# EDGAR Filing Document

**Accession Number:** 0001812727
**File Stem:** 0001493152-26-021761
**Filing Date:** 2026-5
**Character Count:** 240239
**Document Hash:** 8fcf7679c630f28e86cd59ce562e9a99
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-021761.hdr.sgml**: 20260507

**ACCESSION NUMBER**: 0001493152-26-021761

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 71

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260507

**DATE AS OF CHANGE**: 20260507

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Reliance Global Group, Inc.
- **CENTRAL INDEX KEY:** 0001812727
- **STANDARD INDUSTRIAL CLASSIFICATION:** INSURANCE AGENTS BROKERS & SERVICES [6411]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 463390293
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40020
- **FILM NUMBER:** 26954831

**BUSINESS ADDRESS:**
- **STREET 1:** 300 BOULEVARD OF THE AMERICAS,
- **STREET 2:** SUITE 105
- **CITY:** LAKEWOOD
- **STATE:** NJ
- **ZIP:** 08701
- **BUSINESS PHONE:** 732-780-4647

**MAIL ADDRESS:**
- **STREET 1:** 300 BOULEVARD OF THE AMERICAS,
- **STREET 2:** SUITE 105
- **CITY:** LAKEWOOD
- **STATE:** NJ
- **ZIP:** 08701

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended March 31, 2026

or

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from _____ to _____**

**Commission File Number: 001-40020**

**RELIANCE GLOBAL GROUP, INC.**

(Exact name of registrant as specified in its charter)

<u>Florida</u> <u>46-3390293</u> <br> (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

300 Blvd. of the Americas, Suite 105 Lakewood, NJ 08701

(Address of principal executive offices) (Zip Code)

732-380-4600

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock | EZRA | The Nasdaq Capital Market |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company, in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ☐ No ☒

At May 7, 2026, the registrant had 22,230,563 shares of common stock, par value $0.086 per share, outstanding.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **PART I** |  |
| [Item 1. Condensed Consolidated Financial Statements (Unaudited)](#sp_012) | 3 |
| [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](#sp_001) | 16 |
| [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](#sp_002) | 24 |
| [Item 4. Controls and Procedures.](#sp_003) | 24 |
| **[PART II](#sp_004)** |  |
| [Item 1. Legal Proceedings.](#sp_005) | 25 |
| [Item 1A. Risk Factors.](#sp_006) | 25 |
| [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](#sp_007) | 29 |
| [Item 3. Defaults Upon Senior Securities.](#sp_008) | 29 |
| [Item 4. Mine Safety Disclosures.](#sp_009) | 29 |
| [Item 5. Other Information.](#sp_010) | 29 |
| [Item 6. Exhibits](#sp_011) | 30 |

---

**Reliance Global Group, Inc. and Subsidiaries**

**Condensed Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **March 31**<br>**2026** | **December 31**<br>**2025** |
|  | **(Unaudited)** | |
| **Assets** |  |  |
| Current assets: |  |  |
| Cash | $2273952 | $1315634 |
| Restricted cash | 961411 | 1415725 |
| Accounts receivable | 669226 | 746275 |
| Accounts receivable, related parties | 5575 | 3530 |
| Other receivables | 44154 | 23526 |
| Prepaid expense and other current assets | 509813 | 766985 |
| Total current assets | 4464131 | 4271675 |
| Property and equipment, net | 70892 | 77196 |
| Right-of-use assets | 830517 | 897610 |
| Investment in Enquantum | 474125 |  |
| Intangibles, net | 3089840 | 3387980 |
| Goodwill | 4786555 | 4786555 |
| Digital assets, fair value | 52970 | 108913 |
| Other non-current assets | 18492 | 18492 |
| Total assets | $13787522 | $13548421 |
| Current liabilities: |  |  |
| Accounts payable and other accrued liabilities | $817071 | $653293 |
| Short term financing agreements | 10152 | 58942 |
| Current portion of loans payables, related parties | 71600 | 286546 |
| Other payables | 101755 | 83263 |
| Current portion of long-term debt | 581814 | 1038294 |
| Operating lease liability, current portion | 278015 | 276470 |
| Total current liabilities | 1860407 | 2396808 |
| Long term debt, less current portion | 3916427 | 4062972 |
| Operating lease liability, less current portion | 591630 | 661211 |
| Total liabilities | 6368464 | 7120991 |
| Stockholders' equity |  |  |
| Preferred stock, $0.086 par value; 750,000,000 shares authorized and 0 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively |  |  |
| Common stock, $0.086 par value; 2,000,000,000 shares authorized and 21,253,013 and 2,250,210 issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 1827759 | 915394 |
| Additional paid-in capital | 62123771 | 60573341 |
| Accumulated deficit | (56532472) | (55061305) |
| Total stockholders' equity | 7419058 | 6427430 |
| Total liabilities and stockholders' equity | $13787522 | $13548421 |

---

 

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.* 

**Reliance Global Group, Inc. and Subsidiaries**

**Condensed Consolidated Statements of Operations**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months ended** | **Three Months ended** |
|  | **March 31, 2026** | **March 31, 2025** |
| **Revenue** | | |
| Commission income | $3826792 | $4236220 |
| Total revenue | 3826792 | 4236220 |
| **Operating expenses** |  |  |
| Commission expense | 1581817 | 1469427 |
| Salaries and wages | 1613111 | 2229837 |
| General and administrative expenses | 1356581 | 1516228 |
| Marketing and advertising expenses | 210648 | 67275 |
| Depreciation and amortization | 304443 | 360595 |
| Total operating expenses | 5066600 | 5643362 |
| Loss from operations | (1239808) | (1407142) |
| **Other income (expenses)** |  |  |
| Interest expense | (126333) | (300482) |
| Interest expense related parties | (53) | (24760) |
| Loss from equity method investment | (26030) |  |
| Other expense, net | (23000) | (4498) |
| Unrealized losses on digital assets, net | (55943) | - |
| Total other expenses | (231359) | (329740) |
| &nbsp;&nbsp;&nbsp;Net loss | $(1471167) | $(1736882) |
| Basic and diluted loss per share | $(0.09) | $(0.66) |
| Weighted average number of shares outstanding–basic and diluted | 17008046 | 2612721 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.* 

**Reliance Global Group, Inc. and Subsidiaries**

**Condensed Consolidated Statements of Stockholders' Equity**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** |<br>**Total** |
| **Balance December 31, 2025 (Audited)** | 10644124 | $915394 | $60573341 | $(55061305) | $6427430 |
| Common stock-based compensation | 10000 | 860 | 14640 |  | 15500 |
| Common stock issued for ATM sales | 89629 | 7709 | 26371 |  | 34080 |
| Common stock issued pursuant to the Series K Public Offering | 10509260 | 903796 | 1640329 |  | 2544125 |
| Deemed dividend |  |  | (130910) |  | (130910) |
| Net loss | - | - | - | (1471167) | (1471167) |
| **Balance, March 31, 2026** | 21253013 | $1827759 | $62123771 | $(56532472) | $7419058 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** |<br>**Total** |
| **Balance December 31, 2024 (Audited)** | 2250210 | $193484 | $50877307 | $(48073549) | $2997242 |
| Common stock-based compensation | 462659 | 39789 | 935196 |  | 974985 |
| Common stock issued for services | 105000 | 9064 | 132686 |  | 141750 |
| Common stock issued for acquisition purchase price prepayment | 157000 | 13502 | 225923 |  | 239425 |
| Net loss | - | - | - | (1736882) | (1736882) |
| **Balance, March 31, 2025** | 2974869 | $255839 | $52171112 | $(49810431) | $2616520 |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.* 

**Reliance Global Group, Inc. and Subsidiaries**

**Condensed Consolidated Statements of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Net Loss | $(1471167) | $(1736882) |
| &nbsp;&nbsp;&nbsp;Adjustment to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 304443 | 360595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs and accretion of debt discount | 5356 | 9991 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease expense | (943) | (285) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity based compensation expense | 15500 | 974985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity based payments to third parties | 175858 | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on equity method investment | 26030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses on digital assets, net | 55943 |  |
| &nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 77049 | 486637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, related parties | (2045) | (194) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | (20628) | (8619) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expense and other current assets | 81314 | 6361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payables and other accrued liabilities | 163778 | 91124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables | 18338 | (35883) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by continuing operating activities | (571174) | 197830 |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment |  | (5307) |
| &nbsp;&nbsp;&nbsp;Purchase of intangibles |  | (9637) |
| &nbsp;&nbsp;&nbsp;Investment in Enquantum | (500000) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (500000) | (14944) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Principal repayments of debt | (608381) | (387137) |
| &nbsp;&nbsp;&nbsp;Principal repayments of short term financings | (48790) | (48927) |
| &nbsp;&nbsp;&nbsp;Proceeds from loans payable, related parties |  | 510219 |
| &nbsp;&nbsp;&nbsp;Payments of loans payable, related parties | (214946) | (243228) |
| &nbsp;&nbsp;&nbsp;Proceeds from common shares issued through an at the market offering | 34080 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock in the Series K Public Offering and related warrant exercises | 2544125 |  |
| &nbsp;&nbsp;&nbsp;Cash paid for deemed dividends | (130910) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by continuing financing activities | 1575178 | (169073) |
| Net increase in cash and restricted cash | 504004 | 13813 |
| Cash and restricted cash at beginning of period | 2731359 | 1797694 |
| Cash and restricted cash at end of period | $3235363 | $1811507 |

---

 

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.* 

**Reliance Global Group, Inc. and Subsidiaries**

**Notes to the Unaudited Condensed Consolidated Financial Statements**

**NOTE 1. SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES**

Reliance Global Group, Inc., formerly known as Ethos Media Network, Inc. ("RELI", "Reliance", or the "Company"), was incorporated in Florida on August 2, 2013.

***Basis of Presentation and Principles of Consolidation***

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of recurring accruals) necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto, set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "Form 10-K"), as the same may be amended from time to time. Capitalized terms not defined in this Quarterly Report on Form 10-Q refer to capitalized terms as defined in the Form 10-K. Certain prior period accounts and balances in these unaudited condensed consolidated financial statements and notes thereto may have been reclassified to conform to the current period's presentation.

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

***Liquidity***

As of March 31, 2026, the Company's reported cash and restricted cash aggregated balance was approximately $3,235,363, current assets were approximately $4,464,000 and current liabilities were approximately $1,860,000. As of March 31, 2026, the Company had working capital of approximately $2,604,000 and stockholders' equity of approximately $7,419,000. For the three months ended March 31, 2026, the Company had a loss from operations of approximately $1,240,000, and net loss of approximately $1,471,000.

Although there can be no assurance that debt or equity financing will be available on acceptable terms, or at all, the Company believes its financial position and its ability to raise capital to be reasonable and sufficient. Based on our assessment, we do not believe there are conditions or events that, in the aggregate, raise substantial doubt about the Company's ability to continue as a going concern within one year of filing these unaudited financial statements with the Securities and Exchange Commission ("SEC").

***Use of Estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates.

***Cash and Restricted Cash***

Cash and restricted cash (restricted for debt service coverage) reported on our condensed consolidated balance sheets are reconciled to the total shown on our unaudited condensed consolidated statements of cash flows as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2025** |
| Cash | $2273952 | $388379 |
| Restricted cash | 961411 | 1423128 |
| Total cash and restricted cash | $3235363 | $1811507 |

---

 ****

***Revenue Recognition***

The following table disaggregates the Company's revenue by line of business, showing commissions earned:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Three Months ended March 31,** | **Medical** | **Life** | **Property**<br>**and**<br>**Casualty** | **Total** |
| **2026** | $2972980 | $16265 | $837547 | $3826792 |
| **2025** | $3282938 | $36947 | $916335 | $4236220 |

---

The following are customers representing 10% or more of total revenue:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| <br>**Insurance Carrier** | **2026** | **2025** |
| Priority Health | 53% | 42% |
| BlueCross BlueShield | 12% | 16% |

---

No other single customer accounted for more than 10% of the Company's commission revenues during the three months ended March 31, 2026 and 2025. The loss of any significant customer could have a material adverse effect on the Company.

***Income Taxes***

The Company recorded no income tax expense for the three months ended March 31, 2026 and 2025 because the estimated annual effective tax rate was zero. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company's annual earnings and taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, the ability to use tax credits and net operating loss carry forwards, and available tax planning alternatives.

As of March 31, 2026 and December 31, 2025, the Company provided a full valuation allowance against its net deferred tax assets since the Company believes it is more likely than not that its deferred tax assets will not be realized.

***Equity Method Investment***

The Company accounts for investments in entities over which it exercises significant influence but does not control using the equity method of accounting (ASC 323). Under the equity method, the investment is initially recorded at cost and subsequently adjusted for the Company's proportionate share of the investee's net income or loss, which is presented as a non-operating item in the Company's consolidated statements of operations. Dividends received reduce the carrying value of the investment. The Company performs a memo purchase price allocation at the date of each investment to identify basis differences between the cost allocated to the investee's assets and liabilities and the investee's carrying values of those assets and liabilities. Indefinite-lived basis differences are not amortized until the related activities are complete or abandoned; definite-lived basis differences are amortized over the useful life of the underlying asset. The Company assesses its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company translates the financial statements of its equity method investee whose functional currency is not the U.S. dollar using the current rate method; resulting translation adjustments when material are recorded in other comprehensive income.

***Recently Issued Accounting Pronouncements***

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-08, Intangibles — Goodwill and Other — Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. The ASU requires entities to measure certain digital assets at fair value each reporting period, with changes in fair value recognized in net income, and to provide specific quantitative and qualitative disclosures regarding such holdings. The Company adopted ASU 2023-08 effective July 1, 2025, using the modified retrospective transition method. Since the Company did not hold any digital assets prior to adoption, there were no cumulative-effect adjustments to retained earnings and no retrospective impacts.

In August 2025, the FASB issued ASU 2025-05, *Measurement of Credit Losses for Accounts Receivable and Contract Assets*, which simplifies certain aspects of applying ASC 326, *Financial Instruments—Credit Losses*, to current accounts receivable and contract assets arising from transactions accounted for under ASC 606, *Revenue from Contracts with Customers*. The ASU permits entities to apply a practical expedient when estimating expected credit losses for certain short-term receivables and contract assets. The Company adopted ASU 2025-05 during the quarter ended March 31, 2026. The adoption of this guidance did not have a material impact on the Company's condensed consolidated financial statements or related disclosures.

We do not expect any other recently issued accounting pronouncements to have a material effect on our financial statements not already disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

**NOTE 2. INVESTMENT IN ENQUANTUM**

In January 2026, the Company advanced a $166,000 secured bridge loan to Enquantum Ltd. ("Enquantum"), an Israeli quantum encryption technology company. The bridge loan converted into equity on February 19, 2026 in connection with the initial closing under a Share Purchase Agreement ("SPA") entered into on February 5, 2026, pursuant to which the Company may acquire up to 51% of Enquantum's fully diluted ordinary shares for aggregate consideration of approximately $2.1 million payable in milestone-based tranches. During the three months ended March 31, 2026, the Company funded an aggregate of approximately $500,000, including the converted bridge loan, and acquired 51,012 ordinary shares of Enquantum, representing approximately 23.8% of Enquantum's issued and outstanding shares (approximately 12% assuming full dilution contemplated under the SPA). The Company holds two board-designated seats on Enquantum's five-member board of directors and accounts for the investment under the equity method of accounting pursuant to ASC 323 due to its ability to exercise significant influence over Enquantum's financial and operating policies.

As of March 31, 2026, the carrying value of the investment was approximately $474,000, after recognizing approximately $26,000 of equity method losses during the quarter, which were recorded within loss from equity method investment in the Company's condensed consolidated statements of operations.

The Company determined that the investment did not constitute a business acquisition under ASC 805, as substantially all of the fair value of Enquantum's gross assets is concentrated in its quantum encryption intellectual property and in-process research and development ("IPR&D"). In connection with the Company's equity method accounting analysis under ASC 323, the Company determined that the purchase price exceeded its proportionate share of Enquantum's underlying net assets by approximately $576,000 at the respective investment dates, primarily due to Enquantum's accumulated deficit and the value attributed to its intellectual property and IPR&D. This excess basis difference represents an equity method basis adjustment under ASC 323 associated with the Company's investment in Enquantum and is included within the carrying value of the investment. The amount is not separately presented as an intangible asset on the Company's condensed consolidated balance sheets and is not currently subject to amortization unless the related research and development activities are completed or abandoned.

As of March 31, 2026, the Company's remaining unfunded commitment under the SPA was approximately $1.6 million. On April 21, 2026, the Company funded an additional tranche of approximately $167,000, increasing its ownership interest in Enquantum to approximately 29.4% of Enquantum's issued and outstanding shares (approximately 16% assuming full dilution contemplated under the SPA).

**NOTE 3. INTANGIBLE ASSETS**

The following table sets forth the major categories of the Company's intangible assets and the weighted-average remaining amortization period as of March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Weighted**<br>**Average**<br>**Remaining**<br>**Amortization**<br>**Period**<br>**(Years)** | **Gross**<br>**Carrying**<br>**Amount** | **Accumulated**<br>**Amortization** | **Net Carrying**<br>**Amount** |
| Trade name and trademarks | 0.1 | $1479027 | $(1463642) | $15385 |
| Internally developed software | 1.1 | 1760605 | (1393629) | 366976 |
| Customer relationships | 4.1 | 5384560 | (2690158) | 2694402 |
| Non-competition agreements | 0.1 | 2661150 | (2648073) | 13077 |
| &nbsp;&nbsp;&nbsp;Total |  | $11285342 | $(8195502) | $3089840 |

---

The following table sets forth the major categories of the Company's intangible assets and the weighted-average remaining amortization period as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Weighted**<br>**Average**<br>**Remaining**<br>**Amortization**<br>**period**<br>**(Years)** | **Gross**<br>**Carrying**<br>**Amount** | **Accumulated**<br>**Amortization** | **Net Carrying**<br>**Amount** |
| Trade name and trademarks | 0.3 | $1479027 | $(1427398) | $51629 |
| Internally developed software | 1.3 | 1760605 | (1305944) | 454661 |
| Customer relationships | 4.2 | 5384560 | (2557337) | 2827223 |
| Non-competition agreements | 0.3 | 2661150 | (2606683) | 54467 |
| &nbsp;&nbsp;&nbsp;Total |  | $11285342 | $(7897362) | $3387980 |

---

The following table reflects expected amortization expense as of March 31, 2026, for each of the following five years and thereafter:

---

| | |
|:---|:---|
| **Years Ending December 31,** | **Amortization<br> Expense** |
| 2026 | $662845 |
| 2027 | 627251 |
| 2028 | 545853 |
| 2029 | 466520 |
| 2030 | 376196 |
| Thereafter | 411175 |
| Total | $3089840 |

---

**NOTE 4. DIGITAL ASSETS**

The Company did not own or trade digital assets during the period ended March 31, 2025. The Company did not engage in any purchases or sales of digital assets during the period ended March 31, 2026. The following table summarizes the Company's digital asset holdings as of March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **Digital Asset** | **Holdings** | **Cost Basis** | **Fair Value** | **Hierarchy** |
| ZEC | 213.140310 | $117811 | $52970 | Level 1 |

---

**NOTE 5. LONG-TERM DEBT AND SHORT-TERM FINANCINGS**

***Long-Term Debt***

The composition of the long-term debt follow

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Oak Street Funding LLC Term Loan for the acquisition of Barra & Associates, LLC, variable interest of prime rate plus 2.5%, maturing May 2032, net of deferred financing costs of $128,552 and $133,909 as of March 31, 2026 and December 31, 2025, respectively | 4498241 | 5101266 |
| Less: current portion | (581814) | (1038294) |
| Long-term debt | $3916427 | $4062972 |

---

The following table depicts the maturities of the Company's outstanding long-term debt.

SCHEDULE OF CUMULATIVE MATURITIES OF LONG -TERM LOANS AND CREDIT FACILITIES

---

| | |
|:---|:---|
| **Years Ending December 31,** | **Maturities of**<br>**Long-Term Deb**t |
| 2026 | $429912 |
| 2027 | 624240 |
| 2028 | 684412 |
| 2029 | 752386 |
| 2030 | 826062 |
| Thereafter | 1309781 |
| Total | 4626793 |
| Less: debt issuance costs | (128552) |
| Total | $4498241 |

---

***Short-Term Financings***

The Company has various short-term notes payable for financed items such as insurance premiums. These are normally paid in equal installments over a period of twelve months or less and carry interest rates of up to 11% and 12% per annum. As of March 31, 2026, and December 31, 2025, balances outstanding on short-term financings were $10,152 and $59,000 respectively.

**NOTE 6. EQUITY**

***Common Stock***

The Company is authorized to issue 2,000,000,000 shares of common stock, $0.086 par value (the "Common Stock"). Each share of issued and outstanding common stock entitles the holder thereof to fully participate in all shareholder meetings, to cast one vote on each matter with respect to which shareholders have the right to vote, and to share ratably in all dividends and other distributions declared and paid with respect to common stock, as well as in the net assets of the Company upon liquidation or dissolution.

During the first quarter of 2026, the Company issued 10,000 shares of Common Stock with a value of $15,500 for equity-based compensation under certain disclosed (see Equity-based Compensation) equity-based compensation programs, 89,629 shares of common stock shares with a value of $34,080 through its ATM Program, and 10,509,260 shares of common stock with a net value of $2,544,125 in the Series K Public Offering of common shares and warrants.

During the first quarter of 2025 the Company issued 462,659 shares, or $974,985 Common Stock for equity-based compensation, 157,000 shares of common stock with a value of $239,425 as an acquisition prepayment, and 105,000 shares of common stock with a value of $141,750 for a service provider prepayment. These prepayments were recorded to the prepaids and other current assets account on the condensed consolidated balance sheets as of March 31, 2025.

As of March 31, 2026, and December 31, 2025, there were 21,253,013 and 10,644,124 shares of common stock outstanding, respectively.

 ****

***Equity-based Compensation***

Pursuant to the April 2025 second amendment to an employment agreement between the Company and an executive, the executive was awarded 40,000 shares of the Company's Common Stock annually over the four-year employment term, with each annual tranche vesting equally at 10,000 shares per quarter, pro-rated for any partial periods. The total fair value of the award is approximately $248,000. During the three months ended March 31, 2026, 10,000 shares were issued pursuant to the award. As of March 31, 2026, unrecognized compensation expense related to the award was approximately $190,258, which is expected to be recognized through June 2029.

During the first quarter of 2025 certain directors, executives, and employees were granted 999,995 shares of common stock in equity awards with a value of $2,049,675, vesting during the first and third quarters of 2025. As of March 31, 2025, 462,605 shares, or $957,785 of these equity awards were vested and 537,390 shares, or $1,091,889 were unvested.

Total stock-based compensation expense recorded in the unaudited condensed consolidated statements of operations for the three months ended March 31, 2026, and 2025 was $15,500 and $974,985, respectively.

**At-the-Market Offering Program**

During the three months ended March 31, 2026, the Company sold 89,629 shares of Common Stock under the ATM Program for net proceeds of $34,080. As of March 31, 2026, approximately $1,764,443 of Common Stock remained available for issuance under the ATM Program. Subsequent to March 31, 2026, the Company sold an additional 977,550 shares of Common Stock under the ATM Program for net proceeds of approximately $166,246, and approximately $1,588,998 of Common Stock remained available for issuance thereafter.

**Series K Public Offering**

On January 29, 2026, the Company closed a registered public offering (the "Series K Public Offering") of 7,407,408 shares of its common stock, which included 188,149 pre-funded warrants issued in lieu of common stock (the "Series K PF Warrants"), together with warrants to purchase up to 14,814,816 shares of common stock (the "Series K Warrants"), at a combined public offering price of $0.27 per share (or $0.269 per Series K PF Warrant). Each share of common stock (or Series K PF Warrant) was issued together with two Series K Warrants, each exercisable for one share of common stock at an exercise price of $0.27 per share and expiring two years from the initial exercise date. The Series K Warrants and Series K PF Warrants were classified as equity instruments. The Series K Public Offering generated gross proceeds of approximately $2.0 million, before deducting placement agent fees and other offering expenses. The Company intends to use the net proceeds from the Series K Public Offering for working capital, merger and acquisition activities, and general corporate purposes.

In connection with the Series K Public Offering, the Company agreed to pay the placement agent a cash fee equal to 7.0% of the gross proceeds, a management fee equal to 1.0% of the gross proceeds, and reimbursement of certain expenses. In addition, the Company issued 518,519 placement agent warrants (the "Series K PAWs"), representing 7.0% of the aggregate number of shares of common stock and Series K PF Warrants sold in the offering. The Series K PAWs have an exercise price of $0.3375 per share and expire two years from the initial exercise date.

During the three months ended March 31, 2026, all 188,149 Series K PF Warrants were exercised, and 3,101,853 Series K Warrants were exercised for aggregate proceeds of approximately $837,500. As of March 31, 2026, 11,712,963 Series K Warrants and 518,519 Series K PAWs remained outstanding.

**Equity Line of Credit (ELOC)**

On March 12, 2026, the Company entered into Amendment No. 2 to the Common Stock Purchase Agreement with White Lion Capital, LLC (the "ELOC Agreement"). The amendment extends the term of the facility by modifying the definition of the "Commitment Period" to continue through the earlier of (i) the date on which the investor has purchased shares equal to the full commitment amount under the ELOC Agreement or (ii) December 31, 2028. In addition, the amendment increased the total committed capital available to the Company under the ELOC Agreement (the "Commitment Amount") to $50,000,000, resulting in remaining capacity of approximately $49.1 million as of March 31, 2026. The Company did not sell any shares under the ELOC during the three months ended March 31, 2026.

On May 6, 2026, the Company's stockholders approved the issuance of shares of the Company's common stock in excess of the Exchange Cap under Nasdaq Listing Rule 5635(d) pursuant to the ELOC Agreement. The approval provides the Company with additional flexibility to issue shares under the facility, subject to the terms and conditions of the ELOC Agreement.

**NOTE 7. EARNINGS (LOSS) PER SHARE**

Basic earnings per common share ("EPS") applicable to common stockholders is computed by dividing earnings applicable to common stockholders by the weighted-average number of common shares outstanding.

If there is a loss from operations, diluted EPS is computed in the same manner as basic EPS is computed. Similarly, if the Company has net income but its preferred dividend adjustment made in computing income available to common stockholders results in a net loss available to common stockholders, diluted EPS would be computed in the same manner as basic EPS.

The following table sets forth the computation of basic and diluted net loss per common share:

---

| | | |
|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**March 31, 2026** | **Three Months**<br>**Ended**<br>**March 31, 2025** |
| Net loss | $(1471167) | $(1736882) |
| Less: deemed dividend adjustment | (130910) | - |
| Net loss, numerator, basic computation | (1602077) | (1736882) |
| Net loss, numerator, dilutive computation | $(1602077) | $(1736882) |
| Weighted average common shares, basic | 17008046 | 2612721 |
| Weighted average common shares, dilutive | 17008046 | 2612721 |
| Loss per common share – basic | $(0.09) | $(0.66) |
| Loss per common share – diluted | $(0.09) | $(0.66) |

---

Additionally, the following are considered anti-dilutive securities excluded from weighted-average shares used to calculate diluted net loss per common share:

SCHEDULE OF DILUTIVE NET LOSS PER COMMON SHARE

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2025** |
| Shares subject to outstanding common stock options |  | 16 |
| Shares Subject to Outstanding PAW (liability) | 959 | 959 |
| Shares subject to outstanding PA Warrants | 3096 | 3096 |
| Shares subject to unvested stock awards | - | 39 |
| Shares subject to Outstanding Series J Warrants | 2976192 |  |
| Shares subject to Outstanding Series J PAW's | 104167 |  |
| Stock award shares unvested | 122747 |  |
| Shares subject to outstanding Series K Warrants | 11712963 |  |
| Shares subject to outstanding Series K PAWs | 518519 | - |

---

**NOTE 8. LEASES**

Operating lease expense for the three months ended March 31, 2026, and 2025 was $86,496 and $107,665, respectively. As of March 31, 2026, the weighted average remaining lease term and weighted average discount rate for the operating leases were 3.08 years and 8.80%, respectively.

The following table depicts future minimum lease payments for the Company's operating leases.

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENT

---

| | |
|:---|:---|
| **Fiscal year ending December 31,** | **Operating Lease**<br>**Obligations** |
| 2026 | $257309 |
| 2027 | 315229 |
| 2028 | 283583 |
| 2029 | 107395 |
| 2030 | 26342 |
| Thereafter | - |
| Total undiscounted operating lease payments | 989858 |
| Less: Imputed interest | (120213) |
| Present value of operating lease liabilities | $869645 |

---

**NOTE 9. COMMITMENTS AND CONTINGENCIES**

***Legal Contingencies***

The Company is subject to various legal proceedings and claims, either asserted or unasserted, arising in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any of these matters will have a material adverse effect on our business, financial position, results of operations, or cash flows, and accordingly no legal contingencies are accrued as of March 31, 2026, and December 31, 2025. Litigation relating to the insurance brokerage industry is not uncommon. As such the Company, from time to time has been subject to such litigation. No assurances can be given with respect to the extent or outcome of any such litigation in the future.

**NOTE 10. RELATED PARTY TRANSACTIONS**

***Americana Credit Agreement and Revolving Not****e*

 

On March 5, 2025, and as amended on June 24, 2025, the Company and YES Americana Group, LLC ("Americana") entered into a Revolving Credit Facility Agreement (the "Credit Agreement") pursuant to which Americana agreed to extend a revolving credit facility of up to $2,000,000 to the Company (the "Facility").

As of March 31, 2026, the outstanding balance on the Facility was $71,600 presented in the current portion of loans payables, related parties account on the condensed consolidated balance sheets. Related interest expense for the period ended March 31, 2026, was $53 and presented in the interest expense related parties account on the consolidated statements of operations.

The following table summarizes the loans payable, related parties current and non-current accounts, as of the periods ended March 31, 2026 and December 31, 2025, and the interest expense related parties account for the three month periods ended March 31, 2026 and March 31, 2025, as presented on the condensed consolidated balance sheets and condensed consolidated statements of operations, respectively:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Current portion of loans<br> payables, related parties** | **Current portion of loans<br> payables, related parties** | **Loans payable, related <br> parties, less current portion** | **Loans payable, related <br> parties, less current portion** | **Interest expense, related parties** | **Interest expense, related parties** |
| <br>**Related Party** | **March 31,<br> 2026** | **December 31,<br> 2025** | **March 31,<br> 2026** | **December 31,<br> 2025** | **March 31,<br> 2026** | **March 31,<br> 2025** |
| Deferred Purchase Price Liability | $- | $- | $- | $- | $- | $9350 |
| Purchase Agreement Liability |  |  |  |  |  | 15361 |
| Yes Americana Payable | 71600 | 286546 | - | - | 53 | 49 |
| Total | $71600 | $286546 | $- | $- | $53 | $24760 |

---

**Settlement Agreements**

Reliance Global Holdings, LLC ("RGH"), an affiliate of the Company, was previously party to certain guarantees related to historical stock purchase transactions involving the Company's common stock. In March 2026, the Company entered into two separate full and final release and settlement agreements (collectively, the "Settlement Agreements") with third parties relating to such transactions and the related guarantees issued by RGH. Under the terms of the Settlement Agreements, the Company agreed to pay aggregate cash consideration of approximately $130,910, consisting of approximately $90,560 pursuant to a settlement agreement entered into on March 13, 2026, and approximately $40,350 pursuant to a settlement agreement entered into on March 11, 2026. Upon payment, the settlement amounts represented full and final satisfaction of all claims and obligations arising from the underlying stock purchase transactions and related guarantees, and the parties exchanged mutual releases. All prior obligations related to these matters were terminated. The Company's independent directors approved the Settlement Agreements and related payments, determining that resolution of these matters was in the best interests of the Company.

**NOTE 11. SEGMENT REPORTING**

**Description of Reportable Segments**

The Company operates two reportable segments based on the manner in which the Chief Operating Decision Maker ("CODM"), the Company's Chief Executive Officer, evaluates performance and allocates resources:

&nbsp;&nbsp;&nbsp;&nbsp;1. **Insurance** – includes the Company's retail and wholesale insurance agencies and proprietary
 Insurtech platforms that generate commission-based revenue.

&nbsp;&nbsp;&nbsp;&nbsp;2. **Strategic Ventures** – includes activities conducted through EZRA International Group and the
 Company's Scale51 operating model, including strategic life science and technology
 investments, acquisition and diligence activities, and equity method investment activity.

The CODM reviews discrete financial information for each segment, including revenue (where applicable), operating expenses, and segment net income (loss), in order to assess performance and allocate resources.

During the three months ended March 31, 2026, the Company began separately reviewing the operating results of its Strategic Ventures activities. As a result, management determined that these activities constitute a separate operating and reportable segment under ASC 280, Segment Reporting. Prior period comparative information has been retrospectively recast to conform to the current period segment presentation. Prior to January 2026, the Company operated as a single reportable segment. Accordingly, all prior period activity has been allocated to the Insurance segment, and the Strategic Ventures segment reflects no activity for prior periods presented.

Segment profit or loss is measured based on segment net income (loss), which reflects segment-level operating results before unallocated corporate overhead expenses. Corporate overhead includes cash and non-cash executive compensation, public company costs, professional fees, SEC reporting costs, and other corporate expenses not allocated to the segments, as these amounts are not regularly reviewed by the CODM in evaluating segment performance.

The significant expense categories regularly provided to the CODM and included in segment net income (loss) include:

● **Insurance** – commission expense, personnel costs, agency operating expenses and marketing expenses.

● **Strategic Ventures** – deal-related and diligence costs, professional fees, operating expenses, and equity method income or loss from investments.

The Company does not report segment assets, as such information is not regularly reviewed by the CODM for purposes of assessing performance or allocating resources.

The following tables present financial information for the Company's reportable segments:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Insurance** | **Strategic Ventures** | **Total** | **Insurance** | **Strategic Ventures** | **Total** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commission income | $3826792 | $- | $3826792 | $4236220 | $- | $4236220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Revenue | 3826792 |  | 3826792 | 4236220 | &nbsp;&nbsp;&nbsp;&nbsp;- | 4236220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commission expense | 1581817 |  | 1581817 | 1469427 |  | 1469427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and wages | 794652 |  | 794652 | 1167308 |  | 1167308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 281289 | 339272 | 620562 | 366835 |  | 366835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and advertising | 1925 |  | 1925 | 16784 |  | 16784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 302061 |  | 302061 | 358212 |  | 358212 |
| &nbsp;&nbsp;&nbsp;Interest expense | 121534 |  | 121534 | 296255 |  | 296255 |
| Interest (expense) related parties |  |  |  | 24711 |  | 24711 |
| &nbsp;&nbsp;&nbsp;Other expense, net |  |  |  | (2) |  | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from equity method investment |  | 26030 | 26030 |  |  |  |
| Unrealized (gains) losses on digital assets, net | - | - | - | - | - | - |
| Segment Net Income (Loss) | $743515 | $(365302) | $378212 | $536690 | $- | $536690 |

---

Reconciliation of total segment revenue and net income to consolidated results:

---

| | | | |
|:---|:---|:---|:---|
| **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
| Total segment revenue | $3826792 | Total segment revenue | $4236220 |
| Consolidated revenue | $3826792 | Consolidated revenue | $4236220 |
| Total segment net income | $378212 | Total segments net income | $536690 |
| Corporate overhead | (1849380) | Corporate overhead | (2273572) |
| Net loss | $(1471167) | Net loss | $(1736882) |

---

**NOTE 12. SUBSEQUENT EVENTS**

**LGG and Innervate Transactions**

In April 2026, the Company formed LifeSci Global Group LLC ("LGG"), a Delaware limited liability company, to pursue investments in healthcare-related companies. The Company holds approximately 51% of LGG's membership interests, with the remaining interests held by LifeSci Management Group LLC ("Management Group"), an entity owned by certain members of the Company's management and board of directors.

In connection with the formation of LGG, the Company, through its wholly owned subsidiary EZRA International Group, LLC, entered into a promissory note with LGG providing for borrowings of up to $2.0 million, bearing interest at 7% per annum and maturing on April 29, 2031. As of April 30, 2026, $500,000 had been advanced under the note.

On April 30, 2026, LGG entered into agreements to invest approximately $2.0 million in Innervate Radiopharmaceuticals LLC ("Innervate"), an early-stage life sciences company, in exchange for a minority equity interest and certain additional rights.

The formation of LGG, the related financing arrangements, and the Innervate investment constitute related party transactions, as certain members of the Company's management and board of directors hold ownership interests in Management Group and one director serves as the chief executive officer of Innervate. The transactions were reviewed and approved by the independent and disinterested members of the Company's Board of Directors.

**Reverse Stock Split**

On May 7, 2026, the Company's Board of Directors approved a 1-for-40 reverse stock split (the "Reverse Stock Split") of the Company's issued and outstanding shares of common stock, as well as a corresponding proportional reduction in the number of authorized shares of common stock. The Reverse Stock Split will be effected pursuant to an amendment to the Company's Articles of Incorporation expected to be filed with the Florida Division of Corporations on May 7, 2026.

The Reverse Stock Split is expected to become effective for trading purposes on The Nasdaq Capital Market on May 19, 2026. At the effective time, each 40 shares of the Company's issued and outstanding common stock would be automatically combined into one share of common stock, without any change in par value per share. The total number of authorized shares of common stock was proportionately reduced in accordance with the 1-for-40 ratio. Fractional shares resulting from the Reverse Stock Split were treated in accordance with the terms approved by the Company's Board of Directors.

The Reverse Stock Split was implemented for the purpose of increasing the per share trading price of the Company's common stock and enabling the Company to regain compliance with the $1.00 minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2). Following the effectiveness of the Reverse Stock Split, the Company will begin the process of satisfying the requirement to maintain a minimum closing bid price of at least $1.00 per share for ten consecutive trading days.

As of the date of this filing, the Reverse Stock Split had not yet become effective. Accordingly, all share and per share amounts presented in these condensed consolidated financial statements and related notes have not been retroactively adjusted to reflect the Reverse Stock Split.

***Discontinuation of Scentech Transaction***

Subsequent to March 31, 2026, the Company determined not to proceed with its previously disclosed proposed acquisition of an interest in Scentech Medical Ltd. ("Scentech"). Although the Company and Scentech had been negotiating definitive transaction documents, no definitive agreement was executed and the parties did not reach final terms. The Company has discontinued discussions with Scentech and does not intend to pursue the transaction. The Company has not incurred any termination fees or other material liabilities in connection with the discontinuation of the Scentech transaction. The Company's previously announced acquisition and investment activities relating to Enquantum Ltd. and LifeSci Global Group LLC are unaffected.

**Amendment to 2025 Equity Incentive Plan**

On May 6, 2026, the Company's stockholders approved an amendment to the Company's 2025 Equity Incentive Plan (the "2025 Plan") to increase the number of shares of common stock authorized for issuance under the 2025 Plan by 14,000,000 shares, from 2,000,000 shares to 16,000,000 shares. The amendment was approved at the Company's 2026 Annual Meeting of Stockholders.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"). Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report on Form 10-Q, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks, uncertainties and assumptions. You should read the sections titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in this Quarterly Report on Form 10-Q and in our Annual Report for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.*

**Cautionary Note Regarding Forward-Looking Statements**

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this report—including statements regarding our strategy (including our digital-asset treasury strategy and related blockchain/tokenization initiatives), future financial condition, liquidity and capital resources, future operations, projected revenues, earnings (losses), margins, cash flows, business prospects, potential acquisitions and integration, and plans and objectives of management—are forward-looking statements.

Words such as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "guidance," "intends," "may," "might," "outlook," "plans," "potential," "predicts," "projects," "seeks," "should," "targets," "will," "would," and similar expressions (and negative forms of such words) are intended to identify forward-looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to:

● our need to raise additional capital, which may not be available on acceptable terms or at all;

● our ability to successfully implement the Reverse Stock Split and to satisfy and maintain compliance with The Nasdaq Capital Market's continued listing standards, including the $1.00 minimum bid price requirement;

● our ability to maintain the listing of our common stock and warrants on the Nasdaq Capital Market;

● volatility in the price of our securities due to changes in the capital markets, our industry, or our capital structure;

● our ability to execute on our acquisition strategy and integrate acquired businesses successfully;

● our ability to retain key personnel and effectively manage growth;

● the risk that we and our agency partners are unable to generate expected revenues or margins;

● risks associated with the insurance brokerage industry, including carrier concentration, regulation, competition, and cyclicality;

● the impact of economic conditions, inflation, and interest rate trends on our operations and customer demand;

● risks associated with our recently announced expansion into the technology sector through our EZRA International Group platform and our Scale51 operating model, including our ability to identify, complete, and integrate investments in technology-driven businesses

● risks associated with our recent expansion into the life sciences sector through LifeSci Global Group LLC, including the speculative nature of early-stage life sciences investments and conflicts of interest with our directors and officers

● potential disruptions due to cybersecurity incidents or system failures;

● risks associated with legal proceedings and compliance obligations;

● risks specific to our digital-asset treasury strategy; and

● other risks and uncertainties described in this Quarterly Report on Form 10-Q (including under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations") and in our other filings with the Securities and Exchange Commission.

Forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by applicable law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements are expressly qualified in their entirety by this cautionary note.

 ****

**Overview**

Reliance Global Group, Inc. operates as a holding company that acquires, owns, and actively manages insurance distribution and technology-oriented businesses. Historically, the Company's primary operations have consisted of the ownership and operation of wholesale and retail insurance agencies and related InsurTech platforms, including RELI Exchange and 5MinuteInsure.com. In January 2026, as described below, the Company launched EZRA International Group as a strategic platform intended to support the Company's expansion through majority investments in technology-focused businesses.

**Recent Developments**

***Formation of LGG***

In April 2026, the Company formed LifeSci Global Group LLC ("LGG") to pursue investments in healthcare-related companies, with the Company holding a majority ownership interest of approximately 51%. The remaining ownership interest is held by an entity affiliated with certain members of the Company's management and Board of Directors. In connection with the formation, the Company entered into a financing arrangement with LGG providing for borrowings of up to $2.0 million, of which $0.5 million had been advanced as of April 30, 2026.

Also in April 2026, LGG entered into an agreement to invest approximately $2.0 million in Innervate Radiopharmaceuticals LLC, an early-stage life sciences company, in exchange for a minority equity interest and certain additional rights. The Company expects LGG to serve as a platform for expanding its presence in the healthcare and life sciences sector.

These arrangements involve related parties, as certain members of management and the Board hold ownership interests in the minority member of LGG, and one director is affiliated with Innervate. The transactions were reviewed and approved by the independent members of the Company's Board of Directors.

***Reverse Stock Split and Nasdaq Compliance***

 ****

On May 7, 2026, our Board of Directors approved a 1-for-40 reverse stock split of our issued and outstanding common stock, as well as a proportional reduction in the number of authorized shares of common stock. The reverse stock split will become effective for trading purposes on May 19, 2026.

The reverse stock split was undertaken to increase the market price of our common stock and to enable us to regain compliance with the $1.00 minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2). Following the effectiveness of the reverse stock split, we are required to maintain a minimum closing bid price of at least $1.00 per share for a period of ten consecutive trading days to regain compliance, with a compliance deadline of June 10, 2026.

As a result of the reverse stock split, every 40 shares of our outstanding common stock would be automatically combined into one share of common stock, and the number of authorized shares of common stock will be reduced proportionately. The reverse stock split did not affect stockholders' relative ownership interests, except with respect to the treatment of fractional shares.

While the reverse stock split increased the per share trading price of our common stock, there can be no assurance that we will be able to maintain compliance with the minimum bid price requirement for the required period or continue to meet Nasdaq's continued listing standards. We continue to monitor our stock price and may take additional actions, if necessary, to maintain compliance with applicable listing requirements.

***Scentech Transaction***

Subsequent to March 31, 2026, the Company also determined not to proceed with its previously disclosed proposed acquisition of an interest in Scentech Medical Ltd. No definitive agreement was executed, and the parties did not reach final terms. The Company has not incurred any termination fees or other material liabilities in connection with the discontinuation of those discussions.

**Amendment to 2025 Equity Incentive Plan**

On May 6, 2026, the Company's stockholders approved an amendment to the Company's 2025 Equity Incentive Plan to increase the number of shares of common stock authorized for issuance thereunder by 14,000,000 shares, from 2,000,000 shares to 16,000,000 shares. The amendment was approved at the Company's 2026 Annual Meeting of Stockholders and is intended to support the Company's ongoing employee, director, consultant, and strategic incentive compensation programs.

**Business Operations**

***Strategic Ventures Initiatives***

In January 2026, the Company launched EZRA International Group and introduced its Scale51 operating model ("Scale51"), under which the Company intends to pursue majority ownership positions in technology-driven businesses while continuing to operate its insurance brokerage and InsurTech platforms as its operational base.

In furtherance of this strategy, the Company initiated an investment in Enquantum Ltd., a cybersecurity company focused on post-quantum encryption and data protection technologies, through a $166,000 secured convertible note. In February 2026, the Company entered into a Share Purchase Agreement pursuant to which it agreed, subject to specified milestones and other conditions, to acquire up to a 51% ownership interest in Enquantum for aggregate consideration of approximately $2.1 million, payable in tranches.

During February 2026, the Company completed the initial closing under the agreement and acquired an approximate 8% ownership interest on a fully diluted basis through the conversion of the note and a cash investment. Additional tranche-based investments during March and April 2026 increased the Company's ownership to approximately 16% on a fully diluted basis.

The agreement provides for additional milestone-based investments intended to increase the Company's ownership to a controlling interest over time, including a final transaction to reach approximately 51% ownership. The Company also expects to issue shares of its common stock in connection with a final control step-up. The Company views this investment as an initial execution of its Scale51 strategy.

***Capital Markets Activity***

In January 2026, the Company completed a public offering that generated gross proceeds of approximately $2.0 million, enhancing liquidity and capital resources. The offering consisted of common stock and accompanying warrants, and during the three months ended March 31, 2026, the Company received approximately $0.8 million from the exercise of outstanding warrants.

In February 2026, the Company amended its at-the-market ("ATM") offering program, increasing the aggregate amount of common stock that may be offered and sold from time to time to approximately $1.8 million. The ATM program provides the Company with additional flexibility to access capital as needed, subject to market conditions. Additionally, beginning in the first quarter of 2026 to date, the Company sold shares under its ATM program for combined net proceeds of approximately $214,000, with remaining availability of approximately $1.6 million under the program for future issuances.

In March 2026, the Company also amended its equity line of credit facility, extending the availability period through December 31, 2028 (subject to earlier utilization) and increasing the total committed capital to $50.0 million. Collectively, these activities enhanced the Company's financial flexibility and access to capital to support working capital, merger and acquisition activities, and general corporate purposes.

***NASDAQ Ticker Symbol Change***

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On January 22, 2026, the Company announced that its ticker symbol on the Nasdaq Capital Market will change from "RELI" to "EZRA," effective at the open of trading on Monday, January 26, 2026. The Company's common stock will remain listed on the Nasdaq Capital Market and the Company's CUSIP number will remain unchanged. No action is required by the Company's stockholders in connection with the ticker symbol change.

 ****

***Settlement Agreements***

During March 2026, the Company entered into settlement agreements related to certain prior stock purchase transactions and matters involving previously asserted guarantees, including those associated with related parties. In connection with these agreements, the Company paid aggregate settlement amounts of approximately $131,000. The settlements were reviewed and approved by the independent members of the Company's Board of Directors.

**Corporate Governance**

On March 11, 2026, the Company adopted Amended and Restated Bylaws, which, among other things, revised the provision relating to the timing of the annual meeting of stockholders so that the date, time and place of the annual meeting may be determined by the Company's Board of Directors. On March 17, 2026, the Company filed Articles of Restatement with the Florida Department of State, restating the Company's Articles of Incorporation in their entirety.

**Business Trends and Uncertainties**

The insurance intermediary business is highly competitive, and we actively compete with numerous firms for customers and insurance companies, many of which have relationships with insurance companies, or have a significant presence in niche insurance markets that may give them an advantage over us. Other competitive concerns may include the quality of our products and services, our pricing and the ability of some of our customers to self-insure and the entrance of technology companies into the insurance intermediary business. Several insurance companies are engaged in the direct sale of insurance, primarily to individuals, and do not pay commissions to agents and brokers.

**Insurance Operations**

Our insurance operations focus on the acquisition and management of insurance agencies throughout the U.S. Our primary focus is to pinpoint undervalued wholesale and retail insurance agencies with operations in growing or underserved segments (including healthcare and Medicare, as well as personal and commercial insurance lines). We then focus on expanding their operations on a national platform and improving operational efficiencies to achieve asset value appreciation while generating interim cash flows. In the insurance sector, our management team has over 100 years of experience acquiring and managing insurance portfolios in several states, as well as developing specialized programs targeting niche markets. We plan to accomplish these objectives by acquiring wholesale and retail insurance agencies it deems to represent a good buying opportunity (as opposed to insurance carriers) as insurance agencies bear no insurance risk. Once acquired, we plan to develop them on a national platform to increase revenues and profits through a synergetic structure.

**Insurance Agency/Brokerage Acquisitions**

As of March 31, 2026, we have acquired multiple insurance brokerages (see table below). As our acquisition strategy continues, our reach within the insurance arena can provide us with the ability to offer lower rates, which could boost our competitive position within the industry.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Acquired** | **Reliance 100%**<br>**Controlled Entity** | **Date** | **Location** | **Line of Business** |
| U.S. Benefits Alliance, LLC (USBA)\* | US Benefits Alliance, LLC | October 24, 2018 | Michigan | Health Insurance |
| Employee Benefit Solutions, LLC (EBS)\* | Employee Benefits Solutions, LLC | October 24, 2018 | Michigan | Health Insurance |
| Commercial Solutions of Insurance Agency, LLC (CCS or Commercial Solutions) | Commercial Coverage Solutions LLC | December 1, 2018 | New Jersey | P&C – Trucking Industry |
| Southwestern Montana Insurance Center, Inc. (Southwestern Montana or Montana) | Southwestern Montana Insurance Center, LLC | April 1, 2019 | Montana | Group Health Insurance |
| Fortman Insurance Agency, LLC (Fortman or Fortman Insurance)\* | Fortman Insurance Services, LLC | May 1, 2019 | Ohio | P&C and Health Insurance |
| Altruis Benefits Consultants, Inc. (Altruis) | Altruis Benefits Corporation | September 1, 2019 | Michigan | Health Insurance |
| UIS Agency, LLC (UIS) | UIS Agency, LLC | August 17, 2020 | New York | P&C – Trucking Industry |
| J.P. Kush and Associates, Inc. (Kush) | Kush Benefit Solutions, LLC | May 1, 2021 | Michigan | Health Insurance |
| Barra & Associates, LLC | RELI Exchange, LLC | April 26, 2022 | Illinois | P&C and Health Insurance |

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\*This agency was sold by the Company during the year ended December 31, 2025.

**Non-GAAP Financial Measure**

The Company believes certain financial measures which meet the definition of non-GAAP financial measures, as defined in Regulation G of the SEC rules, provide important supplemental information. Adjusted EBITDA ("AEBITDA"), our key financial performance metric, is a non-GAAP financial measure that is not in accordance with, or an alternative to, measures prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP"). "AEBITDA" is defined as earnings before interest, taxes, depreciation, and amortization (EBITDA) with additional adjustments as further outlined below. The Company considers AEBITDA an important financial metric because it provides a meaningful financial measure of the quality of the Company's operational, cash impacted and recurring earnings and operating performance across reporting periods. Other companies may calculate Adjusted EBITDA differently than we do, which might limit its usefulness as a comparative measure to other companies in the industry. AEBITDA is used by management in addition to and in conjunction (and not as a substitute) with the results presented in accordance with GAAP. Management uses AEBITDA to evaluate the Company's operational performance, including earnings across reporting periods and the merits for implementing cost-cutting measures. We have presented AEBITDA solely as supplemental disclosure because we believe it allows for a more complete analysis of results of operations and assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Consistent with Regulation G, a description of such information is provided below herein and tabular reconciliations of this supplemental non-GAAP financial information to our most comparable GAAP information are contained in this Quarterly Report on Form 10-Q under "Results of Operations".

We exclude the following items when calculating AEBITDA, and the following items define our non-GAAP financial measure AEBITDA:

● Interest and related party interest expense: Unrelated to core Company operations and excluded to provide more meaningful supplemental information regarding the Company's core operational performance.

● Depreciation and amortization: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company's core operational performance.

● Goodwill and/or asset impairments: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company's core operational performance.

● Equity-based compensation: Non-cash compensation provided to employees and service providers , (including period amortization cost of service provider prepaid expenses that were prepaid with stock) excluded to provide more meaningful supplemental information regarding the Company's core cash impacted operational performance.

● Change in estimated acquisition earn-out payables: An earn-out liability is a liability to the seller upon an acquisition which is contingent on future earnings. These liabilities are valued at each reporting period and the changes are reported as either a gain or loss in the change in estimated acquisition earn-out payables account in the consolidated statements of operations. The gain or loss is non-cash, can be highly volatile and overall is not deemed relevant to ongoing operations, thus, it's excluded to provide more meaningful supplemental information regarding the Company's core operational performance.

● Other income (expense), net: Includes certain non-routine income or expenses and other individually de minimis items and is thus excluded as unrelated to core operations of the company.

● Gain (Loss) from Equity Method Investment: Includes certain gains and losses on equity method investments that are non-operating and non-cash, and thus excluded to provide more meaningful supplemental information regarding the Company's core operational performance.

● Unrealized gains (losses) on digital assets, net: This account includes unrealized gains and losses from digital assets and is thus excluded as unrelated to core operations of the company.

● Transactional costs: This includes expenses related to mergers, acquisitions, financings and refinancings, and amendments or modification to indebtedness. These costs are unrelated to primary Company operations and are excluded to provide more meaningful supplemental information regarding the Company's core operational performance.

● Non-standard costs: This account includes non-recurring non-operational items, related to costs incurred for a legal suit the Company has filed against one of the third parties involved in previously discontinued operations and was excluded to provide more meaningful supplemental information regarding the Company's core operational performance.

Refer to the reconciliation of net (loss) income to AEBITDA, illustrated below in tabular format.

**Results of Operations**

**RELIANCE GLOBAL GROUP, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS ANALYTICS**

***Comparison of the three months ended March 31, 2026 to the three months ended March 31, 2025***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2025** | **Change** | **% Change** |
| Commission Income ("CI") | $3826792 | $4236220 | $(409428) | -10% |
| Commission Expense ("CE") | 1581817 | 1469427 | 112390 | 8% |
| Salaries and wages ("S&W") | 1613111 | 2229837 | (616726) | -28% |
| General and administrative expenses ("G&A") | 1356581 | 1516228 | (159647) | -11% |
| Marketing and advertising expenses ("M&A") | 210648 | 67275 | 143373 | 213% |
| Depreciation and amortization ("D&A") | 304443 | 360595 | (56152) | -16% |
| Total operating expenses | 5066600 | 5643362 | (576762) | -10% |
| Loss from operations | (1239808) | (1407142) | 167334 | -12% |
| **Other income (expense)** |  |  |  |  |
| Interest expense | (126333) | (300482) | 173994 | -58% |
| Interest (expense) related parties | (53) | (24760) | 24707 | -100% |
| Loss from Equity Method Investment | (26030) |  | (26030) |  |
| Other income (expense), net | (23000) | (4498) | (18502) | 411% |
| Unrealized gains (losses) on digital assets, net | (55943) | - | (55943) | - |
| Total other (expense) income | (231359) | (329740) | 98381 | -30% |
| Net loss | (1471167) | (1736882) | 265715 | -15% |
| **Non-GAAP Measure** |  |  |  |  |
| AEBITDA | (427735) | 145407 | (573142) | -394% |

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**Commission Income (CI)**

The decrease in consolidated Commission Income was primarily driven by portfolio realignments during 2025, including the sale of Fortman Insurance Services (FIS), Employee Benefits Solutions (EBS), and U.S. Benefits Alliance (USBA), which reduced commission revenue from these operations. This decline was partially offset by approximately 11% organic growth in revenue from our retained businesses.

**Commission Expense (CE)**

The increase in consolidated Commission Expense was primarily attributable to higher commission rates driven by general market conditions, as well as increased commission expense from the Company's retained businesses consistent with approximately 11% year-over-year revenue growth. The businesses divested as part of the Company's portfolio realignment initiatives historically generated proportionally lower commission expense relative to the commission revenue they contributed.

**Salaries and Wages (S&W)**

The decrease in consolidated Salaries and Wages was primarily attributable to lower non-cash share-based compensation expense, as well as the elimination of compensation costs associated with Fortman Insurance Services and Employee Benefits Solutions following their divestiture.

**General and Administrative Expenses (G&A)**

The decline in consolidated General and Administrative expenses was primarily attributable to lower non-cash equity compensation expense for directors, as well as cost efficiencies and reduced operating expenses resulting from the Company's OneFirm initiative, partially offset by increased Scale51-related costs.

**Marketing and Advertising Expenses (M&A)**

The increase in consolidated Marketing and Advertising expenses reflects the Company's current marketing strategy and increased investment in growth initiatives.

**Depreciation and Amortization (D&A)**

The decrease in consolidated Depreciation and Amortization expense reflects the pursuant to the passage of time as assets become fully amortized and elimination of FIS, EBS, USBA assets.

**Other Income (Expense)**

The decrease in consolidated total other expense was primarily attributable to lower interest expense, including on related party balances, driven by paydowns and the payoff of certain loan balances, partially offset by a loss on an equity method investment, higher other expenses primarily related to charitable contributions, and unrealized losses on digital assets due to fair value changes.

**AEBITDA**

The decrease in consolidated AEBITDA was primarily attributable to significantly lower add-backs for non-cash equity-based compensation in 2026 compared to the prior-year period, partially offset by improved operating performance, including reductions in salaries and wages and general and administrative expenses.

**Insurance Segment – Results of Operations**

**Insurance segment comparison of the three months ended March 31, 2026 to the three months ended March 31, 2025**

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2025** | **Change** | **% Change** |
|  | **Insurance** | **Insurance** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commission income | $3826792 | $4236220 | $(409428) | -10% |
| &nbsp;&nbsp;&nbsp;Total Revenue | 3826792 | 4236220 |  |  |
| &nbsp;&nbsp;&nbsp;Total operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commission expense | 1581817 | 1469427 | 112390 | 8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Salaries and wages | 794652 | 1167308 | (372656) | -32% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 281289 | 366835 | (85546) | -23% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marketing and advertising | 1925 | 16784 | (14859) | -89% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 302061 | 358212 | (56151) | -16% |
| &nbsp;&nbsp;&nbsp;Interest expense | 121534 | 296255 | (174721) | -59% |
| Interest (expense) related parties |  | 24711 | (24711) | -100% |
| &nbsp;&nbsp;&nbsp;Other expense, net | - | (2) | 2 |  |
| Insurance Segment Net income | $743515 | $536690 | $206825 | 39% |

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Insurance segment revenue decreased compared to the prior-year period. Commission Income decreased, primarily driven by portfolio realignments during 2025, including the sale of Fortman Insurance Services (FIS), Employee Benefits Solutions (EBS), and U.S. Benefits Alliance (USBA), which reduced commission revenue from these operations. This decline was partially offset by approximately 11% organic growth in revenue from our retained businesses.

Total operating expenses decreased overall compared to the prior-year period, primarily reflecting cost reductions associated with the divestiture of certain business operations and ongoing efficiency initiatives.

● Commission expense increased, primarily attributable to higher commission rates driven by general market conditions, as well as increased commission expense from the Company's retained businesses consistent with approximately 11% year-over-year revenue growth. The businesses divested as part of the Company's portfolio realignment initiatives historically generated proportionally lower commission expense relative to the commission revenue they contributed.

● Salaries and wages decreased significantly due to the elimination of personnel costs associated with the divested FIS and EBS businesses.

● General and administrative expenses declined as a result of operational efficiencies achieved through the Company's OneFirm initiative and a leaner organizational structure.

● Marketing and advertising expenses decreased substantially, consistent with the Company's current marketing strategy.

● Depreciation and amortization expense decreased due to the passage of time as certain assets became fully amortized, as well as the elimination of assets associated with divested operations.

Total interest expense (including related party interest) decreased significantly due to the repayment of outstanding loan balances and periodic paydowns of related party obligations.

As a result of the above factors, Insurance segment profitability improved compared to the prior-year period. The increase was primarily driven by reductions in operating expenses and lower interest expense, partially offset by the decline in revenue following the divestitures.

**Strategic Ventures – Results of Operations**

**Three Months Ended March 31, 2026**

The Strategic Ventures segment represents the Company's activities conducted through EZRA International Group and the Scale51 operating model, including strategic technology and life sciences investments, acquisition and diligence activities, and equity method investment activity. The segment was established during the three months ended March 31, 2026 and did not have comparable operations in the prior-year period.

For the three months ended March 31, 2026, the Strategic Ventures segment did not generate revenue and incurred operating expenses of approximately $0.3 million, primarily consisting of legal, diligence, advisory, and other operating costs associated with the development and expansion of the segment's activities. The Company also recognized approximately $26,000 of loss from equity method investments related to its investment in Enquantum. As a result, the Strategic Ventures segment reported a net loss of approximately $0.4 million for the three months ended March 31, 2026.

**Non-GAAP Reconciliation from Net Loss to AEBITDA**

The following table provides a reconciliation from consolidated net loss to consolidated AEBITDA for the three months ended March 31, 2026 and March 31, 2025.

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **2026** | **2025** |
| Net income (loss) | (1471167) | (1736882) |
| Adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;Interest and related party interest expense | 126386 | 325242 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 304443 | 360595 |
| &nbsp;&nbsp;&nbsp;Share based compensation employees directors and third parties | 191358 | 1024985 |
| &nbsp;&nbsp;&nbsp;Transactional costs | 339272 | 143187 |
| &nbsp;&nbsp;&nbsp;Non-standard costs |  | 28280 |
| &nbsp;&nbsp;&nbsp;Loss from Equity Method Investment | 26030 |  |
| &nbsp;&nbsp;&nbsp;Unrealized gains (losses) on digital assets, net | 55943 | - |
| Total adjustments | 1043432 | 1882289 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**AEBITDA** | (427735) | 145407 |

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***Liquidity and capital resources***

The Company continues to maintain a strong liquidity position and flexible access to capital to support its operations, growth initiatives, and digital asset treasury strategy. Management believes that existing cash balances, anticipated operating cash flows, and available financing facilities provide sufficient resources to fund current obligations and planned expenditures for at least the next twelve months.

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During 2025, the Company further diversified its capital structure through a combination of equity-based financing arrangements, including the Equity Line of Credit ("ELOC") with White Lion Capital, LLC, the At-the-Market ("ATM") Program with H.C. Wainwright & Co., LLC, and the Private Placement-2025 completed in June 2025. During the first quarter of 2026 completed a public offering generating gross proceeds of approximately $2.0 million before offering expenses. As discussed under "Recent Developments," these financing vehicles provide the Company with multiple sources of capital that may be accessed opportunistically and at prevailing market prices while maintaining control over timing and issuance levels.

Management intends to use the net proceeds from these financings for general corporate purposes, including working capital, technology development, and to advance ongoing Scale51 initiatives. Management continues to evaluate additional financing alternatives and believes that the combination of strengthened balance-sheet metrics, flexible equity facilities, and expected operational cash flows provides adequate liquidity to support both near-term needs and long-term strategic growth objectives.

As of March 31, 2026, we had a combined unrestricted and restricted total cash balance of approximately $3,235,000 and working capital of approximately $2,604,000, compared with a combined unrestricted and restricted total cash balance of approximately $1,416,000 and working capital of approximately $1,875,000 as of December 31, 2025.

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***Inflation***

The Company generally may be impacted by rising costs for certain inflation-sensitive operating expenses such as labor, employee benefits, and facility leases. The Company believes inflation could have a material impact on pricing and operating expenses in future periods due to the state of the economy and current inflation rates.

***Off-balance sheet arrangements***

We did not have any off-balance sheet arrangements, as such term is defined in Regulation S-K, during the three months ended March 31, 2026.

***Cash Flows***

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**<br>**March 31,** | **Three Months Ended**<br>**March 31,** |
|  | **2025** | **2024** |
| Net cash used in (provided by) operating activities | $(571000) | 198000 |
| Net cash used in investing activities | (500000) | (15000) |
| Net cash provided by (used in) financing activities | 1575000 | (169000) |
| Net increase in cash, cash equivalents, and restricted cash | $504000 | $14000 |

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***Operating Activities***

Net cash used in operating activities for the three months ended March 31, 2026, was approximately $571,000, compared to net cash flows provided by operating activities of approximately $198,000 for the three months ended March 31, 2025. The cash used includes a net loss of approximately $1,471,000, increased by approximate non-cash adjustments of $900,000 related to depreciation and amortization of approximately $304,000, share based compensation of approximately $191,000, loss on equity investment of approximately $26,000, and amortization of debt costs, non-cash lease expense, and change in fair value of digital assets of approximately $60,000 as well as a net increase in cash due to changes of net working capital items of approximately $318,000.

***Investing Activities***

During the three months ended March 31, 2026, cash flows used in investing activities approximated $500,000 compared to cash flows used by investing activities of approximately $15,000 for the three months ended March 31, 2025. The cash used during the three months ended March 31, 2026 is related to the Company's investment in Enquantum.

***Financing Activities***

During the three months ended March 31, 2026, approximate cash provided by financing activities was $1.6 million, as compared to approximately $169,000 of cash used for the three months ended March 31, 2025. Net cash provided by financing activities during the three months ended March 31, 2026, related to net proceeds received from the Series K public offering and of common shares and warrants of approximately $2.5 million, and net ATM proceeds of approximately $34,000, offset by debt principal, and net short-term financings repayments of approximately $657,000, payments of loan payable, related parties totaling approximately $215,000, and cash paid for deemed dividends of approximately $131,000.

***Significant Accounting Policies and Estimates***

We describe our significant accounting policies in Note 1, *Summary of Significant Accounting Policies*, of the Notes to Consolidated Financial Statements, and our critical accounting estimates in Item 7, *Management's Discussion and Analysis of Financial Condition and Results of Operations*, in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 There have been no significant changes in our significant accounting policies or critical accounting estimates since the end of fiscal year 2025.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

Not applicable.

**Item 4. Controls and Procedures**

***Evaluation of Disclosure Controls and Procedures***

The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), refers to controls and procedures that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to a company's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2026, and determined them to be effective as of March 31, 2026.

***Changes in Internal Control over Financial Reporting***

There have been no changes in our internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II**

**Item 1. Legal Proceedings.**

We are subject to various legal proceedings and claims, either asserted or unasserted, arising in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, management does not believe the outcome of any of these matters will have a material adverse effect on our business, financial position, results of operations, or cash flows, and accordingly, no legal contingencies are accrued as of March 31, 2026. Litigation relating to the insurance brokerage industry is not uncommon. As such we, from time to time have been subject to such litigation. No assurances can be given with respect to the extent or outcome of any such litigation in the future.

**Item 1A. Risk Factors.**

Investing in our common stock involves a high degree of risk. You should consider carefully the information disclosed in Part I, Item 1A, "Risk Factors," contained in our Annual Report on Form 10-K for the year ended December 31, 2025, as the same may be updated from time to time. As a smaller reporting company, the Company is not required to disclose material changes to the risk factors that were contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as updated from time to time. The following risk factors are applicable to our recently announced expansion into the technology sector through EZRA International Group LLC and life sciences sector through LifeSci Global Group LLC, as well as our qualification for continued listing on the Nasdaq Capital Market, and are being provided to supplement those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.

***We have received a notice of non-compliance with Nasdaq's minimum bid price requirement, and our failure to regain compliance with Nasdaq's continued listing requirements could result in a delisting of our common stock.***

Our common stock is currently listed on The Nasdaq Capital Market. Nasdaq imposes a number of continued listing requirements on listed issuers, including requirements relating to corporate governance, minimum bid price, public float, minimum stockholders' equity, and the market value of listed securities.

On December 12, 2025, the Company received a deficiency notice (the "Bid Price Notice") from the Listing Qualifications staff of Nasdaq notifying the Company that, for the prior 30 consecutive business days, the closing bid price for the Company's common stock had been below $1.00 per share, and that the Company was therefore not in compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement"). The Bid Price Notice does not result in the immediate delisting of the Company's common stock from Nasdaq. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial period of 180 calendar days, or until June 10, 2026 (the "Initial Compliance Period"), to regain compliance with the Minimum Bid Price Requirement. To regain compliance, the closing bid price of the Company's common stock must be at least $1.00 per share for a minimum of ten consecutive business days during the Initial Compliance Period.

If the Company does not regain compliance with the Minimum Bid Price Requirement during the Initial Compliance Period, the Company may be eligible for an additional 180-calendar-day compliance period, provided that the Company satisfies Nasdaq's continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market (other than the Minimum Bid Price Requirement) and notifies Nasdaq of its intention to cure the deficiency, including, if necessary, by effecting a reverse stock split. There can be no assurance that the Company will be eligible for, or that Nasdaq will grant, an additional compliance period. If the Company is not granted an additional compliance period, or if it appears to Nasdaq that the Company will not be able to cure the deficiency, Nasdaq will provide notice that the Company's common stock is subject to delisting, in which case the Company would have the right to appeal Nasdaq's determination to a Nasdaq Hearings Panel.

On May 7, 2026, the Board approved a reverse stock split of the Company's outstanding shares of common stock at a ratio of 1-for-40. The Company intends to effect the reverse stock split with the principal objective of regaining compliance with the Minimum Bid Price Requirement prior to the expiration of the Initial Compliance Period on June 10, 2026. There can be no assurance, however, that the reverse stock split will achieve its intended effect of increasing the market price of our common stock to a level sufficient to satisfy the Minimum Bid Price Requirement, that any such increase will be sustained for the required ten consecutive business days during the Initial Compliance Period, or that the Company will otherwise regain or maintain compliance with the Minimum Bid Price Requirement or any other Nasdaq continued listing requirement. Even if the reverse stock split causes the closing bid price of our common stock to exceed $1.00 per share initially, the price may decline thereafter as a result of, among other factors, the dilutive effect of future financings, market reaction to the reverse stock split, the trading volatility of small-capitalization companies, and broader market conditions, any of which could cause us to fall back out of compliance with the Minimum Bid Price Requirement.

In addition to the Minimum Bid Price Requirement, Nasdaq's continued listing standards include requirements that we maintain a minimum stockholders' equity of $2.5 million (or alternatively a minimum market value of listed securities of $35 million or net income from continuing operations of $500,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years), minimum public float, and corporate governance standards including with respect to the independence of our directors and the composition of our Board committees. Recent and contemplated changes to the composition of our Board of Directors, including the potential loss of independence of one or more of our directors as a result of our acquisition activities, could affect our compliance with Nasdaq's corporate governance requirements, including the requirement that our audit committee consist of at least three independent directors. We may not satisfy one or more of these continued listing standards in the future, and any failure to do so could result in our receiving additional deficiency notices from Nasdaq and, ultimately, the delisting of our common stock.

Any perception that we may not comply with Nasdaq's continued listing requirements, the public announcement or receipt of any deficiency notice, or a delisting of our common stock by Nasdaq could adversely affect our ability to attract new investors, decrease the liquidity of the outstanding shares of our common stock, reduce the price at which such shares trade, and increase the transaction costs inherent in trading such shares. A delisting could also deter broker-dealers from making a market in or otherwise seeking or generating interest in our common stock, and might deter certain institutions and persons from investing in our common stock.

If our common stock were to be delisted from Nasdaq, trading of our common stock could be conducted in the over-the-counter market, including on the OTC Markets or other quotation systems. Trading in the over-the-counter market is generally characterized by decreased trading volume, greater price volatility, and reduced liquidity compared to trading on a national securities exchange. As a result, an investor may find it more difficult to dispose of, or obtain accurate quotations for, our common stock. A delisting of our common stock from Nasdaq could also materially adversely affect our ability to raise additional capital (including under our existing at-the-market offering program and our equity line of credit with White Lion Capital, LLC, which require Nasdaq listing), could trigger default or other adverse consequences under our outstanding warrants or other agreements, could result in reduced analyst coverage and investor interest in our securities, could subject our common stock to "penny stock" rules under the Exchange Act, and could negatively impact the perception of our financial condition and prospects. Any of these factors could cause the market price of our common stock to decline and could materially and adversely affect our business, financial condition, and results of operations.

**Risks Related to Our Technology Investment Strategy and Enquantum**

***Our expansion into the technology sector through EZRA International Group and Scale51 represents a new line of business in which we have limited operating experience.***

In January 2026, we launched EZRA International Group and introduced our Scale51 operating model, under which we intend to pursue majority ownership positions in technology-driven businesses. Operating, evaluating, and managing technology-focused businesses requires expertise that differs materially from the expertise required to operate our insurance brokerage and InsurTech businesses, and our management team has limited direct experience operating businesses in many of the technology subsectors we may target, including post-quantum cryptography, cybersecurity, artificial intelligence, and other emerging technology fields. Successful execution of our Scale51 strategy depends on our ability to identify suitable investment opportunities, conduct adequate technical and commercial diligence, negotiate transactions on favorable terms, secure required regulatory and third-party approvals, integrate or oversee acquired or portfolio companies, and recruit and retain personnel with relevant technical expertise. We may be unable to do any of these things effectively. If our Scale51 strategy proves unsuccessful, our financial condition, results of operations, and the market price of our common stock could be materially adversely affected.

***Investments in early-stage technology companies, including Enquantum, are highly speculative and subject to a substantial risk of loss.***

Enquantum is an early-stage company that has generated no revenue, has a shareholders' deficit, has current liabilities in excess of current assets, and is dependent on our continued milestone funding for its operations. Early-stage technology companies are subject to numerous risks, including the lengthy, expensive, and uncertain nature of technology development; the possibility that products or technologies will fail to perform as intended or fail to achieve commercial acceptance; reliance on a small number of key personnel; the need to secure and maintain intellectual property protection; competition from larger and better-capitalized companies and from alternative or substitute technologies; and dependence on additional capital, which may be unavailable on acceptable terms or at all. Many early-stage technology companies fail to achieve commercialization and ultimately cease operations. We may be required to write down or write off all or a substantial portion of our investment in Enquantum, and we may not realize any return on our investment.

***The market for post-quantum cryptography and related technologies is unproven, and Enquantum's products may fail to achieve technical or commercial success.***

Enquantum's business is focused on post-quantum cryptography and related data protection technologies. The market for post-quantum cryptography is at an early and evolving stage, and broader commercial adoption depends on a number of factors outside Enquantum's control, including the timing and pace of the development of cryptographically relevant quantum computers, the publication and adoption of post-quantum cryptographic standards by U.S. and foreign standards-setting bodies (including the National Institute of Standards and Technology), regulatory mandates affecting cryptographic transitions, and customer awareness of and willingness to invest in post-quantum protections. Enquantum's product candidates may fail to satisfy applicable standards, may be technically inferior to competing products or implementations developed by larger or better-resourced competitors, or may be rendered obsolete by alternative technologies or approaches. Even if Enquantum's technology proves technically sound, the market may not develop on the timeline or at the scale that Enquantum and we currently anticipate.

***Enquantum's business is dependent on its ability to obtain, maintain, and enforce intellectual property rights, which is uncertain.***

The value of our investment in Enquantum is substantially dependent on Enquantum's ability to obtain, maintain, defend, and enforce patent, trade secret, and other intellectual property protection for its quantum-encryption technologies, product candidates, and know-how. Enquantum's intellectual property positions involve complex legal, scientific, and factual questions, and we have allocated a substantial portion of the excess of our investment cost over Enquantum's net assets to Enquantum's intellectual property and in-process research and development. Enquantum may be unable to obtain meaningful patent protection in relevant jurisdictions, issued patents may be narrowed, invalidated, or held unenforceable, and competitors may develop products that design around Enquantum's patents. Enquantum may also be subject to claims that its products or technologies infringe third-party intellectual property rights, including from larger competitors with extensive patent portfolios in cryptography and security. Any failure to protect or defend Enquantum's intellectual property could materially adversely affect Enquantum's prospects, the value of our investment, and the recoverability of the basis difference allocated to Enquantum's intellectual property and in-process research and development.

***We may not obtain a controlling interest in Enquantum on the timeline we currently anticipate, or at all.***

We have entered into a Share Purchase Agreement contemplating the acquisition of up to 51% of Enquantum's fully diluted ordinary shares for aggregate consideration of approximately $2.1 million, payable in milestone-based tranches over approximately ten months and including a final control step-up tranche payable in shares of our common stock. Our ability to acquire a controlling interest in Enquantum is subject to satisfaction of specified milestones and other conditions, the continued availability of capital to fund the remaining tranches, the absence of disputes between the parties, and the absence of intervening regulatory or third-party developments. We may be unable to satisfy the conditions to one or more remaining tranches on a timely basis, or at all. Even if we acquire a controlling interest, we will be required to consolidate Enquantum as a majority-owned subsidiary under U.S. generally accepted accounting principles, which would materially change our consolidated financial statements and may introduce volatility into our reported results.

***Our investment in Enquantum requires significant ongoing capital commitments that may exceed currently anticipated amounts.***

Our remaining unfunded commitment under the Enquantum Share Purchase Agreement is approximately $1,458,000 in cash tranches, plus approximately $125,000 payable in shares of our common stock for the final control step-up tranche. Enquantum is dependent on our continued milestone funding for its operations, and Enquantum may require additional capital from us beyond our current commitments to fund its operations, complete development of its product candidates, or achieve commercialization. Any such additional funding requirements could be substantial and may exceed amounts we currently anticipate. We may not have sufficient capital to satisfy these funding needs, and any required external financing may not be available on acceptable terms or at all. To the extent we are unable or unwilling to provide additional funding to Enquantum, the value of our existing investment in Enquantum could be impaired and Enquantum's operations may be curtailed or cease entirely.

***Our investment in Enquantum, an Israeli company, exposes us to cross-border legal, regulatory, geopolitical, and tax risks.***

Enquantum is an Israeli company with operations in Israel. Our investment is therefore subject to a range of cross-border risks that we have not historically faced in our domestic insurance brokerage business, including the application of Israeli corporate, securities, intellectual property, employment, and tax laws and regulations to Enquantum and to our investment; restrictions on the export of cryptographic technology under U.S. and Israeli export control regimes; foreign currency exchange risks; political, economic, and military instability in Israel and the broader region, including ongoing armed conflicts and security risks affecting Israeli operations and personnel; and difficulties in enforcing contractual rights or judgments across jurisdictions. We rely on Israeli counsel and advisors with respect to matters of Israeli law, and our directors, officers, and U.S. counsel may have limited ability to independently evaluate Israeli legal, regulatory, and operational risks. Any of these risks, individually or in the aggregate, could materially adversely affect Enquantum's operations and the value of our investment.

***Our minority position in Enquantum currently limits our ability to control or influence its strategic direction.***

We currently hold a minority equity interest in Enquantum, representing approximately 29.4% of Enquantum's issued and outstanding shares as of April 21, 2026. We hold two of five seats on Enquantum's board of directors, but we do not control Enquantum, and key strategic, operational, financing, and personnel decisions affecting Enquantum may be made without our consent. Enquantum may pursue a strategy with which we disagree, may issue additional equity that dilutes our ownership interest, may enter into transactions on terms that we view as unfavorable, or may experience disputes among its equity holders or management. Until we acquire a controlling interest, our ability to direct Enquantum's affairs to realize our investment objectives will be limited.

***The accounting treatment of our Enquantum investment is complex and subject to revision based on subsequent events.***

We account for our investment in Enquantum under the equity method of accounting, with a substantial portion of our investment cost recognized as an indefinite-lived intangible basis difference allocated to Enquantum's quantum-encryption intellectual property and in-process research and development. Application of the relevant accounting standards to this investment requires significant judgment, and the carrying value of the investment is subject to evaluation for impairment whenever events or circumstances indicate the carrying value may not be recoverable. If we acquire a controlling interest in Enquantum, we will be required to apply business combination accounting under ASC 805, which would require, among other things, the remeasurement of our existing investment at fair value and recognition of any resulting gain or loss, the identification and fair value measurement of acquired assets and assumed liabilities, and the consolidation of Enquantum's operating results and financial position. Changes in our or Enquantum's circumstances, including changes in milestone achievement, financing terms, governance rights, intellectual property positions, or the financial condition of Enquantum, may require us to revise our accounting conclusions, recognize material impairment charges, or restate prior period financial statements.

**Risks Related to Our Life Sciences Investment Strategy and LGG**

***Our expansion into the life sciences sector represents a new line of business in which we have limited operating experience.***

Through LGG, we have entered the healthcare and life sciences sector, a field in which we have not previously operated and in which our management team has limited direct operating experience. The life sciences sector is highly specialized and differs materially from the insurance and digital asset businesses that have historically constituted our principal lines of business. Successfully evaluating, executing, and managing investments in healthcare-related companies requires scientific, clinical, regulatory, and commercial expertise that we may not possess internally and that we may be required to obtain through hires, advisors, or third-party consultants, any of which may be costly or unavailable on acceptable terms. Our lack of historical experience in the sector may impair our ability to identify suitable investment opportunities, conduct adequate diligence, anticipate sector-specific risks, or realize the anticipated benefits of our life sciences strategy. If our life sciences strategy proves unsuccessful, our financial condition, results of operations, and the market price of our common stock could be materially adversely affected.

***Investments in early-stage life sciences companies, including Innervate, are highly speculative and subject to a substantial risk of loss.***

LGG's initial investment is in Innervate, an early-stage life sciences company developing radiopharmaceutical product candidates. Early-stage life sciences companies are subject to numerous risks that are unique to the sector, including the lengthy, expensive, and uncertain nature of preclinical and clinical development; the need to obtain regulatory approval from the U.S. Food and Drug Administration and comparable foreign authorities before any product candidate may be commercialized; the possibility that product candidates will fail to demonstrate safety or efficacy at any stage of development; reliance on third-party manufacturers, contract research organizations, and clinical investigators; the need to secure and maintain patent and other intellectual property protection; potential product liability exposure; competition from larger and better-capitalized companies; and dependence on additional capital, which may be unavailable on acceptable terms or at all. Radiopharmaceutical products in particular are subject to specialized regulatory requirements relating to the handling, transportation, manufacture, and administration of radioactive materials. Many early-stage life sciences companies fail to bring any product to market and ultimately cease operations. We may be required to write down or write off all or a substantial portion of our investment in Innervate, and we may not realize any return on our investment.

***LGG is a newly formed entity with no operating history, and we may not realize the anticipated benefits of our life sciences platform strategy.***

LGG was formed in April 2026 and has no operating history. We expect LGG to serve as the platform through which we pursue additional investments in the healthcare and life sciences sector, but there can be no assurance that LGG will identify, complete, or successfully manage future investments, or that any such investments will generate returns. Our ability to deploy capital through LGG is dependent on, among other things, the availability of suitable investment opportunities, our continued willingness and ability to fund LGG, the performance of LGG's portfolio companies, and the cooperation of our minority partner in LGG. The formation of LGG and the establishment of related governance, accounting, and compliance infrastructure may also divert management attention and resources from our other lines of business. If LGG fails to achieve its strategic objectives, we may not recover the capital we have committed to LGG and our financial condition and results of operations could be materially and adversely affected.

***We have committed capital to LGG and may be required to commit additional capital, which may not be available on favorable terms.***

In connection with the formation of LGG, we entered into a promissory note providing for borrowings by LGG of up to $2.0 million, $500,000 of which had been advanced as of April 30, 2026. We may, in the future, be required or elect to provide additional debt or equity financing to LGG to fund follow-on investments in Innervate, to support new investments by LGG, or to fund LGG's operating expenses. Any such additional funding requirements could be substantial and may exceed amounts we currently anticipate. We may not have sufficient capital available to satisfy these funding needs from cash on hand, and any required external financing may not be available on acceptable terms, or at all. To the extent we are unable or unwilling to provide additional funding to LGG, the value of our existing investments in LGG and its portfolio companies could be impaired. Conversely, our funding of LGG may reduce the capital available for our other business lines and strategic priorities.

***Our investment in LGG and Innervate involves significant related party transactions and conflicts of interest.***

LGG is owned approximately 51% by us and approximately 49% by LifeSci Management Group LLC, an entity owned by certain members of our management and Board of Directors. As a result, members of our management and Board of Directors have direct and indirect economic interests in LGG that differ from those of our public stockholders. In addition, one of our directors serves as the chief executive officer of Innervate, the company in which LGG made its initial investment. These overlapping relationships create actual and potential conflicts of interest with respect to, among other matters, the negotiation of the terms of our funding arrangements with LGG, decisions regarding additional capital commitments to LGG, the selection, valuation, and timing of LGG investments, decisions concerning Innervate (including any future financings, strategic transactions, or exits), the allocation of business opportunities between us and LGG, and the management of LGG's portfolio. Although the formation of LGG, the related financing arrangements, and the Innervate investment were reviewed and approved by the independent and disinterested members of our Board of Directors, the existence of these conflicts may result in decisions that are less favorable to us than those that would be made in arm's-length transactions with unrelated third parties, and could expose us to litigation, regulatory scrutiny, or reputational harm. Future related party transactions involving LGG, its minority owner, or its portfolio companies may arise, and we cannot assure you that the procedures we have implemented will be adequate to mitigate the risks associated with such transactions.

***Our minority ownership position in Innervate limits our ability to control or influence its strategic direction.***

LGG holds a minority equity interest in Innervate. Although LGG has obtained certain additional rights in connection with its investment, LGG does not control Innervate, and key strategic, operational, financing, and personnel decisions affecting Innervate may be made without LGG's consent. Innervate may pursue a strategy with which we disagree, may issue additional equity that dilutes LGG's ownership interest, may enter into transactions on terms that we view as unfavorable, or may experience disputes among its equity holders or management. Our director's role as chief executive officer of Innervate does not assure that Innervate's actions will align with our interests, and any decisions made by that director in his capacity as an officer of Innervate are subject to fiduciary duties owed to Innervate and its other equity holders, which may diverge from his duties to us. The illiquid and privately held nature of LGG's investment in Innervate may also make it difficult or impossible for us to exit the investment on a timely basis or at a favorable price.

***Consolidation of LGG, and any future consolidation of Innervate, may introduce volatility and complexity into our financial statements.***

We expect to consolidate LGG in our financial statements as a majority-owned subsidiary, with the noncontrolling interest of LifeSci Management Group LLC reflected accordingly. As LGG's portfolio grows, our consolidated financial statements will reflect LGG's investment activity, including changes in the fair value of its portfolio investments and operating expenses, which may introduce volatility and complexity into our reported results. Application of the relevant accounting standards to LGG, its investments, and its capital structure requires significant judgment, and changes in our or LGG's circumstances—including changes in ownership percentages, governance rights, or the financial condition of portfolio companies—may require us to revise our accounting conclusions, recognize impairment charges, or restate prior period financial statements. In addition, the integration of life sciences-related accounting, valuation, and disclosure processes into our financial reporting function may strain our internal controls over financial reporting, particularly given our status as a smaller reporting company.

***Innervate's radiopharmaceutical product candidates are subject to specialized and overlapping regulatory regimes that increase the cost, complexity, and risk of development.***

Radiopharmaceutical products are subject not only to the regulatory requirements applicable to pharmaceutical products generally, including the U.S. Food and Drug Administration's investigational new drug, new drug application, and biologics license application processes, but also to the requirements of the U.S. Nuclear Regulatory Commission, Agreement State radiation control programs, the U.S. Department of Transportation, and analogous foreign authorities governing the production, handling, storage, transportation, and administration of radioactive materials. These overlapping regimes can lengthen development timelines, increase costs, and create the risk of inconsistent or conflicting requirements. Failure to obtain or maintain any required license, registration, or authorization, or any violation of applicable radiation safety or transportation requirements, could delay or prevent the development or commercialization of Innervate's product candidates and adversely affect the value of LGG's investment.

***Innervate depends on the availability of medical radioisotopes and specialized manufacturing infrastructure, the supply of which is limited and subject to disruption.***

Radiopharmaceutical product candidates require medical radioisotopes, many of which are produced by a small number of nuclear reactors and cyclotrons worldwide and are subject to supply constraints, geopolitical risk, aging production infrastructure, and short half-lives that make stockpiling impractical. In addition, the manufacture, compounding, and distribution of radiopharmaceutical products require specialized facilities, equipment, and personnel that are not widely available. Disruptions in isotope supply or manufacturing capacity, the loss of a key supplier or contract manufacturer, or the inability to secure manufacturing capacity on commercially reasonable terms could delay clinical development, impair commercialization, or result in increased costs for Innervate, any of which could materially adversely affect the value of LGG's investment.

***Even if Innervate's product candidates obtain regulatory approval, commercial success will depend on coverage, pricing, and reimbursement determinations that are outside Innervate's control.***

The commercial viability of any approved radiopharmaceutical product depends on the willingness of government payors, including Medicare and Medicaid, and private third-party payors to provide adequate coverage and reimbursement. Coverage and reimbursement determinations for radiopharmaceutical products, particularly those administered in hospital outpatient or imaging settings, are subject to evolving payment methodologies, separate payment policies, bundling rules, and ongoing legislative and regulatory reform efforts in the United States and abroad. There can be no assurance that Innervate's product candidates, if approved, will receive favorable coverage or reimbursement, and inadequate reimbursement could limit market acceptance, pricing, and ultimately the value of LGG's investment.

***Innervate's success depends on its ability to obtain, maintain, and enforce intellectual property rights, which is uncertain and expensive.***

The value of LGG's investment in Innervate is substantially dependent on Innervate's ability to obtain, maintain, defend, and enforce patent and other intellectual property protection for its product candidates, technologies, and know-how. The patent positions of life sciences companies are highly uncertain and involve complex legal, scientific, and factual questions. Innervate may be unable to obtain meaningful patent protection in relevant jurisdictions, issued patents may be narrowed, invalidated, or held unenforceable, and competitors may develop products that design around Innervate's patents. Innervate may also be subject to claims that its product candidates infringe third-party intellectual property rights, which could result in injunctive relief, damages, or the need to obtain licenses on commercially unreasonable terms. Any failure to protect or defend Innervate's intellectual property could materially adversely affect Innervate's prospects and the value of LGG's investment.

***Innervate is exposed to product liability and clinical trial liability risks that may not be adequately covered by insurance.***

The development, testing, and any commercialization of radiopharmaceutical product candidates involves inherent risk of product liability claims, including claims arising from radiation exposure, adverse events in clinical trials, contamination, off-target effects, manufacturing defects, and the prescribing or administration of approved products. Such claims may result in substantial damages, regulatory action, the suspension or termination of clinical trials, recalls, reputational harm, and significant defense costs. Insurance coverage for clinical trial liability and product liability in the radiopharmaceutical sector may be limited, expensive, or unavailable, and Innervate may not maintain coverage that is adequate to address all potential claims. Any uninsured or underinsured liability could materially impair Innervate's operations and the value of LGG's investment.

***Innervate is subject to a broad range of healthcare laws and regulations, violations of which could result in significant penalties.***

Innervate's current and future operations may be subject to extensive U.S. federal and state, and analogous foreign, healthcare laws and regulations, including, among others, the federal Anti-Kickback Statute, the federal False Claims Act, the federal Physician Payments Sunshine Act, the Health Insurance Portability and Accountability Act, the Foreign Corrupt Practices Act, and laws governing the marketing and promotion of pharmaceutical products. These laws are subject to evolving interpretation and aggressive enforcement, and even unintentional violations may give rise to substantial civil and criminal penalties, exclusion from federal healthcare programs, corporate integrity obligations, and reputational harm. Any government investigation or enforcement action involving Innervate, even if ultimately resolved without findings of wrongdoing, could materially adversely affect Innervate and the value of LGG's investment.

***The fair value of LGG's investment in Innervate is inherently uncertain and may be subject to material adjustment.***

Innervate is a privately held company with no public trading market for its securities, and the fair value of LGG's investment will be determined based on management's estimates and judgments, including assumptions regarding Innervate's product development progress, capital needs, comparable company valuations, the rights and preferences of Innervate's various classes of equity, and broader market conditions. These valuation determinations are inherently subjective and may be required to be revised materially as a result of subsequent events, including the results of clinical or preclinical studies, regulatory developments, financing rounds at lower valuations (so-called "down rounds"), changes in market conditions, or new information regarding Innervate. Any downward adjustment in the fair value of LGG's investment could result in material non-cash charges to our consolidated results of operations.

***Future investments by LGG may expose us to additional, and potentially different, life sciences-related risks.***

We have stated our expectation that LGG will serve as a platform for additional investments in the healthcare and life sciences sector. Future investments may involve different therapeutic modalities, disease areas, regulatory pathways, geographies, or stages of development than the Innervate investment, and may expose us to risks that we have not previously encountered. Future investments may also involve additional related party considerations, larger capital commitments, the use of leverage, the issuance of equity or debt securities by us or our subsidiaries, or the assumption of contingent liabilities. We may be unable to identify suitable investments, complete acquisitions on acceptable terms, integrate or oversee acquired or portfolio companies, or realize the strategic and financial benefits we anticipate. Any failure to execute on LGG's investment strategy could materially adversely affect our financial condition, results of operations, and the market price of our common stock.

***Our expansion into the life sciences sector, alongside our existing insurance and digital asset businesses, may adversely affect investor perceptions of our strategic focus and capital discipline.***

Within a relatively short period, we have announced significant new strategic initiatives, including our digital asset treasury strategy and, through LGG, our expansion into the healthcare and life sciences sector. Investors, analysts, rating agencies, lenders, customers, and regulators may view these initiatives as evidence of strategic drift, lack of focus, or insufficient capital discipline, particularly when undertaken alongside related party arrangements and during a period in which we are addressing Nasdaq listing compliance matters. Negative perceptions could adversely affect our access to capital, the cost of capital, our relationships with counterparties, our ability to attract and retain personnel, and the market price of our common stock, regardless of the underlying performance of any individual business line.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

Not applicable.

**Item 3. Defaults Upon Senior Securities.**

Not applicable.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

(a) On March 11, 2026, the Company adopted Amended and Restated Bylaws (the "Amended and Restated Bylaws"). The Amended and Restated Bylaws revise the provision governing the date of the Company's annual meeting of shareholders to provide that the annual meeting will be held on such date and at such time as determined by the Company's Board of Directors, rather than on the second Tuesday of April of each year. No other substantive changes were made to the bylaws.

In addition, on March 17, 2026, the Company filed Articles of Restatement of its Articles of Incorporation (the "Articles of Restatement") with the Secretary of State of the State of Florida. The Articles of Restatement restate the Company's Articles of Incorporation in their entirety and became effective upon filing.

(b) There have been no material changes to the procedures by which security holders may recommend nominees to the Company's Board of Directors since the Company last provided disclosure in response to the requirements of Item 407(c)(3) of Regulation S-K.

c) During the quarter ended March 31, 2026, no director or officer adopted or terminated: (i) any contract, instruction or written plan for the purchase or sale of securities of the registrant intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (a "Rule 10b5-1 trading arrangement"); and/or (ii) any "non-Rule 10b5-1 trading arrangement" as defined in Item 408(c) of Regulation S-K

**Item 6. Exhibits**

The following exhibits are filed or furnished with this Quarterly Report on Form 10-Q.

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| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 3.1 | <br> [Articles of Restatement to the Articles of Incorporation of Reliance Global Group, Inc. (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on March 17, 2026).](https://www.sec.gov/Archives/edgar/data/1812727/000149315226010622/ex3-2.htm) |
| 3.2 | [Amended and Restated Bylaws of Reliance Global Group, Inc., dated March 11, 2026 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on March 17, 2026).](https://www.sec.gov/Archives/edgar/data/1812727/000149315226010622/ex3-1.htm) |
| 10.1 | [Common Stock Purchase Agreement, dated as of August 26, 2025, by and between Reliance Global Group, Inc. and White Lion Capital, LLC (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on August 27, 2025).](https://www.sec.gov/Archives/edgar/data/1812727/000149315225012397/ex10-1.htm) |
| 10.2\* | [Registration Rights Agreement, dated as of August 26, 2025, by and between Reliance Global Group, Inc. and White Lion Capital, LLC](ex10-2.htm) |
| 10.3 | [Interim Crypto Purchase Agreement, entered into between the Company and Moshe Fishman, dated September 16, 2025 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 19, 2025).](https://www.sec.gov/Archives/edgar/data/1812727/000149315225014298/ex10-1.htm) |
| 10.4 | [Amendment No. 1 to Common Stock Purchase Agreement, dated November 5, 2025, by and between Reliance Global Group, Inc. and White Lion Capital, LLC (incorporated by reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q filed on November 6, 2025).](https://www.sec.gov/Archives/edgar/data/1812727/000149315225021089/ex10-7.htm) |
| 10.5 | <br> [Amendment No. 2 to Common Stock Purchase Agreement, dated March 12, 2026, by and between Reliance Global Group, Inc. and White Lion Capital, LLC (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on March 17, 2026).](https://www.sec.gov/Archives/edgar/data/1812727/000149315226010622/ex10-3.htm) |
| 10.6 | [Full and Final Release and Settlement Agreement, dated March 13, 2026, by and among Reliance Global Group, Inc., Reliance Global Holdings, LLC, Ezra S. Beyman, Debbie Beyman, Eli Rubin and 9352-9113 Quebec Inc. d/b/a Excellent Photo (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on March 17, 2026).](https://www.sec.gov/Archives/edgar/data/1812727/000149315226010622/ex10-4.htm) |
| 10.7 | [Full and Final Release and Settlement Agreement, dated March 11, 2026, by and among Reliance Global Group, Inc., Reliance Global Holdings, LLC, Ezra S. Beyman, Debbie Beyman, Eliezer Kreindler and Lazar's Group, Inc (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on March 17, 2026).](https://www.sec.gov/Archives/edgar/data/1812727/000149315226010622/ex10-5.htm) |
| 10.8 | [Promissory Note, dated April 29, 2026, by and between EZRA International Group LLC and LifeSci Global Group LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 4, 2026).](https://www.sec.gov/Archives/edgar/data/1812727/000149315226021123/ex10-1.htm) |
| 10.9 | [Unit Subscription Agreement, dated April 30, 2026, by and between Innervate Radiopharmaceuticals LLC and LifeSci Global Group LLC (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 4, 2026).](https://www.sec.gov/Archives/edgar/data/1812727/000149315226021123/ex10-2.htm) |
| 10.10 | [Letter Agreement (Side Letter), dated April 30, 2026, by and between Innervate Radiopharmaceuticals LLC and LifeSci Global Group LLC (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on May 4, 2026).](https://www.sec.gov/Archives/edgar/data/1812727/000149315226021123/ex10-3.htm) |
| 10.11 | [Reliance Global Group, Inc. 2025 Equity Inventive Plan (incorporated by reference to Appendix I to the Definitive Proxy Statement on Schedule 14A filed on April 15, 2025).](https://www.sec.gov/Archives/edgar/data/1812727/000164117225004789/formdef14a.htm) |
| 10.12 | [Amendment No. 1 to the Reliance Global Group, Inc. 2025 Equity Incentive Plan, dated May 6, 2026.](ex10-12.htm) |
| 10.13 | [Share Purchase Agreement, dated February 5, 2026, by and between Reliance Global Group, Inc. and Enquantum Ltd. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on February 10, 2026).](https://www.sec.gov/Archives/edgar/data/1812727/000149315226005906/ex10-1.htm) |
| 10.14 | [Amendment No. 1 to Share Purchase Agreement, dated February 19, 2026, by and between Reliance Global Group, Inc. and Enquantum Ltd. (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed with the Securities and Exchange Commission on February 25, 2026).](https://www.sec.gov/Archives/edgar/data/1812727/000149315226007959/ex10-2.htm) |

---

---

| | |
|:---|:---|
| 31.1\* | [Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex31-1.htm) |
| 31.2\* | [Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex31-2.htm) |
| 32.1\*\* | [Section 1350 Certification of the Chief Executive Officer and Chief Financial Officer](ex32-1.htm) |
| 101.INS\* | Inline XBRL Instance Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Labels Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted in IXBRL, and included in exhibit 101). |

---

\*Filed herewith

\*\*Furnished herewith

† Management contract, compensation plan or arrangement.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Reliance Global Group, Inc.** | **Reliance Global Group, Inc.** |
| Date: May 7, 2026 | By: | */s/ Ezra Beyman* |
|  |  | Ezra Beyman |
|  |  | Chief Executive Officer |
|  |  | (principal executive officer) |
| Date: May 7, 2026 | By: | */s/ Joel Markovits* |
|  |  | Joel Markovits |
|  |  | Chief Financial Officer |
|  |  | (principal financial officer and principal accounting officer) |

---

## Exhibit 10.2

**Exhibit 10.2**

**REGISTRATION RIGHTS AGREEMENT**

This Registration Rights Agreement (this "**<u>Agreement</u>**") is entered into effective as August 26, 2025 (the "**<u>Execution Date</u>**"), by and between Reliance Global Group, Inc., a Florida corporation (the "**<u>Company</u>**"), and White Lion Capital, LLC, a Nevada limited liability company (the "**<u>Investor</u>**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The parties desire that, upon the terms and subject to the conditions and limitations forth under that certain common stock purchase agreement between the parties dated as of the Execution Date (the "**<u>Purchase Agreement</u>**"), during the Commitment Period (as defined therein), the Company may issue and sell to the Investor, from time to time, and the Investor shall purchase from the Company, up to $10,000,000 in aggregate gross purchase price of newly issued shares of Common Stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Pursuant to the terms of, and in consideration for the Investor entering into, the Purchase Agreement, and to induce the Investor to execute and deliver the Purchase Agreement, the Company has agreed to provide the Investor with certain registration rights with respect to the Registrable Securities (as defined herein) as set forth herein.

**<u>AGREEMENT</u>**

**NOW, THEREFORE,** in consideration of the representations, warranties, covenants and agreements contained herein and in the Purchase Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, intending to be legally bound hereby, the Company and the Investor hereby agree as follows:

1. **<u>Definitions</u>.**

Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Agreement**" shall have the meaning assigned to such term in the preamble of this Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Allowable Grace Period**" shall have the meaning assigned to such term in Section 3(o).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Blue Sky Filing**" shall have the meaning assigned to such term in Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Business Day**" means any day other than Saturday, Sunday or any other day on which commercial banks in New York, New York are authorized or required by law to remain closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Claims**" shall have the meaning assigned to such term in Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Commission**" means the U.S. Securities and Exchange Commission or any successor entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Common Stock**" shall have the meaning assigned to such term in the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Company**" shall have the meaning assigned to such term in the preamble of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Effective Date**" means the date that the applicable Registration Statement has been declared effective by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Indemnified Damages**" shall have the meaning assigned to such term in Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Initial Registration Statement**" shall have the meaning assigned to such term in Section 2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Investor**" shall have the meaning assigned to such term in the preamble of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Investor Party**" and "**Investor Parties**" shall have the meaning assigned to such terms in Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Legal Counsel**" shall have the meaning assigned to such term in Section 2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**New Registration Statement**" shall have the meaning assigned to such term in Section 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Person**" means any person or entity, whether a natural person, trustee, corporation, partnership, limited partnership, limited liability company, trust, unincorporated organization, business association, firm, joint venture, governmental agency or authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Prospectus**" means the prospectus in the form included in the Registration Statement at the applicable Effective Date of the Registration Statement, as supplemented from time to time by any Prospectus Supplement, including the documents incorporated by reference therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Prospectus Supplement**" means any prospectus supplement to the Prospectus filed with the Commission from time to time pursuant to Rule 424(b) under the Securities Act, including the documents incorporated by reference therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Purchase Agreement**" shall have the meaning assigned to such term in the recitals to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**register**," "**registered**," and "**registration**" refer to a registration effected by preparing and filing one or more Registration Statements in compliance with the Securities Act and pursuant to Rule 415 and the declaration of effectiveness of such Registration Statement(s) by the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Registrable Securities**" means all of (i) the Purchase Notice Shares (ii) the Commitment Shares and (iii) any capital stock of the Company issued or issuable with respect to such Purchase Notice Shares or Commitment Shares, including, without limitation, (1) as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise and (2) shares of capital stock of the Company into which the shares of Common Stock are converted or exchanged and shares of capital stock of a successor entity into which the shares of Common Stock are converted or exchanged, in each case until such time as such securities cease to be Registrable Securities pursuant to Section 2(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Registration Period**" shall have the meaning assigned to such term in Section 3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Registration Statement**" means a registration statement or registration statements of the Company filed under the Securities Act registering the resale by the Investor of Registrable Securities, including without limitation a New Registration Statement, as such registration statement or registration statements may be amended and supplemented from time to time, including all documents filed as part thereof or incorporated by reference therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Rule 144**" means Rule 144 promulgated by the Commission under the Securities Act, as such rule may be amended from time to time, or any other similar or successor rule or regulation of the Commission that may at any time permit the Investor to sell securities of the Company to the public without registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Rule 415**" means Rule 415 promulgated by the Commission under the Securities Act, as such rule may be amended from time to time, or any other similar or successor rule or regulation of the Commission providing for offering securities on a delayed or continuous basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Staff**" shall have the meaning assigned to such term in Section 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Violations**" shall have the meaning assigned to such term in Section 6(a).

**2.** **<u>Registration</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) <u>Mandatory Registration</u>.** The Company shall, no later than ten (10) Business Days following the Execution Date, file with the Commission an initial Registration Statement on Form S-1 (or any successor form) registering the resale by the Investor of the maximum number of Registrable Securities as shall be permitted to be included thereon in accordance with applicable Commission rules, regulations and interpretations (determined as of two Business Days prior to such submission or filing) so as to permit the resale of such Registrable Securities by the Investor under Rule 415 under the Securities Act at then prevailing market prices (and not fixed prices) (the "**<u>Initial Registration Statement</u>**"). The Initial Registration Statement shall contain a Prospectus describing the material terms and conditions of the Purchase Agreement, and disclosing all information relating to the transactions contemplated thereby required to be disclosed in the Prospectus, including, without limitation, the "Selling Stockholder" and "Plan of Distribution" sections in substantially the form attached hereto as <u>Exhibit A</u>, in order to conform, in all material respects when filed with the Commission pursuant to Rule 424(b) under the Securities Act, to the requirements of the Securities Act and the rules and regulations thereunder. The Company shall use its commercially reasonable best efforts to have the Initial Registration Statement declared effective by the Commission as soon as reasonably practicable following the filing thereof with the Commission; provided, however, that the Company's obligations to include the Registrable Securities in the Initial Registration Statement are contingent upon the Investor furnishing in writing to the Company such information, and executing such documents, in connection with such registration as the Company may reasonably request in accordance with <u>Section 4(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Legal Counsel</u>.** Subject to <u>Section 5</u> hereof, the Investor shall have the right to select one legal counsel to review and oversee, solely on its behalf, any registration pursuant to this Section 2 ("**<u>Legal Counsel</u>**"), which shall be Greenberg Traurig, P.A., or such other counsel as thereafter designated by the Investor. The Company shall have no obligation to reimburse the Investor for any legal fees and expenses of the Legal Counsel incurred in connection with the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Sufficient Number of Shares Registered</u>.** If at any time all Registrable Securities are not covered by the Initial Registration Statement filed pursuant to Section 2(a) as a result of Section 2(e) or otherwise, or the Initial Registration Statement is no longer effective, the Company shall use its commercially reasonable best efforts, to the extent necessary and permissible, amend the Initial Registration Statement, cause an existing registration statement that has been filed but not declared effective by the Commission to become effective, or to file with the Commission one or more additional Registration Statements so as to cover all of the Registrable Securities not covered by the Initial Registration Statement, in each case, as soon as practicable (taking into account any position of the staff of the Commission ("**Staff**") with respect to the date on which the Staff will permit such additional Registration Statement(s) to be filed with the Commission and the rules and regulations of the Commission) (each such additional Registration Statement, a "**New Registration Statement**"). The Company shall use its commercially reasonable best efforts to cause each such New Registration Statement to become effective as soon as reasonably practicable following the filing thereof with the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>No Inclusion of Other Securities; Statutory Underwriter Status</u>.** In no event shall the Company include any securities other than Registrable Securities on any Registration Statement pursuant to Section 2(a) or Section 2(c) without consulting the Investor and Legal Counsel and receiving the written consent of the Investor, prior to filing such Registration Statement with the Commission. The Investor acknowledges that it will be disclosed as an "underwriter" and a "selling stockholder" in each Registration Statement and in any Prospectus contained therein to the extent required by applicable law and to the extent the Prospectus is related to the resale of Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Offering</u>.** If the Staff or the Commission seeks to prevent the Company from including any or all of the Registrable Securities proposed to be registered under a Registration Statement due to limitations on the use of Rule 415, or if after the filing of any Registration Statement, or any Prospectus or Prospectus Supplement, pursuant to <u>Section 2(a)</u> or <u>Section 2(c)</u>, the Company is otherwise required by the Staff or the Commission to reduce the number of Registrable Securities included in such Registration Statement, then the Company shall reduce the number of Registrable Securities to be included in such Registration Statement (after consultation with the Investor and Legal Counsel as to the specific Registrable Securities to be removed therefrom), to no more than the maximum number of securities as is permitted to be registered by the Commission until such time as the Staff and the Commission shall so permit such Registration Statement to become effective and be used as aforesaid. Notwithstanding anything in this Agreement to the contrary, if after giving effect to the actions referred to in the immediately preceding sentence, the Staff or the Commission does not permit such Registration Statement to become effective and be used for resales by the Investor of Registrable Securities on a delayed or continuous basis under Rule 415 at then-prevailing market prices (and not fixed prices), the Company shall not request acceleration of the Effective Date of such Registration Statement, the Company shall promptly (but in no event later than 48 hours) request the withdrawal of such Registration Statement pursuant to Rule 477 under the Securities Act. In the event of any reduction in Registrable Securities pursuant to this paragraph, the Company shall use its commercially reasonable best efforts to file one or more New Registration Statements with the Commission in accordance with <u>Section 2(c)</u> until such time as all Registrable Securities have been included in Registration Statements that have been declared effective and the Prospectuses contained therein are available for use by the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any Registrable Security shall cease to be a "Registrable Security" at the earliest of the following: (i) when a Registration Statement covering such Registrable Security becomes or has been declared effective by the Commission and such Registrable Security has been sold or disposed of pursuant to such effective Registration Statement by the Investor; (ii) when such Registrable Security is held by the Company or one of its Subsidiaries; and (iii) the date that is the later of (A) the first (1<sup>st</sup>) anniversary of the date of termination of the Purchase Agreement in accordance with Article VIII of the Purchase Agreement and (B) the first (1<sup>st</sup>) anniversary of the date of the last sale of any Registrable Securities to the Investor pursuant to the Purchase Agreement.

**3.** **<u>Related Obligations</u>.**

For the duration of the Registration Period, the Company shall use its commercially reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof, and, pursuant thereto, during the term of this Agreement, the Company shall have the following obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Following the Execution Date, the Company shall promptly prepare and file with the Commission the Initial Registration Statement pursuant to Section 2(a) hereof and one or more New Registration Statements pursuant to Section 2(c) hereof with respect to the Registrable Securities, and the Company shall use its commercially reasonable best efforts to cause each such Registration Statement to become effective as soon as practicable after such filing. Subject to Allowable Grace Periods, the Company shall use its commercially reasonable best efforts to keep each Registration Statement effective (and the Prospectus contained therein available for use) pursuant to Rule 415 for resales by the Investor of Registrable Securities on a continuous basis at then-prevailing market prices (and not fixed prices) at all times until the earlier of (i) the date on which the Investor shall have sold all of the Registrable Securities covered by such Registration Statement and (ii) the date of termination of the Purchase Agreement if as of such termination date the Investor holds no Registrable Securities (or, if applicable, the date on which such securities cease to be Registrable Securities after the date of termination of the Purchase Agreement) (the "**<u>Registration Period</u>**"). Notwithstanding anything to the contrary contained in this Agreement (but subject to the provisions of Section 3(o) hereof), the Company shall ensure that, when filed and at all times while effective, each Registration Statement (including, without limitation, all amendments and supplements thereto) and the Prospectus (including, without limitation, all amendments and supplements thereto) used in connection with such Registration Statement shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case of Prospectuses, in the light of the circumstances in which they were made) not misleading. The Company shall submit to the Commission, as soon as reasonably practicable after the date that the Company learns that no review of a particular Registration Statement will be made by the Staff or that the Staff has no further comments on a particular Registration Statement (as the case may be), a request for acceleration of effectiveness of such Registration Statement to a time and date as soon as reasonably practicable in accordance with Rule 461 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Section 3(o) of this Agreement, the Company shall use its commercially reasonable best efforts to prepare and file with the Commission such amendments (including, without limitation, post-effective amendments) and supplements to each Registration Statement and the Prospectus used in connection with each such Registration Statement, which Prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep each such Registration Statement effective (and the Prospectus contained therein current and available for use) at all times during the Registration Period for such Registration Statement, and, during such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company required to be covered by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the Investor as set forth in such Registration Statement. Without limiting the generality of the foregoing, the Company covenants and agrees that (i) on the second (2<sup>nd</sup>) Business Day immediately following the Effective Date of the Initial Registration Statement and any New Registration Statement (or any post-effective amendment thereto), the Company shall file with the Commission in accordance with Rule 424(b) under the Securities Act the final Prospectus to be used in connection with sales pursuant to such Registration Statement (or post-effective amendment thereto), and (ii) if the transactions contemplated by any Purchase Notice are material to the Company (individually or collectively with all other prior Purchase Notices, the consummation of which have not previously been reported in any Prospectus Supplement filed with the Commission under Rule 424(b) under the Securities Act or in any report, statement or other document filed by the Company with the Commission under the Exchange Act), or if otherwise required under the Securities Act (or the interpretations of the Commission thereof), in each case as reasonably determined by the Company and the Investor, then, on the first (1<sup>st</sup>) Business Day immediately following the Closing Date, if a Purchase Notice was properly delivered to the Investor hereunder in connection with such purchase, the Company shall file with the Commission a Prospectus Supplement pursuant to Rule 424(b) under the Securities Act with respect to the purchase(s), the total purchase amount for the Purchase Notice Shares subject to such purchase(s) (as applicable), the applicable Purchase Amount(s) for such Purchase Notice Shares and the net proceeds that are to be (and, if applicable, have been) received by the Company from the sale of such Purchase Notice Shares. To the extent not previously disclosed in the Prospectus or a Prospectus Supplement, the Company shall disclose in its Quarterly Reports on Form 10-Q and in its Annual Reports on Form 10-K the information described in the immediately preceding sentence relating to all purchase(s) consummated during the relevant fiscal quarter and shall file such Quarterly Reports and Annual Reports with the Commission within the applicable time period prescribed for such report under the Exchange Act. In the case of amendments and supplements to any Registration Statement on Form S-1 or Prospectus related thereto that are required to be filed pursuant to this Agreement (including, without limitation, pursuant to this Section 3(b)) by reason of the Company filing a report on Form 8-K, Form 10-Q or Form 10-K or any analogous report under the Exchange Act, the Company shall have incorporated such report by reference into such Registration Statement and Prospectus, if applicable, or shall file such amendments or supplements to the Registration Statement or Prospectus with the Commission on the same day on which the Exchange Act report is filed that created the requirement for the Company to amend or supplement such Registration Statement or Prospectus, for the purpose of including or incorporating such report into such Registration Statement and Prospectus. The Company consents to the use of the Prospectus (including, without limitation, any supplement thereto) included in each Registration Statement in accordance with the provisions of the Securities Act and with the securities or "Blue Sky" laws of the jurisdictions in which the Registrable Securities may be sold by the Investor, in connection with the resale of the Registrable Securities and for such period of time thereafter as such Prospectus (including, without limitation, any supplement thereto) (or in lieu thereof, the notice referred to in Rule 173(a) under the Securities Act) is required by the Securities Act to be delivered in connection with resales of Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall (A) permit Legal Counsel an opportunity to review and comment upon (i) each Registration Statement at least two (2) Business Days prior to its filing with the Commission and (ii) all amendments and supplements to each Registration Statement (including, without limitation, the Prospectus contained therein) (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar or successor reports to the extent incorporated by reference into such Registration Statement or Prospectus Supplements the contents of which are limited to that set forth in such reports) within a reasonable number of days prior to their filing with the Commission, and (B) shall reasonably consider any comments of the Investor and Legal Counsel on any such Registration Statement or amendment or supplement thereto or to any Prospectus contained therein. The Company shall promptly furnish to Legal Counsel, without charge, (i) electronic copies of any correspondence from the Commission or the Staff to the Company or its representatives relating to each Registration Statement (which correspondence shall be redacted to exclude any material nonpublic information regarding the Company or any of its Subsidiaries), (ii) after the same is prepared and filed with the Commission, one (1) electronic copy of each Registration Statement and any amendment(s) and supplement(s) thereto, including, without limitation, all documents incorporated therein by reference, if requested by the Investor, and (iii) upon the effectiveness of each Registration Statement, one (1) electronic copy of the Prospectus included in such Registration Statement and all amendments and supplements thereto; provided, however, the Company shall not be required to furnish any document (other than the Prospectus, which may be provided in .PDF format) to Legal Counsel to the extent such document is available on Commission's Electronic Data Gathering, Analysis and Retrieval System ("**<u>EDGAR</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Without limiting any obligation of the Company under the Purchase Agreement, the Company shall promptly furnish to the Investor, without charge, (i) after the same is prepared and filed with the Commission, at least one (1) electronic copy of each Registration Statement and any amendment(s) and supplement(s) thereto, including, without limitation, all documents incorporated therein by reference, if requested by the Investor, (ii) upon the effectiveness of each Registration Statement, one (1) electronic copy of the Prospectus included in such Registration Statement and all amendments and supplements thereto and (iii) such other documents, including, without limitation, copies of any final Prospectus and any Prospectus Supplement thereto, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by the Investor; provided, however, the Company shall not be required to furnish any document (other than the Prospectus, which may be provided in .PDF format) to the Investor to the extent such document is available on EDGAR).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall take such action as is reasonably necessary to (i) register and qualify, unless an exemption from registration and qualification applies, the resale by the Investor of the Registrable Securities, under such other securities or "Blue Sky" laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions, such amendments (including, without limitation, post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be reasonably necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; <u>provided</u>, <u>however</u>, the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify Legal Counsel and the Investor of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or "Blue Sky" laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company shall notify Legal Counsel and the Investor in writing of the happening of any event, as promptly as reasonably practicable after becoming aware of such event, as a result of which the Prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided, that in no event shall such notice contain any material nonpublic information regarding the Company or any of its Subsidiaries), and, subject to Section 3(o), promptly prepare a supplement or amendment to such Registration Statement and such Prospectus contained therein to correct such untrue statement or omission. The Company shall also promptly notify Legal Counsel and the Investor in writing (i) when a Prospectus or any Prospectus Supplement or post-effective amendment has been filed, when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to Legal Counsel and the Investor by facsimile or e-mail (with read receipt) on the same day of such effectiveness), and when the Company receives written notice from the Commission that a Registration Statement or any post-effective amendment will be reviewed by the Commission, (ii) of any request by the Commission for amendments or supplements to a Registration Statement or related Prospectus or related information, (iii) of the Company's reasonable determination that a post-effective amendment to a Registration Statement would be appropriate and (iv) of the receipt of any request by the Commission or any other federal or state governmental authority for any additional information relating to the Registration Statement or any amendment or supplement thereto or any related Prospectus. The Company shall respond as promptly as reasonably practicable to any comments received from the Commission with respect to a Registration Statement or any amendment thereto. Nothing in this Section 3(f) shall limit any obligation of the Company under the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Company shall (i) use its commercially reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement or the use of any Prospectus contained therein, or the suspension of the qualification, or the loss of an exemption from qualification, of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible time and (ii) notify Legal Counsel and the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company shall hold in confidence and not make any disclosure of information concerning the Investor provided to the Company unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required to be disclosed in such Registration Statement pursuant to the Securities Act, (iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any other Transaction Document. The Company agrees that it shall, upon learning that disclosure of such information concerning the Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to the Investor and allow the Investor, at the Investor's expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Without limiting any obligation of the Company under the Purchase Agreement, the Company shall use its commercially reasonable best efforts either to (i) cause all of the Registrable Securities covered by each Registration Statement to be listed on the Principal Market, or (ii) secure designation and quotation of all of the Registrable Securities covered by each Registration Statement on another Principal Market. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company shall cooperate with the Investor and, to the extent applicable, use its commercially reasonable best efforts to facilitate the timely preparation and delivery of Registrable Securities, as DWAC Shares, to be offered pursuant to a Registration Statement and enable such DWAC Shares to be in such denominations or amounts (as the case may be) as the Investor may reasonably request from time to time. Investor hereby agrees that it shall cooperate with the Company, its counsel and Transfer Agent in connection with any issuances of DWAC Shares, and hereby represents, warrants and covenants to the Company that that it will resell such DWAC Shares only pursuant to the Registration Statement in which such DWAC Shares are included, in a manner described under the caption "Plan of Distribution" in such Registration Statement, and in a manner in compliance with all applicable U.S. federal and state securities laws, rules and regulations, including, without limitation, any applicable prospectus delivery requirements of the Securities Act. At the time such DWAC Shares are offered and sold pursuant to the Registration Statement, such DWAC Shares shall be free from all restrictive legends (except as otherwise required by applicable federal laws) and may be transmitted by the transfer agent to the Investor by crediting an account at DTC as directed in writing by the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Upon the written request of the Investor, the Company shall, as soon as reasonably practicable after receipt of notice from the Investor, and subject to Section 3(o) hereof, (i) incorporate in a Prospectus Supplement or post-effective amendment such information as the Investor reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of such Prospectus Supplement or post-effective amendment after being notified of the matters to be incorporated in such Prospectus Supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement or Prospectus contained therein if reasonably requested by the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Company shall make generally available to its security holders (which may be satisfied by making such information available on EDGAR) as soon as practical, but not later than ninety (90) days after the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions of Rule 158 under the Securities Act) covering a twelve-month period beginning not later than the first day of the Company's fiscal quarter next following the applicable Effective Date of each Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Company shall otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission in connection with any registration hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Notwithstanding anything to the contrary contained herein (but subject to the last sentence of this Section 3(o)), at any time, the Company may, upon written notice to Investor, delay the filing or effectiveness of any Registration Statement, or suspend Investor's use of any Prospectus that is a part of any Registration Statement (in which event the Investor shall discontinue sales of the Registrable Securities pursuant to such Registration Statement contemplated by this Agreement, but shall settle any previously made sales of Registrable Securities) if the Company determines that in order for such Registration Statement or Prospectus not to contain a material misstatement or omission, (i) an amendment or supplement thereto would be needed to include information at that time, (ii) the negotiation or consummation of a transaction by the Company or its subsidiaries is pending or an event has occurred, which negotiation, consummation or event the Company's board of directors reasonably believes would require additional disclosure by the Company in such Registration Statement or Prospectus of material information that the Company has a bona fide business purpose for keeping confidential and the non-disclosure of which in such Registration Statement or Prospectus would be expected, in the reasonable determination of the Company's board of directors, to cause such Registration Statement or Prospectus to fail to comply with applicable disclosure requirements of the Commission, or (iii) in the good faith judgment of the majority of the members of the Company's board of directors, such filing or effectiveness or use of such Registration Statement or Prospectus, as applicable, would be seriously detrimental to the Company and, as a result, that it is essential to defer such filing, effectiveness or use (each, an "**<u>Allowable Grace Period</u>**<u>");</u> provided, however, that in no event shall the Company delay or suspend the filing, effectiveness or use of any Registration Statement or Prospectus for a period that exceeds 45 consecutive Business Days or an aggregate of 90 total Business Days in any 365-day period; and provided, further, the Company shall not effect any such suspension during the applicable valuation period following the applicable purchase notice date for each purchase Purchase Notice Shares. Upon disclosure of such information or the termination of the condition described above, the Company shall provide prompt notice, but in any event within one Business Day of such disclosure or termination, to the Investor and shall promptly terminate any suspension or delay it has put into effect and shall take such other reasonable actions to permit registered sales of Registrable Securities as contemplated in this Agreement (including as set forth in the first sentence of Section 3(f) with respect to the information giving rise thereto unless such material nonpublic information is no longer applicable). Notwithstanding anything to the contrary contained in this Section 3(o), the Company shall cause its transfer agent to deliver DWAC Shares to a transferee of the Investor in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which (i) the Company has made a sale to Investor and (ii) the Investor has entered into a contract for sale, and delivered a copy of the Prospectus included as part of the particular Registration Statement to the extent applicable, in each case prior to the Investor's receipt of the notice of an Allowable Grace Period and for which the Investor has not yet settled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Company shall at all times maintain the services of the Transfer Agent with respect to the administration of its Common Stock.

**4. <u>Obligations of the Investor</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At least two (2) Business Days prior to the first anticipated filing date of each Registration Statement (or such shorter period to which the parties agree), the Company shall notify the Investor in writing of the information the Company requires from the Investor with respect to such Registration Statement. It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities of the Investor that the Investor shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect and maintain the effectiveness of the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of each Registration Statement hereunder, unless the Investor has notified the Company in writing of the Investor's election to exclude all of the Investor's Registrable Securities from such Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(p) or the first sentence of 3(f), the Investor shall (i) immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until the Investor's receipt of the copies of the supplemented or amended Prospectus contemplated by Section 3(o) or the first sentence of Section 3(f) or receipt of notice that no supplement or amendment is required and (ii) maintain the confidentiality of any information included in such notice delivered by the Company unless otherwise required by law or subpoena. Notwithstanding anything to the contrary in this Section 4(c), the Company shall cause its transfer agent to deliver DWAC Shares to a transferee of the Investor in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which the Investor has entered into a contract for sale prior to the Investor's receipt of a notice from the Company of the happening of any event of the kind described in Section 3(o) or the first sentence of Section 3(f) and for which the Investor has not yet settled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Investor covenants and agrees that it shall comply with the prospectus delivery and other requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to a Registration Statement.

**5. <u>Expenses of Registration</u>.** 

All reasonable expenses of the Company, other than sales or brokerage commissions and fees and disbursements of counsel for, and other expenses of, the Investor, incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees incurred by the Company, and fees and disbursements of counsel for the Company, shall be paid by the Company.

**6. <u>Indemnification</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, each of its directors, officers, shareholders, members, partners, employees, agents, representatives (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding the lack of such title or any other title) and each Person, if any, who controls the Investor within the meaning of the Securities Act or the Exchange Act and each of the directors, officers, shareholders, members, partners, employees, agents, representatives (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding the lack of such title or any other title) of such controlling Persons (each, an "**<u>Investor Party</u>**" and collectively, the "**<u>Investor Partie</u>**<u>s</u>"), against any losses, obligations, claims, damages, liabilities, contingencies, judgments, fines, penalties, charges, costs (including, without limitation, court costs, reasonable attorneys' fees, costs of defense and investigation), amounts paid in settlement or expenses, joint or several, (collectively, "**<u>Claims</u>**") reasonably incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the Commission, whether pending or threatened, whether or not an Investor Party is or may be a party thereto ("**<u>Indemnified Damages</u>**"), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other "Blue Sky" laws of any jurisdiction in which Registrable Securities are offered ("**<u>Blue Sky Filing</u>**"), or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading or (ii) any untrue statement or alleged untrue statement of a material fact contained in any Prospectus (as amended or supplemented) or in any Prospectus Supplement or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading (the matters in the foregoing clauses (i) and (ii) being, collectively, "**<u>Violations</u>**"). Subject to <u>Section 6(c)</u>, the Company shall reimburse the Investor Parties, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this <u>Section 6(a)</u>: (i) shall not apply to a Claim by an Investor Party arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by such Investor Party for such Investor Party expressly for use in connection with the preparation of such Registration Statement, Prospectus or Prospectus Supplement or any such amendment thereof or supplement thereto (it being hereby acknowledged and agreed that the written information set forth on <u>Exhibit B</u> attached hereto is the only written information furnished to the Company by or on behalf of the Investor expressly for use in any Registration Statement, Prospectus or Prospectus Supplement); (ii) shall not be available to the Investor to the extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered the Prospectus (as amended or supplemented) made available by the Company (to the extent applicable), including, without limitation, a corrected Prospectus, if such Prospectus (as amended or supplemented) or corrected Prospectus was timely made available by the Company pursuant to <u>Section 3(d)</u> and then only if, and to the extent that, following the receipt of the corrected Prospectus no grounds for such Claim would have existed; and (iii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Investor Party and shall survive the transfer of any of the Registrable Securities by the Investor pursuant to <u>Section 9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any Registration Statement in which the Investor is participating, the Investor agrees to severally and not jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in <u>Section 6(a)</u>, the Company, each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act, and each of its agents and representatives (each, an "**<u>Company Party</u>**"), against any Claim or Indemnified Damages to which any of them may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case, to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information relating to the Investor furnished to the Company by the Investor expressly for use in connection with such Registration Statement, the Prospectus included therein or any Prospectus Supplement thereto (it being hereby acknowledged and agreed that the written information set forth on <u>Exhibit B</u> attached hereto is the only written information furnished to the Company by or on behalf of the Investor expressly for use in any Registration Statement, Prospectus or Prospectus Supplement); and, subject to <u>Section 6(c)</u> and the below provisos in this Section 6(b), the Investor shall reimburse a Company Party any legal or other expenses reasonably incurred by such Company Party in connection with investigating or defending any such Claim; <u>provided</u>, <u>however</u>, the indemnity agreement contained in this <u>Section 6(b)</u> and the agreement with respect to contribution contained in <u>Section 7</u> shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Investor, which consent shall not be unreasonably withheld or delayed; and <u>provided, further</u> that the Investor shall be liable under this <u>Section 6(b)</u> for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the Investor as a result of the applicable sale of Registrable Securities by the Investor pursuant to such Registration Statement, Prospectus or Prospectus Supplement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Company Party and shall survive the transfer of any of the Registrable Securities by the Investor pursuant to <u>Section 9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt by an Investor Party or Company Party (as the case may be) under this <u>Section 6</u> of notice of the commencement of any action or proceeding (including, without limitation, any governmental action or proceeding) involving a Claim, such Investor Party or Company Party (as the case may be) shall, if a Claim in respect thereof is to be made against any indemnifying party under this <u>Section 6</u>, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Investor Party or the Company Party (as the case may be); <u>provided</u>, <u>however</u>, an Investor Party or Company Party (as the case may be) shall have the right to retain its own counsel with the fees and expenses of such counsel to be paid by the indemnifying party if: (i) the indemnifying party has agreed in writing to pay such fees and expenses; (ii) the indemnifying party shall have failed promptly to assume the defense of such Claim and to employ counsel reasonably satisfactory to such Investor Party or Company Party (as the case may be) in any such Claim; or (iii) the named parties to any such Claim (including, without limitation, any impleaded parties) include both such Investor Party or Company Party (as the case may be) and the indemnifying party, and such Investor Party or such Company Party (as the case may be) shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Investor Party or such Company Party and the indemnifying party (in which case, if such Investor Party or such Company Party (as the case may be) notifies the indemnifying party in writing that it elects to employ separate counsel at the expense of the indemnifying party, then the indemnifying party shall not have the right to assume the defense thereof on behalf of the indemnified party and such counsel shall be at the expense of the indemnifying party), <u>provided further</u> that in the case of clause (iii) above the indemnifying party shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for all Investor Parties or Company Parties (as the case may be). The Company Party or Investor Party (as the case may be) shall reasonably cooperate with the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Company Party or Investor Party (as the case may be) which relates to such action or Claim. The indemnifying party shall keep the Company Party or Investor Party (as the case may be) reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent; <u>provided</u>, <u>however</u>, the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Company Party or Investor Party (as the case may be), consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Company Party or Investor Party (as the case may be) of a release from all liability in respect to such Claim or litigation, and such settlement shall not include any admission as to fault on the part of the Company Party. For the avoidance of doubt, the immediately preceding sentence shall apply to <u>Sections 6(a</u>) and <u>6(b)</u> hereof. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Company Party or Investor Party (as the case may be) with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Investor Party or Company Party (as the case may be) under this Section 6, except to the extent that the indemnifying party is materially and adversely prejudiced in its ability to defend such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Person involved in the sale of Registrable Securities who is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale shall be entitled to indemnification from any Person involved in such sale of Registrable Securities who is not guilty of fraudulent misrepresentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Damages are incurred; <u>provided</u> that any Person receiving any payment pursuant to this Section 6 shall promptly reimburse the Person making such payment for the amount of such payment to the extent a court of competent jurisdiction determines that such Person receiving such payment was not entitled to such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The indemnity and contribution agreements contained herein shall be in addition to (i) any cause of action or similar right of the Company Party or Investor Party against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

**7. <u>Contribution</u>.**

To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; <u>provided</u>, <u>however</u>: (i) no contribution shall be made under circumstances where the maker would not have been liable for indemnification under the fault standards set forth in Section 6 of this Agreement, (ii) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (iii) contribution by any seller of Registrable Securities shall be limited in amount to the amount of net proceeds received by such seller from the applicable sale of such Registrable Securities pursuant to such Registration Statement. Notwithstanding the provisions of this <u>Section 7</u>, the Investor shall not be required to contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by the Investor from the applicable sale of the Registrable Securities subject to the Claim exceeds the amount of any damages that the Investor has otherwise been required to pay, or would otherwise be required to pay under <u>Section 6(b)</u>, by reason of such untrue or alleged untrue statement or omission or alleged omission.

**8. <u>Reports Under the Exchange Act</u>.**

With a view to making available to the Investor the benefits of Rule 144, the Company agrees to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) use its commercially reasonable efforts to make and keep public information available, as those terms are understood and defined in Rule 144;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use its commercially reasonable efforts to file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act so long as the Company remains subject to such requirements (it being understood that nothing herein shall limit any of the Company's obligations under the Purchase Agreement) and the filing of such reports and other documents is required for the applicable provisions of Rule 144;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to the Investor, so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company, if true, that it has complied with the reporting, submission and posting requirements of Rule 144 and the Exchange Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company with the Commission if such reports are not publicly available via EDGAR, and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) take such additional action as is reasonably requested by the Investor to enable the Investor to sell the Registrable Securities pursuant to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Company's Transfer Agent as may be reasonably requested from time to time by the Investor and otherwise fully cooperate with Investor and Investor's broker to effect such sale of securities pursuant to Rule 144.

**9. <u>Assignment of Registration Rights</u>.** 

Neither the Company nor the Investor shall assign this Agreement or any of their respective rights or obligations hereunder.

**10. <u>Amendment or Waiver</u>.** 

No provision of this Agreement may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written instrument signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

**11. <u>Miscellaneous</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Solely for purposes of this Agreement, a Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record owner of such Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement shall be given in accordance with <u>Section 10.17</u> of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof. The Company and the Investor acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that either party shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement by the other party and to enforce specifically the terms and provisions hereof (without the necessity of showing economic loss and without any bond or other security being required), this being in addition to any other remedy to which either party may be entitled by law or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All questions concerning the governing law, construction, validity, enforcement, arbitration, dispute resolution and interpretation of this Agreement shall be under the same terms as set forth under Article X of the Purchase Agreement, including without limitation, <u>Sections 10.1</u>, <u>10.2</u>, <u>10.11</u>, <u>10.12</u>, and <u>10.16</u> thereunder. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Transaction Documents set forth the entire agreement and understanding of the parties solely with respect to the subject matter thereof and supersedes all prior and contemporaneous agreements, negotiations and understandings between the parties, both oral and written, solely with respect to such matters. There are no promises, undertakings, representations or warranties by either party relative to the subject matter hereof not expressly set forth in the Transaction Documents. Notwithstanding anything in this Agreement to the contrary and without implication that the contrary would otherwise be true, nothing contained in this Agreement shall limit, modify or affect in any manner whatsoever (i) the conditions precedent to a purchase contained in Article VII of the Purchase Agreement or (ii) any of the Company's obligations under the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors. This Agreement is not for the benefit of, nor may any provision hereof be enforced by, any Person, other than the parties hereto, their respective successors and the Persons referred to in Sections 6 and 7 hereof (and in such case, solely for the purposes set forth therein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof. The terms "including," "includes," "include" and words of like import shall be construed broadly as if followed by the words "without limitation." The terms "herein," "hereunder," "hereof" and words of like import refer to this entire Agreement instead of just the provision in which they are found.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature or signature delivered by e-mail in a ".pdf" format data file, including any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com, www.echosign.adobe.com, etc., shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be applied against any party.

**12. <u>Termination</u>.**

This Agreement shall terminate in its entirety upon the date on which the Investor shall no longer hold any Registrable Securities; provided, that the provisions of Sections 6, 7, 9, 10 and 11 shall remain in full force and effect for the longest period under applicable laws.

[Signature Pages Follow]

**IN WITNESS WHEREOF**, the Investor and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed as of the Execution Date.

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| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **RELIANCE GLOBAL GROUP, INC.** | **RELIANCE GLOBAL GROUP, INC.** |
| By: | */s/ Ezra Beyman* |
| Name: | Ezra Beyman |
| Title: | Chief Executive Officer |

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| | |
|:---|:---|
| **INVESTOR:** | **INVESTOR:** |
| **WHITE LION CAPITAL, LLC** | **WHITE LION CAPITAL, LLC** |
| By: | */s/ Sam Yaffa* |
| Name: | Sam Yaffa |
| Title: | Managing Director |

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*[Signature Page to Registration Rights Agreement]*

**EXHIBIT A**

**SELLING STOCKHOLDER**

This prospectus relates to the possible resale from time to time by White Lion Capital of any or all of the shares of common stock that may be issued by us to White Lion Capital under the Purchase Agreement. For additional information regarding the issuance of common stock covered by this prospectus, see the section titled "White Lion Capital Committed Equity Financing" above. We are registering the shares of common stock pursuant to the provisions of the Registration Rights Agreement we entered into with White Lion Capital on August [___], 2025 in order to permit the selling stockholder to offer the shares for resale from time to time. Except for the transactions contemplated by the Purchase Agreement and the Registration Rights Agreement or as otherwise disclosed in this prospectus, White Lion Capital has not had any material relationship with us within the past three years. As used in this prospectus, the term "selling stockholder" means White Lion Capital, LLC.

The table below presents information regarding the selling stockholder and the shares of common stock that it may offer from time to time under this prospectus. This table is prepared based on information supplied to us by the selling stockholder, and reflects holdings as of [●], 2025. The number of shares in the column "Maximum Number of Shares of Common Stock to be Offered Pursuant to this Prospectus" represents all of the shares of common stock that the selling stockholder may offer under this prospectus. The selling stockholder may sell some, all or none of its shares in this offering. We do not know how long the selling stockholder will hold the shares before selling them, and we currently have no agreements, arrangements or understandings with the selling stockholder regarding the sale of any of the shares.

Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act, and includes shares of common stock with respect to which the selling stockholder has voting and investment power. The percentage of shares of common stock beneficially owned by the selling stockholder prior to the offering shown in the table below is based on an aggregate of [●] shares of our common stock outstanding on [●], 2025. Because the purchase price of the shares of common stock issuable under the Purchase Agreement is determined on the Closing Date with respect to each purchase, the number of shares that may actually be sold by the Company under the Purchase Agreement may be fewer than the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the shares offered by the selling stockholder pursuant to this prospectus.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name of Selling Stockholder** | **Number of Shares <br>of Common Stock <br>Owned Prior <br>to Offering** | **Number of Shares <br>of Common Stock <br>Owned Prior <br>to Offering** | **Maximum Number of<br> Shares of<br> Common Stock <br> to be Offered<br> Pursuant to this<br> Prospectus** | **Number of Shares of <br>Common Stock <br>Owned After <br>Offering** | **Number of Shares of <br>Common Stock <br>Owned After <br>Offering** |
|  | **Number<sup>(1)</sup>** | **Percent<sup>(2)</sup>** | | **Number<sup>(3)</sup>** | **Percent<sup>(2)</sup>** |
| White Lion Capital, LLC<sup>(4)</sup> | [●] | \* | [●] | 0 |  |

---

\* Represents beneficial ownership of less than 1% of the outstanding shares of our common stock.

*[Signature Page to Registration Rights Agreement]*

(1) In
 accordance with Rule 13d-3(d) under the Exchange Act, we have excluded from the number of shares beneficially owned prior to the
 offering all of the shares that White Lion Capital may be required to purchase under the Purchase Agreement, because the issuance
 of such shares is solely at our discretion and is subject to conditions contained in the Purchase Agreement, the satisfaction of
 which are entirely outside of White Lion Capital's control, including the registration statement that includes this prospectus
 becoming and remaining effective. Furthermore, the purchase of common stock are subject to certain agreed upon maximum amount limitations
 set forth in the Purchase Agreement. Also, the Purchase Agreement prohibits us from issuing and selling any shares of our common
 stock to White Lion Capital to the extent such shares, when aggregated with all other shares of our common stock then beneficially
 owned by White Lion Capital, would cause White Lion Capital's beneficial ownership of our common stock to exceed the 4.99%
 Beneficial Ownership Limitation. The Purchase Agreement also prohibits us from issuing or selling shares of our common stock under
 the Purchase Agreement in excess of the 19.99% Exchange Cap, unless we obtain stockholder approval to do so, or unless sales of common
 stock are made at a price equal to or greater than $[●] per share, such that the Exchange Cap limitation would not apply under
 applicable Nasdaq rules. Neither the Beneficial Ownership Limitation nor the Exchange Cap (to the extent applicable under Nasdaq
 rules) may be amended or waived under the Purchase Agreement.

(2) Applicable
 percentage ownership is based on [●] shares of our common stock outstanding as of [●], 2025.

(3) Assumes
 the sale of all shares being offered pursuant to this prospectus.

(4) The
 business address of White Lion Capital, LLC ("WLC") is 17631 Ventura Blvd., Suite 1008, Encino, CA 91316. WLC's
 principal business is that of a private investor. Dmitriy Slobodskiy Jr., Yash Thukral, Sam Yaffa, and Nathan Yee are the managing
 principals of WLC. Therefore, each of Slobodskiy Jr., Thukral, Yaffa, and Yee may be deemed to have sole voting control and investment
 discretion over securities beneficially owned directly by WLC and, indirectly, by WLC. We have been advised that WLC is not a member
 of the Financial Industry Regulatory Authority, or FINRA, or an independent broker-dealer. The foregoing should not be construed
 in and of itself as an admission by Slobodskiy Jr., Thukral, Yaffa, and Yee as to beneficial ownership of the securities beneficially
 owned directly by WLC and, indirectly, by WLC.

**PLAN OF DISTRIBUTION**

The shares of common stock offered by this prospectus are being offered by the selling stockholder, White Lion Capital, LLC. The shares may be sold or distributed from time to time by the selling stockholder directly to one or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed. The sale of the shares of our common stock offered by this prospectus could be effected in one or more of the following methods:

● ordinary brokers' transactions;

● transactions involving cross or block trades;

● through brokers, dealers, or underwriters who may act solely as agents;

● "at the market" into an existing market for our common stock;

● in other ways not involving market makers or established business markets, including direct sales to purchasers or sales effected through agents;

● in privately negotiated transactions; or

● any combination of the foregoing.

In order to comply with the securities laws of certain states, if applicable, the shares may be sold only through registered or licensed brokers or dealers. In addition, in certain states, the shares may not be sold unless they have been registered or qualified for sale in the state or an exemption from the state's registration or qualification requirement is available and complied with.

White Lion Capital is an "underwriter" within the meaning of Section 2(a)(11) of the Securities Act.

White Lion Capital has informed us that it intends to use one or more registered broker-dealers to effectuate all sales, if any, of our common stock that it may acquire from us pursuant to the Purchase Agreement. Such sales will be made at prices and at terms then prevailing or at prices related to the then current market price. Each such registered broker-dealer will be an underwriter within the meaning of Section 2(a)(11) of the Securities Act. White Lion Capital has informed us that each such broker-dealer may receive commissions from White Lion Capital and, if so, such commissions will not exceed customary brokerage commissions.

Brokers, dealers, underwriters or agents participating in the distribution of the shares of our common stock offered by this prospectus may receive compensation in the form of commissions, discounts, or concessions from the purchasers, for whom the broker-dealers may act as agent, of the shares sold by the selling stockholder through this prospectus. The compensation paid to any such particular broker-dealer by any such purchasers of shares of our common stock sold by the selling stockholder may be less than or in excess of customary commissions. Neither we nor the selling stockholder can presently estimate the amount of compensation that any agent will receive from any purchasers of shares of our common stock sold by the selling stockholder.

We know of no existing arrangements between the selling stockholder or any other stockholder, broker, dealer, underwriter or agent relating to the sale or distribution of the shares of our common stock offered by this prospectus.

We may from time to time file with the SEC one or more supplements to this prospectus or amendments to the registration statement of which this prospectus forms a part to amend, supplement or update information contained in this prospectus, including, if and when required under the Securities Act, to disclose certain information relating to a particular sale of shares offered by this prospectus by the selling stockholder, including the names of any brokers, dealers, underwriters or agents participating in the distribution of such shares by the selling stockholder, any compensation paid by the selling stockholder to any such brokers, dealers, underwriters or agents, and any other required information.

We also have agreed to indemnify White Lion Capital and certain other persons against certain liabilities in connection with the offering of shares of our common stock offered hereby, including liabilities arising under the Securities Act or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. White Lion Capital has agreed to indemnify us against liabilities under the Securities Act that may arise from certain written information furnished to us by White Lion Capital specifically for use in this prospectus or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers, and controlling persons, we have been advised that in the opinion of the SEC this indemnification is against public policy as expressed in the Securities Act and is therefore, unenforceable.

We estimate that the total expenses for the offering will be approximately $.

White Lion Capital has represented to us that at no time prior to the date of the Purchase Agreement has White Lion Capital, any of its affiliates or any entity managed or controlled by White Lion Capital engaged in or effected, directly or indirectly, for its own principal account, any short sale (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of our common stock that establishes a net short position with respect to our common stock. White Lion Capital has agreed that during the term of the Purchase Agreement, none of White Lion Capital, any of its affiliates nor any entity managed or controlled by White Lion Capital will enter into or effect, directly or indirectly, any of the foregoing transactions for its own principal account or for the principal account of any other such entity.

We have advised the selling stockholder that it is required to comply with Regulation M promulgated under the Exchange Act. With certain exceptions, Regulation M precludes the selling stockholder, any affiliated purchasers, and any broker-dealer or other person who participates in the distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase any security which is the subject of the distribution until the entire distribution is complete. Regulation M also prohibits any bids or purchases made in order to stabilize the price of a security in connection with the distribution of that security. All of the foregoing may affect the marketability of the securities offered by this prospectus.

This offering will terminate on the date that all shares of our common stock offered by this prospectus have been sold by the selling stockholder.

Our common stock is currently listed on The Nasdaq Capital Market under the symbol "RELI".

## Exhibit 10.4

**Exhibit 10.4**

**AMENDMENT NO. 1**

**TO**

**COMMON STOCK PURCHASE AGREEMENT**

**BETWEEN**

**RELIANCE GLOBAL GROUP INC.**

**AND**

**WHITE LION CAPITAL LLC**

THIS AMENDMENT NO. 1 TO COMMON STOCK PURCHASE AGREEMENT (this "***<u>Amendment</u>***"), effective November 5, 2025 (the "***<u>Amendment Effective Date</u>***"), is by and between Reliance Global Group, Inc. a Florida Corporation (the "***<u>Company</u>***"), and White Lion Capital, LLC, a Nevada limited liability company (the "***<u>Investor</u>***"), and amends the Common Stock Purchase Agreement by and between the Company and Investor dated August 26<sup>th</sup>, 2025 (the "***<u>Agreement</u>***<u>"</u>), to permit the Company to effect sales to the Investor pursuant to Fixed Purchase Notice (as defined below). All capitalized terms used but not defined herein shall have the respective meanings ascribed to them in the Agreement.

NOW, THEREFORE, in consideration of the premises, the mutual covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **1.** **<u>Amendment to Article II</u>**.

Article II of the Agreement is hereby amended by adding Sections 2.2(c) and 2.2(d), which shall read in their entirety as follows:

**<u>Section 2.2 (c) Fixed Purchase Notice</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon
 the terms and subject to the conditions of this Agreement, during the Commitment Period, the Company may deliver a Fixed Purchase
 Notice to the Investor, subject to satisfaction of the conditions set forth in <u>Article VII</u> and otherwise provided herein.
 A Fixed Purchase Notice shall be deemed delivered on the Business Day that the Investor provides written consent of the acceptance
 of the Fixed Purchase Notice (the "  **<u>Fixed Purchase Notice Date</u>**") and the Fixed Purchase Notice shall not
 exceed the Fixed Purchase Notice Limit unless waived by the Investor. Each party shall use its commercially reasonable efforts to
 perform or fulfill all conditions and obligations to be performed or fulfilled by it under this Agreement so that the transactions
 contemplated hereby shall be consummated as soon as practicable. Each party also agrees that it shall use its commercially reasonable
 efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under
 applicable laws and regulations to consummate and make effective Section 2.2 of this Agreement and the transactions contemplated
 herein. Investor shall not consent to accept a Fixed Purchase Notice received less than one hour (1) hour prior to the close of trading
 on the Principal Market, unless waived by the Investor in writing, and consent of a Fixed Purchase Notice Date irrespective of the
 timing will be considered a written waiver.

**<u>Section 2.2 (d) Fixed Purchase Closing.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Closing of a Fixed Purchase Notice shall occur one (1) Business Day following the Fixed Purchase Notice Date (the "  **<u>Fixed Purchase Closing Date</u>** "); whereby the Investor shall deliver to the Company, by 5:00 p.m. New York time on the Fixed
 Purchase Closing Date, the Fixed Purchase Investment Amount by wire transfer of immediately available funds to an account designated
 by the Company, provided that the Investor has received the applicable Fixed Purchase Notice Shares as DWAC Shares.

The following terms shall be defined as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. "  **<u>Fixed Purchase Closing Date</u>**" shall have the meaning specified in <u>Section 2.2(d)</u>.

b. "  **<u>Fixed Purchase Investment Amount</u>**" shall mean the applicable Purchase Notice Shares referenced in the Fixed Purchase Notice
 multiplied by the applicable Fixed Purchase Price.

c. "  **<u>Fixed Purchase Notice</u>**" shall mean a written notice from Company, substantially in the form of Exhibit C attached hereto to
 the Investor and the Transfer Agent setting forth the Purchase Notice Shares which the Company requires the Investor to purchase
 pursuant to the terms of this Agreement.

d. "  **<u>Fixed Purchase Notice Date</u>**" shall have the meaning specified in <u>Section 2.2(c)</u>.

e. "  **<u>Fixed Purchase Notice Limit</u>**" shall mean five percent (5%) of the Average Daily Trading Volume, unless waived by the Investor.

f. "  **<u>Fixed Purchase Price</u>**" shall mean ninety percent (90%) of the lowest traded price of Common Stock during the Fixed Purchase
 Valuation Period.

g. "  **<u>Fixed Purchase Valuation Period</u>**" shall mean the five (5) minute period prior to the time the Company delivers a Fixed Purchase
 Notice to the Investor. The delivery time will be communicated in the Fixed Purchase Notice communication email.

The following terms shall be amended and restated as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. "  **<u>Purchase Notice</u>**" shall mean a written notice from Company, substantially in the form of <u>Exhibit A</u> attached hereto (a
 "  **<u>Purchase Notice Form</u>** "), or <u>Exhibit C</u> attached hereto (a "  **<u>Fixed Purchase Notice Form</u>** "),
 to the Investor and the Transfer Agent setting forth the Purchase Notice Shares which the Company requires the Investor to purchase
 pursuant to the terms of this Agreement

ii. **" <u>Valuation Period</u> "** shall mean the one (1) hour period commencing immediately upon the Investor's written acknowledgement
 of receipt, with no dispute or contest, of the applicable Purchase Notice Form by Investor.

Exhibit A attached hereto shall be added as Exhibit C to the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. <u>Representations and Warranties</u>**. Each of the Investor and the Company represents and warrants that it has the authority and legal right to execute, deliver and carry out the terms of this Amendment, that such actions were duly authorized by all necessary entity action and that the officers executing this Amendment on its behalf were similarly authorized and empowered and that this Amendment does not contravene any provisions of its articles of incorporation, bylaws, certificate of formation, limited liability company agreement or other formation documents, or of any contract or agreement to which it is a party or by which any of its properties are bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. <u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as modified by this Amendment, the Agreement continues in full force and effect in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Amendment shall be governed by and construed in accordance with the laws of the State of California as set forth in Section 10.1 of the Agreement and the dispute resolution provisions set forth in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Amendment may be executed in any number of counterparts and by electronic transmission (which shall bind the parties hereto), each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

*\*\* signature page follows \*\** 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officer as of the Amendment Effective Date.

---

| | |
|:---|:---|
| **RELIANCE GLOBAL GROUP, INC.** | **RELIANCE GLOBAL GROUP, INC.** |
| By: | */s/ Ezra Beyman* |
| Name: | Ezra Beyman |
| Title: | CEO |

---

---

| | |
|:---|:---|
| **WHITE LION CAPITAL, LLC** | **WHITE LION CAPITAL, LLC** |
| By: | */s/ Sam Yaffa* |
| Name: | Sam Yaffa |
| Title: | Managing Partner |

---

**<u>EXHIBIT C</u>**

**FORM OF FIXED PURCHASE NOTICE**

TO: WHITE LION CAPITAL LLC

We refer to the Common Stock Purchase Agreement, dated as of August 26<sup>th</sup>, 2025, (as amended, the "**<u>Agreemen</u>**<u>t</u>"), entered into by and between Reliance Global Group, Inc., and White Lion Capital LLC. Capitalized terms defined in the Agreement shall, unless otherwise defined herein, have the same meaning when used herein.

We hereby:

1) Give you notice that we require you to purchase __________ Purchase Notice Shares at the Fixed Purchase Price; and

2) Certify that, as of the date hereof, the conditions set forth in <u>Section 7</u> of the Agreement are satisfied.

---

| |
|:---|
| **RELIANCE GLOBAL GROUP INC.** |
| By: |
| Name: |
| Title: |

---

## Exhibit 10.12

**Exhibit 10.12**

![](ex10-12_001.jpg)

![](ex10-12_002.jpg)

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATIONS**

I, Ezra Beyman, certify that:

1. I have reviewed the Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 for Reliance Global Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly for the period in which this report is being prepared;

(b) Designed
 such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
 supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
 the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
 reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
 and

(b) Any
 fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
 internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Dated: May 7, 2026 | By: | */s/ Ezra Beyman* |
|  |  | Ezra Beyman |
|  |  | Chief Executive Officer (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATIONS**

I, Joel Markovits, certify that:

1. I have reviewed the Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 for Reliance Global Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly for the period in which this report is being prepared;

(b) Designed
 such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
 supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
 the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
 reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
 and

(b) Any
 fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
 internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 7, 2026 | By: | */s/ Joel Markovits* |
|  |  | Joel Markovits |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**Certification**

**Pursuant to Section 906 of the Sarbanes-Oxley Act Of 2002**

**(Subsections (A) And (B) Of Section 1350, Chapter 63 of Title 18, United States Code)**

Each of the undersigned officers of Reliance Global Group, Inc. (the "Company"), does hereby certify, that:

The Quarterly Report on Form 10-Q for the period ended March 31, 2026 (the "Form 10-Q") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: May 7, 2026 | By: | */s/ Ezra Beyman* |
|  |  | Ezra Beyman |
|  |  | Chief Executive Officer (Principal Executive Officer) |

---

---

| | | |
|:---|:---|:---|
| Date: May 7, 2026 | By: | */s/ Joel Markovits* |
|  |  | Joel Markovits |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---