Financial Performance - Total revenue for fiscal 2025 was $2,371.6 million, up from $2,330.2 million in fiscal 2024, reflecting a growth of 1.8%[156] - Net income (GAAP) for the fiscal year ended September 30, 2025, was $45,588 thousand, a decrease of 67.5% from $140,175 thousand in 2024[158] - Adjusted EBITDA (Non-GAAP) for the fiscal year ended September 30, 2025, was $157,719 thousand, down 35.5% from $243,418 thousand in 2024[158] - Homebuilding revenue for the fiscal year ended September 30, 2025, was $2,302,630 thousand, a slight increase of 0.4% from $2,292,984 thousand in 2024[166] - Homebuilding gross profit decreased by $84.2 million to $329.4 million for the fiscal year ended September 30, 2025, compared to $413.6 million in the prior year, with a gross margin decline of 370 basis points to 14.3%[172] - Operating income for the total homebuilding segment was $36.6 million for the fiscal year ended September 30, 2025, a decrease of $106.4 million compared to the prior year[181] - Net cash provided by operating activities was $32.0 million for the fiscal year ended September 30, 2025, driven by income before income taxes of $40.9 million[192] Land Acquisition and Development - Beazer Homes spent $491.9 million on land acquisition and $192.0 million on land development in fiscal 2025, compared to $507.8 million and $268.7 million in fiscal 2024, respectively[41] - The company controls a total of 25,660 lots, including 10,287 lots held for sale and 3,663 lots under development as of September 30, 2025[46] - The total remaining purchase price under all land option agreements was $1.61 billion, with non-refundable amounts incurred totaling $333.4 million[43] - The company expects to exercise substantially all of its option agreements, subject to market conditions and seller satisfaction of contract terms[44] - The company invested $684.0 million in land acquisition and development during fiscal 2025, an 11.9% decrease from $776.5 million in fiscal 2024[153] Market Conditions and Challenges - Demand for homes softened during fiscal 2025 due to elevated interest rates, despite multiple rate cuts by the Federal Reserve[74] - Elevated mortgage interest rates negatively affect home affordability, impacting consumer purchasing power and potentially reducing revenues and earnings[77] - The enactment of H.R. 1 limits annual deductions for real estate property taxes and mortgage interest, potentially reducing homeownership affordability[79] - Competition in the homebuilding industry is intense, with many competitors having greater financial resources, which could impact market share and pricing[82] - Cancellation rates during fiscal 2025 remained within historical norms, but significant cancellations could adversely affect sales revenue and inventory levels[83] Sales and Orders - Net new orders for fiscal 2025 were 3,890, a decrease of 7.8% from 4,221 in the prior year, with orders per community per month dropping to 2.0 from 2.4[153] - The backlog reflects 945 homes with a dollar value of $516.5 million as of September 30, 2025, compared to 1,482 homes valued at $797.2 million in 2024[50] - The average selling price (ASP) in backlog increased to $546.5 thousand as of September 30, 2025, up from $537.9 thousand in 2024[50] Employee and Corporate Culture - The company employs 1,018 persons, including 261 in sales and marketing and 207 in construction as of September 30, 2025[64] - The company is committed to fostering a culture of inclusivity and employee engagement through various programs and benefits[67] Financial Position and Debt - The total debt to total capitalization ratio was 45.2% as of September 30, 2025, down 20 basis points from the prior year, indicating improved capital allocation strategies[148] - The company has significant restrictions imposed by its debt agreements, which could limit its ability to incur additional debt and affect financial flexibility[108] - The company's credit ratings and access to capital could be adversely affected by negative changes, impacting liquidity and borrowing costs[107] Risks and Liabilities - The company is facing potential liabilities from construction defect, product liability, and warranty claims, which are common in the homebuilding industry[95] - Insurance coverage for construction defects is becoming increasingly expensive and may not be adequate to cover all liabilities, potentially impacting financial condition[99] - Cybersecurity breaches and IT failures pose risks that could disrupt operations and result in significant financial liabilities[104] - Global economic and political instability could adversely affect the supply chain and overall business operations, impacting financial performance[105] Sustainability and Energy Efficiency - Beazer Homes achieved its goal of building 100% Zero Energy Ready homes in fiscal 2025, qualifying for an Energy-Efficiency Tax Credit of $5,000 per home[91] - The Inflation Reduction Act of 2022 increased Energy-Efficiency Tax Credits, but future credits may be disallowed after June 30, 2026, impacting tax expenses[92] - The evolving legal and regulatory landscape regarding sustainability could entail significant costs and affect the company's ability to meet stakeholder expectations[103] Shareholder Actions - Approximately 5% of outstanding shares were repurchased during fiscal 2025 for an aggregate purchase price of $33.1 million, with remaining authorization to purchase up to $87.5 million[118] - The Company approved a new share repurchase program authorizing up to $100.0 million, replacing a prior program with $8.3 million remaining[205] - The Company has not paid any dividends during fiscal years 2025, 2024, or 2023, and future dividends will depend on financial condition and Board decisions[136]

Revenue Performance - SeaStar Medical reported a revenue of $0.9 million from the sale of QUELIMMUNE since receiving FDA approval in February 2024, with the first commercial units shipped in July 2024[149]. - For the three months ended September 30, 2025, revenue increased by 169% to $183,000 compared to $68,000 in the same period in 2024[159]. - Revenue for the nine months ended September 30, 2025, increased to $814,000, a 1097% increase compared to $68,000 for the same period in 2024[166]. - Gross profit for the nine months ended September 30, 2025, was $773,000, up 1037% from $68,000 in 2024[166]. Expenses and Losses - The company incurred a net loss of $3.472 million for the three months ended September 30, 2025, a decrease of 23% from a net loss of $4.478 million in the same period in 2024[159]. - Research and development expenses decreased by 21% to $1.85 million for the three months ended September 30, 2025, compared to $2.336 million in the same period in 2024[159]. - General and administrative expenses decreased by 13% to $1.898 million for the three months ended September 30, 2025, compared to $2.188 million in the same period in 2024[159]. - The total operating expenses for the three months ended September 30, 2025, were $3.748 million, a reduction of 17% from $4.524 million in the same period in 2024[159]. - Net loss for the nine months ended September 30, 2025, was approximately $9.2 million, a reduction of 55% compared to a net loss of $20.4 million in 2024[172]. - Total operating expenses for the nine months ended September 30, 2025, were $9.9 million, a decrease of 24% from $13.1 million in 2024[166]. Cash and Financial Position - As of September 30, 2025, the company had cash reserves of $13.8 million, a significant increase from $1.8 million as of December 31, 2024[145]. - The accumulated deficit as of September 30, 2025, was $148.8 million, up from $139.6 million as of December 31, 2024[144]. - The company recorded no provision for income taxes for the three months ended September 30, 2025, and September 30, 2024[164]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $9.5 million, a decrease of $1.8 million compared to $11.3 million for the same period in 2024[182]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $21.5 million, primarily from the issuance of new shares of common stock ($14.3 million) and proceeds from pre-funded warrants ($5.9 million)[183]. Clinical Development and Future Outlook - The company is conducting a pivotal clinical trial for its adult SCD therapy, which is crucial for future revenue generation[150]. - SeaStar Medical's SCD therapy has the potential to address a market of over one million patients annually facing life-threatening hyperinflammatory conditions[143]. - The company expects to incur significant expenses for the clinical development of its adult SCD and commercialization of QUELIMMUNE, necessitating additional funding[179]. - The company anticipates that its future funding requirements will depend on the progress of clinical trials and regulatory approvals[179]. Concerns and Commitments - The company has raised concerns about its ability to continue as a going concern due to insufficient cash to meet working capital and capital expenditure requirements for at least twelve months[175]. - As of September 30, 2025, the company has unused available capacity on the ATM Facility that allows for potential capital raising of approximately $2.2 million[176]. - The company does not plan to include potential cash proceeds from the exercise of warrants in its liquidity projections as of the date of the Quarterly Report[178]. - The company has no contractual obligations or commitments outstanding as of September 30, 2025[181]. - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay compliance with certain accounting standards[187].

Financial Performance - Revenue for the three months ended September 30, 2025, was $534,000, a 68.7% increase from $317,000 in the same period of 2024[21] - Operating expenses for the three months ended September 30, 2025, totaled $29,739,000, up from $13,991,000 in the prior year, representing a 112.5% increase[21] - Research and development expenses increased to $6,151,000 for the three months ended September 30, 2025, compared to $2,533,000 in the same period of 2024, marking a 142.5% rise[21] - The net loss attributable to Innventure, Inc. stockholders for the three months ended September 30, 2025, was $28,332,000, compared to a loss of $2,211,000 in the same period of 2024[21] - Basic and diluted loss per share for the three months ended September 30, 2025, was $(0.51), an improvement from $(0.94) in the prior year[21] - Total comprehensive loss for the three months ended September 30, 2025, was $34,454,000, compared to $10,014,000 in the same period of 2024[21] - The company reported a goodwill impairment of $346,557,000 for the nine months ended September 30, 2025[21] - Interest expense for the three months ended September 30, 2025, was $3,401,000, significantly higher than $852,000 in the same period of 2024[21] - The total operating expenses for the nine months ended September 30, 2025, were $434,211,000, compared to $36,256,000 in the same period of 2024, reflecting a substantial increase[21] - The net loss for the nine months ended September 30, 2025, was $429.684 million, compared to a net loss of $26.481 million for the same period in 2024, indicating a significant increase in losses[29] - Cash used in operating activities for the nine months ended September 30, 2025, was $56.328 million, up from $18.647 million in the prior year[29] - The company recognized an EBITDA loss of $412.499 million for the nine months ended September 30, 2025, compared to a loss of $25.035 million for the same period in 2024[33] Assets and Liabilities - Innventure reported total assets of $556.5 million as of September 30, 2025, down from $905.3 million at the end of 2024[18] - Cash and cash equivalents decreased to $9.1 million from $11.1 million at the end of 2024[18] - Accounts receivable increased significantly to $1.6 million from $283,000 at the end of 2024[18] - Total current liabilities rose to $82.5 million from $69.3 million at the end of 2024[18] - The accumulated deficit increased to $333.8 million from $78.3 million at the end of 2024[18] - Total stockholders' equity decreased to $406.6 million from $766.3 million at the end of 2024[18] - The company reported an accumulated deficit of $333.844 million as of September 30, 2025[27] - The total stockholders' equity increased to $525.745 million as of March 31, 2025, up from $766.293 million as of December 31, 2024[27] - The total number of common shares outstanding increased to 56,220,158 as of September 30, 2025[27] Financing Activities - The company issued 481,325 common shares, net of issuance costs, raising $2.625 million during the period[27] - The issuance of Series C Preferred Stock generated $5.663 million in net proceeds[27] - The company issued $36 million in debt securities, net of issuance costs, during the nine months ended September 30, 2025[29] - The net cash flows provided by financing activities were $63.349 million for the nine months ended September 30, 2025, compared to $38.191 million in the prior year[29] Strategic Developments - Accelsius secured a strategic investment from Johnson Controls and introduced the NeuCool® MR250 system, with a sales pipeline exceeding $1 billion[2] - AeroFlexx achieved its 5th consecutive quarter of revenue generation, expanding its customer pipeline in the U.S. and Europe[2] - Refinity is on track to demonstrate pilot scale and finalize initial site selection for its first plant by year-end 2025[2] - Innventure aims to unlock value through advancements in its operating companies and a high-quality pipeline of technology opportunities[3] Cash Flow and Expenses - The cash flow statements indicate significant cash movements, reflecting ongoing operational adjustments and financing activities[28] - Stock-based compensation expenses amounted to $7.725 million for the quarter ending September 30, 2025[27] - Stock-based compensation expenses increased to $22.972 million for the nine months ended September 30, 2025, compared to $1.056 million in the same period of 2024[35] - Cash paid for interest increased to $2.551 million for the nine months ended September 30, 2025, from $1.070 million in the previous year[31] - The company reported a change in fair value of financial liabilities of $(19.496) million for the nine months ended September 30, 2025[35]

Financial Performance - For the three months ended September 30, 2025, total revenues were $18.4 million, compared to $12.6 million for the same period in 2024, representing a year-over-year increase of 46%[57]. - Revenues for the three months ended September 30, 2025, were $18,359,000, a 46.0% increase from $12,604,000 in 2024; for the nine months ended September 30, 2025, revenues were $52,461,000, up 41.7% from $37,000,000 in 2024[92]. - The Company recognized $10.1 million in revenues for the nine months ended September 30, 2025, related to amounts deferred as of December 31, 2024[60]. - Direct-to-Consumer revenue for the three months ended September 30, 2025, was $5.7 million, accounting for 31% of total revenue, down from 62% in the same period of 2024[57]. - Revenue from the United States accounted for 84% of total revenue in Q3 2025, up from 60% in Q3 2024; for the nine months ended September 30, 2025, it was 78%, compared to 61% in 2024[92]. Cash and Investments - The company's cash and cash equivalents increased to $14,108,000 as of September 30, 2025, compared to $7,826,000 as of December 31, 2024, representing an increase of 80.5%[49]. - The total investments in debt securities amounted to $28,490,000 as of September 30, 2025, with Level 1 securities valued at $12,086,000 and Level 2 securities at $16,404,000[49]. - The company recorded restricted cash of $60,000 as of September 30, 2025, down from $125,000 as of December 31, 2024[49]. - The fair value of Private Placement Warrants was reported as $0 as of September 30, 2025, down from $88,000 as of December 31, 2024[56]. - The stock price of the Company was $5.30 as of September 30, 2025, compared to $1.53 as of December 31, 2024, reflecting a significant increase[74]. Losses and Expenses - The Company reported a net loss of $3.744 million for the three months ended September 30, 2025, compared to a net loss of $3.062 million for the same period in 2024[76]. - Operating loss for the three months ended September 30, 2025, was $(4,491,000), compared to $(3,252,000) in 2024; for the nine months ended September 30, 2025, the operating loss was $(3,932,000), an improvement from $(9,455,000) in 2024[92]. - The Company recognized $6.977 million in stock-based compensation expense related to RSUs for the three months ended September 30, 2025, compared to $2.720 million in 2024[89]. - Accrued expenses and other liabilities increased to $12.3 million as of September 30, 2025, from $7.0 million as of December 31, 2024[55]. Content and Assets - As of September 30, 2025, total content assets amounted to $28.1 million, a decrease from $31.5 million as of December 31, 2024[52]. - Content amortization for the three months ended September 30, 2025, was $3.6 million, compared to $4.6 million for the same period in 2024[54]. - Content obligations amounted to $0.4 million as of September 30, 2025, with $0.1 million recorded within content liabilities[100]. Future Expectations and Commitments - The Company expects to recognize $3.1 million in future revenues related to unsatisfied performance obligations as of September 30, 2025[58]. - Future advertising commitments totaled $1.8 million as of September 30, 2025, expected to be paid in Q1 2026[103]. - The Company expects to no longer qualify as an emerging growth company after December 31, 2025, which will affect its accounting pronouncements adoption timeline[36]. - The company anticipates that the adoption of ASU 2023-09 will not have a material impact on its consolidated financial statement disclosures[37]. - The company is currently evaluating the impact of adopting ASU 2024-03, which requires additional disclosures about specific expense categories[38]. Shareholder Actions - The Board declared a quarterly cash dividend of $0.08 per share, totaling approximately $4.7 million, to be paid on December 19, 2025[107]. - The Company had repurchased 216,000 shares of its common stock at an average price of $1.16 per share, totaling $0.3 million[68]. - The total number of outstanding warrants as of September 30, 2025, was 6,730,000, with no exercises during the three and nine months ended[72]. - The Company had 4,410,000 RSUs outstanding as of September 30, 2025, compared to 2,864,000 in 2024[78]. - The Company had an unrecognized compensation cost of $9.0 million expected to be recognized over approximately five to six months as of September 30, 2025[81].

Financial Performance - For the three months ended September 30, 2025, total revenues were $18.4 million, compared to $12.6 million for the same period in 2024, representing a year-over-year increase of 46%[57]. - Revenues for the three months ended September 30, 2025, were $18,359,000, a 46% increase from $12,604,000 in the same period of 2024[92]. - Direct-to-Consumer revenue for the three months ended September 30, 2025, was $5.7 million, accounting for 31% of total revenue, down from 62% in the same period of 2024[57]. - Revenue from the United States accounted for 84% of total revenue in Q3 2025, up from 60% in Q3 2024[92]. - Operating loss for the three months ended September 30, 2025, was $(4,491,000), compared to $(3,252,000) for the same period in 2024[92]. - Net loss for the nine months ended September 30, 2025, was $(2,641,000), a decrease from $(10,128,000) in the same period of 2024[92]. Investments and Ownership - The company's total investments in debt securities amounted to $28.5 million as of September 30, 2025, with Level 1 securities valued at $12.1 million and Level 2 securities at $16.4 million[49]. - The carrying value of the company's equity method investment in Nebula decreased to $3.6 million as of September 30, 2025, down from $3.8 million at the end of 2024, reflecting an equity method investment loss of $231,000[40]. - The company holds a 32% ownership in the Spiegel Venture, which operates two documentary channels and an SVOD service, with no dividends received as of September 30, 2025[41]. - The company has invested a total of $6.0 million for a 12% ownership interest in Nebula, which has since increased to 16.875% through additional incremental purchases[46][47]. - The company has a call option to acquire additional ownership in the Spiegel Venture, with an estimated purchase price range of $1.0 million to $2.0 million based on the SPA formula[44]. Cash and Assets - As of September 30, 2025, the company's cash and cash equivalents increased to $14.1 million from $7.8 million as of December 31, 2024, representing an increase of 80.5%[49]. - As of September 30, 2025, total content assets amounted to $28.1 million, a decrease from $31.5 million as of December 31, 2024[52]. - The Company held operating lease ROU assets of $2.8 million as of September 30, 2025[96]. - The Company’s total lease payments due as of September 30, 2025, amounted to $4,676,000[98]. Revenue Recognition and Deferred Revenues - The Company expects to recognize $3.1 million in future revenues related to unsatisfied performance obligations as of September 30, 2025[58]. - Total deferred revenues decreased to $8.7 million as of September 30, 2025, from $11.4 million as of December 31, 2024[59]. Expenses and Liabilities - Total operating expenses for the three months ended September 30, 2025, were $22,850,000, compared to $15,856,000 in the same period of 2024[92]. - Accrued expenses and other liabilities increased to $12.3 million as of September 30, 2025, from $7.0 million as of December 31, 2024[55]. - Content amortization for the three months ended September 30, 2025, was $3.6 million, compared to $4.6 million for the same period in 2024[54]. Stock and Compensation - The Company recognized $6.977 million in stock-based compensation expense related to RSUs for the three months ended September 30, 2025, compared to $2.720 million in 2024[89]. - The Company had unrecognized compensation cost of $9.0 million expected to be recognized over a weighted-average period of approximately five to six months as of September 30, 2025[81]. Future Commitments and Dividends - The Board declared a quarterly cash dividend of $0.08 per share, totaling approximately $4.7 million, to be paid on December 19, 2025[107]. - Future advertising commitments totaled $1.8 million, expected to be paid in Q1 2026[103]. Accounting and Regulatory Changes - The company expects to no longer qualify as an emerging growth company after December 31, 2025, which will affect its adoption of new accounting standards[36]. - The company is currently assessing the impact of ASU 2025-05 on its consolidated financial statements, which relates to the measurement of credit losses for accounts receivable[39].

Financial Performance - The company generated a net income of $10.1 million for the nine months ended September 30, 2025[137]. - Operating revenues for the three months ended September 30, 2025, were $43.4 million, a decrease from $45.1 million in the same period of 2024, primarily due to lower average realized prices[164]. - Oil, natural gas, and NGLs revenues decreased to $133.3 million for the nine months ended September 30, 2025, down from $143.7 million in 2024, primarily due to lower average realized prices and production volumes[165]. - Average production was 12,396 Boe per day for the nine months ended September 30, 2025, compared to 12,639 Boe per day in 2024, reflecting a decrease in production[165]. - Average daily production for the three months ended September 30, 2025, was 12,293 Boe, compared to 12,076 Boe for the same period in 2024[164]. - Net derivative gain for the nine months ended September 30, 2025, was $26.0 million, compared to $3.9 million in 2024[176]. Financial Position - The company had negative working capital of $3.9 million at September 30, 2025[139]. - The company continues to report negative stockholders' equity of $(20.3) million as of September 30, 2025, along with ongoing losses from continuing operations[144]. - As of March 31, 2025, the company reported stockholders' equity of $(1.8) million, failing to meet NYSE American's listing standards requiring $2 million or more due to losses in three of the last four fiscal years[144]. - The company had $50.5 million in cash and cash equivalents as of September 30, 2025[139]. Debt and Liabilities - The company is required to maintain an Asset Coverage Ratio of at least 1.85x through December 31, 2026[138]. - The Total Net Leverage Ratio must not exceed 2.50x as of September 30, 2025[138]. - The company is required to make total debt repayments of $22.5 million through September 2026 under its 2024 Amended Term Loan Agreement[150]. - Scheduled amortization payments under the 2024 Amended Term Loan Agreement total $5.6 million for the remainder of 2025 and $22.5 million in 2026[132]. - The company recognized a loss on extinguishment of debt amounting to $7.5 million for the year ended December 31, 2024[133]. - Interest expense totaled $20.0 million for the nine months ended September 30, 2025, slightly up from $19.8 million in 2024, with a weighted average interest rate of approximately 12.20%[177]. Operational Activities - For the nine months ended September 30, 2025, cash flows provided by operating activities increased to $50.9 million from $28.7 million in the same period of 2024, driven by changes in working capital[153]. - Net cash flows used in investing activities for the nine months ended September 30, 2025, were approximately $70.0 million, primarily for drilling and completion activities[154]. - The company spent $69.6 million on oil and natural gas capital expenditures during the nine months ended September 30, 2025, with $59.9 million allocated to drilling and completion costs[155]. Cost Management - Lease operating expenses for the nine months ended September 30, 2025, were $33.4 million, slightly down from $34.2 million in 2024, with a per unit cost of $9.88 per Boe[166]. - Workover and other expenses increased to $4.6 million for the nine months ended September 30, 2025, up from $3.1 million in 2024, with a per unit cost of $1.35 per Boe[167]. - Taxes other than income were $7.9 million for the nine months ended September 30, 2025, down from $8.9 million in 2024, with a per unit cost of $2.35 per Boe[168]. - Gathering and other expenses decreased to $33.2 million for the nine months ended September 30, 2025, from $41.9 million in 2024, with a per unit cost of $9.80 per Boe[169][171]. - General and administrative expenses were $10.0 million for the nine months ended September 30, 2025, down from $11.1 million in 2024, with a per unit cost of $2.96 per Boe[172]. Strategic Initiatives - The company is exploring strategic transactions to improve liquidity and reduce expenses[143]. - The cessation of operations at the WAT facility has increased processing costs and decreased production and revenue[134]. - The company hedges approximately 85% to 50% of its anticipated oil and natural gas production on a rolling basis for the next four years[131].

Exhibit 99.1 BIO GREEN MED SOLUTION REPORTS THIRD QUARTER FINANCIAL RESULTS AND PROVIDES BUSINESS UPDATE KUALA LUMPUR, MALAYSIA, November 13, 2025 – Bio Green Med Solution, Inc. (NASDAQ: BGMS, NASDAQ: BGMSP; "BGMS" or the "Company" (formerly Cyclacel Pharmaceuticals, Inc.)), a diversified company engaged primarily in the provision of fire safety protection and distribution activities, today announced third quarter financial results and provided a business update. Highlights of the third quarter ended Septem ...

Financial Performance - As of September 30, 2025, cash and cash equivalents totaled $3.8 million, an increase from $3.1 million as of December 31, 2024[4] - Product revenue from fire safety equipment sales was $81,000 for the three months ended September 30, 2025, compared to $0 for the same period in 2024[5][16] - Research and development expenses were $0 for the three months ended September 30, 2025, down from $1.0 million for the same period in 2024[7] - General and administrative expenses decreased to $1.0 million for the three months ended September 30, 2025, from $1.2 million in the same period in 2024[8] - The net loss for the three months ended September 30, 2025, was $1.0 million, compared to a net loss of $2.0 million for the same period in 2024[10][16] - Total assets increased to $8.16 million as of September 30, 2025, compared to $4.09 million as of December 31, 2024[18] Corporate Actions - Following the acquisition of Fitters Sdn. Bhd., the company now holds approximately 19.99% of all issued and outstanding shares of common stock of the Company[3] - The company entered into a Warrant Exchange Agreement in September 2025, exchanging existing warrants for an aggregate of 559,395 shares of common stock[3] - An Asset Purchase Agreement was signed in October 2025 to sell certain assets related to Plogosertib for a purchase price of $300,000, plus a potential milestone payment of $170,000[3] - The company declared a quarterly cash dividend of $0.15 per share on its 6% Convertible Exchangeable Preferred Stock, paid on November 1, 2025[11]

Financial Performance - Total revenue for the six months ended September 30, 2025, was $53.269 million, a slight increase from $52.911 million in the same period of 2024, representing a growth of 0.68%[18] - The company reported a gross loss of $28.608 million for the nine months ended September 30, 2025, compared to a gross loss of $38.168 million for the same period in 2024, indicating an improvement of 25.2%[18] - The net loss attributable to common stockholders for the six months ended September 30, 2025, was $200.719 million, compared to a net income of $27.403 million in the same period of 2024[18] - For the nine months ended September 30, 2025, the net loss was $189.4 million, an improvement from a net loss of $228.9 million in the same period of 2024, representing a 17.2% decrease in losses[27] - The company reported a net loss of $85.8 million for the three months ended September 30, 2025, compared to a net income of $27.4 million for the same period in 2024[167] Expenses and Liabilities - Research and development expenses decreased to $112.884 million for the nine months ended September 30, 2025, down from $184.191 million in 2024, reflecting a reduction of 38.7%[18] - Operating expenses for the nine months ended September 30, 2025, totaled $157.805 million, down from $331.181 million in the same period of 2024, a decrease of 52.4%[18] - The company incurred interest expense of $36.918 million for the nine months ended September 30, 2025, compared to $14.422 million in the same period of 2024, an increase of 155.5%[18] - Total liabilities decreased from $586.002 million as of December 31, 2024, to $505.077 million as of September 30, 2025, a reduction of approximately 13.8%[16] - The total stockholders' deficit increased from $220.789 million as of December 31, 2024, to $304.929 million as of September 30, 2025, reflecting a deterioration of 38%[16] Cash Flow and Assets - Cash flows from operating activities resulted in a net cash used of $145.9 million, compared to $214.7 million in the prior year, indicating a 32.1% reduction in cash outflow[27] - The company had ending cash, cash equivalents, and restricted cash of $57.1 million, down from $116.1 million at the end of the previous year[27] - The company’s cash and cash equivalents decreased from $82.840 million as of December 31, 2024, to $54.482 million as of September 30, 2025, a decline of 34.3%[16] - Total current assets decreased significantly from $245.227 million as of December 31, 2024, to $122.173 million as of September 30, 2025, a decline of 50%[16] Stock and Equity - The balance of Class A common stock increased to 28,157,410 shares as of September 30, 2024, from 26,077,917 shares as of June 30, 2024[21] - The company issued 431,572 shares of Class A common stock upon exercise of stock options and vesting of restricted stock units, adding $140 to additional paid-in capital[21] - The total additional paid-in capital as of September 30, 2024, was $2,122,835, up from $2,066,450 as of June 30, 2024[21] - The balance of Class A common stock increased to 72,493,635 shares as of September 30, 2025[24] - The Company raised $33.6 million in net proceeds from the initial offering of 35,000 shares of Series A Preferred Stock on May 22, 2025[168] Impairments and Write-downs - The Company recorded a $2.2 million goodwill impairment for the Optogration reporting unit during the three and nine months ended September 30, 2025[44] - A $6.0 million impairment loss for long-lived tangible assets of Optogration and NRE asset groups was recorded during the same period[46] - The Company recognized a $1.5 million intangible asset impairment for Optogration and NRE asset groups during the three and nine months ended September 30, 2025[48] - The impairment charge for property and equipment for the quarter ending September 30, 2025, was $6,000,000[93] Financing and Debt - The Company issued $100.0 million in Senior Notes with a floating interest rate of Term SOFR plus 9.0%, resulting in an effective interest rate of 14.8% as of September 30, 2025[124] - The Company recognized a $142.2 million gain on debt extinguishment during Q3 2024 from the exchange of $421.9 million in 2026 Convertible Senior Notes[116] - The Company recognized interest expense of $10.7 million for the Senior Notes during the nine months ended September 30, 2025, which included $0.7 million from the amortization of debt discount and issuance costs[132] - The Company has entered into forbearance agreements with holders of Senior Notes and 2030 Convertible Notes, covering approximately 94.5% and 89% of the respective notes, to manage recent defaults[38] - The Company has classified both the Senior Notes and the 2030 Convertible Notes as non-current liabilities as of September 30, 2025[145] Strategic Initiatives - The company expects to continue incurring operating losses due to investments in product and software development, indicating a focus on long-term growth despite short-term losses[33] - The company is actively exploring capital restructuring plans and potential sales of business segments to address liquidity concerns[40] - The restructuring plan initiated in 2024 resulted in a cumulative workforce reduction of approximately 30%, with separation costs of $1.7 million for Q3 2025[77] - The Company is optimizing manufacturing processes and product design to reduce per unit sensor manufacturing costs, including a change in sourcing strategies[94] Revenue Sources and Customer Concentration - The Company’s revenue is derived from sales of LiDAR sensors, semiconductor components, NRE services, and licensing of data and information[71] - Two customers accounted for 40% and 33% of the Company's accounts receivable as of September 30, 2025[53] - North America accounted for 79% of total revenue in Q3 2025, down from 91% in Q3 2024, while Europe and the Middle East increased to 21% from 8%[72] Stock Options and Compensation - The Company granted 4,548,760 Time-Based RSUs with a weighted average grant date fair value of $3.81 during the nine months ended September 30, 2025[212] - The outstanding Time-Based RSUs as of September 30, 2025, totaled 2,519,373, with a weighted average grant date fair value of $18.35[212] - The Company made payments of $2.3 million related to post-combination compensation arrangements for the Freedom Photonics acquisition during the three and nine months ended September 30, 2025[214] - The Company canceled or forfeited 53,285 common stock options during the nine months ended September 30, 2025[209]

Financial Performance - The Company recorded a net loss of $1.9 million for Q3 2025, an improvement from a net loss of $4.0 million in Q3 2024, representing a 52.5% reduction in losses [169]. - For the nine months ended September 30, 2025, the Company recorded a net loss of $6.5 million, an improvement from a net loss of $9.2 million in the same period of 2024 [181]. Interest Income and Net Interest Income - Interest income for Q3 2025 was $24.1 million, an increase of $2.6 million or 12.1% from $21.5 million in Q3 2024, driven by higher rates on interest-earning assets [170]. - Net interest income increased by $3.1 million to $12.2 million in Q3 2025, with a net interest rate spread of 1.95%, up 66 basis points from the previous year [172]. - Interest income for the nine months ended September 30, 2025, totaled $70.3 million, a 10.4% increase from $63.7 million in 2024, driven by higher average loan balances [182]. - Net interest income for the nine months ended September 30, 2025, increased by $6.5 million to $34.6 million, with a net interest margin of 2.26%, up 36 basis points from 2024 [184]. Credit Losses and Provisions - The provision for credit losses was $589 thousand in Q3 2025, compared to $248 thousand in Q3 2024, reflecting economic variable forecast deterioration [173]. Assets and Loans - Total assets grew to $2.16 billion at September 30, 2025, up from $2.06 billion at December 31, 2024 [192]. - Gross loans held for investment increased by $131.4 million to $1.71 billion at September 30, 2025, with consumer and commercial real estate loans rising by $114.5 million and $57.4 million, respectively [195]. - The average interest-earning assets increased by $70.8 million to $2.04 billion for the nine months ended September 30, 2025 [182]. Deposits and Equity - Total deposits rose by $150.1 million, or 11.2%, to $1.49 billion at September 30, 2025, driven by increases in NOW and demand accounts and time deposits [197]. - Total shareholders' equity decreased by $17.8 million, or 5.4%, to $314.4 million at September 30, 2025, primarily due to share repurchases [200]. Non-Interest Income and Expenses - Non-interest income decreased to $1.2 million for the nine months ended September 30, 2025, down from $1.4 million in 2024, partly due to a prior gain on sale of REO property [186]. - Non-interest expense increased by $1.3 million to $41.1 million for the nine months ended September 30, 2025, primarily due to a $1.2 million rise in compensation and benefits expense [187]. Securities and Borrowings - Securities available-for-sale decreased by $23.1 million, or 7.8%, to $273.9 million at September 30, 2025 [193]. - Borrowings decreased by $38.5 million, or 11.3%, to $301.0 million at September 30, 2025 [199]. Capital and Liquidity - The Bank's total capital ratio as of September 30, 2025 is 18.52%, significantly exceeding the minimum requirement of 8.00% [216]. - The Bank's common equity tier 1 capital is $286,527 thousand, with a ratio of 17.63% as of September 30, 2025 [216]. - Liquidity sources include deposit inflows, loan payments, and wholesale funding, with available borrowing capacity at $283.8 million [211]. - The available borrowing capacity is 2.2 times the total uninsured and uncollateralized deposits to third-party customers [213]. Interest Rate Sensitivity - As of September 30, 2025, a 100 basis point increase in interest rates would result in a 14.1% decrease in Economic Value of Equity (EVE) to $195,762 thousand [209]. - A 200 basis point increase in interest rates would lead to a 28.2% decrease in EVE, amounting to $163,656 thousand [209]. Commitments and Hedges - The Bank has $7.8 million in commitments to originate loans and $146.1 million in unused lines of credit as of September 30, 2025 [213]. - The Company had $526.0 million in interest rate hedges at September 30, 2025, an increase of $177.0 million from December 31, 2024 [201]. - Management expects to retain a substantial portion of certificate holders for maturing deposits totaling $777.1 million [213]. - The Bank is considered "well capitalized" under regulatory guidelines as of September 30, 2025 [215].