Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from ___________ to ___________ Commission File Number: 001-41905 Cassava Sciences, Inc. (Exact name of registrant as specified in its charter) De ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR Delaware 52-2214851 (State or other jurisdiction of incorporation or organization) 117 Kendrick St, Suite 450 Needham, MA 02494 (Address of principal executive offices) (Zip Code) (I.R.S. Employer Identification No.) Registrant's telephone number, including area code: (617) 916-54 ...

Part I Financial Information [Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements) Xilio's June 30, 2025, financials show increased cash and liabilities, a $29.1 million net loss, and significant going concern doubts [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $121,551 | $55,291 | | Total current assets | $123,716 | $60,234 | | Total assets | $133,813 | $71,075 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $53,260 | $27,261 | | Common stock warrant liabilities | $38,550 | $0 | | Total liabilities | $126,744 | $53,477 | | Accumulated deficit | $(412,862) | $(383,753) | | Total stockholders' equity | $7,069 | $17,598 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Statement of Operations Summary (in thousands) | 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 | | :--- | :--- | :--- | :--- | :--- | | Collaboration and license revenue | $8,084 | $2,357 | $11,014 | $2,357 | | Research and development | $15,330 | $11,216 | $23,596 | $21,616 | | General and administrative | $7,120 | $5,815 | $15,635 | $11,954 | | Total operating expenses | $22,450 | $17,061 | $39,231 | $34,548 | | Loss from operations | $(14,366) | $(14,704) | $(28,217) | $(32,191) | | Net loss | $(15,844) | $(13,925) | $(29,109) | $(31,128) | | Net loss per share, basic and diluted | $(0.16) | $(0.24) | $(0.34) | $(0.73) | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,501 | $9,451 | | Net cash used in investing activities | $(423) | $(21) | | Net cash provided by financing activities | $52,194 | $20,997 | | **Increase in cash, cash equivalents and restricted cash** | **$66,272** | **$30,427** | [Notes to Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company has incurred significant operating losses, with a **net loss of $29.1 million** for the six months ended June 30, 2025, and an **accumulated deficit of $412.9 million**, raising substantial doubt about its ability to continue as a going concern[33](index=33&type=chunk) - To fund operations, the company will need to raise additional capital through warrant exercises, milestone payments from Gilead and AbbVie, equity/debt financings, or other collaborations, with potential cost reduction strategies if capital is not secured[34](index=34&type=chunk) - In February 2025, the company entered a collaboration with AbbVie for up to four programs, receiving an initial **$52.0 million** ($42.0 million upfront cash and $10.0 million from a private placement) and is eligible for up to approximately **$2.1 billion** in additional contingent payments[55](index=55&type=chunk)[61](index=61&type=chunk) - In March 2024, the company entered a license agreement with Gilead for its XTX301 (IL-12) program, receiving **$55.0 million** ($30.0 million upfront cash and $25.0 million from private placements) and is eligible for up to **$592.5 million** in additional contingent payments, including a **$75.0 million** transition fee[72](index=72&type=chunk)[74](index=74&type=chunk) - In June 2025, the company closed a follow-on public offering of prefunded warrants and accompanying common stock warrants, receiving initial gross proceeds of **$50.0 million**, with potential for an additional **$100.0 million** if certain warrants are exercised for cash by the second half of 2026[32](index=32&type=chunk)[89](index=89&type=chunk)[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports Xilio, a clinical-stage biotech, has $121.6 million cash, funding through Q3 2026, but faces going concern doubts and needs more capital [Overview](index=43&type=section&id=Overview) - Xilio is a clinical-stage biotechnology company developing tumor-activated immuno-oncology (I-O) therapies to improve outcomes for cancer patients while minimizing systemic side effects[123](index=123&type=chunk) - The company's most advanced product candidates are vilastobart (anti-CTLA-4 mAb) and XTX301 (engineered IL-12), with vilastobart in a Phase 2 trial and XTX301 in a Phase 1 trial under a license agreement with Gilead[123](index=123&type=chunk) - The company is also advancing preclinical programs, including XTX501 (masked PD-1/IL-2 bispecific) and masked T cell engagers, partly in collaboration with AbbVie[123](index=123&type=chunk) [Results of Operations](index=53&type=section&id=Results%20of%20Operations) Comparison of Results for the Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Collaboration and license revenue | $8,084 | $2,357 | $5,727 | | Research and development | $15,330 | $11,216 | $4,114 | | General and administrative | $7,120 | $5,815 | $1,305 | | **Net loss** | **$(15,844)** | **$(13,925)** | **$(1,919)** | Comparison of Results for the Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Collaboration and license revenue | $11,014 | $2,357 | $8,657 | | Research and development | $23,596 | $21,616 | $1,980 | | General and administrative | $15,635 | $11,954 | $3,681 | | **Net loss** | **$(29,109)** | **$(31,128)** | **$2,019** | - The increase in collaboration revenue for both the three and six-month periods in 2025 was primarily due to revenue recognized under the new agreement with AbbVie and increased revenue from the Gilead agreement[147](index=147&type=chunk)[155](index=155&type=chunk) - R&D expenses increased in Q2 2025 due to higher clinical development costs for vilastobart and manufacturing activities for XTX501, partially offset by the discontinuation of the XTX202 program[148](index=148&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had **cash and cash equivalents of $121.6 million**[165](index=165&type=chunk)[178](index=178&type=chunk) - Management anticipates that existing cash will be sufficient to fund operating expenses and capital expenditure requirements through the end of the **third quarter of 2026**[178](index=178&type=chunk) - The company's recurring operating losses and negative cash flows raise substantial doubt about its ability to continue as a going concern, with future operations dependent on raising additional capital through warrant exercises, milestone payments, or other financing activities[178](index=178&type=chunk) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,501 | $9,451 | | Net cash used in investing activities | $(423) | $(21) | | Net cash provided by financing activities | $52,194 | $20,997 | [Quantitative and Qualitative Disclosures About Market Risk](index=70&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is a smaller reporting company and is not required to provide this information - As a smaller reporting company defined by Rule 12b-2 of the Exchange Act, Xilio Therapeutics is not required to provide the information under this item[191](index=191&type=chunk) [Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal control - The company's principal executive officer and principal financial officer evaluated the effectiveness of disclosure controls and procedures as of June 30, 2025, and concluded they were effective at a reasonable assurance level[193](index=193&type=chunk) - There were no changes in the company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[194](index=194&type=chunk) Part II Other Information [Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) Xilio faces substantial risks including going concern doubts, potential delisting, unproven early-stage products, clinical/manufacturing challenges, third-party reliance, and IP/regulatory hurdles [Risks Related to Financial Position and Capital Requirements](index=71&type=section&id=Risks%20Related%20to%20Our%20Limited%20Operating%20History,%20Financial%20Position%20and%20Capital%20Requirements) - Recurring losses from operations raise substantial doubt about the company's ability to continue as a going concern, potentially requiring cost reduction strategies like delaying or reducing R&D programs without additional capital[198](index=198&type=chunk)[199](index=199&type=chunk) - The company's common stock may be delisted from Nasdaq for failing to meet the minimum bid price requirement of **$1.00 per share**, which could negatively impact its ability to access capital markets[206](index=206&type=chunk) - The company has a history of significant operating losses, with an **accumulated deficit of $412.9 million** as of June 30, 2025, and expects these losses to continue for the foreseeable future[212](index=212&type=chunk) [Risks Related to Product Discovery and Development](index=81&type=section&id=Risks%20Related%20to%20the%20Discovery%20and%20Development%20of%20Our%20Product%20Candidates) - The company's business is highly dependent on the success of its current product candidates (vilastobart and XTX301), which are in early stages of development and require significant additional clinical work[224](index=224&type=chunk) - The company's technological approach to discovering and developing tumor-activated product candidates is unproven, with no guarantee it will lead to commercially valuable products[265](index=265&type=chunk) - Clinical trials may be substantially delayed, suspended, or terminated due to numerous unforeseen events, including regulatory hurdles, patient enrollment difficulties, and unfavorable results[239](index=239&type=chunk) - Interim and preliminary data from clinical trials may change as more patient data becomes available, and final data could be materially different[253](index=253&type=chunk) [Risks Related to Manufacturing and Supply](index=100&type=section&id=Risks%20Relating%20to%20Manufacturing%20and%20Supply) - Manufacturing biologics is complex and subject to problems like contamination or lot failures, which could delay development and commercialization programs[273](index=273&type=chunk)[276](index=276&type=chunk) - The company relies on a single CDMO, WuXi Biologics, based in China, exposing it to risks related to supply interruptions, regulatory compliance, and geopolitical tensions, including potential U.S. trade restrictions or sanctions[280](index=280&type=chunk)[285](index=285&type=chunk)[516](index=516&type=chunk) [Risks Related to Dependence on Third Parties](index=108&type=section&id=Risks%20Related%20to%20our%20Dependence%20on%20Third%20Parties) - The company relies on third-party CROs to conduct clinical trials, and their unsatisfactory performance could harm the business and delay programs[291](index=291&type=chunk)[292](index=292&type=chunk) - Success is dependent on collaborations with Gilead and AbbVie, where partners have significant discretion over development and commercialization, with no guarantee of success or future payments[295](index=295&type=chunk)[297](index=297&type=chunk) [Risks Related to Intellectual Property](index=124&type=section&id=Risks%20Related%20to%20Our%20Intellectual%20Property) - The company's success depends on its ability to obtain and maintain patent protection, as insufficient scope could allow competitors to develop similar products, adversely affecting commercialization[338](index=338&type=chunk)[339](index=339&type=chunk) - The company relies on in-licensed patent rights for its product candidates (e.g., from City of Hope and WuXi Biologics) and faces risks of losing these rights if it fails to comply with license obligations[359](index=359&type=chunk)[360](index=360&type=chunk) - The company may face third-party claims of intellectual property infringement, which could be expensive, time-consuming, and prevent or delay development efforts[384](index=384&type=chunk) [Risks Related to Regulatory Approval and Legal Compliance](index=152&type=section&id=Risks%20Related%20to%20Regulatory%20Approval%20and%20Other%20Legal%20Compliance%20Matters) - The regulatory approval process for biologics is expensive, lengthy, and uncertain, and the company, lacking experience in filing for marketing approval, may be unable to obtain it for its product candidates[411](index=411&type=chunk)[412](index=412&type=chunk) - Disruptions at the FDA and other government agencies due to funding cuts, shutdowns, or other events could hinder their ability to provide guidance and review submissions in a timely manner[423](index=423&type=chunk) - Current and future healthcare legislation, such as the Inflation Reduction Act (IRA), may increase the difficulty and cost of obtaining reimbursement and limit the prices for the company's products if approved[464](index=464&type=chunk)[476](index=476&type=chunk) - The company is subject to stringent and evolving data privacy laws (e.g., GDPR, CCPA), and failure to comply could result in significant fines and penalties[492](index=492&type=chunk)[498](index=498&type=chunk) [Other Information](index=211&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[582](index=582&type=chunk) [Exhibits](index=212&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed with the Form 10-Q, including corporate documents and officer certifications - The Exhibit Index lists key corporate and financial documents filed with the report, such as the Restated Certificate of Incorporation, Warrant Agreements, and Officer Certifications pursuant to the Sarbanes-Oxley Act[585](index=585&type=chunk)

Exhibit 99.1 MeiraGTx Reports Second Quarter 2025 Financial and Operational Results - Gained alignment with U.S. Food and Drug Administration (FDA) on the ongoing Phase 2 AQUAx2 randomized double-blind, placebo-controlled pivotal study in Grade 2/3 radiation-induced xerostomia (RIX) to support a potential Biologics License Application (BLA) filing; on track for potential data readout late 2026 - FDA Granted Regenerative Medicine Advanced Therapy (RMAT) designation for AAV-GAD for the treatment of Parkinson' ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for Q2 2025 reflect a significant performance downturn, resulting in a net loss, reduced cash, and substantial doubt about the company's ability to continue as a going concern [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets) As of June 30, 2025, total assets decreased to **$49.99 million** from **$54.70 million**, primarily due to a significant drop in cash, while stockholders' equity also declined Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $959 | $3,723 | | Total current assets | $22,800 | $25,076 | | Total assets | $49,985 | $54,696 | | Total current liabilities | $5,384 | $7,365 | | Total liabilities | $21,415 | $22,708 | | Total stockholders' equity | $28,571 | $31,988 | [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations) For Q2 and H1 2025, revenues plummeted, leading to significant net losses of **$4.19 million** and **$6.76 million** respectively, a sharp reversal from prior year's net income Three Months Ended June 30, Performance Comparison (in millions, except EPS) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $1.86 | $15.65 | -88.1% | | Gross Profit (Loss) | ($0.13) | $9.01 | -101.4% | | Net Income (Loss) | ($4.19) | $3.34 | -225.5% | | Diluted EPS | ($0.36) | $0.29 | -224.1% | Six Months Ended June 30, Performance Comparison (in millions, except EPS) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $4.33 | $27.05 | -84.0% | | Gross Profit | $0.97 | $13.64 | -92.9% | | Net Income (Loss) | ($6.76) | $3.85 | -275.7% | | Diluted EPS | ($0.59) | $0.41 | -243.9% | [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) For H1 2025, net cash decreased by **$2.76 million** due to significant cash usage in operations and investing, a stark reversal from the **$11.96 million** increase in H1 2024 driven by financing Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,515) | $(940) | | Net cash used in investing activities | $(249) | $(2,228) | | Net cash provided by financing activities | $0 | $15,131 | | **Net Change in Cash** | **$(2,764)** | **$11,963** | [Notes to the Condensed Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements) Key notes reveal substantial doubt about going concern due to net losses and low cash, highlight high customer concentration, significant related-party debt restructuring, and a complete pivot to freeze-dried candy products - The company has raised substantial doubt about its ability to continue as a going concern, citing an accumulated deficit of **$69.2 million**, a net loss of **$6.8 million** for the six-month period, and a cash balance of only **$959,416** as of June 30, 2025[66](index=66&type=chunk) - Management's plans to address the going concern issue include debt restructuring (completed in Q2 2025), cost-cutting, entering new overseas markets, and exploring potential partnerships, asset sales, or capital raises[67](index=67&type=chunk)[69](index=69&type=chunk) - The company has significant customer concentration risk, with its top three customers accounting for **48%**, **17%**, and **9%** of revenues for the six months ended June 30, 2025[48](index=48&type=chunk) - In April 2025, the company restructured **$2.5 million** in outstanding promissory notes held by related parties into new senior convertible notes maturing April 30, 2030, reclassifying the debt from current to long-term liabilities[71](index=71&type=chunk)[109](index=109&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the severe H1 2025 revenue decline and gross profit collapse to intense competitive pressure and customer loss, leading to deteriorated liquidity and reinforcing substantial doubt about the company's going concern ability [Overview and Key Factors](index=26&type=section&id=Overview%20and%20Key%20Factors) Sow Good, a freeze-dried candy manufacturer, faces significant competitive challenges from larger players impacting customer retention, market access, and revenue, alongside supply chain risks - The company operates in a highly competitive industry and has lost significant customers due to competitors using their market status and marketing spend to limit Sow Good's access to shelf space[159](index=159&type=chunk) - As of June 30, 2025, the company's products are sold in approximately **5,000** retail outlets in the U.S. and it has expanded distribution to the Middle East[151](index=151&type=chunk)[155](index=155&type=chunk) - Operational challenges, such as extreme summer heat in 2024, have previously disrupted transportation, increased inventory levels, and negatively impacted revenue and market reputation[163](index=163&type=chunk)[164](index=164&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Operations analysis reveals a dramatic downturn for Q2 and H1 2025, with revenues plummeting by **88%** and **84%** respectively, leading to significant gross losses primarily due to reduced demand and competitive pressure Comparison of Three Months Ended June 30 | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1.86M | $15.65M | -88% | | Gross Profit (Loss) | ($0.13M) | $9.01M | -101% | | Net Operating (Loss) Income | ($4.07M) | $4.89M | -183% | Comparison of Six Months Ended June 30 | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $4.33M | $27.05M | -84% | | Gross Profit | $0.97M | $13.64M | -93% | | Net Operating (Loss) Income | ($6.49M) | $5.81M | -212% | [Liquidity, Going Concern and Capital Resources](index=32&type=section&id=Liquidity,%20Going%20Concern%20and%20Capital%20Resources) The company's liquidity is precarious with cash at **$959.4 thousand**, insufficient for the next twelve months, reinforcing substantial doubt about its going concern ability and necessitating additional financing - As of June 30, 2025, the company had only **$959.4 thousand** in cash and cash equivalents, a decrease of **$2.8 million** since December 31, 2024[199](index=199&type=chunk) - Management explicitly states that the company may not have sufficient funds to sustain operations for the next twelve months, which raises substantial doubt about its ability to continue as a going concern[199](index=199&type=chunk) - In April 2025, the company restructured **$2.7 million** of outstanding current debt into long-term convertible notes maturing in 2030, improving its short-term liquidity profile on paper[200](index=200&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports minimal commodity price and interest rate risks but anticipates increasing foreign currency risk with expanding international operations in Mexico, Colombia, and China - The company does not expect significant effects from commodity price risk or interest rate risk[213](index=213&type=chunk)[214](index=214&type=chunk) - Foreign currency risk is expected to increase as the company's foreign operations in markets like Mexico, Colombia, and China grow[215](index=215&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, management concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting during the period - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[216](index=216&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the six months ended June 30, 2025[217](index=217&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any legal proceedings expected to have a material adverse effect on its financial condition or operations - The company is not currently involved in any material legal proceedings[220](index=220&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section highlights critical risks including substantial doubt about going concern, potential Nasdaq delisting due to minimum bid price non-compliance, and adverse impacts from significant tariffs - There is substantial doubt about the company's ability to continue as a going concern, as its cash of **$959.4 thousand** is not sufficient to fund operations for the next twelve months[222](index=222&type=chunk) - On May 14, 2025, the company received a non-compliance notice from Nasdaq for its stock's closing bid price being below **$1.00** for 30 consecutive trading days, with a compliance deadline of November 10, 2025[223](index=223&type=chunk) - The company faces risks from potential significant tariffs, which could materially increase costs, reduce margins, and disrupt the sourcing of raw materials[221](index=221&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[229](index=229&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during the period - No directors or officers adopted or terminated any Rule 10b5-1 trading plans[232](index=232&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications and incorporated by reference documents

Exhibit 99.1 Research and Development Expenses: Research and development expenses were $7.0 million for the second quarter of 2025 compared to $5.0 million for the second quarter of 2024. The increase was primarily due to an increase in manufacturing costs in support of the Company's CAN- 2409 programs, partially offset by a decrease in employee-related expenses, which was driven primarily from a reduction in stock-based compensation expense. Research and development expenses included a non-cash stock compe ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2025. ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Commission file number: 001-35376 OBLONG, INC. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Id ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Synergy CHC Corp.'s unaudited condensed interim financial statements for Q2 2025 and 2024, prepared under US GAAP [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Change (vs. Dec 31, 2024) ($) | | :-------------------------------- | :-------------- | :---------------- | :-------------------------- | | Cash and cash equivalents | $1,458,561 | $687,920 | +$770,641 | | Accounts receivable, net | $7,069,889 | $5,321,037 | +$1,748,852 | | Inventory, net | $2,364,158 | $1,716,552 | +$647,606 | | Total Current Assets | $19,509,679 | $16,059,768 | +$3,449,911 | | Total Assets | $19,726,346 | $16,343,101 | +$3,383,245 | | Short term loans payable, net | $1,894,857 | $7,725,272 | -$5,830,415 | | Total Current Liabilities | $7,126,547 | $17,184,369 | -$10,057,822 | | Notes payable, long-term | $24,978,999 | $7,457,022 | +$17,521,977 | | Total Liabilities | $32,105,546 | $32,974,444 | -$868,898 | | Total Stockholders' Deficit | $(12,379,200) | $(16,631,343) | +$4,252,143 | [Unaudited Condensed Consolidated Statements of Income and Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Income Statement Highlights (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :----------------- | :------------ | :------------ | :----------- | | Product Sales | $6,734,996 | $8,024,840 | -16.08 | | License Revenue | $1,400,000 | - | N/A | | Total Revenue | $8,134,996 | $8,024,840 | +1.37 | | Gross profit | $6,238,605 | $5,575,950 | +11.89 | | Operating expenses | $4,614,870 | $3,992,358 | +15.59 | | Net income after tax | $1,473,237 | $655,186 | +124.86 | | Net income per share – basic | $0.17 | $0.09 | +88.89 | Income Statement Highlights (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :----------------- | :------------- | :------------- | :----------- | | Product Sales | $13,405,530 | $17,436,703 | -23.12 | | License Revenue | $2,900,000 | - | N/A | | Total Revenue | $16,305,530 | $17,436,703 | -6.59 | | Gross profit | $12,402,626 | $12,350,674 | +0.42 | | Operating expenses | $8,831,188 | $8,958,753 | -1.42 | | Net income after tax | $2,349,501 | $1,235,716 | +90.14 | | Net income per share – basic | $0.27 | $0.17 | +58.82 | [Unaudited Condensed Consolidated Statement of Stockholders' Deficit](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Stockholders%27%20Deficit) Stockholders' Deficit Changes (Six Months Ended June 30, 2025) | Item | Amount ($) | | :---------------------------------------------------------------- | :----------- | | Balance as of December 31, 2024 | $(16,631,343) | | Foreign currency translation loss | $(1,935) | | Issuance of common stock for loan financing | $117,648 | | Net income (March 31, 2025) | $876,264 | | Foreign currency transaction gain | $39,874 | | Issuance of pre-funded warrants for settlement of shareholder notes payable | $899,993 | | Issuance of common stock for modification of notes payable | $847,062 | | Net income (June 30, 2025) | $1,473,237 | | Balance as of June 30, 2025 | $(12,379,200) | - The total stockholders' deficit improved from **$(16,631,343)** at December 31, 2024, to **$(12,379,200)** at June 30, 2025, primarily due to net income and equity issuances for debt settlement and financing[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Highlights (Six Months Ended June 30) | Cash Flow Activity | 2025 ($) | 2024 ($) | Change (YoY) ($) | | :----------------------------- | :------------ | :------------ | :----------- | | Net cash used in operating activities | $(899,731) | $(1,140,005) | +$240,274 | | Net cash from investing activities | $0 | $0 | $0 | | Net cash provided by financing activities | $1,632,433 | $407,391 | +$1,225,042 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $770,641 | $(545,241) | +$1,315,882 | | Cash and restricted cash, end of period | $1,558,561 | $187,293 | +$1,371,268 | - The Company saw a **significant increase** in net cash provided by financing activities in 2025, primarily from new loans, leading to a **positive net increase** in cash, cash equivalents, and restricted cash, compared to a decrease in the prior year[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Note 1 – Nature of the Business](index=11&type=section&id=Note%201%20%E2%80%93%20Nature%20of%20the%20Business) - Synergy CHC Corp. is a consumer health care company focused on building a portfolio of best-in-class consumer product brands through organic growth and acquisitions[17](index=17&type=chunk) - The Company incorporated Synergy CHC Mexico in May 2025 to expand into the Mexican market[18](index=18&type=chunk) [Note 2 – Summary of Significant Accounting Policies](index=11&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) - The unaudited condensed consolidated financial statements are prepared in conformity with US GAAP, with all adjustments considered necessary for fair presentation included[19](index=19&type=chunk) - A 1-for-11.9 reverse stock split was effected on September 11, 2024, with all per-share information retroactively adjusted[21](index=21&type=chunk) - Management concluded that factors such as net income, working capital surplus, debt refinancing, and options for capital raises alleviate substantial doubt about the Company's ability to continue as a going concern for the next twelve months[69](index=69&type=chunk)[70](index=70&type=chunk) - An immaterial error related to Treasury Shares was corrected, resulting in a reclassification of **$127,500** and a revision of earnings per share for prior periods[71](index=71&type=chunk)[74](index=74&type=chunk) [Note 3 – Income Taxes](index=22&type=section&id=Note%203%20%E2%80%93%20Income%20Taxes) Income Tax Expense | Period | 2025 ($) | 2024 ($) | | :---------------------- | :----------- | :----------- | | Three months ended June 30 | $(190,107) | $(179,382) | | Six months ended June 30 | $(178,647) | $(306,571) | - The Company has net operating loss carryforwards of approximately **$48.7 million** (June 30, 2025) and **$50.8 million** (December 31, 2024), but a **100% valuation allowance** has been established due to uncertainty of realization[83](index=83&type=chunk) [Note 4 – Accounts Receivable](index=22&type=section&id=Note%204%20%E2%80%93%20Accounts%20Receivable) Accounts Receivable, Net | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :---------------------- | :------------ | :---------------- | | Trade accounts receivable | $7,069,889 | $5,321,037 | | Other receivables | $2,025,094 | $1,999,637 | | Total accounts receivable, net | $9,094,983 | $7,320,674 | - The allowance for doubtful accounts was **$0** for both periods[84](index=84&type=chunk) [Note 5 – Prepaid Expenses](index=23&type=section&id=Note%205%20%E2%80%93%20Prepaid%20Expenses) Prepaid Expenses Breakdown | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :---------------------------- | :------------ | :---------------- | | Advances for inventory | $260,572 | $605,913 | | Prepaid consulting fees, related party | $695,587 | $296,981 | | Advertising and promotions | $859,920 | $869,920 | | Total | $2,064,094 | $1,859,563 | [Note 6 – Concentration of Credit Risk](index=23&type=section&id=Note%206%20%E2%80%93%20Concentration%20of%20Credit%20Risk) - Two customers accounted for **84%** of trade accounts receivable at June 30, 2025, and three customers accounted for approximately **80%** of net revenue for the six months ended June 30, 2025[87](index=87&type=chunk)[88](index=88&type=chunk) - Two vendors accounted for **58%** of accounts payable at June 30, 2025, and three suppliers accounted for approximately **47%** of purchases for the six months ended June 30, 2025[89](index=89&type=chunk)[90](index=90&type=chunk) [Note 7 – Inventory](index=24&type=section&id=Note%207%20%E2%80%93%20Inventory) Inventory Breakdown | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :------------- | :------------ | :---------------- | | Finished goods | $2,213,770 | $1,578,561 | | Components | $105,388 | $92,991 | | Raw materials | $45,000 | $45,000 | | Total inventory | $2,364,158 | $1,716,552 | - No inventory write-offs occurred during the six months ended June 30, 2025 and 2024[92](index=92&type=chunk) [Note 8 – Intangible Assets](index=24&type=section&id=Note%208%20%E2%80%93%20Intangible%20Assets) Intangible Assets, Net | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------------ | :------------ | :---------------- | | License Fee | $450,000 | $450,000 | | Less accumulated amortization | $(233,333) | $(166,667) | | Intangible assets, net | $216,667 | $283,333 | - Amortization expense for the six months ended June 30, 2025, was **$66,666**[93](index=93&type=chunk) [Note 9 – Related Party Transactions](index=24&type=section&id=Note%209%20%E2%80%93%20Related%20Party%20Transactions) Related Party Balances | Item | June 30, 2025 ($) | December 31, 2024 ($) | | :--------------------------------- | :------------ | :---------------- | | Loan receivable (related party) | $4,427,883 | $4,375,059 | | Prepaid consulting fees, related party | $695,587 | $296,981 | | Royalties, shareholder | $92,955 | $88,644 | - The Company repaid a **$135,000** advance from a related party during the six months ended June 30, 2025[95](index=95&type=chunk) - Loans with Knight Therapeutics Inc., a shareholder, were modified and subsequently repaid in May and June 2025[100](index=100&type=chunk)[106](index=106&type=chunk) [Note 10 – Accounts Payable and Accrued Liabilities](index=26&type=section&id=Note%2010%20%E2%80%93%20Accounts%20Payable%20and%20Accrued%20Liabilities) Accounts Payable and Accrued Liabilities | Category | June 30, 2025 ($) | December 31, 2024 ($) | | :------------------- | :------------ | :---------------- | | Accrued payroll | $195,889 | $76,399 | | Legal fees | $214,829 | $13,722 | | Commissions | - | $450,208 | | Manufacturers | $1,635,113 | $409,744 | | Promotions | $823,174 | $2,570,126 | | Total | $4,960,331 | $5,191,868 | [Note 11 – Notes Payable](index=27&type=section&id=Note%2011%20%E2%80%93%20Notes%20Payable) Notes Payable Summary | Loan Type | June 30, 2025 ($) | December 31, 2024 ($) | | :-------------------------------------- | :------------ | :---------------- | | $10,000,000 August 9, 2017 Loan (Knight) | $0 | $12,333,052 | | $2,000,000 and $6,000,000 Notes | $9,794,165 | $9,794,165 | | $5,450,000 December 28, 2023 Loan | $0 | $2,802,445 | | $3,020,824 March 27, 2024 Loan | $1,400,000 | $2,302,824 | | $17,500,000 May 2025 Loan | $17,500,000 | - | | Total (net of discount) | $26,873,856 | $27,515,346 | - The **$10 million** loan from Knight Therapeutics Inc. was satisfied in May 2025 through a **$10 million** cash repayment, a **$1.2 million** early payment discount, and a **$1.5 million** equity conversion, resulting in a gain of **$1,813,865**[106](index=106&type=chunk)[107](index=107&type=chunk) - The **$2 million** and **$6 million** loans became subordinated debt with no maturity date, subject to specific interest and principal payment conditions[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - A new **$17.5 million** term loan credit agreement was entered into with ACP Agency, LLC in May 2025, secured by company assets, with proceeds used to repay existing debt and for working capital[130](index=130&type=chunk)[134](index=134&type=chunk) [Note 12 – Stockholders' Deficit](index=32&type=section&id=Note%2012%20%E2%80%93%20Stockholders%27%20Deficit) - The Company issued **30,360 shares** for loan financing, **428,570 pre-funded warrants** (fully exercised) for partial debt settlement, and **441,178 shares** for modification of notes payable during 2025[138](index=138&type=chunk)[139](index=139&type=chunk) Common Stock Issued and Outstanding | Metric | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Shares issued | 9,621,926 | 8,721,818 | | Shares outstanding | 9,441,853 | 8,541,745 | [Note 13 – Commitments and Contingencies](index=33&type=section&id=Note%2013%20%E2%80%93%20Commitments%20and%20Contingencies) - Management believes there are no current legal matters that would have a material effect on the Company's financial position or results of operations[141](index=141&type=chunk) [Note 14 – Stock Options and Warrants](index=33&type=section&id=Note%2014%20%E2%80%93%20Stock%20Options%20and%20Warrants) Stock Options and Warrants Outstanding (June 30, 2025) | Instrument | Number Outstanding | Weighted Average Exercise Price ($) | | :--------- | :----------------- | :---------------------------------- | | Options | 252,102 | $6.15 | | Warrants | 103,500 | $11.70 | - The Company issued **428,570 pre-funded warrants** valued at **$899,993** in June 2025 to settle a loan payable to a shareholder, which were fully exercised during the period[144](index=144&type=chunk)[145](index=145&type=chunk) [Note 15 – Segments](index=34&type=section&id=Note%2015%20%E2%80%93%20Segments) - The Company operates as one operating segment, deriving revenue from the sale of nutraceuticals[146](index=146&type=chunk) Net Sales by Geography (Three Months Ended June 30) | Geography | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------------- | :------------ | :------------ | :----------- | | United States | $7,954,326 | $6,705,486 | +18.62 | | Foreign countries | $180,670 | $1,319,354 | -86.31 | Net Sales by Product Group (Six Months Ended June 30) | Product Group | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------------- | :------------- | :------------- | :----------- | | Nutraceuticals | $13,405,530 | $17,436,703 | -23.12 | | License Revenue | $2,900,000 | - | N/A | Net Sales by Major Sales Channel (Six Months Ended June 30) | Sales Channel | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :------------ | :------------- | :------------- | :----------- | | Online | $4,836,284 | $2,150,177 | +124.92 | | Retail | $11,469,246 | $15,286,526 | -25.09 | [Note 16 – Subsequent Events](index=36&type=section&id=Note%2016%20%E2%80%93%20Subsequent%20Events) - Subsequent to June 30, 2025, the Company repaid **$1,400,000** of principal on the March 27, 2024 loan, **$416,614** of principal and **$69,386** of interest on the February 2025 loan, **$92,942** of interest on the March 8, 2022 loan, and **$379,371** of interest on the May 2025 loan[153](index=153&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Synergy CHC Corp.'s financial performance and condition for Q2 2025 and 2024 [Special Note Regarding Forward-Looking Statements](index=37&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) - This report includes forward-looking statements that involve risks and uncertainties, and actual results may differ materially from expectations[155](index=155&type=chunk) [Overview](index=37&type=section&id=Overview) - Synergy CHC Corp. is a provider of consumer health care, beauty, and lifestyle products, with core brands FOCUSfactor (brain health supplement) and Flat Tummy (weight management products)[157](index=157&type=chunk) [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) - The Company uses **EBITDA** (earnings before interest, taxes, depreciation, and amortization) as a non-GAAP financial measure to evaluate business relationships and operating performance[159](index=159&type=chunk) EBITDA Reconciliation | Metric | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $1,473,237 | $655,186 | | Interest expense | $2,107,714 | $745,528 | | Income tax expense | $190,107 | $179,382 | | Depreciation and amortization | $33,334 | $33,334 | | **EBITDA** | **$3,804,013** | **$1,613,056** | | Metric | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 ($) | | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $2,349,501 | $1,235,716 | | Interest expense | $3,203,083 | $1,855,508 | | Income tax expense | $178,647 | $306,571 | | Depreciation and amortization | $66,667 | $66,667 | | **EBITDA** | **$5,783,637** | **$3,463,701** | [Results of Operations for the Three Months Ended June 30, 2025 and June 30, 2024](index=38&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) This section analyzes Synergy CHC Corp.'s financial performance for the three months ended June 30, 2025 and 2024 [Revenue](index=38&type=section&id=Revenue%20(Three%20Months)) Revenue (Three Months Ended June 30) | Category | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------------- | :------------ | :------------ | :----------- | | Product Sales | $6,734,996 | $8,024,840 | -16.08 | | License Revenue | $1,400,000 | - | N/A | | Total Revenue | $8,134,996 | $8,024,840 | +1.37 | - Nutraceuticals revenue decreased due to a new product sell-in in 2024 that did not repeat in 2025, offset by new license revenue for foreign expansion[163](index=163&type=chunk) [Cost of Revenue](index=39&type=section&id=Cost%20of%20Revenue%20(Three%20Months)) Cost of Revenue (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :------------- | :------------ | :------------ | :----------- | | Cost of revenue | $1,896,391 | $2,448,890 | -22.60 | - The decrease in cost of sales was primarily due to the decrease in revenue[164](index=164&type=chunk) [Gross Profit](index=39&type=section&id=Gross%20Profit%20(Three%20Months)) Gross Profit (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------- | :------------ | :------------ | :----------- | | Gross profit | $6,238,605 | $5,575,950 | +11.89 | | Gross margin (%) | 77 | 69 | +8 pp | - The increase in gross profit and margin is directly related to the new license revenue[165](index=165&type=chunk) [Operating Expenses](index=39&type=section&id=Operating%20Expenses%20(Three%20Months)) [Selling and Marketing Expenses](index=39&type=section&id=Selling%20and%20Marketing%20Expenses%20(Three%20Months)) Selling and Marketing Expenses (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------------------- | :------------ | :------------ | :----------- | | Selling and marketing expenses | $3,062,211 | $3,055,186 | +0.23 | [General and Administrative Expenses](index=39&type=section&id=General%20and%20Administrative%20Expenses%20(Three%20Months)) General and Administrative Expenses (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :----------------------------- | :------------ | :------------ | :----------- | | General and administrative expenses | $1,519,325 | $903,838 | +68.10 | - The increase in general and administrative expenses is primarily due to public market expenses[167](index=167&type=chunk) [Depreciation and Amortization Expenses](index=39&type=section&id=Depreciation%20and%20Amortization%20Expenses%20(Three%20Months)) Depreciation and Amortization Expenses (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :--------------------------- | :---------- | :---------- | :----------- | | Depreciation and amortization | $33,334 | $33,334 | 0.00 | [Other Income and Expenses](index=39&type=section&id=Other%20Income%20and%20Expenses%20(Three%20Months)) Other Income and Expenses (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------------------------------------- | :------------ | :------------ | :----------- | | Interest expense | $2,107,714 | $745,528 | +182.72 | | Gain on settlement of loans | $(2,154,522) | - | N/A | | Total other (income) expense | $(39,609) | $749,024 | -105.29 | - The increase in interest expense is primarily due to an advance, shares issued related to the modification of notes payable, and a new May 2025 loan[169](index=169&type=chunk) [Net Income](index=40&type=section&id=Net%20Income%20(Three%20Months)) Net Income (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------- | :------------ | :------------ | :----------- | | Net income | $1,473,237 | $655,186 | +124.86 | - Net income significantly increased due to a gain on settlement of loans[170](index=170&type=chunk) [Results of Operations for the Six Months Ended June 30, 2025 and June 30, 2024](index=40&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%20June%2030%2C%202024) This section analyzes Synergy CHC Corp.'s financial performance for the six months ended June 30, 2025 and 2024 [Revenue](index=40&type=section&id=Revenue%20(Six%20Months)) Revenue (Six Months Ended June 30) | Category | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------------- | :------------- | :------------- | :----------- | | Product Sales | $13,405,530 | $17,436,703 | -23.12 | | License Revenue | $2,900,000 | - | N/A | | Total Revenue | $16,305,530 | $17,436,703 | -6.59 | - Nutraceuticals revenue decreased due to a non-recurring new product sell-in in 2024, partially offset by new license revenue[172](index=172&type=chunk) [Cost of Revenue](index=40&type=section&id=Cost%20of%20Revenue%20(Six%20Months)) Cost of Revenue (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :------------- | :------------ | :------------ | :----------- | | Cost of revenue | $3,902,904 | $5,086,029 | -23.26 | - The decrease in cost of revenue was primarily due to the overall decrease in revenue[173](index=173&type=chunk) [Gross Profit](index=40&type=section&id=Gross%20Profit%20(Six%20Months)) Gross Profit (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------- | :------------- | :------------- | :----------- | | Gross profit | $12,402,626 | $12,350,674 | +0.42 | | Gross margin (%) | 76 | 71 | +5 pp | - The slight increase in gross profit and improved gross margin are related to the new license revenue[174](index=174&type=chunk) [Operating Expenses](index=40&type=section&id=Operating%20Expenses%20(Six%20Months)) [Selling and Marketing Expenses](index=40&type=section&id=Selling%20and%20Marketing%20Expenses%20(Six%20Months)) Selling and Marketing Expenses (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------------------- | :------------ | :------------ | :----------- | | Selling and marketing expenses | $5,938,482 | $6,639,863 | -10.57 | - The decrease in selling and marketing expenses is primarily due to lower revenue and improved management of promotions[175](index=175&type=chunk) [General and Administrative Expenses](index=40&type=section&id=General%20and%20Administrative%20Expenses%20(Six%20Months)) General and Administrative Expenses (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :----------------------------- | :------------ | :------------ | :----------- | | General and administrative expenses | $2,826,039 | $2,252,223 | +25.48 | - The increase in general and administrative expenses is primarily due to public market expenses[176](index=176&type=chunk) [Depreciation and Amortization Expenses](index=41&type=section&id=Depreciation%20and%20Amortization%20Expenses%20(Six%20Months)) Depreciation and Amortization Expenses (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :--------------------------- | :---------- | :---------- | :----------- | | Depreciation and amortization | $66,667 | $66,667 | 0.00 | [Other Income and Expenses](index=41&type=section&id=Other%20Income%20and%20Expenses%20(Six%20Months)) Other Income and Expenses (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :---------------------------------------- | :------------ | :------------ | :----------- | | Interest expense | $3,203,083 | $1,855,508 | +72.63 | | Gain on settlement of loans | $(2,154,522) | - | N/A | | Total other expense | $1,043,290 | $1,849,634 | -43.60 | - The increase in interest expense is primarily due to an advance taken in 2025, shares issued related to the modification of notes payable, and a new May 2025 loan[178](index=178&type=chunk) [Net Income](index=41&type=section&id=Net%20Income%20(Six%20Months)) Net Income (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) (%) | | :-------- | :------------ | :------------ | :----------- | | Net income | $2,349,501 | $1,235,716 | +90.14 | - Net income significantly increased due to lower operating expenses and a gain on loan settlements[179](index=179&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses Synergy CHC Corp.'s cash position, cash flows, and overall capital management [Overview](index=41&type=section&id=Overview%20(Liquidity)) - As of June 30, 2025, the Company had **$1,458,561** in cash on hand and **$100,000** in restricted cash for credit card collateral[180](index=180&type=chunk) [Cash Flows from Operating Activities](index=41&type=section&id=Cash%20Flows%20from%20Operating%20Activities) Net Cash Used in Operating Activities (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) ($) | | :----------------------------------- | :------------ | :------------ | :----------- | | Net cash used in operating activities | $(899,731) | $(1,140,005) | +$240,274 | - The decrease in net cash used in operating activities was influenced by adjustments including amortization of debt discount, stock issued for notes payable modification, and a gain on debt settlement[182](index=182&type=chunk) [Cash Flows from Investing Activities](index=43&type=section&id=Cash%20Flows%20from%20Investing%20Activities) - The Company used **$0** in net cash for investing activities for both the six months ended June 30, 2025 and 2024[184](index=184&type=chunk) [Cash Flows from Financing Activities](index=43&type=section&id=Cash%20Flows%20from%20Financing%20Activities) Net Cash Provided by Financing Activities (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change (YoY) ($) | | :----------------------------------- | :------------ | :------------ | :----------- | | Net cash provided by financing activities | $1,632,433 | $407,391 | +$1,225,042 | - The increase in net cash provided by financing activities was primarily attributable to proceeds from new notes payable, partially offset by repayments of notes payable[185](index=185&type=chunk)[186](index=186&type=chunk) [Key Near-Term Initiatives](index=43&type=section&id=Key%20Near-Term%20Initiatives) - The Company plans to organically grow existing product lines, develop and launch new products, expand into new markets, and pursue additional strategic acquisitions[187](index=187&type=chunk) [Off-Balance Sheet Arrangements](index=43&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company had no off-balance sheet arrangements during the six months ended June 30, 2025, or the year ended December 31, 2024[188](index=188&type=chunk) [Inflation](index=43&type=section&id=Inflation) - The effect of inflation on the Company's operating results was not significant in the six months ended June 30, 2025 or 2024[189](index=189&type=chunk) [Critical Accounting Estimates](index=43&type=section&id=Critical%20Accounting%20Estimates) - Critical accounting estimates include those related to revenue recognition and accounts receivable allowances[190](index=190&type=chunk) [Recent Accounting Pronouncements](index=43&type=section&id=Recent%20Accounting%20Pronouncements) - Information on recent accounting pronouncements is detailed in Note 2 to the unaudited condensed consolidated financial statements[191](index=191&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Synergy CHC Corp. has elected not to provide market risk disclosures - As a smaller reporting company, Synergy CHC Corp. has elected not to provide quantitative and qualitative disclosures about market risk[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded Synergy CHC Corp.'s disclosure controls were not effective as of June 30, 2025 [Evaluation of Disclosure Controls and Procedures](index=44&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management concluded that the Company's disclosure controls and procedures were not effective as of June 30, 2025, to ensure material information is recorded, processed, summarized, and reported timely[193](index=193&type=chunk) [Changes in Internal Control Over Financial Reporting](index=44&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) - There have been no material changes in internal control over financial reporting during the quarter ended June 30, 2025[194](index=194&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) Synergy CHC Corp. is not a party to any material legal proceedings - The Company is not a party to any material legal proceedings, but may be involved in routine litigation[197](index=197&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Synergy CHC Corp. is not required to include risk factors - As a smaller reporting company, the Company is not required to include risk factors in this report, and no material changes to previously disclosed risk factors have occurred[198](index=198&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - No unregistered sales of equity securities or use of proceeds were reported for the period[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) [Item 3. Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Synergy CHC Corp. reported no defaults upon senior securities - No defaults upon senior securities were reported[202](index=202&type=chunk) [Item 4. Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Synergy CHC Corp - This item is not applicable to the Company[203](index=203&type=chunk) [Item 5. Other Information](index=45&type=section&id=Item%205.%20Other%20Information) No other material information was reported, and no Rule 10b5-1 trading arrangements were adopted - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the quarter ended June 30, 2025[205](index=205&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of, or incorporated by reference into, the Quarterly Report - The report includes various exhibits such as merger agreements, asset purchase agreements, articles of incorporation, credit agreements, and certifications[206](index=206&type=chunk)[207](index=207&type=chunk) SIGNATURES [Signature Block](index=47&type=section&id=Signature%20Block) The Quarterly Report was signed by Jack Ross, CEO and Chairman, on August 14, 2025 - The report was signed by Jack Ross, Chief Executive Officer and Chairman, on August 14, 2025[212](index=212&type=chunk)

[Phase 2b Trial Results for Repibresib Gel in Nonsegmental Vitiligo and Company Strategy](index=1&type=section&id=Phase%202b%20Trial%20Results%20for%20Repibresib%20Gel%20in%20Nonsegmental%20Vitiligo%20and%20Company%20Strategy) This section details the Phase 2b trial outcomes for Repibresib gel in nonsegmental vitiligo, including efficacy, safety, and the company's strategic decision to seek a partner for its continued development [Executive Summary of Trial Results and Company Actions](index=1&type=section&id=Executive%20Summary%20of%20Trial%20Results%20and%20Company%20Actions) The Phase 2b trial for Repibresib gel in nonsegmental vitiligo did not meet its primary (F-VASI50) or key secondary (F-VASI75) endpoints, leading VYNE to terminate the extension phase and seek an external partner - Trial did not meet primary endpoint (F-VASI50) or key secondary endpoint (F-VASI75)[1](index=1&type=chunk)[2](index=2&type=chunk)[4](index=4&type=chunk) - Repibresib 3% showed nominally statistically significant effects in percent change from baseline in **F-VASI (-43.6% vs. Vehicle: -25.6%)** and **T-VASI (-28.3% vs. Vehicle: -16.2%)**[2](index=2&type=chunk)[4](index=4&type=chunk) - Company believes results were impacted by unusually high vehicle effect and higher-than-expected dropout rate in active arms (**Repibresib 3%: 36.6%; Vehicle: 10.6%**)[2](index=2&type=chunk)[4](index=4&type=chunk) - VYNE will terminate the extension phase of the trial and seek an external partner for Repibresib[2](index=2&type=chunk)[4](index=4&type=chunk) - The company remains confident in its InhiBET BET inhibitor platform[4](index=4&type=chunk) [Phase 2b Trial Design and Methodology](index=1&type=section&id=Phase%202b%20Trial%20Design%20and%20Methodology) The Phase 2b trial was a randomized, double-blind, vehicle-controlled, multi-center study evaluating Repibresib gel at 1%, 2%, and 3% concentrations in 177 subjects with nonsegmental vitiligo - Trial design: Randomized, double-blind, vehicle-controlled, multi-center[3](index=3&type=chunk) - Subjects: **177 subjects** (mITT population) with nonsegmental vitiligo[3](index=3&type=chunk) - Dosing: Repibresib gel at **1%, 2%, and 3% concentrations**, once daily (QD)[3](index=3&type=chunk) - Primary endpoint: Proportion of subjects achieving F-VASI50 at Week 24 versus vehicle[3](index=3&type=chunk)[5](index=5&type=chunk) - Key secondary endpoints: Proportion of subjects achieving F-VASI75 at Week 24, percent change from baseline in F-VASI score at week 24[3](index=3&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) - Exploratory endpoint: Percent change from baseline in T-VASI score at week 24[3](index=3&type=chunk)[7](index=7&type=chunk) [Detailed Efficacy Results](index=2&type=section&id=Detailed%20Efficacy%20Results) This section details the specific numerical outcomes for the trial's efficacy endpoints, showing that while primary and key secondary endpoints were not met, the 3% Repibresib dose significantly improved percent change from baseline for F-VASI and T-VASI Primary Endpoint: Proportion of Subjects Achieving F-VASI50 at Week 24 | Endpoint at Week 24 | Repibresib 3% | Repibresib 2% | Repibresib 1% | Vehicle | | :------------------ | :------------ | :------------ | :------------ | :------ | | Proportion of Subjects Achieving F-VASI50 | 19.5% | 16.3% | 17.4% | 23.4% | | P-Value | 0.1245 | 0.6497 | 0.9718 | | Key Secondary Endpoint: Proportion of Subjects Achieving F-VASI75 at Week 24 | Endpoint at Week 24 | Repibresib 3% | Repibresib 2% | Repibresib 1% | Vehicle | | :------------------ | :------------ | :------------ | :------------ | :------ | | Proportion of Subjects Achieving F-VASI75 | 9.8% | 7.0% | 10.9% | 6.4% | | P-Value | 0.1468 | 0.4096 | 0.2946 | | Key Secondary Endpoint: Percent Change from Baseline in F-VASI at Week 24 | Endpoint at Week 24 | Repibresib 3% | Repibresib 2% | Repibresib 1% | Vehicle | | :------------------ | :------------ | :------------ | :------------ | :------ | | Mean Percent Change from Baseline in F-VASI, % (SD) | -43.6 (5.7) | -25.7 (5.7) | -30.2 (5.2) | -25.6 (4.9) | | P-Value | 0.0020 | 0.9892 | 0.4002 | | Exploratory Endpoint: Percent Change from Baseline in T-VASI at Week 24 | Endpoint at Week 24 | Repibresib 3% | Repibresib 2% | Repibresib 1% | Vehicle | | :------------------ | :------------ | :------------ | :------------ | :------ | | Mean Percent Change from Baseline in T-VASI, % (SD) | -28.3 (6.1) | -15.2 (6.1) | -16.4 (5.2) | -16.2 (4.9) | | P-Value | 0.0436 | 0.8757 | 0.9670 | | [Safety and Tolerability Profile](index=2&type=section&id=Safety%20and%20Tolerability%20Profile) Repibresib gel exhibited a higher rate of mostly mild, cutaneous treatment-emergent adverse events compared to vehicle, with application site pain being the most common, and no increased risk of thrombocytopenia or GI-related serious adverse events - Higher rate of treatment emergent adverse events (TEAE) for Repibresib gel compared to vehicle[8](index=8&type=chunk) - Most common TEAEs (>5%) were cutaneous, with application site pain being the most frequent (**Repibresib 3%: 14.0%; Vehicle: 3.8%**)[8](index=8&type=chunk) - **8 subjects** receiving Repibresib gel discontinued due to an AE, compared to none in the vehicle group[8](index=8&type=chunk) - Majority of skin-related TEAEs were mild (**76.0%**) and resolved during the study, with no clear dose-dependent increase in frequency[8](index=8&type=chunk) - One non-drug-related serious adverse event (cholelithiasis without obstruction) occurred in the Repibresib 1% cohort[8](index=8&type=chunk) - No increased risk of thrombocytopenia or GI-related serious adverse events was observed[8](index=8&type=chunk) [Financial Update](index=1&type=section&id=Financial%20Update) As of June 30, 2025, VYNE Therapeutics expects to report unaudited cash, cash equivalents, and investments of approximately $39.6 million, subject to finalization of financial results Unaudited Cash Position (as of June 30, 2025) | Metric | Amount | | :-------------------------------- | :------------- | | Cash, cash equivalents and investments | ~$39.6 million | - The cash estimate is preliminary and subject to change pending the actual results of, and completion of, the Company's condensed consolidated financial statements for the quarter ended June 30, 2025[14](index=14&type=chunk) [Product Candidate Information](index=2&type=section&id=Product%20Candidate%20Information) This section provides an overview of Repibresib, a pan-bromodomain BET inhibitor, and VYN202, an oral small molecule BET inhibitor, highlighting their design and therapeutic potential [About Repibresib](index=2&type=section&id=About%20Repibresib) Repibresib is a pan-bromodomain BET inhibitor designed for local administration as a "soft" drug, aiming for low systemic exposure to treat inflammatory conditions and showing preclinical efficacy - Repibresib is a pan-bromodomain BET inhibitor[9](index=9&type=chunk) - Designed for local administration as a "soft" drug to address inflammatory cell signaling pathways[9](index=9&type=chunk) - Provides low systemic exposure[9](index=9&type=chunk) - Produced consistent reductions in pro-inflammatory and disease-related biomarkers and improvements in disease severity in preclinical models[9](index=9&type=chunk) [About VYN202](index=2&type=section&id=About%20VYN202) VYN202 is an innovative, oral small molecule BET inhibitor with potential class-leading selectivity for BD2 versus BD1, aiming to be a differentiated, non-biologic treatment for immuno-inflammatory conditions - VYN202 is an innovative, oral small molecule BET inhibitor[10](index=10&type=chunk) - Potential for class-leading selectivity and potency for BD2 vs. BD1[10](index=10&type=chunk) - Aims to be a differentiated, conveniently administered, non-biologic treatment for immuno-inflammatory indications[10](index=10&type=chunk) [Corporate Information and Disclosures](index=4&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides details about VYNE Therapeutics Inc., investor relations contacts, and a cautionary statement regarding forward-looking statements and associated risks [About VYNE Therapeutics Inc.](index=4&type=section&id=About%20VYNE%20Therapeutics%20Inc.) VYNE Therapeutics Inc. is a clinical-stage biopharmaceutical company focused on developing differentiated therapies for chronic inflammatory and immune-mediated conditions using its InhiBET™ platform - Clinical-stage biopharmaceutical company[12](index=12&type=chunk) - Focuses on developing differentiated therapies for chronic inflammatory and immune-mediated conditions with high unmet need[12](index=12&type=chunk) - Utilizes the InhiBET™ platform, comprising unique and proprietary BET inhibitors[12](index=12&type=chunk) - InhiBET™ inhibitors are designed to overcome limitations of early generation BET inhibitors via alternative administration routes and enhanced selectivity[12](index=12&type=chunk) [Investor Relations Contact](index=4&type=section&id=Investor%20Relations%20Contact) Investor relations inquiries can be directed to specified contacts at LifeSci Advisors, LLC or VYNE Therapeutics Inc., with VYNE also using its website for Regulation FD disclosures Investor Relations Contacts | Name | Affiliation | Phone | Email | | :----------- | :------------------ | :---------- | :---------------------- | | John Fraunces | LifeSci Advisors, LLC | 917-355-2395 | jfraunces@lifesciadvisors.com | | Tyler Zeronda | VYNE Therapeutics Inc. | 908-458-9106 | Tyler.Zeronda@VYNEtx.com | - VYNE uses its website (www.vynetherapeutics.com) to comply with disclosure obligations under Regulation FD[13](index=13&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=4&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section highlights that the release contains forward-looking statements subject to risks, uncertainties, and assumptions that could cause actual results to differ materially, advising investors to review SEC filings for risk factors - The release contains forward-looking statements regarding clinical development, future expectations, plans, and prospects[14](index=14&type=chunk) - These statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially[14](index=14&type=chunk) - Risks include VYNE's ability to successfully develop its product candidates; the timing of commencement of future preclinical studies and clinical trials; VYNE's ability to complete and receive favorable results from clinical trials of its product candidates; VYNE's ability to find a partner for repibresib; VYNE's ability to obtain additional funding, either through equity or debt financing transactions or collaboration arrangements; and VYNE's ability to comply with various regulations applicable to its business[14](index=14&type=chunk) - The preliminary cash estimate for June 30, 2025, is unaudited and subject to change[14](index=14&type=chunk) - Investors should not rely on forward-looking statements as predictions and should review SEC filings for risk factors[14](index=14&type=chunk)

[Sow Good Reports Second Quarter 2025 Results](index=1&type=section&id=Sow%20Good%20Reports%20Second%20Quarter%202025%20Results) Sow Good's Q2 2025 results reflect operational stabilization and strong demand despite temporary revenue impacts from production delays and increased competition [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights operational stabilization and strong demand in Q2 2025, despite temporary revenue impacts from production delays and labor shortages - Operations have stabilized, but revenue was temporarily impacted by production delays and labor shortages, even as demand accelerated[3](index=3&type=chunk) - The company deepened partnerships with key retailers like Five Below and Albertsons, expanding both SKU counts and order volumes[3](index=3&type=chunk) - Sow Good successfully launched in the UAE, with results exceeding expectations, validating global demand for its products[3](index=3&type=chunk) - The company's forward-looking strategy focuses on disciplined execution, cost optimization, innovation, and reaccelerating growth in the second half of 2025[3](index=3&type=chunk) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Sow Good's financial performance declined significantly in the second quarter of 2025 compared to the same period in 2024, driven by reduced revenue and a shift to net loss Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 (USD) | Q2 2024 (USD) | | :--- | :--- | :--- | | **Revenue** | $1.9 million | $15.6 million | | **Gross Profit (Loss)** | $(0.1) million | $9.0 million | | **Gross Margin** | (7%) | 58% | | **Operating Expenses** | $3.9 million | $4.1 million | | **Net Income (Loss)** | $(4.2) million | $3.3 million | | **EPS (Diluted)** | $(0.36) | $0.29 | | **Adjusted EBITDA** | $(2.7) million | $6.2 million | - The decline in revenue was primarily driven by softer demand due to increased competitive pressure and, to a lesser extent, production delays[4](index=4&type=chunk) - Cash and cash equivalents stood at **$1.0 million** as of June 30, 2025, down from **$3.7 million** at the end of 2024[5](index=5&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Sow Good's financial statements for Q2 2025 show significant declines in revenue and net income, leading to reduced assets and equity compared to the prior year [Condensed Balance Sheets](index=5&type=section&id=CONDENSED%20BALANCE%20SHEETS) As of June 30, 2025, Sow Good's total assets decreased to $50.0 million from $54.7 million, primarily due to a significant drop in cash and cash equivalents, resulting in a decline in total stockholders' equity Balance Sheet Summary (as of June 30, 2025 vs. Dec 31, 2024) | Account | June 30, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | **Cash and cash equivalents** | $0.96 million | $3.72 million | | **Total current assets** | $22.80 million | $25.08 million | | **Total assets** | $49.99 million | $54.70 million | | **Total current liabilities** | $5.38 million | $7.36 million | | **Total liabilities** | $21.41 million | $22.71 million | | **Total stockholders' equity** | $28.57 million | $31.99 million | [Condensed Statements of Operations](index=6&type=section&id=CONDENSED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, Sow Good reported a significant revenue decrease to $1.9 million from $15.6 million in Q2 2024, resulting in a net loss of $4.2 million compared to a $3.3 million net income in the prior-year period Statement of Operations - Three Months Ended June 30 | Metric | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | **Revenues** | $1,856,312 | $15,648,046 | | **Gross Profit (Loss)** | $(129,709) | $9,007,129 | | **Net Operating Income (Loss)** | $(4,073,905) | $4,885,096 | | **Net Income (Loss)** | $(4,186,512) | $3,335,142 | | **Net Income (Loss) per Share - Diluted** | $(0.36) | $0.29 | Statement of Operations - Six Months Ended June 30 | Metric | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | **Revenues** | $4,333,234 | $27,054,369 | | **Gross Profit** | $973,014 | $13,636,571 | | **Net Operating Income (Loss)** | $(6,489,093) | $5,814,353 | | **Net Income (Loss)** | $(6,757,566) | $3,845,730 | | **Net Income (Loss) per Share - Diluted** | $(0.59) | $0.41 | [Statements of Changes in Stockholders' Equity](index=7&type=section&id=STATEMENTS%20OF%20CHANGES%20IN%20STOCKHOLDERS'%20EQUITY) For the six months ended June 30, 2025, total stockholders' equity decreased from $32.0 million to $28.6 million, primarily due to the net loss incurred during the period - Total stockholders' equity decreased from **$31,988,061** at the beginning of the year to **$28,570,587** at June 30, 2025[22](index=22&type=chunk) - The primary driver for the decrease in equity was the net loss of **$6,757,566** for the six-month period[22](index=22&type=chunk) [Condensed Statements of Cash Flows](index=8&type=section&id=CONDENSED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, Sow Good experienced a net cash outflow of $2.8 million, primarily from operating activities, resulting in a reduced cash balance Cash Flow Summary - Six Months Ended June 30 | Activity | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(2,514,884) | $(939,534) | | **Net cash used in investing activities** | $(249,140) | $(2,228,050) | | **Net cash provided by financing activities** | $0 | $15,130,582 | | **Net change in cash** | $(2,764,024) | $11,962,998 | | **Cash at end of period** | $959,416 | $14,373,035 | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The company's non-GAAP Adjusted EBITDA significantly declined in Q2 2025, reflecting operational challenges, with management using this metric for performance evaluation despite its limitations [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=9&type=section&id=RECONCILIATION%20OF%20NET%20INCOME%20(LOSS)%20TO%20EBITDA%20AND%20ADJUSTED%20EBITDA) Sow Good's Adjusted EBITDA for Q2 2025 was $(2.7) million, a significant negative shift from $6.2 million in Q2 2024, reflecting operational challenges Adjusted EBITDA Reconciliation | Period | Net Income (Loss) (USD) | Adjusted EBITDA (USD) | | :--- | :--- | :--- | | **Three Months Ended June 30, 2025** | $(4,186,512) | $(2,694,394) | | **Three Months Ended June 30, 2024** | $3,335,142 | $6,216,642 | | **Six Months Ended June 30, 2025** | $(6,757,566) | $(3,485,112) | | **Six Months Ended June 30, 2024** | $3,845,730 | $8,684,628 | [Definition and Use of Non-GAAP Measures](index=2&type=section&id=Definition%20and%20Use%20of%20Non-GAAP%20Measures) Sow Good defines Adjusted EBITDA as a non-GAAP measure, used by management to assess core operating performance and business strategies, while acknowledging its inherent limitations - The company uses Adjusted EBITDA as a supplemental measure to GAAP, defining it as net income (loss) adjusted for items like depreciation, amortization, interest, taxes, and share-based compensation[9](index=9&type=chunk) - Management uses Adjusted EBITDA to evaluate business strategies, make budgeting decisions, and compare performance against peers[11](index=11&type=chunk) - The company acknowledges limitations of Adjusted EBITDA, such as the exclusion of significant recurring non-cash expenses like stock-based compensation and depreciation[14](index=14&type=chunk) [Company and Report Information](index=2&type=section&id=Company%20and%20Report%20Information) Sow Good Inc. is a U.S.-based freeze-dried snack manufacturer, and the report includes standard forward-looking statements subject to various business risks [About Sow Good Inc.](index=2&type=section&id=About%20Sow%20Good%20Inc.) Sow Good Inc. is a U.S.-based manufacturer specializing in freeze-dried candy and snacks, leveraging proprietary technology for innovation and manufacturing excellence - Sow Good is a U.S.-based manufacturer of innovative freeze-dried candy and treats, utilizing proprietary technology[8](index=8&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement advising that the press release includes forward-looking statements concerning future results, business strategy, and growth plans, which are subject to various risks and uncertainties - The report contains forward-looking statements regarding future financial position, business strategy, expected growth, and other operational plans[13](index=13&type=chunk) - These statements are subject to risks and uncertainties, including competition, supply chain issues, and the ability to retain customers, as detailed in SEC filings[13](index=13&type=chunk)[15](index=15&type=chunk)