Core Viewpoint - Kodak, a 133-year-old imaging company, is warning investors about its potential inability to continue operations due to financial difficulties, including a $500 million debt obligation and concerns over its ongoing viability [1][1][1] Financial Situation - Kodak filed for Chapter 11 bankruptcy protection in 2012 and has been struggling financially since then [1] - The company has indicated it lacks sufficient funds to repay approximately $500 million in upcoming debt [1][1] - Kodak plans to raise funds by halting pension payments [1] Business Operations - The company temporarily suspended film production to upgrade its factories in response to demand growth [1] - Kodak's CEO stated that despite the uncertain business environment, the company is making progress on its long-term plans [1] Market Reaction - Kodak's stock price plummeted over 25% during intraday trading, closing down 19.91% on the day [1][1]

Group 1 - Kodak has announced "substantial doubt" about its ability to continue operations, as stated in a recent SEC filing [1][3] - The company plans to address its financial obligations by utilizing funds expected from its pension plan, aiming to pay off some debt and preferred stock [2] - Kodak's plans to refinance its remaining debt and preferred stock obligations are considered unreliable under U.S. accounting rules, raising concerns about its business viability [3] Group 2 - Kodak was a pioneer in film photography, dominating the market for much of the 20th century and controlling over 80% of the U.S. film market at its peak [5] - The company's failure to adapt to digital photography led to the collapse of its core business, struggling against competitors like Canon, Sony, and Nikon [8] - After filing for bankruptcy in 2012, Kodak emerged in 2013 but has not regained its former market dominance, shifting focus to commercial printing and technology [11]

Core Viewpoint - Kodak has warned investors about its potential inability to sustain operations long-term, leading to a nearly 7% drop in stock price following the announcement of its financial results, which highlighted significant doubts about the company's viability due to a lack of financing options and upcoming debt obligations of approximately $500 million [1]. Financial Performance - In Q2, Kodak reported revenue of $263 million, a slight decline from $267 million in the same period last year. The company incurred a loss of $0.36 per share, compared to a profit of $0.23 per share in the previous year [1]. - To raise cash, Kodak plans to terminate pension payments [1]. Historical Context - Founded in 1892, Kodak's history dates back to 1879 when George Eastman patented the first coating machine. The first Kodak camera was launched in 1888, aimed at making photography accessible to the general public [2]. - Kodak dominated the film market in the 20th century, achieving a market share of 90% in the U.S. film market and 85% in the camera market during the 1970s [2]. Technological Disruption - Kodak's strong market position was ultimately disrupted by its own invention of the first digital camera in 1975, which it failed to capitalize on [3]. Bankruptcy and Recovery Attempts - Kodak filed for bankruptcy protection in 2012, with total debts reaching $6.75 billion and around 100,000 creditors [4]. - In 2020, Kodak experienced a brief resurgence when the U.S. government designated it to produce pharmaceutical ingredients, leading to a significant spike in stock price [5]. Despite ongoing losses, Kodak aims to expand its pharmaceutical business while continuing to supply film and chemicals to the movie industry [5].

Core Viewpoint - Eastman Kodak's shares dropped 25% after the company warned it may face shutdown due to lack of financial support, with $500 million in upcoming debt obligations and no committed financing or liquidity [1][7]. Financial Situation - Kodak is attempting to secure cash by suspending payments to its retirement pension plan and aims to clarify its debt obligations within the week [2]. - The company reported it does not have "committed financing or available liquidity" to meet its financial obligations [1][7]. Historical Context - Kodak, a pioneer in photography, introduced the first digital camera in 1975 but failed to adapt to new technologies, leading to bankruptcy in 2012 with debts of $6.75 billion [3]. - The company was once dominant in the market, controlling 90% of film and 85% of camera sales in the US by the 1970s [9]. Business Strategy - Kodak has shifted focus to industrial printing and selling branded products, such as a Barbie-themed mini photo printer, in response to its financial challenges [4].

Group 1 - Kodak's stock plummeted over 19%, closing at $5.49, marking a new low in over two months [1] - The company reported Q2 revenue of $263 million, a slight decline from $267 million in the same period last year [1] - Kodak posted a loss of $0.36 per share, compared to a profit of $0.23 per share in the previous year [1] - There are significant doubts regarding Kodak's ability to successfully execute key financing measures to continue operations [1]

柯达(KODK.US)夜盘跌超8.5%，报6.2美元。消息面上，柯达公布，第二季度营收为2.63亿美元，较去 年同期的2.67亿美元略有下滑；每股亏损0.36美元，而去年同期录得每股盈利0.23美元。公司称对其能 否成功执行关键的融资措施而继续经营存在重大疑虑。公司披露，满足即将到来的债务和优先股义务的 计划依赖于预期从美国柯达退休收入计划中回拨的多余资金，以及对剩余义务进行的修订、延长或再融 资，该等行动并不完全在其控制之内。(格隆汇) ...

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $263 million, compared to $267 million in Q2 2024, reflecting a decline of $4 million or 1% year-over-year [8][24] - Gross profit decreased by $7 million or 12% year-over-year, with a gross profit percentage of 19% in Q2 2025 compared to 22% in Q2 2024 [10][25] - The company reported a net loss of $26 million for Q2 2025, compared to net income of $26 million in the prior year quarter, a decrease of $52 million [26] - Operational EBITDA for Q2 2025 was $9 million, down from $12 million in Q2 2024, a decline of $3 million [27] Business Line Data and Key Metrics Changes - The Advanced Materials and Chemicals (AMC) business continued to show revenue growth, indicating successful investments in this area [9][24] - The commercial print business remains the largest segment, with ongoing improvements in efficiency and product acceptance [13] Market Data and Key Metrics Changes - Year-to-date tariffs did not have a material impact on the business, and the company supports tariffs that benefit U.S. manufacturers [12] - The company continues to focus on U.S. manufacturing, with key production facilities located in Rochester, New York [11] Company Strategy and Development Direction - The company is focused on deleveraging its business and strengthening its balance sheet while investing in growth areas [7][35] - Kodak's CGMP pharmaceutical manufacturing facility is now registered with the FDA, allowing it to manufacture and sell regulated pharmaceutical products [15][36] - The company plans to use excess assets from the pension plan termination to pay down debt and reduce interest costs [20][37] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the global business environment, including tariffs and logistics challenges, but remains committed to executing the long-term plan [7][35] - The company expects to continue investing in profitable growth businesses despite the challenges [36] Other Important Information - The termination and reversion process for the U.S. Kodak Retirement Income Plan (CRIP) is proceeding as planned, with an estimated $500 million in pension assets expected to revert to the company [18][20] - The Series C preferred stock was exchanged for common stock, eliminating the outstanding amount of $100 million in Series C preferred stock [19] Summary of Q&A Session - There was no formal Q&A session during the call, but the management team encouraged follow-up questions through the Investor Relations team [5]

Second Quarter 2025 Earnings Call August 11, 2025 Cautionary Statement Regarding Forward-looking Statements Pursuant to Safe Harbor Provisions of The Private Securities Litigation Reform Act of 1995 Cautionary Statement Regarding Forward-Looking Statements This presentation includes "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning Kodak's plans, objectives, goals, strategies, future event ...

[Part I: Financial Information](index=3&type=section&id=Part%20I.%E2%80%94Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported a net loss for Q2 and H1 2025, driven by revenue and gross profit declines, with debt maturities raising going concern doubts [Consolidated Statement of Operations](index=3&type=section&id=Consolidated%20Statement%20of%20Operations%20(Unaudited)) Consolidated Statement of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $263 | $267 | $510 | $516 | | **Gross profit** | $51 | $58 | $97 | $107 | | **(Loss) earnings from operations** | $(5) | $2 | $(18) | $9 | | **NET (LOSS) EARNINGS** | $(26) | $26 | $(33) | $58 | | **Diluted net (loss) earnings per share** | $(0.36) | $0.23 | $(0.48) | $0.52 | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20(Unaudited)) Consolidated Statement of Financial Position Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $155 | $201 | | **Total current assets** | $574 | $595 | | **TOTAL ASSETS** | $1,933 | $2,001 | | **Total current liabilities** | $729 | $261 | | **TOTAL LIABILITIES** | $1,183 | $1,142 | | **Total shareholders' equity** | $528 | $641 | [Consolidated Statement of Cash Flows](index=6&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%20(Unaudited)) Consolidated Statement of Cash Flows Highlights (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(30) | $10 | | **Net cash used in investing activities** | $(19) | $(2) | | **Net cash used in financing activities** | $(4) | $(20) | | **Net decrease in cash, cash equivalents and restricted cash** | $(48) | $(17) | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements%20(Unaudited)) - The company's financial statements have been prepared on a going concern basis, but conditions exist that raise **substantial doubt about its ability to continue as a going concern** due to debt maturing within twelve months for which the company does not have committed financing[28](index=28&type=chunk)[29](index=29&type=chunk) - As of June 30, 2025, the company has Term Loans with a carrying value of approximately **$477 million** and Series B Preferred Stock of **$99 million**, both of which have accelerated maturity dates in **May 2026**[26](index=26&type=chunk) - In Q2 2025, Kodak recorded a **$17 million impairment charge** on its investment in Wildcat Discovery Technologies, Inc. due to strategic alternatives being considered by Wildcat[109](index=109&type=chunk) - As a subsequent event, on **August 8, 2025**, the company **exchanged all outstanding shares of its Series C Preferred Stock for 15,103,163 shares of common stock**, **fully discharging its obligations** related to the Series C Preferred Stock[154](index=154&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 1% revenue decline in Q2 and H1 2025, driven by Print segment weakness, offset by Advanced Materials growth, while addressing liquidity and going concern doubts [Executive Overview](index=38&type=section&id=EXECUTIVE%20OVERVIEW) - Consolidated revenues for Q2 and H1 2025 **decreased by 1%** compared to the same periods in 2024, amounting to **$263 million** and **$510 million**, respectively[162](index=162&type=chunk) - The **Print segment's revenues declined by 4% in Q2 and 7% in H1 2025**, while the **Advanced Materials and Chemicals segment's revenues grew by 3% in Q2 and 13% in H1 2025**[163](index=163&type=chunk) - Kodak has successfully petitioned the U.S. government for **anti-dumping and countervailing duties** on unfairly traded imports of printing plates from China and Japan to combat increasing competition[173](index=173&type=chunk) - Strategic growth initiatives include **developing materials for EV batteries**, **manufacturing diagnostic test reagents**, and **commercializing proprietary technologies for light-blocking fabrics and transparent antennas**[182](index=182&type=chunk) [Results of Operations](index=45&type=section&id=RESULTS%20OF%20OPERATIONS) Overall Results of Operations (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $263 | $267 | $510 | $516 | | **Gross Profit** | $51 | $58 | $97 | $107 | | **NET (LOSS) EARNINGS** | $(26) | $26 | $(33) | $58 | - Gross profit **declined by $7 million in Q2 and $10 million in H1 2025**, primarily due to higher aluminum costs, lower volumes, and increased manufacturing costs[186](index=186&type=chunk)[187](index=187&type=chunk) Segment Operational EBITDA (in millions) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Print** | $(4) | $0 | $(13) | $0 | | **Advanced Materials and Chemicals** | $8 | $8 | $15 | $9 | | **Brand** | $5 | $4 | $9 | $7 | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) - The company's cash balance **decreased by $46 million** since year-end 2024 to **$155 million** as of June 30, 2025[217](index=217&type=chunk) - Kodak has **substantial doubt about its ability to continue as a going concern** because it has debt maturing within twelve months and does not have committed financing or available liquidity to meet these obligations[225](index=225&type=chunk) - The company's plan to fund its obligations is **dependent on receiving sufficient proceeds from the termination of the Kodak Retirement Income Plan (KRIP)**, which is expected to provide net proceeds of **approximately $500 million** after taxes and funding a replacement plan[226](index=226&type=chunk)[235](index=235&type=chunk) - On **August 8, 2025**, the company **exchanged all outstanding Series C Preferred Stock (carrying value of $123 million) for common stock**, **fully discharging this obligation**[249](index=249&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, primarily foreign currency exchange rate fluctuations, due to its global operations - Due to its global operations, Kodak is **exposed to market risks**, primarily from **fluctuations in foreign currency exchange rates**, which can impact sales and net income[254](index=254&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls were effective as of June 30, 2025, with no material changes to internal controls over financial reporting identified - Management concluded that the company's **disclosure controls and procedures were effective** as of the end of the period covered by the report[255](index=255&type=chunk) - **No changes in internal control over financial reporting** that materially affected, or are reasonably likely to materially affect, the company's internal controls were identified during the most recently completed fiscal quarter[257](index=257&type=chunk) [Part II: Other Information](index=59&type=section&id=Part%20II.%20%E2%80%94Other%20Information) [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing legal proceedings, including tax litigation in Brazil and patent infringement claims from FUJIFILM, which are not expected to have a material adverse effect - The company is involved in **various litigation matters in Brazil related to taxes** and is also defending **patent infringement claims brought by FUJIFILM Corporation concerning its SONORA process-free plates**[82](index=82&type=chunk)[84](index=84&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) The company highlights a new risk: an investor's voting power increased to 15.7% after the Series C Preferred Stock exchange, potentially increasing their influence over company actions - As a result of the Series C Preferred Stock Exchange, an investor's **voting power increased to 15.7%**, which may allow for **greater influence on future company actions** that require shareholder approval[262](index=262&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales but repurchased 79,916 shares at an average of $6.45 per share to satisfy tax withholding obligations for employee restricted stock units - There were **no unregistered sales of equity securities** during the quarter ended June 30, 2025[263](index=263&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1-30, 2025 | 5,910 | $6.50 | | May 1-31, 2025 | 71,001 | $6.47 | | June 1-30, 2025 | 3,005 | $5.81 | | **Total** | **79,916** | **$6.45** | [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) On August 8, 2025, the company exchanged all Series C Preferred Stock for 15.1 million common shares, fully discharging obligations and granting the investor board nomination rights - On **August 8, 2025**, the company **exchanged all outstanding Series C Preferred Stock for 15,103,163 shares of common stock**, based on an exchange price of **$8.25 per share**[267](index=267&type=chunk)[268](index=268&type=chunk) - The agreement grants the investor the **right to nominate one member to the Board of Directors** as long as the investor holds **at least 10% of the company's outstanding common stock**[270](index=270&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section indexes all exhibits filed with the 10-Q report, including corporate governance documents, the Series C Preferred Stock Exchange Agreement, and CEO/CFO certifications - Key exhibits filed with this report include the **Series C Preferred Stock Exchange Agreement (Exhibit 4.1)** and the **Amended and Restated Registration Rights Agreement (Exhibit 4.2)**, both dated **August 8, 2025**[278](index=278&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Kodak reported a decrease in consolidated revenues, gross profit, and a significant GAAP net loss in Q2 2025 compared to Q2 2024, alongside a decline in Operational EBITDA and cash balance | Metric | Q2 2025 | Q2 2024 | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Consolidated Revenues | $263M | $267M | $(4)M | (1)% | | Gross Profit | $51M | $58M | $(7)M | (12)% | | Gross Profit Percentage | 19% | 22% | (3) ppts | - | | GAAP Net Loss (Income) | $(26)M | $26M | $(52)M | (200)% | | Operational EBITDA | $9M | $12M | $(3)M | (25)% | | Quarter-end Cash Balance | $155M | $201M (Dec 31, 2024) | $(46)M | - | | Cash Flow from Operations | - | - | Decreased by $40M | - | [Management Commentary & Strategic Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Strategic%20Outlook) Management acknowledged an uncertain business environment but highlighted progress on long-term plans, particularly the growth of the Advanced Materials & Chemicals (AM&C) business, including FDA registration for its cGMP pharmaceutical manufacturing facility. The company is assessing the impact of new tariffs and remains committed to U.S. manufacturing, while also focusing on improving operational efficiency, strengthening the balance sheet, and managing debt and pension obligations - Continued progress against long-term plan despite uncertain business environment[1](index=1&type=chunk) - Accelerating growth of Advanced Materials & Chemicals (AM&C) business[1](index=1&type=chunk) - AM&C group's cGMP pharmaceutical manufacturing facility is now FDA registered and certified to manufacture and sell regulated pharmaceutical products, expanding current unregulated business[1](index=1&type=chunk)[3](index=3&type=chunk) - Facility will begin manufacturing phosphate buffered saline (PBS) and aims for more sophisticated specialty products like injectable IV saline[3](index=3&type=chunk) - Commitment to U.S. manufacturing, producing lithographic printing plates, photographic/industrial films, inkjet presses/inks, and pharmaceutical key starting ingredients[1](index=1&type=chunk) - Assessing potential impact of new tariffs, expecting them to protect American businesses[1](index=1&type=chunk) - Focus on serving customers, strengthening the balance sheet, and developing growth businesses for the balance of the year[3](index=3&type=chunk) - Improving operational efficiency and investing in growth initiatives in the AM&C group[3](index=3&type=chunk) - Reducing costs and converting investments into long-term growth for the second half of the year[3](index=3&type=chunk) - Progressing with the termination of the U.S. Kodak Retirement Income Plan (KRIP) and reversion of excess funds to pay down debt, with completion anticipated by December 2025[3](index=3&type=chunk)[6](index=6&type=chunk) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Consolidated revenues for Q2 2025 decreased by 1% year-over-year to $263 million. After adjusting for a favorable foreign exchange impact of $5 million, the decrease was 3% or $9 million | Metric | Q2 2025 | Q2 2024 | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $263M | $267M | $(4)M | (1)% | | Favorable FX Impact | $5M | - | - | - | | Revenues (Constant Currency) | - | - | $(9)M | (3)% | [Profitability Analysis](index=1&type=section&id=Profitability%20Analysis) Kodak experienced a significant decline in profitability, moving from a net income of $26 million in Q2 2024 to a net loss of $26 million in Q2 2025, a 200% decrease. Operational EBITDA also fell by 25% to $9 million, primarily due to lower volumes and higher aluminum and manufacturing costs, partially offset by price increases and reduced IT/organizational investments | Metric | Q2 2025 | Q2 2024 | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | GAAP Net (Loss) Income | $(26)M | $26M | $(52)M | (200)% | | Operational EBITDA | $9M | $12M | $(3)M | (25)% | | Operational EBITDA (Constant Currency) | $8M | $12M | $(4)M | (33)% | | Gross Profit | $51M | $58M | $(7)M | (12)% | | Gross Profit Percentage | 19% | 22% | (3) ppts | - | - Decrease in Operational EBITDA primarily driven by lower volumes and higher aluminum and manufacturing costs[4](index=4&type=chunk) - Partially offset by price increases and lower spend on investments in information technology systems, organizational structure, and costs associated with trade shows[4](index=4&type=chunk) [Cash Flow and Liquidity](index=1&type=section&id=Cash%20Flow%20and%20Liquidity) Kodak's cash balance decreased by $46 million from December 31, 2024, to $155 million at the end of Q2 2025. This decline was mainly driven by capital expenditures for growth initiatives, changes in working capital, and the impact of higher costs and lower operational profitability. Cash flow from operations decreased by $40 million year-over-year | Metric | June 30, 2025 | Dec 31, 2024 | Change ($M) | | :--- | :--- | :--- | :--- | | Quarter-end Cash Balance | $155M | $201M | $(46)M | - Cash flow from operations decreased by **$40 million** from the prior-year period[2](index=2&type=chunk)[5](index=5&type=chunk) - Decrease in cash balance primarily driven by capital expenditures to fund growth initiatives, changes in working capital, and the impact of higher costs and lower profitability from operations[2](index=2&type=chunk)[5](index=5&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance) [Revenue by Segment](index=4&type=section&id=Revenue%20by%20Segment) In Q2 2025, Print segment revenue decreased by $8 million (or $13 million on a constant currency basis) compared to Q2 2024. Conversely, Advanced Materials & Chemicals (AM&C) and Brand segments both saw revenue increases of $2 million each | Segment | Q2 2025 Revenue ($M) | Q2 2024 Revenue ($M) | Change ($M) | Change (Constant Currency, $M) | | :--- | :--- | :--- | :--- | :--- | | Print | $178 | $186 | $(8) | $(13) | | Advanced Materials & Chemicals | $75 | $73 | $2 | $2 | | Brand | $6 | $4 | $2 | $2 | | Total | $259 | $263 | $(4) | $(9) | [Operational EBITDA by Segment](index=4&type=section&id=Operational%20EBITDA%20by%20Segment) The Print segment's Operational EBITDA declined by $4 million in Q2 2025 compared to Q2 2024, resulting in a loss of $4 million. The Advanced Materials & Chemicals segment maintained its Operational EBITDA at $8 million, while the Brand segment saw a $1 million increase to $5 million | Segment | Q2 2025 Operational EBITDA ($M) | Q2 2024 Operational EBITDA ($M) | Change ($M) | Change (Constant Currency, $M) | | :--- | :--- | :--- | :--- | :--- | | Print | $(4) | $0 | $(4) | $(4) | | Advanced Materials & Chemicals | $8 | $8 | $0 | $(1) | | Brand | $5 | $4 | $1 | $1 | | Total | $9 | $12 | $(3) | $(4) | [Operational Developments](index=1&type=section&id=Operational%20Developments) [Advanced Materials & Chemicals (AM&C) Expansion](index=1&type=section&id=Advanced%20Materials%20%26%20Chemicals%20(AM%26C)%20Expansion) Kodak's AM&C group's cGMP pharmaceutical manufacturing facility has achieved FDA registration and certification, enabling it to manufacture and sell regulated pharmaceutical products. This expands its existing business in unregulated pharmaceutical products, with initial operations focused on phosphate buffered saline (PBS) and future plans for more complex specialty products like injectable IV saline - cGMP pharmaceutical manufacturing facility is now registered with the FDA and certified to manufacture and sell regulated pharmaceutical products[1](index=1&type=chunk)[3](index=3&type=chunk) - This expands the current business in unregulated pharmaceutical products[1](index=1&type=chunk)[3](index=3&type=chunk) - The facility will begin operation manufacturing phosphate buffered saline (PBS) for laboratory use[3](index=3&type=chunk) - Future plans include manufacturing more sophisticated specialty products, such as injectable IV saline[3](index=3&type=chunk) [U.S. Manufacturing and Tariffs](index=1&type=section&id=U.S.%20Manufacturing%20and%20Tariffs) Kodak is committed to U.S. manufacturing, producing a wide range of products domestically, including lithographic printing plates, photographic and industrial films, inkjet presses and inks, and pharmaceutical key starting ingredients. The company is currently assessing the potential impact of new tariffs, anticipating they are designed to protect American businesses like theirs - Kodak is committed to U.S. manufacturing[1](index=1&type=chunk) - Manufactures a wide range of products in the U.S., including lithographic printing plates, photographic and industrial films, inkjet presses and inks, and pharmaceutical key starting ingredients[1](index=1&type=chunk) - Assessing the potential impact of new tariffs going forward[1](index=1&type=chunk) - Expects tariffs instituted by the U.S. government are designed to protect American businesses[1](index=1&type=chunk) [Debt and Pension Management](index=2&type=section&id=Debt%20and%20Pension%20Management) Kodak is actively progressing with the termination of its U.S. Kodak Retirement Income Plan (KRIP) and expects to use the reversion of excess funds to reduce term debt. The company anticipates a clear understanding of participant obligations by August 15 and completion of the reversion by December 2025. These plans are crucial for funding preferred stock and debt obligations - Termination of U.S. Kodak Retirement Income Plan (KRIP) and subsequent reversion of excess funds to pay down debt is progressing as planned[6](index=6&type=chunk)[7](index=7&type=chunk) - Expects to have a clear understanding of how to satisfy obligations to all plan participants by August 15[6](index=6&type=chunk)[7](index=7&type=chunk) - Anticipates completing the reversion by December 2025[6](index=6&type=chunk)[7](index=7&type=chunk) - Proceeds from KRIP reversion are planned to reduce term debt and to amend, extend or refinance remaining debt and preferred stock obligations[6](index=6&type=chunk)[7](index=7&type=chunk) [Going Concern Disclosure](index=3&type=section&id=Going%20Concern%20Disclosure) Kodak has included a going concern disclosure in its Q2 2025 Form 10-Q. The company's plans to fund its preferred stock and debt obligations, primarily through proceeds from the expected reversion of cash from the Kodak Retirement Income Plan and refinancing efforts, are not solely within its control and thus not deemed "probable" under U.S. GAAP. Consequently, these conditions raise substantial doubt about Kodak's ability to continue as a going concern - Kodak included a disclosure regarding its going concern assessment in its Q2 2025 Form 10-Q filing[7](index=7&type=chunk) - Plans to fund preferred stock and debt obligations rely on proceeds from the expected reversion of cash from the Kodak Retirement Income Plan and amending, extending, or refinancing remaining debt and preferred stock[7](index=7&type=chunk) - These plans are not solely within Kodak's control and are not deemed "probable" under U.S. GAAP accounting rules[7](index=7&type=chunk) - These conditions raise substantial doubt about the Company's ability to continue as a going concern as of the issuance date of the Q2 financials[7](index=7&type=chunk) [About Eastman Kodak Company](index=4&type=section&id=About%20Eastman%20Kodak%20Company) Eastman Kodak Company is a global manufacturer specializing in commercial print and advanced materials & chemicals. Leveraging over 130 years of R&D and 79,000 patents, Kodak focuses on technology and science to deliver innovative, award-winning products and sustainable solutions for commercial printers worldwide, emphasizing a customer-first approach and environmental stewardship - Leading global manufacturer focused on commercial print and advanced materials & chemicals[11](index=11&type=chunk) - Holds **79,000 worldwide patents** earned over **130 years of R&D**[11](index=11&type=chunk) - Committed to environmental stewardship, including industry leadership in developing sustainable solutions for print[11](index=11&type=chunk) - Offers innovative, award-winning products combined with a customer-first approach[11](index=11&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section defines forward-looking statements as per the Private Securities Litigation Reform Act of 1995, outlining that such statements concern Kodak's future plans, objectives, and financial performance, and are based on current expectations and assumptions. It details important factors, including financial performance, strategic objectives, financing, foreign exchange rates, commodity prices, tariffs, global economic environment, competition, supply chain, compliance, technology trends (including AI), strategic transactions, legal claims, and force majeure events, that could cause actual results to differ materially from these statements. Kodak disclaims any obligation to update these statements unless required by law - Defines "forward-looking statements" as per the Private Securities Litigation Reform Act of 1995, covering future plans, objectives, goals, strategies, revenue, performance, capital expenditures, liquidity, investments, financing needs, and business trends[13](index=13&type=chunk)[14](index=14&type=chunk) - Identifies common forward-looking terms like "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "predicts," "forecasts," "strategy," "continues," "goals," "targets," and future/conditional verbs[13](index=13&type=chunk)[14](index=14&type=chunk) - States that all forward-looking statements are based on Kodak's current expectations and assumptions[13](index=13&type=chunk)[14](index=14&type=chunk) - Lists important factors that could cause actual results to differ materially, including: ability to improve and sustain operating structure, cash flow, profitability; ability to achieve strategic objectives, cash forecasts, financial projections; ability to obtain additional financing and manage worldwide cash; receipt of projected reversion proceeds from KRIP liquidation; ability to fund investments, capital needs, and service debt/preferred stock; changes in foreign currency exchange rates, commodity prices, interest rates, and tariff rates; impact of global economic environment (inflation, geopolitical issues, trade policies, raw material costs, supply chain disruptions); ability to compete with well-financed industry participants or lower-cost competitors; performance of third-party suppliers and ability to address supply chain disruptions; ability to comply with credit facility covenants; ability to anticipate technology and industry trends (including AI) and develop new products; ability to effect strategic transactions and achieve benefits; ability to manage and resolve current and legacy claims; ability to discontinue, sell, or spin-off non-core businesses or monetize assets; and potential impact of force majeure events, cyber-attacks, or IT outages[15](index=15&type=chunk)[16](index=16&type=chunk) - Kodak undertakes no obligation to update or revise forward-looking statements, except as required by law[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) [Operational EBITDA Definition and Reconciliation](index=6&type=section&id=Operational%20EBITDA%20Definition%20and%20Reconciliation) Kodak uses non-GAAP financial measures, specifically Operational EBITDA and constant currency revenues/Operational EBITDA, to provide investors with insights into its underlying performance. Operational EBITDA is defined as earnings from continuing operations excluding various non-operating and non-cash items. The reconciliation shows a decrease in Operational EBITDA from $12 million in Q2 2024 to $9 million in Q2 2025, further decreasing to $8 million on a constant currency basis - Non-GAAP Measures Used: Operational EBITDA; Revenues and Operational EBITDA on a constant currency basis[18](index=18&type=chunk) - Purpose: To provide investors with the same financial data management uses to assess underlying performance, financial condition, results of operations, and cash flow[19](index=19&type=chunk) - Operational EBITDA Definition: Represents (loss) earnings from continuing operations excluding: provision for income taxes; non-service cost components of pension and other postemployment benefits income; depreciation and amortization expense; restructuring costs and other; consulting and other costs; stock-based compensation expense; idle costs; other operating expense; interest expense; and other charges, net[20](index=20&type=chunk) - Constant Currency Calculation: Uses average foreign exchange rates for the three months ended June 30, 2024, instead of actual average rates for Q2 2025[21](index=21&type=chunk) | (in millions) | Q2 2025 | Q2 2024 | $Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net (Loss) Income | $(26) | $26 | $(52) | (200)% | | *Adjustments:* | | | | | | Depreciation and amortization | 7 | 6 | 1 | | | Restructuring costs and other | 6 | — | 6 | | | Stock based compensation | 1 | 1 | — | | | Consulting and other costs | (1) | 1 | (2) | | | Idle costs | 1 | 1 | — | | | Other operating expense, net | — | 1 | (1) | | | Interest expense | 15 | 15 | — | | | Pension income excluding service cost component | (16) | (41) | 25 | | | Other charges, net | 20 | 1 | 19 | | | Provision for income taxes | 2 | 1 | 1 | | | **Operational EBITDA** | **$9** | **$12** | **$(3)** | **(25)%** | | Impact of foreign exchange | (1) | — | (1) | | | **Operational EBITDA on a constant currency basis** | **$8** | **$12** | **$(4)** | **(33)%** | [Unaudited Financial Statements](index=8&type=section&id=Unaudited%20Financial%20Statements) [Consolidated Statement of Operations](index=8&type=section&id=Consolidated%20Statement%20of%20Operations) The Consolidated Statement of Operations shows a total revenue of $263 million for Q2 2025, down from $267 million in Q2 2024. The company reported a net loss of $26 million in Q2 2025, a significant decline from a net income of $26 million in the prior-year quarter | (in millions, except per share data) | 2025 | 2024 | | :--- | :--- | :--- | | **Revenues** | | | | Sales | $226 | $227 | | Services | $37 | $40 | | **Total revenues** | **$263** | **$267** | | **Gross profit** | **$51** | **$58** | | (Loss) earnings from operations before interest expense, pension income excluding service cost component, other charges, net and income taxes | $(5) | $2 | | (Loss) earnings from operations before income taxes | $(24) | $27 | | **NET (LOSS) EARNINGS** | **$(26)** | **$26** | | Basic net (loss) earnings per share | $(0.36) | $0.25 | | Diluted net (loss) earnings per share | $(0.36) | $0.23 | [Consolidated Statement of Financial Position](index=9&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, Kodak's total assets were $1,933 million, a decrease from $2,001 million at December 31, 2024. Key changes include a decrease in cash and cash equivalents, an increase in inventories, and a significant increase in short-term borrowings and current portion of long-term debt from $1 million to $479 million, while long-term debt decreased from $466 million to $11 million. Total liabilities increased, and total shareholders' equity decreased | (in millions, except per share data) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $155 | $201 | | Inventories, net | $238 | $219 | | Total current assets | $574 | $595 | | Total assets | $1,933 | $2,001 | | **LIABILITIES & EQUITY** | | | | Short-term borrowings and current portion of long-term debt | $479 | $1 | | Total current liabilities | $729 | $261 | | Long-term debt, net of current portion | $11 | $466 | | Total liabilities | $1,183 | $1,142 | | Redeemable, convertible preferred stock | $222 | $218 | | Total shareholders' equity | $528 | $641 | [Consolidated Statement of Cash Flows](index=10&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, Kodak reported net cash used in operating activities of $30 million, a significant shift from $10 million provided in the prior-year period. Net cash used in investing activities increased to $19 million, and net cash used in financing activities decreased to $4 million. Overall, there was a net decrease in cash, cash equivalents, and restricted cash of $48 million | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net (loss) earnings | $(33) | $58 | | Net cash (used in) provided by operating activities | $(30) | $10 | | Net cash used in investing activities | $(19) | $(2) | | Net cash used in financing activities | $(4) | $(20) | | Net decrease in cash, cash equivalents and restricted cash | $(48) | $(17) | | Cash, cash equivalents and restricted cash, end of period | $253 | $360 |