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 For the transition period from __________ to __________ Commission File Number: 001-39995 ADVANCED FLOWER CAPITAL INC. (Exact name of registrant as specified in its charter) Maryland 85-1807125 (State or ...

Intend to Pursue an NDA Submission to the U.S. FDA under Accelerated Approval Pathway for Iopofosine I 131 for the Treatment of Waldenstrom Macroglobulinemia (WM) Subject to Suf icient Funding and Once the Confirmatory Trial is Underway Continue to Work with the EMA Toward a Potential Submission of Iopofosine I 131 for Conditional Approval in the EU; Decision expected late 3Q early 4Q 2025 Exhibit 99.1 Cellectar Biosciences Reports Second Quarter 2025 Financial Results and Provides a Corporate Update On tra ...

[SpartanNash Second Quarter Fiscal 2025 Results](index=1&type=section&id=SpartanNash%20Second%20Quarter%20Fiscal%202025%20Results) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) SpartanNash's Q2 FY2025 net sales rose 1.8% to $2.27 billion, net earnings fell to $6.2 million, but Adjusted EBITDA increased to $68.7 million Q2 Fiscal 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales (Billions $) | $2.27 | $2.23 | +1.8% | | Net Earnings (Millions $) | $6.2 | $11.5 | -46.1% | | Diluted EPS ($) | $0.18 | $0.34 | -47.1% | | Adjusted EPS ($) | $0.54 | $0.59 | -8.5% | | Adjusted EBITDA (Millions $) | $68.7 | $64.5 | +6.5% | - The ratio of net long-term debt to adjusted EBITDA improved sequentially to **2.7x** from **2.9x** at the end of the first quarter[6](index=6&type=chunk) - Capital expenditures and IT capital for the quarter amounted to **$56.2 million**, a decrease from **$73.4 million** in the prior year's quarter[6](index=6&type=chunk) - The company returned **$15.5 million** to shareholders through dividends during the quarter[6](index=6&type=chunk) [C&S Wholesale Grocers Transaction](index=1&type=section&id=C%26S%20Wholesale%20Grocers%20Transaction) SpartanNash agreed to be acquired by C&S Wholesale Grocers for $26.90 per share, valuing the deal at $1.77 billion, with closing expected late 2025 - On June 22, 2025, SpartanNash agreed to be acquired by C&S Wholesale Grocers in an all-cash transaction[5](index=5&type=chunk) Transaction Details | Metric | Value | | :--- | :--- | | Purchase Price per Share ($) | $26.90 | | Total Consideration (Billions $) | $1.77 (incl. net debt) | | Premium to June 20, 2025 Close (%) | 52.5% | | Premium to 30-day VWAP (%) | 42.0% | - The transaction is expected to close in late 2025, subject to customary closing conditions including shareholder and regulatory approvals[7](index=7&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Retail net sales grew 12.8% to $762.9 million from acquisitions, while Wholesale net sales fell 3.0% to $1.51 billion due to volume declines Q2 2025 Segment Results (vs Q2 2024) | Segment | Net Sales ($) | % Change | Operating Earnings ($) | % Change | | :--- | :--- | :--- | :--- | :--- | | Wholesale | $1.51B | -3.0% | $18.0M | -18.3% | | Retail | $762.9M | +12.8% | $0.1M | -97.9% | - Wholesale sales decline was driven by reduced case volumes in national accounts and the elimination of intercompany sales to newly acquired stores, partially offset by higher military channel sales[6](index=6&type=chunk) - Retail sales growth was due to incremental sales from recently acquired stores, however, retail comparable store sales decreased by **0.5%** due to lower unit volumes[6](index=6&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, including earnings, balance sheets, and cash flows for Q2 and year-to-date fiscal 2025 [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Q2 2025 net sales rose to $2.27 billion, but increased operating expenses led to lower operating earnings of $18.1 million and net earnings of $6.2 million Q2 2025 Statement of Earnings Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net sales | $2,271,145 | $2,230,756 | | Gross profit | $382,622 | $353,003 | | Total operating expenses | $364,498 | $326,877 | | Operating earnings | $18,124 | $26,126 | | Net earnings | $6,190 | $11,489 | | Diluted EPS | $0.18 | $0.34 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 12, 2025, total assets were $2.56 billion, slightly down from fiscal 2024, with liabilities decreasing and shareholders' equity stable Balance Sheet Highlights (in thousands) | Line Item | July 12, 2025 | Dec 28, 2024 | | :--- | :--- | :--- | | Total current assets | $1,087,985 | $1,091,811 | | Total assets | $2,557,509 | $2,602,296 | | Total current liabilities | $693,550 | $695,239 | | Total long-term debt | $713,971 | $740,969 | | Total shareholders' equity | $741,824 | $743,490 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the 28 weeks ended July 12, 2025, net cash from operating activities decreased to $112.6 million, resulting in a net cash increase of $3.9 million for the period Year-to-Date Cash Flow Summary (in thousands) | Cash Flow Activity | 28 Weeks Ended Jul 12, 2025 | 28 Weeks Ended Jul 13, 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $112,563 | $132,098 | | Net cash used in investing activities | $(59,445) | $(79,495) | | Net cash used in financing activities | $(49,184) | $(45,325) | | Net increase in cash | $3,934 | $7,278 | [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section details non-GAAP financial measures like Adjusted EBITDA and EPS, used by management to assess performance by excluding non-operational items, with reconciliations - The company provides non-GAAP measures such as adjusted EPS, net long-term debt, and adjusted EBITDA, which management believes provide useful supplemental information for investors to evaluate performance[24](index=24&type=chunk) - Adjustments to derive non-GAAP measures exclude items considered "non-operational" or "non-core," such as LIFO expense, organizational realignment costs, acquisition and integration expenses, and restructuring charges[25](index=25&type=chunk)[26](index=26&type=chunk) [Reconciliation of Net Earnings to Adjusted EBITDA (Table 2)](index=7&type=section&id=Reconciliation%20of%20Net%20Earnings%20to%20Adjusted%20EBITDA%20(Table%202)) Q2 2025 Adjusted EBITDA increased to $68.7 million, reconciled from GAAP net earnings of $6.2 million by adding back depreciation, acquisition, and realignment costs Q2 Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net earnings | $6,190 | $11,489 | | Depreciation and amortization | $27,876 | $23,342 | | Acquisition and integration, net | $9,315 | $2,613 | | Organizational realignment, net | $4,330 | $1,369 | | **Adjusted EBITDA** | **$68,695** | **$64,506** | [Reconciliation of Net Earnings to Adjusted EPS (Table 3)](index=8&type=section&id=Reconciliation%20of%20Net%20Earnings%20to%20Adjusted%20EPS%20(Table%203)) Q2 2025 Adjusted EPS was $0.54, adjusted from GAAP diluted EPS of $0.18 by excluding after-tax impacts of acquisition and organizational realignment costs Q2 Adjusted EPS Reconciliation | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net earnings (Thousands $) | $6,190 | $11,489 | | Diluted EPS ($) | $0.18 | $0.34 | | Total adjustments, net of taxes (Thousands $) | $12,465 | $8,390 | | **Adjusted earnings (Thousands $)** | **$18,655** | **$19,879** | | **Adjusted EPS ($)** | **$0.54** | **$0.59** | [Reconciliation of Debt to Net Long-Term Debt (Table 4)](index=9&type=section&id=Reconciliation%20of%20Debt%20to%20Net%20Long-Term%20Debt%20(Table%204)) As of July 12, 2025, net long-term debt was $703.4 million, with the leverage ratio improving to 2.7x from 2.9x sequentially Net Long-Term Debt and Leverage Ratio | Metric (in thousands, except ratio) | July 12, 2025 | April 19, 2025 | | :--- | :--- | :--- | | Total debt (Thousands $) | $728,941 | $777,028 | | Less: Cash and cash equivalents (Thousands $) | $(25,504) | $(19,970) | | **Net long-term debt (Thousands $)** | **$703,437** | **$757,058** | | Rolling 52-Weeks Adjusted EBITDA (Thousands $) | $264,644 | $260,455 | | **Net long-term debt to adjusted EBITDA ratio (x)** | **2.7x** | **2.9x** | [Reconciliation of Purchases of Property and Equipment to Capital Expenditures and IT Capital (Table 5)](index=10&type=section&id=Reconciliation%20of%20Purchases%20of%20Property%20and%20Equipment%20to%20Capital%20Expenditures%20and%20IT%20Capital%20(Table%205)) For the 28 weeks ended July 12, 2025, total capital expenditures and IT capital decreased to $56.2 million from $73.4 million in the prior year YTD Capital Expenditures and IT Capital (in thousands) | Line Item | 28 Weeks Ended Jul 12, 2025 | 28 Weeks Ended Jul 13, 2024 | | :--- | :--- | :--- | | Purchases of property and equipment | $51,179 | $67,074 | | Plus: Cloud computing spend | $5,032 | $6,347 | | **Capital expenditures and IT capital** | **$56,211** | **$73,421** | [Forward-Looking Statements and Other Information](index=2&type=section&id=Forward-Looking%20Statements%20and%20Other%20Information) This section outlines risks and uncertainties for forward-looking statements, particularly regarding the C&S transaction, directing investors to SEC filings - Due to the pending transaction with C&S, the company will not host an earnings conference call or provide fiscal 2025 financial guidance[8](index=8&type=chunk) - The report includes forward-looking statements subject to significant risks, including the ability to complete the C&S transaction, competitive pressures, macroeconomic uncertainty, and other factors detailed in SEC filings[10](index=10&type=chunk)[11](index=11&type=chunk) - Investors are urged to read the definitive proxy statement filed with the SEC on July 31, 2025, for important information regarding the proposed transaction[12](index=12&type=chunk)

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 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 001-41833 Falcon's Beyond Global, Inc. (Exact name of registrant as specified in its charter) | Delaware | 92-0261853 | | ...

Exhibit 99.1 Net income for the second quarter of 2025 was $1.7 million compared to $2.6 million during the quarter ended June 30, 2024. Basic earnings per share and diluted earnings per share were $0.19 and $0.18, respectively, compared to $0.29 and $0.27 for the second quarter of 2024. Elevated merger and acquisition-related expense relating to the Irwin acquisition accounted for most of the decline in net income and earnings per share for the second quarter of 2025 compared to the second quarter of 2024. ...

Exhibit 99.1 Palvella Therapeutics Reports Second Quarter 2025 Financial Results and Provides Corporate Update Phase 3 SELVA trial evaluating QTORIN™ 3.9% rapamycin anhydrous gel (QTORIN™ rapamycin) for microcystic lymphatic malformations completed enrollment, exceeding enrollment target by over 25%; top-line results on track for the first quarter of 2026 Top-line results for Phase 2 TOIVA trial evaluating QTORIN™ rapamycin for cutaneous venous malformations remain on track for the fourth quarter of 2025 QT ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited H1 2025 financials report a **$63.3 million net loss**, increased accumulated deficit, and a **going concern warning** [Balance Sheets](index=3&type=section&id=Balance%20Sheets) Balance Sheet Summary (Unaudited) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $25,752 | $12,474 | | Marketable securities | $47,464 | $121,140 | | Total current assets | $76,876 | $135,895 | | **Total assets** | **$114,918** | **$175,515** | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $20,908 | $25,641 | | **Total liabilities** | **$39,080** | **$44,056** | | Accumulated deficit | ($646,879) | ($583,563) | | **Total stockholders' equity** | **$75,838** | **$131,459** | [Statements of Operations and Comprehensive Loss](index=4&type=section&id=Statements%20of%20Operations%20and%20Comprehensive%20Loss) Statement of Operations Summary (Unaudited) | (in thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Research and development | $25,784 | $29,509 | $54,600 | $56,918 | | General and administrative | $6,410 | $7,655 | $12,200 | $14,589 | | **Loss from operations** | **($32,194)** | **($37,164)** | **($66,800)** | **($71,507)** | | **Net loss** | **($31,231)** | **($34,740)** | **($63,316)** | **($66,171)** | | Net loss per share, basic and diluted | ($0.41) | ($0.46) | ($0.83) | ($0.87) | [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) Cash Flow Summary (Unaudited) | (in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($60,306) | ($54,848) | | Net cash provided by investing activities | $73,707 | $57,340 | | Net cash (used in) provided by financing activities | ($123) | $45 | | **Net increase in cash, cash equivalents and restricted cash** | **$13,278** | **$2,537** | [Notes to Unaudited Interim Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Interim%20Financial%20Statements) Notes detail accounting policies, a **going concern warning**, R&D expenses, workforce reduction, and collaboration agreements - The Company has incurred operating losses since inception, with an accumulated deficit of **$646.9 million** as of June 30, 2025[28](index=28&type=chunk) - Management has concluded that **substantial doubt exists about the Company's ability to continue as a going concern**, as its cash, cash equivalents, and marketable securities of **$77.3 million** are not sufficient to fund operations for at least the next twelve months[29](index=29&type=chunk) - In May 2024, the Company entered into a license agreement with Pathos AI, Inc. for its PRMT5 inhibitor, PRT811, receiving a **$3.0 million upfront payment** All performance obligations were satisfied in the second half of 2024[68](index=68&type=chunk)[71](index=71&type=chunk) Research and Development Expenses by Program (Six Months Ended June 30) | (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | PRT3789 | $8,268 | $8,875 | | PRT7732 | $5,736 | $— | | Discovery programs | $5,756 | $10,603 | | Other | $2,701 | $6,143 | | General costs, including personnel related | $32,139 | $31,297 | | **Total research and development** | **$54,600** | **$56,918** | - During the second quarter of 2025, the Company reduced its workforce by approximately **11%**, incurring one-time costs of **$0.5 million**[88](index=88&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses clinical pipeline, Q2/H1 2025 operating expense decreases, liquidity, and Nasdaq delisting [Overview](index=26&type=section&id=Overview) - The company is a clinical-stage precision oncology company with a pipeline including PRT3789 (SMARCA2 degrader), PRT7732 (oral SMARCA2 degrader), precision ADC programs, and KAT6A selective degraders[91](index=91&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk)[103](index=103&type=chunk) - PRT3789 has completed Phase 1, with updated data expected by **year-end 2025** A Phase 2 trial in combination with KEYTRUDA is ongoing[95](index=95&type=chunk) - The oral SMARCA2 degrader, PRT7732, is advancing rapidly in a Phase 1 trial, with an initial data update expected by **year-end 2025**[97](index=97&type=chunk) - On March 27, 2025, the company received a **delisting notice from Nasdaq** for failing to maintain a minimum bid price of **$1.00 per share** The company has until September 23, 2025, to regain compliance[105](index=105&type=chunk)[107](index=107&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Comparison of Operating Results (Three Months Ended June 30) | (in thousands) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Research and development | $25,784 | $29,509 | ($3,725) | | General and administrative | $6,410 | $7,655 | ($1,245) | | **Total operating expenses** | **$32,194** | **$37,164** | **($4,970)** | | **Net loss** | **($31,231)** | **($34,740)** | **$3,509** | - The decrease in R&D and G&A expenses for Q2 2025 was primarily driven by lower non-cash stock-based compensation expense and a decrease in expenses related to SMARCA2 clinical trials[122](index=122&type=chunk)[125](index=125&type=chunk) Comparison of Operating Results (Six Months Ended June 30) | (in thousands) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Research and development | $54,600 | $56,918 | ($2,318) | | General and administrative | $12,200 | $14,589 | ($2,389) | | **Total operating expenses** | **$66,800** | **$71,507** | **($4,707)** | | **Net loss** | **($63,316)** | **($66,171)** | **$2,855** | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had **$77.3 million** in cash, cash equivalents, restricted cash, and marketable securities[136](index=136&type=chunk) - The company states that its current cash position is **not sufficient to fund operating expenses and capital requirements for at least the next twelve months**, raising **substantial doubt about its ability to continue as a going concern**[136](index=136&type=chunk) - The company has a **$400 million effective shelf registration statement** and a **$75 million Open Market Sales Agreement (ATM facility)** in place to potentially raise additional capital[140](index=140&type=chunk)[141](index=141&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, no market risk disclosures are required for this item - As a smaller reporting company, Prelude Therapeutics is **not required to provide quantitative and qualitative disclosures about market risk**[155](index=155&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures with no material changes to internal controls - Management concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[156](index=156&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[157](index=157&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - The company reports **no material legal proceedings**[160](index=160&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) Key risks include potential Nasdaq delisting and substantial doubt about the company's going concern ability - A significant risk is the **potential delisting from Nasdaq** The company received a non-compliance notice on March 27, 2025, for its stock price falling below the **$1.00 minimum bid requirement**[162](index=162&type=chunk)[163](index=163&type=chunk) - The company has until **September 23, 2025**, to regain compliance with Nasdaq's minimum bid price rule, after which it may be eligible for an extension[164](index=164&type=chunk) - The financial statements contain a **'going concern' warning**, indicating **substantial doubt about the company's ability to continue operations** as its current cash will not be sufficient to fund operations for at least the next twelve months[167](index=167&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - **None reported**[169](index=169&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including corporate documents, officer certifications, and XBRL data files

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) The company presents its unaudited condensed consolidated financial statements for the three and six months ended June 30, 2025, showing significant improvement in net income and gross margin driven by higher sales and better cost management [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$60.4 million** from **$51.5 million** at year-end 2024, with total stockholders' equity growing significantly to **$36.8 million** from **$29.8 million** | Balance Sheet Items (In thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $11,853 | $7,075 | | Trade accounts receivable, net | $11,542 | $7,349 | | Inventories, net | $17,167 | $17,636 | | Total current assets | $44,833 | $36,941 | | **Total Assets** | **$60,426** | **$51,499** | | **Current Liabilities** | | | | Accounts payable | $9,835 | $6,327 | | Total current liabilities | $15,920 | $13,974 | | **Total Liabilities** | **$23,663** | **$21,668** | | **Total Stockholders' Equity** | **$36,763** | **$29,831** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, sales increased to **$21.2 million** from **$20.3 million** year-over-year, with gross margin improving to **47.4%** from **37.3%**, leading to net income more than doubling to **$3.7 million** or **$0.96 per diluted share** | Income Statement (In thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales, net | $21,165 | $20,254 | $40,219 | $38,485 | | Gross margin | $10,035 | $7,547 | $18,985 | $13,835 | | Operating income | $3,997 | $2,025 | $6,913 | $3,008 | | Net income | $3,741 | $1,664 | $5,873 | $2,345 | | Net income per share-diluted | $0.96 | $0.47 | $1.51 | $0.66 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$6.0 million** for the first six months of 2025, contributing to a rise in cash and cash equivalents to **$11.9 million** | Cash Flow (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $6,002 | $3,311 | | Net cash used in investing activities | ($1,465) | ($848) | | Net cash provided by (used in) financing activities | $241 | ($2,938) | | **Net change in cash and cash equivalents** | **$4,778** | **($475)** | | **Cash and cash equivalents, end of period** | **$11,853** | **$2,981** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the expansion of the BK ONE Solutions business, a new **$6 million** credit facility, customer concentration, and subsequent events including stock option grants - The company is expanding its Solutions business unit under the new brand, BK ONE, which includes SaaS solutions like InteropONE and other future software and hardware applications[37](index=37&type=chunk) - Sales to U.S. government agencies were **11.5%** of total net sales for the first six months of 2025, down from **41.5%** in the same period last year, while two commercial customers accounted for **26.6%** of net sales in the first half of 2025[62](index=62&type=chunk) - The company entered into a new one-year revolving line of credit for up to **$6 million** with Fifth Third Bank in October 2024, with no borrowings under this facility as of June 30, 2025[38](index=38&type=chunk)[64](index=64&type=chunk) - Subsequent to the quarter end, the company granted performance-based stock options for executives and issued shares related to RSU grants upon achieving revenue milestones for the BKR9000 radio[75](index=75&type=chunk)[76](index=76&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=20&type=section&id=Item%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q2 2025 financial results, highlighting a **4.5%** YoY sales increase to **$21.2 million**, significant gross margin improvement to **47.4%**, and nearly doubled operating income, alongside improved liquidity and an undrawn **$6.0 million** credit facility [Executive Summary](index=21&type=section&id=Executive%20Summary) Q2 2025 sales rose **4.5%** YoY to **$21.2 million**, driven by BKR series radio shipments, with gross margin expanding significantly to **47.4%** and net income increasing substantially to **$3.7 million** or **$0.96 per diluted share** - The backlog of unshipped customer orders was approximately **$16.0 million** as of June 30, 2025, compared to **$21.8 million** as of December 31, 2024[89](index=89&type=chunk) | Key Metrics (Q2 2025 vs Q2 2024) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Sales | ~$21.2M | ~$20.3M | +4.5% | | Gross Profit Margin | 47.4% | 37.3% | +10.1 ppt | | Operating Income | ~$4.0M | ~$2.0M | +100% | | Net Income | ~$3.7M | ~$1.7M | +118% | | Diluted EPS | $0.96 | $0.47 | +104% | [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Net sales for Q2 2025 increased by **4.5%** to **$21.2 million** due to strong BKR series radio sales, while gross profit margin rose to **47.4%** reflecting favorable product mix and manufacturing cost improvements, leading to doubled operating income - The increase in gross profit margins for Q2 and H1 2025 was attributed to a better radio product and accessories sales mix and material cost improvements from transitioning manufacturing to East West Manufacturing, LLC[108](index=108&type=chunk) - SG&A expenses increased by **11.5%** for the six-month period, primarily due to higher engineering and product development costs for the BKR multi-band mobile radio and increased marketing and selling expenses[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened with cash and cash equivalents reaching **$11.9 million** at June 30, 2025, driven by **$6.0 million** in net cash from operations for the first six months, and an undrawn **$6 million** revolving credit facility - Net cash provided by operating activities totaled approximately **$6.0 million** for the first six months of 2025, compared to **$3.3 million** for the same period in 2024[123](index=123&type=chunk) - The company's cash and cash equivalents balance was approximately **$11.9 million** on June 30, 2025[127](index=127&type=chunk) - A Revolving Loan Commitment with Fifth Third Bank provides for a one-year, **$6 million** line of credit (expandable to **$10 million**), which was unused as of the report date[128](index=128&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a "smaller reporting company," the company is not required to provide disclosure under this item - As a "smaller reporting company," the Company is not required to include disclosures about market risk[133](index=133&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025, due to an un-remediated material weakness in internal control over the income tax provision - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were not effective as of the end of the reporting period[135](index=135&type=chunk) - The ineffectiveness is due to a material weakness in internal control related to the proper design and implementation of controls over the income tax provision[136](index=136&type=chunk) - Management has engaged in implementing a remediation plan, including using third-party assistance and enhancing review processes for complex accounting transactions[138](index=138&type=chunk)[139](index=139&type=chunk) PART II - OTHER INFORMATION [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20RISK%20FACTORS) The company highlights a new risk concerning potential adverse effects of changes in U.S. trade policy, including tariffs, which could increase costs, impact the supply chain, and reduce demand due to reliance on foreign electronic components - A specific risk factor has been added regarding changes in U.S. trade policy and tariffs, which could materially affect the business due to its reliance on electronic components from foreign sources[146](index=146&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the issuance of **89,248** common shares via cashless warrant exercise on May 2, 2025, and confirms no shares were repurchased under the **$5 million** share repurchase program during Q2 2025 - On May 2, 2025, the Company issued **89,248** shares of common stock upon the cashless exercise of a warrant[148](index=148&type=chunk) - No shares were repurchased during the second quarter of 2025 under the company's **$5 million** share repurchase program authorized in December 2021[148](index=148&type=chunk)[150](index=150&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20EXHIBITS) This section provides an index of all exhibits filed with the Form 10-Q, including corporate governance documents, incentive compensation plans, employment agreement amendments, and CEO/CFO certifications - The report includes exhibits such as the 2025 Incentive Compensation Plan, Employee Stock Purchase Plan, amendments to executive employment agreements, and CEO/CFO certifications[155](index=155&type=chunk)

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): August 14, 2025 AIR INDUSTRIES GROUP (Exact Name of Registrant as Specified in its Charter) | Nevada | 001-35927 | 80-0948413 | | --- | --- | --- | | State of Incorporation | Commission File Number | IRS Employer I.D. Number | | | 1460 Fifth Avenue, Bay Shore, New York 11706 | | | | (Address of Principal Exe ...

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 001-42524 Acuren Corporation (Exact name of registrant as specified in its charter) | | | incorporation or organiza ...