Regulatory Environment - The company operates primarily in Hong Kong, with no direct operations in Mainland China, which currently mitigates the impact of PRC laws on its business[33]. - There are significant uncertainties regarding the enforcement and interpretation of PRC laws, which could materially affect the company's operations and financial condition[36]. - The PRC government may exert influence over the company's operations in Hong Kong, potentially leading to adverse changes in business operations and financial performance[38]. - Compliance with evolving PRC laws and regulations may incur increased costs and operational restrictions for the company[48]. - The company has no direct influence from the PRC government at present, but future changes in laws could alter this situation[44]. - The legal system in Mainland China is rapidly evolving, creating uncertainties that could limit legal protections for the company[47]. - The company may face risks related to cybersecurity and data protection laws in China, which could adversely impact its business operations[49]. - Any future expansion or acquisition in Mainland China could subject the company to PRC laws, increasing operational risks[43]. - The company’s financial condition and ability to offer securities may be adversely affected by existing or future PRC regulations[40]. - The potential for increased compliance costs due to stricter environmental or corporate social responsibility standards in China could impact the company's operations[48]. - The company believes it is not subject to the PRC Data Security Law and the Personal Information Protection Law due to its operational structure and geographical focus[52][54]. - The company is monitoring the evolving regulatory landscape in China, particularly regarding cybersecurity and overseas listings, which may affect its future operations[62]. - The company may face uncertainties regarding compliance with the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies[60]. - The ongoing regulatory actions by the PRC government may impact the operations of PRC-based suppliers, potentially decreasing demand for their services and affecting the company's financial condition[68]. - The company is subject to extensive governmental regulations in both Hong Kong and the PRC, which could change and impact business operations[96]. Supply Chain and Operations - The company relies heavily on Fujian Aoxuanlaisi Biotechnology Co., Ltd for caviar supply, with procurement amounts of approximately US$3.6 million, US$6.2 million, and US$5.3 million for the years ended December 31, 2024, 2023, and 2022 respectively, representing approximately 100%, 64.3%, and 90% of total purchases[83]. - The Caviar Sales Agreement with Fujian Aoxuanlaisi is for a term of 10 years, from April 30, 2022, to April 30, 2032, allowing the company to procure caviar directly[83]. - The company faces unique risks due to reliance on a single supplier for caviar, which could materially affect operations if supply is disrupted[84]. - The company relies heavily on its relationships with suppliers, particularly Fujian Aoxuanlaisi and Fujian Longhuang, for caviar inventory, and any disruption could materially affect operations[87]. - The company processes its products at a single facility, and any disruption at this site could significantly affect operations and financial performance[138]. - The lease for the food processing factory is valid until March 31, 2026, and any failure to renew or maintain this lease could disrupt business operations[139]. - The company is dependent on third-party supply chain management for labor and processing, and any failure in this area could adversely affect product quality and business operations[140]. - The food processing factory must maintain a valid food factory license, and failure to do so could result in significant operational disruptions and legal consequences[145]. - The company is actively managing its supply chain to ensure compliance with all necessary permits and licenses to mitigate operational risks[100]. Market and Economic Conditions - The removal of Hong Kong's preferential trade status by the U.S. could adversely affect the company's competitiveness as a food trading hub, impacting demand for food exports[70]. - The company is exposed to risks from U.S.-China trade tensions, which could negatively impact business operations and financial results[72]. - The economic conditions in Hong Kong and Mainland China are sensitive to global economic conditions, and any major changes could materially impact the company's business[76]. - The geopolitical situation, including the conflict in Ukraine, could lead to global economic turmoil, adversely affecting the company's operations and financial conditions[79]. - Economic conditions significantly influence consumer demand for caviar products, with potential adverse effects during economic downturns[122]. - The company faces potential declines in consumer purchases of luxury food items due to prolonged weak economic conditions, which could adversely affect profitability[123]. - Increased competition from regional, national, and international caviar suppliers may reduce the company's market share and profitability, impacting brand recognition[124]. Financial Risks and Performance - The company has a short operating history, which makes it difficult to predict future performance and may expose it to greater risks compared to established companies[80]. - The company faces credit risk related to trade receivables, with a typical credit period of 30 to 60 days, which could pressure cash flow if payments are delayed or defaulted[147]. - Historical growth rates in revenue and gross profit may not be maintained, with potential fluctuations in operating results due to various uncontrollable factors[148]. - The company does not maintain product liability insurance, which could result in significant financial exposure in the event of claims[120]. - Major customers place orders on an as-needed basis, creating uncertainty in future revenue streams and potential financial instability[109]. - The company is vulnerable to fluctuations in foreign currency exchange rates and geopolitical instability, which could impact operations and profitability[108]. - The company is exposed to foreign exchange risks due to sourcing a substantial portion of caviar from the PRC, with purchases denominated in RMB and sales in HKD[170]. - The company has not entered into any formal hedging policy, making it vulnerable to fluctuations in exchange rates between HKD and RMB[171]. - The company may face significant adverse consequences if delisted from Nasdaq, including reduced liquidity and potential classification as "penny stock"[206]. Corporate Governance and Compliance - The dual-class share structure allows holders of Class B Ordinary Shares to have 30 votes per share compared to 1 vote per share for Class A Ordinary Shares, concentrating voting power[176]. - As of the date of the annual report, Mr. Kim Kwan Kings, WONG, beneficially owned approximately 12.59% of Class A Ordinary Shares and 100% of Class B Ordinary Shares, representing 92.70% voting rights[177]. - The PCAOB's ability to inspect auditors may impact the company's compliance with the Holding Foreign Companies Accountable Act, potentially affecting share trading[182]. - The company has engaged Audit Alliance LLP as its current auditor, which is subject to PCAOB inspections, ensuring compliance with professional standards[193]. - The company is classified as a "controlled company" under Nasdaq rules, allowing it to rely on exemptions from certain corporate governance requirements[179]. - The company has not implemented a formal internal control assessment due to its status as an emerging growth company, which may affect financial reporting reliability[175]. - The company qualifies as a foreign private issuer, allowing for less detailed and less frequent reporting compared to U.S. domestic companies[212]. - If the company loses its foreign private issuer status, it would face significantly higher legal and financial compliance costs[213]. - The determination of foreign private issuer status is made annually, and losing this status could require the company to file more detailed reports with the SEC[214]. - Shareholders may face difficulties in enforcing judgments against the company in the Cayman Islands and Hong Kong due to jurisdictional issues[215][218]. - The company is not required to comply with all periodic disclosure requirements of the Exchange Act, which may limit shareholder protections[214]. - The company may adopt corporate governance practices that differ significantly from Nasdaq Capital Market standards, potentially affording less protection to shareholders[222]. Brand and Marketing - The company relies on effective brand recognition and reputation to differentiate its caviar products, which is critical for maintaining market position[127]. - The company is investing in branding and marketing efforts, including participation in food expos and collaborations with food bloggers, but effectiveness is uncertain[150]. - Future growth is contingent on successful marketing, product acceptance, and the ability to expand market share and customer base[151]. - Negative publicity regarding the company or its products could adversely affect consumer confidence and the ability to attract and retain talent[149]. Environmental and Quality Risks - The company faces risks related to the quality and quantity of caviar harvested, which is influenced by factors beyond its control, such as water conditions and broodstock quality[92]. - Climate change poses a long-term risk, potentially impacting sturgeon productivity and leading to decreased availability or unfavorable pricing for caviar raw products[91]. - Food safety and quality control are critical, with risks of contamination that could lead to liability claims and penalties, adversely affecting brand reputation[116]. - Adverse weather conditions and natural disasters could lead to significant losses in caviar supply, affecting business results and brand reputation[90]. - The company emphasizes the importance of maintaining high-quality caviar products to meet market demand and avoid reputational damage[92]. - Effective inventory management is critical to avoid increased loss rates, lower profit margins, and potential sales losses due to the perishable nature of caviar[146].

Financial Performance - Net sales for Q1 2025 were $1.7 million, unchanged from the same period last year[6] - Gross profit increased to $320,000, representing 18.6% of sales, an improvement of 180% from a gross loss of $402,000 in Q1 2024[6] - Operating expenses declined by 10% to $1.4 million compared to $1.5 million in Q1 2024[6] - Net loss improved to $1.2 million, or $(0.50) per share, a 41% reduction from a net loss of $2.1 million, or $(0.85) per share in Q1 2024[6] - Cash used in operating activities was $584,000, down from $989,000 in the same period last year[6] Sales Performance - Sales to telecom customers represented 82% of total net sales in Q1 2025, up from 71% in Q1 2024[4] - Sales to international markets increased to 18% of total net sales in Q1 2025, compared to 6% in Q1 2024[4] Future Plans and Potential - The company plans to implement a remote monitoring system on over 5,000 legacy units in the next twelve months, expected to generate additional aftermarket revenue[4] - Approximately $13 million of raw materials in inventory will help reduce cash burn for the rest of the year[4] - The company has the potential to produce over $50 million in revenue per year with sufficient bookings due to improvements in manufacturing capacity[4]

Financial Performance - Fourth quarter net sales reached $437.7 million, a 5.8% increase from $413.7 million in the same quarter last year, with Aerospace/Defense up 10.6% and Industrial up 3.3%[4] - Fiscal 2025 net sales totaled $1,636.3 million, marking a 4.9% increase year-over-year, with Aerospace/Defense up 14.1% and Industrial up 0.2%[8] - Net income attributable to common stockholders for the three months ended March 29, 2025, was $72.7 million, an increase of 16.0% from $61.6 million in the same period in 2024[27] - Net income for the twelve months ended March 29, 2025, was $246.2 million, an increase from $209.9 million in the prior year, representing a growth of approximately 17.0%[33] Profitability Metrics - Gross margin for the fourth quarter was 44.2%, compared to 43.1% in the previous year, reflecting an increase in profitability[4] - Adjusted EBITDA for fiscal 2025 was 31.8% of net sales, up from 30.9% in the previous year, indicating improved operational efficiency[8] - Adjusted EBITDA for the twelve months ended March 29, 2025, was $519.8 million, compared to $482.2 million for the previous year, indicating a growth of 7.8%[29] - Basic net income per common share attributable to common stockholders for the three months ended March 29, 2025, was $2.32, up from $1.93 in the same period last year, an increase of 20.2%[27] Cash Flow and Leverage - The company generated free cash flow of $275 million, reducing net leverage to 1.7x, the lowest since the Dodge acquisition[6] - Net cash provided by operating activities increased to $293.6 million from $274.7 million, reflecting a rise of about 6.5% year-over-year[33] - Interest expense for Q4 fiscal 2025 decreased to $12.8 million from $18.8 million in the same period last year, attributed to debt reduction and lower interest rates[12] - Interest expenses decreased to $55.4 million from $75.7 million, indicating improved debt management[33] Sales and Backlog - As of March 29, 2025, the backlog was $940.7 million, up from $896.5 million at the end of December 2024, indicating strong future demand[16] - For Q1 fiscal 2026, the company expects net sales between $424.0 million and $434.0 million, representing a growth rate of 4.4% to 6.8% compared to the prior year[16] Segment Performance - The aerospace and defense segment reported net external sales of $157.3 million for the three months ended March 29, 2025, up from $142.4 million in the same period last year, marking an increase of 10.0%[28] - The industrial segment achieved net external sales of $280.4 million for the three months ended March 29, 2025, compared to $271.3 million in the same period in 2024, reflecting a growth of 3.9%[28] Expenses and Investments - SG&A expenses for Q4 fiscal 2025 were $72.1 million, up from $64.4 million in the same quarter last year, with SG&A as a percentage of net sales increasing to 16.5%[9] - SG&A expenses are anticipated to be between 16.75% and 17.25% of net sales for FY2026 Q1, indicating a focus on managing operational costs[33] - The company reported capital expenditures of $49.8 million, up from $33.2 million, indicating a significant increase in investment activities[33] Balance Sheet Highlights - Total assets increased from $4,668.5 million to $4,678.6 million, reflecting a growth of 0.2%[31] - Total liabilities increased from $1,653.8 million to $1,926.7 million, an increase of 16.5%[31] - Total equity decreased from $3,031.4 million to $2,751.9 million, a decline of 9.2%[31] - Long-term debt, less current portion, increased from $918.4 million to $1,188.1 million, an increase of 29.4%[31]

Financial Performance - The company reported a net loss of $1.8 million for the year ended December 31, 2024, a significant decrease from a net loss of $20.3 million in 2023, which included a $14.4 million non-cash gain on debt extinguishment[9]. - The company reported a net loss of $1,787,000 for 2024, a substantial improvement compared to a net loss of $20,291,000 in 2023[17]. - The net loss per share attributable to common stockholders improved from $(4,718.84) in 2023 to $(104.35) in 2024[17]. Research and Development - For the fiscal year ended December 31, 2024, research and development expenses increased to $16.3 million from $8.3 million in 2023, primarily due to a $7.5 million charge related to acquired in-process R&D from the Varian asset purchase[7]. - Research and development expenses increased significantly from $8,341,000 in 2023 to $16,276,000 in 2024, representing a 95.5% increase[17]. - The company announced positive results from its Phase 2 SEISMiC Extension Study of istaroxime in September 2024, and initiated enrollment in the global SEISMiC C trial for more severely ill patients[4]. Corporate Strategy and Licensing - A new corporate strategy was launched to become a revenue-generating biotech through acquisitions of small companies with FDA-approved products, aiming to provide near-term value to shareholders[4]. - The company entered into a licensing agreement with Evofem Biosciences for PHEXXI®, aiming to leverage manufacturing contacts to reduce costs[4]. - Licensing partner Lee's Pharmaceutical is preparing to initiate a Phase 3 program for acute heart failure in Greater China, with a deal worth up to $138 million in milestones plus royalties[6]. Financial Position - As of December 31, 2024, cash and cash equivalents were $1.8 million, with additional net proceeds of $1.5 million from the sale of common stock following mandatory redemption payments on Series C preferred stock[11]. - Total current assets decreased from $5,379,000 in 2023 to $2,574,000 in 2024, a decline of approximately 52.2%[16]. - Total liabilities decreased from $29,015,000 in 2023 to $14,698,000 in 2024, a reduction of approximately 49.3%[16]. - Stockholders' equity increased from $3,391,000 in 2023 to $9,996,000 in 2024, reflecting a growth of 194.5%[16]. Operational Metrics - Total operating expenses rose from $20,597,000 in 2023 to $26,139,000 in 2024, an increase of 27.1%[17]. - The company recorded a change in fair value of common stock warrant liability of $10,482,000 in 2024, with no prior year comparison available[17]. - The weighted average number of common shares outstanding increased from 4,300 in 2023 to 52,583 in 2024[17]. - The company regained Nasdaq compliance with the minimum bid price requirement, subject to a mandatory panel monitor until March 20, 2026[4]. - The company completed national phase filings for istaroxime patent applications in key global markets, strengthening its intellectual property portfolio[6]. - The company is actively evaluating revenue-generating opportunities across various sectors that align with its capabilities and strategic vision[4].

Financial Performance - Total consolidated revenues increased by 3% to $48.3 million, compared to $46.8 million in Q1 2024[5] - Consolidated gross profits increased by 6% to $12.9 million, with gross margins rising to 26.7% from 25.9% in Q1 2024[3][5] - The Data and Analytics Services segment reported revenues of $9.0 million, an 11% increase from $8.1 million in Q1 2024[5] - The IT Staffing Services segment achieved a 2% revenue increase, totaling $39.4 million compared to $38.8 million in Q1 2024[22] Net Income and Loss - GAAP net loss for Q1 2025 was ($1.4 million) or ($0.12) per diluted share, compared to a net loss of ($161,000) or ($0.01) per diluted share in Q1 2024[3][5] - Non-GAAP net income for Q1 2025 was $0.8 million, or $0.06 per diluted share, consistent with Q1 2024[3][5] Cash and Financial Position - Cash balances on hand as of March 31, 2025, were $24.7 million, with no bank debt and $23.7 million available under the revolving credit facility[6] - Days Sales Outstanding (DSO) stood at 56 days, well within the targeted range[6] Expenses and Future Outlook - The Company incurred $1.4 million in severance expenses during Q1 2025, compared to no severance expenses in Q1 2024[5] - The Company remains cautiously optimistic about future growth despite a challenging demand environment[6]

Financial Results Announcement - AgEagle Aerial Systems, Inc. announced its financial results for Q1 2025 on May 16, 2025[3] - The press release detailing the financial results is included as Exhibit 99.1[3] Compliance and Regulations - The filing indicates compliance with the Securities Exchange Act of 1934[4] - The company has not elected to use the extended transition period for new financial accounting standards[2] - The company is classified as an emerging growth company under the relevant regulations[2] Executive Approval - The report was signed by CEO William Irby, indicating executive approval of the contents[9] Financial Metrics and Outlook - The report does not provide specific financial metrics or performance indicators in the available documents[4] - No specific user data or future outlook was disclosed in the provided documents[4] Product and Market Information - There are no mentions of new products, technologies, market expansion, or acquisitions in the available information[4] Company Information - The company is listed on NYSE American under the trading symbol UAVS[2]

Financial Performance - Q1 2025 revenue was reported at $5.9 million, reflecting a decline compared to the same period in 2024 due to market challenges and operational issues[11] - Total revenue for Q1 2025 was $5.936 million, a decrease of 52.7% compared to $12.549 million in Q1 2024[28] - Cryptocurrency mining revenue decreased to $2.999 million, down 53.1% from $6.396 million in the same period last year[29] - Data hosting revenue also declined to $2.402 million, a 54.5% decrease from $5.278 million in Q1 2024[29] - The net loss attributable to Soluna Holdings, Inc. for Q1 2025 was $7.556 million, compared to a net loss of $5.254 million in Q1 2024[29] - Basic and diluted loss per share for Q1 2025 was $0.88, compared to $2.62 in Q1 2024[29] - Adjusted EBITDA for Q1 2025 was a loss of $1.6 million, a decline of $6.8 million compared to Q1 2024[15] - The company reported a significant increase in general and administrative expenses, which rose to $8.350 million in Q1 2025 from $6.397 million in Q1 2024[29] - Net loss from continuing operations for the three months ended March 31, 2025, was $7,354 million, compared to a loss of $2,544 million in the same period of 2024[36] - Adjusted EBITDA for the three months ended March 31, 2025, was $(1,648) million, down from $5,147 million in the same period of 2024[36] Assets and Liabilities - Total current assets increased to $15.758 million as of March 31, 2025, up from $13.495 million at the end of 2024[26] - Total assets rose to $90.049 million as of March 31, 2025, compared to $88.040 million at the end of 2024[26] - Total liabilities increased to $63.056 million as of March 31, 2025, compared to $60.678 million at the end of 2024[26] - Cash and restricted cash at the end of Q1 2025 totaled $14.448 million, an increase from $11.394 million at the end of Q1 2024[31] Project Development - The company has 220MW of new projects in development, contributing to a total project pipeline of approximately 698MW across operations, construction, and development[10] - Project Dorothy 2 is expected to increase Bitcoin hosting capacity by 64%, reaching a total of 123MW, with an expected completion timeline of Q4 2025[7] Financial Flexibility - Unrestricted cash increased to $9.2 million, a $1.4 million rise from December 31, 2024, indicating a strong cash position[11] - The company secured a $5 million non-dilutive debt facility with Galaxy Digital, enhancing its financial flexibility[10] Operational Changes - The termination of the HP Enterprises contract is expected to refocus the company on crypto-mining and AI data center development[6] - The company has made significant progress in simplifying its capital structure, including the full conversion of convertible loan notes and restructuring of preferred equity[5] Patent and Technology - A second utility patent was awarded in April 2025, broadening the scope of the company's modular data center technology[10]

Financial Performance - Q1 2025 revenue was reported at $5.9 million, a decline compared to the same period in 2024 due to several factors including BTC halving and market conditions[11] - Total revenue for Q1 2025 was $5.936 million, a decrease of 52.7% compared to $12.549 million in Q1 2024[29] - Cryptocurrency mining revenue decreased to $2.999 million, down 53.1% from $6.396 million in the same period last year[29] - Data hosting revenue also declined to $2.402 million, a 54.5% decrease from $5.278 million in Q1 2024[29] - The net loss attributable to Soluna Holdings, Inc. for Q1 2025 was $7.556 million, compared to a net loss of $5.254 million in Q1 2024[29] - Basic and diluted loss per share for Q1 2025 was $0.88, an improvement from a loss of $2.62 per share in Q1 2024[29] - The net loss from continuing operations for the three months ended March 31, 2025, was $7,354 million, an increase from a loss of $2,544 million in the same period of 2024[36] - Adjusted EBITDA declined to a loss of $1.6 million, down $6.8 million from Q1 2024, influenced by revenue and cost factors[15] - Adjusted EBITDA for the three months ended March 31, 2025, was $(1,648) million, down from $5,147 million in the previous year[36] Cash and Assets - Unrestricted cash increased to $9.2 million, reflecting a $1.4 million growth from December 31, 2024[11] - Total current assets increased to $15.758 million as of March 31, 2025, up from $13.495 million at the end of 2024[26] - Cash and restricted cash at the end of Q1 2025 totaled $14.448 million, an increase from $11.394 million at the end of Q1 2024[31] Liabilities and Expenses - Total liabilities rose to $63.056 million as of March 31, 2025, compared to $60.678 million at the end of 2024[26] - Operating expenses for Q1 2025 were $8.350 million, up from $6.397 million in Q1 2024, reflecting increased general and administrative costs[29] - The company reported a significant increase in stock-based compensation, totaling $1.847 million in Q1 2025 compared to $661,000 in Q1 2024[31] - Interest expense for the three months ended March 31, 2025, was $838 million, compared to $424 million in the previous year[36] Projects and Development - The company has 220MW of new projects in development, contributing to a total project pipeline of approximately 698MW across operations, construction, and development[10] - Project Dorothy 2 is expected to increase Bitcoin hosting capacity by 64%, reaching a total of 123MW, with an expected completion timeline of Q4 2025[7] - The termination of the HP Enterprises contract allows the company to refocus on crypto-mining and AI data center development[6] - The company anticipates revenue stabilization and growth as additional MW of Bitcoin hosting capacity is commissioned over the next two years[11] Patents and Technology - The second utility patent was awarded in April 2025, expanding the scope of Soluna's Modular Data Center technology[10] Historical Comparison - Total revenue for the three months ended March 31, 2024, was $12,549 million, a decrease from $11,674 million in the previous quarter[33] - Cryptocurrency mining revenue was $6,396 million, while data hosting revenue was $5,278 million for the same period[33] - Segment operating income for the three months ended March 31, 2024, was $5,703 million, compared to $3,229 million in the previous year[33] - Total cost of revenue for the three months ended March 31, 2024, was $5,615 million, compared to $4,763 million in the previous quarter[35] - The gross profit for the three months ended March 31, 2024, was $6,934 million, a decrease from $1,173 million in the previous quarter[35] - Demand response revenue for the three months ended March 31, 2024, was $875 million, while it was $507 million in the same period of 2025[35] - The total segment cost of revenue for the three months ended March 31, 2024, was $5,777 million, an increase from $5,615 million in the previous quarter[33]

Revenue and Profitability - Revenue increased 4,432% to $925,635 in Q1 2025, compared to $20,426 in Q1 2024[5] - Net loss was approximately $2.85 million in Q1 2025, compared to a net loss of approximately $1.41 million in Q1 2024, with the net profit margin improving from approximately (6,947)% to (309)% year-over-year[5] - Adjusted EBITDA was approximately $(1.96) million in Q1 2025, compared to approximately $(1.34) million in Q1 2024[5] - Net loss for Q1 2025 was $2,850,351, compared to a net loss of $1,419,045 in Q1 2024, representing an increase of 101% in losses year-over-year[18] - Adjusted EBITDA for Q1 2025 was $(1,960,997), compared to $(1,337,147) in Q1 2024, indicating a decline of 47% in operational performance[21] Cash and Liquidity - Cash was approximately $1.2 million as of Q1 2025, down from $3.1 million in Q1 2024[5] - Cash and cash equivalents at the end of Q1 2025 were $1,204,400, down from $4,838,146 at the end of Q1 2024, reflecting a decrease of 75%[18] - Cash used in operating activities for Q1 2025 was $(2,267,103), an increase of 48% compared to $(1,527,238) in Q1 2024[18] - Total adjustments to reconcile net loss to net cash used in operating activities were $583,248 in Q1 2025, compared to $(108,193) in Q1 2024[18] - Cash used for additions to capitalized software was $(91,310) in Q1 2025, slightly lower than $(97,700) in Q1 2024[18] - Proceeds from issuance of common stock in Q1 2025 amounted to $231,235, with no such proceeds reported in Q1 2024[18] - Net cash provided by investing activities was $244,554 in Q1 2025, compared to $(19,700) in Q1 2024, indicating a significant improvement[18] Operating Performance - Operating expenses increased to $2.94 million in Q1 2025, compared to $1.31 million in Q1 2024[15] - The company incurred $205,247 in interest expense in Q1 2025, compared to $10,445 in Q1 2024, marking a substantial increase[21] Assets and Investments - Total assets increased to $18.54 million as of March 31, 2025, compared to $11.99 million as of December 31, 2024[12] - The acquisition of GTG Financial contributed to originating 36 mortgages for a total loan volume of approximately $22.4 million since its acquisition in Q1 2025[6] Corporate Developments - The company secured a $5 million media-for-equity investment from Mercurius Media Capital LP on March 10, 2025[7] - The company launched several tools to enhance operational efficiency, including a new public-facing website for Be My Neighbor[6] - The company appointed Piyush Phadke as Chief Financial Officer and Vijay Rathna as Chief Crypto Officer[6] Gains and Losses - The company reported a gain on the sale of properties of $0 in Q1 2025, compared to a gain of $(31,378) in Q1 2024[18]

Financial Performance - Net sales decreased 1.4% to $1.554 billion, with pricing/mix down 0.3% and volume down 2.7%, while the Simple Mills acquisition contributed 1.6%[6] - Net income decreased 27.4% to $53.0 million, representing 3.4% of sales, and diluted EPS decreased $0.09 to $0.25[6] - Adjusted EBITDA increased 1.6% to $162.0 million, representing 10.4% of net sales, a 30-basis point increase[6] - Net sales for the 16-week period ended April 19, 2025, were $1,554,230, a decrease of 1.4% compared to $1,576,818 for the same period in 2024[26] - Branded Retail sales decreased by 0.4% to $1,011,273 from $1,015,130 year-over-year[30] - Adjusted net income per diluted common share for the 16-week period ended April 19, 2025, was $0.35, down from $0.38 in the prior year[34] - EBITDA for the 16-week period ended April 19, 2025, was $134,518, compared to $149,941 in the prior year, reflecting a decline in profitability[39] - Adjusted net income for the 16-week period ended April 19, 2025, was $73,706, down from $80,261 in the prior year[43] - The gross margin for the 16-week period ended April 19, 2025, was $748,400, slightly lower than $753,279 in the prior year[36] Future Guidance - The company expects net sales for Fiscal 2025 to be between $5.297 billion and $5.395 billion, representing 3.8% to 5.7% growth compared to the prior year[7] - Adjusted diluted EPS is projected to be approximately $1.05 to $1.15, compared to prior guidance of $1.11 to $1.24[7] - The company provided full-year fiscal 2025 guidance for net income per diluted common share in the range of $0.95 to $1.05[43] Acquisitions and Strategic Moves - The acquisition of Simple Mills contributed $24.3 million in net sales but resulted in a net loss of $4.2 million[6] - The acquisition of Simple Mills was highlighted as a strategic move to enhance market presence and product offerings[20] - The company experienced a 2.4% increase in net sales due to acquisitions, contributing positively to overall sales performance[36] Expenses and Costs - Selling, distribution, and administrative expenses were 40.8% of net sales, a 110-basis point increase due to higher workforce-related costs[11] - Selling, distribution, and administrative expenses (SD&A) were $633,513 for the 16-week period ended April 19, 2025, compared to $625,251 in the prior year[37] - The company incurred restructuring charges of $573 and plant closure costs of $7,397 during the 16-week period[26] Cash Flow and Assets - Cash flow from operating activities increased by $30.5 million to $135.6 million in the first quarter[10] - The company reported a net cash provided by operating activities of $135,634, an increase from $105,149 in the prior year[28] - Cash and cash equivalents at the end of the period were $7,340, up from $5,005 at the beginning of the period[28] - Total assets increased to $4,326,946 as of April 19, 2025, compared to $3,400,447 at the end of the previous fiscal year[23] - Long-term debt rose significantly to $1,790,379 from $1,021,644, indicating increased leverage[23] Capital Expenditures - Capital expenditures are expected to be approximately $140 million to $150 million, with $4 million to $6 million related to an enterprise resource planning system upgrade[7]