Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SE ...

Strategic Review and Future Positioning - The company is undergoing a strategic review targeted for completion in early Q2 2025, aiming to define a new vision and establish a clear future position [44]. Financial Position and Liquidity - As of December 31, 2024, the company had €396.8 million in cash, cash equivalents, and investments, with a €250 million senior secured revolving credit facility secured in July 2024 to strengthen liquidity [50]. - As of December 31, 2024, 62% of the company's liquidity is held in Euros, with approximately 26% of liquid assets in US dollars [51]. - The company is exposed to liquidity risks from long-term fixed-price contracts if planned cash inflows are lower than expected [50]. - The company received €46.9 million in R&D tax credits for the year ended December 31, 2024 [63]. - For the year ended December 31, 2024, the company reported €797.0 million in revenue, representing growth of 2.0% from the previous year [182]. - The company incurred a net loss of €196.1 million for 2024, an increase of €112.2 million compared to 2023 [182]. - Adjusted EBITDA for 2024 was €22.6 million, a decrease of €43.8 million from the previous year [182]. Revenue Sources and Customer Base - In 2024, 38.3% of the company's revenue came from three customers, with 109 customer alliances each generating over €1 million [46]. - As of December 31, 2024, Evotec's revenue from "fee-for-service" agreements accounted for 94% of total revenues, with milestone payments contributing only 0.6% and 0.4% in 2023 and 2024 respectively [99]. - The contribution of the top ten customers to total revenues rose to 52% in 2024, up from 47% in 2023 and 39% in 2022 [139]. - The total number of customers increased to 849 in 2024, with 292 new customers added during the year, compared to 298 in 2023 [138]. R&D and Innovation - The company aims to serve as a source of innovative drug candidates for partners, advancing multiple active drug discovery and early development projects [48]. - R&D expenses for 2024 were €50.9 million, down from €68.5 million in 2023, focusing on selected R&D projects [187]. - The company has over 140 partnered assets in its pipeline, which includes candidates for which it has rights to receive royalty or milestone payments [189]. - The company is focused on acquiring and licensing additional intellectual property assets and technologies as opportunities arise [153]. - The proprietary multi-omics data generation platform, PanOmics, is considered industry-leading in throughput, robustness, and cost efficiency [111]. - The molecular patient database for chronic kidney disease (CKD) has expanded to include data from almost 12,000 patients, constituting over 600 billion data points, making it the largest CKD molecular database globally [113]. Operational Challenges and Risks - The ongoing Ukraine-Russia conflict and tensions in the Middle East pose significant risks to global economic stability, potentially impacting supply chains and operational costs [45]. - The company faces competition from cost-conscious Contract Research Organizations (CROs) in Asia and Eastern Europe, which could affect market positioning and revenues [46]. - The company is exposed to risks related to changes in tax laws and interpretations, which could affect its tax obligations and financial performance [62]. - Quality risks in manufacturing and R&D could delay clinical trials and regulatory approvals, adversely affecting business operations [57]. - The company experienced a ransomware incident in 2023, which caused operational delays and may continue to impact revenue and costs [78][79]. Compliance and Regulatory Environment - The company is subject to the German Supply Chain Due Diligence Act, which mandates compliance with human rights and environmental standards starting in 2024 [55]. - Regulatory compliance risks include potential fines and reputational damage if the company fails to meet sustainability reporting obligations [54]. - The company is subject to extensive government regulations in the EU and the US, which require substantial time and financial resources for compliance [156]. Market Trends and Growth Projections - The global biotechnology market is projected to grow at a CAGR of 11.5%, from $1.55 trillion in 2024 to $3.21 trillion by 2030 [143]. - The small molecule discovery market is expected to grow at a CAGR of 7.97%, from $88.57 billion in 2024 to $140.31 billion by 2030 [144]. Infrastructure and Facilities - The company operates 17 sites, including five manufacturing facilities, with a focus on profitable growth leading to the exit of certain operations in 2024 [103]. - The total area of facilities owned and leased by the company at the end of 2024 was approximately 213,930 square meters, with significant locations in France, Germany, Italy, the UK, and the US [173]. - The company completed the construction of its first J.POD facility in North America in August 2021, and a second J.POD facility in Toulouse in 2024, to strengthen its position in drug discovery and development [175]. Employee and Talent Management - In 2024, approximately 7% of the global workforce was affected by a restructuring program due to significant organizational changes and challenging financial results [74]. - The company faced challenges in sourcing and hiring talent across global locations, particularly for specialized scientific and leadership roles, due to competitive labor markets and skills shortages [75][76]. Intellectual Property and Competitive Position - The company relies on trade secrets and patents for intellectual property protection, which may not be sufficient to maintain competitive advantage [65]. - Changes in patent laws and interpretations could diminish the value of the company's intellectual property rights [67]. - The company’s proprietary drug discovery programs and technology platforms are protected through a multi-layered intellectual property strategy [152]. - As of December 31, 2024, the company owned a patent portfolio that included more than 45 patent families, with filings in the United States and Europe, and several pending or granted in multiple jurisdictions [154].

Financial Position - As of December 31, 2023, total assets amounted to RMB 113,197,000, with cash and cash equivalents at RMB 40,508,000[27] - The total liabilities were reported at RMB 493,076,000, with significant amounts due to other subsidiaries and WFOEs[27] - The investment deficit in subsidiaries of the company was RMB (1,218,313,000), indicating a substantial financial burden[27] - For the year ending December 31, 2024, total assets are projected to be RMB 103,440,000, with cash and cash equivalents decreasing to RMB 26,951,000[29] - Total liabilities for 2024 are expected to be RMB 498,559,000, reflecting a slight increase from the previous year[29] - The total (deficit)/equity for the company as of December 31, 2024, is projected to be RMB (395,119,000), indicating ongoing financial challenges[29] - Financing receivables, net, were reported at RMB 61,467,000 as of December 31, 2023, showing the company's reliance on receivables for liquidity[27] - The company has significant amounts due from WFOEs, totaling RMB 808,738,000, which may impact cash flow and operational flexibility[27] Revenue and Losses - For the year ended December 31, 2022, consolidated total revenues were RMB 74,568,000, a decrease from RMB 52,717,000 in 2023, representing a decline of approximately 29.3%[31][32] - The net loss attributable to Pintec's shareholders for the year ended December 31, 2022, was RMB 190,183,000, which improved to a net loss of RMB 78,762,000 in 2023, indicating a reduction in loss of about 58.6%[31][32] - Operating expenses decreased from RMB 93,412,000 in 2022 to RMB 56,219,000 in 2023, reflecting a reduction of approximately 39.9%[31][32] - Revenues for the year ended December 31, 2024, were RMB 35,142,000, a further decline from RMB 52,717,000 in 2023, representing a decrease of about 33.0%[32][33] - The loss from operations for the year ended December 31, 2024, was RMB 14,102,000, compared to a loss of RMB 41,693,000 in 2023, indicating an improvement of approximately 66.2%[32][33] - The share of loss from subsidiaries for the year ended December 31, 2023, was RMB 81,704,000, which decreased to RMB 13,167,000 in 2024, showing a significant reduction of about 83.9%[32][33] - The income tax benefit for the year ended December 31, 2023, was RMB 13,901,000, compared to an expense of RMB 2,522,000 in 2022, indicating a positive shift in tax position[31][32] - The consolidated total for the year ended December 31, 2023, was RMB 52,717,000, down from RMB 74,568,000 in 2022, reflecting a decline of approximately 29.3%[31][32] - The cost of revenues for the year ended December 31, 2023, was RMB 38,191,000, a decrease from RMB 62,688,000 in 2022, representing a reduction of about 39.2%[31][32] - The net loss for the year ended December 31, 2024, was RMB 15,454,000, compared to a net loss of RMB 81,254,000 in 2023, indicating an improvement of approximately 81.0%[32][33] Cash Flow and Investments - For the year ended December 31, 2022, the consolidated net cash provided by operating activities was a negative RMB 10,518 thousand, while for 2023, it improved to RMB 8,611 thousand[35] - The cash and cash equivalents at the end of 2023 were RMB 45,508 thousand, a decrease from RMB 256,210 thousand at the end of 2022[35] - The net cash used in investing activities for 2023 was RMB 35,272 thousand, compared to a positive cash flow of RMB 86,690 thousand in 2022[35] - The cash received by the parent company from equity owned subsidiaries was RMB 2,018 thousand in 2022, increasing significantly to RMB 28,187 thousand in 2023, but was zero in 2024[39] - The cash paid by VIEs to equity owned subsidiaries was RMB 226,472 thousand in 2022, dropping to RMB 1,861 thousand in 2023, and slightly increasing to RMB 1,389 thousand in 2024[39] - The cash paid by WFOEs to equity owned subsidiaries was RMB 109,270 thousand in 2022, decreasing to RMB 13,350 thousand in 2023, and further to RMB 1,040 thousand in 2024[39] - The cash received by WFOEs from equity owned subsidiaries was RMB 36,489 thousand in 2022, with no cash received in 2023 and 2024[39] Regulatory Environment and Compliance - The company faces unique risks associated with its VIE structures, which may limit operational control and increase enforcement costs[24] - The contractual arrangements with VIEs have not been tested in a court of law, leading to uncertainties regarding compliance with PRC laws[25] - The Overseas Listing Trial Measures require PRC domestic companies to fulfill filing procedures with the CSRC for overseas offerings, impacting future capital raising activities[42] - Companies listed on overseas exchanges before March 31, 2023, are not required to make immediate filings but must file for subsequent offerings within three business days[42] - The SEC may prohibit trading of ordinary shares or ADSs if audit reports are filed by firms not inspected by the PCAOB for two consecutive years, posing a risk to trading[43] - The PCAOB's ability to inspect accounting firms in Mainland China and Hong Kong is subject to annual determination, which could affect the company's status as a Commission-Identified Issuer[45] - Regulatory uncertainties in the consumer finance industry in Mainland China could adversely affect the company's financial condition and results of operations[59] - The company holds several licenses, including internet micro lending and fund distribution licenses, which have limited terms and may not be renewed[60] - The evolving regulatory environment may impose additional compliance requirements, affecting the company's ability to operate and offer securities[59] - The company is subject to potential liabilities and penalties if it fails to comply with PRC laws and regulations regarding financial products, which could materially affect its financial condition and results of operations[87] - The company must comply with data privacy laws, and failure to do so could materially affect its business and financial condition[123] - The company is subject to evolving cybersecurity regulations, which may impact its operations and compliance requirements[127] - The PRC regulations regarding foreign investments in fund distribution are subject to interpretation, leading to substantial uncertainties for the company's operations[175] - The PRC Foreign Investment Law, effective January 1, 2020, introduces uncertainties regarding the corporate structure and governance of the company[177] - The PRC tax authorities may audit related party transactions, potentially leading to additional tax liabilities for the company[186] - The company may lose access to critical assets held by variable interest entities if they undergo bankruptcy or liquidation proceedings[188] Business Model and Market Risks - The company has ceased onboarding new loan facilitation customers since April 2022 and currently only serves existing loan facilitation customers[63] - The company reduced its reliance on risk-sharing models, leading to lower credit risk exposure since 2020, with a focus on digital-centric services[63] - The business model has been upgraded to provide unsecured loan services to MSMEs, which may lead to a higher customer default rate[61] - The trading price of the company's ADSs has declined significantly since listing, with potential risks of delisting from Nasdaq[54] - A credit crisis or prolonged downturn in the credit markets could lead to a material decline in the company's revenues, even if it does not bear credit risk in borrower defaults[96] - The company’s credit assessment models may inaccurately predict future loan losses, which could adversely impact its reputation and market share[93] - The company generates a significant proportion of its revenues through a limited number of business partners, and any changes in these partnerships could materially affect its operations[89] - The company faces challenges in the consumer finance industry due to negative publicity and investor confidence issues stemming from failures of other platforms[84] - Changes in the competitive landscape of Mainland China's consumer finance and wealth management industries may affect the company's business operations and partnerships[95] - The company has made substantial investments to enhance brand image, but these may not lead to immediate revenue increases[118] - If users are dissatisfied with financial products offered through the company's platforms, it could harm the company's reputation and financial performance[119] - The company faces significant competition in consumer finance, wealth management, and insurance from major platforms like Lexin and 360 DigiTech, which have greater financial resources and brand recognition[97] Internal Controls and Operational Risks - A material weakness in internal control over financial reporting was identified, related to insufficient personnel knowledgeable in U.S. GAAP and SEC reporting requirements[157] - Measures have been taken to remedy the material weakness, including engaging a consulting firm with U.S. GAAP experience, but full remediation cannot be guaranteed[158] - Failure to maintain effective internal controls could lead to material misstatements in financial statements and loss of investor confidence, potentially harming access to capital markets[159] - The company relies on complex software for its operations, and undetected errors could negatively impact user experience and financial performance[148] - Disruptions in internet infrastructure in Mainland China could affect the company's operations and financial performance due to reliance on state-owned telecommunication providers[151] - Increased fraudulent activity on the company's platforms could negatively impact its operating results and brand reputation[137] - The company collaborates with external collection agents, and any illegal practices by these agents could harm its reputation and business operations[144] - Retaining qualified employees is critical for the company's success, and competition for skilled personnel may hinder its ability to maintain a strong workforce[146] - The proprietary robo-advisory engine may be flawed, potentially leading to unsuitable investment recommendations and harming the company's reputation[147] - The accuracy of the company's credit assessment models is compromised by outdated or incomplete data, which could adversely affect financial performance[140] - The company faces risks related to users' changing financial circumstances, which may lead to higher loan loss rates due to inaccurate pricing[141] - Failure to verify user information and detect fraud could result in liabilities under the Civil Code of PRC, negatively impacting financial results[142] - The company's ability to collect delinquent loans is dependent on users' financial stability, and ineffective collection methods could lead to decreased service fees and revenue[143] Future Outlook and Strategic Plans - The company does not plan to pay any cash dividends in the foreseeable future, retaining most of its available funds for business operations and expansion[37] - Plans for international expansion, such as entering the Australian market, may expose the company to additional risks, including reliance on local partners and regulatory compliance[168][171] - Future investments and acquisitions may not yield expected results and could lead to equity dilution and management distraction[167] - The company must continuously innovate and enhance its technology infrastructure to remain competitive, as failure to achieve market acceptance could harm its growth prospects[90] - The company has taken measures to improve operating efficiency and control costs, including staff downsizing, but there is no assurance these measures will be sufficient to fund ongoing capital expenditures[111]

Quarterly Performance Summary Truist Financial Corporation First Quarter 2025 Ta b l e o f C o n t e n t s Q u a r t e rly P e rfo r m a n c e S u m m a r y T r uis t Fin a n cial C o r p o r a tio n | P | a | g | e | Fin | a | n | cial | Hig | hlig | h | t | s | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- ...

Financial Performance - Net interest income for Q1 2025 was $1,194 million, a decrease from $1,230 million in Q4 2024, reflecting a 2.9% decline[4] - Non-interest income increased to $590 million in Q1 2025, compared to $585 million in Q4 2024, marking a 0.9% growth[4] - Net income available to common shareholders was $465 million for Q1 2025, down from $508 million in Q4 2024, representing an 8.5% decrease[4] - The provision for credit losses was $124 million in Q1 2025, slightly up from $120 million in Q4 2024, indicating a 3.3% increase[4] - Return on average assets for Q1 2025 was 1.27%, down from 1.36% in Q4 2024[6] - The efficiency ratio for Q1 2025 was 57.9%, compared to 56.8% in Q4 2024, indicating a decline in operational efficiency[6] - Total assets increased to $159,846 million at the end of Q1 2025, up from $157,302 million at the end of Q4 2024, reflecting a 1.6% growth[4] - Total shareholders' equity increased to $18,530 million, up from $17,879 million at December 31, 2024, reflecting a growth of 3.6%[9] - Net income for Q1 2025 was $490 million, down from $534 million in Q4 2024, but up from $368 million in Q1 2024[19] - Basic earnings per share for Q1 2025 was $0.51, down from $0.56 in Q4 2024 but up from $0.37 in Q1 2024[19] Loan and Deposit Trends - Loans, net of unearned income, decreased to $95,733 million in Q1 2025 from $96,727 million in Q4 2024, a decline of 1.0%[4] - Total deposits rose to $130,971 million, an increase of $3,368 million or 2.6% from $127,603 million at December 31, 2024[9] - Total loans decreased to $95,733 million, down by $994 million or 1.0% from $96,727 million at December 31, 2024[10] - The allowance for loan losses remained stable at $1,613 million as of March 31, 2025, unchanged from December 31, 2024[9] - Total deposits increased to $127,687 million in Q1 2025, up 0.9% from $126,493 million in Q4 2024 and 0.4% from $127,126 million in Q1 2024[17] - Non-interest-bearing deposits increased by $1.305 billion (3.3%) from Q4 2024 to Q1 2025, but decreased by $1.381 billion (3.3%) from Q1 2024[16] Credit Quality and Losses - The provision for loan losses was $123 million for the quarter, a decrease from $125 million in the previous quarter[58] - Non-performing loans, excluding loans held for sale, decreased to $843 million, down from $928 million at December 31, 2024, indicating improved asset quality[61] - Total net charge-offs for the quarter were $123 million, compared to $119 million in the previous quarter, reflecting an increase in loan losses[58] - The net loan charge-offs as a percentage of average loans, annualized, was 0.52% for the quarter, compared to 0.49% in the previous quarter[58] - Total accruing 30-89 days past due loans amounted to $333 million, representing 0.35% as of March 31, 2025, a decrease from $367 million (0.38%) at December 31, 2024[62] Operational Efficiency - Total non-interest expense remained stable at $1,039 million in Q1 2025, compared to $1,038 million in Q4 2024[19] - The efficiency ratio (GAAP) for Q1 2025 was 57.9%, compared to 56.8% in Q4 2024 and 64.3% in Q1 2024[44] - Adjusted efficiency ratio (non-GAAP) improved to 56.8% in Q1 2025 from 55.4% in Q4 2024[44] - Salaries and employee benefits increased to $625 million in Q1 2025, up 1.3% from $617 million in Q4 2024, but down 5.0% from $658 million in Q1 2024[40] Strategic Initiatives and Risks - The company anticipates potential impacts from economic conditions, including interest rate fluctuations and property value declines, which may affect lending and financial results[64] - The company is focused on enhancing its digital banking services to meet customer needs and respond to technological trends[64] - The company faces risks related to competition from fintechs and traditional financial institutions, which may affect its market position[64] - Changes in laws and regulations, including those affecting bank products and services, may require the company to alter business practices and could negatively impact revenue[68] - The company must invest significant managerial resources to comply with stress testing and capital planning requirements[68]

UnitedHealth Group Reports First Quarter 2025 Results and Revises Full Year Guidance (April 17, 2025) UnitedHealth Group (NYSE: UNH) reported first quarter 2025 results and revised its outlook for the year. "UnitedHealth Group grew to serve more people more comprehensively but did not perform up to our expectations, and we are aggressively addressing those challenges to position us well for the years ahead, and return to our long-term earnings growth rate target of 13 to 16%," said Andrew Witty, chief execu ...

Financial Performance - Net sales for Q4 fiscal 2025 were $104.5 million, an increase of 8% compared to $96.8 million in the prior year quarter[5]. - Consolidated net loss for Q4 was $2.3 million, or ($0.22) per diluted share, compared to net income of $593,000, or $0.06 per diluted share in the prior year[5]. - For the full year fiscal 2025, consolidated net sales were $397.5 million, reflecting a decrease of $35.8 million, or 8.3%, compared to the previous fiscal year[5]. - Hooker Branded Q4 net sales rose $3.8 million, or 10.0%, driven by a 14% increase in unit volume, while fiscal 2025 net sales decreased $10.1 million, or 6.5%[7]. - Home Meridian Q4 net sales increased $6.3 million, or 21.7%, year-over-year, with gross margin reaching 22.9%, the highest since 2016[8]. - Domestic Upholstery Q4 net sales decreased $2.0 million, or 7.0%, year-over-year, with fiscal 2025 net sales down $12.6 million, or 9.9%[9]. - Total net sales for the 53 weeks ended February 2, 2025, were $397.465 million, a decrease from $433.226 million in the prior year, representing a decline of approximately 8.2%[30]. - The Hooker Branded segment generated net sales of $146.470 million for the 53 weeks ended February 2, 2025, down from $156.590 million in the prior year, a decrease of approximately 6.8%[30]. Cost Management and Savings - The company expects fiscal 2026 cost savings of at least $0.8 to $1.0 million from the Savannah warehouse exit, with annualized savings of $4.0 to $5.7 million beginning in fiscal 2027[4]. - Total annualized cost savings from the Savannah exit and additional measures are expected to be between $18 million to $20 million, fully realized in fiscal 2027[9]. Cash Flow and Assets - Cash and cash equivalents stood at $6.3 million, a decrease of $36.9 million from the previous year-end, largely due to increased accounts receivable and planned inventory increases[11]. - Total assets decreased to $313.94 million as of February 2, 2025, down from $343.59 million as of January 28, 2024[24]. - Current liabilities decreased to $39.97 million as of February 2, 2025, compared to $41.41 million as of January 28, 2024[24]. - Cash used in operating activities was $23.016 million for the year, compared to cash provided by operating activities of $55.471 million in the previous year[27]. - Financing activities resulted in a net cash outflow of $11.149 million, compared to an outflow of $22.756 million in the previous year[28]. - The company paid cash dividends of $9.854 million during the year, slightly up from $9.682 million in the previous year[28]. Profitability and Loss - The company reported a net loss of $12.507 million for the 53 weeks ended February 2, 2025, compared to a net income of $9.865 million for the previous year[27]. - The gross profit margin for the consolidated segment was 22.3% for the 53 weeks ended February 2, 2025, down from 25.1% in the previous year[30]. - The company reported a net loss of $2.33 million for the 14 weeks ended February 2, 2025, compared to a net income of $0.59 million for the same period last year[20]. - Basic and diluted loss per share for the 14 weeks ended February 2, 2025, was $0.22, compared to earnings per share of $0.06 for the same period last year[20]. - The company incurred a depreciation and amortization expense of $9.229 million for the 53 weeks ended February 2, 2025, compared to $8.956 million in the prior year[27]. Market Conditions and Risks - The company is focused on gaining market share and maximizing revenues through merchandising efforts and speed-to-market initiatives despite economic uncertainties[13]. - The company is facing risks related to macroeconomic uncertainties, including inflation and high interest rates, which could impact sales and operating costs[18]. - The restructuring of the Home Meridian segment is ongoing, with the goal of returning to consistent profitability[18]. - The company is planning to shift inventories to a new warehouse facility in Vietnam, which poses execution and working capital risks[18]. Inventory and Backlog - The order backlog as of February 2, 2025, was $52.636 million, a decrease from $71.824 million a year earlier, indicating a decline of approximately 26.7%[33]. - The company reported a significant increase in inventory valuation expense to $622 thousand for the 53 weeks ended February 2, 2025, compared to $1.829 million in the previous year[27].

Exhibit 99.1 INVESTOR CONTACT Jocelyn Kukulka, 469.399.8544 jocelyn.kukulka@texascapitalbank.com MEDIA CONTACT Julia Monter, 469.399.8425 julia.monter@texascapitalbank.com TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2025 RESULTS First quarter 2025 net income of $47.0 million and net income available to common stockholders of $42.7 million, or $0.92 per diluted share Strong balance sheet growth with total deposits increasing 9% and total loans growing 7% year-over-year Book Value and Tangible Book ...

Exhibit 99.1 Jocelyn Kukulka, 469.399.8544 jocelyn.kukulka@texascapitalbank.com MEDIA CONTACT Julia Monter, 469.399.8425 julia.monter@texascapitalbank.com TEXAS CAPITAL BANCSHARES, INC. ANNOUNCES FIRST QUARTER 2025 RESULTS First quarter 2025 net income of $47.0 million and net income available to common stockholders of $42.7 million, or $0.92 per diluted share Strong balance sheet growth with total deposits increasing 9% and total loans growing 7% year-over-year Book Value and Tangible Book Value per share ...

Revenue and Sales Performance - Kopin Corporation's revenue from defense customers increased significantly to 82% of total revenue in fiscal year 2024, up from 56% in 2023 and 52% in 2022[36]. - The company reported a 25% revenue increase in fiscal year 2024 compared to 2023, driven by defense product sales, and is progressing towards profitability with a reduced net loss[64]. - Revenue generation is primarily from the sale of displays, optical components, and Application Specific Optical Solutions (ASOS), alongside customer-funded development contracts for U.S. defense programs[31]. - Research and development revenues accounted for 12% of total revenues in 2024, down from 33% in 2023, suggesting a shift from R&D to low-rate initial production sales[63]. - International product sales represented approximately 6% and 13% of product revenues for 2024 and 2023, respectively, with a decrease attributed to lower sales in 3D metrology applications and OLED displays[210]. - Revenues from product sales to defense customers decreased in 2023 compared to 2022, primarily due to a decrease in shipments for thermal weapon sight applications[211]. - International sales decreased in 2023 compared to 2022 due to a decline in sales of products for 3D metrology applications and OLED displays[215]. Research and Development - The company has nearly doubled its investment in customer acquisition and business development over the past 18 months, focusing on defense, medical, and industrial segments[26]. - Funded research and development contracts with U.S. Government agencies support the continued development of core technologies, with a substantial percentage of revenue derived from these contracts[34]. - The company utilizes Small Business Innovation Research (SBIR) and Cooperative Research & Development Awards (CRADA) to enhance its technology development and market position[58]. - Funded R&D expenses for fiscal year 2024 were $3.8 million, a decrease of 47.1% from $7.2 million in 2023, while internal R&D expenses increased to $5.8 million, up 62.3% from $3.6 million in 2023[222][223]. Product Development and Technology - The company announced the development of a fifth-generation MicroDisplay called NeuralDisplay™, which features AI-enabled backplane technology[18]. - The company is developing NeuralDisplay™ architecture, which integrates AI capabilities to enhance display performance and user comfort[52]. - The recent launch of a new OLED display in November 2024 and a MicroLED manufacturing patent in September 2024 strengthen the company's position in the AR/VR market[68]. - The company has shifted its focus to offering integrated application-specific products, enhancing its competitive edge against major display manufacturers[21]. - Kopin Corporation holds over 200 patents and patent applications, providing a significant intellectual property advantage in microdisplays and optics[22]. - The company has approximately 200 patents and patent applications covering microdisplays, optics, and related technologies, providing a competitive advantage[59]. Financial Performance and Expenses - The cost of product revenues for fiscal year 2024 was $36.164 million, with a cost as a percentage of net product revenues decreasing to 83.0% compared to 96.2% in 2023[217]. - Total SG&A expenses for fiscal year 2024 were $22.8 million, an increase of 4.6% from $21.8 million in 2023, with SG&A as a percentage of total revenue decreasing to 45.4% from 54.1%[225][226]. - Non-operating expense for fiscal year 2024 was $(599,000), an improvement from $(2.4 million) in 2023, primarily due to a reduction in impairment losses on equity investments[230][231]. - The company incurred litigation damages of approximately $5.1 million in fiscal year 2024, along with a recommendation for $19.7 million in disgorgement and exemplary damages[228]. - The company reported net losses of $43.9 million for fiscal year 2024, compared to $19.7 million in 2023, with net cash outflows from operations of $14.2 million[246]. - Cash and cash equivalents, including marketable securities, increased to $36.6 million as of December 28, 2024, compared to $17.9 million as of December 30, 2023[236]. - The company raised gross proceeds of $27.0 million from the sale of 37,550,000 shares of common stock in September 2024[239]. Manufacturing and Operations - Manufacturing processes for microdisplays involve multiple locations, including design in Westborough, initial manufacturing in Taiwan, and completion in various regions[29]. - The company’s manufacturing process includes initial fabrication at Taiwan foundries, with final assembly in Westborough, Massachusetts, ensuring localized production capabilities[54]. - The company emphasizes operational flexibility in sourcing and developing display technologies to adapt to market dynamics and geopolitical factors[35]. - The company identified several semiconductor components with long lead delivery times, which may impact production and cash flow if not procured[220]. Customer and Market Focus - Major customers include Collins Aerospace and DRS Network & Imaging Systems LLC, with the latter comprising 65% of revenues in 2024, posing a concentration risk[67]. - The company is well-positioned for growth in the augmented reality (AR) and virtual reality (VR) markets, leveraging its unique technology and intellectual property[32]. Strategic Initiatives and Future Outlook - The company is committed to environmental responsibility and is in the process of creating a formalized ESG strategy[73]. - The company does not anticipate any seasonal trend to its revenues in 2025[248]. - Contractual lease obligations total $2.4 million, with $768,841 due within one year[250]. - The increase in license and royalty revenue in 2023 compared to 2022 was due to an increase in royalties earned under IP license agreements for industrial wearable headsets[214]. - Cost of product revenues decreased as a percentage of revenues in 2023 compared to 2022, primarily due to increased sales of higher margin products for defense applications[221].