Revenue Performance - Q3 2025 revenue decreased to $2.4 million, down from $4.4 million in Q3 2024, representing a decline of 45% year-over-year[21] - Mobile ad revenue remained steady at 15% of total revenue, while revenue from Roblox campaigns decreased to 42%, down from 57% in 2024[6] Cost Management and Profitability - Gross margins improved to 45%, up from 39% a year ago, indicating a positive trend in cost management[6] - Non-cash operating expenses decreased by 29% year-over-year, reflecting strict cost discipline[6] - Operating losses narrowed by 23% on a cash basis compared to Q3 2024, demonstrating progress towards profitability[6] - The company aims to achieve Adjusted EBITDA profitability in Q4 2025, supported by a more efficient cost structure and a stronger partner pipeline[6] Financial Position - The company achieved a strong balance sheet with $20 million from a private placement and zero debt, enhancing financial stability[2] - The total assets decreased to $8.7 million as of September 30, 2025, down from $11.7 million at the end of 2024[19] - Total liabilities decreased to $10.7 million from $11.5 million at the end of 2024, indicating improved financial health[19] Net Loss and Earnings - GAAP net loss for Q3 2025 was $3,562,000, a slight improvement from a loss of $3,632,000 in Q3 2024[23] - Pro forma net loss for the nine months ended September 30, 2025, was $8,491,449, compared to $8,597,000 for the same period in 2024[23] - Non-GAAP net earnings per share for Q3 2025 was $(2.52), significantly better than $(10.19) in Q3 2024[23] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2025, was $6,805,000, an improvement from $8,160,000 in 2024[25] - Net cash provided by investing activities was $923,000 for the nine months ended September 30, 2025, compared to a net cash outflow of $457,000 in 2024[25] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $5,633,000, up from $1,297,000 in 2024[25] - Cash and cash equivalents at the end of Q3 2025 were $1,061,000, compared to $289,000 at the end of Q3 2024[25] Other Financial Metrics - Non-cash stock compensation increased to $1,372,207 for the nine months ended September 30, 2025, from $986,000 in 2024[23] - The company reported a depreciation and amortization expense of $1,607,000 for the nine months ended September 30, 2025, down from $1,953,000 in 2024[25] - The company recorded a loss on extinguishment of liability of $161,000 for the nine months ended September 30, 2025, compared to $336,000 in 2024[25] Strategic Initiatives - The company is exploring strategies within the digital asset economy, backed by a $10 million investment from Evo Fund[8]

Financial Performance - Q3 2025 revenue decreased to $2.4 million, down from $4.4 million in Q3 2024, representing a decline of 45% year-over-year[21] - Operating losses narrowed by 23% on a cash basis compared to Q3 2024, with a net operating loss of $3.1 million[21] - GAAP net loss for Q3 2025 was $3,562,000, a slight improvement from a loss of $3,632,000 in Q3 2024[23] - Pro forma net loss for the nine months ended September 30, 2025, was $8,491,449, compared to $8,597,000 for the same period in 2024[23] - Non-GAAP net earnings per share for Q3 2025 was $(2.52), significantly better than $(10.19) in Q3 2024[23] Revenue Sources - Mobile ad revenue accounted for 15% of total revenue, while Roblox campaigns contributed 42%, down from 57% in 2024, indicating diversification efforts[6] Cost Management - Gross margins improved to 45% in Q3 2025, up from 39% in the same quarter last year[6] - Non-cash operating expenses decreased by 29% year-over-year, reflecting strict cost discipline[6] - The company aims to achieve Adjusted EBITDA profitability in Q4 2025, supported by a more efficient cost structure and a stronger partner pipeline[6] Financial Position - The company achieved a strong balance sheet with $20 million from a private placement and zero debt, enhancing its financial foundation[2] - The total assets decreased to $8.7 million as of September 30, 2025, from $11.7 million at the end of 2024[19] - Total liabilities reduced to $10.7 million from $11.5 million at the end of 2024, indicating improved financial health[19] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2025, was $6,805,000, an improvement from $8,160,000 in 2024[25] - Cash and cash equivalents at the end of Q3 2025 were $1,061,000, compared to $289,000 at the end of Q3 2024[25] - Net cash provided by investing activities for the nine months ended September 30, 2025, was $923,000, compared to a net outflow of $457,000 in 2024[25] - Proceeds from the issuance of common stock in Q3 2025 amounted to $1,945,000[25] Expenses - The company recorded a depreciation and amortization expense of $1,607,000 for the nine months ended September 30, 2025[25] - The change in fair value of warrant liability resulted in a loss of $1,934,000 for the nine months ended September 30, 2025[25] - The company reported a stock-based compensation expense of $1,372,000 for the nine months ended September 30, 2025, compared to $986,000 in 2024[25] Strategic Initiatives - The company is exploring strategies within the digital asset economy, backed by a $10 million investment from Evo Fund[8]

Revenue and Financial Performance - Total revenue from the oil and gas segment was $225,678 for the three and nine months ended September 30, 2025[140]. - General and administrative expenses increased to $3,456,958 during the three months ended September 30, 2025, from $433,412 during the same period in 2024[141]. - Cash balance at September 30, 2025, was $1,512,157, an increase from $525,809 at December 31, 2024[143]. - Operating activities used $4,606,146 of cash during the nine months ended September 30, 2025, compared to $1,823,786 during the same period in 2024[146]. - Financing activities raised $7,431,486 during the nine months ended September 30, 2025, compared to none during the same period in 2024[148]. - Long-term liabilities increased to $6,191,700 at September 30, 2025, from $5,860,274 at December 31, 2024[149]. Strategic Initiatives - The Company acquired all outstanding units of AGIG on July 1, 2025, diversifying its portfolio in the energy sector[127]. - The Company is focused on using waste products to decarbonize the energy sector through AGIG's proprietary technologies[128]. - The Company is in the pre-revenue stage for its renewable energy segment, incurring research and development costs[144]. - The Company will need substantial additional funding to support operations and growth strategy[145].

Financial Performance - Current quarter net revenue decreased by $0.79 million to $1.12 million from $1.91 million in the prior year quarter, primarily due to lower licensing revenues and the sale of remaining Longaberger inventory in the prior year [159]. - The company reported a net loss of $7.90 million for the current quarter, an improvement from a net loss of $9.21 million in the prior year quarter [167]. - Non-GAAP net loss for the current quarter was approximately $1.34 million, or $(0.34) per diluted share, compared to a non-GAAP net loss of $1.33 million, or $(0.57) per diluted share, in the prior year quarter [168]. - Adjusted EBITDA for the current quarter was approximately $(0.65) million, an improvement from approximately $(1.05) million in the prior year quarter [169]. - For the nine months ended September 30, 2025, net revenue decreased by $3.28 million to $3.77 million from $7.05 million in the prior year nine months, primarily due to the divestiture of the Lori Goldstein brand [177]. - The company recognized a net loss of $14.68 million for the current nine months, compared to a net loss of $15.31 million for the prior year nine months [186]. - Non-GAAP net loss was approximately $3.61 million, or $(1.24) per diluted share, for the current nine months, compared to a non-GAAP net loss of approximately $3.44 million, or $(1.53) per diluted share, for the prior year [187]. Operating Costs and Expenses - Direct operating costs and expenses decreased approximately $0.66 million, from $2.83 million in the prior year quarter to $2.17 million in the current quarter, attributed to restructuring and cost reduction actions [160]. - Direct operating costs and expenses for the nine months decreased approximately $3.56 million, from $9.91 million in the prior year to $6.35 million in the current nine months, due to restructuring and cost reduction actions [178]. - The Company’s direct operating costs have been reduced from approximately $8 million per quarter to less than $2.5 million per quarter, resulting in over $22 million in annualized cost savings compared to 2022 [217]. - The company has reduced its direct operating expenses to an expected run rate of less than $10 million per annum as part of ongoing cost-cutting measures [179]. Cash Flow and Liquidity - Net cash used in operating activities was approximately $5.20 million in the current nine months, compared to approximately $3.31 million in the prior year [198]. - As of September 30, 2025, the company had unrestricted cash and cash equivalents of approximately $1.5 million [189]. - The working capital deficit was approximately $0.89 million as of September 30, 2025, primarily due to the amendment of the term loan debt [192]. - Interest and finance expense increased to approximately $3.42 million for the current nine months, up from approximately $0.44 million in the prior year [184]. - The company incurred a $1.85 million loss on early extinguishment of debt during the current nine months due to refinancing activities [184]. - The Company closed on a public offering and private placement of common stock in August 2025, providing additional net proceeds to improve liquidity [195]. - The total net proceeds from the 2025 Public Offering and Private Placement Transactions amounted to approximately $2.0 million [214]. Debt and Financing - Interest and finance expense increased to approximately $0.52 million for the current quarter, compared to approximately $0.14 million in the prior year quarter, due to higher interest rates [165]. - The Company plans to make a prepayment of $3,250,000 on Term Loan A by February 20, 2026, along with an amendment fee of $450,000 [210]. - The liquid asset covenant requirement was reduced to $1,000,000 following the amendment of the loan agreement on October 7, 2025 [209]. - The Company is currently in compliance with all applicable financial covenants as per the loan agreements [208]. - The restructuring of term debt in April 2025 improved the Company's liquidity position despite higher interest payments over the term of the debt [218]. Strategic Initiatives - The company is focused on building a diversified portfolio of lifestyle consumer products brands through organic growth and strategic acquisitions [158]. - The Company plans to launch three new brands in Q4 2025, including Trust, Respect, Love by Cesar Millan, GemmaMade, and Mesa Mia [216]. Market Conditions - The company recognized losses related to equity investments of approximately $5.49 million in the current quarter, compared to $6.85 million in the prior year quarter [164]. - The Company continues to face headwinds from poor economic conditions, inflation, and rising consumer debt levels, which may negatively impact demand for its products [220].

Financial Position - As of September 30, 2025, the company had $8,000 in cash and a working capital deficiency of $2,711,000[89] - The company issued unsecured promissory notes totaling $600,000 to Energi, with a balance due of approximately $675,000 as of September 30, 2025[93] - The company has requested additional loans from third parties to meet liquidity needs, as only approximately $75,000 is available outside the trust account as of November 14, 2025[110] Financial Performance - For the quarter ended September 30, 2025, the company reported a net loss of approximately $199,000, with operating and financial expenses totaling $294,000[102] - The company has not engaged in any revenue-generating operations to date and has incurred increased expenses related to being a public company[101] Business Transactions - The company signed a Business Combination Agreement with Tembo e-LV B.V. on August 29, 2024, and is working towards completing the transaction[91] - Energi Holdings proposed to acquire 51% of Tembo for a total enterprise value of $200 million, with Energi having $1 billion in annual revenues[92] Shareholder Actions - A total of 1,148,799 Class A ordinary shares were redeemed during the Third Extension, resulting in 3,926,071 Class A ordinary shares outstanding[96] - The Fourth Extension was approved on October 31, 2025, extending the mandatory liquidation date to November 2, 2026, with 711,333 Class A ordinary shares redeemed[98] - The company has reduced payments for the redemption of a portion of public shares in connection with multiple extension meetings[114] Compliance and Regulatory Issues - The company is subject to delisting from Nasdaq due to not completing an initial business combination within 36 months of its IPO, with trading suspended on November 5, 2024[95] Investment Strategy - The net proceeds from the initial public offering and private warrants are invested in U.S. government treasury bills with a maturity of 185 days or less[114] - Investments are made in money market funds that comply with Rule 2a-7 under the Investment Company Act of 1940[114] - The company believes there will be no material exposure to interest rate risk due to the short-term nature of these investments[114]

Financial Position - As of September 30, 2025, the company had $8,000 in cash and a working capital deficiency of $2,711,000[89] - The company issued unsecured promissory notes totaling $600,000 to Energi, with a balance of approximately $675,000 due as of September 30, 2025[93] - The company has extended the mandatory liquidation date to November 2, 2026, following the Fourth Extension Meeting[98] - The company faces substantial doubt about its ability to continue as a going concern if it cannot complete the initial business combination due to insufficient funds[110] Financial Performance - For the quarter ended September 30, 2025, the company reported a net loss of approximately $199,000, with operating and financial expenses totaling $294,000[102] - The company has not engaged in revenue-generating operations to date and relies on interest income from its trust account[101] Business Combination - The company signed a Business Combination Agreement with Tembo e-LV B.V. on August 29, 2024, and is working towards completing the transaction[91] - Energi Holdings proposed to acquire 51% of Tembo for a total enterprise value of $200 million, with Energi having $1 billion in annual revenues[92] - The company anticipates using funds from its trust account to complete the initial business combination, with additional loans being sought to cover operational costs[110] Shareholder Actions - A total of 1,148,799 Class A ordinary shares were redeemed during the Third Extension, resulting in 3,926,071 Class A ordinary shares outstanding[96] - The company has reduced payments for the redemption of a portion of public shares in connection with multiple extension meetings[114] Investment Strategy - The net proceeds from the initial public offering and private warrants are invested in U.S. government treasury bills with a maturity of 185 days or less[114] - Investments are made in money market funds that comply with Rule 2a-7 under the Investment Company Act of 1940[114] - The company believes there will be no material exposure to interest rate risk due to the short-term nature of these investments[114]

Revenue Generation and Market Overview - Wellgistics Health expects to generate revenues primarily through Wellgistics Pharmacy and Wellgistics LLC after acquiring Wood Sage, LLC in June 2024 and Wellgistics, LLC in August 2024[182]. - The National Health Expenditure Data for 2022 reached $4.5 trillion, accounting for 17.3% of GDP, with an expected increase to 19.7% by 2032[184]. - Total retail prescription drug spending increased by 8.4% from 2021 to 2022, reaching $405.9 billion[184]. - The U.S. market for medicines reached $435 billion in 2023, with the specialty drug market accounting for over 50% of prescription drug spending despite being less than 10% of total drugs[184]. - Wellgistics, LLC serves over 5,000 registered pharmacies nationwide, focusing on competitive pricing and unique products[172]. - Wellgistics Pharmacy is licensed in 32 states and the District of Columbia, expanding its operations to include mail order pharmacy services[178]. - The pharmacy network includes over 19,000 independent pharmacies across the U.S., capable of delivering prescriptions in hours, servicing approximately 1.3 billion prescriptions annually[185]. - Wellgistics Health aims to enhance patient outcomes by improving medication adherence and providing access to clinical resources[185]. - The company plans to expand its wholesale operations and establish new manufacturer relationships to maximize revenues[185]. Financial Performance - Net revenues for the three months ended September 30, 2025, were $3,012,904, a decrease of approximately 47% compared to $5,673,868 for the same period in 2024[198]. - Gross profit for the three months ended September 30, 2025, was $231,012, representing a decline of approximately 56% from $521,244 in 2024[200]. - General and administrative expenses for the three months ended September 30, 2025, increased to $30,172,800 from $1,798,641 in 2024, primarily due to the acquisition of Wellgistics LLC[202]. - Sales and marketing expenses for the three months ended September 30, 2025, were $803,747, compared to $0 for the same period in 2024, reflecting expanded promotional activities[203]. - Net revenues for the nine months ended September 30, 2025, were $21,667,212, compared to $5,718,408 for the same period in 2024, driven by acquisitions[209]. - Gross profit for the nine months ended September 30, 2025, was $1,429,405, an increase of approximately 176% from $518,636 in 2024[211]. - General and administrative expenses for the nine months ended September 30, 2025, were $66,205,669, up from $2,448,813 in 2024, largely due to acquisitions[214]. - Interest expense for the nine months ended September 30, 2025, was $3,703,837, compared to $142,281 in 2024, reflecting increased financing activities[218]. - The significant increase in other expenses for the nine months ended September 30, 2025, totaled $5,024,498, compared to $126,874 in 2024, primarily due to interest expenses and losses related to acquisitions[217]. - The Company recognized a loss of $1,353,663 for the nine months ended September 30, 2025, due to the amendment of the Membership Interest Purchase Agreement, increasing the promissory note from $15 million to $17.5 million[219]. Debt and Financing Activities - As of September 30, 2025, total debt amounted to $24,809,234, an increase from $23,382,901 as of December 31, 2024[225]. - The Company expects to generate positive cash flow from operations in 2025, driven by annual revenue from Wood Sage and Wellgistics LLC[220]. - The Company issued a total of 3,426,254 shares of common stock, resulting in net proceeds of $2,838,787 as of September 30, 2025[223]. - A public offering of 7,142,862 shares of common stock was filed on September 29, 2025, generating net proceeds of approximately $4.53 million[224]. - The Company entered into a secured term loan of $1,300,000 on August 26, 2025, with a total repayment obligation of $1,872,000[231]. - The Company recorded interest expenses of $668,148 for the nine months ended September 30, 2025, related to various debt instruments[230]. - The Company plans to use proceeds from offerings to strengthen working capital, support operations, and pursue strategic acquisitions[224]. - The Company has ongoing initiatives for facility expansion, employee recruitment, and technology upgrades to meet operational needs[221]. - The Company is focusing on strategic acquisitions to enhance its health ecosystem, including investments in artificial intelligence and data warehousing capabilities[222]. - Wellgistics, LLC entered into a new credit agreement for a line of credit of $10,000,000 with an annual interest rate of 16.84%[241]. - As of September 30, 2025, the outstanding balance on the line of credit was $2,973,751, down from $5,531,260 as of December 31, 2024[241]. Cash Flow and Investment Activities - Net cash used in operating activities for the nine months ended September 30, 2025 was $4,561,776, primarily due to a net loss of $72,981,336[247]. - Net cash provided by financing activities for the nine months ended September 30, 2025 was $8,388,250, driven by gross proceeds of $4,000,000 from the IPO and $20,070,000 from the revolving line of credit[250]. - The company fully repaid the $1.2 million promissory note as of September 30, 2025, compared to an outstanding balance of $137,141 as of December 31, 2024[243]. - The company plans to retain future earnings for operations, expansion, and debt repayment, with no current plans to pay cash dividends[245]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $626,144, primarily for capitalized software expenditures[249]. Accounting and Revenue Recognition - The company recognized revenue at the point of sale, with the majority of orders placed via its website[256]. - The company accounts for acquisitions as business combinations, allocating the purchase price to the fair values of acquired assets and liabilities[262]. - As of September 30, 2025, the company had total outstanding debt principal payments of $24,809,234 scheduled through 2028[244].

Financial Performance - Net sales for the fourth quarter reached $839 million, a 51% increase compared to $554 million in the same quarter last year[4] - Adjusted EBITDA for the fourth quarter was $90 million, reflecting a 36% increase from $66 million in the prior year[4] - The fiscal year net sales totaled $3.2 billion, up 47% from $2.2 billion in the previous year[4] - Net sales for fiscal 2025 reached $3,204 million, compared to $2,187 million in fiscal 2024, marking an increase of 46.5%[26] - Adjusted EBITDA for fiscal 2025 was $354 million, a decrease of 4% compared to $367 million in fiscal 2024[26] Cash Flow and Liquidity - The company achieved record cash flow from operations of $96 million in the fourth quarter[5] - Post-merger adjusted free cash flow was $126 million, representing a yield of over 30% as of year-end[5] - Net cash from operating activities decreased to $103 million in fiscal 2025 from $192 million in fiscal 2024, a decline of 46.4%[23] - The company expects cash flow from operating activities for fiscal 2026 to be between $170 million and $190 million[27] - Free cash flow is projected to be between $90 million and $110 million for fiscal 2026[27] - Cash and cash equivalents at the end of the period increased to $305 million in September 2025 from $230 million in September 2024, a rise of 32.6%[24] Debt and Leverage - Year-end leverage stood at 3.8x, with total net debt of $1.647 billion[13] - Current liabilities, excluding current debt, rose to $601 million in September 2025 from $457 million in September 2024, an increase of 31.4%[24] Strategic Outlook - The company is targeting a 9% improvement in reported earnings by 2026 through cost improvement and capacity optimization[3] - Fiscal year 2026 guidance includes adjusted EBITDA of $380 - $410 million and free cash flow of $90 - $110 million[14] - The company plans to add approximately $80 million in net additions to property, plant, and equipment in fiscal 2026[27] Segment Performance - The Glatfelter merger contributed $328 million to net sales in the fourth quarter[6] - The Americas segment saw a net sales increase of $122 million, partially offset by a 3% organic volume decline due to competitive pressures[8] Operating Income - The company reported an operating income of $5 million for fiscal 2025, down from $51 million in fiscal 2024[26] Asset Growth - Total assets increased to $3,989 million in September 2025, up from $2,807 million in September 2024, representing a growth of 42.1%[24]

Financial Performance - For the three months ended September 30, 2025, total revenue was $9,279,000, a decrease of 7% compared to $9,943,000 in the same period of 2024[290]. - Net income for the three months ended September 30, 2025, was $2,861,000, a significant improvement of 105% from a net loss of $57,431,000 in the same period of 2024[290]. - Total revenue for the nine months ended September 30, 2025, decreased by $9.7 million, or 25.9%, compared to the same period in 2024, primarily due to a $7.1 million reduction in licensing revenue[305]. - Net loss for the nine months ended September 30, 2025, improved to $48.9 million from a loss of $110.7 million in the prior year, representing a 55.9% reduction[304]. - Adjusted EBITDA improved by 50%, from $(27,081,000) in 2024 to $(13,504,000) in 2025[290]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(73.7) million, compared to $(67.0) million in the same period of 2024, reflecting a 10% increase in losses[292]. - Adjusted EBITDA for the three months ended September 30, 2025, was $(13,504) thousand, compared to $(27,081) thousand for the same period in 2024[345]. - The company emphasizes that Adjusted EBITDA is a key measure for evaluating operating performance and establishing budgets[342]. - Adjusted EBITDA is not prepared in accordance with GAAP and has limitations compared to net loss, which is the most directly comparable financial measure[343]. Cost Management - The company has streamlined its cost structure, reducing selling, general, and administrative expenses by 41% from $11,452,000 in 2024 to $6,740,000 in 2025[290]. - Research and development expenses decreased by $18.9 million, or 31.2%, in the nine months ended September 30, 2025, compared to the same period in 2024[308]. - Selling, general and administrative expenses increased by $7.4 million, or 21.5%, in the nine months ended September 30, 2025, compared to the same period in 2024[304]. - Selling, general and administrative (SG&A) expenses increased by $7.4 million, or 21.5%, for the nine months ended September 30, 2025, primarily due to a $13.5 million rise in professional fees related to restructuring efforts[309]. Financing and Liquidity - The company is pursuing a financing initiative with an aggregate original issue price of not less than $35.0 million and not more than $60.0 million, to be completed by October 15, 2025[275]. - Cash and cash equivalents decreased by $22.2 million, or 48.6%, from December 31, 2024, to $23.5 million as of September 30, 2025, primarily due to funding net losses and partial repayment of the Brookfield Loan[313]. - The company anticipates that existing cash and short-term debt securities will not be sufficient to fund operations for the next twelve months, raising substantial doubt about its ability to continue as a going concern[321]. - The company is focusing on cost reduction and evaluating liquidity-enhancing initiatives, including capital raising and strategic partnerships[322]. - Net cash from financing activities was $25.6 million for the nine months ended September 30, 2025, compared to $40.2 million in the same period of 2024, driven by the issuance of $40.0 million of Series A Preferred Stock[331]. Project and Product Development - The company introduced a cohort-based operating model to streamline commercialization, with four projects in the first cohort, targeting completion of offtake negotiations to unlock financing capital[282]. - The company launched CirculAir™, a joint offering with LanzaJet to produce sustainable aviation fuel and renewable diesel from waste feedstocks[269]. - The company is actively managing risks related to potential delays in projects supported by U.S. government programs, which could impact revenue recognition[283]. Other Income and Expenses - Other income, net increased by $38.1 million in the three months ended September 30, 2025, primarily due to changes in the fair value of financial instruments[302]. - Other income, net increased by $62.5 million for the nine months ended September 30, 2025, mainly driven by a $65.3 million change in the fair value of the Convertible Note[311]. - Interest income, net decreased by $1.5 million for the nine months ended September 30, 2025, attributed to lower cash balances in savings and money market accounts[310]. - Loss from operations for the nine months ended September 30, 2025, was $78.9 million, a slight improvement from $81.9 million in the prior year[304]. - The company reported a loss on Brookfield SAFE extinguishment of $6,216 thousand for the nine months ended September 30, 2025[345]. - The change in fair value of the Convertible Note was $(42,980) thousand for the nine months ended September 30, 2025, compared to a gain of $21,572 thousand in 2024[345]. - Loss from equity method investees, net, was $10,019 thousand for the nine months ended September 30, 2025, compared to $7,935 thousand in 2024[345].

Revenue Performance - For the three months ended September 30, 2025, total revenue was $9.279 million, a decrease of 7% compared to $9.943 million in the same period of 2024[290]. - One-time revenue for the three months ended September 30, 2025, was $8.106 million, down 4% from $8.414 million in 2024[290]. - Recurring revenue decreased by 23% to $1.173 million for the three months ended September 30, 2025, compared to $1.529 million in 2024[290]. - Total revenue for the nine months ended September 30, 2025, decreased by $9.7 million, or 25.9%, compared to the same period in 2024, primarily due to a $7.1 million reduction in licensing revenue[305]. - Total revenue for the three months ended September 30, 2025, decreased by $0.7 million, or 7%, compared to the same period in 2024[296]. Net Income and Loss - Net income for the three months ended September 30, 2025, was $2.861 million, a significant improvement of 105% from a net loss of $57.431 million in the same period of 2024[290]. - The company reported net losses after tax of $48.9 million and $110.7 million for the nine months ended September 30, 2025, and 2024, respectively[270]. - Net loss for the nine months ended September 30, 2025, improved to $48.9 million from a loss of $110.7 million in the prior year, representing a 55.9% reduction[304]. - The company reported a net loss of $48.9 million for the nine months ended September 30, 2025, with cash outflows from operations totaling $58.7 million[319]. Expenses - Cost of revenues (excluding depreciation) decreased by 15% to $6.916 million for the three months ended September 30, 2025, from $8.141 million in 2024[290]. - Selling, general, and administrative expenses were reduced by 41% to $6.740 million for the three months ended September 30, 2025, compared to $11.452 million in 2024[290]. - Research and development expenses decreased by $18.9 million, or 31.2%, in the nine months ended September 30, 2025, compared to the same period in 2024[308]. - Selling, general and administrative expenses increased by $7.4 million, or 21.5%, in the nine months ended September 30, 2025, compared to the same period in 2024[304]. - Selling, general and administrative (SG&A) expenses increased by $7.4 million, or 21.5%, for the nine months ended September 30, 2025, primarily due to a $13.5 million rise in professional fees related to restructuring efforts[309]. Cash Flow and Financing - Cash and cash equivalents decreased by $22.2 million, or 48.6%, from December 31, 2024, to $23.5 million as of September 30, 2025, primarily due to funding net losses and partial repayment of the Brookfield Loan[313]. - Net cash used in operating activities decreased by $10.7 million, or 15.4%, for the nine months ended September 30, 2025, compared to the same period in 2024[329]. - Net cash provided by investing activities was $11.4 million for the nine months ended September 30, 2025, down from $14.1 million in the prior year[330]. - Net cash from financing activities was $25.6 million for the nine months ended September 30, 2025, compared to $40.2 million in the same period in 2024, driven by the issuance of $40.0 million of Series A Preferred Stock[331]. - The company is actively pursuing financing options and has not yet secured committed capital for future projects[276]. Adjusted EBITDA - Adjusted EBITDA improved by 50%, resulting in a loss of $13.504 million for the three months ended September 30, 2025, compared to a loss of $27.081 million in 2024[290]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $(73.7) million, compared to $(67.0) million in the same period of 2024, reflecting a 10% increase in losses[292]. - Adjusted EBITDA for the three months ended September 30, 2025, was $(13,504) thousand, compared to $(27,081) thousand for the same period in 2024[345]. - The company emphasizes that Adjusted EBITDA is a key measure for evaluating operating performance and establishing budgets[342]. - Adjusted EBITDA is not prepared in accordance with GAAP and has limitations compared to net loss, which is the most directly comparable financial measure[343]. Other Income and Fair Value Changes - Other income, net increased by $38.1 million in the three months ended September 30, 2025, primarily due to changes in the fair value of financial instruments[302]. - Other income, net increased by $62.5 million for the nine months ended September 30, 2025, mainly driven by a $65.3 million change in the fair value of the Convertible Note[311]. - The change in fair value of the Convertible Note was $(42,980) thousand for the nine months ended September 30, 2025, compared to a gain of $21,572 thousand in 2024[345]. - Loss from equity method investees, net, was $10,019 thousand for the nine months ended September 30, 2025, compared to $7,935 thousand in 2024[345]. - The company reported a loss on Brookfield SAFE extinguishment of $6,216 thousand for the nine months ended September 30, 2025[345]. Going Concern and Future Outlook - The company anticipates that existing cash and short-term debt securities will not be sufficient to fund operations for the next twelve months, raising substantial doubt about its ability to continue as a going concern[321]. - The company is focusing on cost reduction and evaluating liquidity-enhancing initiatives, including capital raising and strategic partnerships[322]. - The company had an accumulated deficit of $1.0185 billion, up from $969.6 million as of December 31, 2024[270].