AI Platform and Drug Development - The company has developed an A.I. platform, RADR, which includes over 200 billion data points to enhance oncology drug discovery and development, reducing the time and cost to approximately $1.0-$2.5 million per program[1]. - The RADR platform has expanded with new modules, including an AI-powered ADC development module and a blood-brain barrier permeability prediction model capable of processing up to 100,000 molecules per hour[26]. - The RADR platform utilizes over 200 advanced machine learning algorithms to identify specific cancer patient populations for targeted therapies[26]. - The RADR platform consists of over 200 billion oncology-focused data points, derived from over 130,000 patient records and covering over 135 cancer subtypes[45]. - The RADR platform is designed to quickly identify and guide the development of compounds through drug rescue, repositioning, or de-novo development[52]. - The RADR platform's generative AI capabilities are planned to increase in functionality for both small molecule development and ADC development[65]. - The RADR platform is being utilized to identify biomarkers that correlate with heightened sensitivity to LP-300, which may accelerate clinical development[139]. Clinical Pipeline and Drug Candidates - The clinical pipeline includes three lead drug candidates: LP-300, LP-184, and LP-284, with LP-184 receiving FDA Fast Track Designations for glioblastoma and triple negative breast cancer, targeting a market opportunity exceeding $2 billion annually[4]. - The company is conducting a targeted Phase 2 trial for LP-300 in advanced non-small cell lung cancer patients, and LP-184 has shown promising anticancer activity in multiple solid tumor indications[29]. - LP-300 is currently in a Phase 2 clinical trial with an 86% clinical benefit rate and a 43% objective response rate observed in the U.S. safety lead-in cohort[4]. - LP-284 achieved a complete metabolic response in a heavily pre-treated patient after just two cycles of treatment, demonstrating its potential in hematological cancers[48]. - LP-184 has received Orphan Drug Designation from the FDA for pancreatic cancer, malignant glioma, and ATRT, indicating its potential to address significant unmet needs in cancer treatment[144]. - The company plans to conduct a Phase 1b/2 dose expansion study of LP-184 in adult patients with advanced triple-negative breast cancer, pancreatic cancer, and non-small cell lung cancer[152]. - The company is launching the HARMONIC™ LP-300 Phase 2 clinical trial targeting never smokers, a growing population with no approved therapies[99]. Collaborations and Partnerships - The ADC program is advancing with a collaboration with Bielefeld University, focusing on cryptophycin as a drug payload, demonstrating potency at ultra-low concentrations in preclinical studies[31]. - Actuate Therapeutics collaboration aims to develop novel biomarker signatures for cancer treatment, with potential stock benefits contingent on collaboration results[77]. - TTC Oncology collaboration focuses on accelerating the development of TTC-352, a selective estrogen receptor partial agonist, for metastatic ER+ breast cancer[78]. - Oregon Therapeutics collaboration targets optimization of XCE853, a PDI inhibitor, for various cancer indications, including drug-resistant ovarian and pancreatic cancers[79]. Market and Financial Projections - The estimated mean cost to deliver a new oncology medicine is $4.4 billion, with a Phase 1-to-approval probability of success at just 3.3%[47]. - In 2025, biopharma AI spending is projected to reach $3 billion, driven by the need to reduce drug development time and costs through AI-enhanced methodologies[50]. - The company plans to introduce its proprietary A.I. platforms as a potential revenue source in 2026, targeting biopharma companies and researchers[36]. - In 2026, the company plans to introduce proprietary AI platforms as a potential source of revenue, targeting precision oncology and translational research support[72]. Patient Demographics and Treatment Needs - Lung cancer accounts for approximately 12% of all new cancer diagnoses and 21% of cancer deaths in the US, highlighting the urgent need for effective treatments[100]. - In 2026, an estimated 11,444 cases of NSCLC will be diagnosed in female non-smokers, representing about 5% of all lung cancer cases in the US[108]. - The global incidence of lung cancer in 2022 was approximately 2.5 million, with adenocarcinoma being the most common subtype[104]. - Current treatment options for advanced NSCLC have plateaued, with a median survival time of only 8 to 10 months, underscoring the need for innovative therapies like LP-300[110]. - Approximately 21 TKIs have been approved for treating NSCLC with identified TK mutations, targeting pathways such as EGFR, ALK, and ROS1[111]. Efficacy and Safety of LP-300 - The combination of carboplatin, pemetrexed, and LP-300 has shown no dose-limiting toxicities and encouraging clinical efficacy data compared to chemotherapy alone[92]. - LP-300 demonstrated a significant increase in overall survival for female never smokers, with survival extending from 13 months to 25 months in a subgroup analysis[95]. - The Phase 3 trial showed a 2-year survival rate of 51.4% for females with advanced adenocarcinoma receiving LP-300 in combination with paclitaxel and cisplatin[95]. - The LP-300 treatment arm exhibited potential benefits in reducing anemia and protecting against chemotherapy-induced kidney toxicity, which are critical issues for female patients[95]. - The trial included 288 patients, with a statistically significant improvement in overall survival for female never smokers (p-value = 0.0167; HR=0.367) compared to standard of care[94]. - LP-300 has shown potential to protect against chemotherapy-induced kidney toxicity and anemia, enhancing the safety profile of chemotherapy[120]. - LP-300's mechanism of action includes enhancing tumor-directed chemosensitivity and reducing the toxicity of chemotherapy drugs like cisplatin[125]. Efficacy and Safety of LP-184 - In the Phase 1a clinical trial, 63 patients were treated with LP-184, achieving a tumor shrinkage rate of 22% among evaluable patients, with durable disease control reported in 3 patients[150]. - The projected therapeutic concentration of LP-184 was achieved at dose level 7, demonstrating a manageable safety profile with primarily Grade 1 and Grade 2 adverse events[150]. - STAR-001 has shown potential as an effective treatment for glioblastoma, particularly in patients with MGMT overexpression, which accounts for up to 50% of GBM cases[162]. - LP-184 has shown a 90% tumor shrinkage in pancreatic cancer models within 8 weeks, compared to over eleven-fold growth in untreated controls[179]. - The RADR platform identified a 10-gene signature that predicts sensitivity to LP-184, with PTGR1 being a key biomarker[178]. Efficacy and Safety of LP-284 - In preclinical studies, LP-284 demonstrated a 93% tumor growth inhibition in combination with rituximab for double hit lymphoma, compared to 57% with rituximab alone[205]. - The FDA has granted LP-284 Orphan Drug Designation for treating mantle cell lymphoma, high-grade B-cell lymphoma, and soft tissue sarcoma[204]. - LP-284 demonstrated significantly greater tumor growth inhibition (TGI) in MCL xenograft models compared to standard-of-care agents Ibrutinib and Bortezomib[207]. - The company plans to enroll up to 40 additional patients with Relapsed or Refractory DLBCL and MCL in Phase 1b for further clinical evaluation[214]. - Nearly all MCL patients relapse from current standard-of-care agents, highlighting the urgent need for novel therapeutic options[218].

Financial Performance - In Q4 2025, Ero Copper Corp. reported revenues of $320.2 million, a significant increase from $122.5 million in Q4 2024, representing a year-over-year growth of 161.5%[11] - The company achieved a gross profit of $164.4 million in Q4 2025, compared to $52.4 million in Q4 2024, marking a 213.5% increase[11] - Ero's adjusted EBITDA for Fiscal 2025 was $409.7 million, significantly higher than $216.2 million in Fiscal 2024, representing an increase of 89.6%[11] - The company reported a net income attributable to owners of $263.7 million for Fiscal 2025, a turnaround from a loss of $68.5 million in Fiscal 2024[11] - Cash flow from operations in Q4 2025 was $129.1 million, compared to $60.8 million in Q4 2024, reflecting an increase of 112.5%[11] - Total revenue for Fiscal 2025 was $785.8 million, a 67% increase from $470.3 million in Fiscal 2024[44] - Net income for Q4 2025 was $78,738,000, a turnaround from a net loss of $48,928,000 in Q4 2024[40] - The company reported a net income of $266.9 million for Fiscal 2025, a significant turnaround from a net loss of $67.8 million in Fiscal 2024[44] Production and Operations - Total copper production for Fiscal 2025 reached 64,307 tonnes, up from 40,600 tonnes in Fiscal 2024, reflecting a growth of 58.5%[8] - The company processed 1,174,732 tonnes of ore in Q4 2025 at the Caraíba Operations, an increase from 719,942 tonnes in Q4 2024, representing a growth of 63.2%[8] - Consolidated copper production increased 18.3% quarter-on-quarter to 19,706 tonnes, with full-year production totaling 64,307 tonnes in concentrate[12] - Gold production at the Xavantina Operations rose 52.5% quarter-on-quarter to 13,837 ounces, with full-year production reaching 37,291 ounces at C1 cash costs of $976 per ounce[14] - The Tucumã Operation declared commercial production effective July 1, 2025, contributing to the overall increase in copper production and operational efficiency[9] - The Tucumã Operation produced 9,275 tonnes of copper in Q4 2025, a 22.4% increase from Q3 2025, with C1 cash costs of $1.75 per pound[24] - The Caraíba Operations achieved Q4 copper production of 10,431 tonnes, with full-year production at 36,035 tonnes and C1 cash costs of $2.22 per pound[20] Cost and Expenses - Cost of sales for copper in Q4 2025 was $131.7 million, up 134% from $56.1 million in Q4 2024, primarily due to increased production costs at the Tucumã Operation[42] - Cost of sales for gold in Q4 2025 was $24.1 million, a 72% increase from $14.0 million in Q4 2024, reflecting higher mining costs and increased tonnes processed[42] - Finance expense for Q4 2025 was $11.3 million, significantly higher than $3.9 million in Q4 2024, mainly due to interest on loans following the commencement of commercial production at the Tucumã Operation[42] - Income tax expense for Q4 2025 was $23.5 million, compared to a recovery of $5.9 million in Q4 2024, reflecting increased income before taxes[42] Liquidity and Capital Expenditures - Ero's available liquidity at the end of 2025 was $150.4 million, up from $90.4 million at the end of 2024, indicating a 66.7% increase[11] - Cash and cash equivalents as of December 31, 2025, totaled $105.4 million, an increase of $55.0 million from December 31, 2024[52] - Total capital expenditures for 2026 are expected to range from $275 to $320 million, including approximately $80 million for growth capital at the Caraíba Operations[36] - The Caraíba Operations reported a total capital expenditure of $176.577 million in 2025, compared to $165.681 million in 2024, indicating an increase of about 6%[109] Future Outlook - The Company expects 2026 copper production from the Caraíba Operations to be between 35,000 to 40,000 tonnes, with C1 cash cost guidance of $2.30 to $2.50 per pound[21] - The Tucumã Operation is projected to produce 32,500 to 37,500 tonnes of copper in 2026, with C1 cash cost guidance of $1.95 to $2.15 per pound[25] - The Company plans to drill an additional 50,000 meters in 2026 to upgrade inferred mineral resources and extend mineralization in high-grade zones[16] - The Company expects gold production in 2026 to range between 40,000 to 50,000 ounces, with the lowest production anticipated in Q1 2026 due to mine sequencing[29] - Consolidated copper production is projected to be between 67,500 to 77,500 tonnes in 2026, reflecting an increase of up to 20% compared to 2025[32] Risk Management - The Company is focused on managing risks related to fluctuations in copper and gold prices, which may impact future financial performance and liquidity[157] - The Company acknowledges that actual results may differ materially from forward-looking statements due to various risks and uncertainties[159] - Future concentrate treatment and refining charges, as well as currency exchange rates, are critical factors influencing the Company's financial outlook[157] Regulatory and Compliance - The Company emphasizes the importance of obtaining necessary governmental and regulatory approvals on favorable terms to advance its operations[161] - All mineral resource and reserve estimates are prepared in accordance with Canadian NI 43-101 standards, which may differ from U.S. SEC requirements[163] - The Company disclaims any obligation to update forward-looking statements unless required by applicable securities laws[162]

Financial Position - As of December 31, 2025, cash and cash equivalents totaled $3.5 million, a decrease from $3.8 million as of December 31, 2024[6]. - Total assets increased to $8.2 million as of December 31, 2025, compared to $4.1 million as of December 31, 2024[20]. - The company estimates that its current cash resources will fund planned expenditures into the third quarter of 2026[6]. Revenue and Income - Product revenue from fire safety equipment sales was $0.7 million for both the three months and year ended December 31, 2025[8]. - The company reported a $4.9 million gain on deconsolidation of its former subsidiary, Cyclacel Limited, contributing to total other income of $5.4 million for the year[11]. Expenses - Research and development (R&D) expenses were $0 for the three months and $0.8 million for the year ended December 31, 2025, significantly down from $0.9 million and $6.7 million for the same periods in 2024[9]. - General and administrative expenses increased to $1.3 million and $7.7 million for the three months and year ended December 31, 2025, compared to $0.9 million and $5.4 million for the same periods in 2024[10]. Net Loss - The net loss for the year ended December 31, 2025, was $3.0 million, a reduction from $11.2 million in 2024[13]. Future Growth - The acquisition of Fitters Sdn. Bhd. on September 12, 2025, is expected to drive future growth in fire safety protection and distribution activities[4]. Dividends - The company declared a quarterly cash dividend of $0.15 per share on its 6% Convertible Exchangeable Preferred Stock, paid on February 1, 2026[7].

Financial Position - As of December 31, 2025, cash and cash equivalents totaled $3.5 million, a decrease from $3.8 million as of December 31, 2024[6]. - Total assets increased to $8.2 million as of December 31, 2025, compared to $4.1 million in 2024, reflecting the impact of the acquisition and improved financial position[20]. Cash Flow Management - Net cash used in operating activities was $4.8 million for the twelve months ended December 31, 2025, compared to $8.0 million for the same period in 2024, indicating improved cash management[6]. Revenue and Expenses - Product revenue from fire safety equipment sales was $0.7 million for both the three months and year ended December 31, 2025[8]. - Research and development (R&D) expenses were $0 for the three months ended December 31, 2025, and $0.8 million for the year, significantly down from $0.9 million and $6.7 million for the same periods in 2024[9]. - General and administrative expenses for the year ended December 31, 2025, were $7.7 million, up from $5.4 million in 2024, primarily due to one-time costs associated with changes in company control[10]. Other Income - Total other income for the year ended December 31, 2025, was $5.4 million, compared to an income of $10,000 for the same period in 2024, driven by a $4.9 million gain on deconsolidation of the former subsidiary[11]. Net Loss - Net loss for the year ended December 31, 2025, was $3.0 million, a reduction from $11.2 million in 2024[13]. Dividends - The company declared a quarterly cash dividend of $0.15 per share on its 6% Convertible Exchangeable Preferred Stock, paid on February 1, 2026[7]. Future Growth - The acquisition of Fitters Sdn. Bhd. on September 12, 2025, is expected to drive future growth in fire safety protection and distribution activities[4].

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, 2025 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: 001-43097 ___________________________ Veradermics, Incorporated (Exact name of r ...

Financial Performance - Lantern Pharma reported a 19% reduction in total operating expenses year-over-year while advancing multiple clinical programs[4]. - Research and development expenses for the year ended December 31, 2025, were approximately $11.5 million, a decrease of 29% from $16.1 million in 2024[33]. - General and administrative expenses increased by approximately 6% to $6.5 million for the year ended December 31, 2025, compared to $6.1 million in 2024[34]. - The net loss for the year ended December 31, 2025, was approximately $17.1 million, representing an 18% reduction from a net loss of $20.8 million in 2024[35]. - Cash, cash equivalents, and marketable securities totaled approximately $10.1 million as of December 31, 2025, down from $24.0 million as of December 31, 2024[32]. - The company sold 356,922 shares under its ATM Sales Agreement for gross proceeds of $1.6 million during the year ended December 31, 2025[39]. - The company will need to secure substantial additional funding in the near future to support its operations and clinical advancements[32]. Clinical Trials and Developments - The LP-300 Phase 2 HARMONIC™ trial achieved an 86% clinical benefit rate and a 43% objective response rate in initial safety lead-in cohorts[12]. - The LP-184 Phase 1a trial achieved a 48% clinical benefit rate at or above the therapeutic dose threshold, with plans to advance to Phase 1b/2 trials[13]. - The proposed amendments to the HARMONIC™ study include increasing the maximum treatment cycles from six to eight and focusing on patients with EGFR exon 21 L858R mutations[9]. - The company plans to initiate multiple clinical trials in 2026, including LP-184 Phase 1b/2 trials in TNBC and NSCLC, subject to funding[49]. Market Opportunities - Lantern's clinical pipeline has an estimated annual market potential exceeding $15 billion, with multiple programs advancing towards key milestones in 2026[5]. - The global market opportunity for never-smoker NSCLC is estimated at over $4 billion annually, with no approved therapies currently available[11]. - Lantern anticipates a potential near-term market opportunity of $20 to $50 billion for its AI platforms, aiming to capture a meaningful share of this market[28]. - The estimated annual market potential for the company's AI-driven pipeline of innovative product candidates exceeds $15 billion[48]. AI Platforms and Innovations - The RADR® AI platform's global expansion includes the establishment of an AI Center of Excellence in India to enhance biopharma development opportunities[20]. - The withZeta.ai platform is in active demo and beta testing with over 25 biotech companies, representing a significant near-term commercialization opportunity[22]. - The AI platform predictBBB.ai achieved 94.1% accuracy for blood-brain barrier permeability prediction, enhancing its molecular and structural analysis capabilities[30]. - The LBx-AI Liquid Biopsy tool demonstrated 86% accuracy in predicting treatment response in NSCLC[30]. Communication and Disclosure - Lantern Pharma disseminates material information through various channels including its website, press releases, SEC filings, digital newsletters, and social media[54]. - Investors are encouraged to review publicly available information as it may contain material insights about the company[54]. - The list of disclosure channels may be updated periodically[54].

Financial Performance - Net premiums earned for Q4 2025 decreased to $555,000 from $595,000 in Q4 2024, attributed to a lower weighted average rate on reinsurance contracts[11] - For the year ended December 31, 2025, net premiums earned were approximately $2.3 million, consistent with the previous year[12] - Net income for Q4 2025 was $120,000, or $0.02 per share, compared to a net loss of $460,000, or ($0.05) per share in Q4 2024[13] - Total revenue for the three months ended December 31, 2025, was $576 million, an increase from $422 million in the same period of 2024[32] - The company reported a net loss attributable to ordinary shareholders of $120 million for the three months ended December 31, 2025, compared to a loss of $460 million in the same period of 2024[32] Expenses and Ratios - The total expenses for Q4 2025 increased to $1.04 million from $497,000 in Q4 2024, primarily due to underwriting losses related to Hurricane Milton[15] - General and administrative expenses rose significantly to $531 million compared to $431 million in the previous year[32] - Total expenses for the year ended December 31, 2025, reached $6,040 million, up from $2,171 million in 2024[32] - The loss ratio for the year ended December 31, 2025, increased to 119.9% from 0% in 2024, reflecting losses from reinsurance contracts affected by Hurricane Milton[18] - The combined ratio for the year ended December 31, 2025, rose to 264.1% from 94.3% in 2024, driven by higher general and administrative expenses and incurred losses[21] - The loss ratio for the three months ended December 31, 2025, was 80.9%, indicating a significant increase from 0.0% in the previous year[32] - The combined ratio for the year ended December 31, 2025, was 264.1%, compared to 94.3% in 2024, reflecting deteriorating underwriting performance[32] Investments and Strategic Initiatives - The company anticipates its Balanced Yield Token to achieve a 25% return, exceeding its initial target of 20%, while the High Yield Token remains on track for a 42% return[2] - The company has increased its restricted cash and cash equivalents to $6.98 million as of December 31, 2025, from $5.89 million in 2024[17] - The company is exploring opportunities to expand the SurancePlus model into additional high-quality, cash-generating assets, including tokenization of data center revenue streams[6] - The company has established a strategic presence in the Solana ecosystem and formed a collaboration with LayerZero to distribute offerings across over 160 blockchain networks[7] Shareholder Information - Weighted-average shares outstanding increased to 7,664,122 for the three months ended December 31, 2025, from 6,121,020 in the same period of 2024[32] Other Financial Metrics - The company experienced a realized gain on other investments of $35 million for the year ended December 31, 2025[32] - The change in fair value of equity securities resulted in a loss of $42 million for the three months ended December 31, 2025[32]

Product Offerings - The company offers a range of cordless data capture devices utilizing barcode scanning and RFID/NFC technologies, compatible with Apple, Google, and Microsoft operating systems [16]. - The XtremeScan product line includes configurations designed for iPhone, with military-grade durability and compatibility with iPhone 17e, targeting industrial sectors [17]. - The SocketCam family features the C820 and C860 camera-based barcode scanning solutions, with the C860 providing advanced capabilities for reading damaged barcodes in poor lighting [18]. - The DuraScan family includes rugged scanners designed for harsh environments, ideal for warehousing, manufacturing, and distribution [19]. - The CaptureSDK simplifies integration for app developers, allowing them to incorporate data capture capabilities into their applications [22]. Market and Distribution - The company distributes products through a global network, including major distributors like Ingram Micro and Amazon, enhancing product availability [33]. - The mobile markets for data capture solutions are expected to grow, driven by increased adoption of mobile applications and the mobile workforce [30]. - The company emphasizes competitive pricing and product updates to maintain market relevance and address component pricing changes [32]. - The company’s ability to grow sales is contingent on establishing and maintaining distribution relationships, which may not be successful [62]. Financial Performance - Revenue for 2025 was $15.1 million, representing a decrease of 20% compared to revenue of $18.8 million for 2024 [120]. - Gross margins on revenue decreased to 49.7% in 2025 from 50.4% in 2024, reflecting lower sales volumes [121]. - The net loss for 2025 was $14,378,538, significantly higher than the net loss of $2,242,350 in 2024 [150]. - Basic and fully diluted net loss per share for 2025 was $(1.81), compared to $(0.30) in 2024 [150]. - Total revenues for the year ended December 31, 2025, were $15,078,000, down from $18,763,000 in 2024, representing a decrease of approximately 19.4% [206]. Research and Development - The company has invested significant resources in R&D to design products compatible with major operating systems like iOS, Android, and Windows, which has diverted financial and personnel resources from other projects [65]. - Research and development expenses were approximately $4.4 million in 2025, a decrease of 8% compared to $4.7 million in 2024 [122]. - Research and development expenses as a percentage of revenue were 29% in 2025, up from 25% in 2024, indicating a focus on high-priority projects [123]. Risks and Challenges - The company may require additional capital in the future, which may not be available on reasonable terms, potentially leading to operational suspensions [46]. - The company relies on a limited number of suppliers for components, which could lead to operational reductions if procurement issues arise [52]. - The company’s sales are significantly dependent on app providers successfully integrating and marketing their applications, which could impact revenue projections [48]. - The market for the company’s products is highly competitive, with potential price reductions and loss of market share as significant risks [57]. - The company faces risks related to maintaining effective internal controls, which are necessary for reliable financial reporting [50]. Intellectual Property - The company has been granted U.S. patents and registered trademarks for its products, reinforcing its commitment to proprietary technology and intellectual property [39]. - The company relies on patent, copyright, trademark, and trade secret laws to protect its intellectual property, but there is no guarantee that these measures will be effective [66]. - The company may face claims of intellectual property infringement, which could result in substantial liabilities due to the aggressive nature of patent litigation in the industry [69]. Operational Metrics - The total employee headcount was 53 as of December 31, 2025, down from 59 in 2024 [43]. - Ingram Micro®, BlueStar Inc., and ScanSource, Inc. represented approximately 49% of worldwide sales in 2025, down from 55% in 2024 [60]. - The company allows distributors to return inventory for full credit, which could adversely affect future operating results and liquidity [63]. - The company has total contractual obligations of $5,378,000, with $2,869,000 due within one year [131]. Cash Flow and Assets - Net cash used in operating activities was $1,249,819 for 2025, compared to $521,485 for 2024 [105]. - Cash and cash equivalents at the end of 2025 were $2,032,468, down from $2,491,964 at the end of 2024 [157]. - Total current assets decreased to $8,635,196 in 2025 from $9,595,217 in 2024, a decline of approximately 10% [145]. - Total liabilities increased to $10,158,727 in 2025 from $9,185,286 in 2024, reflecting a rise of about 10.6% [147]. Lease and Legal Matters - The company entered into an 87-month lease for a facility in Fremont, California, with a current monthly rent of $54,940, subject to annual increases [94]. - The company has not been involved in any material legal proceedings [95]. Cybersecurity - The company’s cybersecurity program is overseen by the Chief Information Officer, focusing on risk management and compliance [88][89]. - The company has experienced minor cybersecurity incidents but has not faced any material breaches affecting its operations [92].

Commercial Spaceflight Operations - Virgin Galactic has reservations for approximately 675 future astronauts, representing about $188 million in expected future spaceflight revenue upon completion of the spaceflights[27]. - The company completed its sixth commercial spaceflight in six months with 'Galactic 06' in January 2024, marking an unprecedented launch rate[25]. - The company commenced commercial operations with its spaceship, VSS Unity, and launch vehicle carrier aircraft, VMS Eve, in 2023, aiming for 125 space missions per year with its first two spaceships[43]. - The company has flown dozens of research-related missions, with three commercial spaceflights dedicated to research, including 'Galactic 01', 'Galactic 05', and 'Galactic 07'[86]. - The company has generated limited revenue from commercial spaceflight operations, which commenced in June 2023[123]. Next-Generation Spaceships - The next-generation spaceships are expected to enter commercial service in Q4 2026, designed for easier maintenance and increased lifecycles, with a capacity of six passengers, 50% more than the current model[28]. - The next-generation spaceships are designed to feature six passenger seats and are expected to fly twice per week in steady-state operations, with test flights beginning in Q3 2026 and commercial service expected to start in Q4 2026[43]. - The company expects to ramp up to a targeted rate of 125 space missions per year with the first two next-generation spaceships, designed to fly twice a week, starting in Q4 2026[60]. - The company is assembling next-generation spaceships in a new 150,000 square foot facility in Arizona, with additional facilities for rocket motor testing in Mojave, California[93]. Research and Development - The company is exploring opportunities to use a derivative model of its launch vehicle as a High-Altitude, Long-Endurance aircraft for government and research purposes[29]. - Virgin Galactic's commitment to advancing research includes a continuation of its partnership with Purdue University for a research mission scheduled for 2027[32]. - The company is under contract with NASA for research payload flights as part of the NASA Flight Opportunities Program, which began in September 2024 and has an initial term of 5 years[86]. - The company is focused on developing partnerships with luxury travel agencies to enhance sales and reach target audiences effectively[84]. - Investments in new technologies and services are ongoing, with a focus on developing a next-generation launch vehicle, but the expected benefits may not materialize[156]. Financial Performance and Projections - The company incurred net losses of $278.9 million and $346.7 million for the years ended December 31, 2025 and 2024, respectively[123]. - The company expects its operating expenses to increase as it scales spaceflight operations and develops next-generation spaceflight vehicles[124]. - The base price for spaceflight tickets has increased from $450,000 in 2021 to $600,000 in 2023, with recent sales reopening at a price of $750,000 per seat[83]. - The company has a significant backlog of customer demand, having flown 23 paying astronauts and dozens of payloads for research missions as of December 31, 2025[44]. - The company may require substantial additional funding to finance operations, raising doubts about its ability to continue as a going concern[147]. Operational Challenges - The company announced a workforce reduction of approximately 185 employees, constituting about 18% of its workforce, to decrease costs and realign resources[142]. - The company faces potential operational difficulties due to the need to hire and train more employees, which could strain resources and impact financial results[143]. - The company is vulnerable to changes in consumer preferences and economic conditions, which could lead to decreased demand for spaceflight experiences during recessionary periods[144]. - The company relies on a limited number of suppliers for critical raw materials, which could lead to production delays or increased costs if supply is disrupted[149]. - The company faces operational risks from natural disasters and other hazards that could disrupt manufacturing and spaceflight schedules[205]. Regulatory and Compliance Issues - The company is subject to extensive and evolving government laws and regulations, which could materially affect its operations and financial condition[184]. - The company anticipates submitting a license application to the FAA by Q2 2026 to comply with new regulations for commercial spaceflight operations[187]. - The company must maintain compliance with various privacy laws, including the California Consumer Privacy Act (CCPA), which imposes significant obligations[193]. - The company is subject to GDPR compliance, with potential penalties of up to €20 million or 4% of worldwide annual turnover for non-compliance[194]. - The company is subject to risks associated with government contracts, including potential early termination and compliance audits[172]. Competition and Market Dynamics - The company competes with Blue Origin in the commercial spaceflight industry, which is currently evolving and competitive, with increased passenger capacity and flight frequency expected from next-generation spaceships[99]. - The commercial spaceflight industry is expected to be competitive, with potential competition from well-funded entities that may shift focus to suborbital spaceflight[153]. - The company's success in the commercial spaceflight market depends on factors such as pricing, consumer confidence, and the frequency of offerings[155]. - The market for commercial spaceflight is still emerging, and the company’s estimates for the total addressable market may prove to be incorrect[126]. Risks and Liabilities - The company faces significant competition from larger firms with greater resources, which may impact its ability to develop technologies and maintain pricing strategies[154]. - The company’s spaceflight systems may have shorter useful lives than anticipated, leading to higher maintenance costs and potential adverse effects on financial results[151]. - The company is involved in various legal proceedings, including class action lawsuits, which could divert management's attention and incur significant expenses[209]. - The company’s insurance coverage may be inadequate to cover liabilities related to operational risks, potentially harming its financial condition[208]. - Liability for environmental contamination can be strict and joint, potentially leading to significant financial implications for the company[217].

Tokenization and Digital Securities - In 2023, the company launched the DeltaCat Re Token, the first "on-chain" reinsurance security developed by a public company subsidiary, with a total offering of up to $5.0 million at $10.00 per token[18][26]. - The Private Placement for DeltaCat Re Tokens raised $2,447,760, with approximately $1,280,000 from third-party investors and $1,167,000 from the company itself[27]. - The company plans to issue additional tokenized reinsurance securities, including EpsilonCat Re in 2024 and ZetaCat Re and EtaCat Re in 2025, targeting high yield and balanced yield returns[18][29]. - The company intends to leverage its tokenization experience to develop Web3-focused business offerings related to the tokenization of real-world assets[18][43]. - SurancePlus has launched a series of real-world asset-backed digital securities, starting with the DeltaCat Re token issued in 2023 on the Avalanche blockchain[82]. - The 2024/25 offering of EpsilonCat Re tokens was announced on March 18, 2024, with subsequent offerings planned for 2025/26 and 2026/27 on the Solana blockchain[82]. - The company is exploring opportunities in the tokenization of real-world assets (RWAs), with the RWA asset tokenization market projected to reach $16.1 trillion by 2030[81]. - The tokenization business is at an early stage, and its success is uncertain, with potential fluctuations in operational results[94]. Reinsurance Operations and Strategy - The company aims to achieve long-term growth in book value per share by writing fully collateralized reinsurance contracts, primarily focusing on property catastrophes in the Gulf Coast region[19]. - The profitability of the reinsurance operations is influenced by the adequacy of premiums and investment income covering costs, which include acquisition costs and claim payments[20]. - The company employs an opportunistic underwriting strategy, which may lead to significant fluctuations in operational results from period to period[22]. - The company primarily writes property catastrophe reinsurance, expecting that substantially all products will be in the form of treaty reinsurance contracts[53]. - The company anticipates a continued focus on large transactions with a relatively small number of cedants, maintaining a portfolio characterized by a limited number of reinsurance contracts[55][62]. - The company’s contracts are generally written on an excess-of-loss basis, with coverage limits specified per event, and premiums typically earned over a 12-month contract term[49][56]. - The company plans to source the majority of its business through reinsurance brokers, leveraging their established relationships to access a broad range of clients[64][65]. - The company is committed to disciplined underwriting and risk management, focusing on optimizing long-term growth rather than predictable quarterly earnings[37]. - The company anticipates continued opportunities for growth through organic expansion and acquisitions in the reinsurance market[38]. Financial Management and Capital - A Promissory Note was issued for $1,000,000 with a 16% annual interest rate, secured by a Security Agreement, to be used for working capital and general corporate purposes[34]. - The company’s investment strategy is opportunistic, aiming to increase shareholder value through supplemental investment income and potential investments in real estate[67]. - The company may face significant risks related to capital availability and the need for additional funding to support growth[94]. - The reinsurance subsidiaries are subject to minimum capital and surplus requirements, and failure to meet these could lead to regulatory actions[87]. - Oxbridge Re anticipates that SurancePlus may become a significant revenue stream, potentially reducing annual capital deployed into collateralizing reinsurance contracts[83]. - Oxbridge Reinsurance Limited and Oxbridge Re NS are required to maintain a statutory minimum capital requirement of $500 and a prescribed capital requirement of $500[87]. Market Environment and Competition - Florida's property and casualty insurance market has approximately $2.18 trillion in insured residential property exposure, with Hurricanes Helene and Milton causing estimated insured losses exceeding $55 billion in 2024[51]. - The reinsurance industry is highly competitive, with major competitors including Renaissance Re, Berkshire Hathaway, and PartnerRe Ltd, which have strong financial ratings and established client relationships[78][79]. Claims Management and Reserves - Claims management is conducted internally, with a focus on establishing case reserves and auditing clients' claims handling abilities[70][71]. - The company’s loss reserves are based on estimates from ceding companies and independent actuaries, reflecting the inherent uncertainty in predicting future claims[72][74]. Regulatory and Operational Considerations - The company is subject to regulation by the Cayman Islands Monetary Authority, which oversees its Class C Insurer's License[86]. - The company is not currently involved in any litigation or arbitration, but anticipates potential legal challenges typical in the insurance and reinsurance industry[85]. - As of March 26, 2026, the company has four full-time employees and plans to outsource certain functions as necessary[84].