Financial Performance - Net sales for Q1 2025 were $3,621 million, a decrease of 19.4% compared to $4,490 million in Q1 2024[17] - Gross margin for Q1 2025 was $607 million, down from $642 million in Q1 2024, reflecting a decline of 5.5%[17] - Operating profit improved to $184 million in Q1 2025, compared to a loss of $116 million in Q1 2024[17] - Net earnings available to Whirlpool for Q1 2025 were $71 million, a significant recovery from a loss of $259 million in Q1 2024[17] - Basic net earnings per share for Q1 2025 were $1.29, compared to a loss of $4.72 per share in Q1 2024[17] - Total net sales for the three months ended March 31, 2025, were $3.621 billion, down from $4.490 billion for the same period in 2024, representing a decrease of approximately 19.4%[50] - The company reported a comprehensive loss of $112 million for the first quarter of 2025, which included currency translation adjustments and cash flow hedges[106] - The net earnings for the first quarter of 2025 were $71 million, a significant recovery from a net loss of $259 million in the same period of 2024[108] Assets and Liabilities - Total assets increased to $16,514 million as of March 31, 2025, up from $16,301 million at the end of 2024[19] - Total current liabilities rose to $7,534 million as of March 31, 2025, compared to $7,323 million at the end of 2024[19] - Cash and cash equivalents decreased to $1,024 million at the end of Q1 2025, down from $1,275 million at the end of 2024[21] - The outstanding amount for the term loan at March 31, 2025, is $1.5 billion, with a maturity date of October 31, 2025[59] - As of March 31, 2025, the total notes payable amounted to $619 million, a significant increase from $18 million at December 31, 2024, primarily due to the issuance of commercial paper[67] - The company has committed credit facilities totaling $3.5 billion and $1.5 billion in term loans, with additional facilities in Brazil and India providing borrowings of approximately $186 million and $173 million at March 31, 2025, and December 31, 2024, respectively[65][66] Cash Flow and Operating Activities - The company reported cash used in operating activities of $721 million for Q1 2025, an improvement from $873 million in Q1 2024[21] - The company expects to generate cash from operating activities of approximately $1 billion and capital expenditures of about $450 million for the full year 2025[200] Restructuring and Costs - Total restructuring charges for the first quarter of 2025 amounted to $10 million, compared to $23 million in the same period of 2024[114] - The company incurred $21 million in total costs related to workforce reduction plans, with $14 million attributed to employee termination costs[112] - The MDA North America segment reported restructuring charges of $6 million for the first quarter of 2025, up from $4 million in the same period of 2024[114] Investments and Equity - The carrying amount of the investment in Beko Europe decreased from $74 million as of December 31, 2024, to $59 million as of March 31, 2025, while the carrying amount for Whirlpool China increased from $191 million to $193 million in the same period[41] - The company holds a 25% equity interest in Beko following the disposal of its European major domestic appliance business[102] - As of March 31, 2025, Whirlpool's total stockholders' equity decreased to $2.829 billion from $2.933 billion at the end of 2024, reflecting a comprehensive loss of $34 million[105] Market Conditions and Risks - The company is facing a global shortage of certain components, such as semiconductors, and input cost inflation due to various geopolitical factors[205] - The recent trade policy and tariff actions by the U.S. government have increased the cost of certain raw materials and components, creating significant uncertainty for the business[204] - The company has filed petitions alleging violations of trade laws by competitors, resulting in extended antidumping duties on certain large residential washers from China and Mexico[202] Legal and Compliance - The company is currently involved in various legal actions, including class action lawsuits, but management believes these will not have a material adverse effect on financial statements[81] - The company has received tax assessments related to BEFIEX credits totaling approximately 2.4 billion Brazilian reais (approximately $420 million) as of March 31, 2025, which are being disputed[71] Dividends and Share Repurchase - The company declared dividends totaling $97 million in the first quarter of 2025, compared to $94 million in the same period of 2024[105] - The share repurchase program has approximately $2.5 billion remaining as of March 31, 2025, with no shares repurchased during the first quarter of 2025[109] Future Outlook - The company anticipates delivering over $200 million in cost take out and expanding margins in 2025 despite a challenging macro environment[135] - The company expects flat industry demand in North America and a growth of 0-3% in Latin America, with Asia expected to grow by 3-5%[200]

Financial Performance - Net sales for Q1 2025 were $1.07 billion, a decrease of 4% compared to $1.12 billion in Q1 2024[19] - Gross profit decreased by 8% to $312.4 million, with a gross margin of 29.2%, down from 30.2% in the previous year[5] - Operating income fell 29% to $77.5 million, resulting in an operating margin of 7.2%, compared to 9.7% in Q1 2024[7] - Net income decreased to $53.5 million, down from $78.9 million in Q1 2024, leading to earnings per diluted share of $1.42, a 30% decline[10] - Adjusted EBITDA for the same period was $95,439, down 23.4% from $124,481 in 2024[34] - Adjusted diluted EPS decreased to $1.32 from $1.85, reflecting a decline of 28.6% year-over-year[39] Guidance and Future Outlook - The company confirmed its annual earnings guidance range of $11.10 to $11.60 per diluted share, including a tax benefit of $0.10[8] - The company aims to strengthen its market position through continued innovation and expansion of its customer-centric digital ecosystem, POOL360[13] Cash Flow and Inventory - Net cash provided by operations was $27.2 million, a significant decline from $145.4 million in Q1 2024, primarily due to deferred tax payments[12] - Net cash provided by operating activities fell significantly to $27,224, a decrease of 81.3% compared to $145,442 in the prior year[23] - Inventory balance was $1.5 billion, a reduction of $36.3 million, or 2%, from the previous year[11] Expenses and Capital Allocation - Selling and administrative expenses increased by 2% to $234.8 million, representing 21.9% of net sales, up from 20.5% in Q1 2024[6] - Payments on common stock repurchases rose to $56,316, compared to $16,304 in the same period last year, indicating a strategic shift in capital allocation[23] Sales and Operations - The company added two greenfield sales center locations during the quarter, enhancing its sales center network[3] - The company had a total of 449 sales centers as of March 31, 2025, an increase of 0.2% from 448 centers at the end of 2024[28] Cash and Financing Activities - Cash and cash equivalents at the end of the period were $71,644, an increase of 5.4% from $67,974 at the end of the previous year[23] - The company reported a net cash used in financing activities of $20,611, a significant improvement compared to $124,162 in the same quarter of 2024[23] - Proceeds from the revolving line of credit increased to $427,700, up 87.2% from $228,400 in the prior year[23] Foreign Currency Impact - The company experienced a foreign currency transaction loss of $44 for the three months ended March 31, 2025, compared to a gain of $161 in the same period of 2024[34]

Financial Performance - First quarter revenue was $4.07 billion, an increase of 11% year-over-year and 2% sequentially, with net income of $1.18 billion and EPS of $1.28 [53] - Operating profit for the first quarter was $1.32 billion, representing 32.5% of revenue, compared to 35.1% in the previous year [57] - Analog segment revenue increased by 13% to $3.21 billion, with operating profit rising 20% to $1.21 billion [61] - Embedded Processing segment revenue decreased by 1% to $647 million, with operating profit dropping 62% to $40 million due to higher costs [62] Cash Flow and Liquidity - Cash flow from operations for the trailing 12 months was $6.2 billion, with free cash flow of $1.7 billion, reflecting a strong business model [54] - Total cash and cash equivalents at the end of Q1 2025 were $5.01 billion, a decrease of $2.58 billion from the end of 2024 [63] - Free cash flow for the trailing 12 months increased by 82% to $1.72 billion, representing 10.7% of revenue [73] Capital Expenditures and Investments - Capital expenditures for the first three months of 2025 were $1.12 billion, primarily for semiconductor manufacturing equipment [66] - The company expects to benefit from a 25% investment tax credit and up to $1.6 billion in direct funding for large-scale wafer fabs under construction [67] Financing Activities - Financing activities used $2.54 billion, including $1.24 billion in dividends and $653 million for share repurchases [68]

Financial Performance - Consolidated net sales for Q1 2025 totaled $700.9 million, a slight increase of $4.2 million, or 0.6%, from Q1 2024[89] - Petroleum additives segment net sales decreased by 4.7% to $645.5 million in Q1 2025, primarily due to lower product shipments[92] - Specialty materials segment reported net sales of $53.7 million in Q1 2025, significantly higher than $17.0 million in the same period of 2024, driven by higher product volumes[96] - Operating profit for petroleum additives decreased by 5.8% to $142.1 million in Q1 2025, reflecting lower product shipments and higher operating costs[100] - Specialty materials segment achieved an operating profit of $23.2 million in Q1 2025, compared to an operating loss of $5.0 million in the same period of 2024[107] Cash Flow and Capital Management - Cash and cash equivalents increased by $40.8 million to $118.3 million as of March 31, 2025, compared to December 31, 2024[114] - Cash provided from operating activities for Q1 2025 was $120.3 million, including $26.6 million of higher working capital requirements[118] - Cash used in investing activities totaled $13.0 million in Q1 2025, with total capital spending expected to be between $70 million and $100 million for the year[122] - Cash used in financing activities was $68.5 million in Q1 2025, including $57.1 million for stock repurchases and $50.0 million principal payment on senior notes[125] - Long-term debt increased to $990.6 million at March 31, 2025, compared to $971.3 million at December 31, 2024[126] - The leverage ratio was 1.31 at March 31, 2025, well below the maximum requirement of 3.75 to 1.00[128] - Total long-term debt as a percentage of total capitalization decreased from 39.9% at December 31, 2024, to 39.5% at March 31, 2025[130] Investment and Growth Strategy - Research and development investment increased by $2.0 million in Q1 2025, representing 5.1% of net sales compared to 4.6% in Q1 2024[105] - The company continues to prioritize investments in technology and operational efficiency to enhance portfolio profitability throughout 2025[86] - A capital investment of up to $100 million is planned to expand AMPAC's ammonium perchlorate production capacity by over 50%, scheduled for completion in 2026[123] - Significant investments in the petroleum additives business focus on operational efficiencies and technology development to enhance global reach[136] - The petroleum additives segment is expected to grow at an annual rate of up to 2%, with the company aiming to exceed this growth rate[135] Tax and Shareholder Value - The effective tax rate increased to 23.3% in Q1 2025 from 21.8% in Q1 2024, primarily due to prior year tax items[112] - The company continues to evaluate cash utilization strategies, including stock repurchases and dividends, to enhance shareholder value[139]

Financial Performance - Total revenue for the first quarter of 2025 was $5,132 million, a decrease of 1.5% from $5,211 million in the first quarter of 2024[90]. - The operating income for the first quarter of 2025 was $525 million, an increase from $378 million in the first quarter of 2024[90]. - Net EAC adjustments for the first quarter of 2025 resulted in a loss of $21 million before income taxes, compared to a gain of $19 million in the same period of 2024[79]. - The company completed the sale of its CAS disposal group for cash proceeds of $831 million, with a pre-tax loss of $17 million recognized in the first quarter of 2025[83][85]. - Capital expenditures for the first quarter of 2025 totaled $59 million, significantly lower than $115 million in the first quarter of 2024[100]. - The company reported a total of $301 million in depreciation and amortization for the first quarter of 2025, down from $320 million in the same period of 2024[100]. - The CS segment generated revenue of $1,352 million in the first quarter of 2025, up from $1,294 million in the first quarter of 2024[90]. - The IMS segment reported revenue of $1,592 million in the first quarter of 2025, a decrease from $1,627 million in the first quarter of 2024[90]. Environmental Liabilities - As of March 28, 2025, the estimated environmental liability under applicable statutes and regulations for identified sites was $637 million[105]. - The recoverable portion of environmental costs from the U.S. Government was recorded as $463 million as of March 28, 2025[106]. - The current and non-current portions of the estimated environmental liability are included in "Other current liabilities" and "Other long-term liabilities" on the balance sheet[105]. - The current and non-current portions of the recoverable costs are included in "Other current assets" and "Other non-current assets" on the balance sheet[106]. - The company is identified as a potentially responsible party under various environmental laws, with uncertainties regarding liability and cost sharing[104]. - The company is subject to numerous environmental laws and regulations, with some liabilities considered de minimis[104]. Legal Matters - The company is involved in various legal proceedings, but as of March 28, 2025, the accrual for potential unfavorable resolutions was not material[103]. - The company has recorded accruals for losses related to legal matters that are considered probable and can be reasonably estimated[103]. - The company’s management believes that any probable settlements or judgments will not have a material adverse effect on its financial condition[103]. Strategic Initiatives - The company is undergoing the LHX NeXt initiative, expected to continue through 2026, aimed at transforming multiple functions and increasing competitiveness[94]. Market Risk - There were no material changes in market risk exposure during the first quarter of 2025 compared to the previous fiscal year[176]. Backlog - As of March 28, 2025, the company's ending backlog was $33.2 billion, with an expectation to recognize approximately 50% of this revenue over the next twelve months[82].

Financial Performance - Revenue before billable expenses for Q1 2025 was $1,996.3 million, a decrease of 8.5% compared to $2,182.9 million in Q1 2024[153]. - Total revenue for Q1 2025 was $2,322.6 million, down 6.9% from $2,495.9 million in Q1 2024[153]. - Adjusted EBITA for Q1 2025 was $(21.6) million, a decline of 110.5% from $204.9 million in Q1 2024[153]. - Net loss available to IPG common stockholders for Q1 2025 was $(85.4) million, compared to a net income of $110.4 million in Q1 2024[153]. - Organic change in revenue before billable expenses was down 3.6% in Q1 2025, compared to an increase of 1.3% in Q1 2024[153]. - Total revenue decreased by 6.9% in Q1 2025, with organic revenue before billable expenses down 3.6% compared to a 1.3% increase in Q1 2024[155]. - Adjusted EBITA margin on revenue before billable expenses fell to (1.1)% from 9.4% in the prior-year period, impacted by increased operating expenses[155]. - Net losses on sales of businesses amounted to $36.4 million in Q1 2025, primarily related to the sale of unprofitable digital agencies[176]. - For the three months ended March 31, 2025, the basic and diluted loss per share for IPG common stockholders was $0.23, a decrease from basic earnings per share of $0.29 for the same period in 2024[179]. - Revenue before billable expenses for the Media, Data & Engagement Solutions segment decreased to $888.8 million in Q1 2025, down 7.5% organically compared to $961.3 million in Q1 2024[183]. - The Integrated Advertising & Creativity Led Solutions segment reported a revenue decrease to $780.6 million in Q1 2025, reflecting a 10.3% organic decline from $881.4 million in Q1 2024[186]. - The Specialized Communications & Experiential Solutions segment's revenue before billable expenses fell to $326.9 million in Q1 2025, a 3.9% organic decrease from $340.2 million in Q1 2024[190]. - Segment EBITA for the Media, Data & Engagement Solutions segment was $75.6 million in Q1 2025, down 18.9% from $93.2 million in Q1 2024, with a margin decrease to 8.5%[184]. - The Integrated Advertising & Creativity Led Solutions segment experienced a significant EBITA loss of $1.5 million in Q1 2025, compared to a profit of $107.9 million in Q1 2024, marking a 101.4% decline[188]. - Corporate and Other expenses increased by $74.1 million to $114.2 million in Q1 2025, primarily due to higher selling, general and administrative expenses and restructuring charges[195]. - The company reported a net loss of $(85.3) million for Q1 2025, compared to a net income of $113.6 million in Q1 2024[197]. Restructuring and Charges - Restructuring charges for Q1 2025 totaled $203.3 million, affecting Adjusted EBITA margin by (10.2)%[156]. - The company expects total restructuring charges related to 2025 actions to be approximately $300 - $350 million, with completion anticipated by the end of 2025[168]. - The planned workforce reduction will affect approximately 1,500 employees across various departments[169]. - Restructuring charges amounted to $203.3 million in Q1 2025, compared to $0.6 million in Q1 2024, highlighting a significant increase in restructuring costs[230]. - The company incurred $4.8 million in deal costs related to the planned acquisition by Omnicom during Q1 2025[231]. Cash Flow and Financing - Net cash used in operating activities was $(37.0) million for Q1 2025, an improvement from $(157.4) million in Q1 2024[197]. - Net cash used in operating activities in Q1 2025 was $37.0 million, a decrease of $120.4 million from $157.4 million in Q1 2024, primarily due to a decrease in working capital usage of $254.2 million[202]. - Net cash used in investing activities in Q1 2025 was $58.2 million, an increase of $8.2 million compared to Q1 2024, driven by cash used for acquisitions of $48.4 million and a decrease in capital expenditures from $35.1 million to $21.5 million[203]. - Net cash used in financing activities in Q1 2025 was $248.0 million, up from $227.1 million in Q1 2024, mainly due to common stock dividends of $125.3 million and stock repurchases of $90.0 million[204]. - The effect of foreign exchange rate changes resulted in a net increase of $23.4 million in cash during Q1 2025, attributed to a weaker U.S. Dollar against several foreign currencies[205]. - The company expects cash flow from operations and existing cash to meet anticipated operating requirements for at least the next twelve months, supported by a commercial paper program and a committed corporate credit facility[206]. - As of March 31, 2025, the company had outstanding short-term borrowings of $34.0 million from uncommitted lines of credit, with an average outstanding amount of $44.1 million at a weighted-average interest rate of approximately 7.2%[217]. - The company paid a quarterly cash dividend of $0.330 per share in Q1 2025, totaling $125.3 million, with an expected annual payout of approximately $489.0 million assuming no significant change in outstanding shares[213]. - The company maintains a committed corporate credit facility with a total lending limit of $1,500.0 million, with no borrowings under the facility as of March 31, 2025[214]. - As of April 17, 2025, the company's debt credit ratings were Baa2+ from Moody's, BBB+ from S&P, and BBB+ from Fitch, with a positive outlook from Moody's and S&P[221]. - Approximately 99% of the company's debt obligations bore fixed interest rates as of March 31, 2025, indicating a stable interest rate exposure[233]. - There has been no significant change in the company's exposure to market risk during the first quarter of 2025[233]. Merger and Strategic Initiatives - The company entered into a merger agreement with Omnicom Group Inc. on December 8, 2024, with IPG becoming a wholly owned subsidiary of Omnicom[138]. - Following the merger, Omnicom shareholders will own 60.6% of the combined company, while IPG shareholders will own 39.4% on a fully diluted basis[140]. - The merger is subject to customary closing conditions, including regulatory approvals, and has faced scrutiny from the U.S. Federal Trade Commission[142][144]. - The company continues to invest in strategic areas such as digital commerce, artificial intelligence, and audience resolution to adapt to a rapidly evolving market[134]. - The global macroeconomic environment remains complex, with risks including economic slowdowns and inflation impacting client spending[145][146].

Financial Position - As of March 31, 2025, Equillium, Inc. reported estimated cash, cash equivalents, and short-term investments of approximately $14.5 million[6]. Financial Reporting - The actual financial statements for the quarter ended March 31, 2025, are not yet available and will be subject to final adjustments[7]. - The preliminary financial data should not be viewed as a substitute for financial statements prepared in accordance with generally accepted accounting principles[7]. - The company has not audited or reviewed the preliminary financial data, which reflects information available only at this time[9]. - Risks related to preliminary financial results include potential discrepancies upon completion of financial closing procedures[9]. Forward-Looking Statements - Forward-looking statements in the report are based on current management expectations and reasonable assumptions, but actual results may differ materially[9]. - The company undertakes no obligation to update any forward-looking statements to reflect new information or events[9]. Regulatory Information - The company is registered with the SEC under the Securities Exchange Act of 1934[1]. - Equillium, Inc. is listed on the Nasdaq Capital Market under the symbol EQ[4]. Press Release - The report includes a press release dated April 24, 2025, which is incorporated by reference[9].

Financial Performance - Net income for the second quarter of fiscal 2025 was $2.7 million, or $0.29 per diluted share, down from $4.6 million, or $0.48 per diluted share in the same period of 2024[3] - Net income for the three months ended March 31, 2025, was $2,735,000, a decrease of 40.19% from $4,562,000 in the same period of 2024[31] - Basic earnings per share for the three months ended March 31, 2025, was $0.29, down from $0.48 in 2024, representing a decline of 39.58%[31] Interest Income and Expense - Total interest income for the second quarter of fiscal 2025 was $25.6 million, slightly down from $25.7 million year-over-year, while the yield on average interest-earning assets increased to 5.01% from 4.95%[6] - Total interest income for the three months ended March 31, 2025, was $25,632,000, a slight decrease of 0.07% compared to $25,650,000 in the same period of 2024[31] - Interest expense increased to $11.4 million for the second quarter of 2025, compared to $10.8 million in the same period of 2024, with the cost of interest-bearing liabilities rising to 2.80% from 2.58%[8] - Net interest income before release of credit losses was $14.2 million in the second quarter of 2025, down from $14.9 million in the second quarter of 2024[10] - Net interest income after the release of credit losses for the six months ended March 31, 2025, was $29,003,000, down 5.25% from $30,611,000 in 2024[31] - The net interest rate spread decreased to 2.21% for the three months ended March 31, 2025, compared to 2.37% in 2024[32] - The net interest margin for the three months ended March 31, 2025, was 2.78%, down from 2.87% in 2024[32] Assets and Loans - Total assets were $2.168 billion at March 31, 2025, a decrease from $2.188 billion at September 30, 2024[18] - Total assets as of March 31, 2025, were $2,183,673,000, a slight decrease of 0.04% from $2,191,544,000 in 2024[32] - Total net loans increased to $1.76 billion at March 31, 2025, up from $1.74 billion at September 30, 2024, with residential real estate loans rising to $734.8 million[19] Nonperforming Assets and Deposits - Nonperforming assets were $11.7 million, or 0.54% of total assets, at March 31, 2025, compared to $12.2 million, or 0.56% at September 30, 2024[20] - Total deposits increased to $1.69 billion at March 31, 2025, compared to $1.63 billion at September 30, 2024, with core deposits at $1.04 billion[21] Capital and Regulatory Compliance - The Tier 1 capital ratio was 10.3% at March 31, 2025, exceeding regulatory standards for a well-capitalized institution[23] Mergers and Acquisitions - The Company announced a merger agreement with CNB Financial Corporation, which received formal approval from shareholders on April 15, 2025[5] Noninterest Income and Expense - Total noninterest income increased to $2,017,000 for the three months ended March 31, 2025, compared to $2,004,000 in 2024, reflecting a growth of 0.65%[31] - Total noninterest expense rose to $12,807,000 for the three months ended March 31, 2025, up 9.29% from $11,714,000 in 2024[31] Shares Outstanding - Average shares outstanding - diluted for the three months ended March 31, 2025, was 9,560,278, an increase from 9,513,798 in 2024[32]

Financial Performance - First quarter total revenues reached $3.7 billion, an increase of 8% year-over-year; total gross profit was $566.4 million, up 6% year-over-year[2] - Reported net income for the first quarter was $70.6 million, a 68% increase year-over-year, translating to $2.04 earnings per diluted share, up 70% year-over-year[2] - Total revenues for the three months ended March 31, 2025, increased by 8% to $3,651.3 million compared to $3,384.0 million in 2024[18] - Net income for the same period rose by 68% to $70.6 million, up from $42.0 million in 2024[18] - Operating income improved by 36% to $145.0 million, compared to $106.7 million in the prior year[18] - Reported net income for Q1 2025 was $70.6 million, compared to $42.0 million in Q1 2024, representing a 68.1% increase[33] - Adjusted net income for Q1 2025 was $51.3 million, up from $47.5 million in Q1 2024, reflecting a 6.4% increase[33] Segment Performance - EchoPark Segment revenues were $559.7 million, flat year-over-year, with an all-time record quarterly gross profit of $63.9 million, up 21% year-over-year[2] - EchoPark Segment reported income was $10.3 million, compared to a segment loss of $2.9 million in the prior year, marking a 455% improvement year-over-year[2] - Adjusted EBITDA for the EchoPark Segment reached an all-time record of $15.8 million, up 116% year-over-year from $7.3 million[2] - The Franchised Dealerships Segment reported total revenues of $3,057.2 million, a 9% increase from $2,796.9 million in 2024[19] - The EchoPark Segment achieved total revenues of $559.7 million, slightly up from $559.4 million in 2024[22] - Powersports Segment achieved first quarter record revenues of $34.4 million, a 24% increase year-over-year, although it reported a segment loss of $3.5 million, a 52% increase from the prior year[11] Cash and Liquidity - As of March 31, 2025, the company had approximately $430 million in cash and floor plan deposits, with total liquidity of approximately $947 million[3] - The Board of Directors approved a quarterly cash dividend of $0.35 per share, payable on July 15, 2025[5] - The company declared dividends of $0.35 per common share, representing a 17% increase from $0.30 in the previous year[18] Sales and Profitability - Retail new vehicle revenues grew by 14% to $1,656.3 million, while total new vehicle revenues also increased by 14% to $1,678.4 million[18] - The unit sales volume for retail new vehicles in the Franchised Dealerships Segment increased by 11% to 28,082 units[19] - Gross profit per unit for retail new vehicles decreased by 17% to $3,089 compared to $3,722 in 2024[21] - EchoPark segment used vehicle unit sales rose by 7% to 18,798 units in Q1 2025 compared to 17,618 units in Q1 2024[23] - Powersports segment retail new vehicle unit sales increased by 18% to 993 units in Q1 2025 from 845 units in Q1 2024[24] Expenses and Adjustments - Total adjusted SG&A expenses decreased by 6% to $408.4 million in Q1 2025 from $385.8 million in Q1 2024[26] - Total SG&A expenses for the Franchised Dealerships Segment decreased by 4% to $325.9 million in Q1 2025 from $338.5 million in Q1 2024[27] - Total SG&A expenses for the EchoPark Segment increased by 2% to $44.8 million in Q1 2024 from $45.6 million in Q1 2023[28] - Total SG&A expenses for the Powersports Segment increased by 19% to $9.6 million in Q1 2025 from $8.1 million in Q1 2024[29] - Total pre-tax adjustments for Q1 2025 amounted to $(26.7) million, compared to $7.4 million in Q1 2024[33] - The company incurred a cyber insurance payment adjustment of $(30.0) million in Q1 2025[33] - The tax effect of adjustments in Q1 2025 was $7.4 million, compared to $(1.9) million in Q1 2024[33]

Financial Risks and Funding - The Company has a history of operating losses and has not generated any revenue to date, indicating a significant financial risk [24]. - The Company requires substantial additional funding to continue operations and complete the construction of the Refinery, with no assurance that such financing will be available [26]. - The Company has a minimum reportable cash balance requirement of US$2,000,000 starting in 2026, which adds pressure to its financial position [30]. - The Company may face dilution of shareholder value if additional capital is raised through equity or debt securities [35]. - The Company may not be able to meet its debt service obligations if cash flow from refinery operations is insufficient [33]. - Global instability and macroeconomic trends, including inflation and rising interest rates, could negatively impact the Company’s financial condition and operational results [61]. - The market price of the Company's common shares is volatile, influenced by macroeconomic developments and market perceptions, which may not reflect the Company's long-term value [91]. - The Company may face substantial decommissioning and reclamation costs due to increasing regulatory requirements for financial assurances [82]. - An additional $55.7 million to $62 million is required to complete construction of the Refinery, with management seeking a largely non-dilutive funding solution [161]. Operational and Market Risks - The success of the Refinery is uncertain and depends on the demand for cobalt, which is largely driven by the electric vehicle market [42]. - The Company’s operational risks include potential liabilities from environmental contamination and other unforeseen events, which may not be fully insured [43]. - The prices of commodities, including cobalt, are volatile and could adversely affect the Company's financial condition and operations [36]. - The Company’s operations are significantly affected by the availability and costs of consumables such as concrete, steel, copper, and diesel fuel, which are subject to volatility and may impact profitability [49]. - The mining industry is subject to cyclical volatility, and current high demand for cobalt may not be sustainable in the long term [73]. - Compliance with extensive mining regulations increases operational costs and may impact the Company’s exploration and development decisions [75]. - The Company operates in a highly competitive market, particularly in sourcing mine production for the Refinery, with competition from larger companies that have greater financial resources [80]. Environmental and Community Challenges - The Company faces reputational risks due to increasing public concern regarding the environmental impact of mining activities, which could adversely affect investor confidence and community relations [55]. - The Company’s ability to develop its mining properties may be challenged by community stakeholders, including First Nations, which could delay or hinder operations [52]. - Environmental regulations are becoming stricter, which may lead to increased capital expenditures and operating costs for the Company [84]. Technological and Developmental Aspects - The Company is focused on building a diversified portfolio of assets in the electric vehicle supply chain, primarily in North America [103]. - The exploration and development of mineral resources is speculative, with no guarantee of discovering commercial quantities of minerals [72]. - The Company launched its black mass recycling demonstration plant, aiming to process up to 75 tonnes of material and recover high-value elements [130]. - The Company successfully completed the first plant-scale recycling of black mass material in North America, recovering critical metals including nickel, cobalt, and manganese [134]. - The Company is working towards a battery recycling refinery capable of processing 2,500 tonnes of black mass material per annum, with a feasibility study currently underway [211]. Strategic Partnerships and Agreements - The Company signed a Cobalt Supply Agreement with LG Energy Solution to supply 19,000 tonnes of battery grade cobalt over a five-year period starting in 2025 [125]. - The Company announced a joint venture with Three Fires Group Inc. to focus on the primary recycling of lithium-ion battery waste in Ontario, leveraging its proprietary black mass refining capabilities [148]. - A binding letter of intent was signed with Eurasian Resources Group for a three-year supply agreement to deliver 3,000 tonnes per annum of IRA-compliant cobalt to Electra's refinery starting in 2026 [174]. - The Company signed a memorandum of understanding with Rock Tech Lithium to supply recycled lithium for upgrading to battery-grade lithium chemicals, with processing expected to commence in 2026 [163]. Regulatory and Compliance Matters - The Company faces significant challenges in obtaining necessary governmental permits, which are complex and time-consuming, potentially delaying projects like the Iron Creek Project and the Refinery [76]. - The Company received its Industrial Sewage Works Environmental Compliance Approval from the Ontario Ministry of the Environment, Conservation and Parks [108]. - The Company has secured necessary permits for the Refinery operations, including Air and Noise permits and Industrial Sewage Works approvals [204]. Financial Commitments and Investments - The Company announced a financial commitment of $250,000 from the Government of Ontario to support a battery materials park study [110]. - The Company received a $5 million investment commitment from the Government of Canada for the construction of North America's first cobalt sulfate refinery, expected to produce approximately 5% of the global supply of battery-grade cobalt [170]. - The Company was awarded US$20 million by the U.S. Department of Defense to expand domestic production capability for battery-grade materials [178]. - The Company closed a private placement offering, issuing $51 million principal amount of 8.99% senior secured convertible notes due February 2028, with net proceeds of approximately $13.7 million for capital expenditures [138]. Production and Capacity Developments - The total capital costs for the Refinery are now estimated to be between $155 million and $167 million, with approximately $85.6 million capitalized as of December 31, 2023 [137]. - The Company aims to produce 5,000 tonnes per annum of battery-grade cobalt contained in cobalt sulfate from its Refinery, with plans to increase production to 6,500 tonnes per annum in Phase 2 [199]. - The Company has achieved a 30% increase in cobalt crystallizer capacity, raising the installed capacity to 6,500 tonnes of annual contained cobalt production [200]. - The Company has successfully processed 40 tonnes of black mass material, achieving improved recovery rates for targeted metals, including a nearly 20% enhancement in lithium carbonate product quality [214]. - The Company achieved greater than 99% purity in lithium carbonate product from its black mass recycling project, enhancing its ability to produce high-quality battery-grade products [182]. Management and Corporate Structure - The Company appointed Michael Green as Construction Director to oversee the completion of the cobalt sulfate refinery in Temiskaming Shores [183]. - The Company completed a consolidation of its share capital on the basis of one post-Consolidation Common Share for every eighteen pre-Consolidation Common Shares [112]. - The Company announced a reverse share split of four pre-split shares for every one post-split share effective December 31, 2024 [187]. - The Company is classified as a passive foreign investment company (PFIC), which may subject U.S. holders to adverse federal income tax consequences [98]. - The Company is a foreign private issuer, resulting in different U.S. securities laws and potentially limiting the information available to U.S. shareholders [99].