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Note 19 - Segmented Information | 3 Months Ended
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Mar. 31, 2025
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | NOTE 19 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 Executive Officer. The Company conducts its business through the following two reportable segments: Extended Warranty and Kingsway Search Xcelerator. Extended Warranty Segment Extended Warranty includes the following subsidiaries of the Company: IWS, Geminus, PW I 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 in 27 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, through its subsidiaries, Penn and Prime. Penn and Prime distribute these products in 46 and 35 states, respectively, via independent used car dealerships and franchised car dealerships. Penn also sells and administers a GAP product, in states where Penn is approved. PWI markets, sells and administers vehicle service agreements to used car buyers in all fifty 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 and partners with American Auto Shield in three states with a "white label" agreement. 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. Kingsway Search Xcelerator Segment Kingsway Search Xcelerator includes the Company's subsidiaries CSuite, Ravix, SNS, SPI, DDI, Image Solutions and Bud's Plumbing. 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 and interim staffing engagements, and contingent 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 throughout the United States, Europe, Asia, Mexico and the Caribbean. DDI provides outsourced 24 hours a day and 7 days per week cardiac telemetry services for long-term acute care and inpatient rehabilitation hospitals. Outsourcing cardiac monitoring is intended to allow 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. Bud's Plumbing 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. Revenues and Operating Income by Reportable Segment Revenues by reportable segment reconciled to consolidated revenues for the three months ended March 31, 2025 and March 31, 2024 were:
(in thousands) |  | Three months ended March 31, |
|  | 2025 |  |  | 2024 |
Revenues: |  |  |  |  |  |  |  |
Service fee and commission revenue - Extended Warranty |  | $ | 16,670 |  |  | $ | 16,685 |
Service fee and commission revenue - Kingsway Search Xcelerator |  |  | 11,679 |  |  |  | 9,475 |
Total revenues |  | $ | 28,349 |  |  | $ | 26,160 |
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 unaudited consolidated interim 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 three months ended March 31, 2025 and March 31, 2024 is as follows:
|  | Three months ended March 31, |  |  | Three months ended March 31, |
|  | 2025 |  |  | 2024 |
(in thousands) |  | Extended Warranty |  |  | Kingsway Search Xcelerator |  |  | Total |  |  | Extended Warranty |  |  | Kingsway Search Xcelerator |  |  | Total |
Service fee and commission revenue |  | $ | 16,670 |  |  | $ | 11,679 |  |  | $ | 28,349 |  |  | $ | 16,685 |  |  | $ | 9,475 |  |  | $ | 26,160 |
Less segment expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Claims authorized on vehicle service agreements |  |  | 5,910 |  |  |  | — |  |  |  | 5,910 |  |  |  | 6,121 |  |  |  | — |  |  |  | 6,121 |
Commissions |  |  | 2,752 |  |  |  | (93 | ) |  |  | 2,659 |  |  |  | 2,608 |  |  |  | — |  |  |  | 2,608 |
Cost of services sold |  |  | 826 |  |  |  | 6,868 |  |  |  | 7,694 |  |  |  | 730 |  |  |  | 5,579 |  |  |  | 6,309 |
Salaries and benefits |  |  | 4,063 |  |  |  | 1,747 |  |  |  | 5,810 |  |  |  | 3,814 |  |  |  | 1,510 |  |  |  | 5,324 |
Insurance expense |  |  | 561 |  |  |  | 107 |  |  |  | 668 |  |  |  | 569 |  |  |  | 93 |  |  |  | 662 |
Professional fees |  |  | 346 |  |  |  | 336 |  |  |  | 682 |  |  |  | 250 |  |  |  | 264 |  |  |  | 514 |
IT expense |  |  | 312 |  |  |  | 336 |  |  |  | 648 |  |  |  | 291 |  |  |  | 196 |  |  |  | 487 |
Other segment items (a) |  |  | 1,385 |  |  |  | 635 |  |  |  | 2,020 |  |  |  | 1,226 |  |  |  | 490 |  |  |  | 1,716 |
Total segment operating income |  | $ | 515 |  |  | $ | 1,743 |  |  | $ | 2,258 |  |  | $ | 1,076 |  |  | $ | 1,343 |  |  | $ | 2,419 |
Net investment income |  |  |  |  |  |  |  |  |  |  | 380 |  |  |  |  |  |  |  |  |  |  |  | 326 |
Net realized (losses) gains |  |  |  |  |  |  |  |  |  |  | (71 | ) |  |  |  |  |  |  |  |  |  |  | 124 |
Net loss on equity investments |  |  |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  |  |  |  |  | (3 | )
Gain (loss) on change in fair value of limited liability investment, at fair value |  |  |  |  |  |  |  |  |  |  | 1 |  |  |  |  |  |  |  |  |  |  |  | (8 | )
Interest expense |  |  |  |  |  |  |  |  |  |  | (1,230 | ) |  |  |  |  |  |  |  |  |  |  | (1,145 | )
General and administrative expenses and other revenue not allocated to segments, net (b) |  |  |  |  |  |  |  |  |  |  | (2,833 | ) |  |  |  |  |  |  |  |  |  |  | (1,739 | )
Amortization of intangible assets |  |  |  |  |  |  |  |  |  |  | (1,682 | ) |  |  |  |  |  |  |  |  |  |  | (1,414 | )
Impairment of intangible assets |  |  |  |  |  |  |  |  |  |  | (84 | ) |  |  |  |  |  |  |  |  |  |  | (511 | )
Gain (loss) on change in fair value of debt |  |  |  |  |  |  |  |  |  |  | 20 |  |  |  |  |  |  |  |  |  |  |  | (80 | )
Loss on extinguishment of debt |  |  |  |  |  |  |  |  |  |  | (115 | ) |  |  |  |  |  |  |  |  |  |  | — |
Loss from continuing operations before income tax (benefit) expense |  |  |  |  |  |  |  |  |  |  | (3,356 | ) |  |  |  |  |  |  |  |  |  |  | (2,031 | )
Income tax (benefit) expense |  |  |  |  |  |  |  |  |  |  | (264 | ) |  |  |  |  |  |  |  |  |  |  | 84 |
Loss from continuing operations |  |  |  |  |  |  |  |  |  | $ | (3,092 | ) |  |  |  |  |  |  |  |  |  | $ | (2,115 | )
| (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 and non-operating other revenue.

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- Definition The entire disclosure for reporting segments including data and tables. 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