Part I - Financial Information Item 1. Financial Statements (Unaudited) Unaudited Q1 2025 financials show revenue growth to $15.6 million, reduced net loss to $15.5 million, and decreased total assets to $275.6 million Condensed Consolidated Balance Sheets As of March 31, 2025, total assets decreased to $275.6 million, while the stockholders' deficit widened to $347.4 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $22,349 | $39,336 | | Total current assets | $46,387 | $63,809 | | Property, plant and equipment, net | $184,546 | $183,769 | | Total assets | $275,602 | $290,809 | | Liabilities & Stockholders' Deficit | | | | Total current liabilities | $21,197 | $23,392 | | Long-term debt, net | $201,857 | $202,469 | | Total liabilities | $236,230 | $237,332 | | Total stockholders' deficit | $(347,368) | $(326,702) | | Total liabilities, mezzanine equity, and stockholders' deficit | $275,602 | $290,809 | Condensed Consolidated Statements of Operations Q1 2025 revenues surged to $15.6 million (184% increase), with net loss improving to $15.5 million from $20.1 million Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues | $15,646 | $5,507 | | Gross loss | $(1,561) | $(3,699) | | Operating loss | $(10,151) | $(15,309) | | Net loss | $(15,538) | $(20,087) | | Loss per share - basic and diluted | $(0.41) | $(0.55) | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities improved to $17.7 million, with total cash decreasing by $21.5 million in Q1 2025 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(17,656) | $(22,762) | | Net cash (used in) provided by investing activities | $(2,643) | $2,786 | | Net cash used in financing activities | $(1,159) | $(896) | | Net change in cash, cash equivalents and restricted cash | $(21,490) | $(20,872) | Notes to Condensed Consolidated Financial Statements Notes detail accounting policies, high customer concentration, significant debt, and a $15.0 million aircraft acquisition contingency - The company provides aerial wildfire surveillance and suppression services, owning a fleet of twelve aircraft as of March 31, 2025, including six Super Scoopers2526 - Significant customer concentration exists, with two customers accounting for 48% and 38% of total revenues for the three months ended March 31, 202558 - The company is in compliance with all financial covenants related to its various debt agreements as of March 31, 2025117119120 - A contingency exists where the company may have to pay up to $15.0 million if it does not purchase the four 'Spanish Scoopers' under an agreement with MAB124 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 revenue growth, improved profitability, and ongoing remediation of internal control weaknesses Q1 2025 vs Q1 2024 Results of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $15,646 | $5,507 | $10,139 | 184% | | Gross loss | $(1,561) | $(3,699) | $2,138 | (58%) | | Operating loss | $(10,151) | $(15,309) | $5,158 | (34%) | | Net loss | $(15,538) | $(20,087) | $4,549 | (23%) | Q1 2025 Revenue by Service (in thousands) | Service | Q1 2025 | Q1 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | MRO | $7,890 | $428 | $7,462 | 1,743% | | Fire suppression | $5,783 | $3,881 | $1,902 | 49% | | Aerial surveillance | $1,711 | $583 | $1,128 | 193% | | Other services | $262 | $615 | $(353) | (57)% | - The increase in MRO revenue is primarily due to the FMS acquisition in June 2024 and return-to-service work on the Spanish Scoopers. The increase in fire suppression revenue was driven by more flight hours from an earlier start to the 2025 wildfire season185186 Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(15,538) | $(20,087) | | EBITDA | $(7,572) | $(12,860) | | Adjusted EBITDA | $(5,077) | $(6,928) | Item 3. Quantitative and Qualitative Disclosures about Market Risk As a smaller reporting company, the company is not required to provide market risk disclosures - As a smaller reporting company, Bridger is not required to provide the information otherwise required under this item226257 Item 4. Controls and Procedures Disclosure controls were not effective due to material weaknesses in complex transaction accounting and IT access, with remediation underway - Disclosure controls and procedures were concluded to be not effective as of March 31, 2025258 - Two material weaknesses were identified: one related to accounting for complex transactions within the financial statement closing process, and another related to maintaining and monitoring user access to certain IT systems260 - A remediation plan is in progress, including hiring new personnel, improving review processes, and strengthening IT access controls261264 Part II - Other Information Item 1. Legal Proceedings The company reports no material pending legal proceedings beyond routine business litigation - There are no material pending legal proceedings to which the Company is a party266 Item 1A. Risk Factors No material changes occurred to the risk factors previously disclosed in the 2024 Form 10-K - No material changes have occurred during the three months ended March 31, 2025, to the risk factors disclosed in the Form 10-K for the year ended December 31, 2024267 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities or use of proceeds during the period - None269 Item 5. Other Information No directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - During the three months ended March 31, 2025, none of the Company's directors or executive officers adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement'272 Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including corporate governance documents and certifications
Bridger Aerospace(BAER) - 2025 Q1 - Quarterly Report