PART I - FINANCIAL INFORMATION Financial Statements This section presents unaudited consolidated financial statements for Q1 2025 and 2024, highlighting a significant turnaround to net income and the adoption of ASU 2023-08 for cryptocurrency valuation Consolidated Statements of Income (Loss) Highlights (Unaudited, in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $164,226 | $138,539 | | Income from operations | $17,798 | $699 | | Net income (loss) | $12,175 | $(4,228) | | Net income (loss) attributable to common stockholders | $4,193 | $(1,538) | | Net income per share - basic and diluted | $0.20 | $(0.25) | Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $34,962 | $29,472 | | Cryptocurrencies | $8,384 | $1,510 | | Total Assets | $89,719 | $80,104 | | Total current liabilities | $41,932 | $40,629 | | Total Liabilities | $94,311 | $96,590 | | Total Stockholders' (Deficit) Equity | $(4,592) | $(16,486) | Consolidated Statements of Cash Flows Highlights (Unaudited, in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Cash Flows Provided by Operations | $16,250 | $1,347 | | Net Cash Flows Used In Investing Activities | $(8,209) | $(558) | | Net Cash Flows (Used In) Provided by Financing Activities | $(2,547) | $11,563 | | Net change in cash and cash equivalents | $5,490 | $12,392 | - Effective January 1, 2025, the Company adopted ASU 2023-08, changing the accounting for cryptocurrencies from being recorded at cost less impairment to being measured at fair value, resulting in a cumulative-effect adjustment that increased cryptocurrencies and retained earnings by $852,00065115 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's financial performance, noting an 18.5% revenue increase and significant profitability growth, with Adjusted EBITDA rising to $20.3 million Q1 2025 vs Q1 2024 Results of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $164,226 | $138,539 | $25,687 | 18.5% | | Income from operations | $17,798 | $699 | $17,099 | 2,446.2% | | Net income (loss) | $12,175 | $(4,228) | $16,403 | (388.0)% | - Revenue increased by $25.7 million (18.5%) in Q1 2025 compared to Q1 2024, primarily due to an increase in kiosk transaction volume and a rise in the median transaction size266 - As of March 31, 2025, the company's network included approximately 8,483 BTMs and 10,926 BDCheckout locations, with the median kiosk transaction size increasing to $300240250 Non-GAAP Financial Measures Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Adjusted Gross Profit | $33,135 | $17,252 | | Adjusted Gross Profit Margin | 20.2% | 12.5% | | Adjusted EBITDA | $20,293 | $4,885 | | Adjusted EBITDA margin | 12.4% | 3.5% | Quantitative and Qualitative Disclosures About Market Risk The company's market risks, primarily from foreign currency and interest rates, remain materially unchanged from the prior fiscal year - The company's primary market risks are foreign currency exchange rates and interest rates, with no material changes to this exposure since the end of fiscal year 2024303 Controls and Procedures Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to identified material weaknesses in internal control over financial reporting - Management concluded that disclosure controls and procedures were not effective as of March 31, 2025304 - Material weaknesses were identified in three key areas: (i) lack of a formalized system of internal control, (ii) insufficient general IT controls over systems and service organizations, and (iii) inadequate controls to prevent potential unauthorized cryptocurrency activity306 - Management is taking steps to remediate the weaknesses, including hiring qualified personnel and enhancing processes, but no material changes to internal controls were made during the quarter ended March 31, 2025307309 PART II - OTHER INFORMATION Legal Proceedings The company is defending against two significant legal actions, including a $23.0 million claim from Canaccord Genuity Corp. and a civil complaint from the Iowa Attorney General - Canaccord Genuity Corp. filed a claim against the Company for $23.0 million in damages, alleging breach of contract related to advisory services, with a mediation on April 14, 2025, not resulting in a resolution227311313 - On February 26, 2025, the company was served with a civil complaint from the Attorney General of Iowa, alleging violations of the Iowa Consumer Fraud Act related to customer transactions at its ATMs, which the company rejects and is defending against230314 Risk Factors No material changes have occurred in the company's risk factors since the filing of its Annual Report for the year ended December 31, 2024 - No material changes have occurred in the company's risk factors since the filing of its Annual Report for the year ended December 31, 2024316 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - None Defaults upon Senior Securities The company reported no defaults upon senior securities during the period - None Mine Safety Disclosures This item is not applicable to the company - Not applicable Other Information No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading agreement or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025320 Exhibits and Financial Statement Schedules This section lists exhibits filed with the Form 10-Q, including Amendment No. 1 to the Credit Agreement and Sarbanes-Oxley Act certifications - The report includes several exhibits, notably Amendment No. 1 to the Credit Agreement, CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and Inline XBRL data files321
GSR II METEORA A(GSRM) - 2025 Q1 - Quarterly Report