Wright Investors Service Holdings Inc

Previous wording

The Company’s Board of Directors is considering strategic uses for its funds to develop or acquire interests in one or more operating businesses. While we have focused our development or acquisition efforts on sectors in which our management has expertise, we do not wish to limit ourselves to, or to foreclose any opportunities in, any particular industry or sector. Prior to this use, the Company’s funds have been, and we anticipate will continue to be, invested in high-grade, short-term investments (such as cash and cash equivalents, U.S. Treasury Bills and mutual funds) consistent with the preservation of principal, maintenance of liquidity and avoidance of speculation, until such time as we need to utilize such funds, or any portion thereof, for the purposes described above. The directors will also consider alternatives for distributing some or all of its cash and cash equivalents and Investments in U.S. Treasury Bills and mutual funds to stockholders.

Current wording

The Company’s Board of Directors is considering strategic uses for its funds to develop or acquire interests in one or more operating businesses. While we have focused our development or acquisition efforts on sectors in which our management has expertise, we do not wish to limit ourselves to, or to foreclose any opportunities in, any particular industry or sector. Prior to this use, the Company’s funds have been, and we anticipate will continue to be, invested in high-grade, short-term investments (such as cash and cash equivalents, U.S. Treasury Bills and mutual funds) consistent with the preservation of principal, maintenance of liquidity and avoidance of speculation, until such time as we need to utilize such funds, or any portion thereof, for the purposes described above. The directors will also consider alternatives for distributing some or all of its cash and cash equivalentsand Investments in U.S. Treasury Bills and mutual fundsto stockholders.

Previous wording

For the three months ended March 31, 2024, the Company had a loss from operations before income taxes of $219,000 compared to a loss from operations before income taxes of $314,000 for the three months ended March 31, 2023.

Current wording

For the three months ended June 30, 2024, the Company had a loss from operations of $233,000 compared to a loss from operations of $282,000 for the three months ended June 30, 2023.

Previous wording

The decreased loss before income taxes of $95,000 was primarily a result of a decrease in Other operating expenses of $33,000, decrease of compensation of $2,000, and an increase in Interest and other income of $60,000.

Current wording

The decreased loss from operations of $49,000 was primarily a result of a decrease in Other operating expenses of $35,000 for the three months ended June 30, 2023, offset by an increase in Interest and other income of $13,000.

Previous wording

For the three months ended March 31, 2024, Compensation and benefits were $113,000 as compared to $115,000 for the three months ended March 31, 2023.

Current wording

For the three months ended June 30, 2024, Compensation and benefits were $115,000 as compared to $116,000 for the three months ended June 30, 2023.

Previous wording

For the three months ended March 31, 2024, Other operating expenses were $172,000 as compared to $205,000 for the three months ended March 31, 2023. The decreased operating expenses of $33,000 were primarily the result of decreased professional fees of $17,000, decreased travel and entertainment expenses of $12,000, and decreased other expenses of $4,000.

Current wording

For the three months ended June 30, 2024, Other operating expenses were $154,000 as compared to $189,000 for the three months ended June 30, 2023. The decreased operating expenses of $35,000 were primarily the result of decreased fees related to the repair and maintenance of Company owned dam properties of $41,000, offset by increased professional fees of $6,000.

Previous wording

For the three months ended March 31, 2024, Interest and other income was $66,000 as compared to $6,000 for the three months ended March 31, 2023. The increased interest and other income, including net realized gains and losses on U.S. Treasury bills, of $60,000 was primarily the result of the investments in U.S. Treasury securities, and the related interest income of $66,000 during the three months ended March 31, 2024.

Current wording

For the three months ended June 30, 2024, Interest and other income was $36,000 as compared to $23,000 for the three months ended June 30, 2023. The increased interest and other income of $13,000 was primarily the result of $10,000 of interest income earned from investments in U.S. Treasury Bills during the three months ended June 30, 2024.

Previous wording

At March 31, 2024, the Company had cash and cash equivalents totaling $2,489,000 and investments in mutual funds totaling $550,000 which it intends to use to acquire interests in one or more operating businesses, to fund the Company’s general and administrative expenses. The directors will also consider alternatives for distributing some or all of its cash and cash equivalents and investments to stockholders. The Company believes that its working capital is sufficient to support its operating requirements through June 30, 2025.

Current wording

At June 30, 2024, the Company had cash and cash equivalents totaling $2,332,000 and investments in mutual funds totaling $504,000 which it intends to use to acquire interests in one or more operating businesses and to fund the Company’s general and administrative expenses. The directors will also consider alternatives for distributing some or all of its cash and cash equivalents and investments to stockholders. The Company believes that its working capital is sufficient to support its operating requirements through September 30, 2025.

Previous wording

Cash equivalents represent short-term, highly liquid investments, which are readily convertible to cash and have maturities of three months or less at time of purchase. Please refer to note 3 for valuation of Investments.

Current wording

Cash equivalents represent short-term, highly liquid investments, which are readily convertible to cash and have maturities of three months or less at time of purchase. Please refer to note 3 for classification of Investments.

Previous wording

The increase in cash and cash equivalents of $2,364,000 for the three months ended March 31, 2024 was primarily the result of $246,000 used in operating activities, $550,000 used in the purchase of mutual funds, offset by the sale of mutual funds for $543,000, and the redemption of investments of $2,617,000.

Current wording

The increase in cash and cash equivalents of $2,207,000 for the six months ended June 30, 2024 was primarily the result of $449,000 used in operating activities, $554,000 used in the purchase of mutual funds, and the redemption of investments of $3,210,000.