# EDGAR Filing Document

**Accession Number:** 0000946454
**File Stem:** 0001493152-23-007779
**Filing Date:** 2023-3
**Character Count:** 48501
**Document Hash:** 6158da0cc7bd6a119cf804d1ea18dd66
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-007779.hdr.sgml**: 20230315

**ACCESSION NUMBER**: 0001493152-23-007779

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 38

**CONFORMED PERIOD OF REPORT**: 20230315

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230315

**DATE AS OF CHANGE**: 20230315

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FG Group Holdings Inc.
- **CENTRAL INDEX KEY:** 0000946454
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHOTOGRAPHIC EQUIPMENT & SUPPLIES [3861]
- **IRS NUMBER:** 470587703
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-13906
- **FILM NUMBER:** 23735869

**BUSINESS ADDRESS:**
- **STREET 1:** 4201 CONGRESS STREET
- **STREET 2:** SUITE 175
- **CITY:** CHARLOTTE
- **STATE:** NC
- **ZIP:** 28209
- **BUSINESS PHONE:** (704) 994-8279

**MAIL ADDRESS:**
- **STREET 1:** 4201 CONGRESS STREET
- **STREET 2:** SUITE 175
- **CITY:** CHARLOTTE
- **STATE:** NC
- **ZIP:** 28209

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BALLANTYNE STRONG, INC.
- **DATE OF NAME CHANGE:** 20090611

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BALLANTYNE OF OMAHA INC
- **DATE OF NAME CHANGE:** 19950608

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

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

**March 15, 2023**

Date of Report (Date of earliest event reported)

**FG GROUP HOLDINGS INC.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Nevada** | **1-13906** | **47-0587703** |
| (State or other jurisdiction of | (Commission | (IRS Employer |
| incorporation or organization) | File No.) | Identification Number) |

---

---

| | |
|:---|:---|
| **5960 Fairview Road, Suite 275** |  |
| **Charlotte, North Carolina** | **28210** |
| (Address of principal executive offices) | (Zip Code) |

---

**(704) 994-8279** 

(Registrant's telephone number including area code)

**N/A**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

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| | |
|:---|:---|
| **Title of Each Class** | **Name of Each Exchange on Which Registered** |
| Common Stock, $0.01 par value FGH | NYSE American |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐

**Item 2.02 Results of Operations and Financial Condition**

FG Group Holdings Inc., a Nevada corporation (the "Company"), issued a press release on March 15, 2023, with earnings information for the Company's fourth fiscal quarter and year ended December 31, 2022. The press release is furnished with this Current Report on Form 8-K (this "Current Report") as Exhibit 99.1.

**Item 7.01 Regulation FD Disclosure**

The information set forth under Item 2.02 of this Current Report is incorporated herein by reference. In addition, on March 15, 2023, management of the Company plans to discuss the Company's financial results for the year ended December 31, 2022, and the Company's business plan, strategy and outlook on an earnings conference call with analysts and investors. The supplemental slides to be referenced during the conference call are furnished with this Current Report as Exhibit 99.2.

The information contained in Items 2.02 and 7.01 to this Current Report, including the exhibits, is being "furnished" and, as such, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

**Forward Looking Statements**

In addition to the historical information in this Current Report and in the exhibits furnished with this Current Report, it includes forward-looking statements which involve a number of risks and uncertainties, including but not limited to those discussed in the "Risk Factors" section contained in Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission ("SEC") on March 24, 2022, the Company's subsequent filings with the SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and the following risks and uncertainties: the Company's ability to maintain and expand its revenue streams to compensate for the lower demand for the Company's digital cinema products and installation services; potential interruptions of supplier relationships or higher prices charged by suppliers; the Company's ability to successfully compete and introduce enhancements and new features that achieve market acceptance and that keep pace with technological developments; the Company's ability to successfully execute its capital allocation strategy or achieve the returns it expects from these holdings; the Company's ability to maintain its brand and reputation and retain or replace its significant customers; challenges associated with the Company's long sales cycles; the impact of a challenging global economic environment or a downturn in the markets; the effects of economic, public health, and political conditions that impact business and consumer confidence and spending, including rising interest rates, periods of heightened inflation and market instability, the outbreak of any highly infectious or contagious diseases, such as COVID-19 and its variants or other health epidemics or pandemics, and armed conflicts, such as the ongoing military conflict in Ukraine and related sanctions; economic and political risks of selling products in foreign countries (including tariffs); risks of non-compliance with U.S. and foreign laws and regulations, potential sales tax collections and claims for uncollected amounts; cybersecurity risks and risks of damage and interruptions of information technology systems; the Company's ability to retain key members of management and successfully integrate new executives; the Company's ability to complete acquisitions, strategic investments, entry into new lines of business, divestitures, mergers or other transactions on acceptable terms, or at all; the impact of economic, public health and political conditions on the companies in which the Company holds equity stakes; the Company's ability to utilize or assert its intellectual property rights, the impact of natural disasters and other catastrophic events, whether natural, man-made, or otherwise (such as the outbreak of any highly infectious or contagious diseases, or armed conflict); the adequacy of the Company's insurance; the impact of having a controlling stockholder and vulnerability to fluctuation in the Company's stock price. Given the risks and uncertainties, readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results which may not occur as anticipated. Many of the risks listed above have been, and may further be, exacerbated by the impact of economic, public health (such as a resurgence of the COVID-19 pandemic) and political conditions (such as the military conflict in Ukraine) that impact consumer confidence and spending, particularly in the cinema, entertainment, and other industries in which the Company and the companies in which the Company holds an equity stake operate, and the worsening economic environment. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein, as well as others not now anticipated. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Except where required by law, the Company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

**Item 9.01. Financial Statements and Exhibits.** 

**(d)** **Exhibits.** 

---

| | |
|:---|:---|
| **Exhibit**<br>**No.** | <br>**Description** |
| 99.1 | [Press Release, dated March 15, 2023, issued by the Company](ex99-1.htm) |
| 99.2 | [Supplemental Slides to be Referenced During the Fourth Quarter and Year End Conference Call of FG Group Holdings Inc.](ex99-2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURES** 

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

---

| | | |
|:---|:---|:---|
|  | FG GROUP HOLDINGS INC. | FG GROUP HOLDINGS INC. |
| Date: March 15, 2023 | By: | */s/ Todd R. Major* |
|  |  | Todd R. Major |
|  |  | Chief Financial Officer |

---

## Exhibit 99.1

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| | |
|:---|:---|
| FG Group Holdings Inc. – Fiscal Year 2022 | Page **1** of **10** |
| Fourth Quarter 2022 Results |  |

---

**Exhibit 99.1**

![FG Group Holdings](ex99-1_001.jpg)

**FG Group Holdings Reports Fourth Quarter and Full Year 2022 Operating Results**

- **2022 Revenues Grow 53% to $41.2 Million -**

**Charlotte, NC – March 15, 2023** – FG Group Holdings Inc. (NYSE American: FGH) (the "Company" or "FG Group Holdings") today announced operating results for the fourth quarter and full year ended December 31, 2022.

**<u>Operational Highlights</u>**

● Strong Entertainment annual revenues increased 54% from 2021. Quarterly revenue returned to pre-Covid levels with increasing demand from cinema customers. Favorable industry outlook for 2023 with robust studio release schedule and accelerating laser projection upgrades.

● Strong Studios successfully launched during 2022. First revenue producing project, *Inside the Black Box*, delivered in fourth quarter. Completed production on first major series, *Safehaven*, and expecting to complete postproduction and deliver in 2023.

● Equity holdings continue to execute their business plans in attractive markets. FG Financial Group, Inc ("FG Financial") launched a merchant banking platform and closed several transactions. Firefly continues to execute on its growth plans, both organically and through acquisition. GreenFirst Forest Products Inc ("GreenFirst") is well positioned as pure-play lumber producer in Canada and continues to strengthen its balance sheet, monetizing non-core assets and increasing its focus on its Ontario operations.

● Registration statement filed publicly with the Securities and Exchange Commission for initial public offering of the Strong Entertainment business.

● Completed name change to FG Group Holdings Inc. in fourth quarter to better reflect the company's success executing its holding company strategy.

Mark Roberson, Chief Executive Officer, commented, "Our Strong Entertainment operating business continues to strengthen its market position, securing new exclusive relationships and increasing market share. The transition from xenon projection to laser will continue to drive industry demand, and with the studio release schedule returning to pre-pandemic levels, we are exciting about the next several years for our screen and services business.

"We are also very excited about the opportunity to scale our entertainment business and create long-term value in the content area. With the launch of Strong Studios, we are positioned squarely at the forefront of a streaming and exhibition industry that is rapidly evolving."

Kyle Cerminara, Chairman of the Board, commented, "We believe we are building a valuable portfolio of businesses at FG Group Holdings. We remain focused on driving long-term value for our shareholders."

---

| | |
|:---|:---|
| FG Group Holdings Inc. – Fiscal Year 2022 | Page **2** of **10** |
| Fourth Quarter 2022 Results |  |

---

**<u>Fourth Quarter 2022 Financial Review (Compared to Three Months Ended December 31, 2021)</u>**

● Revenue increased 17.4% to $11.8 million from $10.0 million. Revenue benefited from the continuing recovery in the cinema industry with our services business serving as the primary driver of the revenue increase from the prior year. We have increased the scope of our services to better support our customers and to increase market share in cinema services. Product revenue also increased as higher cinema screen sales during the quarter more than offset a large digital equipment order in the fourth quarter of 2021 that didn't repeat in 2022. We also recognized revenue of $0.9 million from our first project in our new Strong Studios business during the fourth quarter of 2022.

● Gross profit increased 51.8% to $3.2 million in 2022 from $2.1 million in 2021. Gross profit margins were 27.5% as compared to 21.3%. The increase in gross profit was due to increased demand and revenue from our entertainment customers and favorable trends in product mix.

● Loss from operations was $0.4 million as compared to $1.3 million in the prior year. Operating results improved as a direct result of the rebound in revenues and gross margin in our Strong Entertainment business. Those improvements were partially offset by increases in operating expenses related to the launch of the new Strong Studios business.

● Net income from continuing operations was $1.4 million, or $0.07 per basic and diluted share, as compared to net loss from continuing operations of $0.4 million, or $0.03 per basic and diluted share, in the prior year. The improvement in results from continuing operations, was primarily the result of improved results of operations from our Strong entertainment group and more favorable gains from our equity holdings.

● Adjusted EBITDA improved to $0.6 million as compared to negative $0.7 million in the prior year.

**<u>Full Year 2022 Financial Review (Compared to Twelve Months Ended December 31, 2021)</u>**

● Revenue increased 52.6% to $41.2 million from $27.0 million. The recovery in the cinema industry progressed throughout 2022, which resulted in increases in both product and services revenue. In addition, increases in our market share for screens and services, and expansion of our product offerings also contributed to the increase. Exhibitors are in the early stages of a multi-year upgrade cycle, transitioning their auditoriums from xenon projection to laser projection, which helps drive demand for our products and services. We have also increased the scope of our services to better support our customers and to increase market share in cinema services. We expect the upgrades from xenon to laser to accelerate in 2023 and continue for at least the next several years. We also recognized revenue of $0.9 million from our first project in our new Strong Studios business during 2022.

● Gross profit increased 33.0% to $10.9 million in 2022 from $8.2 million in 2021. Gross profit margins were 26.5% as compared to 30.4%. Excluding the impact of employee retention credits, which favorably impacted the prior year period, gross profit would have been 25.7% as compared to 26.5% in the current period. The increase in gross profit, excluding the employee retention credits, was due to increased demand and revenue from our entertainment customers.

● Loss from operations was $2.4 million as compared to $3.1 million in the prior year. Excluding the impact of employee retention credits, which favorably impacted the prior year period, loss from operations during 2021 would have been $5.1 million. Operating results improved as a direct result of the rebound in revenues and gross margin in our Strong Entertainment business. Those improvements were partially offset by increases in operating expenses related to the launch of the new Strong Studios business.

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| | |
|:---|:---|
| FG Group Holdings Inc. – Fiscal Year 2022 | Page **3** of **10** |
| Fourth Quarter 2022 Results |  |

---

● Net loss from continuing operations was $7.2 million, or $0.37 per basic and diluted share, as compared to net income from continuing operations of $3.4 million, or $0.19 per basic and diluted share in the prior year. The increase in net loss from continuing operations, despite the improvements in results from Strong Entertainment's operations, was primarily the result of recognition of unrealized losses on our equity holdings in the current period while the prior year period benefited from employee retention credits and gains on equity holdings.

● Adjusted EBITDA, which excludes the impact of losses on our equity holdings and employee retention credits, among other things, improved to $0.2 million as compared to negative $2.7 million in the prior year.

**<u>Conference Call</u>**

A conference call to discuss the Company's 2022 fourth quarter and full year financial results will be held on Wednesday, March 15, 2023 at 5:00 pm Eastern Time. Interested parties can listen to the call via live webcast or by phone. To access the webcast, visit the Company's website at <u>https://fg.group/investor-relations/</u> or use following link: <u>FGH Webcast Link</u>. To access the conference call by phone, dial (888) 506-0062 (domestic) or (973) 528-0011 (international) and use participant code 405126. Please access the webcast or dial in at least five minutes before the start of the call to register.

A replay of the webcast will be available following the conclusion of the live broadcast and accessible on the Company's website at <u>https://fg.group/investor-relations/</u>.

**About FG Group Holdings Inc.**

<br> FG Group Holdings Inc. (<u>https://fg.group/</u>) is a diversified holding company with operations and holdings across a broad range of industries. The Company's Strong Entertainment segment is the largest premium screen supplier in North America, provides technical support services and related products and services to the cinema exhibition industry, and recently launched its studio operations to produce content for streaming and other entertainment outlets. FG Group Holdings also holds equity stakes in Firefly Systems, Inc., GreenFirst Forest Products Inc. (TSX: GFP), and FG Financial Group, Inc. (Nasdaq: FGF), as well as real estate through its Digital Ignition operating business.

**About Fundamental Global®**

Fundamental Global® is a private partnership focused on long-term strategic holdings. Fundamental Global® was co-founded by former T. Rowe Price, Point72 and Tiger Cub portfolio manager Kyle Cerminara and former Chairman and CEO of TD Ameritrade, Joe Moglia. Its current holdings include FG Financial Group Inc. (Nasdaq:FGF), (NASDAQ: FGFPP), FG Group Holdings Inc. (NYSE American:FGH), BK Technologies Corp. (NYSE American:BKTI), GreenFirst Forest Products, Inc. (TSX:GFP), FG Merger Corp. (Nasdaq:FGMC), FG Acquisition Corp. (TSX:FGAA), OppFi Inc., Hagerty Inc., and FG Communities, Inc.

The FG® logo is a registered trademark of Fundamental Global®.

**<u>Use of Non-GAAP Measures</u>**

FG Group Holdings prepares its consolidated financial statements in accordance with United States generally accepted accounting principles ("GAAP"). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding Adjusted EBITDA ("Adjusted EBITDA"), which differs from the commonly used EBITDA ("EBITDA"). Adjusted EBITDA both adjusts net income (loss) to exclude income taxes, interest, and depreciation and amortization, and excludes discontinued operations, share-based compensation, impairment charges, equity method income (loss), fair value adjustments, severance, foreign currency transaction gains (losses), transactional gains and expenses, gains on insurance recoveries, certain tax credits and other cash and non-cash charges and gains.

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| | |
|:---|:---|
| FG Group Holdings Inc. – Fiscal Year 2022 | Page **4** of **10** |
| Fourth Quarter 2022 Results |  |

---

EBITDA and Adjusted EBITDA are not measures of performance defined in accordance with GAAP. However, Adjusted EBITDA is used internally in planning and evaluating the Company's operating performance. Accordingly, management believes that disclosure of these metrics offers investors, bankers and other stakeholders an additional view of the Company's operations that, when coupled with the GAAP results, provides a more complete understanding of the Company's financial results.

EBITDA and Adjusted EBITDA should not be considered as an alternative to net income (loss) or to net cash from operating activities as measures of operating results or liquidity. The Company's calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures used by other companies, and the measures exclude financial information that some may consider important in evaluating the Company's performance.

EBITDA and Adjusted EBITDA have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of the Company's results as reported under GAAP. Some of these limitations are: (i) they do not reflect the Company's cash expenditures, or future requirements for capital expenditures or contractual commitments, (ii) they do not reflect changes in, or cash requirements for, the Company's working capital needs, (iii) EBITDA and Adjusted EBITDA do not reflect interest expense, or the cash requirements necessary to service interest or principal payments, on the Company's debt, (iv) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements, (v) they do not adjust for all non-cash income or expense items that are reflected in the Company's statements of cash flows, (vi) they do not reflect the impact of earnings or charges resulting from matters management considers not to be indicative of the Company's ongoing operations, and (vii) other companies in the Company's industry may calculate these measures differently than the Company does, limiting their usefulness as comparative measures.

Management believes EBITDA and Adjusted EBITDA facilitate operating performance comparisons from period to period by isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. These potential differences may be caused by variations in capital structures (affecting interest expense), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense). The Company also presents EBITDA and Adjusted EBITDA because (i) management believes these measures are frequently used by securities analysts, investors and other interested parties to evaluate companies in the Company's industry, (ii) management believes investors will find these measures useful in assessing the Company's ability to service or incur indebtedness, and (iii) management uses EBITDA and Adjusted EBITDA internally as benchmarks to evaluate the Company's operating performance or compare the Company's performance to that of its competitors.

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| | |
|:---|:---|
| FG Group Holdings Inc. – Fiscal Year 2022 | Page **5** of **10** |
| Fourth Quarter 2022 Results |  |

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**<u>Forward-Looking Statements</u>**

In addition to the historical information included herein, this press release includes forward-looking statements, such as management's expectations regarding its portfolio companies, the Company's intent to pursue an initial public offering and separate listing of its Strong Entertainment business, as well as future sales and financial performance, and the production and release of content by our Strong Studios division, which involve a number of risks and uncertainties, including but not limited to those discussed in the "Risk Factors" section contained in Item 1A in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 to be filed with the SEC on or about March 16, 2023, and the following risks and uncertainties: the Company's ability to maintain and expand its revenue streams to compensate for the lower demand for the Company's digital cinema products and installation services; potential interruptions of supplier relationships or higher prices charged by suppliers; the Company's ability to successfully compete and introduce enhancements and new features that achieve market acceptance and that keep pace with technological developments; the Company's ability to successfully execute its capital allocation strategy or achieve the returns it expects from these holdings; the Company's ability to maintain its brand and reputation and retain or replace its significant customers; challenges associated with the Company's long sales cycles; the impact of a challenging global economic environment or a downturn in the markets; the effects of economic, public health, and political conditions that impact business and consumer confidence and spending, including rising interest rates, periods of heightened inflation and market instability, the outbreak of any highly infectious or contagious diseases, such as COVID-19 and its variants or other health epidemics or pandemics, and armed conflicts, such as the ongoing military conflict in Ukraine and related sanctions; economic and political risks of selling products in foreign countries (including tariffs); risks of non-compliance with U.S. and foreign laws and regulations, potential sales tax collections and claims for uncollected amounts; cybersecurity risks and risks of damage and interruptions of information technology systems; the Company's ability to retain key members of management and successfully integrate new executives; the Company's ability to complete acquisitions, strategic investments, entry into new lines of business, divestitures, mergers or other transactions on acceptable terms, or at all; the impact of economic, public health and political conditions on the companies in which the Company holds equity stakes; the Company's ability to utilize or assert its intellectual property rights, the impact of natural disasters and other catastrophic events, whether natural, man-made, or otherwise (such as the outbreak of any highly infectious or contagious diseases, or armed conflict); the adequacy of the Company's insurance; the impact of having a controlling stockholder and vulnerability to fluctuation in the Company's stock price. Given the risks and uncertainties, readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results which may not occur as anticipated. Many of the risks listed above have been, and may further be, exacerbated by the impact of economic, public health (such as a resurgence of the COVID-19 pandemic) and political conditions (such as the military conflict in Ukraine) that impact consumer confidence and spending, particularly in the cinema, entertainment, and other industries in which the Company and the companies in which the Company holds an equity stake operate, and the worsening economic environment. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein, as well as others not now anticipated. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Except where required by law, the Company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

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| | |
|:---|:---|
| **Investor Relations Contacts** |  |
| Mark Roberson | John Nesbett / Jennifer Belodeau |
| FG Group Holdings Inc. - Chief Executive Officer | IMS Investor Relations |
| (704) 994-8279 | (203) 972-9200 |
| <u>IR@fg.group</u> | <u>fggroup@imsinvestorrelations.com</u> |

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|:---|:---|
| FG Group Holdings Inc. – Fiscal Year 2022 | Page **6** of **10** |
| Fourth Quarter 2022 Results |  |

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**FG Group Holdings Inc. and Subsidiaries**

**Consolidated Balance Sheets**

**(In thousands, except par values)**

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| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $3789 | $8731 |
| &nbsp;&nbsp;&nbsp;Restricted cash |  | 150 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 6167 | 4631 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 3389 | 3271 |
| &nbsp;&nbsp;&nbsp;Other current assets | 4871 | 4992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 18216 | 21775 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | 12649 | 6226 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 310 | 3975 |
| &nbsp;&nbsp;&nbsp;Finance lease right-of-use assets | 666 |  |
| &nbsp;&nbsp;&nbsp;Note receivable, net of current portion |  | 1667 |
| &nbsp;&nbsp;&nbsp;Equity holdings | 37522 | 41133 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 5 | 69 |
| &nbsp;&nbsp;&nbsp;Film and television programming rights, net | 1501 |  |
| &nbsp;&nbsp;&nbsp;Goodwill | 882 | 942 |
| &nbsp;&nbsp;&nbsp;Other assets | 2 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $71753 | $75809 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $4375 | $4245 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 5167 | 2994 |
| &nbsp;&nbsp;&nbsp;Short-term debt | 2510 | 2998 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 216 | 23 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease obligations | 116 | 577 |
| &nbsp;&nbsp;&nbsp;Current portion of finance lease obligations | 117 |  |
| &nbsp;&nbsp;&nbsp;Deferred revenue and customer deposits | 1787 | 3292 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 14288 | 14129 |
| &nbsp;&nbsp;&nbsp;Operating lease obligations, net of current portion | 257 | 3586 |
| &nbsp;&nbsp;&nbsp;Finance lease obligations, net of current portion | 550 |  |
| &nbsp;&nbsp;&nbsp;Long-term debt, net of current portion | 5004 | 105 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 4851 | 5594 |
| &nbsp;&nbsp;&nbsp;Other long-term liabilities | 105 | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 25055 | 23532 |
| Commitments, contingencies and concentrations |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock |  |  |
| &nbsp;&nbsp;&nbsp;Common stock | 223 | 213 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 53882 | 50807 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 16437 | 23591 |
| &nbsp;&nbsp;&nbsp;Treasury stock | (18586) | (18586) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (5258) | (3748) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 46698 | 52277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $71753 | $75809 |

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|:---|:---|
| FG Group Holdings Inc. – Fiscal Year 2022 | Page **7** of **10** |
| Fourth Quarter 2022 Results |  |

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**FG Group Holdings Inc. and Subsidiaries**

**Consolidated Statements of Operations**

**(In thousands, except per share amounts)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net product sales | $8043 | $7820 | $30119 | $19631 |
| Net service revenues | 3751 | 2229 | 11118 | 7399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net revenues | 11794 | 10049 | 41237 | 27030 |
| Cost of products sold | 5812 | 6247 | 22729 | 14078 |
| Cost of services | 2737 | 1664 | 7592 | 4742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenues | 8549 | 7911 | 30321 | 18820 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 3245 | 2138 | 10916 | 8210 |
| Selling and administrative expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling | 537 | 625 | 2261 | 1783 |
| &nbsp;&nbsp;&nbsp;Administrative | 2655 | 2753 | 10541 | 9527 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total selling and administrative expenses | 3192 | 3378 | 12802 | 11310 |
| Loss on disposal of assets | (474) | (38) | (474) | (38) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (421) | (1278) | (2360) | (3138) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income |  | 21 | 7 | 75 |
| &nbsp;&nbsp;&nbsp;Interest expense | (109) | (24) | (347) | (308) |
| &nbsp;&nbsp;&nbsp;Foreign currency transaction (loss) income | (118) | (10) | 264 | (67) |
| &nbsp;&nbsp;&nbsp;(Loss) gain on equity holdings | (716) | 2208 | (4468) | 12273 |
| &nbsp;&nbsp;&nbsp;Other income (loss), net | 7 | (15) | (180) | 143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (loss) income | (936) | 2180 | (4724) | 12116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) income from continuing operations before income taxes and equity method holdings income (loss) | (1357) | 902 | (7084) | 8978 |
| Income tax expense | (181) | (448) | (473) | (3236) |
| Equity method holding income (loss) | 2981 | (903) | 403 | (2371) |
| &nbsp;&nbsp;&nbsp;Net income (loss) from continuing operations | 1443 | (449) | (7154) | 3371 |
| &nbsp;&nbsp;&nbsp;Net (loss) income from discontinued operations | - | (83) | - | 14566 |
| &nbsp;&nbsp;&nbsp;Net income (loss) | $1443 | $(532) | $(7154) | $17937 |
| Basic net income (loss) per share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Continuing operations | $0.07 | $(0.03) | $(0.37) | $0.19 |
| &nbsp;&nbsp;&nbsp;Discontinued operations | - | - | - | 0.81 |
| Basic net income (loss) per share | $0.07 | $(0.03) | $(0.37) | $1.00 |
| Diluted net income (loss) per share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Continuing operations | $0.07 | $(0.03) | $(0.37) | $0.19 |
| &nbsp;&nbsp;&nbsp;Discontinued operations | - | - | - | 0.80 |
| Diluted net income (loss) per share | $0.07 | $(0.03) | $(0.37) | $0.99 |

---

---

| | |
|:---|:---|
| FG Group Holdings Inc. – Fiscal Year 2022 | Page **8** of **10** |
| Fourth Quarter 2022 Results |  |

---

**FG Group Holdings Inc. and Subsidiaries**

**Condensed Consolidated Statements of Cash Flows**

**(In thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2022** | **2021** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) income from continuing operations | $(7154) | $3371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net (loss) income from continuing operations to net cash (used in) provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recovery of doubtful accounts | (30) | (263) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for obsolete inventory | 49 | 95 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for warranty | 303 | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1397 | 1306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization and accretion of operating leases | 195 | 828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity method holding (income) loss | (403) | 2371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on equity holdings | 4468 | (10584) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustment to SageNet promissory note in connection with prepayment | 202 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets | 474 | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (653) | 2511 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 652 | 892 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (1614) | 1126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (309) | (1095) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current income taxes | 329 | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 2245 | (2072) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (2054) | 2095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue and customer deposits | (1476) | 1637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease obligations | (193) | (822) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities from continuing operations | (3572) | 1612 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities from discontinued operations | - | 427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities | (3572) | 2039 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (915) | (1527) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of programming rights | (459) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale of equity holdings | 498 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of common shares of FG Financial Group, Inc. | (2000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receipt of SageNet promissory note | 2300 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of GreenFirst Forest Products, Inc. rights |  | (9981) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of FG Financial Group, Inc. rights | - | (2400) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities from continuing operations | (576) | (13908) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities from discontinued operations | - | 12761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (576) | (1147) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments on short-term debt | (697) | (728) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments on long-term debt | (164) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from stock issuance, net of costs |  | 6310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of withholding taxes related to net share settlement of equity awards | (27) | (80) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options |  | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on capital lease obligations | (36) | (2106) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities from continuing operations | (924) | 3405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities from discontinued operations | - | (155) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (924) | 3250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of exchange rate changes on cash and cash equivalents | (20) | (48) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net decrease in cash and cash equivalents and restricted cash from continuing operations | (5092) | (8939) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase in cash and cash equivalents and restricted cash from discontinued operations | - | 13033 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (decrease) increase in cash and cash equivalents and restricted cash | (5092) | 4094 |
| Cash and cash equivalents and restricted cash at beginning of year | 8881 | 4787 |
| Cash and cash equivalents and restricted cash at end of year | $3789 | $8881 |

---

---

| | |
|:---|:---|
| FG Group Holdings Inc. – Fiscal Year 2022 | Page **9** of **10** |
| Fourth Quarter 2022 Results |  |

---

**FG Group Holdings Inc. and Subsidiaries**

**Summary by Business Segments**

**(In thousands)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended<br> December 31,** | **Years Ended<br> December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Strong Entertainment** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue | $11421 | $9766 | $39867 | $25886 |
| &nbsp;&nbsp;&nbsp;Gross profit | 2872 | 1855 | 9546 | 7283 |
| &nbsp;&nbsp;&nbsp;Operating income | 1238 | 61 | 2761 | 2211 |
| &nbsp;&nbsp;&nbsp;Adjusted EBITDA | 1345 | 189 | 3184 | 1245 |
| **Corporate and Other** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue | $373 | $283 | $1370 | $1144 |
| &nbsp;&nbsp;&nbsp;Gross profit | 373 | 283 | 1370 | 927 |
| &nbsp;&nbsp;&nbsp;Operating loss | (1659) | (1339) | (5121) | (5349) |
| &nbsp;&nbsp;&nbsp;Adjusted EBITDA | (784) | (913) | (2978) | (3957) |
| **Consolidated** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue | $11794 | $10049 | $41237 | $27030 |
| &nbsp;&nbsp;&nbsp;Gross profit | 3245 | 2138 | 10916 | 8210 |
| &nbsp;&nbsp;&nbsp;Operating loss | (421) | (1278) | (2360) | (3138) |
| &nbsp;&nbsp;&nbsp;Adjusted EBITDA | 561 | (724) | 206 | (2712) |

---

---

| | |
|:---|:---|
| FG Group Holdings Inc. – Fiscal Year 2022 | Page **10** of **10** |
| Fourth Quarter 2022 Results |  |

---

**FG Group Holdings Inc. and Subsidiaries**

**Reconciliation of Net Income (Loss) to Adjusted EBITDA**

**(In thousands)**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2022** | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2021** |
|  | Strong Entertainment | Corporate and Other | Discontinued Operations | Consolidated | Strong Entertainment | Corporate and Other | Discontinued Operations | Consolidated |
| Net income (loss) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;424 | $1020 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $1444 | $773 | $(1222) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(83) | $(532) |
| Net loss from discontinued operations | - | - | - | - | - | - | 83 | 83 |
| Net income (loss) from continuing operations | 424 | 1020 |  | 1444 | 773 | (1222) |  | (449) |
| Interest expense (income), net | 53 | 56 |  | 109 | 23 | (20) |  | 3 |
| Income tax expense | 127 | 54 |  | 181 | 350 | 98 |  | 448 |
| Depreciation and amortization | 176 | 182 | - | 358 | 223 | 103 | - | 326 |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | 780 | 1312 |  | 2092 | 1369 | (1041) |  | 328 |
| Stock-based compensation expense |  | 142 |  | 142 |  | 205 |  | 205 |
| Equity method holdings (income) loss |  | (2981) |  | (2981) |  | 903 |  | 903 |
| Loss (gain) on equity holdings | 447 | 269 |  | 716 | (1190) | (1018) |  | (2208) |
| Loss on disposal of assets and impairment charges |  | 474 |  | 474 |  | 38 |  | 38 |
| Foreign currency transaction loss | 118 | - | - | 118 | 10 | - | - | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $1345 | $(784) | $- | $561 | $189 | $(913) | $- | $(724) |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Years Ended Ended December 31,** | **Years Ended Ended December 31,** | **Years Ended Ended December 31,** | **Years Ended Ended December 31,** | **Years Ended Ended December 31,** | **Years Ended Ended December 31,** | **Years Ended Ended December 31,** | **Years Ended Ended December 31,** |
|  | **2022** | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2021** |
|  | Strong Entertainment | Corporate and Other | Discontinued Operations | Consolidated | Strong Entertainment | Corporate and Other | Discontinued Operations | Consolidated |
| Net income (loss) | $98 | $(7252) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $(7154) | $8492 | $(5121) | $14566 | $17937 |
| Net income from discontinued operations | - | - | - | - | - | - | (14566) | (14566) |
| Net income (loss) from continuing operations | 98 | (7252) |  | (7154) | 8492 | (5121) |  | 3371 |
| Interest expense, net | 143 | 197 |  | 340 | 107 | 126 |  | 233 |
| Income tax expense | 369 | 104 |  | 473 | 2755 | 481 |  | 3236 |
| Depreciation and amortization | 697 | 700 | - | 1397 | 910 | 401 | - | 1311 |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | 1307 | (6251) |  | (4944) | 12264 | (4113) |  | 8151 |
| Stock-based compensation expense |  | 652 |  | 652 |  | 892 |  | 892 |
| Equity method holdings (income) loss |  | (403) |  | (403) | 1150 | 1221 |  | 2371 |
| Employee retention credit |  |  |  |  | (1576) | (336) |  | (1912) |
| Loss (gain) on equity holdings | 2142 | 2326 |  | 4468 | (10527) | (1746) |  | (12273) |
| Loss on disposal of assets and impairment charges |  | 474 |  | 474 |  | 38 |  | 38 |
| Foreign currency transaction (income) loss | (265) | 1 |  | (264) | 67 |  |  | 67 |
| Gain on property and casualty insurance recoveries |  |  |  |  | (148) |  |  | (148) |
| Severance and other | - | 222 | - | 222 | 15 | 87 | - | 102 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA | $3184 | $(2978) | $- | $205 | $1245 | $(3957) | $- | $(2712) |

---

## Exhibit 99.2

**Exhibit 99.2**

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