HGBL — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-08-13

• As discussed further under Note 16 – Recent Developments, on July 30, 2026, the Board authorized a strategic plan (the “Exit Plan”) to wind down the Company’s Specialty Lending segment. As part of the Exit Plan, HGC will take steps to wind down or exit its position in the joint ventures through whic…

• The organization chart below outlines our basic domestic corporate structure as of June 30, 2026.

• Pursuant to the terms of existing credit agreements, our largest borrower was required to collect on underlying charged off and nonperforming consumer loan portfolios and remit a required minimum monthly payment to us. However, this borrower became unable to make the required minimum monthly payment…

• Based upon the continuation of difficulties with the Company’s largest borrower, including a further decline in the second quarter of 2026, on July 30, 2026, the Board authorized a strategic plan to wind down the Company’s Specialty Lending segment beginning in the third quarter of 2026. Refer to No…

• Investments in nonconsolidated entities accounted for under the equity method are assessed for impairment when there are indicators of a loss in value, such as a lack of sustained earnings capacity or a current fair value less than the investment's carrying amount. When it is determined such a loss …

Text removed vs the prior filing · source: 10-Q · 2026-05-07

• The organization chart below outlines our basic domestic corporate structure as of March 31, 2026.

• Pursuant to the terms of existing credit agreements, our largest borrower was required to collect on underlying charged off and nonperforming consumer loan portfolios and remit a required minimum monthly payment to us. However, this borrower became unable to make the required minimum monthly payment…

• In coordination with our senior lenders, we are actively engaged in a workout process with respect to loans currently in nonaccrual status, with the objective of maximizing recoveries over the remaining economic life of the underlying collateral. Our recovery strategy is centered on the monetization…

• As of March 31, 2026, we held a gross balance of investments in notes receivable of $27.3 million, recorded in both notes receivable and equity method investments, and consisting of one borrower’s note balance of approximately $21.4 million, representing 78% of our total gross notes receivable balan…

• We do not evaluate concentration risk solely based on balance due from specific borrowers, but also consider the number of portfolio purchases, type of charged off accounts within the portfolio, and the seller of the portfolio when determining the overall risk. Of the balance due from one borrower o…

Text added vs the prior filing · source: 10-Q · 2026-08-13

• On May 26, 2026, James Sklar, Executive Vice President, General Counsel and Secretary, adopted a written arrangement intended to satisfy the affirmative defense conditions of Exchange Act Rule 10b5-1(c) (the "Trading Plan"). The Trading Plan provides for the sale of 22,500 shares of our common stock…

• During the fiscal quarter ended June 30, 2026, none of our other directors or officers (as defined in Exchange Act Rule 16a-1(f)) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408 of Regulation S-K).

• On August 10, 2026, the Company entered into an Amended and Restated Employment Agreement (the “Employment Agreement”) with David Ludwig, effective as of August 1, 2026 (the “Effective Date”). The Employment Agreement amends and restates in full the Employment Agreement, dated June 1, 2023, between …

• Pursuant to the terms of the Employment Agreement, effective August 1, 2026, Mr. Ludwig will transition to the role of senior advisor for the Financial Assets Division of the Company. The term of the Employment Agreement began on the Effective Date and ends on July 31, 2027 (the “Initial Employment …

• Furthermore, the Company may terminate Mr. Ludwig’s employment at any time during any Renewal Term with or without cause. In the event the Company terminates Mr. Ludwig’s employment without cause, the Company may, in its sole discretion and without obligation to do so, elect to pay Mr. Ludwig a seve…

Text removed vs the prior filing · source: 10-Q · 2026-05-07

• During the fiscal quarter ended March 31, 2026, none of our directors or officers (as defined in Exchange Act Rule 16a-1(f)) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408 of Regulation S-K).