☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) Commission File Number: 001-36366 Fundamental Global Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Nevada 46-111 ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) For the three months ended March 31, 2025, Arbutus Biopharma reported a net loss of $24.5 million, an increase from the $17.9 million net loss in the same period of 2024, primarily driven by a $12.4 million restructuring charge Condensed Consolidated Balance Sheets As of March 31, 2025, total assets were $117.0 million, a decrease from $131.7 million at December 31, 2024, mainly due to reduced marketable securities and property and equipment, while total liabilities increased to $37.9 million from $34.3 million, and total stockholders' equity decreased to $79.2 million from $97.4 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $37,076 | $36,330 | | Investments in marketable securities, current | $75,631 | $86,293 | | Total current assets | $116,808 | $127,316 | | **Total assets** | **$117,010** | **$131,707** | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $19,431 | $15,618 | | **Total liabilities** | **$37,853** | **$34,341** | | **Total stockholders' equity** | **$79,157** | **$97,366** | Condensed Consolidated Statements of Operations and Comprehensive Loss For the first quarter of 2025, the company reported a net loss of $24.5 million, or ($0.13) per share, compared to a net loss of $17.9 million, or ($0.10) per share, for the same period in 2024, primarily due to a one-time restructuring charge of $12.4 million, partially offset by a $6.4 million decrease in R&D expenses Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Revenue | $1,764 | $1,532 | | Research and development | $8,959 | $15,403 | | General and administrative | $5,832 | $5,312 | | Restructuring | $12,373 | $0 | | Total operating expenses | $27,463 | $20,895 | | Loss from operations | ($25,699) | ($19,363) | | **Net loss** | **($24,526)** | **($17,875)** | | **Loss per share (basic and diluted)** | **($0.13)** | **($0.10)** | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities for the first quarter of 2025 was $13.4 million, a decrease from $19.3 million in the prior-year period, reflecting cost-saving measures, while net cash provided by investing activities was $11.3 million, mainly from net dispositions of marketable securities, and net cash from financing activities was $2.8 million, primarily from stock option exercises Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($13,391) | ($19,295) | | Net cash provided by investing activities | $11,349 | $11,694 | | Net cash provided by financing activities | $2,784 | $24,430 | | **Increase in cash and cash equivalents** | **$746** | **$16,816** | | **Cash and cash equivalents, end of period** | **$37,076** | **$43,101** | Notes to Condensed Consolidated Financial Statements The notes detail the company's business focus on infectious diseases, particularly cHBV with imdusiran and AB-101, and its ongoing patent litigation against Moderna and Pfizer/BioNTech, along with key accounting policies, revenue recognition, fair value measurements, and details of the March 2025 restructuring, with the company believing its cash resources of $112.7 million are sufficient for at least the next 12 months - The company is a clinical-stage biopharmaceutical firm focused on developing treatments for chronic hepatitis B (cHBV), specifically imdusiran (AB-729) and AB-101[22](index=22&type=chunk) - Arbutus is engaged in ongoing patent infringement lawsuits against Moderna and Pfizer/BioNTech concerning its lipid nanoparticle (LNP) delivery technology used in their COVID-19 vaccines. A trial date against Moderna in the U.S. is set for September 29, 2025[23](index=23&type=chunk) - In March 2025, the company implemented a significant restructuring, reducing its workforce by **57% to 19 employees**, exiting its corporate headquarters, and discontinuing in-house research, resulting in a one-time charge of **$12.4 million**[49](index=49&type=chunk)[81](index=81&type=chunk) - The company believes its cash, cash equivalents, and marketable securities of **$112.7 million** as of March 31, 2025, are sufficient to fund operations for at least the next 12 months[24](index=24&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's strategic focus on its cHBV pipeline (imdusiran and AB-101) and the monetization of its LNP technology through patent litigation, with a major restructuring in Q1 2025, including a 57% workforce reduction, expected to significantly lower the net cash burn, while net loss for Q1 2025 increased to $24.5 million due to restructuring costs, though R&D spending decreased, and the company ended the quarter with $112.7 million in cash and investments, deemed sufficient for at least the next year Overview and Strategy Arbutus is a clinical-stage biopharma company focused on developing a functional cure for chronic hepatitis B (cHBV) with its candidates imdusiran and AB-101, with a key part of its strategy involving defending and monetizing its lipid nanoparticle (LNP) delivery technology through patent infringement lawsuits against Moderna and Pfizer/BioNTech, and following significant restructuring, the company aims to reduce its cash burn while advancing its clinical programs - The company's strategy focuses on maximizing opportunities for its cHBV development programs and its LNP delivery technology[96](index=96&type=chunk) - Arbutus has filed patent infringement lawsuits against Moderna and Pfizer/BioNTech for unlicensed use of its LNP technology in their COVID-19 vaccines. The U.S. trial against Moderna is scheduled for September 29, 2025[94](index=94&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) - The company's cHBV strategy aims to develop a functional cure using imdusiran as a cornerstone therapy in combination with other agents to suppress HBsAg and boost immune response[99](index=99&type=chunk) - Recent restructuring actions, including a **57% workforce reduction** in Q1 2025, are expected to significantly reduce net cash burn in 2025 compared to 2024[95](index=95&type=chunk) Our Product Candidates The company's pipeline features two main cHBV candidates: imdusiran (AB-729), an RNAi therapeutic, and AB-101, an oral PD-L1 inhibitor, with imdusiran showing meaningful HBsAg reduction and leading to functional cures in eight patients in combination therapies, and AB-101 demonstrating good tolerability and high receptor occupancy in its Phase 1a/1b trial - Imdusiran (RNAi therapeutic) has achieved functional cure in **8 cHBV patients** to date in combination therapies[103](index=103&type=chunk) - The IM-PROVE I trial (imdusiran + IFN) showed a **50% (3/6) functional cure rate** in patients with baseline HBsAg <1000 IU/mL[104](index=104&type=chunk)[115](index=115&type=chunk) - The IM-PROVE II trial (imdusiran + VTP-300 + nivolumab) showed a **25% (2/8) functional cure rate** in patients with baseline HBsAg <1000 IU/mL[104](index=104&type=chunk) - AB-101 (oral PD-L1 inhibitor) is in a Phase 1a/1b trial and has shown to be well-tolerated with evidence of high receptor occupancy in healthy subjects and cHBV patients[103](index=103&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) Other Collaborations, Royalty Entitlements and Intellectual Property Litigation Arbutus has a licensing agreement with Qilu for imdusiran in Greater China, which included a $40 million upfront payment and potential for $245 million in milestones plus royalties, and receives two royalty streams on Alnylam's ONPATTRO sales, one of which was partially sold to OMERS and is close to reverting back to Arbutus, while its LNP platform was licensed to Genevant, entitling Arbutus to sublicensing revenues and a share of litigation proceeds, with detailed updates on the patent infringement lawsuits against Moderna and Pfizer/BioNTech in the U.S. and internationally - Collaboration with Qilu for imdusiran in Greater China includes up to **$245 million in milestones** and double-digit royalties[123](index=123&type=chunk) - The company has two royalty entitlements on Alnylam's ONPATTRO. A portion sold to OMERS for **$20 million** is expected to revert to Arbutus after OMERS receives **$30 million in royalties** (**$25.3 million** earned as of March 31, 2025)[126](index=126&type=chunk) - Arbutus and Genevant filed five international lawsuits against Moderna in March 2025, targeting infringing activities in **30 countries** and seeking monetary relief and injunctions[135](index=135&type=chunk) - In the U.S. lawsuit against Pfizer/BioNTech, the claim construction hearing occurred in December 2024, with a court ruling and trial schedule expected in 2025[137](index=137&type=chunk) Results of Operations For Q1 2025, total revenue increased to $1.8 million from $1.5 million in Q1 2024, driven by higher revenue from the Qilu collaboration, while total operating expenses rose to $27.5 million from $20.9 million, primarily due to a $12.4 million restructuring charge, partially offset by a $6.4 million decrease in R&D expenses, and general and administrative expenses saw a slight increase of $0.5 million due to higher legal fees Revenue Comparison (in thousands) | Revenue Source | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Royalties from sales of ONPATTRO | $504 | $695 | | Qilu Pharmaceutical Co., Ltd. | $812 | $244 | | Non-cash royalty revenue (ONPATTRO) | $448 | $593 | | **Total revenue** | **$1,764** | **$1,532** | Operating Expenses Comparison (in thousands) | Expense Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Research and development | $8,959 | $15,403 | | General and administrative | $5,832 | $5,312 | | Restructuring | $12,373 | $0 | | **Total operating expenses** | **$27,463** | **$20,895** | - R&D expenses decreased by **$6.4 million** YoY due to ceasing discovery efforts, discontinuing the IM-PROVE III trial, and workforce reductions[151](index=151&type=chunk) - A one-time restructuring charge of **$12.4 million** was incurred in Q1 2025, related to workforce reduction, facility exit, and asset impairments[155](index=155&type=chunk) Liquidity and Capital Resources As of March 31, 2025, the company had $112.7 million in cash, cash equivalents, and marketable securities with no outstanding debt, with net cash used in operations decreasing to $13.4 million in Q1 2025 from $19.3 million in Q1 2024, reflecting cost-saving initiatives, and the company terminated its Open Market Sale Agreement in March 2025, having raised no funds through it in Q1 2025, compared to $21.8 million in Q1 2024, while management believes current cash is sufficient to fund operations for at least the next year but notes that substantial additional funds will be required for future development - The company had cash, cash equivalents, and investments of **$112.7 million** as of March 31, 2025, with no debt[164](index=164&type=chunk) - Net cash used in operating activities decreased by **$5.9 million** YoY, from **$19.3 million** in Q1 2024 to **$13.4 million** in Q1 2025[161](index=161&type=chunk) - The Open Market Sale Agreement with Jefferies was terminated on March 26, 2025. No shares were sold under this agreement in Q1 2025[165](index=165&type=chunk)[166](index=166&type=chunk) - Future funding needs are substantial and depend on litigation costs, clinical development progress, and potential partnership revenue[169](index=169&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company has indicated that this information is not required to be provided as it qualifies as a smaller reporting company - As a smaller reporting company, Arbutus is not required to provide disclosures about market risk[173](index=173&type=chunk) [Controls and Procedures](index=36&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the principal executive and financial officers, evaluated the company's disclosure controls and procedures as of March 31, 2025, and concluded that these controls were effective at a reasonable assurance level, with no material changes in internal control over financial reporting during the quarter - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective at the reasonable assurance level[174](index=174&type=chunk) - No changes in internal control over financial reporting occurred during the first quarter of 2025 that have materially affected, or are reasonably likely to materially affect, these controls[175](index=175&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=37&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section details the company's significant ongoing patent litigation, with Arbutus and its partner Genevant suing Moderna and Pfizer/BioNTech in the U.S. for infringing on LNP technology patents with their COVID-19 vaccines, and the U.S. trial against Moderna set for September 2025, while five new international lawsuits were filed against Moderna across 30 countries in March 2025, and the company is also involved in European patent opposition proceedings with Moderna and Merck - U.S. lawsuit against Moderna: Trial is scheduled for September 29, 2025. The court's claim construction ruling in April 2024 was largely favorable to Arbutus's positions[177](index=177&type=chunk) - International lawsuits against Moderna: In March 2025, Arbutus and Genevant filed five lawsuits in Canada, Japan, Switzerland, and the Unified Patent Court, targeting Moderna's COVID-19 and RSV vaccines in **30 countries**[178](index=178&type=chunk) - U.S. lawsuit against Pfizer/BioNTech: A claim construction hearing was held in December 2024, with a ruling and trial schedule expected in 2025. Fact discovery is ongoing[180](index=180&type=chunk) - European Patent Oppositions: The company is engaged in ongoing opposition and appeal proceedings with Moderna and Merck regarding European patents EP 2279254 and EP 4 241 767[181](index=181&type=chunk)[182](index=182&type=chunk) [Risk Factors](index=39&type=page&id=ITEM%201A.%20RISK%20FACTORS) The company reports that there have been no material changes to its risk factors from those disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No material changes in risk factors were reported since the last Annual Report on Form 10-K[184](index=184&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company reported no unregistered sales of equity securities during the period - None[185](index=185&type=chunk) [Other Information](index=39&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During the first quarter of 2025, the company's Chief Financial Officer, Tuan Nguyen, entered into a Rule 10b5-1 trading arrangement, which provides for the automatic sale of common shares upon the vesting of restricted stock units (RSUs) to cover applicable tax withholding obligations - On March 28, 2025, CFO Tuan Nguyen entered into a Rule 10b5-1 trading plan to automatically sell shares to cover tax obligations upon the vesting of RSUs[188](index=188&type=chunk) [Exhibits](index=40&type=section&id=ITEM%206.%20EXHIBITS) This section provides an index of the exhibits filed with the Form 10-Q, including employment and separation agreements, certifications by the CEO and CFO, and the XBRL data files - The Exhibit Index lists various legal documents and certifications filed with the report, including new executive employment agreements and separation agreements[190](index=190&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41248 Knightscope, Inc. (Exact name of registrant as specified in its charter) Delaware 46-2482575 (State or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission File Number: 001-41141 GLUCOTRACK, INC. (Exact name of registrant as specified in its charter) Delaware 98-0668934 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 301 Route 17 North, Suite 800 Rutherford, ...

Financial Performance - Cash earnings for the three months ended March 31, 2025, were a loss of $490,000 compared to a loss of $271,000 for the same period in 2024, indicating a worsening of 80.8%[12] - The Trust's administrative expenses increased to $532,000 in the first quarter of 2025 from $338,000 in the same quarter of 2024, marking a rise of 57.5%[12] - There were no royalty revenues distributed in either the first quarter of 2025 or the first quarter of 2024, resulting in a cash loss of $490, an increase of 80.8% from the previous year[83] - The average Per Barrel Royalty for the fourth quarter of 2024 was negative $23.19, primarily due to increased Adjusted Chargeable Costs and decreased Average WTI Price[80] Asset and Liability Changes - As of March 31, 2025, total assets decreased to $3,669,000 from $4,159,000 as of December 31, 2024, representing a decline of approximately 11.8%[10] - The Trust corpus at the end of the period was $3,081,000, down from $4,475,000 at the end of the same period in 2024, reflecting a decrease of 31.1%[15] - The Trust's total liabilities increased to $588,000 as of March 31, 2025, compared to $532,000 as of December 31, 2024, an increase of 10.5%[10] Revenue and Royalty Issues - No royalty revenues were recorded for the quarters ended in 2023, 2024, and the first quarter of 2025, leading to a total of zero revenues for these periods[30] - The Trust did not receive any revenues attributable to any of the four quarters of 2023 and 2024, leading to its termination on December 31, 2024[48] - The Trust has not received any revenues from the Royalty Interest since the first quarter of 2021 until July 2021, when it received approximately $3.2 million[60] Termination and Future Outlook - The Trust's termination process commenced on December 31, 2024, due to the absence of revenues for two consecutive years[25] - The Trust's termination process will incur costs related to professional evaluations, legal fees, and other necessary expenses[63] - HNS's average net production of oil and condensate allocated to the Trust was less than 90,000 barrels per day from 2020 through the first quarter of 2025, and is expected to remain below this threshold in future years[69] Oil Price and Production Insights - For the quarter ended March 31, 2025, the average WTI price was $71.50, while average adjusted chargeable costs were $98.89, resulting in an average per barrel royalty of $(29.85)[52] - The average WTI crude oil spot price for the fourth quarter of 2024 was $70.32, a decrease of 10.4% compared to $78.47 in the fourth quarter of 2023[80] - The average net production from the 1989 Working Interest declined by 4.9% from 67.9 mb/d in the fourth quarter of 2023 to 64.6 mb/d in the fourth quarter of 2024[80] - The U.S. Energy Information Administration forecasts WTI prices to average $60.85 per barrel in Q2 2025 and $58.00 per barrel in Q3 2025[73] Cash Reserves and Distributions - The Trust has not made any cash distributions since the first quarter of 2023, maintaining a cash reserve to cover administrative expenses[12] - The Trust's cash reserve was evaluated to be approximately $6,000,000 in 2021, but has since been drawn down due to lack of revenue[29] - The Trust's cash reserve was increased to approximately $6.0 million to cover administrative expenses and potential termination costs[64] - The Trustee paid all accrued expenses of the Trust through March 31, 2025, totaling $531,612 from the cash reserve[51] Internal Controls and Risk Management - The Trust's internal control over financial reporting was deemed effective as of March 31, 2025, based on the COSO criteria[87] - The Trust has no foreign operations and holds no long-term debt instruments, minimizing exposure to interest rate and foreign currency risks[84] - The Trustee has the authority to borrow or establish a cash reserve under limited circumstances as per the Trust Agreement[57] Market Influences - The Trust's revenues and results of operations are significantly affected by fluctuations in oil prices, which are influenced by global supply and demand and geopolitical events[66]

Financial Performance - Net sales for the nine months ended March 31, 2025, increased by 14% to $95.994 million compared to $84.307 million for the same period in 2024[98] - Private-label contract manufacturing sales rose by 16% during the nine months ended March 31, 2025, primarily due to increased orders from a larger customer and new customer shipments[98] - Patent and trademark licensing revenue decreased by 9% to $6.0 million for the nine months ended March 31, 2025, down from $6.6 million in the prior year[99] - The company experienced a net loss of $6.359 million for the nine months ended March 31, 2025, compared to a net loss of $5.343 million for the same period in 2024, representing a 19% increase in loss[106] - Selling, general, and administrative expenses increased by 9% to $12.470 million for the nine months ended March 31, 2025, compared to $11.455 million in the prior year[110] - The gross profit margin for the nine months ended March 31, 2025, was 6.0%, a decrease from 6.5% in the prior year[106] Cash Flow and Liquidity - Net cash provided by operating activities was $2.6 million for the nine months ended March 31, 2025, compared to $1.2 million in the prior year[113] - Cash used in investing activities increased to $2.2 million for the nine months ended March 31, 2025, compared to $2.0 million in the prior year, mainly due to capital expenditures for solar energy generation equipment[118] - Cash used in financing activities rose to $1.8 million for the nine months ended March 31, 2025, compared to $0.4 million in the prior year, reflecting increased usage of the credit facility[119] - As of March 31, 2025, the company had $10.6 million in cash and cash equivalents, with $10.0 million held by NAIE, sufficient to fund current working capital needs for at least the next 12 months[122] Credit Facility and Debt - As of March 31, 2025, the company had $8.5 million of borrowing capacity available on its credit facility, with outstanding borrowings of $2.0 million[120] - The company anticipates non-compliance with financial covenants related to net income requirements and fixed charge coverage ratio in the fourth quarter of fiscal 2025[122] - A tentative agreement with Wells Fargo is in place regarding proposed amended terms to the credit facility, which may include waiving current and past covenant violations[122] - The maturity date of the credit facility was extended from May 23, 2025, to June 23, 2025, allowing time to finalize negotiations for an amended credit agreement[122] - As of March 31, 2025, the company had no off-balance sheet debt or significant transactions that could materially affect its financial condition[123] Operational Focus - The company plans to continue focusing on expanding the commercialization of its beta-alanine patent estate and developing new sales distribution channels[107] - The company incurred litigation and patent compliance expenses of approximately $0.3 million during the nine months ended March 31, 2025[101] Sales Metrics - Days sales outstanding increased to 41 days during the nine months ended March 31, 2025, compared to 30 days in the prior year[114] - Private-label contract manufacturing gross profit margin increased by 1.2 percentage points to a percentage of consolidated net sales for the three months ended March 31, 2025, primarily due to increased sales volume and a favorable product sales mix[116] - Patent and trademark licensing gross profit margin decreased by 2.5 percentage points during the three months ended March 31, 2025, attributed to decreased net sales in this segment[116]

Exhibit 99.1 Glucotrack Reports First Quarter 2025 Financial Results and Recent Corporate Highlights On track to implant first patients in long-term, multicenter feasibility study of the fully implantable continuous blood glucose monitor (CBGM) system in Australia in Q3 2025 Investigational Device Exemption (IDE) approval for novel CBGM technology from FDA expected in Q4 2025 Rutherford, NJ, May 14, 2025 (GLOBE NEWSWIRE) — Glucotrack, Inc. (Nasdaq: GCTK) ("Glucotrack" or the "Company"), a medical technology ...

Financial Performance - The company reported a net loss of $29.1 million for the three months ended March 31, 2025, with an accumulated deficit of $4.5 billion[148]. - Total revenue for the three months ended March 31, 2025, was $38.7 million, an increase of $20.1 million compared to $18.6 million for the same period in 2024, primarily due to eight additional infusions[177]. - The net loss for the three months ended March 31, 2025, was $29.1 million, a decrease of $40.7 million compared to a net loss of $69.8 million in the same period of 2024[177]. - Net cash used in operating activities for the three months ended March 31, 2025, was $43.4 million, a decrease from $74.7 million in the same period of 2024[189]. Cash and Liquidity - Cash and cash equivalents were approximately $78.7 million as of March 31, 2025, with restricted cash of $13.6 million[150][154]. - As of March 31, 2025, the company had cash and cash equivalents of approximately $78.7 million, primarily held in U.S. government agency securities and money market accounts[182]. - The company expects existing cash and cash equivalents to fund operations into June 2025, contingent on the completion of the Merger Transaction[185]. - The company cautions that its cash runway estimate may be affected by revenues and operating costs that could differ materially from current assumptions[154]. Research and Development - The company plans to continue incurring research and development expenses while scaling manufacturing capabilities for its gene therapies[152][165]. - Research and development expenses were $17.7 million for the three months ended March 31, 2025, down from $25.1 million in 2024, reflecting a decrease of $7.4 million[180]. - The accumulated deficit as of March 31, 2025, was $4.5 billion, with expectations for research and development expenses to decrease as commercial activities increase[183]. Mergers and Acquisitions - A merger agreement was announced on February 21, 2025, with a cash tender offer of $3.00 per share plus a contingent value right or $5.00 per share[149][157]. - The merger transaction is expected to close in the first half of 2025, which is critical for the company's liquidity[149][151]. - The company entered into a Merger Agreement on February 21, 2025, with expectations for completion in the first half of 2025[184]. Sales and Financing Activities - The company sold its first Rare Pediatric Disease Priority Review Voucher for net proceeds of $102.0 million and the second for $92.9 million in early 2023[145]. - In Q1 2023, the company sold its second PRV for aggregate net proceeds of $92.9 million[193]. - In Q1 2023, the company sold 1.2 million shares of common stock at $120.00 per share, generating aggregate net proceeds of $130.5 million[193]. - In December 2023, the company sold 4.2 million shares of common stock at $30.00 per share, resulting in aggregate net proceeds of $118.1 million[193]. - The company entered into a Loan Agreement for up to $175.0 million in debt financing in March 2024[193]. - The company has not made any sales pursuant to the Open Market Sales Agreement with Jefferies LLC as of March 31, 2025, which allows for sales up to $125.0 million[193]. Cost Management - Cost of product revenue decreased to $12.2 million for the three months ended March 31, 2025, from $25.9 million in the same period of 2024, attributed to reduced costs related to excess manufacturing capacity[178]. - Selling, general and administrative expenses decreased to $30.3 million for the three months ended March 31, 2025, from $46.3 million in 2024, a reduction of $16.1 million[179]. - The company has never been profitable and expects to continue incurring significant expenses and operating losses for the foreseeable future[148]. Regulatory Approvals - The FDA approved three gene therapies: ZYNTEGLO, SKYSONA, and LYFGENIA, with commercialization efforts focused in the U.S.[140][141]. Market Risks - The company has exposure to market risk related to changes in interest rates, primarily due to investments in short-term securities[194].

Collaboration with AbbVie - The company has entered into an exclusive option agreement with AbbVie Inc., granting AbbVie the option to obtain a co-exclusive license for the development and commercialization of reproxalap in the U.S. and an exclusive license outside the U.S.[95] - AbbVie has made a non-refundable payment of $1.0 million for the option and extended the exercise period by paying an additional $5.0 million[96] - Upon execution of the collaboration agreement, AbbVie will pay a $100.0 million upfront cash payment, with potential for up to $300.0 million in regulatory and commercial milestone payments[98] - The collaboration with AbbVie includes a profit-sharing model of 60% for AbbVie and 40% for the company from the commercialization of reproxalap in the U.S.[98] - The profit-sharing arrangement with AbbVie for the commercialization of reproxalap is set at 60% for AbbVie and 40% for the company in the U.S.[127] Financial Position and Funding - The company has no products approved for sale and has primarily funded operations through the sale of common stock and debt, indicating a need for additional capital to fund product development[101] - The Hercules Credit Facility allows for a term loan of up to $60.0 million, with $15.0 million funded as of March 31, 2025, and various amendments extending payment terms and conditions[103] - As of March 31, 2025, total stockholders' equity was approximately $63.6 million, with cash, cash equivalents, and marketable securities totaling $90.1 million[119] - As of March 31, 2025, the company expects its cash, cash equivalents, and marketable securities to fund operations into 2027, excluding potential licensing and product revenue[128] - The company anticipates needing additional funding for ongoing research and development activities, regulatory activities, and commercialization efforts[128] - The company may seek additional capital through debt, equity, or partnerships, amid economic uncertainties and market disruptions[129] Research and Development - The company is developing multiple product candidates, including reproxalap for dry eye disease and ADX-2191 for retinitis pigmentosa, with ongoing clinical trials and regulatory submissions[93] - Research and development expenses increased to $7.4 million for the three months ended March 31, 2025, up 20.1% from $6.2 million in the same period of 2024[115] - Approximately 40% of total research and development expenses for the three months ended March 31, 2025, were related to late-stage product candidates, primarily reproxalap[116] - The company expects research and development expenses to increase as it advances ADX-246, ADX-248, and other compounds through preclinical and clinical development[104] - The company does not expect reproxalap or any other product candidates to be commercially available before at least the second half of 2025[107] Operational Results - Net loss for the three months ended March 31, 2025, was approximately $9.9 million, representing a 22.9% increase from a net loss of $8.1 million in the same period of 2024[115] - Total other income (expense), net, decreased to $0.5 million for the three months ended March 31, 2025, down 62.0% from $1.3 million in the same period of 2024[118] - General and administrative expenses decreased to $3.0 million for the three months ended March 31, 2025, down 6.4% from $3.2 million in the same period of 2024[117] - Net cash used in operating activities for Q1 2025 was $12.5 million, an increase from $10.0 million in Q1 2024, primarily due to higher research and development expenses[131] - Net cash provided by investing activities was $7.3 million for Q1 2025, compared to a net cash outflow of $30.4 million in Q1 2024[132] - Net cash provided by financing activities was $1.0 million for Q1 2025, significantly higher than $18.2 thousand in Q1 2024[133] Regulatory and Compliance Risks - The company is subject to various risks and uncertainties that could impact its financial position and operational results, including regulatory approvals and market acceptance of its product candidates[94] - The company will incur ongoing costs related to compliance with the Sarbanes-Oxley Act and other regulatory requirements as a public entity[130]

Financial Performance - Q1'25 total revenue was $18.9M, down 16% quarter-over-quarter and 10% year-over-year, aligning with guidance[51]. - Gross profit for Q1'25 was a loss of $(8.1)M, consistent with guidance of a gross loss of $(5)M to $(10)M per quarter for FY'25[52]. - Operating expenses (OpEx) for Q1'25 were $64.2M, with a target to reduce quarterly OpEx to the low-$30M range by the end of FY'25[52]. - GAAP net loss for Q1 2025 was $76,516,000, compared to a net loss of $44,222,000 in Q4 2024 and $125,714,000 in Q1 2024[79]. - Non-GAAP net loss for Q1 2025 was $63,080,000, an improvement from $49,831,000 in Q4 2024 and $80,456,000 in Q1 2024[79]. - GAAP operating cash flow for Q1 2025 was $(44,229,000), compared to $(61,360,000) in Q4 2024 and $(81,229,000) in Q1 2024[81]. - Total GAAP operating expenses for Q1 2025 were $64,172,000, down from $78,166,000 in Q4 2024 and $115,314,000 in Q1 2024[77]. - Non-GAAP operating expenses for Q1 2025 were $45,168,000, compared to $55,031,000 in Q4 2024 and $73,179,000 in Q1 2024[77]. - Ending cash, cash equivalents, and restricted cash for Q1 2025 was $61,222,000, down from $111,296,000 in Q4 2024[73]. - GAAP gross profit (loss) for Q1 2025 was $(8,100,000), compared to $12,478,000 in Q4 2024 and $(10,455,000) in Q1 2024[76]. - Non-GAAP gross profit (loss) for Q1 2025 was $(6,437,000), an improvement from $14,041,000 in Q4 2024 and $(4,759,000) in Q1 2024[76]. - Stock-based compensation for Q1 2025 amounted to $19,380,000, compared to $23,343,000 in Q4 2024[82]. - The company reported a net cash provided by investing activities of $20,445,000 in Q1 2025, compared to $34,426,000 in Q4 2024[73]. Cost Management - Luminar expects over $100 million in product development savings as it scales by customer with the new unified product architecture[27]. - The expected Bill of Materials (BOM) reduction from Iris to Halo is over 50%[33]. - Luminar aims to reduce quarterly operating expenses from mid/high-$30 million to a low-$30 million range by the end of 2025[46]. - The company has achieved significant cost savings through its restructuring plan implemented in May 2024, which includes a reduction in redundant roles[11]. - The company aims to reduce 2026 convertible debt to below $100M by June 2026, with a current outstanding face amount of $185M[50]. Revenue and Growth Projections - The company expects FY'25 total revenue growth of 10% to 20% and anticipates sensor shipments of 30k-33k, significantly up from ~9k in FY'24[55][57]. - Approximately 6,000 LiDAR units were shipped in Q1'25, representing a 50% increase quarter-over-quarter[54]. - The company is on track to ramp series production volume by at least 3x year-over-year, supporting additional vehicle model launches[60]. Technology Development - Luminar anticipates a targeted faster time to market, aiming for a 2x improvement[27]. - The company is actively developing various software capabilities that have not yet achieved production-ready status[13]. - Progress is being made on next-generation technology, specifically Luminar Halo, with development work for Volvo Cars and Mercedes-Benz[61]. Partnerships and Market Strategy - Luminar's partnerships with major OEMs like Nissan and Mercedes are expected to enhance the adoption of its LiDAR technology[24]. - The company is focused on core transceiver expertise while maintaining ownership of OEM customer relationships through strategic partnerships[30]. - The company plans to issue approximately $30M per quarter under its equity financing program[59].