Loan Portfolio and Lending Activities - As of December 31, 2024, the total loan portfolio amounted to $2.1 billion, with $1.27 billion in fixed-rate loans and $831.7 million in adjustable-rate loans[41]. - Commercial real estate (CRE) loans totaled $590.5 million, representing 23.3% of the gross loan portfolio, including $245.2 million in multi-family residential loans[47]. - The Company has a lending authority limit of $35 million, with the largest lending relationship at $42.6 million, secured by multi-family real estate property[45]. - The Company originated $715.7 million of one-to-four-family mortgages in 2024, with $564.8 million sold to investors[64]. - One-to-four-family residential mortgage loans represented 24.4% of the gross loan portfolio, totaling $617.3 million as of December 31, 2024[64]. - The commercial business loan portfolio totaled $299.9 million, or 11.7% of the gross loan portfolio, as of December 31, 2024[75]. - The total outstanding construction and development loans increased to $330.7 million in 2024, up from $303.1 million in 2023, representing an increase of 9.1%[53]. - The construction and development loan portfolio totaled $330.7 million, accounting for 13.1% of the total gross loan portfolio, with $223.3 million allocated to speculative residential projects[218]. - The Company processed approximately 162 loans and funded about $85.6 million under its mortgage warehouse lending program during the year ended December 31, 2024[77]. - The residential mortgage warehouse lending program had an outstanding balance of $2.2 million as of December 31, 2024, compared to $573,000 at the end of 2023[223]. Financial Performance and Credit Quality - Total loans originated in 2024 amounted to $1,304,785,000, an increase of 7.4% from $1,214,485,000 in 2023[85]. - The allowance for credit losses (ACL) on loans was $31.9 million, or 1.26% of gross loans receivable, as of December 31, 2024, compared to $31.5 million, or 1.30% in 2023[105]. - The provision for credit losses on loans for 2024 was $5.6 million, slightly down from $5.8 million in 2023, attributed to an increase in net charge-offs[105]. - Total net charge-offs for the year were $5,299 thousand, compared to $2,228 thousand in 2023, reflecting a 138.5% increase[108]. - Nonaccrual loans as a percentage of total loans outstanding increased to 0.54% in 2024 from 0.45% in 2023[108]. - The percentage of ACL on loans as a percentage of nonaccrual loans decreased to 234.32% in 2024 from 287.93% in 2023[108]. - The allocation of ACL for real estate loans was $14,441 thousand, accounting for 63.8% of total loans in 2024[109]. - The Company enhanced its stress testing to mitigate interest rate reset risk, focusing on borrowers' abilities to absorb higher interest rates[90]. Deposits and Funding Sources - Total deposits decreased by $182.9 million, or 7.25%, to $2.339 billion as of December 31, 2024, compared to $2.522 billion in 2023[119]. - Brokered deposits decreased by $288.2 million, with total brokered deposits accounting for 6.1% of total deposits at $143.4 million as of December 31, 2024[117][119]. - Approximately $652.7 million of the deposit portfolio was uninsured as of December 31, 2024, indicating a significant portion of deposits exceeding FDIC insurance limits[121]. - The company’s total transaction and savings deposits were $1.311 billion, representing 56.02% of total deposits as of December 31, 2024[119]. - The company’s interest credited on deposits increased to $53.2 million in 2024 from $36.8 million in 2023[119]. - The company plans to consider additional leverage strategies within regulatory requirements to fund loan originations and increase net interest income[124]. Regulatory Compliance and Capital Ratios - The Company is regulated by the Washington State Department of Financial Institutions and the Federal Deposit Insurance Corporation[29]. - At December 31, 2024, 1st Security Bank's total risk-based capital ratio was 14.18%, exceeding the required minimum of 8.00%[167]. - The Tier 1 risk-based capital ratio was 12.93%, above the required minimum of 6.00%[167]. - The CET1 capital ratio stood at 12.93%, surpassing the minimum requirement of 4.50%[167]. - 1st Security Bank was categorized as "well capitalized" under the prompt corrective action regulations of the FDIC as of December 31, 2024[171]. - The capital conservation buffer required for 1st Security Bank is an additional CET1 capital greater than 2.5% of risk-weighted assets[165]. - The Federal Reserve requires all depository institutions to maintain reserves at specified levels, and 1st Security Bank was in compliance with these requirements as of December 31, 2024[188]. Employee and Community Engagement - The company has hired 118 new employees in 2024, increasing the total employee count to 567 as of December 31, 2024[152]. - Employee health benefits have not increased in employee contribution costs since 2014, demonstrating a commitment to employee welfare[148]. - The company provided approximately 6,000 volunteer hours in both 2024 and 2023, reflecting its dedication to community engagement[153]. - The 401k plan matches up to the first 5% of contributions for up to 4% of total salary, enhancing employee retirement benefits[148]. - The average tenure for management positions is eight years and two months, indicating stability within the leadership team[151]. - The company emphasizes a flexible work schedule to support work-life balance for employees[149]. Market Position and Competition - The Company focuses on relationship lending and aims to capitalize on new lending opportunities arising from recent market consolidations[39]. - The company faces strong competition in real estate loans from various financial institutions and aims to differentiate through high-quality, personalized service[132]. - As of June 30, 2024, 1st Security Bank holds a 1% share of aggregate deposits in its market area across 12 counties[133]. Risk Management - Risks associated with commercial and multi-family loans include higher delinquency rates and the need for detailed collateral evaluations[215]. - The company’s construction loans often include interest reserves, allowing borrowers to defer payments, which increases repayment risk[219]. - The commercial and industrial business loans are primarily based on borrower cash flow, which may be unpredictable, increasing credit risk[217]. - FS Bancorp's loan portfolio is predominantly secured by real estate, which may be adversely affected by economic downturns, impacting borrowers' repayment capabilities[206].

Financial Performance - The company reported Distributable Earnings, a key measure of financial performance, with an intention to pay out approximately 90% of these earnings to shareholders quarterly [43]. - Fee revenues for 2024 reached $4.7 billion, a 7% increase compared to 2023, while fee-related earnings increased by 10% to $2.5 billion [81]. - The company raised over $135 billion in total fundraising across flagship and complementary fund offerings in 2024 [78]. - Fee-bearing capital increased by $82 billion, or 18%, to $539 billion in 2024, with 87% being long-dated or perpetual [80]. Assets Under Management - As of December 31, 2024, the company had $1 trillion in Assets Under Management and $539 billion in Fee-Bearing Capital, with 87% of the Fee-Bearing Capital being long-dated or perpetual in nature [38][47]. - The renewable power and transition segment had $126 billion in AUM and $58 billion in Fee-Bearing Capital as of December 31, 2024, indicating strong growth potential in low-carbon energy investments [56]. - The infrastructure segment managed $202 billion in AUM and $97 billion in Fee-Bearing Capital as of December 31, 2024, focusing on essential goods and services across various sectors [61]. - As of December 31, 2024, the company has over $271 billion in assets under management (AUM) in real estate and $94 billion in fee-bearing capital [64]. Client and Employee Engagement - The company has over 2,300 clients, including some of the world's largest institutional investors, and continues to grow its private wealth channel, which represents over 8% of capital raised [39]. - The company employs over 2,500 investment and asset management professionals globally, supporting its diverse investment strategies and client service [40]. - The total number of full-time operating employees increased by 2% to approximately 250,000 in 2024 [98]. - The company has approximately 650 investment and asset management professionals dedicated to real estate strategies, supported by 24,500 operating employees [64]. Strategic Initiatives - The company is actively pursuing strategic M&A opportunities to expand its capabilities and enhance its growth trajectory [43]. - The company aims to deepen existing institutional relationships and develop new ones, while also accessing new distribution channels, including high net worth individuals and retail [38]. - BAM acquired a 51% stake in Castlelake's fee-related earnings and committed to invest approximately $1 billion in Castlelake's investment strategies and funds [93]. - The Catalytic Transition Fund raised $2.4 billion in its initial close, including a $1 billion anchor investment from ALTÉRRA [93]. - Pinegrove Ventures, managing approximately $10 billion in assets, was acquired to enhance BAM's venture investment platform focused on growth and technology [93]. Sustainability and Governance - BAM's sustainability policy aims for net-zero greenhouse gas emissions by 2050 and emphasizes strong governance and ethical standards [114][117]. - The company aims to achieve net zero emissions by 2050 or sooner across operationally managed investments, focusing on decarbonization as a material value-creation opportunity [132]. - The Board oversees major strategic initiatives and sustainability progress, ensuring alignment with shareholder interests [120]. - The company emphasizes the importance of managing sustainability risks and opportunities throughout the investment lifecycle, supported by investment teams [126]. Risk Management - The company maintains a strong risk management culture, focusing on proactive identification and management of risks across various areas [106]. - The company faces risks related to deficiencies in financial reporting and disclosures, which could adversely impact its reputation and financial condition [157]. - The company is subject to numerous laws and regulations that could result in financial penalties and damage to reputation in instances of non-compliance [164]. - The company is exposed to risks from catastrophic events, such as natural disasters and pandemics, which could materially impact operations [199]. Compliance and Regulatory Challenges - Regulatory compliance obligations are increasing, which may lead to higher costs and impact profitability [165]. - The company operates in multiple jurisdictions, including the U.S., E.U., and Canada, which may introduce additional regulatory requirements and compliance costs [166]. - The company is subject to anti-bribery and corruption laws globally, which may lead to significant liabilities and reputational harm if not complied with [176]. - Compliance with evolving sustainability regulations may result in additional costs and impact profitability, particularly under the E.U. Sustainable Finance Disclosure Regulation [205]. Financial Risks - The company may face increased interest costs due to rising interest rates, which could negatively affect financial performance and asset values [187]. - Political instability and changes in government policy in various jurisdictions could adversely impact the value of the company's investments [190]. - Inflationary pressures could affect the company's managed assets and overall financial performance, with potential for increased tariffs and trade barriers adding uncertainty [198]. - Foreign exchange rate fluctuations could adversely impact the company's financial position, especially in markets where the U.S. dollar is not the local currency [183].

Revenue and Sales Performance - The company reported revenue of $666.3 million for 2024, a decrease of approximately 4% compared to $693.5 million in 2023, despite an increase in sales volume from 3.5 million tons to 4.0 million tons [497]. - The average revenue per ton sold decreased by 17% from $201 in 2023 to $167 in 2024, driven by volatility in index-based pricing for export sales [498]. - Non-GAAP revenue (FOB mine) decreased to $559.3 million in 2024 from $588.6 million in 2023, a decline of $29.4 million or 5% [515]. - Tons sold increased to 3.99 million in 2024, up by 534,000 tons or 15.5% from 3.46 million tons in 2023 [515]. - Total revenue for 2024 was $666,295, a decrease of 3.9% from $693,524 in 2023 [615]. Income and Profitability - Net income for 2024 was $11.2 million, significantly lower than $82.3 million in 2023, primarily due to decreased metallurgical coal price indices [494]. - Adjusted EBITDA for 2024 was $105.8 million, down from $182.1 million in 2023, reflecting the impact of lower coal prices and macroeconomic factors [494]. - Operating income decreased to $16,636 in 2024, compared to $95,245 in 2023, reflecting a decline of 82.5% [615]. - Net income for 2024 decreased to $11.2 million from $82.3 million in 2023, representing a decline of 86.4% [512]. - The company reported a basic earnings per share of $0.11 for Class A shares in 2024, down from $1.06 in 2023 [615]. Capital Expenditures and Investments - Total capital expenditures for 2024 were $68.8 million, down from $82.9 million in 2023, reflecting progress on strategic growth projects [488]. - The Company expects capital expenditures of approximately $60-70 million in 2025, including roughly $20 million for growth capital related to increasing production at the Elk Creek Complex and Berwind mine [551]. - The Company spent $68.8 million on capital additions in 2024, down from $82.9 million in 2023, reflecting substantial progress in production growth initiatives [550]. Debt and Financing - Interest expense decreased to approximately $6.1 million in 2024 from $8.9 million in 2023, primarily due to debt repayment from previous acquisitions [507]. - The company completed a debt offering of $57.5 million in Senior Unsecured Notes due 2029, with an interest rate of 8.375% per annum [535]. - The company repaid $38.2 million more in acquisition-related financing in 2023 compared to 2024, resulting in a net cash used for financing activities decrease of $31.7 million [524]. - The Company had no valuation allowance for deferred income taxes as of December 31, 2024 [574]. Assets and Liabilities - Total current assets decreased to $167,634 in 2024 from $189,739 in 2023, a decline of 11.6% [613]. - Total liabilities increased to $311,880 in 2024, up from $296,231 in 2023, an increase of 5.3% [613]. - The Company’s total costs and expenses increased to $649,659 in 2024 from $598,279 in 2023, an increase of 8.6% [615]. - The Company has a total of $158.4 million in significant contractual obligations as of December 31, 2024, with $20.2 million due in the next year [552]. Production and Operational Performance - The company produced 3.7 million tons of coal in 2024, an increase from 3.2 million tons in 2023, with expectations for 2025 production volumes between 4.2 and 4.6 million tons [489]. - Cost of sales increased by approximately 8% to $533.3 million in 2024, with cost per ton sold decreasing by 6% from $143 in 2023 to $134 in 2024 [500]. - Total inventories increased to $43,358,000 in 2024 from $37,163,000 in 2023, representing a growth of about 16% [633]. Market Conditions and Future Outlook - The company expects metallurgical coal prices to remain volatile in the near term due to macroeconomic conditions and reduced steel demand [498]. - The company is exposed to fluctuations in market pricing due to its shift towards more export sales, which increases revenue volatility [581]. - The company continues to assess its rare earth elements and critical minerals deposit in Wyoming, with plans to begin construction of a pilot processing facility in mid to late 2025 [491]. Internal Controls and Compliance - The Company has identified a material weakness in internal control over financial reporting due to insufficient accounting resources [600]. - The Company’s internal control over financial reporting was not effective as of December 31, 2024, based on the criteria established by COSO [598]. - The Company had no significant uncertain tax positions requiring liability recognition as of December 31, 2024, and 2023, indicating a strong compliance position [655].

Financial Performance - The company reported revenue of $666.3 million for 2024, a decrease of approximately 4% compared to $693.5 million in 2023, despite an increase in coal sales volume from 3.5 million tons to 4.0 million tons [497]. - Net income for 2024 was $11.2 million, significantly lower than $82.3 million in 2023, influenced by decreased metallurgical coal price indices and prior year insurance proceeds [494]. - Adjusted EBITDA for 2024 was $105.8 million, down from $182.1 million in 2023, reflecting the impact of lower coal prices despite increased sales volume [494]. - Total revenue for 2024 was $666.3 million, a decrease of 3.9% from $693.5 million in 2023 [615]. - Operating income decreased significantly to $16.6 million in 2024 from $95.2 million in 2023, reflecting a decline of 82.5% [615]. - Net income for 2024 decreased to $11,192,000 from $82,313,000 in 2023, representing a decline of approximately 86.4% [622]. - Cash flows provided by operating activities decreased by $48.4 million to $112.7 million in 2024 compared to $161.0 million in 2023 [522]. Sales and Production - The average revenue per ton sold decreased by 17% from $201 in 2023 to $167 in 2024, primarily due to volatility in index-based pricing for export sales [498]. - The company produced 3.7 million tons of coal in 2024, an increase from 3.2 million tons in 2023, with expectations for 2025 production volumes between 4.2 and 4.6 million tons [489]. - The company entered into forward sales contracts for approximately 1.5 million tons at an average fixed price of $152 per ton for North American customers [517]. - During 2024, sales to two customers accounted for 22% of total revenue, a decrease from 41% in 2023, indicating improved customer diversification [661]. Capital Expenditures and Investments - Total capital expenditures for 2024 were $68.8 million, down from $82.9 million in 2023, reflecting progress on strategic growth projects [488]. - Capital expenditures for 2024 were $55,236,000, compared to $82,904,000 in 2023, indicating a reduction of about 33.6% [622]. - The Company anticipates capital expenditures of approximately $60-70 million in 2025, including about $20 million for growth capital at the Elk Creek Complex and Berwind mine [551]. - The company continues to explore rare earth elements and critical minerals in Wyoming, with a $6.1 million matching grant received for developing a pilot processing facility expected to begin construction in mid to late 2025 [491]. Costs and Expenses - Cost of sales increased by approximately 8% to $533.3 million in 2024, with cost per ton sold decreasing from $143 in 2023 to $134 in 2024 [500]. - Non-GAAP cash cost per ton sold (FOB mine) improved to $105 in 2024 from $110 in 2023, a decrease of $5 [516]. - Cash paid for interest decreased to $4,756,000 in 2024 from $8,113,000 in 2023, a decline of about 41.5% [622]. - Total depreciation, depletion, and amortization for 2024 was $65.615 million, up from $54.252 million in 2023, reflecting a year-over-year increase of approximately 20.5% [674]. Debt and Financing - Interest expense decreased to approximately $6.1 million in 2024 from $8.9 million in 2023, primarily due to debt repayment from previous acquisitions [507]. - The company completed a debt offering of $57.5 million in Senior Unsecured Notes due 2029, with an interest rate of 8.375% per annum [535]. - The Company had total liabilities for finance leases amounting to $13.7 million, with $6.2 million due in 2025 and $7.5 million due thereafter [540]. - The Company entered into an amended Revolving Credit Facility with a maturity date of May 3, 2029, providing an initial commitment of $200 million and an accordion feature for an additional $75 million [540]. Assets and Liabilities - Total current assets decreased to $167.6 million in 2024 from $189.7 million in 2023, a reduction of 11.6% [613]. - Total liabilities increased to $311.9 million in 2024, up from $296.2 million in 2023, marking a rise of 5.3% [613]. - The total stockholders' equity decreased to $362.8 million in 2024 from $369.6 million in 2023, a decline of 1.9% [613]. - The total liability for asset retirement obligations was $31.1 million at December 31, 2024, reflecting estimates of future reclamation costs [555]. Compliance and Internal Controls - The Company has identified a material weakness in internal control over financial reporting due to insufficient accounting resources [600]. - The Company’s internal control over financial reporting was not effective as of December 31, 2024, based on the criteria established by COSO [598]. - The Company is in compliance with all debt covenants under the Revolving Credit Facility, including maintaining a fixed charge coverage ratio of not less than 1.10:1.00 [544]. Strategic Initiatives - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year [615]. - The acquisition of Ramaco Coal is expected to reduce royalty expenses and support the company's expansion into advanced carbon products and materials from coal [536]. - The company has ongoing initiatives for the potential recovery of rare earth elements from coal and carbonaceous ore [624]. - The company is involved in collaborative arrangements with government researchers related to Wyoming initiatives [624].

Financial Performance - The company reported no revenues for the three and nine months ended January 31, 2025, and 2024 [120]. - Total operating expenses for the three months ended January 31, 2025, were $960,252, a decrease of $908,694 (approximately 48%) compared to the same period in 2024 [121]. - For the nine months ended January 31, 2025, total operating expenses were $3,335,998, a decrease of $2,017,794 (approximately 38%) compared to the same period in 2024 [123]. - Other income (expenses), net, for the three months ended January 31, 2025, was $(2,085,076), a significant decline from $1,249,490 in the same period in 2024 [125]. - Other income (expenses), net, for the nine months ended January 31, 2025, was $22,242,466, an increase of $17,901,612 (approximately 413%) compared to $4,340,854 in the same period in 2024 [126]. - Net cash used in operating activities for the nine months ended January 31, 2025, was $(1,937,925), compared to $(1,818,499) in the same period in 2024 [129]. - Cash and cash equivalents as of January 31, 2025, totaled approximately $16.4 million, down from approximately $50 million as of April 30, 2024 [134]. - Cash used in financing activities for the nine months ended January 31, 2025, was $(24,857,608), a significant increase compared to $(11,039) in the same period in 2024 [129]. Research and Development - The company is focused on developing cellular therapies for cancer using its proprietary Cell-in-a-Box® technology, specifically targeting locally advanced, inoperable, non-metastatic pancreatic cancer (LAPC) [110]. - The company has curtailed spending on development programs until the Strategic Scientific Committee completes its evaluation and a new framework for the relationship with SG Austria is established [111]. - The FDA placed the company's Investigational New Drug Application (IND) on clinical hold, requiring additional studies and data before lifting the hold [115]. - The company has successfully completed various stability studies and additional studies requested by the FDA, including biocompatibility studies [117]. - The company is in the process of providing data to the FDA to resolve non-clinical issues and enable review of a new clinical protocol for LAPC [117]. - The company has determined that it will no longer pursue research and development in the treatment of diabetes [110]. - The Strategic Scientific Committee is reviewing risks associated with the company's development programs and its relationship with SG Austria [111]. - The company aims to ensure completion of production of encapsulated cells according to cGMP regulations for the planned clinical trial [118]. - The company is actively working to minimize risks regarding success and aims to provide accurate information to shareholders [119]. Investments and Financial Instruments - The company invested $7 million in TNF Pharmaceuticals, Inc. during the nine months ended January 31, 2025 [131]. - The total cost of service agreements related to the clinical hold on the IND submission is estimated to be approximately $212,000 [137]. - The Company accounts for its convertible note receivable at fair value, with subsequent changes recorded as non-operating income (loss) in the financial statements [142]. - The fair value of the convertible note receivable is estimated using inputs such as the fair value of the debtor's common stock, equity volatility, and the risk-free interest rate [142]. - The investment in preferred stock is classified as a Variable Interest Entity (VIE), but the Company is not the primary beneficiary [143]. - Changes in the fair value of the preferred stock are recognized in earnings at each reporting period, with initial fair value estimated using a Monte Carlo simulation [143]. - The warrants are recorded at fair value, with changes recognized in earnings, and the initial fair value determined using the Black Scholes Merton Method [144]. - A gain on investment was recognized for the excess of the fair value of the warrants over the investment amount [144]. Accounting Policies - The Company tests indefinite-lived intangible assets for impairment, assessing qualitative factors to determine the likelihood of impairment [145]. - If impairment is likely, the fair value of the asset is calculated, and an impairment charge is recorded if the carrying amount exceeds fair value [145]. - Recent accounting pronouncements are discussed in the "Summary of Significant Accounting Policies" section of the Quarterly Report [146]. - The Company’s filings, including Annual Reports and Quarterly Reports, are available on its website and the SEC's website [147].

Business Segments - The Company operates two reportable segments: title insurance issuance and tax-deferred real property exchange services[14]. - The Company’s exchange services division, ITEC and ITAC, provides tax-deferred exchange services, with income derived from fees and interest on client deposits[33]. - The company’s marketing of tax-deferred exchange services is integrated with its core title products[41]. Title Insurance Operations - Title insurance premiums written are primarily derived from North Carolina (34.4%), Texas (27.9%), South Carolina (8.8%), Georgia (7.6%), and Florida (7.2%) markets[9]. - The Company is licensed to write title insurance in 44 states and the District of Columbia, with primary operations in 21 states[26]. - The Company’s title insurance policies are issued based on a search of public records, with premiums recognized as revenue at the closing of related transactions[24]. - The reserve for claim losses is established from known claims and estimated losses based on historical experience[21]. - The Company’s title insurance subsidiaries are regularly assigned ratings by independent agencies to indicate their financial condition and claims paying ability[29]. - The title insurance industry is highly competitive, with the four largest companies holding over 80% of the market share in the United States[50]. Financial Performance - Revenues from reinsurance activities accounted for less than 1% of total premium volume for the last two years[31]. - The company met the statutory premium reserve requirements and minimum capital and surplus requirements in the states where it is licensed as of December 31, 2024[44]. - The company does not depend on any single customer, and the loss of any single customer would not materially affect its operations[52]. Employee Relations - As of December 31, 2024, the company had 521 full-time employees and 29 part-time employees, with no employees covered by collective bargaining agreements[58]. - The company considers its relationship with employees to be favorable, emphasizing the importance of recruiting and retaining qualified personnel[59]. Investment Strategy - The company's investment portfolio is primarily composed of municipal and federal U.S. government securities and investment-grade corporate fixed maturity securities[54]. - The company’s investment policy aims to maintain a high-quality portfolio while maximizing income, with a focus on investment-grade securities[54]. Marketing Strategy - The company’s marketing strategy includes targeting a broad range of customers in both residential and commercial market sectors of the real estate industry[39]. - The Company relies on key markets for a significant portion of its premiums, highlighting the importance of economic conditions in these regions[9]. - The company’s management services subsidiary provides consulting to help clients operate title insurance agencies successfully[34].

Financial Performance - The company reported net losses before noncontrolling interest of $163.3 million, $135.4 million, and $148.1 million for the years ended December 31, 2024, 2023, and 2022, respectively [222]. - As of December 31, 2024, the company had an accumulated deficit of $1,200.8 million [222]. - The company had approximately $358.3 million in cash, cash equivalents, and short-term investments as of December 31, 2024, which is expected to fund operations into mid-2027 [226]. - The company expects to incur substantial research and development expenses and may never achieve profitability [224]. Clinical Development and Regulatory Approval - The company is currently in Phase 3 clinical development for its lead product candidate, rilparencel, and has not generated any revenue to date [241]. - The company anticipates significant increases in expenses as it advances the development of rilparencel and other future product candidates through clinical trials [223]. - The company must complete clinical development and obtain regulatory approval before generating revenue from rilparencel [243]. - The regulatory approval process for rilparencel may be more expensive and take longer than for other, better-known products due to its complexity and novelty [247]. - The company has not previously conducted any later stage or pivotal clinical trials and has limited experience in preparing regulatory filings [243]. - The company may face delays or interruptions in clinical trials and regulatory approvals, which could adversely affect its operations [227]. - The company must demonstrate substantial evidence of safety and efficacy through well-controlled clinical trials to satisfy regulatory authorities [273]. - The company may face delays in clinical trials due to various factors, including regulatory compliance and patient recruitment challenges [265]. - The company may experience setbacks that could delay or prevent regulatory approval or commercialization of rilparencel [244]. - The design or execution of clinical trials may not support marketing approval, and variability in results could affect the commercialization of rilparencel [299]. Competition and Market Dynamics - The company faces significant competition in the biologics market, particularly in the treatment of kidney disease, from both established pharmaceutical companies and emerging therapies [237]. - Market acceptance of rilparencel and future product candidates is uncertain, with factors such as efficacy, pricing, and physician willingness to prescribe affecting potential revenues [351]. - The total addressable market for rilparencel may be smaller than projected, impacting revenue potential and market strategy [358]. - The company faces potential competition from biosimilar products, which could impact the commercial prospects of rilparencel [367]. Manufacturing and Supply Chain - Manufacturing of cell therapies, including rilparencel, is complex and has faced delays due to regulatory compliance issues, necessitating a pause in manufacturing to meet EU standards [315]. - The company aims to reduce manufacturing costs for rilparencel by optimizing bioprocess development and exploring reduced culture media usage [320]. - The company may need to expand its manufacturing vendors to meet rising demand, which could require significant capital investment and regulatory approvals [325]. - The complexity of managing an autologous ex vivo cell therapy supply chain poses significant operational challenges, including timely transportation and storage of cellular materials [335]. - The company relies on third-party suppliers for critical materials, and any disruption in supply could significantly impact its ability to meet customer demand and harm its business [340]. Regulatory Compliance and Risks - The company must navigate complex health care laws and regulations, which could expose it to significant legal and financial risks [401]. - Regulatory compliance is critical, as the company will be subject to extensive oversight and requirements upon commercialization of rilparencel, which could lead to significant additional expenses [406]. - The company may face penalties if it fails to comply with regulatory requirements or experiences unforeseen problems with rilparencel or future product candidates [406]. - The FDA's policies may change, potentially delaying or preventing marketing approval for rilparencel and future product candidates, adversely affecting the company's business and profitability [409]. Funding and Capital Requirements - The company has no committed external source of funds for its development efforts and may need to raise additional capital through various means, including public or private equity offerings [230]. - The company may need to raise additional capital to pursue further development or commercialization of product candidates if collaborations are not successful [399]. - The company faces significant uncertainty regarding the coverage and reimbursement status of any products that may receive regulatory approval, which is essential for patient access [374]. Clinical Trial Challenges - Patient enrollment in clinical trials has been challenging, with competition from other trials potentially delaying the development of rilparencel [292]. - The company may experience delays in clinical development or marketing schedules due to potential microbial contamination in the manufacturing process [344]. - The handling and administration of rilparencel require strict adherence to specific protocols, and any deviation could negatively impact product efficacy and safety [346]. Future Collaborations - Future collaborations for the development and commercialization of rilparencel and other product candidates are crucial, and failure to establish these collaborations could adversely affect the business [393]. - The negotiation process for collaborations is complex and time-consuming, with significant competition for suitable partners, which may hinder the company's ability to secure necessary agreements [397].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________________________________________________________________ FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR o 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: 1-32167 ___ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file number 001-38671 CAPITAL BANCORP, INC. (Exact name of registrant as specified in its charter) Maryland 52-2083046 (State or other jurisdiction of incorpor ...

Regulatory Environment - The regulatory burden on fossil fuel industries has increased operational costs, adversely affecting profitability [21]. - Compliance with environmental laws and regulations has significantly raised the costs of electric power generation and coal mining for domestic producers [22]. - The Black Lung Benefits Act imposes an excise tax of up to $1.10 per ton for underground-mined coal, which could impact overall expenses [43]. - The Federal Mine Safety and Health Act imposes extensive safety and health standards, significantly affecting operating costs [30]. - The permitting process for electric power generation and mining operations can extend over several years, potentially delaying operations [25][28]. - The company has not had any electric power generating or mining permits suspended or revoked due to violations, and penalties assessed have not been material [26][29]. - Future operating results may be adversely affected if accruals for asset retirement obligations and mine closing costs are insufficient [23]. - The company is subject to increased civil penalties for regulatory violations following the passage of the MINER Act [32]. - The implementation of new regulations regarding respirable coal mine dust exposure has increased operational costs due to the need for new equipment and personnel [34]. - The company has made adequate provisions for expected reclamation and other costs associated with mine closures, but future results could be impacted if these provisions are insufficient [23]. - The Abandoned Mine Lands Program imposes a reclamation fee of $0.224 per ton for surface-mined coal and $0.096 per ton for underground-mined coal, reauthorized through September 30, 2034 [51]. - The company has accrued estimated costs for reclamation and mine closing, including treatment of mine water discharge when necessary [51]. - Compliance with the Clean Air Act (CAA) requires installation of emissions control equipment, which increases operational costs for coal-fired power plants [55]. - The EPA's Acid Rain Program regulates sulfur dioxide emissions, requiring affected facilities to purchase or trade emissions allowances [56]. - The Mercury and Air Toxic Standards (MATS) rule has led to capital investments for retrofitting power plants, potentially reducing coal demand [58]. - The EPA's new source review program may require existing coal-fired power plants to install stricter emissions control equipment, affecting coal demand [59]. - The company is subject to regulations that may impose additional emissions control expenditures due to revised National Ambient Air Quality Standards (NAAQS) [58]. - The company is in compliance with reclamation regulations but cannot assure that claims related to ownership or control of third-party violations will not arise in the future [52]. - Surety bond costs have increased, and the company may face challenges in securing new bonds without posting collateral, impacting coal production and profitability [54]. - The company continues to evaluate the potential impacts of regulatory changes on its business and financial condition [58]. - The EPA's final rule requires coal-fired power plants operating after 2039 to achieve emissions reductions equivalent to 90% capture of CO2 through carbon capture and sequestration (CCS) [63]. - The Biden Administration aims for a 50-52% reduction in economy-wide net GHG emissions from 2005 levels by 2030, but the new Trump Administration has indicated intentions to withdraw from the Paris Agreement, potentially altering these targets [64]. - The Regional Greenhouse Gas Initiative (RGGI) has established a cap and trade program for carbon dioxide emissions, with auctions for allowances starting in September 2008, impacting fossil fuel demand [68]. - The EPA's final rule in May 2024 established more stringent requirements for flue gas desulfurization wastewater and combustion residual leachate, which may affect coal product markets and electric power operations [77]. - The U.S. Supreme Court's decision in Sackett v. EPA limited federal jurisdiction over wetlands, potentially reducing regulatory burdens but leaving future permitting requirements uncertain [72]. - Environmental advocacy groups are challenging federal agency environmental analyses under the National Environmental Policy Act (NEPA), claiming inadequate consideration of climate change impacts [67]. - The Clean Water Act (CWA) imposes permitting requirements for discharges, and any changes to TMDL allocations could increase water treatment costs, adversely affecting coal production [76]. - The EPA has statutory veto power over Section 404 permits, which could create uncertainty regarding current permits and impose additional costs on future operations [74]. - Future regulations on GHG emissions could lead to increased costs for fossil fuel production, potentially reducing demand for coal and adversely affecting the company's operations [70]. - The EPA finalized regulations under RCRA for the management and disposal of coal combustion residuals (CCR) on April 17, 2015, classifying CCR as "non-hazardous" waste, which avoids stricter regulations [85]. - The revised CCR rule mandates closure of unlined impoundments with deadlines between 2021 and 2028, potentially increasing operating costs for customers and affecting coal demand [85]. Workforce and Operations - As of December 31, 2024, Hallador employed 615 full-time employees, with 582 directly involved in coal mining or washing processes [99]. - Hallador's coal workforce is entirely union-free, while the operator at its power plant employs represented workers, which could lead to operational disruptions [99]. - Hallador has invested in employee health and safety, exceeding mandated guidelines, and has a private mine rescue team ready for emergencies [100]. - The company provides comprehensive health insurance with low-cost deductibles and co-pays, along with a private health and wellness clinic for employees [101]. - The Illinois Basin (ILB) coal mining operations cover over 50,000 square miles and are strategically located near major coal-consuming regions [93]. - The U.S. coal industry is highly competitive, with Hallador competing against large producers like Peabody Energy Corporation and Alliance Resource Partners [97]. Market and Strategic Outlook - Recent regulatory developments under the new Trump Administration may impact the market for coal products and electric power operations, creating uncertainty [103]. - The Infrastructure Investment and Jobs Act and the Inflation Reduction Act present potential opportunities for Hallador, aligning with its future strategy [90].