Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 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: 001-40925 Xilio Therapeutics, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdic ...

Exhibit 99.1 MeiraGTx Reports Second Quarter 2025 Financial and Operational Results - Gained alignment with U.S. Food and Drug Administration (FDA) on the ongoing Phase 2 AQUAx2 randomized double-blind, placebo-controlled pivotal study in Grade 2/3 radiation-induced xerostomia (RIX) to support a potential Biologics License Application (BLA) filing; on track for potential data readout late 2026 - FDA Granted Regenerative Medicine Advanced Therapy (RMAT) designation for AAV-GAD for the treatment of Parkinson' ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for Q2 2025 reflect a significant performance downturn, resulting in a net loss, reduced cash, and substantial doubt about the company's ability to continue as a going concern [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets) As of June 30, 2025, total assets decreased to **$49.99 million** from **$54.70 million**, primarily due to a significant drop in cash, while stockholders' equity also declined Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $959 | $3,723 | | Total current assets | $22,800 | $25,076 | | Total assets | $49,985 | $54,696 | | Total current liabilities | $5,384 | $7,365 | | Total liabilities | $21,415 | $22,708 | | Total stockholders' equity | $28,571 | $31,988 | [Condensed Statements of Operations](index=6&type=section&id=Condensed%20Statements%20of%20Operations) For Q2 and H1 2025, revenues plummeted, leading to significant net losses of **$4.19 million** and **$6.76 million** respectively, a sharp reversal from prior year's net income Three Months Ended June 30, Performance Comparison (in millions, except EPS) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $1.86 | $15.65 | -88.1% | | Gross Profit (Loss) | ($0.13) | $9.01 | -101.4% | | Net Income (Loss) | ($4.19) | $3.34 | -225.5% | | Diluted EPS | ($0.36) | $0.29 | -224.1% | Six Months Ended June 30, Performance Comparison (in millions, except EPS) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $4.33 | $27.05 | -84.0% | | Gross Profit | $0.97 | $13.64 | -92.9% | | Net Income (Loss) | ($6.76) | $3.85 | -275.7% | | Diluted EPS | ($0.59) | $0.41 | -243.9% | [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) For H1 2025, net cash decreased by **$2.76 million** due to significant cash usage in operations and investing, a stark reversal from the **$11.96 million** increase in H1 2024 driven by financing Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,515) | $(940) | | Net cash used in investing activities | $(249) | $(2,228) | | Net cash provided by financing activities | $0 | $15,131 | | **Net Change in Cash** | **$(2,764)** | **$11,963** | [Notes to the Condensed Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Financial%20Statements) Key notes reveal substantial doubt about going concern due to net losses and low cash, highlight high customer concentration, significant related-party debt restructuring, and a complete pivot to freeze-dried candy products - The company has raised substantial doubt about its ability to continue as a going concern, citing an accumulated deficit of **$69.2 million**, a net loss of **$6.8 million** for the six-month period, and a cash balance of only **$959,416** as of June 30, 2025[66](index=66&type=chunk) - Management's plans to address the going concern issue include debt restructuring (completed in Q2 2025), cost-cutting, entering new overseas markets, and exploring potential partnerships, asset sales, or capital raises[67](index=67&type=chunk)[69](index=69&type=chunk) - The company has significant customer concentration risk, with its top three customers accounting for **48%**, **17%**, and **9%** of revenues for the six months ended June 30, 2025[48](index=48&type=chunk) - In April 2025, the company restructured **$2.5 million** in outstanding promissory notes held by related parties into new senior convertible notes maturing April 30, 2030, reclassifying the debt from current to long-term liabilities[71](index=71&type=chunk)[109](index=109&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the severe H1 2025 revenue decline and gross profit collapse to intense competitive pressure and customer loss, leading to deteriorated liquidity and reinforcing substantial doubt about the company's going concern ability [Overview and Key Factors](index=26&type=section&id=Overview%20and%20Key%20Factors) Sow Good, a freeze-dried candy manufacturer, faces significant competitive challenges from larger players impacting customer retention, market access, and revenue, alongside supply chain risks - The company operates in a highly competitive industry and has lost significant customers due to competitors using their market status and marketing spend to limit Sow Good's access to shelf space[159](index=159&type=chunk) - As of June 30, 2025, the company's products are sold in approximately **5,000** retail outlets in the U.S. and it has expanded distribution to the Middle East[151](index=151&type=chunk)[155](index=155&type=chunk) - Operational challenges, such as extreme summer heat in 2024, have previously disrupted transportation, increased inventory levels, and negatively impacted revenue and market reputation[163](index=163&type=chunk)[164](index=164&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Operations analysis reveals a dramatic downturn for Q2 and H1 2025, with revenues plummeting by **88%** and **84%** respectively, leading to significant gross losses primarily due to reduced demand and competitive pressure Comparison of Three Months Ended June 30 | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $1.86M | $15.65M | -88% | | Gross Profit (Loss) | ($0.13M) | $9.01M | -101% | | Net Operating (Loss) Income | ($4.07M) | $4.89M | -183% | Comparison of Six Months Ended June 30 | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $4.33M | $27.05M | -84% | | Gross Profit | $0.97M | $13.64M | -93% | | Net Operating (Loss) Income | ($6.49M) | $5.81M | -212% | [Liquidity, Going Concern and Capital Resources](index=32&type=section&id=Liquidity,%20Going%20Concern%20and%20Capital%20Resources) The company's liquidity is precarious with cash at **$959.4 thousand**, insufficient for the next twelve months, reinforcing substantial doubt about its going concern ability and necessitating additional financing - As of June 30, 2025, the company had only **$959.4 thousand** in cash and cash equivalents, a decrease of **$2.8 million** since December 31, 2024[199](index=199&type=chunk) - Management explicitly states that the company may not have sufficient funds to sustain operations for the next twelve months, which raises substantial doubt about its ability to continue as a going concern[199](index=199&type=chunk) - In April 2025, the company restructured **$2.7 million** of outstanding current debt into long-term convertible notes maturing in 2030, improving its short-term liquidity profile on paper[200](index=200&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports minimal commodity price and interest rate risks but anticipates increasing foreign currency risk with expanding international operations in Mexico, Colombia, and China - The company does not expect significant effects from commodity price risk or interest rate risk[213](index=213&type=chunk)[214](index=214&type=chunk) - Foreign currency risk is expected to increase as the company's foreign operations in markets like Mexico, Colombia, and China grow[215](index=215&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, management concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting during the period - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[216](index=216&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the six months ended June 30, 2025[217](index=217&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any legal proceedings expected to have a material adverse effect on its financial condition or operations - The company is not currently involved in any material legal proceedings[220](index=220&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section highlights critical risks including substantial doubt about going concern, potential Nasdaq delisting due to minimum bid price non-compliance, and adverse impacts from significant tariffs - There is substantial doubt about the company's ability to continue as a going concern, as its cash of **$959.4 thousand** is not sufficient to fund operations for the next twelve months[222](index=222&type=chunk) - On May 14, 2025, the company received a non-compliance notice from Nasdaq for its stock's closing bid price being below **$1.00** for 30 consecutive trading days, with a compliance deadline of November 10, 2025[223](index=223&type=chunk) - The company faces risks from potential significant tariffs, which could materially increase costs, reduce margins, and disrupt the sourcing of raw materials[221](index=221&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[229](index=229&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during the period - No directors or officers adopted or terminated any Rule 10b5-1 trading plans[232](index=232&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO and CFO certifications and incorporated by reference documents

Exhibit 99.1 Research and Development Expenses: Research and development expenses were $7.0 million for the second quarter of 2025 compared to $5.0 million for the second quarter of 2024. The increase was primarily due to an increase in manufacturing costs in support of the Company's CAN- 2409 programs, partially offset by a decrease in employee-related expenses, which was driven primarily from a reduction in stock-based compensation expense. Research and development expenses included a non-cash stock compe ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2025. ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Commission file number: 001-35376 OBLONG, INC. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Id ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 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: 001-42374 SYNERGY CHC CORP. (Exact name of registrant as specified in its charter ...

Exhibit 99.1 VYNE Therapeutics Announces Topline Results from Phase 2b Trial with Repibresib Gel in Nonsegmental Vitiligo Trial Did Not Meet Primary Endpoint or Key Secondary Endpoint of F-VASI50 and F-VASI75 Nominally Statistically Significant Ef ects Observed in Key Secondary and Exploratory Endpoints of Change from Baseline in F-VASI and T-VASI at 3% Concentration Company Will Terminate Extension Phase of Trial and Seek External Partner for Continued Development of Repibresib BRIDGEWATER, N.J., July 30, ...

[Sow Good Reports Second Quarter 2025 Results](index=1&type=section&id=Sow%20Good%20Reports%20Second%20Quarter%202025%20Results) Sow Good's Q2 2025 results reflect operational stabilization and strong demand despite temporary revenue impacts from production delays and increased competition [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights operational stabilization and strong demand in Q2 2025, despite temporary revenue impacts from production delays and labor shortages - Operations have stabilized, but revenue was temporarily impacted by production delays and labor shortages, even as demand accelerated[3](index=3&type=chunk) - The company deepened partnerships with key retailers like Five Below and Albertsons, expanding both SKU counts and order volumes[3](index=3&type=chunk) - Sow Good successfully launched in the UAE, with results exceeding expectations, validating global demand for its products[3](index=3&type=chunk) - The company's forward-looking strategy focuses on disciplined execution, cost optimization, innovation, and reaccelerating growth in the second half of 2025[3](index=3&type=chunk) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Sow Good's financial performance declined significantly in the second quarter of 2025 compared to the same period in 2024, driven by reduced revenue and a shift to net loss Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 (USD) | Q2 2024 (USD) | | :--- | :--- | :--- | | **Revenue** | $1.9 million | $15.6 million | | **Gross Profit (Loss)** | $(0.1) million | $9.0 million | | **Gross Margin** | (7%) | 58% | | **Operating Expenses** | $3.9 million | $4.1 million | | **Net Income (Loss)** | $(4.2) million | $3.3 million | | **EPS (Diluted)** | $(0.36) | $0.29 | | **Adjusted EBITDA** | $(2.7) million | $6.2 million | - The decline in revenue was primarily driven by softer demand due to increased competitive pressure and, to a lesser extent, production delays[4](index=4&type=chunk) - Cash and cash equivalents stood at **$1.0 million** as of June 30, 2025, down from **$3.7 million** at the end of 2024[5](index=5&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Sow Good's financial statements for Q2 2025 show significant declines in revenue and net income, leading to reduced assets and equity compared to the prior year [Condensed Balance Sheets](index=5&type=section&id=CONDENSED%20BALANCE%20SHEETS) As of June 30, 2025, Sow Good's total assets decreased to $50.0 million from $54.7 million, primarily due to a significant drop in cash and cash equivalents, resulting in a decline in total stockholders' equity Balance Sheet Summary (as of June 30, 2025 vs. Dec 31, 2024) | Account | June 30, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | **Cash and cash equivalents** | $0.96 million | $3.72 million | | **Total current assets** | $22.80 million | $25.08 million | | **Total assets** | $49.99 million | $54.70 million | | **Total current liabilities** | $5.38 million | $7.36 million | | **Total liabilities** | $21.41 million | $22.71 million | | **Total stockholders' equity** | $28.57 million | $31.99 million | [Condensed Statements of Operations](index=6&type=section&id=CONDENSED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, Sow Good reported a significant revenue decrease to $1.9 million from $15.6 million in Q2 2024, resulting in a net loss of $4.2 million compared to a $3.3 million net income in the prior-year period Statement of Operations - Three Months Ended June 30 | Metric | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | **Revenues** | $1,856,312 | $15,648,046 | | **Gross Profit (Loss)** | $(129,709) | $9,007,129 | | **Net Operating Income (Loss)** | $(4,073,905) | $4,885,096 | | **Net Income (Loss)** | $(4,186,512) | $3,335,142 | | **Net Income (Loss) per Share - Diluted** | $(0.36) | $0.29 | Statement of Operations - Six Months Ended June 30 | Metric | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | **Revenues** | $4,333,234 | $27,054,369 | | **Gross Profit** | $973,014 | $13,636,571 | | **Net Operating Income (Loss)** | $(6,489,093) | $5,814,353 | | **Net Income (Loss)** | $(6,757,566) | $3,845,730 | | **Net Income (Loss) per Share - Diluted** | $(0.59) | $0.41 | [Statements of Changes in Stockholders' Equity](index=7&type=section&id=STATEMENTS%20OF%20CHANGES%20IN%20STOCKHOLDERS'%20EQUITY) For the six months ended June 30, 2025, total stockholders' equity decreased from $32.0 million to $28.6 million, primarily due to the net loss incurred during the period - Total stockholders' equity decreased from **$31,988,061** at the beginning of the year to **$28,570,587** at June 30, 2025[22](index=22&type=chunk) - The primary driver for the decrease in equity was the net loss of **$6,757,566** for the six-month period[22](index=22&type=chunk) [Condensed Statements of Cash Flows](index=8&type=section&id=CONDENSED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, Sow Good experienced a net cash outflow of $2.8 million, primarily from operating activities, resulting in a reduced cash balance Cash Flow Summary - Six Months Ended June 30 | Activity | 2025 (USD) | 2024 (USD) | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(2,514,884) | $(939,534) | | **Net cash used in investing activities** | $(249,140) | $(2,228,050) | | **Net cash provided by financing activities** | $0 | $15,130,582 | | **Net change in cash** | $(2,764,024) | $11,962,998 | | **Cash at end of period** | $959,416 | $14,373,035 | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The company's non-GAAP Adjusted EBITDA significantly declined in Q2 2025, reflecting operational challenges, with management using this metric for performance evaluation despite its limitations [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=9&type=section&id=RECONCILIATION%20OF%20NET%20INCOME%20(LOSS)%20TO%20EBITDA%20AND%20ADJUSTED%20EBITDA) Sow Good's Adjusted EBITDA for Q2 2025 was $(2.7) million, a significant negative shift from $6.2 million in Q2 2024, reflecting operational challenges Adjusted EBITDA Reconciliation | Period | Net Income (Loss) (USD) | Adjusted EBITDA (USD) | | :--- | :--- | :--- | | **Three Months Ended June 30, 2025** | $(4,186,512) | $(2,694,394) | | **Three Months Ended June 30, 2024** | $3,335,142 | $6,216,642 | | **Six Months Ended June 30, 2025** | $(6,757,566) | $(3,485,112) | | **Six Months Ended June 30, 2024** | $3,845,730 | $8,684,628 | [Definition and Use of Non-GAAP Measures](index=2&type=section&id=Definition%20and%20Use%20of%20Non-GAAP%20Measures) Sow Good defines Adjusted EBITDA as a non-GAAP measure, used by management to assess core operating performance and business strategies, while acknowledging its inherent limitations - The company uses Adjusted EBITDA as a supplemental measure to GAAP, defining it as net income (loss) adjusted for items like depreciation, amortization, interest, taxes, and share-based compensation[9](index=9&type=chunk) - Management uses Adjusted EBITDA to evaluate business strategies, make budgeting decisions, and compare performance against peers[11](index=11&type=chunk) - The company acknowledges limitations of Adjusted EBITDA, such as the exclusion of significant recurring non-cash expenses like stock-based compensation and depreciation[14](index=14&type=chunk) [Company and Report Information](index=2&type=section&id=Company%20and%20Report%20Information) Sow Good Inc. is a U.S.-based freeze-dried snack manufacturer, and the report includes standard forward-looking statements subject to various business risks [About Sow Good Inc.](index=2&type=section&id=About%20Sow%20Good%20Inc.) Sow Good Inc. is a U.S.-based manufacturer specializing in freeze-dried candy and snacks, leveraging proprietary technology for innovation and manufacturing excellence - Sow Good is a U.S.-based manufacturer of innovative freeze-dried candy and treats, utilizing proprietary technology[8](index=8&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement advising that the press release includes forward-looking statements concerning future results, business strategy, and growth plans, which are subject to various risks and uncertainties - The report contains forward-looking statements regarding future financial position, business strategy, expected growth, and other operational plans[13](index=13&type=chunk) - These statements are subject to risks and uncertainties, including competition, supply chain issues, and the ability to retain customers, as detailed in SEC filings[13](index=13&type=chunk)[15](index=15&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 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: 001-39834 CLENE INC. (Exact name of registrant as specified in its charter) | Delaware 85-2828339 | | | ...

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements reflect a significant operational transformation, shifting from a net loss to net income driven by a strategic focus on aircraft sales [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets and liabilities decreased substantially due to the discontinuation of aircraft fleet operations, while the shareholders' deficit narrowed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $4,707 | $2,161 | | Total current assets | $10,686 | $43,314 | | Total assets | $13,048 | $46,299 | | **Liabilities & Shareholders' Deficit** | | | | Total current liabilities | $20,005 | $62,200 | | Total liabilities | $20,112 | $62,633 | | Total shareholders' deficit | $(7,064) | $(16,334) | | Total liabilities and shareholders' deficit | $13,048 | $46,299 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The company achieved a significant turnaround, with revenue from continuing operations soaring to $50.3 million, resulting in a total net income of $4.1 million Statement of Operations Summary (in thousands, except per share data) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $50,338 | $229 | | Operating income (loss) | $3,398 | $(7,985) | | Net income (loss) from continuing operations | $3,043 | $(13,192) | | Net income (loss) | $4,057 | $(34,308) | | Net income (loss) per share, basic | $1.82 | $(29.34) | | Net income (loss) per share, diluted | $1.08 | $(29.34) | Quarterly Performance (Q2 2025 vs Q2 2024, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $24,855 | $181 | | Operating income (loss) | $872 | $(3,651) | | Net income (loss) | $3,602 | $(16,918) | [Consolidated Statements of Changes In Shareholders' Deficit](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20In%20Shareholders'%20Deficit) The shareholders' deficit improved to $(7.1) million from $(16.3) million, driven by net income and an increase in paid-in capital from stock issuances - The total shareholders' deficit decreased from **$16.3 million** at December 31, 2024, to **$7.1 million** at June 30, 2025[18](index=18&type=chunk) - Key drivers for the improvement in shareholders' deficit during the first six months of 2025 were **net income of $4.1 million** and the issuance of 2,778,885 shares of common stock, which increased additional paid-in capital[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company generated positive operating cash flow of $0.5 million, a significant improvement from the prior year, increasing total cash to $4.7 million Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $536 | $(7,367) | | Net cash provided by (used in) investing activities | $30 | $(113) | | Net cash provided by (used in) financing activities | $141 | $(1,994) | | **Net increase (decrease) in cash** | **$707** | **$(9,474)** | | **Cash and restricted cash, end of period** | **$4,707** | **$7,249** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail a strategic transition to flyExclusive, a subsidiary sale, a reverse stock split, and a planned merger, while acknowledging going concern doubts - The company transitioned its aircraft ownership fleet operations to flyExclusive in September 2024 to focus on high-growth areas like **aircraft sales and proprietary software**[25](index=25&type=chunk) - On March 20, 2025, the company sold its subsidiary GC Aviation, Inc, which held the FAA Part 135 certificate, for **$2.0 million**[26](index=26&type=chunk) - The company has a **working capital deficit of $9.3 million** and an **accumulated deficit of $100.3 million** as of June 30, 2025, which raises substantial doubt about its ability to continue as a going concern[27](index=27&type=chunk) - Subsequent to the quarter end, on July 29, 2025, the company entered into a **merger agreement with M2i Global**, where M2i would become a wholly-owned subsidiary of Volato[158](index=158&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the dramatic financial improvement to its strategic shift towards aircraft sales and software, highlighted by the sale of two Gulfstream G280 aircraft - The company's business model has shifted to focus on **aircraft sales and proprietary software** (like the Vaunt platform) after transitioning its fleet operations to flyExclusive in September 2024[161](index=161&type=chunk) - The company delivered and sold its second and third Gulfstream G280 aircraft in February and June 2025, respectively, which was the **primary driver of revenue growth**[164](index=164&type=chunk) - On July 29, 2025, the company entered into a **merger agreement with M2i Global**, a company specializing in the global value supply chain for critical minerals; post-merger, M2i stockholders are expected to own approximately **85% of the combined company**[163](index=163&type=chunk) Financial Highlights for Six Months Ended June 30, 2025 | Metric | H1 2025 | Change vs H1 2024 | | :--- | :--- | :--- | | Total Revenue | $50.3 million | +$50.1 million | | Net Income from Continuing Operations | $3.0 million | +$16.2 million | | Total Net Income | $4.1 million | +$38.4 million | [Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a "smaller reporting company," the company is not required to provide market risk disclosures - As a smaller reporting company, Volato Group, Inc is **exempt from providing quantitative and qualitative disclosures about market risk**[207](index=207&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls during the quarter - Based on an evaluation as of the end of the reporting period, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective**[210](index=210&type=chunk) - **No changes occurred** during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[211](index=211&type=chunk) [PART II OTHER INFORMATION](index=44&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending a lawsuit from former employees alleging WARN Act violations but does not expect a material adverse effect from current litigation - The company is a defendant in a lawsuit filed by former employees alleging **violations of the WARN Act** following the termination of 230 employees; the plaintiffs are seeking unpaid wages and benefits[150](index=150&type=chunk) - Management does not currently believe that its outstanding litigation will have a **material adverse effect** on its financial statements, but acknowledges the uncertainty of litigation[149](index=149&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) The company highlights new risks associated with its planned merger with M2i Global, including potential completion failure and business disruption - The company has entered into a **merger agreement with M2i Global, Inc**, which introduces new and additional risk factors[215](index=215&type=chunk) - Specific risks related to the merger include the potential for the merger not to be completed, failure to satisfy closing conditions, the effect of the announcement on business relationships, and risks related to diverting management's attention[215](index=215&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter, the company issued over 2.5 million shares to convert a $4.5 million note and issued a new $1.5 million convertible note - In June 2025, the company issued **2,538,939 shares of common stock** upon the full conversion of a **$4.5 million convertible note**[217](index=217&type=chunk) - On June 13, 2025, the company issued a new convertible promissory note in the principal amount of **$1.5 million**[217](index=217&type=chunk) [Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[220](index=220&type=chunk) [Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[222](index=222&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No information required to be disclosed on a Form 8-K was omitted during the quarter - No material information was omitted from required Form 8-K filings during the quarter[225](index=225&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents and officer certifications