Exhibit 99.1 ZTO Reports First Quarter 2025 Unaudited Financial Results Parcels Volume Increased 19.1% to 8.5 Billion Adjusted Net Income Grew 1.6% to RMB2.3 Billion Annual Volume Guidance Reiterated to Grow 20%-24% SHANGHAI, May 21, 2025/PRNewswire/ - ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fast- growing express delivery company in China ("ZTO" or the "Company"), today announced its unaudited financial results for the first quarter ended March 31, 2025. The Company grew parcel v ...

Financial Performance - Q4'25 revenue was $2.1 billion, down 5% year-over-year, with adjusted operating income of $22 million, exceeding guidance[12] - Q4 2025 revenue decreased by 5% to $2,143.8 million compared to $2,247.3 million in Q4 2024[35] - Total segment revenues decreased by 4% year-over-year to $9.505 billion, with the Outdoor segment showing a slight increase of 1% to $5.576 billion, while the Active segment declined by 12% to $3.095 billion[49] - Global revenue decreased by 5% in Q4 2025 and 4% for the full year, with constant currency changes of (3%) and (4%) respectively[94] - The company reported a net loss of $189.716 million for the twelve months ended March 2025, a significant improvement from a net loss of $968.882 million in the previous year[45] - Net loss for Q4 2025 was $150.8 million, compared to a net loss of $418.3 million in Q4 2024[39] - Total operating loss for Q4 2025 was $72.9 million, an improvement from a loss of $373.4 million in Q4 2024[39] - Adjusted operating income for the twelve months ended March 2025 was reported at $556.1 million, while GAAP operating income was $303.8 million[75] Brand Performance - The North Face® and Timberland® brands showed growth, while Vans® and Dickies® experienced declines, with Vans® down 22% year-over-year[14] - The North Face® brand revenue increased by 2% to $834.5 million, while Vans® brand revenue decreased by 22% to $492.6 million in Q4 2025[35] - Revenue growth for The North Face® in the APAC region was 12% for the three months ended March 2025, while Vans® experienced a decline of 25% in the same period[92] Cost Management and Savings - The company achieved $300 million in gross cost savings in FY'25, targeting $500 to $600 million in net operating income expansion in the medium term[13] - Cash dividends of $35 million were paid during the quarter, reflecting the company's commitment to returning value to shareholders[27] - VF incurred approximately $200.0 million in restructuring charges related to the Reinvent transformation program, with cumulative charges through Q4 of Fiscal 2025 totaling approximately $190.1 million[67] Debt and Cash Flow - Net debt decreased by $1.8 billion (26%) year-over-year, ending FY'25 with leverage of 4.1x, down one full turn from the previous year[26] - Free cash flow for FY'25 was $313 million, with total free cash flow including proceeds from non-core asset sales at $401 million[14] - Cash provided by operating activities for continuing operations was $438.489 million, down from $884.714 million in the previous year, reflecting operational challenges[45] - Cash, cash equivalents, and restricted cash at the end of the year stood at $431.475 million, down from $676.957 million at the beginning of the year[45] - Long-term debt reduced to $3,425.7 million in March 2025 from $4,702.3 million in March 2024[42] Operational Strategy - The company is focused on a deliberate rationalization of channel distribution to strengthen brand foundations and improve profitability[18] - The company plans to streamline operations and strengthen its balance sheet while reducing leverage as part of its ongoing transformation strategy[33] - The company plans to focus on market expansion and new product development to drive future growth, although specific details were not disclosed in the earnings call[46] Regional Performance - The Americas and EMEA regions saw revenue declines, while the APAC region remained flat, with a slight growth of 2%[24] - The Americas region revenue decreased by 6% to $995.2 million in Q4 2025[35] - EMEA revenue declined by 4% in Q4 2025 and 3% for the full year, with constant currency changes of (2%) and (3%) respectively[94] - APAC revenue remained flat at 0% in Q4 2025, with a 1% increase for the full year, and constant currency changes of 2% for both periods[94] - Greater China revenue declined by 3% in Q4 2025 but increased by 3% for the full year, with constant currency changes of (1%) and 4% respectively[94] Impairment and Charges - Impairment of goodwill and intangible assets was recorded at $89.242 million, a decrease from $507.566 million in the prior year, indicating improved asset valuation[49] - Noncash goodwill impairment charges recognized by VF amounted to $36.2 million for the three months ended March 2026 and $51.0 million for the twelve months ended March 2025[68] - The impairment charges resulted in a net tax benefit of $10.5 million for the twelve months ended March 2025[68] Shareholder Information - The company reported a basic loss per share of $0.39 for Q4 2025, compared to a loss of $1.08 in Q4 2024[39] - The adjusted diluted earnings per share for the twelve months ended March 2025 was calculated using 392,571,000 weighted average common shares[70] - VF's management believes that non-GAAP financial measures provide useful supplemental information regarding business trends and ongoing operations[71]

Financial Performance - Total revenues for Q1 2025 were RMB 7.19 billion (US$ 990.3 million), a decrease of 9% year over year[7]. - Operating income was RMB 341.9 million (US$ 47.1 million), with an operating income margin of 5%, down from 12% in Q1 2024[14]. - Non-GAAP operating income was RMB 458.5 million (US$ 63.2 million), with a non-GAAP operating income margin of 6%, compared to 14% in the same period last year[14]. - Net income attributable to iQIYI was RMB 182.1 million (US$ 25.1 million), a significant decrease from RMB 655.3 million in Q1 2024[16]. - Total revenues for the three months ended March 31, 2025, were RMB 7,186,469, a decrease of 9.4% compared to RMB 7,927,355 for the same period in 2024[35]. - Operating income for the three months ended March 31, 2025, was RMB 341,897, compared to RMB 944,753 for the same period in 2024, reflecting a decline of 63.8%[35]. - Net income attributable to iQIYI, Inc. for the three months ended March 31, 2025, was RMB 182,145, a significant recovery from a net loss of RMB 189,355 in the previous quarter[35]. - The company reported a diluted net income per ADS of RMB 0.19 for the three months ended March 31, 2025, compared to a loss of RMB 0.20 in the previous quarter[43]. - Operating income on a non-GAAP basis for the three months ended March 31, 2025, was RMB 458,535, compared to RMB 405,907 for the same period in 2024[43]. Revenue Breakdown - Membership services revenue was RMB 4.40 billion (US$ 606.2 million), down 8% year over year due to a lighter content slate[8]. - Online advertising services revenue was RMB 1.33 billion (US$ 183.0 million), decreasing 10% year over year, primarily due to a decline in brand advertising[9]. - Content distribution revenue fell to RMB 628.7 million (US$ 86.6 million), a decrease of 32% year over year[10]. - Membership services revenue increased to RMB 4,399,010, up 6.1% from RMB 4,102,688 in the previous quarter[35]. Cash Flow and Liquidity - Free cash flow for Q1 2025 was RMB 307.7 million (US$ 42.4 million), down from RMB 915.3 million in the same period last year[18]. - Free cash flow for the three months ended March 31, 2025, was RMB 307,698, down from RMB 915,344 in the same period of 2024[39]. - As of March 31, 2025, the company had cash and cash equivalents totaling RMB 5.70 billion (US$ 786.1 million)[19]. - Cash and cash equivalents at the end of the period increased to RMB 4,320,028, compared to RMB 3,590,331 at the beginning of the period[39]. Assets and Liabilities - Total assets increased to RMB 47,119,075 as of March 31, 2025, compared to RMB 45,760,525 as of December 31, 2024[37]. - Total liabilities rose to RMB 33,481,655 as of March 31, 2025, up from RMB 32,386,761 at the end of the previous quarter[37]. Debt Management - The company issued US$ 350 million of 2030 Notes in February 2025 and repurchased approximately US$ 300 million in existing notes[20].

Deliveries and Revenue - Total deliveries for Q1 2025 reached 94,008 vehicles, a 330.8% increase from 21,821 in Q1 2024[5] - Quarterly total revenues were RMB 15.81 billion (US$ 2.18 billion), a 141.5% increase year-over-year[4] - Vehicle sales revenue was RMB 14.37 billion (US$ 1.98 billion), representing a 159.2% increase from RMB 5.54 billion in Q1 2024[11] - Vehicle deliveries are expected to be between 102,000 and 108,000, representing a year-over-year increase of approximately 237.7% to 257.5%[32] - Total revenues are projected to be between RMB 17.5 billion and RMB 18.7 billion, indicating a year-over-year increase of approximately 115.7% to 130.5%[32] Profitability and Loss - Gross margin improved to 15.6%, up 2.7 percentage points from 12.9% in Q1 2024[15] - Vehicle margin was 10.5%, an increase of 5.0 percentage points from 5.5% in Q1 2024[16] - Net loss narrowed to RMB 0.66 billion (US$ 0.09 billion), down 51.5% from RMB 1.37 billion in Q1 2024[24] - Non-GAAP net loss was RMB 0.43 billion (US$ 0.06 billion), a 69.8% improvement from RMB 1.41 billion in Q1 2024[25] - Basic and diluted net loss per ordinary share for the same period was RMB (0.35), an improvement from RMB (0.70) in the previous quarter[49] Cash and Assets - Cash and cash equivalents totaled RMB 45.28 billion (US$ 6.24 billion) as of March 31, 2025, compared to RMB 41.40 billion a year earlier[29] - As of March 31, 2025, total assets amounted to RMB 88.89 billion (approximately US$ 12.25 billion) compared to RMB 82.71 billion as of December 31, 2024[43] - Current liabilities increased from RMB 39.86 billion to RMB 42.93 billion from December 31, 2024, to March 31, 2025[45] - Shareholders' equity decreased from RMB 31.27 billion to RMB 30.71 billion during the same period[45] Research and Development - Research and development expenses increased by 46.7% year-over-year to RMB 1.98 billion (US$ 0.27 billion) in Q1 2025[18] - Research and development expenses for the three months ended March 31, 2025, were RMB 1,980,724, slightly lower than RMB 2,006,463 in the previous quarter[47] - The company is focused on developing in-house advanced driver-assistance system technology and intelligent operating systems for its Smart EVs[34] Company Outlook and Strategy - The company anticipates that the business outlook for Q2 2025 is based on current market conditions and customer demand, which are subject to change[30] - XPENG's mission is to drive Smart EV transformation with technology, targeting technology-savvy middle-class consumers[34] - The company launched the 2025 XPENG X9 with Turing AI Smart Driving on April 15, 2025[9] - The company utilizes non-GAAP financial measures to evaluate operating results, excluding share-based compensation expenses and fair value gains/losses[35] Financial Performance Comparison - Total revenues for the three months ended March 31, 2025, were RMB 15,810,628, a decrease of 1.8% compared to RMB 16,105,096 for the previous quarter[47] - Vehicle sales revenue for the same period was RMB 14,369,298, down 2.1% from RMB 14,671,128 in the prior quarter[47] - Gross profit for the three months ended March 31, 2025, was RMB 2,459,530, representing a gross margin of approximately 15.6%[47] - Net loss attributable to ordinary shareholders for the three months ended March 31, 2025, was RMB 664,046, a significant reduction of 50.1% compared to RMB 1,329,973 in the previous quarter[49] - Non-GAAP net loss for the same period was RMB 425,789, down from RMB 1,390,935 in the prior quarter, indicating improved operational efficiency[51] Interest Income - Interest income for the three months ended March 31, 2025, was RMB 291,227, compared to RMB 301,177 in the previous quarter[47]

Financial Performance - Total net revenues for Q1 2025 were $396.9 million, flat year-over-year, or an increase of 1% on a constant currency basis[5] - Advertising and marketing revenues were $339.1 million, flat year-over-year, with a 1% increase on a constant currency basis; excluding Alibaba, revenues decreased by 6% to $296.5 million[7] - Value-added services (VAS) revenues increased by 2% year-over-year to $57.7 million, driven by growth in membership services[8] - Income from operations was $110.3 million, representing an operating margin of 28%, up from 25% in the same period last year[9] - Net income attributable to Weibo's shareholders was $107.0 million, compared to $49.4 million for the same period last year, with diluted net income per share of $0.41[12] - Non-GAAP income from operations was $129.5 million, with a non-GAAP operating margin of 33%, compared to 32% last year[9] - Non-operating income for Q1 2025 was $22.1 million, compared to a non-operating loss of $23.6 million for the same period last year[10] - Adjusted EBITDA improved from $133,025 thousand in Q1 2024 to $139,720 thousand in Q1 2025, indicating an increase of 5.1%[28] - Total net revenues slightly increased from $395,497 thousand in Q1 2024 to $396,855 thousand in Q1 2025, showing a growth of 0.34%[32] - Non-GAAP net income attributable to Weibo's shareholders also increased from $106,612 thousand in Q1 2024 to $119,532 thousand in Q1 2025, reflecting a growth of 12.1%[28] User Metrics - Monthly active users (MAUs) reached 591 million in March 2025, while average daily active users (DAUs) were 261 million[5] - The company has made Weibo Intelligent Search available to all users, achieving decent sequential growth in both user base and daily search queries[2] Assets and Liabilities - Cash, cash equivalents, and short-term investments totaled $2.08 billion as of March 31, 2025, down from $2.35 billion at the end of 2024[13] - Total assets increased from $6,504,499 thousand as of December 31, 2024 to $6,658,879 thousand as of March 31, 2025, representing a growth of approximately 2.37%[26] - Current liabilities increased from $968,136 thousand as of December 31, 2024 to $1,191,480 thousand as of March 31, 2025, a rise of 23.1%[26] - Total liabilities rose from $2,925,613 thousand as of December 31, 2024 to $3,150,661 thousand as of March 31, 2025, reflecting an increase of 7.7%[26] Revenue Breakdown - Advertising and marketing revenue from non-Ali advertisers decreased from $316,400 thousand in Q1 2024 to $296,494 thousand in Q1 2025, a decline of 6.3%[32] - Revenue from Alibaba increased from $22,551 thousand in Q1 2024 to $42,612 thousand in Q1 2025, representing a growth of 89.1%[32] - Non-GAAP operating margin improved from 32% in Q1 2024 to 33% in Q1 2025, indicating enhanced operational efficiency[28]

Financial Performance - Revenue for the three months ended March 31, 2025, was $6.4 million, a decrease of approximately 8.6% compared to $7.0 million for the same period in 2024[176]. - The company reported a net loss of $2.8 million for the three months ended March 31, 2025, compared to a net loss of $2.9 million for the same period in 2024[176]. - For the three months ended March 31, 2025, net revenues decreased by 8.1% to $6,421,371 compared to $6,989,746 for the same period in 2024[215]. - Gross profit increased by 15.7% to $1,764,572 for the three months ended March 31, 2025, driven by an increase in average selling price per vehicle[215]. - Adjusted EBITDA for the three months ended March 31, 2025 was $(877,790), a decrease of $442,900 compared to $(434,890) for the same period in 2024[199]. - The net loss for the three months ended March 31, 2025 was $(2,750,317), a slight improvement of 3.8% compared to $(2,859,862) in 2024[215]. Operating Expenses - General and administrative expenses rose significantly by 58.3% to $3,393,542 for the three months ended March 31, 2025, compared to $2,143,550 in 2024[220]. - Total operating expenses increased by 47.0% to $3,719,080 for the three months ended March 31, 2025, compared to $2,529,711 in 2024[220]. - General and administrative expenses increased by $1,249,992 for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to equity compensation increases of $632,714, inventory write-offs of $353,377, and recruitment expenses of $85,541[222]. Revenue Recognition - The Company recognizes revenue when the product build is completed and title has been transferred, with revenue from vehicle sales recorded upon delivery[256]. - Approximately 25% to 50% of the total contract consideration is received as an upfront payment, recorded as deferred revenue, with the remaining 50% to 75% billed upon completion of the build[257]. - The Company generates revenue through extended warranties and repair services, with service revenue recognized upon completion of the repair work[258][259]. - The Company applies the five-step revenue recognition model to contracts when it is probable that it will collect the consideration due[255]. Financing and Debt - The company has a senior secured convertible note with a principal amount of $15,819,209, accruing interest at an annual rate of Prime Interest rate plus 5%[180]. - The December 2023 Convertible Note has a maturity date of December 12, 2026, and ranks senior to all outstanding and future indebtedness[181]. - The company executed a Business Loan and Security Agreement for a term loan of $1,575,000, with repayments commencing March 3, 2025[189]. - The Company entered into a securities purchase agreement on January 8, 2025, for a loan of $1,724,100, which includes the issuance of 500,000 shares of Common Stock[276][277]. - The Company entered into a Business Loan and Security Agreement on February 20, 2025, receiving a term loan of $1,575,000, with total interest accruing to $661,500[281]. - The Company entered into a new loan agreement on April 4, 2025, receiving a term loan of $1,824,300, with total interest accruing to $638,505[290]. - The net proceeds of the new loan were used to pay off the Agile Loan in the discounted amount of $1,749,300[291]. - The Company received two term loans of $150,000 each from a private lender on May 8, 2025, with an interest rate of 24.99%[294]. Operational Developments - The company plans to leverage the assets of Brand New Muscle Car (BNMC) for the production of Mustangs, resulting in 6 Mustang contracts[195]. - The company increased production by approximately 20% in 2023 and added an additional 10,000 sq. ft. of space in the second half of 2024 for vehicle storage[194]. - The company has opened new retail locations in West Palm Beach, FL, and Nantucket, MA, as part of its marketing strategy in 2025[196]. - The company plans to relocate quality and warranty services to a new facility in 2024, enhancing operational efficiency[195]. Cash Flow and Liquidity - Cash used in operating activities was $3,045,185 for the three months ended March 31, 2025, compared to $2,554,971 for the same period in 2024, primarily due to a decrease in deferred revenue and increases in accounts receivable and prepaid assets[240][241]. - The company provided cash of $2,249,565 from financing activities for the three months ended March 31, 2025, mainly from proceeds of the January 2025 Convertible Note and the Agile Loan[244]. - The company’s liquidity condition raises substantial doubt about its ability to continue as a going concern for the next twelve months, as indicated by management's assessment[239]. - The company plans to use its current cash position and collections from accounts receivable to fund ongoing operations, while also considering future financing options[247]. Market and Economic Conditions - Inflation has impacted the company through increased shipping, product, and labor costs, but did not have a material impact on operations for the three months ended March 31, 2025[248]. Tax and Valuation - As of March 31, 2025, the Company had zero reserves related to uncertain tax positions, indicating no adjustments were necessary for tax positions taken[266]. - The Company recorded a valuation allowance against all deferred tax assets as it is more likely than not that the benefits of these assets will not be recognized[269]. Strategic Partnerships and Agreements - The Company signed a Strategic Partnership Agreement with One Drivers Club to launch a retail showroom in West Palm Beach, Florida, with a base rent of $225,000 per annum, subject to 4% annual increases[284]. - The Company will pay One Drivers Club $75,000 for showcasing custom vehicles from April 1, 2025, to December 31, 2025[287]. Shareholder and Corporate Governance - The Company held its 2024 annual meeting on December 27, 2024, with 21,334,357 shares (58.94%) represented[288]. - The Company authorized a new series of Series B Convertible Preferred Stock, with an initial conversion of $1,284,881 into 4,000 shares of Series B Preferred Stock[295]. - The Exchange Agreement allows the Lender to require the Company to participate in Additional Exchanges for converting outstanding amounts into Series B Preferred Stock[296]. - The Exchange Agreement is detailed in the Current Report on Form 8-K filed on May 15, 2025, as Exhibit 10.1[297].

Financial Performance - Revenue for the three months ended March 31, 2025, was $6.4 million, a decrease of approximately 8.57% compared to $7.0 million for the same period in 2024[176]. - The company reported a net loss of $2.8 million for the three months ended March 31, 2025, compared to a net loss of $2.9 million for the same period in 2024[176]. - Net revenues for the three months ended March 31, 2025, were $6,421,371, a decrease of 8.1% compared to $6,989,746 for the same period in 2024[215]. - Gross profit increased by 15.7% to $1,764,572 for the three months ended March 31, 2025, compared to $1,525,633 in 2024, driven by an increase in average selling price per vehicle[215][219]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(877,790), a decrease of $442,900 compared to $(434,890) for the same period in 2024[199]. - The company reported a net loss of $(2,750,317) for the three months ended March 31, 2025, a slight improvement of 3.8% compared to $(2,859,862) in 2024[215]. - Total operating expenses increased by 47.0% to $3,719,080 for the three months ended March 31, 2025, compared to $2,529,711 in 2024[220]. - General and administrative expenses rose significantly by 58.3% to $3,393,542 for the three months ended March 31, 2025, compared to $2,143,550 in 2024[220]. - Interest expense increased by 63.4% to $(1,856,979) for the three months ended March 31, 2025, compared to $(1,136,300) in 2024[215]. - The company experienced a significant increase in provision for credit losses, reporting $9,295 for the three months ended March 31, 2025, compared to $0 in 2024[220]. Production and Operations - The company increased production by approximately 20% in 2023 utilizing one shift[194]. - The company plans to leverage the assets of Brand New Muscle Car (BNMC) for the production of Mustangs in 2024 and 2025, resulting in 6 Mustang contracts[195]. - The company opened new retail locations in West Palm Beach, FL, and Nantucket, MA, in 2025[196]. - The company plans to relocate quality and warranty services to a new facility in 2024, which will also serve as a warranty and used vehicle sales center[195]. - Vehicle builds accounted for 99.8% of total revenue for the three months ended March 31, 2025, with a decrease of $491,455 compared to the same period in 2024[216][217]. - Warranty and other revenue decreased by 94.6% to $4,290 for the three months ended March 31, 2025, compared to $79,050 in 2024[216]. Financial Position and Liquidity - The company anticipates sufficient resources to operate during 2024[193]. - As of March 31, 2025, the company had customer deposits amounting to $7,721,542 and deferred revenue of $2,766,821 for vehicles completed but not yet titled[228]. - Cash used in operating activities was $3,045,185 for the three months ended March 31, 2025, compared to $2,554,971 for the same period in 2024[240][241]. - The company had cash and cash equivalents of $677,473 as of March 31, 2025, with primary operating funds sourced from cash receipts from sales and loans payable[232]. - The company anticipates needing to raise additional financing through loans or equity raises to support future capital requirements, with no assurance that such financing will be available on commercially acceptable terms[238]. - Management has raised substantial doubt about the company's ability to continue as a going concern for the next twelve months due to liquidity concerns[239]. Debt and Financing - The company has a senior secured convertible note with a principal amount of $15,819,209, accruing interest at an annual rate of Prime Interest rate plus 5%[180]. - The December 2023 Convertible Note has a maturity date of December 12, 2026, and ranks senior to all outstanding and future indebtedness of the company[181]. - The company provided cash of $2,249,565 from financing activities for the three months ended March 31, 2025, primarily from the January 2025 Convertible Note and the Agile Loan[244]. - Total future lease obligations as of March 31, 2025, amount to $4,734,564, with the largest obligations in 2029 and beyond totaling $2,765,365[246]. - The Company entered into a Business Loan and Security Agreement on February 20, 2025, receiving a term loan of $1,575,000, with total interest accruing to $661,500[281]. - The Company entered into a new loan agreement on April 4, 2025, receiving a term loan of $1,824,300, with total interest accruing to $638,505[290]. - The net proceeds from the new loan were used to pay off the previous Agile Loan of $1,749,300[291]. - The Company entered into loan agreements with a private lender for two term loans totaling $300,000, with an interest rate of 24.99%[294]. - The Company authorized a new series of Series B Convertible Preferred Stock, allowing for the conversion of $1,284,881 of outstanding notes into shares[295]. Revenue Recognition and Tax Assets - The company recognizes revenue upon completion of vehicle builds and transfer of title, with product revenue recorded when the build is completed[256]. - Approximately 25% to 50% of the total contract consideration is received as an upfront payment, recorded as deferred revenue, with the remaining 50% to 75% billed upon completion[257]. - The company generates additional revenue through extended warranties and repair services, with service revenue recognized upon completion of the work[258][259]. - The company has a warranty reserve based on historical warranty costs per vehicle, which may require adjustments if actual costs differ from estimates[261]. - As of March 31, 2025, the company has recorded a valuation allowance against all deferred tax assets, indicating it is more likely than not that the benefits of these assets will not be recognized[269]. - The company evaluates the realizability of deferred tax assets quarterly, considering factors such as future taxable income and historical taxable income[268]. Strategic Initiatives - The Company signed a Strategic Partnership Agreement with One Drivers Club to launch a retail showroom in West Palm Beach, Florida, with a base rent of $225,000 per annum, subject to 4% annual increases[284]. - The Company will issue 725,000 unrestricted shares of capital stock to One Drivers Club upon completion of the showroom build-out, with a minimum value of $500,000[284]. - The Company issued 236,000 shares of common stock to an advisor for business advisory services on February 20, 2025[282]. - The Company appointed Keven Kastner as Chief Revenue Officer to drive sales and manage revenue streams[283]. Miscellaneous - The company’s financial instruments, such as cash and accounts receivable, approximate their carrying amounts due to their short maturity[270]. - The company’s warranty obligations are influenced by its product quality programs and historical warranty costs, which are monitored for potential adjustments[261]. - The Exchange Agreement allows the Lender to require the Company to participate in Additional Exchanges for converting outstanding amounts into Series B Preferred Stock[296]. - The Exchange Agreement is detailed in the Current Report on Form 8-K filed on May 15, 2025, as Exhibit 10.1[297]. - As a smaller reporting company, the Company is not required to provide quantitative and qualitative disclosures about market risk[298].

Revenue Growth - INVO Fertility reported record revenue of $6.5 million for 2024, representing a 116% increase compared to 2023[4] - Consolidated clinic revenue increased by 125% to $6.45 million in 2024, compared to $2.86 million in 2023[5] - Revenue from all clinics, including consolidated and equity method clinics, was $7.73 million, a 78% increase from $4.35 million in 2023[5] Financial Performance - Adjusted EBITDA for the fourth quarter of 2024 improved to $(450,908), compared to $(1.0) million in the prior year[5] - The net loss for 2024 increased to $(9.1) million, up from $(8.0) million in 2023, primarily due to the addition of NAYA Therapeutics and related merger costs[5] - Adjusted EBITDA for the fertility business was $(2.23) million for the year, compared to $(4.90) million in the previous year[14] Strategic Expansion - The company plans to expand its fertility operations into additional markets, leveraging existing centers in Wisconsin, Georgia, and Alabama[4] - INVO Fertility is divesting a majority stake in NAYA TX to refocus on its core fertility operations[6] - The company aims to capitalize on favorable market trends and policy developments that emphasize the importance of fertility care[4] Market Trends - The global fertility services market is projected to grow, driven by rising infertility rates and increasing acceptance of assisted reproductive technologies[7]

Financial Performance - INVO Fertility reported record revenue of $6.5 million for 2024, representing a 116% increase compared to $3.0 million in 2023[4] - Consolidated clinic revenue increased by 125% to $6.45 million in 2024, up from $2.86 million in 2023[5] - Revenue from all clinics, including consolidated and equity method clinics, rose by 78% to $7.73 million in 2024, compared to $4.35 million in 2023[5] - Adjusted EBITDA for the fourth quarter of 2024 improved to $(450,908), a significant enhancement from $(1.0) million in the prior year[5] - Adjusted EBITDA for the fertility business was $(450,908) for Q4 2024, compared to $(1,020,499) in Q4 2023[14] Loss and Costs - The net loss for 2024 increased to $(9.1) million, compared to $(8.0) million in 2023, primarily due to the addition of NAYA Therapeutics and related merger costs[5] Market Expansion - The company is actively pursuing expansion into additional markets, leveraging the success of its existing fertility centers in Wisconsin, Georgia, and Alabama[4] - The company aims to expand access to fertility care in response to declining U.S. fertility rates and rising public demand for solutions[4] Strategic Divestment - INVO Fertility plans to divest a majority stake in NAYA TX to refocus on its core fertility operations, with the final separation subject to necessary approvals[6] Market Trends - The global fertility services market is projected to grow, driven by rising infertility rates and increasing acceptance of assisted reproductive technologies (ART)[7]

Financial Position - As of March 31, 2025, accounts receivable totaled $3,985,715, with a net amount of $3,903,943 after an allowance for doubtful accounts of $81,772[125]. - Inventory as of March 31, 2025, was valued at $221,113, an increase from $126,400 as of December 31, 2024[130]. - The company reported no deferred revenue as of March 31, 2025, and December 31, 2024, indicating all revenue was recognized upon delivery or over time[188]. - The Company reported total property and equipment of $8,986,618 as of March 31, 2025, an increase from $7,539,507 as of December 31, 2024, reflecting growth in assets[243]. - Total accounts payable and accrued liabilities increased to $2,252,020 as of March 31, 2025, up from $1,721,527 as of December 31, 2024[249]. - The total face amount of notes payable as of March 31, 2025, is $20,428,886, with a total debt discount of $(2,413,365) and total repayments of $(14,275,603) resulting in a net amount of $15,195,788[258]. Revenue Recognition - The company generated all revenues for the three months ended March 31, 2025, from mobile fuel sales, with revenue recognized at the time of delivery[170]. - Revenue from fuel sales is recognized at the time of delivery, while membership revenue is recognized at the end of each month, reflecting the satisfaction of performance obligations over time[169]. - Fuel sales accounted for $15,857,380, or 97.45% of total revenue in Q1 2025, compared to $6,403,612, or 97.07% in Q1 2024[189]. - The company recognizes revenue on a gross basis in fuel sales transactions, acting as the principal in these transactions[182]. Customer and Supplier Concentration - Customer A accounted for 43.09% of total sales for the three months ended March 31, 2025, compared to 0.00% in the same period of 2024, indicating a significant concentration risk[138]. - Total accounts receivable from major customers (A, B, and C) represented 58.84% of total accounts receivable as of March 31, 2025, up from 46.10% in 2024, highlighting increased reliance on a few key customers[140]. - Vendor A accounted for 51.57% of total vendor purchases for the three months ended March 31, 2025, compared to 0.00% in 2024, indicating a high dependency on a limited number of suppliers[141]. - The company actively seeks to diversify its customer base to reduce reliance on a small number of key accounts, which is part of its risk mitigation strategy[144]. Debt and Financing - The company has multiple loans with a 0% interest rate, indicating a strategy to minimize financing costs[258]. - The company has a significant amount of unsecured loans, totaling $20,428,886, which may impact its risk profile[258]. - The company entered into five unsecured, non-interest-bearing notes totaling $5,000,000 in October 2024, which were fully repaid in February 2025[283]. - The company executed a two-month loan for $2,500,000 in December 2024, incurring transaction fees of $440,000, and repaid the loan in March 2025[271]. - The company refinanced existing MCA loans to manage liquidity, which may lead to higher cumulative borrowing costs due to upfront fees and compounding effects[264]. Expenses and Costs - Marketing and advertising costs increased to $65,186 in Q1 2025 from $24,506 in Q1 2024, reflecting a rise of approximately 166.5%[207]. - Depreciation and amortization expense for Q1 2025 was $588,172, compared to $281,320 for Q1 2024, indicating a significant increase in asset utilization[248]. Risk Management - The company evaluates and discloses risks that could materially affect its financial condition, including industry cyclicality and macroeconomic conditions[102]. - The company has implemented credit risk management by regularly reviewing customer creditworthiness and adjusting credit terms as necessary[144]. - The company is responsible for fulfilling the obligation of delivering fuel to customers and is exposed to inventory risk due to fuel procurement[185]. Tax and Valuation - The company has recorded a full valuation allowance against its deferred tax assets, resulting in a net carrying amount of $0 as of March 31, 2025[201]. - The Company is assessing the impact of ASU 2023-09 on its income tax disclosures, which may enhance reporting requirements starting after December 15, 2024[236].