Financial Performance - NL Industries reported a net loss attributable to stockholders of $7.8 million, or $0.16 per share, in Q3 2025, compared to a net income of $36.0 million, or $0.74 per share, in Q3 2024[2]. - For the first nine months of 2025, NL Industries reported a net loss of $6.8 million, or $0.14 per share, compared to a net income of $50.7 million, or $1.04 per share, for the same period in 2024[2]. - Kronos' net sales decreased by $27.8 million, or 6%, to $456.9 million in Q3 2025 compared to Q3 2024, and by $22.9 million, or 2%, to $1.4 billion for the first nine months of 2025 compared to the same period in 2024[5]. - Kronos' loss from operations in Q3 2025 was $19.2 million, down from an income of $38.9 million in Q3 2024, and for the first nine months of 2025, income from operations was $26.6 million compared to $94.3 million in the same period of 2024[6]. - Net sales for the three months ended September 30, 2024, were $33.6 million, a decrease of 16% compared to $40.0 million in 2025[19]. - Total net sales decreased by 6% for the three months ended September 30, 2025, compared to the same period in 2024[23]. - Income from operations for the nine months ended September 30, 2024, was $4.2 million, compared to $7.8 million in 2025[21]. - Income (loss) before income taxes for the three months ended September 30, 2024, was $44.8 million, compared to a loss of $8.2 million in 2025[19]. Operational Challenges - Kronos experienced a decline in average TiO2 selling prices, which were 7% lower in Q3 2025 compared to Q3 2024 and 2% lower in the first nine months of 2025 compared to the same period in 2024[5]. - Unabsorbed fixed production costs for Kronos in Q3 2025 were approximately $27 million, contributing to the decrease in income from operations[8]. - Corporate expenses increased by $0.7 million in Q3 2025 compared to Q3 2024, primarily due to higher litigation fees[9]. - Kronos' average capacity utilization was 85% in the first nine months of 2025, down from 93% in the same period of 2024[8]. - The percentage change in net sales for TiO2 sales volume was down 3% for the three months ended September 30, 2025, compared to 2024[23]. Equity and Investments - NL recognized equity in losses of Kronos amounting to $11.3 million in Q3 2025, compared to equity in earnings of $21.9 million in Q3 2024[4]. - Interest and dividend income for the three months ended September 30, 2024, was $2.7 million, compared to $2.1 million in 2025[19]. - The weighted average shares used in the calculation of net income per share were 48.8 million for both the three and nine months ended September 30, 2024, and 2025[19]. Risks and Uncertainties - The company faces substantial risks and uncertainties that could impact future results, including supply and demand fluctuations, geopolitical tensions, and changes in raw material costs[12].

Exhibit 99.1 Morgan Stanley Direct Lending Fund Announces September 30, 2025 Financial Results and Declares Fourth Quarter 2025 Regular Dividend of $0.50 per Share NEW YORK, NY, November 6, 2025 — Morgan Stanley Direct Lending Fund (NYSE: MSDL) ("MSDL" or the "Company"), a business development company externally managed by MS Capital Partners Adviser Inc. (the "Adviser"), today announced its financial results for the third quarter ended September 30, 2025. QUARTERLY HIGHLIGHTS SELECTED FINANCIAL HIGHLIGHTS ...

Financial Performance - Coherus reported Q3 2025 net revenue of $11.6 million, a 90% increase compared to $6.1 million in Q3 2024[8] - LOQTORZI® net revenue was $11.2 million in Q3 2025, representing a 12% increase from $10.0 million in Q2 2025 and a 92% increase from $5.8 million in Q3 2024[3] - Coherus reported net revenue of $11,571,000 for the three months ended September 30, 2025, a 91.5% increase from $6,052,000 in the same period of 2024[28] - The total costs and expenses for the three months ended September 30, 2025, were $55,904,000, compared to $52,908,000 for the same period in 2024, reflecting a 5.7% increase[28] - The company reported a net income from discontinued operations of $8,986,000 for the three months ended September 30, 2025, down from $36,848,000 in the same period of 2024[28] Loss and Expenses - The net loss from continuing operations for Q3 2025 was $44.5 million, or $(0.38) per share, an improvement from a net loss of $47.6 million, or $(0.41) per share, in Q3 2024[14] - Coherus experienced a net loss from continuing operations of $44,517,000 for the three months ended September 30, 2025, compared to a loss of $47,599,000 in the same period of 2024[28] - The company reported a non-GAAP net loss from continuing operations of $38,897,000 for the three months ended September 30, 2025, compared to $40,019,000 in the same period of 2024[37] - Research and development expenses for Q3 2025 were $27.3 million, compared to $22.1 million in Q3 2024, driven by increased costs for the development of casdozokitug and CHS-114[11] - Selling, general and administrative expenses decreased to $24.9 million in Q3 2025 from $28.1 million in Q3 2024, primarily due to lower headcount and decreased operating costs[12] Cash and Assets - Cash, cash equivalents, and marketable securities totaled $191.7 million as of September 30, 2025, up from $126.0 million as of December 31, 2024[16] - Cash and cash equivalents at the end of the period were $103,352,000, a decrease from $125,987,000 at the end of December 31, 2024[30] - Coherus' total assets increased to $516,519,000 as of September 30, 2025, compared to $448,533,000 as of December 31, 2024[30] - Coherus' cash used in operating activities was $46,339,000 for the three months ended September 30, 2025, compared to $62,016,000 in the same period of 2024[32] - The company had total stockholders' equity of $87,774,000 as of September 30, 2025, compared to a deficit of $(131,990,000) as of December 31, 2024[30] Clinical Development and Strategy - Coherus expanded the CHS-114 clinical program to include colorectal cancer, addressing a significant unmet medical need[2] - The company plans to combine LOQTORZI with internal pipeline candidates for additional solid tumor indications and pursue external partnerships for label expansions[9] - Initial data readouts for ongoing studies of CHS-114 and casdozokitug are expected throughout 2026, with multiple data readouts anticipated across various tumor types[2] - Coherus aims to deepen adoption of LOQTORZI among general oncologists by driving education on clinical data and updated NCCN guidelines[3]

Financial Performance - Total net revenues for the three months ended September 30, 2025, were $22,459,000, a 117.5% increase from $10,324,000 in the same period of 2024[12] - Product sales and royalties, net, reached $22,459,000 for the three months ended September 30, 2025, compared to $9,824,000 for the same period in 2024, reflecting a 128.5% increase[12] - Gross profit for the nine months ended September 30, 2025, was $29,640,000, up from $16,935,000 in the same period of 2024, representing a 75.0% increase[12] - For the nine months ended September 30, 2025, total revenues reached $58,669 with a gross profit of $29,640, compared to $27,364 and a gross profit of $16,935 in the same period of 2024, driven by increased sales of INCRELEX® and additional revenues from ALKINDI SPRINKLE® and GALZIN®[149] - Licensing revenue for the nine months ended September 30, 2025 was $3,286, a substantial increase from $500 in the same period of 2024, primarily due to $1,786 from out-licensing INCRELEX® rights outside the U.S.[150] - In the three months ended September 30, 2025, the Company reported total revenues of $22,459, generating a gross profit of $7,855, compared to total revenues of $10,324 and a gross profit of $6,302 in the same period of 2024, reflecting a significant increase in product sales and royalties[148] Cash and Assets - Cash and cash equivalents increased to $37,121,000 as of September 30, 2025, from $14,936,000 at the end of 2024, marking a 148.1% increase[10] - Total assets grew to $104,510,000 as of September 30, 2025, compared to $76,123,000 at the end of 2024, indicating a 37.3% increase[10] - As of September 30, 2025, the Company had total assets of $104.5 million, cash and cash equivalents of $37.1 million, and working capital of $27.8 million, indicating a solid liquidity position[153] Liabilities and Debt - Total liabilities increased to $81,384,000 as of September 30, 2025, from $51,695,000 at the end of 2024, representing a 57.4% increase[10] - The company’s existing debt obligations contain covenants that limit its ability to pay dividends or make distributions to stockholders[24] - The amended SWK Credit Agreement expanded the credit facility to $30,000, with a maturity date of December 17, 2027, and an annual interest rate of SOFR plus 6.75%[90] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $5,985,000, an increase from $4,126,000 in the same period of 2024, reflecting a 45.0% rise[12] - Research and Development expenses for the three months ended September 30, 2025 were $1,112, up from $505 in the same period of 2024, and for the nine months ended September 30, 2025, R&D expenses totaled $5,985 compared to $4,126 in 2024, largely due to a $2,155 NDA filing fee for ET-600[151] Stock and Compensation - Total stock-based compensation expense for the nine months ended September 30, 2025, was $4,388, up from $2,383 in the same period of 2024, indicating a 83.9% increase[102] - The Company recorded stock-based compensation related to RSUs of $611 for the nine months ended September 30, 2025, compared to $171 for the same period in 2024, reflecting a 257.3% increase[109] - The Company issued 108,451 shares of common stock from stock option exercises at a weighted average exercise price of $3.63 per share during the nine months ended September 30, 2025, with an intrinsic value of $1,167[108] Net Loss and Earnings - The company reported a net loss of $1,927,000 for the three months ended September 30, 2025, compared to a net income of $627,000 in the same period of 2024[12] - GAAP net loss for the three months ended September 30, 2025, was $(1,927) thousand, compared to a net income of $627 thousand for the same period in 2024[157] - Non-GAAP net income for the nine months ended September 30, 2025, was $5,418 thousand, compared to $197 thousand for the same period in 2024[157] Tax and Regulatory - The effective tax rate for the three months ended September 30, 2025, was 1.4%, compared to an effective tax rate of (25.1%) for the same period in 2024[117] - The Company has a full valuation allowance recorded on its net deferred tax assets, impacting its effective tax rate[119] Operational Highlights - The company has eight commercial rare disease products and five additional product candidates in late-stage development, indicating ongoing expansion in its product pipeline[23] - The Company entered into a licensing agreement with AMMTeK to acquire U.S. rights to Amglidia, with potential payments totaling up to $1,850, including a 14% royalty on net sales[138] - The Company acquired GALZIN® for $7,000 and INCRELEX® for $22,500, with additional payments for product inventory and royalties of 10% and $2,500 on anniversaries, respectively[139][140] Internal Controls and Compliance - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2025, despite a delinquent filing incident[183] - There have been no changes in internal controls over financial reporting that materially affected the company during the quarter ended September 30, 2025[184] - The company maintains disclosure controls designed to ensure timely decision-making and compliance with SEC rules[180]

Revenue Performance - Revenue for Q3 2025 was $4.1 million, a 2% increase from $4.0 million in Q3 2024, driven by higher product sales and service revenue[4] - Product revenue for Q3 2025 was $2.8 million, while service revenue was $1.2 million, including $300 thousand from related party revenue[4] - Seer expects full year 2025 revenue to be in the range of $17 million to $18 million, representing a growth of 24% at the midpoint compared to full year 2024[7] Profitability and Expenses - Gross profit was $2.1 million with a gross margin of 51% for Q3 2025[5] - Operating expenses decreased by 18% to $21.5 million in Q3 2025 from $26.3 million in Q3 2024, primarily due to reduced stock-based compensation and business expenses[5] - Net loss for Q3 2025 was $18.2 million, an improvement from a net loss of $21.3 million in Q3 2024[6] Cash and Assets - Cash, cash equivalents, and investments totaled approximately $251.2 million as of September 30, 2025[6] - Total assets as of September 30, 2025, were $308.6 million, down from $366.6 million as of December 31, 2024[16] Market Demand and Validation - The company shipped nearly three times as many instruments in the first nine months of 2025 compared to all of 2024, indicating strong demand for the Proteograph ONE workflow[3] - Seer achieved a record number of third-party publications, with more than 60 total to date, validating the performance of the Proteograph technology[3]

Clinical Trials and Product Development - TX45 achieved a 19.0% reduction in pulmonary capillary wedge pressure (PCWP) and an 18.5% improvement in cardiac output in subjects with Group 2 Pulmonary Hypertension (PH) in Heart Failure with Preserved Ejection Fraction (HFpEF) during the Phase 1b clinical trial[89]. - In the Phase 1b clinical trial for TX45 in subjects with Heart Failure with Reduced Ejection Fraction (HFrEF), a 29.2% reduction in PCWP and a 17.3% improvement in cardiac output were observed[90]. - The ongoing APEX Phase 2 clinical trial aims to evaluate the safety and efficacy of TX45, with topline results expected in 2026[92]. - TX2100 is being developed for Hereditary Hemorrhagic Telangiectasia (HHT), with a Phase 1 clinical trial expected to start in Q1 2026[94]. Financial Performance - The company has not generated any revenue since inception and does not expect to do so in the foreseeable future[97]. - Total operating expenses for the three months ended September 30, 2025, increased by $2.25 million (11%) to $21.89 million compared to $19.64 million in 2024[111]. - Research and development expenses for the three months ended September 30, 2025, rose by $2.61 million (18%) to $16.93 million, driven by increased costs for TX2100 and employee-related expenses[112]. - Total operating expenses for the nine months ended September 30, 2025, increased by $18.50 million (42%) to $62.52 million compared to $44.02 million in 2024[116]. - Research and development expenses for the nine months ended September 30, 2025, increased by $14.94 million (46%) to $47.15 million, mainly due to increased CRO and CDMO costs for clinical trials[117]. - The net loss for the nine months ended September 30, 2025, was $54.9 million, up from a net loss of $45.6 million in 2024, indicating a deterioration of 20%[124][125]. Cash and Financing - In February 2025, the company raised approximately $173.1 million through a private placement of 3,689,465 shares of common stock[95]. - The net proceeds from the Private Placement in February 2025 were approximately $173.1 million[122]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $173.5 million, slightly higher than $172.8 million in 2024, showing a marginal increase of 0.4%[127][128]. - Existing cash and cash equivalents of $268.4 million as of September 30, 2025, are expected to fund operating expenses and capital expenditures for at least the next twelve months[139]. Operating Expenses and Commitments - General and administrative expenses are expected to increase due to costs associated with operating as a public company[106]. - General and administrative expenses for the nine months ended September 30, 2025, rose by $3.56 million (30%) to $15.37 million, with employee-related expenses increasing by $2.50 million (42%)[118]. - The company has lease obligations totaling $0.9 million in 2025, increasing to $2.0 million in 2028, with commitments extending through 2029[137]. - The company has no ongoing material financing commitments expected to affect liquidity over the next five years, aside from lease obligations[135]. Market Risks and Future Outlook - Interest rate sensitivity is a primary market risk, with cash and cash equivalents primarily in interest-bearing money market funds, but a 10% change in market interest rates would not materially affect the investment portfolio[139]. - The company anticipates ongoing costs associated with operating as a public company and may need to rely on additional financing to achieve business objectives[134]. - The company expects to incur significant commercialization expenses if marketing approval is obtained for lead product candidates TX45 and TX2100, necessitating substantial additional funding[129].

Clinical Trials and Product Development - TX45 achieved a 19.0% reduction in pulmonary capillary wedge pressure (PCWP) and an 18.5% improvement in cardiac output in subjects with Group 2 Pulmonary Hypertension (PH) in Heart Failure with Preserved Ejection Fraction (HFpEF) during the Phase 1b clinical trial[89]. - In the Phase 1b clinical trial for subjects with Heart Failure with Reduced Ejection Fraction (PH-HFrEF), TX45 demonstrated a 29.2% reduction in PCWP and a 17.3% improvement in cardiac output[90]. - The ongoing APEX Phase 2 clinical trial aims to evaluate the safety and efficacy of TX45, with topline results expected in 2026[92]. - TX2100 is being developed for Hereditary Hemorrhagic Telangiectasia (HHT), with plans to initiate a Phase 1 clinical trial in healthy volunteers in Q1 2026[94]. Financial Performance - The company has not generated any revenue since inception and does not expect to do so in the foreseeable future[97]. - Total operating expenses for the three months ended September 30, 2025, increased by $2.25 million (11%) to $21.89 million compared to $19.64 million in 2024[111]. - Research and development expenses for the three months ended September 30, 2025, rose by $2.61 million (18%) to $16.93 million, driven by increased costs related to TX2100 and employee-related expenses[112]. - Total operating expenses for the nine months ended September 30, 2025, increased by $18.5 million (42%) to $62.52 million compared to $44.02 million in 2024[116]. - Research and development expenses for the nine months ended September 30, 2025, increased by $14.94 million (46%) to $47.15 million, mainly due to increased CRO and CDMO costs for clinical trials[117]. - General and administrative expenses for the nine months ended September 30, 2025, rose by $3.56 million (30%) to $15.37 million, driven by higher employee-related expenses and professional fees[118]. - The net loss for the nine months ended September 30, 2025, was $54.9 million, up from a net loss of $45.6 million in 2024, indicating a 20% increase in losses[124][125]. Cash and Financing - In February 2025, the company raised approximately $173.1 million through a private placement of 3,689,465 shares of common stock[95]. - The net proceeds from the Private Placement in February 2025 were approximately $173.1 million[122]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $45.62 million, compared to $42.26 million in 2024[123]. - Cash used in operating activities for the nine months ended September 30, 2025, was $45.6 million, compared to $42.3 million for the same period in 2024, reflecting an increase of 7.8%[124][125]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $173.5 million, slightly higher than $172.8 million in 2024, showing a marginal increase of 0.4%[127][128]. - Existing cash and cash equivalents of $268.4 million as of September 30, 2025, are expected to fund operating expenses and capital expenditures for at least the next twelve months[139]. Operational and Administrative Expenses - Research and development expenses include costs for clinical trials, employee-related expenses, and fees paid to contract research organizations (CROs)[98]. - General and administrative expenses are expected to increase due to costs associated with operating as a public company[106]. - The company recorded a tax expense of approximately $0.9 million related to the dissolution of its Australian subsidiary, Tectonic Therapeutic Pty Ltd[109]. - Interest income for the three months ended September 30, 2025, increased by $0.95 million (49%) to $2.9 million, primarily due to higher cash and cash equivalents[111]. - Interest income for the nine months ended September 30, 2025, surged by $6.21 million (246%) to $8.73 million, attributed to an increase in cash and cash equivalents from the Merger and Private Placement[116]. Future Outlook and Risks - The company expects to incur significant commercialization expenses if marketing approval is obtained for lead product candidates TX45 and TX2100, necessitating substantial additional funding[129]. - The company anticipates ongoing costs associated with operating as a public company and may need to rely on additional financing to achieve business objectives[134]. - The company has no ongoing material financing commitments expected to affect liquidity over the next five years, aside from lease obligations[135]. - Interest rate sensitivity is a primary market risk, with cash and cash equivalents being affected by changes in U.S. interest rates, but a 10% change would not materially impact the investment portfolio[139]. - The company has entered into license agreements with milestone and royalty payment obligations contingent upon future events, which may affect financial commitments[136].

Financial Performance - Net sales for Q3 2025 were $420.0 million, a 4.7% increase from $401.3 million in Q3 2024[3] - Income from operations decreased by 6.3% to $37.5 million, representing 8.9% of net sales, compared to $40.1 million or 10.0% of net sales in Q3 2024[4] - Net income for Q3 2025 was $25.4 million, or $2.10 per fully diluted share, down from $27.4 million, or $2.28 per fully diluted share in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $55.0 million, flat compared to $54.9 million in Q3 2024, representing 13.1% of net sales[5] - Total net sales for the nine months ended September 30, 2025, were $1,230,065,000, a decrease of 1.1% compared to $1,243,190,000 in 2024[29] - Adjusted Operating Income for the nine months ended September 30, 2025, was $134,958,000, down from $137,149,000 in 2024, reflecting a decline of 1.6%[27] - EBITDA for the nine months ended September 30, 2025, was $166,226,000, compared to $169,827,000 in 2024, indicating a decrease of 2.4%[31] - Net Sales for the overall company decreased to $173,059, down 9.0% from $190,115 year-over-year[33] - Income from Operations for the overall company fell to $7,478, a decrease of 39.4% from $12,404 in Q3 2024[33] - Adjusted EBITDA for the overall company was $16,847, with a margin of 9.7%, down from 11.5% in the same quarter last year[33] - EBITDA for the overall company decreased to $14,714, down 27.1% from $20,166 in Q3 2024[33] Division Performance - Industrial Equipment Division net sales increased by 17.0% to $247.0 million, with adjusted EBITDA of $38.2 million, or 15.5% of net sales[5] - Vegetation Management Division net sales decreased by 9.0% to $173.1 million, with adjusted EBITDA of $16.8 million, or 9.7% of net sales[5] - The Vegetation Management division reported a 17.6% decrease in net sales for the nine months ended September 30, 2025, totaling $515,307,000, down from $625,397,000 in 2024[29] - The Industrial Equipment division saw a 15.7% increase in net sales for the nine months ended September 30, 2025, reaching $714,758,000, up from $617,793,000 in 2024[29] - Backlog for the Industrial Equipment Division decreased to $438,106, down from $543,425 year-over-year[35] - Net Sales increased to $246,983, up 16.9% from $211,186 in the same quarter last year[35] - Income from Operations rose to $30,064, representing a 8.8% increase compared to $27,675 in Q3 2024[35] - Adjusted EBITDA for the Industrial Equipment Division reached $38,164, a 15.5% margin, compared to 15.7% in Q3 2024[35] Cash Flow and Debt - Operating cash flow for the first nine months of 2025 was $102.4 million[4] - Total debt as of September 30, 2025, was $209.4 million, with total cash of $244.8 million and $397.2 million available under the Revolving Facility[6] - Cash and cash equivalents at the end of the period increased to $244,806,000 from $140,038,000, marking a significant rise of 74.5%[19] - The company reported a net cash provided by operating activities of $102,424,000 for the nine months ended September 30, 2025, down from $130,642,000 in 2024, a decrease of 21.6%[19] - Total debt net of cash as of September 30, 2025, was $(35,376,000), a significant improvement from $84,128,000 in 2024, indicating a reduction of $119,504,000[31] Dividends and Expenses - The company incurred $10,805,000 in dividends paid during the nine months ended September 30, 2025, compared to $9,329,000 in 2024, an increase of 15.8%[19] - The company reported a significant increase in restructuring expenses, totaling $572 in Q3 2025 compared to $1,607 in Q3 2024[33] - The company noted that CEO Transition costs included $893 in Q3 2025, with no comparable costs in Q3 2024[33] Assets - Total assets increased to $1,594.98 million as of September 30, 2025, compared to $1,481.34 million in 2024[17] - Net income for the nine months ended September 30, 2025, was $88,289,000, a slight increase from $87,849,000 in 2024, representing a growth of 0.5%[19]

Investigational Therapeutics - Prothena's investigational therapeutic pipeline includes prasinezumab for Parkinson's disease, BMS-986446 for Alzheimer's disease, and coramitug for ATTR amyloidosis, with potential milestone payments totaling up to $1.23 billion from Novo Nordisk[175]. - Prasinezumab is advancing into Phase 3 development with Roche, targeting approximately 900 participants in the PARAISO trial, focusing on motor progression over at least 104 weeks[165]. - The Phase 2b PADOVA trial for prasinezumab showed a 30-40% relative reduction in motor progression compared to placebo, with a hazard ratio of 0.79 in the levodopa-treated subgroup[166]. - Coramitug has completed a Phase 1 trial demonstrating safety and tolerability, with Novo Nordisk initiating the Phase 3 CLEOPATTRA trial involving approximately 1,280 participants[173][176]. - BMS-986446 received Fast Track designation from the FDA for Alzheimer's disease, with potential milestone payments of up to $563 million and tiered royalties on worldwide net sales[179]. - The Phase 2 TargetTau-1 trial for BMS-986446 will evaluate its efficacy in approximately 310 participants with early Alzheimer's disease, focusing on tau deposition changes over 76 weeks[180]. - Prothena's partnership with Roche for prasinezumab aims to address the underlying causes of Parkinson's disease, which affects approximately 10 million people globally[163]. - The ATTR amyloidosis market includes an estimated 400,000 to 1.4 million patients with wild-type ATTR cardiomyopathy, highlighting the significant unmet medical need[168]. - Prothena's collaboration with Bristol Myers Squibb for BMS-986446 includes an $80 million option exercise fee and a subsequent $55 million fee under a global license agreement[179]. - The Phase 1 clinical trial for BMS-986446 showed a favorable safety profile with no serious treatment-emergent adverse events reported[181]. Financial Performance - Total revenue for the three months ended September 30, 2025, was $2.4 million, a 149% increase from $1.0 million in the same period of 2024[193]. - Collaboration revenue for the nine months ended September 30, 2025, was $9.6 million, a 93% decrease from $133.0 million in the same period of 2024[194]. - Research and development expenses decreased by $21.8 million or 43% for the three months ended September 30, 2025, compared to the same period in 2024[202]. - Total operating expenses for the three months ended September 30, 2025, were $42.7 million, a 37% decrease from $67.5 million in the same period of 2024[198]. - The company incurred restructuring costs of approximately $33.1 million for the nine months ended September 30, 2025, primarily due to the discontinuation of birtamimab development[206]. - Interest income for the three months ended September 30, 2025, was $3.4 million, a 50% decrease from $6.7 million in the same period of 2024[208]. - Interest income decreased by $8.9 million or 44% for the nine months ended September 30, 2025, primarily due to lower cash balances and yields[209]. - Total other income, net decreased by $9.0 million or 45% for the nine months ended September 30, 2025[209]. - The company recorded a benefit from income taxes of $(371,000) for the three months ended September 30, 2025, a decrease of 56% compared to the prior year[211]. - The company expects full year 2025 net cash used in operating and investing activities to be approximately $170 million to $178 million[229]. Cash and Liquidity - Working capital was $288.5 million as of September 30, 2025, a decrease of $148.4 million from $436.9 million as of December 31, 2024[215]. - Cash and cash equivalents decreased to $330.8 million as of September 30, 2025, from $471.4 million as of December 31, 2024[216]. - Net cash used in operating activities was $140.3 million for the nine months ended September 30, 2025, primarily due to ongoing research and development activities[221]. - As of September 30, 2025, the company has $2.7 million of deferred revenue related to the PRX019 Global License Agreement[196]. - The company received an option exercise fee of $80.0 million related to the PRX019 license agreement[185]. Workforce and Restructuring - The company announced a 63% reduction in workforce in June 2025 to reduce operating costs[189]. - The company has contractual obligations totaling $30.9 million as of September 30, 2025, including operating leases and restructuring plan obligations[229]. Credit and Risk Management - The company has not experienced any losses on deposits of cash and cash equivalents[235]. - Cash and cash equivalents are placed with high credit quality financial institutions[234]. - The company limits credit exposure with any one financial institution according to its investment policy[234]. - Deposits held with banks have exceeded federally insured limits[234]. - The company is exposed to credit risk in the event of a default by financial institutions holding its cash and cash equivalents[235]. - Credit risk exposure is recorded on the Condensed Consolidated Balance Sheets[235]. Foreign Exchange and Other Losses - Foreign exchange losses from transactions with vendors denominated in euros amounted to $306,000 for the nine months ended September 30, 2025[210]. - Total liabilities were $57.6 million as of September 30, 2025, compared to $60.2 million as of December 31, 2024[214].

Financial Performance - Total revenue for the three months ended September 30, 2025, was $26.236 million, a decrease of $4.036 million or 13.3% compared to $30.272 million in the same period of 2024[211]. - Revenue from the Electronic Test segment decreased by 21.8% to $12.099 million, while Environmental Technologies increased by 11.2% to $7.490 million[211]. - Total revenue for the nine months ended September 30, 2025, was $81,003,000, a decrease of $13,084,000 or 13.9% compared to $94,087,000 in the same period of 2024[224]. - Revenue from the Semi market decreased by 20.5% to $29,029,000, while Auto/EV revenue fell by 19.9% to $16,785,000[225]. - Gross profit for the three months ended September 30, 2025, was $10.992 million, resulting in a gross margin of 41.9%, down from 46.3% in the prior year[217]. - Gross profit for the nine months ended September 30, 2025, was $34,021,000, down 16.8% from $40,885,000 in 2024, with a gross margin of 42.0%[228]. Orders and Backlog - Orders for the third quarter of 2025 increased by 34.2% to $37.642 million compared to $28.054 million in the same period of 2024, driven primarily by Auto/EV and Defense/Aerospace segments[213]. - Backlog of unfilled orders as of September 30, 2025, was $49.3 million, up from $45.5 million a year earlier[216]. - Orders received for the nine months ended September 30, 2025, increased by 17.7% to $90,689,000, driven by strong performance in Auto/EV and Life Sciences[227]. Expenses and Costs - Selling expenses decreased by 12.1% to $3.765 million, representing 14.4% of revenue[218]. - General and administrative expenses decreased by 16.2% to $5.128 million, accounting for 19.5% of revenue[220]. - Engineering and product development expenses increased by 7.0% to $2.335 million, representing 8.9% of revenue[219]. - Restructuring costs recognized in the third quarter of 2025 amounted to $116,000, representing 0.4% of revenue[222]. - Amortization of acquired intangible assets decreased by 10.9% to $841,000, accounting for 3.2% of revenue[221]. - Selling expenses decreased by 6.4% to $12,141,000, representing 15.0% of total revenue[229]. - Engineering and product development expenses increased by 10.1% to $7,028,000, accounting for 8.7% of revenue[230]. - General and administrative expenses decreased by 6.0% to $16,704,000, representing 20.6% of revenue[231]. - Restructuring costs of $645,000 were recognized for the consolidation of operations, representing 0.8% of revenue[233]. Debt and Financing - The company reported a total debt of $4.9 million with M&T Bank as of September 30, 2025, and projects to reduce this to less than $2.0 million by June 30, 2026[199]. - The company has a Credit Facility with a $50.5 million non-revolving delayed draw term note and a $10.0 million revolving credit facility, with available drawing capacity of $30.0 million as of September 30, 2025[238]. - The company drew $12 million under the Term Note at a fixed annual interest rate of approximately 3.2% for the acquisition of Videology, and $8.5 million at a variable rate of 6.4% for Acculogic[240]. - Alfamation's debt as of September 30, 2025, was $4.0 million, with a weighted average interest rate of 3.2% for bank-issued term loans[241]. Cash Flow and Working Capital - Cash and cash equivalents decreased from $19.83 million on December 31, 2024, to $16.23 million on September 30, 2025[242]. - The company estimates short-term working capital requirements between $8.0 million and $10.0 million, supported by cash and borrowing capacity[243]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $8.3 million, an increase of $7.1 million compared to the prior year[245]. - Net cash used in investing activities decreased by $18.8 million to $1.1 million for the nine months ended September 30, 2025, with no acquisitions in the current year[245]. - Net cash used in financing activities was $6.8 million, a decrease of $1.3 million compared to the prior year, with no stock repurchases in the current year[245]. Market and Strategic Focus - The company is focused on diversifying its markets, including Auto/EV, Defense/Aerospace, Industrial, Life Sciences, and Safety/Security, to reduce dependence on the semiconductor market[192]. - The semiconductor market remains the largest market for the company, characterized by cyclical demand and significant fluctuations in orders and revenue[194]. - The company has qualified a new supplier for materials previously sourced from a sole-source supplier in Belarus, with the first system incorporating these new materials shipped at the end of Q2 2025[203]. - The company maintains a two-to-three month safety stock of capacitors from its sole-source supplier in Israel, which is currently believed to have redundancies in place[201]. - The company continues to monitor global trade policies and tariffs, which may negatively impact demand, pricing, and costs for its products[200]. - The company has increased prices charged to customers where appropriate to mitigate supply chain and logistics challenges[206]. - The company is experiencing increased prices and logistics delays, which may impact future earnings[206]. - The company is committed to adjusting strategies and operations in response to shifts in market practices and customer demands[196]. - The company is pursuing acquisition opportunities for complementary businesses and technologies, with funding expected from cash, Term Note availability, or equity issuance[244].