Business Operations - GrowGeneration Corp. operates two major business segments: Cultivation and Gardening, and Storage Solutions, with a focus on hydroponic and organic gardening products [106]. - The Storage Solutions segment aims to penetrate new markets, including controlled environment agriculture and industrial sectors [121]. - The company continues to evaluate acquisition opportunities to enhance its market position and product offerings in the hydroponics industry [120]. Retail Locations - As of September 30, 2025, GrowGeneration has 24 retail locations across 11 states, having closed five and seven locations during the three and nine months ending September 30, 2025, respectively [112]. - The Cultivation and Gardening segment reported net sales of $38.4 million for the three months ended September 30, 2025, down from $41.4 million in 2024, primarily due to the closure of 19 retail locations [129]. - The Cultivation and Gardening segment's net sales for the nine months ended September 30, 2025 were $102.1 million, down from $130.6 million in 2024, attributed to retail location closures and reduced consumer confidence [142]. Financial Performance - Net sales for the three months ended September 30, 2025 were $47.3 million, a decrease of $2.8 million or 5.5% compared to $50.0 million for the same period in 2024 [128]. - For the nine months ended September 30, 2025, net sales were $123.9 million, a decrease of $27.5 million or 18.2% compared to $151.4 million in 2024 [141]. - Net loss for the three months ended September 30, 2025 was $2.4 million, an improvement of $9.0 million or 78.7% compared to a net loss of $11.4 million in 2024 [127]. Cost Management - The company incurred approximately $3.5 million in restructuring costs, with expected annualized cost savings of about $12.0 million from these activities [116]. - Cost increases from U.S. trade policy changes affect less than 10% of total cost of goods sold, which the company is mitigating through improved purchasing leverage and sourcing from lower-tariff regions [107]. - Operating expenses decreased by $7.2 million or 31.5% to $15.7 million for the three months ended September 30, 2025, down from $22.9 million in 2024 [135]. Profitability - Gross profit margin is influenced by the product mix, with proprietary products typically yielding higher margins compared to non-proprietary products [125]. - Gross profit increased to $12.9 million for the three months ended September 30, 2025, an increase of $2.0 million or 18.9% compared to $10.8 million in 2024 [132]. - The gross profit margin improved to 27.2% for the three months ended September 30, 2025, up 560 basis points from 21.6% in 2024 [134]. Cash Flow and Working Capital - Cash, cash equivalents, and marketable securities totaled $48.3 million as of September 30, 2025, with no known extraordinary demands that would materially reduce working capital [156]. - Net cash used in operating activities was $7.2 million for the nine months ended September 30, 2025, compared to $2.9 million in the same period of 2024, driven by changes in gross profit and operating expenses [160]. - Net cash provided by investing activities was $7.2 million for the nine months ended September 30, 2025, compared to $6.7 million in the same period of 2024, primarily from investments in marketable securities and the Viagrow acquisition [161]. Acquisitions - The acquisition of Hydro Generation Inc. (Viagrow) on June 6, 2025, diversifies GrowGeneration's product offerings and expands its customer base through major retailers and e-commerce platforms [108]. - The company acquired substantially all assets of Viagrow for $1.2 million on June 6, 2025, including $1.0 million in cash and $0.1 million in common stock [157].

Financial Performance - The net loss for the three months ended September 30, 2025, was $165,819, compared to a net loss of $172,576 for the same period in 2024, indicating an improvement of about 3.9%[13] - Total revenues for the three months ended September 30, 2025, were $203.6 million, an increase of 5.3% compared to $193.8 million for the same period in 2024[22] - The segment net income from continuing operations for Q1 FY2026 was a loss of $165,368,000, compared to a loss of $171,421,000 in Q1 FY2025, showing an improvement of 3.1%[68] - Total operating expenses decreased to $410,582,000 in Q1 FY2026 from $422,141,000 in Q1 FY2025, a reduction of 2.8%[68] - The company incurred a loss from continuing operations before income taxes of $216,331,000 for Q1 FY2026, compared to a loss of $232,261,000 in Q1 FY2025[68] Assets and Liabilities - As of September 30, 2025, total assets decreased to $2,621,322, down from $3,263,898 as of June 30, 2025, representing a decline of approximately 19.6%[11] - Total current liabilities decreased to $739,551 as of September 30, 2025, from $1,298,610 as of June 30, 2025, a decrease of about 43.1%[11] - The company’s long-term debt increased to $1,734,962 as of September 30, 2025, from $1,143,305 as of June 30, 2025, an increase of approximately 51.7%[11] - The company’s retained earnings (deficit) stood at $(609,299,000) as of September 30, 2025, compared to $12,061,000 as of June 30, 2025[11] - The company had an outstanding balance of $245.0 million under its 2025 committed line of credit as of September 30, 2025[44] Cash Flow - Cash and cash equivalents decreased significantly to $376,410 as of September 30, 2025, from $983,277 as of June 30, 2025, a reduction of approximately 61.7%[11] - The company reported cash used in operating activities of $356,838 for the three months ended September 30, 2025, compared to $328,581 for the same period in 2024, reflecting an increase of approximately 8.6%[13] - The company declared cash dividends of $0.42 per share, totaling $54,343 for the quarter[14] Revenue Streams - U.S. assisted tax preparation revenues rose to $48.6 million, up 13.1% from $43.0 million in the prior year[22] - Assisted tax preparation revenue increased to $48.644 million in Q1 FY2026 from $42.963 million in Q1 FY2025, representing a growth of 12.4%[68] Deferred Revenue and Liabilities - As of September 30, 2025, deferred revenue related to the Peace of Mind® Extended Service Plan was $123.9 million, with $83.7 million expected to be recognized over the next twelve months[22] - The company expects to recognize all deferred revenue related to Tax Identity Shield® by April 2026, with a balance of $18.7 million as of September 30, 2025[23] - Liabilities related to the 100% accuracy guarantee were $10.4 million as of September 30, 2025, down from $11.4 million as of June 30, 2025[48] - Estimated contingent consideration liabilities related to acquisitions were $30.6 million as of September 30, 2025, compared to $29.6 million as of June 30, 2025[49] Stock and Compensation - The company granted 0.8 million shares under stock-based compensation plans during the three months ended September 30, 2025, with an expense of $6.2 million[27] - Stock-based compensation expense for Q1 FY2026 was $6.2 million, down from $8.7 million in Q1 FY2025[27] Other Financial Metrics - The effective tax rate for continuing operations was 23.6% for the three months ended September 30, 2025, down from 26.2% in the same period of 2024[46] - The allowance for credit losses for Emerald Advance® as of September 30, 2025, was $19.7 million, unchanged from the previous quarter[34] - The company made payments to acquire businesses totaling $5.1 million during the three months ended September 30, 2025, compared to $5.9 million in the same period of 2024[37]

Product Sales and Revenue - SIGA Technologies, Inc. has delivered approximately 1,488,000 courses of oral TPOXX® to the U.S. Strategic National Stockpile since 2013[72]. - As of September 30, 2025, cumulative total of $450.2 million of oral TPOXX® has been delivered and accepted by the Strategic Stockpile[85]. - For the three months ended September 30, 2025, product sales and supportive services revenues were $0.9 million, a decrease from $8.9 million in the same period of 2024[101]. - For the nine months ended September 30, 2025, revenues from product sales and supportive services were $85.8 million, including $53.3 million from oral TPOXX® and $25.8 million from IV TPOXX® sales to the U.S. Government[106]. Financial Performance - The company recorded pre-tax income of $38.3 million for the nine months ended September 30, 2025, compared to $17.5 million in the same period of 2024[112]. - As of September 30, 2025, the company had $172.0 million in cash and cash equivalents, up from $155.4 million at December 31, 2024[114]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $60.3 million, compared to a cash used of $7.5 million in 2024[116]. - Selling, general and administrative expenses for the nine months ended September 30, 2025, were $15.9 million, a decrease from $18.2 million in 2024[109]. - Cost of sales and supportive services for the nine months ended September 30, 2025, were $26.7 million, an increase from $17.2 million in 2024[108]. Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $14.9 million, an increase of approximately $5.9 million compared to $9.0 million in 2024[110]. - The company was awarded a multi-year research contract valued at approximately $27 million from the DoD for potential label expansion of oral TPOXX®[97]. - The Company is targeting a Supplemental NDA submission for oral TPOXX® for smallpox post-exposure prophylaxis in 2026[79]. Regulatory Approvals and Product Development - The FDA approved IV TPOXX® for smallpox treatment on May 18, 2022, expanding the Company's product offerings[74]. - The EMA's Committee for Medicinal Products for Human Use is reviewing the effectiveness of Tecovirimat-SIGA for mpox treatment following clinical trial results[77]. - The International Promotion Agreement allows Meridian to receive a fee equal to a high single-digit percentage of collected proceeds from sales of oral TPOXX® in specified regions[90]. Contracts and Payments - As of September 30, 2025, total payments under the 19C BARDA Contract are approximately $630 million, with $79.2 million in the base period and $545.2 million related to exercised options[83]. - The company has received $11.1 million for the delivery of approximately 35,700 courses of oral TPOXX® to the Strategic Stockpile as of September 30, 2025[84]. Market and Investment Risks - SIGA's forward-looking statements highlight potential risks affecting future performance, including contract completion and market development uncertainties[122]. - The company emphasizes the importance of maintaining governmental approvals for marketing its products, which could impact future revenues[122]. - SIGA's investment portfolio focuses on capital preservation, with a conservative approach to investment duration and credit quality[123]. - The company does not use derivative financial instruments to manage interest rate exposure, indicating a straightforward investment strategy[123]. - SIGA's interest income is sensitive to changes in U.S. interest rates, reflecting market risk associated with its securities[123].

Financial Performance - Consolidated net sales for the three months ended September 30, 2025, were $513.7 million, an increase of $15.2 million or 3.0% compared to the prior-year quarter[162]. - Gross profit for the same period was $99.4 million, reflecting an increase of $5.8 million or 6.2%, with a gross profit margin of 19.3%[165]. - Operating profit for the three months ended September 30, 2025, was $16.0 million, an increase of $9.0 million compared to the prior year[171]. - Consolidated net sales for the nine months ended September 30, 2025 were $1,523.9 million, an increase of $1.4 million, or 0.1%, compared to the prior year[179]. - Gross profit for the nine months ended September 30, 2025 was $275.7 million, a decrease of $10.8 million, or 3.8%, compared to the prior year[182]. - Operating loss for the nine months ended September 30, 2025 was $394.5 million, compared to an operating profit of $3.7 million in the prior year[188]. Segment Performance - The Filtration & Advanced Materials segment reported net sales of $198.3 million, up $8.7 million or 4.6%, while the Sustainable & Adhesive Solutions segment had net sales of $315.4 million, an increase of $6.5 million or 2.1%[162][164]. - Filtration & Advanced Materials segment net sales decreased by $8.4 million, or 1.4%, to $590.3 million, primarily due to lower volume/mix and selling prices[180]. - Sustainable & Adhesive Solutions segment net sales increased by $9.8 million, or 1.1%, to $933.6 million, driven by higher volume/mix and selling prices[181]. Cash Flow and Debt - Cash provided by operations for the three months ended September 30, 2025, was $72.8 million, compared to $37.6 million in the prior year[160]. - Cash provided by operating activities was $114.5 million, an increase from $70.7 million in the prior year period[199]. - As of September 30, 2025, total debt was $1,028.9 million, with a net leverage ratio of 4.2x against a maximum covenant ratio of 5.50x[157]. - Total debt to capital ratio increased to 72.1% as of September 30, 2025, compared to 55.9% at December 31, 2024[208]. - The Company had $420.2 million of undrawn capacity on its $600.0 million revolving line of credit facility as of September 30, 2025[157]. - Unused borrowing capacity under the Amended Credit Agreement was $420.2 million as of September 30, 2025[207]. Expenses and Impairments - The Company incurred total restructuring and other impairment expenses of $8.1 million, down from $11.2 million in the prior year[167]. - Interest expense decreased to $17.7 million, a reduction of $0.6 million or 3.3% compared to the prior year[175]. - Interest expense decreased by $0.9 million, or 1.6%, to $54.1 million during the nine months ended September 30, 2025[192]. - A non-cash impairment of goodwill amounting to $411.9 million was recorded for the FAM reporting unit due to a discount rate increase to 14%[211]. - A potential impairment of approximately $15.0 million for SAS could occur with a 100bps increase in the discount rate[212]. Tax and Dividends - The effective tax rate for the three months ended September 30, 2025, was 42.9%, compared to 13.3% in the prior year, primarily due to a one-time tax adjustment[177]. - The company announced a cash dividend of $0.10 per share payable on December 19, 2025[205]. Risks and Strategic Outlook - The company faces risks from economic conditions, market fluctuations, and trade barriers that could impact cash flow forecasts for SAS[213]. - Forward-looking statements include expectations regarding tariffs, debt obligations, and capital spending, indicating a focus on strategic growth initiatives[215]. - The company emphasizes the importance of managing risks associated with acquisitions and market competition[216]. - Market risk exposure as of September 30, 2025, remains consistent with previous disclosures[219].

Drug Development and Clinical Trials - The company is focused on peptide therapeutics, with two novel peptides, icotrokinra and rusfertide, in advanced Phase 3 clinical development, and one New Drug Application (NDA) submitted to the FDA in July 2025[93] - Icotrokinra achieved a clinical response rate of 63.5% at Week 12 compared to 27% for placebo (p<0.001), with 30.2% of patients demonstrating clinical remission versus 11.1% for placebo[111] - Rusfertide is in Phase 3 development for polycythemia vera and received Breakthrough Therapy designation from the FDA in August 2025[95] - The ICONIC clinical development program for icotrokinra includes four pivotal Phase 3 trials, all meeting primary and co-primary endpoints for moderate-to-severe plaque psoriasis[99] - In the ANTHEM-UC trial, icotrokinra demonstrated clinically meaningful outcomes at Week 28, with 31.7% of patients achieving clinical remission[109] - The VERIFY Phase 3 trial of rusfertide for Polycythemia Vera (PV) enrolled 293 patients, achieving a clinical response in 76.9% of patients treated with rusfertide compared to 32.9% in the placebo group (p<0.0001)[119] - Rusfertide demonstrated a mean reduction in phlebotomies to 0.5 per patient in the treatment group versus 1.8 in the placebo group during Weeks 0-32 (p<0.0001)[120] - The company plans to submit a second NDA by the end of 2025 for rusfertide[95] - PN-881, a potential treatment for immune-mediated skin diseases, was selected as a development candidate, with Phase 1 trials expected to inform future studies[115][116] - The company anticipates initiating Phase 1 clinical studies for PN-477, a GLP-1/GIP/GCG receptor triple agonist, by mid-2026[136] Financial Performance and Revenue - The company has earned a total of $337.5 million in non-refundable payments from Janssen Biotech, with eligibility for up to $630.0 million in future milestone payments[111] - License and collaboration revenue for the three months ended September 30, 2025 was $4.7 million, a slight increase of 1% from $4.7 million in the same period of 2024[158] - License and collaboration revenue for the nine months ended September 30, 2025 was $38.6 million, a significant decrease of 85% from $263.8 million in the same period of 2024[168] - Total operating expenses for the nine months ended September 30, 2025 were $146.4 million, an increase of 6% from $137.7 million in the same period of 2024[168] - Net loss for the nine months ended September 30, 2025 was $85.8 million, compared to a net income of $143.5 million in the same period of 2024[168] - The company expects research and development expenses to increase in the near term as it focuses on regulatory filings and advancing pre-clinical and drug discovery programs[151] Research and Development Expenses - Research and development expenses increased by $4.0 million, or 11%, from $36.0 million for the three months ended September 30, 2024 to $40.0 million for the same period in 2025[162] - Pre-clinical and drug discovery research expenses rose by $8.8 million, or 92%, primarily due to costs related to new product development candidates PN-881 and PN-477[162] - Research and development expenses increased by $9.7 million, or 9%, from $103.2 million for the nine months ended September 30, 2024 to $112.9 million for the nine months ended September 30, 2025[174] - Pre-clinical and drug discovery research expenses rose by $18.6 million, contributing to the overall increase in R&D expenses, while rusfertide expenses decreased by $8.9 million due to the completion of the Phase 3 VERIFY trial[174] Cash Flow and Financial Position - Cash provided by operating activities for the nine months ended September 30, 2025 was $94.6 million, a decrease of $118.7 million compared to the same period in 2024, mainly due to the absence of a $300.0 million upfront payment received in 2024[193] - Cash used in investing activities for the nine months ended September 30, 2025 was $98.1 million, a decrease of $192.6 million compared to the same period in 2024, primarily due to investments made with proceeds from the $300.0 million upfront payment received from Takeda[194] - As of September 30, 2025, the company had $678.8 million in cash, cash equivalents, and marketable securities, an increase from $559.2 million as of December 31, 2024[180] - The company expects existing cash, cash equivalents, and marketable securities to be sufficient to fund operations for at least the next twelve months based on current operating plans and financial forecasts[187] Collaborations and Agreements - The company received a one-time upfront payment of $300 million from Takeda under the collaboration agreement for rusfertide[128] - The company is eligible for up to $305 million in additional milestone payments related to rusfertide under the Takeda Collaboration Agreement[128] - Upcoming potential milestones under the Takeda Collaboration Agreement include a $50.0 million milestone payment upon approval of an NDA for icotrokinra in any indication[184] - The company received a total of $337.5 million in non-refundable payments from JNJ from the inception of the JNJ License and Collaboration Agreement in 2017 through September 30, 2025[181] Economic and Regulatory Environment - The company is evaluating the potential impact of new U.S. corporate tax legislation on its consolidated financial statements[140] - An immediate 100 basis point increase in interest rates would increase annual interest income by approximately $3.7 million[199] - Inflation has not had a material adverse effect on the company's operations during the three and nine months ended September 30, 2025[201] - The company has experienced increased costs related to labor and research and development contracts due to inflation fluctuations[201]

Financial Performance - Revenue for Q3 2025 was $11,451,000, representing a 22.1% increase from $9,360,000 in Q3 2024[15] - Gross margin improved to $8,925,000 in Q3 2025, up from $7,067,000 in Q3 2024, indicating a stronger profitability[15] - Operating income for the nine months ended September 30, 2025, was $4,330,000, compared to $2,895,000 for the same period in 2024, reflecting a 49.5% increase[15] - Net income for Q3 2025 was $10,325,000, a significant recovery from a net loss of $20,657,000 in Q3 2024[15] - For the nine months ended September 30, 2025, the company reported a net income of $5,704,000 compared to a net loss of $18,624,000 in the same period of 2024, indicating a significant turnaround[23] - Total revenue for the three months ended September 30, 2025, was $11.451 million, representing a 22.9% increase from $9.360 million in the same period of 2024[85] - Revenue for the three months ended September 30, 2025, was $11.5 million, a 22% increase compared to $9.4 million in the same period of 2024[114] - For the nine months ended September 30, 2025, revenue totaled $31.0 million, a 39% increase from $22.3 million in the same period of 2024[114] - Operating income for the nine months ended September 30, 2025, was $4.3 million, an improvement of $1.4 million compared to the same period in 2024[116] - The company had a gross margin of $8.9 million for the three months ended September 30, 2025, compared to $7.1 million for the same period in 2024[112] - General and administrative expenses for the three months ended September 30, 2025, were $4.8 million, compared to $2.5 million in the same period of 2024[112] Assets and Liabilities - Total current assets increased to $22,633,000 as of September 30, 2025, compared to $18,397,000 at the end of 2024, marking a 22.3% growth[13] - Total liabilities decreased to $38,530,000 as of September 30, 2025, down from $42,836,000 at the end of 2024, indicating improved financial health[13] - Cash and cash equivalents were $9,602,000 as of September 30, 2025, slightly down from $10,237,000 at the end of 2024[13] - The company reported a total stockholders' deficit of $2,931,000 as of September 30, 2025, an improvement from a deficit of $12,717,000 at the end of 2024[14] - Cash at the end of the period was $9,602,000, up from $3,259,000 at the end of the same period in 2024[25] - The allowance for credit losses increased to $1,259,000 as of September 30, 2025, from $1,056,000 a year earlier, with a provision for credit losses of $153,000 compared to $67,000 in the prior year[54] Cash Flow and Financing Activities - Operating cash flows provided by operating activities were $557,000, a decrease from $1,714,000 in the prior year[23] - The company reported a net cash flow used in financing activities of $4,346,000, compared to $119,000 in the prior year[23] - Cash flows from operating activities for the nine months ended September 30, 2025, were impacted by non-cash charges totaling $3.5 million related to stock-based compensation[141] - Cash provided by investing activities for the same period was $3.2 million, primarily from a patent purchase agreement of $5 million[143] - Cash used in financing activities for the nine months ended September 30, 2025, totaled $4.3 million, mainly for paying off existing debt[145] Debt and Equity - The company executed a comprehensive debt refinancing, extending the maturity of principal debt obligations and providing additional liquidity through a secured revolving credit facility[34] - The Company entered into a new secured term loan of $23 million and a $5 million revolving credit facility, with interest rates based on SOFR plus a margin of 3.50% or CBFR plus a margin of 2.50%[63] - The company recognized a gain on the sale of patents amounting to $5,000,000 during the nine months ended September 30, 2025[23] - The company incurred stock-based compensation expenses of $3,513,000 for the nine months ended September 30, 2025, compared to no such expenses in the prior year[23] - The company recognized a $5.0 million gain on the sale of patents within Other Income for the three and nine months ended September 30, 2025[105] Operational Highlights - Research and development expenses increased to $747,000 for the nine months ended September 30, 2025, compared to $519,000 for the same period in 2024, reflecting a focus on innovation[15] - The quantity of UltraMIST systems sold increased by 54% in the nine months ended September 30, 2025, compared to the same period of 2024[124] - Consumables and parts revenue for the nine months ended September 30, 2025, was $19.806 million, up 33.3% from $14.879 million in the prior year[85] - Revenue for the nine months ended September 30, 2025, was $31.0 million, a 39% increase from $22.3 million in the same period of 2024, driven by a 28% increase in UltraMIST disposables sold[124] Corporate Governance and Compliance - The company is committed to addressing material weaknesses in internal controls and has engaged CliftonLarsonAllen LLP for valuation assistance[157] - The company plans to enhance internal controls and has hired a Director of Internal Audit to oversee these efforts[158] - The company has filed various certificates of amendment to its Articles of Incorporation, with the most recent effective as of October 18, 2024[171] - The ongoing amendments and agreements suggest a proactive approach to corporate governance and strategic partnerships within the healthcare sector[170] - The company has incorporated XBRL (eXtensible Business Reporting Language) for its financial reporting, enhancing transparency and accessibility of financial data[171]

Heartland Express, Inc. Reports Operating Results for the Third Quarter of 2025 NORTH LIBERTY, IOWA - October 31, 2025 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the three and nine months ended September 30, 2025. October 31, 2025 For Immediate Release Press Release Three months ended September 30, 2025: Nine months ended September 30, 2025: Heartland Express Chief Executive Officer Mike Gerdin commented on the quarterly operating results and ongoing initiatives of the Co ...

Revenue Performance - For the six months ended September 30, 2025, the company achieved revenue growth of 3.7% compared to the prior year, driven by the Calibration Solutions, Biopharmaceutical Development, and Sterilization and Disinfection Control divisions [94]. - The Clinical Genomics division experienced a revenue decline of 6.4% for the six months ended September 30, 2025, primarily due to trade tensions and unfavorable macroeconomic conditions in China [94]. - Revenues for the three months ended September 30, 2025, were $60,737,000, representing a 5.0% increase from $57,833,000 in the prior year [102]. - The Sterilization and Disinfection Control division reported revenues of $47.5 million for the six months ended September 30, 2025, with a gross profit margin of 69.5% [101]. - The Biopharmaceutical Development division generated revenues of $25.4 million for the same period, with a gross profit margin of 56.8% [101]. - The Calibration Solutions division achieved revenues of $25.9 million, reflecting a 7.7% organic revenue growth for the six months ended September 30, 2025 [101]. - The Sterilization and Disinfection Control division's revenues declined 0.4% for the three months ended September 30, 2025, primarily due to lower-than-expected order fulfillments [105]. - The Biopharmaceutical Development division's revenues increased 17.3% for the three months ended September 30, 2025, driven by higher sales of Peptides instruments [110]. - Revenues for the Calibration Solutions division increased 10.7% for the three months ended September 30, 2025, due to ongoing commercial efforts and price increases [114]. - Clinical Genomics division revenues declined 3.1% for the three months ended September 30, 2025, primarily due to lower sales to customers in China [118]. Operating Expenses and Profitability - Consolidated gross profit as a percentage of revenues decreased by 1.0 percentage point to 61.7% for the first half of fiscal year 2026, impacted by the weakening of the U.S. dollar and tariffs [95]. - Operating expenses increased by 4.5% for the six months ended September 30, 2025, largely due to higher personnel expenses and non-cash stock-based compensation [98]. - Operating expenses increased 2.1% for the three months ended September 30, 2025, influenced by the weakening of the U.S. dollar against the euro and Swedish krona [121]. - Selling expenses decreased 0.5% for the three months ended September 30, 2025, primarily due to lower personnel and training costs [123]. - General and administrative expenses increased 1.7% for the three months ended September 30, 2025, driven by higher estimated uncollectible accounts receivable in China [125]. - Gross profit as a percentage of revenues for the Biopharmaceutical Development division decreased 2.0 percentage points for the three months ended September 30, 2025, primarily due to tariffs and unfavorable product mix [112]. Cost Management and Future Outlook - The company expects to realize annualized cost reductions of approximately $2.3 million starting in the third quarter of fiscal year 2026, following headcount reductions and other cost-saving initiatives [97]. - Research and development expenses increased by 8.9% to $5.048 million for the three months ended September 30, 2025, and by 7.1% to $10.032 million for the six months ended September 30, 2025, compared to the prior year periods [128]. - Interest expense decreased by 5.2% to $2.862 million for the three months ended September 30, 2025, and by 13.7% to $5.060 million for the six months ended September 30, 2025, primarily due to lower interest rates and outstanding debt levels [129]. - The company expects to incur approximately $11.6 million in cash interest expense over the next twelve months [140]. Cash Flow and Working Capital - Net cash provided by operating activities was $10.115 million for the six months ended September 30, 2025, a decrease of $5.9 million compared to the prior year [148]. - Working capital improved to $49.1 million as of September 30, 2025, from negative working capital of $(61.3) million as of March 31, 2025, due to the settlement of $97.5 million in principal related to Notes [139]. - Cash used in investing activities decreased to $(2.101) million for the six months ended September 30, 2025, compared to $(2.679) million in the prior year [149]. Dividends and Shareholder Returns - The company paid dividends of $0.16 per share during the three months ended September 30, 2025, and announced a quarterly cash dividend of $0.16 per share payable on December 15, 2025 [142]. Market Risk and Global Operations - Approximately 53% of the company's revenues were earned outside the United States during the six months ended September 30, 2025, highlighting its global operations [93]. - There were no material changes to the company's market risk exposure during the three months ended September 30, 2025 [156]. - The company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2025, contains detailed disclosures about market risk exposure [156]. Organic Revenue Growth - Total company organic revenue growth for the three months ended September 30, 2025, was 5.0%, compared to 8.8% in the same period of 2024 [155]. - Biopharmaceutical Development segment showed organic revenue growth of 17.3% for the three months ended September 30, 2025, down from 28.9% in 2024 [155]. - Clinical Genomics segment experienced a decline in organic revenue of (3.1%) for the three months ended September 30, 2025, compared to a decline of (26.0%) in 2024 [155]. - For the six months ended September 30, 2025, total company organic revenue growth was 3.7%, down from 11.7% in 2024 [155]. - Calibration Solutions segment reported organic revenue growth of 7.7% for the six months ended September 30, 2025, compared to 5.6% in 2024 [155]. - Sterilization and Disinfection Control segment had organic revenue growth of 5.2% for the six months ended September 30, 2025, down from 36.8% in 2024 [155]. - Clinical Genomics segment's organic revenue decline was (6.4%) for the six months ended September 30, 2025, compared to (20.8%) in 2024 [155]. Goodwill and Foreign Currency - The carrying values of goodwill associated with the Clinical Genomics and Peptides reporting units were $17.1 million and $13.7 million, respectively, as of September 30, 2025 [146]. - The company recognized unrealized foreign currency gains of approximately $6.1 million during the six months ended September 30, 2025, related to an intercompany loan [130].

Financial Performance - Net loss for Q3 2025 was $20.2 million, or $0.56 per share, compared to a net loss of $23.4 million, or $6.70 per share, in Q3 2024[10]. - Total operating expenses for Q3 2025 were $25.2 million, compared to $24.8 million in Q3 2024[16]. Revenue Generation - Collaboration revenue for Q3 2025 was $2.1 million, compared to no revenue in Q3 2024, driven by a multi-year research collaboration with Novartis[6]. Research and Development - Research and development expenses decreased to $18.5 million in Q3 2025 from $20.0 million in Q3 2024, primarily due to a $13.1 million reduction in azelaprag direct costs[7]. - The company is advancing its oral and parenteral APJ agonist programs, targeting IND submissions in 2026[4]. - BioAge's collaboration with JiKang Therapeutics focuses on a novel APJ agonist nanobody with at least 10-fold greater potency than apelin[4]. - The first participant was dosed in the Phase 1 trial of BGE-102, with initial single ascending dose data expected by year-end 2025[2]. - The company anticipates top-line data for the proof-of-concept clinical trial of BGE-102 in the second half of 2026[3]. Cash Position - As of September 30, 2025, the company had approximately $295.9 million in cash, cash equivalents, and marketable securities, sufficient to fund operations through 2029[11]. Administrative Expenses - General and administrative expenses increased to $6.7 million in Q3 2025 from $4.7 million in Q3 2024, mainly due to higher legal fees and personnel-related expenses[8].

Revenue Performance - Inuvo's net revenue for the three months ended September 30, 2025, increased by approximately $199,000 (0.9%) year-over-year, while revenue for the nine-month period increased by approximately $14.3 million (24.9%) compared to the same period in 2024[105]. - Platform clients accounted for 82.8% of overall revenue in Q3 2025, down from 83.8% in Q3 2024, while their contribution for the nine-month period was 86.2%, up from 83.6% in 2024[105]. - The company expects revenue to increase as it complies with new requirements from a Platform client that affected revenue in Q3 2025[115]. Cost and Expenses - The cost of revenue for the three months ended September 30, 2025, increased by 131.3% to $6,002,423, and for the nine months, it increased by 126.3% to $17,199,909 compared to the same periods in 2024[103][106]. - Operating expenses for the three months ended September 30, 2025, decreased by 16.0% to $18,237,852, while for the nine months, they increased by 8.1% to $60,233,075 compared to 2024[107]. - Marketing costs for the three months ended September 30, 2025, decreased by 21.4% to $13,375,136, while for the nine months, they increased by 5.8% to $45,026,458 compared to the same period in 2024[107]. Financial Position - Inuvo reported a net loss of $4,501,648 for the nine months ended September 30, 2025, compared to a net loss of $5,903,142 for the same period in 2024[118][119]. - As of September 30, 2025, Inuvo had approximately $3.4 million in cash and cash equivalents, with a net working capital deficit of $4.9 million[115]. - Inuvo's accumulated deficit reached $177.7 million as of September 30, 2025[115]. Cash Flow Activities - Net cash used in investing activities was $1,240,992 for the nine months ended September 30, 2025, primarily due to capitalized internal development costs[120]. - Net cash provided by financing activities was $3,968,636 during the nine months ended September 30, 2025, mainly from the utilization of the Financing Agreement[121]. - Net cash used in financing activities during the nine months ended September 30, 2024, was $343,526, primarily due to taxes paid on restricted stock unit grants exercised[121]. Other Financial Information - As of September 30, 2025, there are no off-balance sheet arrangements that materially affect the company's financial condition[122]. - The company does not have any market risk disclosures applicable as it is classified as a smaller reporting company[123]. Stock Activity - The company utilized its ATM Agreement to sell 165,641 shares of common stock for gross proceeds of $1,184,740 during 2025[112].