Financial Performance - Total net revenue for fiscal 2025 was $360.5 million, a decrease of 26% compared to $488.2 million in fiscal 2024[227]. - Gross profit for fiscal 2025 was $174.7 million, a decline of 27% from $240.1 million in fiscal 2024[235]. - The company’s gross margin for fiscal 2025 was 48.5%, a slight decline from 49.2% in fiscal 2024[235]. - Americas net revenue decreased by $128.8 million in 2025, mainly due to a $148.0 million reduction in U.S. appliance and integration revenue[229]. - APAC net revenue increased by 149% in 2025 compared to 2024, primarily driven by a DOCSIS expansion project from a new customer[230]. - Net sales from discontinued operations were $210.3 million in 2025, up from $190.5 million in 2024, driven by a $15.9 million increase in appliance and integration revenue[272]. Expenses - Research and development expenses increased to $76.3 million in 2025, up 5% from $72.6 million in 2024[237]. - Selling, general and administrative expenses rose to $81.4 million in 2025, a 3% increase from $79.2 million in 2024[241]. - Lease-related asset impairment and other charges decreased to $1.6 million in 2025 from $10.9 million in 2024, a reduction of 85%[243]. - Interest expense, net decreased to $(3.8) million in 2025 from $(6.5) million in 2024, a decrease of 41%[248]. - Other income (expense), net changed to $(1.4) million in 2025 from $3.3 million in 2024, a decline of 143%[251]. - Provision for income taxes decreased to $7.6 million in 2025 from $20.8 million in 2024, a decrease of 63%[254]. Cash Flow and Debt - Net cash provided by operating activities increased by $46.0 million in 2025, totaling $107.97 million compared to $61.92 million in 2024[263]. - The company had outstanding indebtedness of $112.3 million as of December 31, 2025, including a $75.0 million Revolving Facility and a $37.3 million Term Facility loan[259]. - As of December 31, 2025, cash and cash equivalents totaled $124.1 million, with $58.3 million held outside the United States[262]. - As of December 31, 2025, the carrying values of variable-rate debt included $37.1 million for the Term Loan and $75.0 million for the Revolving Loan[276]. - A hypothetical 100 basis point change in interest rates would affect interest expense on the loans by approximately $1.1 million over the next twelve months[276]. Strategic Initiatives - The company entered into a Put Option Agreement to sell its Video business for $145 million, expected to close in the first half of fiscal 2026[219]. - The company authorized a share repurchase program of up to $200 million, with approximately $121.0 million remaining available for repurchases as of December 31, 2025[260]. Revenue Breakdown - Appliance and integration revenue decreased by $131.0 million in 2025, primarily due to customer deployment timing delays associated with DOCSIS 4.0[228]. - In 2025, approximately 100% of the consolidated net revenues were generated from U.S. dollar functional subsidiaries[275]. - Net billings in foreign currencies accounted for about 6%, 5%, and 11% of total company billings in 2025, 2024, and 2023, respectively[275]. - Stranded costs from the disposition of the Video business were $3.6 million, $4.5 million, and $7.4 million for 2025, 2024, and 2023, respectively[242].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K Washington, D.C. 20549 __________________________ ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Brighthouse Financial, Inc. (Exact name of registrant as specified in its charter) | Delaware | 81-3846992 | | --- | --- | | (State or other jurisdiction of incorporation or orga ...

Assets Under Management (AUM) - Total Assets Under Management (AUM) for Annuities segment increased to $152.745 billion in 2025 from $149.120 billion in 2024, reflecting a growth of approximately 1.8%[29] - Life segment AUM rose to $15.821 billion in 2025, up from $15.751 billion in 2024, indicating a slight increase of 0.4%[29] - Run-off segment AUM remained stable at $26.900 billion in 2025 compared to $26.370 billion in 2024, showing a marginal increase of 2.0%[29] - Corporate & Other segment AUM decreased to $10.691 billion in 2025 from $11.782 billion in 2024, representing a decline of approximately 9.2%[29] Insurance Liabilities - Total insurance liabilities for annuity products reached $138.737 billion in 2025, compared to $138.210 billion in 2024, marking a growth of 0.4%[32] - The total insurance liabilities for life insurance products increased from $15,455 million in 2024 to $16,043 million in 2025, reflecting a growth of approximately 3.8%[82] - The total insurance liabilities for the Run-off segment increased from $26,880 million in 2024 to $26,885 million in 2025, indicating a slight growth[95] Revenue and Fees - Variable annuity contracts generated fee revenue of $2.5 billion in 2025, down from $2.6 billion in 2024, reflecting a decrease of approximately 3.8%[44] Product Innovations - New product innovations include Shield Annuities, which combine features of both variable and fixed annuities, aimed at enhancing customer wealth accumulation[34] - The company plans to focus on selling the new suite of Shield Annuity products alongside variable annuities with GMWBs and GMDBs only[56] - The company launched Brighthouse SmartGuard Plus, an index-linked universal life product, in 2023, which includes a guaranteed distribution rider[86] Risk Management - The company aims to maintain a strong capital base and excess liquidity to support financial strength ratings and mitigate risks from market disruptions[27] - The company continues to focus on disciplined risk selection and innovative product design to achieve risk-adjusted return objectives in the Annuities segment[33] - The company has established controls around underwriting and pricing processes, including regular experience studies and formal new product approval processes[89] - The company retains liability up to $20 million per life under its reinsurance agreements, with the reinsurer responsible for amounts in excess[100] - The company utilizes affiliated reinsurance arrangements through Brighthouse Reinsurance Company of Delaware (BRCD) to manage capital and risk exposures, enhancing operational flexibility[107] Sales and Distribution - The distribution of annuity sales by independent financial planners accounted for 57% of total sales for the year ended December 31, 2025[115] - Life insurance sales were predominantly distributed through financial intermediaries, contributing 88% of total life insurance sales for the year ended December 31, 2025[116] - The top five distributors of annuity products generated 15%, 13%, 12%, 11%, and 7% of total deposits for the year ended December 31, 2025[115] - The company has a diverse distribution network with over 400 partners, allowing for maximized market penetration without incurring fixed costs[110] Regulatory Compliance - Regulatory compliance is maintained through detailed annual financial statements filed with insurance regulatory authorities in each jurisdiction where the company operates[124] - In August 2025, the NAIC adopted Actuarial Guideline LV ("AG 55") for asset adequacy testing, effective for year-end 2025 reporting, which may impact future business operations[130] - The NAIC established a new principle-based reserving framework for non-variable annuities, effective January 1, 2026, with a three-year implementation period[131] - The NAIC is updating the methodology for determining RBC on collateralized loan obligations, with changes delayed until December 31, 2026[134] - The NAIC adopted a group capital calculation tool in 2022 to assess group risks and capital adequacy, though its future implications remain uncertain[140] - The NYDFS amended Insurance Regulation 47, effective January 1, 2023, impacting the competitive landscape for annuity products in New York[151] - The NYDFS Cybersecurity Regulation amendments, effective in phases from November 1, 2023, impose new compliance obligations regarding cybersecurity risk management[154] - The adequacy of statutory reserves must be annually analyzed by qualified actuaries, ensuring they meet anticipated cash flow obligations[149] - Regulatory examinations by state insurance departments have not resulted in material adverse findings in recent years, although future findings cannot be guaranteed[146] Employee and Community Engagement - The company holds approximately 1,400 employees as of December 31, 2025, emphasizing the importance of human capital resources[196] - The company offers a 401(k) savings plan with matching contributions and an Employee Stock Purchase Plan for employees[202] - The company conducts annual pay equity reviews to ensure compensation is based on performance and other non-discriminatory factors[202] - The company is committed to fostering an inclusive workplace to attract and retain talent, recognizing the value of diverse backgrounds and perspectives[204] - The company provides various learning and development opportunities, including mentorship programs and access to education sessions[203] - Brighthouse Financial established the Brighthouse Financial Foundation in 2017 to improve financial security and opportunities in communities, providing resources to tax-exempt organizations[206] - The company launched Brighthouse Scholar Connections, Inc. in 2022 to offer scholarships to historically underrepresented or disadvantaged students, with employees serving as mentors[206] Leadership and Governance - Brighthouse Financial's executive team includes Eric T. Steigerwalt as President and CEO since August 2017, with extensive experience in leadership roles at MetLife and Brighthouse[208] - The company relies on a combination of contractual rights and intellectual property laws to protect its trademarks, including the name "Brighthouse Financial" and its logo[209] - Brighthouse Financial's Investor Relations website serves as a key channel for distributing material information, including SEC filings and financial reports[211] - The company emphasizes the importance of monitoring its website for material disclosures in compliance with SEC regulations[212] - Brighthouse Financial cautions against relying on forward-looking statements, highlighting the risks and uncertainties associated with such statements[214] - The company encourages investors to review important information shared on its Investor Relations website, including press releases and statutory filings[19] - Brighthouse Financial's executive team includes experienced professionals with backgrounds in finance, human resources, and marketing, contributing to the company's strategic direction[208] Financial Regulations and Taxation - The Inflation Reduction Act establishes a 15% corporate alternative minimum tax (CAMT) for corporations with average annual adjusted financial statement income exceeding $1.0 billion[183] - The company assessed that it was not subject to the CAMT for the years ended December 31, 2025, 2024, and 2023, but will continue to evaluate its applicability annually[185] - The Dodd-Frank Act imposes mandatory clearing and margin requirements for certain over-the-counter derivatives, increasing costs for risk mitigation[188] - The company faces increased costs and reduced income due to higher margin requirements and capital charges under Dodd-Frank regulations[188] - The California Climate Corporate Data Accountability Act requires companies with annual revenues exceeding $1.0 billion to report Scope 1 and 2 greenhouse gas emissions starting in 2026[191]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________ FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 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: 001-37905 (980) 365-7100 (Registrant's telephone number, including area code) Securities registered pursuant to ...

Assets Under Management (AUM) - Total Assets Under Management (AUM) for Annuities segment increased to $152.745 billion in 2025 from $149.120 billion in 2024, reflecting a growth of approximately 1.8%[29] - Life segment AUM rose to $15.821 billion in 2025, up from $15.751 billion in 2024, indicating a slight increase of 0.4%[29] - Run-off segment AUM remained stable at $26.900 billion in 2025 compared to $26.370 billion in 2024, showing a marginal increase of 2.0%[29] - Corporate & Other segment AUM decreased to $10.691 billion in 2025 from $11.782 billion in 2024, representing a decline of approximately 9.2%[29] Insurance Liabilities - Total insurance liabilities for annuity products reached $138.737 billion in 2025, compared to $138.210 billion in 2024, marking a growth of 0.4%[32] - The total insurance liabilities for life insurance products increased from $15,455 million in 2024 to $16,043 million in 2025, reflecting a growth of approximately 3.8%[82] - The total insurance liabilities for the Run-off segment increased from $26,880 million in 2024 to $26,885 million in 2025, indicating a slight growth[95] Annuity Products and Revenue - Variable annuity contracts generated fee revenue of $2.5 billion in 2025, down from $2.6 billion in 2024, reflecting a decrease of approximately 3.8%[44] - Shield Annuities deposits reached $8,008 million in 2025, up from $7,671 million in 2024 and $6,857 million in 2023, indicating a growing consumer demand[57] - Total deposits for variable annuities, including GMWBs and GMDBs, amounted to $8,715 million in 2025, compared to $8,300 million in 2024 and $7,503 million in 2023[57] Risk Management and Reinsurance - The company maintains a strong capital base and excess liquidity at the holding company to support financial strength ratings and risk management strategies[27] - The company’s reinsurance strategy includes ceding certain risks to third-party reinsurers to limit losses and provide capacity for future growth[97] - The company retains liability up to a specified amount under excess of retention reinsurance agreements, with the reinsurer responsible for amounts above that[100] - The total reinsurance recoverables amount to $6.47 billion as of December 31, 2025, with MetLife, Inc. holding the largest share at $3.399 billion[103] Regulatory Environment - The company is subject to risk-based capital (RBC) requirements, which assess the minimum statutory capital needed based on size and risk profile, ensuring compliance with regulatory standards[127] - The NAIC adopted Actuarial Guideline LV ("AG 55") for asset adequacy testing, effective for year-end 2025 reporting, which may impact future business operations[130] - The NAIC established a new principle-based reserving framework for non-variable annuities, effective January 1, 2026, with a three-year implementation period[131] - The NAIC's amendments to the Valuation Manual require the use of a new Generator of Economic Scenarios ("GOES") for market risk calculations, effective January 1, 2026, with adoption required by December 31, 2026[132] Sales and Distribution - The relative percentage of annuity sales by independent financial planners was 57% for the year ended December 31, 2025, with the top five distributors contributing 15%, 13%, 12%, 11%, and 7% of total deposits[115] - Life insurance sales were predominantly distributed through financial intermediaries, accounting for 88% of total sales in 2025, with the top five distributors producing 28%, 25%, 20%, 10%, and 4% of sales[116][117] Corporate Social Responsibility and Employee Engagement - Brighthouse Financial established the Brighthouse Financial Foundation in 2017 to improve financial security and opportunities in communities, providing resources to tax-exempt organizations[206] - The company launched Brighthouse Scholar Connections, Inc. in 2022 to offer scholarships to historically underrepresented or disadvantaged students, with employees serving as mentors[206] - The company is committed to fostering an inclusive workplace to attract and retain diverse talent, enhancing its competitive position[204] Leadership and Governance - Brighthouse Financial's executive team includes Eric T. Steigerwalt as President and CEO since August 2017, with extensive experience in financial services[208] - The company emphasizes the importance of monitoring its website for material disclosures in compliance with SEC regulations[212] - Brighthouse Financial cautions against relying on forward-looking statements, highlighting the risks and uncertainties associated with such statements[214]

Financial Strength and Regulatory Compliance - SiriusPoint's insurance and reinsurance subsidiaries have received strong financial strength ratings, with "A-" (Excellent) from AM Best and "A3" from Moody's, all with a positive outlook[93][94]. - The company maintains a minimum solvency margin (MSM) of at least $100 million for Class 4 insurers, which is the greater of specified percentages of net written premium or loss reserves[110]. - SiriusPoint is required to maintain a minimum liquidity ratio of 75% of relevant liabilities for general business insurers[109]. - The Bermuda Monetary Authority (BMA) mandates that insurers file annual statutory financial returns, including a capital and solvency return, within four months after the financial year-end[105]. - The company utilizes a risk-based capital model (BSCR) to determine capital requirements, ensuring that statutory economic capital and surplus meet or exceed the enhanced capital requirement (ECR)[112][111]. - SiriusPoint's Bermuda-licensed subsidiaries are subject to the Insurance Act, which imposes solvency and liquidity standards, as well as auditing and reporting requirements[99][98]. - SiriusPoint Bermuda is designated as the Designated Insurer for group supervisory and solvency purposes, required to comply with group insurance solvency rules[126]. - The Regulatory Group must maintain available statutory economic capital and surplus at least equal to or exceeding the value of its group ECR, with a target capital level set at 120% of group ECR[128]. - The BMA requires all registered insurers to notify of any material changes, including amalgamations or acquisitions, allowing a 30-day period for objections[130]. - SiriusPoint must file quarterly group financial returns and appoint a qualified group actuary approved by the BMA[129]. - The GSSA assesses the quality and quantity of capital required to cover risks, including stress testing and reflecting all assets and liabilities[128]. - SiriusPoint's U.S.-based insurance subsidiaries are regulated by state authorities, which have broad supervisory powers over solvency and financial reporting[142]. - SiriusPoint's U.S. domiciled subsidiaries exceeded all required Risk-Based Capital (RBC) regulatory thresholds as of December 31, 2025[144]. - None of SiriusPoint's U.S.-based insurance and reinsurance subsidiaries are currently subject to regulatory scrutiny based on their respective Insurance Regulatory Information System (IRIS) ratios[145]. - SiriusPoint's U.S.-based insurance and reinsurance subsidiaries have filed their Own Risk and Solvency Assessment with the Domiciliary States[147]. - The Dodd-Frank Act established the Federal Insurance Office (FIO) to monitor the insurance industry and could lead to changes in regulation for certain insurers and reinsurers[161]. - The Solvency II Regulation imposes economic risk-based solvency requirements across all member states in the European Economic Area (EEA) to ensure financial soundness of insurance and reinsurance undertakings[169]. - SiriusPoint International is subject to regulation and supervision by the Swedish Financial Supervisory Authority (SFSA) and must comply with Solvency II Regulation requirements[173]. - The SFSA has broad supervisory powers, including the ability to sanction non-compliance with regulations[174]. - The change of control requirements in the U.K. for dual regulated insurance companies require prior regulatory consent for acquisitions exceeding 10%[195]. Investment and Financial Performance - SiriusPoint's investment policy aims to optimize risk-adjusted after-tax net investment income while maintaining a high-quality, diversified portfolio[86]. - SiriusPoint's investment portfolio is designed to hold cash and fixed income investments amounting to no less than 100% of policyholder liabilities[87]. - The company employs currency forwards to hedge its net exposure across various currencies, although it does not apply hedge accounting to these instruments[88]. - SiriusPoint's investment/finance units monitor compliance with investment rules applicable to each insurance and reinsurance subsidiary[155]. - The Terrorism Risk Insurance Act provides a federal backstop for U.S.-based property and casualty insurers against terrorism-related losses[158]. - Other revenues for the year ended December 31, 2025, included a gain of $222.4 million from the sale of Armada and $107.4 million of service fee revenue from MGAs, compared to $95.9 million and $90.1 million respectively for the year ended December 31, 2024[458]. - Interest expense for the year ended December 31, 2025, was $79.7 million, an increase from $69.6 million in 2024, driven by $47.9 million related to debt obligations and $30.7 million from funds withheld interest[465]. - The foreign exchange losses for the year ended December 31, 2025, amounted to $25.2 million, compared to foreign exchange gains of $10.0 million in 2024, primarily due to underwriting activities[468]. - Income tax expense increased to $81.2 million for the year ended December 31, 2025, from $30.7 million in 2024, driven by higher income in taxable jurisdictions and the taxable gain on the sale of Armada[471]. - The estimated Bermuda Solvency Capital Requirement (BSCR) ratio for SiriusPoint is projected to be 247% for the year ended December 31, 2025, up from 228% in 2024[515]. - SiriusPoint's ability to pay dividends is constrained by regulatory requirements and the need to maintain capital levels to support insurance operations[515]. - The company may need to raise additional funds through public or private equity or debt financing if cash flow from operations is insufficient[519]. Operational and Workforce Insights - The workforce as of December 31, 2025, was 1,099 employees, an increase from 1,072 employees in 2024, with 50% located outside North America and 58% being female[211]. - The company maintained a stable employment status with 94% of employees in full-time roles as of December 31, 2025[212]. - SiriusPoint's overall employee engagement score improved to 82 in 2025, with a Net Promoter Score of 29, up from -24 in 2023[198]. - The company achieved a 91% response rate in its third enterprise-wide engagement survey conducted in 2025[198]. - The company continued to strengthen its performance management approach, emphasizing clarity and accountability, with enhancements designed to improve alignment on goals and recognition of strong performance[207]. - Leadership development remained a priority, with investments in targeted workshops and a formal mentoring program established for 25 mentor relationships[202]. Insurance Segment Performance - Gross written premium increased by $512.1 million, or 16.1%, to $2,313.5 million for the year ended December 31, 2025 compared to $1,840.8 million in 2024[479]. - Net written premium rose by $436.7 million, or 18.7%, to $1,650.2 million for the year ended December 31, 2025 compared to $1,236.2 million in 2024[479]. - Net earned premium increased by $392.4 million, or 17.8%, to $1,481.6 million for the year ended December 31, 2025 compared to $1,154.0 million in 2024[479]. - Underwriting income for 2025 was $214.3 million with a combined ratio of 91.7%, compared to $200.0 million and 91.0% in 2024[480]. - Services revenue for 2025 was $224.4 million, a slight increase from $222.9 million in 2024, driven by growth in IMG's travel business[481]. - The attritional loss ratio improved to 59.0% in 2025 from 59.8% in 2024, contributing an additional income of $20.7 million[480]. - Catastrophe losses increased by $19.6 million in 2025, primarily due to the California wildfires[480]. - The company continues to expand its Insurance & Services segment, which includes Accident & Health, Property & Casualty, and Other Specialties[483]. - Gross written premium in the Insurance & Services segment increased by $472.7 million, or 25.7%, to $2,313.5 million for the year ended December 31, 2025, compared to $1,840.8 million in 2024[486]. - Underwriting income rose by $48.6 million to $123.8 million for the year ended December 31, 2025, driven by premium growth and an improved attritional loss ratio[491]. - The Reinsurance segment's gross written premium increased by $39.4 million, or 2.9%, to $1,375.0 million for the year ended December 31, 2025, compared to $1,335.6 million in 2024[494]. - The combined ratio for the Insurance & Services segment improved to 91.7% in 2025 from 93.5% in 2024, reflecting a decrease of 1.8 percentage points[1]. - Catastrophe losses in the Reinsurance segment were $67.1 million, contributing 6.0 percentage points to the combined ratio for the year ended December 31, 2025[496]. - The loss ratio for the Reinsurance segment increased to 59.1% in 2025 from 53.0% in 2024, reflecting a rise of 6.1 percentage points[493]. Shareholder and Dividend Information - SiriusPoint Bermuda Insurance Company Ltd. declared dividends of $701.6 million to SiriusPoint for the year ended December 31, 2025, compared to $804.0 million in 2024[512]. - SiriusPoint paid dividends of $16.0 million to Series B preference shareholders in 2025, consistent with 2024, while no dividends were paid to common shareholders[513]. - As of December 31, 2025, the company has equity stakes in 18 entities, including MGAs and Insurtech, underwriting a wide range of insurance lines[484]. - The carrying value of the 2017 SEK Subordinated Notes was $292.6 million as of December 31, 2025, up from $244.3 million in 2024[524]. - SiriusPoint entered into a $400.0 million senior unsecured revolving credit facility on December 19, 2024, with no outstanding borrowings as of December 31, 2025[517]. - The liquidity sources for SiriusPoint's operating subsidiaries include net written premium, reinsurance recoveries, and investment income[516]. - SiriusPoint's subsidiaries had a dividend/distribution capacity of approximately $694.7 million as of December 31, 2025, expected to provide sufficient liquidity for the foreseeable future[512].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR o 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 001-16191 10400 Clean Street Eden Prairie, Minnesota 55344 (Address of principal executive offices) (Zip Code) TEN ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 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 no: 001-38903 POSTAL REALTY TRUST, INC. (Exact name of registrant as specified in its charter) Maryland 83-2586114 (S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38399 AdaptHealth Corp. OR WASHINGTON, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 (Exact name of registrant as specified in its charter) | Delaware | 82-3677704 | | --- | --- | | (State of Other Jurisdiction of incorporation or Organiz ...

Revenue and Expenses - Revenue for the year ended December 31, 2025 was approximately $65,000, a decrease of 52% compared to $135,000 in 2024[145] - Cost of revenue increased to approximately $321,000 in 2025 from $123,000 in 2024, reflecting a significant rise in expenses[146] - Operating expenses totaled approximately $20.9 million in 2025, up from $19.3 million in 2024, marking an increase of approximately 8%[147] - Research and development expenses rose to approximately $12.3 million in 2025, an increase of approximately $1.3 million, or 12%, compared to $11.0 million in 2024[149] - General and administrative expenses increased to approximately $7.8 million in 2025, up by approximately $540,000, or 7%, from $7.3 million in 2024[150] - Selling and marketing expenses decreased to approximately $758,000 in 2025, down by approximately $295,000, or 28%, from $1.1 million in 2024[151] Financial Position - As of December 31, 2025, cash and cash equivalents were approximately $19.2 million, with working capital of approximately $17.6 million[155] - The company incurred a net loss of approximately $20.2 million for the year ended December 31, 2025[155] Cash Flow Activities - Net cash provided in investing activities for the year ended December 31, 2025 was approximately $951,000, primarily from the maturity of short-term available-for-sale investments[160] - Net cash provided by financing activities for the year ended December 31, 2025 was approximately $7.4 million, mainly from net proceeds from the ATM Facility[161] - Net cash provided by financing activities for the year ended December 31, 2024 was approximately $20.3 million, primarily from net proceeds from the ATM Facility[162] Stock and Compensation - The company has stock-based compensation programs including RSAs, RSUs, and stock options, with fair value determined at the grant date and amortized over the vesting period[165] - The fair value of performance-based restricted stock units is fixed at the grant date using a Monte Carlo simulation[165] - The company’s stock option awards are valued using the Black-Scholes Option Pricing Model[165] Dividends and Interest - The expected dividend rate is 0% as the company has not declared or paid dividends and has no plans to do so[167] - Interest income for 2025 was approximately $931,000, an increase of approximately $152,000, or 20%, compared to $779,000 in 2024[152] Accounting Policies - The company’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, requiring judgment in making estimates and assumptions[163] - Lease liabilities and ROU assets are recognized for all leases greater than 12 months based on the present value of lease payments[164] - The risk-free interest rate for stock awards is based on U.S. Treasury securities yields with maturities similar to the expected terms of the awards[167] Capital Raising - The company closed a registered direct offering on February 24, 2026, raising approximately $23.6 million in net proceeds from the sale of 5,000,000 shares at $5.00 per share[155]