Andersen Group Inc's Business Segments

The registrant operates under a Tax Receivable Agreement (TRA) that requires payments to Aggregator equal to 85% of cash tax savings realized from increases in the tax basis of AT Umbrella LLC’s assets and other tax benefits. These obligations may affect the company’s liquidity and financial condition. Andersen Tax Holdings LLC declared and paid distributions totaling $264.9 million in 2025 related to members' tax obligations and capital. AT Umbrella LLC issued promissory notes to Aggregator, including the HO Note with a principal amount of $162.3 million bearing 7.63% interest, and the CA Notes with a principal amount of $187.8 million bearing interest rates between 6.31% and 7.50%. The company maintains a $20 million revolving credit facility with JPMorgan Chase Bank, collateralized by its assets and subject to certain financial covenants; no cash borrowings were made under this facility during 2023 through 2025. Operating cash flows increased to $184.6 million in 2025 from $152.3 million in 2024, despite a net loss in 2025 driven by significant non-cash expenses. Investing activities generated $10.6 million in 2025, an improvement from cash outflows in 2024. Financing activities used $32.9 million in 2025, less than in 2024, partly due to proceeds from an initial public offering. The registrant’s operations involve managing tax-related financial obligations, distributions, debt instruments, and liquidity through credit facilities, with notable cash flow activity across operating, investing, and financing activities.

The Company operates in a single segment, as identified by its Chief Executive Officer (CEO), who serves as the Chief Operating Decision Maker (CODM). This segment encompasses the Company's core business of providing tax, valuation, financial advisory, and related consulting services to clients.