STLY 10-K & 10-Q changes, risk factors and insider trading

If an ownership change (as described below) occurs pursuant to applicable statutory regulations, we are potentially subject to limitations on the use of our net operating loss carryforwards which in turn could adversely impact our potential to derive a benefit from our net operating loss carryforwards. In general, an ownership change would occur if the percentage of our common stock held by one or more 5% shareholders increases by more than 50%50 percentage points over the lowest percentage of our common stock owned by such shareholder during a three-year test period.

A significant natural disaster, such as a hurricane, tropical storm, tornado, windstorm, earthquake, hail, and other catastrophic events, including the occurrence of a contagious disease or illness, such as COVID-19 or any other future epidemics or pandemics, could have a material adverse impact on our business, results of operations, and financial condition. In addition, climate change could result in an increase in the frequency or severity of natural disasters. Given the unpredictable nature of these events with respect to size, severity, duration and geographic location, it is not currently possible to quantify the ultimate impact that they may have on our business. Additionally, geopolitical concerns (including the ongoing conflicts between Russia and Ukraine and Israelin andthe HamasMiddle East), the imposition of tariffs and other changes to trade policy in the U.S. and other jurisdictions, and terrorist attacks could result in increased volatility in, or damage to, real estate prices and the United States and the worldwide financial markets and economy more generally, including with respect to supply chain disruptions, labor market interruptions and government interventions, all of which could have a material adverse effect on our results of operations and financial condition.

Goodwill aggregated approximately $6.5 million, or approximately 15%approximatel y 14% of our total assets as of December 31, 2024.2025. Current accounting rules require that goodwill be assessed for impairment at least annually or whenever changes in circumstances indicate that the carrying amount may not be recoverable from estimated future cash flows. Factors that may be considered a change in circumstance indicating the carrying value of our goodwill may not be recoverable include, but are not limited to, significant underperformance relative to historical or projected future operating results, a significant decline in our stock price and market capitalization, and negative industry or economic trends. As of December 31, 2024,2025, management has deemed there is no impairment of our recorded goodwill. However, if there is an economic downturn in the future, the carrying amount of our goodwill may no longer be recoverable, and we may be required to record an impairment charge, which would have a negative impact on our results of operations and financial condition. Management will continue to monitor our operating results, our market capitalization, and the impact of the economy to determine if there is an impairment of goodwill in future periods.

The demand for our title insurance and title agency services is dependent primarily on the volume of residential and commercial real estate transactions. The volume of these transactions historically has been influenced by such factors as mortgage interest rates, inventory, affordability, availability of financing and the overall state of the economy. Mortgage rates remained very high after emergency actions taken by the Federal Reserve to substantially increase its benchmark interest rate in an attempt to control inflation during 2022 and 2023. In the lastlatter four monthspart of 2024,2025, the Federal Reserve lowered the federal funds rate threeseveral times to a current range of 4.25%3.50% to 4.50%,3.75% andas whileof thereDecember are31, expectations that the Federal Reserve will continue lowering the federal funds rate in 2025, these expectations may not materialize and the Federal Reserve may increase rates in the future in an effort to combat inflation.2025. While the latest and potential future Federal Reserve rate decreases may positively impact the title insurance market, mortgage rates continue to remain relatively high as compared to pre-2022 levels and will likely continue to contribute to decreased real estate activity in the upcoming year. ShouldOngoing political and market uncertainties (including tariff policies) are contributing to the Federal Reserve decide to raise rates in the future, this will result in further increases in market interest rates and continued lowsuppressed volume of real estate activity. In aaddition, risingexpectations interestof further Federal Reserve rate environment, any leverage that we incurdecreases may bearnot materialize and the Federal Reserve may increase rates in the future to combat inflation, which would likely have a highernegative interestimpact rate than may currently be available. There may not, however, be a corresponding increase in our revenues. Further, when interest rates are increasing or when the economy is experiencing a downturn, real estate activity declines. As a result,on the title insurance and title agency industry tends to experience decreased revenues and earnings, and potentially increased title claims experience. Additionally, any increase in inflation could have an adverse impact on our general and administrative expenses, as these costs could increase at a rate higher than our revenue.market.

Regulatory oversight could require us to raise capital, and/or make it more difficult to deploy capital. For example, our regulatory capital requirements have historically applied only at the subsidiary level, specifically our insurance underwriter subsidiaries. However, the National Association of Insurance Commissioners (the "NAIC") has adopted an approach to assess group risks and capital adequacy and assist in the regulation of insurer solvency using the Group Capital Calculation (the “GCC”), which uses an aggregation methodology for all entities within an insurance holding company system. The adoption of the GCC by jurisdictions in which we are regulated could increase our prescribed capital requirements, the level at which regulatory scrutiny intensifies, as well as significantly increase our cost of regulatory compliance. In addition, changes in the applicable regulatory environment, statutory guidelines or interpretations of existing regulations or statutes, enhanced governmental oversight or efforts by governmental agencies to cause customers to refrain from using our title insurance and title agency subsidiaries’ products or services could prohibit or limit their future operations or make it more costly or burdensome to conduct such operations or result in decreased demand for their products and services or a change in their competitive position. The impact of these changes would be more significant if they involve the Florida jurisdiction, as a majority of our title premiums are currently generated in the state of Florida.Florida, and a proposed bill aligning Florida law with the GCC approach adopted by the NAIC is currently working its way through the Florida legislature. These changes may restrict our ability to acquire assets or businesses, may limit the manner in which we conduct our business or otherwise may have a negative impact on our ability to generate revenues, earnings and cash flows. Additionally, in jurisdictions where rates are not promulgated by the state insurance regulator, these changes may compel us to reduce our prices and may restrict our ability to implement price increases.

Federal and state officials are discussing various potential changes to laws and regulations that could impact our businesses, including the reform of government-sponsored enterprises such as the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (Freddie Mac) and additional data privacy regulations, among others. Changes in these areas, and more generally in the regulatory environment in which our title insurance and title agency subsidiaries and their customers operate, could adversely impact the volume of mortgage originations in the United States and our title insurance and title agency subsidiaries competitive position and results of operations.

NCTIC maintains a reserve for IBNR claims pertaining to its title insurance products. The majority of this reserve pertains to title insurance policies, which are long-duration contracts with the majority of the claims reported within the first few years following the issuance of the policy. Generally,Generally , 70% to 80% of claim amounts become known in the first six years of the policy life, and the majority of IBNR reserves relate to the six most recent policy years. Changes in expected ultimate losses and corresponding loss rates for recent policy years are considered likely and could result in a material adjustment to the IBNR reserves. Loss rates for recent policy years, positive or negative, may vary significantly given the long duration nature of a title insurance policy. In uncertain economic times, such as those experienced as a result of the COVID-19 pandemic, rising inflation and rising interest rates, larger changes may be more likely. Material changes in expected ultimate losses and corresponding loss rates for older policy years are also possible, particularly for policy years with loss ratios exceeding historical norms. The estimates made in determining the appropriate level of IBNR reserves could ultimately prove to be materially different from actual claims experience.

We owned approximately 28.0% of the voting interest in HC Realty as of December 31, 2024.2025. There is no guarantee that HC Realty will be successful implementing its business strategy for the acquisition, financing, ownership and management of Government Properties and, as a result, our investment in HC Common Stock and HC Series B Stock may lose value. Additionally, HC Realty has paused distributions on HC Common Stock and HC Series B Stock, which has resulted in our loss of revenue historically derived from such distributions, and we have recognized an impairment of our investment in HC Series B Stock.

From time to time, HC Realty enters into leases that provide the U.S. government the right to terminate the lease during a specified period prior to the expiration of the total term stated in the lease, with such period often referred to as the “soft term.” In the event that a portion of HC Realty’s U.S. government tenant agencies exercise their termination rights during a soft term period prior to the expiration of the total term stated in the lease, for government efficiency and productivity reasons, fiscal policy reasons, security concerns or other reasons, and HC Realty is not able to lease the vacant space to another tenant in a timely manner or at all, it could have a material adverse effect on HC Realty’s business, financial condition and results of operations, and our investment in HC Realty.

Our current executive officers, directors and 10% stockholders control approximately 78.0% 89.7% of the voting power represented by our outstanding common stock. If these stockholders act together, whether by written consent or at a duly called and held meeting of stockholders, they may be able to exert significant control over our management and affairs requiring stockholder approval, such as the election of directors or our dissolution. This concentration of ownership may have the effect of delaying or preventing a change in control and might adversely affect the market price of our common stock. This concentration of ownership may not be in the best interests of all our stockholders.

Our title insurance segment revenue is closely related to the level of real estate activity, such as sales, mortgage financing and mortgage refinancing. Declines in the level of real estate activity or the average price of real estate sales will adversely affect our title insurance revenues. A shortage in the supply of homes for sale, increasingelevated home prices, high mortgage interest rates and inflation have created volatility in the residential real estate market since 2021. DespiteIn the Federal Reserve lowering the federal funds rate in 2024, current interest rates remain at elevated levels compared to pre-2021 interest rates. Additionally, recentaddition, geopolitical uncertainties and federalother governmentmacroeconomic effortsfactors havemay createdcontinue elevatedto contribute to volatility in domestic and global arenas.

Historically, real estate transactions have produced seasonal revenue fluctuations in the real estate industry. The first calendar quarter is typically the weakest quarter in terms of revenue due to the generally low volume of home sales during January and February. The second and third calendar quarters are typically the strongest quarters in terms of revenue, primarily due to a higher volume of residential transactions in the spring and summer months. The fourth quarter is typically strong due to the desire of commercial entities to complete transactions by year-end. Seasonality in recent years deviated from historical patterns due to COVID-19 and the subsequent rapid increase in interest rates. We have noted short-term fluctuations through recent years in resale and refinance transactions as a result of changes in interest rates.rates and other market conditions.

ReinsuranceCorporate and Other Segment

As of December 31, 2024,2025, our sources of income include earnings on our title insurance and title agency subsidiaries, dividends on HC Common Stock and HC Series B Stock, revenue earned from management services, and interest paidearned on our cash deposits and investment portfolio. The Company believes that the revenue generating from these sources and cash on hand are sufficient to fund operating expenses for at least 12 months from the date of the accompanying consolidated financial statements.

The Company’s underwriting results were primarily influenced by a growth of the net title premium to $6.9 million for the year ended December 31, 2025 from $6.0 million for the year ended December 31, 2024 fromdriven $5.9 million forby the yearhigher endedvolume Decemberin 31,affiliated 2023.title This growth was offset by no reinsurance coveragebusiness written in 2024. The Company's reinsurance segment generated $0.3 million of earned reinsurance premium for the year ended December 31, 2023.2025.

The Company’s escrow and other title fees remainedincreased relativelyto flat$2.8 atmillion for the year ended December 31, 2025, compared to $2.5 million for the year ended December 31, 2024,2024 compareddue to $2.6 million for the yearincrease endedin Decembervolumes 31,of 2023.title business generated in 2025.

The Company’s operating expenses primarily consist of general and administrative expenses, such as personnel expenses, office and technology expenses, and professional fees. General and administrative expenses for the year ended December 31, 20242025 were $12.6$13.0 million, as compared to $13.0$12.6 million for the year ended December 31, 2023.2024. The decreaseincrease is primarily due to higher legal and professional fees related to transactions described in operatingNote expenses3, wasSignificant primarilyTransactions, attributablein the accompanying Consolidated Financial Statements, as well as an increase in employee health and benefit costs in 2025 as compared to savings from the Company's workforce optimization efforts during 2024.

Other income(expense) andincome, expensesnet primarily consist of interest and dividend income, changes in the net asset value of investment in limited partnership, as well as changes in value and distributions of our related party investmentsinvestments. During the year ended December 31, 2025, other (expense) income, net of ($2.3) million was primarily driven by a $4.1 million impairment of HC Series B Stock, offset by distributions from related parties of $0.9 million. Additionally, other (expense) income included interest income of $0.4 million and legalan settlementsincrease andin recoveries.the net asset value of investment in limited partnership of $0.4 million. During the year ended December 31, 2024, the Company generated $1.4 million in other income(expense) andincome, expense,net largelyprimarily drivenas bya result of a recovery of $1.1 million onfrom FedNat Holding Company (“FedNat”) litigation (See Note 12, Commitments and Contingencies in the accompanying notes to the Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K).litigation. Additionally, the Company generated  dividend and interest income of $0.7  million, increase in the net asset value of investment in limited partnership of $0.4 million and net gain from investments in related parties of $0.2 million during the year ended December 31, 2024, which were largely offset by an impairment of the investment in HC Common Stock and HC Series B Stock of $1.2  million. During the year ended December 31, 2023, the Company generated $1.6 million in other income and expense primarily as a result of dividend income from HC Common Stock and HC Series B Stock of $1.0 million. Additionally, the Company generated interest income of $0.5 million, increase in the net asset value of investment in limited partnership of $0.3 million, offset by the net loss from related parties of $0.1 million and a settlement of $0.1 million related to the Hollie Settlement Agreement (as defined and described in further detail in Note 12, Commitments and Contingencies in the accompanying notes to the Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K).

Our effective tax rate for the years ended December 31, 20242025 and 20232024 was 6.7%255.6% and (5.0%),6.7%, respectively, primarily as a result of net operating loss carryforward, valuation allowances on deferred tax assets, and state income tax differences in the jurisdictions in which the Company currently operates. The increase in effective tax rate in 2025 as compared to 2024 was driven primarily by a valuation allowance release on federal and Florida net operating losses. Historically, the effective tax rate had been driven almost exclusively by state income taxes.

Cash flows from operating activities differ from net income (loss) due to adjustments for non-cash items, such as gains and losses on investments, amortization, depreciation, claims and other accrued liabilities, and collections or changes in receivables and other assets. Net cash provided by operations of $0.9 million for the year ended December 31, 2025 differs from operating results for the year ended December 31, 2025 primarily due to an impairment of the investment in HC Series B Stock of $4.1 million and an increase of $1.5 million in escrow liabilities on the title insurance subsidiaries. Net cash provided by operations of $2.0 million for the year ended December 31, 2024 differs from operating results for the year ended December 31, 2024 primarily due to  an impairment of the investment in HC Common Stock and HC Series B Stock of $1.2  million  and an increase of $0.7  million in escrow liabilities on the title insurance subsidiaries. Net cash provided by operations of $1.7 million for the year ended December 31, 2023 differs from operating results for the year ended December 31, 2023 primarily due to an increase of $2.0 million in escrow liabilities on the title insurance subsidiaries.

Cash flows from investing activities include effects of purchases and sales of plant, property, and equipment, purchases of investments and proceeds from sales or maturities of investments. During the year ended December 31, 2025, the Company had $0.2 million of net cash provided by investing activities, which was a result of $1.5 million of proceeds from redemptions of securities and sales of investments, partially offset by $1.3 million of purchases of investments, including investments in related parties of $0.3 million. During the year ended December 31, 2024, the Company had $1.1 million of net cash provided by investing activities, which was a resultconsisted of $2.4 million of proceeds from redemptions of securities and returnssales onof investments, partially offset by $1.3 million of purchases of investments, including investments in related parties of $0.5 million. During the year ended December 31, 2023, the Company had $1.1 million of net cash provided by investing activities, which consisted of $1.2 million of proceeds from redemption of securities, partially offset by purchases of investments in related parties of $33,000 and purchases of equipment of $51,000.

Cash flows from financing activities include effects of capital contributions, repurchase of outstanding shares of common stock and changes in noncontrolling interest. Cash flows used in financing activities for the year ended December 31, 20242025 were $0.4$4.4 million and consisted of $243,000$4.4 million in repurchases of shares of common stock and $121,000$11,000 of net distributions to minority stockholders. Cash flows used in financing activities for the year ended December 31, 20232024 were $52,000$0.4 million and consisted of $62,000$243,000 in repurchases of shares of common stock, partially offset by $10,000$121,000 providedof bynet distributions to minority stockholders in exchange for an interest in a consolidated subsidiary.stockholders.

See Note 1,2, Significant Accounting Policies in ourthe auditedaccompanying consolidatednotes financialto statementsthe includedConsolidated elsewhereFinancial Statements in Part II, Item 8 of this Annual Report on Form 10-K for a summary of our significant accounting and reporting policies.

The Company’s investments in related parties are accounted for either under the equity method of accounting or, where they do not meet the criteria of accounting under the equity method, under the cost adjusted for market observable events less impairment method. For information about the Company’s investments in related parties and its accounting policy, refer to Note 3,5, Investments in Related Parties and Note 1,2, Significant Accounting Policies in the accompanying notes to the Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K.

AsFor ofthe year ended December 31, 2024,2025, the Company recognized $1.2$4.1 million in impairments to investments in related parties.parties Noand $1.2 million in impairments were recognized infor 2023.the year ended December 31, 2024.

As of December 31, 20242025 and 2023,2024, our title claim reserves were $637,000$705,000 and $313,000,$637,000, respectively, which we determined were reasonable and represented our best estimate. These recorded amounts were within a reasonable range of the central estimates provided by our actuaries. During the years ended December 31, 20242025 and 2023,2024, the Company recognized $109,000($85,000) and ($6,000),$109,000, respectively, in net provision for claims development attributable to insured events of the prior years. Original estimates are decreased or increased as additional information becomes known regarding individual claims.

As of MarchJune 31,30, 2026, our sources of income include earnings from our title insurance subsidiaries, management service fees and interest earned on invested assets. The Company believes that the revenue generated from these sources and cash on hand is sufficient to fund operating expenses for at least 12 months from the date of the accompanying Unaudited Consolidated Financial Statements.

Our title insurance segment revenue is closely related to the level of real estate activity, such as sales, mortgage financing and mortgage refinancing. Declines in the level of real estate activity or the average price of real estate sales will adversely affect our title insurance revenues. The industry as a whole saw declined levels in total real estate transactions in the last several years, largely due to higher mortgage interest rates as compared to pre-2022 levels. During its September, October and December 2025 meetings, the Federal Reserve lowered the federal funds rate by a total of 75 basis points to a current range of 3.50% to 3.75%; however, amid renewed inflationary pressures and ongoing macroeconomic uncertainty,uncertainty and geopolitical tensions, the Federal Reserve held the federal funds rate steady at its January 2026, March 2026 and April 2026 meetings, and recent Federal Open Market Committee projections suggest a more limited pace of additional rate reductions overthrough the remainderfirst half of 2026. While additional federal funds rate decreases, if and when implemented, may positively impact the title insurance market, ongoing geopoliticalmacroeconomic tensions, evolving federal government policy initiatives,uncertainty and persistentgeopolitical inflationary pressurestensions have created elevated volatility in domestic and global markets, making it challenging to forecast industry trends.trends or possible rate changes. Per the Mortgage Bankers Association's ("MBA") Mortgage Finance Forecast as of AprilJuly 2026, interest rates on a Freddie Mac 30-year, fixed-rate mortgage reachedhave aaveraged approximately 6.49% to 6.52% through June and early July 2026, relatively stable following the recent high of 6.57% in the last week of March 2026, as longer-term rates jumped on anticipated higher inflation and the 10-year Treasury Yield briefly approached 4.5%, before declining by approximately 20 basis points.2026. Despite continued elevated mortgage rates, the MBA projects a gradual recovery in the housing market. Per the AprilJuly 2026 MBA ForecastMortgage Commentary,Finance Forecast, total single-family mortgage origination volume is now forecast to increase by approximately 6%5.5% in 2026 as compared to 2025, from approximately $2.05 trillion in origination value to a little less than $2.2$2.16 trillion. Purchase mortgage origination volume is expected to total approximately $1.42 trillion in origination value in 2026, up from approximately $1.36 trillion in 2025, while refinance origination volume is expected to increase to approximately $769$747 billion in origination value from approximately $694 billion in 2025.

Comparison of three and six months ended MarchJune 31,30, 2026 and 2025

Management fees increased towere $1.5 million and $3.0 million for the three and six months ended MarchJune 31,30, 2026, respectively, compared with $1.3 million and $2.0 million for the corresponding periods in 2025. Management fees increased by $0.3 million, or 20.0%, for the three-month period ended June 30, 2026 as compared to $0.8the millionthree-month period ended June 30, 2025, and by $1.0 million, or 50.0%, for the threesix-month monthsperiod ended MarchJune 31,30, 2026 as compared to the six-month period ended June 30, 2025. The increase was due to the Services Agreement with HP Risk becoming effective June 1, 2025. HP Risk is a wholly-owned subsidiary of HP Holding Company, LLC, which, in turn, is wholly owned by certain affiliates of Steven A. Hale II, our Chairman and Chief Executive Officer, pursuant to which the Company is providing certain managerial and operational services to HP Risk for consideration from HP Risk of $6.0 million per year over the course of three years. Such services 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.

Total revenue was $3.8$4.5 million and $2.7$8.3 million for the three-monththree and six-month periods ended MarchJune 31,30, 2026, respectively, compared with $4.1 million and $6.8 million for the three and six months ended June 30, 2025. Total revenue increased by $0.4 million, or 9.7%, for the three-month period ended June 30, 2026 andas Marchcompared 31,to the three-month period ended June 30, 2025, respectively.and by $1.5 million, or 22.0%, for the six-month period ended June 30, 2026 as compared to the six-month period ended June 30, 2025. The increase in revenue was primarily a result of the management fees derived from the Services Agreement with HP Risk and higher titlevolume of affiliated title insurance business volume written in 2026 as compared to the same period of the prior year.

The Company’s cost of revenues consists primarily of a provision for title claim losses and underwriting expenses, which are largely comprised of commissions to unaffiliated title agencies. Cost of revenues forwas thegenerally three-monthflat periodsat ended$0.2 March 31, 2026million and March$0.3 31, 2025 was $0.1 million. The minimal increase in cost of revenuesmillion for the three and six months ended MarchJune 31,30, 2026, asrespectively, compared towith $0.2 million and $0.3 million for the samethree periodand ofsix themonths priorended year,June was30, attributable2025, to loss adjustment expenses reserve established for a title insurance claim. Original estimates of ultimate loss exposures are decreased or increased as additional information becomes known during the adjustment process regarding individual claims.respectively.

The Company’s operating expenses primarily consist of general and administrative expenses such as personnel expenses, office and technology expenses, and professional fees. Operating expenses were generally flat at $3.3 million forand the three months ended March 31, 2026 as compared to $3.2$6.6 million for the three and six months ended MarchJune 31,30, 2026, respectively, compared with $3.3 million and $6.5 million for the three and six months ended June 30, 2025.

Other income, net primarily consists of net interest income, change in the net asset value of investment in limited partnership as well as changes in value and income or loss from our related party investments. Other income, net was $0.4 million and $0.7 million, respectively, for the three-monththree periodand six-month periods ended MarchJune 31,30, 2026, compared to $0.3$0.4 million and $0.6 million for the three and six-month periods ended June 30, 2025. Other income, net, was generally unchanged for the three-month period ended MarchJune 31,30, 2026 as compared to the three-month period ended June 30, 2025, and increased by $0.1 million, or 17.5%, for the six-month period ended June 30, 2026 as compared to the six-month period ended June 30, 2025. The increase was primarily a result of higher income from related parties and change in the net asset value of investmentinvestments in limited partnershippartnerships for the three-monthsix-month period ended MarchJune 31,30, 2026, that included $86,000 of income pick up from ACMAT and a $55,000 increase in the net asset value of investment in limited partnership,2026 as compared to an impairment taken on the Company'scorresponding investmentsperiod in HC Series B Stock of $41,000 and a negative change in the net asset value of investment in limited partnership during the three-month period ended March 31, 2025.

Sources of liquidity include cash on hand, earnings from our title insurance subsidiaries, management service fees and interest earned on invested assets. At MarchJune 31,30, 2026, we had $10.7$12.3 million in cash and cash equivalents and an additional $9.8 million in restricted cash, substantially all of which is cash held in escrow for title insurance transactions. A portion of our unrestricted and restricted cash is currently held in savings accounts earning interest at approximately 3.3%3.4% annually. During the second quarter of 2025, the Company entered into the Services Agreement with HP Risk under which the Company earns a management advisory fee of $6.0 million per year over the course of three years. We believe that the sources stated above will be sufficient to satisfy our operating requirements for the foreseeable future, and we do not anticipate a need to raise funds from sources other than those described above within the next 12 months.

Cash flows provided by operating activities differ from net income (loss) due to adjustments for non-cash items, such as gains and losses on investments, the timing of disbursements for taxes, claims and other accrued liabilities, and collections or changes in receivables and other assets. Net cash provided by operating activities of $3.7$4.9 million differs from operating results for the three-monthsix-month period ended MarchJune 31,30, 2026, primarily due to an increase of $3.2$3.1 million in escrow liabilities on the title insurance subsidiaries. Net cash provided by operating activities of $3.6$2.9 million differs from operating results for the three-monthsix-month period ended MarchJune 31,30, 2025, primarily due to an increase of $3.6$2.8 million in escrow liabilities on the title insurance subsidiaries.

Cash flows provided by investing activities include effects of purchases of investments and proceeds from sales or maturities of investments. During the three-monthsix-month period ended MarchJune 31,30, 2026, the Company received proceeds from its investments in limited partnership of $50,000.$0.5 million and purchased approximately $19,000 in property and equipment. During the three-monthsix-month period ended MarchJune 31,30, 2025, the Company's fixed income portfolio matured, resulting in $1.0 million in proceeds. Additionally, during the six-month period ended June 30, 2025, the Company received proceeds of $145,000 related tofrom its investments in limited partnership.partnership of $0.3 million and provided additional contributions to related parties of $0.3 million.

Cash flows used in financing activities include share repurchases and effects of changes in noncontrolling interest. Cash flows used in financing activities for the three-monthsix-month period ended MarchJune 31,30, 2026 of $327,000$359,000 consisted of $287,000 of repurchases of common stock and $40,000$72,000 of distributions to non-controllingnoncontrolling interest shareholders. There was no cash provided by orCash used in financing activities forduring the three-monthsix-month period ended MarchJune 31,30, 2025.2025 consisted of $3.8 million of repurchases of common stock and $17,000 of distributions to noncontrolling interest shareholders.

Our critical accounting policies and estimates are provided in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, included in our Annual Report on Form 10-K for the year ended December 31, 2025. We believe there have been no new critical accounting policies or material changes to our existing critical accounting policies and estimates during the three and six months ended MarchJune 31,30, 2026.