Thu, May 15, 1:33 PM (32 days ago)
**Texas Republic Capital Corporation (TXRC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue increased by $188,753, primarily due to increased new policy sales and growth in the overall business. - **Profit Margins:** The company reported a net loss of $169,767, or $(0.01) per share, compared to a net loss of $63,716 or $0.00 per share in Q1 2024. The increase in net loss was primarily due to changes in revenues and expenses. - **Cash Flow:** The company had cash and cash equivalents totaling $5,360,030 as of March 31, 2025. The company maintains cash at multiple institutions, with uninsured balances aggregating $1,288,905. **Key Metrics:** - **Total Assets:** Decreased from $33,811,480 as of December 31, 2024, to $31,204,583 as of March 31, 2025, primarily due to annuity surrenders. - **Total Liabilities:** Decreased by $2,633,912 at March 31, 2025, compared to December 31, 2024, primarily related to annuity surrenders. - **Shareholders' Equity:** Increased from $10,437,692 as of December 31, 2024, to $10,450,176 as of March 31, 2025, mainly due to additional capital raised during 2025 and a positive change in accumulated other comprehensive loss. **Quarterly Performance Discussion:** - **Revenues:** Increased due to new policy sales and growth in the overall business. Net investment income and commission income decreased compared to the prior year. - **Expenses:** Increased by $294,804, with significant categories including total benefits and claims, commissions, salaries and employee benefits, and other general and administrative expenses. - **Net Loss:** Increased by $106,051, primarily due to changes in revenues and expenses. **Trends and Uncertainties:** - The company continues to incur overall losses since inception, which were expected and planned for as part of the necessary start-up and infrastructure costs. - The company expects to continue incurring operating losses until it achieves a volume of in-force life insurance policies that provide sufficient premiums and investment income to cover operating costs. - The company faces uncertainties related to changes in interest rates, economic conditions, and volatility in the capital markets, which can impact earnings from the investment portfolio. **Future Operations Impact:** - The company plans to continue investing in people, technology, infrastructure, marketing, brand awareness, distribution channels, regulatory and filing fees, legal costs, and other overhead expenses related to operations. - The company believes that its existing cash and cash equivalents will be sufficient to fund anticipated operating expenses and capital expenditures for at least the next 12 months.