UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-42204 EXOZYMES INC. (Exact name of registrant as specified in its charter) Nevada 83-4550057 (State or other jurisdiction of incorporation or organization) 750 Royal Oaks Dr ...

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited H1 2025 financials show total assets surged to **$636.7 million** from financing, achieving **$3.0 million** net income despite revenue decline and wider operating loss [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets surged to **$636.7 million** driven by cash and investments, with equity increasing and liabilities decreasing Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $57,183 | $67,674 | | Available-for-sale investments | $514,459 | $149,488 | | Total current assets | $433,579 | $206,758 | | Total assets | $636,690 | $284,787 | | **Liabilities & Stockholders' Equity** | | | | Total current liabilities | $10,430 | $11,867 | | Derivative warrant liabilities | $60,116 | $93,095 | | Earn-out liabilities | $6,371 | $45,897 | | Total liabilities | $83,427 | $158,198 | | Total stockholders' equity | $553,263 | $126,589 | | Total liabilities and stockholders' equity | $636,690 | $284,787 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenue decreased and operating loss widened, but H1 2025 achieved **$3.0 million** net income primarily due to non-operating fair value gains Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,801 | $3,086 | $3,273 | $6,138 | | Gross Profit | $566 | $1,990 | $1,008 | $3,490 | | Loss from Operations | $(19,882) | $(16,085) | $(41,514) | $(32,670) | | Net Income (Loss) | $(39,654) | $(12,421) | $2,965 | $(33,194) | | Net Income (Loss) per Share - basic | $(0.13) | $(0.07) | $0.01 | $(0.21) | - The significant swing to **net income** for the six months ended June 30, 2025, was primarily due to **non-operating gains** from changes in the fair value of derivative warrant liabilities (**+$32.7M**) and earn-out liabilities (**+$6.6M**)[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw **$389.1 million** cash inflow from financing, offsetting operating and investing outflows, ending with **$57.2 million** cash and equivalents Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(29,820) | $(26,656) | | Net cash used in investing activities | $(369,732) | $(7,033) | | Net cash provided by financing activities | $389,095 | $33,093 | | Net decrease in cash and cash equivalents | $(10,491) | $(708) | | Cash and cash equivalents – end of period | $57,183 | $20,684 | - **Financing activities** were the **primary source of cash**, with **$346.7 million** from an **ATM offering** and **$35.0 million** from a **private placement with Quanta**[27](index=27&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the anticipated loss of EGC status, significant financing activities including a **$350 million** ATM offering, a **$35 million** Quanta private placement, and high revenue concentration from government entities - The company will **lose its 'Emerging Growth Company' (EGC) and 'smaller reporting company' status** as of **December 31, 2025**, which will lead to **increased disclosure requirements and compliance costs**, including an **auditor's attestation on internal controls**[37](index=37&type=chunk) - In May 2025, the company completed an **At-the-Market (ATM) offering**, raising gross proceeds of **$350 million** from the sale of **30.3 million shares** at a weighted average price of **$11.55 per share**[95](index=95&type=chunk)[96](index=96&type=chunk) - A **collaboration agreement** was signed with **Quanta Computer Inc.** in February 2025, involving **mutual commitments to invest at least $250 million each** in quantum computing over **five years**, and Rigetti completed a **$35 million private placement** with Quanta[137](index=137&type=chunk)[138](index=138&type=chunk)[140](index=140&type=chunk) - Revenue is **highly concentrated**, with sales to **government entities** comprising **90.7% of total revenue** for the six months ended June 30, 2025, and **Four customers (B, C, D, F)** accounted for **95% of accounts receivable** as of June 30, 2025[126](index=126&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses H1 2025 revenue decline and wider operating loss, offset by non-cash gains leading to net income, with liquidity bolstered by **$350 million** ATM and **$35 million** private placement, alongside quantum computing milestones [Overview and Recent Developments](index=27&type=section&id=Overview%20and%20Recent%20Developments) Rigetti, building quantum computers, focuses on QPUs/QCaaS, with recent **$350 million** ATM offering, Quanta collaboration, and achieved **99.5%** two-qubit gate fidelity milestone - The company's **long-term business model** centers on revenue from sales of **quantum processing units (QPUs)** and **Quantum Computing as a Service (QCaaS)**, but the majority of current revenues are from **development contracts**[147](index=147&type=chunk) - On July 16, 2025, the company announced it achieved its **mid-year performance milestone** of **99.5% median two-qubit gate fidelity** on a **modular 36-qubit system** and expects to release a **100+ qubit chiplet-based system** with similar fidelity before the end of 2025[152](index=152&type=chunk) - The company completed a **$350 million At-the-Market (ATM) offering** in Q2 2025, raising net proceeds of **$346.7 million**[154](index=154&type=chunk) - A **collaboration agreement with Quanta** was established, involving a **$35 million private placement** and a commitment for each party to **invest at least $250 million** in quantum computing over five years[155](index=155&type=chunk)[157](index=157&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) H1 2025 revenue decreased by **47%**, gross profit fell by **71%**, and operating expenses rose by **18%**, leading to a wider **$41.5 million** operating loss, though non-cash gains resulted in **$3.0 million** net income Comparison of Results for the Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $3,273 | $6,138 | $(2,865) | (47)% | | Gross Profit | $1,008 | $3,490 | $(2,482) | (71)% | | Research and development | $28,977 | $23,341 | $5,636 | 24% | | Selling, general and administrative | $13,545 | $12,819 | $726 | 6% | | Loss from operations | $(41,514) | $(32,670) | $(8,844) | 27% | | Total other income (expense), net | $44,479 | $(524) | $45,003 | NM | | Net income (loss) | $2,965 | $(33,194) | $36,159 | (109)% | - The **decrease in revenue** was mainly due to **reductions in collaborative research and professional services contracts**, impacted by the **pending reauthorization of the National Quantum Initiative Act**[168](index=168&type=chunk) - The **increase in R&D expenses** was mainly due to a **$3.2 million increase in salaries and employee-related costs** and a **$1.1 million increase in stock-based compensation**[175](index=175&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Despite historical losses and a **$551.8 million** accumulated deficit, management believes current liquidity, bolstered by **$389.1 million** from financing, is sufficient for 12 months, with future **$250 million** Quanta collaboration commitments - The company believes its existing cash, cash equivalents, and available-for-sale investments are **sufficient to meet operating needs for at least the next 12 months**[188](index=188&type=chunk) - Cash provided by **financing activities** totaled **$389.1 million** for the six months ended June 30, 2025, primarily from the **ATM offering** and the **Quanta private placement**[206](index=206&type=chunk) - **Long-term cash requirements** include a commitment to **invest at least $250.0 million** in quantum computing over a **five-year period** as part of the **Collaboration Agreement with Quanta**[192](index=192&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) As a smaller reporting company, the company is exempt from providing quantitative and qualitative disclosures about market risks - As a **smaller reporting company**, Rigetti is **not required to provide quantitative and qualitative disclosures about market risk**[217](index=217&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were **effective at a reasonable assurance level**[219](index=219&type=chunk) - **No material changes in internal control over financial reporting** occurred during the quarter ended June 30, 2025[220](index=220&type=chunk) [PART II — OTHER INFORMATION](index=36&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - The company is **not currently involved in any material legal proceedings**[223](index=223&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) A key risk is the loss of 'emerging growth company' and 'smaller reporting company' status after **December 31, 2025**, leading to increased compliance requirements and costs - A new material risk is that the company will **lose its 'emerging growth company' (EGC) and 'smaller reporting company' status** as of **December 31, 2025**[225](index=225&type=chunk) - The loss of EGC status will subject the company to **increased compliance requirements**, such as **auditor attestation of internal controls** under Sarbanes-Oxley Act Section 404(b) and **more detailed executive compensation disclosures**, leading to **higher compliance costs**[226](index=226&type=chunk)[230](index=230&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the period - None[227](index=227&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) Two board members, Thomas Iannotti and Gail Sandford, adopted Rule 10b5-1 trading plans for common stock sales - On May 15, 2025, director **Thomas Iannotti** adopted a **trading plan** for the sale of **up to 200,000 shares** of Common Stock, scheduled to terminate by **August 13, 2026**[232](index=232&type=chunk) - On June 12, 2025, director **Gail Sandford** adopted a **trading plan** for the sale of shares, scheduled to terminate by **September 10, 2026**[233](index=233&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and interactive data files

[Financial Highlights & Management Commentary](index=1&type=section&id=1.%20Financial%20Highlights%20%26%20Management%20Commentary) This section presents Intellicheck's record second-quarter 2025 financial performance, management's strategic insights, and a snapshot of the company's financial position [Second Quarter 2025 Financial Highlights](index=1&type=section&id=1.1.%20Second%20Quarter%202025%20Financial%20Highlights) Intellicheck reported record second-quarter 2025 financial results, with total revenue growing 10% year-over-year and SaaS revenue also increasing by 10%. The company achieved positive Adjusted EBITDA for the quarter, marking a significant improvement from the prior year, despite an increase in operating expenses and a higher net loss Q2 2025 Key Financial Performance (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Total Revenue | $5,123,000 | $4,672,000 | +10% | | SaaS Revenue | $5,080,000 | $4,627,000 | +10% | | Gross Profit % | 90% | 91% | -1 ppts | | Operating Expenses | $4,898,000 | $4,443,000 | +10% | | Net Loss | ($251,000) | ($127,000) | -97.6% | | Diluted EPS | ($0.01) | ($0.01) | 0% | | Adjusted EBITDA | $75,000 | ($70,000) | +$145,000 | [Management Commentary & Strategic Focus](index=1&type=section&id=1.2.%20Management%20Commentary%26%20Strategic%20Focus) CEO Bryan Lewis highlighted the company's success in expanding its market presence and securing multiple multiyear agreements with prominent financial services clients, underscoring the value of its identity verification technology in fraud prevention and customer onboarding - Achieved another record quarter by successfully expanding presence in new and existing market verticals[3](index=3&type=chunk) - Signed multiple multiyear agreements with prominent financial services clients[3](index=3&type=chunk) - Identity verification technology boasts a **99.975% decisioning success rate** in stopping fraud[3](index=3&type=chunk) - Future growth will be driven by a keen focus on sales and marketing efforts[4](index=4&type=chunk) [Financial Position Snapshot](index=2&type=section&id=1.3.%20Financial%20Position%20Snapshot) As of June 30, 2025, Intellicheck maintained a healthy cash position and stable stockholders' equity Financial Position as of June 30, 2025 | Metric | Amount | | :------------------- | :----------- | | Cash and Cash Equivalents | $8.6 million | | Stockholders' Equity | $18.0 million | [Condensed Financial Statements](index=4&type=section&id=2.%20Condensed%20Financial%20Statements) This section provides detailed condensed balance sheets, statements of operations, stockholders' equity, and cash flows for the reported periods [Condensed Balance Sheets](index=4&type=section&id=2.1.%20Condensed%20Balance%20Sheets) The balance sheet shows an increase in total assets primarily driven by a significant rise in cash and cash equivalents, while total liabilities also increased due to higher deferred revenue. Stockholders' equity saw a modest increase Condensed Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :-------------- | :---------------- | :----- | | Cash and cash equivalents | $8,573 | $4,666 | +$3,907 | | Accounts receivable, net | $2,676 | $4,675 | -$1,999 | | Total current assets | $12,143 | $9,912 | +$2,231 | | Total assets | $23,066 | $20,933 | +$2,133 | | Deferred revenue | $3,038 | $1,001 | +$2,037 | | Total current liabilities | $5,061 | $3,186 | +$1,875 | | Total liabilities | $5,061 | $3,186 | +$1,875 | | Total stockholders' equity | $18,005 | $17,747 | +$258 | [Condensed Statements of Operations](index=6&type=section&id=2.2.%20Condensed%20Statements%20of%20Operations) For the three and six months ended June 30, 2025, Intellicheck experienced revenue growth but also saw an increase in operating expenses, particularly in research and development, leading to higher operating losses and net losses compared to the prior year periods Condensed Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $5,123 | $4,672 | $10,017 | $9,352 | | Gross profit | $4,600 | $4,228 | $8,992 | $8,473 | | Selling, general and administrative | $3,535 | $3,608 | $6,988 | $7,544 | | Research and development | $1,363 | $835 | $2,650 | $1,653 | | Total operating expenses | $4,898 | $4,443 | $9,638 | $9,197 | | Loss from operations | ($298) | ($215) | ($646) | ($724) | | Net loss | ($251) | ($127) | ($569) | ($569) | | Loss per common share - Basic/Diluted | ($0.01) | ($0.01) | ($0.03) | ($0.03) | [Condensed Statements of Stockholders' Equity](index=8&type=section&id=2.3.%20Condensed%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased slightly for both the three and six months ended June 30, 2025, primarily due to stock-based compensation and stock option exercises, partially offset by the net loss incurred during these periods Condensed Statements of Stockholders' Equity (in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | March 31, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | :------------- | | Total Stockholders' Equity (Q2) | $18,005 | $17,608 | $17,307 | $17,178 | | Stock-based compensation (Q2) | $202 | - | $256 | - | | Stock option exercises (Q2) | $446 | - | $0 | - | | Net loss (Q2) | ($251) | - | ($127) | - | | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | December 31, 2023 | | :-------------------------- | :------------ | :---------------- | :------------ | :---------------- | | Total Stockholders' Equity (YTD) | $18,005 | $17,747 | $17,307 | $17,276 | | Stock-based compensation (YTD) | $381 | - | $600 | - | | Stock option exercises (YTD) | $446 | - | $0 | - | | Net loss (YTD) | ($569) | - | ($569) | - | [Condensed Statements of Cash Flows](index=12&type=section&id=2.4.%20Condensed%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company generated significant net cash from operating activities, primarily due to a decrease in accounts receivable and an increase in deferred revenue, leading to a substantial net increase in cash compared to the prior year Condensed Statements of Cash Flows (in thousands) - Six Months Ended June 30 | Metric | 2025 | 2024 | | :------------------------------------------ | :--- | :--- | | Net cash provided by (used in) operating activities | $3,884 | ($312) | | Net cash (used in) provided by investing activities | ($232) | $3,592 | | Net cash provided by financing activities | $255 | $0 | | Net increase in cash | $3,907 | $3,280 | | CASH, end of period | $8,573 | $7,260 | [Non-GAAP Financial Measures Reconciliation](index=14&type=section&id=3.%20Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles non-GAAP financial measures, including Adjusted EBITDA and Adjusted Gross Profit, to their most directly comparable GAAP measures [Adjusted EBITDA](index=14&type=section&id=3.1.%20Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, improved significantly to a positive $75,000 for Q2 2025, compared to a loss of ($70,000) in Q2 2024, reflecting operational strength by excluding non-cash and non-operating charges - Adjusted EBITDA is a non-GAAP measure used to supplement GAAP results, providing an additional tool for investors to compare financial results by excluding non-cash charges (amortization, depreciation, stock-based compensation) and non-operating charges (interest, income taxes)[16](index=16&type=chunk)[17](index=17&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | ($251) | ($127) | ($569) | ($569) | | Provision for income taxes | $0 | $0 | $0 | $2 | | Other income, net | ($47) | ($88) | ($77) | ($157) | | Depreciation and amortization | $171 | $73 | $325 | $145 | | Stock-based compensation | $202 | $72 | $379 | $405 | | **Adjusted EBITDA** | **$75** | **($70)** | **$58** | **($174)** | [Adjusted Gross Profit](index=14&type=section&id=3.2.%20Adjusted%20Gross%20Profit) Adjusted Gross Profit, a non-GAAP measure, increased for both the three and six months ended June 30, 2025, reflecting improved current operating performance by excluding amortization expense allocable to cost of revenues - Adjusted Gross Profit is a non-GAAP measure that adjusts gross profit by excluding amortization expense, focusing on current operating performance as amortization reflects historical software development costs[19](index=19&type=chunk)[20](index=20&type=chunk) Adjusted Gross Profit Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $5,123 | $4,672 | $10,017 | $9,352 | | Cost of revenue, exclusive of amortization | $401 | $421 | $800 | $832 | | Amortization allocable to cost of revenues | $122 | $23 | $225 | $47 | | Gross Profit | $4,600 | $4,228 | $8,992 | $8,473 | | Add: Amortization allocable to cost of revenues | $122 | $23 | $225 | $47 | | **Adjusted Gross Profit** | **$4,722** | **$4,251** | **$9,217** | **$8,520** | | Gross profit as a percentage of revenues | 89.8% | 90.5% | 89.8% | 90.6% | | Adjusted Gross Profit as a percentage of revenues | 92.2% | 91.0% | 92.0% | 91.1% | [Company Information & Disclosures](index=2&type=section&id=4.%20Company%20Information%20%26%20Disclosures) This section provides an overview of Intellicheck, conference call details, a safe harbor statement, and contact information for stakeholders [About Intellicheck](index=17&type=section&id=4.1.%20About%20Intellicheck) Intellicheck is an industry leader in identity verification management, providing SaaS-based solutions that utilize proprietary analysis of DMV-issued IDs to prevent identity-based fraud across various sectors - Intellicheck is an industry-leading identity verification management company[23](index=23&type=chunk) - Offers SaaS-based validation and proofing services using proprietary analysis of DMV-issued IDs[23](index=23&type=chunk) - Validates approximately **100 million identities annually** across North America with **99.75% decisioning accuracy** in under a second[23](index=23&type=chunk) [Conference Call Information](index=2&type=section&id=4.2.%20Conference%20Call%20Information) Intellicheck hosted an earnings conference call on August 12, 2025, to discuss its operating results, with a replay available for a limited period - Earnings conference call held on **August 12, 2025, at 4:30 p.m. ET/1:30 p.m. PT**[9](index=9&type=chunk) - Dial-in numbers: **877-407-8037** (U.S.) and **201-689-8037** (International)[9](index=9&type=chunk) - Replay available until **August 19, 2025**, using conference ID **13754628**[10](index=10&type=chunk) [Safe Harbor Statement](index=17&type=section&id=4.3.%20Safe%20Harbor%20Statement) This section provides a standard Safe Harbor Statement, indicating that statements about Intellicheck's future expectations are forward-looking and subject to various risks and uncertainties, and the company does not undertake to update them - Statements regarding future expectations, product advantages, revenue improvement, market acceptance, and strategic execution are forward-looking statements[24](index=24&type=chunk) - Actual results may differ materially due to factors such as market acceptance, demand levels, ability to manage expenses, successful expansion, research and development, inflation, intellectual property rights, regulatory changes, and security breaches[24](index=24&type=chunk) - The company does not assume any obligation to update forward-looking information[24](index=24&type=chunk) [Contact Information](index=17&type=section&id=4.4.%20Contact%20Information) Contact details for investor relations and media inquiries are provided for interested parties - Investor Relations Contact: Gar Jackson at **(949) 873-2789** or gjackson@intellicheck.com[23](index=23&type=chunk) - Media and Public Relations Contact: Sharon Schultz at **(302) 539-3747** or sschultz@intellicheck.com[23](index=23&type=chunk)

Exhibit 99.1 Verrica Pharmaceuticals Reports Second Quarter 2025 Financial Results – Company reports $12.7 million in revenue in Q2'25, consisting primarily of $4.5 million in YCANTH® revenue, net, reflecting sequential growth of 32.5% over Q1'25 and $8.0 million in milestone revenue from Torii Pharmaceutical – – Completed Successful End of Phase 2 Meeting for VP-315 for Basal Cell Carcinoma; Company is preparing for the Phase 3 program and exploring non-dilutive opportunities for financing further developm ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's analysis, market risk, and internal controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, operations, comprehensive income, equity, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and shareholders' equity at specific dates Condensed Consolidated Balance Sheets Data | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Total assets | $2,814,029 | $1,931,927 | | Total liabilities | $1,945,969 | $1,498,768 | | Total shareholders' equity | $868,060 | $433,159 | - Total assets increased by approximately **$882 million**, driven by significant increases in cash and cash equivalents, restricted cash, and prepaid reinsurance premiums[8](index=8&type=chunk) - Shareholders' equity more than doubled, primarily due to the Initial Public Offering (IPO) proceeds and retained earnings[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's revenues, expenses, and net income for the reported periods Condensed Consolidated Statements of Operations Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Gross premiums written | $435,384 | $348,336 | $713,633 | $592,964 | | Net premiums earned | $243,859 | $194,966 | $509,900 | $383,074 | | Total revenue | $261,607 | $209,131 | $543,200 | $408,257 | | Net income | $70,072 | $53,742 | $162,575 | $108,455 | | Basic income earnings per share | $1.05 | $0.96 | $2.63 | $1.93 | | Diluted income earnings per share | $0.56 | $0.45 | $1.30 | $0.90 | - Net income increased by **30.4%** for the three months ended June 30, 2025, and by **49.9%** for the six months ended June 30, 2025, compared to the respective prior-year periods[10](index=10&type=chunk) - Gross premiums written saw a **25.0%** increase for the three-month period and a **20.4%** increase for the six-month period year-over-year[10](index=10&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section outlines the company's net income and other comprehensive income components for the periods Condensed Consolidated Statements of Comprehensive Income Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Net income | $70,072 | $53,742 | $162,575 | $108,455 | | Other comprehensive gain (loss) | $1,551 | $(1,322) | $5,026 | $(2,909) | | Comprehensive income | $71,623 | $52,420 | $167,601 | $105,546 | - The company reported a significant shift from other comprehensive loss in **2024** to a gain in **2025**, primarily due to unrealized gains on securities[12](index=12&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) This section details changes in the company's shareholders' equity, including common stock, preferred stock, and retained earnings Condensed Consolidated Statements of Shareholders' Equity Data | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Common Stock | $1,252 | $562 | | Preferred Stock | $0 | $514 | | Additional Paid-in Capital | $389,731 | $122,607 | | Retained Earnings | $471,766 | $309,191 | | Accumulated Other Comprehensive Income | $5,311 | $285 | | Total Shareholders' Equity | $868,060 | $433,159 | - Total shareholders' equity increased significantly from **$433.2 million** at December 31, 2024, to **$868.1 million** at June 30, 2025, primarily driven by the Initial Public Offering (IPO) and retained earnings[15](index=15&type=chunk)[17](index=17&type=chunk) - All preferred stock was converted to common stock upon the completion of the IPO, leading to a substantial increase in common stock shares and additional paid-in capital[15](index=15&type=chunk)[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Data | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---| | Net cash provided by operating activities | $350,429 | $275,336 | | Net cash provided by (used in) investing activities | $17,488 | $(146,356) | | Net cash provided by financing activities | $257,989 | $7,227 | | Net increase in cash | $625,906 | $136,207 | | Cash, cash equivalents and restricted cash, end of period | $1,415,748 | $578,569 | - Net cash provided by operating activities increased by **$75.1 million**, driven by higher net income and increased reinsurance premiums payable[20](index=20&type=chunk) - Investing activities shifted from a net outflow of **$146.4 million** in **2024** to a net inflow of **$17.5 million** in **2025**, primarily due to reduced purchases of fixed-maturity securities[20](index=20&type=chunk) - Financing activities saw a substantial increase in cash provided, from **$7.2 million** to **$258.0 million**, largely due to proceeds from the Initial Public Offering (IPO)[20](index=20&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies, business operations, and financial instrument valuations [1. Nature of Business and Significant Accounting Policies](index=9&type=section&id=1.%20Nature%20of%20Business%20and%20Significant%20Accounting%20Policies) This section describes the company's core business, its property and casualty insurance focus, and key accounting principles - Slide Insurance Holdings, Inc (SIH) is a Delaware holding company focused on property and casualty insurance, primarily homeowners insurance in Florida and South Carolina through its subsidiary, Slide Insurance Company (SIC)[23](index=23&type=chunk)[31](index=31&type=chunk) - The company completed its Initial Public Offering (IPO) on June 18, 2025, selling **16.7 million shares** and receiving net proceeds of approximately **$263.5 million**. All preferred stock was converted to common stock upon IPO completion[36](index=36&type=chunk) - SIH participates in Florida's 'take-out program,' assuming policies from Citizens Property Insurance Corporation. For the six months ended June 30, 2025, the company assumed approximately **26,400 policies**, representing **$104.8 million** in annualized gross premiums[38](index=38&type=chunk) [2. Basic and Diluted Earnings Per Share](index=14&type=section&id=2.%20Basic%20and%20Diluted%20Earnings%20Per%20Share) This section details the calculation and presentation of basic and diluted earnings per share for the reporting periods 2. Basic and Diluted Earnings Per Share Data | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Basic earnings per share | $1.05 | $0.96 | $2.63 | $1.93 | | Diluted earnings per share | $0.56 | $0.45 | $1.30 | $0.90 | | Weighted average shares outstanding (basic, in thousands) | 66,773 | 56,224 | 61,715 | 56,224 | | Diluted weighted average common shares outstanding (in thousands) | 125,979 | 120,457 | 124,792 | 120,580 | - Basic EPS increased by **9.4%** for the three-month period and **36.3%** for the six-month period year-over-year[48](index=48&type=chunk) - Diluted EPS increased by **24.4%** for the three-month period and **44.4%** for the six-month period year-over-year[48](index=48&type=chunk) [3. Fixed-Maturity Securities Available-For-Sale](index=14&type=section&id=3.%20Fixed-Maturity%20Securities%20Available-For-Sale) This section provides information on the company's fixed-maturity securities portfolio, including fair values and investment income 3. Fixed-Maturity Securities Available-For-Sale Data | Category | June 30, 2025 Fair Value (in thousands) | December 31, 2024 Fair Value (in thousands) | |:---|:---|:---| | U.S. government and agencies | $156,766 | $166,283 | | States, municipalities and political subdivisions | $165,728 | $146,905 | | Corporate Bonds | $128,576 | $150,025 | | Asset-Backed Securities | $3,480 | N/A | | Total | $454,550 | $464,966 | - The company's fixed-maturity securities portfolio decreased slightly in fair value from **$464.9 million** at December 31, 2024, to **$454.5 million** at June 30, 2025[49](index=49&type=chunk)[50](index=50&type=chunk) - Unrealized losses on fixed-maturity securities were primarily caused by interest rate changes, with **43** securities having unrealized losses at June 30, 2025, compared to **125** securities at December 31, 2024[53](index=53&type=chunk)[56](index=56&type=chunk) 3. Fixed-Maturity Securities Available-For-Sale Data | Net Investment Income Category | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Available-for-sale fixed-maturity securities | $5,382 | $4,725 | $10,885 | $8,642 | | Cash and short-term investments | $9,763 | $7,467 | $18,162 | $13,116 | | Total net investment income | $15,040 | $12,151 | $28,848 | $21,714 | [4. Fair Value of Financial Assets and Liabilities](index=17&type=section&id=4.%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities) This section outlines the fair value measurement of financial assets and liabilities using a three-level hierarchy - The company categorizes financial instruments into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs other than Level 1), and **Level 3** (unobservable inputs) for fair value measurement[63](index=63&type=chunk) 4. Fair Value of Financial Assets and Liabilities Data | Asset Category | June 30, 2025 Fair Value (in thousands) | December 31, 2024 Fair Value (in thousands) | |:---|:---|:---| | Cash and cash equivalents (Level 1) | $936,187 | $493,409 | | Restricted cash (Level 1) | $648 | $631 | | Restricted cash - VIE (Level 1) | $478,913 | $295,802 | | Fixed-maturity securities (Level 1 & 2) | $454,550 | $464,966 | | Total Assets at Fair Value | $1,870,298 | $1,254,808 | - Long-term debt, including promissory notes and commercial loans, is valued using the discounted cash flow method with **Level 3** inputs, indicating significant unobservable inputs[71](index=71&type=chunk) [5. Deferred Policy Acquisition Costs](index=19&type=section&id=5.%20Deferred%20Policy%20Acquisition%20Costs) This section details the capitalization and amortization of costs related to acquiring new and renewal insurance policies 5. Deferred Policy Acquisition Costs Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Beginning balance | $60,750 | $41,675 | $65,046 | $42,995 | | Policy acquisition costs deferred | $42,804 | $36,218 | $67,080 | $51,978 | | Less: Amortization | $(32,096) | $(17,782) | $(60,668) | $(34,862) | | Ending balance | $71,458 | $60,111 | $71,458 | $60,111 | - Deferred policy acquisition costs increased to **$71.5 million** at June 30, 2025, from **$60.1 million** at June 30, 2024, reflecting higher new and renewal business production[72](index=72&type=chunk) [6. Loss and Loss Adjustment Expenses](index=19&type=section&id=6.%20Loss%20and%20Loss%20Adjustment%20Expenses) This section discusses the company's reserves for estimated unpaid losses and loss adjustment expenses, including IBNR claims - The company establishes reserves for estimated unpaid losses and loss adjustment expenses (LAE), including incurred but not yet reported (IBNR) claims, which are inherently imprecise due to future uncertain events[73](index=73&type=chunk)[74](index=74&type=chunk) 6. Loss and Loss Adjustment Expenses Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Balances, beginning of period | $571,180 | $272,837 | $595,487 | $249,567 | | Total incurred | $91,369 | $89,520 | $175,130 | $168,541 | | Total paid | $47,023 | $60,946 | $97,995 | $97,689 | | Balances at June 30 | $571,812 | $293,687 | $571,812 | $293,687 | - For the six months ended June 30, 2025, the company recognized favorable development of losses related to prior years of approximately **$21.6 million**, primarily due to lower than expected non-catastrophe payments[76](index=76&type=chunk) [7. Income Taxes](index=21&type=section&id=7.%20Income%20Taxes) This section presents the company's income tax expense and effective tax rates for the reported periods 7. Income Taxes Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Income tax expense | $26,225 | $17,707 | $57,629 | $36,353 | | Effective tax rate | 27.2% | 24.8% | 26.2% | 25.1% | - The effective tax rate increased in **2025** compared to **2024**, primarily due to recording the IRC Section **162(m)** permanent difference[77](index=77&type=chunk) [8. Reinsurance](index=22&type=section&id=8.%20Reinsurance) This section describes the company's use of reinsurance agreements to manage exposure to losses and catastrophe risks - The company uses various excess of loss reinsurance agreements to manage exposure to losses, including per risk and catastrophe excess of loss treaties, and mandatory participation in the Florida Hurricane Catastrophe Fund (FHCF)[78](index=78&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) - For the treaty period June 1, 2025, through May 31, 2026, the catastrophe excess of loss agreement has multiple layers of coverage, with the FHCF picking up **90%** of losses in a specific corridor[84](index=84&type=chunk)[85](index=85&type=chunk) - The company's maximum projected payout from the FHCF is estimated to be **$865.6 million**, with a retention of **$540.3 million** for the **2025-2026** treaty period[85](index=85&type=chunk) [9. Revolving Credit Facility](index=23&type=section&id=9.%20Revolving%20Credit%20Facility) This section details the company's revolving credit agreement, its borrowing capacity, and compliance with covenants - The company has an amended secured revolving credit agreement with Regions Bank, providing a borrowing capacity of **$45 million**, expiring June 25, 2029[88](index=88&type=chunk)[89](index=89&type=chunk) - As of June 30, 2025, the company had no outstanding borrowings under the revolving credit facility and was in compliance with all covenants, with **$45 million** available capacity[91](index=91&type=chunk) [10. Long-Term Debt](index=25&type=section&id=10.%20Long-Term%20Debt) This section outlines the company's long-term debt obligations, including commercial loans and promissory notes - The company has a **$40 million** **5-year** commercial loan agreement, with an outstanding principal of **$36 million** at June 30, 2025[92](index=92&type=chunk)[94](index=94&type=chunk) 10. Long-Term Debt Data | Year | Promissory Notes (in thousands) | Commercial Term Loan (in thousands) | Total (in thousands) | |:---|:---|:---|:---| | 2025 (remaining) | $1,000 | $2,000 | $3,000 | | 2026 | $2,000 | $4,000 | $6,000 | | 2027 | $500 | $4,000 | $4,500 | | 2028 | — | $4,000 | $4,000 | | 2029 | — | $22,000 | $22,000 | | Total | $3,500 | $36,000 | $39,500 | [11. Affiliate Transactions](index=25&type=section&id=11.%20Affiliate%20Transactions) This section confirms the absence of material non-eliminated affiliate transactions during the reporting periods - The company reported no material transactions with affiliates that were not fully eliminated in consolidation for the six months ended June 30, 2025 and 2024[95](index=95&type=chunk) [12. Leases](index=26&type=section&id=12.%20Leases) This section details the company's operating lease obligations, primarily for real estate, and related accounting metrics - The company has operating leases primarily for real estate, with terms ranging from **one** to **eight years**, and uses its incremental borrowing rate to determine the present value of lease payments[96](index=96&type=chunk)[97](index=97&type=chunk) 12. Leases Data | Lease Metric | June 30, 2025 | June 30, 2024 | |:---|:---|:---| | Operating lease cost (in thousands) | $935 | $750 | | Right-of-use asset (in thousands) | $7,701 | $6,085 | | Lease liability (in thousands) | $8,374 | $6,759 | | Weighted-average remaining lease term | 4.83 years | 5.83 years | | Weighted-average discount rate | 5.08% | 3.85% | [13. Regulatory Matters](index=26&type=section&id=13.%20Regulatory%20Matters) This section discusses regulatory restrictions on dividend payments and minimum surplus requirements for the insurance subsidiary - SIC's dividend payments to SIH are restricted by the Florida Office of Insurance Regulation (FLOIR), requiring prior approval if exceeding certain thresholds[100](index=100&type=chunk)[101](index=101&type=chunk) - SIC is required to maintain a minimum surplus of **$93.3 million** at June 30, 2025, and **$70.8 million** at December 31, 2024, which it met with statutory-basis surpluses of **$213.9 million** and **$208.0 million**, respectively[102](index=102&type=chunk) - SIC's total adjusted capital exceeded the NAIC risk-based capital (RBC) company-action level at both June 30, 2025, and December 31, 2024[103](index=103&type=chunk) [14. Commitments and Contingencies](index=28&type=section&id=14.%20Commitments%20and%20Contingencies) This section addresses potential contingent liabilities from routine legal proceedings, deemed immaterial by management - Management does not consider contingent liabilities arising from routine legal proceedings material to the company's financial position[105](index=105&type=chunk) [15. Guaranty Fund and Other Assessments](index=28&type=section&id=15.%20Guaranty%20Fund%20and%20Other%20Assessments) This section outlines the company's obligations for guaranty fund and other assessments in its operating states - SIC is subject to guaranty fund and other assessments in Florida and South Carolina, with payables totaling **$3.99 million** at June 30, 2025, and **$2.15 million** at December 31, 2024[106](index=106&type=chunk)[107](index=107&type=chunk) [16. Shareholders' Equity](index=28&type=section&id=16.%20Shareholders'%20Equity) This section details changes in the company's authorized and outstanding shares, including the impact of the IPO - The company amended its articles of incorporation on June 18, 2025, authorizing **1.5 billion** common shares and **150 million** preferred shares. As of June 30, 2025, **125.2 million** common shares were outstanding, and all preferred stock was converted to common stock[110](index=110&type=chunk)[113](index=113&type=chunk) - The IPO on June 18, 2025, involved the sale of **16.7 million** common shares by the company, generating net proceeds of approximately **$263.5 million**[112](index=112&type=chunk) [17. Stock-based Compensation](index=30&type=section&id=17.%20Stock-based%20Compensation) This section covers the company's stock-based compensation plans, related expenses, and unrecognized compensation costs 17. Stock-based Compensation Data | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Compensation cost (Stock Plan) | $3,000 | $271 | $6,014 | $543 | | Income tax benefit | $817 | $67 | $1,574 | $136 | - The company adopted the **2025** Omnibus Incentive Plan, authorizing up to **12.0 million shares** for equity-based and cash-based incentive awards, with no shares issued as of June 30, 2025[118](index=118&type=chunk) - Unrecognized compensation cost related to nonvested share-based compensation was **$1.47 million** at June 30, 2025, and **$3.86 million** at June 30, 2024[120](index=120&type=chunk) - Compensation expense for restricted stock increased significantly to **$5.53 million** for the six months ended June 30, 2025, from **$0** in the prior year, with **$16.5 million** of unrecognized expense remaining[123](index=123&type=chunk) [18. Variable Interest Entities](index=33&type=section&id=18.%20Variable%20Interest%20Entities) This section explains the consolidation of a Variable Interest Entity (VIE) providing reinsurance protection to the company - The company consolidates White Rock Insurance (SAC) Ltd acting in respect of 'Separate Account T104—Slide' as a Variable Interest Entity (VIE), being its primary beneficiary[125](index=125&type=chunk) - The VIE provides quota share, per risk, and catastrophe reinsurance protection to the company's insurance entities[126](index=126&type=chunk)[127](index=127&type=chunk) 18. Variable Interest Entities Data | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | |:---|:---|:---| | Restricted cash and cash equivalents | $478,913 | $295,802 | [19. Subsequent Events](index=34&type=section&id=19.%20Subsequent%20Events) This section reports significant events occurring after the balance sheet date, such as new legislative enactments - On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, which includes significant tax provisions, and the company is currently assessing its impact on its financial statements[131](index=131&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, and liquidity, highlighting key drivers and operational metrics [Overview](index=35&type=section&id=Overview) This section introduces Slide Insurance Holdings, Inc. as a technology-enabled coastal specialty insurer and its market strategy - Slide Insurance Holdings, Inc is a technology-enabled, fast-growing coastal specialty insurer, focusing on profitable underwriting of single-family and condominium policies in coastal states, primarily Florida and South Carolina[134](index=134&type=chunk) - The company leverages its differentiated technology and data-driven approach to capitalize on underserved market opportunities where larger national carriers have reduced capacity[134](index=134&type=chunk)[135](index=135&type=chunk) Overview Data | Metric | 3 Months Ended June 30, 2025 (in thousands) | 3 Months Ended June 30, 2024 (in thousands) | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | |:---|:---|:---|:---|:---| | Gross premiums written | $435,384 | $348,336 | $713,633 | $592,964 | | Total revenue | $261,607 | $209,131 | $543,200 | $408,257 | | Net income | $70,072 | $53,742 | $162,575 | $108,455 | | Combined ratio | 67.4% | 69.9% | 62.9% | 68.3% | | Return on equity | 10.0% | 16.9% | 25.0% | 37.3% | | Total Assets (June 30, 2025 / Dec 31, 2024) | $2,814,029 | N/A | $2,814,029 | $1,931,927 | | Shareholders' Equity (June 30, 2025 / Dec 31, 2024) | $868,060 | N/A | $868,060 | $433,159 | [Key Components of Our Results of Operations](index=36&type=section&id=Key%20Components%20of%20Our%20Results%20of%20Operations) This section explains the primary drivers of the company's revenues and expenses, including premiums and loss adjustment costs - Gross premiums written are influenced by policy assumptions from Citizens, block acquisitions, renewals, new business sales, average premium, and premium rates[138](index=138&type=chunk)[146](index=146&type=chunk) - Net premiums earned are gross premiums earned less ceded premiums earned, with reinsurance costs recognized ratably over the arrangement term[143](index=143&type=chunk) - Losses and loss adjustment expenses incurred, net, are affected by claim frequency and severity, reinsurance agreements, business mix, regulatory changes, and inflation[148](index=148&type=chunk)[155](index=155&type=chunk) [Key Metrics & Ratios](index=38&type=section&id=Key%20Metrics%20%26%20Ratios) This section defines key financial metrics and non-GAAP ratios used to assess the company's underwriting performance and profitability - Key metrics include loss ratio, policy acquisition expense ratio, expense ratio, and combined ratio, which indicates underwriting profit if below **100%**[157](index=157&type=chunk)[158](index=158&type=chunk) - Non-GAAP measures like combined ratio, excluding catastrophic losses & prior year claims development, and return on tangible equity are used to provide insight into underlying business performance by adjusting for volatile items and goodwill/intangibles[159](index=159&type=chunk)[161](index=161&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) This section analyzes the company's financial results for the reported periods, detailing revenue, expenses, and profitability changes [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=39&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) This section compares the company's financial performance for the three months ended June 30, 2025, against the prior year Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024 Data | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---| | Gross premiums written | $435,384 | $348,336 | $87,048 | 25.0% | | Net premiums earned | $243,859 | $194,966 | $48,893 | 25.1% | | Total revenue | $261,607 | $209,131 | $52,476 | 25.1% | | Net income | $70,072 | $53,742 | $16,330 | 30.4% | | Loss ratio | 37.4% | 45.9% | (8.5)% | (18.6)% | | Expense ratio | 30.0% | 24.0% | 6.0% | 25.0% | | Combined ratio | 67.4% | 69.9% | (2.5)% | (3.6)% | | Debt to capitalization ratio | 4.0% | 11.0% | (7.0)% | (63.6)% | | Return on equity | 10.0% | 16.9% | (6.9)% | (40.8)% | - Gross premiums written increased by **25.0%** due to policies assumed from Citizens and higher renewal rates[164](index=164&type=chunk) - The combined ratio improved from **69.9%** to **67.4%**, driven by increased net premiums earned and a decrease in catastrophe losses[183](index=183&type=chunk) - General and administrative expenses increased by **41.8%** due to growth in staffing and IT infrastructure to support increased policies in force[177](index=177&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=44&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) This section compares the company's financial performance for the six months ended June 30, 2025, against the prior year Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024 Data | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---| | Gross premiums written | $713,633 | $592,964 | $120,669 | 20.4% | | Net premiums earned | $509,900 | $383,074 | $126,826 | 33.1% | | Total revenue | $543,200 | $408,257 | $134,943 | 33.1% | | Net income | $162,575 | $108,455 | $54,120 | 49.9% | | Loss ratio | 34.3% | 44.0% | (9.7)% | (22.0)% | | Expense ratio | 28.6% | 24.3% | 4.3% | 17.7% | | Combined ratio | 62.9% | 68.3% | (5.4)% | (7.9)% | | Debt to capitalization ratio | 4.0% | 11.0% | (7.0)% | (63.6)% | | Return on equity | 25.0% | 37.3% | (12.3)% | (33.0)% | - Gross premiums written increased by **20.4%** due to Citizens policy assumptions, increased renewal rates, and new policies from Farmers renewal rights agreement[188](index=188&type=chunk) - The combined ratio decreased from **68.3%** to **62.9%**, primarily due to higher net premiums earned and reduced catastrophe losses[207](index=207&type=chunk) - Net investment income increased by **32.9%** to **$28.8 million**, driven by a larger average investable asset base[196](index=196&type=chunk) [Non-GAAP Financial Measures](index=48&type=section&id=Non-GAAP%20Financial%20Measures) This section presents and reconciles non-GAAP financial measures, providing additional insights into underlying business performance Non-GAAP Financial Measures Data | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Combined Ratio, excluding catastrophic losses & prior year claims development | 70.8% | 54.1% | 65.3% | 55.4% | | Return on tangible equity | 10.1% | 17.7% | 25.3% | 39.5% | - The combined ratio, excluding catastrophic losses & prior year claims development, increased for both the three-month and six-month periods, primarily due to a reduction in premiums earned from Citizens policies in the assumption period with reduced policy acquisition and reinsurance costs[212](index=212&type=chunk)[213](index=213&type=chunk) - Return on tangible equity decreased for both periods, reflecting growth in equity from retained earnings and IPO proceeds[214](index=214&type=chunk)[215](index=215&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash flow, capital structure, and ability to meet its short-term and long-term obligations - The holding company receives cash from equity/debt issuances, and dividends/distributions from subsidiaries, used to support growth, pay dividends, and cover corporate expenses[217](index=217&type=chunk) - SIC's dividend payments are subject to FLOIR approval and minimum surplus requirements; no dividends were paid in **2024**[218](index=218&type=chunk) - Cash, cash equivalents, and restricted cash increased to **$1.42 billion** at June 30, 2025, from **$789.8 million** at December 31, 2024, with substantial balances maintained for seasonal liquidity needs[219](index=219&type=chunk) - The company believes IPO proceeds, available cash, and operating cash flow will be sufficient to meet working capital and capital expenditure needs for the next **12 months**[221](index=221&type=chunk) [Off-Balance Sheet Arrangements](index=51&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of material off-balance sheet arrangements beyond those disclosed in the financial statements - The company does not maintain any other off-balance sheet arrangements beyond those disclosed in the financial statements[230](index=230&type=chunk) [Contractual Obligations and Commitments](index=52&type=section&id=Contractual%20Obligations%20and%20Commitments) This section outlines the company's future payment obligations under debt, interest, and operating lease agreements Contractual Obligations and Commitments Data | Obligation Type | Total (in thousands) | Less Than One Year (in thousands) | One Year to Less Than Three Years (in thousands) | Three Years to Less Than Five Years (in thousands) | More Than Five Years (in thousands) | |:---|:---|:---|:---|:---|:---| | Debt securities and credit agreements | $39,500 | $6,000 | $9,500 | $24,000 | — | | Interest payable | $8,312 | $2,552 | $4,141 | $1,619 | — | | Operating lease obligations | $9,452 | $1,855 | $3,867 | $3,730 | — | | Total | $57,264 | $10,407 | $17,508 | $29,349 | — | [Financial Condition](index=52&type=section&id=Financial%20Condition) This section reviews the company's overall financial health, including stockholders' equity and investment portfolio composition - Stockholders' equity increased to **$868.1 million** at June 30, 2025, from **$433.2 million** at December 31, 2024, primarily due to retained earnings and IPO proceeds[232](index=232&type=chunk) - The investment portfolio primarily consists of fixed-income securities rated BBB- or better, with **$452.9 million** at June 30, 2025, and **$464.8 million** at December 31, 2024[234](index=234&type=chunk)[235](index=235&type=chunk) Financial Condition Data | Rating | June 30, 2025 Fair Value (in thousands) | December 31, 2024 Fair Value (in thousands) | |:---|:---|:---| | AAA | $41,201 | $210,577 | | AA+ | $194,733 | $28,222 | | AA | $30,550 | $24,792 | | AA- | $44,751 | $37,378 | | A+ | $29,421 | $38,228 | | A | $25,931 | $26,992 | | A- | $27,846 | $34,131 | | BBB+ | $25,446 | $24,612 | | BBB | $25,081 | $32,171 | | BBB- | $7,931 | $7,699 | | Not Rated | $1,659 | $164 | | Total | $454,550 | $464,966 | [Critical Accounting Policies and Estimates](index=54&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights key accounting policies and estimates that require significant management judgment and impact financial reporting - Key accounting estimates include premiums (earned pro rata, allowance for credit losses), reserves for unpaid losses and LAE (case and IBNR reserves), policy acquisition costs (capitalized and amortized), and reinsurance (recoverables, creditworthiness)[240](index=240&type=chunk)[244](index=244&type=chunk)[249](index=249&type=chunk)[251](index=251&type=chunk)[253](index=253&type=chunk)[255](index=255&type=chunk) - Investments are classified as available-for-sale and reported at fair value, with changes in value recorded in other comprehensive income, and are subject to interest rate risk[257](index=257&type=chunk)[258](index=258&type=chunk) - Fair value measurements are categorized into a three-level hierarchy based on input observability, with most investments valued using **Level 1** or **Level 2** inputs[259](index=259&type=chunk)[266](index=266&type=chunk) [Recent Accounting Pronouncements](index=59&type=section&id=Recent%20Accounting%20Pronouncements) This section assesses the impact of recently issued accounting pronouncements on the company's financial statements - The company determined that all recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations, and cash flows[267](index=267&type=chunk) [Emerging Growth Company Status](index=59&type=section&id=Emerging%20Growth%20Company%20Status) This section explains the company's status as an emerging growth company and the associated reporting requirement exemptions - As an emerging growth company, Slide Insurance Holdings, Inc benefits from exemptions from certain reporting requirements, including auditor attestation for Section **404(b)** of Sarbanes-Oxley and delayed adoption of new accounting standards[268](index=268&type=chunk)[269](index=269&type=chunk) [Special Note Regarding Forward-Looking Statements](index=59&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section cautions readers about forward-looking statements, highlighting inherent risks and uncertainties that could affect future results - The report contains forward-looking statements subject to risks and uncertainties, including macroeconomic conditions, underwriting success, reinsurance availability, regulatory environment, and weather conditions[270](index=270&type=chunk)[272](index=272&type=chunk)[274](index=274&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily interest rate and credit risk, from its investment portfolios - The company's investment portfolios are primarily exposed to interest rate risk and credit risk, managed by BlackRock and overseen by SIC's investment committee[275](index=275&type=chunk) Item 3. Quantitative and Qualitative Disclosures About Market Risk Data | Hypothetical Change in Interest Rates | Estimated Fair Value After Change (in thousands) | Change in Estimated Fair Value (in thousands) | Percentage Increase (Decrease) in Estimated Fair Value | |:---|:---|:---|:---| | 300 basis point increase | $408,283 | $(46,267) | (10.2)% | | 200 basis point increase | $423,698 | $(30,851) | (6.8)% | | 100 basis point increase | $439,120 | $(15,429) | (3.4)% | | 100 basis point decrease | $469,986 | $15,436 | 3.4% | | 200 basis point decrease | $485,429 | $30,880 | 6.8% | | 300 basis point decrease | $500,879 | $46,330 | 10.2% | - Credit risk is mitigated by investing primarily in fixed-maturity securities rated 'BBB' or higher and diversifying the portfolio, with a weighted average credit quality rating of AA- at June 30, 2025[277](index=277&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[280](index=280&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[281](index=281&type=chunk) [PART II. OTHER INFORMATION](index=63&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) This section states the company is involved in routine legal proceedings, but management expects no material adverse effect on financial condition - The company is subject to routine legal proceedings, but management does not expect a material adverse effect on its business, financial condition, or results of operations[284](index=284&type=chunk) [Item 1A. Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors documented in the IPO prospectus and confirms no material changes to these risks - There have been no material changes to the company's risk factors since the filing of its final IPO prospectus on June 18, 2025[285](index=285&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's IPO completion, including shares sold, net proceeds, and confirms no material change in the planned use of proceeds - The company completed its IPO on June 18, 2025, issuing and selling **16.7 million** common shares at **$17.00** per share, generating net proceeds of approximately **$263.5 million**[286](index=286&type=chunk) - The underwriters fully exercised their option to purchase an additional **3.6 million shares** from selling stockholders on June 25, 2025, but the company did not receive any proceeds from these sales[286](index=286&type=chunk) - There has been no material change in the planned use of proceeds from the IPO as described in the related prospectus[287](index=287&type=chunk) [Item 3. Defaults Upon Senior Securities](index=63&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - The company reported no defaults upon senior securities[288](index=288&type=chunk) [Item 4. Mine Safety Disclosures](index=63&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that there are no mine safety disclosures required for the company - The company has no mine safety disclosures to report[289](index=289&type=chunk) [Item 5. Other Information](index=63&type=section&id=Item%205.%20Other%20Information) This section confirms no director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[290](index=290&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report, including corporate documents, executive certifications, and XBRL documents - Exhibits include the Amended and Restated Certificate of Incorporation and Bylaws, certifications of principal executive and financial officers, and Inline XBRL documents[291](index=291&type=chunk)

Executive Summary & Highlights [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) NEXGEL achieved strong financial performance in Q2 2025, with revenue growing 100.3% YoY and gross margin significantly improving to 43.6%, while the adjusted EBITDA loss continued to narrow **Key Financial Metrics Comparison for Q2 2025 (in millions USD):** | Metric | Q2 2025 | Q2 2024 | YoY Change | Q1 2025 | QoQ Change | | :----- | :------ | :------ | :--------- | :------ | :--------- | | Net Revenue | $2.88 | $1.44 | +100.3% | $2.81 | +2.5% | | Gross Profit | $1.26 | $0.29 | +334.5% | $1.19 | +5.9% | | Gross Profit Margin | 43.6% | 20.3% | +23.3 pp | 42.4% | +1.2 pp | | Net Loss Attributable to NEXGEL Stockholders | ($0.67) | ($0.89) | -24.6% | ($0.71) | -5.6% | | EBITDA | ($0.53) | ($0.76) | -30.2% | ($0.58) | -8.6% | | Adjusted EBITDA | ($0.42) | ($0.79) | -46.8% | ($0.50) | -16.0% | [CEO Commentary and Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Outlook) CEO Adam Levy highlighted strong Q2 2025 revenue and gross margin performance, reaffirming the full-year $13 million revenue guidance and the goal of achieving positive EBITDA - Year-over-year growth was primarily driven by increased consumer demand for branded products and new contract manufacturing agreements[4](index=4&type=chunk) - Subsequent to the quarter, the company expanded its partnership with STADA, including a **$1 million non-dilutive capital advance** to support product launch and marketing efforts[4](index=4&type=chunk)[11](index=11&type=chunk) - The company completed a **gross financing of $1.05 million**, sufficient to support upcoming growth initiatives[4](index=4&type=chunk)[11](index=11&type=chunk) - Reaffirmed the **2025 revenue guidance of $13 million** and plans to achieve **positive EBITDA** within the year[2](index=2&type=chunk)[4](index=4&type=chunk) Second Quarter 2025 Financial Results Analysis [Revenue and Cost of Revenues](index=1&type=section&id=Revenue%20and%20Cost%20of%20Revenues) Net revenues reached $2.88 million in Q2 2025, a 100.3% YoY increase, driven by growth in contract manufacturing and branded product sales, with a corresponding rise in cost of revenues **Revenue and Cost of Revenues (in millions USD):** | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Revenues, net | $2.88 | $1.44 | +100.3% | | Cost of revenues | $1.63 | $1.15 | +41.7% | - The increase in total revenues was primarily attributable to growth in contract manufacturing and branded product sales[5](index=5&type=chunk) - The increase in cost of revenues was primarily consistent with the growth in branded consumer product sales, as Silly George was acquired mid-way through the comparable period in 2024[6](index=6&type=chunk) [Gross Profit](index=1&type=section&id=Gross%20Profit) Gross profit for Q2 2025 substantially increased to $1.26 million with the gross margin improving to 43.6% from 20.3% in the prior year period **Gross Profit and Gross Margin (in millions USD):** | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Gross profit | $1.26 | $0.29 | +334.5% | | Gross profit margin | 43.6% | 20.3% | +23.3 pp | - The increase in gross profit was primarily due to growth in contract manufacturing and consumer branded product sales, along with the acquisition of Silly George mid-way through the comparable period in 2024[7](index=7&type=chunk) [Operating Expenses (Selling, General and Administrative)](index=1&type=section&id=Operating%20Expenses%20(Selling%2C%20General%20and%20Administrative)) Selling, general and administrative expenses for Q2 2025 rose to $1.89 million, primarily due to increased costs in compensation, stock-based compensation, and professional fees **Selling, General and Administrative Expenses (in millions USD):** | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Selling, general and administrative expenses | $1.89 | $1.27 | +48.8% | - The increase in expenses was attributable to rises in compensation and benefits, stock-based compensation, advertising, professional consulting fees, other expenses, and investor and stockholder services, partially offset by a decrease in depreciation and amortization[8](index=8&type=chunk) [Net Loss and Profitability Metrics](index=1&type=section&id=Net%20Loss%20and%20Profitability%20Metrics) NEXGEL reduced its net loss attributable to stockholders to $0.67 million in Q2 2025, with significant improvements in both EBITDA and Adjusted EBITDA **Net Loss and Profitability Metrics (in millions USD):** | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net loss attributable to NEXGEL stockholders | ($0.67) | ($0.89) | -24.6% | | EBITDA | ($0.53) | ($0.76) | -30.2% | | Adjusted EBITDA | ($0.42) | ($0.79) | -46.8% | Financial Position and Liquidity [Cash and Financing Activities](index=2&type=section&id=Cash%20and%20Financing%20Activities) As of June 30, 2025, NEXGEL held a cash balance of approximately $0.73 million and secured additional funding post-quarter through a partnership expansion and financing **Cash Balance (in millions USD):** | Metric | As of June 30, 2025 | | :----- | :------------------ | | Cash Balance | $0.73 | - Expanded partnership with STADA, including a **$1 million non-dilutive capital advance** to support product launch and marketing efforts[4](index=4&type=chunk)[11](index=11&type=chunk) - Completed a **gross financing of $1.05 million**, sufficient to support upcoming growth initiatives[4](index=4&type=chunk)[11](index=11&type=chunk) [Condensed Consolidated Balance Sheets Overview](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20Overview) As of June 30, 2025, the company's total assets were $9.71 million, with total liabilities and stockholders' equity at $4.66 million and $5.06 million, respectively **Key Data from Condensed Consolidated Balance Sheets (in thousands USD):** | Metric | June 30, 2025 | December 31, 2024 | Change | | :----- | :------------ | :---------------- | :----- | | Total assets | $9,711 | $10,983 | ($1,272) | | Total liabilities | $4,656 | $4,903 | ($247) | | Total stockholders' equity | $5,055 | $6,080 | ($1,025) | | Cash | $725 | $1,807 | ($1,082) | | Total current assets | $4,162 | $5,114 | ($952) | | Total current liabilities | $2,396 | $2,470 | ($74) | Company Information & Disclosures [About NEXGEL, INC.](index=2&type=section&id=About%20NEXGEL%2C%20INC.) NEXGEL, Inc. is a leading provider of healthcare, beauty, and over-the-counter (OTC) products, specializing in ultra-gentle, high-water-content hydrogels - NEXGEL is a leading provider of healthcare, beauty, and over-the-counter (OTC) products, including ultra-gentle, high-water-content hydrogel products[14](index=14&type=chunk) - The company has over two decades of experience in electron-beam cross-linked hydrogel development and manufacturing in Langhorne, Pennsylvania[14](index=14&type=chunk) - NEXGEL's brands include SilverSeal, Hexagels, Turfguard, Kenkoderm, and Silly George, and it maintains strategic contract manufacturing relationships with leading consumer healthcare companies[14](index=14&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures like EBITDA and Adjusted EBITDA to provide a clearer view of its core operational performance for investors and management - Non-GAAP financial measures are intended to provide a representation of the company's core operating performance and information that may be useful in assessing its future prospects and potential trends[15](index=15&type=chunk) - Excluded items include amortization of intangible assets, stock-based compensation, adjusted tax impacts, other non-recurring items, and discrete items that impact the income tax provision[15](index=15&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains cautionary notes regarding forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from expectations - Statements include expectations for significant growth opportunities in the second half of 2025, and continued expectations of at least **$13 million in revenue** and achieving **positive EBITDA** in 2025[16](index=16&type=chunk) - These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the company's actual results, performance, or achievements to be materially different from expectations[16](index=16&type=chunk) - The company does not intend and does not assume any obligation to revise any forward-looking statements[16](index=16&type=chunk) [Investor Relations](index=3&type=section&id=Investor%20Relations) This section provides contact information for investor inquiries, directed to Valter Pinto, Managing Director at KCSA Strategic Communications - Investor Contact: Valter Pinto, Managing Director, KCSA Strategic Communications, Phone: 212.896.1254, Email: Nexgel@kcsa.com[18](index=18&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets present NEXGEL's financial position as of June 30, 2025, and December 31, 2024 **NEXGEL, INC. Condensed Consolidated Balance Sheets (in thousands USD):** | ASSETS: | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Current Assets: | | | | Cash | $725 | $1,807 | | Accounts receivable, net | 753 | 933 | | Inventory, net | 1,821 | 1,751 | | Prepaid expenses and other current assets | 863 | 623 | | **Total current assets** | **4,162** | **5,114** | | Goodwill | 1,128 | 1,128 | | Intangibles, net | 744 | 807 | | Property and equipment, net | 2,070 | 2,211 | | Operating lease - right of use asset | 1,512 | 1,628 | | Other assets | 95 | 95 | | **Total assets** | **$9,711** | **$10,983** | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Current Liabilities: | | | | Accounts payable | $826 | $761 | | Accounts payable - related party | 447 | 531 | | Accrued expenses and other current liabilities | 534 | 310 | | Deferred revenue | 180 | 179 | | Current portion of note payable | 99 | 97 | | Warrant liability | 14 | 118 | | Contingent consideration liability | - | 178 | | Financing lease liability, current portion | 62 | 59 | | Operating lease liabilities, current portion | 234 | 237 | | **Total current liabilities** | **2,396** | **2,470** | | Operating lease liabilities, net of current portion | 1,446 | 1,538 | | Financing lease liability, net of current portion | 275 | 307 | | Notes payable, net of current portion | 539 | 588 | | **Total liabilities** | **4,656** | **4,903** | | Stockholders' Equity: | | | | Common stock | 8 | 8 | | Additional paid-in capital | 24,036 | 23,743 | | Accumulated deficit | (19,373) | (17,996) | | Total NexGel stockholders' equity | 4,671 | 5,755 | | Non-controlling interest in joint venture | 384 | 325 | | **Total stockholders' equity** | **5,055** | **6,080** | | **Total liabilities and stockholders' equity** | **$9,711** | **$10,983** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations detail revenues, costs, expenses, and net loss for the three and six-month periods ending June 30, 2025 and 2024 **NEXGEL, INC. Condensed Consolidated Statements of Operations (in thousands USD):** | | Three Months Ended June 30, | | Six Months Ended June 30, | | | :------------------------------------------ | :------------ | :------------ | :------------ | :------------ | | | **2025** | **2024** | **2025** | **2024** | | Revenues, net | $2,884 | $1,440 | $5,690 | $2,706 | | Cost of revenues | 1,626 | 1,147 | 3,244 | 2,187 | | **Gross profit** | **1,258** | **293** | **2,446** | **519** | | Operating expenses: | | | | | | Research and development | - | 76 | 1 | 78 | | Selling, general and administrative | 1,894 | 1,271 | 3,858 | 2,366 | | **Total operating expenses** | **1,894** | **1,347** | **3,859** | **2,444** | | **Loss from operations** | **(636)** | **(1,054)** | **(1,413)** | **(1,925)** | | Other income (expense): | | | | | | Interest expense, net | (21) | (29) | (42) | (44) | | Loss on sale of assets | - | (4) | - | (4) | | Other expense | (37) | - | (76) | - | | Other income | 41 | 6 | 109 | 6 | | Gain on investments | - | 23 | - | 57 | | Changes in fair value of warrant liability | 13 | 79 | 104 | 26 | | **Total other income (expense), net** | **(4)** | **75** | **95** | **41** | | **Loss before income taxes** | **(640)** | **(979)** | **(1,318)** | **(1,884)** | | Income tax expense | - | - | - | - | | **Net loss** | **(640)** | **(979)** | **(1,318)** | **(1,884)** | | Less: Income (loss) attributable to non-controlling interest in joint venture | (25) | 94 | (59) | 146 | | **Net loss attributable to NexGel stockholders** | **$(665)** | **$(885)** | **$(1,377)** | **$(1,738)** | | Net loss per common share - basic | $(0.09) | $(0.14) | $(0.18) | $(0.28) | | Net loss per common share - diluted | $(0.09) | $(0.14) | $(0.18) | $(0.28) | | Weighted average shares used in computing net loss per common share - basic | 7,654,348 | 6,254,659 | 7,649,878 | 6,118,212 | | Weighted average shares used in computing net loss per common share – diluted | 7,654,348 | 6,254,659 | 7,649,878 | 6,118,212 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows outline cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 **NEXGEL, INC. Condensed Consolidated Statements of Cash Flows (in thousands USD):** | | Six Months Ended June 30, | | | :---------------------------------------------------------- | :------------ | :------------ | | | **2025** | **2024** | | Operating Activities | | | | Net loss | $(1,377) | $(1,738) | | Adjustments to reconcile net loss to net cash used in operating activities: | | | | Income (loss) attributable to non-controlling interest in joint venture | 59 | (146) | | Depreciation and amortization | 225 | 144 | | Net changes in operating lease assets and liabilities | 21 | 22 | | Share-based compensation and restricted stock vesting | 293 | 118 | | Gain on investment in marketable securities | — | (57) | | Changes in fair value of warrant liability and warrant modification expense | (104) | (26) | | Changes in operating assets and liabilities: | | | | Accounts receivable, net | 180 | 28 | | Inventory | (70) | (127) | | Prepaid expenses and other assets | (240) | (68) | | Accounts payable | 65 | 117 | | Accounts payable – related party | (84) | (105) | | Accrued expenses and other current liabilities | 224 | (113) | | Deferred revenue | 1 | 159 | | **Net Cash Used in Operating Activities** | **(807)** | **(1,792)** | | Investing Activities | | | | Proceeds from sales of marketable securities | — | 57 | | Capital expenditures | (20) | (361) | | Net cash paid for asset acquisition | — | (400) | | **Net Cash Used in Investing Activities** | **(20)** | **(704)** | | Financing Activities | | | | Proceeds from equity offering, net of expenses | — | 946 | | Investment by joint venture partner | — | 37 | | Payment of contingent consideration liability | (178) | (69) | | Principal payment on financing lease liability | (29) | (22) | | Principal payments of notes payable | (48) | (27) | | **Net Cash Provided by (Used in) Financing Activities** | **(255)** | **865** | | **Net Decrease in Cash** | **(1,082)** | **(1,631)** | | Cash – Beginning of period | 1,807 | 2,700 | | **Cash – End of period** | **$725** | **$1,069** | | Supplemental Disclosure of Cash Flows Information | | | | Cash paid during the year for: | | | | Interest | $18 | $27 | | Taxes | $— | $— | | Supplemental Non-cash Investing and Financing activities | | | | Shares issued in conjunction with asset acquisition | $— | $200 | | Property and equipment financed under notes payable | $— | $165 | | Property and equipment financed under financing leases | $— | $416 | Reconciliation of Non-GAAP Measures [Calculation of EBITDA & Adjusted EBITDA](index=7&type=section&id=Calculation%20of%20EBITDA%20%26%20Adjusted%20EBITDA) This section provides a detailed reconciliation of GAAP net loss to the non-GAAP measures of EBITDA and Adjusted EBITDA for the respective periods **Reconciliation of GAAP Measures to Non-GAAP Measures (in thousands USD):** | | Three Months Ended | | | Six Months Ended June 30, | | | :------------------------------------------ | :------------ | :------------ | :------------ | :------------ | :------------ | | | **March 31, 2025** | **June 30, 2025** | **June 30, 2024** | **2025** | **2024** | | Net (loss) income: | $(678) | $(640) | $(979) | $(1,318) | $(1,884) | | Less: Loss (income) attributable to non-controlling interest in joint venture | (34) | (25) | 94 | (59) | 146 | | **Net loss attributable to NexGel stockholders** | **(712)** | **(665)** | **(885)** | **(1,377)** | **(1,738)** | | Adjustments: | | | | | | | Depreciation and amortization | 114 | 111 | 92 | 225 | 144 | | Interest expense, net | 21 | 21 | 29 | 42 | 44 | | Income tax expense | - | - | - | - | - | | **EBITDA** | **(577)** | **(533)** | **(764)** | **(1,110)** | **(1,550)** | | Change in warrant liability(1) | (91) | (13) | (79) | (104) | (26) | | Share-based compensation expense(2) | 166 | 127 | 55 | 293 | 118 | | **Adjusted EBITDA:** | **$(502)** | **$(419)** | **$(788)** | **$(921)** | **$(1,458)** | - Adjustments for EBITDA include depreciation and amortization, interest expense, and income tax expense[25](index=25&type=chunk) - Further adjustments for Adjusted EBITDA include the non-cash change in warrant liability and share-based compensation expense[25](index=25&type=chunk)[26](index=26&type=chunk)

Exhibit 99.1 Intelligent Protection Management Corp. Reports Second Quarter 2025 Financial Results ● We were selected by Hewlett Packard Enterprise to be an accredited partner for its HPE Private Cloud AI solution. ● We initiated a collaboration with IT Ally, a trusted business and technology services provider focused on lower middle- market private equity firms and their portfolio companies. ● During the quarter, our Board of Directors approved a stock repurchase plan for up to $400,000 of our outstanding ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) Pulse Biosciences announced its second quarter 2025 financial results and provided business updates, emphasizing progress in its Nanosecond Pulsed Field Ablation (nsPFA) technology programs, including expanded pilot studies and regulatory submissions, alongside increased operational costs and net losses [Introduction and Key Highlights](index=1&type=section&id=Introduction%20and%20Key%20Highlights) Pulse Biosciences announced its second quarter 2025 financial results and provided business updates, emphasizing progress in its Nanosecond Pulsed Field Ablation (nsPFA) technology programs, including expanded pilot studies and regulatory submissions, alongside increased operational costs and net losses - Pulse Biosciences is advancing top priorities for its three market development programs, expanding the Percutaneous Electrode pilot program, submitting IDEs for cardiac surgical clamp and nsPFA 360° catheter, and generating **positive clinical outcomes** in European feasibility studies[2](index=2&type=chunk) Q2 2025 Financial Snapshot (GAAP) | Metric | Q2 2025 (in $M) | Q2 2024 (in $M) | Change (in $M) | | :----- | :-------------- | :-------------- | :------------- | | Total Costs & Expenses | 20.3 | 11.7 | +8.5 | | Net Loss | (19.2) | (11.4) | +(7.8) | | Cash & Cash Equivalents | 106.3 | 26.2 | +80.1 | | Cash Used in Operations | 12.8 | 8.4 | +4.4 | [Business Updates](index=1&type=section&id=Business%20Updates) The company provides updates on its soft tissue and cardiac AF ablation programs, highlighting clinical progress and regulatory submissions [Soft Tissue Ablation Program](index=1&type=section&id=Soft%20Tissue%20Ablation%20Program) The company expanded its pilot program for the nsPFA Percutaneous Electrode for soft tissue ablation, successfully treating over 140 benign thyroid nodule patients and planning a post-market study - Expanded the pilot program for the **nsPFA Percutaneous Electrode for soft tissue ablation**[7](index=7&type=chunk) - Treated over **140 Benign Thyroid Nodule patients** to date across multiple pilot program centers[7](index=7&type=chunk) - Identified **five sites** to participate in a post-market study of benign thyroid disease, with enrollment planned for **Q3** upon IRB approvals[7](index=7&type=chunk) [Cardiac AF Ablation Programs](index=1&type=section&id=Cardiac%20AF%20Ablation%20Programs) Pulse Biosciences made significant strides in its cardiac AF ablation programs, submitting FDA IDE applications for both surgical and endocardial catheter systems and reporting positive clinical outcomes and improved procedure times in European feasibility studies [Surgical AF Ablation](index=1&type=section&id=Surgical%20AF%20Ablation) FDA IDE for nsPFA Cardiac Surgery System submitted, pivotal study planned, with positive European feasibility outcomes - The company submitted its **FDA IDE application**, including the pivotal study protocol, for the **nsPFA Cardiac Surgery System** and remains on track to commence the pivotal study soon. European feasibility studies have treated **40 patients** with **positive clinical outcomes**[7](index=7&type=chunk) - Submitted **FDA IDE application**, including the pivotal study protocol, to support a premarket approval (PMA) application for atrial fibrillation (AF) treatment, remaining on track to commence the **IDE pivotal study** in the next few months[7](index=7&type=chunk) - Treated **40 patients** to date and generated **positive clinical outcomes**, as indicated by follow-up remapping procedures, as part of the **nsPFA Cardiac Surgery System** multi-center, first-in-human AF feasibility study in Europe[7](index=7&type=chunk) [Endocardial Catheter AF Ablation](index=1&type=section&id=Endocardial%20Catheter%20AF%20Ablation) FDA IDE for nsPFA 360° catheter submitted, pivotal study expected, European studies show improved procedure times - The **FDA IDE application** for the **nsPFA 360° catheter** has been submitted, with the pivotal study expected to commence in the coming months. Over **140 patients** have been treated in European studies, showing **improved procedure times**[7](index=7&type=chunk) - Observed **improved procedure times** since last presented at the Heart Rhythm Society 2025 Meeting in April[7](index=7&type=chunk) - Treated over **140 total patients** with the **nsPFA 360° catheter** to date as part of the multi-center, first-in-human AF study in Europe[7](index=7&type=chunk) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Q2 2025 financial performance shows increased operational costs, net losses, and significant cash and cash equivalents growth [GAAP Financial Results](index=1&type=section&id=GAAP%20Financial%20Results) Total GAAP costs and expenses for Q2 2025 increased significantly year-over-year, primarily due to organizational expansion and higher stock-based compensation, resulting in a larger GAAP net loss GAAP Costs and Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in $M) | Q2 2024 (in $M) | YoY Change (in $M) | | :---------------------- | :-------------- | :-------------- | :----------------- | | Research and development | 12.088 | 7.230 | +4.858 | | General and administrative | 8.187 | 4.496 | +3.691 | | **Total Costs and Expenses** | **20.275** | **11.726** | **+8.549** | GAAP Net Loss (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in $M) | Q2 2024 (in $M) | YoY Change (in $M) | | :------- | :-------------- | :-------------- | :----------------- | | Net Loss | (19.168) | (11.383) | +(7.785) | | Basic and Diluted Net Loss Per Share | (0.28) | (0.20) | +(0.08) | - The increase in costs was primarily driven by **administrative expenses** related to expanding the organization to support **nsPFA device clinical trials and commercialization**, and **non-cash stock-based compensation** and other compensation[3](index=3&type=chunk) [Non-GAAP Financial Results](index=1&type=section&id=Non-GAAP%20Financial%20Results) Non-GAAP costs and expenses and net loss for Q2 2025 also increased year-over-year, reflecting the underlying operational growth when excluding non-cash and certain non-recurring items Non-GAAP Costs and Expenses (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in $M) | Q2 2024 (in $M) | YoY Change (in $M) | | :---------------------- | :-------------- | :-------------- | :----------------- | | Non-GAAP Research and development | 9.709 | 6.177 | +3.532 | | Non-GAAP General and administrative | 5.104 | 3.199 | +1.905 | | **Non-GAAP Cost and expenses** | **14.813** | **9.376** | **+5.437** | Non-GAAP Net Loss (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in $M) | Q2 2024 (in $M) | YoY Change (in $M) | | :---------- | :-------------- | :-------------- | :----------------- | | Non-GAAP Net loss | (13.706) | (9.033) | +(4.673) | [Balance Sheet and Liquidity](index=1&type=section&id=Balance%20Sheet%20and%20Liquidity) Cash and cash equivalents significantly increased year-over-year, reaching $106.3 million as of June 30, 2025, despite an increase in cash used in operating activities. Total assets and stockholders' equity decreased from year-end 2024 Cash and Cash Equivalents | Date | Amount (in $M) | | :---------- | :------------- | | June 30, 2025 | 106.3 | | March 31, 2025 | 119.3 | | June 30, 2024 | 26.2 | Cash Used in Operating Activities | Period | Amount (in $M) | | :------------------ | :------------- | | Q2 2025 | 12.8 | | Q1 2025 | 13.5 | | Q2 2024 | 8.4 | Selected Balance Sheet Items (in $M) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :---------------------- | :------------ | :----------- | :----- | | Total Assets | 120.251 | 132.460 | (12.209) | | Total Liabilities | 15.764 | 17.598 | (1.834) | | Total Stockholders' Equity | 104.487 | 114.862 | (10.375) | [Non-GAAP Financial Measures Explanation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Non-GAAP financial measures clarify operational performance by excluding non-cash and non-recurring items, complementing GAAP results [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) Pulse Biosciences utilizes non-GAAP financial measures to complement its GAAP results, believing they offer a clearer view of ongoing operations by excluding non-cash expenses and certain non-recurring items, though investors are cautioned about their limitations - Company management uses these measurements as aids in monitoring the Company's **ongoing financial performance** from quarter to quarter and year to year, and for **financial and operational decision-making**[10](index=10&type=chunk) - **Non-GAAP adjustments** include **stock-based compensation**, **depreciation and amortization**, **restructuring**, **severance**, and a **legal settlement**[10](index=10&type=chunk) - Investors are cautioned that there are a number of **limitations** associated with the use of **non-GAAP financial measures** as analytical tools[10](index=10&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) Forward-looking statements are subject to inherent risks and uncertainties, with actual results potentially differing materially from projections [Forward-Looking Statements Disclaimer](index=2&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section provides a standard disclaimer, highlighting that all non-historical statements are forward-looking and subject to risks and uncertainties, and actual results may differ materially. The company disclaims any obligation to update these statements - All non-historical statements in this press release are **forward-looking statements**, including those related to the **effectiveness of nsPFA technology**, **future commercialization and product development**, **early clinical successes**, and **future clinical and regulatory initiatives**[12](index=12&type=chunk) - Do not place undue reliance on forward-looking statements, as they involve **known and unknown risks, uncertainties, and assumptions** that are difficult or impossible to predict and, in some cases, beyond Pulse Biosciences' control[12](index=12&type=chunk) [Contacts](index=2&type=section&id=Contacts) Investor relations contact information for Pulse Biosciences and its external partner is provided [Investor Relations](index=2&type=section&id=Investor%20Relations) Contact information for investor inquiries is provided for Pulse Biosciences directly and through Gilmartin Group - Investors: **Pulse Biosciences, Inc. Jon Skinner, CFO** IR@pulsebiosciences.com[13](index=13&type=chunk) - **Gilmartin Group Philip Trip Taylor** 415.937.5406 philip@gilmartinir.com[14](index=14&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Condensed consolidated financial statements detail the company's financial position and performance, including balance sheets and operations [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows a decrease in total assets and stockholders' equity compared to December 31, 2024, primarily driven by a reduction in cash and cash equivalents Condensed Consolidated Balance Sheets (Selected Items, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $106,349 | $118,038 | | Total current assets | $108,160 | $119,449 | | Total assets | $120,251 | $132,460 | | Total current liabilities | $8,978 | $10,055 | | Total liabilities | $15,764 | $17,598 | | Total stockholders' equity | $104,487 | $114,862 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three and six months ended June 30, 2025, Pulse Biosciences reported no product revenues, with significant increases in research and development and general and administrative expenses leading to higher net losses compared to the prior year periods Statements of Operations (3-Month Periods, in thousands) | Metric | June 30, 2025 | June 30, 2024 | YoY Change | | :---------------------- | :------------ | :------------ | :--------- | | Product revenues | $— | $— | $— | | Research and development | $12,088 | $7,230 | +$4,858 | | General and administrative | $8,187 | $4,496 | +$3,691 | | Total cost and expenses | $20,275 | $11,726 | +$8,549 | | Net loss | $(19,168) | $(11,383) | $(7,785) | | Basic and diluted net loss per share | $(0.28) | $(0.20) | $(0.08) | Statements of Operations (6-Month Periods, in thousands) | Metric | June 30, 2025 | June 30, 2023 | YoY Change | | :---------------------- | :------------ | :------------ | :--------- | | Product revenues | $— | $— | $— | | Research and development | $22,401 | $13,971 | +$8,430 | | General and administrative | $15,918 | $8,370 | +$7,548 | | Total cost and expenses | $38,319 | $22,341 | +$15,978 | | Net loss | $(35,963) | $(21,520) | $(14,443) | | Basic and diluted net loss per share | $(0.54) | $(0.38) | $(0.16) | Stock-Based Compensation Expense (3-Month Periods, in thousands) | Metric | June 30, 2025 | June 30, 2024 | YoY Change | | :-------------------------------- | :------------ | :------------ | :--------- | | Research and development | $2,335 | $1,001 | +$1,334 | | General and administrative | $2,854 | $1,051 | +$1,803 | | **Total stock-based compensation expense** | **$5,189** | **$2,052** | **+$3,137** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section details the adjustments made to GAAP figures, primarily for stock-based compensation, depreciation, amortization, and legal settlements, to derive non-GAAP research and development, general and administrative expenses, total costs and expenses, and net loss for both quarterly and year-to-date periods Reconciliation of GAAP to Non-GAAP Costs and Expenses (3-Month Periods, in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | GAAP Cost and expenses | $20,275 | $11,726 | | Less: Stock-based compensation expense | $(5,189) | $(2,052) | | Less: Depreciation and amortization | $(273) | $(298) | | Add: Legal settlement | $— | $— | | **Non-GAAP Cost and expenses** | **$14,813** | **$9,376** | Reconciliation of GAAP to Non-GAAP Net Loss (3-Month Periods, in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | GAAP Net loss | $(19,168) | $(11,383) | | Add: Stock-based compensation expense | $5,189 | $2,052 | | Add: Depreciation and amortization | $273 | $298 | | Less: Legal settlement | $— | $— | | **Non-GAAP Net loss** | **$(13,706)** | **$(9,033)** | - **Non-GAAP adjustments** include **stock-based compensation**, **depreciation and amortization**, **restructuring**, **severance**, and a **legal settlement**[10](index=10&type=chunk)

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Prairie Operating Co. achieved record Q2 2025 results, driven by strategic acquisitions and strong operational execution, with significant growth in production, revenue, and Adjusted EBITDA [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized record growth, successful asset integration, and a strengthened financial foundation for future returns - CEO Edward Kovalik highlighted tremendous growth, record production, and new highs in adjusted EBITDA, attributing success to disciplined capital allocation and strategic off-market acquisitions that expanded inventory and improved capital efficiency[5](index=5&type=chunk) - The company successfully integrated the Bayswater assets, expanded its team from 20 to 59 employees, and increased its portfolio of operated wells from 34 to over 360, laying the groundwork for lower costs and continued production growth[5](index=5&type=chunk) - CFO Gregory Patton noted the strengthening of Prairie's financial and operating foundation, with EBITDA growing more than six-fold, an expanded credit facility, and over **$600.0 million** in accretive acquisitions[10](index=10&type=chunk) - With leverage at approximately **1x** and attractive pricing locked in through 2028, the company is well-positioned to generate cash flow, pursue strategic growth, and optimize cost structures to improve margins and returns[10](index=10&type=chunk) [Q2 2025 Results Summary](index=1&type=section&id=Q2%202025%20Results%20Summary) Q2 2025 saw substantial quarter-over-quarter growth in key financial and operational metrics, including revenue and production Q2 2025 Key Metrics vs. Prior Quarter | Metric | Q2 2025 Value | Quarter-over-Quarter Change | | :--- | :--- | :--- | | Total Revenue | $68.1 million | ~400% Increase | | Total Production | 21,052 Boe/d | ~540% Increase | | Net Income (to common stockholders) | $48.5 million | - | | Basic EPS | $1.04 | - | | Adjusted EBITDA | $38.6 million | >600% Increase | - The company acquired over **$600.0 million** of producing oil and gas assets and initiated a hedging program to secure commodity pricing through 2028[8](index=8&type=chunk) - The credit facility was amended, adding two banks to the syndicate and reaffirming the borrowing base at **$475.0 million**[8](index=8&type=chunk) [Operational Performance](index=2&type=section&id=Operational%20Performance) The company demonstrated strong operational momentum, drilling 18 wells and completing 9, while improving efficiency and deploying innovative technologies - Drilled 18 and completed 9 wells during the quarter, with average spud-to-total-depth times improving to **5.3 days**[11](index=11&type=chunk) - Successfully executed the 11-well Rusch pad in Weld County, with first production expected in Q3[12](index=12&type=chunk) - Implemented innovative U-shaped lateral well designs to maximize drainage and minimize surface impact[13](index=13&type=chunk) - Deployed an electric frac fleet, which significantly reduced emissions and completion costs, achieving an average of **14 stages per day**[14](index=14&type=chunk) - Turned 17 wells to sales in H1 2025 and now operates over 360 wells, installing plunger lift systems on 30 wells to optimize production[15](index=15&type=chunk) [Detailed Financial Results (Q2 2025)](index=3&type=section&id=Detailed%20Financial%20Results%20%28Q2%202025%29) Prairie generated **$68.1 million** in total revenue and **$48.5 million** in net income, supported by **$98.7 million** in liquidity and strategic capital deployment [Revenue and Production](index=3&type=section&id=Revenue%20and%20Production) Q2 2025 revenue was primarily driven by oil sales, contributing to a total production of **1,916 MBoe** Q2 2025 Revenue & Production Breakdown | Category | Value (in thousands, except per unit) | | :--- | :--- | | **Revenues** | | | Oil Revenue | $57,941 | | Natural Gas Revenue | $6,084 | | NGL Revenue | $4,075 | | **Total Revenues** | **$68,100** | | **Production** | | | Oil (MBbls) | 883 | | Natural Gas (MMcf) | 3,388 | | NGL (MBbls) | 469 | | **Total Production (MBoe)** | **1,916** | | **Average Daily Volume** | **21,052 Boe/d** | Q2 2025 Average Realized Prices | Commodity | Price (excluding derivatives) | | :--- | :--- | | Oil (per Bbl) | $65.66 | | Natural Gas (per Mcf) | $1.80 | | NGL (per Bbl) | $8.70 | [Operating Costs](index=4&type=section&id=Operating%20Costs) Operating costs for Q2 2025 included lease operating expenses, gathering, transportation, processing, and G&A expenses Q2 2025 Operating Costs | Expense Category | Total (in thousands) | Per Boe | | :--- | :--- | :--- | | Lease operating expenses | $11,348 | $5.92 | | Gathering, transportation, and processing | $2,234 | $1.17 | | Ad valorem and production taxes | $6,416 | $3.35 | | General and administrative expenses | $16,443 | $8.58 | [Acquisitions, Capital Expenditures, and Liquidity](index=4&type=section&id=Acquisitions%2C%20Capital%20Expenditures%2C%20and%20Liquidity) The company maintained **$98.7 million** in liquidity as of June 30, 2025, following significant cash expenditures for the Bayswater asset acquisition - As of June 30, 2025, the company had approximately **$98.7 million** of liquidity, comprising **$88.0 million** available under its credit facility and **$10.7 million** in cash[22](index=22&type=chunk) Cash Expenditures for Six Months Ended June 30, 2025 | Category | Amount (in thousands) | | :--- | :--- | | Cash paid for Bayswater asset purchase | $467,461 | | Capital expenditures – cash | $53,973 | | Leasehold purchases | $950 | [Outlook and Hedging Strategy](index=4&type=section&id=Outlook%20and%20Hedging%20Strategy) Prairie issued updated full-year 2025 guidance, projecting strong production and Adjusted EBITDA, supported by a robust hedging program through 2028 [2025 Full-Year Guidance](index=4&type=section&id=2025%20Full-Year%20Guidance) Updated full-year 2025 guidance projects average daily production of **24,000 – 26,000 BOEPD** and Adjusted EBITDA of **$240.0 – $260.0 million** Updated Full-Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Average Daily Production | 24,000 – 26,000 BOEPD | | Capital Expenditures | $260.0 – $280.0 million | | Adjusted EBITDA | $240.0 – $260.0 million | - Guidance is based on a commodity price deck of **$60.00 – $64.00 per Bbl** for oil and **$4.00 per Mcf** for gas[23](index=23&type=chunk) [Commodity Hedging Program](index=4&type=section&id=Commodity%20Hedging%20Program) The company implemented a comprehensive hedging program covering approximately **85%** of current daily production with contracts extending through 2028 - The company has executed a portfolio of hedges covering approximately **85%** of its current daily production[24](index=24&type=chunk) Crude Oil Swaps Weighted Average Price | Period | Weighted Avg. Price ($/Bbl) | | :--- | :--- | | Jul-Dec 2025 | $68.04 | | 2026 | $64.42 | | 2027 | $64.16 | | 2028 | $63.47 | Natural Gas Swaps Weighted Average Price | Period | Weighted Avg. Price ($/MMBtu) | | :--- | :--- | | Jul-Dec 2025 | $4.30 | | 2026 | $4.08 | | 2027 | $4.07 | | 2028 | $4.00 | [Financial Statements](index=9&type=section&id=Financial%20Statements) The condensed consolidated financial statements reflect transformative growth, with total assets increasing to **$858.5 million** and a shift to net income for Q2 2025 [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a substantial increase in total assets to **$858.5 million** as of June 30, 2025, primarily due to acquisitions Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $97,400 | $18,302 | | Total Property and Equipment, net | $738,313 | $134,620 | | **Total Assets** | **$858,540** | **$156,554** | | Total Current Liabilities | $161,638 | $63,009 | | Credit Facility | $387,000 | $28,000 | | **Total Liabilities** | **$599,777** | **$103,786** | | **Total Stockholders' Equity** | **$94,173** | **$52,768** | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statement of operations highlights a significant turnaround, moving from a net loss in Q2 2024 to a net income of **$35.7 million** in Q2 2025 Statement of Operations Summary (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $68,100 | $0 | | Total Operating Expenses | $49,164 | $8,569 | | Income (Loss) from Operations | $18,936 | $(8,569) | | **Net Income (Loss) from Continuing Operations** | **$35,683** | **$(8,514)** | | **Net Income (Loss) to Common Stockholders** | **$48,503** | **$(8,514)** | | **Basic EPS** | **$1.04** | **$(3.49)** | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements detail significant investing activities, primarily the Bayswater acquisition, financed through equity and credit facility borrowings Cash Flow Summary for Six Months Ended June 30 (in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $9,722 | $(8,448) | | Net cash used in investing activities | $(522,289) | $(11,841) | | Net cash provided by financing activities | $518,028 | $9,478 | | **Net increase (decrease) in cash** | **$5,461** | **$(10,811)** | | **Cash at end of period** | **$10,653** | **$2,226** | - Investing activities were dominated by the **$467.5 million** cash payment for the Bayswater asset purchase, while financing included **$148.3 million** from Series F Preferred Stock and **$359.0 million** in Credit Facility borrowings[47](index=47&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes Adjusted EBITDA, a non-GAAP measure, to assess performance, reporting **$38.6 million** for Q2 2025, a significant improvement from the prior year - Adjusted EBITDA is used by management to evaluate business performance, make operational decisions, and assess cash flow generation capabilities, adjusting net income for items like interest, taxes, DD&A, stock-based compensation, and unrealized derivative gains/losses[27](index=27&type=chunk)[28](index=28&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income (loss) from continuing operations | $35,683 | $(8,514) | | Adjustments | $2,881 | $1,456 | | **Adjusted EBITDA** | **$38,564** | **$(7,058)** | Reconciliation for Full-Year 2025 Guidance (in millions) | | Low Range | High Range | | :--- | :--- | :--- | | Net income | $192 | $202 | | Adjustments | $48 | $58 | | **Adjusted EBITDA** | **$240** | **$260** | [Other Disclosures](index=7&type=section&id=Other%20Disclosures) This section provides standard legal and corporate disclosures, including cautionary statements on forward-looking information and details on public communication channels - The report contains forward-looking statements that involve risks and uncertainties, and readers are cautioned not to place undue reliance on them[32](index=32&type=chunk)[33](index=33&type=chunk) - The company discloses material information through SEC filings, press releases, conference calls, its website, and official social media accounts on X (@PrairieOpCo) and LinkedIn[35](index=35&type=chunk)[36](index=36&type=chunk) - Prairie Operating Co. is a Houston-based independent energy company focused on the development and acquisition of oil and gas resources in the DJ Basin, primarily in the Niobrara and Codell formations[37](index=37&type=chunk)

Exhibit 99.1 Zevra Reports Second Quarter 2025 Financial Results and Corporate Update Q2 2025 net revenue of $25.9 million, driven by product net revenue of $21.8 million Completed sale of PRV for $150.0 million, bolstering the balance sheet as the Company executes on its commercial launches and development programs Submitted a Marketing Authorisation Application to the European Medicines Agency for the evaluation of arimoclomol for the treatment of Niemann-Pick Disease Type C Company to host conference cal ...