(Exact name of registrant as specified in its charter) Delaware 001-40444 86-1740840 (State or other jurisdiction CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) August 13, 2025 WASHINGTON, D.C. 20549 ____________________ flyExclusive, Inc. FORM 8-K (Commission File Number) (IRS Employer Identification No.) 2860 Jetport Road, Kinston, NC 28504 (Address of principal executiv ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ____________________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) August 13, 2025 flyExclusive, Inc. (Address of principal executive offices) (Zip Code) 252-208-7715 Registrant's telephone number, including area code Not Applicable (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8- ...

[Q2 2025 Financial Results and Operational Highlights](index=1&type=section&id=Q2%202025%20Financial%20Results%20and%20Operational%20Highlights) Aqua Metals made significant operational, financial, and strategic advancements in Q2 2025, progressing AquaRefining™ technology and strengthening its market position [Second Quarter and Recent Highlights](index=2&type=section&id=Second%20Quarter%20and%20Recent%20Highlights) Aqua Metals achieved significant operational, financial, and strategic progress in the second quarter, advancing its AquaRefining™ technology commercialization [Operational Initiatives](index=2&type=section&id=Operational%20Initiatives) Aqua Metals achieved significant operational milestones, including producing industry-leading low-fluorine lithium carbonate and over 1 metric ton of high-purity NMC mixed hydroxide cake - Produced Industry-Leading Low-Fluorine Lithium Carbonate: Reduced fluorine content to **less than 30 parts per million (ppm)**, meeting stringent specifications of cathode active material (CAM) producers, with approximately **100 kilograms produced** and sampled by strategic counterparties[7](index=7&type=chunk) - High-Purity NMC Cake Production: Produced over **1 metric ton** of nickel-manganese-cobalt (NMC) mixed hydroxide cake for qualification sampling with potential partners[7](index=7&type=chunk) - Expanded Alternative Feedstock Testing: Successfully tested undersea mining nodules and nickel refinery residue as additional potential feedstocks[7](index=7&type=chunk) - Initiated Sodium Sulfate Regeneration Trials: Began testing an innovative sodium sulfate regeneration process to support precursor cathode active material (pCAM) producers[7](index=7&type=chunk) - Advanced ARC Facility Design: Started design of a scalable AquaRefining™ Commercial (ARC) facility capable of processing **10,000 to 60,000 metric tons per year** of black mass[7](index=7&type=chunk) - Demonstrated Cost Competitiveness: An internal study showed AquaRefining™ in the U.S. is cost competitive with Chinese hydrometallurgical recycling and operates at approximately **half the cost** of traditional U.S. hydrometallurgical methods[7](index=7&type=chunk) [Financial Initiatives](index=2&type=section&id=Financial%20Initiatives) The company significantly improved its financial health by generating $4.3 million from asset sales, implementing an equity line of credit, and eliminating all long-term debt - Generated Cash from Non-Core Asset Sales: Completed the **$4.3 million** sale of the Sierra ARC facility and sold **$200,000** in non-core equipment[7](index=7&type=chunk) - Strengthened Balance Sheet: Eliminated all long-term debt[7](index=7&type=chunk) - Improved Liquidity: Cash and cash equivalents increased from **$1.6 million** at the start of the quarter to over **$1.9 million** at quarter-end[7](index=7&type=chunk) - Extended Cash Runway: Gains driven by the building sale, implementation of the **$10 million** equity line of credit (ELOC), and reduced cash burn following the sale[7](index=7&type=chunk) [Milestone Announcements](index=2&type=section&id=Milestone%20Announcements) Key milestones included showcasing AquaRefining™ technology to over 100 stakeholders, receiving a foundational U.S. patent, and completing a CFO transition - Showcased Technology to Industry Leaders: Hosted over **100 stakeholders** for live demonstrations at the Company's Innovation Center and Demonstration Plant during NAATBatt's annual meeting[7](index=7&type=chunk) - Strengthened Intellectual Property: Received allowance for a foundational U.S. patent protecting the Company's lithium-ion battery recycling process[7](index=7&type=chunk) - Enhanced Leadership Team: Completed CFO transition with the appointment of Eric West, formerly VP Finance[7](index=7&type=chunk) [Strategic Engagements](index=2&type=section&id=Strategic%20Engagements) Aqua Metals continues discussions with potential strategic partners, emphasizing collaboration to build domestic battery recycling and CAM production capacity in the U.S - Strategic Engagements: Aqua Metals continues discussions with potential strategic partners[5](index=5&type=chunk) - Collaboration Importance: The Company believes collaboration among industry participants is critical as the U.S. builds domestic battery recycling and CAM production capacity[5](index=5&type=chunk) - Market Positioning: Achievements position Aqua Metals not just to participate in the emerging U.S. market, but to help define it[8](index=8&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides essential corporate details, including investor communication channels, company profile, disclosure practices, and contact information [Conference Call and Webcast](index=4&type=section&id=Conference%20Call%20and%20Webcast) Aqua Metals held a conference call on August 13, 2025, at 4:30 p.m. ET to discuss Q2 2025 results and corporate developments - Conference Call: Held on **August 13, 2025, at 4:30 p.m. ET** to discuss results and corporate developments[9](index=9&type=chunk) - Access: Live conference call accessible via webcast (https://event.webcasts.com/aqms) or investor relations website (https://ir.aquametals.com/), or by dialing **877-407-9708** (toll-free) or **201-689-8259** (international)[9](index=9&type=chunk) - Replay: Available by dialing **877-407-9708** (toll-free) or **201-689-8259** (international) using passcode **13754150**, and on the investor relations section of the Aqua Metals website[10](index=10&type=chunk) [About Aqua Metals](index=4&type=section&id=About%20Aqua%20Metals) Aqua Metals, Inc. (NASDAQ: AQMS) is a Nevada-based pioneer in sustainable metals recycling, utilizing its patented AquaRefining™ technology - Company Overview: Aqua Metals, Inc. (NASDAQ: AQMS) is a pioneer in sustainable metals recycling with its patented AquaRefining™ technology[11](index=11&type=chunk) - Focus: Commercializing sustainable, non-polluting lithium-ion battery recycling[11](index=11&type=chunk) - Mission: Closes the loop on critical minerals for clean energy technologies[11](index=11&type=chunk) - Location: Based in Reno, Nevada, with facilities in the Tahoe-Reno Industrial Center[11](index=11&type=chunk) [Aqua Metals Social Media](index=4&type=section&id=Aqua%20Metals%20Social%20Media) Aqua Metals uses its investor relations website and various social media platforms as official channels for disclosing material non-public information - Disclosure Channels: Utilizes its investor relations website (https://ir.aquametals.com) and social media accounts (Twitter, Threads, LinkedIn, YouTube) for disclosing material non-public information[12](index=12&type=chunk) - Compliance: Intends to continue using these platforms for complying with its disclosure obligations under Regulation FD[12](index=12&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor) This section contains forward-looking statements regarding Aqua Metals' plans, objectives, expectations, and intentions, cautioning readers about known and unknown risks - Forward-Looking Statements: The press release contains forward-looking statements concerning Aqua Metals, Inc.'s plans, objectives, expectations, and intentions[13](index=13&type=chunk) - Key Areas: Includes ability to commercialize profitable metal recycling, intent to develop ARC facility, ability to enter successful collaborations, and ability to maintain Nasdaq listing[13](index=13&type=chunk) - Risks and Uncertainties: Involve known and unknown risks that could cause actual results to differ materially, such as lack of commercial-scale operation, absence of definitive agreements, funding risks for ARC facility, and risks to Nasdaq listing[13](index=13&type=chunk) - Disclaimer: Aqua Metals cautions readers not to place undue reliance on forward-looking statements and disclaims any obligation to update or revise such statements, except as required by law[13](index=13&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Provides contact details for investor relations, handled by FNK IR, and media inquiries, handled directly by Aqua Metals - Investor Relations Contact: - Bob Meyers & Rob Fink (FNK IR) - Phone: **646-878-9204** - Email: aqms@fnkir.com[14](index=14&type=chunk) - Media Contact: - David Regan (Aqua Metals) - Phone: **415-336-3553** - Email: david.regan@aquametals.com[14](index=14&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Aqua Metals' condensed consolidated balance sheets and statements of operations for the second quarter and year-to-date periods of 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Aqua Metals reported a significant decrease in total assets and liabilities, primarily due to asset sales and debt elimination Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change (vs. Dec 31, 2024) | | :-------------------------------- | :-------------- | :---------------- | :------------------------ | | Cash and cash equivalents | $1,933 | $4,079 | -$2,146 | | Total current assets | $2,369 | $4,644 | -$2,275 | | Property and equipment, net | $4,984 | $16,473 | -$11,489 | | Total non-current assets | $6,875 | $21,721 | -$14,846 | | **Total assets** | **$9,244** | **$26,365** | **-$17,121** | | Total current liabilities | $3,633 | $8,182 | -$4,549 | | Notes payable, current portion | $— | $3,230 | -$3,230 | | **Total liabilities** | **$4,126** | **$10,121** | **-$5,995** | | Total stockholders' equity | $5,118 | $16,244 | -$11,126 | | Accumulated deficit | $(262,855) | $(247,770) | $(15,085) | - Significant decrease in total assets from **$26,365 thousand** to **$9,244 thousand**, primarily driven by a reduction in property and equipment, net, and other non-current assets[16](index=16&type=chunk) - Total liabilities decreased substantially from **$10,121 thousand** to **$4,126 thousand**, reflecting the elimination of notes payable[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Aqua Metals reported an increased net loss of $(6,770) thousand, primarily due to impairment and loss on disposal of property, plant and equipment Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Plant operations | $776 | $2,373 | $1,501 | $4,582 | | Research and development cost | $295 | $363 | $631 | $951 | | Impairment and loss on disposal of PP&E | $3,765 | $— | $9,012 | $— | | General and administrative expense | $2,195 | $3,426 | $4,571 | $6,421 | | **Total operating expense** | **$7,031** | **$6,162** | **$15,715** | **$11,954** | | Loss from operations | $(7,031) | $(6,162) | $(15,715) | $(11,954) | | Interest expense | $(245) | $(84) | $(647) | $(190) | | Loss on extinguishment of debt | $(825) | $— | $(825) | $— | | Interest and other income | $497 | $99 | $777 | $245 | | Change in fair value of warrant liability | $836 | $— | $1,327 | $— | | Total other income, net | $263 | $15 | $632 | $55 | | Loss before income tax expense | $(6,768) | $(6,147) | $(15,083) | $(11,899) | | Income tax expense | $2 | $3 | $2 | $3 | | **Net loss** | **$(6,770)** | **$(6,150)** | **$(15,085)** | **$(11,902)** | | Weighted average shares outstanding | 910,129 | 618,965 | 860,146 | 584,619 | | **Basic and diluted net loss per share** | **$(7.44)** | **$(9.94)** | **$(17.54)** | **$(20.36)** | - Q2 2025 Net Loss: **$(6,770) thousand**, an increase from **$(6,150) thousand** in Q2 2024[18](index=18&type=chunk) - Q2 2025 Basic and Diluted Net Loss Per Share: **$(7.44)**, an improvement from **$(9.94)** in Q2 2024, despite a higher net loss, due to increased weighted average shares outstanding[18](index=18&type=chunk) - Total Operating Expense (Q2 2025): Increased to **$7,031 thousand** from **$6,162 thousand** in Q2 2024, primarily due to **$3,765 thousand** in impairment and loss on disposal of property, plant and equipment[18](index=18&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ 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 001-41347 EXPION360 INC. (Exact name of registrant as specified in its charter) Nevada (state or other jurisdiction of incorporation or organization) 81-2701049 (IRS ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of August 2025 Commission File Number: 001-38353 PagSeguro Digital Ltd. (Name of Registrant) Conyers Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands (Address of Principal Executive Office) Indicate by check mark whether the registrant fil ...

Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission file number: 001-37515 Aqua Metals, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpor ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements for Q2 2025 reveal decreased revenue, a net loss, and reduced assets, with negative operating cash flow [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $51.8 million by June 30, 2025, driven by reduced cash and a significant drop in shareholders' equity Key Balance Sheet Items (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $14,255 | $23,647 | | **Total current assets** | $25,575 | $34,852 | | **Total assets** | $51,804 | $64,072 | | **Total current liabilities** | $9,141 | $8,346 | | **Total liabilities** | $23,453 | $24,194 | | **Total shareholders' equity** | $432 | $12,482 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue slightly decreased, while the net loss narrowed; H1 2025 saw a significant revenue drop but a slightly improved net loss Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue, net** | $8,250 | $8,535 | $15,344 | $24,589 | | **Gross profit** | $3,779 | $4,326 | $7,231 | $12,440 | | **Loss from operations** | $(7,301) | $(10,742) | $(15,397) | $(16,235) | | **Net loss attributable to Pixelworks, Inc.** | $(6,707) | $(10,149) | $(14,468) | $(15,215) | | **Net loss per share - basic and diluted** | $(1.27) | $(2.09) | $(2.80) | $(3.16) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw increased cash used in operations ($11.3 million), partially offset by investing and financing activities, leading to a $9.4 million cash decrease Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(11,268) | $(6,392) | | **Net cash provided by (used in) investing activities** | $514 | $(2,866) | | **Net cash provided by (used in) financing activities** | $1,362 | $(462) | | **Net decrease in cash and cash equivalents** | $(9,392) | $(9,720) | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business operations, accounting policies, PWSH strategic review, restructuring, revenue decline in Mobile, and redemption obligations - The company initiated a formal review for its Pixelworks Shanghai (PWSH) subsidiary, receiving non-binding term sheets from three potential buyers, with a strategic direction expected by **end of Q3 2025**[32](index=32&type=chunk) - Restructuring plans in May and February 2025 led to workforce reductions of approximately **4% and 6%**, primarily in R&D and operations[50](index=50&type=chunk)[51](index=51&type=chunk) IC Sales by End Market for Six Months Ended June 30 (in thousands) | End Market | 2025 | 2024 | | :--- | :--- | :--- | | **Home & Enterprise** | $12,732 | $12,577 | | **Mobile** | $2,359 | $11,226 | - An investor requested PWSH share redemption; if a sale or extension is not achieved, the company may be required to repurchase shares, materially impacting its **cash position**[90](index=90&type=chunk)[94](index=94&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 38% H1 2025 revenue decrease, driven by a Mobile market decline, reduced gross margin, and lower operating expenses, with a PWSH strategic review ongoing [Results of Operations](index=30&type=section&id=Results%20of%20Operations) H1 2025 revenue fell 38% due to a 78% drop in Mobile sales, gross margin declined, and operating expenses decreased due to cost-cutting Revenue Change | Period | 2025 Revenue | 2024 Revenue | % Change | | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | $8,250 | $8,535 | (3)% | | **Six Months Ended June 30** | $15,344 | $24,589 | (38)% | - Revenue decrease primarily driven by a **78% drop in Mobile market sales** in H1 2025, due to delayed product transition[118](index=118&type=chunk) Gross Profit Margin | Period | 2025 Gross Margin | 2024 Gross Margin | | :--- | :--- | :--- | | **Three Months Ended June 30** | 46% | 51% | | **Six Months Ended June 30** | 47% | 51% | - Operating expenses significantly decreased in H1 2025, with **R&D down 22%** and **SG&A down 19%**, reflecting headcount reductions and cost controls[124](index=124&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents decreased by $9.3 million to $14.3 million, despite capital raises, though management expects sufficient working capital for the next twelve months - Total cash and cash equivalents decreased by **$9.3 million** to **$14.3 million** by June 30, 2025[133](index=133&type=chunk) - Capital was raised through an ATM program (net proceeds **$0.5 million**) and a registered direct offering (net proceeds **$1.3 million**) in H1 2025[138](index=138&type=chunk)[139](index=139&type=chunk) - Management anticipates existing working capital will be **adequate for at least the next twelve months**[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company has indicated that this item is not applicable for this reporting period - Not applicable[148](index=148&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were **effective as of June 30, 2025**[149](index=149&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[150](index=150&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is engaged in legal proceedings from time to time in the ordinary course of business, but none are currently considered to have a material impact on its financial position or results of operations - No legal proceedings are expected to have a **material impact** on financial condition or operations[153](index=153&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Key risks include potential PWSH share repurchase obligations, China operations uncertainties, customer concentration, intense competition, and Nasdaq delisting risk - Significant risk of being required to repurchase PWSH shares, materially impacting the **company's cash position**, if a transaction is not closed or rights are not waived[237](index=237&type=chunk) - Substantial risks arise from concentrated operations and customers in China, including political, economic, and legal uncertainties, and U.S.-China relations[232](index=232&type=chunk)[234](index=234&type=chunk) - Dependence on a limited number of customers and distributors, with the **top five end customers accounting for 94% of H1 2025 revenue**[167](index=167&type=chunk) - Risk of non-compliance with Nasdaq Listing Rules and potential delisting, despite a **one-for-twelve reverse stock split** on June 6, 2025, to meet minimum bid price[250](index=250&type=chunk)[252](index=252&type=chunk) [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) Shareholders approved a stock incentive plan amendment, and the CEO entered a bonus agreement tied to the PWSH subsidiary sale proceeds - A Transaction Bonus Agreement with CEO Todd A. DeBonis links a cash bonus to the successful sale of the **PWSH subsidiary by December 31, 2025**[257](index=257&type=chunk) - The bonus is contingent on net cash proceeds between **$40 million and $70 million** from the PWSH transaction, with a **maximum bonus of $600,000**[257](index=257&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to articles of incorporation, bylaws, stock purchase agreements, the amended stock incentive plan, the CEO's transaction bonus agreement, and required certifications

PART I-FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Epsilon Energy reported significant financial growth for the six months ended June 30, 2025, with total revenues rising 82% to $27.8 million and net income increasing 140% to $5.6 million [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $123.6 million, with shareholders' equity rising to $100.2 million from $96.7 million at year-end 2024 Consolidated Balance Sheet Highlights (in thousands USD) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $9,907.7 | $6,519.8 | | Total current assets | $16,533.3 | $14,131.5 | | Total property and equipment, net | $106,037.5 | $104,526.0 | | **Total assets** | **$123,613.7** | **$120,454.8** | | **Liabilities & Equity** | | | | Total current liabilities | $7,403.4 | $6,980.0 | | Total liabilities | $23,423.4 | $23,726.7 | | Total shareholders' equity | $100,190.3 | $96,728.1 | | **Total liabilities and shareholders' equity** | **$123,613.7** | **$120,454.8** | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For Q2 2025, revenue increased 59% to $11.6 million and net income nearly doubled to $1.6 million, while six-month revenue surged 82% to $27.8 million and net income jumped 140% to $5.6 million Statement of Operations Summary (in thousands USD) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $11,624.7 | $7,307.8 | $27,787.9 | $15,294.6 | | Operating Income | $828.8 | $1,167.8 | $7,996.6 | $2,572.5 | | Net Income | $1,551.5 | $815.7 | $5,567.5 | $2,322.6 | | Diluted EPS | $0.07 | $0.04 | $0.25 | $0.11 | - A notable event in Q2 2025 was a **$2.7 million impairment expense**, which impacted operating income for the quarter, however, a **$2.6 million gain on derivative contracts** offset this, contributing to strong net income[19](index=19&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash from operating activities increased 87% to $16.9 million, while cash used in investing and financing activities totaled $10.7 million and $2.8 million respectively Cash Flow Summary (Six Months Ended June 30, in thousands USD) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $16,930.8 | $9,075.5 | | Net cash used in investing activities | ($10,665.9) | ($9,544.2) | | Net cash used in financing activities | ($2,751.4) | ($3,946.1) | | **Increase (Decrease) in cash** | **$3,387.9** | **($4,392.1)** | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, a **$2.7 million** impairment, the undrawn **$45 million** credit facility, shareholder equity activities, and the subsequent acquisition of Peak Exploration and Production LLC - During Q2 2025, Epsilon recorded a **$2.7 million impairment charge** for two wells in Alberta, Canada, due to lower than expected production, cost overruns, and lower forward commodity prices[45](index=45&type=chunk) - The company maintains a senior secured revolving credit facility with a borrowing base of **$45 million**, which remained undrawn as of June 30, 2025[47](index=47&type=chunk)[50](index=50&type=chunk) - The Board declared quarterly dividends of **$0.0625 per share**, totaling approximately **$2.8 million** paid during the first six months of 2025[62](index=62&type=chunk) - Subsequent to the quarter end, on August 11, 2025, Epsilon signed a definitive agreement to acquire Peak Exploration and Production LLC, with consideration including **6 million Epsilon common shares** and the assumption of approximately **$49 million in debt**[119](index=119&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes the 82% revenue growth to increased natural gas revenue, with Adjusted EBITDA more than doubling to **$18.0 million**, supported by strong liquidity and disciplined capital allocation - The company's business strategy is focused on disciplined capital allocation, shareholder returns (dividends and buybacks), and maintaining a strong balance sheet to fund investments in existing areas (Marcellus) and new projects (Permian, Canada)[125](index=125&type=chunk)[126](index=126&type=chunk) Adjusted EBITDA Reconciliation (in thousands USD) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net Income | $5,567.5 | $2,322.6 | | Adjustments | $12,437.5 | $6,176.0 | | **Adjusted EBITDA** | **$18,005.0** | **$8,498.6** | - For the six months ended June 30, 2025, revenues increased **82%** to **$27.8 million**, primarily due to a **$12.6 million (256%)** increase in upstream natural gas revenue from higher prices and volumes[140](index=140&type=chunk)[141](index=141&type=chunk) - The company's liquidity is strong, with a working capital surplus of **$9.1 million** as of June 30, 2025, and an undrawn **$45 million** revolving credit facility[164](index=164&type=chunk)[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces significant commodity price risk for natural gas and oil, which it mitigates using derivative contracts, and also has exposure to interest rate risk - The company's primary market risk is the fluctuation in commodity prices for natural gas and oil[178](index=178&type=chunk) - Epsilon utilizes a hedging strategy with derivative financial instruments to manage commodity price risk and stabilize cash flows[182](index=182&type=chunk) [Controls and Procedures](index=34&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[183](index=183&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[184](index=184&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=35&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reported no legal proceedings during the period - None[187](index=187&type=chunk) [Risk Factors](index=35&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[188](index=188&type=chunk) [Unregistered Sale of Equity Securities and Use of Proceeds](index=35&type=section&id=ITEM%202.%20UNREGISTERED%20SALE%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company did not repurchase any of its equity securities during the six months ended June 30, 2025 - For the six months ended June 30, 2025, no shares were repurchased[190](index=190&type=chunk) [Defaults Upon Senior Securities](index=35&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) Not applicable [Mine Safety Disclosures](index=35&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Not applicable [Other Information](index=35&type=section&id=ITEM%205.%20OTHER%20INFORMATION) Not applicable [Exhibits](index=36&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the report, including Sarbanes-Oxley certifications and Inline XBRL data files

[Part I - Financial Information](index=4&type=section&id=PART%20I-FINANCIAL%20INFORMATION) [Condensed Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Unaudited%20Financial%20Statements) The company reported total assets of **$6.0 million** and total liabilities of **$1.8 million** as of June 30, 2025, incurring a net loss of **$10.5 million** and using **$7.9 million** in operating cash flow, raising substantial doubt about its going concern ability Condensed Balance Sheet Data (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $3,256 | $2,377 | | Total Current Assets | $5,361 | $2,770 | | **Total Assets** | **$5,981** | **$3,276** | | Total Current Liabilities | $1,799 | $1,622 | | **Total Liabilities** | **$1,799** | **$1,622** | | **Total Stockholders' Equity** | **$4,182** | **$1,654** | Condensed Statement of Operations Data (in thousands, except per share data) | | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Research and development | $6,818 | $5,272 | | General and administrative | $3,720 | $4,602 | | Loss from operations | $(10,538) | $(9,874) | | **Net Loss** | **$(10,458)** | **$(9,562)** | | Net loss per share, basic and diluted | $(0.32) | $(0.36) | Condensed Statement of Cash Flows Data (in thousands) | | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(7,922) | $(7,013) | | Net cash used in investing activities | $(1,899) | $(98) | | Net cash provided by financing activities | $10,700 | $84 | | **Net increase (decrease) in cash** | **$879** | **$(7,027)** | - The company has incurred losses and negative cash flows from operations each year since inception. As of June 30, 2025, cash, equivalents, and short-term investments were approximately **$5.1 million**[29](index=29&type=chunk) - Management believes existing liquidity is insufficient to fund operations for the next twelve months, which raises substantial doubt about the company's ability to continue as a going concern[30](index=30&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) HeartBeam, a pre-commercial medical technology company, received FDA clearance for its HeartBeam System and filed for 12L ECG synthesis software, but faces going concern doubts due to recurring losses and insufficient liquidity - The HeartBeam System received FDA clearance on December 13, 2024. A subsequent 510(k) application for software to synthesize a 12L ECG was filed in January 2025[60](index=60&type=chunk)[61](index=61&type=chunk) - The VALID-ECG pivotal study successfully met its clinical endpoints, showing a **93.4%** overall diagnostic agreement between HeartBeam's synthesized 12L ECG and a standard 12L ECG for arrhythmia assessment[63](index=63&type=chunk) - In April 2025, HeartBeam announced a strategic collaboration with AccurKardia to integrate its FDA-cleared automated ECG interpretation platform, aiming to expedite product development and reduce costs[66](index=66&type=chunk)[77](index=77&type=chunk) - The company has an At-the-Market (ATM) sales agreement to sell up to **$17.0 million** in common stock. As of the report date, approximately **$15.6 million** remained available for issuance under this agreement[31](index=31&type=chunk)[76](index=76&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Total operating expenses increased by **7%** to **$10.5 million** for the six months ended June 30, 2025, driven by a **29%** rise in R&D expenses, partially offset by a **19%** decrease in G&A costs Comparison of Operating Expenses (in thousands) | Expense Category | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | General and administrative | $3,720 | $4,602 | $(882) | (19)% | | Research and development | $6,818 | $5,272 | $1,546 | 29% | | **Total operating expenses** | **$10,538** | **$9,874** | **$664** | **7%** | - The decrease in G&A expenses for the six months ended June 30, 2025, was primarily due to a **$0.8 million** reduction in non-cash stock-based compensation and a **$0.2 million** decrease in consultant costs[81](index=81&type=chunk) - The increase in R&D expenses for the six months ended June 30, 2025, was mainly driven by a **$1.0 million** increase in product development, a **$1.1 million** increase in headcount costs, and a **$0.8 million** increase in stock-based compensation[83](index=83&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company's **$5.1 million** in cash and investments are insufficient for future operations, necessitating additional capital to address going concern doubts - The company's existing cash and short-term investments of approximately **$5.1 million** as of June 30, 2025, are insufficient to fund operations for the next twelve months, raising substantial doubt about its ability to continue as a going concern[86](index=86&type=chunk) - Continued operations depend on raising additional capital, as the company expects no material commercial revenue in 2025[87](index=87&type=chunk) Cash Flow Summary (in thousands) | | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(7,922) | $(7,013) | | Net cash used in investing activities | $(1,899) | $(98) | | Net cash provided by financing activities | $10,700 | $84 | - In February 2025, the company raised approximately **$10.3 million** in net proceeds from a public offering of common stock[45](index=45&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company does not hold derivative financial instruments nor engage in hedging activities - The company does not hold derivative instruments or engage in hedging activities[95](index=95&type=chunk) [Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[97](index=97&type=chunk) - No material changes to internal control over financial reporting were identified during the fiscal quarter ended June 30, 2025[99](index=99&type=chunk) [Part II - Other Information](index=22&type=section&id=PART%20II-OTHER%20INFORMATION) [Legal Proceedings](index=22&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any pending or threatened legal proceedings that could materially adversely affect its business or financial condition - There are no pending or threatened legal actions against the company that could have a material adverse effect[101](index=101&type=chunk) [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) This section is not applicable as HeartBeam, Inc. is classified as a smaller reporting company - Not applicable as the company is a smaller reporting company[102](index=102&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=22&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity securities were sold during the period covered by this report - No equity securities were sold during the period that were not registered under the Securities Act[103](index=103&type=chunk) [Exhibits](index=23&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including corporate governance documents, equity incentive plan amendments, and CEO/CFO certifications - Filed exhibits include the Third Amendment to the 2022 Equity Incentive Plan and Sarbanes-Oxley Act certifications from the CEO and CFO[109](index=109&type=chunk)

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20--%20FINANCIAL%20INFORMATION) This section presents Interlink Electronics, Inc.'s unaudited condensed consolidated financial statements and detailed notes on accounting policies, financial components, and related disclosures [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) Presents Interlink Electronics, Inc.'s unaudited condensed consolidated financial statements and comprehensive notes for the reporting period [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific dates Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total assets | $12,510 | $13,116 | | Total liabilities | $2,471 | $2,623 | | Total stockholders' equity | $10,039 | $10,493 | - Total assets **decreased by $606,000** from December 31, 2024, to June 30, 2025, primarily due to a decrease in cash and cash equivalents and inventories[9](index=9&type=chunk) - Total liabilities **decreased by $152,000**, while total stockholders' equity **decreased by $454,000** over the same period[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Presents the company's revenues, expenses, and net income or loss over specific reporting periods Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Revenue | $3,414 | $2,898 | $6,078 | $6,022 | | Gross profit | $1,538 | $1,305 | $2,487 | $2,558 | | Income (loss) from operations | $66 | $(313) | $(783) | $(1,064) | | Net income (loss) | $100 | $(307) | $(705) | $(1,048) | | Earnings (loss) per common share – basic and diluted | $0.00 | $(0.04) | $(0.09) | $(0.13) | - For the three months ended June 30, 2025, revenue **increased by 17.8%** year-over-year, leading to a net income of **$100,000** compared to a net loss of $307,000 in the prior year[11](index=11&type=chunk) - For the six months ended June 30, 2025, revenue saw a slight increase of **0.9%** year-over-year, but the company reported a net loss of **$705,000**, an improvement from the $1,048,000 net loss in the same period last year[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Details net income or loss and other comprehensive income items, such as foreign currency translation adjustments Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Net income (loss) | $100 | $(307) | $(705) | $(1,048) | | Foreign currency translation adjustments | $267 | $(9) | $437 | $(116) | | Comprehensive income (loss) | $367 | $(316) | $(268) | $(1,164) | - Comprehensive income for the three months ended June 30, 2025, was **$367,000**, a significant improvement from a loss of $316,000 in the prior year, largely driven by positive foreign currency translation adjustments[14](index=14&type=chunk) - For the six months ended June 30, 2025, comprehensive loss **decreased to $268,000** from $1,164,000 in the prior year, also benefiting from favorable foreign currency translation[14](index=14&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in equity components, including net income, dividends, and other comprehensive income Condensed Consolidated Statements of Stockholders' Equity (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Stockholders' Equity | $10,039 | $10,493 | | Accumulated Deficit | $(52,752) | $(51,847) | | Accumulated Other Comprehensive Income | $452 | $15 | - Total stockholders' equity **decreased from $10,493,000** at December 31, 2024, to **$10,039,000** at June 30, 2025, primarily due to net loss and preferred stock dividends, partially offset by foreign currency translation adjustments[17](index=17&type=chunk) - Accumulated other comprehensive income significantly **increased from $15,000 to $452,000**, driven by foreign currency translation adjustments[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash (used in) operating activities | $(409) | $(76) | | Net cash (used in) investing activities | $(34) | $(20) | | Net cash (used in) financing activities | $(200) | $(200) | | Net (decrease) in cash and cash equivalents | $(621) | $(344) | | Cash and cash equivalents, end of period | $2,329 | $3,960 | - Net cash used in operating activities **increased to $409,000** for the six months ended June 30, 2025, compared to $76,000 in the prior year, primarily due to changes in operating assets and liabilities[19](index=19&type=chunk)[129](index=129&type=chunk) - Cash and cash equivalents **decreased by $621,000** during the six months ended June 30, 2025, resulting in an ending balance of **$2,329,000**[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1 – The Company and its Significant Accounting Policies](index=9&type=section&id=Note%201%20%E2%80%93%20The%20Company%20and%20its%20Significant%20Accounting%20Policies) Describes Interlink Electronics, Inc.'s business, global operations, and significant accounting policies, including revenue recognition and R&D costs - Interlink Electronics, Inc. specializes in sensors and printed electronics for Human-Machine Interface (HMI) and Internet-of-Things (IoT) solutions, serving medical, industrial, automotive, wearables, and other specialty markets globally[20](index=20&type=chunk) - The company's revenue recognition policy follows ASC 606, distinguishing between revenue recognized at a point in time (primarily product sales) and over time (engineering services)[27](index=27&type=chunk)[31](index=31&type=chunk) Revenue by Type (in thousands) | Revenue Type | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------- | :-------------------------------------------- | :-------------------------------------------- | :------------------------------------------ | :------------------------------------------ | | Point in time | $3,078 | $2,701 | $5,581 | $5,657 | | Over time | $336 | $197 | $497 | $365 | | Total revenue | $3,414 | $2,898 | $6,078 | $6,022 | - R&D costs are expensed as incurred, and stock-based compensation is recognized on a straight-line basis over the service period[33](index=33&type=chunk)[36](index=36&type=chunk) [Note 2 – Details of Certain Financial Statement Components](index=16&type=section&id=Note%202%20%E2%80%93%20Details%20of%20Certain%20Financial%20Statement%20Components) This note provides a breakdown of key financial statement components, including inventories, property, plant and equipment, intangible assets, goodwill, and accrued liabilities, detailing their values and changes between December 31, 2024, and June 30, 2025 Inventories (in thousands) | Inventories (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------- | :------------ | :---------------- | | Raw materials | $1,232 | $1,608 | | Work-in-process | $198 | $179 | | Finished goods | $221 | $222 | | Total inventories | $1,651 | $2,009 | - Total inventories **decreased by $358,000** from December 31, 2024, to June 30, 2025, primarily due to a reduction in raw materials[53](index=53&type=chunk) Intangible Assets, Net (in thousands) | Intangible Assets, Net (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Patents, tradenames, and trademarks | $951 | $931 | | Developed technology | $663 | $536 | | Customer relationships | $1,549 | $1,427 | | Non-compete agreements | $998 | $916 | | Order backlog | $0 | $22 | | In-process research and development | $0 | $29 | | Total intangible assets, net | $1,723 | $1,874 | - Goodwill **decreased from $2,658,000** at January 1, 2025, to **$2,626,000** at June 30, 2025, due to an acquisition price allocation adjustment for Conductive Transfers and foreign currency exchange rate changes[56](index=56&type=chunk) [Note 3 – Acquisition of Conductive Transfers](index=18&type=section&id=Note%203%20%E2%80%93%20Acquisition%20of%20Conductive%20Transfers) Interlink Electronics acquired Conductive Transfers Limited and its affiliate Global Print Solutions Limited on December 20, 2024, for GB£250,000 (approximately $314,000) in cash. This acquisition enhances Interlink's capabilities in wearables, smart textiles, conductive ink, and printed electronics - Acquired Conductive Transfers Limited and Global Print Solutions Limited on December 20, 2024, for approximately **$314,000**[58](index=58&type=chunk) - The acquisition expands Interlink's offerings in wearables, smart textiles, conductive ink, and printed electronics[58](index=58&type=chunk) Acquired Assets (in thousands) | Acquired Assets (in thousands) | Fair Value | | :-------------------------- | :--------- | | Inventories | $21 | | Property and equipment | $238 | | Net identifiable tangible assets acquired | $259 | | Developed technology | $55 | | Net assets acquired | $314 | [Note 4 – Earnings Per Share](index=18&type=section&id=Note%204%20%E2%80%93%20Earnings%20Per%20Share) This note details the computation of basic and diluted earnings per share, highlighting that preferred stock and restricted stock units were excluded from diluted EPS calculations due to their anti-dilutive effect Earnings Per Share Data (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) applicable to common stockholders (in thousands) | $0 | $(407) | $(905) | $(1,248) | | Weighted average common shares outstanding – basic and diluted (in thousands) | 9,864 | 9,860 | 9,864 | 9,860 | | Earnings (loss) per common share, basic and diluted | $0.00 | $(0.04) | $(0.09) | $(0.13) | - **200,000 shares** of Series A Convertible Preferred Stock (convertible into 600,000 common shares) and **31,250 restricted stock units** were excluded from diluted EPS calculations for all periods due to their anti-dilutive effect[63](index=63&type=chunk) [Note 5 – Restricted Stock Units](index=19&type=section&id=Note%205%20%E2%80%93%20Restricted%20Stock%20Units) The company recognized $7,000 and $14,000 in stock-based compensation expense for restricted stock units during the three and six months ended June 30, 2025, respectively. As of June 30, 2025, there was $102,000 of unrecognized compensation cost related to 31,250 nonvested restricted stock units, expected to be recognized over 3.6 years Stock-Based Compensation Expense (in thousands) | Metric | Three Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :------------------------------------------ | | Stock-based compensation expense | $7 | $14 | - As of June 30, 2025, **31,250 nonvested restricted stock units** remained outstanding with a weighted average grant-date fair value of **$4.35 per share**[64](index=64&type=chunk) - Unrecognized compensation cost for nonvested restricted stock units totaled approximately **$102,000**, with an expected recognition period of **3.6 years**[64](index=64&type=chunk) [Note 6 – Significant Customers, Concentrations of Credit Risk, and Geographic Information](index=20&type=section&id=Note%206%20%E2%80%93%20Significant%20Customers%2C%20Concentrations%20of%20Credit%20Risk%2C%20and%20Geographic%20Information) Interlink operates as a single segment and reports revenue concentrations from key customers and geographic regions. Customer A and B represented significant portions of revenue, while the United States, Asia, and Europe were the primary geographic markets. The company monitors credit risk and maintains an allowance for credit losses Revenue Concentration by Customer (% of total revenues) | Customer | Three Months Ended June 30, 2025 (% of total revenues) | Three Months Ended June 30, 2024 (% of total revenues) | Six Months Ended June 30, 2025 (% of total revenues) | Six Months Ended June 30, 2024 (% of total revenues) | | :--------- | :--------------------------------------------------- | :--------------------------------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Customer A | 17% | 16% | 19% | 15% | | Customer B | 13% | 24% | 10% | 20% | Revenue by Geographic Area (in thousands) | Geographic Area (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $1,728 | $1,403 | $2,830 | $2,848 | | Asia and Middle East | $424 | $478 | $793 | $1,207 | | Europe and other | $1,262 | $1,017 | $2,455 | $1,967 | | Total Revenue | $3,414 | $2,898 | $6,078 | $6,022 | - At June 30, 2025, three customers accounted for **22%, 21%, and 10%** of total accounts receivable, with an allowance for credit losses of approximately **$46,000**[67](index=67&type=chunk) [Note 7 – Related Party Transactions](index=21&type=section&id=Note%207%20%E2%80%93%20Related%20Party%20Transactions) Interlink engages in related party transactions with Qualstar Corporation and BKF Capital Group, Inc., both controlled by Steven N. Bronson. These transactions involve mutual facilities sharing, consulting services, and expense reimbursements, with balances due to and from these entities fluctuating quarterly - Steven N. Bronson, CEO of Interlink, also controls Qualstar Corporation and BKF Capital Group, Inc., leading to related party transactions[69](index=69&type=chunk)[70](index=70&type=chunk) - Transactions include mutual facilities sharing agreements, consulting services, and expense reimbursements[69](index=69&type=chunk)[70](index=70&type=chunk) Related Party Balances (in thousands) | Related Party | Balance at June 30, 2025 (Due from, in thousands) | Balance at June 30, 2025 (Due to, in thousands) | | :-------------- | :---------------------------------------------- | :-------------------------------------------- | | Qualstar | $17 | $18 | | BKF Capital | $0 | $0 | [Note 8 – Income Taxes](index=22&type=section&id=Note%208%20%E2%80%93%20Income%20Taxes) Interlink's income tax expense and effective tax rate are influenced by the mix of domestic and foreign pre-tax earnings/losses, permanent differences, and the ability to utilize net operating loss (NOL) carryforwards. The company maintains a valuation allowance against federal, state, and certain foreign deferred tax assets due to uncertainty of recovery - Income taxes were **9.9%** of pre-tax income for Q2 2025 (vs. 3.4% of pre-tax loss in Q2 2024) and **6.4%** of pre-tax loss for H1 2025 (vs. 3.1% in H1 2024)[71](index=71&type=chunk) - The effective tax rate varies from the U.S. statutory rate of **21%** due to the mix of domestic and foreign earnings/losses and valuation allowances on domestic and certain foreign deferred tax assets[71](index=71&type=chunk)[72](index=72&type=chunk) - Of the **$2.3 million** cash at June 30, 2025, **$1.5 million** was held by foreign subsidiaries, with methods available for repatriation without significant tax effects[74](index=74&type=chunk) [Note 9 – Commitments and Contingencies](index=24&type=section&id=Note%209%20%E2%80%93%20Commitments%20and%20Contingencies) This note details the company's lease agreements for various facilities globally, outlining lease terms, payments, and related assets/liabilities. It also covers the company's policies on litigation, product warranties, intellectual property indemnities, and director/officer indemnities, noting that historically, these have not had a material negative effect on the business - Interlink leases facilities under non-cancellable operating leases expiring through 2029, with a weighted average incremental borrowing rate of **9.5%** for capitalized ROU assets and lease liabilities[75](index=75&type=chunk)[76](index=76&type=chunk) Lease Liabilities and Right-of-Use Assets (in thousands) | Lease Liabilities (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------- | :------------ | :---------------- | | Current lease liabilities | $353 | $352 | | Long-term lease liabilities | $641 | $777 | | Right-of-use assets | $931 | $1,064 | | Weighted average remaining lease term | 2.0 years | 2.2 years | - Operating lease costs for the three months ended June 30, 2025, were approximately **$136,000**, with $76,000 in cost of revenue and $60,000 in operating expenses[87](index=87&type=chunk) - The company is not party to any legal proceedings as of June 30, 2025, and historically, warranty returns and indemnification claims have not been material[89](index=89&type=chunk)[90](index=90&type=chunk)[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Interlink's financial condition and operational results, analyzing revenues, expenses, liquidity, and cash flows for the reporting periods [Overview](index=29&type=section&id=Overview) Interlink Electronics, Inc. is a global leader in HMI and IoT sensors, expanding its technology and market reach through strategic acquisitions - Interlink is a leading provider of sensors and printed electronics for HMI and IoT solutions, with products including force/touch sensors and gas/environmental sensors[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - The company serves global blue-chip customers across medical, industrial, automotive, wearables, IoT, and other specialty markets[98](index=98&type=chunk)[101](index=101&type=chunk) - Strategic acquisitions (Calman in 2023, Conductive Transfers in 2024) have expanded HMI design, manufacturing expertise, and innovative printed electronic technologies, including functional e-textiles and wearable tech[99](index=99&type=chunk)[102](index=102&type=chunk) [Critical Accounting Policies and Estimates](index=31&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company prepares its financial statements in accordance with GAAP, requiring management to make estimates and assumptions that affect reported amounts. There have been no material changes to the critical accounting policies and estimates described in the Annual Report on Form 10-K filed on March 27, 2025 - Financial statements are prepared under GAAP, involving significant management estimates and assumptions[103](index=103&type=chunk) - No material changes to critical accounting policies and estimates since the Annual Report on Form 10-K filed on March 27, 2025[104](index=104&type=chunk) [Recently Issued and Adopted Accounting Pronouncements](index=31&type=section&id=Recently%20Issued%20and%20Adopted%20Accounting%20Pronouncements) The company has reviewed all recently issued accounting pronouncements and concluded that they are either not applicable or not expected to have a material impact on its financial statements - Recently issued accounting pronouncements are not applicable or not expected to be material to the financial statements[105](index=105&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance for the three and six months ended June 30, 2025, compared to the prior year. It details changes in revenue by market, gross profit, operating expenses (R&D, SG&A), other income/expense, and income taxes, highlighting key drivers for these fluctuations [Comparison of Three Months Ended June 30, 2025 and 2024](index=32&type=section&id=Comparison%20of%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) Compares the company's financial performance, including revenue, gross profit, and expenses, for the second quarter of 2025 and 2024 Quarterly Financial Performance (in thousands) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Revenue | $3,414 | $2,898 | $516 | 17.8% | | Gross profit | $1,538 | $1,305 | $233 | 17.9% | | Engineering, research and development | $363 | $510 | $(147) | (28.8)% | | Selling, general and administrative | $1,109 | $1,108 | $1 | 0.1% | | Other income (expense), net | $25 | $16 | $9 | 56.3% | | Net income (loss) | $100 | $(307) | $407 | 132.6% | - Revenue **increased by 17.8%** due to higher demand in industrial (up **87.0%**) and automotive (up **130.8%**) markets, and standard products (up **10.6%**), offsetting a decrease in medical market revenue (down **22.2%**)[108](index=108&type=chunk)[109](index=109&type=chunk) - Gross profit **increased by 17.9% to $1,538,000**, with gross margin percentage remaining flat at **45.0%**[107](index=107&type=chunk)[110](index=110&type=chunk) - Engineering and R&D expenses **decreased by 28.8%** due to lower employee and consultant compensation costs[111](index=111&type=chunk) [Comparison of Six Months Ended June 30, 2025 and 2024](index=35&type=section&id=Comparison%20of%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Compares the company's financial performance, including revenue, gross profit, and expenses, for the first half of 2025 and 2024 Half-Year Financial Performance (in thousands) | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | Change ($) | Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------- | :--------- | | Revenue | $6,078 | $6,022 | $56 | 0.9% | | Gross profit | $2,487 | $2,558 | $(71) | (2.8)% | | Engineering, research and development | $797 | $1,086 | $(289) | (26.6)% | | Selling, general and administrative | $2,473 | $2,536 | $(63) | (2.5)% | | Other income (expense), net | $30 | $48 | $(18) | (37.5)% | | Net income (loss) | $(705) | $(1,048) | $343 | 32.7% | - Revenue **increased slightly by 0.9%**, driven by growth in industrial (up **44.2%**) and automotive (up **165.9%**) markets, while medical revenue decreased by **30.0%** and standard products by **2.2%**[117](index=117&type=chunk) - Gross profit **decreased by 2.8% to $2,487,000**, with gross margin percentage declining from **42.5% to 40.9%** due to changes in product and customer mix[107](index=107&type=chunk)[118](index=118&type=chunk) - Engineering and R&D costs **decreased by 26.6%** due to lower compensation costs, and SG&A costs **decreased by 2.5%** due to lower compensation expenses, partially offset by higher consultant fees[119](index=119&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses Interlink's cash position, working capital, and potential future capital needs, including implications of equity or debt financing Liquidity and Capital Resources Summary (in millions) | Metric | June 30, 2025 (in millions) | | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $2.3 | | Working capital | $5.0 | | Indebtedness | $0 | | Foreign subsidiaries cash | $1.5 | - The company has **200,000 shares** of **8.0% Series A Convertible Preferred Stock** outstanding, with an aggregate liquidation preference of **$5.0 million**, paying monthly cash dividends[126](index=126&type=chunk) - Management believes existing cash is sufficient for current operations but may raise additional capital through equity or debt, potentially leading to stockholder dilution or restrictive covenants[127](index=127&type=chunk) [Cash Flow Analysis](index=39&type=section&id=Cash%20Flow%20Analysis) This section provides a summary of cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024. It details the drivers behind the net cash used in each category, including net loss, non-cash adjustments, changes in working capital, capital expenditures, and preferred stock dividends Cash Flow Activities (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | | :-------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | Net cash (used in) operating activities | $(409) | $(76) | | Net cash (used in) investing activities | $(34) | $(20) | | Net cash (used in) financing activities | $(200) | $(200) | - Net cash used in operating activities **increased to $409,000** in H1 2025 (from $76,000 in H1 2024), primarily due to a net loss of $705,000 and changes in operating assets and liabilities[129](index=129&type=chunk) - Accounts receivable **increased from $1.6 million to $2.1 million**, while inventories **decreased from $2.0 million to $1.7 million**, impacting operating cash flows[130](index=130&type=chunk) - Investing activities primarily consisted of property, plant, and equipment purchases, and financing activities were solely for preferred stock dividend payments[131](index=131&type=chunk)[132](index=132&type=chunk) [Off-Balance Sheet Arrangements](index=39&type=section&id=Off-Balance%20Sheet%20Arrangements) Interlink Electronics, Inc. does not have any off-balance sheet arrangements - The company has no off-balance sheet arrangements[133](index=133&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there are no applicable quantitative and qualitative disclosures about market risk for Interlink Electronics, Inc. in this report - The company has no applicable quantitative and qualitative disclosures about market risk[134](index=134&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Details the evaluation of Interlink's disclosure controls and internal controls over financial reporting, concluding their effectiveness with no material changes [Evaluation of Disclosure Controls and Procedures](index=40&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective at a reasonable assurance level - As of June 30, 2025, management, with CEO and CFO participation, concluded that disclosure controls and procedures were designed at a reasonable assurance level and were effective[136](index=136&type=chunk) [Changes in Internal Controls over Financial Reporting](index=40&type=section&id=Changes%20in%20Internal%20Controls%20over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025 - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[137](index=137&type=chunk) [Limitations on Effectiveness of Controls and Procedures](index=40&type=section&id=Limitations%20on%20Effectiveness%20of%20Controls%20and%20Procedures) Management acknowledges that control systems provide reasonable, not absolute, assurance and are subject to inherent limitations - Management acknowledges that control systems provide only reasonable, not absolute, assurance and are subject to human diligence, judgment lapses, and potential breakdowns[139](index=139&type=chunk) [PART II – OTHER INFORMATION](index=41&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section includes other required information such as risk factors, other disclosures, exhibits, and signatures [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors outlined in the company's Annual Report on Form 10-K filed on March 27, 2025. No material changes to these risk factors occurred during the three months ended June 30, 2025 - No material changes to risk factors occurred during the three months ended June 30, 2025, as referenced in the Annual Report on Form 10-K[141](index=141&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) During the three months ended June 30, 2025, no director or officer adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[142](index=142&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including organizational documents, certifications (302 and 906), XBRL documents, and the iXBRL cover page - The report includes various exhibits such as Articles of Incorporation, Bylaws, certifications (31.1, 31.2, 32.1), and XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[144](index=144&type=chunk) [Signatures](index=43&type=section&id=Signatures) The report is duly signed on behalf of Interlink Electronics, Inc. by Ryan J. Hoffman, Chief Financial Officer, on August 13, 2025 - The report was signed by Ryan J. Hoffman, Chief Financial Officer, on August 13, 2025[146](index=146&type=chunk)