Drug Development and Clinical Trials - Eledon Pharmaceuticals is focusing on the development of tegoprubart, an anti-CD40L antibody, for preventing organ rejection and treating ALS [128]. - In January 2023, the company announced plans to prioritize kidney transplantation programs, discontinuing the islet cell transplantation and IgAN programs [131]. - The ongoing Phase 1b trial of tegoprubart reported a mean estimated eGFR of 70.5 mL/min/1.73m² after day 30 post-transplant, compared to historical averages of approximately 53 mL/min/1.73m² [142]. - As of June 2024, interim results indicated that tegoprubart is generally safe and well tolerated, with no cases of hyperglycemia or graft loss reported [142]. - The BESTOW trial, a Phase 2 study comparing tegoprubart to tacrolimus, aims to enroll approximately 120 participants and assess graft function at 12 months post-transplant [143]. - Eledon received regulatory approvals for the Phase 1b trial in the U.S., Canada, the U.K., and Australia, with the first subject dosed in July 2022 [139]. - The company entered a collaborative research agreement with eGenesis in January 2023 to explore tegoprubart in xenotransplantation studies [146]. - Tegoprubart has received orphan designation from the FDA for preventing allograft rejection in pancreatic islet cell transplantation [150]. - The company aims to address the challenges of current immunosuppressive therapies, potentially improving long-term graft survival and reducing the need for repeat transplants [138]. - Eledon acquired Anelixis Therapeutics in September 2020, gaining control over the intellectual property related to tegoprubart [132]. - Tegoprubart is being utilized in a pilot study at the University of Chicago Medicine to assess safety in achieving calcineurin inhibitor-free immunosuppression in T1D patients undergoing islet cell transplantation [151]. - Positive data from the study indicated that the first two subjects achieved insulin independence and normal HbA1c levels, while the third subject reduced insulin use by over 60% within three days post-transplant [152]. - Islet engraftment in subjects treated with tegoprubart was three to five times higher than in those receiving tacrolimus-based immunosuppression, suggesting improved graft survival and function [152]. - The Phase 2a study of tegoprubart for ALS enrolled 54 subjects, with 50 completing all infusions and no serious drug-related adverse events observed [157]. - Tegoprubart demonstrated target engagement in all dose cohorts, with a dose-dependent reduction in inflammatory biomarkers in 20 of 32 pro-inflammatory proteins [157]. Financial Performance and Funding - The 2023 Securities Purchase Agreement resulted in gross proceeds of $35.0 million, with net proceeds of approximately $33.0 million after expenses [163]. - The 2024 Private Placement generated gross proceeds of $50.0 million, with net proceeds of approximately $48.1 million after deducting offering costs [168]. - The 2024 Underwritten Offering closed with gross proceeds of $85 million, resulting in net proceeds of approximately $79.5 million after underwriting discounts and commissions [172]. - The company deprioritized its IgAN program and discontinued all related clinical development activities in 2023 [159]. - The FDA granted orphan drug designation to tegoprubart for ALS in 2018, with ongoing efforts to secure additional financing for further clinical development [156][158]. - Research and development expenses increased by $6.1 million to $13.5 million for the three months ended March 31, 2025, compared to $7.4 million in the same period of 2024 [182]. - General and administrative expenses rose by $1.0 million to $4.4 million for the three months ended March 31, 2025, compared to $3.5 million in 2024 [184]. - The net loss for the three months ended March 31, 2025, was $6.5 million, a decrease of $17.1 million compared to a net loss of $23.6 million in the same period of 2024 [182]. - The fair value of warrant liabilities decreased by $23.4 million to $10.1 million for the three months ended March 31, 2025, compared to a $13.3 million increase in the same period of 2024 [186]. - As of March 31, 2025, the company had cash and cash equivalents and short-term investments totaling $124.9 million, with working capital of $118.5 million [187]. - The company has incurred significant net losses since inception and does not expect to generate revenue from product sales until regulatory approval is obtained [188]. - The company anticipates ongoing increases in expenses as it expands its clinical programs and seeks marketing approval for its product candidates [193]. - The company will require additional financing to advance its drug products through clinical development and to fund operations for the foreseeable future [194]. - The increase in other income, net, was primarily due to a rise in interest income, totaling $1.4 million for the three months ended March 31, 2025, compared to $0.6 million in 2024 [185]. - The company does not have any approved products for commercial sale and has no committed sources of capital, relying primarily on proceeds from stock sales and warrants [188]. - For the three months ended March 31, 2025, the company reported a net cash used in operating activities of $16.1 million, compared to $8.7 million for the same period in 2024, reflecting a significant increase in cash outflow [198][199][200]. - The net loss for the three months ended March 31, 2025, was $6.5 million, a decrease from the net loss of $23.6 million in the same period of 2024 [199][200]. - Net cash provided by investing activities for the three months ended March 31, 2025, was $3.9 million, down from $9.8 million in the same period of 2024 [201][202]. - The company experienced a decrease in accounts payable and accrued expenses by $2.4 million for the three months ended March 31, 2025 [199]. - The company raised capital through private placements and underwritten offerings, which diluted existing stockholders' ownership interests [197]. - The company reported $35.7 million in proceeds from the maturity of available-for-sale short-term investments for the three months ended March 31, 2025 [201]. - The company incurred costs associated with being a public company, which may impact its financial performance [197]. Operational Focus and Future Outlook - The company is focused on the development of tegoprubart, with ongoing clinical trials that may be affected by global macroeconomic conditions [196]. - The company is evaluating the scope of indications for tegoprubart development, which may influence future revenue streams [196]. - The company is actively working on enhancing operational systems and attracting qualified personnel to support its development efforts [196].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ 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: 001-42400 WILLOW LANE ACQUISITION CORP. (MARK ONE) | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- ...

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 001-39927 SEASTAR MEDICAL HOLDING CORPORATION (Exact name of Registrant as specified in its Charter) Delaware 85-3681132 (State or o ...

EXHIBIT 99.1 NEWS RELEASE CONTANGO ORE, INC. Facilities ("DOT"). The lawsuit related to trucking ore from Manh Choh to Fort Knox. We are pleased with dismissal of the lawsuit and its potential favorable impacts for the Manh Choh project and for trucking related to mining projects in general. On May 6, 2025, we announced the completion of a Technical Report Summary ("TRS") on the Johnson Tract Project, which summarized the results of an Initial Assessment ("IA") of the potential viability for a seven-year LO ...

Financial Performance - Enveric reported a net loss of $2,184,966 for the three months ended March 31, 2025, compared to a net loss of $2,456,915 for the same period in 2024, reflecting a decrease of approximately 11%[88]. - Total operating expenses decreased to $2,187,533 for Q1 2025, down from $2,477,317 in Q1 2024, a reduction of about 12%[88]. - General and administrative expenses fell by $525,615, or 28%, to $1,360,138 in Q1 2025, primarily due to reductions in various operational costs[90]. - Research and development expenses increased by $240,216, or approximately 47%, to $746,371 in Q1 2025, driven by higher consulting fees[91]. - The accumulated deficit reached $108,259,471 as of March 31, 2025, with ongoing losses anticipated in the company's development efforts[93]. - The company reported a net cash used in operating activities of $2,391,582 for the three months ended March 31, 2025, compared to $2,598,347 for the same period in 2024, reflecting a decrease of approximately 8%[98][99]. - The company experienced a net increase in cash of $2,053,409 for the three months ended March 31, 2025, compared to $4,068,059 in 2024, indicating a decrease of approximately 49%[97]. Cash Position and Financing - Enveric has cash of $4,294,435 and working capital of $3,650,434 as of March 31, 2025, which is insufficient to meet operating cash needs for the next 12 months[94]. - The company plans to raise additional working capital through public or private equity or debt financings, including an "at-the-market" offering of up to $1.8 million[94]. - Net cash provided by financing activities was $4,448,914 for the three months ended March 31, 2025, down from $6,658,269 in 2024, representing a decline of about 33%[100][101]. Development and Research - Enveric's lead drug candidate, EB-003, is currently in preclinical development with an IND filing expected as the next step[84]. - The company has synthesized over one thousand molecules from its Psybrary™, which includes 20 patent families covering a million potential molecular structures[80]. - Enveric out-licensed the EVM201 Series program to MycoMedica Life Sciences, which will seek to develop and commercialize EB-002, in exchange for development and milestone payments[79]. Going Concern and Risks - The company has substantial doubt about its ability to continue as a going concern for one year after the date of the financial statements[95]. - The company's critical accounting estimates involve significant uncertainty, particularly regarding accruals associated with third-party providers supporting research and development efforts[102]. - The company's primary market risk exposure is related to foreign currency exchange rates, particularly with the Canadian dollar and Australian dollar against the U.S. dollar[105]. - The company has not entered into any financial derivative instruments to hedge against foreign currency exchange rate risks, but may consider such hedging in the future[106]. - The net cash used in operating activities for the three months ended March 31, 2025, included a net loss adjusted for non-cash items of $1,912,659[98]. - The company has not reported any material changes to its critical accounting estimates compared to the previous year[103].

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: 0-21121 TRANSACT TECHNOLOGIES INC (Exact name of registrant as specified in its charter) | Delawa ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited financial statements, management's analysis, market risk disclosures, and internal controls [Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) The company reported zero revenue and a net income of **$0.85 million** in Q1 2025, but faces substantial doubt about its going concern ability due to insufficient funds [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to **$16.2 million** from **$21.7 million**, total liabilities increased to **$9.8 million**, and equity declined to **$3.0 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $12,818 | $16,035 | | Total current assets | $15,734 | $21,262 | | Total assets | $16,155 | $21,739 | | **Liabilities & Equity** | | | | Total current liabilities | $7,147 | $4,162 | | Total liabilities | $9,784 | $9,469 | | Total stockholders' equity | $3,006 | $4,682 | | Total liabilities & equity | $16,155 | $21,739 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, the company generated zero revenue, reduced operating expenses to **$2.0 million**, and achieved a net income of **$0.85 million** due to non-cash gains, contrasting with a **$3.6 million** net loss in Q1 2024 Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $0 | $58 | | Gross loss | $0 | $(1,125) | | Total operating expenses | $1,974 | $4,091 | | Loss from operations | $(1,974) | $(5,216) | | Total other income, net | $2,819 | $1,577 | | Net income (loss) | $845 | $(3,639) | | Net loss attributable to common stockholders | $(1,676) | $(7,186) | | Net loss per share (basic and diluted) | $(0.20) | $(1.46) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash used in operating activities was **$1.5 million**, investing activities provided **$1.7 million**, and financing activities used **$3.5 million**, resulting in a total cash decrease of **$3.3 million** Summary of Cash Flows (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,476) | $(4,682) | | Net cash provided by (used in) investing activities | $1,749 | $(23,299) | | Net cash used in financing activities | $(3,546) | $0 | | **Net change in cash, cash equivalents and restricted cash** | **$(3,273)** | **$(27,981)** | - In February 2025, the Company announced the launch of its new robotics division, focused on AI-driven, automated manufacturing of EVs and accompanying accessories[19](index=19&type=chunk) - Management has concluded that there is **substantial doubt** about the Company's ability to continue as a going concern for a period of twelve months from the issuance of these financial statements, as existing cash is not sufficient to fund operations[21](index=21&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=13&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic shift, zero Q1 2025 revenue, reduced expenses, ongoing going concern issues, and Nasdaq compliance challenges [Results of Operations](index=17&type=section&id=Results%20of%20Operations) In Q1 2025, revenue dropped to zero, operating expenses decreased by **$2.1 million (52%)**, and a **$2.8 million** non-cash gain led to a net income of **$0.85 million**, a significant turnaround from a **$3.6 million** net loss in Q1 2024 Comparison of Operations for the Three Months Ended March 31 (in thousands) | Item | 2025 | 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $0 | $58 | $(58) | -100% | | Gross Loss | $0 | $(1,125) | $1,125 | 100% | | Research and development | $308 | $760 | $(452) | -60% | | Sales and marketing | $0 | $268 | $(268) | -100% | | General and administrative | $1,666 | $3,062 | $(1,396) | -46% | | Loss from operations | $(1,974) | $(5,216) | $3,242 | 62% | | Net income (loss) | $845 | $(3,639) | $4,484 | 123% | - The decrease in operating expenses was primarily due to cost reduction initiatives, including a significant decrease in headcount, suspension of marketing efforts, and fewer professional service engagements[72](index=72&type=chunk)[73](index=73&type=chunk)[75](index=75&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity weakened with cash falling to **$12.8 million** and working capital to **$8.6 million**, reinforcing the 'going concern' issue as current funds are insufficient for the next 12 months Liquidity Position (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $12.8 | $16.0 | | Marketable securities | $2.5 | $4.1 | | Working capital | $8.6 | $17.1 | - The company is required to redeem its Series H-7 Preferred Stock in 12 equal monthly installments, which commenced in May 2024, payable in cash or, subject to limitations, common stock[85](index=85&type=chunk)[86](index=86&type=chunk) - In March 2025, the company amended the terms of the Series H-7 Preferred Stock, modifying a restrictive covenant to require maintaining cash equal to at least **120%** of the outstanding stated value of the stock[92](index=92&type=chunk)[93](index=93&type=chunk) - As of March 31, 2025, the company had no direct, full-time employees following an internal restructuring and is now working with consultants to re-engineer its 'Vanish' vehicle to lower material and manufacturing costs[59](index=59&type=chunk) - The company received a Nasdaq deficiency notice for its stock price falling below the **$1.00** minimum bid requirement and has until July 14, 2025, to regain compliance[51](index=51&type=chunk)[52](index=52&type=chunk) - Management states that existing cash and marketable securities as of March 31, 2025, will not be sufficient to fund operations for at least the next twelve months, raising substantial doubt about its ability to continue as a going concern[83](index=83&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=22&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) This section is not applicable for the reporting period - The company has indicated that this disclosure is not applicable[106](index=106&type=chunk) [Controls and Procedures](index=22&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were ineffective as of March 31, 2025, due to material weaknesses including lack of formalized policies, insufficient segregation of duties, and inadequate IT controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **ineffective** as of March 31, 2025[108](index=108&type=chunk) - A material weakness was identified due to: (i) lack of formalized controls and policies, (ii) failure to maintain effective control activities over the control environment, and (iii) insufficient segregation of duties and oversight in finance and accounting functions due to limited personnel[110](index=110&type=chunk) - To remediate the material weakness, management has engaged external consultants to provide support and assist in evaluating complex accounting applications[111](index=111&type=chunk) [PART II - OTHER INFORMATION](index=23&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section details legal proceedings, key risk factors, equity transactions, and other relevant corporate information [Legal Proceedings](index=23&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is subject to various legal claims in the ordinary course of business, but management does not believe the outcome of any of these matters will have a material adverse effect on its financial position or operations - The Company is subject to various legal proceedings and claims arising in the ordinary course of business, which management believes are incidental and will not have a material adverse effect[35](index=35&type=chunk)[114](index=114&type=chunk) [Risk Factors](index=23&type=section&id=ITEM%201A.%20Risk%20Factors) The primary risk factor highlighted is the company's ability to continue as a 'going concern,' as it lacks sufficient financial resources for the next twelve months and depends on raising additional capital - Management has **substantial doubt** about the Company's ability to continue as a going concern because it lacks sufficient resources to fund operations for the next twelve months[118](index=118&type=chunk) - The company will need to raise additional capital to finance its losses; if unsuccessful in commercializing products and raising capital, it may need to curtail or cease operations[119](index=119&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=24&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[120](index=120&type=chunk) [Defaults Upon Senior Securities](index=24&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - None[121](index=121&type=chunk) [Mine Safety Disclosures](index=24&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[122](index=122&type=chunk) [Other Information](index=24&type=section&id=ITEM%205.%20Other%20Information) The company announced its 2025 Annual Meeting of Stockholders will be held virtually on May 19, 2025, with new deadlines for stockholder proposals due to a significant change in meeting date - The Company's 2025 Annual Meeting of Stockholders was scheduled to be held virtually on May 19, 2025[123](index=123&type=chunk) - The deadline for stockholder proposals for the Annual Meeting was set for April 18, 2025, due to the meeting date changing by more than 30 days from the previous year's anniversary[124](index=124&type=chunk)[125](index=125&type=chunk) [Exhibits](index=24&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to preferred stock designations, waiver agreements, and officer certifications [Signatures](index=25&type=section&id=SIGNATURES) This section contains the official signatures of the principal executive and financial officers, certifying the report's contents - The report was signed on May 14, 2025, by Joshua Silverman, Executive Chairman (Principal Executive Officer), and Joseph Ramelli, Chief Financial Officer (Principal Financial and Accounting Officer)[130](index=130&type=chunk)

Revenue and Profitability - Revenue for the three months ended March 31, 2025, was $629,000, representing a 146% increase from $255,000 in the same period of 2024[12] - For the three months ended March 31, 2025, total net revenue was $629,000, a 147.1% increase from $255,000 in the same period of 2024[56] - Revenue from Components was $492,000, significantly up from $159,000 in the prior year, while Consumer Audio Products revenue increased to $137,000 from $96,000[56] - Gross profit for Q1 2025 was $69,000, compared to a gross deficit of $83,000 in Q1 2024[13] - The cost of net revenue for the same period was $560,000, compared to $338,000 in 2024, resulting in a gross loss of $9,563,000 for Q1 2025, compared to a net income of $2,707,000 in Q1 2024[170] Expenses and Losses - Total operating expenses increased to $9,500,000 in Q1 2025, up 133% from $4,075,000 in Q1 2024[13] - The net loss attributable to common stockholders for Q1 2025 was $9,563,000, compared to a net loss of $3,135,000 in Q1 2024[13] - Net cash used in operating activities was $6,024,000 for Q1 2025, an increase from $3,540,000 in Q1 2024, indicating higher cash outflows[21] - The company incurred salaries, benefits, and stock-based compensation expenses of $3,558,000 for Q1 2025, up from $2,284,000 in Q1 2024, indicating a 56% increase[170] - Research and development expenses increased to $2,361,000 in Q1 2025, up $646,000 from $1,715,000 in Q1 2024, primarily due to increased headcount and related costs[204] - Sales and marketing expenses rose to $1,495,000 in Q1 2025, an increase of $566,000 from $929,000 in Q1 2024, mainly due to higher salaries and consulting expenses[205] - General and administrative expenses surged to $5,644,000 in Q1 2025, an increase of $4,213,000 from $1,431,000 in Q1 2024, largely due to increased amortization and headcount-related costs[206] Cash and Liquidity - Cash and cash equivalents decreased to $171,000 as of March 31, 2025, down from $3,330,000 as of December 31, 2024[9] - The company had cash and cash equivalents of $171,000 at the end of Q1 2025, down from $2,763,000 at the end of Q1 2024, reflecting a decrease in liquidity[21] - Total current assets decreased to $2,693,000 as of March 31, 2025, from $6,439,000 as of December 31, 2024[9] Compliance and Regulatory Issues - The company has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, with a compliance period until November 3, 2025, to regain compliance[27] - The company has been granted a 180-day grace period to regain compliance with the minimum bid price requirement, which is critical for maintaining its Nasdaq listing[28] Stock and Equity - The company issued 5,986,893 common shares as stock-based compensation during the three months ended March 31, 2025[16] - The weighted average number of common shares used in computing net loss per common share was 53,681,828 for Q1 2025[13] - The company executed a 1-for-150 reverse stock split in April 2024, which has been retroactively adjusted in the financial statements[30] - The company issued common stock purchase warrants in connection with the February 2024 Public Offering, with a fair value of $6.308 million allocated to the warrants liability[126] Liabilities and Debt - Total liabilities decreased to $13,987,000 as of March 31, 2025, from $14,899,000 as of December 31, 2024[9] - The company issued promissory notes totaling $1,000,000 on January 19, 2024, with gross proceeds of $600,000 received before fees and expenses[97] - The DV Convertible Note was issued with a principal amount of $10,000,000, maturing on December 31, 2027, and carries an interest rate of 5.12% per annum[102] - As of March 31, 2025, the carrying value of the DV Convertible Note was $9,582,000 after a partial repayment of $406,000[108] Inventory and Assets - Total inventories decreased from $1.618 million on December 31, 2024, to $1.342 million on March 31, 2025[87] - Property and equipment, net increased from $58,000 on December 31, 2024, to $98,000 on March 31, 2025[87] - The company has made a deposit of $2 million related to a pending acquisition of CompuSystems Inc, recorded as "deposit on business combination" as of March 31, 2025[95] Future Outlook and Risks - The Company expects operating losses to continue due to additional costs related to research and development, plans to expand its product portfolio, and increase market share[78] - The Company will need to raise additional funds in the next 12 months through selling equity or incurring debt, raising substantial doubt about its ability to continue as a going concern[79] - The company has incurred recurring losses since inception and is subject to risks associated with being an emerging business[201]

Exhibit 99.1 INNOVATIVE SOLUTIONS & SUPPORT REPORTS SECOND QUARTER 2025 RESULTS Exton, PA, May 14, 2025 – Innovative Solutions & Support, Inc. (Nasdaq: ISSC) ("IS&S" or the "Company"), a leading provider of advanced avionic solutions for commercial, business aviation and military markets, today reported fiscal second quarter financial results for the three-month period ended March 31, 2025. SECOND QUARTER 2025 HIGHLIGHTS (all comparisons versus the prior year period unless otherwise noted) MANAGEMENT COMMEN ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2025 financials show revenue growth to $12.5 million, a net income decline, and significant asset and equity increases driven by a stock offering [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) As of March 31, 2025, total assets increased to $443.9 million and shareholders' equity to $77.2 million, driven by utility plant growth, cash, and a stock offering Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Net utility plant | $378,245 | $359,379 | | Cash and cash equivalents | $31,467 | $9,047 | | Total Assets | $443,918 | $405,137 | | **Capitalization and Liabilities** | | | | Total shareholders' equity | $77,216 | $47,604 | | Long-term debt, net | $118,876 | $118,518 | | Total Capitalization and Liabilities | $443,918 | $405,137 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(unaudited)) Q1 2025 total revenue rose 7.3% to $12.5 million, yet operating income slightly decreased and net income fell to $0.59 million, yielding diluted EPS of $0.02 Q1 2025 vs. Q1 2024 Operating Results (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $12,457 | $11,610 | $847 | 7.3% | | Operating Income | $1,255 | $1,267 | ($12) | (0.9)% | | Net Income | $591 | $691 | ($100) | (14.5)% | | Diluted EPS | $0.02 | $0.03 | | | | Dividends declared per share | $0.08 | $0.08 | | | [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20(unaudited)) Shareholders' equity grew from $47.6 million to $77.2 million by March 31, 2025, primarily from a $30.8 million common stock issuance, partially offset by $1.9 million in dividends - The company issued **3,220,000 shares** of common stock, resulting in a net increase of **$30.8 million** to equity in Q1 2025[18](index=18&type=chunk) - Dividends of **$0.08 per share** were declared, totaling approximately **$1.9 million** for the quarter[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) Q1 2025 cash flows show $7.5 million from operations, $15.2 million used in investing for capital expenditures, and a strong $29.8 million inflow from financing, primarily a stock issuance Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $7,477 | $8,068 | | Net cash used in investing activities | ($15,216) | ($5,765) | | Net cash provided by financing activities | $29,758 | $15,806 | | **Increase in cash, cash equivalents, and restricted cash** | **$22,019** | **$18,109** | - The primary source of financing cash flow in Q1 2025 was the **$31.0 million** net proceeds from the issuance of common stock[20](index=20&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail key accounting policies and events, including a pending acquisition, regulatory rate case updates, a recent public stock offering, and goodwill reclassification - The company entered an agreement to acquire seven public water systems from the City of Tucson for **$8.4 million**, adding approximately **2,200 water service connections**. The acquisition is expected to close in mid-2025[27](index=27&type=chunk) - The ACC approved a **$1.1 million** annual revenue increase for the GW-Farmers utility, to be phased in starting May 1, 2025. A related **$3.0 million** acquisition premium was deferred for recovery in a future rate case[28](index=28&type=chunk)[42](index=42&type=chunk) - In March 2025, the company filed a new general rate case for its GW-Santa Cruz and GW-Palo Verde utilities[29](index=29&type=chunk) - A public offering of **3,220,000 shares** of common stock was completed on March 27, 2025, generating net proceeds of approximately **$30.8 million**[43](index=43&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting revenue growth, net income decline due to higher costs, and strategic initiatives like acquisitions, rate cases, and a successful equity raise [Overview and Business Outlook](index=20&type=section&id=Overview%20and%20Business%20Outlook) The company, a water resource management firm, maintains a positive business outlook in Arizona, driven by strong population and economic growth in the Phoenix MSA - The company's strategy is centered on "Total Water Management," a comprehensive approach involving water reuse, regional planning, and advanced technology[70](index=70&type=chunk) - The Phoenix MSA, a key market, is the **10th largest in the U.S.** and is expected to see continued population growth, reaching **5.8 million by 2030**[71](index=71&type=chunk) - Job growth in the Phoenix MSA is forecasted at **2.2% for 2025**, outpacing national gains, with major investments from companies like Taiwan Semiconductor and Intel[73](index=73&type=chunk)[74](index=74&type=chunk) [Factors Affecting our Results of Operations](index=22&type=section&id=Factors%20Affecting%20our%20Results%20of%20Operations) Company results are influenced by population growth, regulation, infrastructure investment, and costs, with active connections up 4.3% and significant investments in acquisitions and infrastructure - Active service connections increased by **4.3% organically** to **65,163** as of March 31, 2025, compared to the prior year[81](index=81&type=chunk) - A pending acquisition from the City of Tucson is expected to add approximately **2,200 water service connections**[84](index=84&type=chunk) - The EPA's new regulations on PFAS will require increased capital expenditures and operating costs, which the company generally expects to recover through rates, subject to regulatory lag[89](index=89&type=chunk) - The estimated rate base as of December 31, 2024, was **$212.5 million**, an **82% increase** from the rate base in the 2019 general rate case, reflecting significant infrastructure investment[95](index=95&type=chunk) [Rate Regulation Updates](index=28&type=section&id=Rate%20Regulation%20Updates) The company actively manages regulatory filings, with GW-Santa Cruz and GW-Palo Verde filing a rate case for a $6.5 million revenue increase and Formula Rates, following a $1.1 million increase approval for GW-Farmers - On March 5, 2025, the company filed a general rate case for its GW-Santa Cruz and GW-Palo Verde utilities, requesting a **$6.5 million** net annual revenue increase and proposing the use of Formula Rates[103](index=103&type=chunk) Recent Approved Rate Cases (in millions) | Company | Approved Incremental Annual Revenue ($) | ACC Decision | Rates Effective | | :--- | :--- | :--- | :--- | | GW-Saguaro | 0.4 | 79383 | July 01, 2024 | | GW-Farmers | 1.1 | 80695 | May 01, 2025 | [Comparison of Results of Operations for the Three Months Ended March 31, 2025 and 2024](index=29&type=section&id=Comparison%20of%20Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031,%202025%20and%202024) Q1 2025 total revenue increased 7.3% to $12.5 million, driven by connection growth and consumption, but operating expenses rose 8.3% to $11.2 million, leading to a 14.5% net income decrease to $0.6 million Q1 2025 vs. Q1 2024 Financial Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $12,457 | $11,610 | $847 | 7.3% | | Operating expenses | $11,202 | $10,343 | ($859) | (8.3)% | | Operating income | $1,255 | $1,267 | ($12) | (0.9)% | | Net income | $591 | $691 | ($100) | (14.5)% | - Revenue growth was driven by a **4.3% increase** in total active connections and a **24.2% increase** in water consumption, particularly from irrigation, construction, and commercial customers[110](index=110&type=chunk)[111](index=111&type=chunk) - Operating expenses increased primarily due to a **$0.24 million (30.5%)** rise in utilities, chemicals, and repairs, and a **$0.39 million (13.4%)** increase in depreciation and amortization from a larger asset base[112](index=112&type=chunk)[113](index=113&type=chunk)[115](index=115&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by operations, debt, and equity, with Q1 2025 seeing a $30.8 million stock offering and an increased $20.0 million revolving credit facility, ensuring sufficient capital for future needs - In March 2025, a public offering of common stock generated approximately **$30.8 million** in net proceeds[120](index=120&type=chunk) - The revolving credit facility with Northern Trust was amended in April 2025 to increase the borrowing capacity from **$15.0 million to $20.0 million** and extend the maturity to May 2027. No amount was outstanding as of March 31, 2025[124](index=124&type=chunk) - Cash used in investing activities increased to **$15.2 million** in Q1 2025 from **$5.8 million** in Q1 2024, reflecting an increase in capital expenditures[131](index=131&type=chunk) - The company was in compliance with all financial debt covenants as of March 31, 2025[136](index=136&type=chunk) [Item 3. Qualitative and Quantitative Disclosures About Market Risk](index=34&type=section&id=ITEM%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as the company is a smaller reporting company - Not applicable[139](index=139&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025. There were no material changes in the company's internal control over financial reporting during the quarter - The CEO and CFO concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[139](index=139&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025[140](index=140&type=chunk) [PART II. OTHER INFORMATION](index=35&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=35&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is not involved in any legal proceedings that are expected to have a material effect on its financial condition or operations - The company is not currently involved in any legal proceeding expected to have a material effect on the company[141](index=141&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the risk factors disclosed in the 2024 Form 10-K[142](index=142&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not sell any unregistered securities during the first quarter of 2025. It did purchase 725 shares of its common stock, which were shares withheld from employees to satisfy tax obligations related to the vesting of restricted stock awards - No unregistered securities were sold during the three months ended March 31, 2025[143](index=143&type=chunk) - The company withheld **725 shares** from employees at an average price of **$11.35 per share** to satisfy tax obligations on vested restricted stock awards[146](index=146&type=chunk) [Item 5. Other Information](index=35&type=section&id=ITEM%205.%20Other%20Information) During the first quarter of 2025, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated a Rule 10b5-1 trading plan during the quarter[149](index=149&type=chunk) [Item 6. Exhibits](index=36&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the report, including corporate governance documents, a recent loan modification agreement, CEO/CFO certifications, and XBRL data files - Key exhibits filed include the Sixth Modification Agreement to the Northern Trust loan, CEO and CFO certifications (Rule 13a-14(a) and Section 1350), and Inline XBRL documents[150](index=150&type=chunk)