Business Description

1. Principles of Consolidation and Description of Business Standard Premium Finance Holdings, Inc. (“SPFX” or the “Holdings”) was incorporated on May 12, 2016, pursuant to the laws of the State of Florida. SPFX issued 100,000 shares of common stock to its founder with a fair value of $ 100 in exchange for services provided. Standard Premium Finance Management Corporation (“SPFMC”) was incorporated on April 23, 1991, pursuant to the laws of the State of Florida, to engage principally in the insurance premium financing business. SPFMC is a licensed insurance premium finance company in forty-one states. Standard Premium Finance Leasing, Inc. (“SPFL”) was incorporated on August 20, 2025, pursuant to the laws of the State of Florida, to engage principally in leasing arrangements. As of December 31, 2025, SPFL has not engaged in any material activity. On March 22, 2017, SPFX entered into an agreement of share exchange with SPFMC and the shareholders of SPFMC common stock to facilitate the formation of SPFX that will own all of the issued and outstanding shares of SPFMC. The shareholders of SPFMC agreed to exchange SPFMC common stock for newly issued shares of SPFX common stock. For accounting purposes, this transaction is being accounted for as a merger of entities under common control and has been treated as a recapitalization of SPFX with SPFMC as the accounting acquirer. The historical financial statements of the accounting acquirer became the financial statements of the Company. The Company did not recognize goodwill or any intangible assets in connection with the transaction. The accompanying consolidated financial statements include the accounts of SPFX and its wholly-owned subsidiaries SPFMC and SPFL. SPFX and its subsidiaries are collectively referred to as (“the Company”). All intercompany balances and transactions have been eliminated in consolidation. The Company is an emerging growth company (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012. The Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act and, accordingly, the Company adopts new or revised accounting standards on the effective dates applicable to public business entities.