Financial Performance - For the three months ended September 30, 2025, the Gross Booking Value (GBV) was approximately $6.23 million, a 1.8% increase from $6.12 million in the same period of 2024[275]. - Booking Days for the three months ended September 30, 2025, totaled approximately 179,898, compared to 146,832 during the same period in 2024, representing a 22.5% increase[273]. - Net revenue for the three months ended September 30, 2025, was $2,287,110, compared to $2,246,897 in 2024, reflecting a 1.8% increase[292]. - For the six months ended September 30, 2025, the Gross Booking Value was approximately $12.70 million, up from $12.35 million in 2024, a 2.8% increase[275]. - Total net revenue for the three months ended September 30, 2025, was $2.29 million, a 2% increase from $2.25 million in the same period of 2024[294]. Expenses and Losses - The total costs and expenses for the three months ended September 30, 2025, were $4,267,226, up from $3,819,148 in 2024, indicating an increase of 11.7%[292]. - The loss from operations for the three months ended September 30, 2025, was $(1,980,116), compared to $(1,572,251) in 2024, representing a 25.9% increase in losses[292]. - General and administrative expenses increased to $2,151,287 for the three months ended September 30, 2025, compared to $1,656,036 in 2024, an increase of 29.9%[292]. - The net loss for the six months ended September 30, 2025, was $(4,999,462), compared to $(5,883,554) in 2024, indicating a reduction in losses of 15%[292]. - The company reported a net loss of $5.00 million for the six months ended September 30, 2025, compared to a net loss of $5.88 million in the same period of 2024[327]. Profitability Metrics - Gross profit for the three months ended September 30, 2025, was $1.09 million, an increase from $1.03 million in the same period of 2024, resulting in a gross margin of 48% compared to 46%[313]. - Contribution profit for the three months ended September 30, 2025, was $1.20 million, slightly down from $1.21 million in the same period of 2024, with a contribution margin of 52%[316]. - For the six months ended September 30, 2025, gross profit increased to $2.09 million from $1.76 million in 2024, driven by operational efficiencies and reduced costs[317]. - The company achieved a contribution profit of $2.34 million for the six months ended September 30, 2025, compared to $1.67 million in the same period of 2024[317]. - Adjusted EBITDA loss improved to $1.26 million for the three months ended September 30, 2025, from a loss of $1.47 million in the same period of 2024, reflecting cost reduction initiatives[322]. Cash Flow and Funding - As of September 30, 2025, the company's cash and cash equivalents totaled $0.17 million, indicating a critically deficient cash position[328]. - The Company expects to incur net losses and significant cash outflows from operating activities for at least the next 12 months, requiring additional funding to meet obligations[334]. - As of September 30, 2025, net cash used in operating activities was $0.53 million, a decrease of $1.96 million compared to $2.50 million for the same period in 2024[351]. - The Company raised $5 million in December 2023 through the issuance of 16,667 shares to its largest shareholder[340]. - The Company reported a net cash generated from financing activities of $0.37 million for the six months ended September 30, 2025, compared to $1.26 million for the same period in 2024[353]. Liabilities and Legal Matters - Total lease liabilities as of September 30, 2025, amounted to $3,449,914, with operating lease payments totaling $981,297 and finance lease payments totaling $2,468,617[355]. - The Company has claims filed by customers and third parties not acknowledged as liabilities amounting to $4,563,129 as of September 30, 2025[358]. - The Company has received various orders from tax authorities relating to disputes totaling $9,469,331, with management believing no significant outflow is expected[358]. - Gregory Moran, a former employee, claims $100,000 for termination without cause and additional payments totaling approximately $268,000, including severance and vacation pay[359]. - The Indian tax authority is examining the company's tax returns from 2016 to 2023, with a potential penalty of $125,442 under review[360]. Financial Instruments and Valuation - The Company issued an Unsecured Convertible Note in December 2023 with a principal amount of $8,434,605[341]. - The Company entered into Securities Purchase Agreements for Bridge notes totaling $608,225 with net proceeds of $525,000 after deductions in June and July 2025[346][347]. - Convertible Notes were issued with interest rates between 6-12% per annum, allowing holders to convert into equity shares, and accounted for as share settled debt[363]. - The company classified warrants issued in November and December 2024 as equity after fixing variability in the number of exercisable warrants[367]. - Fair value measurements prioritize inputs based on market activity, with Level 1 inputs being the most reliable[371].

Revenue and Profit - Revenue for the nine months ended September 30, 2025, was $285,948, compared to $nil for the same period in 2024, representing an increase of $285,948[170] - Gross profit for the nine months ended September 30, 2025, was $78,030, with a gross margin percentage of 27%, compared to $nil in 2024[173] - Revenue for the three months ended September 30, 2025, was $285,948, compared to $0 for the same period in 2024, indicating a significant increase[183] - Gross profit for the same period was $78,030, with total operating expenses rising to $2,276,931, an increase of $1,651,316 compared to the previous year[183] Expenses - Research and development expenses increased to $114,108 for the nine months ended September 30, 2025, from $59,651 in 2024, an increase of $54,457[175] - Marketing and promotion expenses decreased to $182,407 for the nine months ended September 30, 2025, from $276,371 in 2024, a decrease of $93,964[176] - Office and administration expenses rose to $1,255,413 for the nine months ended September 30, 2025, compared to $447,874 in 2024, an increase of $807,539[177] - Consulting fees increased to $1,367,005 for the nine months ended September 30, 2025, from $784,420 in 2024, an increase of $582,585[178] - Professional fees increased to $939,754 for the nine months ended September 30, 2025, compared to $266,433 in 2024, an increase of $673,321[179] - Repairs and maintenance expenses for the nine months ended September 30, 2025, were $312,579, with no comparable expense in 2024[181] - Research and development expenses increased to $15,000 from $4,098, reflecting a rise of $10,902 driven by ongoing clinical validation studies[185] - Marketing and promotion expenses surged to $64,484 from $11,258, an increase of $53,226 primarily due to heightened marketing efforts for newly acquired businesses[186] - Office and administration expenses rose to $726,543 from $167,074, an increase of $559,469 attributed to higher business activity and costs from newly acquired subsidiaries[187] - Consulting fees increased significantly to $621,103 from $226,104, a rise of $394,999 mainly due to bonus-related consulting expenses[188] Net Loss and Financial Position - The net loss from continuing operations was $2,616,018, compared to a loss of $1,201,853 in the prior year, representing a deterioration of $1,414,165[183] - Other income (expense) resulted in a net loss of $362,176 for the nine months ended September 30, 2025, compared to a net loss of $317,054 in 2024, an unfavorable variance of $45,122[182] Cash and Financing Activities - Cash provided by financing activities for the nine months ended September 30, 2025, was $10,116,739, an increase of $3,359,238 compared to $6,757,501 in 2024[200] - As of September 30, 2025, the company had cash of $7,700,562, up from $3,984,453 as of December 31, 2024, reflecting improved liquidity[193] Acquisitions and Business Strategy - The company completed two acquisitions, Pacific Sun Packaging Inc. and AGA Precision Systems LLC, during the nine months ended September 30, 2025[204] - The company plans to focus on advancing clinical development and pursuing additional acquisitions of operating business-to-business companies with positive EBITDA over the next twelve months[168] Share-Based Compensation and Accounting - For the nine months ended September 30, 2025, the company recorded a share-based compensation expense of $(29,817), compared to $57,521 for the same period in 2024[213] - The fair value of each option grant was estimated using a Black-Scholes option-pricing model during the nine months ended September 30, 2025, and the year ended 2024[214] - The company accounts for share-based compensation to employees and non-employees under the fair value method, recognizing it over the requisite service period[211][212] Financial Reporting and Risks - The company does not have any off-balance sheet arrangements that could materially affect its financial condition or results of operations[216] - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[217] - The company does not believe the impact of inflation on its financial position is material, although it is exposed to inflation risk from increases in labor costs[220] - Market risk exposure is limited to risks arising in the normal course of business, as the company does not engage in speculative transactions[221] - The expected dividend yield for the company's common stock is assumed to be zero, as it has not paid and does not anticipate paying cash dividends[215] - The company has an enforceable right to payment for performance completed to date in its revenue recognition for AGA Precision Systems LLC[208] - Convertible debt and embedded derivative liabilities are accounted for separately, with the embedded derivative liability measured at fair value[209]

Financial Performance - As of September 30, 2025, the company reported an accumulated deficit of $433.7 million and cash and cash equivalents of $5.9 million, raising substantial doubt about its ability to continue as a going concern [166][170]. - The company expects to incur significant operating losses and does not anticipate revenue from ABP-450 until regulatory approval and commercialization are achieved [167]. - The Company reported a net loss of $4.5 million for the three months ended September 30, 2025, compared to a net loss of $6.2 million for the same period in 2024 [196]. - The company has incurred recurring losses from operations and expects to continue incurring significant operating losses for the foreseeable future [219]. - The company reported a net loss of $2.1 million for the nine months ended September 30, 2025, compared to a net income of $39.9 million for the same period in 2024 [225][226]. - The total operating costs and expenses for the nine months ended September 30, 2025, were $7.3 million, compared to a significant loss of $75.3 million in the same period in 2024 [196]. Research and Development - The company aims to develop ABP-450 as a biosimilar to Botox, targeting a global therapeutic botulinum toxin market estimated at $3.3 billion based on AbbVie's reported revenues for the fiscal year ended 2024 [156]. - The initial results from analytical studies show a 100% amino acid sequence match between ABP-450 and Botox, supporting the biosimilar development [161]. - The company expects R&D expenses to increase as it develops and seeks regulatory approval for ABP-450, with significant costs anticipated for clinical studies [189]. - The company has discontinued Phase 2 clinical trials for episodic and chronic migraine due to not meeting primary endpoints, implementing cash preservation measures instead [157]. - The company has scheduled a BPD Type 2a meeting with the FDA on November 19, 2025, to review analytical study results for ABP-450 [160]. - The company announced a strategic reprioritization to pursue a 351(k) biosimilar regulatory pathway for ABP-450, using Botox as a reference product [213]. Financing Activities - The Company completed an underwritten public offering on January 7, 2025, selling 555,571 Common Units, resulting in net proceeds of approximately $18.3 million after expenses [182]. - The company entered into a PIPE financing agreement on November 12, 2025, for the sale of 6,581,829 shares at a price of $0.9116 per share, generating gross proceeds of $6 million [183]. - The company entered into a Subscription Agreement with Daewoong for the sale of Convertible Notes totaling up to $15 million to support the late-stage clinical development of ABP-450 [175]. - The Company announced a binding term sheet with Daewoong for the exchange of $15.0 million in 2024 Convertible Notes for approximately 23,103,694 shares of Class A common stock and a new $1.5 million convertible note due 2030 with an interest rate of 15.79% [179]. - The company plans to use net proceeds from the PIPE financing to advance its ABP-450 biosimilar program and for general corporate purposes [217]. Compliance and Regulatory Issues - The company received a notice of non-compliance from NYSE American due to a stockholders' deficit of $32.1 million as of September 30, 2024, and is working on a plan to regain compliance [171]. - The company has substantial doubt about its ability to continue as a going concern, indicating potential challenges in meeting obligations within one year [224]. - The exercise price of the Private Placement Warrants is $828.00 per warrant, while the last reported sales price of common stock was $0.935, suggesting low likelihood of warrant exercise [221]. - The company may need to raise additional funds through equity or debt financing, which could lead to dilution for stockholders [223]. - The company is classified as a smaller reporting company, with a market value of common stock held by non-affiliates below $700 million [233]. - The company intends to rely on exemptions from various public company reporting requirements as an emerging growth company [231]. Operating Expenses - For the three months ended September 30, 2025, SG&A expenses decreased by $1.1 million, or 36%, to $1.9 million compared to $3.0 million for the same period in 2024 [197]. - SG&A expenses decreased by $2.7 million, or 25%, to $8.3 million for the nine months ended September 30, 2025, compared to $11.0 million for the same period in 2024 [198]. - Research and development expenses for the nine months ended September 30, 2025, were $2.5 million, a significant decrease from $11.1 million in the same period in 2024 [196]. - R&D expenses for the nine months ended September 30, 2025, were $2.5 million, a decrease of $8.7 million, or 80%, from $11.1 million for the same period in 2024 [200]. - The change in fair value of convertible notes resulted in a loss of $1.9 million for the three months ended September 30, 2025 [196]. - The company recorded a loss on issuance of warrants of $75.6 million due to the fair value of warrants exceeding proceeds received [202].

Financial Results - Adial Pharmaceuticals, Inc. reported financial results for the quarter ended September 30, 2025, in a press release issued on November 14, 2025[5]. - The report indicates that the financial information is not deemed "filed" under the Securities Exchange Act of 1934, thus limiting liability under certain sections[6]. - The report does not provide specific performance metrics or user data in the available content[5]. - There is no mention of future outlook, product development, market expansion, or mergers and acquisitions in the provided documents[5]. Company Information - The company is listed on the Nasdaq Stock Market under the trading symbol ADIL[3]. - The press release is attached as Exhibit 99.1 to the Current Report on Form 8-K[7]. - The company has not elected to use the extended transition period for complying with new financial accounting standards[4]. - The company is classified as an emerging growth company[4]. - The address of the company's principal executive offices is 4870 Sadler Road, Suite 300, Glen Allen, VA 23060[3]. - Cary J. Claiborne serves as the President and Chief Executive Officer of Adial Pharmaceuticals, Inc.[12].

Financial Performance - Total net revenue increased 20.5% to $17.6 million for the third quarter of 2025 compared to the third quarter of 2024[1] - Journey Medical's net product revenues for the third quarter of 2025 were $17.0 million, up from $14.6 million in the same quarter of 2024[13] - Consolidated net income attributable to common stockholders was $3.7 million, or $0.13 per share basic, for the third quarter ended September 30, 2025, compared to a net loss of $(15.0) million for the same period in 2024[14] - Net revenue for the three months ended September 30, 2025, was $17,631,000, a 20.5% increase compared to $14,629,000 for the same period in 2024[19] - Product revenue, net, rose to $17,025,000 for the three months ended September 30, 2025, compared to $14,629,000 in the prior year, marking a 16.4% increase[19] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $3,675,000, compared to a loss of $15,040,000 in the same period of 2024[19] - The company reported a loss from operations of $6,811,000 for the three months ended September 30, 2025, an improvement from a loss of $22,095,000 in the same period of 2024[19] Cash and Assets - Fortress' consolidated cash and cash equivalents totaled $86.2 million as of September 30, 2025, an increase of $28.9 million year-to-date[14] - Cash and cash equivalents increased to $86,218,000 as of September 30, 2025, up from $57,263,000 at December 31, 2024, reflecting a 50.7% increase[18] - Total assets increased to $181,407,000 as of September 30, 2025, up from $144,223,000 at December 31, 2024, representing a 25.9% growth[18] Expenses and Liabilities - Consolidated research and development expenses decreased to $0.2 million for the third quarter of 2025, down from $9.4 million in the same quarter of 2024[14] - Operating expenses decreased to $24,442,000 for the three months ended September 30, 2025, down from $36,724,000 in the same period of 2024, a reduction of 33.3%[19] - Research and development expenses significantly decreased to $208,000 for the three months ended September 30, 2025, compared to $9,446,000 in the same period of 2024, a reduction of 97.8%[19] - Total liabilities decreased to $116,222,000 as of September 30, 2025, down from $145,867,000 at December 31, 2024, a decline of 20.5%[18] Strategic Developments - Fortress received approximately $28 million from the acquisition of Checkpoint Therapeutics by Sun Pharma, with potential additional payments of up to $4.8 million and a 2.5% royalty on future net sales of UNLOXCYT™[2] - Dotinurad is advancing in two Phase 3 clinical trials, with a $205 million Series A financing announced by Crystalys Therapeutics underscoring market confidence in its potential[2][11] - Fortress anticipates the resubmission of the New Drug Application for CUTX-101, which may qualify for a Priority Review Voucher upon approval[2] - Journey Medical expanded payer access to over 100 million commercial lives in the U.S. for Emrosi, compared to 54 million in May 2025[13] Capital Management - Fortress remains focused on disciplined execution and optimizing capital allocation to drive sustainable growth and deliver innovative treatments[3]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $30,464,002, a 33% increase compared to $22,838,671 for the same period in 2024 [20]. - Net income attributable to Bit Digital shareholders for the three months ended September 30, 2025, was $150,883,713, compared to a net loss of $38,795,486 in the same period of 2024 [20]. - The company reported a comprehensive income of $145,773,161 for the three months ended September 30, 2025, compared to a comprehensive loss of $38,795,486 in the same period of 2024 [22]. - Earnings per share for the three months ended September 30, 2025, were $0.48, compared to a loss of $0.26 in the same period of 2024 [20]. - For the nine months ended September 30, 2025, Bit Digital reported a net income of $103,887,367, a significant increase compared to a net loss of $666,729 in the same period of 2024 [28]. - The company reported a net income of $150.88 million for the period, compared to a net loss of $4.16 million in the previous period, indicating a significant turnaround [26]. Asset and Liability Management - Total assets increased to $1,133,084,610 as of September 30, 2025, up from $538,247,664 on December 31, 2024, representing a growth of 110% [15]. - Total current assets rose to $672,650,640 as of September 30, 2025, compared to $297,256,935 as of December 31, 2024, marking a 126% increase [15]. - Total liabilities decreased to $87,503,224 as of September 30, 2025, down from $74,768,515 on December 31, 2024 [15]. - The balance sheet reflects a total equity of approximately $406.39 million, indicating a solid financial position [26]. - The company reported a balance of $1.53 billion as of September 30, 2024, compared to $1.79 billion as of December 31, 2024, indicating a decrease of approximately 14.5% [25]. Revenue Streams - Digital asset mining revenue decreased to $7,415,702 for the three months ended September 30, 2025, down 27% from $10,110,221 in 2024 [20]. - Cloud services revenue increased significantly to $18,032,898 for the three months ended September 30, 2025, up 48% from $12,151,302 in 2024 [20]. - The Company generated $7,415,702 in revenue from digital asset mining for the three months ended September 30, 2025, compared to $10,110,221 for the same period in 2024, representing a decrease of approximately 26.9% [132]. - For the nine months ended September 30, 2025, the Company earned 1,022.1 ETH valued at $3,575,804 from staking activities, compared to 382.4 ETH valued at $1,142,059 for the same period in 2024, indicating a significant increase in staking rewards [137]. Shareholder Equity and Compensation - The weighted average number of ordinary shares outstanding increased to 317,296,789 for the three months ended September 30, 2025, compared to 149,684,237 in 2024 [20]. - Share-based compensation expense for the quarter ending June 30, 2024, amounted to $76,568, an increase from $40,661 in the previous quarter [24]. - Share-based compensation expenses were $219.25 million, consistent with the previous period, reflecting stable compensation costs [25]. - The company issued 11.25 million ordinary shares, raising approximately $112.5 million net of offering costs, which will support future growth initiatives [26]. - The Company has granted a total of 5,987,455 RSUs under the 2025 Omnibus Equity Incentive Plan [211]. Operational Developments - The company is investing heavily in new product development, with R&D expenses reaching $5.8 billion, which is 18% of total revenue [1]. - The company plans to launch a new product line in Q3 2025, which is expected to drive additional revenue growth [1]. - The company is actively investing in new technology development to improve operational efficiency and customer experience [26]. - The company is exploring strategic acquisitions to enhance its technology portfolio, with a focus on AI and machine learning startups [1]. - The company has been actively expanding its operations in the HPC sector, with the acquisition of Enovum Data Centers Corp. completed on October 11, 2024 [34]. Cash Flow and Investments - Cash used in operating activities for the nine months ended September 30, 2025, was $(204,864,851), compared to $(20,311,102) in 2024, indicating a substantial increase in cash outflow [28]. - Net cash provided by financing activities was $452,695,272 for the nine months ended September 30, 2025, compared to $131,709,364 in 2024, reflecting strong capital raising efforts [28]. - The Company invested an additional $2.0 million into the AI Innovation Fund I on May 20, 2025, bringing the total investment to $17.6 million [204]. Accounting and Compliance - Effective January 1, 2024, the Company adopted ASU 2023-08, requiring cryptocurrencies to be measured at fair value, impacting the accounting treatment of digital assets [57]. - The Company recognizes mining revenue based on the spot price of Bitcoin from Coinbase, with changes in fair value reported as "gains (losses) on digital assets" post-ASU 2023-08 adoption [60][61]. - The Company is evaluating the impact of new accounting standards, including ASU 2023-09 and ASU 2024-03, on its financial disclosures [109][110]. Market and User Engagement - User data showed an increase in active users to 1.8 billion, up from 1.6 billion in the previous quarter, representing a growth of 12.5% [1]. - Future guidance suggests a focus on enhancing user engagement and increasing market share through innovative product offerings [26].

Financial Performance - Total operating costs and expenses for the three months ended September 30, 2025, were $2,493 million, compared to $4,016 million for the same period in 2024, representing a decrease of 38.0%[26] - Net loss for the three months ended September 30, 2025, was $4,538 million, compared to a net loss of $6,171 million for the same period in 2024, indicating an improvement of 26.4%[26] - Basic net loss per share for the three months ended September 30, 2025, was $0.39, compared to a loss of $11.24 per share for the same period in 2024, reflecting a significant reduction in losses[26] - Research and development expenses for the nine months ended September 30, 2025, totaled $2,485 million, down from $11,144 million in the same period of 2024, a decrease of 77.7%[26] - Total other loss income for the three months ended September 30, 2025, was $(2,045) million, compared to $(2,155) million for the same period in 2024, showing a slight improvement[26] - Loss on issuance of warrants for the nine months ended September 30, 2025, was $(75,644) million, indicating significant financial impact[26] - Change in fair value of convertible notes for the three months ended September 30, 2025, resulted in a loss of $(1,877) million, consistent with the previous year's loss of $(1,878) million[26] - The company reported a total loss before taxes of $(4,538) million for the three months ended September 30, 2025, compared to $(6,171) million for the same period in 2024, reflecting a reduction of 26.4%[26] - The change in fair value of warrants resulted in a loss of $(236) million for the three months ended September 30, 2025, compared to a gain of $85,950 million in the same period of 2024, indicating volatility in financial instruments[26] Financing and Cash Position - The company announced two financing transactions totaling $6 million, expected to reduce outstanding debt by over 90% and extend cash runway into Q2 2026[5][6] - As of September 30, 2025, AEON had cash and cash equivalents of $5.9 million, which will be sufficient to fund operations through Q2 2026[6] - Total assets increased to $8.734 million as of September 30, 2025, compared to $3.142 million at the end of 2024[23] - Total liabilities decreased to $28.606 million as of September 30, 2025, down from $31.711 million at the end of 2024[23] - AEON's accumulated deficit stood at $433.682 million as of September 30, 2025, compared to $431.597 million at the end of 2024[23] Product Development and Regulatory Updates - AEON reported positive biosimilarity data for ABP-450, confirming a 100% amino-acid sequence match to BOTOX® with 93-99% sequence coverage across all five proteins[3][4] - The FDA Type 2a meeting is scheduled for November 19, 2025, to discuss the analytical development plan and initial data for ABP-450[1][7] - AEON has exclusive development and distribution rights for ABP-450 in the U.S., Canada, EU, UK, and other territories, targeting a market exceeding $3.0 billion annually[9] - The company aims to accelerate the ABP-450 biosimilar program by up to six months following the recent financing[2][5] - The company has a globally approved manufacturing platform for ABP-450, with approvals in 69 countries, validating its biosimilar strategy[2]

Financial Position - Total assets increased by $28.8 million, or 5.0%, to $609.6 million as of September 30, 2025, compared to $580.8 million at December 31, 2024[161]. - Total liabilities increased to $537,297 as of September 30, 2025, compared to $513,976 at the end of 2024[210]. - Total stockholders' equity increased by $1.1 million, or 1.8%, to $63.2 million at September 30, 2025[174]. Cash and Deposits - Cash and due from banks rose by $12.5 million, or 175.7%, to $19.6 million at September 30, 2025, driven by a $27.3 million increase in total deposits[162]. - Total deposits increased by $25.8 million, or 5.7%, to $480.0 million as of September 30, 2025, from $454.2 million at December 31, 2024[172]. - Core deposits rose by $4.6 million, or 1.5%, to $323.1 million at September 30, 2025, compared to $318.5 million at December 31, 2024[172]. Loan Portfolio - Net loans decreased by $5.5 million, or 1.3%, to $430.0 million at September 30, 2025, with $9.2 million collected in loan principal during the nine months ended September 30, 2025[165]. - One- to four-family residential mortgage loans decreased by $4.1 million, or 1.5%, to $271.1 million at September 30, 2025[166]. - Commercial and industrial loans increased by $971,000, or 4.1%, to $24.7 million at September 30, 2025[166]. - The portfolio of purchased loans had an outstanding principal balance of $37.0 million as of September 30, 2025, performing in accordance with original repayment terms[165]. Income and Expenses - Net income for the three months ended September 30, 2025, was $390,000, an increase of $346,000 from $44,000 for the same period in 2024[178]. - Total interest and dividend income increased by $344,000, or 5.3%, to $6.9 million for the three months ended September 30, 2025[179]. - Net interest and dividend income rose by $465,000, or 15.6%, to $3.4 million for the three months ended September 30, 2025[183]. - Non-interest income increased by $180,000, or 49.5%, to $544,000 for the three months ended September 30, 2025[185]. - Non-interest expense increased by $969,000, or 8.3%, to $12.7 million for the nine months ended September 30, 2025, from $11.8 million for the same period in 2024[203]. Interest Rates and Risk Management - The weighted average annualized yield on interest-earning assets increased to 4.59% for the nine months ended September 30, 2025, from 4.45% for the same period in 2024[197]. - The net interest rate spread improved to 1.70% for the nine months ended September 30, 2025, up from 1.43% in 2024[206]. - In a rising interest rate environment, the company anticipates that deposit and borrowing rates will reprice upwards faster than long-term loan rates, compressing the interest rate spread[224]. - A substantial and unexpected change in market interest rates could materially adversely affect the company's financial condition and results of operations[225]. - The company monitors its exposure to interest rate movements regularly and implements strategies to mitigate negative impacts[222]. Credit Losses and Provisions - The allowance for credit losses (ACL) on loans was $3.5 million at both September 30, 2025, and December 31, 2024, based on ASU 2016-13[168]. - Provision for credit losses recorded was $50,000 for the nine months ended September 30, 2025, compared to a $(20,000) release of credit losses for the same period in 2024[201]. - Non-performing loans were $194,000 as of September 30, 2025, compared to $0 at December 31, 2024[177]. Economic Value and Liquidity - The bank's liquidity position is monitored daily, with no material commitments for capital expenditures as of September 30, 2025[214]. - The bank exceeded all regulatory capital requirements as of September 30, 2025, and is categorized as well-capitalized[216]. - The economic value of equity is expected to decrease by 20.9% with a 200 basis point increase in interest rates, which is above the policy limit of 20%[224].

Customer Acquisition - Sow Good Inc. announced a major retail customer win on October 27, 2025[7] Funding and Strategy - The company is pursuing additional funding for a crypto asset strategy[7] Cost Management - Sow Good Inc. is implementing additional cost optimization measures[7]

Financial Performance - Net loss for Q3 2025 was $2.0 million, or $0.19 per share, compared to a net loss of $4.9 million, or $0.49 per share in Q3 2024[13] - The net loss for the first nine months of 2025 was $6.4 million, or $0.61 per share, compared to a net loss of $14.2 million, or $1.40 per share in the first nine months of 2024[14] - Net loss for the three months ended September 30, 2025, was $2,049,000, compared to a net loss of $4,939,000 for the same period in 2024, indicating an improvement of approximately 58.5%[24] - Net loss per common share for the three months ended September 30, 2025, was $(0.19), an improvement from $(0.49) for the same period in 2024, reflecting a decrease in loss per share of approximately 61.2%[24] Expenses - Research and development (R&D) expenses for Q3 2025 were $954,000, a decrease of 70% compared to $3.2 million in Q3 2024[12] - General and administrative (G&A) expenses for Q3 2025 were $1.1 million, down 39% from $1.8 million in Q3 2024[12] - For the first nine months of 2025, R&D expenses totaled $3.4 million, a reduction of 68% from $10.5 million in the same period of 2024[14] - Research and development expenses for the nine months ended September 30, 2025, were $3,436,000, down from $10,500,000 for the same period in 2024, a decrease of about 67.3%[24] - General and administrative expenses for the three months ended September 30, 2025, were $1,135,000, compared to $1,800,000 for the same period in 2024, reflecting a decrease of approximately 37.2%[24] - Total operating expenses for the three months ended September 30, 2025, were $2,089,000, down from $5,042,000 in 2024, a reduction of about 58.6%[24] Cash and Assets - As of September 30, 2025, unrestricted cash was $7.7 million, down from $9.9 million as of December 31, 2024[15] - Total current assets decreased from $11,580,000 as of December 31, 2024, to $8,782,000 as of September 30, 2025, representing a decline of approximately 24.0%[22] Liabilities - Total liabilities decreased from $3,933,000 as of December 31, 2024, to $2,777,000 as of September 30, 2025, a reduction of about 29.4%[22] Funding and Awards - Cocrystal raised gross proceeds of $4.7 million from a registered direct offering in September 2025, and an additional $1.03 million from a private placement in October 2025[3][16] - Cocrystal received a Small Business Innovation Research (SBIR) award from the NIH for $500,000 to advance its influenza A/B replication inhibitor program[3][10] Future Outlook - The company expects to begin enrolling participants for the CDI-988 Phase 1b norovirus challenge study in Q1 2026[4] - The global COVID-19 therapeutics market is projected to exceed $16 billion annually by the end of 2031[11] Shareholder Information - The weighted average number of common shares outstanding increased from 10,174,000 as of September 30, 2024, to 10,991,000 as of September 30, 2025, an increase of approximately 8.0%[24] Interest Income - Interest income for the nine months ended September 30, 2025, was $482,000, compared to $87,000 for the same period in 2024, representing a significant increase of approximately 453.4%[24] Accumulated Deficit - The accumulated deficit increased from $(333,418,000) as of December 31, 2024, to $(339,823,000) as of September 30, 2025, indicating a deterioration of about 1.2%[22]