Note 8 - Segment Information

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

8.        Segment Information

Effective January 1, 2025, the Company changed its reportable segments to two reportable segments: (i) Title Insurance and (ii) Corporate and Other. The Corporate and Other segment is comprised of activity previously presented in the Real Estate, Reinsurance and Management Advisory Services segments. This change in reportable segments reflects the changes in the business mix and the manner in which the Company's chief operating decision maker, Steven A. Hale II, Chief Executive Officer, monitors the performance of operations. The change in reportable segments had no impact on the Company’s historical consolidated financial positions, results of operations or cash flows as previously reported. Where applicable, all prior periods presented have been revised to conform to this new presentation. The measure of the Company's segment performance is income (loss) before income taxes.

Title Insurance

Our title insurance segment issues title insurance policies and provides title agency services on residential and commercial real estate transactions. This segment also provides closing and/or escrow services to facilitate real estate transactions.

Corporate and Other

The Corporate and Other segment is comprised of activity previously presented in the Real Estate, Reinsurance and Management Advisory Services segments. Activity in the Corporate and Other segment primarily consists of management advisory services that the Company performs through its Services Agreement with HP Risk. Pursuant to this agreement, the Company provides certain managerial and operational services that include, but are not limited to: reinsurance brokerage services; the review and improvement of financial goals; compliance with legal and regulatory mandates; maintenance of an ethical business environment; investment and asset manager compliance; cash and equity management; corporate tax management; personnel management; related party transaction oversight; tax preparation administration; strategic capital modeling; the review of potential acquisitions and transactions involving affiliates and third parties, including but not limited to, renewal rights deals, loss portfolio transfers or entity acquisitions; execution of (or provision for the execution of) all general corporate legal matters; and provision of internal control management services.

The Corporate and Other segment also includes results of the Company's investment in a related party - HC Realty. HC Realty is an internally-managed REIT focused on acquiring, financing, owning and managing build-to-suit or renovate-to-suit, single-tenant properties leased primarily to the U.S. government and administered by the GSA or directly by the federal government agencies or sub-agencies occupying such properties. As of December 31, 2025, the Company owns approximately 28.0% of the voting interest of HC Realty.

Provided below is selected financial information about the Company’s operations by segment for the year ended December 31, 2025 (in thousands):

	Title			Corporate
	Insurance			and Other			Total
Revenues:
Net premium written	$	6,941		$	-		$	6,941
Escrow and other title fees		2,795			-			2,795
Management fees		-			5,000			5,000
Total revenues		9,736			5,000			14,736
Cost of revenues:
Underwriting expenses		(263	)		-			(263	)
Recoveries of title claim losses		(119	)		-			(119	)
Search and other fees		(103	)		-			(103	)
Total cost of revenue		(485	)		-			(485	)
Gross profit		9,251			5,000			14,251
Operating expenses:
Personnel costs		(6,829	)		(1,505	)		(8,334	)
Other operating expense (1)		(3,377	)		(1,164	)		(4,541	)
Amortization and depreciation		(99	)		-			(99	)
Total operating expense		(10,305	)		(2,669	)		(12,974	)
Other income/(expense), net		342			(2,690	)		(2,348	)
Loss before income taxes	$	(712	)	$	(359	)	$	(1,071	)
Goodwill and intangible assets (2)	$	6,610		$	-		$	6,610

(1) Other operating expense primarily consists of rent and other occupancy expenses, software and equipment expense, corporate insurance and other regulatory and professional fees. 

(2) The Company does not allocate its assets by segment, with the exception of Goodwill and Intangible assets.

Provided below is selected financial information about the Company’s operations by segment for the year ended December 31, 2024 (in thousands):

	Title			Corporate
	Insurance			and Other			Total
Revenues:
Net premium written	$	6,009		$	-		$	6,009
Escrow and other title fees		2,501			-			2,501
Management fees		-			3,003			3,003
Total revenues		8,510			3,003			11,513
Cost of revenues:
Underwriting expenses		(205	)		-			(205	)
Provision for title claim losses		(328	)		-			(328	)
Search and other fees		(62	)		-			(62	)
Total cost of revenue		(595	)		-			(595	)
Gross profit		7,915			3,003			10,918
Operating expenses:
Personnel costs		(6,505	)		(1,355	)		(7,860	)
Other operating expense (1)		(3,499	)		(1,087	)		(4,586	)
Amortization and depreciation		(131	)		(2	)		(133	)
Total operating expense		(10,135	)		(2,444	)		(12,579	)
Other income, net		280			1,114			1,394
(Loss) income before income taxes	$	(1,940	)	$	1,673		$	(267	)
Goodwill and intangible assets (2)	$	6,685		$	-		$	6,685

(1) Other operating expense primarily consists of rent and other occupancy expenses, software and equipment expense, corporate insurance and other regulatory and professional fees. 

(2) The Company does not allocate its assets by segment, with the exception of Goodwill and Intangible assets.

There were no major customers contributing more than 10% of revenue, aside from HPMA and HP Risk, as noted above, for the year ended December 31, 2025, and there were no major customers contributing more than 10% of revenue, aside from HPMA, as noted above, for the year ended December 31, 2024.