Business Risks and Challenges - The company has not yet entered into any licensing agreements for its technology, which could adversely affect future business and financial condition [53]. - The company is a growth company with limited operating history and may never achieve sufficient revenue or profitability [50]. - The market for wearable computing devices is still in early growth stages, and if it does not grow as expected, the company's business could be harmed [47]. - The company has invested significant resources in seeking validation of its technology with B2B companies, but there is no assurance of successful agreements [53]. - The company relies on a limited number of suppliers and manufacturers, which poses risks to its operations [41]. - The company anticipates a three-to-five-year period from initial contact with B2B companies to signing licensing agreements, which may lead to resource expenditure without success [53]. - The company faces significant risks related to product quality, which could result in adverse publicity, recalls, and litigation [62]. - The company has not yet achieved widespread market acceptance for its products, which may hinder revenue generation [51]. - The company may incur significant costs due to being a public company, impacting its financial condition [48]. - The company relies on a limited number of suppliers and contract manufacturers, increasing risks of supply chain disruptions and potential delays in product delivery [69]. - Key components for products come from limited or sole sources, making the company susceptible to supply shortages and long lead times [71]. - The company faces intense competition for highly skilled personnel, particularly in Israel, which may impact its ability to attract and retain talent [75]. - The company faces increasing costs and complexities in complying with evolving data privacy and cybersecurity laws, which could adversely affect its financial condition and operating results [82]. - The company may not be able to accurately forecast consumer demand, which could negatively impact revenue and inventory management [123]. - The company may face challenges in managing a growing employee base and maintaining its corporate culture amid expansion efforts [88]. - The company operates in a highly competitive market with significant players like Apple, Meta, and Google, which could adversely affect its prospects and financial condition if it fails to compete effectively [108]. - Economic downturns or uncertainty may adversely affect consumer discretionary spending, impacting demand for the company's products and services [109]. - The company may face risks related to compliance with evolving regulations regarding AI and data privacy, which could require significant expenditures and operational adjustments [104]. - The company is vulnerable to catastrophic events such as natural disasters and cyberattacks, which could disrupt operations and negatively impact financial condition [113]. - Changes in laws and regulations related to the internet may diminish demand for the company's services and negatively impact its business [110]. Financial Performance and Projections - As of December 31, 2025, the company had an accumulated deficit of approximately $37.2 million, indicating ongoing financial challenges [122]. - The company has incurred losses in each year since its inception and expects to continue generating substantial operating losses [122]. - The company has not achieved profitability on a quarterly or annual basis and anticipates significant increases in expenses due to investments in R&D and marketing [128]. - The company may need to raise additional capital to fund growth, which could result in dilution for existing shareholders if terms are unfavorable [116]. - The company has historically relied on equity financings, and future financing may not be available on similar terms, limiting financing alternatives [117]. - Operating results may fluctuate significantly due to various factors, including demand for neural input devices and competitive landscape changes, which could affect the trading price of the company's securities [119]. - The company has an effective shelf registration statement for the sale of up to $30 million of its Ordinary Shares, with approximately $16.5 million already sold, which may lead to significant dilution for existing shareholders [142]. - If all outstanding warrants are exercised, the number of outstanding Ordinary Shares could increase by approximately 84.14%, significantly diluting existing shareholders' ownership interests [144]. - The concentration of share ownership by significant shareholders may adversely affect the trading price of the company's Ordinary Shares [130]. - The company may issue additional Ordinary Shares or convertible securities without shareholder approval, potentially leading to dilution for existing shareholders [146]. - Shareholders' proportionate ownership interest will decrease with any new issuance of shares, which may also diminish the voting strength of existing shares [147]. - The company has faced compliance issues with Nasdaq, including a notification in October 2023 regarding minimum bid price requirements, which led to a 1-for-20 reverse share split [138]. Intellectual Property and Legal Risks - The company faces challenges in protecting its intellectual property rights globally, which could adversely affect its business and financial condition [160]. - Legal proceedings to enforce patent rights may be prohibitively expensive and could divert resources from other business aspects [161]. - The company may not prevail in lawsuits concerning intellectual property rights, which could lead to invalidation of patents and negatively impact its business [163]. - The company may face litigation for alleged infringement of third-party intellectual property rights, which could result in significant liability and impact business operations [165]. - Changes in patent laws and regulations could increase uncertainties and costs related to patent applications and enforcement, potentially affecting the company's financial condition [168]. Market and Product Development - The Mudra Band, the company's first B2C consumer product, commenced shipment in December 2023, enabling gesture control across Apple ecosystem devices [215]. - The Mudra Link, a universal neural band for controlling multiple operating systems, was launched in September 2024 and has been sold and shipped regularly since February 2025 [215]. - The company is developing a non-invasive neural input interface in the form of a wearable wristband for controlling digital devices using subtle finger movements [215]. - The Mudra Inspire, a B2B development kit product, started selling in 2018 and contributed to early-stage revenues [218]. - The company aims to create a universal input device for touchless interaction with technology, setting a standard for the Metaverse [216]. - The Mudra Experience Studio, launched in February 2026, provides a universal neural input platform for XR and AI developers [219]. - The company employs a "Push-Pull" strategy to create demand for consumer products while collaborating with manufacturers to validate solutions [227]. - The total addressable market (TAM) for digital devices includes wearable computers, face computers, and home digital devices, with Mudra positioned as a universal interface for all [228]. - The global market for wrist-worn smart devices reached over 150 million units shipped in the first three quarters of 2025, representing a 10% increase year-on-year [233]. - Smartwatches accounted for nearly 120 million units shipped, up 7.3% year-on-year, while fitness trackers saw a 21.3% increase, totaling 32.86 million units [233]. - A December 2025 report forecasts global XR glasses shipments to grow approximately 320% in 2025, reaching 10.6 million units, with a compound annual growth rate of 29.3% expected through 2029 [235]. - The Mudra technology can detect multiple gesture types, including hand movements and fingertip pressure, enabling natural command input without physical contact [223]. - The company has established a closed-loop AI ecosystem through ai6 Labs, integrating neural research and product commercialization to strengthen its technological position [226]. - The Mudra Experience Studio allows for cross-platform integration, transforming neural sensing technology into a scalable input layer for various digital environments [230]. Regulatory and Compliance Issues - The California Consumer Privacy Act (CCPA) and other regulations may increase compliance costs and potential liabilities for the company [77]. - Non-compliance with the General Data Protection Regulation (GDPR) could result in fines of up to 4% of annual worldwide turnover or €20 million (approximately $21 million) [78]. - Data localization laws in various jurisdictions may inhibit market expansion and increase operational costs [79]. - The company’s reliance on third-party service providers for data management poses risks related to privacy and cybersecurity compliance [76]. - The company incurs significant costs related to compliance with SEC and Nasdaq requirements, which may increase operational expenses [190]. - Future merger and acquisition activities may require significant management attention and could dilute shareholders or incur debt [191]. - The company may encounter difficulties in enforcing non-compete agreements under Israeli law, potentially leading to increased competition [183]. Geopolitical and Economic Factors - The company operates in Israel, where ongoing geopolitical tensions and military conflicts could disrupt operations and adversely affect financial results [171]. - As of February 2026, Moody's downgraded Israel's sovereign credit rating from A2 to Baa1, while S&P Global Ratings maintained a stable outlook at A, indicating potential economic impacts on the company [172]. - Political instability in Israel may adversely affect the economy and, consequently, the company's business and growth prospects [177]. - The company may be required to pay remuneration to Israeli employees for inventions, which could lead to additional financial liabilities [178]. - The company has three employees currently in military reserve service, which could disrupt operations if the number of reservists increases significantly [176].

Financial Performance - Fourth quarter 2025 total revenue increased by 116% to $71.9 million, compared to $33.2 million in the prior-year period[5] - Full year 2025 total revenues grew by 110% to $235.2 million, compared to $111.9 million in the prior year[8] - GAAP net income for the full year 2025 was $36.5 million, compared to a net GAAP loss of $23.9 million in the prior year[8] - Adjusted net income for the full year 2025 increased by 84% to $85.7 million, compared to $46.5 million in the prior year[8] - Adjusted EBITDA for the fourth quarter of 2025 increased by 132% to $38.6 million, with an adjusted EBITDA margin of 54%[5] - Operating income for the year ended December 31, 2025, was $88.76 million, a significant improvement from an operating loss of $0.89 million in 2024[28] - Adjusted EBITDA for the year ended December 31, 2025, reached $132,553,833, up from $61,592,431 in 2024, reflecting a strong growth trajectory[31] - Total revenue for the year ended December 31, 2025, was $235,237,636, compared to $111,923,786 in 2024, indicating a year-over-year increase of approximately 110%[31] - The adjusted net income for the year ended December 31, 2025, was $85,660,633, compared to $46,521,713 in 2024, representing an increase of 84%[32] Asset and Equity Management - The company reported a total of $902.24 million in assets as of December 31, 2025, up from $874.16 million in 2024, reflecting an increase of approximately 3%[27] - The company’s total stockholders' equity decreased slightly to $418.54 million in 2025 from $423.29 million in 2024, a decline of about 1%[27] - Current liabilities increased to $148.59 million in 2025 from $62.47 million in 2024, marking a rise of about 138%[27] - Cash and cash equivalents decreased to $38.11 million in 2025 from $131.94 million in 2024, a decline of approximately 71%[27] Revenue Breakdown - Life solutions revenue for the year ended December 31, 2025, was $163.17 million, up from $104.96 million in 2024, representing a growth of about 55%[28] Return Metrics - Annualized return on equity (ROE) for the fourth quarter of 2025 was 22%, compared to 13% in the prior year[8] - The adjusted annualized return on invested capital (ROIC) improved to 20% for the year ended December 31, 2025, compared to 15% in 2024[32] - The adjusted annualized return on equity (ROE) for the three months ended December 31, 2025, was 22%, up from 13% in the same period of 2024[34] Earnings Per Share - Earnings per share (diluted) for the year ended December 31, 2025, was $0.36, compared to a loss of $0.34 in 2024[28] - The adjusted earnings per share (EPS) for the three months ended December 31, 2025, was $0.24, compared to $0.16 in 2024, reflecting a 50% increase[29] Strategic Initiatives - The company completed a strategic acquisition of AccuQuote to enhance its financial services capabilities[8] - The company approved an inaugural annual cash dividend of $0.20 per share and authorized a $20 million share repurchase program[8] - Originations capital deployment for the full year 2025 was $580.8 million, an increase of 53% from the prior year[8] Cost Management - Stock-based compensation for the three months ended December 31, 2025, was $5,149,800, down from $24,760,007 in the same period of 2024, suggesting improved cost management[31]

Financial Performance - Fourth quarter 2025 total revenue increased by 116% to $71.9 million, compared to $33.2 million in the prior-year period[5] - Full year 2025 total revenues grew by 110% to $235.2 million, compared to $111.9 million in the prior year[8] - GAAP net income for the full year 2025 was $36.5 million, compared to a net GAAP loss of $23.9 million in the prior year[8] - Adjusted net income for the full year 2025 increased by 84% to $85.7 million, compared to $46.5 million in the prior year[8] - Adjusted EBITDA for the fourth quarter of 2025 increased by 132% to $38.6 million, with an adjusted EBITDA margin of 54%[5] - Operating income for the year ended December 31, 2025, was $88.76 million, a significant improvement from an operating loss of $0.89 million in 2024[28] - Adjusted EBITDA for the year ended December 31, 2025, reached $132,553,833, up from $61,592,431 in 2024, reflecting a strong growth trajectory[31] - The adjusted net income for the year ended December 31, 2025, was $85,660,633, compared to $46,521,713 in 2024, representing an increase of 84%[32] - The adjusted EBITDA margin for the year ended December 31, 2025, was 56%, compared to 55% in 2024, indicating stable profitability[31] Growth Metrics - The company initiated its full year 2026 outlook for adjusted net income to be between $96 million and $104 million, implying growth of up to 22% compared to full year 2025[10] - Annualized return on equity (ROE) for the fourth quarter of 2025 was 22%, compared to 13% in the prior year[8] - Annualized return on invested capital (ROIC) for the fourth quarter of 2025 was 21%, compared to 11% in the prior year[8] - The adjusted annualized return on invested capital (ROIC) improved to 20% for the year ended December 31, 2025, compared to 15% in 2024[32] - The adjusted annualized return on equity (ROE) for the three months ended December 31, 2025, was 22%, up from 13% in the same period of 2024[34] Revenue and Profitability - Total revenues for the year ended December 31, 2025, reached $235.24 million, a significant increase from $111.92 million in 2024, representing a growth of approximately 110%[28] - Gross profit for the year ended December 31, 2025, was $206.38 million, compared to $100.55 million in 2024, indicating a growth of about 105%[28] - The company reported a significant increase in life solutions revenue, which rose to $163.17 million in 2025 from $104.96 million in 2024, marking a growth of approximately 55%[28] - Earnings per share (diluted) for the year ended December 31, 2025, was $0.36, compared to a loss of $0.34 in 2024[28] - The adjusted earnings per share (EPS) for the three months ended December 31, 2025, was $0.24, compared to $0.16 in 2024, reflecting a 50% increase[29] Asset and Liability Management - Current liabilities increased to $148.59 million in 2025 from $62.47 million in 2024, reflecting a rise of about 138%[27] - Cash and cash equivalents decreased to $38.11 million in 2025 from $131.94 million in 2024, a decline of approximately 71%[27] - The total assets of the company increased to $902.24 million in 2025, up from $874.16 million in 2024, representing a growth of about 3%[27] - The company’s long-term debt increased to $275.78 million in 2025 from $224.74 million in 2024, an increase of approximately 23%[27] - Total assets as of December 31, 2025, were $902,240,258, an increase from $874,164,752 in 2024[32] Strategic Initiatives - The company completed a strategic acquisition of AccuQuote to enhance its financial services capabilities[8] - Originations capital deployment for the full year 2025 was $580.8 million, an increase of 53% from the prior year[8] - Stock-based compensation for the three months ended December 31, 2025, was $5,149,800, down from $24,760,007 in the same period of 2024, suggesting improved cost management[31] Quarterly Performance - For the three months ended December 31, 2025, Abacus Global Management reported a net income of $7,226,649, a significant improvement compared to a net loss of $(19,009,504) for the same period in 2024[29]

Financial Performance - Fourth quarter 2025 total revenue increased by 116% to $71.9 million, compared to $33.2 million in the prior-year period[5] - Full year 2025 total revenues grew by 110% to $235.2 million, compared to $111.9 million in the prior year[8] - GAAP net income for the fourth quarter 2025 was $7.2 million, a significant improvement from a net loss of $18.3 million in the prior-year period[5] - Adjusted net income for the full year 2025 rose by 84% to $85.7 million, compared to $46.5 million in the prior year[8] - Adjusted EBITDA for the fourth quarter 2025 increased by 132% to $38.6 million, with an adjusted EBITDA margin of 54%[5] - Adjusted Net Income for Q4 2025 was $22,968,251, compared to $13,403,973 in Q4 2024, representing a year-over-year increase of 71%[29] - Adjusted EBITDA for Q4 2025 was $38,604,907, significantly higher than $16,633,028 in Q4 2024, reflecting a 132% increase[31] - The Adjusted EBITDA Margin for Q4 2025 was 54%, compared to 50% in Q4 2024, showing an improvement in operational efficiency[31] - The company reported a Net Income Margin of 10% for Q4 2025, a significant recovery from a margin of -57% in Q4 2024[31] Growth and Outlook - The company initiated its full year 2026 outlook for adjusted net income to be between $96 million and $104 million, implying growth of up to 22% compared to 2025[10] - Originations capital deployment for the full year 2025 was $580.8 million, an increase of 53% from the prior year[8] - Life solutions revenue for the year ended December 31, 2025, was $163.17 million, up from $104.96 million in 2024, representing a growth of approximately 55%[28] - Total Revenue for the year ended December 31, 2025, reached $235,237,636, up from $111,923,786 in 2024, indicating a growth of 110%[31] Profitability Metrics - Return on equity (ROE) for the full year 2025 was 20%, compared to 17% for the full year 2024[8] - Adjusted Annualized Return on Invested Capital (ROIC) improved to 21% in Q4 2025 from 11% in Q4 2024[32] - Adjusted Annualized Return on Equity (ROE) for Q4 2025 was 22%, up from 13% in Q4 2024, indicating enhanced profitability for shareholders[34] Asset and Liability Management - The company reported a total asset value of $902.24 million as of December 31, 2025, up from $874.16 million in 2024, reflecting an increase of approximately 3.9%[27] - Current liabilities increased to $148.59 million in 2025 from $62.47 million in 2024, marking a rise of approximately 137.5%[27] - The company’s total liabilities increased to $478.70 million in 2025 from $450.87 million in 2024, an increase of about 6.2%[27] - Cash and cash equivalents decreased to $38.11 million in 2025 from $131.94 million in 2024, a decline of about 71%[27] Strategic Initiatives - The company completed a strategic acquisition of AccuQuote to enhance its financial services capabilities[8] - The company approved an inaugural annual cash dividend of $0.20 per share and authorized a $20 million share repurchase program[8] - Business acquisition and project legal costs for Q4 2025 totaled $5,772,287, compared to $5,129,947 in Q4 2024, indicating ongoing investment in growth initiatives[31] - The company incurred Stock-Based Compensation of $5,149,800 in Q4 2025, down from $24,760,007 in Q4 2024, reflecting cost management efforts[31] Operating Performance - Gross profit for the year ended December 31, 2025, was $206.38 million, compared to $100.55 million in 2024, indicating a growth of about 105%[28] - Operating income for the year ended December 31, 2025, was $88.76 million, a significant improvement from an operating loss of $0.89 million in 2024[28] - Total Assets as of December 31, 2025, were $902,240,258, an increase from $874,164,752 in 2024[32]

Financial Performance - For the year ended December 31, 2025, net sales decreased by 86% to $59.824 million from $420.571 million in 2024[266] - Gross profit for 2025 was $28.747 million, down 87% from $219.227 million in 2024, resulting in a gross margin of 48% compared to 52% in 2024[266] - The company reported a net loss of $136.005 million for 2025, compared to a net loss of $53.719 million in 2024, representing an increase in loss of 153%[266] - The Company's net sales for the year ended December 31, 2025 decreased by $360.7 million, or 86%, to $59.8 million compared to $420.6 million for the year ended December 31, 2024, primarily due to the deconsolidation of Holdings[267] - Domestic net sales for the year ended December 31, 2025 decreased by $289.0 million, or 84%, to $54.5 million compared to $343.5 million for the year ended December 31, 2024[268] - International net sales for the year ended December 31, 2025 decreased by $71.8 million, or 93%, to $5.3 million compared to $77.1 million for the year ended December 31, 2024[269] - The Company reported a loss from operations of $13.7 million for the year ended December 31, 2025, compared to income from operations of $107.6 million for the year ended December 31, 2024, resulting in an operating margin of (23%) compared to 26%[272] - Adjusted net income for 2025 was $120.8 million, compared to $98.2 million in 2024 and $88.1 million in 2023[295] - Adjusted EBITDA for 2025 was $171.8 million, an increase from $151.4 million in 2024 and $145.0 million in 2023[292] Operating Expenses - Operating expenses decreased by 62% to $42.478 million in 2025 from $111.605 million in 2024[266] - Operating expenses for the year ended December 31, 2025 decreased by $69.1 million, or 62%, to $42.5 million compared to $111.6 million for the year ended December 31, 2024[271] - Other expenses for the year ended December 31, 2025 increased by $23.5 million, or 12%, to $212.1 million compared to $188.6 million for the year ended December 31, 2024[273] Cash Flow and Debt - The company had cash and cash equivalents of $114.6 million as of December 31, 2025, compared to $77.5 million in 2024[300] - Total debt principal outstanding was $186.3 million as of December 31, 2025, down from $197.5 million in 2024[300] - Cash used in operating activities for 2025 was $22.9 million, a decrease of $152.5 million from cash provided by operating activities of $129.6 million in 2024[310] - Cash used in investing activities for 2025 was $60.7 million, primarily due to cash deconsolidation from the Spin-Off[311] - Cash provided by financing activities for the year ended December 31, 2025, was $120.8 million, compared to cash used of $83.4 million in 2024, primarily due to proceeds from the exercise of warrants totaling $156.2 million[312] - The Company has total expected contractual cash obligations of $468.96 million as of December 31, 2025, with $33.88 million due within one year and $186.25 million in long-term debt[314] Equity and Investments - Earnings in equity method investment for 2025 were $128.805 million, a 100% increase from zero in 2024[266] - The Company recognized $128.8 million in earnings from equity method investment for the year ended December 31, 2025, following the deconsolidation of Holdings[274] - The company completed a significant acquisition of Husky Technologies for approximately $5.0 billion, funded through a combination of debt financing and equity[303] - The company anticipates utilizing acquisitions as part of its growth strategy, which may require additional equity or debt financing[301] Tax and Regulatory Matters - The income tax expense for the year ended December 31, 2025 was $39.0 million, compared to $2.2 million for the year ended December 31, 2024[275] - The Company recorded a total of $271.4 million in TRA liability, reflecting the anticipated future tax benefits under the Tax Receivable Agreement[337] - The Tax Receivable Agreement liability increased to $271.4 million as of December 31, 2025, from $253.7 million in 2024, with $5.3 million paid to TRA Parties in 2025[337] - The TRA Amendment allows the Company to forego the acceleration of certain payments to TRA Parties due to the Tungsten Transactions, while retaining their right to acceleration upon future changes of control[338] Corporate Actions - The company completed the spin-off of Resolute Holdings on February 28, 2025, resulting in Holdings being accounted for under the equity method thereafter[244] - The Husky Transaction was completed on January 12, 2026, with a management agreement established for ongoing operational oversight[252] - The company refinanced approximately $2.1 billion of total indebtedness assumed in the Husky Transaction, including $900 million of senior secured notes and a $1.2 billion term loan facility[253] - The company transferred its listing from Nasdaq to the New York Stock Exchange on September 18, 2025[251] Risk Factors - Economic conditions, including international trade policies and tariffs, may impact the market for the company's products and services[254] - Holdings had $186.3 million in variable rate debt outstanding as of December 31, 2025, which exposes the Company to interest rate risk[352] - An increase or decrease of 100 basis points in the applicable interest rate would result in an annual change in interest expense of approximately $1.9 million[353] Stock and Compensation - The Company granted 343,720 non-qualified stock options during the year ended December 31, 2025, as part of its equity-based compensation plan[331] - Approximately 4.4 million shares were issued as part of the second Earnout threshold achieved on September 8, 2025[333] - All outstanding warrants were redeemed by December 31, 2025, resulting in no warrant liability remaining on the balance sheet[335] Revenue Recognition - The Company’s revenue recognition follows ASC 606, with revenue recognized upon the transfer of control of goods to customers, typically at shipment[321]

Financial Performance - Net loss for Q4 2025 was $30.5 million, or $2.94 per share, compared to a net loss of $28.7 million, or $5.06 per share in Q4 2024[10]. - Total operating expenses for the year ended December 31, 2025, were $122.1 million, down from $127.6 million in 2024[14]. - General and administrative expenses for Q4 2025 were $6.9 million, down from $7.5 million in Q4 2024[10]. - Accumulated deficit improved from $186.60 million in 2024 to $159.64 million in 2025, showing a reduction of about 14.5%[16]. - Total stockholders' equity increased from $139.82 million in 2024 to $158.53 million in 2025, marking an increase of approximately 13.4%[16]. Research and Development - R&D expenses for Q4 2025 were $25.0 million, up from $23.3 million in Q4 2024, primarily due to a $6.1 million increase in expenses related to CROs and CDMOs[6]. - Prula-cel Phase 1 trial shows strong enrollment momentum, with the next clinical update expected in 1H 2026[3]. - The next clinical update for prula-cel in autoimmune diseases is anticipated in the first half of 2026[2]. - FDA alignment allows outpatient dosing for lupus nephritis and systemic lupus erythematosus patients in ongoing and future studies[7]. - Regulatory filing for ADI-212 in metastatic castration-resistant prostate cancer is planned for Q3 2026, with enrollment expected to begin in Q4 2026[1]. Cash and Investments - Cash, cash equivalents, and short-term investments were $158.5 million as of December 31, 2025, compared to $176.3 million as of December 31, 2024[10]. - Cash, cash equivalents, and short-term investments decreased from $176.303 million in 2024 to $158.530 million in 2025, representing a decline of approximately 10%[16]. - Working capital decreased from $220.21 million in 2024 to $192.35 million in 2025, indicating a reduction of about 12.7%[16]. - Total assets increased from $497.89 million in 2024 to $614.26 million in 2025, reflecting a growth of approximately 23.4%[16]. Fundraising - The company raised $74.8 million in net proceeds through an equity offering in October 2025[10].

Employment and Workforce - As of January 31, 2026, Bath & Body Works employed over 60,700 associates, with 94% working in stores[38] - Approximately 94% of associates are part-time, with 51,664 part-time associates compared to 9,071 full-time associates[38] - The company awarded over $527,000 in grants to approximately 300 associates through the Associates for Associates Emergency Fund in 2025[43] - Bath & Body Works distributed $185,000 for Dream Bright scholarships in 2025, supporting associates and their dependents[43] - The company offers competitive benefits, including a company-matched 401(k) retirement plan and flexible health benefits, to enhance associate well-being[41] - Bath & Body Works emphasizes a pay-for-performance philosophy, linking compensation to overall company performance and individual contributions[40] - The company is committed to providing a safe working environment, with health and safety programs designed to meet or exceed regulatory requirements[44] Financial Management - The company maintains a fixed interest rate on all debt as of January 31, 2026, with a principal value of $3,916 million and an estimated fair value of $3,964 million[263] - Bath & Body Works' investment portfolio primarily consists of U.S. government obligations, U.S. Treasury, and AAA-rated money market funds, minimizing risk associated with interest rate changes[260] - The company utilizes foreign currency forward contracts to manage exchange rate risks, particularly for Canadian dollar-denominated earnings[258]

Financial Performance - As of December 31, 2025, First National Bank reported net income of approximately $10.0 million, up from $5.2 million in 2024, with total assets of approximately $1.109 billion[20]. - State Bank had net income of approximately $2.4 million for the year ended December 31, 2025, compared to $933 thousand in 2024, with total assets of approximately $196.4 million[22]. - Boone Bank reported net income of approximately $1.1 million for the year ended December 31, 2025, an increase from $616 thousand in 2024, with total assets of approximately $160.4 million[24]. - Reliance Bank's net income for the year ended December 31, 2025, was approximately $2.5 million, up from $1.9 million in 2024, with total assets of approximately $284.9 million[26]. - United Bank reported net income of approximately $1.5 million for the year ended December 31, 2025, compared to $1.1 million in 2024, with total assets of approximately $122.9 million[28]. - Iowa State Bank had net income of approximately $2.9 million for the year ended December 31, 2025, an increase from $2.0 million in 2024, with total assets of approximately $282.7 million[30]. - The Company reported a net income of $19.0 million for the year ended December 31, 2025, an increase of 86.2% compared to $10.2 million in 2024[185]. - Earnings per share for 2025 were $2.14, up from $1.14 in 2024[185]. - Net interest income increased to $55.7 million in 2025 from $45.0 million in 2024, driven by higher yields on loans and investments[178]. - The return on average equity for 2025 was 9.95%, compared to 6.02% in 2024, while the return on average assets increased to 0.90% from 0.48%[186]. Loan Portfolio Composition - The Banks' loan portfolio consists of approximately 51% commercial loans, 23% agricultural loans, and 25% residential loans[34][35][36]. - Commercial real estate loans represent approximately 52% of the loan portfolio, with loan-to-appraisal value ratios not exceeding 80%[41]. - Commercial and agricultural operating and term loans account for about 17% of the loan portfolio, with loan-to-value ratios generally not exceeding 75%[43]. - Residential first mortgage loans, home equity term loans, and home equity lines of credit together represent approximately 25% of the loan portfolio[47]. - Consumer loans constitute about 1% of the loan portfolio, with automobile loans not exceeding 90% of the value for new cars and 75% for used cars[48]. Regulatory Environment - The Company is subject to extensive federal and state regulation, which may materially affect its business and operations[71]. - The Company is a bank holding company registered with the Federal Reserve, subject to supervision and examination under the Bank Holding Company Act[72]. - The Banks exceeded all regulatory capital requirements and were designated as "well capitalized" under federal guidelines as of December 31, 2025[94]. - The minimum Common Equity Tier 1 (CET1) ratio requirement for well-capitalized status is set at 6.5% under the Basel III Capital Rules[91]. - Each of the Banks is in compliance with applicable loans to one borrower requirements, which generally limit loans to one borrower to 15% of total equity and reserves[86]. - The Federal Reserve requires bank holding companies to obtain approval before acquiring more than 5% of voting stock in any bank[75]. - Iowa law imposes a deposit concentration limit of 15% on the amount of deposits that any one banking organization can control[80]. Economic and Market Conditions - The company’s financial performance is highly dependent on the economic environment, including interest rates, inflation, and employment levels[109]. - Consumer inflation, as measured by the Consumer Price Index, increased by 2.7% and 2.9% for the years ended December 31, 2025 and 2024, respectively[111]. - The Federal Open Market Committee initiated a series of increases in the short-term federal funds interest rate beginning in 2022, continuing through 2023, to combat inflation[110]. - Changes in global trade policies and tariffs could adversely affect the company’s customers and, consequently, its business operations[112]. - Federal government spending and monetary supply increases could negatively impact the Company's capital ratios and contribute to inflation, affecting financial performance[143]. Operational Risks - The company faces risks related to credit losses, particularly if actual credit losses exceed the allowance for credit losses, which could decrease net income[117]. - A significant portion of the company's loan portfolio consists of loans to agricultural-related borrowers, which are subject to fluctuations in commodity prices and trade policies[119]. - The company faces operational risks related to attracting and retaining key personnel, which is critical for continued growth and success in the financial services industry[125]. - The company is subject to risks from cybersecurity attacks, which have increased due to greater reliance on technology and remote working, potentially leading to material losses[131]. - Damage to the company's reputation could adversely affect its business and financial performance[137]. - The Company faces significant risks related to reputation, which could lead to lost revenue and increased operating costs due to various factors such as employee misconduct and compliance failures[138]. Community Engagement - The Company contributed over $312 thousand to various charitable and community organizations in 2025, with employees volunteering approximately 11,000 hours[55]. Technology and Innovation - The financial services industry is undergoing rapid technological changes, and the Company's future success will depend on its ability to leverage technology to meet customer demands and improve operational efficiency[139]. - The Company has a comprehensive information security program designed to protect customer data and mitigate cybersecurity risks, which is regularly tested and updated[153]. Financial Position and Capital Management - The total assets of the Company as of December 31, 2025, were $2.13 billion, slightly up from $2.13 billion in 2024[178]. - Stockholders' equity increased to $191,287 million in 2025, compared to $169,732 million in 2024[211]. - The equity to assets ratio improved to 9.74% in 2025 from 8.19% in 2024[178]. - The efficiency ratio improved to 62.74% in 2025 from 76.59% in 2024, indicating better operational efficiency[178]. - The Company may reduce or forego future dividends to maintain capital levels and liquidity in response to economic challenges[190].

Revenue Breakdown - Prepress Solutions business accounted for 56%, 54%, and 52% of Kodak's total net revenue for the years ended December 31, 2023, 2024, and 2025, respectively[14]. - Advanced Materials and Chemicals segment revenues from Kodak Alaris represented approximately 34% of total segment revenues in 2023 and 33% in both 2024 and 2025[15]. - Industrial Film and Chemicals business accounted for 18%, 21%, and 23% of Kodak's total net revenue for the years ended December 31, 2023, 2024, and 2025, respectively[19]. Business Developments - Kodak completed construction of its cGMP lab and manufacturing facility in 2025, certified to manufacture reagents for healthcare applications, starting with phosphate buffered saline[20]. - Kodak's Prepress Solutions aims for a contract-based model with an average customer contract duration of two years, generating recurring revenue from aluminum digital printing plates[13]. - Kodak's Prosper business includes PROSPER press systems and components, utilizing ULTRASTREAM technology for high-quality printing, with recurring revenue from ink and service sales[17]. - Kodak's Software business launched the cloud-based PRINERGY On Demand Platform in 2022, enhancing its production workflow solutions[17]. - Kodak's Advanced Materials segment actively seeks licensing opportunities for its intellectual property, which may generate unpredictable but potential revenue streams[18]. Workforce and Sustainability - Kodak employs approximately 3,500 employees across 27 countries as of the end of 2025, focusing on attracting and retaining skilled workforce[31]. - Kodak is committed to sustainability, developing products that minimize resource use and reduce environmental impact, particularly in commercial printing[29]. Financial Management - Kodak's long-term debt is primarily used to finance long-term investments, while short-term debt addresses working capital needs[274]. - A 10% stronger U.S. dollar at December 31, 2025, would decrease the fair value of open foreign currency forward contracts by $19 million[275]. - A 10% change in market interest rates would affect the fair value of Kodak's fixed-rate debt by approximately $2 million at December 31, 2025[276]. - The maximum credit exposure for Kodak at December 31, 2025, was not significant, indicating effective management of counterparty credit risk[277].

Backlog and Orders - As of December 31, 2025, the backlog of unfilled orders was $53.9 million, an increase from $39.5 million at the same date in 2024[98]. - The company’s backlog may be influenced by customer tendencies to rely on short lead times during periods of low demand[98]. Research and Development - The company spent approximately $9.4 million on engineering and product development in 2025, compared to $8.5 million in 2024, reflecting a year-over-year increase of 10.6%[89]. - The company operates in a competitive environment with competitors having greater financial resources and production capabilities, necessitating ongoing investment in R&D and customer support[95]. - The company’s engineering activities are primarily focused on customized products, which are essential for maintaining competitive advantage[89]. Patents and Certifications - At December 31, 2025, the company held 24 active U.S. patents and had two pending applications, with patents expiring between 2026 and 2039[94]. - The Massachusetts, New York, and Canadian facilities are ISO 9001:2015 certified, ensuring compliance with quality management standards[85]. Workforce and Operations - The company employs approximately 100 engineers for product development and has the capacity to hire temporary third-party consultants when needed[87]. - The company has a total of 407 employees, with 385 being full-time, and has not experienced any work stoppages[99]. - The company’s manufacturing operations are located in the U.S., Canada, and Italy, utilizing both standard components and custom parts[83].