Financial Performance - Total revenue for Q3 2025 reached $956.0 million, a 100% increase from $478.7 million in Q3 2024[7] - Adjusted EBITDA for Q3 2025 was $68.5 million, up 52% from $45.2 million in Q3 2024[8] - Care Partners revenue was $897.7 million, reflecting a 97% increase from $455.8 million in the prior year[8] - Net income attributable to Astrana for Q3 2025 was $0.4 million, with diluted earnings per share of $0.01[8] - Total revenue for the three months ended September 30, 2025, was $956,048 thousand, representing a 100.0% increase from $478,710 thousand in the same period of 2024[26] - Net income for the nine months ended September 30, 2025, was $17,514 thousand, a decrease of 69.7% compared to $57,709 thousand for the same period in 2024[28] - Adjusted EBITDA for the three months ended September 30, 2025, was $68,482 thousand, up 51.5% from $45,170 thousand in the same period of 2024[31] - Earnings per share (diluted) for the three months ended September 30, 2025, was $0.01, down from $0.33 in the same period of 2024[26] Guidance and Projections - The company updated its full-year 2025 guidance, projecting total revenue between $3,100 million and $3,180 million[13] - Net income guidance for the year ending December 31, 2025, is projected to be between $23,500,000 and $28,500,000[35] - EBITDA guidance for the same period is estimated to range from $124,000,000 to $134,000,000[35] - Adjusted EBITDA is expected to be between $200,000,000 and $210,000,000, indicating a focus on operational performance[35] - Interest expense is projected to be between $37,000,000 and $38,000,000, while provision for income taxes is estimated at $18,000,000 to $22,000,000[35] Assets and Liabilities - Total assets as of September 30, 2025, were $2,237.2 million, compared to $1,354.9 million at the end of 2024[23] - The company reported total liabilities of $2,237,186 thousand as of September 30, 2025, compared to $1,354,894 thousand as of December 31, 2024[24] - Total stockholders' equity as of September 30, 2025, was $775,543 thousand, an increase from $712,720 thousand as of December 31, 2024[24] - The company reported a total of $1,302.4 million in assets that can only be used to settle obligations of its consolidated VIEs as of September 30, 2025[24] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2025, were $117,483 thousand, compared to $63,146 thousand for the same period in 2024, indicating a significant increase[28] - The company incurred $548,553 thousand in payments for business acquisitions during the nine months ended September 30, 2025[28] - The company’s cash, cash equivalents, and restricted cash at the end of the period on September 30, 2025, totaled $464,326 thousand, an increase from $348,640 thousand at the end of the same period in 2024[29] Operational Strategy - Astrana supports over 20,000 providers and more than 1.6 million patients in value-based care arrangements[19] - A strategic partnership with Intermountain Health was announced to improve healthcare access in southern Nevada[14] - The company continues to control medical costs effectively, reiterating full-year trend expectations[7] - The acquisition of Prospect Health was completed on July 1, 2025, enhancing the company's operational scale and capabilities[9] Non-GAAP Measures - The company emphasizes the use of Adjusted EBITDA as a key performance measure for evaluating operations and making financial decisions[36] - Adjusted EBITDA margin is defined as Adjusted EBITDA over total revenue, providing insight into operational efficiency[36] - The company believes non-GAAP measures like Adjusted EBITDA offer investors a clearer view of ongoing operating performance[37] - Non-GAAP measures are not intended to replace GAAP measures but provide additional context for financial analysis[37] - The reconciliation of GAAP and non-GAAP measures is provided to enhance understanding of financial performance[37] - The company aims to allocate resources and plan future periods based on these non-GAAP financial measures[37]

Revenue Performance - Surgical Glaucoma revenue for the nine months ended September 30, 2025, was $56.1 million, down from $57.1 million in the same period of 2024, with gross margins of 86.3% and 87.6% respectively[119]. - Dry Eye revenue for the nine months ended September 30, 2025, was $0.9 million, a decrease from $3.7 million in 2024, with gross margins of 52.1% and 45.8% respectively[119]. - Total revenue for the three months ended September 30, 2025, was $19.9 million, a decrease of $0.3 million, or 1.2%, compared to $20.2 million in the prior year[143]. - Surgical Glaucoma revenue increased by $1.1 million, or 5.8%, to $19.7 million, primarily due to an increase in the number of units sold and average selling prices[143]. - Dry Eye revenue decreased by $1.3 million, or 87.7%, to $0.2 million, attributed to decreased volumes of SmartLids purchased and fewer new customers[144]. - Revenue for the nine months ended September 30, 2025 was $57.0 million, a decrease of $3.8 million, or 6.3%, compared to $60.8 million in the prior year[153]. - Surgical Glaucoma revenue was $56.1 million, a decrease of $1.1 million, or 1.9%, primarily due to a decrease in the number of OMNI units sold[153]. - Dry Eye revenue was $0.9 million, a decrease of $2.7 million, or 75.0%, attributed to decreased volumes of SmartLids purchased and fewer new customers[154]. Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $92.4 million and an accumulated deficit of $380.6 million[124]. - Cash and cash equivalents amounted to $92.4 million as of September 30, 2025, consisting of bank deposits, money market funds, and U.S. treasury bills[188]. - The company expects its cash and cash equivalents will enable it to fund operations for at least the next 12 months[170]. - The Hercules Loan Agreement includes Term Loans with a total credit facility of $65.0 million, with Tranche 2 of $10.0 million not available due to unmet performance milestones[175][177]. - As of September 30, 2025, the interest rate on the Term Loans is 10.35%, with a final payment fee of 5.95% recognized as a debt discount[178][189]. - The company is required to use commercially reasonable efforts to grant lenders the option to invest up to $3.0 million in the next round of equity financing[181]. - The company has complied with all covenants under the Hercules Loan Agreement as of September 30, 2025, including minimum cash and revenue covenants[180]. - The interest-only period of the Hercules Loan Agreement has been extended to February 1, 2027, following a third amendment[177]. Operational Changes - The company implemented a targeted restructuring plan in Q3 2025, reducing headcount by approximately 20% and cutting operating expenses by delaying R&D spending and limiting marketing costs[116]. - The company does not intend to develop internal manufacturing capabilities and relies on third-party manufacturers, with plans to expand manufacturing capacity starting in Q1 2026[118]. - The company has established direct commercial operations in the UK and Germany, selling OMNI directly in these markets[110]. Expenses and Profitability - Total gross profit was $17.2 million, an increase of $0.3 million from the prior year, with a total gross margin of 86.4%, up from 83.9%[146]. - Research and Development (R&D) expenses were $3.4 million, a decrease of $1.4 million from the prior year, including $1.0 million of restructuring costs[147]. - Selling, General and Administrative (SG&A) expenses were $21.8 million, a decrease of $1.6 million from the prior year, including $1.8 million of restructuring costs[148]. - Total gross profit was $48.9 million, a decrease of $2.8 million from the prior year, with a gross margin of 85.8%, up from 85.1%[157]. - Research and Development expenses were $12.2 million, a decrease of $1.5 million, driven by reductions in consulting, clinical studies, and payroll expenses[158]. - Selling, General, and Administrative expenses were $70.1 million, a decrease of $6.5 million, primarily due to lower legal and stock-based compensation expenses[159]. - Investment income was $1.0 million, a decrease of $0.5 million from the prior year, due to lower investment balances and yields[149]. - Investment income was $3.1 million, a decrease of $1.5 million, due to lower investment balances and yields[160]. - Interest expense increased by $0.2 million due to a higher outstanding principal balance under the Hercules Loan Agreement[150]. Future Outlook - The company plans to continue investing in product development, market access, and clinical studies, expecting to incur net losses for several years and may seek additional financing[123]. - The company expects Dry Eye gross margins to improve over time as market access expands, although improvements may be offset by tariffs[123]. - The company expects to continue investing in R&D initiatives and commercial expansion efforts to drive future growth[136][138]. Miscellaneous - Over 350,000 estimated uses of Surgical Glaucoma products occurred in over 2,200 hospitals and ASCs in the U.S. and Europe, while TearCare had over 70,000 estimated uses in over 1,500 eyecare facilities in the U.S. through September 30, 2025[117]. - The company incurred $0.6 million in increased cost of goods sold due to tariff-related expenses for the nine months ended September 30, 2025[121]. - A hypothetical 1.0% change in interest rates would not have a material impact on the company's financial statements[189]. - The company does not have any off-balance sheet arrangements[183]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2025[192].

Financial Position - As of September 30, 2025, cash, cash equivalents, and marketable securities totaled $678.8 million, up from $559.2 million as of December 31, 2024, providing a cash runway through at least the end of 2028[2][7] - Cash, cash equivalents, and marketable securities as of September 30, 2025, totaled $678,820 million, up from $559,165 million at the end of 2024[21] - Total assets decreased to $701,688 million as of September 30, 2025, down from $744,725 million at the end of 2024[21] - Accumulated deficit increased to $(426,287) million as of September 30, 2025, compared to $(340,522) million at the end of 2024[21] - Total stockholders' equity decreased to $645,437 million as of September 30, 2025, down from $675,295 million at the end of 2024[21] Revenue and Expenses - License and collaboration revenue for the three months ended September 30, 2025, was $4.7 million, consistent with the same period in 2024, while revenue for the nine months ended September 30, 2025, was $38.6 million compared to $263.8 million for the same period in 2024[8][13] - License and collaboration revenue for Q3 2025 was $4,712 million, a slight increase from $4,675 million in Q3 2024[17] - Total operating expenses for Q3 2025 were $51,133 million, up from $46,128 million in Q3 2024, representing an increase of 6.5%[17] - Net loss for Q3 2025 was $39,339 million, compared to a net loss of $33,210 million in Q3 2024, indicating a deterioration in performance[17] - Research and development expenses increased by $4.0 million and $9.7 million for the three and nine months ended September 30, 2025, respectively, primarily due to increased drug discovery and pre-clinical research expenses[8][13] - Research and development expenses for Q3 2025 were $40,003 million, an increase from $35,970 million in Q3 2024, reflecting a 5.7% rise[17] - Total stock-based compensation expense for Q3 2025 was $10,559 million, slightly higher than $10,165 million in Q3 2024[19] - Interest income for Q3 2025 was $7,049 million, a decrease from $7,682 million in Q3 2024, reflecting a decline of 8.2%[17] Clinical Developments - The first patient has been dosed in the Phase 1 trial of PN-881, a first-in-class oral IL-17 peptide antagonist[3][9] - The first human subject has been dosed in the Phase 1 trial of PN-881, evaluating safety, tolerability, pharmacokinetics, and pharmacodynamics[9][11] - Icotrokinra demonstrated clinically meaningful outcomes at Week 28 in the Phase 2b ANTHEM-UC study, with 31.7% of patients achieving clinical remission and 38.1% showing endoscopic improvement versus placebo[4][9] - Rusfertide received Breakthrough Therapy Designation from the FDA for the treatment of erythrocytosis in patients with Polycythemia Vera, with an NDA filing expected in Q4 2025[9][11] - The company plans to nominate a development candidate from the oral hepcidin program by year-end 2025[3][9] - The company anticipates the initiation of clinical studies for the triple GLP/GIP/GCG agonists PN-477sc and PN-477o in mid-2026 and the second half of 2026, respectively[9][11]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No: 001-38719 MEDALIST DIVERSIFIED REIT, INC. (Exact name of registrant as specified in its charter) Maryland 47-5201 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to ________ Commission file number 001-36099 CHERRY HILL MORTGAGE INVESTMENT CORPORATION (Exact name of registrant as specified in its charter) (S ...

Financial Performance - Global revenue for Q3 2025 was $122.8 million, up 7% year-over-year[5] - Global billings reached $416.1 million, an increase of 11% year-over-year[6] - North America revenue was $96.0 million, up 11% year-over-year, with Local revenue at $91.6 million, up 12%[10] - Adjusted EBITDA for Q3 2025 was $17.5 million, compared to $14.8 million in the prior year[10] - Revenue for Q3 2025 was $122.825 million, a 7.3% increase from $114.479 million in Q3 2024[36] - Gross profit for Q3 2025 reached $111.836 million, compared to $102.895 million in Q3 2024, reflecting an increase of 8.9%[36] - Operating expenses totaled $109.642 million in Q3 2025, slightly up from $108.481 million in Q3 2024[36] - Total gross billings for Q3 2025 reached $319,107 million, reflecting a year-over-year growth of 16.0%[1] - Contribution profit for Q3 2025 was $55,962 million, showing a year-over-year growth of 14.0%[1] - Total gross profit for Q3 2025 was $87,708 million, which is a 12.8% increase from the same quarter last year[1] Customer Metrics - Active customers increased to 16.1 million, up 4% year-over-year, with 300,000 net new active customers added in the quarter[2][6] - Active customers increased to 16.1 million in Q3 2025, up from 15.8 million in Q2 2025[2] - Total consolidated units sold in Q3 2025 were 9,136, a slight increase from 9,117 in Q2 2025[2] - The total headcount decreased to 1,739 in Q3 2025, down from 1,814 in Q2 2025[2] Loss and Expenses - Net loss from continuing operations was $117.8 million, a significant decline from a net income of $14.5 million in the prior year[6] - The net loss attributable to Groupon, Inc. for Q3 2025 was $118.373 million, compared to a net income of $13.928 million in Q3 2024[36] - Basic net loss per share for continuing operations was $2.92 in Q3 2025, compared to earnings of $0.35 per share in Q3 2024[36] - The company reported a loss from continuing operations before income taxes of $96.534 million for Q3 2025, compared to income of $16.843 million in Q3 2024[36] - Marketing expenses were $41.4 million, representing 37% of gross profit, compared to 35% in the prior year[6] - The company incurred restructuring and related charges of $896 million in Q3 2024[46] Cash Flow and Assets - Operating cash flow from continuing operations was negative $20.5 million, and free cash flow was negative $24.6 million[10] - Free cash flow for Q3 2025 was $(24,588) million, indicating a 25.0% improvement compared to the previous quarter[1] - Total current assets as of September 30, 2025, were $314.219 million, a slight decrease from $315.361 million at the end of 2024[34] - Total liabilities increased to $667.564 million as of September 30, 2025, up from $571.639 million at the end of 2024[34] - Cash and cash equivalents stood at $238.451 million as of September 30, 2025, compared to $228.843 million at the end of 2024[34] - The company reported a net cash used in financing activities of $(3,275) thousand for the three months ended September 30, 2025, compared to $(691) thousand for the same period in 2024[38] - The total cash decrease for the three months ended September 30, 2025, was $(28,888) thousand, compared to a decrease of $(18,238) thousand for the same period in 2024[39] International Performance - International revenue was $26.8 million, down 3% year-over-year, primarily due to the divestiture of Giftcloud[10] - International segment total gross billings decreased by 1.3% year-over-year to $97,005 million in Q3 2025[1] Depreciation and Other Expenses - The company reported a depreciation and amortization expense of $3,940 thousand for the three months ended September 30, 2025, down from $6,492 thousand in the same period of 2024[38] - The company reported a depreciation and amortization expense of $6,895 million in Q3 2024[46] - Stock-based compensation for the three months ended September 30, 2025, was $11,109 thousand, an increase from $8,890 thousand in the same period of 2024[38] - Other income (expense), net included a loss on extinguishment of debt totaling $99.9 million for the three months ended September 30, 2025[48]

Financial Performance - Consolidated revenues for the three and nine months ended September 30, 2025, were $269 million and $779 million, representing increases of $8 million (3%) and $2 million (0%) compared to the same periods in 2024[168]. - Revenues for Q3 2025 increased by $8 million to $269 million compared to Q3 2024, driven by improved pricing in Print and Advanced Materials and Chemicals, and favorable foreign currency fluctuations[186][187]. - Kodak's consolidated total revenue for the three months ended September 30, 2025, was $269 million, a decrease of $5 million compared to $261 million in the same period of 2024[200]. - Print revenues decreased by $5 million (3%) to $177 million for the three months and by $30 million (5%) to $520 million for the nine months ended September 30, 2025, accounting for 66% and 67% of total revenues, respectively[169]. - Advanced Materials and Chemicals revenues increased by $11 million (15%) to $82 million for the three months and by $28 million (14%) to $231 million for the nine months ended September 30, 2025[169]. Cost and Expenses - Kodak has faced increased manufacturing costs due to tariffs on imported goods, particularly aluminum, but has largely mitigated these costs through pricing actions and supplier negotiations[171]. - Gross profit for Q3 2025 improved by $23 million to $68 million, primarily due to better pricing and lower aluminum costs, despite higher manufacturing costs in Print[186][189]. - Selling, general and administrative expenses decreased by $3 million in Q3 2025, attributed to lower litigation-related costs compared to the prior year[192]. - Kodak recorded restructuring costs of $1 million and $12 million for the three and nine months ended September 30, 2025, respectively[217]. - The restructuring actions implemented in 2025 are expected to generate future annual cash savings of approximately $17 million, reducing SG&A expenses, Cost of revenues, and R&D costs[218]. Cash Flow and Liquidity - Kodak ended the quarter with a cash balance of $168 million, a decrease of $33 million from December 31, 2024[219]. - Cash, cash equivalents, and restricted cash balances were $271 million as of September 30, 2025, down from $301 million at December 31, 2024[242]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $(9) million, an improvement of $2 million compared to $(11) million in the same period of 2024[243]. - Net cash used in financing activities decreased by $18 million to $(3) million for the nine months ended September 30, 2025, primarily due to a $17 million prepayment in the prior year[245]. - Kodak's plans to return to sustainable positive cash flow include generating profitable revenues and reducing operating expenses[232]. Strategic Initiatives - Kodak plans to expand its manufacturing capabilities for EV battery materials and diagnostic test reagents, leveraging its existing chemical manufacturing expertise[185]. - The company aims to capitalize on its intellectual property through new business opportunities in 3D printing materials and printed electronics markets[185]. - Kodak has implemented measures to address supply chain disruptions, including increasing safety stock and certifying additional sources of materials[178]. - The company has filed petitions for anti-dumping and countervailing duties on imported plates from China and Japan, resulting in significant duties imposed on these imports[179]. Market Conditions and Challenges - The company is actively monitoring global economic conditions, including inflation and geopolitical issues, which have led to revenue declines and increased manufacturing costs[170]. - Kodak's ability to offset higher costs and secure raw materials remains uncertain due to ongoing global economic changes and supply chain challenges[183]. - Kodak's digital plate products are facing challenges from higher raw material prices and competitive pricing pressures[185]. - Kodak's operations in Israel and Russia have been minimally impacted, with less than 1% of total consolidated revenue and assets affected by the conflicts in these regions[180][182]. - The Advanced Materials and Chemicals segment has experienced labor shortages and increased demand for consumer film products, leading to backorders despite capital investments to increase capacity[177]. Investments and Impairments - Kodak's investment in Wildcat Discovery Technologies resulted in an impairment charge of $17 million in Q2 2025 and an additional $4 million in Q3 2025 due to strategic options being contemplated by Wildcat[185]. - Kodak expects to receive approximately $600 million from the KRIP reversion, consisting of $450 million in cash and the remainder in non-cash assets[238]. - The company plans to use $300 million of the expected $450 million from the KRIP reversion to pay down Term Loans[240]. Operational Performance - Operational EBITDA for the Print segment improved by $17 million to $8 million for the three months ended September 30, 2025, due to favorable pricing and lower costs[207]. - Advanced Materials and Chemicals segment's Operational EBITDA increased by $10 million to $16 million for the three months ended September 30, 2025, reflecting improved pricing and volume[212]. - The Advanced Materials and Chemicals segment's Operational EBITDA as a percentage of revenues improved to 20% for the three months ended September 30, 2025, compared to 8% in the prior year[209]. Pension and Liabilities - Kodak's pension income excluding service cost component decreased by $26 million in Q3 2025 compared to the prior year, due to lower expected returns on assets[195]. - The company anticipates that the undiscounted actuarial liability for workers' compensation obligations will continue to decline, averaging a decrease of $5 million per year from 2014 to 2024[247]. Accounting and Compliance - The Company has not made any material changes to its critical accounting policies or estimates since December 31, 2024[254]. - Kodak is exposed to fluctuations between the U.S. dollar and other currencies due to its operations in many foreign countries[255]. - Volatility in global financial markets could increase foreign currency exchange rate volatility, impacting sales and net income[255].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File No. 001-40071 AUDDIA INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 45-4257218 ...

Financial Performance - Net sales for Q3 2025 were $743 million, a decrease of 14% compared to $868 million in Q3 2024[5]. - The net loss for Q3 2025 was $110 million, with a diluted EPS of negative $3.05, compared to a net loss of $87 million and EPS of negative $2.47 in Q3 2024[4][22]. - Adjusted EBITDA for Q3 2025 was $30 million, down $36 million from $66 million in Q3 2024, primarily due to lower volumes and margins[6][9]. - Total net sales for the three months ended September 30, 2025, were $743.2 million, a decrease of 14.3% from $867.7 million in the same period of 2024[28]. - Adjusted EBITDA for the three months ended September 30, 2025, was $30.4 million, down 54% from $66.1 million in the same period of 2024[33]. - The company reported a net loss of $(109.7) million for the three months ended September 30, 2025, compared to a net loss of $(87.3) million in the same period of 2024[33]. - Adjusted EPS for the three months ended September 30, 2025, was $(2.41), compared to $(1.62) for the same period in 2024, reflecting a decline in earnings per share[33]. Cash Flow and Liquidity - Free Cash Flow for Q3 2025 was negative $38 million, a decrease of $35 million compared to the prior year[4]. - For the nine months ended September 30, 2025, cash used in operating activities was $(125.0) million, compared to $(99.3) million for the same period in 2024, representing a 26% increase in cash outflow[26]. - Free Cash Flow for the nine months ended September 30, 2025, was $(160.0) million, compared to $(141.4) million for the same period in 2024, indicating a worsening cash generation capability[39]. - Cash and cash equivalents at the end of the period were $112.1 million, down from $165.3 million at the end of the same period in 2024[26]. - Total liquidity at the end of Q3 2025 was $346 million, with cash of $114 million[4]. - The company expects to generate Free Cash Flow of $20 million for the three months ending December 31, 2025[41]. Segment Performance - Engineered Materials net sales were $273 million, down 7% year-over-year, while Adjusted EBITDA remained flat at $34 million[12]. - Latex Binders net sales decreased 18% to $198 million, with Adjusted EBITDA dropping $9 million to $17 million[12]. - Polymer Solutions net sales fell 18% to $271 million, with Adjusted EBITDA of $4 million, down $19 million from the previous year[12]. Future Outlook - The company anticipates Adjusted EBITDA for Q4 2025 to be between $30 million and $40 million, with a projected net loss of $170 million to $180 million for the quarter[12][9]. - The company forecasts an Adjusted Net Loss of $(170) to $(180) million for the three months ending December 31, 2025[35]. - The company plans to cease virgin MMA production in Italy and repurpose the Rho asset for recycled PMMA, expecting an annual profitability improvement of $30 million[4]. Capital Expenditures - Capital expenditures for the nine months ended September 30, 2025, were $(35.0) million, a decrease from $(42.1) million in the same period of 2024[26].

Revenue Performance - Net revenue for the three months ended September 30, 2025, decreased by $4,629,000 or 13.4% compared to the same period in 2024, driven by declines in all product lines: IoT System Solutions (down 12.3%), Embedded IoT Solutions (down 14.3%), and Software and Services (down 18.0%) [86] - The Americas region accounted for 69.3% of total net revenue in Q3 2025, with a year-over-year increase of $3,231,000 or 18.5%, while EMEA and APJ regions saw significant declines of 51.5% and 37.8%, respectively [87] - Net revenue from Embedded IoT Solutions decreased primarily due to lower unit sales in the APJ region and lower volume sales in the Americas and EMEA regions [88] - Net revenue from IoT System Solutions decreased significantly due to the absence of shipments to a key customer, Gridspertise, which accounted for over $5 million in the prior year [89] Profitability and Expenses - Gross profit for the three months ended September 30, 2025, was $14,475,000, representing a gross margin of 44.8%, an increase from 42.1% in the prior year, attributed to product sales mix and reduced logistics costs [91] - Selling, general and administrative expenses slightly increased to $9,542,000, representing 32.0% of net revenue, primarily due to higher share-based compensation costs [94] - Research and development expenses decreased to $4,598,000, or 15.4% of net revenue, due to lower personnel-related expenses and reduced costs for third-party contract labor [95] - The company reported a net loss of $1,401,000 for the three months ended September 30, 2025, an improvement from a net loss of $2,502,000 in the same period of 2024, driven by a decrease in operating expenses [86] - Charges related to restructuring and severance were $93,000 in Q3 2025, a significant decrease from $900,000 in the same quarter of 2024, indicating ongoing efforts to identify cost savings [96] Cash Flow and Working Capital - Working capital increased by $2,730,000, reaching $49,701,000 as of September 30, 2025, compared to $46,971,000 on June 30, 2025 [101] - Cash and cash equivalents rose by $2,093,000 to $22,191,000 as of September 30, 2025, from $20,098,000 on June 30, 2025 [101] - Net cash provided by operating activities for the three months ended September 30, 2025, was $3,605,000, an increase of $942,000 from $2,663,000 in the same period of 2024 [107] - Accounts receivable decreased by $3,167,000, or 12.6%, from June 30, 2025, to September 30, 2025 [109] - Contract manufacturers' receivables decreased by $2,619,000, or 85.3%, during the same period, primarily due to shipment timing [109] - Net inventories increased by $384,000, or 1.5%, from June 30, 2025, to September 30, 2025 [110] - Accounts payable decreased by $3,625,000, or 27.3%, from June 30, 2025, to September 30, 2025 [110] Investment and Financing Activities - Net cash used in investing activities was $74,000 for the three months ended September 30, 2025, compared to $157,000 in 2024 [111] - Net cash used in financing activities was $1,438,000 for the three months ended September 30, 2025, a decrease of $910,000 from $2,348,000 in 2024 [112] Future Outlook - The company expects fluctuations in gross margin in the future based on changes in product mix, average selling prices, and manufacturing costs [92] - The company anticipates that net revenue, working capital requirements, and capital expenditures will be primary factors affecting cash and liquidity [104]