v3.25.3
Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Major Class Assets and Liabilities Included as Part of Discontinued Operations

The assets and liabilities included as part of discontinued operations as of September 30, 2025 and December 31, 2024 related to the Company’s managed services and reinsurance businesses. The major classes of assets and liabilities are as follows (in thousands):

 

   September 30, 2025   December 31, 2024 
         
Cash and cash equivalents  $214   $1,232 
Accounts receivable, net   -    3,587 
Inventories, net   -    1,432 
Lease right-of-use-assets   -    1,285 
Property, plant and equipment, net   -    377 
Other assets   -    285 
Reinsurance balance receivable   7,529    22,976 
Funds deposited with reinsured companies   2,665    8,650 
Total assets of discontinued operations  $10,408   $39,824 
           
Accounts payable and accrued expenses  $81   $4,862 
Deferred revenue and customer deposits   -    771 
Debt, net of issuance costs   -    301 
Lease obligations   -    1,352 
Loss and loss adjustment expense reserves   5,226    13,283 
Present value of future profits   1,837    9,153 
Total liabilities of discontinued operations  $7,144   $29,722 
Schedule of Net Loss From Discontinued Operation

The major line items constituting the net income (loss) from discontinued operations during the three and nine months ended September 30, 2025 and September 30, 2024 are as follows (in thousands):

   Managed Services   Reinsurance   Total 
   Three Months Ended September 30, 2025 
   Managed Services   Reinsurance   Total 
Net product and services revenue  $3,941   $-   $3,941 
Net premiums earned   -    2,017    2,017 
Total revenue   3,941    2,017    5,958 
Cost of products and services revenues   (3,233)   -    (3,233)
Net losses and loss adjustment expenses   -    (1,691)   (1,691)
Amortization of deferred policy acquisition costs   -    (551)   (551)
Selling and administrative expenses   (380)   (339)   (719)
Total expenses   (3,613)   (2,581)   (6,194)
Income (loss) from operations   328    (564)   (236)
Other expense   (7)   (11)   (18)
Income (loss) from discontinued operations before taxes   321    (575)   (254)
Income tax expense   -    -    - 
Net income (loss) from discontinued operations  $321   $(575)  $(254)

 

   Managed Services   Reinsurance   Strong/MDI   Strong Studios   Total 
   Three Months Ended September 30, 2024 
   Managed Services   Reinsurance   Strong/MDI   Strong Studios   Total 
Net product and services revenue  $8,796   $-   $3,960   $-   $12,756 
Net premiums earned   -    4,293    -    -    4,293 
Total revenue   8,796    4,293    3,960    -    17,049 
Cost of products and services revenues   (6,992)   -    (2,136)   -    (9,128)
Net losses and loss adjustment expenses   -    (2,927)   -    -    (2,927)
Amortization of deferred policy acquisition costs   -    (1,050)   -    -    (1,050)
Selling and administrative expenses   (977)   (758)   (787)   365    (2,157)
Loss on disposal of assets   -    -    (71)   -    (71)
Total expenses   (7,969)   (4,735)   (2,994)   365    (15,333)
Income (loss) from operations   827    (442)   966    365    1,716 
Other (expense) income   (33)   -    21,655    10    21,632 
Income (loss) from discontinued operations before taxes   794    (442)   22,621    375    23,348 
Income tax expense   (13)   -    (95)   -    (108)
Net income (loss) from discontinued operations  $781   $(442)  $22,526   $375   $23,240 

 

   Managed Services   Reinsurance   Total 
   Nine Months Ended September 30, 2025 
   Managed Services   Reinsurance   Total 
Net product and services revenue  $19,387   $-   $19,387 
Net premiums earned   -    12,214    12,214 
Total revenue   19,387    12,214    31,601 
Cost of products and services revenues   (16,020)   -    (16,020)
Net losses and loss adjustment expenses   -    (7,022)   (7,022)
Amortization of deferred policy acquisition costs   -    (3,308)   (3,308)
Selling and administrative expenses   (2,550)   (1,523)   (4,073)
Impairment of assets   -    (1,478)   (1,478)
Total expenses   (18,570)   (13,331)   (31,901)
Income (loss) from operations   817    (1,117)   (300)
Other income   1    8    9 
Income (loss) from discontinued operations before taxes   818    (1,109)   (291)
Income tax expense   -    -    - 
Net income (loss) from discontinued operations  $818   $(1,109)  $(291)

 

   Managed Services   Reinsurance   Strong/MDI   Strong Studios   Total 
   Nine Months Ended September 30, 2024 
   Managed Services   Reinsurance   Strong/MDI   Strong Studios   Total 
Net product and services revenue  $24,600   $-   $11,286   $-   $35,886 
Net premiums earned   -    8,765    -    -    8,765 
Total revenue   24,600    8,765    11,286    -    44,651 
Cost of products and services revenues   (19,965)   -    (6,530)   -    (26,495)
Net losses and loss adjustment expenses   -    (5,387)   -    -    (5,387)
Amortization of deferred policy acquisition costs   -    (2,206)   -    -    (2,206)
Selling and administrative expenses   (2,976)   (937)   (2,799)   29    (6,683)
Loss on disposal of assets   -    -    (72)   -    (72)
Total expenses   (22,941)   (8,530)   (9,401)   29    (40,843)
Income from operations   1,659    235    1,885    29    3,808 
Other income   90    -    21,796    10    21,896 
Income from discontinued operations before taxes   1,749    235    23,681    39    25,704 
Income tax expense   (19)   -    (263)   -    (282)
Net income from discontinued operations  $1,730   $235   $23,418   $39   $25,422