Insurance Operations - Insurance premiums for the three months ended September 30, 2025, were $29,881,000, a 0% change from $30,011,000 in 2024, while for the nine months, they were $89,846,000, also a 0% change from $89,824,000[309] - Total segment revenues for the insurance operations increased by 4% to $52,835,000 for the three months ended September 30, 2025, and by 4% to $156,795,000 for the nine months compared to the previous year[309] - The company plans to continue focusing on niche insurance products, cemetery and mortuary business, and capitalizing on the improving housing market through mortgage loans[305] Investment Income - Net investment income increased by 13% to $19,279,000 for the three months ended September 30, 2025, compared to $17,106,000 in 2024, and by 9% to $57,910,000 for the nine months compared to $52,902,000 in 2024[309] - Net investment income rose by $2,310,000, or 13.0%, to $20,109,000 for the three-month period ended September 30, 2025, driven by a $3,117,000 increase in mortgage loan interest[322] - The company's investment policy focuses on fixed maturity securities, real estate, and mortgage loans, aiming to exceed the accruing liabilities under its cemetery and mortuary policies[351] Cemetery and Mortuary Operations - Cemetery revenues for the three months ended September 30, 2025, were $3,624,000, a 1% increase from $3,598,000 in 2024, while mortuary revenues increased by 9% to $3,517,000 from $3,216,000[312] - Total segment revenues for cemetery and mortuary operations increased by 4% to $9,014,000 for the three months ended September 30, 2025, but decreased by 2% to $25,442,000 for the nine months compared to 2024[312] - Net mortuary and cemetery sales increased by $327,000, or 4.8%, to $7,141,000 for the three-month period ended September 30, 2025, attributed to a $301,000 increase in mortuary at-need sales[324] Mortgage Operations - SecurityNational Mortgage originated 5,216 loans totaling $1,756,289,000 for the nine months ended September 30, 2025, compared to 5,505 loans totaling $1,723,036,000 in 2024[316] - Segment net earnings for the mortgage operations showed a loss of $2,752,000 for the nine months ended September 30, 2025, compared to a loss of $1,416,000 in 2024[318] Financial Performance - Total revenues increased by $1,052,000, or 1.2%, to $89,326,000 for the three-month period ended September 30, 2025, compared to $88,274,000 for the same period in 2024[319] - For the nine-month period ended September 30, 2025, total revenues increased by $6,354,000, or 2.5%, to $261,607,000 from $255,253,000 for the comparable period in 2024[334] - Total benefits and expenses were $79,173,000, or 88.6% of total revenues, for the three-month period ended September 30, 2025, compared to $73,059,000, or 82.8% of total revenues, for the same period in 2024[332] Expenses - The company experienced a $5,991,000 increase in selling, general and administrative expenses for the nine months ended September 30, 2025, primarily due to personnel expenses[309] - Selling, general and administrative expenses increased by $9,399,000, or 7.3%, to $138,351,000 for the nine-month period ended September 30, 2025, primarily due to a $3,966,000 increase in personnel expenses[343] - Mortgage fee income decreased by $1,085,000, or 3.6%, to $29,139,000 for the three-month period ended September 30, 2025, primarily due to a $3,163,000 decrease in the fair value of loans held for sale[320] Capitalization and Compliance - As of September 30, 2025, the company's total capitalization was $488,478,000, an increase from $445,522,000 as of December 31, 2024, primarily due to a $26,600,000 increase in stockholders' equity[354] - The combined statutory capital and surplus of the company's life insurance subsidiaries was approximately $133,949,000 as of September 30, 2025, up from $120,216,000 as of December 31, 2024[356] - The company is in compliance with risk-based capital guidelines established by regulators as of September 30, 2025[353] Other Financial Metrics - Death benefits, surrenders, and other policy benefits increased by $2,267,000, or 3.1%, to $76,223,000 for the nine-month period ended September 30, 2025[341] - Interest expense increased by $317,000, or 10.0%, to $3,479,000 for the nine-month period ended September 30, 2025, primarily due to an increase in interest expense on mortgage warehouse lines of credit[344] - The Company provided cash of approximately $27,553,000 from operations during the nine-month period ended September 30, 2025, a decrease from approximately $34,894,000 for the same period in 2024[349] Lapse Rate and Bond Investments - The lapse rate for life insurance increased to 7.0% in 2024 from 4.4% in 2023, with the 2025 lapse rate to date being approximately the same as 2024[355] - As of September 30, 2025, 1.6% of the company's total bond investments were in non-investment grade bonds, down from 2.4% as of December 31, 2024[352] - The company's bonds amounted to $370,953,000 at estimated fair value as of September 30, 2025, representing 35.4% of total investments, compared to $348,774,000 and 38.0% as of December 31, 2024[352] Legislative Impact - The company is currently assessing the impact of the One Big Beautiful Bill Act on its financial statements but does not expect a material impact[357]

Revenue Performance - Product revenues for the three months ended September 30, 2025, were $437,602, compared to $135,293 for the same period in 2024, representing an increase of 224%[175] - For the nine months ended September 30, 2025, product revenues reached $702,086, up from $365,939 in 2024, indicating a growth of 92%[175] - Research revenues increased to $90,960 for the three months ended September 30, 2025, from $12,818 in 2024, marking a 609.63% increase[184] - Product revenues for the nine months ended September 30, 2025, reached $702,086, a 91.86% increase from $365,939 in the same period of 2024[195] - Research revenues surged to $390,630 for the nine months ended September 30, 2025, an increase of 804.72% from $43,177 in 2024, primarily due to a new USAMMDA contract[202] Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $4,115,779, a decrease from $1,659,353 as of December 31, 2024[160] - The company raised approximately $4,281,300 in net proceeds from the July 2025 Offering, which closed on July 16, 2025[156] - Cash and cash equivalents increased by 112.09% to $2,456,426 for the nine months ended September 30, 2025, compared to $1,158,203 in 2024[212] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $2,316,397, a 7.48% increase from $2,155,116 in 2024[186] - General and administrative expenses rose by 24.00% to $1,506,620 for the three months ended September 30, 2025, from $1,215,053 in 2024[189] - Operating expenses decreased by 19.50% to $6,272,931 for the nine months ended September 30, 2025, compared to $7,792,318 in 2024[203] Profitability and Loss - The cost of revenues for the three months ended September 30, 2025, was $537,690, compared to $111,687 in 2024, resulting in a gross loss of $100,088[175] - Gross profit for the nine months ended September 30, 2025, was $41,073, down 58.62% from $99,251 in 2024, resulting in a gross margin decrease from 27.12% to 5.85%[195][201] - The company recognized a loss of $156,445 on the change in fair value of derivative liabilities for the nine months ended September 30, 2025, compared to a gain of $1,683,034 in 2024[210] Cash Flow - Net cash used in operating activities increased by 28.60% to $(5,156,566) for the nine months ended September 30, 2025, compared to $(4,009,871) in 2024[212] - Net cash provided by investing activities was $1,625,347 for the nine months ended September 30, 2025, compared to net cash used of $1,887,016 for the same period in 2024, with proceeds of $1,708,000 from short-term investments[215] - Net cash provided by financing activities decreased to $5,979,077 for the nine months ended September 30, 2025, from $7,052,598 in the same period of 2024, mainly due to lower net proceeds from stock offerings[216] Debt and Obligations - Contractual obligations as of September 30, 2025, total $1,639,415, with $1,400,119 due within one year[168] - The company has accumulated losses to date and has not generated enough revenues to cover operating expenses, raising concerns about its ability to continue as a going concern[161] - The company plans to fund operations through third-party debt, private placements, and stock issuance until achieving profitability[164] Research and Development - Research and development expenses decreased by 13.86% to $809,777 for the three months ended September 30, 2025, compared to $940,063 in 2024[186] - The company capitalized research and development costs for its babesiosis trial at $1,109,279 for the nine months ended September 30, 2025, up from $846,323 in the same period of 2024[214] Accounting and Standards - The company recognized revenue in accordance with FASB ASC Topic No. 606, with revenue recognized when control is transferred to customers[220] - The company has elected to take advantage of the JOBS Act accounting election, allowing it to delay the adoption of certain accounting standards[233] - The company adopted ASU 2023-07 on a retrospective basis for the 2024 annual period, impacting financial statement disclosures[235]

Financial Performance - Net loss for the three months ended September 30, 2025, was $10.49 million, compared to a net loss of $10.09 million for the same period in 2024, reflecting a 3.9% increase in losses[10] - Net loss for the nine months ended September 30, 2025, was $20.70 million, a decrease from a net loss of $27.84 million for the same period in 2024, reflecting a 25.5% improvement[10] - The company reported a basic and diluted loss per share of $0.19 for the nine months ended September 30, 2025, an improvement from a loss of $0.31 per share in the same period of 2024[10] - Basic and diluted loss per share improved to $0.09 for the three months ended September 30, 2025, compared to $0.11 for the same period in 2024[10] - The company incurred a net loss of $10,093,122 for the three months ended September 30, 2025[40] Assets and Equity - Total assets increased to $119.25 million as of September 30, 2025, up from $95.35 million at December 31, 2024, representing a 25.1% increase[8] - Total stockholders' equity increased to $115.96 million as of September 30, 2025, up from $92.15 million at December 31, 2024, indicating a 25.8% growth[8] - Total stockholders' equity as of September 30, 2025, was approximately $93.3 million, down from $103.5 million as of December 31, 2023[18] Cash and Cash Equivalents - Cash and cash equivalents rose to $33.02 million at the end of September 2025, compared to $9.41 million at the beginning of the period, marking a 250.5% increase[13] - As of September 30, 2025, the company reported a cash balance of approximately $33.0 million and working capital of approximately $31.0 million[24] Liabilities - The company’s total liabilities stood at $3.29 million as of September 30, 2025, slightly up from $3.20 million at December 31, 2024[8] - Trade payables decreased to $1,343,749 as of September 30, 2025, from $1,721,119 as of December 31, 2024[40] Exploration and Operating Expenses - Exploration expenses for the nine months ended September 30, 2025, totaled $14.62 million, down 29.5% from $20.78 million in the same period of 2024[10] - Exploration expenses for the three months ended September 30, 2025, totaled $7,688,571, slightly lower than $7,802,543 for the same period in 2024[60] - The Company reported total operating expenses of $21,548,123 for the nine months ended September 30, 2025, down from $28,247,551 in the same period of 2024[60] - The company has not generated revenues from its mineral properties, which are still in the exploration stage[22] Stock and Equity Awards - The weighted average number of basic and diluted shares outstanding increased to 112.42 million for the three months ended September 30, 2025, compared to 93.60 million for the same period in 2024, reflecting a 20.0% increase[10] - The company issued 3,024,751 shares of common stock for its ATM program, net of issuance costs, raising approximately $6.83 million[18] - The Company raised approximately $35.1 million through a public offering by issuing 12,400,000 shares at a price of $2.83 per share, incurring share issuance costs of approximately $2.4 million[43] - The Company granted a total of 2,542,802 equity awards during the nine months ended September 30, 2025, compared to 1,808,127 in the same period of 2024[48] Compensation and Tax Rates - The company recognized stock-based compensation expense of $946,916 for the three months ended September 30, 2025[37] - Total stock-based compensation expense for the nine months ended September 30, 2025, was $2,373,711, a decrease from $2,859,650 in the same period of 2024[48] - The effective tax rates for the three and nine months ended September 30, 2025, were 0.15% and 0.18%, respectively, which are significantly lower than the statutory federal income tax rate of 21% due to unrecognized benefits from losses incurred[41] Warrants and Options - As of September 30, 2025, the Company had 6,179,840 warrants outstanding with an exercise price of $2.08, set to expire on March 15, 2026[51] - The Company has extended the option period for the Richmond Hill Option Agreement and the Barrick Option until December 31, 2028, with additional cash payments required[35]

Revenue Performance - Total revenues for the three months ended September 30, 2025, were approximately $7.015 million, a decrease of 1.3% compared to $7.107 million for the same period in 2024[103] - Verification and certification service revenue for the nine months ended September 30, 2025, was approximately $15.070 million, down from $15.172 million in 2024, reflecting a decline of 0.7%[103] - Verification and certification service revenue for Q3 2025 increased by $0.1 million compared to Q3 2024, while the nine-month revenue decreased by $0.1 million compared to the same period in 2024[104] - Product sales for Q3 2025 decreased by 9.6% and by 0.5% for the nine months compared to the same periods in 2024[105] - Professional services revenue for Q3 2025 decreased by $35,000 and by $0.1 million for the nine months compared to the same periods in 2024[106] Income and Profitability - Net income for the nine months ended September 30, 2025, was approximately $1.739 million, an increase of 50% compared to $1.159 million for the same period in 2024[103] - Net income attributable to WFCF shareholders for Q3 2025 was approximately $1.1 million, compared to $0.5 million in Q3 2024, representing a significant increase[116] - The company recorded an unrealized gain of approximately $48,000 for Q3 2025 and $144,000 for the nine months[114] - The company recognized a gain of approximately $0.9 million from the sale of its investment in Progressive Beef recorded in the Other Income/Expense section for Q3 2025[113] Cash and Assets - Cash and cash equivalents increased to approximately $4.8 million as of September 30, 2025, compared to $2.0 million at December 31, 2024[93] - Net cash provided by operating activities for the nine months ended September 30, 2025, was approximately $2.3 million, a decrease from $2.8 million during the same period in 2024[94] - The company had total assets of approximately $16.854 million as of September 30, 2025, slightly down from $16.946 million at the end of 2024[103] - The company had no off-balance sheet arrangements as of September 30, 2025[102] Expenses and Costs - The company reported total costs of revenues for the nine months ended September 30, 2025, at approximately $11.509 million, compared to $11.323 million in 2024, indicating an increase of 1.6%[103] - Gross margin for Q3 2025 was 39.7%, down from 40.1% in Q3 2024, while the nine-month gross margin decreased from 41.8% to 40.1%[107] - Other operating expenses for Q3 2025 were approximately $2.0 million, consistent with Q3 2024, while nine-month expenses decreased from $5.8 million to $5.6 million[110] - The company experienced inflationary price increases from manufacturers affecting product costs, with product costs for the nine months at approximately $1.8 million in 2025 compared to $1.7 million in 2024[108] Strategic Focus - The company plans to focus on diversification and bundling opportunities in product offerings, as well as potential acquisitions to drive growth[100] Workforce Composition - The company’s workforce comprised 101 employees, with approximately 84% being female and other minority employees[85] Dividend Income - The company received dividend income from Progressive Beef of $50,000 for Q3 2025, down from $150,000 for the same period in 2024[112]

Financial Performance - For the three months ended September 30, 2025, the company reported a net loss of $2,288,322, with operating costs of $3,825,776 and interest income of $1,537,454 from marketable securities [134]. - For the nine months ended September 30, 2025, the company achieved a net income of $940,982, driven by interest income of $8,282,080, offset by operating costs of $7,341,098 [134]. Initial Public Offering - The company completed its Initial Public Offering on July 18, 2023, raising gross proceeds of $305,000,000 from the sale of 30,500,000 units at $10.00 per unit [138]. - The company also sold 9,540,000 private placement warrants at $1.00 each, generating an additional $9,540,000 in gross proceeds [138]. - The company incurred transaction costs of $17,966,142 related to the Initial Public Offering, including $6,100,000 in cash underwriting discounts and $10,675,000 in deferred underwriting fees [140]. Cash and Assets - As of September 30, 2025, the company had cash held in the trust account amounting to $154,158,677, which includes $8,282,080 of interest income [142]. - As of September 30, 2025, the company had cash of $629,566 held outside the trust account, intended for operational expenses [143]. - As of September 30, 2025, the fair value of cash and marketable securities held in the Trust Account amounts to $154,158,677, down from $331,781,130 as of December 31, 2024, indicating a decrease of approximately 53% [151]. Debt and Obligations - The company issued a $2,000,000 unsecured promissory note to Nabors Lux 2 S.a.r.l. for additional working capital, which may be converted into warrants at $1.00 per warrant [129]. - The company has no long-term debt or off-balance sheet arrangements as of September 30, 2025, and has a monthly obligation of $15,000 for office-related expenses [148]. Business Combination - The company has extended the deadline for consummating its initial business combination multiple times, with the latest extension to November 18, 2025 [128]. Fair Value Measurements - The over-allotment option liability, initially measured at fair value of $402,224, was derecognized on August 27, 2023, following the expiration of the option to purchase 4,000,000 Units [152]. - The fair value of public warrants at issuance amounted to $3,507,500, which is recorded as a component of additional paid-in capital for equity-classified warrants [154].

Revenue Growth - Q3 2025 revenue increased 2.5% to $7.2 million compared to $7.0 million in Q3 2024[6] - Direct patient care services revenue for Q3 2025 increased 9.4% to $4.0 million, representing 56% of total sales[7] - Revenue for the first nine months of 2025 increased 5.6% to $20.4 million compared to $19.3 million in the same period of 2024[11] - Direct patient care services revenue for the first nine months of 2025 increased 36.5% to $10.7 million[12] Profitability and Loss - Q3 2025 EBITDA increased 42.3% to $1.94 million compared to $1.37 million in Q3 2024[4] - Net loss for Q3 2025 decreased 91.8% to $17,000 from a loss of $207,000 in Q3 2024[9] - Net loss attributable to American Shared Hospital Services for the three months ended September 30, 2025, was $(17,000) compared to $(207,000) for the same period in 2024[30] - Total net income for the nine months ended September 30, 2025, was $(922,000), compared to $3,514,000 in 2024[30] Expenses - Interest expense for the nine months ended September 30, 2025, was $1,253,000, up from $1,070,000 in 2024[30] - Depreciation and amortization expense for the nine months ended September 30, 2025, was $4,411,000, slightly down from $4,501,000 in 2024[30] - Stock-based compensation expense for the three months ended September 30, 2025, was $101,000, compared to $88,000 in 2024[30] Cash and Assets - Cash and cash equivalents decreased to $5.3 million as of September 30, 2025, from $11.3 million at December 31, 2024[17] - Loss on write down of impaired assets and associated removal costs was $0 for the three months ended September 30, 2025, compared to $188,000 in 2024[30] - Bargain purchase gain, net, was $0 for the three months ended September 30, 2025, compared to $(263,000) in 2024[30] Tax and Interest Income - Income tax benefit for the three months ended September 30, 2025, was $48,000, compared to a benefit of $(169,000) in 2024[30] - Interest income for the nine months ended September 30, 2025, was $(157,000), down from $(252,000) in 2024[30] Business Developments - The company signed a 10-year extension with an existing health system for the latest model Gamma Knife System[3] - The new radiation therapy center in Puebla, Mexico has shown significant revenue growth since its opening[3]

Financial Performance - Net sales for Q3 2025 were $2,748, an increase of $236, or 9.4%, from $2,512 in Q3 2024[66] - Gross profit for Q3 2025 was $1,458, an increase of $193, or 15.3%, compared to Q3 2024, with a gross margin of 53.1%[67] - Total operating expenses for Q3 2025 increased by $185, or 16.9%, to $1,277, representing 46.5% of net sales[68] - Income before income tax expense decreased to $272 in Q3 2025, down $18 from $290 in Q3 2024[71] Non-Operating Income - Net non-operating income decreased by $26, or 22.2%, for Q3 2025 compared to Q3 2024, primarily due to lower interest income[70] Cash Flow - Cash and cash equivalents were $10,571 as of September 30, 2025, up from $9,948 at December 31, 2024[73] - Cash from operating activities for the nine months ended September 30, 2025, was $642, an increase of $236 from $406 in the same period of 2024[74] Expenses - Selling and marketing expenses in Q3 2025 increased by $94 to $434, or 27.6%, from Q3 2024[76] Growth Strategy - The company continues to seek growth opportunities through internal product development and external acquisitions[80] Off-Balance Sheet Arrangements - The company had no off-balance sheet arrangements or transactions as of September 30, 2025[81]

Sales Performance - Net sales for the three-month period ended September 30, 2025, were approximately $2,953,000, representing a 16% increase from $2,540,000 in the same period of 2024[69] - For the nine-month period ended September 30, 2025, net sales were $13,212,000, an increase of 12% from $11,788,000 in the same period of 2024[71] - Revenues from foil balloons increased to $2,352,000 for the three months ended September 30, 2025, compared to $2,322,000 in 2024, reflecting a 1% increase[73] - Revenues from film products rose significantly to $253,000 for the three months ended September 30, 2025, from $129,000 in 2024, marking a 96% increase[74] Cost and Expenses - The cost of sales for the three months ended September 30, 2025, was $2,886,000, representing 98% of sales, compared to 101% in the same period of 2024[79] - General and administrative expenses increased to $869,000 for the three months ended September 30, 2025, from $751,000 in 2024, primarily due to higher legal expenses[80] Liquidity and Cash Flow - The company maintained senior secured credit facilities totaling $7.0 million in revolving credit and $0.7 million in term loans as of September 30, 2025[64] - As of September 30, 2025, the company had $4.6 million outstanding on the revolving facility and $0.6 million on the term loan, with $2.4 million of remaining borrowing capacity[67] - Net cash provided by operations during the nine months ended September 30, 2025, was $2,300,000, compared to $862,000 in the same period of 2024[83] - The company received a dispute settlement amount of $315,000 during the three months ended September 30, 2025, contributing to other income[82] - Cash used in investing activities was $68,000 in 2025, down from $302,000 in 2024[85] - Cash used in financing activities was $2,065,000 in 2025, compared to $1,476,000 in 2024[86] - Cash balances increased to $387,000 at September 30, 2025, compared to $5,000 for the same period in 2024[87] - The primary sources of liquidity include cash and cash equivalents, as well as availability under the Credit Agreement[89] Accounts and Inventory - Accounts receivable decreased by $2,712,000 in the nine months ended September 30, 2025, compared to a decrease of $1,779,000 in the same period of 2024[84] - Inventory increased by $187,000 in 2025, compared to an increase of $61,000 in 2024[84] Going Concern - The company faces substantial doubt about its ability to continue as a going concern for one year from the issuance of the financial statements[88] Seasonal Sales - Sales in the foil balloon product line are historically seasonal, with approximately 40% occurring from December through March[90]

Financial Performance - Net sales for the three-month period ended September 30, 2025, were approximately $2,953,000, representing a 16% increase from $2,540,000 in the same period of 2024[69] - For the nine-month period ended September 30, 2025, net sales were $13,212,000, an increase of 12% from $11,788,000 in 2024[71] - Revenues from foil balloons increased to $2,352,000 for the three months ended September 30, 2025, compared to $2,322,000 in 2024, driven by shipment timing[73] - Revenues from film products rose to $253,000 for the three months ended September 30, 2025, up from $129,000 in 2024, reflecting a 96% increase[74] Cost and Expenses - Cost of sales for the three months ended September 30, 2025, was $2,886,000, representing 98% of sales, compared to 101% in the same period of 2024[79] - General and administrative expenses increased to $869,000 for the three months ended September 30, 2025, from $751,000 in 2024, primarily due to higher legal expenses[80] Liquidity and Debt - The company maintained senior secured credit facilities totaling $7.0 million in revolving credit and $0.7 million in term loans as of September 30, 2025[64] - As of September 30, 2025, the company had $4.6 million outstanding on the revolving facility and $0.6 million on the term loan, with $2.4 million of remaining borrowing capacity[67] - The primary sources of liquidity include cash and cash equivalents, as well as availability under the Credit Agreement[89] Compliance and Concerns - The company received a notice from Nasdaq regarding non-compliance with the minimum bid price, but regained compliance by October 21, 2025[61][63] - The company faces substantial doubt about its ability to continue as a going concern for one year from the issuance of the financial statements[88] Cash Flow and Working Capital - Net cash provided by operations during the nine months ended September 30, 2025, was $2,300,000, compared to $862,000 in the same period of 2024[83] - Accounts receivable decreased by $2,712,000 in the nine months ended September 30, 2025, compared to a decrease of $1,779,000 in the same period of 2024[84] - Inventory increased by $187,000 during the same period, compared to an increase of $61,000 in 2024[84] - Cash used in investing activities was $68,000 for the nine months ended September 30, 2025, down from $302,000 in 2024[85] - Cash used in financing activities was $2,065,000 in 2025, compared to $1,476,000 in 2024[86] - Cash balances increased to $387,000 as of September 30, 2025, compared to $5,000 in the same period of 2024[87] Seasonal Trends - Sales in the foil balloon product line are historically seasonal, with approximately 40% occurring from December through March[90]

Financial Performance - Distributable income for the three months ended September 30, 2025, was $453,318, down 70.3% from $1,521,252 in the same period of 2024[12] - For the nine months ended September 30, 2025, distributable income totaled $3,129,804, a decrease of 28.3% compared to $4,360,224 for the same period in 2024[12] - The net profits income for the three months ended September 30, 2025, was $761,552, a significant drop of 55.2% from $1,697,724 in the prior year[12] - For the quarter ended September 30, 2025, net profits income decreased by 55% to $761,552 compared to $1,697,724 for the same quarter in 2024, primarily due to decreased oil and gas production and lower oil prices[35] - For the nine months ended September 30, 2025, net profits income was $4,108,712, a 19% decrease from $5,100,336 in the same period of 2024[38] - Total revenues for the quarter were $2,774,186, a 40% decrease from $4,588,397 in the third quarter of 2024[43] Asset and Trust Information - As of September 30, 2025, total assets amounted to $3,723,615, a decrease from $3,806,934 as of December 31, 2024, representing a decline of approximately 2.2%[10] - The trust corpus at the end of the period was $2,233,097, down from $2,477,975 at the end of September 2024, reflecting a decrease of approximately 9.9%[14] - The trust has not recorded any impairment of net profits interests as of September 30, 2025, indicating stable asset valuation[20] - The trust's financial statements are prepared on a modified cash basis, differing from U.S. GAAP, which may affect revenue and expense recognition[16] Production and Sales - Oil sales volumes decreased by 20% in the third quarter and 11% in the nine-month period, primarily due to natural production decline[44] - Gas sales volumes decreased by 47% in the third quarter and 26% in the nine-month period, attributed to timing of cash receipts and natural production decline[45] - The average oil price for the third quarter decreased by 20% to $62.21 per Bbl, while the average gas price remained flat at $3.65 per Mcf[47][48] - The estimated rate of natural production decline on the underlying oil and gas properties is approximately 6 to 8 percent per year[46] Expenses and Costs - Administrative expenses for the quarter decreased by $19,973 from the prior year quarter, primarily due to timing of Trust expenses[36] - Production expenses decreased by 17% in Q3 due to lower gas processing costs and maintenance expenses, while increasing by 1% for the nine-month period primarily due to higher labor and fuel costs[50] - Development costs related to properties with 75% net profits interests decreased by 58% in Q3 and 89% for the nine-month period, mainly due to the absence of drilling activity costs in the second half of 2023[51] - Cumulative excess costs remaining at September 30, 2025, totaled $5.1 million, including accrued interest of $1.4 million[29] - Cumulative excess costs for the Texas working interest conveyance as of September 30, 2025, totaled $5.1 million, including accrued interest of $1.4 million[53] Risk and Compliance - The Trust's disclosure controls and procedures are effective in ensuring timely reporting of required information under the Securities Exchange Act of 1934[57] - There have been no material changes in the risk factors disclosed in the Trust's Annual Report for the year ended December 31, 2024[59]