Financial Performance - Total revenue for the three months ended February 28, 2025, was $26.19 million, a 57.3% increase from $16.65 million for the same period in 2024[44]. - E-commerce revenue (direct to consumers) reached $20.16 million, up 53.7% from $13.10 million in the prior year[44]. - Wholesale revenue (dealer/distributors) increased to $6.03 million, a 69.5% rise from $3.55 million in the previous year[44]. - For the three months ended February 28, 2025, the Company recorded net income of $1.662 million, compared to $17,000 for the same period in 2024[64]. - The Company reported total revenue of $26.190 million for the three months ended February 28, 2025, up from $16.654 million for the same period in 2024, representing a year-over-year increase of approximately 57.5%[83]. Advertising and Expenses - For the three months ended February 28, 2025, the company recorded advertising costs of approximately $4.0 million, compared to $2.8 million for the same period in 2024, representing a 42.9% increase[32]. - Total stock-based compensation expense for the three months ended February 28, 2025, was $0.8 million, a decrease from $0.9 million in the same period in 2024[57]. - Stock-based compensation expense for options granted was $0.4 million for both the three months ended February 28, 2025, and February 29, 2024[61]. - The total lease cost for the three months ended February 28, 2025, was $200,000, compared to $160,000 for the same period in 2024[77]. Assets and Investments - As of February 28, 2025, the total fair value of marketable debt securities was $15.954 million, up from $20.208 million as of November 30, 2024, indicating a decrease of 21.2%[28]. - The company classified its investments as available-for-sale, with total marketable securities valued at $11.620 million as of February 28, 2025[25]. - The Company loaned $1.6 million to Byrna LATAM in January 2023, with quarterly reviews to assess the need for credit loss estimates based on various financial factors[88]. - The Company's marketable debt securities include U.S. Treasury Securities and Corporate Bonds, with an investment policy that limits exposure to any one type of investment and requires a minimum rating of AA-/Aa3[89]. Liabilities and Revenue Recognition - The balance of deferred revenue decreased to $0.5 million as of February 28, 2025, down from $2.7 million in the prior year[42]. - The total allowance for expected credit losses was less than $0.1 million as of February 28, 2025, compared to $0.6 million in the same period last year[40]. - Accounts receivable as of February 28, 2025, was $2.9 million, consistent with the previous periods[39]. Ownership and Equity - The company acquired a 51% ownership interest in Byrna LATAM for $0.5 million in January 2023, which was later sold for $1 on August 19, 2024[29][30]. - The loan to Byrna LATAM was amended to a fixed amount of $1,431,112 plus accrued interest of $203,373, totaling $1,634,485, with repayment starting on August 19, 2025[31]. - The Company had 818,033 unvested and outstanding RSUs as of February 28, 2025, down from 915,230 as of November 30, 2024[60]. - The weighted-average number of shares used in computing diluted net income per share increased to 24,098,635 for the three months ended February 28, 2025, from 22,838,827 in the prior year[64]. Regulatory and Accounting Changes - The company anticipates that the adoption of ASU 2023-07 will not have a material impact on its consolidated financial statements[19]. - The company is currently evaluating the effect of ASU 2023-09 on its financial statements and disclosures, which is required to be effective for fiscal years beginning after December 15, 2024[20]. Foreign Operations - The Company recorded a translation adjustment loss of $0.1 million related to the South African rand during the three months ended February 28, 2025[85]. - The Company's South African subsidiary revenues, cost of goods sold, operating costs, and capital expenditures are denominated in South African rand, leading to increased volatility in sales and net earnings when translated into U.S. dollars[86]. Other Financial Metrics - The Company recorded interest income related to the loan receivable of less than $0.1 million for the three months ended February 28, 2025[31]. - Future lease payments under non-cancelable operating leases total $3.006 million as of February 28, 2025[78]. - The Company recorded an income tax expense of $0.1 million for the three months ended February 28, 2025, with an effective tax rate of 6.4%[80]. - The Company had deposits of $3.7 million with vendors for machinery and equipment as of February 28, 2025[47]. - Inventory increased to $23.18 million as of February 28, 2025, from $19.97 million as of November 30, 2024[45].

Exhibit 99.1 Quarterly total revenues reached RMB44.3 billion (US$6.1 billion) Quarterly deliveries reached 158,696 vehicles Full year total revenues reached RMB144.5 billion (US$19.8 billion) Full year deliveries were 500,508 vehicles BEIJING, China, March 14, 2025 — Li Auto Inc. ("Li Auto" or the "Company") (Nasdaq: LI; HKEX: 2015), a leader in China's new energy vehicle market, today announced its unaudited financial results for the quarter and full year ended December 31, 2024. Operating Highlights for ...

Revenue Growth - Byrna Technologies reported preliminary revenue of $26.2 million for Q1 2025, a 57% increase from $16.7 million in Q1 2024[2]. - E-commerce sales contributed $19.4 million, accounting for 74% of total sales, with a 53% year-over-year increase[3]. - Dealer sales rose by $1.9 million year-over-year, indicating strong growth in this channel[3]. - Byrna's marketing strategies and increased production levels at its Fort Wayne factory were key drivers of revenue growth[2]. - The company experienced only a 6% sequential decrease in sales from its strongest quarter, demonstrating resilience in a traditionally slow period[4]. Production and Supply Chain - The company produced a record 68,916 launchers in Q1 2025, representing a 219% increase compared to the same quarter last year[3]. - The company plans to transition most of its supply chain to the United States in 2025, reducing tariff exposure and reinforcing domestic manufacturing[7]. Product Development and Partnerships - Byrna's new product, the Compact Launcher, and partnerships with celebrity influencers are expected to support continued growth throughout 2025[5]. - Byrna's retail store presence is expanding, including a partnership with Sportsman's Warehouse[5]. Future Outlook - The company anticipates reporting full financial results for Q1 2025 in April, followed by a conference call for investors and analysts[8].

Financial Performance - Net sales for the three months ended February 28, 2025, were $19,072,066, a decrease of 8.5% compared to $20,842,538 for the same period in 2024[15] - Net income attributable to Northern Technologies International Corporation (NTIC) for the three months ended February 28, 2025, was $434,319, compared to $1,701,169 for the same period in 2024, a decline of 74.5%[15] - Net income for the six months ended February 28, 2025, was $1,396,774, compared to $2,953,469 for the same period in 2024, representing a decrease of approximately 53%[22] - Operating loss for the three months ended February 28, 2025, was $(332,933), compared to operating income of $2,206,271 for the same period in 2024[15] - NTIC's consolidated net sales decreased by 8.5% to $19,072,066 for the three months ended February 28, 2025, and by 1.5% to $40,410,459 for the six months ended February 28, 2025, compared to the same periods in the prior year[77] Assets and Liabilities - Total current assets decreased to $39,624,812 as of February 28, 2025, from $41,579,219 as of August 31, 2024, a reduction of 4.7%[12] - Total assets decreased to $93,695,214 as of February 28, 2025, from $94,676,502 as of August 31, 2024, a decline of 1.0%[12] - Total liabilities increased to $19,849,535 as of February 28, 2025, from $19,501,181 as of August 31, 2024, an increase of 1.8%[12] - NTIC's working capital was $21,416,426 as of February 28, 2025, down from $23,682,276 as of August 31, 2024[101] Cash Flow - Cash flows from operating activities for the six months ended February 28, 2025, were $3,198,741, down from $5,643,007 in the prior year, indicating a decline of about 43%[22] - Cash and cash equivalents increased to $5,090,630 as of February 28, 2025, from $4,952,184 as of August 31, 2024, an increase of 2.8%[12] - Net cash provided by operating activities during the six months ended February 28, 2025, was $3,198,741, a decrease from $5,643,007 for the same period in 2024[116] - Net cash used in investing activities for the six months ended February 28, 2025, was $2,580,757, compared to $1,505,927 for the same period in 2024[120] Expenses - Research and development expenses for the six months ended February 28, 2025, were $2,632,296, an increase from $2,348,177 in the prior year, reflecting a growth of 12.1%[15] - General and administrative expenses increased by 13.0% for the three months and 11.3% for the six months ended February 28, 2025, as a percentage of net sales rising to 19.2% and 18.6%, respectively[89] - Selling expenses decreased by 6.4% for the three months but increased by 4.1% for the six months ended February 28, 2025, with selling expenses as a percentage of net sales rising to 20.3% and 20.1%, respectively[88] Dividends - The company declared cash dividends of $0.07 per common share for both the three and six months ended February 28, 2025, consistent with the prior year[15] - The company paid dividends of $1,325,872 to stockholders during the six months ended February 28, 2025, compared to $1,319,866 in the prior year, reflecting a slight increase[22] Joint Ventures - NTIC's share of joint ventures' equity as of February 28, 2025 was $25,041,302, with undistributed earnings amounting to $24,096,958[39] - For the three months ended February 28, 2025, net sales from joint ventures totaled $19,799,875, with a gross profit of $8,241,116 and net income of $1,219,970[39] - Equity in income from joint ventures decreased by 47.3% to $620,730 for the three months and by 23.2% to $1,750,323 for the six months ended February 28, 2025, reflecting lower net sales and profitability from joint ventures[86] Stock and Compensation - Stock-based compensation expense for the six months ended February 28, 2025, was $676,334, slightly lower than $694,874 for the same period in 2024[22] - The company recognized stock option compensation expense of $602,821 for the six months ended February 28, 2025, compared to $694,874 for the same period in 2024[53] - As of February 28, 2025, the company had $1,618,997 of unrecognized stock option compensation expense expected to be recognized over 2.5 years[53] Market and Operational Risks - NTIC is exposed to foreign currency exchange rate risks, particularly with the Euro, Japanese Yen, Indian Rupee, Chinese Renminbi, South Korean Won, and British Pound against the U.S. Dollar[128] - The company has identified potential risks related to supply chain disruptions and the impact of geopolitical tensions on its operations and profitability[134] - NTIC's future performance may be affected by the automotive industry's shift towards electric vehicles and the associated market dynamics[134] Future Outlook - NTIC's management is focusing on expanding into the oil and gas industry, which is expected to enhance the demand for ZERUST® corrosion prevention solutions[73] - The Natur-Tec® product line is seeing significant opportunities, with ongoing efforts to expand the North American distribution network for bioplastic products[74] - NTIC expects to continue investing in joint ventures, research and development, and marketing efforts throughout fiscal 2025[103]

Financial Performance - Total third-party revenues for the year ended December 31, 2024, reached RMB 7,355,677 thousand, a significant increase from RMB 5,952,028 thousand in 2023, representing a growth of approximately 23.5%[40] - Net income for the year ended December 31, 2024, was RMB 1,567,026 thousand, compared to RMB 1,099,218 thousand in 2023, reflecting an increase of about 42.5%[40] - The total assets as of December 31, 2024, amounted to RMB 19,310,672 thousand, up from RMB 14,962,820 thousand in 2023, indicating a growth of approximately 29.4%[42] - Cash and cash equivalents as of December 31, 2024, totaled RMB 2,553,090 thousand, compared to RMB 1,414,184 thousand in 2023, marking an increase of about 80.4%[41] - The company reported a loss from operations of RMB 90,770 thousand for the year ended December 31, 2024, a decrease from a loss of RMB 62,291 thousand in 2023[40] - Other non-operating income for the year ended December 31, 2024, was RMB 659,714 thousand, compared to RMB 640,818 thousand in 2023, showing a slight increase of about 2.3%[40] - The share of income from subsidiaries and VIE for the year ended December 31, 2024, was RMB 1,368,435 thousand, compared to RMB 697,047 thousand in 2023, reflecting a growth of approximately 96.5%[40] - Total liabilities as of December 31, 2024, were RMB 4,347,852 thousand, compared to RMB 4,775,556 thousand in 2023, indicating a decrease of about 9.0%[42] - The company had short-term investments totaling RMB 6,639,389 thousand as of December 31, 2024, compared to RMB 4,445,982 thousand in 2023, representing an increase of approximately 49.3%[41] - Deferred revenue as of December 31, 2024, was RMB 3,084,839 thousand, up from RMB 2,790,780 thousand in 2023, indicating an increase of about 10.6%[41] Regulatory Environment - The company is subject to the Holding Foreign Companies Accountable Act, which could impact trading of its shares if audit reports are not from inspected firms[33] - The company operates as a Cayman Islands holding company with no equity ownership in the VIE, which introduces regulatory risks[63] - The company may face legal and regulatory scrutiny due to complex data protection and cybersecurity laws in mainland China[63] - The company is subject to the PRC Personal Information Protection Law, which took effect on November 1, 2021, and may face penalties for non-compliance[77] - The company may be required to disclose personal information to PRC governmental authorities, potentially damaging user trust[80] - The company has not obtained the Audio-Visual License required for providing internet audio-visual program services, which may expose it to penalties or legal proceedings[99] - The company holds an ICP license essential for its operations, but there is uncertainty regarding its renewal and sufficiency for all business activities[100] - The PRC Data Security Law and other regulations may impose additional operational costs and affect user growth and engagement[84] - The company is subject to various governmental authorities' regulations, which may impact its business activities and require compliance with a range of operational standards[98] - The company faces uncertainties regarding the interpretation and application of the PRC Foreign Investment Law, which took effect on January 1, 2020[174] Operational Challenges - The company faces significant competition in China's online recruitment service market, which may adversely affect its market share and financial condition if it cannot compete effectively[66] - A slowdown in the Chinese or global economy may lower hiring budgets of enterprise users, adversely affecting demand for the company's services[69] - The company must continue to improve user experience and technology systems, which may require substantial costs and resources[61] - The company’s ability to attract and retain users depends on the number of job postings and employers on its online recruitment platform[58] - The company has established a dedicated team to develop services for blue-collar job seekers to meet evolving user preferences[61] - The company’s operations are sensitive to environmental, social, and governance (ESG) issues, with potential impacts on capital access and regulatory compliance costs[144] - The company’s ability to attract and retain qualified personnel is critical, with intense competition for talent potentially affecting service quality and financial performance[150] Financial Risks - The company may require additional capital for business objectives, but obtaining such capital may be uncertain and could dilute shareholder equity[119] - The company's cash balances are concentrated in third-party financial institutions, exposing it to risks associated with liquidity and financial market conditions[111] - Changes in mobile operating systems and internet infrastructure could harm user retention and engagement on the online recruitment platform[115] - The company faces risks from employee misconduct and third-party actions that could harm its reputation and market share[108] - The online recruitment platform is vulnerable to malware, viruses, and phishing attacks, which could adversely affect user experience and retention[123] - Spam activities on the platform may lead to reduced user engagement and increased operational costs due to the diversion of technology team resources[124] - Compliance with the PRC Data Security Law is critical, as failure to meet obligations could result in fines or suspension of business operations[125] - The reliance on third-party online payment systems poses risks, including potential security breaches that could damage user trust and lead to financial losses[132] Legal and Compliance Issues - The company may face legal liabilities associated with the recruitment process, which could materially impact its business and results of operations[74] - The company does not maintain insurance coverage for liabilities arising from claims by employers, employees, candidates, or third parties[74] - The company may incur fines of up to RMB30,000 for failing to review the authenticity and legality of materials provided by employers[75] - The company faces concerns over the collection and improper use of personal information, which could deter users and result in legal liability[79] - The evolving regulatory landscape in mainland China regarding data protection and cybersecurity may increase operational costs and legal risks for the company[81] - The company has identified material weaknesses in its internal controls in the past and must maintain effective internal control over financial reporting to avoid loss of investor confidence[153] Market and Economic Conditions - Changes in China's economic, political, or social conditions could significantly impact the company's business and results of operations[178] - The growth rate of the Chinese economy has been slowing, which could adversely affect demand for the company's services[180] - The PCAOB's ability to inspect auditors in mainland China has implications for investor confidence in the company's financial statements[186] - Under the HFCAA, if the PCAOB cannot inspect the auditor for two consecutive years, the company's ADSs may be prohibited from trading in the U.S.[187] - The company relies on dividends from its mainland China subsidiaries for cash and financing requirements, which may be limited by PRC regulations[191] - Current PRC regulations require mainland China subsidiaries to set aside at least 10% of accumulated profits for reserve funds until it reaches 50% of registered capital[191] - Increases in labor costs in China are expected to continue, potentially impacting profitability if these costs cannot be passed on[194] - Fluctuations in exchange rates may materially affect revenues and financial position, with significant appreciation or depreciation of Renminbi impacting earnings[198][199] Strategic Initiatives - The company has recommenced new user registration on its BOSS Zhipin app effective from June 29, 2022, after cooperating with a cybersecurity review[82] - Future expansion efforts will require significant resource investments and may be subject to risks such as limited brand recognition and compliance with new regulations[90] - The company expects costs and expenses to continue increasing as it expands its user base and service offerings, which may strain its ability to maintain profitability[92] - Regulatory compliance costs may rise due to evolving data protection laws, which could adversely affect the company's operations and financial results[88] VIE Structure and Risks - The VIE is consolidated for accounting purposes despite the lack of legal majority ownership, allowing KANZHUN LIMITED to treat it as a consolidated entity under U.S. GAAP[28] - The VIE recorded RMB406.5 million (US$55.7 million) in service fees payable to the company's WFOE in 2024, with RMB350.9 million (US$48.1 million) settled by year-end[36] - The VIE may face a non-deductible transfer scenario if accumulated earnings exceed service fees paid, which could result in taxable income for the subsidiary in mainland China[38] - The VIE qualifies for a 15% preferential income tax rate in mainland China, which is temporary and may not be available in future periods[39] - The VIE structure contributed substantially all of the company's revenues in 2022, 2023, and 2024[162] - The VIE holds critical assets for the company's operations, and any bankruptcy or liquidation of the VIE could materially affect business activities[177] - The contractual arrangements with the VIE may not be as effective as direct ownership, potentially impacting operational control[165] - The company relies on the performance of the VIE and its shareholders under the contractual arrangements, which may not always align with the company's interests[166]

Financial Performance - Net income for Q1 2025 was $10.3 million, a decrease of 8.43% compared to $11.3 million in Q1 2024[5] - Earnings per share decreased to $1.08, down 10.74% from $1.21 in the same quarter last year[5] - Pre-provision pre-tax earnings (PPE) decreased by 7.86% to $13.7 million from $14.9 million year-over-year[5] - Total interest income fell by 8.56% to $30.4 million compared to $33.3 million in Q1 2024[5] - The net interest margin decreased to 4.98% from 5.14% in Q1 2024[8] Asset and Loan Growth - Total assets increased by 0.59% to $1.8 billion compared to $1.79 billion in Q1 2024[5] - Total loans rose by 3.63% to $1.4 billion from $1.35 billion in Q1 2024[5] Capital Ratios - The Bank's Tier 1 leverage ratio was 12.39%, and total risk-based capital ratio was 15.25% as of March 31, 2025, indicating strong capital levels[2] Strategic Plans - The company plans to grow organically by selectively opening additional branches and pursuing strategic acquisitions[9] Forward-Looking Statements - Bank7 Corp. emphasizes that forward-looking statements reflect current views on future events and financial performance[11] - The company acknowledges significant uncertainties affecting forward-looking statements, including interest rates and economic conditions[12] - Actual results may differ materially from anticipated outcomes due to risks and uncertainties that are difficult to predict[12] - Bank7 Corp. does not undertake any obligation to update or revise forward-looking statements after their initial date[12] - The company’s financial condition and results of operations are influenced by various factors, including regulatory standards and economic conditions[12] - Forward-looking statements are based on current expectations and projections about future financial trends[12] - The company cautions against placing undue reliance on forward-looking statements due to inherent uncertainties[12] Conference Call - The conference call to discuss Q1 results is scheduled for April 10, 2025, at 9:00 a.m. CST[10] Leadership - Bank7 Corp. is led by President & CEO Thomas Travis, who can be contacted for further inquiries[13]

Financial Performance - NTIC's consolidated net sales decreased 8.5% to $19,072,000 for the second quarter of fiscal 2025, compared to $20,843,000 for the same period last year[4] - ZERUST® oil and gas net sales fell 28.5% to $1,549,000, while ZERUST® industrial net sales decreased 3.7% to $12,562,000[6] - Natur-Tec® product net sales declined 11.8% to $4,960,000, contributing to an overall decrease in consolidated net sales[6] - Total net sales for the three months ended February 28, 2025, were $19,072,066, a decrease of 8.5% compared to $20,842,538 for the same period in 2024[24] - Net income attributable to NTIC for the three months ended February 28, 2025, was $434,319, a significant decline from $1,701,169 in the same period last year[25] - The company reported an operating loss of $332,933 for the three months ended February 28, 2025, compared to an operating income of $2,206,271 in the same period last year[24] - Non-GAAP adjusted net income for the three months ended February 28, 2025, was $(299,654), compared to $1,806,952 in the prior year[29] Operating Expenses and Income - Operating expenses increased 2.4% to $8,820,000, with operating expenses as a percentage of net sales rising to 46.2%[8] - Gross profit for the six months ended February 28, 2025, was $14,958,537, down from $15,673,438 in the prior year, reflecting a decrease of 4.5%[24] Cash Flow and Working Capital - Cash provided by operating activities was $3,199,000 for the six months ended February 28, 2025[6] - Working capital decreased to $21,416,000 as of February 28, 2025, from $23,682,000 as of August 31, 2024[12] - Cash and cash equivalents increased to $5,090,630 as of February 28, 2025, from $4,952,184 as of August 31, 2024, showing a growth of 2.8%[21] Assets and Liabilities - Total current assets decreased to $39,624,812 as of February 28, 2025, from $41,579,219 as of August 31, 2024, representing a decline of 4.7%[21] - Total liabilities increased to $19,849,535 as of February 28, 2025, compared to $19,501,181 as of August 31, 2024, indicating a rise of 1.8%[21][22] - Total equity decreased to $73,845,679 as of February 28, 2025, from $75,175,321 as of August 31, 2024, a decline of 1.8%[23] Future Outlook - NTIC anticipates a rebound in Natur-Tec® and ZERUST® oil and gas sales in the second half of the fiscal year[2] - The company plans to adjust its quarterly dividend to $0.01 per share to prioritize debt reduction and future growth opportunities[3] Research and Development - Research and development expenses for the six months ended February 28, 2025, were $2,632,296, up from $2,348,177 in the prior year, reflecting an increase of 12.1%[24] Other Income - NTIC recognized $1,140,000 in other income due to an Employee Retention Credit (ERC) payment during the quarter[9]

Revenue and Profitability - Total revenues for the year ended December 31, 2024, were approximately $1.4 million, a 413.5% increase from $280,000 in 2023[492] - Gross profit for 2024 was approximately $0.6 million, representing a 283.0% increase from $0.2 million in 2023[498] - Net loss for 2024 was approximately $2.1 million, down 26.8% from a net loss of approximately $2.9 million in 2023[511] Expenses - Cost of revenues for 2024 was approximately $0.8 million, up 574.7% from $0.1 million in 2023[495] - Selling expenses increased by approximately $0.4 million, or 100.0%, to approximately $0.4 million for 2024 from nil in 2023[500] - General and administrative expenses decreased by $1.4 million, or 43.4%, to $1.9 million for 2024 from $3.3 million in 2023[502] - Other expenses, net for 2024 decreased by approximately $18.0 million, or 98.1%, compared to 2023, primarily due to reduced impairment of due from discontinued operations[504] - Research and development expenses were approximately $0.0 million for the year ended December 31, 2024, indicating a shift in focus towards digital advertising and marketing campaign services[534] Cash Flow and Working Capital - Cash and cash equivalents as of December 31, 2024, amounted to approximately $4.7 million, compared to approximately $0.1 million as of December 31, 2023[513] - Working capital was approximately $6.23 million at December 31, 2024, indicating sufficient funds to meet operational needs over the next twelve months[514] - Net cash used in operating activities from continuing operations was approximately $4.2 million for the year ended December 31, 2024, compared to $5.3 million in 2023 and $3.4 million in 2022[517][518][520] - The net change in cash for the year ended December 31, 2024, was $4.6 million, a significant improvement compared to a decrease of $552,645 in 2023[516] Investment and Financing Activities - Net cash used in investing activities was approximately $1.0 million for the year ended December 31, 2024, significantly lower than $47.4 million in 2023, primarily due to cash deposits in escrow accounts[521][522] - Net cash provided by financing activities from continuing operations was approximately $10.0 million for the year ended December 31, 2024, a decrease from $52.6 million in 2023, mainly due to proceeds from the issuance of common stock and convertible bonds[523][524] - The company intends to fund future capital expenditures, which were $0.8 million in 2024, through existing cash balances, bank loans, and net proceeds from its F-3 offering[526] - The company is exploring additional financing sources, including support from related parties and the issuance of convertible debt[519] Intellectual Property and Future Commitments - As of December 31, 2024, the company had rights to 1 patent, 31 software copyrights, and 1 registered trademark, highlighting its commitment to protecting intellectual property[538] - Future lease payments under operating leases as of December 31, 2024, totaled approximately $527,761, with a weighted average remaining lease term of 2.58 years[528]

Financial Position and Cash Flow - As of December 31, 2024, the company had a cash balance of approximately $4.8 million, down from $6.5 million as of December 31, 2023[36]. - The company reported a net cash used in operating activities of $9.4 million for the year ended December 31, 2024[28]. - The company has estimated obligations of $6.7 million under the Global Termination Agreement as of December 31, 2024[28]. - The company’s current working capital is insufficient to commercialize Talicia® or complete research and development for its therapeutic candidates[35]. - The company’s current cash resources are insufficient to fully support its commercial operations until sustainable positive cash flows are generated[51]. - The company experienced a net loss of approximately $8.3 million in 2024, a net income of approximately $23.9 million in 2023, and a net loss of approximately $71.7 million in 2022, with an accumulated deficit of approximately $414.8 million as of December 31, 2024[52]. Business Viability and Strategic Plans - The company’s ability to continue as a going concern is in doubt due to insufficient resources to fund operations for the next twelve months[28]. - The company lost its primary revenue source following the sale of Movantik® in February 2023, significantly impacting its market share and operational viability[34]. - The company plans to fund future operations through the commercialization of Talicia® and other products, but will need to raise significant additional capital[36]. - The company plans to fund future operations through commercialization and out-licensing of therapeutic candidates, as well as raising significant additional capital through equity or debt financing[51]. - The company is actively pursuing strategic business transactions to raise additional capital, but there are no assurances of success[29]. Regulatory and Compliance Challenges - The company has identified a material weakness in internal control over financial reporting, which was disclosed in its Annual Report for the years ended December 31, 2022, and December 31, 2023[46]. - The company is subject to numerous regulatory requirements that govern clinical trials, manufacturing, and marketing authorization, which could impact revenue generation[120]. - Compliance with FDA regulations and guidelines is critical for the manufacturing and commercialization of Talicia® and other therapeutic candidates, with potential sanctions for non-compliance[129]. - Regulatory approvals are limited to specific indications, and the FDA may impose Risk Evaluation and Mitigation Strategies (REMS) that could restrict marketability[132]. - The company must navigate extensive regulations regarding marketing and promotional practices, with non-compliance potentially resulting in significant sanctions[194]. Market and Competitive Landscape - The healthcare industry faced challenging market conditions in 2024, which may continue to hinder the company’s ability to raise capital in the future[39]. - The pharmaceutical market is highly competitive, with significant competition from other companies developing similar therapeutic candidates and products[165][168]. - Talicia® faces competition from both branded and generic therapies extensively used for H. pylori treatment[167]. - Competitors with greater financial capabilities and resources may outperform the company in the commercialization of products[86]. - The company competes with other entities for in-license or acquisition opportunities, which may hinder growth if unable to secure favorable terms[102]. Operational Risks and Challenges - The company may face difficulties in managing growth and integrating new personnel to expand its commercialization capabilities[63]. - High turnover rates have historically affected the U.S. subsidiary, RedHill U.S., which may impact the integration of new sales personnel[66]. - The reliance on external partners for key functions such as clinical development and commercialization may affect the company's ability to achieve significant results[68]. - The company faces risks associated with potential defaults by collaborators, which could lead to renegotiation or termination of agreements[70]. - The company may need to expand its commercialization capabilities, including development, regulatory, manufacturing, sales, and marketing, to accommodate sales growth[64]. Clinical Development and Product Pipeline - The company has five therapeutic candidates in development, most of which are in clinical stage development, aiming for FDA or other foreign regulatory approvals[119]. - The ongoing Phase 2 trial for RHB-107 is at risk of termination due to funding issues, with only 100 out of a target of 300 patients enrolled[162]. - The FDA granted orphan drug designation to RHB-104 for treating Crohn's disease in pediatric patients, RHB-107 for pancreatic cancer, and RHB-204 for nontuberculous mycobacteria infections, with the latest designation for opaganib for neuroblastoma in 2024[152][153]. - Orphan drug designation provides financial incentives, including grant funding for clinical trials, tax advantages, and a seven-year exclusivity period upon first FDA approval for the designated disease[153][154]. - The company relies on contract research organizations for clinical data management, which poses risks if these organizations fail to meet contractual obligations, potentially delaying clinical studies[151]. Intellectual Property and Legal Risks - The company manages a large patent portfolio, with potential decisions to discontinue maintaining certain patents based on market viability[105]. - The ability to protect intellectual property rights is uncertain, which could lead to loss of market share and anticipated profits[217]. - Patent rights are territorial, and the company may face challenges in enforcing these rights in various jurisdictions[221]. - Litigation may be necessary to enforce patent rights, which is expensive and unpredictable, potentially impairing the company's ability to prevent competition[222]. - The lengthy development and regulatory approval process for therapeutic candidates may result in early patent expirations, diminishing market advantages[225]. Economic and Market Conditions - Global economic conditions are challenging commercialization efforts for Talicia® and future products, with patients potentially switching to generics or delaying treatments due to increased costs[203]. - Changes in foreign exchange rates and political unrest in international jurisdictions could materially affect the company's operations[111]. - Tariff policies may increase raw material costs and disrupt the supply chain, negatively impacting operational results[204]. - Federal and state proposals to constrain expenditures for medical products may adversely affect reimbursement rates for current and future products[187]. Reimbursement and Pricing Pressures - The reimbursement approval process for Talicia® and other products is time-consuming and costly, with historical limitations on reimbursement coverage impacting commercial prospects[186]. - Third-party payors may impose coverage restrictions that could limit the use of Talicia® and affect revenue[185]. - Changes in U.S. healthcare reform, such as the ACA, could significantly impact reimbursement and market dynamics for Talicia®[175]. - The Inflation Reduction Act of 2022 introduces price negotiations for certain drugs, which may significantly affect the pharmaceutical industry[183]. - Heightened scrutiny over drug pricing may lead to new legislation affecting product pricing and reimbursement methodologies, impacting revenue generation[192].

Sales Performance - Sactionals represented 91.4%, 91.0%, and 89.8% of total net sales for fiscal years 2025, 2024, and 2023, respectively [28]. - Net sales from showrooms accounted for 62.6%, 62.5%, and 61.2% of total net sales for fiscal years 2025, 2024, and 2023, respectively [32]. - Ecommerce channel net sales represented 28.8%, 28.5%, and 27.1% of total net sales for fiscal years 2025, 2024, and 2023, respectively [32]. - Other net sales, including pop-up-shop sales, accounted for 8.6%, 9.0%, and 11.7% of total net sales for fiscal years 2025, 2024, and 2023, respectively [31]. - Total net sales for fiscal 2025 quarters were 19.5%, 23.0%, 22.0%, and 35.5%, indicating seasonal fluctuations [42]. - Repeat customers accounted for approximately 46.8% of all transactions in fiscal 2025, an increase from 43.6% in fiscal 2024 [224]. - The company’s business is seasonal, with higher revenues typically in the fourth fiscal quarter due to the holiday selling season [218]. Product Development and Offerings - The company launched the AnyTable and Sactionals Reclining Seat in September and November 2024, respectively, enhancing product offerings [28]. - The company’s product offerings include modular couches (Sactionals), premium foam beanbag chairs (Sacs), and the recently launched PillowSac Accent Chair and Sactionals Reclining Seat [213][214]. - The company’s product development focuses on non-seasonally driven products designed to last a lifetime and evolve with customer needs [61]. - The company plans to continue expanding its product line, but the success of new product introductions depends on various factors including market acceptance and timely delivery from suppliers [118]. Operational Strategy - The company aims to maximize customer lifetime value by delivering a consistent brand message across its omni-channel platform [38]. - The company is committed to enhancing its omni-channel operations to provide seamless access to products, which is crucial for meeting strategic business and financial goals [71]. - The company’s omni-channel approach includes direct-to-consumer sales through showrooms and online platforms, which is unique in the furniture industry [214]. - The company’s growth strategy includes expanding its showroom base while potentially closing underperforming locations to pursue more productive opportunities [70]. - The company intends to remodel existing showrooms to reflect a new design aimed at increasing customer traffic and sales, but there is no guarantee of success [127]. Supply Chain and Manufacturing - The company plans to invest in additional domestic manufacturing capabilities to support supply chain redundancy [40]. - A substantial portion of the company's business relies on a small number of suppliers, which could disrupt operations if affected [91]. - The company is experiencing supply chain disruptions due to a shortage of qualified labor among third-party suppliers, which may lead to increased costs and delays in deliveries [93]. - The company relies heavily on international suppliers located in countries such as China, Vietnam, and India, increasing the risk of supply chain disruptions due to geopolitical and economic factors [98]. - Recent regulatory uncertainties regarding international trade, including potential new tariffs on imports from countries like China and Mexico, could significantly increase the company's cost of goods sold [99]. - The company has no long-term contracts with suppliers, relying instead on order-by-order transactions, which may complicate supply chain stability [97]. Financial Performance and Risks - Global economic conditions and discretionary consumer spending pressures could adversely impact the company's financial performance [73]. - Economic downturns may lead to increased promotional sales, adversely affecting financial performance [73]. - The company anticipates that raw material prices will remain at historically high levels during fiscal 2026 due to inflation and increased tariffs, which could adversely impact gross margins [109]. - The company faces risks associated with inventory management, including potential excess inventory leading to markdowns or shortages resulting in missed sales opportunities [110]. - The company is subject to substantial lease obligations that account for a significant portion of selling, general, and administrative expenses, which could harm financial performance if cash flow from operations is insufficient [112]. - The company may face challenges in raising capital, which could adversely affect growth and financial condition [143]. Compliance and Governance - The company has established new Environmental, Social, and Governance (ESG) targets to minimize environmental impacts, with annual progress tracking by an internal ESG Committee [51]. - The company is subject to numerous laws and regulations, and failure to comply can lead to significant penalties and operational challenges [156]. - Compliance with evolving personal data protection laws is critical, as failure to comply could result in fines and damage to reputation [154]. - The company recognizes the importance of managing cybersecurity risks, which include operational risks, intellectual property theft, and data privacy violations [192]. Competitive Landscape - The company’s competitive landscape includes various retailers, and it differentiates itself through proprietary products, brand strength, and a unique consumer experience [48]. - The company faces risks from competition, with many competitors having greater resources and brand recognition [81]. - The online market for furniture is still developing, and the company is dependent on its growth; failure to attract consumers who traditionally purchase through retailers could hinder business [130]. Intellectual Property - The company owns 41 U.S. federal trademark registrations and 281 foreign trademark registrations, enhancing its intellectual property portfolio [43]. - The company has 35 issued U.S. utility patents and 63 issued foreign utility patents, scheduled to expire between 2025 and 2042, which include proprietary technologies such as the Sactional and StealthTech systems [46]. - There is uncertainty regarding the adequacy of the company's trademark protections, which may lead to potential counterfeiting or infringement issues [158]. - The company may not be able to obtain effective intellectual property protection internationally, potentially impairing its ability to manufacture and sell products in foreign markets [159]. Employee and Culture - As of February 2, 2025, the company employed 920 full-time associates and 1,104 part-time associates, along with 25 independent contractors [59]. - The company focuses on fostering an inclusive culture through its "Belonging at Lovesac" initiatives, which aim to mitigate bias and support diverse backgrounds [60]. - High employee turnover in the accounting department may impact internal controls and financial reporting [147]. Legal and Regulatory Matters - The company is currently involved in securities litigation, which could divert management's attention and result in significant expenses [167]. - The company agreed to a $1.5 million civil penalty as part of a settlement with the SEC related to financial reporting issues [148]. - Material weaknesses in internal control over financial reporting previously resulted in a restatement of financial statements [144]. Stock and Shareholder Matters - The trading price of the company's common stock has been highly volatile, influenced by various factors including customer growth and analyst expectations [173]. - Future sales of common stock could lead to dilution of existing stockholders' ownership and potentially decrease the stock price [176]. - The Board of Directors approved a share repurchase program authorizing the purchase of up to $40.0 million of common stock [177]. - The company does not expect to declare any dividends in the foreseeable future, as substantial cash is required for continued operation and growth [188].