Financial Performance - The Company experienced a net income of $8.2 million in 2025, down from $15.3 million in 2024, with a return on average assets of 0.42% compared to 0.85% in the previous year[138]. - Net income for 2025 was $8.214 million, a decrease of $7.129 million, or 46.46%, compared to $15.343 million in 2024[168]. - Basic earnings per share decreased to $1.59 in 2025 from $4.32 in 2024, while adjusted earnings per share increased slightly to $3.49 from $3.46[169]. - Total comprehensive income for 2025 was $21,594 thousand, compared to $14,709 thousand in 2024, an increase of 46.9%[323]. Revenue and Income Sources - Interest and dividend income for 2025 was $99.0 million, an increase from $91.3 million in 2024, while net interest income rose to $62.6 million from $51.2 million[138]. - Noninterest income decreased significantly to $6.9 million in 2025 from $21.6 million in 2024, impacting overall net revenue which fell to $65.8 million from $70.2 million[138]. - Noninterest income decreased by $14.674 million, or 68.07%, to $6.883 million for the twelve months ended December 31, 2025, compared to $21.557 million in 2024[168]. - Wealth management fees increased by $1.833 million or 32.59%, reaching $7.457 million in 2025 compared to $5.624 million in 2024[195]. Asset and Deposit Growth - As of December 31, 2025, the Company reported total assets of $1.89 billion, net loans of $1.46 billion, total deposits of $1.61 billion, and shareholders' equity of $188.8 million[134]. - Total assets grew to $1.889 billion in 2025, up from $1.866 billion in 2024, while total deposits increased to $1.607 billion from $1.575 billion[232]. - Total deposits increased by $32.2 million or 2.04% to $1.61 billion at December 31, 2025, compared to $1.58 billion at the end of 2024[270]. - The company reported a net increase in demand deposits, money market, and savings accounts of $75,206 million in 2025, contrasting with a decrease of $7,548 million in 2024[327]. Credit Quality and Losses - Non-performing loans to total loans rose to 0.98% in 2025 from 0.14% in 2024, indicating increased credit risk[138]. - Provision for credit losses rose by $1.150 million, or 45.08%, to $3.701 million for the twelve months ended December 31, 2025[168]. - Net charge-offs increased to $3.6 million in 2025 from $2.0 million in 2024, primarily within the commercial real estate and marine loan portfolios[190]. - The provision for credit losses for 2025 was $3.7 million, up from $2.6 million in 2024, reflecting the level of net charge-offs and loan growth[266]. Capital and Equity - Total shareholders' equity rose by $69.9 million to $188.9 million, representing 10% of total assets, compared to 6.38% in 2024[278]. - The common equity Tier 1 capital ratio improved to 14.54% in 2025 from 11.04% in 2024, exceeding regulatory requirements[283]. - Total risk-based capital increased to $237.7 million, with a total risk-based capital ratio of 15.53% compared to 12.00% in 2024[283]. Operational Efficiency - The efficiency ratio improved to 67.67% in 2025 from 75.08% in 2024, indicating enhanced operational efficiency due to increased net interest and noninterest income[214]. - Noninterest expense increased by $4.539 million, or 8.84%, to $55.871 million for the twelve months ended December 31, 2025[168]. - Salaries and employee benefits increased by $3.144 million or 10.46%, totaling $33.203 million in 2025 compared to $30.059 million in 2024[207]. Market and Interest Rate Exposure - The simulation analysis indicates that a 400 basis point decrease in market interest rates would result in a net interest income reduction of $4,196 thousand, representing a 6.61% decline[293]. - The bank's EVE analysis shows a more significant exposure to falling interest rates, primarily due to changes in the core deposit base value[294]. - A 100 basis point increase in market interest rates would lead to a minimal decrease in net interest income of $45 thousand, or 0.07%[293]. Public Offering and Shareholder Returns - The Company completed a public offering of 1,796,875 shares at $32.00 per share, raising net proceeds of $53.5 million, increasing shares outstanding by 50%[135]. - The dividend payout ratio increased to 77.99% in 2025 from 28.01% in 2024, reflecting a shift in profit distribution strategy[138]. - The company declared dividends of $1.24 per share in 2025, up from $1.21 per share in 2024[325].

Company Overview - The company is focused on veterinary health, creating products for companion animals, with a mission to enhance animal and veterinary practice health [178]. - The product portfolio includes six platforms: TRUFORMA, TRUVIEW, VETGuardian, PulseVet, Assisi Loop, and VETIGEL, emphasizing diagnostics and therapeutic devices [179][181]. Financial Performance - Revenue for the year ended December 31, 2025 was $32,030, compared to $27,285 for the year ended December 31, 2024, an increase of $4,745, or 17% [224]. - Cost of revenue for the year ended December 31, 2025 was $10,351, compared to $8,198 for the year ended December 31, 2024, an increase of $2,153, or 26% [226]. - Gross profit margin for the year ended December 31, 2025 was 68%, compared to 70% for the year ended December 31, 2024 [228]. - General and administrative expense for the year ended December 31, 2025 was $24,496, compared to $29,656 for the year ended December 31, 2024, a decrease of $5,160, or 17% [229]. - Research and development expense for the year ended December 31, 2025 was $7,166, compared to $7,268 for the year ended December 31, 2024, a decrease of $102, or 1% [231]. - Selling and marketing expense for the year ended December 31, 2025 was $18,537, compared to $17,192 for the year ended December 31, 2024, an increase of $1,345, or 8% [232]. - Impairment expense for the year ended December 31, 2025 was $55,833, compared to $16,024 for the year ended December 31, 2024 [234]. - Net loss for the year ended December 31, 2025 was $81,858, compared to a net loss of $46,982 for the year ended December 31, 2024, an increase of $34,876, or 74% [236]. - Cash used in operating activities for the year ended December 31, 2025 was $17,649, compared to $23,630 for the year ended December 31, 2024, a decrease of $5,981, or 25% [237]. - Cash and cash equivalents at the end of the period on December 31, 2025 was $9,017, compared to $7,021 at the end of the period on December 31, 2024, an increase of $1,996, or 28% [238]. Tax and Deferred Assets - As of December 31, 2025, the company reported net operating loss carryforwards of $21,216 thousand for U.S. federal and state income tax purposes [191]. - The company has derecognized $3,814 thousand of deferred tax assets due to limitations under Section 382 of the Code, reducing the carryforward to $17,402 thousand [191]. Research and Development - Research and development expenses focus on new assay development for the TRUFORMA platform and exploring new market opportunities [189]. General and Administrative Expenses - General and administrative expenses include significant public company costs such as stock exchange fees and compliance costs [188]. - Stock-based compensation expenses are recognized based on the fair value of awards at the grant date, impacting overall operating expenses [195]. Climate Change Impact - Climate change may lead to increased operating costs and affect decisions regarding new constructions and existing facilities [250]. - The potential impact of climate change on operations and customer needs remains uncertain, with possible severe geographic variations [249]. - The company may face indirect financial risks from climate change that could result in higher resource prices, including energy [250]. - The company is monitoring the implications of climate change on its business strategies and operational costs [250]. Future Outlook - The company expects to continue incurring losses in the foreseeable future, although these losses are anticipated to decrease as the Therapeutic Device segment grows [183]. - Revenue sources include consumables and capital sales from various platforms, including Assisi, PulseVet, TRUFORMA, TRUVIEW, VETGuardian, and VETIGEL [185]. - The company anticipates that costs related to development, commercialization, and marketing of products will significantly impact future capital requirements [245]. Stock and Shares - As of March 13, 2026, there are 979,949,668 common shares issued and outstanding [245]. - There are stock options outstanding under the Stock Option Plan to acquire an aggregate of 94,338,469 common shares [245]. - Common share purchase warrants issued in July 2022 allow holders to acquire 10,000,000 common shares at an exercise price of $0.2201 per share [245]. - Additional common share purchase warrants issued in July 2022 permit the acquisition of 22,000,000 common shares at an exercise price of $0.2520 per share [245]. Accounting and Financial Reporting - The company utilizes a discounted cash flow method for impairment testing, considering various internal and external factors [206]. - Recent accounting pronouncements are not expected to have a material impact on the consolidated financial statements upon adoption [246].

Business Model and Market Dynamics - The company relies on a freemium model, where a subset of members pays for subscriptions or in-app purchases, significantly impacting financial performance [79]. - Member engagement and retention are critical, with potential fluctuations in member base size and engagement levels affecting revenue and business outcomes [80]. - The dating industry is highly competitive, with low switching costs and new entrants potentially disrupting the company's market position [81]. - The company faces challenges from larger competitors with more resources for marketing and product development, including established social media platforms [82]. - Marketing efforts are crucial for member acquisition; failure to adapt to evolving consumer behavior and advertising channels could adversely affect business [104]. Regulatory and Compliance Risks - Regulatory changes and privacy initiatives from major tech platforms may limit the company's ability to conduct targeted advertising, impacting member acquisition and revenue [87]. - The company must continuously adapt to evolving billing options and regulatory mandates, which could affect revenue margins and user conversion rates [92]. - The company is subject to various laws and regulations regarding content moderation, including the EU Digital Services Act, which may impose significant fines for non-compliance [167]. - The GDPR imposes fines of up to €20 million or 4% of total worldwide annual group turnover for violations, which could lead to substantial financial penalties [173]. - The company faces litigation risks related to privacy, data protection, and consumer protection laws, which could result in substantial legal costs and liabilities [177]. Operational Challenges - The company reduced its global workforce by approximately 30% during 2025, which may disrupt operations and negatively impact employee retention and morale [94]. - The company operates in a highly competitive labor market, making it challenging to fill key roles and potentially incurring higher labor costs [95]. - Failure to manage hiring needs and remote work arrangements could adversely affect efficiency, innovation, and employee morale [97]. - Effective succession planning is critical; failure to ensure smooth transitions in senior management could impair the company's strategic and operational goals [98]. - The integrity of the company's information technology systems is crucial for performance, and any failures could result in lost revenue and damage to reputation [146]. Financial and Debt Management - As of December 31, 2025, the company had $591 million of outstanding indebtedness, with term loans under the Credit Agreement carrying a value of $588 million maturing on January 29, 2027 [185][187]. - The company is subject to significant operating and financial restrictions under its Credit Agreement, which may limit its ability to incur additional debt, pay dividends, or capitalize on business opportunities [190]. - The company anticipates that its tax expenses will increase over time as Pre-IPO Common Unitholders and/or Incentive Unitholders exchange their Common Units for shares of Class A common stock, potentially adversely affecting its financial condition [193]. - The company’s ability to generate sufficient cash flow from operations to service its debt is uncertain, and any refinancing may occur at higher interest rates, further straining its financial condition [187][188]. - The company is dependent on distributions from its subsidiaries to meet its tax obligations and pay dividends, which may be restricted under applicable laws or financing arrangements [192]. Cybersecurity and Data Protection - The company faces risks related to cybersecurity, including threats from various actors that could compromise sensitive data and disrupt operations, potentially harming financial condition and reputation [117]. - The complexity of the company's IT systems and reliance on third-party service providers increase exposure to cybersecurity risks, which may lead to operational disruptions and financial harm [118]. - Security breaches or unauthorized access to sensitive member information could result in legal liability and significant costs for remediation, harming the company's reputation [124]. - Data security breaches involving payment card information could lead to significant operational disruptions and loss of member trust, adversely impacting financial results [133]. - The company utilizes tokenization tools to enhance payment security, but these measures do not eliminate data security risks entirely [134]. Intellectual Property Risks - The company faces significant risks related to intellectual property, including potential litigation that could adversely impact its business and financial condition [149]. - Competitors may have larger intellectual property portfolios, making the company vulnerable to infringement claims and litigation costs [150]. - The company may incur considerable costs in defending against intellectual property claims, which could divert management's attention and resources [151]. - There is a risk that the company may need to seek licenses for technologies found to infringe on third-party rights, potentially increasing operating costs [152]. - The company may face challenges in enforcing its intellectual property rights, particularly in foreign jurisdictions where legal protections are weaker [159]. Market and Economic Conditions - The company is exposed to fluctuations in inflation, which could negatively affect its business and financial condition [229]. - Changes in the global macroeconomic environment may adversely affect consumer discretionary spending and demand for the company's products [228]. - The company faces risks related to foreign currency exchange rate fluctuations, which could materially impact its results of operations [233]. - The variability of quarterly operating results may lead to significant fluctuations in the company's stock price [227]. - The market price of Class A common stock may be highly volatile, subject to wide fluctuations, and could decline regardless of the company's operating performance [234]. Strategic Initiatives and Growth - The company has implemented new business plans and strategies aimed at driving long-term growth [231]. - The company may experience difficulties in raising additional funds through future offerings due to market perceptions of restricted shares [217]. - The anticipated benefits of acquisitions may not be realized, and ongoing unfavorable trends could lead to further impairment charges [238]. - Adverse publicity or negative market reactions to strategic transactions could materially affect the company's business and stock price [238]. - The company is evaluating the potential consequences of the OECD's Pillar Two on its long-term financial position, which could significantly impact its tax computations depending on the enactment timing and nature of each country's legislation [181].

Business Overview - Standard BioTools' established portfolio includes next-generation solutions aimed at accelerating therapeutic development across various therapeutic areas, including immunology and oncology, leveraging advanced technologies in proteomics and genomics [17]. - The company has a total addressable market (TAM) exceeding $70 billion in the life sciences research tools sector, focusing on emerging segments in proteomics and genomics [27]. - The SomaScan Business, which included aptamer-based and functional proteomics, has been classified as a discontinued operation following its acquisition by Illumina, effective January 30, 2026 [18][19]. Product and Technology - The CyTOF platform allows for the detection of over 50 markers simultaneously, enhancing single-cell analysis and immune profiling capabilities [23]. - The Hyperion platform enables high-dimensional molecular analysis while preserving spatial context, mapping over 40 protein markers across tissue landscapes [24]. - The Biomark X9 system offers high-throughput genomics with the ability to analyze thousands of reactions simultaneously, significantly improving efficiency and scalability [25]. - The company’s products are labeled "For Research Use Only. Not for use in diagnostic procedures," and are sold to academic institutions and biopharmaceutical companies for non-clinical purposes [50]. Regulatory Compliance - The FDA's RUO/IUO Guidance indicates that merely labeling a product for research purposes does not exempt it from regulatory requirements if the manufacturer is aware of clinical use [50]. - The company must comply with federal truth-in-advertising laws enforced by the FTC, which can impose civil penalties for deceptive practices [52]. - The California Consumer Privacy Act (CCPA) imposes new data privacy obligations and provides rights to California residents, including the right to opt out of certain disclosures [54]. - The GDPR establishes stringent requirements for processing personal data, with potential fines of up to €20 million or 4% of total worldwide annual turnover for non-compliance [63]. - The EU-US Data Privacy Framework was adopted to facilitate data transfer while ensuring adequate protection for EU individuals [64]. - The IVDR, effective May 26, 2022, imposes additional regulatory requirements for in vitro diagnostic products in the EU, including a new risk-based classification system [62]. - The company must ensure compliance with various international data privacy laws, which can increase operational complexity and compliance costs [56]. - Violations of the FCPA's anti-bribery provisions can result in fines of up to $2 million for corporations and up to $100,000 for individuals [59]. - The company is subject to the General Product Safety Regulation (GPSR) in the EU, which requires product traceability and compliance, with penalties for noncompliance [62]. Financial Performance - Total revenue from customers outside the United States was $56.9 million, representing 67% of total revenue in 2025, up from 61% in 2024 and 59% in 2023 [70]. - The company has incurred losses since inception and may continue to incur substantial losses for the foreseeable future [89]. - The company reported net losses of $74.7 million, $138.9 million, and $74.9 million for the fiscal years ended December 31, 2023, 2024, and 2025, respectively, with an accumulated deficit of $1.3 billion as of December 31, 2025 [106]. - Operating costs have increased due to inflationary pressures, which may not be fully offset by price increases, potentially leading to downward pressure on profit margins [100]. - The company has experienced significant revenue growth in the past but may not achieve similar growth rates in future periods, with fluctuations expected in quarterly and annual results [101]. Market and Competition - The competitive landscape includes both established and emerging companies, with key factors for differentiation being product quality, innovation, and customer support [41][42]. - The company faces intense competition in the life sciences market, with established competitors having greater resources and market presence [110]. - Market acceptance of the company's products is crucial, as potential customers may be reluctant to replace existing systems, impacting revenue growth [116]. Operational Risks - The company relies on a limited number of suppliers for key components, which poses a risk to operations if any supplier is lost [36]. - The company relies on single and sole source suppliers for some components, which poses risks to its supply chain [92]. - The company’s backlog is not a meaningful indicator of future sales as a substantial portion of products are sold on cancellable standard purchase orders [73]. - The company faces challenges in recruiting and retaining skilled personnel, which is critical for achieving business goals and could impact product development [152][153]. - The effectiveness of sales and marketing efforts is crucial for business growth, and any failure to maintain a competitive sales force could negatively impact revenue [154][156]. Strategic Initiatives - The company plans to reduce operating expenses as part of restructuring initiatives, but there is no guarantee that these efforts will yield the anticipated savings [107]. - The company may engage in future acquisitions or strategic collaborations, which could increase capital requirements and involve various risks [102]. - Future growth may depend on the company's ability to successfully integrate acquisitions, which involves risks such as management distraction and potential loss of key personnel [120]. - The company’s growth strategy includes expanding into foreign markets, which presents additional regulatory burdens and uncertainties [122]. Cybersecurity and Data Privacy - A significant percentage of employees work remotely, increasing cybersecurity risks due to home network vulnerabilities [165]. - The company has experienced a ransomware attack in early 2019, which compromised certain IT systems but did not result in significant data loss [161]. - Cybersecurity incidents could disrupt operations and adversely affect financial results, with potential legal claims arising from data breaches [160]. - The company has implemented security controls to mitigate cybersecurity risks, but evolving threats remain a concern [161]. Environmental and Legal Considerations - The company does not maintain separate environmental liability coverage, and any contamination or discharge could result in significant costs in penalties and damages [69]. - The company is subject to various federal, state, local, and foreign environmental regulations, which could restrict its ability to expand or require costly compliance measures [69]. - The company faces potential legal and regulatory scrutiny related to the use of AI technologies, which could increase operational costs and complexity [166]. International Operations - Approximately 41% of the company's product and service revenue was generated from international sales in 2023, with expectations for continued growth in international markets [188]. - The company generates a substantial portion of its revenue internationally, exposing it to various regulatory, political, and economic risks associated with global operations [188]. - Fluctuations in foreign currency exchange rates could adversely impact the company's financial performance, especially if the U.S. dollar strengthens against other currencies [197]. - The imposition of tariffs and trade restrictions may disrupt the global supply chain and create operational challenges, adversely affecting business results [192].

Revenue and Financial Performance - Revenue from the United States Defense Logistics Agency (DLA) totaled $38.2 million, $35.5 million, and $53.0 million for the years ended December 31, 2025, 2024, and 2023, respectively[39]. - Revenues for the year ended December 31, 2025 were $246.6 million, an increase of $9.5 million or 4% from the $237.1 million reported during the comparable 2024 period[128]. - Gross profit for the year ended December 31, 2025 was $62.1 million, a decrease of $3.6 million from the $65.7 million reported during the comparable 2024 period, with a gross margin of 25.2%[129]. - Selling, general and administrative expenses for the year ended December 31, 2025 were $40.2 million, an increase of $7.2 million from the $33.0 million reported during the comparable 2024 period[130]. - Net income for the year ended December 31, 2025 was $16.7 million, a decrease of $7.7 million from the $24.4 million reported during the comparable 2024 period[134]. - The Company had working capital of $146.2 million at December 31, 2025, a decrease of $1.5 million from $147.7 million at December 31, 2024[136]. - Inventories at December 31, 2025 were $135.9 million, an increase of $39.7 million from $96.2 million at December 31, 2024[137]. - As of December 31, 2025, cash and cash equivalents were $39.5 million, a decrease of approximately $30.6 million from $70.1 million at the end of 2024[142]. Contracts and Agreements - The Company has been awarded a five-year contract with the DLA, which includes a five-year renewal option, expiring in July 2026[29]. - The Company was awarded a new five-year contract with the DLA in October 2025, which is currently under review due to a bid protest[125]. - Hudson entered into agreements with AprilAire and Lennox International Inc. to supply reclaimed refrigerants, aligning with California Air Resources Board regulations[40]. Environmental Regulations and Compliance - The AIM Act mandates a cumulative 40% reduction in HFC production and consumption from baseline levels for the years 2024 through 2029[21]. - The Company is subject to extensive regulations, including the Clean Air Act and the AIM Act, which impose significant compliance burdens[51]. - Regulatory compliance burdens are extensive, with the company subject to stringent federal, state, and local laws, which may require operational changes and incur substantial costs[81]. - The Company is subject to evolving regulations regarding refrigerants, including the phasedown of HFC production mandated by the AIM Act and the Montreal Protocol[83]. Operational Capabilities and Services - The Company provides a complete offering of refrigerant management services, including reclamation, laboratory testing, and banking services tailored to customer requirements[26]. - The Company is one of the largest refrigerant reclaimers in the United States, participating in the creation and monetization of verified emission reductions[23]. - Hudson's proprietary Zugibeast® system is used for the reclamation of refrigerants, enhancing operational efficiency[30]. - The Company has developed SmartEnergy OPS®, a web-based service for monitoring and improving energy efficiency in industrial and commercial applications[32]. - The Company has two of only four certified refrigerant testing laboratories in the U.S. under AHRI's certification program, enhancing its competitive position[53]. Financial Risks and Liabilities - The Company is exposed to risks from adverse weather conditions, which can negatively impact demand for its products and services[71]. - The Company is exposed to market risks from fluctuations in the demand, price, and availability of refrigerants, which could materially affect revenue[164]. - The Company may struggle to compete effectively due to the presence of numerous regional and national competitors with greater resources[84]. - The Company faces potential liability for environmental damage and personal injury related to refrigerant handling, which may not be fully covered by current insurance[79]. - The Company has processes in place to monitor commodity price risks, which could materially affect revenues and cash flows[68]. Corporate Governance and Internal Controls - The Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of the end of the reporting period[168]. - There were no changes in internal control over financial reporting that materially affected the Company during the quarter ended December 31, 2025[169]. - The Company maintained effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria[174]. - The independent registered public accounting firm provided an unqualified opinion on the Company's internal control over financial reporting[175]. Shareholder and Stock Information - The company has the ability to issue up to 5,000,000 shares of "blank check" preferred stock, which could impede changes in control[85]. - The Company has 3,039,889 securities to be issued upon exercise of outstanding options with a weighted average exercise price of $4.29, and 6,539,472 securities remaining available for future issuance under equity compensation plans as of December 31, 2025[188]. - The average price paid per share for repurchased shares in November and December 2025 was $6.90 and $7.45 respectively, with a total of 1,950,981 shares repurchased[114]. - The Company repurchased 2,890,240 shares of common stock for $20.0 million in 2025, compared to 1,244,076 shares for $8.1 million in 2024, resulting in net cash used in financing activities of $20.2 million in 2025[141]. Inventory and Asset Management - The consolidated inventories balance was $135.9 million as of December 31, 2025, consisting primarily of refrigerant products available for sale[209]. - The Company may be required to write down its inventory through a lower of cost or net realizable value adjustment based on future demand and market conditions[209]. - The assessment of net realizable value of certain inventories was identified as a critical audit matter due to the significant judgment required[211].

Financial Performance - Total revenue from continuing operations for Q4 2025 was $1.3 million, down from $3.1 million in Q4 2024[14] - Total revenue for the full year 2025 was $6.4 million, compared to $29.6 million for 2024, representing a decline of approximately 78.4%[14] - Net loss for Q4 2025 was $14.6 million, or $3.61 per share, compared to a net loss of $8.7 million, or $2.15 per share in Q4 2024[14] - Full year net loss for 2025 was $58.2 million, or $14.40 per share, down from a net loss of $153.1 million, or $38.26 per share in 2024[14] - Total revenue for Q4 2025 was $1,278,000, a decrease of 59.3% compared to $3,136,000 in Q4 2024[17] - Drug product revenue, net for the year 2025 was $5,848,000, down 78.9% from $27,673,000 in 2024[17] - Net loss for Q4 2025 was $14,220,000, compared to a net income of $17,982,000 in Q4 2024[17] - Loss from continuing operations per share for Q4 2025 was $3.61, compared to a loss of $2.15 per share in Q4 2024[17] - Income from discontinued operations for the year 2025 was $241,656,000, significantly higher than $105,519,000 in 2024[17] - Total operating costs and expenses for the year 2025 were $52,335,000, a decrease of 70.0% from $180,037,000 in 2024[17] - Interest expense for Q4 2025 was $2,413,000, compared to $2,217,000 in Q4 2024[17] - Weighted average number of common shares used to calculate net income per share for 2025 was 4,043,000, slightly up from 4,002,000 in 2024[17] - The company reported a loss from operations of $13,512,000 for Q4 2025, compared to a loss of $7,134,000 in Q4 2024[17] Cash and Funding - As of December 31, 2025, Kyntra Bio reported $109.4 million in cash, cash equivalents, investments, and accounts receivable, sufficient to fund operations into 2028[14] Clinical Trials and Development - The Phase 2 monotherapy trial of FG-3246 is on track for interim analysis in the second half of 2026[6] - Positive results from the Phase 1b/2 study of FG-3246 in combination with enzalutamide showed a median radiographic progression-free survival of 7.0 months[7] - The pivotal Phase 3 clinical trial protocol for roxadustat has been submitted to the FDA, with plans to start the trial in the second half of 2026[6] - Kyntra Bio received Orphan Drug Designation from the FDA for the treatment of myelodysplastic syndromes (MDS)[7] - The company is exploring the opportunity to develop roxadustat either internally or with a strategic partner[7]

Financial Position - HeartSciences reported stockholders' equity of $1,786,689 as of January 31, 2025, which is below the Nasdaq minimum requirement of $2.5 million[178]. - HeartSciences has received an extension from Nasdaq until September 15, 2025, to regain compliance with the Minimum Stockholders' Equity Requirement[179]. - As of January 31, 2026, the company had cash and cash equivalents of approximately $3.4 million, an increase of $2.3 million from $1.1 million as of April 30, 2025[210]. Revenue and Sales - Revenue for the nine months ended January 31, 2026, was $4,000, with no revenue reported for the same period in 2025, indicating a significant increase[198]. - The company has minimal revenues primarily from device sales and establishing distributor relationships outside the U.S.[190]. Expenses and Losses - The company has experienced recurring losses and negative cash flows from operations, raising substantial doubt about its ability to continue as a going concern[177]. - The company incurred a net loss of $6.4 million for the nine months ended January 31, 2026, with an accumulated deficit of $82.5 million as of the same date[203]. - Selling, general, and administrative expenses were approximately $1.3 million for the three months and $3.5 million for the nine months ended January 31, 2026, reflecting a decrease of 4% for the three months and an increase of 18% for the nine months compared to 2025[200]. - Research and development expenses decreased by $0.4 million, or 38%, for the three months ended January 31, 2026, and by $1.1 million, or 32%, for the nine months ended January 31, 2026, compared to the same periods in 2025[199]. - Interest expense was approximately $62,000 for the three months and $0.5 million for the nine months ended January 31, 2026, representing a decrease of 66% for the three months and an increase of 64% for the nine months compared to 2025[201]. Financing Activities - The company has raised approximately $6.7 million from the issuance of 1,912,383 Units during the nine months ended January 31, 2026, as part of a maximum offering of $15.0 million[206]. - Net cash provided by financing activities was $8.1 million for the nine months ended January 31, 2026, mainly from the issuance of Series D Preferred Stock and warrants[215]. - Net cash provided by financing activities was $2.6 million for the nine months ended January 31, 2025, primarily from the issuance of Common Stock under the Equity Line and net proceeds from the $2.5 million Streeterville Note[215]. Agreements and Developments - HeartSciences entered into a Note Purchase Agreement for $3.6 million with Streeterville Capital, LLC, with a 12% annual interest rate and a maturity of 18 months[182]. - The company entered into a Note Purchase Agreement with Streeterville, issuing an unsecured promissory note of $3.6 million, with net proceeds of approximately $3.0 million received[205]. - The MyoVista Insights platform was launched in May 2025 and is expected to generate revenue from installation fees and software-as-a-service usage fees[173]. - The MyoVista® wavECG™ device was submitted to the FDA for 510(k) premarket clearance on December 15, 2025[181]. - HeartSciences plans to develop and validate an impaired cardiac relaxation AI-ECG algorithm to align with updated clinical standards[174]. Cash Flow - Net cash used in operating activities was $5.8 million during the nine months ended January 31, 2026, primarily due to a net loss of $6.4 million[213]. - Net cash used by operating activities was $5.8 million for the nine months ended January 31, 2025, primarily due to a net loss of $6.7 million[214]. Accounting and Reporting - There have been no material changes to critical accounting policies and estimates from the previous annual report[216]. - Market risk disclosures are not required for smaller reporting companies[217].

Financial Performance - Net loss for the year ended December 31, 2025, was $26.4 million compared to a net profit of $130.7 million for the year ended December 31, 2024[339]. - Total operating revenues decreased by 18.9% to $733.0 million in 2025 from $904.4 million in 2024[341]. - Time charter revenues decreased by $17.2 million in 2025 compared to 2024, primarily due to vessel additions and disposals[346]. - Drilling contract revenues decreased by 59% in 2025 compared to 2024, mainly because the drilling rig Hercules was warm stacked in Norway[348]. - Profit sharing revenues decreased to $0.6 million in 2025 from $6.4 million in 2024 due to less favorable rates and vessel disposals[344]. - Total equity in earnings of associated companies for the year ended December 31, 2025, was $2.4 million, down from $2.8 million in 2024[365]. - Tax expense for the year ended December 31, 2025, was $1.9 million, significantly lower than $10.6 million in 2024, primarily due to reduced operations of the Hercules drilling rig[366]. Cash Flow and Debt - Cash generated from operating activities in 2025 decreased to $267.1 million from $369.9 million in 2024, attributed to changes in operating income and timing of receivables[379]. - Investing activities generated cash of $188.1 million in 2025, a turnaround from cash used of $617.5 million in 2024, mainly due to higher proceeds from vessel sales[380]. - Net cash used in financing activities in 2025 was $439.0 million, compared to net cash provided of $216.7 million in 2024, driven by lower debt proceeds and higher debt repayments[381]. - Total debt principal outstanding as of December 31, 2025, was $2.6 billion, down from $2.9 billion in 2024[358]. - The company paid dividends totaling $125.1 million in 2025, down from $138.5 million in 2024, with a dividend per common share of $0.94 compared to $1.07 in 2024[382]. - As of December 31, 2025, the company was in compliance with all financial covenants contained in its financing agreements[394]. - The company anticipates that cash flow generated from charters will be adequate to meet anticipated debt service obligations and working capital needs in the short and medium term[373]. Asset Valuation and Impairment - An impairment charge of $26.7 million was recorded on five 57,000 dwt Supramax dry bulk carriers in 2025[354]. - As of December 31, 2025, the company owned 47 vessels and 2 rigs with an aggregate carrying value of $3.1 billion[434]. - The carrying value of tanker vessels is $804.9 million, while dry bulk carriers are valued at $29.4 million, and liners at $1,703.2 million[435]. - Two vessels with a carrying value of $110.1 million exceed their charter-free market value by $6.1 million, while 15 vessels valued at $694.8 million are $289.4 million less than their charter-free market value[435]. - In 2025, seven dry bulk carriers were identified as impaired, resulting in impairment charges[432]. - The company reviews vessels and rigs for impairment quarterly, considering factors such as carrying value and average fair values from external appraisals[428]. - The aggregate carrying value of liners is $1,703.2 million, which is $853.8 million less than their charter-free market value[438]. - One jack-up drilling rig has a carrying value of $311.8 million, exceeding its charter-free market value by $104.3 million[438]. - The estimates of vessel and rig market values are inherently uncertain due to market volatility and reliance on external appraisals[433]. Market Trends - The tanker market saw a 2.1% increase in crude tanker demand while the crude fleet grew by only 0.4% in 2025, indicating a tightening market[409]. - Average spot earnings for a 2010-built VLCC increased to approximately $54,200 per day in 2025, up from $33,500 per day in 2024[411]. - The dry bulk fleet increased by 3.0% in total deadweight tonnage (dwt) in 2025, while demand increased by 2.1% in tonne miles[413]. - The containership fleet is projected to grow by 4.5% in 2026, although demand risks persist due to geopolitical uncertainties[415]. - The offshore drilling market is experiencing increased utilization rates, currently estimated at over 90%, up from 83% in 2020[422]. - The global deep-sea car trade grew by 8% in 2025, reaching a record 32.1 million cars, supported by a surge in Chinese car exports[417]. Future Commitments - The company has committed $848.1 million under shipbuilding contracts for five new dual-fuel 16,800 TEU container vessels, expected to be delivered in 2028[408]. - As of December 31, 2025, the equity interest in River Box includes direct financing lease receivables of $206.0 million and finance lease liabilities of $169.0 million, representing a 49.9% ownership[396]. - The company has entered into interest rate swap contracts with a combined notional principal amount of $0.8 billion, fixing interest rates between 1.19% and 6.47% per annum, resulting in a weighted average interest rate of 5.25% for floating rate debt[398]. - Total contractual cash obligations as of December 31, 2025, amount to $3,956.7 million, with $605.9 million due in less than one year[402].

Clinical Trials and Product Development - The company is progressing with clinical trials for silevertinib (formerly BDTX-1535), with expectations for data announcements in the upcoming quarters[17] - The ongoing Phase 1 clinical trial of BDTX-4933 aims to address unmet medical needs for patients with RAF/RAS-mutant solid tumors, including non-small cell lung cancer (NSCLC)[17] - The company is focused on developing its product candidates for various cancers and aims to achieve market acceptance and clinical utility[19] - The company is progressing with clinical trials for silevertinib (formerly BDTX-1535) and anticipates announcing data and results in the future[17] Strategic Partnerships and Financial Outlook - The partnership with Servier Pharmaceuticals LLC is anticipated to yield development and commercial milestone payments, along with tiered royalties based on global net sales[17] - The partnership with Servier Pharmaceuticals LLC may yield potential development and commercial milestone payments, along with tiered royalties based on global net sales[17] - The financial outlook indicates a need for additional funding to support ongoing operations and product development[19] - The company expects its existing cash, cash equivalents, and investments to fund operating expenses and capital expenditures for a defined period[19] Market Assessment and Strategic Alternatives - The company is evaluating strategic alternatives for BDTX-4876 to maximize its value and potential market impact[19] - The company is assessing the market opportunities for its product candidates, which includes understanding competitive positioning and potential market size[19] - The company is assessing market opportunities for its product candidates, including competitive positioning against existing therapies[19] Regulatory and Compliance Considerations - The company is focused on obtaining regulatory approval for its product candidates, which is critical for future revenue generation[17] - The company emphasizes the importance of maintaining effective internal controls to ensure compliance and operational efficiency[19] - The company acknowledges risks related to macroeconomic conditions, including inflation and capital market disruptions, which could impact its operations[19] Human Resources and Forward-Looking Statements - The company emphasizes the importance of attracting and retaining key personnel to support its growth and development efforts[19] - The company does not undertake to update or revise forward-looking statements, even if new information becomes available[20]

Financial Results Announcement - Eve Holding, Inc. announced its fourth quarter and fiscal year results for the year ended December 31, 2025, on March 16, 2026[5]. - The press release detailing the financial results is attached as Exhibit 99.1[5]. Company Information - The company is listed on the New York Stock Exchange under the symbol EVEX for common stock and EVEXW for warrants[3]. - The report does not indicate whether the company is an emerging growth company[4]. Regulatory Information - The financial statements and exhibits are not deemed filed under the Securities Exchange Act of 1934[6]. - The report was signed by CEO Johann Bordais on March 16, 2026[11].