale

    Brokerage

    Specialty Lending

    Corporate and other

    Consolidated

    Gross profit [1]
     
    $
    10,560

    $
    4,103

    $
    14,069

    $
    2,503

    $
    —

    $
    31,235

    Operating expenses [2]

    (7,911
    )

    (3,655
    )

    (6,717
    )

    (1,800
    )

    (4,774
    )

    (24,857
    )

    Earnings from equity method investments

    1,391

    —

    —

    1,297

    —

    2,688

    Operating income (loss)
     
    $
    4,040

    $
    448

    $
    7,352

    $
    2,000

    $
    (4,774
    )
     
    $
    9,066

    Year Ended December 31, 2023

    Auction and Liquidation

    Refurbishment & Resale

    Brokerage

    Specialty Lending

    Corporate and other

    Consolidated

    Gross profit [1]
     
    $
    13,545

    $
    6,285

    $
    16,762

    $
    3,223

    $
    —