NOTE 22 SEGMENTED INFORMATION

 

The Company reports segment information based on the "management" approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as a source of the Company’s reportable operating segments. The Company's chief operating decision maker is its President and Chief Operating Officer.  The Company conducts its business through the following two reportable segments: Kingsway Search Xcelerator and Extended Warranty.

 

Kingsway Search Xcelerator Segment

 

Kingsway Search Xcelerator includes the Company's subsidiaries CSuite, Ravix, SNS, SPI, DDI, Image Solutions, Roundhouse, Bud's Plumbing, Advanced Plumbing and Southside Plumbing (collectively, "KSX").  

 

CSuite is a professional services firm that provides experienced chief financial officer and other finance professionals to its clients through a variety of flexible offerings. These offerings include project, fractional, and interim staffing of senior finance professionals, CFO mentoring, board advisory services, and executive search services for permanent placements for its clients throughout the United States.

 

Ravix provides outsourced financial services and human resources consulting for short or long duration engagements for customers throughout the United States.  

 

SNS provides healthcare staffing services to acute healthcare facilities on a contract or per diem basis in the United States, primarily in California. 

 

SPI provides software products created exclusively to serve the management needs of all types of shared-ownership properties globally.

 

 

DDI provides outsourced 24 hours a day and 7 days per week cardiac telemetry services for general acute care, long-term acute care and inpatient rehabilitation hospitals. Outsourcing cardiac monitoring allows hospitals to eliminate personnel callouts and human resources issues, remove distractions from onsite operations, and free up facility staff to assist directly with patient care. DDI currently has a presence in 42 states and Puerto Rico. 

 

Image Solutions provides comprehensive information technology managed services, including equipment sales, service, and helpdesk support to customers primarily in North Carolina, Kansas, Georgia, Kentucky and Tennessee.  

 

Roundhouse provides industrial-scale electric motor solutions, including field maintenance, in-shop repair, testing, and new motor sales primarily to midstream natural gas pipeline operators and utilities across the Permian Basin.

 

Kingsway Skilled Trades includes Bud's Plumbing, Advanced Plumbing and Southside Plumbing.  Kingsway Skilled Trades provides a comprehensive range of plumbing services, including emergency repairs, drain cleaning, water heater installations, and water treatment solutions to residential and commercial customers, primarily in Evansville, Indiana (Bud's Plumbing), Cleveland, Ohio (Advanced Plumbing) and Omaha, Nebraska (Southside Plumbing).

 

Extended Warranty Segment

 

Extended Warranty includes the following subsidiaries of the Company: IWS, Geminus, PWI and Trinity (collectively, "Extended Warranty").  

 

IWS is a licensed motor vehicle service agreement company and is a provider of after-market vehicle protection services distributed by credit unions i n 28 states and the District of Columbia to their members, with customers in all fifty states .

 

Geminus primarily sells vehicle service agreements to used car buyers across the United States, mainly through its subsidiary, Penn. Penn distributes these products in 46  states  via independent used car dealerships and franchised car dealerships.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

PWI markets, sells and administers vehicle service agreements to used car buyers in  47 states via independent used car and franchise network of approved automobile and motorcycle dealer partners. PWI’s business model is supported by an internal sales and operations team .  

 

Trinity sells HVAC, standby generator, commercial LED lighting and commercial refrigeration warranty products and provides equipment breakdown and maintenance support services to companies across the United States. As a seller of warranty products, Trinity markets and administers product warranty contracts for certain new and used products in the HVAC, standby generator, commercial LED lighting and commercial refrigeration industries throughout the United States. Trinity acts as an agent on behalf of the third-party insurance companies that underwrite and guaranty these warranty contracts. Trinity does not guaranty the performance underlying the warranty contracts it sells. As a provider of equipment breakdown and maintenance support services, Trinity acts as a single point of contact to its clients for both certain equipment breakdowns and scheduled maintenance of equipment. Trinity will provide such repair and breakdown services by contracting with certain HVAC providers.

 

Revenues and Operating Income by Reportable Segment

 

Revenues by reportable segment reconciled to consolidated revenues for the years ended December 31, 2025 and December 31, 2024 were:

 

(in thousands)

 

Years ended December 31,

 
  

2025

  

2024

 

Revenues:

        

Service fee and other revenue - KSX

 $64,201  $40,511 

Service fee and other revenue - Extended Warranty

  70,795   68,871 

Total revenues

 $134,996  $109,382 

 

Results for the Company's reportable segments are based on the Company's internal financial reporting systems and are consistent with those followed in the preparation of the consolidated financial statements. The Company uses operating income as the measure of profit or loss for our segments. The Company's chief operating decision maker uses segment operating income to allocate resources in the annual budget and forecasting process and considers actual versus plan variances in assessing the performance of each segment. The chief operating decision maker also uses segment operating income as an input to the overall compensation measures for segment management under the Company's incentive compensation plans. From time to time we may report the impact of certain events, gains, losses or other charges related to our segments outside of segment operating income.  Segment assets are not regularly reviewed by the Company's chief operating decision maker and, therefore, are not included in the segment disclosures below.

 

Among other items, the degree and pace of inflation and interest rate changes may have impacts on our business and the recently announced tariffs or retaliatory responses to such tariffs may impact the Company’s operating income. The potential impact of current macroeconomic uncertainties on the Company’s financial condition, results of operations, and cash flows is subject to change and continues to depend on the extent and duration of these uncertainties.

 

The operating income by reportable segment in the following table is before income taxes and includes revenues and direct segment costs. The significant expense categories and amounts by segment align with the segment level information that is regularly provided to the chief operating decision maker.

 

 

Total segment operating income reconciled to the consolidated loss from continuing operations for the years ended December 31, 2025 and December 31, 2024 is as follows:

 

  

Year ended December 31,

  

Year ended December 31,

 
  

2025

  

2024

 

(in thousands)

 

KSX

  

Extended Warranty

  

Total

  

KSX

  

Extended Warranty

  

Total

 
                         

Service fee and other revenue

 $64,201  $70,795  $134,996  $40,511  $68,871  $109,382 
                         

Less segment expenses:

                        

Claims authorized on vehicle service agreements

     25,727   25,727      24,577   24,577 

Cost of services - salaries and benefits

  21,685   19   21,704   18,275   24   18,299 

Cost of services - commissions

  (93)  12,000   11,907   112   10,871   10,983 

Cost of services - other

  12,798   4,034   16,832   5,010   3,426   8,436 

Salaries and benefits

  10,993   16,531   27,524   6,504   14,676   21,180 

Insurance expense

  855   2,308   3,163   306   2,216   2,522 

Professional fees

  2,281   1,340   3,621   1,059   977   2,036 

IT expense

  1,651   1,323   2,974   822   1,168   1,990 

Other segment items (a)

  6,244   6,359   12,603   2,761   4,994   7,755 

Total segment operating income

 $7,787  $1,154  $8,941  $5,662  $5,942  $11,604 

Net investment income

          1,627           1,432 

Net realized and unrealized investment gains

          714           1,896 

General and administrative expenses and other revenue not allocated to segments, net (b)

          (10,962)          (9,250)

Interest expense

          (5,449)          (4,790)

Amortization of intangible assets

          (8,169)          (6,304)

Impairment of goodwill and intangible assets

          (706)          (2,848)

Loss from continuing operations before income tax benefit

          (14,004)          (8,260)

Income tax benefit

          (3,752)          (147)

Loss from continuing operations

         $(10,252)         $(8,113)

 

 

(a)

Other segment items in the table above for each reportable segment include bank charges, bad debt expense, occupancy expenses, depreciation expense, licenses and taxes, general overhead expenses and miscellaneous income.  

 (b)General and administrative expenses and other revenue not allocated to segments, net includes corporate and non-operating general and administrative expenses, contingent consideration expense (2024 year to date only) and non-operating other revenue.

 

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 17, 2025
2023Mar 5, 2024
2022Mar 8, 2023
2021Feb 28, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.