UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 0-7406 PrimeEnergy Resources Corporation (Exact name of registrant as specified in its charter) Delaware 84-0637348 (State or other jurisdi ...

Business Development and Strategy - The company is focused on developing an Enterprise Autonomy Suite (EAS) that integrates advanced autonomous driving technology with data analytics, asset tracking, and fleet management [197]. - EAS is designed to be compatible with existing vehicle assets and aims to facilitate the adoption of industrial autonomy, targeting a transition to full automation for clients [198]. - The company aims to establish customer relationships with OEMs to embed its technology into their vehicle roadmaps, facilitating a "land and expand" strategy across multiple sites [206]. - The company has EAS licenses with paying customers and has conducted pilot deployments, indicating early market traction [203]. - The company is positioned to address industry challenges such as labor shortages and high upfront investment commitments through its autonomous vehicle solutions [195]. Financial Performance - For the three months ended September 30, 2025, the Company recognized revenue of $69,973, primarily from EAS subscriptions, software royalties, and hardware revenue [227]. - The cost of revenue for the same period was reported at $50,816, mainly consisting of deployment costs, personnel costs, travel expenses, and associated hardware costs [228]. - Research and development expenses increased by approximately $2.5 million or 88.0% to $5.3 million for the three months ended September 30, 2025, compared to $2.8 million for the same period in 2024 [230]. - General and administrative expenses for the three months ended September 30, 2025, increased by approximately $0.6 million or 23.9% to $3.2 million from approximately $2.6 million for the same period in 2024 [232]. Cash Flow and Funding - As of September 30, 2025, the Company had unrestricted cash of approximately $4.8 million and short-term investments of approximately $30.1 million [238]. - The Company entered into an ATM Sales Agreement allowing for the sale of up to $8.8 million of common stock, with a commission of up to 3.0% on gross proceeds [239]. - On December 20, 2024, the Company raised approximately $18.2 million from a public offering, after deducting placement agent fees and other expenses [244]. - The Company received net proceeds of approximately $12.7 million from a registered direct offering on June 26, 2025 [246]. - The Company received net proceeds of approximately $14.7 million from a registered direct offering on June 27, 2025 [247]. - Net cash used in operating activities for the nine months ended September 30, 2025 was approximately $16.8 million, an increase of 8.3% compared to $15.6 million for the same period in 2024 [251]. - Net cash used in investing activities for the nine months ended September 30, 2025 was approximately $31.6 million, a decrease of approximately $34.0 million compared to net cash provided by investing activities of approximately $2.6 million for the same period in 2024 [252]. - Net cash provided by financing activities for the nine months ended September 30, 2025 was $29.6 million, an increase of approximately $18.2 million compared to $11.4 million for the same period in 2024 [253]. - The company has sufficient funds for sustainable operations and can meet its payment obligations for the next 12 months based on cash flow projections [250]. Corporate Structure and Compliance - The appointment of a new Chief Financial Officer, Natalie Russell, is expected to enhance the company's financial strategy and operations [212]. - The company is classified as an "emerging growth company" and intends to take advantage of exemptions from various reporting requirements [254]. - The company will cease to be an emerging growth company upon reaching annual gross revenues of $1.07 billion or more [255]. - The company is also classified as a "smaller reporting company" with a market value of stock held by non-affiliates less than $700 million and annual revenue below $100 million [256]. - The company may continue to rely on exemptions from certain disclosure requirements as a smaller reporting company [256]. Operational Adjustments - The Company implemented a cost reduction plan to decrease its average monthly cash burn from approximately $1.8 million to approximately $1 million for 90 days [243]. - The net cash used in operating activities was primarily attributed to an increase in prepaid inventory and security deposits for a new office location [251]. - The decrease in net cash used in investing activities was due to short-term investment purchases and equipment acquisitions, offset by investment proceeds [252].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to GOLDENSTONE ACQUISITION LIMITED (Exact Name of Registrant as Specified in Charter) Delaware 001-41328 85-3373323 (State or Other Jurisdiction of Incorporation) (C ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to GOLDENSTONE ACQUISITION LIMITED (Exact Name of Registrant as Specified in Charter) Delaware 001-41328 85-3373323 (State or Other Jurisdiction of Incorporation) (C ...

IPO and Fundraising - The company completed its Initial Public Offering on November 8, 2021, raising gross proceeds of $172.5 million from the sale of 15 million Units at $10.00 per Unit and an additional 2.25 million Units from the underwriters' over-allotment option [151][152]. - The company generated gross proceeds of $172,500,000 from the sale of 17,250,000 Units at a price of $10.00 per Unit during its Initial Public Offering on November 8, 2021 [179]. - As of November 2, 2023, $175.95 million from the IPO proceeds was placed in a Trust Account, which was invested in U.S. government securities and money market funds [153]. - The company entered into an Investment Agreement with Sunorange on April 27, 2023, which included the acquisition of 3,557,813 Class B Ordinary Shares and 6,160,000 Private Placement Warrants [154]. - Following the Sunorange Investment, the company raised an additional $300,000 to support the first three months of the 2023 Extension, with a commitment for $100,000 for each subsequent month until May 8, 2024 [156]. Shareholder Redemptions - At the 2023 EGM, shareholders redeemed 12,626,668 Class A Ordinary Shares for approximately $132.62 million, at a redemption price of about $10.50 per share [157]. - The company approved the extension of the business combination period to November 8, 2024, with shareholders redeeming 2,374,826 Class A ordinary shares for approximately $26.91 million at $11.33 per share [162]. - At the November 2024 EGM, shareholders redeemed 1,383,214 Class A ordinary shares for approximately $16.16 million at $11.68 per share [163]. - The company held a May 2025 EGM, where shareholders redeemed 742,834 Class A ordinary shares for approximately $9.0 million at $12.18 per share [164]. Financial Performance - As of March 31, 2025, the company reported a net income of $75,299, consisting of $81,092 in interest earned and $5,793 in operating expenses [174]. - The company had cash outside the Trust Account of $99,772 available for working capital needs as of March 31, 2025 [176]. - As of March 31, 2025, approximately $10.42 million of the Initial Public Offering proceeds and interest earned were held in the Trust Account [179]. - The company has until November 8, 2025, to complete a Business Combination, as approved by shareholders at the May 2025 EGM [188]. Debt and Obligations - The company had no outstanding borrowings under the Working Capital Loan as of March 31, 2025 [181]. - The company issued a promissory note in the principal amount of up to $1,500,000 to Sunorange, with $1,204,630 outstanding as of March 31, 2025 [183]. - The company issued the May 2024 Note for up to $225,000, with $225,000 outstanding as of March 31, 2025 [185]. - The company had no long-term debt, capital, or operating lease obligations as of March 31, 2025 [190]. Business Operations - The company has not commenced any operations and will not generate operating revenues until after the completion of an initial Business Combination [173]. - Engaged EarlyBirdCapital as an advisor for the initial Business Combination, agreeing to pay a fee of 1.75% of the gross proceeds of the IPO, amounting to $3,018,750 recorded in service fees [191]. - A contingent fee of at least $3,500,000 was agreed upon with a third-party consultant for assistance in the Business Combination, but no expenses were recorded as the agreement was terminated on May 8, 2023 [192]. - A new agreement with a third-party consultant on August 29, 2023, includes a contingent fee of 0.05% of the implied enterprise value of the target, with $400,000 recorded in service fees [193]. Accounting and Reporting - Class A Ordinary Shares subject to possible redemption are classified as temporary equity, presented at redemption value outside of the shareholder's equity section [196]. - Basic and diluted net income per share is calculated by dividing net income by the weighted average number of Ordinary Shares outstanding, with earnings shared pro rata between redeemable and non-redeemable shares [199]. - The calculation of diluted income per Ordinary Share excludes the effect of Warrants issued in connection with the IPO, as their exercise is contingent upon future events [200]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards [206]. - The company is evaluating the benefits of relying on reduced reporting requirements provided by the JOBS Act, which may exempt it from certain disclosures for five years following the IPO [207]. - No critical accounting estimates have been identified as of the end of the reporting period [194]. - The company does not expect the adoption of recently issued accounting standards to have a material impact on its future consolidated financial statements [205].

IPO and Financial Proceeds - The company completed its Initial Public Offering on November 8, 2021, raising gross proceeds of $172.5 million from the sale of 15 million Units at $10.00 per Unit and an additional 2.25 million Units from the underwriters' over-allotment option [151][152]. - The company generated gross proceeds of $172,500,000 from the sale of 17,250,000 Units at a price of $10.00 per Unit during its Initial Public Offering on November 8, 2021 [179]. - As of November 2, 2023, $175.95 million from the IPO proceeds was placed in a Trust Account, which was invested only in U.S. government securities or money market funds [153]. - As of March 31, 2025, approximately $10.42 million of the Initial Public Offering proceeds and interest earned were held in the Trust Account [179]. Shareholder Redemptions - At the 2023 EGM, shareholders redeemed 12,626,668 Class A Ordinary Shares for approximately $132.62 million, at a redemption price of about $10.50 per share [157]. - The company held an extraordinary general meeting on May 2, 2024, where shareholders redeemed 2,374,826 Class A ordinary shares for approximately $26.91 million at a redemption price of about $11.33 per share [162]. - At the November 2024 EGM, shareholders redeemed 1,383,214 Class A ordinary shares for approximately $16.16 million at a redemption price of about $11.68 per share [163]. - The company held a May 2025 EGM where shareholders redeemed 742,834 Class A ordinary shares for approximately $9.0 million at a redemption price of about $12.18 per share [164]. Business Combinations and Investments - The company completed the Scage Business Combination on June 27, 2025, with the company surviving as a wholly owned subsidiary of Scage [150]. - The company entered into an Investment Agreement with Sunorange on April 27, 2023, which included the acquisition of 3,557,813 Class B Ordinary Shares and 6,160,000 Private Placement Warrants [154]. - Following the Sunorange Investment, the company had $1.2 million deposited into the Trust Account to support the 2023 Extension as of March 31, 2025 [156]. Financial Position and Income - As of March 31, 2025, the company had a net income of $75,299, consisting of $81,092 in interest earned and $5,793 in operating expenses [174]. - The company had cash outside the Trust Account of $99,772 available for working capital needs as of March 31, 2025 [176]. - The company had no outstanding borrowings under the Working Capital Loan as of March 31, 2025 [181]. - The company had no off-balance sheet arrangements as of March 31, 2025 [189]. - The company did not have any long-term debt or capital lease obligations as of March 31, 2025 [190]. Notes and Fees - The company issued a June 2023 Promissory Note for $100,000 per month until the completion of an initial Business Combination, with an outstanding balance of $1.1 million as of March 31, 2025 [158]. - The company issued a promissory note in the principal amount of up to $1,500,000 to Sunorange, with $1,204,630 outstanding as of March 31, 2025 [183]. - The company had $225,000 outstanding under the May 2024 Note as of March 31, 2025 [185]. - Engaged EarlyBirdCapital as an advisor for the initial Business Combination, agreeing to pay a fee of 1.75% of the gross proceeds of the IPO, amounting to $3,018,750 recorded in service fees [191]. - A contingent fee of at least $3,500,000 was agreed upon with a third-party consultant for assistance in the Business Combination, but no expenses were recorded as the agreement was terminated [192]. - A new agreement with a third-party consultant was established on August 29, 2023, with a contingent fee of 0.05% of the implied enterprise value of the target, resulting in $400,000 recorded in service fees [193]. Accounting and Reporting - Class A Ordinary Shares subject to possible redemption are classified as temporary equity and presented at redemption value, affecting the balance sheet presentation [196]. - Net income per share is calculated by dividing net income by the weighted average number of Ordinary Shares outstanding, with two classes of shares considered in the calculation [199]. - The diluted income per share does not account for Warrants issued in connection with the IPO, as their exercise is contingent upon future events [200]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [206]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years post-IPO [207]. - Recent accounting standards updates, such as ASU 2023-09 and ASU 2024-03, are being evaluated for their potential impact on financial statements [201][203].

Operations and Facilities - As of September 30, 2025, the company operates 320 facilities across 17 states, serving over 31,100 patients daily[180] - The number of operational beds increased by 5,210 to 32,677 as of September 30, 2025, compared to 27,467 in 2024[190] - The number of facilities at the end of the period rose to 290, reflecting a 16.5% increase from 249 facilities in 2024[193] - The company added 495 skilled nursing beds and 271 assisted living beds through acquisitions during the nine months ended September 30, 2025[187] - The company disposed of one facility with 120 skilled nursing beds during the nine months ended September 30, 2025[187] - The number of facilities increased to 79 at the end of the period, up from 76 in the previous year, marking a 3.9% growth[194] Revenue and Financial Performance - Skilled nursing services revenue for the three months ended September 30, 2025, was $1,310,933, representing a 29.8% increase from $1,010,277 in the same period of 2024[190] - Total skilled nursing services revenue for the nine months ended September 30, 2025, reached $3,843,153,000, up 34.9% from $2,849,806,000 in 2024[193] - Skilled nursing services revenue for mature facilities increased to $746,242,000, a 136.8% increase from $315,154,000 in the same period last year[192] - Patient and resident service revenue increased by $320.0 million to $1.3 billion for the three months ended September 30, 2025, representing a 31.2% increase year-over-year[222] - Total revenue for the three months ended September 30, 2025, was $1.3 billion, up 31.0% from $1.0 billion in the same period of 2024[221] - Skilled nursing services revenue rose by 34.9%, or $993.3 million, to $3.8 billion for the nine months ended September 30, 2025, driven by a 27.3% increase in patient days[234] Occupancy and Patient Metrics - The occupancy rate for skilled nursing services was 89.0% for the three months ended September 30, 2025, down from 90.5% in 2024[190] - Occupancy rate for skilled nursing services across all facilities was 88.9%, a decrease of 1.9% from 90.8% in the prior year[193] - The average Quality Measure (QM) Star rating for Mature facilities was 4.3 with an occupancy rate of 95% as of September 30, 2025[181] - Actual patient days for mature facilities increased to 4,025,794, a 117.5% increase from 1,850,627 in the same period last year[193] Cost and Expenses - Cost of services increased by $196.7 million to $1.0 billion, a 23.1% rise, primarily due to a $129.9 million increase in salaries and wages[226] - General and administrative expenses increased by $31.9 million to $102.5 million, driven by higher salaries and significant legal expenses related to ongoing investigations[228] - Total operating expenses increased by $885.3 million to $3.7 billion for the nine months ended September 30, 2025, a 31.3% increase compared to the same period in 2024[232] - General and administrative expenses increased by $47.4 million to $301.6 million for the nine months ended September 30, 2025, driven by a 28.3% increase in salaries and wages[239] Income and Profitability - Operating income for the three months ended September 30, 2025, was $86.3 million, a substantial increase of 275.7% compared to the previous year[221] - Net income for the three months ended September 30, 2025, was $52.3 million, a 222.8% increase from $16.2 million in the same period of 2024[221] - Net income for the nine months ended September 30, 2025, was $131.7 million, reflecting a 587.5% increase compared to $19.2 million for the same period in 2024[232] Cash Flow and Liquidity - Cash provided by operating activities was $407.6 million for the nine months ended September 30, 2025, compared to $302.8 million for the same period in 2024[250] - Cash and cash equivalents as of September 30, 2025, were $355.7 million, reflecting a strong liquidity position[246] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $407.6 million, an increase of $104.9 million compared to the same period in 2024[252] Debt and Financing - The total principal amount outstanding under the Amended and Restated Credit Facility as of September 30, 2025, was $100.0 million[246] - As of September 30, 2025, the company had $100.0 million of variable rate debt, with no interest rate hedge in place[268] - The company had outstanding indebtedness of $253.0 million under mortgage loans and promissory notes, all at fixed interest rates as of September 30, 2025[271] Interest Rate Sensitivity - A hypothetical 10% increase in interest rates would increase annual interest expense by approximately $0.7 million, while a 10% decrease would decrease it by the same amount[268] Operational Efficiency - Days sales outstanding improved from 57.8 days as of September 30, 2024, to 50.4 days as of September 30, 2025, reflecting operational efficiencies[252]

Facility Operations - As of June 30, 2025, the company operates 316 facilities across 17 states, serving over 30,500 patients daily[190] - The number of facilities at period end rose to 287, representing a 34.1% increase from 214 in 2024[204] - The total number of post-acute care facilities increased from 220 to 316, marking a 43.6% growth[238] - The company added 119 skilled nursing beds and 175 assisted living beds during the six months ended June 30, 2025[197] - The company disposed of one facility with 120 skilled nursing beds during the six months ended June 30, 2025[197] Revenue and Financial Performance - Skilled nursing services revenue for the three months ended June 30, 2025, was $1,278,145, a 37.9% increase from $926,955 in the same period of 2024[201] - Skilled nursing services revenue for the six months ended June 30, 2025, increased to $2,532,220, a 37.7% increase from $1,839,529 in 2024[204] - Patient and resident service revenue increased by $373.6 million to $1.3 billion for the three months ended June 30, 2025, representing a 39.9% increase year-over-year[232] - Skilled nursing services revenue rose by $351.2 million to $1.3 billion, driven by a 28.3% increase in patient days[234] - Patient and resident service revenue increased by $731.2 million to $2.6 billion for the six months ended June 30, 2025, a 39.4% increase compared to the same period in 2024[245] - Skilled nursing services revenue rose by 37.7%, or $692.7 million, to $2.5 billion for the six months ended June 30, 2025, driven by an increase in patient days of 1,188,351 or 29.7%[246] Occupancy and Patient Metrics - The occupancy rate for skilled nursing services was 88.6% for the three months ended June 30, 2025, down from 91.0% in 2024[201] - Actual patient days for skilled nursing services increased to 5,182,818, a 29.7% increase from 3,994,467 in 2024[204] - Available patient days for skilled nursing services increased to 5,829,409, a 32.8% increase from 4,389,269 in 2024[204] - The occupancy rate for skilled nursing services decreased to 81.2%, down by 2.5% from 83.7% in 2024[205] Cost and Expenses - Cost of services increased by $258.7 million to $1.0 billion, primarily due to a $168.6 million rise in salaries and wages[238] - General and administrative expenses decreased by 26.6% to $100.3 million, reflecting operational efficiencies[232] - Total operating expenses increased by $630.3 million to $2.5 billion for the six months ended June 30, 2025, a 34.5% increase compared to the same period in 2024[244] - General and administrative expense increased by $15.5 million to $199.1 million for the six months ended June 30, 2025, driven by a 36.0% increase in salaries and wages[252] Income and Profitability - The net income for the three months ended June 30, 2025, was $50.97 million, a 259.9% increase compared to a loss of $31.88 million in the prior year[232] - Net income for the six months ended June 30, 2025, was $79.3 million, compared to $2.9 million for the same period in 2024, reflecting a significant increase[244] Cash Flow and Liquidity - Cash and cash equivalents were $294.2 million as of June 30, 2025, with total principal amount outstanding under the credit facility at $142.0 million[259] - Net cash provided by operating activities for the six months ended June 30, 2025, was $202.8 million, an increase of $109.3 million compared to the same period in 2024[266] - Cash, cash equivalents, and restricted cash at the end of the period on June 30, 2025, totaled $297.6 million, up from $77.9 million at the end of the same period in 2024[264] Debt and Interest Rates - The company had $142.0 million of variable rate debt as of June 30, 2025, with no interest rate hedge in place, exposing it to interest rate fluctuations[282] - A hypothetical 10% increase in interest rates would increase annual interest expense by approximately $0.9 million, while a 10% decrease would decrease it by the same amount[282] - The company had $256.2 million in outstanding indebtedness under mortgage loans and promissory notes, all at fixed interest rates as of June 30, 2025[284] Regulatory and Strategic Considerations - Approximately 72% of SNF revenue in 2022 was derived from government sources, with Medicaid representing 51% and Medicare 21%[195] - The company expects patient and resident service revenue to continue to grow as it executes its acquisition strategy[221] - The company is in a state of forbearance with lenders associated with the credit facility and is in discussions regarding terms for an amendment and waiver[260] - The company is in active discussions with Required Lenders regarding terms of an amendment and waiver to its Amended and Restated Credit Facility[276] - The company has a liquidity requirement to maintain unrestricted cash and certain permitted investments of at least $100 million until audited financial statements for the fiscal year ended December 31, 2024 are delivered[272]

Financial Performance - Full year revenue for fiscal 2025 was $835.6 million, representing a 14.0% increase year-over-year[5] - Full year net income reached $63.0 million, a significant increase of 50.0% compared to the previous year[5] - Adjusted EBITDA for the full year was $126.5 million, reflecting a 22.9% increase year-over-year[5] - Revenues for the three months ended September 30, 2025, were $222,442,000, representing an increase of 13.3% compared to $196,358,000 for the same period in 2024[28] - Net income for the twelve months ended September 30, 2025, was $63,018,000, up 50.0% from $42,001,000 in 2024[28] - The company reported a basic earnings per share of $1.16 for the twelve months ended September 30, 2025, compared to $0.77 in 2024, reflecting a growth of 50.6%[28] - UTI's revenue for Q3 2025 was $144,648, up from $130,545 in Q3 2024, representing an increase of 10.8%[34] - Net income for Q3 2025 was $18,756, compared to $18,840 in Q3 2024, reflecting a slight decrease of 0.4%[34] - Adjusted EBITDA for Q3 2025 was $36,779, compared to $37,309 in Q3 2024, indicating a decrease of 1.4%[37] - For the twelve months ended September 30, 2025, consolidated net income was $63,018 thousand, an increase from $42,001 thousand in the previous year[38][39] - Adjusted EBITDA for the twelve months ended September 30, 2025, was $126,455 thousand, compared to $102,855 thousand for the same period in 2024, reflecting a growth of approximately 23%[38][39] Student Enrollment and Growth - Average full-time active students increased by 10.5% to 24,618, with total new student starts of 29,793, up 10.8% from the prior year[5] - Total new student starts for Q3 2025 reached 12,109, a year-over-year increase of 5.4% compared to 11,492 in Q3 2024[33] - Total new student starts for the year ended September 30, 2025, were 29,793, a year-over-year increase of 10.8% from 26,885[33] - The end of period full-time active students for Q3 2025 was 27,679, an increase of 8.0% from 25,620 in Q3 2024[33] - Average full-time active students for the year ended September 30, 2025, was 24,618, a decline of 10.5% from 22,285 in the previous year[34] Future Projections - For fiscal 2026, the company expects revenue between $905 million and $915 million, indicating approximately 9% year-over-year growth at the midpoint[10] - Projected adjusted EBITDA for fiscal 2026 is expected to exceed $150 million, with reported adjusted EBITDA projected between $114 million and $119 million[10] - By fiscal 2029, the company anticipates surpassing $1.2 billion in annual revenue and approaching $220 million in adjusted EBITDA[10] - The company plans to launch new programs next year, aiming for double-digit growth regardless of economic conditions[23] Expenses and Liabilities - Total operating expenses for the twelve months ended September 30, 2025, were $752,147,000, an increase of 11.6% from $673,796,000 in 2024[28] - Total operating expenses for Q3 2025 were $197,456, an increase from $170,336 in Q3 2024, marking a rise of 15.9%[35] - The company incurred $42.0 million in cash capital expenditures for fiscal 2025, primarily for program expansions and upgrades[8] - The company’s total liabilities rose to $498,029,000 as of September 30, 2025, up from $484,344,000 in 2024, an increase of 2.8%[30] - Cash and cash equivalents decreased to $127,361,000 as of September 30, 2025, from $161,900,000 in 2024, a decline of 21.3%[30] - Total assets increased to $826,139,000 as of September 30, 2025, compared to $744,575,000 in 2024, marking an increase of 10.9%[30] Credit Losses and Costs - The provision for credit losses increased significantly to $22,144,000 in 2025 from $7,547,000 in 2024, indicating a rise of 194.5%[32] - The company incurred acquisition-related costs of $873 thousand in 2025, compared to no such costs in 2024[40] - Integration-related costs for completed acquisitions were $304 thousand in 2025, down from $6,196 thousand in 2024[40] - Stock-based compensation expense for the twelve months ended September 30, 2025, totaled $9,151 thousand, compared to $8,560 thousand in 2024[38][39]

Operations and Facilities - As of March 31, 2025, the company operates 315 facilities across 17 states, serving over 30,400 patients daily[186] - The company added one skilled nursing facility during the three months ended March 31, 2025, increasing total skilled nursing beds by 119[193] - Subsequent to March 31, 2025, the company expanded operations by adding six facilities, contributing 376 skilled nursing beds and 271 assisted living beds[194] - The number of facilities at the end of Q1 2025 increased to 139 from 65 in Q1 2024, a growth of 113.8%[200] Revenue and Financial Performance - Skilled nursing services revenue for the three months ended March 31, 2025, was $1,254,075, reflecting a 37.4% increase from $912,575 in the same period of 2024[198] - Skilled nursing services revenue for mature facilities increased to $692,159,000 in Q1 2025 from $282,038,000 in Q1 2024, a growth of 145.4%[200] - Patient and resident service revenue increased by $357.6 million to $1.3 billion for the three months ended March 31, 2025, a 38.9% increase compared to the same period in 2024[226] - Skilled nursing services revenue rose by 37.4%, or $341.5 million, to $1.3 billion, driven by an increase in patient days of 615,117, or 31.2%[227] Occupancy and Quality Metrics - The occupancy rate for skilled nursing services was 89.2% for the three months ended March 31, 2025, down from 91.1% in 2024[198] - The average Quality Measure (QM) Star rating for Mature facilities was 4.1 with an occupancy rate of 96% as of March 31, 2025[187] - The occupancy rate for mature facilities improved to 95.5% in Q1 2025 from 94.6% in Q1 2024, an increase of 0.9%[200] Cost and Expenses - Cost of services increased by $287.8 million to $1.0 billion, a 39.1% increase, primarily due to a $170.9 million rise in salaries and wages[230] - General and administrative expense increased by $51.8 million to $98.7 million, primarily due to a $22.8 million rise in legal fees and $12.2 million in stock compensation expense[232] - Rent - cost of services increased to $93.8 million, compared to $63.5 million, driven by new facilities and annual rent escalators[231] Income and Taxation - Net income for the three months ended March 31, 2025, was $28.4 million, a decrease of 18.5% compared to $34.8 million in the same period in 2024[225] - The effective tax rate decreased to 33.6% for the three months ended March 31, 2025, compared to 39.7% for the same period in 2024[235] Cash Flow and Liquidity - Net cash provided by operating activities for Q1 2025 was $150.2 million, an increase of $91.5 million compared to Q1 2024, driven by a $100.4 million increase in cash flows from changes in operating assets and liabilities[245] - Cash used in investing activities for Q1 2025 was $16.4 million, a decrease of $102.3 million compared to Q1 2024, primarily due to no cash used for investments in partnerships or acquisitions[247] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $290.6 million, up from $93.3 million at the end of Q1 2024[243] Debt and Interest Rate Exposure - The company had $142.0 million of variable rate debt as of March 31, 2025, with no interest rate hedge in place, exposing it to interest rate fluctuations[261] - A hypothetical 10% increase in interest rates would increase annual interest expense by approximately $0.9 million, while a 10% decrease would decrease it by the same amount[261] - The company had $259.5 million in outstanding indebtedness under mortgage loans and promissory notes, all at fixed interest rates as of March 31, 2025[263] Regulatory and Compliance - The company is required to maintain a minimum liquidity of $100 million during the forbearance period, which is set to run until October 31, 2025[254] - The company has entered into multiple forbearance agreements with lenders regarding technical events of default under its credit facility[251] - The company has historically derived a substantial portion of its revenue from Medicare and Medicaid programs, which are subject to inflation adjustments[256]