Revenue Performance - Lifeward reported revenue of $6.2 million in Q3 2025, a slight increase of approximately 1% from $6.1 million in Q3 2024, and an 8% increase from $5.7 million in Q2 2025[5] - Revenue from traditional products, including ReWalk exoskeletons, increased by 24% year-over-year to $3.1 million, attributed to Medicare-related sales growth[5] - Revenue for Q3 2025 was $6,195 million, a slight increase from $6,128 million in Q3 2024, while total revenue for the nine months ended September 30, 2025, was $16,953 million, down from $18,118 million in the same period last year[23] Financial Losses and Improvements - Non-GAAP operating loss decreased to $3.0 million in Q3 2025, compared to a loss of $4.1 million in Q3 2024, representing a 27% improvement[7] - Operating loss for Q3 2025 was $(3,140) million, which is 50.7% of revenue, compared to $(3,174) million or 51.8% of revenue in Q3 2024[30] - Net loss for Q3 2025 was $(3,170) million, compared to $(3,084) million in Q3 2024, with a basic net loss per share of $(0.20) versus $(0.35) in the prior year[29] - Non-GAAP net loss for Q3 2025 was $(2,996) million, compared to $(3,960) million in Q3 2024, with a non-GAAP net loss per share of $(0.19) versus $(0.45) in the prior year[29] Cost Management and Efficiency - Quarterly cash burn improved to $3.8 million, down 16% year-over-year from $4.5 million in Q3 2024, reflecting operational efficiencies[4] - Operating expenses decreased to $5.7 million on a non-GAAP basis, down from $6.7 million in Q3 2024, reflecting improved efficiency in reimbursement activities[6] - Gross margin increased to 43.7% in Q3 2025, up from 36.2% in Q3 2024, driven by lower production costs following the closure of the Fremont facility[5] Cash Flow and Assets - Cash and cash equivalents at the end of Q3 2025 were $1,956 million, a decrease from $6,746 million at the end of December 2024[25] - Total assets as of September 30, 2025, were $23,168 million, down from $30,487 million at the end of December 2024[25] - The company reported net cash used in operating activities of $(13,271) million for the nine months ended September 30, 2025, compared to $(17,749) million in the same period of 2024[27] - The company experienced a decrease in cash, cash equivalents, and restricted cash of $(4,748) million for the nine months ended September 30, 2025, compared to $(17,778) million in the same period of 2024[27] Research and Development Expenses - Research and development expenses for Q3 2025 were $721 million, down from $998 million in Q3 2024, while sales and marketing expenses decreased to $3,168 million from $4,156 million[23] - GAAP research and development expenses for Q3 2025 were $721,000, representing 11.6% of revenue, compared to $998,000 (16.3%) in Q3 2024[31] - Non-GAAP research and development expenses for Q3 2025 were $689,000, or 11.1% of revenue, down from $960,000 (15.7%) in Q3 2024[31] General and Administrative Expenses - GAAP general and administrative expenses for Q3 2025 were $1,958,000, representing 31.6% of revenue, compared to $240,000 (3.9%) in Q3 2024[31] - Non-GAAP general and administrative expenses for Q3 2025 were $1,884,000, or 30.4% of revenue, compared to $2,024,000 (33.0%) in Q3 2024[31] - The company reported a significant increase in GAAP general and administrative expenses for the nine months ended September 30, 2025, totaling $5,917,000 (34.9%) compared to $3,424,000 (18.9%) in the same period of 2024[31] Strategic Initiatives - The company secured a $3.0 million loan from Oramed Ltd. to support ongoing operations and strategic initiatives[4] - Lifeward reaffirmed its full-year 2025 revenue guidance, expecting revenue in the range of $24 to $26 million and a projected non-GAAP net loss of $12 to $14 million[11] - The company received CE mark approval for the ReWalk 7 Personal Exoskeleton, enabling commercial sales in Europe, which currently accounts for approximately 40% of exoskeleton sales[4] Stock-Based Compensation - Stock-based compensation expenses for Q3 2025 were $74,000 (1.2%) compared to $158,000 (2.6%) in Q3 2024[31]

Clinical Development - CG Oncology initiated a rolling Biologics License Application (BLA) submission for cretostimogene monotherapy in high-risk BCG-unresponsive non-muscle invasive bladder cancer (NMIBC) with complete submission expected in 2026[4] - The 24-month complete response (CR) rate for cretostimogene monotherapy in patients with HR NMIBC was 41.8%, with 90% of 12-month responders remaining disease-free at 24 months[6] - Enrollment for the PIVOT-006 clinical trial was completed approximately 10 months ahead of schedule, highlighting significant interest in cretostimogene[6] - The company expects to present additional data from BOND-003 Cohort P and CORE-008 Cohort A before year-end 2025[5] Financial Performance - Cash and cash equivalents as of September 30, 2025, were $680.3 million, sufficient to fund operations into the first half of 2028[8] - Research and Development (R&D) expenses for Q3 2025 were $27.9 million, an increase from $19.6 million in Q3 2024[8] - General and Administrative (G&A) expenses for Q3 2025 were $23.3 million, up from $8.7 million in Q3 2024, primarily due to increased legal and personnel-related expenses[8] - The net loss for Q3 2025 was $43.8 million, or ($0.57) per share, compared to a net loss of $20.4 million, or ($0.30) per share, in Q3 2024[8] - Total revenues for Q3 2025 were $1.666 million, compared to $43,000 in Q3 2024[15] - Total stockholders' equity as of September 30, 2025, was $687.6 million, down from $733.4 million as of December 31, 2024[17]

Financial Performance - Net sales for fiscal 2025 increased by $72.2 million, or 1.8%, to $4,033.0 million compared to fiscal 2024[171] - Gross profit for fiscal 2025 increased by $28.0 million, or 7.4%, with a gross margin of 10.1%, up 50 basis points from fiscal 2024[181] - Operating income for fiscal 2025 rose by $34.7 million, or 20.7%, to $202.4 million, with an operating margin of 5.0%, an increase of 80 basis points[182] - Net income for fiscal 2025 increased by $61.1 million, or 54.7%, to $172.9 million, driven by higher operating income and lower other expenses[190] - Diluted earnings per share increased to $6.26 in fiscal 2025 from $4.01 in fiscal 2024[190] - The company's return on invested capital (ROIC) for fiscal 2025 was 14.6%, reflecting an economic return of 5.7%[194] - Cash and cash equivalents decreased to $306.8 million as of September 27, 2025, from $347.5 million as of September 28, 2024[197] - Cash flows provided by operating activities decreased to $249.2 million in fiscal 2025 from $436.5 million in fiscal 2024, a decline of 42.9%[200] - Free cash flow (FCF) for fiscal 2025 was $154.0 million, down from $341.3 million in fiscal 2024, representing a decrease of $187.3 million[207] - Cash flows used in financing activities decreased to $196.4 million in fiscal 2025 from $255.6 million in fiscal 2024, a reduction of 23.1%[211] Market and Customer Base - In fiscal 2025, Plexus served approximately 190 customers, with no single customer accounting for over 10% of total sales[24] - The distribution of net sales by market sectors in fiscal 2025 was 17% Aerospace/Defense, 40% Healthcare/Life Sciences, and 43% Industrial[25] - The company's 10 largest customers accounted for 49.1% and 47.8% of net sales in fiscal 2025 and 2024, respectively, indicating a high customer concentration risk[74] Operational Strategy - Plexus aims for a long-term revenue growth rate of 9-12% and a return on invested capital (ROIC) of 15%, exceeding its weighted average cost of capital (WACC) of 8.9% for fiscal 2025[17] - Plexus operates 26 facilities totaling approximately 5.0 million square feet, strategically located to support global supply chains[23] - The company has a dedicated team for new product introduction, focusing on decreasing time to market and transitioning products to full volume manufacturing[26] - The company maintains a flexible workforce strategy, utilizing skilled temporary labor alongside full-time employees to maximize efficiency[56] - The company conducts regular talent reviews to assess performance, potential, and retention rates, ensuring a strong leadership pipeline[45] Sustainability and Compliance - The company focuses on reducing emissions, waste, and water usage while transitioning to renewable energy and optimizing operations through new technologies[37] - The company has 17 out of 18 manufacturing facilities certified to ISO 14001 Environmental Management standards, and 3 certified to ISO 45001 Occupational Health and Safety Management standards[53] - The company is committed to human rights, prohibiting discrimination, child labor, and forced labor, while supporting fair wages and humane treatment of workers[44] - The company’s operations are subject to various compliance obligations, including environmental and product safety regulations, to mitigate risks of non-compliance[60] - Compliance with evolving data privacy regulations, such as GDPR, is critical, with potential legal and reputational risks for non-compliance[103] Risks and Challenges - The company faces significant competition, which may lead to price reductions, reduced sales, and loss of market share due to competitors with greater resources and market presence[73] - The company relies on timely payments from major customers, and any failure to meet obligations could adversely affect its financial condition and results[77] - The Healthcare/Life Sciences sector is significantly impacted by government reimbursement rates and health crises, which could affect customer purchasing behavior and margins[82] - The company has experienced component shortages and delays, which can reduce revenue and operating profit due to supply chain constraints[93] - Operations outside the U.S. represent a majority of net sales and operating income, particularly concentrated in Malaysia, exposing the company to geopolitical risks[86] - Cybersecurity threats pose significant risks, including potential data breaches that could disrupt operations and lead to financial liabilities[101] - Labor availability issues, including wage pressure and high turnover rates, may adversely affect operations and financial results[119] - Inflationary pressures and increased personnel costs could materially impact operating results and cash flows if not offset by price increases or operational efficiencies[120] Shareholder and Financial Management - As of September 27, 2025, the company repurchased a total of 160,582 shares at an average price of $134.07 per share[164] - The company has authorized a share repurchase program of up to $100.0 million under the 2026 Program, which became effective upon completion of the 2025 Program[165] - The cumulative total return on Plexus common stock increased from $100 in 2020 to $202 in 2025, outperforming the S&P MidCap 400 Index and Nasdaq-Electronic Components Index[161] - The company anticipates retaining the majority of earnings for capital expenditures and working capital requirements, with no cash dividends paid in the past[163] - The effective tax rate for fiscal 2026 is expected to be approximately 17.0% to 19.0%[189] Inventory and Cash Management - Days in inventory decreased by nine days to 118 days for the three months ended September 27, 2025, compared to 127 days for the same period in 2024[204] - Days in accounts receivable increased by three days to 57 days for the three months ended September 27, 2025, compared to 54 days for the same period in 2024[201] - The annualized cash cycle days decreased by one day to 63 days as of September 27, 2025, compared to 64 days as of September 28, 2024[202]

Financial Performance - The company reported net losses of $56.0 million and $55.1 million for the nine months ended September 30, 2025 and 2024, respectively, with an accumulated deficit of $951.5 million as of September 30, 2025[191]. - Collaboration revenue for the three months ended September 30, 2025, was $11.0 million, a decrease of $1.6 million from $12.6 million in the same period of 2024[215]. - For the nine months ended September 30, 2025, collaboration revenue decreased to $16.8 million from $24.1 million in 2024, a decline of $7.3 million[221]. - Total other income, net decreased by $3.1 million, from $3.9 million during the nine months ended September 30, 2024 to $0.7 million during the nine months ended September 30, 2025[224]. Cash Position - Cash and cash equivalents stood at $56.4 million as of September 30, 2025, which is expected to fund operations into mid-2026[191]. - As of September 30, 2025, cash and cash equivalents were $56.4 million, with expectations to fund current operating plan commitments into mid-2026[225][235]. - Net cash used in operating activities was $55.1 million during the nine months ended September 30, 2025, compared to $63.1 million during the same period in 2024[231]. - Net cash provided by investing activities was $27.8 million during the nine months ended September 30, 2025, compared to net cash used of $38.6 million during the same period in 2024[232]. - Net cash used in financing activities was $24.0 million during the nine months ended September 30, 2025, compared to net cash provided of $6.0 million during the same period in 2024[233]. - The company expects cash expenditures to increase as it continues development and manufacturing of product candidates, particularly Emi-Le and XMT-2056[234]. Revenue Sources - The company has not generated any revenue from product sales, relying solely on strategic collaborations for revenue[193]. - Collaboration revenue from the 2022 Merck KGaA Agreement was $1.8 million and $2.4 million for the three and nine months ended September 30, 2025, respectively, compared to $3.4 million and $6.6 million for the same periods in 2024[195]. - Collaboration revenue from the GSK Agreement was $8.6 million and $9.6 million for the three and nine months ended September 30, 2025, respectively, compared to $0.5 million and $0.6 million for the same periods in 2024[196]. - The company recognized $0.6 million and $8.8 million of collaboration revenue for the three months ended September 30, 2025, and 2024, respectively, under the Johnson & Johnson Agreements[197]. - The company has potential milestone payments under ongoing collaboration agreements with GSK, Johnson & Johnson, and Merck KGaA, contingent on successful research and development activities[239]. Clinical Development - The company is conducting a Phase 1 clinical trial for Emi-Le, with positive initial clinical data reported as of December 13, 2024, and further interim data presented in mid-2025[181]. - The company is also investigating XMT-2056 in a Phase 1 clinical trial, which resumed in the first half of 2024 after a FDA clinical hold was resolved[186]. - The company expects significant research and development expenses over the next several years as it continues clinical development and manufacturing of Emi-Le and XMT-2056[208]. Expenses and Restructuring - Research and development expenses for the three months ended September 30, 2025, were $12.2 million, down from $14.8 million in 2024, a decrease of $2.6 million[216]. - General and administrative expenses decreased to $6.3 million for the three months ended September 30, 2025, from $9.9 million in 2024, a reduction of $3.6 million[218]. - Total operating expenses for the three months ended September 30, 2025, were $18.7 million, down from $24.7 million in 2024, a decrease of $6.0 million[214]. - The company incurred restructuring expenses of $0.2 million and $4.1 million for the three and nine months ended September 30, 2025, respectively[212]. - Research and development expense decreased by $4.0 million, from $50.7 million for the nine months ended September 30, 2024 to $46.7 million for the nine months ended September 30, 2025[222]. - General and administrative expense decreased by $9.3 million, from $31.9 million during the nine months ended September 30, 2024 to $22.6 million during the nine months ended September 30, 2025[223]. - A strategic restructuring plan was implemented in May 2025, resulting in a reduction of approximately 55% of the employee base[187]. Mergers and Acquisitions - The company has entered into a merger agreement with Day One Biopharmaceuticals, Inc., with a cash offer of $25.00 per share plus contingent value rights potentially worth up to $30.25 per share[178]. - The merger is expected to close by the end of January 2026, subject to customary closing conditions[179]. Going Concern - There is substantial doubt about the company's ability to continue as a going concern if the acquisition by Parent is not consummated, necessitating additional funding[235].

Revenue Performance - Revenue for Q3 2025 was $4.49 million, a 20% increase from $3.74 million in Q3 2024[4] - Total revenue for the first nine months of 2025 was $12.28 million, consistent with $12.17 million in the prior year period[4] - Combined revenues from import and metal segments increased 37% year-over-year to $5.08 million[4] Expenses and Losses - Net loss for Q3 2025 was $(4.15) million, primarily due to non-cash stock-based compensation of $3.78 million[4] - General and administrative expenses for Q3 2025 rose 527% to $5.6 million compared to $892,709 in Q3 2024[6] Assets and Equity - Total assets grew to $10.7 million as of September 30, 2025, up from $5.0 million at December 31, 2024[8] - Shareholders' equity increased to $9.16 million, up from $2.54 million at year-end 2024[8] Strategic Focus - The company continues to invest in AI-driven logistics and proprietary software infrastructure[4] - Toppoint is focused on growth in high-margin export categories, including metals and recyclable commodities, anticipating continued progress into 2026[9] Import and Metal Segments - Import-related services surged 115% to $1.58 million, while metal shipments rose to $716,000[4]

Financial Performance - Total operating expenses for Q3 2025 were $19.4 million, a decrease from $26.5 million in Q3 2024, representing a 26.5% reduction[11] - Research and development expenses for Q3 2025 were $13.7 million, down from $20.2 million in Q3 2024, reflecting a 32.2% decrease[11] - The company reported a net loss of $8.4 million for Q3 2025, compared to a net loss of $24 million in Q3 2024, indicating a 65% improvement[21] - The net loss per common share for Q3 2025 was $0.13, compared to $0.36 in Q3 2024, showing a significant reduction in loss per share[21] Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were approximately $31 million, expected to support operations through Q1 2026[5] - The company increased cash and cash equivalents by $2.5 million during Q3 2025, primarily due to a €12.5 million loan drawdown and $6.6 million from common stock issuance[11] - Cash and cash equivalents dropped from $60,031 million to $30,664 million, a decrease of about 49%[23] Clinical Trials and Research - The Phase 3 clinical trial (IOB-013) for Cylembio in advanced melanoma involved 407 patients and demonstrated clinically relevant improvements in progression-free survival (PFS) despite narrowly missing statistical significance[6] - The company plans to meet with the FDA in December 2025 to discuss the design of a potential new Phase 3 registrational trial for IO102-IO103 in advanced melanoma[5] - The company presented pre-clinical data for additional T-win platform candidates at the SITC Annual Meeting, targeting arginase 1 and TGF-ß[5] - The company is advancing its lead cancer vaccine candidate, Cylembio, in clinical trials while maintaining global commercial rights[12] Assets and Liabilities - Total assets decreased from $67,699 million as of December 31, 2024, to $39,956 million as of September 30, 2025, representing a decline of approximately 41%[23] - Total current assets fell from $64,951 million to $36,831 million, a decrease of about 43%[23] - Total liabilities increased significantly from $20,684 million to $39,045 million, marking an increase of approximately 89%[23] - Current liabilities decreased slightly from $19,486 million to $18,311 million, a reduction of about 6%[23] - Non-current liabilities surged from $1,198 million to $20,734 million, an increase of approximately 1630%[23] Stockholder Equity - Common stock outstanding rose from 65,880,914 shares as of December 31, 2024, to 69,692,179 shares as of September 30, 2025, an increase of about 6%[23] - Additional paid-in capital increased from $413,113 million to $424,335 million, reflecting a growth of approximately 2.7%[23] - The accumulated deficit widened from $(359,313) million to $(416,329) million, indicating a deterioration of about 16%[23] - Total stockholders' equity decreased from $47,015 million to $911 million, a decline of approximately 98%[23]

Financial Performance - Total revenues for the nine months ended September 30, 2025, were $2.305 million, a decrease of 65.5% compared to $6.698 million for the same period in 2024[24] - Gross profit for the three months ended September 30, 2025, was $183 thousand, down 89.5% from $1.743 million in the same quarter of 2024[24] - Operating loss for the nine months ended September 30, 2025, was $5.514 million, compared to an operating loss of $2.123 million for the same period in 2024[24] - The company reported a net comprehensive loss of $5.741 million for the nine months ended September 30, 2025, compared to a net loss of $2.575 million for the same period in 2024[24] - Net loss for the nine months ended September 30, 2025, was $5,741,000, compared to a net loss of $2,575,000 for the same period in 2024, representing a 122% increase in losses[40] - Non-GAAP Adjusted EBITDA for the nine months ended September 30, 2025, was $(5.29) million, compared to $(2.01) million for the same period in 2024[177] Assets and Liabilities - Total current assets decreased to $5.921 million as of September 30, 2025, from $6.903 million as of December 31, 2024, reflecting a decline of 14.2%[19] - Total liabilities decreased to $3.967 million as of September 30, 2025, from $5.240 million as of December 31, 2024, a reduction of 24.3%[21] - Cash and cash equivalents decreased to $1.454 million as of September 30, 2025, from $1.967 million as of December 31, 2024, a decline of 26%[19] - Total shareholders' equity as of September 30, 2025, was $2.965 million, a slight decrease from $2.985 million as of December 31, 2024[21] Cash Flow - Negative cash flows from operating activities for the nine months ended September 30, 2025, were $5,637,000, up from $4,781,000 in 2024, indicating an 18% increase in cash outflow[40] - The company had cash and cash equivalents of $1,454,000 and restricted cash equivalents of $304,000 as of September 30, 2025, totaling $1,758,000, down from $2,541,000 in 2024, a decrease of 31%[36] - Net cash used in operating activities for the nine months ended September 30, 2025, was $5.6 million, an increase from $4.78 million in the same period of 2024, primarily due to lower sales[212] - The net change in cash for the nine months ended September 30, 2025, was a decrease of $509,000, compared to a decrease of $2.97 million in the same period of 2024[211] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $1.947 million, an increase of 8.6% compared to $1.793 million for the same period in 2024[24] - As of September 30, 2025, the Company had received approximately $14,373,000 in research and development grants from the Government of Israel, with a potential royalty obligation based on future sales[83] Financing Activities - Proceeds from the issuance of common stock through at-the-market offerings (ATM) amounted to $2,637,000 in 2025, with offering costs of $262,000[40] - The company completed a private placement in July 2025, raising approximately $1,000,000 in gross proceeds through the issuance of common stocks and warrants[89] - The company entered into a private placement on June 30, 2025, issuing 1,626,019 shares of Common Stock for total gross proceeds of approximately $1 million[184] - The company completed a private placement on September 27, 2025, raising approximately $850,000 by issuing 871,766 shares of Common Stock and Pre-Funded Warrants[207] - The company has a commitment to issue up to $30 million in aggregate gross purchase price of newly issued shares under the Equity Line of Credit Agreement over a 36-month period[113] Compliance and Regulatory Issues - The company is under scrutiny for compliance with Nasdaq listing requirements, having received notifications regarding minimum shareholders' equity and bid price compliance[45][46] - The company plans to seek shareholder approval for a proposed reverse stock split to regain compliance with Nasdaq bid price requirements by December 5, 2025[51] - The company is subject to a delisting penalty provision that could increase financial obligations if it fails to remain listed on the Nasdaq Capital Market[199] Inventory and Receivables - As of September 30, 2025, the total inventory amounted to $2,675,000, an increase from $2,436,000 as of December 31, 2024, with inventory write-downs of $140,000 for the nine months ended September 30, 2025[79] - The Company reported trade receivables concentration with Customer A at 19% and Customer B at 14% as of September 30, 2025[76] Market and Operational Strategy - The company has focused on expanding its technology and product offerings to serve the wide-area IoT, federal, and DoD markets, introducing cyber-aware networking solutions in 2024[154] - The company is closely monitoring political and military developments in the region, assessing their potential impact on operations and financial performance[44] Stock and Warrants - The total outstanding warrants were 12,027,944, with exercise prices ranging from $0.37 to $50[124] - The company received approximately $1.6 million in gross proceeds from the exercise of existing warrants at an exercise price of $0.37 per share[97] - The exercise price for Series A-3 and Series A-4 warrants is set at $0.615 per share, with a total of 4,878,057 shares potentially issuable[95]

Financial Performance - Revenue from the sale of metals decreased from $1.4 million for the nine months ended September 30, 2024, to zero for the same period in 2025 due to the cessation of mining operations [107]. - Administrative expenses decreased from approximately $3.0 million for the nine months ended September 30, 2024, to $1.9 million for the same period in 2025, reflecting cost reduction efforts [98]. - Exploration expenses totaled $0.3 million for the nine months ended September 30, 2025, down from $0.5 million for the same period in 2024 [97]. - The company recorded a loss from discontinued operations of $0.5 million for the nine months ended September 30, 2025, compared to a loss of $3.3 million for the same period in 2024 [102]. - As of September 30, 2025, the company's cash and cash equivalents totaled $1.7 million, a decrease from $3.2 million at December 31, 2024, reflecting significant expenditures [110]. - The company incurred $2.9 million in general and administrative and exploration expenditures during the nine months ended September 30, 2025 [114]. Asset Sales and Transactions - The company processed all mineralized material from the Velardeña Properties and subsequently shut down the sulfide processing plant, holding the properties for short-term sale, with a total sale price of $5.5 million in cash plus VAT [82]. - The company completed the sale of Silex Argentina for $3.5 million and the Yoquivo exploration property for $570,000 plus VAT in 2024, continuing to hold interests in several exploration properties [83]. - The company recorded a gain of $0.6 million from the sale of Minera de Cordilleras for the nine months ended September 30, 2025 [107]. - Cash inflows included $1.8 million from asset sales, with $1.2 million from the sale of Velardeña Plant 2 and water wells, and $0.6 million from the sale of Minera de Cordilleras [114]. Financial Position and Liquidity - As of September 30, 2025, the company had current assets of approximately $2.0 million, including cash and cash equivalents of approximately $1.7 million, against current liabilities of approximately $4.3 million [105]. - The company anticipates cash resources will be exhausted in the second quarter of 2026 without additional cash inflows or asset sales [106]. - The company faces material uncertainties regarding its ability to continue as a going concern, dependent on generating sufficient cash flow and securing funding [109]. Exploration and Development Plans - The company controls 67% of the Desierto Project and plans to initiate a Phase I drill program to test extensions of gold mineralization observed at the adjacent Sarita Este property [86]. - Forward-looking statements indicate anticipated near-term capital needs and plans for exploration activities at the Sarita Este/Desierto project and Sand Canyon project [115]. Risks and Accounting Standards - The company is evaluating the impact of new accounting standards issued by the FASB, including ASU 2025-02, ASU 2025-03, and ASU 2025-04, which may affect its financial statements [111][112][113]. - The company is at risk from fluctuations in commodity prices, particularly for gold, silver, copper, zinc, and lead, which could impact its ability to establish reserves [120]. - The company acknowledges various risks, including exploration costs, political instability, and potential litigation, which could adversely affect its operations and financial outlook [117]. - The company maintains minimum cash balances in foreign currencies to mitigate foreign currency exchange risk, primarily related to expenditures in Mexico and Argentina [119]. - A 1% decrease in interest rates would have resulted in only a nominal reduction in interest income based on average cash and investment balances during the first nine months of 2025 [118].

Financial Performance - As of September 30, 2025, the company has not generated any revenue from its operations[176] - The company reported a net loss of $4.01 million for Q3 2025, compared to a net income of $35.02 million in Q3 2024, a difference of $39.03 million[180] - Net cash used in operating activities for the nine months ended September 30, 2025 was $4.0 million, a significant improvement compared to $21.6 million for the same period in 2024[206] - The company expects future operating losses and negative operating cash flows may increase due to additional costs related to technology development and market relationships[202] Expenses - General and administrative expenses for Q3 2025 were $2.96 million, up from $2.44 million in Q3 2024, reflecting a $0.52 million increase[181] - Research and development expenses for Q3 2025 were $(8,476), a decrease of $78,671 compared to $(87,147) in Q3 2024[180] - Research and development expenses for the nine months ended September 30, 2025 were $0.8 million, a decrease of $1.0 million compared to $1.8 million for the same period in 2024[185] - Sales and marketing expenses for the three months ended September 30, 2025 were $50,473, an increase of 113% compared to $23,639 for the same period in 2024[186] Capital and Financing - The company entered into an Equity Line Purchase Agreement allowing it to sell up to $30 million of newly issued shares over 36 months[174] - As of September 30, 2025, the company reported net proceeds of approximately $0.4 million from sales under the Equity Line Purchase Agreement[174] - Net cash provided by financing activities for the nine months ended September 30, 2025 was $14.8 million, primarily from the April 2025 PIPE Offering[209] Joint Ventures and Agreements - A joint venture agreement with CATL was established on October 27, 2021, forming CAMT, with both parties owning 50% of the shares and CAMT having exclusive rights to commercialize AirJoule technology in Europe and Asia[212] - As of September 29, 2023, Legacy Montana and CATL US agreed to contribute $6.0 million each to CAMT, totaling $12.0 million, with no funding or asset contributions made to date[213] - CAMT is managed by a four-member board, with specific voting rights and requirements for significant financial decisions, including unanimous votes for transactions exceeding $10.0 million[213] Market Potential - The total addressable market for the company's technology is estimated to be approximately $450 billion[170] - The company plans to manufacture AirJoule systems capable of producing over 250 liters of water per day by 2025 for customer demonstrations[169] Future Expectations - The company expects general and administrative expenses to increase in future periods due to business growth and public company status[181] - The company has a remaining commitment for capital contributions to the AirJoule JV of $82.3 million as of September 30, 2025[203] Other - The Company entered into a patent license agreement in October 2021, resulting in a reversal of $0.5 million in accrued royalties expense during Q3 2025 due to the elimination of minimum royalty amounts through 2029[211] - The Company is classified as an emerging growth company under the JOBS Act, allowing it to delay compliance with new accounting standards until certain conditions are met[218] - The Company will remain an emerging growth company until it meets specific revenue or securities thresholds, including total annual gross revenue of at least $1.235 billion[220]

Financial Performance - As of September 30, 2025, the company has not generated any revenue from its operations[176] - The company reported a net loss of $4.01 million for Q3 2025, compared to a net income of $35.02 million in Q3 2024, a difference of $39.03 million[180] - General and administrative expenses for Q3 2025 were $2.96 million, up from $2.44 million in Q3 2024, reflecting a $0.52 million increase[181] - General and administrative expenses for the nine months ended September 30, 2025, were $9.5 million, an increase of $3.0 million from $6.5 million in the same period of 2024[182] - Research and development expenses for Q3 2025 were $(8,476), a decrease of $78,671 compared to $(87,147) in Q3 2024[180] - Research and development expenses for the nine months ended September 30, 2025 were $0.8 million, a decrease of $1.0 million compared to $1.8 million for the same period in 2024[185] - Sales and marketing expenses for the three months ended September 30, 2025 were $50,473, an increase from $23,639 for the same period in 2024[186] - Interest income for the nine months ended September 30, 2025 was $799,656, an increase from $616,677 for the same period in 2024[190] Cash Flow and Investments - Net cash used in operating activities for the nine months ended September 30, 2025 was $4.0 million, compared to $21.6 million for the same period in 2024[206] - Net cash used in investing activities for the nine months ended September 30, 2025 was $12.8 million, primarily due to contributions to the AirJoule JV[208] - Net cash provided by financing activities for the nine months ended September 30, 2025 was $14.8 million, primarily from the April 2025 PIPE Offering[209] - As of September 30, 2025, the company had $25.9 million in working capital, including $26.0 million in cash and cash equivalents[201] Joint Ventures and Partnerships - The company entered into a PIPE agreement on April 23, 2025, to issue 3,775,126 shares at $3.98 per share, raising approximately $15 million[173] - The company contributed an additional $12.8 million in capital contributions to the AirJoule JV during the nine months ended September 30, 2025[200] - The remaining commitment for capital contributions to the AirJoule JV is $82.3 million as of September 30, 2025[203] - A joint venture with CATL was established on October 27, 2021, with both parties owning 50% of CAMT, which has exclusive rights to commercialize AirJoule technology in Europe and Asia[212] - As of September 30, 2025, the company and CATL US have each agreed to contribute $6.0 million to CAMT, totaling $12.0 million, but no funding has occurred yet[213] - CAMT is managed by a four-member board, with specific voting rights and requirements for significant financial decisions, including unanimous votes for transactions exceeding $10.0 million[213] Market and Future Plans - The total addressable market for the company's technology is estimated to be approximately $450 billion[170] - The company plans to manufacture AirJoule systems capable of producing over 250 liters of water per day by 2025, with commercial sales expected to scale in 2026[169] - The company expects to leverage strategic partnerships to accelerate market penetration and scale manufacturing capabilities[172] Regulatory and Compliance - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay compliance with new accounting standards until certain conditions are met[218] - The company will remain an emerging growth company until it meets specific revenue or securities thresholds, including total annual gross revenue of at least $1.235 billion[220] Other Financial Information - The company recognized a gain of $333.5 million on the contribution to AirJoule, LLC during the nine months ended September 30, 2024[191] - The company entered into a patent license agreement in October 2021, resulting in a reversal of $0.5 million in accrued royalties expense during Q3 2025[211]