• Revenue increased to $7.05 million, from $6.85 million. • Gross profit grew 18% to $4.5 million, from $3.8 million. • Gross margin improved to 63.3%, a 10-year record, from 55.3%. • Net income increased to $4.2 million, from $0.8 million. • Non-GAAP net income increased to $5.24 million, from $1.35 million. • Cash and cash equivalents increased to $17.1 million, up from $3.2 million at end of 2024. • Working capital improved to $38.9 million, up from $22.5 million at end of 2024. • Book Value of Equity in ...

Financial Data and Key Metrics Changes - Revenue increased to $7.05 million from $6.85 million, driven by new contract wins and expansion across U.S. and European programs [24] - Gross profit rose to $4.46 million, a 17.8% increase from $3.79 million in the same period last year [24] - Gross margin improved significantly to 63.6% compared to 55.3% [25] - Operating income doubled year over year to $1.22 million, with operating margin improving to 17.3% from 10.5% [25] - GAAP net income was $4.23 million, a substantial improvement from $0.8 million last year [25] - Non-GAAP net income totaled $5.24 million, up from $1.35 million [26] - EBITDA for the quarter reached $2.5 million, representing a 25% year-over-year increase [26] - Cash and cash equivalents increased to $17.1 million from $3.2 million at year-end 2024 [27] Business Line Data and Key Metrics Changes - The company has secured over 70 multiyear government projects since 2018, with more than 20 new contracts added in the past year [9] - The introduction of new products like Pure Protect and Pure One has expanded the addressable market [12] - The company has seen significant growth in the electronic monitoring market, projected to reach around $2.3 billion by 2028 [8] Market Data and Key Metrics Changes - The U.S. market is projected to grow to six times the size of the European market in the coming years [17] - The company has entered eight new U.S. states and formed five new strategic partnerships with regional service providers [18] - The company is actively expanding into new states, including Utah, Kentucky, and Alabama [19] Company Strategy and Development Direction - The company focuses on three strategic pillars: innovative technology, expanding global presence, and delivering outstanding service [6] - The company aims to revolutionize public safety through cutting-edge electronic monitoring technology and data-driven solutions [5] - The company is evaluating strategic acquisition opportunities in the U.S. market to enhance vertical integration [22] Management's Comments on Operating Environment and Future Outlook - Management emphasized the long-term nature of government contracts and the importance of tracking key indicators for understanding progress [5][28] - The company is well-positioned to lead as governments seek smarter, more humane, and cost-effective alternatives to incarceration [28] - Despite macroeconomic uncertainties, the company's solutions are increasingly relevant due to high recidivism rates and the escalating cost of incarceration [21] Other Important Information - The company has invested over $40 million in technology platforms, achieving a win rate of approximately 65% in competitive tenders, particularly in Europe [7] - The company has established a centralized system on the cloud, improving operational efficiency and lowering costs compared to Europe [20] Q&A Session Summary Question: Can you touch on where your R&D is at this point? - The company is integrating AI to improve GPS solutions and battery life, enhancing reliability and performance [31][32] Question: How is the U.S. opportunity shaping up? - The U.S. market is fragmented, and the company is focused on planting seeds in various locations to expand its presence [33][35] Question: Is there a risk regarding the political atmosphere in Romania? - The program in Romania is going well and is supported by major parties, with EU mandates ensuring its continuation [43][44] Question: What percentage of opportunities does the company see working through resellers versus direct? - The company typically partners with local providers in Europe, while in the U.S., it is expanding both directly and through value-added resellers [50][52] Question: What are the plans for the cash balance? - The cash balance will be used for working capital increases and potential acquisitions to support strategic growth [62]

Financial Data and Key Metrics Changes - Revenue increased to $7,050,000 from $6,850,000, driven by new contract wins and expansion across U.S. and European programs [24] - Gross profit rose to $4,460,000, a 17.8% increase from $3,790,000 in the same period last year [24] - Gross margin improved significantly to 63.6% compared to 55.3% [25] - Operating income doubled year over year to $1,220,000, with operating margin improving to 17.3% from 10.5% [25] - GAAP net income was $4,230,000, a substantial improvement from $800,000 last year [25] - Non-GAAP net income totaled $5,240,000, up from $1,350,000 [26] - EBITDA for the quarter reached $2,500,000, representing a 25% year-over-year increase [26] - Cash and cash equivalents increased to $17,100,000 from $3,200,000 at year-end 2024 [27] Business Line Data and Key Metrics Changes - The company has secured over 70 multiyear government projects since 2018, with more than 20 new contracts added in the past year across North America [9][18] - The introduction of new products like Pure Protect and Pure One has expanded the addressable market and supported deeper penetration into existing geographies [12][17] Market Data and Key Metrics Changes - The electronic monitoring market is projected to reach around $2,300,000,000 by 2028, with the U.S. and Europe accounting for roughly 95% of this market [8][17] - The U.S. market is expected to grow to six times the size of the European market in the coming years [17] Company Strategy and Development Direction - The company focuses on three strategic pillars: innovative technology, expanding global presence, and delivering outstanding service [6][8] - The strategy includes significant R&D investments, with over $40,000,000 invested in technology platforms [7] - The company aims to lead in public safety through cutting-edge electronic monitoring technology and data-driven solutions [5] Management's Comments on Operating Environment and Future Outlook - Management emphasized the long-term nature of government contracts and the importance of tracking key indicators such as win rates and project mix [28] - Despite macroeconomic uncertainties, the company's solutions are increasingly relevant due to high recidivism rates and the escalating cost of incarceration [21] Other Important Information - The company has reduced long-term loans to $24,200,000 from $29,700,000 at year-end, reflecting a total reduction of over $10,000,000 year-over-year [26] - The company is evaluating strategic acquisition opportunities in the U.S. market to expand its footprint and enhance vertical integration [22][21] Q&A Session Summary Question: Can you touch on where your R&D is at this point? - The company is integrating AI to improve GPS solutions and battery life, enhancing reliability and performance compared to competitors [31][32] Question: How is the U.S. opportunity shaping up? - The U.S. market is fragmented, and the company is focused on planting seeds in various locations to expand its presence and grow projects over time [35][36] Question: Is there a risk regarding the political atmosphere in Romania? - The existing program in Romania is going well and is supported by major parties, with the EU mandating its implementation [42] Question: What percentage of opportunities do you see Supercom working through a reseller or service provider versus direct? - In the U.S., the company is familiar with the environment and works directly with many contracts, while also utilizing value-added resellers for additional services [49][50] Question: Do you have specific plans for the cash on the books? - The cash balance is intended for working capital increases and potential acquisitions to support strategic growth [60][61]

Core Insights - SuperCom reported strong financial results for Q1 2025, with revenue of $7.05 million, a gross profit of $4.5 million, and a record gross margin of 63.3% [1][4][6] - The company achieved a net income of $4.2 million, significantly up from $0.8 million in the same quarter of 2024, and a non-GAAP net income of $5.24 million [1][4][6] - SuperCom's cash and cash equivalents increased to $17.1 million, and working capital improved to $38.9 million, reflecting a solid financial foundation for future growth [4][6] Financial Highlights - Revenue increased by 2.9% from $6.85 million in Q1 2024 to $7.05 million in Q1 2025 [4] - Gross profit grew by 18% from $3.8 million to $4.5 million [4] - Gross margin improved from 55.3% to 63.3%, marking a 10-year record [4] - Non-GAAP net income rose from $1.35 million to $5.24 million [4] - Cash and cash equivalents increased from $3.2 million at the end of 2024 to $17.1 million [4] - Working capital improved from $22.5 million at the end of 2024 to $38.9 million [4] - Book Value of Equity increased from $11.7 million at the end of 2024 to $34.8 million [4] Business Developments - Since mid-2024, SuperCom secured over 20 new electronic monitoring contracts across the U.S., including entries into eight new states [4] - The company was awarded a national electronic monitoring contract by the Israel Prison Service, actively monitoring over 1,200 offenders [4] - New contracts were announced in various U.S. states, including Utah, Kentucky, and Arizona, as well as a partnership with a Canadian service provider [4][6] - SuperCom's technology saw over 200% growth in PureTrack™ GPS units as of January 2025, reflecting strong market demand [4] Management Commentary - The CEO highlighted the company's record-breaking success in Q1 2025, driven by strong project execution and strategic financial agreements [6] - The management emphasized the importance of disciplined execution and expanding the global footprint, with a focus on public safety and long-term value creation [7]

Company Overview - SuperCom is a global provider of secured solutions for e-Government, IoT, and Cybersecurity sectors, established in 1988 [3] - The company specializes in traditional and digital identity solutions, offering advanced safety, identification, and security solutions to both public and private organizations worldwide [3] - SuperCom's offerings include proprietary e-Government platforms, biometrics enrollment, personalization, issuance, and border control services [3] Upcoming Investor Conference - President and CEO Ordan Trabelsi will present a corporate overview and conduct one-on-one meetings with investors at the Sidoti Virtual Investor Conference on May 21-22, 2025 [1] - The presentation is scheduled to begin at 10:45 AM ET on May 21 and will be accessible live [2] - Investors can register for the presentation and one-on-one meetings for free, without needing to be a Sidoti client [2]

Core Insights - SuperCom has signed a new contract with a Canadian electronic monitoring service provider, marking a significant step in its North American expansion and enhancing its global presence in the electronic monitoring market [1][3] - The partnership will introduce SuperCom's PureSecurity™ Suite into the provider's operations, potentially replacing hundreds of existing GPS units with SuperCom's advanced tracking technologies [2][3] Company Developments - The Canadian service provider has over 25 years of experience in the electronic monitoring industry and manages GPS monitoring programs for various justice and public safety clients [2] - Since mid-2024, SuperCom has secured over 20 new electronic monitoring contracts in the U.S. and expanded into 8 new states, including Arizona, Kentucky, and Utah [3] - This partnership is the fourth regional service provider collaboration for SuperCom in the past year, indicating a robust growth strategy in North America [3] Market Position - SuperCom has also expanded internationally, achieving government contracts across Europe and the EMEA region, including a significant domestic violence project [3] - The company's technology is increasingly in demand, reflecting its ability to deliver effective public safety solutions globally [3]

Core Insights - SuperCom has secured a new electronic monitoring contract in Utah, marking its eighth entry into a U.S. state since mid-2024, awarded through a competitive Request for Bid process [1][2][3] - The contract will utilize SuperCom's advanced GPS tracking technology across various populations, generating recurring revenue and allowing for future service expansion [2][3] - The U.S. electronic monitoring market is projected to reach $2.3 billion by 2028, indicating significant growth potential for SuperCom [2] Company Overview - SuperCom has been a global provider of identity solutions since 1988, offering advanced safety and security solutions to both public and private sectors [4] - The company specializes in e-Government platforms, biometrics enrollment, and various security solutions, including electronic monitoring and domestic violence prevention [4]

Financial Data and Key Metrics Changes - Supercom achieved record revenue of $27.6 million in 2024, a 134% increase from the low of $11.8 million in 2020, marking a four-year growth trajectory [6][33] - Gross profit increased by 31% year-over-year to $13.4 million, with gross margin expanding to 48.4%, up nearly 10 percentage points from 2023 [7][33] - The company reported a GAAP net income of $661,000, a significant turnaround from a net loss of $4 million in 2023, marking its first full year of GAAP profitability since 2015 [7][34] - EBITDA rose to $6.3 million, reflecting a 31% year-over-year growth, marking the tenth consecutive quarter of positive EBITDA [7][35] - Operating cash flow usage reduced to $1.3 million in 2024, an 85% reduction over three years, indicating improved cash generation [8][36] Business Line Data and Key Metrics Changes - The U.S. market saw significant expansion with over 20 new contracts secured since mid-2024, diversifying revenue streams and supporting recurrent income [10][22] - The introduction of new products like PureProtect and PureOne has enhanced market penetration and increased addressable market [16][30] - The company has successfully integrated its tier one solutions across various regions, reflecting strong technical capabilities and customer reception [11][20] Market Data and Key Metrics Changes - The electronic monitoring market is projected to reach $2.3 billion by 2028, with the U.S. and Europe constituting about 95% of this market [14] - Supercom's revenues from developed countries increased to over 97% in 2024, compared to 89% from Africa in 2015, indicating a strategic shift towards IoT business in developed markets [41] Company Strategy and Development Direction - Supercom aims to revolutionize the public safety sector with proprietary electronic monitoring technology and advanced AI-driven analytics [12][14] - The strategic focus includes expanding the IoT tracking business in developed markets, enhancing technological leadership through R&D investments, and delivering outstanding service [13][14] - The company is actively pursuing strategic acquisitions of local electronic monitoring service providers to enhance market presence and achieve vertical integration [31][55] Management's Comments on Operating Environment and Future Outlook - Management highlighted the relevance of Supercom's solutions amid macroeconomic uncertainties, driven by higher recidivism rates and the escalating cost of incarceration [30][44] - The company anticipates continued expansion in the U.S. and Europe, capitalizing on the growing public policy shift towards monitoring instead of incarceration [45] - Management expressed confidence in the company's ability to leverage its strong balance sheet and positive net income to pursue larger projects and potential acquisitions [56] Other Important Information - Supercom's acquisition of LCA in 2016 has proven to be strategically valuable, generating over $35 million in new project wins in California [32] - The company has reduced its total outstanding debt by 32% since the end of 2023, strengthening its financial position [41][42] Q&A Session Summary Question: Can 40% gross margin be considered a floor? - Management indicated that while gross margins are influenced by various projects, they expect margins to improve as more monitoring devices are deployed in existing regions [46][47] Question: What are the next steps for the U.S. market? - Management confirmed ongoing contract signings and partnerships, with plans to grow project sizes over time, similar to the European market's trajectory [48][52][53] Question: Is there potential for consolidating partners in the U.S. market? - Management acknowledged opportunities for acquiring local value-added resellers, which could enhance market presence and profitability [54][55] Question: How is the company addressing recent tariff situations? - Management stated that manufacturing is primarily done in Israel, with some capabilities in the U.S., and they are monitoring tariff developments closely [59][61]

Financial Data and Key Metrics Changes - The company achieved record revenue of $27.6 million in 2024, a 134% increase from the revenue low in 2020, marking a four-year growth trajectory [6][33] - Gross profit increased by 31% year-over-year to $13.4 million, with gross margin expanding to 48.4%, up nearly 10 percentage points from 2023 [7][34] - The company reported a positive GAAP net income of $661,000, a significant turnaround from a net loss of $4 million in 2023, marking the first full year of GAAP profitability since 2015 [7][35] - EBITDA rose to $6.3 million, reflecting a 31% year-over-year growth, marking the tenth consecutive quarter of positive EBITDA [7][35] Business Line Data and Key Metrics Changes - The company has made consistent progress in improving operating cash flows, reducing cash usage from $9.4 million in 2021 to just $1.3 million in 2024, an 85% reduction over three years [8][36] - The U.S. market has seen significant expansion with over 20 new contracts secured since mid-2024, diversifying the revenue base and supporting recurrent income streams [10][26] Market Data and Key Metrics Changes - The electronic monitoring market is projected to reach $2.3 billion by 2028, with the U.S. and Europe constituting about 95% of these markets [14] - The company has successfully secured several large-scale contracts in Europe, including a notable $33 million project in Romania, designed to monitor up to 15,000 individuals simultaneously [19][20] Company Strategy and Development Direction - The company aims to revolutionize the public safety sector with proprietary electronic monitoring technology and advanced AI-driven analytics [11][12] - The strategic focus is on expanding the IoT tracking business in developed markets, with a strong emphasis on innovative technology and superior solutions [12][14] - The company plans to continue its expansion in the U.S. market, which presents a long-term opportunity estimated to be up to six times the size of the European market [21][22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the relevance of the company's solutions amid macroeconomic uncertainties, driven by higher recidivism rates and the escalating cost of incarceration [30] - The company is optimistic about continued growth in the U.S. and Europe, driven by a strong reputation and the countercyclical nature of the electronic monitoring industry [44][45] Other Important Information - The company has reduced total outstanding debt by 32% since the end of 2023, strengthening its financial position and enabling further strategic initiatives [41][42] - The company has transitioned from a legacy business model focused on identification in Africa to a more profitable IoT business model in developed countries, with over 97% of revenues now coming from these markets [40][41] Q&A Session Summary Question: Can the company consider 40% gross margin as a floor? - Management indicated that while gross margins are influenced by various projects, they expect margins to improve as more monitoring devices are deployed in existing regions [46][47] Question: What are the next steps for the U.S. market expansion? - The company plans to continue signing contracts and partnerships, focusing on increasing the size of projects over time, similar to its growth trajectory in Europe [48][52] Question: Is there potential for consolidation of partners in the U.S. market? - Management acknowledged opportunities for acquiring local value-added resellers, which could enhance market presence and profitability, especially with a stronger balance sheet [54][56] Question: How is the company addressing the recent tariff situation? - The company is currently manufacturing in Israel and has the capability to produce in the U.S., monitoring the evolving tariff situation closely [60][62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUAN ...