Financial Performance - For the nine-month period ended September 30, 2025, the company reported revenues of $25,442,000, a 42% increase compared to $17,910,000 for the same period in 2024[6] - The gross profit for the nine-month period was $15,251,000, representing a 55% increase from $9,819,000 in the prior year[6] - Operating loss for the nine-month period was $4,454,000, a decrease from $5,302,000 in the same period of 2024[6] - The Company incurred a net loss of $2,513 for the three months ended September 30, 2025, and a comprehensive loss of $8,931 for the nine months ended September 30, 2025[87][89] - The Company recognized a segment loss of $4,454 for the nine months ended September 30, 2025, with the Products segment loss at $4,051 and CDMO Services at $403[89] Cash Flow and Liquidity - The company had cash and cash equivalents of $10,966,000 as of September 30, 2025, significantly up from $2,390,000 at the end of 2024[4] - The company incurred negative cash flows from operating activities of $4,974,000 for the nine-month period ended September 30, 2025[12] - The net proceeds from the Equity Offering and other events are expected to significantly strengthen the Company's liquidity position and support ongoing operations[25] Equity and Financing - The company completed an equity offering in September 2025, resulting in net proceeds and debt reduction of approximately $14,202,000[22] - The Company completed a Public Offering on November 10, 2025, resulting in gross proceeds of approximately $19.93 million and net proceeds of approximately $18.44 million after deductions[24] - The Company borrowed $1.68 million from private investors during the nine-month period ended September 30, 2025, with interest rates of 16% and 20%[52] - The outstanding balance of short-term loans as of September 30, 2025, is $3.08 million, with $678,000 at a 16% interest rate and $2.40 million at a 20% interest rate[52] - The Company issued 1,146,474 common shares as a result of the conversion of convertible loans, increasing share capital by $7.09 million[43] - The Company extended 503,033 Early Conversion Warrants and 257,143 Major Investor Warrants for an additional 24 months as part of its financing strategy[60] Revenue Segmentation - For the nine months ended September 30, 2025, total revenues were $25,442, with the Products segment at $24,134 and CDMO Services at $1,308[89] - For the three months ended September 30, 2025, external revenue from North America was $7,836 million, compared to $6,009 million in 2024, indicating an increase of 30.4%[96] - For the nine months ended September 30, 2025, external revenue from North America was $22,609 million, up from $16,321 million in 2024, representing a growth of 38.5%[91] - The Company has no single customer contributing 10% or more of total revenue for the three and nine months ended September 30, 2025, and 2024[92] Assets and Deficits - The company's accumulated deficit as of September 30, 2025, reached $105,349,000, up from $96,418,000 at the end of 2024[4] - The total assets increased to $35,188,000 as of September 30, 2025, compared to $25,001,000 at the end of 2024[4] Operational Focus - The Company is focused on developing therapeutic solutions using its Botanical Synthesis Platform Technology, which allows for the production of active ingredients without traditional agriculture[19] - The Company has not experienced any material impact on operations due to recent geopolitical events as of the date of the financial statements[31] Shareholder Actions - As of September 30, 2025, the Company issued and outstanding common shares increased to 19,616,380 from 17,327,716 as of December 31, 2024[42] - The Company granted 78,712 options at an exercise price of $9.00 and 18,572 options at $8.30 during the period, with total values of $284 and $79 respectively[48] - The exercise price of certain warrants was reduced from $7.77 and $11.52 to $6.50 per share as part of the Equity Offering[43] - The Company issued 1,786 common shares on October 14, 2025, from employee and consultant options, generating proceeds of $9 million[96] - Following September 30, 2025, the Company issued 189,279 common shares from warrant exercises, resulting in proceeds of $1,108 million[96]

Financial Performance - Product sales for the three months ended September 30, 2025, were $4.952 million, an increase from $4.496 million in the same period of 2024, representing a growth of approximately 10.2%[18] - The net loss attributable to common stockholders for the three months ended September 30, 2025, was $1.680 million, compared to a net loss of $2.370 million for the same period in 2024, indicating an improvement of approximately 29.2%[18] - Net loss for the three months ended September 30, 2025, was $1,569 million, compared to a loss of $2,365 million for the same period in 2024, representing a 33.5% improvement[21] - For the nine months ended September 30, 2025, the net loss totaled $5,823 million, slightly improved from $6,485 million in the same period of 2024, showing a 10.2% reduction[21] - The company reported a comprehensive loss of $6,681 million for the nine months ended September 30, 2025, compared to $6,485 million in 2024, indicating a 3% increase[21] Operating Expenses - Total operating expenses for the nine months ended September 30, 2025, were $10.595 million, a decrease from $18.932 million in the same period of 2024, reflecting a reduction of about 43.7%[18] - Research and development expenses for the nine months ended September 30, 2025, were $3.819 million, a significant increase compared to $1.196 million in the same period of 2024[18] Cash and Assets - Cash and cash equivalents as of September 30, 2025, were reported at $0, while total current assets decreased to $7.918 million from $13.609 million as of December 31, 2024[16] - The balance of common stock as of June 30, 2025, was $831,424 thousand, an increase from $829,026 thousand as of September 30, 2024[21] - Cash, cash equivalents, and restricted cash at the end of the period were $840,000, up from $722,000 at the end of the previous year[29] Liabilities - Total liabilities as of September 30, 2025, were $83.976 million, a decrease from $90.264 million as of December 31, 2024, showing a reduction of approximately 6.5%[16] - The company has identified material weaknesses in internal controls and is working on remediation efforts[9] - As of September 30, 2025, the Company reported a working capital deficit of $70.3 million and an accumulated deficit of $900.2 million[41] Regulatory and Market Presence - The company anticipates potential changes in regulatory mandates that could impact the coverage of FDA-approved contraceptive products[14] - The company is focused on expanding its market presence and improving its sales and marketing capabilities, particularly after product rebranding efforts[9] Financing and Debt - Interest pertaining to the Baker Notes for the three months ended September 30, 2025, was approximately $2.9 million, and for the nine months ended September 30, 2025, it was approximately $8.5 million[85] - The Baker Notes have a principal amount of up to $25.0 million, with an interest rate of 10.0% per annum[84] - The Company intends to contest the claims of default made by the Designated Agent and Purchasers under the Baker Bros. SPA[110] Inventory and Cost of Goods Sold - The Company expects to significantly reduce its cost of goods sold (COGS) once PHEXX is manufactured under the Windtree License and Supply Agreement[175] - The Company recorded a total of $1.684 million in inventories as of September 30, 2025, compared to $1.577 million as of December 31, 2024[146] Stock and Equity - The Company issued 5,300,000 shares of common stock upon noncash exercise of purchase rights during the reporting period[21] - The Series E-1 Convertible Preferred Stock was authorized to increase from 2,300 to 10,000 shares to facilitate dividend payments in kind, with a conversion price of $0.40 per share[204] - The Series F-1 Shares rank higher than all Common Stock regarding preferences for dividends and distributions upon liquidation[206] Future Outlook - The Company anticipates continuing to incur net losses for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[47] - The Company plans to generate recurring product revenue from PHEXX and SOLOSEC, restructure payables, and seek additional funding through various financing options[45]

Financial Performance - The company had a net income of $615,026 for the three months ended September 30, 2025, primarily from interest and dividend income of $739,550, offset by formation and operating expenses of $124,524 [126]. - For the nine months ended September 30, 2025, the company reported a net income of $1,308,900, with interest and dividend income totaling $2,196,069, against formation and operating expenses of $887,169 [126]. Cash and Working Capital - As of September 30, 2025, the company had cash of $66,627 and a working capital deficit of $436,294 [129]. IPO and Fundraising - The company raised gross proceeds of $60,000,000 from its IPO by selling 6,000,000 units at $10.00 per unit, with an additional $9,000,000 from the over-allotment option [119]. - The total proceeds from the IPO and private placements amounted to $69,000,000, which were placed in a trust account for the benefit of public shareholders [121]. Business Operations and Expenses - The company has incurred losses since inception and has not generated any revenue, relying on working capital from the IPO and loans from the sponsor [118]. - The company expects to incur increased expenses as a public company, including legal and compliance costs, as well as expenses related to searching for target opportunities [125]. Debt and Financing - The company has no long-term debt or off-balance sheet financing arrangements as of September 30, 2025 [135]. - The company issued a promissory note to the sponsor for up to $300,000 for working capital, which is non-interest bearing and due upon the initial business combination [124]. Use of Proceeds - The company plans to use the net proceeds from the IPO primarily for acquiring a target business and covering related expenses [130].

Financial Performance - The company had a net income of $615,026 for the three months ended September 30, 2025, primarily from interest and dividend income of $739,550, offset by formation and operating expenses of $124,524 [126]. - For the nine months ended September 30, 2025, the company reported a net income of $1,308,900, with interest and dividend income of $2,196,069, offset by formation and operating expenses totaling $887,169 [126]. Cash and Working Capital - As of September 30, 2025, the company had cash of $66,627 and a working capital deficit of $436,294 [129]. - The company issued a promissory note to the sponsor for up to $300,000 for working capital, which is non-interest bearing and due upon the initial business combination [124]. - The company has no long-term debt or off-balance sheet financing arrangements as of September 30, 2025 [135][136]. IPO and Fundraising - The company raised gross proceeds of $69,000,000 from the IPO, including the sale of 6,900,000 units at $10.00 per unit [121]. - The company plans to use the net proceeds from the IPO primarily for acquiring a target business and covering related expenses [130]. Business Operations and Future Plans - The company has incurred losses since inception, with no revenue generated to date, relying on working capital from the IPO and loans from the sponsor [118]. - The company expects to incur increased expenses as a result of being a public company, including legal and compliance costs [125]. - The company has until November 18, 2025, to complete a business combination, or it will proceed with voluntary liquidation [134].

Financial Performance - Actuate Therapeutics reported a net loss of $27,285,328 for the year ended December 31, 2024, compared to a net loss of $24,744,620 for 2023, indicating an increase in losses [126]. - The company has an accumulated deficit of $150,053,748 as of September 30, 2025, primarily due to research and development costs and general administrative expenses [126]. - The net loss for the three months ended September 30, 2025 was $5,407,470, a decrease of $563,491 compared to a net loss of $5,970,961 in 2024 [127]. - The net loss for the nine months ended September 30, 2025 was $17,673,899, an improvement of $3,165,340 compared to a net loss of $20,839,239 in 2024 [131]. - The company reported a net loss of $17,673,899 for the nine months ended September 30, 2025, compared to a net loss of $20,839,239 for the same period in 2024 [145]. - The company has incurred significant operating losses and negative cash flows from operations since inception, with expectations of continued losses as it advances clinical development of elraglusib and future product candidates [135]. - The company has substantial doubt regarding its ability to continue as a going concern due to ongoing losses and cash flow challenges [141]. Research and Development - The Phase 2 trial of elraglusib in combination with gemcitabine/nab-paclitaxel (GnP) showed a median overall survival (mOS) of 10.1 months for the elraglusib/GnP group compared to 7.2 months for the GnP group, representing a 37% reduction in the risk of death [106]. - The 12-month overall survival rate was 44.1% for the elraglusib/GnP group versus 22.3% for the GnP group, with a p-value of 0.0005 indicating statistical significance [107]. - The overall response rate (ORR) for the elraglusib/GnP group was 29.0%, compared to 21.8% for the GnP group [108]. - Actuate Therapeutics plans to advance elraglusib for the treatment of relapsed/refractory Ewing sarcoma (EWS) in a Phase 2 study in 2026, subject to funding availability [111]. - The company has developed oral dosage forms of elraglusib and plans to conduct a Phase 1 study for the Elraglusib Oral Tablet to identify the maximum tolerated dose [113]. - Actuate Therapeutics has submitted an amended investigational new drug (IND) application to the FDA and is seeking Breakthrough Therapy Designation (BTD) for elraglusib [109]. - The company anticipates significant increases in research and development expenses as it continues clinical trials and seeks regulatory approvals for elraglusib [117]. - The company is committed to ongoing clinical trials for elraglusib, with costs dependent on the size, number, and length of these trials [142]. Operating Expenses - For the three months ended September 30, 2025, total operating expenses were $5,472,378, a slight increase of $79,475 compared to $5,392,903 in 2024 [127]. - Research and development expenses decreased by $1,579,180 to $2,177,922 for the three months ended September 30, 2025, primarily due to lower external clinical trial expenses [128]. - General and administrative expenses increased by $1,658,655 to $3,294,456 for the three months ended September 30, 2025, mainly driven by a rise in personnel-related expenses [129]. - For the nine months ended September 30, 2025, total operating expenses were $17,806,839, a decrease of $794,767 from $18,601,606 in 2024 [131]. - Research and development expenses for the nine months ended September 30, 2025 were $8,163,046, down $6,827,291 from $14,990,337 in 2024 [132]. - General and administrative expenses for the nine months ended September 30, 2025 increased by $6,032,524 to $9,643,793, largely due to higher personnel-related expenses [133]. Cash Flow and Financing - As of September 30, 2025, the company had cash and cash equivalents of $16,924,763 and working capital of $11,071,338, but expects expenses to increase substantially, potentially exhausting cash reserves by the second quarter of fiscal year 2026 without additional capital [139]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $15,470,210, compared to $17,070,233 for the same period in 2024 [144]. - The company raised net proceeds of $15,573,966 from the September 2025 Public Offering and $4,592,462 from the June 2025 Private Placement during the nine months ended September 30, 2025 [147]. - The net cash provided by financing activities for the nine months ended September 30, 2025, was $23,753,351, down from $27,635,023 in the same period of 2024 [144]. - Interest income for the nine months ended September 30, 2025 increased by $43,950 to $148,128 compared to $104,178 in 2024, attributed to a higher average cash balance [134]. - The company recognized a total other income of $132,940 for the nine months ended September 30, 2025, compared to a total other expense of $2,237,633 in 2024, reflecting a significant improvement [134]. - The company plans to finance operations through equity offerings, debt financings, or other capital sources, but may face challenges in raising additional funds on favorable terms [140]. Company Classification - The company is classified as an emerging growth company and a smaller reporting company, allowing it to take advantage of scaled disclosures and an extended transition period for compliance with new accounting standards [150][151].

Home Energy Storage Solutions - Expion360 began shipping its e360 Home Energy Storage Solutions in January 2025, which include two LiFePO4 battery storage solutions designed for cost-effective home energy management [161]. - The home energy storage market is projected to grow at a 26.4% CAGR, reaching $17.5 billion by 2028, with only 6.0% of residential solar systems currently utilizing battery storage [170]. - The company launched its e360 product line in December 2020, which has become a preferred solution for converting from lead-acid batteries [163]. - Expion360's lithium-ion batteries offer an expected lifespan of approximately 12 years, which is three to four times longer than certain lead-acid batteries, and provide three times the power at half the weight [167]. - The company is focused on increasing OEM market penetration and advancing product development for home energy storage solutions [164]. - Expion360's proprietary e360 SmartTalk mobile app allows users to monitor and manage e360 Bluetooth-enabled LiFePO4 batteries, enhancing user experience and product integration [169]. - The company is exploring opportunities to extend its technology into adjacent applications, including electric forklifts and industrial material handling markets [162]. Financial Performance - Net sales for the three months ended September 30, 2025, increased by $1.0 million, or 72.2%, to $2.4 million compared to $1.4 million for the same period in 2024 [197]. - Net sales for the nine months ended September 30, 2025, increased by $3.8 million, or 104.2%, to $7.4 million compared to $3.6 million for the same period in 2024 [198]. - Cost of sales for the three months ended September 30, 2025, increased by $600,000, or 51.6%, to $1.8 million compared to $1.2 million for the same period in 2024, with cost of sales as a percentage of net sales decreasing by 10.5% [200]. - Gross profit for the three months ended September 30, 2025, increased by $373,000, or 221.6%, to $542,000 compared to $169,000 for the same period in 2024, with gross profit as a percentage of net sales increasing to 22.7% [203]. - Selling, general and administrative expenses for the three months ended September 30, 2025, increased by $1.4 million, or 69.1%, to $3.5 million compared to $2.1 million for the same period in 2024, with expenses as a percentage of net sales at 148.1% [206]. - Other income for the three months ended September 30, 2025, was $3.7 million, a decrease of $10.6 million, or 154.1%, compared to an expense of $6.9 million for the same period in 2024 [209]. - The increase in net sales was primarily due to the recovery of the RV market and enhanced sales efforts, including outreach to OEM partners and strategic marketing initiatives [199]. - Selling, general and administrative expenses for the nine months ended September 30, 2025, increased by $877,000, or 13.9%, to $7.2 million compared to $6.3 million for the same period in 2024, with expenses as a percentage of net sales decreasing significantly [207]. - Gross profit for the nine months ended September 30, 2025, increased by $950,000, or 132.6%, to $1,667,000 compared to $717,000 for the same period in 2024 [204]. - Total cost of sales for the nine months ended September 30, 2025, increased by $2.9 million, or 97.3%, to $5.8 million compared to $2.9 million for the same period in 2024 [201]. - Net income for the three months ended September 30, 2025, was $723,000, compared to a net loss of $8.8 million for the same period in 2024, indicating significant improvement [212]. - For the nine months ended September 30, 2025, the net loss was reduced to $1.8 million from $13.2 million in the prior year, driven by increased sales and decreased cost of sales [212]. Cash Flow and Capital Structure - Cash used in operating activities decreased to $3.7 million for the nine months ended September 30, 2025, from $6.6 million in the prior year, primarily due to reduced inventory levels [216]. - Cash provided by financing activities increased to $7.5 million for the nine months ended September 30, 2025, compared to $5.9 million in 2024, with net proceeds from warrant exercises and common stock issuance contributing significantly [217]. - As of September 30, 2025, working capital improved to $8.5 million from $2.0 million as of December 31, 2024, with cash and cash equivalents rising to $4.3 million from $548,000 [219]. - The company recognized $3.6 million in non-cash operating income for the nine months ended September 30, 2025, compared to $7.5 million in non-cash operating costs in the prior year [213]. - Long-term debt as of September 30, 2025, was approximately $206,000, with $31,000 due within the next 12 months [223]. - The company expects to continue incurring losses and may need to raise additional capital to support operations and growth initiatives [222]. - As of September 30, 2025, the company had $788,000 in long-term operating lease liabilities [227]. - The company sold 4,336 shares of common stock under the Equity Line of Credit for an aggregate amount of $828,491 prior to the termination of the agreement [226]. - The company is classified as a smaller reporting company and is not required to provide the information called for by Item 305 of Regulation S-K [241]. Market and Distribution - The company has added several new distributors and OEM customers in the RV and marine markets, contributing to sales growth during the first nine months of 2025 [176]. - Management anticipates that products sourced from third-party manufacturers in Asia may face additional tariff exposure in 2025, but plans to mitigate potential impacts on gross margins through various strategies [180]. - As of September 30, 2025, Expion360 sells 15 models of LiFePO4 batteries, with varying average selling prices and costs of goods sold depending on the sales channel mix [182].

Expion360 Reports Third Quarter 2025 Financial and Operational Results Q3 2025 Sales Growth of 72% to $2.4 Million Driven by Continued Demand for Battery Products, Accessories and Technologies Exhibit 99.1 Gross profit totaled $0.5 million, or 23% as a percentage of net sales, as compared to $0.2 million, or 12% as a percentage of net sales, in the prior year period. The increase in gross margin percentage was primarily attributable to the product mix sold in different periods. New CEO to Drive Next Phase o ...

Revenue Generation - The company has not generated any revenue from EV sales and expects to generate revenue from the sale of its EV models, technology licensing, and R&D services [156]. - The company expects to continue incurring substantial operating losses due to the capital-intensive nature of its business and the lack of commercially available vehicles [151]. - The company has faced significant operating losses since inception and continues to struggle with generating sufficient revenue to cover operational costs [174]. - The company has not met the sales/revenue condition for the year of 2024, which may impact the release of Earnout Shares [184]. Financial Performance - For the three months ended September 30, 2025, the company reported a net loss of approximately $0.4 million, a decrease from a net loss of $0.9 million for the same period in 2024 [166]. - The company incurred a net loss of approximately $1.7 million and $2.5 million for the nine months ended September 30, 2025 and 2024, respectively [169]. - The company incurred general and administrative expenses of approximately $428,053 for the three months ended September 30, 2025, compared to $912,314 in 2024, reflecting a significant reduction in professional and consulting expenses [165]. - General and administrative expenses for the nine months ended September 30, 2025, were approximately $1.7 million, down from $2.5 million in 2024, primarily due to a lack of share-based compensation expenses compared to the previous year [168]. Cash Flow and Liquidity - As of September 30, 2025, the company's cash balance was $16,441, down from $33,636 at the end of the same period in 2024, indicating a net decrease in cash of $36,175 [175]. - Net cash used in operating activities for the nine months ended September 30, 2025 was approximately $1.4 million, primarily due to a net loss of approximately $1.7 million [176]. - The company reported cash provided by financing activities of approximately $1.3 million for the nine months ended September 30, 2025, primarily from borrowings from the controlling shareholder [179]. - The company has recorded a prepaid forward contract as a current asset, which may affect its liquidity and ability to meet short-term obligations [174]. Business Development - The company has four EV models in phased development: Coupe, Sedan, City Car, and SUV, with no new models expected to be introduced until at least 2030 [152]. - The business combination with Feutune Light Acquisition Corporation was completed on June 21, 2024, resulting in the company being renamed Thunder Power Holdings, Inc. [144]. - The company plans to utilize third-party retail distribution and full-service networks to enhance market execution, which is critical for operational success [154]. - The company has entered into a Share Exchange Agreement with shareholders of Electric Power Technology Limited, with a share exchange ratio of 119 shares of the company's common stock for every 100 ordinary shares of TW Company [148]. - The company’s common stock began trading on the Nasdaq under the symbol "AIEV" on June 24, 2024, following the business combination [146]. Future Outlook - The company is exploring new financing options, including potential debt extensions or new equity capital, to address uncertainties regarding its ability to continue as a going concern [172]. - The company’s shares were suspended from trading on Nasdaq on April 21, 2025, impacting its ability to access capital markets [174]. - The company incurred minimal research and development expenses for the three and nine months ended September 30, 2025 and 2024, recorded under general and administrative expenses [186].

Revenue Generation - The company has not generated any revenue from the sale of electric vehicles (EVs) and expects to generate revenue from the sale of its EV models, technology licensing, and research and development services [156]. - The company has incurred costs associated with general and administrative expenses, liquidity, and financing, despite not generating any revenue [157]. - The company has faced significant operating losses since inception and continues to struggle with generating sufficient revenue to cover operational costs [174]. Financial Performance - For the three months ended September 30, 2025, the company reported a net loss of approximately $0.4 million, a decrease from a net loss of $0.9 million for the same period in 2024 [166]. - The company incurred a net loss of approximately $1.7 million and $2.5 million for the nine months ended September 30, 2025 and 2024, respectively [169]. - The company incurred total operating expenses of approximately $428,053 for the three months ended September 30, 2025, compared to $912,314 for the same period in 2024 [165]. Expenses and Cost Management - General and administrative expenses for the nine months ended September 30, 2025, were approximately $1.7 million, down from $2.5 million in 2024, primarily due to a reduction in share-based compensation expenses [168]. - The company has recorded a prepaid forward contract as a current asset, which may affect its liquidity and ability to meet short-term obligations [174]. - The company has incurred minimal research and development expenses for the three and nine months ended September 30, 2025 and 2024, recorded under general and administrative expenses [186]. Capital and Financing - The company anticipates significant capital requirements for developing and marketing its vehicles, with ongoing substantial operating losses expected for the foreseeable future [151]. - The company reported cash provided by financing activities of approximately $1.3 million for the nine months ended September 30, 2025, primarily from borrowings from the controlling shareholder [179]. - The company is exploring new financing options, including potential debt extensions or new equity capital, to address uncertainties regarding its ability to continue as a going concern [172]. Business Developments - The business combination with Feutune Light Acquisition Corporation was completed on June 21, 2024, resulting in the company being renamed Thunder Power Holdings, Inc. [144]. - The company’s common stock began trading on the Nasdaq under the symbol "AIEV" on June 24, 2024, following the business combination [146]. - The company entered into a Share Exchange Agreement with Electric Power Technology Limited, with a share exchange ratio of 119 shares of the company's common stock for every 100 ordinary shares of TW Company [148]. Market and Trading Status - The company’s shares were suspended from trading on Nasdaq on April 21, 2025, impacting its ability to access capital markets [174]. - The company has not met the sales/revenue condition for the year of 2024, which could impact the release of Earnout Shares [184]. Cash Flow - As of September 30, 2025, the company's cash balance was $16,441, down from $33,636 at the end of the same period in 2024, indicating a net decrease in cash of $36,175 [175]. - Net cash used in operating activities for the nine months ended September 30, 2025 was approximately $1.4 million, primarily due to a net loss of approximately $1.7 million [176].

Financial Performance - Net earnings for Q3 2025 were $4.9 million, a 25.4% increase from $3.9 million in Q3 2024[99] - Net earnings for the first nine months of 2025 reached $14.0 million, up 44.4% from $9.7 million in the same period of 2024[99] - Non-interest income decreased by $185,000, or 4.3%, to $4.1 million in the third quarter of 2025 compared to the same period in 2024, mainly due to lower fees and service charges[118] - Total non-interest income for the first nine months of 2025 was $11.1 million, a decrease of $321,000 or 2.8% from the same period in 2024, primarily due to lower fees related to deposit accounts[119] - Non-interest expense for the third quarter of 2025 totaled $11.3 million, an increase of $692,000 or 6.6% over the same quarter of 2024, driven by higher compensation and benefits[120] Interest Income and Expenses - Interest income for Q3 2025 was $20.7 million, a 9.0% increase from $19.0 million in Q3 2024[102] - Net interest income for Q3 2025 increased by $2.5 million, or 21.5%, to $14.1 million compared to Q3 2024[106] - The net interest margin for Q3 2025 was 3.83%, up from 3.30% in Q3 2024[106] - Interest expense for Q3 2025 decreased to $6.6 million, down from $7.4 million in Q3 2024[104] - The total cost of interest-bearing deposits decreased from 2.48% in Q3 2024 to 2.18% in Q3 2025[104] Asset and Liability Management - Average loan balances increased from $985.7 million in Q3 2024 to $1.1 billion in Q3 2025[102] - Total interest-earning assets increased to $1,478,010 thousand for the three months ended September 30, 2025, compared to $1,419,665 thousand for the same period in 2024, reflecting a growth of 4.1%[109] - Total interest-bearing liabilities rose to $1,080,690 thousand for the three months ended September 30, 2025, compared to $1,046,601 thousand for the same period in 2024, marking an increase of 3.2%[109] - The ratio of average interest-earning assets to average interest-bearing liabilities was 136.8% for the three months ended September 30, 2025, slightly up from 135.6% in the same period of 2024[109] Credit Quality - Provision for credit losses on loans was $850,000 in the third quarter of 2025, an increase from $500,000 in the same period of 2024, primarily due to loan growth[115] - Net loan charge-offs increased to $2.3 million during the third quarter of 2025, compared to $9,000 in the same period of 2024, primarily due to a single commercial credit charge-off[115] - The allowance for credit losses on loans was $12.3 million, or 1.10% of gross loans outstanding, as of September 30, 2025, down from $12.8 million or 1.22% at December 31, 2024[126] - Loans past due 30-89 days totaled $4.9 million, or 0.43% of gross loans, as of September 30, 2025, down from $6.2 million or 0.59% at December 31, 2024[128] Dividends and Shareholder Returns - The company declared a 5% stock dividend in October 2025, marking the 25th consecutive year of such dividends[97] - The company paid a quarterly cash dividend of $0.21 per share to stockholders during the quarter ended September 30, 2025[142] - As of September 30, 2025, approximately $18.8 million was available to be paid as dividends to the Company by the Bank without prior regulatory approval[143] Market Risk and Management - The primary component of market risk for the Company is interest rate volatility, which significantly impacts net interest income and the fair value of financial instruments[145] - The Asset/Liability Management Committee (ALCO) monitors interest rate sensitivity and has set policy limits for interest rate risk, assessing the position quarterly[146] - The ALCO formulates strategies based on the current outlook for interest rates and other economic factors, impacting earnings and capital[146] - The Company employs methodologies to manage interest rate risk, including analysis of interest-earning assets and interest-bearing liabilities[146] Forward-Looking Statements - Forward-looking statements in the document are based on management's beliefs and expectations, and are subject to uncertainties[148] - Factors affecting future performance include the strength of local, state, national, and international economies, as well as inflationary pressures and monetary policies[149] - Risks and uncertainties should be considered when evaluating forward-looking statements, and undue reliance should not be placed on them[150]