Financial Performance - Empire reported full year 2025 total product revenue of $34.2 million, a decrease from $44.0 million in 2024, primarily due to lower average oil and NGLs realized pricing and reduced oil production[15]. - Empire's net loss for Q4-2025 was $58.95 million, compared to a net loss of $3.84 million in Q3-2025[12]. - Empire recorded a net loss of $72.1 million in 2025, or ($2.12) per diluted share, compared to a net loss of $16.2 million, or ($0.54) per diluted share in 2024[21]. - Net loss for the three months ended December 31, 2025, was $58,953,000 compared to a loss of $4,193,000 in the same period last year[39]. - Adjusted net loss for the year ended December 31, 2025, was $21,564,000, while the adjusted net loss for 2024 was $14,793,000[43]. - The company reported a significant impairment of $51,289,000 for the three months ended December 31, 2025[45]. Production and Sales - In Q4-2025, net production volumes were 2,161 Boe/d, including 1,359 Bbl/d of oil, reflecting a 10% decrease from Q3-2025 and a 14% decrease from Q4-2024[12]. - For the three months ended December 31, 2025, net sales volumes for oil were 125,059 Bbl, a decrease of 13.3% from 144,098 Bbl in the previous quarter[35]. - Average daily equivalent sales for the year ended December 31, 2025, were 2,242 Boe/d, a decrease of 7.2% from 2,416 Boe/d in 2024[35]. Pricing and Costs - The realized price per Boe in Q4-2025 was $35.46, down 17% from Q3-2025 and down 24% from Q4-2024[12]. - Average price per barrel of oil decreased to $54.41 from $61.00 in the previous quarter, representing a decline of 11.8%[35]. - Lease operating expenses decreased to $25.2 million in 2025 from $27.5 million in 2024, primarily due to lower workover activities[16]. - Lease operating expense per Boe increased to $36.90 from $25.99 in the previous quarter, an increase of 42.5%[35]. Assets and Liabilities - Year-end 2025 proved reserves were 7.6 MMBoe, down from 9.2 MMBoe at year-end 2024, with 77% being crude oil[22]. - The standardized measure of SEC proved reserves at year-end 2025 was $58.6 million, down from $98.4 million in 2024, reflecting lower future cash inflows and higher production costs[24]. - Total current assets decreased to $8,180,000 from $12,351,000 year-over-year, a decline of 33.5%[37]. - Total liabilities increased to $70,479,000 from $61,103,000 year-over-year, an increase of 15.5%[37]. - Total stockholders' equity turned to a deficit of $4,606,000 from a positive equity of $62,765,000 year-over-year[37]. Capital Expenditures and Cash Flow - Capital expenditures for 2025 were approximately $4.6 million, primarily for projects in Texas and North Dakota[25]. - Cash flows from operating activities for the year ended December 31, 2025, showed a net cash used of $3,946,000 compared to a net cash provided of $6,157,000 in 2024[39]. - Capital expenditures for oil and natural gas properties were $1,130,000 for the three months ended December 31, 2025, compared to $4,460,000 in the previous year[39]. - Cash at the end of the period was $1,189,000, down from $2,251,000 at the end of the previous year[43]. - The company reported a net change in cash of $(3,412,000) for the three months ended December 31, 2025[43]. Strategic Initiatives - The company plans to increase its Texas gas development program from an initial target of 10-12 wells in 2026 to a target of 12-30 wells by year-end 2026[10]. - Empire is in final due diligence for a three-well participation opportunity in Louisiana, which would expand its economic footprint in developing oil and gas properties[10]. - Empire is focused on organic growth and targeted acquisitions of proved developed assets to enhance its portfolio[29]. - Compression capacity at Empire's Texas Midstream plant is expected to increase over 600% from 1.5 MMcfd in 2025 to 9.5 MMcfd in Q2-2026[2]. - The company is advancing hydrocarbon vaporization technology to improve thermal efficiency and support enhanced oil recovery operations[5]. Expenses - General and administrative expenses for 2025 were $12.0 million, or $14.66 per Boe, slightly down from $12.6 million, or $14.23 per Boe in 2024[20]. - Depreciation, Depletion, and Amortization (DD&A) for 2025 was $12.7 million, an increase from $11.3 million in 2024, attributed to new drilling activities and acquisitions[18]. - Interest expense for the year ended December 31, 2025, was $1,547,000, slightly up from $1,515,000 in 2024[45]. - Depreciation, depletion, and amortization for the year ended December 31, 2025, totaled $10,595,000, compared to $9,256,000 in 2024[45]. - The company experienced a loss on financial derivatives of $(581,000) for the year ended December 31, 2025[45].

Financial Performance - Black Diamond Therapeutics ended 2025 with approximately $128.7 million in cash, cash equivalents, and investments, up from $98.6 million at the end of 2024, indicating a 30.5% increase[5] - Net cash provided by operations for the year ended December 31, 2025, was $29.6 million, a significant improvement compared to a net cash used in operations of $62.3 million for the year ended December 31, 2024[5] - The net loss for the fourth quarter of 2025 was $15.1 million, an improvement from a net loss of $16.0 million in the same period of 2024[11] - Total assets increased to $143.0 million as of December 31, 2025, compared to $122.6 million at the end of 2024, reflecting a growth of 16.5%[14] - The accumulated deficit decreased to $464.7 million as of December 31, 2025, from $487.1 million at the end of 2024, indicating a reduction of 4.6%[14] Research and Development - Research and development (R&D) expenses decreased to $33.6 million for the year ended December 31, 2025, down 34.5% from $51.3 million in 2024, primarily due to workforce efficiencies and outlicensing of BDTX-4933[11] - Black Diamond anticipates presenting updated clinical data from the Phase 2 trial of silevertinib in non-classical EGFRm NSCLC at a medical meeting in Q2 2026[6] - The company plans to initiate a randomized Phase 2 trial of silevertinib in newly diagnosed EGFR altered GBM in Q2 2026[6] - The Phase 2 trial of silevertinib in frontline NSCLC patients demonstrated a 60% Objective Response Rate (ORR) and a 91% disease control rate (DCR) as of November 3, 2025[7] Operational Efficiency - General and administrative (G&A) expenses were reduced to $16.6 million for the year ended December 31, 2025, a decrease of 39.5% from $27.5 million in 2024, attributed to operational efficiencies from restructuring[11]

Financial Performance - Revenue for fiscal year 2025 was $164.8 million, an increase of $56.5 million or 52.2% compared to $108.3 million in 2024[212] - Gross profit for 2025 was $61.0 million, resulting in a gross margin of 37.0%, up from 31.8% in 2024[212] - The company's operating loss improved to $(39.9) million in 2025 from $(55.9) million in 2024, reflecting a positive change of $16.0 million[212] - Revenue increased by 52.2% year-over-year, driven by a 94.9% growth in Security Solutions, mainly due to the expansion of large programs in Telos ID[215] - Adjusted EBITDA for 2025 was $18.1 million, compared to a loss of $9.6 million in 2024, indicating a significant improvement in operational performance[226] Backlog and Contracts - Funded backlog increased to $68.8 million in 2025 from $51.2 million in 2024, while total backlog rose to $126.1 million from $76.5 million[209] - The U.S. federal government accounted for approximately 91.0% of total revenues in FY2025, with 58.1% derived from the Department of War (DoW)[194] Operating Expenses - Operating expenses increased by $10.6 million or 11.7% in 2025, primarily due to a rise in stock-based compensation costs[213] - Operating expenses rose by $10.6 million, or 11.7%, year-over-year, primarily due to increases in stock-based compensation and impairment losses[215] Cash Flow and Liquidity - Cash flow from operations improved by $56.1 million year-over-year, resulting in a $30.2 million inflow, or 18.3% of revenue[215] - Net cash provided by operating activities was $30.2 million for the year ended December 31, 2025, compared to a cash outflow of $25.9 million in 2024[234] - As of December 31, 2025, the company had cash and cash equivalents of $53.2 million and working capital of $57.6 million[232] Segment Performance - Security Solutions segment revenue for 2025 was $149.6 million, up from $76.76 million in 2024, marking a dollar change of $72.84 million[218] - Secure Networks segment revenue decreased by 51.7% in 2025, totaling $15.2 million compared to $31.5 million in 2024[221] Goodwill and Impairment - Goodwill represented 2.1% of total assets as of December 31, 2025, down from 11.3% in 2024[248] - A goodwill impairment charge of $14.9 million was recognized in the fourth quarter of 2025 due to a decline in the Secure Networks reporting unit's backlog[251] - The company recorded an impairment charge of $11.7 million for intangible assets in the year ended December 31, 2024[254] - The company evaluates the impairment of goodwill annually, with the assessment based on qualitative factors and quantitative tests if necessary[249] Financial Obligations - Total contractual obligations amount to $18.816 million, with $8.902 million due within one year[238] - The company has a senior secured revolving credit facility of $30 million, amended to $15 million with an expansion feature of up to $15 million, maturing on December 30, 2026[240] - The company has no outstanding balances under the revolving credit facility as of December 31, 2025, and is in compliance with all covenants[241] Research and Development - Research and development expenses decreased by $1.4 million or 16.4% in 2025, attributed to reduced amortization costs from discontinued projects[214] Government Funding and Initiatives - The FY2026 Defense Appropriations Bill allocated $838.7 billion in discretionary funding, with $838.5 billion specifically for defense[197] - The FY2026 budget request included a record $13.4 billion for AI and autonomy initiatives within the DoW, marking the largest single-year investment in the agency's history[199] Risk Exposure - The company is exposed to financial risks such as interest rate risk and foreign currency translation risk, but the impact is considered insignificant[261] Revenue Recognition - Revenue recognition involves estimates based on performance obligations, with adjustments recognized on a cumulative catch-up basis[245] - No revenue adjustments were recorded for the year ended December 31, 2025, while an immaterial catch-up revenue adjustment was recorded in 2024[247]

Financial Performance - The rental revenue increased by 14% to approximately $164 million, driven by an 11% expansion in fleet horsepower to about 663,000 horsepower, including 70 new large compressor units[33] - Revenues from key customers Occidental Permian and Devon Energy accounted for 59% of total revenue in 2025, with no other customer exceeding 10%[49] - Total revenues for 2025 were $172,315, up 9.9% from $156,742 in 2024[180] - Adjusted EBITDA for 2025 was $80,965, an increase of 16.5% from $69,526 in 2024[183] - Rental revenues reached $164,326 in 2025, a 13.9% increase from $144,236 in 2024[186] - Adjusted gross margin for rentals was $99,594 in 2025, reflecting a 14.0% increase from $87,333 in 2024[186] - Sales revenue for compressors, parts, and equipment declined to $3,992 million in 2025, a decrease of 47.6% compared to $7,613 million in 2024[189] - Aftermarket services revenue decreased to $3,997 million in 2025, down 18.3% from $4,893 million in 2024, while adjusted gross margin improved to 29.6%[190] Capital and Financing - The company secured an amendment to its credit facility, increasing total commitment to $400 million and expanding the accordion feature to $100 million[32] - The company has a Credit Facility with a total commitment of $400 million, with $230 million borrowed and $170 million available for future borrowing as of December 31, 2025[118] - The company increased the borrowing commitment of its Credit Facility from $300 million to $400 million, with the right to request an additional $100 million[122] - As of December 31, 2025, the company had $230 million of borrowings outstanding under the Credit Facility and anticipates additional borrowing in 2026[122] - The company may face limitations in obtaining additional financing for working capital, acquisitions, and capital expenditures due to covenants in the Credit Facility[124] - The company’s debt levels may negatively impact its financial stability and ability to incur additional indebtedness[122] Operational Efficiency - The company aims to improve profitability by optimizing its existing utilized fleet and increasing asset utilization through monetizing non-cash assets[43] - The company plans to expand its rental fleet through pre-contracted agreements, focusing on larger horsepower compressors for unconventional oil production[43] - The company has made technical innovations to its rental compression units, enhancing operational performance and reducing environmental impact[48] - The company has shifted its capital program towards acquiring compressor packages ranging from 400 horsepower to 2,500 horsepower to meet market demand[169] Environmental Compliance and Risks - The Inflation Reduction Act of 2022 imposed a methane emissions charge on facilities emitting 25,000 metric tons or more of CO2 equivalent gas per year, but the company does not operate any facilities subject to this charge[60] - The company is currently not required to expend significant resources for environmental compliance, but future compliance costs could become material[57] - The company believes its existing environmental control procedures are adequate, but future developments in environmental laws could lead to increased compliance costs[68] - The company could face liabilities under the Comprehensive Environmental Response, Compensation and Liability Act for environmental contamination[70] - The company is subject to various federal, state, and local regulations that could increase operational costs and affect demand for services[58] - The Clean Air Act regulates emissions from industrial sources, requiring the company to meet stringent air emission standards[76] - The Clean Water Act imposes strict controls on pollutant discharges, which could indirectly impact the company's operations if customers violate regulations[80] - The company anticipates that future legislation could impose additional restrictions on the oil and gas sector, potentially reducing demand for its compressor products and services[67] Employee Relations and Workforce - The company had 259 total employees as of December 31, 2025, with no union representation[83] - The company offers a comprehensive compensation package, including a 401(k) plan with employer matching contributions and various health insurance benefits[84] - The company is committed to maintaining a safe work environment and complies with applicable health and safety laws[86] - The company has good relations with its employees, which is essential for maintaining operational efficiency[83] Market Conditions and Competition - The company faces risks from decreased oil and gas prices, which can adversely affect revenue derived from industry expenditures[89] - The company competes with larger equipment and service providers, which may result in reduced profitability and loss of market share[91] - The industry is highly cyclical, leading to volatile operations and potential revenue decreases due to low demand and pricing pressures[98] - A reduction in demand for oil could adversely affect the company's business and financial condition[97] - Approximately 50% of compressor rental agreements are month-to-month, representing about 25% of rented horsepower, which poses risks to revenue stability[109] - Two customers accounted for approximately 59% of revenue and 62% of accounts receivable as of December 31, 2025, indicating a high dependency on a limited customer base[113] Financial Management and Taxation - The company received over $12 million in federal income tax refunds, significantly impacting its cash flow[36] - The company’s ability to utilize net operating loss carryforwards may be limited by ownership changes, potentially increasing U.S. federal income tax liabilities[132] - The company has no valuation allowance and fully expects to utilize all of its deferred tax assets[227] - Management judgment is critical in determining the provision for income taxes and any valuation allowance against net deferred tax assets[227] Cybersecurity and IT Risks - The company relies heavily on IT systems for operations, and failures or cyber-attacks could result in significant financial losses[134][135] - The company has not experienced any material cybersecurity incidents, indicating effective risk management practices[148] - The company maintains a cybersecurity program that includes AI-driven technologies for threat detection and employee training[149] Stock and Shareholder Matters - The company initiated a common stock dividend of $0.10 per share in Q3 2025, increasing it to $0.11 per share for Q4 2025 and Q1 2026[34] - A cash dividend of $0.11 per share was declared, totaling $1.4 million, with future dividends dependent on earnings and capital requirements[159] - The company authorized a stock repurchase program of $6 million in 2025, which may be suspended or modified at the Board's discretion[140] - The company’s Board of Directors has the authority to issue up to five million shares of preferred stock, which may hinder acquisition bids[144]

Financial Performance - The net loss for the year ended December 31, 2025, was $224.3 million, reflecting an increase of $86.1 million (62%) compared to the previous year [359]. - The net loss for the year ended December 31, 2025, was $224.3 million, compared to a net loss of $138.2 million in 2024, reflecting an increase in losses of approximately 62.3% [416]. - Basic and diluted net loss per share was $(0.70) for 2025, compared to $(0.48) in 2024, indicating a worsening in earnings performance [521]. - The company reported a net loss of $224.3 million for the year ended December 31, 2025, compared to a net loss of $138.2 million in 2024, reflecting an increase of 62.3% year-over-year [521]. Research and Development - Research and development expenses increased by $64.9 million for the year ended December 31, 2025, primarily driven by intensified eVTOL development activities [361]. - Research and development expenses for the year ended December 31, 2025, were $194.7 million, up from $129.8 million in 2024, indicating a year-over-year increase of 50% [416]. - Research and development expenses are focused on the design and development of eVTOL and UATM projects, with costs expensed as incurred, reflecting the company's commitment to innovation [436]. - Research and development expenses totaled $194.7 million in 2025, a significant increase of 50% from $129.8 million in 2024 [523]. Operating Expenses - Total operating expenses for the year ended December 31, 2025, were $225.4 million, an increase of $69.0 million (44%) compared to 2024 [359]. - Selling, general and administrative expenses rose by $4.2 million for the year ended December 31, 2025, due to an increase in workforce and outsourced services [363]. - Selling, general and administrative expenses rose to $30.7 million in 2025, up 15% from $26.5 million in 2024 [524]. Liquidity and Capital Resources - As of December 31, 2025, the Company has total liquidity of approximately $533 million, which is expected to be sufficient to fund its operating plan for at least the next twelve months [371]. - Net cash provided by financing activities increased by $60.1 million in 2025, driven by $132.0 million in incremental proceeds from the issuance of common stock [378]. - The Company intends to utilize a combination of equity and debt financing to fund future capital needs, with no specific sources of additional funding currently decided [372]. - The Company has approximately $149.0 million available to be drawn under its debt arrangements and grants as of December 31, 2025 [378]. - The company raised approximately $230.0 million through a registered direct offering on August 13, 2025, with issuance costs of about $12.6 million [487]. Debt and Financing - The company has drawn $24.2 million from a loan agreement with BNDES for the development of its eVTOL project as of December 31, 2025 [380]. - The company entered into a loan agreement with BNDES for R$490 million (approximately $89.1 million) to support the eVTOL project, with a weighted-average interest rate of 5.5% [470][472]. - The company's total debt, net of issuance costs, rose to $179.8 million in 2025, up from $132.0 million in 2024, marking a 36% increase [469]. - The company has approximately $139.8 million available to be drawn under its debt arrangements as of December 31, 2025 [482]. Assets and Equity - As of December 31, 2025, total assets increased to $434.875 million from $318.242 million in 2024, representing a growth of approximately 36.7% [414]. - The company’s total equity slightly decreased to $123.758 million in 2025 from $123.922 million in 2024, a decline of about 0.13% [414]. - Cash and cash equivalents increased significantly to $103.233 million in 2025 from $56.366 million in 2024, a growth of approximately 83.1% [414]. - The company reported financial investments classified as held-to-maturity with an amortized cost of $280.845 million as of December 31, 2025, compared to $247.012 million in 2024 [449]. Taxation - The company paid $1.3 million in income taxes to the Government of Brazil during 2025, as it does not have taxable income subject to U.S. federal or state income tax [531]. - The total income tax expense for 2025 was $1.0 million, compared to $0.5 million in 2024 [534]. - The company has no history of tax audits and believes it has provided adequate reserves for potential tax deficiencies [538]. Strategic Plans - The company anticipates commercialization of eVTOL services beginning in 2026, with initial revenue generation from eVTOL sales expected in 2027 [351]. - The company plans to obtain necessary certifications from aviation authorities, including ANAC, FAA, and EASA, to launch commercial services [354]. - The company plans to continue its focus on expanding the urban air mobility ecosystem through its eVTOL project and related services, indicating a strategic direction towards market expansion [425]. Other Financial Metrics - The company recognized share-based compensation expenses of $4.160 million in 2025, up from $3.699 million in 2024, indicating an increase of about 12.5% [423]. - The company reported a significant unrealized loss on exchange rate changes of $1.893 million in 2025, compared to a gain of $2.489 million in 2024 [423]. - The company recognized a loss of $0.1 million from derivative liabilities for the year ended December 31, 2025 [508].

Revenue - Collaboration revenue for Q4 2025 was $21.9 million, a significant increase from $1.6 million in Q4 2024, primarily due to the agreement with ImmunoScape[7] - Full year 2025 collaboration revenue reached $27.5 million, compared to $9.3 million in 2024, attributed to the ImmunoScape collaboration[10] Expenses - Research and development expenses for Q4 2025 were $16.5 million, up from $7.2 million in Q4 2024, driven by increased manufacturing and lab costs for CUE-401[8] - General and administrative expenses decreased to $3.5 million in Q4 2025 from $4.0 million in Q4 2024, mainly due to reduced employee compensation[9] - Total operating expenses for Q4 2025 were $19.9 million, compared to $11.2 million in Q4 2024[15] Cash Position - As of December 31, 2025, the company had $27.1 million in cash and cash equivalents, an increase from $22.5 million in 2024[14] - The company raised $10.2 million through a public offering and received $15 million in upfront payments from the ImmunoScape collaboration[5][11] Product Development - CUE-401 demonstrated promising preclinical safety and tolerability data, with no adverse events observed in studies[6] - The company plans to host a Virtual R&D Day to highlight CUE-401 within the next few weeks[11] Net Income - The company reported a net income of $1.6 million for Q4 2025, compared to a net loss of $9.5 million in Q4 2024[15]

Financial Position - The company has cash and cash equivalents of $27.1 million as of December 31, 2025, and expects to have sufficient funds to meet obligations into the first quarter of 2027[532]. - The company has incurred significant losses since inception and has never generated revenue from product sales, raising substantial doubt about its ability to continue as a going concern[532]. - The company has financed its working capital primarily through equity offerings and collaboration agreements, including those with BI and IMSCP[596]. - The loan principal balance under the Loan Agreement with Silicon Valley Bank was fully paid off as of December 31, 2025[585]. - Cash used in operating activities decreased by $14.6 million in 2025 compared to 2024, primarily due to a lower net loss[609]. - The company expects to fund operations into Q1 2027 with existing cash and cash equivalents but will need to raise substantial additional capital to continue operations[607][613]. - The company has a history of losses and an accumulated deficit, raising substantial doubt about its ability to continue as a going concern[613][614]. Research and Development - The company plans to file an investigational new drug (IND) application for CUE-401 in the second quarter of 2026, with Phase 1 trial results anticipated in the second half of 2026[523]. - CUE-401 is designed to promote immune tolerance and has shown potential to establish a "tolerance positive feedback loop" in preclinical models, indicating its capability to convert autoreactive T effector cells into regulatory T cells[522]. - The CUE-500 series, including CUE-501, targets and depletes autoimmune disease-causing B cells and has been licensed to Boehringer Ingelheim International GmbH for development[525]. - The CUE-100 series, including CUE-101 and CUE-102, has been licensed to ImmunoScape Pte. Ltd. for the development of a novel immunotherapy approach for solid tumors[528]. - The company has completed GLP toxicology studies for CUE-401 in both mice and non-human primates, reducing the risk profile for this program[523]. - The CUE-500 series is believed to have therapeutic potential across multiple disease areas due to its modularity and ability to target various pathogenic cell types[526]. - The company anticipates increased expenses related to ongoing research and development, particularly for the Immuno-STAT platform and clinical trials[612]. Revenue and Collaboration - The company recognized $8.1 million in revenue related to the BI Collaboration and License Agreement for the year ended December 31, 2025[572]. - An upfront payment of $10.1 million was received from BI in the second quarter of 2025, net of $1.9 million in withholding taxes[570]. - The company is eligible for up to approximately $345.0 million in success-based milestone payments under the BI Collaboration and License Agreement[570]. - Revenue of $0.4 million was recognized related to the Ono Collaboration and Option Agreement for the year ended December 31, 2025, down from $9.2 million in 2024[566]. - Total collaboration revenue recorded from the LG Chem Collaboration Agreement since its inception is $20.0 million as of December 31, 2025[563]. - Collaboration revenue for the year ended December 31, 2025, increased by $18.2 million to $27.5 million compared to $9.3 million in 2024, primarily due to the BI and IMSCP Collaboration and License Agreements[588]. - The company recognized revenue of $18.9 million related to the IMSCP Collaboration and License Agreement for the year ended December 31, 2025[576]. - The company received $9.5 million in the fourth quarter of 2025 from the IMSCP Collaboration and License Agreement and is entitled to an additional $5.0 million before the first anniversary of the agreement[574]. Expenses - Research and development expenses for 2025 totaled $37.7 million, an increase of 3.8% from $36.3 million in 2024[544]. - Employee compensation costs in R&D decreased to $10.3 million in 2025 from $13.1 million in 2024, a reduction of 21.4%[544]. - Clinical trial costs dropped significantly to $3.7 million in 2025 from $7.1 million in 2024, a decrease of 47.9%[544]. - General and administrative expenses rose by $1.7 million to $16.2 million for the year ended December 31, 2025, mainly due to increased professional fees and severance expenses[589]. - Research and development expenses are expected to remain consistent in future periods[541]. - Research and development expenses for the year ended December 31, 2025, totaled $37.7 million, an increase of $1.4 million from $36.3 million in 2024, driven by higher costs related to acquired in-process research and development and manufacturing[590]. Future Financing - The company plans to finance future cash needs through equity offerings, collaborations, and strategic alliances, but market conditions may hinder these efforts[607][614]. - The company expects to finance its cash needs through a combination of public or private equity offerings, debt financings, collaborations, and grants, which may dilute existing stockholders' ownership[617]. - If the company is unable to raise additional capital, it may have to curtail technology development or operations, potentially leading to business failure[618]. Lease Agreements - The company recognized a right of use asset of $9.1 million and an operating lease liability of $9.1 million related to a License Agreement for office and laboratory space[619]. - The monthly rental rate under the License Agreement is set to increase from $200,700 in the first year to $225,760 in the final year of the term[620]. - An amendment to the License Agreement increased the monthly rental rate to $209,700 and recognized a right of use asset of $0.4 million during the year ended December 31, 2022[621]. - The company entered into an additional laboratory lease with a monthly rental rate of $59,153 for the first year, escalating to $61,519 thereafter[622]. - As of December 31, 2025, the company recorded an operating lease right-of-use asset of $4.1 million and corresponding lease liabilities of $1.9 million (short-term) and $2.3 million (long-term)[627]. - The company extended the term of the additional laboratory lease through July 14, 2026, with a monthly rental rate of $61,519[624]. - The monthly rental rate for the Office and Laboratory Space will decrease to $147,546 effective June 30, 2025, with a 4% increase scheduled for April 15, 2027[625]. - Interest expense related to lease liabilities was recorded as $0.4 million and $0.3 million for the years ended December 31, 2025 and 2024, respectively[626].

Revenue Growth - Revenues for the three months ended September 30, 2025, were $12,889,000, an increase of $4,014,000 or 45.23% compared to $8,875,000 for the same period in 2024[121]. - For the nine months ended September 30, 2025, revenues increased to $35,798 thousand, up 17.69% from $30,417 thousand in 2024, primarily driven by a $4,826 thousand increase in AMP revenues[142]. Sales Performance - Sales of AMPs increased significantly, generating $2,728,000 in revenue, up from $841,000 in the prior year, reflecting a growth of 224.5%[123]. - The number of PATH machines sold increased to 18 units in Q3 2025 from 15 units in Q3 2024, while AMP sales rose to 17 units from 6 units[123]. - The company sold 42 AMPs in the nine months ended September 30, 2025, compared to 10 AMPs in the same period of 2024, reflecting a significant increase in demand[145]. - PATH machine sales decreased to 50 units for the nine months ended September 30, 2025, down from 55 units in 2024, attributed to elevated mortgage interest rates and economic uncertainty[144]. - Sales of used machines decreased from 21 to 16 units for the nine months ended September 30, 2025, compared to the same period in 2024[146]. Pricing Trends - The average sales price of PATH machines rose to $373, an increase of $15 from the previous year, while the average sales price of AMPs increased to $160, up from $140[123]. - The average sales price of AMPs increased from $148 to $150, while the average sales price of PATH machines rose from $344 to $373[142]. Profitability and Loss - Gross profit for the three months ended September 30, 2025, was $3,037,000, representing an increase of 83.84% from $1,652,000 in the same period last year[121]. - The net loss for the three months ended September 30, 2025, was $2,871,000, a reduction of 55.45% from a net loss of $6,444,000 in the prior year[121]. - Net loss for the nine months ended September 30, 2025, was $8,954 thousand, a slight improvement from a net loss of $9,151 thousand in 2024, reflecting a decrease of 2.15%[141]. Operating Expenses - Operating expenses totaled $4,760,000, an increase of 27.51% compared to $3,733,000 in Q3 2024, driven by higher selling, general, and administrative expenses[121]. - Operating expenses rose to $4,760 thousand for the three months ended September 30, 2025, a 27.51% increase from $3,733 thousand in 2024, aligning with the company's strategic growth plan[133]. - Operating expenses rose by $2,569 or 24.22% to $13,174 for the nine months ended September 30, 2025, driven by strategic growth initiatives[150]. Cost of Revenues - Cost of revenues increased by $2,629 thousand or 36.40% to $9,852 thousand for the three months ended September 30, 2025, primarily due to higher machine costs and increased production[132]. - Cost of revenues increased by $6,012 or 26.24% to $28,924 for the nine months ended September 30, 2025, compared to $22,912 in 2024[150]. Cash Flow and Working Capital - Cash and current working capital decreased to $2,421 and $2, respectively, as of September 30, 2025, compared to $2,587 and $3,602 as of December 31, 2024[160]. - Net cash used in operating activities improved to $(1,279) for the nine months ended September 30, 2025, compared to $(2,560) in 2024[167]. - Financing activities generated $1,467 for the nine months ended September 30, 2025, slightly down from $1,479 in 2024[167]. Market and Product Development - The introduction of the AMP-L100 in 2023 marked the company's emergence as an AgTech innovator, targeting specific market needs in golf courses and sports fields[100]. - As of September 30, 2025, the company had over 770 PATH machines, AMPs, and M220 machines in service globally[102]. - Parts and services revenues increased due to higher parts sales prices and growth in the installed base of machines, with over 790 machines in service worldwide as of September 30, 2025[129]. - Parts and services revenues increased due to a growing installed base of over 790 PATH machines and AMPs, alongside higher retail prices for parts[147]. Financial Instruments - The change in fair value of convertible debentures was negative $1,139 thousand for the three months ended September 30, 2025, compared to a negative $706 thousand in 2024, indicating a decrease in expense of 61.33%[136]. - Change in fair value of convertible debentures improved by $657 or 28.88%, resulting in a negative $1,618 for the nine months ended September 30, 2025[155]. Interest Income and Expense - Interest income increased by $7 or 35.0% to $27 for the nine months ended September 30, 2025, due to higher average savings account balances[153]. - Interest expense decreased by $81 or 47.37% to $90 for the nine months ended September 30, 2025, attributed to the timing of amortization and repayments[154]. Supply Chain Considerations - The company anticipates supply constraints for motors could continue through the remainder of 2025, potentially affecting AMP production and delivery[127].

Risks and Uncertainties - TrustCo Bank Corp NY's forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections [11]. - A prolonged economic downturn could adversely affect operations and financial results, particularly in the geographic market area [14]. - Changes in interest rates may significantly impact financial condition and results of operations [15]. - The commercial loan portfolio is increasing, which may lead to additional provisions for credit losses or charge-offs, negatively impacting earnings and capital [15]. - TrustCo is exposed to credit risk in its lending activities, particularly in residential mortgage loans [15]. - Regulatory capital rules could slow growth and may necessitate raising additional capital [20]. - The company may face challenges from digital banking trends that create deposit volatility, affecting operations and profitability [15]. - Changes in laws and regulations may adversely affect operations and income, including compliance costs [20]. - The company is subject to numerous laws designed to protect consumers, and failure to comply could lead to sanctions [20]. Forward-Looking Statements - TrustCo emphasizes that forward-looking statements should not be relied upon as predictions of future events [21]. - The company believes that the expectations reflected in these statements are reasonable but cannot guarantee future results [21]. - TrustCo disclaims any obligation to revise forward-looking statements based on subsequent events or circumstances [21]. - Overall, the content is focused on disclaimers regarding forward-looking statements rather than financial performance [21]. Lack of Specific Data - There is no specific financial performance data or user metrics provided in the content [21]. - No details on new products, technologies, market expansion, or mergers and acquisitions are mentioned [21]. - The company does not provide any future guidance or performance outlook in the content [21]. - No specific percentages or numerical data are available in the provided text [21]. - The content lacks detailed insights into strategic initiatives or operational changes [21]. - There are no mentions of user data or customer metrics in the document [21].

Regulatory and Compliance Risks - Direct selling is subject to intense government scrutiny, and changes in laws or regulations could adversely affect the company's business [177]. - The company is subject to various governmental export control and trade sanctions laws that could impair its ability to compete in international markets [171]. - The company is subject to extensive government regulation regarding its products and manufacturing activities, which could limit or prevent sales in some markets [171]. - The company has faced legal actions and regulatory scrutiny regarding misleading product claims and earnings representations, which could lead to significant fines and operational changes [178]. - The company has faced regulatory challenges in various markets, including China, India, South Korea, Malaysia, and Indonesia, requiring modifications to its Compensation Plan to comply with local laws [190]. - The Chinese government has imposed significant fines on companies violating direct selling regulations, which could adversely affect the company's operations in China [201]. - The company must obtain direct selling licenses from municipalities and provinces in China to expand its business, with the application review process currently suspended since 2019 [203]. - The company’s operations in China are subject to evolving government regulations, which could materially harm its business if compliance is not maintained [194]. - Compliance with environmental laws and regulations may require substantial expenditures, potentially affecting financial condition and operations [221]. - Compliance with anti-corruption laws, including the U.S. Foreign Corrupt Practices Act, is critical as the company expands internationally, with potential severe penalties for violations [234][236]. Financial Performance and Market Conditions - The Greater China region accounts for a significant part of the company's business and expected growth, and a decline in sales or customers in this region would harm its financial condition [171]. - Economic conditions have negatively impacted sales and profitability, with ongoing uncertainty regarding future market conditions [274]. - The effective tax rate has significantly increased over the past few years and is expected to remain elevated due to a geographic misalignment between 76% of net sales generated outside the U.S. and the majority of operating expenses incurred in the U.S. [239]. - The effective tax rate may continue to exceed historical levels if the company cannot diversify income geographically or implement compliant cross-border tax planning strategies [241]. - The company is exposed to foreign currency risks due to a significant portion of sales generated outside the United States, which can affect sales and earnings [381]. Operational Challenges - The company may incur obligations relating to the activities of its Brand Partners, including potential reclassification of independent contractors to employees, which could impose additional financial responsibilities [186]. - The company has experienced adverse publicity related to enforcement of Brand Partner policies, making it difficult to attract and retain Brand Partners and Preferred Customers [185]. - The company has experienced temporary shortages of raw materials, leading to higher prices that negatively impacted gross margins [225]. - Delays and disruptions in transportation and distribution have resulted in increased costs and could negatively impact profitability [226]. - The company may face challenges in integrating acquired businesses, which could lead to unexpected costs and operational disruptions [266]. Strategic Initiatives and Acquisitions - The Hiya Acquisition may not be accretive to earnings per share and could result in additional costs and expenses, negatively affecting the market price of the company's common stock [176]. - The Hiya Acquisition was completed in December 2024, with integration activities expected to continue into 2025, potentially disrupting ongoing business [264]. - The company anticipates synergies from the Hiya Acquisition, but integration challenges may delay or prevent realization of these benefits [263]. - In 2023, the company launched an Affiliate program in certain markets, modifying its Brand Partner Compensation Plan to enhance earning opportunities [189]. Market Competition and Customer Dynamics - The company faces intense competition in the nutritional supplement market, with the need to adopt AI technology to maintain its competitive position [278]. - The company relies on Brand Partners and Preferred Customers for sales growth, with a noted decline in active Customers in several markets, including China [256]. - Rise's business is heavily dependent on a limited number of key retail customers, and any loss or reduction in orders could materially affect its financial condition [271]. - Adverse publicity and negative public perception regarding direct selling and product efficacy could harm the company's reputation and financial results [275]. Risk Management and Security - The company faces risks related to data security and privacy, including potential breaches that could lead to significant liabilities and damage to reputation [248][249]. - The company has implemented a business continuity and disaster recovery plan to mitigate risks associated with information technology systems, but vulnerabilities remain [247]. - The company has incurred substantial costs to comply with various data privacy and security laws, which may limit its ability to provide valuable products and services [255]. - The company is encountering an expanded risk landscape due to the use of artificial intelligence technologies, which may impact data security and compliance with evolving regulations [251]. Manufacturing and Supply Chain - Approximately 56% of the products sold to customers are manufactured in-house, with an increased focus on self-manufacturing of foods, personal care, and skincare products [220]. - 44% of product sales for the year ended January 3, 2026, were from third-party suppliers and manufacturers [222]. - Inflationary pressures and rising costs of commodities and raw materials could adversely affect profitability, as the company may not be able to pass all costs onto customers [216]. - The company has implemented strategies to mitigate currency fluctuation risks, including timely repatriation of earnings and entering into currency exchange contracts [215][382]. Ownership and Governance - Gull Global, Ltd., owned by founder Dr. Myron Wentz, held approximately 40.0% of the outstanding common stock as of January 3, 2026, giving him significant influence over company affairs [283]. - The concentration of stock ownership may delay or deter beneficial changes in control, potentially impacting shareholder interests [283]. - The company’s ability to protect its intellectual property is limited, as most products are not patent-protected, relying instead on trade secret laws [280].