Core Viewpoint - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - Society Pass Incorporated (SOPA) has increased by 139% to $3.34 - Critical Metals Corp. (CRML) has risen by 79% to $14.30 - Sanmina Corporation (SANM) is up 26% at $144.61 - Palisade Bio, Inc. (PALI) has gained 25% to $2.00 - Advanced Micro Devices, Inc. (AMD) has increased by 24% to $205.07 - Odyssey Marine Exploration, Inc. (OMEX) is up 22% at $2.46 - Youxin Technology Ltd (YAAS) has risen by 21% to $3.14 - NioCorp Developments Ltd. (NB) is up 18% at $9.38 - Snow Lake Resources Ltd. (LITM) has increased by 14% to $5.66 - Plug Power Inc. (PLUG) is up 7% at $4.10 [3] Premarket Losers - Rich Sparkle Holdings Limited (ANPA) has decreased by 15% to $22.10 - CCH Holdings Ltd Ordinary Shares (CCHH) is down 15% at $3.73 - Xcel Brands, Inc. (XELB) has fallen by 14% to $2.04 - Quantum Computing Inc. (QUBT) is down 13% at $21.39 - Rent the Runway, Inc. (RENT) has decreased by 12% to $4.70 - MDJM Ltd (UOKA) is down 11% at $2.96 - CID HoldCo, Inc. (DAIC) has fallen by 9% to $2.72 - Algorhythm Holdings, Inc. (RIME) is down 9% at $2.47 - Corbus Pharmaceuticals Holdings, Inc. (CRBP) has decreased by 8% to $13.50 - Art's-Way Manufacturing Co., Inc. (ARTW) is down 7% at $2.58 [4]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Xcel Brands, Inc. (XELB) increased by 48% to $2.57 [3] - Astrotech Corporation (ASTC) rose by 21% to $5.85 [3] - Rumble Inc. (RUM) saw a 13% increase to $8.36 [3] - ClearPoint Neuro, Inc. (CLPT) gained 9% reaching $27.38 [3] - USA Rare Earth, Inc. (USAR) also increased by 9% to $24.92 [3] - Q/C Technologies, Inc. (QCLS) rose by 8% to $5.51 [3] - Lazydays Holdings, Inc. (GORV) increased by 8% to $2.61 [3] - K Wave Media Ltd. (KWM) saw a 7% rise to $2.78 [3] - Galectin Therapeutics Inc. (GALT) increased by 6% to $4.53 [3] - Wrap Technologies, Inc. (WRAP) rose by 6% to $2.86 [3] Premarket Losers - Black Titan Corporation Ordinary Shares (BTTC) decreased by 29% to $16.80 [4] - Masonglory Limited (MSGY) fell by 14% to $2.54 [4] - Aspire Biopharma Holdings, Inc. (ASBP) declined by 12% to $0.37 [4] - Urban One, Inc. (UONE) saw an 11% drop to $1.15 [4] - Reitar Logtech Holdings Limited (RITR) decreased by 7% to $2.74 [4] - Iveda Solutions, Inc. (IVDA) fell by 7% to $1.88 [4] - Erayak Power Solution Group Inc. (RAYA) decreased by 6% to $4.93 [4] - Megan Holdings Limited (MGN) saw a 6% drop to $3.32 [4] - Werewolf Therapeutics, Inc. (HOWL) declined by 5% to $1.81 [4] - SOS Limited (SOS) decreased by 4% to $2.04 [4]

Company Updates - Actelis Networks Inc. announced a new contract valued at approximately 5.45% of the company's current market capitalization, resulting in a 43.2% increase in share price to $0.53 in after-hours trading [2] - XCel Brands Inc. reached a settlement agreement and equity transfer deal with the Securities and Exchange Commission, leading to a 66.5% surge in share price to $2.88 in after-hours trading [2] - Rumble Inc. formed a partnership with Perplexity to integrate AI-powered tools, causing shares to rise by 11.4% to $8.23 in after-hours trading [2] - Theriva Biologics Inc. announced plans to reduce its workforce by 32%, which resulted in a 2.1% decline in share price to $0.40 in after-hours trading [2] - Open Text Corp agreed to divest its on-premise solution (eDOCS) from its Analytics portfolio to NetDocuments for $163 million, leading to a 0.8% decrease in share price to $37.36 in after-hours trading [2]

XCel Brands Inc. (NASDAQ:XELB) saw its shares rise 66.47% to $2.88 during after-hours trading on Thursday, after announcing a settlement agreement and equity transfer deal with the Securities and Exchange Commission.Check out the current price of XELB stock here.Settlement Agreement DetailsIn an 8-K filing on Thursday, XCel Brands revealed it reached a settlement agreement with IM Topco LLC,  IMWHP LLC, and IMWHP2 LLC. The deal includes a capital appreciation right, which entitles New York-based company to ...

Analyst Ratings Summary - DA Davidson analyst Rudy Kessinger initiated coverage on AvePoint, Inc. (AVPT) with a Buy rating and a price target of $20, while shares closed at $15.75 [6] - Wells Fargo analyst John Kilichowski initiated coverage on Sila Realty Trust, Inc. (SILA) with an Equal-Weight rating and a price target of $27, with shares closing at $25.62 [6] - BMO Capital analyst John Kim initiated coverage on Alexandria Real Estate Equities, Inc. (ARE) with an Outperform rating and a price target of $100, while shares closed at $85.89 [6] - B of A Securities analyst Koji Ikeda initiated coverage on Atlassian Corporation (TEAM) with a Neutral rating and a price target of $200, with shares closing at $170.63 [6] - Maxim Group analyst Tom Forte initiated coverage on Xcel Brands, Inc. (XELB) with a Buy rating and a price target of $3, while shares closed at $1.55 [6]

Core Insights - Xcel Brands, Inc. has appointed Olin C. Lancaster as Chief Revenue Officer, bringing over 30 years of experience in global consumer brands and a strong record in revenue growth and operational excellence [2][3] Company Overview - Xcel Brands, Inc. is a media and consumer products company focused on the design, licensing, marketing, live streaming, and social commerce sales of various branded products, including apparel, footwear, and home goods [6] - The company was founded in 2011 with a vision to innovate shopping, entertainment, and social media through social commerce [6] - Xcel owns several brands, including Halston and Judith Ripka, and has partnerships with various creators and brands [6] Leadership Background - Olin C. Lancaster has held senior leadership positions at notable companies such as Kenneth Cole, DKNY, and Ralph Lauren, where he significantly grew the North American wholesale business [3] - At Meridian Brands, he successfully led a rebranding and restructuring effort that improved profitability and operational performance [3] Strategic Vision - Lancaster emphasizes the importance of activating and monetizing brands in a challenging market, highlighting Xcel's dual role as a media and brand management company [4] - The company aims to leverage its extensive experience in live streaming and social commerce to enhance brand value and attract partners [4] Market Impact - Xcel Brands has generated over $5 billion in retail sales through live streaming and digital channels, showcasing its effective sales strategy [6] - The company's brand portfolio has a significant social media presence, reaching over 43 million followers and broadcasting to 200 million households [6]

[Executive Summary and Key Highlights](index=1&type=section&id=Executive%20Summary%20and%20Key%20Highlights) Xcel Brands reported stable Q2 2025 revenue despite a year-over-year decline, strengthened its balance sheet, and projects break-even Adjusted EBITDA by year-end - The CEO highlighted the stability of current revenue streams and a strengthened balance sheet from recent financing, which will support the launch of new creator/influencer brands starting later in the year and in 2026[3](index=3&type=chunk) - The company's brand portfolio social media following increased from **5 million to 43 million** in the second quarter, driven by new influencer brand announcements[8](index=8&type=chunk) Q2 2025 Key Metrics | Metric | Value | Note | | :--- | :--- | :--- | | **Total Revenue** | $1.3 million | Essentially flat compared with Q1 2025 | | **GAAP Net Loss** | $4.0 million | Includes non-cash charges related to debt refinancing | | **YTD Adjusted EBITDA (2025)** | -$1.0 million | A 38% improvement from -$1.6 million in the first six months of 2024 | - The company projects it will approach **break-even monthly Adjusted EBITDA** by the end of 2025[8](index=8&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) Q2 2025 financials were heavily impacted by brand divestiture, leading to a 55% revenue fall and net loss, but costs were reduced and six-month Adjusted EBITDA improved [Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) Q2 2025 revenue decreased 55% to $1.3 million due to brand divestiture, resulting in a $4.0 million net loss, though Adjusted EBITDA improved 45% excluding the divested brand Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $1.3M | $2.9M | -55% | | **Net (Loss) Income** | ($4.0M) | $0.2M | N/A | | **(Loss) Earnings Per Share** | ($1.66) | $0.08 | N/A | | **Adjusted EBITDA** | ($0.3M) | ($0.04M) | -650% | - The year-over-year revenue decrease was driven by a decline in net licensing revenue following the June 30, 2024 divestiture of the Lori Goldstein brand[4](index=4&type=chunk) - Direct operating costs and expenses decreased by **39% to $1.9 million**, reflecting cost reductions and the impact of an employee retention tax credit, with a target annual run rate of less than **$10 million** for these expenses[5](index=5&type=chunk) - The company recognized a **$1.9 million loss** on the early extinguishment of debt related to refinancing its term loan[6](index=6&type=chunk) [Six Month 2025 Financial Results](index=2&type=section&id=Six%20Month%202025%20Financial%20Results) H1 2025 revenue decreased 48% to $2.7 million due to brand divestiture, resulting in a $6.8 million net loss, while Adjusted EBITDA improved 38% to negative $1.0 million Six Months 2025 vs 2024 Performance | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $2.7M | $5.2M | -48% | | **Net Loss** | ($6.8M) | ($6.1M) | +11.5% | | **Loss Per Share** | ($2.84) | ($2.78) | +2.2% | | **Adjusted EBITDA** | ($1.0M) | ($1.6M) | +38% | - Direct operating costs and expenses for the six-month period decreased by **41% to $4.2 million**, primarily due to management's cost reduction and restructuring initiatives[10](index=10&type=chunk) - A **$1.9 million loss** on early extinguishment of debt was recognized during the six-month period[11](index=11&type=chunk) [Financial Position and Liquidity](index=2&type=section&id=Financial%20Position%20and%20Liquidity) As of June 30, 2025, Xcel Brands reported $22.5 million in equity, $1.0 million cash, and $11.8 million debt, with liquidity enhanced by a $2.6 million post-quarter equity offering [Balance Sheet](index=2&type=section&id=Balance%20Sheet) As of June 30, 2025, the balance sheet showed $22.5 million in equity, $1.0 million cash, $0.7 million working capital, and $11.8 million debt, bolstered by $2.6 million August equity offerings Key Balance Sheet Items (June 30, 2025) | Item | Value (approx.) | | :--- | :--- | | Stockholders' Equity | $22.5 million | | Unrestricted Cash & Equivalents | $1.0 million | | Working Capital | $0.7 million | | Long-Term Debt | $11.8 million | - In August 2025, the company closed public and private placement equity transactions for combined gross proceeds of approximately **$2.6 million**, which increased liquidity[15](index=15&type=chunk) [Cash Flow](index=9&type=section&id=Cash%20Flow) H1 2025 net cash used in operations increased to $3.8 million, while financing activities provided a $4.5 million net cash inflow, resulting in a $0.7 million net increase in cash Six-Month Cash Flow Summary (in thousands) | Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $(3,798) | $(2,883) | | Net Cash from Investing Activities | $(10) | $(104) | | Net Cash from Financing Activities | $4,524 | $1,652 | | **Net Change in Cash** | **$716** | **$(1,335)** | [Company Overview and Forward-Looking Statements](index=2&type=section&id=Company%20Overview%20and%20Forward-Looking%20Statements) Xcel Brands is a media and consumer products company specializing in social commerce and livestream shopping for its lifestyle brands, with future results subject to risks and uncertainties - Xcel Brands engages in designing, licensing, marketing, and selling consumer products through livestreaming, social commerce, and traditional retail channels[17](index=17&type=chunk) - The company's brand portfolio includes owned brands like Halston and Judith Ripka, co-branded collaborations, and licensed brands like Isaac Mizrahi, reaching over **43 million social media followers**[17](index=17&type=chunk)[19](index=19&type=chunk) - The press release includes forward-looking statements regarding future financial performance and strategic plans, which are subject to various risks and uncertainties as detailed in the company's SEC filings[20](index=20&type=chunk) [Appendix](index=4&type=section&id=Appendix) The appendix provides unaudited consolidated financial statements for Q2 and H1 2025, including key financial statements and detailed reconciliations of non-GAAP measures to GAAP equivalents [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP measures like Adjusted EBITDA to GAAP equivalents, used by management for consistent performance comparison by excluding non-core items - The company uses non-GAAP measures like Adjusted EBITDA and non-GAAP net loss to provide supplemental information to investors by adjusting for costs and events not representative of core business operations[24](index=24&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (Q2) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net (loss) income attributable to Xcel** | **$(3,988)** | **$195** | | Adjustments (Interest, Taxes, D&A, etc.) | $3,689 | $45 | | **Adjusted EBITDA** | **$(299)** | **$(40)** | Reconciliation of Net Loss to Non-GAAP Net Loss (Q2) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net (loss) income attributable to Xcel** | **$(3,988)** | **$195** | | Adjustments (Amortization, stock comp, etc.) | $3,092 | $(104) | | **Non-GAAP net loss** | **$(896)** | **$(299)** | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents detailed unaudited financial tables, including Q2 2025 Statement of Operations with a $4.0 million net loss, Balance Sheet with $47.2 million assets, and Cash Flows showing $3.8 million net cash used in operations Consolidated Statement of Operations Highlights (Q2) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net revenue** | $1,321 | $2,954 | | **Gross profit** | $1,321 | $2,916 | | **Operating loss (income)** | $(1,654) | $307 | | **Net (loss) income** | $(3,991) | $161 | Consolidated Balance Sheet Highlights | (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $47,189 | $53,756 | | **Total Liabilities** | $24,693 | $25,358 | | **Total Stockholders' Equity** | $22,496 | $28,398 | Consolidated Statement of Cash Flows Highlights (Six Months) | (in thousands) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(3,798) | $(2,883) | | **Net cash provided by financing activities** | $4,524 | $1,652 | | **Net increase (decrease) in cash** | $716 | $(1,335) |

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents the company's unaudited interim financial statements, management's analysis, and disclosures on market risk and internal controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Contains the unaudited condensed consolidated financial statements and accompanying notes for the period ended June 30, 2025 [Unaudited Condensed Consolidated Financial Statements](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The company's financial position weakened with decreased assets and revenue, resulting in a significant net loss for Q2 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,209 | $4,043 | | **Total Assets** | $47,189 | $53,756 | | **Total Current Liabilities** | $5,466 | $10,394 | | **Total Liabilities** | $24,693 | $25,358 | | **Total Stockholders' Equity** | $22,496 | $28,398 | Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenue** | $1,321 | $2,954 | $2,653 | $5,138 | | **Operating (Loss) Income** | $(1,654) | $307 | $(3,841) | $(5,888) | | **Net (Loss) Income** | $(3,991) | $161 | $(6,788) | $(6,184) | | **Basic (Loss) EPS** | $(1.66) | $0.08 | $(2.84) | $(2.78) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(3,798) | $(2,883) | | **Net cash used in investing activities** | $(10) | $(104) | | **Net cash provided by financing activities** | $4,524 | $1,652 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Details significant events including a reverse stock split, debt refinancing, a reduction in an equity investment, and a going concern warning - The company's brand portfolio includes wholly-owned brands like Halston and C Wonder, as well as noncontrolling interests in brands like Isaac Mizrahi[23](index=23&type=chunk) - A **1-for-10 reverse stock split** was effected on March 24, 2025, with all share and per-share amounts retroactively adjusted[26](index=26&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) - Management has determined there is **substantial doubt** about the Company's ability to continue as a going concern due to recurring losses and a history of cash used in operations[33](index=33&type=chunk)[35](index=35&type=chunk) - On April 15, 2025, Xcel's interest in IM Topco was **reduced from 30% to 17.5%**, and the company discontinued using the equity method of accounting for this investment[39](index=39&type=chunk)[40](index=40&type=chunk) - In April 2025, the company refinanced its term loan debt, resulting in total outstanding term loans of **$13.62 million** and a recognized loss on early extinguishment of debt of approximately **$1.85 million**[63](index=63&type=chunk)[78](index=78&type=chunk) - Subsequent to the quarter end, on August 4, 2025, the company raised approximately **$2.0 million** in net proceeds from a public offering and private placement of common stock[137](index=137&type=chunk)[139](index=139&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the significant revenue decrease, cost-cutting measures, and the substantial doubt regarding the company's going concern status Q2 Operating Results Comparison (in millions) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Revenue** | $1.32 | $2.95 | $(1.63) | | **Direct Operating Costs** | $1.90 | $3.12 | $(1.22) | | **Net (Loss) Income** | $(3.99) | $0.20 | $(4.19) | H1 Operating Results Comparison (in millions) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Revenue** | $2.65 | $5.14 | $(2.49) | | **Direct Operating Costs** | $4.18 | $7.08 | $(2.90) | | **Net Loss** | $(6.79) | $(6.10) | $(0.69) | - The company has implemented cost-cutting measures, reducing direct operating expenses to an expected run rate of less than **$10 million** per annum, a saving of over **$22 million** annually compared to 2022[154](index=154&type=chunk)[207](index=207&type=chunk) - A **'Going Concern' warning** was issued, stating that recurring losses and cash outflows raise substantial doubt about the company's ability to meet its financial obligations within the next twelve months[188](index=188&type=chunk)[190](index=190&type=chunk) - The company is focused on a 'licensing plus' business model and plans to launch **four new brands** over the next 12 to 15 months, including collaborations with Cesar Millan and Coco Rocha[204](index=204&type=chunk)[205](index=205&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Disclosure is not required as the company qualifies as a smaller reporting company - Disclosure is not required for smaller reporting companies[215](index=215&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective due to a material weakness in financial reporting - Disclosure controls and procedures were deemed **ineffective** as of June 30, 2025[216](index=216&type=chunk) - A **material weakness** was identified related to the untimely receipt of financial information from a third party for an unconsolidated affiliate, causing delays in SEC filings[217](index=217&type=chunk) [PART II - OTHER INFORMATION](index=62&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) Covers legal proceedings, risk factors, and other required disclosures for the reporting period [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) Current legal proceedings are not expected to have a material adverse effect on the company's financial condition - Management does not expect current legal proceedings to have a **material adverse effect** on the company's business or financial condition[221](index=221&type=chunk) [Item 1A. Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have been reported since the last Annual Report on Form 10-K - The company refers to the risk factors disclosed in its most recent Form 10-K and notes **no material changes**[222](index=222&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=62&type=section&id=Other%20Items) Confirms no reportable events under various items and lists the exhibits filed with the report - No unregistered sales of equity securities, defaults upon senior securities, or other material information were reported under Items 2, 3, 4, and 5[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) - Item 6 lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files[227](index=227&type=chunk)

Company Performance - XCel Brands reported a quarterly loss of $0.37 per share, better than the Zacks Consensus Estimate of a loss of $0.5, and compared to a loss of $0.1 per share a year ago, resulting in an earnings surprise of +26.00% [1] - The company posted revenues of $1.32 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 28.21%, and down from $2.95 million in the same quarter last year [2] - Over the last four quarters, XCel Brands has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - XCel Brands shares have declined approximately 78.5% since the beginning of the year, while the S&P 500 has gained 10% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.12 on revenues of $2.94 million, and for the current fiscal year, it is -$1.03 on revenues of $9.6 million [7] Industry Outlook - The Retail - Apparel and Shoes industry, to which XCel Brands belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact XCel Brands' stock performance [5]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $1.3 million, down from $3 million in Q2 2024, and year-to-date revenues were $2.7 million compared to $5.1 million in the prior year [10][11] - Direct operating costs decreased by 39% to $1.9 million in Q2 2025 from $3.1 million in Q2 2024, and year-to-date direct operating costs were $4.2 million, down 48% from $7.1 million [10][11] - The company reported a net loss of approximately $4 million or $1.66 per share for Q2 2025, compared to a net income of $200,000 or $0.08 per share in Q2 2024 [13][14] - Adjusted EBITDA for Q2 2025 was negative $300,000, showing a year-over-year improvement of 45% when excluding the contribution from the Lori Goldstein brand [15] Business Line Data and Key Metrics Changes - The company launched new creator influencer brands, including those with Cesar Millan, Gemma Stafford, and Jenny Martinez, which are expected to diversify the brand portfolio and reduce tariff volatility [7][8] - The social media reach across the brand portfolio grew from 5 million followers at the start of the year to 43 million [8] Market Data and Key Metrics Changes - The company is approaching Q3 and Q4 with caution due to tariff impacts on QVC and HSN, particularly affecting the Halston brand [9] - Judith Rip's brand at JTV saw an increase of over 65% from Q1 [9] Company Strategy and Development Direction - The company aims to build a brand portfolio to 100 million social media followers and is focusing on launching new influencer brands [7] - A strategic alliance with United Trademark Group is expected to enhance the company's platform and accelerate the formation of additional creator influencer brands [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming launches and indicated that they are on target for revenue forecasts [22] - The company is monitoring the impact of changes in wholesale licensees on product delivery and sales [23] Other Important Information - The company closed a public equity offering and private placement for gross proceeds of approximately $2.6 million, enhancing liquidity [6][17] - As of June 30, 2025, the company had stockholders' equity of approximately $22 million and unrestricted cash of about $1 million [16] Q&A Session Summary Question: Impact of Lori Goldstein divestiture on revenue - The divestiture contributed approximately $1.5 million to revenue and over $500,000 to EBITDA in the prior year [19][20] Question: Revenue and profitability outlook for Q3 and Q4 - Management indicated that they are on target for revenue forecasts and expect sequential improvement in Q3 [22][23] Question: Update on liquidity post-stock offering - The company raised an additional $2.2 million in cash and is stable in terms of liquidity [25][26] Question: Update on the Ormy initiative - The Ormy team is improving user experience and growing the user base, with plans to develop products for influencers [27][28] Question: Updates on Halston brand - Recent meetings with Halston's new president indicated substantial investments and excitement about future plans [32][34] Question: New brands coming in earlier than expected - Brands mentioned include Cesar Millan, Gemma Stafford, and Jenny Martinez, with a focus on launching food products first [35][36] Question: Attractive product categories for influencer partnerships - The company is focusing on influencers in the fashion sector and is excited about a new influencer for the LongeBurger brand [37]