Financial Performance - The company reported nominal revenues and a net loss of $6,278,191 for the year ended December 31, 2025, compared to a net loss of $1,517,431 for the year ended December 31, 2024[20]. - The company has a working capital deficiency, raising substantial doubt about its ability to continue as a going concern[113]. - The company has identified material weaknesses in its internal controls over financial reporting, which could lead to inaccurate financial statements and negatively affect stock price[209]. - The company does not intend to pay dividends for the foreseeable future, opting to retain earnings for business operations and expansion[204]. Market Opportunities - The global phototherapy treatment market is projected to rise from approximately $1.9 billion in 2023 to around $3.23 billion by 2033, with a CAGR of about 5.2% during the forecast period[24]. - The Indian phototherapy treatment market is expected to grow at an estimated CAGR of approximately 7.8% as of 2023, driven by increasing prevalence of skin disorders and improved healthcare access[24]. - The global psoriasis treatment market was valued at approximately $34 billion in the 12 months ending June 2023, with the US accounting for about 78% of total sales and growing at a CAGR of approximately 18%[25]. - Management believes that the prevalence of psoriasis in India ranges from 0.44% to 2.8% of the population, indicating significant market opportunity[26]. - The global vitiligo treatment market was valued at around $538.90 million in 2024, projected to grow at a CAGR of 4.60% from 2025 to 2034, reaching approximately $807.70 million by 2034[27]. Product Development and Launches - The Hair Enzyme Booster (JW-700) was launched on Amazon on October 28, 2024, and is designed to enhance the efficacy of minoxidil by increasing necessary enzyme levels[33]. - CB-101, a treatment for atopic dermatitis, is planned for reformulation and expected to be available online in the US in Q2 2026[36]. - NoStingz, a sunscreen product, is planned for reformulation and will comply with FDA guidelines, though a launch timeline has not yet been established[37]. - The Hair Enzyme Booster (JW-700) is expected to launch in the US in Q4 2024 and is designed to enhance the efficacy of minoxidil[35]. - The Hair Enzyme Booster (JW-700) has undergone multiple clinical trials, demonstrating its potential efficacy in treating androgenetic alopecia[35]. Regulatory Compliance and Challenges - Regulatory compliance is critical, with products subject to FDA regulations for both OTC and cosmetic products, which include safety, labeling, and manufacturing standards[90][91]. - The Hair Enzyme Booster received CDSCO cosmetic labeling approval in June 2023, demonstrating compliance with Indian regulatory standards for cosmetics[97]. - Regulatory approvals are critical for the company's products, and delays or difficulties in clinical trials may hinder future commercialization[131]. - The company must develop and introduce new products to remain competitive, as the industry is subject to rapid change[125]. - The company does not have any products on the market that have been approved by the FDA for the treatment of disease, which limits its market potential[130]. Competition and Market Position - The company faces competition from larger firms with more resources, which may impact its ability to maintain market share and respond to regulatory changes[81][82]. - The company faces intense competition in the skin care and hair growth product markets, with competitors having greater financial and technical resources[117]. - The U.S. psoriasis market is dominated by biologics, with IL-23 inhibitors holding approximately 31% market share, followed by IL-17 inhibitors at 23%, TNF inhibitors at 23%, and ustekinumab at 13%[83]. Strategic Partnerships and Licensing - Caring Brands has licensed minoxidil products to Taisho, a company with $2.6 billion in revenue, with milestone payments of up to $200,000 and a 3% royalty[35]. - The Cosmofix/San Pellegrino license agreement grants exclusive rights to manufacture and distribute Photocil and Hair Enzyme Booster (JW-700) in India and 31 other territories, with an upfront fee of $20,000 and minimum annual royalties of $50,000 starting from the second year[63][75]. - The agreement with Taisho Pharmaceutical Co., Ltd. includes a $200,000 upfront payment and a 3% royalty on net sales for the Hair Enzyme Booster (JW-700) in Japan, with the first regulatory authorization milestone payment of $100,000 yet to be achieved[67]. Operational and Management Structure - The company has three full-time employees, including the CEO, operations manager, and executive chairman, indicating a lean operational structure[101]. - The company began providing most administrative services in-house during the year ended December 31, 2024, which may affect future performance as a separate publicly traded entity[167]. - The company has limited experience in managing public company operations, which may lead to additional costs and affect financial performance[198]. Risks and Uncertainties - The company may face challenges in manufacturing products in sufficient quantities or quality, which could hinder development and market demand[144]. - Delays in regulatory filings or adverse developments with regulatory authorities, such as the FDA, could significantly impact the company's financial condition[138]. - Adverse publicity regarding the company's products could significantly affect public perception and sales[128]. - The company may seek additional capital through various means, which could dilute existing stockholders' ownership and impose operational restrictions[172]. Market Strategy and Future Plans - The company plans to enhance its online presence and marketing strategies, with a focus on e-commerce before expanding into traditional retail channels[77]. - The company anticipates that each brand will have its own dedicated e-commerce website to enhance retail sales and brand-specific information[79]. - The company is exploring acquisition opportunities in the branded consumer products space, particularly OTC/cosmetic therapeutic brands that do not require additional FDA approval[78].

Financial Performance - Sow Good Inc. incurred net losses from continuing operations of approximately $6.8 million and $11.8 million for the years ended December 31, 2025, and December 31, 2024, respectively [90]. - Revenue increased from approximately $88.4 thousand in 2021 to approximately $16.1 million in 2023, but dropped to $0.0 million in 2025 due to a transition to a commission-based distribution model [98]. - A loss of $33.8 million was reported for discontinued operations in 2025, while a gain of $8.1 million was recorded in 2024 [99]. - The company has a limited operating history in its current form, increasing uncertainty in forecasting revenues and expenses [88]. - The company may need additional funding to support its operations and growth, with no assurance of generating sufficient cash from operations [92]. Business Model and Strategy - The company transitioned to a capital-light model, no longer operating manufacturing facilities, and is evaluating strategic alternatives for future growth [26][33]. - The company transitioned to a commission-based, asset-light business model, earning a fixed percentage of distributor gross receipts from sales of Sow Good-branded products [87]. - Sow Good commenced commercial sales of its products in 2021 and expanded into freeze-dried candy and other snack categories in 2023 [87]. - The company has invested in brand development and marketing initiatives to strengthen consumer engagement and brand awareness [38]. - Sow Good's future success depends on maintaining brand awareness, supporting product innovation, and expanding distribution through its partners [89]. Market and Competition - The freeze-dried candy category saw a significant rise in popularity during 2024 and early 2025, but experienced a decline in sales towards the end of 2025 [31]. - The freeze-dried candy category's sales have been declining, impacting the company's revenue and necessitating strategic alternatives [89]. - Increased competition from larger companies has adversely affected revenue and shelf space with significant customers [111]. - Consumer preferences for freeze-dried candy are changing rapidly, which could limit product sales and market share [112]. Intellectual Property and Compliance - Sow Good holds two U.S. trademark registrations and has six pending applications, emphasizing the importance of its intellectual property in brand recognition [64]. - The company faces potential challenges in protecting its intellectual property rights, which could lead to significant distractions and expenses if infringements occur [123]. - Legal proceedings related to intellectual property claims may divert management's attention and financial resources, impacting the company's operating results and financial condition [125]. - The company is subject to extensive regulation by the FDA and other authorities, which may impact its operations and compliance costs [72]. Operational Risks - Food safety is a top priority, and any incidents related to foodborne illnesses could lead to production interruptions, negative publicity, and increased costs [128]. - Noncompliance with food product quality and safety regulations could result in enforcement actions, including product recalls and potential liability claims, adversely affecting financial condition [129]. - The company may face significant product liability exposure, which could lead to recalls or lawsuits, negatively impacting financial performance and consumer confidence [133]. - Inventory management is critical; excess inventory levels may result in write-downs and negatively impact liquidity, especially following significant customer losses [143]. - Underestimating demand or supplier delays could lead to inventory shortages, resulting in missed sales opportunities and negatively affecting financial condition [144]. Cybersecurity and Data Protection - Cybersecurity risks are a growing concern, as the company relies heavily on information technology systems for operations, which could be vulnerable to attacks and disruptions [145]. - The company has implemented measures to prevent security incidents and cyber attacks, but effectiveness is uncertain, which could lead to business disruption and reputational harm [146]. - The company has established cybersecurity processes to manage risks, with oversight from the Audit Committee to ensure effective controls [190]. - As of the report date, the company is not aware of any cybersecurity threats that have materially affected its business strategy or financial condition [201]. Stock and Market Conditions - The market price of Sow Good's common stock is highly volatile and subject to wide fluctuations [86]. - The company has received a letter from Nasdaq indicating non-compliance with the minimum bid price of $1.00 per share, with a compliance period until May 11, 2026 [161]. - The market price of the company's common stock is expected to remain highly volatile, influenced by various factors including quarterly revenue variations and changes in analyst estimates [165]. - The company has never paid dividends on its common stock and does not intend to do so in the foreseeable future, relying on price appreciation for investor returns [169]. Funding and Capital Structure - The first tranche of a private placement raised $3 million by issuing 1.5 million Series AA Convertible Non-Redeemable Preferred Stock, with a second tranche expected to raise an additional $3 million in March 2026 [27]. - The company issued 1,500,000 shares of Series AA Preferred Stock for $3 million, which were used to pay down debt and for operational purposes [221]. - The company plans to issue an additional 1,500,000 shares of Series AAA Preferred Stock for another $3 million in March 2026 [221]. - The company qualifies as a "smaller reporting company" with a market value of common stock held by non-affiliates below $700 million and annual revenue under $100 million, potentially making its stock less attractive to investors [171]. Leadership and Governance - The company experienced a leadership transition, appointing David Lazar as CEO and Chairman of the Board [222].

Financial Risks - The company has a history of losses and anticipates future losses, which could affect its financial stability and growth prospects[22] - There are uncertainties regarding the ability to access financing from other sources, which may hinder the exploration and construction of the Project[22] - The company is facing risks related to delays in obtaining U.S. EXIM loan approvals, which could impact project financing and development timelines[22] Operational Challenges - Regulatory and legal challenges, including opposition to the Project, may impact operational timelines and costs[28] - Labor shortages and disruptions may impact the construction and operational phases of the Project[28] - The company relies on outside consultants for critical services, which poses risks to project execution and management[28] - The company is subject to industry-wide risks, including competition and availability of necessary resources for project development[28] Market Risks - Changes in gold and antimony commodity prices could significantly affect the company's revenue and profitability[28] - Future events and economic conditions may differ materially from current assumptions, affecting the company's performance[24] Project Updates - The company has updated its Technical Report Summary, focusing on permitting, exploration drilling, and financial analyses related to the Stibnite Gold Project[38]

Financial Position and Capital Needs - The company has an accumulated deficit of $342.2 million from inception through December 31, 2025, and expects to continue incurring losses in the future [72]. - The company has never generated revenue from product sales and does not anticipate doing so for at least four years [71]. - The company will need to raise additional capital in the near future to fund operations and research and development programs for the next 12 months [72]. - The company has limited capital and substantial accumulated deficit, raising concerns about its ability to fund operations and research [70]. - The company expects that its current cash position will not be sufficient to fund operations over the next 12 months, indicating a potential need for significant additional capital [193]. Clinical Development Risks - A Phase 2a study for the CC-42344 Influenza A product candidate must be redone due to an insufficient infection rate, resulting in a $6.3 million investment that may be partially lost [83]. - The company is subject to various risks and uncertainties in pharmaceutical product development, making it difficult to predict expenses and profitability [76]. - The company’s ability to generate revenue and achieve profitability depends on successfully completing clinical trials and obtaining regulatory approvals [73]. - The company may face significant delays or failures in clinical trials, impacting its ability to generate product revenues [109]. - Approximately 70% of drugs proceed past Phase 1 studies, 33% past Phase 2, and only 25%-30% past Phase 3 in the FDA approval process, highlighting the challenges in drug development [107]. - Adverse events observed during clinical trials could lead to interruptions or halts in trials, negatively impacting regulatory approval chances [116]. Competition and Market Dynamics - The company faces significant competition from major companies that have developed vaccines or treatments, which could adversely affect its market share [84]. - The biotechnology and pharmaceutical industries are intensely competitive, with competitors having greater financial and technical resources, which could adversely affect the company's operating results [146]. - The company’s product candidates are in preclinical or early clinical development stages, facing competition from existing approved products and other candidates in development [147]. - Market acceptance of product candidates will depend on factors such as clinical safety, efficacy, pricing, and reimbursement policies from third-party payors [158][159]. - The company may struggle to achieve profitability if adequate coverage and reimbursement are not available for its product candidates, especially with ongoing changes in healthcare policies [161]. Regulatory and Compliance Challenges - The company must comply with current Good Clinical Practices (cGCPs) to ensure the credibility of clinical data, with non-compliance potentially leading to additional trials [99]. - Regulatory authorities may impose restrictions on approved products, including additional post-marketing testing requirements or withdrawal of approval [121]. - The company has limited experience in managing preclinical development and clinical trials, which may hinder the ability to obtain marketing approvals [129]. - The company is subject to various federal and state healthcare fraud and abuse laws, and non-compliance could result in significant penalties [172]. Intellectual Property and Legal Risks - The company relies on a combination of patents and trade secrets to protect intellectual property, but there is no guarantee that these protections will be effective [131]. - Third-party intellectual property infringement claims could delay development and commercialization efforts, impacting future prospects [135]. - The company may face significant litigation expenses and management distraction from defending against intellectual property claims [138]. - The company may need to obtain additional licenses from third parties to advance research or commercialize product candidates, which could significantly harm its business if not acquired on reasonable terms [143]. - The company may face expensive and time-consuming lawsuits to protect its patents, which could result in adverse outcomes affecting patent validity [140]. Operational and Management Challenges - The company has experienced delays and increased costs in research due to staffing shortages at CROs caused by the COVID-19 pandemic [89]. - The company currently has 10 full-time employees and plans to expand its workforce, which may pose management challenges and operational disruptions [171]. - Future partners may not allocate sufficient resources for the commercialization of product candidates, impacting revenue generation [165]. - The company lacks a sales and marketing team experienced in pharmaceutical product distribution, which may hinder revenue generation from product sales [164]. Market and Economic Conditions - The volume of drug pricing-related legislation is increasing, which could disrupt access to medicines and reduce the potential market for the company's products [162]. - The company faces uncertainties surrounding tariffs and geopolitical conflicts, which could lead to prolonged inflation and reduced economic activity [191]. - The company is subject to significant market volatility, with potential adverse effects on its business due to economic downturns or recessions [192]. - Cybersecurity threats pose risks to the company's proprietary technology and information, which could lead to significant operational disruptions and reputational damage [150][154]. Stock and Shareholder Considerations - The stock price and trading volume of the company have historically been volatile, with potential for temporary increases [183]. - The company has 7,222,821 warrants outstanding as of the date of the report, which could result in volatility and dilution to existing shareholders if exercised [197]. - Future sales of substantial amounts of shares in the public market could cause the market price of the company's common stock to decline significantly, even if business performance is strong [198]. - The absence of research coverage from major brokerage firms could limit the development of an active market for the company's common stock, impacting its ability to attract new investors [200]. - The company may issue preferred stock that could complicate third-party acquisitions and potentially depress its stock price [201].

Clinical Trials and Product Development - The company reported positive topline results from the SELVA Phase 3 study, achieving a +2.13 improvement on the mLM Investigator Global Assessment (p<0.001) for QTORIN rapamycin in treating microcystic lymphatic malformations [558]. - In the SELVA study, 95% of participants aged ≥ 6 years showed at least a 1-point improvement, with 86% rated as "Much Improved" (+2) or "Very Much Improved" (+3) [563]. - The company has received Breakthrough Therapy Designation, Fast Track Designation, and Orphan Drug Designation from the FDA for QTORIN rapamycin, along with a clinical trials grant of up to $2.6 million [566]. - The TOIVA Phase 2 study for cutaneous venous malformations showed 73% of participants improved at Week 12, with 67% rated as "Much Improved" (+2) or "Very Much Improved" (+3) (p<0.001) [568]. - The company plans to initiate a Phase 3 pivotal study for cutaneous VMs in the second half of 2026, following a Preliminary Breakthrough Therapy Designation Advice meeting with the FDA [570]. - The QTORIN pitavastatin product candidate for disseminated superficial actinic porokeratosis is set to enter a Phase 2 study in the second half of 2026, with no FDA-approved therapies currently available for this condition [576]. - The company is expanding its QTORIN rapamycin development program to include clinically significant angiokeratomas, with an estimated 50,000 diagnosed patients in the U.S. [571]. - QTORIN rapamycin was well-tolerated in clinical trials, with 70% of participants experiencing treatment-emergent adverse events, all rated mild or moderate [564]. Financial Performance and Expenses - The company anticipates significant operating losses and increased expenses as it advances product candidates through clinical trials and regulatory submissions [586]. - Research and development expenses are expected to increase substantially as the company invests in late-stage clinical development and regulatory approvals for QTORIN rapamycin [590]. - Research and development expenses for the year ended December 31, 2025 were $22.8 million, a significant increase of 180% compared to $8.2 million in 2024 [606]. - General and administrative expenses rose to $15.8 million in 2025, up 167% from $5.9 million in 2024, primarily due to increased headcount and professional services [607]. - The net loss for the year ended December 31, 2025 was $41.7 million, compared to a net loss of $17.4 million in 2024, reflecting an increase of 139% [616]. - The company incurred a net cash used in operating activities of $25.0 million for the year ended December 31, 2025 [617]. - Net cash used in operating activities for 2025 was $25.0 million, compared to $10.8 million in 2024, indicating increased operational costs [629]. - The company incurred increased research and development expenses due to heightened efforts in 2025, contributing to the overall rise in operational costs [630]. - The company expects to incur significant commercialization expenses related to its product candidates if regulatory approvals are obtained [622]. Financing and Capital Structure - The PIPE Financing raised approximately $78.9 million, consisting of about $60.0 million in cash and the conversion of approximately $18.9 million of convertible notes [579]. - The company entered into a Contingent Value Rights Agreement, granting stockholders one CVR for each share held, with a payout of approximately $2.0 million related to research and development tax credits in January 2026 [580]. - Legacy Palvella issued convertible notes totaling approximately $18.4 million, with a maturity date of June 3, 2027, unless converted earlier upon FDA approval of QTORIN rapamycin [581]. - Under the Ligand Agreement, Ligand has made payments totaling $15.0 million for the development of QTORIN rapamycin, with $5.0 million in potential future milestone payments remaining [583]. - The Ligand Agreement includes $15.0 million in funding for QTORIN rapamycin development, with potential milestone payments of up to $8.0 million, of which $5.0 million remains [634][642]. - The effective interest rate for royalty payments under the Ligand Agreement was 44.9% as of December 31, 2025, reflecting the risk-adjusted cash flow estimates [645]. - In February 2026, the company completed a public offering resulting in net proceeds of approximately $215.8 million from the sale of 1,840,000 shares at $125.00 per share [619]. Tax and NOL Carryforwards - As of December 31, 2025, the company had federal and state NOL carryforwards of $129.4 million and $113.3 million, respectively, which may offset future taxable income [603]. - The company has German corporate income tax and trade tax NOL carryforwards of approximately $219.4 million and $215.1 million, respectively, which do not expire under current laws [604]. Macroeconomic and Operational Risks - The company is closely monitoring macroeconomic risks, including inflation and geopolitical factors, which could impact its business operations [584]. - The estimated future net sales for products based on QTORIN rapamycin are subject to significant variability and uncertainty, impacting the company's financial projections [644]. - The company anticipates increased capital outlays and operating expenditures associated with current and future product development programs [628]. Other Financial Information - Other (expense) income includes non-cash interest expense related to future royalty payments and fair value adjustments for derivative liabilities [597]. - Interest income for the year ended December 31, 2025 was $2.6 million, a substantial increase from $0.6 million in 2024 [615]. - The company recorded interest expense of approximately $5.8 million related to the royalty agreement in 2025, compared to $3.9 million in 2024 [609]. - Net cash provided by financing activities was $87.1 million in 2024, primarily from a Business Combination and PIPE Financing, while 2025 saw a net cash outflow of $0.7 million [631][632]. - The company recorded a contingent rights value liability of approximately $2.2 million related to research and development tax credits as of December 31, 2025 [650]. - Future lease payments for office space in Wayne, Pennsylvania, total $0.7 million for the remaining term [633]. - Stock-based compensation is accounted for based on fair values, with estimates influenced by various factors including stock price volatility and expected term of awards [651].

Management Fees and Profit Allocation - The manager entered into offsetting management services agreements with five subsidiaries, which may vary in management fees based on future agreements[105] - The quarterly management fee is calculated as 0.5% of adjusted net assets, resulting in a hypothetical fee of $450,000 based on total assets of $100 million[108] - Total offsetting management fees from acquired companies amounted to $400,000, leading to a net quarterly management fee payable of $50,000[108] - Transaction services agreements allow the manager to charge fees based on a tiered structure: 2.0% for the first $50 million, 1.5% for the next $50 million, and 1.0% for amounts over $100 million[110] - The manager's profit allocation is set at 20% of profits exceeding an 8% hurdle rate, calculated based on the subsidiary's net income since acquisition[120] - The termination fee for the management services agreement is calculated as two times the sum of the quarterly management fees for the four quarters preceding termination[119] - The company is responsible for reimbursing the manager for costs incurred on its behalf, excluding overhead and costs related to unpursued acquisitions[115][116] - The board of directors will review and approve the manager's profit allocation calculation, which is not paid annually but upon specific trigger events[121][126] - The calculation of the manager's profit allocation will undergo a "true-up" process based on available financial statements, potentially delaying realization of benefits[125] - Any disputes regarding the manager's profit allocation calculation will be resolved by independent accounting firms, with their determination being binding[127] - The manager's profit allocation will be calculated based on a total profit allocation amount that exceeds the business' level 1 hurdle amount, which is based on an 8% annualized hurdle rate[128] - For Company A, a capital gain of $25 million was realized over its net book value at the time of sale, with a contribution-based profit of $5 million since acquisition[133] - Company B's contribution-based profit since acquisition is $7 million, with cumulative gains and losses amounting to $20 million[134] - The total profit allocation amount for Company A is $30 million, while for Company B it is $27 million[134] - The level 1 hurdle amount for Company A is calculated to be $12 million, and for Company B it is $10 million[134] - The manager's profit allocation for Company A is $6 million, while for Company B it is $1.4 million[134] - The high-water mark allocation for Company B is $4 million, which is deducted from the manager's profit allocation[134] - Tax distributions will be paid to the manager if taxable income is allocated but not realized through distributions equal to the taxes payable[129] - The management services agreement termination does not affect the manager's rights to profit allocations unless the put right is exercised[132] - The put price upon termination of the management services agreement will be based on two separate calculations of the manager's profit allocation as of the exercise date[139] Business Operations and Market Presence - The construction business accounted for approximately 97.6% and 76.1% of total revenues for the years ended December 31, 2025, and 2024, respectively[147] - The company has expanded its coverage area to include the greater Las Vegas metro area, southern Utah, and northern Arizona, which are among the fastest-growing economic regions in the Western U.S.[148] - As of December 31, 2025, the construction companies employed 170 full-time employees, with no representation by labor unions[171] - CMD utilizes in-house technology programs and machinery, including CNC machinery, to enhance production efficiency and manage project workflows[153] - The company has established long-term relationships with builders such as Toll Brothers and Whiting Turner Construction, contributing to high customer retention levels[160] - The pricing strategy focuses on delivering quality and performance at a value-based price target, offering better features than competitors[156] - The company sources raw materials from multiple suppliers, with a significant portion coming from Asian-based suppliers, which may be subject to import tariffs[157] - The construction business is subject to various environmental regulations, and compliance efforts do not eliminate the risk of potential liabilities or penalties[173] - The company has a strong regional presence in the greater Las Vegas and Boise metro areas, which are key markets for growth opportunities[169] - CMD's competitive strengths include a superior reputation, established blue-chip clients, and streamlined operations that enhance efficiency and profitability[168] - The automotive supplies business accounted for approximately 2.4% and 23.9% of total revenues for the years ended December 31, 2025 and 2024, respectively[177] - The company has established long-term relationships with suppliers, with many spanning over 15 years, and has implemented volume discounts to offset increased material and labor costs[192] - The company has been granted 37 patents, with about half being utility patents that protect product functionality, providing a competitive advantage[206] - The company is expanding its warehouse space and operations in Nevada to capture additional bid opportunities in the ready-to-assemble cabinet segment[179] - The top-selling product, the Bad Boy horn, is designed for easy installation and produces a sound that is two times louder than factory horns[181] - The company has entered the motorcycle and industrial aftermarket segments, as well as a product line for the marine parts aftermarket[201] - The company has a diverse customer base, including major retailers like Amazon and AutoZone, with many customer relationships lasting over 10 years[200] - The company is pursuing growth through new product development and expanding online sales platforms, including its own website and major e-commerce sites[205] - The company has implemented an integrated EDI system to improve order fulfillment efficiency and reduce errors[202] - The company is focused on geographic expansion into areas like Idaho and Nevada, targeting both residential and commercial projects[179] - The company is subject to various federal, state, and local laws and regulations, including those related to labor, discrimination, and data privacy, but compliance has not adversely affected operations to date[210] - There are no applicable quantitative and qualitative disclosures about market risk for the company[506]

Financial Performance - Cocrystal Pharma reported a net loss of $8.8 million, or $0.78 per share, for 2025, a significant decrease from a net loss of $17.5 million, or $1.72 per share, in 2024[18]. - Net loss improved from $(17,504,000) in 2024 to $(8,831,000) in 2025, reflecting a reduction of about 49.6%[25]. - Net loss per common share improved from $(1.72) in 2024 to $(0.78) in 2025, a decrease of approximately 54.4%[25]. Expenses - Research and development expenses for 2025 were $5.1 million, down from $12.5 million in 2024, primarily due to the winddown of the Phase 2a influenza study[17]. - Total operating expenses decreased from $17,878,000 in 2024 to $9,019,000 in 2025, a decrease of approximately 49.6%[25]. - Research and development expenses decreased significantly from $12,537,000 in 2024 to $5,055,000 in 2025, a reduction of about 59.7%[25]. - General and administrative expenses decreased to $4.0 million in 2025 from $5.3 million in 2024, attributed to reductions in compensation and corporate expenses[17]. - General and administrative expenses decreased from $5,341,000 in 2024 to $3,964,000 in 2025, a decline of approximately 25.7%[25]. Assets and Liabilities - Cocrystal reported unrestricted cash of $7.7 million as of December 31, 2025, compared to $9.9 million at the end of 2024[18]. - Total current assets decreased from $11,580,000 in 2024 to $8,134,000 in 2025, a decline of approximately 30.5%[23]. - Total assets decreased from $13,456,000 in 2024 to $9,712,000 in 2025, representing a reduction of about 28.5%[23]. - Total liabilities decreased from $3,933,000 in 2024 to $3,381,000 in 2025, a reduction of about 14.0%[23]. - Stockholders' equity decreased from $9,523,000 in 2024 to $6,331,000 in 2025, a decline of approximately 33.0%[23]. Share Information - The company had working capital of $5.9 million and 11.3 million common shares outstanding as of December 31, 2025[18]. - Weighted average number of common shares outstanding increased from 10,174 in 2024 to 11,290 in 2025, an increase of about 10.9%[25]. Product Development - The company is developing CDI-988, the first oral antiviral candidate for norovirus treatment, with a Phase 1b study currently underway at Emory University[4]. - CDI-988 has shown in vitro activity against multiple norovirus strains and is also being explored for its potential against coronaviruses[8]. - Cocrystal plans to continue the development of oral CC-42344 as a treatment for pandemic and seasonal influenza A, following favorable Phase 1 results[15]. Market Opportunity - Norovirus causes approximately 685 million global cases annually, with a $60 billion economic impact, highlighting a significant unmet medical need[7]. - The global COVID-19 therapeutics market is projected to exceed $16 billion annually by the end of 2031, indicating a substantial market opportunity for Cocrystal's antiviral products[13].

Financial Performance - Full-year net sales for SPAR Group, Inc. reached $136 million, representing a 3.3% increase compared to 2024[2] - The company reported a GAAP net loss of $24.6 million, or $1.04 per diluted share, compared to a net loss of $3.2 million, or $0.13 per diluted share, in 2024[12] - Adjusted EBITDA loss was $8.6 million, a decline from a positive adjusted EBITDA of $5.6 million in the previous year[12] - Net revenues for the three months ended December 31, 2025, were $22,017 thousand, a decrease of 33.3% compared to $33,043 thousand for the same period in 2024[20] - Gross profit for the twelve months ended December 31, 2025, was $21,693 thousand, down 35.4% from $33,597 thousand in 2024[20] - The company reported a net loss of $24,626 thousand for the twelve months ended December 31, 2025, compared to a net loss of $2,687 thousand in 2024[26] - SPAR Group, Inc. reported a net loss of $16.323 million for Q4 2025, compared to a net loss of $5.704 million in Q4 2024, indicating a significant increase in losses[28] - Adjusted net loss attributable to SPAR Group, Inc. was $9.339 million for Q4 2025, up from $1.181 million in Q4 2024, reflecting a worsening financial position[28] - Consolidated EBITDA for Q4 2025 was $(13.060) million, compared to $(5.308) million in Q4 2024, showing a decline in operational performance[30] - Adjusted EBITDA attributable to SPAR Group, Inc. for the twelve months ended December 31, 2025, was $(8.562) million, down from $5.616 million in the previous year[30] Cost Management - Consolidated gross margin declined to 15.9% of sales from 20.5% in the prior year, primarily due to the service mix in the U.S.[12] - SPAR Group aims to reduce SG&A expenses to below $6.5 million per quarter, targeting a medium-term goal of 15% or below[5] - Restructuring costs and severance recognized in 2025 amounted to $4.8 million, compared to zero in the prior year[12] - The company incurred restructuring costs and severance of $4,765 thousand for the twelve months ended December 31, 2025[20] - The company incurred $747,000 in restructuring costs and severance in Q4 2025, contributing to the overall losses reported[30] Liquidity and Capital Structure - The company maintained positive working capital of $14.7 million as of December 31, 2025, with $3.3 million in cash and cash equivalents[9] - SPAR Group completed a $4 million private debt raise in early 2026 to enhance liquidity and support future growth initiatives[6] - Total current assets decreased to $31,436 thousand as of December 31, 2025, from $45,996 thousand as of December 31, 2024[24] - Total liabilities increased to $43,437 thousand as of December 31, 2025, compared to $32,125 thousand in 2024[24] - Cash and cash equivalents at the end of the year were $3,262 thousand, down from $18,221 thousand at the beginning of the year[26] - Interest expense for the twelve months ended December 31, 2025, was $2,415 thousand, compared to $2,191 thousand in 2024[20] - The company’s total interest expense increased to $694,000 in Q4 2025 from $544,000 in Q4 2024, reflecting higher borrowing costs[30] Business Development and Strategy - The company is focusing on higher margin core merchandising work and tech-enabled services to improve gross margin rates in 2026[4] - SPAR Group's business development pipeline shows promise with recent customer wins, supported by strategic RetailTech partnerships[4] - The company reported a significant decrease in net revenues from international operations, with South Africa contributing $0 thousand in 2025 compared to $8,277 thousand in 2024[22] Shareholder Impact - Basic loss per common share attributable to SPAR Group, Inc. from continuing operations was $(1.04) for the year ended December 31, 2025, compared to $(0.09) in 2024[20] - Diluted loss per share attributable to SPAR Group, Inc. was $(0.68) for Q4 2025, compared to $(0.24) for Q4 2024, indicating a decline in shareholder value[28] - The company reported a deferred tax valuation allowance of $5.722 million for Q4 2025, which may impact future tax liabilities[28] - SPAR Group, Inc. experienced a loss from continuing operations of $16.323 million for Q4 2025, compared to a loss of $6.155 million in Q4 2024[30]

Exhibit 99.1 Elauwit Connection, Inc. Announces 154% Increase in Full Year 2025 Revenue Recurring Service Revenue Increases 151% New Sales Organization Producing Immediate Traction Activated, Contracted and Billed Units All Continue to Increase COLUMBIA, SC, March 31, 2026 – Elauwit Connection, Inc. (NASDAQ: ELWT) ("Elauwit," the "Company," "we," or "our"), a national managed services provider of turnkey broadband and property-wide WiFi networks serving multifamily, student housing, and senior living commun ...

Revenue Growth - 1847 Holdings reported a 207% increase in revenue for 2025, reaching $48.3 million, compared to $15.7 million in 2024[3] - CMD generated $40.5 million in revenue for 2025, reflecting a 32% year-over-year growth on a pro forma basis[1] - Gross profit increased to $23.9 million in 2025, up 208% from $7.8 million in 2024[2] Profitability Improvement - The company achieved a net income of $66.5 million in 2025, a significant turnaround from a net loss of $106.8 million in 2024[3] - Total Adjusted EBITDA for the company was reported at $9.8 million for 2025, compared to a loss of $3.3 million in 2024[3] - CMD's Adjusted EBITDA rose to $14.3 million in 2025, an 84% increase from $7.7 million in the previous year[1] - Operating income improved to $4.0 million in 2025, compared to a loss of $12.0 million in 2024, marking a $16.0 million improvement[3] Strategic Initiatives - CMD has a record bid pipeline exceeding $160 million, providing strong visibility into future revenue opportunities[4] - The company is exploring strategic alternatives for CMD, including potential refinancing or sale, to enhance shareholder value[4] - 1847 Holdings is actively repositioning its subsidiaries to capture new opportunities in e-commerce logistics and high-growth construction markets[4] Investor Relations - Crescendo Communications, LLC is the contact for investor relations inquiries[21]