Financial Position - As of September 30, 2025, the company reported total assets of $3.353 billion, a decrease of $246.0 million or 6.8% from $3.599 billion at December 31, 2024[167]. - Total cash and cash equivalents decreased by $67.7 million or 21.3% to $249.6 million at September 30, 2025, primarily due to a reduction in wholesale funding[168]. - Loans receivable, net, decreased by $207.3 million or 6.9% to $2.789 billion at September 30, 2025, with significant declines in commercial real estate and multi-family loans[169]. - Deposits decreased by $63.5 million or 2.3% to $2.687 billion at September 30, 2025, with notable declines in brokered deposits and transaction accounts[171]. - Stockholders' equity decreased by $5.5 million or 1.7% to $318.5 million at September 30, 2025, primarily due to a decrease in retained earnings[174]. - The Company had total outstanding borrowings of $323.9 million as of September 30, 2025, down from $498.3 million at December 31, 2024[198]. - As of September 30, 2025, the Company had the ability to obtain additional funding of $200.3 million from the FHLB and $223.3 million from the Federal Reserve Bank Discount Window[199]. Credit Quality - The allowance for credit losses increased by $3.0 million to $37.8 million, representing 40.4% of non-accruing loans and 1.34% of gross loans at September 30, 2025[169]. - The allowance for credit losses on loans was $37.8 million, or 1.34% of gross loans, at September 30, 2025, up from $34.8 million, or 1.15%, at December 31, 2024[184]. - The company established a $13.7 million specific reserve related to the cannabis sector and increased reserves for the discontinued Business Express Loan portfolio by $3.1 million during the first quarter of 2025[163]. - Net charge-offs for Q3 2025 were $16.9 million, significantly higher than $3.4 million in Q3 2024, largely due to a $12.7 million charge-off related to a cannabis-related relationship[184]. - Net charge-offs increased significantly to $26.8 million from $6.3 million in the same period of 2024, with a provision for credit losses rising to $29.8 million from $7.4 million[192]. Income and Expenses - Net income for Q3 2025 was $4.3 million, down from $6.7 million in Q3 2024, primarily due to $1.2 million more in credit loss provisioning and $2.6 million increase in non-interest expenses[180]. - Interest income decreased by $5.6 million, or 11.5%, to $43.0 million in Q3 2025 from $48.6 million in Q3 2024, with average interest-earning assets down by $313.5 million, or 8.8%[181]. - Non-interest income decreased by $382 thousand to $2.7 million in Q3 2025, primarily due to $782 thousand less in realized gains on equity investments[186]. - Non-interest expense increased by $2.6 million, or 19.0%, to $16.6 million in Q3 2025, driven by higher salaries, employee benefits, and regulatory assessment fees[187]. - For the first nine months of 2025, net income decreased by $15.8 million to a loss of $498 thousand, primarily due to higher provisioning for loan loss expenses and increased non-interest expenses[189]. - Net interest income decreased by $1.0 million, with interest income down $16.9 million (11.5%) to $130.4 million for the first nine months of 2025 compared to $147.4 million in 2024[190]. - Non-interest expense increased by $3.7 million (8.8%) to $46.5 million, primarily due to higher salaries and employee benefits[194]. - The income tax provision decreased by $1.1 million to $1.5 million in Q3 2025, with an effective tax rate of 26.6% compared to 28.7% in Q3 2024[188]. - The income tax provision decreased by $6.7 million, resulting in an income tax benefit of $386 thousand for the first nine months of 2025[195]. Interest Rate Risk - The weighted average interest rate of FHLB advances was 4.09% at September 30, 2025, down from 4.35% at December 31, 2024[172]. - As of September 30, 2025, a 100-basis point decrease in interest rates would result in a 0.05% increase in NPV, compared to a 0.27% increase at December 31, 2024[213]. - The net portfolio value (NPV) at a 100-basis point increase is $386,694, reflecting a decrease of $14,452 or 3.60% from PAR[212]. - The NPV ratio as a percentage of assets is 11.97% at a 100-basis point increase, down from 12.22% at PAR[212]. - A 200-basis point decrease in interest rates would yield an NPV of $410,813, an increase of $9,667 or 2.41% from PAR[212]. - The NPV at a 300-basis point decrease is $417,460, showing an increase of $16,314 or 4.07% from PAR[212]. - The methodology for measuring interest rate risk has inherent shortcomings, as it assumes constant asset and liability composition over the measurement period[214]. - The NPV table does not provide a precise forecast of the impact of market interest rate changes on net interest income[214]. - The company’s interest-sensitive assets and liabilities are assumed to respond uniformly to interest rate changes, which may not reflect actual market behavior[214]. - The NPV as a percentage of assets shows slight fluctuations with changes in interest rates, indicating sensitivity to market conditions[212]. - The company’s interest rate risk exposure is indicated at specific points in time but may differ from actual results[214]. Capital Ratios - The Community Bank Leverage Ratio was 10.60% as of September 30, 2025, exceeding the minimum requirement of 9%[206]. - Total Capital to Risk-Weighted Assets was 13.45% as of September 30, 2025, above the regulatory requirement of 8%[208].

Financial Performance - Total revenue for the three months ended September 30, 2025, was $351,000, compared to $0 for the same period in 2024, indicating a significant increase[22] - Net income from continuing operations for the three months ended September 30, 2025, was $8,204,000, compared to a loss of $51,035,000 in the same period of 2024[22] - The company reported a gain on the sale of the VOWST Business of $27,222,000 for the three months ended September 30, 2025[22] - The company reported a net income of $21,031 for the nine months ended September 30, 2025, compared to $15,773 for the same period in 2024, representing a year-over-year increase of 33.8%[29] - The company incurred a loss from operations of $74,594,000 for the nine months ended September 30, 2025[51] - The company reported a significant reduction in expenses related to the live biotherapeutics platform, totaling $6.165 million for Q3 2025, down from $7.458 million in Q3 2024, representing a decrease of approximately 17.3%[111] - The company reported a gain of $27.2 million on the sale of the VOWST Business during the three months ended September 30, 2025[198] Expenses and Cost Management - Research and development expenses for the nine months ended September 30, 2025, were $37,376,000, down 28% from $51,759,000 in the same period of 2024[22] - The company reported total operating expenses of $22,828,000 for the three months ended September 30, 2025, down from $29,170,000 in the same period of 2024[22] - Stock-based compensation expense for the nine months ended September 30, 2025, was $7,641, down from $17,206 in 2024, indicating a decrease of 55.6%[29] - General and administrative expenses were $9.5 million for the three months ended September 30, 2025, compared to $12.7 million in 2024, a decrease of $3.2 million[196] - General and administrative expenses were $31.6 million for the nine months ended September 30, 2025, down from $40.7 million in 2024, a decrease of $9.1 million[202] Assets and Liabilities - Total assets increased to $143,473,000 as of September 30, 2025, from $139,810,000 as of December 31, 2024[20] - Total liabilities decreased to $99,776,000 as of September 30, 2025, from $126,026,000 as of December 31, 2024, reflecting improved financial health[20] - The company’s stockholders' equity increased to $43,697,000 as of September 30, 2025, compared to $13,784,000 as of December 31, 2024[20] - As of September 30, 2025, the Company had an accumulated deficit of $957,068,000 and cash and cash equivalents of $47,638,000[49] Cash Flow and Funding - The company reported a net cash provided by operating activities of $15,827 for the nine months ended September 30, 2025, compared to a net cash used of $109,727 in 2024[29] - Cash, cash equivalents, and restricted cash at the end of the period were $56,306, down from $76,697 at the end of the same period in 2024[29] - The company expects to incur approximately $1,027,000 in restructuring costs due to workforce reductions of about 25%[47] - The Company will require additional funding to support ongoing operations and meet obligations, raising substantial doubt about its ability to continue as a going concern[52] - Cash provided by operating activities was $15.8 million for the nine months ended September 30, 2025, compared to a cash used of $109.7 million in 2024[217] Business Operations and Strategic Initiatives - The company completed the sale of its VOWST microbiome therapeutic business to Nestlé Health Science for a cash payment of $100,000, with additional milestone payments to be received[35] - The company plans to explore SER-155 in various medically vulnerable patient populations, including those undergoing allogeneic hematopoietic stem cell transplantation[32] - The company has built a reverse translational platform for the discovery and development of live biotherapeutics, enhancing its research capabilities[34] - The company entered into a Transition Services Agreement (TSA) with NESA to provide manufacturing and administrative services related to the VOWST Business[40] - The company will provide manufacturing services under a Transition Services Agreement until December 31, 2025, with NESA reimbursing for certain costs[140] Research and Development - SER-155 demonstrated a 77% relative risk reduction in bacterial bloodstream infections in a Phase 1b study, indicating significant efficacy in the target patient population[32] - The SER-155 Phase 2 study is expected to enroll approximately 248 participants, with interim clinical results anticipated within twelve months following study initiation[118] - A CARB-X grant of up to $3.6 million was awarded to support the development of an oral liquid formulation of SER-155 for medically vulnerable patients[159] - SER-155 was associated with lower levels of fecal albumin and reduced concentrations of systemic inflammatory biomarkers during the HSCT peri-transplant period[161] - The company has an extensive patent portfolio related to SER-155 and SER-147, extending through at least 2043, with 24 active patent families and 33 issued U.S. patents[172] Stock and Equity - The weighted average common shares outstanding increased to 8,758,692 for the three months ended September 30, 2025, compared to 7,632,242 for the same period in 2024[22] - The company implemented a 1-for-20 reverse stock split, retroactively adjusting all share amounts in financial statements[58] - The 2025 Incentive Award Plan was approved, authorizing the issuance of 2,230,243 shares, extending the plan's term to March 3, 2035[83] - The company raised approximately $996 from the sale of 54,806 shares at an average price of $18.60 per share during the nine months ended September 30, 2025[85] - The company has sold 1,772,037 shares of common stock under the Sales Agreement, raising approximately $52.2 million in net proceeds[214]

Financial Performance - Total operating revenues for the three months ended September 30, 2025, were $498.4 million, an increase of 8% compared to $459.8 million for the same period in 2024[113][114]. - Operating profit for Q3 2025 was $55.0 million, compared to $42.5 million in Q3 2024, marking an increase of 29.4%[113]. - Net income for Q3 2025 was $47.9 million, up from $28.4 million in Q3 2024, representing a significant increase of 68.1%[113]. - Total revenue for the nine months ended September 30, 2025, increased by 8% to $1,440.2 million compared to $1,333.5 million for the same period in 2024[146]. - The company’s net income for the twelve months ended September 30, 2025, was $170.5 million, with income from continuing operations reported at $170.5 million as well[206]. - The company’s EBITDA for the twelve months ended September 30, 2025, was $441.2 million, reflecting a strong operational performance[206]. Revenue Breakdown - Auction fees increased to $136.3 million in Q3 2025 from $113.2 million in Q3 2024, representing a growth of 20%[113]. - Service revenue decreased slightly to $144.2 million in Q3 2025 from $148.1 million in Q3 2024, a decline of 2.6%[113]. - Finance revenue rose to $109.0 million in Q3 2025, up from $105.5 million in Q3 2024, reflecting a growth of 3.3%[113]. - Marketplace revenue increased by $35.1 million, or 10%, to $389.4 million for the three months ended September 30, 2025, compared to $354.3 million for the same period in 2024[124]. - Gross profit from the Marketplace segment rose by $18.9 million, or 19%, to $119.4 million for the three months ended September 30, 2025, compared to $100.5 million in 2024[129]. - Total Finance segment revenue increased by $3.5 million, or 3%, to $109.0 million for the three months ended September 30, 2025, compared to $105.5 million in 2024[137]. Expenses and Costs - Selling, general and administrative expenses for the Marketplace segment increased by $11.6 million, or 13%, to $97.6 million for the three months ended September 30, 2025, primarily due to higher incentive-based compensation[133]. - Interest expense decreased by 76% to $1.1 million in Q3 2025 from $4.6 million in Q3 2024, attributed to the repayment of senior notes[116]. - Interest expense decreased by 52% to $8.2 million for the nine months ended September 30, 2025, compared to $17.2 million in 2024[148]. - Cash used in financing activities decreased to $119.9 million for the nine months ended September 30, 2025, from $264.3 million in 2024, showing a reduction of 54.7%[211]. Credit and Provision for Losses - The company recorded a provision for credit losses of $11.5 million in Q3 2025, down from $13.1 million in Q3 2024, indicating improved credit quality[113]. - The finance provision for credit losses decreased by $1.7 million, or 15%, to $9.7 million for the three months ended September 30, 2025, with the provision as a percentage of average receivables managed dropping to 1.6%[140]. - Provision for credit losses decreased by 56% to $2.3 million for the nine months ended September 30, 2025, compared to $5.2 million in 2024[164]. - The allowance for credit losses as a percentage of total receivables managed remained stable at 0.9% for both 2025 and 2024[167]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $119.3 million as of September 30, 2025, from $143.0 million in December 2024[177]. - Working capital increased to $428.5 million as of September 30, 2025, compared to $286.0 million in December 2024[177]. - The Company managed total finance receivables of $2,489.3 million at September 30, 2025, compared to $2,314.0 million at December 31, 2024[198]. - Net cash provided by operating activities for continuing operations was $266.4 million for the nine months ended September 30, 2025, up from $260.1 million in the same period of 2024, indicating a growth of 1.2%[207]. Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2025, were approximately $40.7 million, slightly up from $39.0 million in 2024, with expectations for fiscal year 2025 to be between $50 million and $55 million[214]. - The company experienced a net cash outflow of $195.5 million from investing activities for the nine months ended September 30, 2025, compared to a net inflow of $10.4 million in 2024, representing a substantial change of $205.9 million[210]. Debt and Financing - The Company issued $950 million of 5.125% senior notes due June 1, 2025, and repaid $210.0 million upon maturity during the second quarter of 2025[190]. - The 2025 Incremental Term Loans amount to $550.0 million, due in October 2032, with interest rates ranging from 1.50% to 2.50%[192]. - The Company entered into preferred stock repurchase agreements totaling $558.9 million for Series A Preferred Stock in September 2025[193]. - The Consolidated Senior Secured Net Leverage Ratio was negative at September 30, 2025, with a maximum requirement of 3.5[188]. Foreign Currency and Interest Rate Exposure - The company reported a foreign currency loss of $4.0 million for the twelve months ended September 30, 2025, indicating exposure to currency fluctuations[206]. - A sensitivity analysis indicated that a hypothetical 100 basis point increase in short-term rates would have resulted in no significant increase in interest expense due to minimal activity on the Revolving Credit Facilities[223]. - The company is exposed to interest rate risk on its variable rate borrowings, affecting the amount of interest expense[222]. - The company has not entered into any foreign exchange contracts to hedge changes in the Canadian dollar, British pound, or euro[221].

Clinical Trials and Product Development - The company is actively recruiting subjects in the United States and Canada for the Phase 3 liMeliGhT clinical trial of OCU400, targeting completion of enrollment to support BLA and MAA filings in 2026[119]. - In January 2025, the company announced positive two-year data from the Phase 1/2 clinical trial of OCU400, showing a statistically significant improvement in low luminance visual acuity (LLVA) with a p-value of 0.005[132]. - The company initiated dosing in the pivotal confirmatory trial for OCU410ST in July 2025, with plans to submit a BLA in 2027[120][135]. - The Phase 2/3 clinical trial for OCU410ST is set to randomize 51 subjects, with a target BLA filing in 2027[140]. - The Phase 1 clinical trial of OCU500 is sponsored by NIAID, with the initiation timing currently unknown due to government shutdown[145]. - The ongoing Phase 2 clinical trial of OCU410 showed a 27% slower lesion growth compared to published data from approved products[141]. - The company is developing a novel inhaled mucosal vaccine platform, including OCU500 for COVID-19, with IND application approved and a Phase 1 trial planned[126]. - The FDA granted Rare Pediatric Disease Designation for OCU410ST in May 2025, which targets ABCA4-associated retinopathies, including Stargardt disease[134]. - The company received Orphan Drug Designation for OCU410ST from the FDA and the EMA for the treatment of ABCA4-associated retinopathies, which involve over 1200 mutations[137]. - The FDA granted RMAT designation to NeoCart for the repair of full-thickness lesions of knee cartilage injuries in adults[144]. Financial Performance - Total revenue for the nine months ended September 30, 2025, was $4.606 million, an increase of $1.315 million from $3.291 million in 2024[155]. - Collaborative arrangement revenue increased by $0.6 million to $1.752 million for the three months ended September 30, 2025, compared to $1.136 million in the same period of 2024[148]. - Research and development expenses rose by $3.041 million to $11.149 million for the three months ended September 30, 2025, compared to $8.108 million in 2024[149]. - The net loss for the three months ended September 30, 2025, was $20.051 million, an increase of $7.081 million from a net loss of $12.970 million in 2024[147]. - Interest expense increased significantly to $1.314 million for the three months ended September 30, 2025, compared to $0.029 million in the same period of 2024[151]. - General and administrative expenses increased by $1.1 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to $1.2 million in professional service fees related to business development[157]. - Interest expense rose significantly to $3.8 million for the nine months ended September 30, 2025, compared to $0.1 million for the same period in 2024, mainly due to interest on long-term debt incurred in Q4 2024[158]. - Other net expense was $1.1 million for the nine months ended September 30, 2025, compared to a net expense of $0.01 million for the same period in 2024, driven by a one-time contract termination fee of $1.3 million[159]. - Net losses for the nine months ended September 30, 2025, were approximately $50.1 million, compared to $40.2 million for the same period in 2024, resulting in an accumulated deficit of $390.4 million[163]. Capital and Funding - The company closed a registered direct offering in August 2025, raising net proceeds of $18.5 million from the sale of 20 million shares at $1.00 per share[122]. - The company raised a gross aggregate of $389.9 million since inception, with $345.2 million from the sale of common stock and warrants, $10.3 million from convertible notes, and $33.4 million from debt issuance[160]. - Cash used in operating activities was $43.0 million for the nine months ended September 30, 2025, compared to $31.8 million for the same period in 2024[166][167]. - Cash provided by financing activities was $17.3 million for the nine months ended September 30, 2025, down from $34.7 million for the same period in 2024, primarily due to repayment of part of the EB-5 loan[169]. - As of September 30, 2025, the company had $32.6 million in cash, which is insufficient to fund operations over the next 12 months, necessitating significant additional capital[173]. - The company expects to continue incurring significant expenses for research and development, including preclinical and clinical development of product candidates, and may need to explore various funding strategies[171][173]. - There is substantial doubt about the company's ability to continue as a going concern within one year after the date of the financial statements due to anticipated continued spending and lack of sufficient capital[174]. Strategic Partnerships and Agreements - A licensing agreement was established with Kwangdong Pharmaceuticals for the development and commercialization of OCU400 in South Korea, with an initial non-refundable fee of $0.8 million[123][124]. - The company is pursuing new strategic partnerships and investment opportunities following the termination of a merger agreement due to insufficient funding commitments[128].

Financial Performance - Net income applicable to common shareholders for Q3 2025 was $1.5 million, down from $2.3 million in Q3 2024, with diluted net income per share decreasing to $0.03 from $0.05[4] - Total revenue for the three months ended September 30, 2025, was $78,409,000, a decrease of 10.2% compared to $87,177,000 for the same period in 2024[39] - Room revenue decreased to $71,923,000 for the three months ended September 30, 2025, down 10.4% from $80,236,000 in 2024[39] - Net income attributable to common shareholders for the three months ended September 30, 2025, was $1,544,000, compared to $2,264,000 in 2024, reflecting a decline of 31.7%[40] - Funds From Operations (FFO) attributable to common share and unit holders for the three months ended September 30, 2025, was $15,762,000, down from $17,169,000 in 2024, a decrease of 8.1%[42] - Adjusted EBITDA for the nine months ended September 30, 2025, was $72,646,000, compared to $79,795,000 in 2024, representing a decline of 9.0%[42] - The company reported an operating income of $9,933,000 for the three months ended September 30, 2025, down from $12,504,000 in 2024, a decrease of 20.5%[39] - For the three months ended September 30, 2025, net income was $3,587,000, compared to $4,339,000 for the same period in 2024, representing a decrease of approximately 17.3%[44] - Adjusted Hotel EBITDA for the three months ended September 30, 2025, was $28,759,000, down from $32,200,000 in the same period of 2024, a decline of about 10.8%[44] Revenue and Occupancy Metrics - RevPAR for the 34 comparable hotels declined 2.5% to $151 in Q3 2025 compared to $155 in Q3 2024, with average daily rate (ADR) decreasing 1.8% to $192 and occupancy slipping 60 basis points to 79%[5] - The company’s guidance for Q4 2025 projects RevPAR between $128 and $130, reflecting a decline of 3.5% to 2.5% compared to the previous year[21] - RevPAR is expected to decline by 2.5% to 3.5%[22] - Hotel EBITDA margins are expected to range from 29% to 31%, down from 34%[23] - Hotel EBITDA margin for the three months ended September 30, 2025, was 29.0%, compared to 31.0% in the same period of 2024, reflecting a decline of 2 percentage points[47] Debt and Financial Flexibility - Total debt outstanding as of September 30, 2025, was $343 million at an average interest rate of 6.3%, with net debt reduced to $330 million from $389 million at the end of 2024[18] - The leverage ratio was approximately 21% as of September 30, 2025, down from 23% at the end of 2024[19] - The company executed a new $500 million credit facility, up from the previous $400 million, enhancing financial flexibility[6] - Interest expense (excluding fee amortization) is anticipated to be $5.6 million, compared to $24.1 million previously[23] - Interest expense, including amortization of deferred fees, was $6,243,000 for the three months ended September 30, 2025, compared to $8,262,000 in the same period of 2024, a decrease of approximately 24.5%[44] Shareholder Returns and Capital Expenditures - Chatham repurchased approximately 255,213 common shares at an average price of $7.18 during Q3 2025, totaling about $1.8 million[14] - The board declared a common dividend of $0.09 per share, payable on October 15, 2025[20] - Capital expenditures for Q3 2025 were approximately $4 million, with a total budget of $26 million for the year, including renovations at three hotels[13] Assets and Liabilities - Total assets decreased to $1,182,540,000 as of September 30, 2025, from $1,254,681,000 as of December 31, 2024, a reduction of 5.7%[37] - Total liabilities decreased to $397,057,000 as of September 30, 2025, compared to $462,684,000 as of December 31, 2024, a decrease of 14.1%[37] Future Projections and Risks - Adjusted EBITDA is projected to be between $16.7 million and $18.3 million for the current period, with a prior period of $89.2 million to $90.8 million[23] - Adjusted FFO per diluted share is estimated to be between $0.14 and $0.17, compared to $0.96 to $0.99 in the previous period[23] - Corporate cash administrative expenses are projected at $2.5 million, with non-cash administrative expenses at $1.5 million[23] - The company will not pursue additional acquisitions, dispositions, debt, or equity issuance[22] - Forward-looking statements indicate potential risks including economic conditions, operating risks, and competition in the lodging industry[35] - The company emphasizes the importance of non-GAAP financial measures for evaluating operating performance, including FFO, Adjusted FFO, and EBITDA[26] Distributions and Share Count - The company declared distributions of $0.09 per common share for the three months ended September 30, 2025, up from $0.07 in 2024[40] - The weighted average number of common shares outstanding for the three months ended September 30, 2025, was 48,910,697, compared to 48,904,179 in 2024[40] Losses and Other Expenses - The company reported a loss on sale of hotel properties amounting to $14,000 for the three months ended September 30, 2025[44] - Corporate general and administrative expenses for the three months ended September 30, 2025, were $4,142,000, down from $4,395,000 in the same period of 2024, a reduction of about 5.8%[44] - The company anticipates a net loss attributable to common shares and common units between $3,005,000 and $1,376,000 for the year ended December 31, 2025[46]

Financial Performance - Sphere 3D reported revenue of $2.6 million for Q3 2025, an increase of 8.8% compared to $2.4 million in Q3 2024[6] - Loss from operations decreased by 23% to $4.0 million in Q3 2025, compared to $5.2 million in Q3 2024[9] - Total operating costs and expenses for Q3 2025 were $6.7 million, a decrease from $7.5 million in Q3 2024[9] Bitcoin Mining Operations - The company mined 23.0 Bitcoin during Q3 2025, a decrease of 40.5% from 38.7 Bitcoin in Q3 2024 due to higher curtailments and fewer miners online[6] - Sphere 3D replaced 1,500 older generation miners with approximately 900 newer generation S21+ miners[6] - As of September 30, 2025, Sphere 3D had a self-mined Bitcoin balance of 22.7 Bitcoin with a fair value of approximately $2.6 million[4] Cost Management - General and administrative expenses were reduced by approximately 40% to $1.8 million in Q3 2025, down from $3.0 million in Q3 2024[6] - Sphere 3D's total assets as of September 30, 2025, were $31.1 million, down from $43.2 million as of December 31, 2024[13] Capital Raising and Agreements - The company raised $4.1 million in gross proceeds through a warrant inducement[6] - The company entered into a new hosting agreement to support additional miners, enhancing its operational capacity[6]

Financial Performance - Novo Nordisk's net sales for the first nine months of 2025 reached DKK 229.9 billion, representing a 12% increase compared to the same period in 2024, with a 15% growth at constant exchange rates (CER) [5]. - Operating profit increased by 5% to DKK 95.9 billion, impacted by one-off restructuring costs of approximately DKK 9 billion; without these costs, the operating profit would have increased by 15% in Danish kroner and 21% at CER [6]. - Free cash flow for the first nine months of 2025 was DKK 63.9 billion, with DKK 53.2 billion returned to shareholders [10]. - The gross margin decreased to 81.0% from 84.6% in the previous year, while the operating margin fell to 41.7% from 44.7% [11]. - Net profit for the first nine months of 2025 increased by 4% to DKK 75,543 million, while adjusted net profit rose by 10% to DKK 87,748 million [65]. - Operating profit for the first nine months of 2025 was DKK 95,922 million, a 5% increase in Danish kroner and 10% at CER, despite one-off restructuring costs of around DKK 9 billion [61]. - Net profit for Q3 2025 was DKK 20,006 million, down 27% from DKK 27,301 million in Q3 2024 [181]. - Total comprehensive income for the first nine months of 2025 was DKK 77,983 million, compared to DKK 69,791 million in 2024, reflecting an increase of 11.5% [158]. Sales Growth - Sales in the US operations grew by 12% in Danish kroner and 15% at CER, while international operations saw a 13% increase in Danish kroner and 16% at CER [7]. - Sales in Diabetes and Obesity care increased by 12% to DKK 215.7 billion, driven by a 37% growth in Obesity care to DKK 59.9 billion and a 7% increase in GLP-1 diabetes sales [7]. - Total sales for the first nine months of 2025 reached DKK 229,920 million, compared to DKK 204,720 million in the same period of 2024, reflecting a growth of 12% [13]. - Sales grew by 12% in Danish kroner and by 15% at CER in the first nine months of 2025, with Obesity care sales increasing by 41% and Diabetes care sales growing by 8% [13]. - Sales in EUCAN increased by 14% in Danish kroner and by 15% at CER, with a GLP-1 share of total diabetes prescriptions rising to 10.0% [23]. - Sales in Emerging Markets decreased by 1% in Danish kroner but increased by 6% at CER, with a GLP-1 share of total diabetes prescriptions increasing to 3.1% [23]. - Total sales for Q3 2025 reached DKK 74,976 million, reflecting an 11% increase at constant exchange rates (CER) compared to the previous year [164]. Product Performance - GLP-1-based products for type 2 diabetes generated sales of DKK 114,675 million, representing a 7% increase in Danish kroner and a 10% increase at CER [18]. - Ozempic sales increased by 10% in Danish kroner and by 13% at CER to DKK 95,264 million, driven by both US and International Operations [20]. - Rybelsus sales grew by 2% in Danish kroner and by 5% at CER to DKK 16,790 million, primarily due to International Operations [20]. - Obesity care product sales, including Wegovy and Saxenda, increased by 37% in Danish kroner and by 41% at CER to DKK 59,902 million, with a global market share of 59.2% [33]. - Wegovy sales surged by 49% in Danish kroner and by 54% at CER to DKK 57,242 million, while Saxenda sales decreased by 51% [34]. - Rare disease sales increased by 10% in Danish kroner and 13% at CER, totaling DKK 14.3 billion [10]. - The Rare disease segment reported sales of DKK 14,259 million, with a 13% increase at CER compared to the previous year [166]. Research and Development - Research and development costs rose by 9% in Danish kroner and 10% at CER to DKK 37,391 million, driven by investments in Obesity care and cardiovascular portfolio [58]. - Research and development costs surged by 62% to DKK 15,393 million, representing 20.5% of sales, driven by increased late-stage clinical trials [73]. - Novo Nordisk submitted oral semaglutide 25 mg to the EMA, achieving a 16.6% weight loss compared to 2.7% with placebo in a trial [107]. - The company initiated a phase 3 programme for cagrilintide in people living with obesity, assessing its efficacy and safety [108]. Strategic Initiatives - The company announced the acquisition of Akero Therapeutics, adding a potential first-in-class asset for the treatment of MASH, and initiated a phase 3 program with cagrilintide for weight management [6]. - A company-wide transformation is set to reduce the global workforce by approximately 9,000 positions, including 5,000 in Denmark [128]. - Novo Nordisk aims to reduce its plastic footprint per patient by 30% by 2033, with a current footprint of 0.34 kg per patient [123]. - The company plans to reduce scope 3 CO2 emissions by 33% by 2033, with a current increase of 20% in the first nine months of 2025 [122]. Market Position - Novo Nordisk's global diabetes value market share decreased to 31.6%, down 2.3 percentage points from the previous year, while the total GLP-1 volume market share across Diabetes and Obesity care is 59.0% [15]. - In the US, Novo Nordisk holds a 48.1% value market share in GLP-1 diabetes care products, with a prescription volume growth of over 10% in Q3 2025 compared to Q3 2024 [21]. - The estimated GLP-1 share of total diabetes prescriptions globally increased to 7.4%, up from 6.5% a year ago [18]. Financial Outlook - For the full-year 2025, Novo Nordisk expects sales growth of 8-11% at CER and operating profit growth of 4-7% at CER, reflecting a negative impact of around DKK 8 billion from the company-wide transformation [7]. - Sales growth for 2025 is now expected to be between 8% and 11% at CER, with reported sales growth anticipated to be around 4 percentage points lower [86]. - The company expects financial items (net) for 2025 to amount to a gain of around DKK 2.6 billion, driven by gains on hedged currencies [89]. Legal and Governance - A class-action lawsuit was filed against Novo Nordisk in August 2025, alleging misleading financial forecasts related to GLP-1 medicines [136]. - An Extraordinary General Meeting is scheduled for November 14, 2025, to elect new board members following significant changes in the Board of Directors [133].

Financial Performance - Net sales for Q3 2025 were $9,477,000, a decrease of 11.4% compared to $10,691,000 in Q3 2024[17] - Gross profit for Q3 2025 was $6,987,000, down 11.9% from $7,926,000 in Q3 2024[17] - The net loss for Q3 2025 was $431,000 compared to a net income of $35,000 in Q3 2024[19] - Comprehensive loss for Q3 2025 was $440,000, compared to comprehensive income of $324,000 in Q3 2024[19] - For the three months ended September 30, 2025, total net sales were $9,477,000, a decrease of 11.0% compared to $10,691,000 for the same period in 2024[42] - For the nine months ended September 30, 2025, total net sales were $30,027,000, down 6.5% from $32,117,000 in 2024[42] - The company reported a net loss available to common stockholders of $431,000 for the three months ended September 30, 2025, compared to a net income of $35,000 for the same period in 2024[42] - The company reported a loss before income taxes of $289,000 for the three months ended September 30, 2025, compared to income of $166,000 in the same period of 2024[83] Assets and Liabilities - Total current assets decreased to $37,888,000 in Q3 2025 from $50,983,000 in Q4 2024, representing a decline of 25.7%[15] - Total liabilities decreased to $16,103,000 in Q3 2025 from $22,487,000 in Q4 2024, a reduction of 28.5%[15] - The accumulated deficit increased to $33,547,000 in Q3 2025 from $26,344,000 in Q4 2024[15] - Total assets as of September 30, 2025, were $42,251,000, down from $55,359,000 as of December 31, 2024[84] - Cash and cash equivalents increased to $14,336,000 in Q3 2025 from $13,533,000 in Q4 2024, an increase of 5.9%[15] - Total cash, cash equivalents, and restricted cash at the end of the period was $14,371,000, down from $22,937,000 at the end of the same period in 2024[23] - Cash, cash equivalents, and marketable securities totaled $32.0 million as of September 30, 2025, a decrease of $11.9 million from December 31, 2024[119] - Working capital as of September 30, 2025, was $23.1 million, a decrease of $7.1 million compared to December 31, 2024[120] Operating Expenses - Operating expenses for Q3 2025 were $7,482,000, down 8.8% from $8,201,000 in Q3 2024[17] - Commissions expense for the three months ended September 30, 2025, was $3,832,000, a decrease from $4,256,000 in 2024[81] - Selling, general and administrative expenses decreased by $262,000 to $3.6 million for the three months ended September 30, 2025[113] - Cash used in operating activities for the nine months ended September 30, 2025, was $5,038,000, an increase from $3,455,000 in 2024[23] Dividends and Shareholder Returns - The company declared dividends of $0.20 per share, totaling $2,303,000 for the nine months ended September 30, 2025[20] - Dividends paid remained constant at $6,909,000 for both the nine months ended September 30, 2025, and 2024[23] - The Company declared and paid cash dividends of $0.20 per common share for the first three quarters of 2025, totaling $6.9 million, consistent with the same period in 2024[75] Inventory and Sales - Inventories increased by $1,161,000 in the nine months ended September 30, 2025, compared to an increase of $619,000 in 2024[23] - Finished goods inventory decreased to $1,798,000 as of September 30, 2025, from $2,770,000 as of December 31, 2024[46] - The company's inventories as of September 30, 2025, were valued at $1,663,000, compared to $2,617,000 as of December 31, 2024[84] - Actual sales returns were 1% of sales for both the nine months ended September 30, 2025, and 2024[37] International Operations - The company has an active presence in multiple international markets, including the Americas, Greater China, Southeast Asia, and Europe[25] - Approximately 93% of net sales are generated from subsidiaries located outside the Americas, highlighting the company's international focus[90] - The Hong Kong subsidiary generated approximately 83% of the company's revenue in the first nine months of 2025, primarily from sales delivered to members in China[91] Tariffs and Trade Impact - The U.S. imposed a 125% tariff on Chinese-origin goods in April 2025, which has affected sales and may lead to higher product prices in the future[94] - The company is actively evaluating options to transition production to other jurisdictions to mitigate the impact of U.S. tariffs, which may result in long-term cost savings[95] - The ongoing trade disputes may adversely affect trade and economic relations between the U.S. and China, impacting the company's operations and financial results[138] - The company may incur additional costs related to tariffs and may not be able to recover these costs through surcharges[138] Corporate Governance and Compliance - The company has not experienced any changes in internal control over financial reporting that materially affected its operations during the fiscal quarter ended September 30, 2025[133] - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2025[132] - There have been no material changes to the company's risk factors since the Annual Report for the year ended December 31, 2024[137] - There are no legal proceedings currently affecting the company[136]

Financial Performance - Total revenues for Q3 2025 were $4.7 billion, up from $2.9 billion in Q3 2024, primarily due to net investment gains of $275 million compared to net investment losses of $1.4 billion in Q3 2024[325]. - Net earnings for the first nine months of 2025 were $2.3 billion, or $4.21 per diluted share, down from $3.5 billion, or $6.23 per diluted share in the same period of 2024[326]. - Adjusted earnings for Q3 2025 were $1.3 billion, or $2.49 per diluted share, compared to $1.2 billion, or $2.16 per diluted share in Q3 2024[329]. - Adjusted earnings for the three months ended September 30, 2025, were $1,327 million, compared to $1,211 million for the same period in 2024, reflecting a 9.6% increase[345]. - Adjusted earnings per diluted share for the nine months ended September 30, 2025, were $5.92, compared to $5.64 for the same period in 2024, indicating a 4.9% increase[345]. - The Company's combined effective income tax rate on pretax earnings was 17.8% for Q3 2025, a significant decrease from 201.8% in Q3 2024[362]. - The U.S. GAAP return on equity for Q3 2025 was 23.5%, a recovery from a negative return of (1.5)% in Q3 2024[370]. Investment Performance - Net investment losses for the first nine months of 2025 were $1.1 billion, compared to net investment gains of $239 million in the same period of 2024[328]. - The company reported net investment gains and losses of $(275) million for the three months ended September 30, 2025, compared to $1,408 million for the same period in 2024[348]. - Adjusted net investment income for the three months ended September 30, 2025, was relatively flat at $665 million, a slight increase of 0.5% from $662 million in 2024[377]. - The company considers amortized hedge costs/income an important component of net investment income, reflecting periodic currency risk management costs[343]. - The Company’s investment strategy focuses on maintaining a diversified portfolio of yen-denominated and U.S. dollar-denominated assets while seeking long-term risk-adjusted returns[431]. - The Company utilizes third-party asset managers for sourcing, underwriting, and managing loans, ensuring effective monitoring and recovery processes[440]. Shareholder Equity and Stock Repurchase - Shareholders' equity increased to $28.7 billion, or $54.57 per share, at September 30, 2025, compared to $26.1 billion, or $47.45 per share, at December 31, 2024[330]. - Aflac Incorporated repurchased $2.7 billion, or 25.7 million shares, in the first nine months of 2025, with 121.6 million shares remaining authorized for repurchase[329]. Currency Impact - The average yen/dollar exchange rate for Q3 2025 was 147.68, 0.2% stronger than 147.95 in Q3 2024, while the nine-month average was 148.03, 1.7% stronger than 150.60 in the same period of 2024[329]. - Aflac Japan's premiums and a significant portion of its investment income are received in yen, impacting the Company's financial results due to foreign currency translation[359]. - The impact of foreign currency on adjusted earnings was minimal, with adjusted earnings excluding current period foreign currency impact at $1,326 million for the three months ended September 30, 2025[345]. Operational Metrics - For the three months ended September 30, 2025, net earned premiums decreased by 2.7% to $1,663 million compared to $1,709 million in the same period of 2024[377]. - Total adjusted revenues for the three months ended September 30, 2025, decreased by 1.8% to $2,335 million, down from $2,378 million in the previous year[377]. - Total benefits and claims, net, for the three months ended September 30, 2025, decreased by 20.8% to $656 million compared to $828 million in the same period of 2024[377]. - The total adjusted expense ratio for the nine-month period ended September 30, 2025, increased primarily due to an increase in technology expenses[388]. - Total benefits and claims to total premiums ratio decreased to 39.3% for the three months ended September 30, 2025, down from 49.2% in 2024[385]. Cybersecurity Incident - The Company experienced a cybersecurity incident on June 12, 2025, involving unauthorized access to its network, but believes it contained the intrusion within hours[333]. - The Company has incurred costs related to the cybersecurity incident, which may include credit monitoring and legal advisory services, but has not determined a material impact on its financial condition as of the report date[335]. Future Outlook and Strategy - The Company plans to maintain higher than historical levels of liquidity and capital at the Parent Company to address hedge costs and mitigate against long-term weakening of the Japanese yen[499]. - The Company expects future cash flows from premiums and investment portfolios to be sufficient to meet its cash needs for benefits and expenses[515]. - The primary uses of cash by the Parent Company include shareholder dividends, stock repurchases, interest on debt, and operating expenses[494].

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. 001-35890 Tempest Therapeutics, Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | 45-1472564 | | -- ...