```markdown Green Dot Second Quarter 2025 Results [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Green Dot reported strong Q2 2025 results, with a 24% year-over-year increase in both GAAP and Non-GAAP total operating revenues. Non-GAAP net income and EPS saw significant growth of 66% and 60% respectively. This performance, driven by momentum in its Banking as a Service (BaaS) division and balance sheet optimization, led the company to raise its full-year 2025 guidance - The company is experiencing growing momentum and demand for its Banking as a Service (BaaS) platform, highlighted by new and expanded partnerships with companies like Samsung and Credit Sesame[1](index=1&type=chunk)[2](index=2&type=chunk) Q2 2025 Consolidated Financial Results Summary (YoY) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **GAAP Results** | | | | | Total operating revenues | $504.2M | $407.1M | 24% | | Net loss | $(47.0M) | $(28.7M) | 64% | | Diluted loss per common share | $(0.85) | $(0.54) | 57% | | **Non-GAAP Results** | | | | | Non-GAAP total operating revenues | $501.2M | $402.6M | 24% | | Adjusted EBITDA | $45.4M | $34.0M | 34% | | Non-GAAP net income | $22.2M | $13.4M | 66% | | Non-GAAP diluted EPS | $0.40 | $0.25 | 60% | [Key Business Metrics](index=2&type=section&id=Key%20Business%20Metrics) In Q2 2025, consolidated gross dollar volume increased to $38.5 billion, up 9% from Q2 2024. The B2B Services segment was a key driver, with a 10% YoY increase in active accounts to 1.81 million. Conversely, the Consumer Services segment saw a 5% decline in active accounts to 1.67 million Key Metrics Comparison (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Consolidated** | | | | | Gross dollar volume | $38,545 M | $32,130 M | +19.9% | | Number of active accounts | 3.48 M | 3.41 M | +2.1% | | **Consumer Services** | | | | | Number of active accounts | 1.67 M | 1.76 M | -5.1% | | **B2B Services** | | | | | Gross dollar volume | $34,620 M | $28,116 M | +23.1% | | Number of active accounts | 1.81 M | 1.65 M | +9.7% | [Segment Performance](index=9&type=section&id=Segment%20Performance) The B2B Services segment was the primary growth engine in Q2 2025, with revenue increasing 38% YoY to $348.7 million and segment profit rising 47% to $28.0 million. The Consumer Services segment experienced a slight decline in both revenue and profit, while Money Movement Services remained relatively stable Segment Revenue and Profit (Q2 2025 vs Q2 2024) | Segment (in thousands) | Q2 2025 Revenue | Q2 2024 Revenue | Q2 2025 Profit | Q2 2024 Profit | | :--- | :--- | :--- | :--- | :--- | | Consumer Services | $93,099 | $96,620 | $33,094 | $34,449 | | B2B Services | $348,650 | $252,056 | $27,980 | $19,078 | | Money Movement Services | $50,848 | $52,963 | $34,112 | $35,291 | 2025 Financial Guidance [Updated Full-Year Outlook](index=3&type=section&id=Updated%20Full-Year%20Outlook) Green Dot raised its full-year 2025 guidance for Adjusted EBITDA and Non-GAAP EPS, citing strong first-half performance and anticipated contributions from balance sheet optimization. The Non-GAAP total operating revenue guidance remains unchanged Updated Full-Year 2025 Guidance | Metric | Previous Guidance | Updated Guidance | | :--- | :--- | :--- | | Non-GAAP Total Operating Revenues | $2.0 billion - $2.1 billion | $2.0 billion - $2.1 billion (Unchanged) | | Adjusted EBITDA | $150 million - $160 million | $160 million - $170 million (Raised) | | Non-GAAP EPS | $1.14 - $1.28 | $1.28 - $1.42 (Raised) | Full-Year 2025 Non-GAAP EPS Guidance Components (in millions) | Component | Low Range | High Range | | :--- | :--- | :--- | | Adjusted EBITDA | $160.0 | $170.0 | | Depreciation and amortization* | $(62.0) | $(62.0) | | Net interest expense | $(6.0) | $(6.0) | | Non-GAAP pre-tax income | $92.0 | $102.0 | | Tax impact** | $(20.2) | $(22.4) | | **Non-GAAP net income** | **$71.8** | **$79.6** | Consolidated Financial Statements (Unaudited) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Green Dot's total assets stood at $5.58 billion, a slight increase from $5.43 billion at year-end 2024. The growth was primarily driven by a significant increase in unrestricted cash and cash equivalents to $2.31 billion. Total liabilities rose to $4.66 billion, mainly due to an increase in deposits Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Unrestricted cash and cash equivalents | $2,312,518 | $1,592,391 | | Total assets | $5,583,464 | $5,434,282 | | Deposits | $4,096,701 | $4,010,520 | | Total liabilities | $4,662,582 | $4,560,697 | | Total stockholders' equity | $920,882 | $873,585 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total operating revenues increased 24% YoY to $504.2 million, primarily due to higher 'Card revenues and other fees'. However, a significant increase in processing expenses and a large 'Other (expense), net' of $74.7 million resulted in a GAAP net loss of $47.0 million, which was wider than the $28.7 million loss in Q2 2024 Q2 Statement of Operations Summary (in thousands) | Account | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total operating revenues | $504,176 | $407,121 | 24% | | Total operating expenses | $490,777 | $430,788 | 14% | | Operating income (loss) | $13,399 | $(23,667) | N/A | | Net loss | $(47,025) | $(28,715) | 64% | | Diluted loss per share | $(0.85) | $(0.54) | 57% | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash provided by operating activities was $177.7 million, an increase from $120.7 million in the same period of 2024. Investing activities provided a net cash inflow of $501.7 million, largely from the sale of available-for-sale securities. Financing activities provided $40.8 million, resulting in a net increase in cash of $720.1 million for the period Six Months Ended June 30 Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $177,701 | $120,674 | | Net cash provided by investing activities | $501,664 | $7,783 | | Net cash provided by financing activities | $40,762 | $502,258 | | **Net increase in unrestricted cash** | **$720,127** | **$630,715** | Reconciliation of GAAP to Non-GAAP Measures [Reconciliation of Net Loss to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) This section details the adjustments made to reconcile the GAAP Net Loss to the Non-GAAP metric of Adjusted EBITDA. For Q2 2025, a Net Loss of $(47.0) million was adjusted for items such as losses in equity method investments ($75.9 million), depreciation & amortization, and stock-based compensation to arrive at an Adjusted EBITDA of $45.4 million Q2 2025 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Description | Amount | | :--- | :--- | | Net loss | $(47,025) | | Interest expense, net | $1,631 | | Income tax (benefit) | $(15,898) | | Depreciation and amortization | $16,078 | | Stock-based compensation & related taxes | $5,759 | | Amortization of acquired intangible assets | $5,199 | | Losses in equity method investments | $75,856 | | Other adjustments | $3,825 | | **Adjusted EBITDA** | **$45,425** | [Reconciliation of Net Loss to Non-GAAP Net Income](index=10&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Non-GAAP%20Net%20Income) This reconciliation adjusts the GAAP Net Loss to calculate Non-GAAP Net Income by adding back non-cash or non-recurring expenses. For Q2 2025, the GAAP Net Loss of $(47.0) million was adjusted for items like losses in equity method investments and stock-based compensation, and their tax effects, resulting in a Non-GAAP Net Income of $22.2 million Q2 2025 Reconciliation of Net Loss to Non-GAAP Net Income (in thousands) | Description | Amount | | :--- | :--- | | Net loss | $(47,025) | | Stock-based compensation & related taxes | $5,759 | | Amortization of acquired intangible assets | $5,199 | | Losses in equity method investments | $75,856 | | Income tax effect of adjustments | $(21,586) | | Other adjustments | $4,035 | | **Non-GAAP net income** | **$22,238** | [Reconciliation of Forward-Looking Guidance](index=12&type=section&id=Reconciliation%20of%20Forward-Looking%20Guidance) The company provides reconciliations for its full-year 2025 Non-GAAP guidance to the most directly comparable GAAP measures. This includes projecting a GAAP Net Loss in the range of $(51.4) million to $(44.3) million, which reconciles to the guided Adjusted EBITDA range of $160 million to $170 million FY 2025 Guidance Reconciliation: Net Loss to Adjusted EBITDA (in millions) | Metric | Low Range | High Range | | :--- | :--- | :--- | | Net loss | $(51.4) | $(44.3) | | Adjustments | $211.4 | $214.3 | | **Adjusted EBITDA** | **$160.0** | **$170.0** | FY 2025 Guidance Reconciliation: Net Loss to Non-GAAP Net Income (in millions) | Metric | Low Range | High Range | | :--- | :--- | :--- | | Net loss | $(51.4) | $(44.3) | | Adjustments | $123.2 | $123.9 | | **Non-GAAP net income** | **$71.8** | **$79.6** | Other Information [About Green Dot](index=5&type=section&id=About%20Green%20Dot) Green Dot Corporation is a financial technology platform and registered bank holding company that provides banking and payment solutions. Its portfolio includes brands such as GO2bank, the Green Dot Network (GDN) with over 95,000 retail locations, the Arc embedded finance platform, rapid! wage and disbursement solutions, and the Santa Barbara TPG tax division - Green Dot delivers a wide range of financial products through its brands, including GO2bank for consumers, Arc for embedded finance, rapid! for wage access, and SBTPG for tax refund processing[16](index=16&type=chunk) [Forward-Looking Statements and Non-GAAP Measures](index=4&type=section&id=Forward-Looking%20Statements%20and%20Non-GAAP%20Measures) The report contains forward-looking statements, including the 2025 financial guidance, which are subject to risks and uncertainties. The company also uses non-GAAP financial measures like Adjusted EBITDA and Non-GAAP Net Income to supplement its GAAP results, believing they provide useful information to investors regarding underlying business trends - The earnings release includes forward-looking statements concerning financial guidance and future events, which are subject to various risks detailed in the company's SEC filings[12](index=12&type=chunk) - Green Dot utilizes non-GAAP financial measures to provide insight into its core operating performance by excluding items like stock-based compensation, amortization of acquired intangibles, and certain legal expenses[13](index=13&type=chunk)[14](index=14&type=chunk) ```

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents ACV Auctions Inc.'s unaudited condensed consolidated financial statements for Q2 and H1 2025 and 2024, including operations, balance sheets, cash flows, and notes [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenue for Q2 2025 increased 20.6% to **$193.7 million**, with net loss narrowing to **$7.3 million** from **$17.1 million** year-over-year Condensed Consolidated Statements of Operations (in thousands) | | Three months ended June 30, | Six months ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Total revenue** | $193,703 | $160,624 | $376,400 | $306,313 | | **Total operating expenses** | $200,898 | $179,265 | $398,026 | $347,481 | | **Loss from operations** | $(7,195) | $(18,641) | $(21,626) | $(41,168) | | **Net loss** | $(7,298) | $(17,063) | $(22,115) | $(37,534) | | **Net loss per share - basic and diluted** | $(0.04) | $(0.10) | $(0.13) | $(0.23) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1.14 billion** from **$984.1 million**, with liabilities rising to **$689.5 million** and equity at **$448.8 million** Condensed Consolidated Balance Sheets (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $737,935 | $593,197 | | **Total assets** | $1,138,273 | $984,149 | | **Total current liabilities** | $462,658 | $381,166 | | **Total liabilities** | $689,490 | $544,145 | | **Total stockholders' equity** | $448,783 | $440,004 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations for H1 2025 significantly increased to **$80.3 million**, with **$93.6 million** used in investing and **$47.4 million** provided by financing activities Six Months Ended June 30, Cash Flows (in thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $80,339 | $47,491 | | **Net cash used in investing activities** | $(93,646) | $(3,997) | | **Net cash provided by (used in) financing activities** | $47,398 | $(11,025) | | **Net increase in cash, cash equivalents, and restricted cash** | $34,300 | $32,401 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's accounting policies and financial statement items, covering business nature, financial instruments, revenue, debt, compensation, acquisitions, and segments * The company operates in a single reportable segment, providing a wholesale auction marketplace for used vehicles, primarily in North America, with services including digital marketplaces, remarketing centers, data, transportation, and financing[27](index=27&type=chunk)[28](index=28&type=chunk)[71](index=71&type=chunk) Disaggregated Marketplace and Service Revenue (in thousands) | | Three months ended June 30, 2025 | Six months ended June 30, 2025 | | :--- | :--- | :--- | | Auction marketplace revenue | $92,267 | $182,250 | | Other marketplace revenue | $75,397 | $143,074 | | Data services revenue | $8,331 | $16,608 | | **Total** | **$175,995** | **$341,932** | * In Q2 2025, the company amended its 2021 Revolver, increasing borrowing capacity from **$160 million** to **$250 million** and extending maturity to June 2030[50](index=50&type=chunk) * The company completed four business acquisitions during 2024, including Indiana Auto Auction, 166 Auto Auction, and Alliance Auto Auctions, to expand offerings to dealers and commercial partners[63](index=63&type=chunk)[64](index=64&type=chunk)[67](index=67&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 financial results, highlighting a 22% revenue increase, improved profitability, narrowed net loss, and increased Adjusted EBITDA, covering key metrics, operations, liquidity, and debt Key Operating and Financial Metrics | | Three Months ended June 30, 2025 | Three Months ended June 30, 2024 | | :--- | :--- | :--- | | **Marketplace Units** | 210,429 | 186,526 | | **Marketplace GMV** | $2.7 billion | $2.4 billion | | **Adjusted EBITDA** | $18.6 million | $7.1 million | * Revenue growth was primarily volume-driven, with Marketplace Units increasing **13% YoY** for Q2 2025, also boosted by higher buyer fee rates and ancillary service adoption[121](index=121&type=chunk)[122](index=122&type=chunk) * Operating expenses as a percentage of revenue decreased across major categories, indicating improved operating leverage as the company scales[124](index=124&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) * The company's liquidity remains strong with **$258.4 million** in cash and cash equivalents and **$46.4 million** in marketable securities as of June 30, 2025, sufficient for the next 12 months[157](index=157&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) This section compares Q2 and H1 2025 and 2024 financial results, showing Q2 2025 total revenue growth of **20.6%** to **$193.7 million** and improved operating loss Revenue Comparison - Q2 2025 vs Q2 2024 (in thousands) | Revenue Type | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Marketplace and service | $175,995 | $144,126 | $31,869 | 22% | | Customer assurance | $17,708 | $16,498 | $1,210 | 7% | | **Total Revenue** | **$193,703** | **$160,624** | **$33,079** | **20.6%** | Operating Expenses Comparison - Q2 2025 vs Q2 2024 (in thousands) | Expense Category | Q2 2025 | Q2 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Marketplace and service cost | $74,319 | $64,253 | $10,066 | 16% | | Customer assurance cost | $16,909 | $14,558 | $2,351 | 16% | | Operations and technology | $45,801 | $39,694 | $6,107 | 15% | | Selling, general, and administrative | $52,972 | $51,912 | $1,060 | 2% | | Depreciation and amortization | $10,897 | $8,848 | $2,049 | 23% | [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Adjusted EBITDA and Non-GAAP Net Income (Loss) to evaluate performance, with Q2 2025 Adjusted EBITDA significantly increasing to **$18.6 million** from **$7.1 million** Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | Three months ended June 30, | Six months ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Net loss** | $(7,298) | $(17,063) | $(22,115) | $(37,534) | | Depreciation and amortization | 10,904 | 8,880 | 21,450 | 16,682 | | Stock-based compensation | 15,454 | 14,965 | 32,028 | 29,794 | | Other adjustments | (483) | 286 | 818 | 1,875 | | **Adjusted EBITDA** | **$18,577** | **$7,078** | **$32,485** | **$11,347** | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had **$258.4 million** in cash, **$46.4 million** in marketable securities, and **$186.5 million** in long-term debt, with improved H1 2025 operating cash flow * Principal sources of liquidity include **$258.4 million** in cash and cash equivalents, **$46.4 million** in marketable securities, and cash flow from operations[157](index=157&type=chunk) * The company has two main debt facilities: the 2021 Revolver with **$250 million** capacity (**$100.0 million** drawn) and a Warehouse Facility with **$125 million** capacity (**$86.5 million** drawn) for auto floorplan loans[162](index=162&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) Summary of Cash Flows - Six Months Ended June 30 (in thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $80,339 | $47,491 | | Net cash used in investing activities | $(93,646) | $(3,997) | | Net cash provided by (used in) financing activities | $47,398 | $(11,025) | [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations, affecting interest income and variable-rate debt, with **$186.5 million** in SOFR-indexed borrowings as of June 30, 2025 * The primary market risk is interest rate risk, impacting both interest-earning assets and variable-rate debt[181](index=181&type=chunk) * As of June 30, 2025, the company had **$186.5 million** in variable-rate borrowings indexed to SOFR, where interest rate increases will lead to higher expense[183](index=183&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter * The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[185](index=185&type=chunk) * No material changes in internal control over financial reporting were identified during the quarter[186](index=186&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material pending or threatened litigation that would adversely affect its business or financial results * The company states it is not presently subject to any material litigation[189](index=189&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, were reported * No material changes to risk factors were reported since the last Annual Report[190](index=190&type=chunk) [Other Information](index=43&type=section&id=Item%205.%20Other%20Information) This section discloses the adoption, modification, or termination of Rule 10b5-1 trading plans by Section 16 officers during Q2 2025, including actions by the CEO, CAO, COO, and CFO * CFO William Zerella terminated a trading plan on April 7, 2025[196](index=196&type=chunk) * CAO Andrew Peer adopted a trading plan on June 11, 2025[196](index=196&type=chunk) * COO Vikas Mehta modified a trading plan on June 12, 2025, and CEO George Chamoun adopted a new trading plan on June 13, 2025[199](index=199&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Amended and Restated Certificate of Incorporation, CEO and CFO certifications, and XBRL data files * Key exhibits filed include the Amended and Restated Certificate of Incorporation, Employee Stock Purchase Plan, and Sarbanes-Oxley Act certifications from the Principal Executive Officer and Principal Financial Officer[200](index=200&type=chunk)

[Part I: Financial Information](index=3&type=section&id=Part%20I.%E2%80%94Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported a net loss for Q2 and H1 2025, driven by revenue and gross profit declines, with debt maturities raising going concern doubts [Consolidated Statement of Operations](index=3&type=section&id=Consolidated%20Statement%20of%20Operations%20(Unaudited)) Consolidated Statement of Operations Highlights (in millions, except 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 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $263 | $267 | $510 | $516 | | **Gross profit** | $51 | $58 | $97 | $107 | | **(Loss) earnings from operations** | $(5) | $2 | $(18) | $9 | | **NET (LOSS) EARNINGS** | $(26) | $26 | $(33) | $58 | | **Diluted net (loss) earnings per share** | $(0.36) | $0.23 | $(0.48) | $0.52 | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position%20(Unaudited)) Consolidated Statement of Financial Position Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $155 | $201 | | **Total current assets** | $574 | $595 | | **TOTAL ASSETS** | $1,933 | $2,001 | | **Total current liabilities** | $729 | $261 | | **TOTAL LIABILITIES** | $1,183 | $1,142 | | **Total shareholders' equity** | $528 | $641 | [Consolidated Statement of Cash Flows](index=6&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%20(Unaudited)) Consolidated Statement of Cash Flows Highlights (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(30) | $10 | | **Net cash used in investing activities** | $(19) | $(2) | | **Net cash used in financing activities** | $(4) | $(20) | | **Net decrease in cash, cash equivalents and restricted cash** | $(48) | $(17) | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Financial%20Statements%20(Unaudited)) - The company's financial statements have been prepared on a going concern basis, but conditions exist that raise **substantial doubt about its ability to continue as a going concern** due to debt maturing within twelve months for which the company does not have committed financing[28](index=28&type=chunk)[29](index=29&type=chunk) - As of June 30, 2025, the company has Term Loans with a carrying value of approximately **$477 million** and Series B Preferred Stock of **$99 million**, both of which have accelerated maturity dates in **May 2026**[26](index=26&type=chunk) - In Q2 2025, Kodak recorded a **$17 million impairment charge** on its investment in Wildcat Discovery Technologies, Inc. due to strategic alternatives being considered by Wildcat[109](index=109&type=chunk) - As a subsequent event, on **August 8, 2025**, the company **exchanged all outstanding shares of its Series C Preferred Stock for 15,103,163 shares of common stock**, **fully discharging its obligations** related to the Series C Preferred Stock[154](index=154&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 1% revenue decline in Q2 and H1 2025, driven by Print segment weakness, offset by Advanced Materials growth, while addressing liquidity and going concern doubts [Executive Overview](index=38&type=section&id=EXECUTIVE%20OVERVIEW) - Consolidated revenues for Q2 and H1 2025 **decreased by 1%** compared to the same periods in 2024, amounting to **$263 million** and **$510 million**, respectively[162](index=162&type=chunk) - The **Print segment's revenues declined by 4% in Q2 and 7% in H1 2025**, while the **Advanced Materials and Chemicals segment's revenues grew by 3% in Q2 and 13% in H1 2025**[163](index=163&type=chunk) - Kodak has successfully petitioned the U.S. government for **anti-dumping and countervailing duties** on unfairly traded imports of printing plates from China and Japan to combat increasing competition[173](index=173&type=chunk) - Strategic growth initiatives include **developing materials for EV batteries**, **manufacturing diagnostic test reagents**, and **commercializing proprietary technologies for light-blocking fabrics and transparent antennas**[182](index=182&type=chunk) [Results of Operations](index=45&type=section&id=RESULTS%20OF%20OPERATIONS) Overall Results of Operations (in millions) | 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** | $263 | $267 | $510 | $516 | | **Gross Profit** | $51 | $58 | $97 | $107 | | **NET (LOSS) EARNINGS** | $(26) | $26 | $(33) | $58 | - Gross profit **declined by $7 million in Q2 and $10 million in H1 2025**, primarily due to higher aluminum costs, lower volumes, and increased manufacturing costs[186](index=186&type=chunk)[187](index=187&type=chunk) Segment Operational EBITDA (in millions) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Print** | $(4) | $0 | $(13) | $0 | | **Advanced Materials and Chemicals** | $8 | $8 | $15 | $9 | | **Brand** | $5 | $4 | $9 | $7 | [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) - The company's cash balance **decreased by $46 million** since year-end 2024 to **$155 million** as of June 30, 2025[217](index=217&type=chunk) - Kodak has **substantial doubt about its ability to continue as a going concern** because it has debt maturing within twelve months and does not have committed financing or available liquidity to meet these obligations[225](index=225&type=chunk) - The company's plan to fund its obligations is **dependent on receiving sufficient proceeds from the termination of the Kodak Retirement Income Plan (KRIP)**, which is expected to provide net proceeds of **approximately $500 million** after taxes and funding a replacement plan[226](index=226&type=chunk)[235](index=235&type=chunk) - On **August 8, 2025**, the company **exchanged all outstanding Series C Preferred Stock (carrying value of $123 million) for common stock**, **fully discharging this obligation**[249](index=249&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, primarily foreign currency exchange rate fluctuations, due to its global operations - Due to its global operations, Kodak is **exposed to market risks**, primarily from **fluctuations in foreign currency exchange rates**, which can impact sales and net income[254](index=254&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls were effective as of June 30, 2025, with no material changes to internal controls over financial reporting identified - Management concluded that the company's **disclosure controls and procedures were effective** as of the end of the period covered by the report[255](index=255&type=chunk) - **No changes in internal control over financial reporting** that materially affected, or are reasonably likely to materially affect, the company's internal controls were identified during the most recently completed fiscal quarter[257](index=257&type=chunk) [Part II: Other Information](index=59&type=section&id=Part%20II.%20%E2%80%94Other%20Information) [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing legal proceedings, including tax litigation in Brazil and patent infringement claims from FUJIFILM, which are not expected to have a material adverse effect - The company is involved in **various litigation matters in Brazil related to taxes** and is also defending **patent infringement claims brought by FUJIFILM Corporation concerning its SONORA process-free plates**[82](index=82&type=chunk)[84](index=84&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) The company highlights a new risk: an investor's voting power increased to 15.7% after the Series C Preferred Stock exchange, potentially increasing their influence over company actions - As a result of the Series C Preferred Stock Exchange, an investor's **voting power increased to 15.7%**, which may allow for **greater influence on future company actions** that require shareholder approval[262](index=262&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales but repurchased 79,916 shares at an average of $6.45 per share to satisfy tax withholding obligations for employee restricted stock units - There were **no unregistered sales of equity securities** during the quarter ended June 30, 2025[263](index=263&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1-30, 2025 | 5,910 | $6.50 | | May 1-31, 2025 | 71,001 | $6.47 | | June 1-30, 2025 | 3,005 | $5.81 | | **Total** | **79,916** | **$6.45** | [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) On August 8, 2025, the company exchanged all Series C Preferred Stock for 15.1 million common shares, fully discharging obligations and granting the investor board nomination rights - On **August 8, 2025**, the company **exchanged all outstanding Series C Preferred Stock for 15,103,163 shares of common stock**, based on an exchange price of **$8.25 per share**[267](index=267&type=chunk)[268](index=268&type=chunk) - The agreement grants the investor the **right to nominate one member to the Board of Directors** as long as the investor holds **at least 10% of the company's outstanding common stock**[270](index=270&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section indexes all exhibits filed with the 10-Q report, including corporate governance documents, the Series C Preferred Stock Exchange Agreement, and CEO/CFO certifications - Key exhibits filed with this report include the **Series C Preferred Stock Exchange Agreement (Exhibit 4.1)** and the **Amended and Restated Registration Rights Agreement (Exhibit 4.2)**, both dated **August 8, 2025**[278](index=278&type=chunk)

[Filing Information](index=1&type=section&id=Filing%20Information) This section details the administrative information for the Form 8-K filing, including registrant details, event date, and registered securities [General Report Details](index=1&type=section&id=General%20Report%20Details) This section outlines the registrant's administrative information, event date, emerging growth company status, and registered securities - **NET POWER INC.**, a Delaware corporation, is the registrant[2](index=2&type=chunk) - The earliest event reported occurred on **August 11, 2025**[2](index=2&type=chunk) Securities Registered | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Class A Common Stock, par value $0.0001 per share | NPWR | The New York Stock Exchange | | Warrants, each exercisable for one share of Class A Common Stock at a price of $11.50 | NPWR WS | The New York Stock Exchange | - The registrant is identified as an **emerging growth company**[4](index=4&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) This item reports Net Power Inc.'s financial results for the quarter ended June 30, 2025, via a press release [Announcement of Financial Results](index=2&type=section&id=Announcement%20of%20Financial%20Results) Net Power Inc. announced its Q2 2025 financial results via a press release, furnished as Exhibit 99.1, for informational purposes - Net Power Inc. released **financial results for the quarter ended June 30, 2025**, on August 11, 2025[5](index=5&type=chunk) - The press release is furnished as **Exhibit 99.1** and incorporated by reference[5](index=5&type=chunk) - Information in Item 2.02 and Exhibit 99.1 is **furnished, not filed**, under Section 18 of the Securities Exchange Act of 1934[6](index=6&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This item lists the exhibits accompanying the Form 8-K filing, including the press release and interactive data file [Exhibits Filed](index=2&type=section&id=Exhibits%20Filed) This section enumerates the exhibits accompanying the Form 8-K, including the financial results press release and interactive data file Exhibits | Exhibit Number | Description | | :--- | :--- | | 99.1 | Press release dated August 11, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signature](index=3&type=section&id=Signature) This item confirms the official signing of the report by the Chief Executive Officer [Report Signatories](index=3&type=section&id=Report%20Signatories) The report was officially signed by Daniel J. Rice IV, CEO of Net Power Inc., on August 11, 2025 - The report was signed by **Daniel J. Rice IV**, Chief Executive Officer of NET POWER INC[12](index=12&type=chunk) - The report was dated and signed on **August 11, 2025**[11](index=11&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Kodak reported a decrease in consolidated revenues, gross profit, and a significant GAAP net loss in Q2 2025 compared to Q2 2024, alongside a decline in Operational EBITDA and cash balance | Metric | Q2 2025 | Q2 2024 | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Consolidated Revenues | $263M | $267M | $(4)M | (1)% | | Gross Profit | $51M | $58M | $(7)M | (12)% | | Gross Profit Percentage | 19% | 22% | (3) ppts | - | | GAAP Net Loss (Income) | $(26)M | $26M | $(52)M | (200)% | | Operational EBITDA | $9M | $12M | $(3)M | (25)% | | Quarter-end Cash Balance | $155M | $201M (Dec 31, 2024) | $(46)M | - | | Cash Flow from Operations | - | - | Decreased by $40M | - | [Management Commentary & Strategic Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Strategic%20Outlook) Management acknowledged an uncertain business environment but highlighted progress on long-term plans, particularly the growth of the Advanced Materials & Chemicals (AM&C) business, including FDA registration for its cGMP pharmaceutical manufacturing facility. The company is assessing the impact of new tariffs and remains committed to U.S. manufacturing, while also focusing on improving operational efficiency, strengthening the balance sheet, and managing debt and pension obligations - Continued progress against long-term plan despite uncertain business environment[1](index=1&type=chunk) - Accelerating growth of Advanced Materials & Chemicals (AM&C) business[1](index=1&type=chunk) - AM&C group's cGMP pharmaceutical manufacturing facility is now FDA registered and certified to manufacture and sell regulated pharmaceutical products, expanding current unregulated business[1](index=1&type=chunk)[3](index=3&type=chunk) - Facility will begin manufacturing phosphate buffered saline (PBS) and aims for more sophisticated specialty products like injectable IV saline[3](index=3&type=chunk) - Commitment to U.S. manufacturing, producing lithographic printing plates, photographic/industrial films, inkjet presses/inks, and pharmaceutical key starting ingredients[1](index=1&type=chunk) - Assessing potential impact of new tariffs, expecting them to protect American businesses[1](index=1&type=chunk) - Focus on serving customers, strengthening the balance sheet, and developing growth businesses for the balance of the year[3](index=3&type=chunk) - Improving operational efficiency and investing in growth initiatives in the AM&C group[3](index=3&type=chunk) - Reducing costs and converting investments into long-term growth for the second half of the year[3](index=3&type=chunk) - Progressing with the termination of the U.S. Kodak Retirement Income Plan (KRIP) and reversion of excess funds to pay down debt, with completion anticipated by December 2025[3](index=3&type=chunk)[6](index=6&type=chunk) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Consolidated revenues for Q2 2025 decreased by 1% year-over-year to $263 million. After adjusting for a favorable foreign exchange impact of $5 million, the decrease was 3% or $9 million | Metric | Q2 2025 | Q2 2024 | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $263M | $267M | $(4)M | (1)% | | Favorable FX Impact | $5M | - | - | - | | Revenues (Constant Currency) | - | - | $(9)M | (3)% | [Profitability Analysis](index=1&type=section&id=Profitability%20Analysis) Kodak experienced a significant decline in profitability, moving from a net income of $26 million in Q2 2024 to a net loss of $26 million in Q2 2025, a 200% decrease. Operational EBITDA also fell by 25% to $9 million, primarily due to lower volumes and higher aluminum and manufacturing costs, partially offset by price increases and reduced IT/organizational investments | Metric | Q2 2025 | Q2 2024 | Change ($M) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | GAAP Net (Loss) Income | $(26)M | $26M | $(52)M | (200)% | | Operational EBITDA | $9M | $12M | $(3)M | (25)% | | Operational EBITDA (Constant Currency) | $8M | $12M | $(4)M | (33)% | | Gross Profit | $51M | $58M | $(7)M | (12)% | | Gross Profit Percentage | 19% | 22% | (3) ppts | - | - Decrease in Operational EBITDA primarily driven by lower volumes and higher aluminum and manufacturing costs[4](index=4&type=chunk) - Partially offset by price increases and lower spend on investments in information technology systems, organizational structure, and costs associated with trade shows[4](index=4&type=chunk) [Cash Flow and Liquidity](index=1&type=section&id=Cash%20Flow%20and%20Liquidity) Kodak's cash balance decreased by $46 million from December 31, 2024, to $155 million at the end of Q2 2025. This decline was mainly driven by capital expenditures for growth initiatives, changes in working capital, and the impact of higher costs and lower operational profitability. Cash flow from operations decreased by $40 million year-over-year | Metric | June 30, 2025 | Dec 31, 2024 | Change ($M) | | :--- | :--- | :--- | :--- | | Quarter-end Cash Balance | $155M | $201M | $(46)M | - Cash flow from operations decreased by **$40 million** from the prior-year period[2](index=2&type=chunk)[5](index=5&type=chunk) - Decrease in cash balance primarily driven by capital expenditures to fund growth initiatives, changes in working capital, and the impact of higher costs and lower profitability from operations[2](index=2&type=chunk)[5](index=5&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance) [Revenue by Segment](index=4&type=section&id=Revenue%20by%20Segment) In Q2 2025, Print segment revenue decreased by $8 million (or $13 million on a constant currency basis) compared to Q2 2024. Conversely, Advanced Materials & Chemicals (AM&C) and Brand segments both saw revenue increases of $2 million each | Segment | Q2 2025 Revenue ($M) | Q2 2024 Revenue ($M) | Change ($M) | Change (Constant Currency, $M) | | :--- | :--- | :--- | :--- | :--- | | Print | $178 | $186 | $(8) | $(13) | | Advanced Materials & Chemicals | $75 | $73 | $2 | $2 | | Brand | $6 | $4 | $2 | $2 | | Total | $259 | $263 | $(4) | $(9) | [Operational EBITDA by Segment](index=4&type=section&id=Operational%20EBITDA%20by%20Segment) The Print segment's Operational EBITDA declined by $4 million in Q2 2025 compared to Q2 2024, resulting in a loss of $4 million. The Advanced Materials & Chemicals segment maintained its Operational EBITDA at $8 million, while the Brand segment saw a $1 million increase to $5 million | Segment | Q2 2025 Operational EBITDA ($M) | Q2 2024 Operational EBITDA ($M) | Change ($M) | Change (Constant Currency, $M) | | :--- | :--- | :--- | :--- | :--- | | Print | $(4) | $0 | $(4) | $(4) | | Advanced Materials & Chemicals | $8 | $8 | $0 | $(1) | | Brand | $5 | $4 | $1 | $1 | | Total | $9 | $12 | $(3) | $(4) | [Operational Developments](index=1&type=section&id=Operational%20Developments) [Advanced Materials & Chemicals (AM&C) Expansion](index=1&type=section&id=Advanced%20Materials%20%26%20Chemicals%20(AM%26C)%20Expansion) Kodak's AM&C group's cGMP pharmaceutical manufacturing facility has achieved FDA registration and certification, enabling it to manufacture and sell regulated pharmaceutical products. This expands its existing business in unregulated pharmaceutical products, with initial operations focused on phosphate buffered saline (PBS) and future plans for more complex specialty products like injectable IV saline - cGMP pharmaceutical manufacturing facility is now registered with the FDA and certified to manufacture and sell regulated pharmaceutical products[1](index=1&type=chunk)[3](index=3&type=chunk) - This expands the current business in unregulated pharmaceutical products[1](index=1&type=chunk)[3](index=3&type=chunk) - The facility will begin operation manufacturing phosphate buffered saline (PBS) for laboratory use[3](index=3&type=chunk) - Future plans include manufacturing more sophisticated specialty products, such as injectable IV saline[3](index=3&type=chunk) [U.S. Manufacturing and Tariffs](index=1&type=section&id=U.S.%20Manufacturing%20and%20Tariffs) Kodak is committed to U.S. manufacturing, producing a wide range of products domestically, including lithographic printing plates, photographic and industrial films, inkjet presses and inks, and pharmaceutical key starting ingredients. The company is currently assessing the potential impact of new tariffs, anticipating they are designed to protect American businesses like theirs - Kodak is committed to U.S. manufacturing[1](index=1&type=chunk) - Manufactures a wide range of products in the U.S., including lithographic printing plates, photographic and industrial films, inkjet presses and inks, and pharmaceutical key starting ingredients[1](index=1&type=chunk) - Assessing the potential impact of new tariffs going forward[1](index=1&type=chunk) - Expects tariffs instituted by the U.S. government are designed to protect American businesses[1](index=1&type=chunk) [Debt and Pension Management](index=2&type=section&id=Debt%20and%20Pension%20Management) Kodak is actively progressing with the termination of its U.S. Kodak Retirement Income Plan (KRIP) and expects to use the reversion of excess funds to reduce term debt. The company anticipates a clear understanding of participant obligations by August 15 and completion of the reversion by December 2025. These plans are crucial for funding preferred stock and debt obligations - Termination of U.S. Kodak Retirement Income Plan (KRIP) and subsequent reversion of excess funds to pay down debt is progressing as planned[6](index=6&type=chunk)[7](index=7&type=chunk) - Expects to have a clear understanding of how to satisfy obligations to all plan participants by August 15[6](index=6&type=chunk)[7](index=7&type=chunk) - Anticipates completing the reversion by December 2025[6](index=6&type=chunk)[7](index=7&type=chunk) - Proceeds from KRIP reversion are planned to reduce term debt and to amend, extend or refinance remaining debt and preferred stock obligations[6](index=6&type=chunk)[7](index=7&type=chunk) [Going Concern Disclosure](index=3&type=section&id=Going%20Concern%20Disclosure) Kodak has included a going concern disclosure in its Q2 2025 Form 10-Q. The company's plans to fund its preferred stock and debt obligations, primarily through proceeds from the expected reversion of cash from the Kodak Retirement Income Plan and refinancing efforts, are not solely within its control and thus not deemed "probable" under U.S. GAAP. Consequently, these conditions raise substantial doubt about Kodak's ability to continue as a going concern - Kodak included a disclosure regarding its going concern assessment in its Q2 2025 Form 10-Q filing[7](index=7&type=chunk) - Plans to fund preferred stock and debt obligations rely on proceeds from the expected reversion of cash from the Kodak Retirement Income Plan and amending, extending, or refinancing remaining debt and preferred stock[7](index=7&type=chunk) - These plans are not solely within Kodak's control and are not deemed "probable" under U.S. GAAP accounting rules[7](index=7&type=chunk) - These conditions raise substantial doubt about the Company's ability to continue as a going concern as of the issuance date of the Q2 financials[7](index=7&type=chunk) [About Eastman Kodak Company](index=4&type=section&id=About%20Eastman%20Kodak%20Company) Eastman Kodak Company is a global manufacturer specializing in commercial print and advanced materials & chemicals. Leveraging over 130 years of R&D and 79,000 patents, Kodak focuses on technology and science to deliver innovative, award-winning products and sustainable solutions for commercial printers worldwide, emphasizing a customer-first approach and environmental stewardship - Leading global manufacturer focused on commercial print and advanced materials & chemicals[11](index=11&type=chunk) - Holds **79,000 worldwide patents** earned over **130 years of R&D**[11](index=11&type=chunk) - Committed to environmental stewardship, including industry leadership in developing sustainable solutions for print[11](index=11&type=chunk) - Offers innovative, award-winning products combined with a customer-first approach[11](index=11&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section defines forward-looking statements as per the Private Securities Litigation Reform Act of 1995, outlining that such statements concern Kodak's future plans, objectives, and financial performance, and are based on current expectations and assumptions. It details important factors, including financial performance, strategic objectives, financing, foreign exchange rates, commodity prices, tariffs, global economic environment, competition, supply chain, compliance, technology trends (including AI), strategic transactions, legal claims, and force majeure events, that could cause actual results to differ materially from these statements. Kodak disclaims any obligation to update these statements unless required by law - Defines "forward-looking statements" as per the Private Securities Litigation Reform Act of 1995, covering future plans, objectives, goals, strategies, revenue, performance, capital expenditures, liquidity, investments, financing needs, and business trends[13](index=13&type=chunk)[14](index=14&type=chunk) - Identifies common forward-looking terms like "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "predicts," "forecasts," "strategy," "continues," "goals," "targets," and future/conditional verbs[13](index=13&type=chunk)[14](index=14&type=chunk) - States that all forward-looking statements are based on Kodak's current expectations and assumptions[13](index=13&type=chunk)[14](index=14&type=chunk) - Lists important factors that could cause actual results to differ materially, including: ability to improve and sustain operating structure, cash flow, profitability; ability to achieve strategic objectives, cash forecasts, financial projections; ability to obtain additional financing and manage worldwide cash; receipt of projected reversion proceeds from KRIP liquidation; ability to fund investments, capital needs, and service debt/preferred stock; changes in foreign currency exchange rates, commodity prices, interest rates, and tariff rates; impact of global economic environment (inflation, geopolitical issues, trade policies, raw material costs, supply chain disruptions); ability to compete with well-financed industry participants or lower-cost competitors; performance of third-party suppliers and ability to address supply chain disruptions; ability to comply with credit facility covenants; ability to anticipate technology and industry trends (including AI) and develop new products; ability to effect strategic transactions and achieve benefits; ability to manage and resolve current and legacy claims; ability to discontinue, sell, or spin-off non-core businesses or monetize assets; and potential impact of force majeure events, cyber-attacks, or IT outages[15](index=15&type=chunk)[16](index=16&type=chunk) - Kodak undertakes no obligation to update or revise forward-looking statements, except as required by law[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) [Operational EBITDA Definition and Reconciliation](index=6&type=section&id=Operational%20EBITDA%20Definition%20and%20Reconciliation) Kodak uses non-GAAP financial measures, specifically Operational EBITDA and constant currency revenues/Operational EBITDA, to provide investors with insights into its underlying performance. Operational EBITDA is defined as earnings from continuing operations excluding various non-operating and non-cash items. The reconciliation shows a decrease in Operational EBITDA from $12 million in Q2 2024 to $9 million in Q2 2025, further decreasing to $8 million on a constant currency basis - Non-GAAP Measures Used: Operational EBITDA; Revenues and Operational EBITDA on a constant currency basis[18](index=18&type=chunk) - Purpose: To provide investors with the same financial data management uses to assess underlying performance, financial condition, results of operations, and cash flow[19](index=19&type=chunk) - Operational EBITDA Definition: Represents (loss) earnings from continuing operations excluding: provision for income taxes; non-service cost components of pension and other postemployment benefits income; depreciation and amortization expense; restructuring costs and other; consulting and other costs; stock-based compensation expense; idle costs; other operating expense; interest expense; and other charges, net[20](index=20&type=chunk) - Constant Currency Calculation: Uses average foreign exchange rates for the three months ended June 30, 2024, instead of actual average rates for Q2 2025[21](index=21&type=chunk) | (in millions) | Q2 2025 | Q2 2024 | $Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net (Loss) Income | $(26) | $26 | $(52) | (200)% | | *Adjustments:* | | | | | | Depreciation and amortization | 7 | 6 | 1 | | | Restructuring costs and other | 6 | — | 6 | | | Stock based compensation | 1 | 1 | — | | | Consulting and other costs | (1) | 1 | (2) | | | Idle costs | 1 | 1 | — | | | Other operating expense, net | — | 1 | (1) | | | Interest expense | 15 | 15 | — | | | Pension income excluding service cost component | (16) | (41) | 25 | | | Other charges, net | 20 | 1 | 19 | | | Provision for income taxes | 2 | 1 | 1 | | | **Operational EBITDA** | **$9** | **$12** | **$(3)** | **(25)%** | | Impact of foreign exchange | (1) | — | (1) | | | **Operational EBITDA on a constant currency basis** | **$8** | **$12** | **$(4)** | **(33)%** | [Unaudited Financial Statements](index=8&type=section&id=Unaudited%20Financial%20Statements) [Consolidated Statement of Operations](index=8&type=section&id=Consolidated%20Statement%20of%20Operations) The Consolidated Statement of Operations shows a total revenue of $263 million for Q2 2025, down from $267 million in Q2 2024. The company reported a net loss of $26 million in Q2 2025, a significant decline from a net income of $26 million in the prior-year quarter | (in millions, except per share data) | 2025 | 2024 | | :--- | :--- | :--- | | **Revenues** | | | | Sales | $226 | $227 | | Services | $37 | $40 | | **Total revenues** | **$263** | **$267** | | **Gross profit** | **$51** | **$58** | | (Loss) earnings from operations before interest expense, pension income excluding service cost component, other charges, net and income taxes | $(5) | $2 | | (Loss) earnings from operations before income taxes | $(24) | $27 | | **NET (LOSS) EARNINGS** | **$(26)** | **$26** | | Basic net (loss) earnings per share | $(0.36) | $0.25 | | Diluted net (loss) earnings per share | $(0.36) | $0.23 | [Consolidated Statement of Financial Position](index=9&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, Kodak's total assets were $1,933 million, a decrease from $2,001 million at December 31, 2024. Key changes include a decrease in cash and cash equivalents, an increase in inventories, and a significant increase in short-term borrowings and current portion of long-term debt from $1 million to $479 million, while long-term debt decreased from $466 million to $11 million. Total liabilities increased, and total shareholders' equity decreased | (in millions, except per share data) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $155 | $201 | | Inventories, net | $238 | $219 | | Total current assets | $574 | $595 | | Total assets | $1,933 | $2,001 | | **LIABILITIES & EQUITY** | | | | Short-term borrowings and current portion of long-term debt | $479 | $1 | | Total current liabilities | $729 | $261 | | Long-term debt, net of current portion | $11 | $466 | | Total liabilities | $1,183 | $1,142 | | Redeemable, convertible preferred stock | $222 | $218 | | Total shareholders' equity | $528 | $641 | [Consolidated Statement of Cash Flows](index=10&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, Kodak reported net cash used in operating activities of $30 million, a significant shift from $10 million provided in the prior-year period. Net cash used in investing activities increased to $19 million, and net cash used in financing activities decreased to $4 million. Overall, there was a net decrease in cash, cash equivalents, and restricted cash of $48 million | (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net (loss) earnings | $(33) | $58 | | Net cash (used in) provided by operating activities | $(30) | $10 | | Net cash used in investing activities | $(19) | $(2) | | Net cash used in financing activities | $(4) | $(20) | | Net decrease in cash, cash equivalents and restricted cash | $(48) | $(17) | | Cash, cash equivalents and restricted cash, end of period | $253 | $360 |

Life360 Overview Life360 demonstrates global scale, durable growth, and expanding profitability, highlighted by significant year-over-year increases in revenue and Adjusted EBITDA, alongside a large global user base and extensive miles driven with crash detection [Life360 at a Glance](index=5&type=section&id=Life360%20at%20a%20glance) Life360 demonstrates global scale, durable growth, and expanding profitability, highlighted by significant year-over-year increases in revenue and Adjusted EBITDA, alongside a large global user base and extensive miles driven with crash detection Q2'25 Key Achievements | Metric | Q2'25 Value | YoY Change | | :-------------------------------- | :---------- | :--------- | | Revenue | $115.4 million | +36% | | Adjusted EBITDA | $20.3 million | - | | Adjusted EBITDA Margin | 18% | - | | Global Monthly Active Users (MAU) | ~88.0 million | - | | Global Paying Circles | ~2.5 million | - | | Global Monthly Miles driven with Life360 Crash Detection | 428 billion | - | | Safe arrival notifications | 70 billion | - | | Tile devices | 10.4 million+ | - | | Countries | 180+ | - | | U.S. Penetration | 11-17% | - | | Top Social Networking App (by DAU in U.S.) | 4 | - | [Product Offering & Value Proposition](index=6&type=section&id=Product%20Offering%20%26%20Value%20Proposition) Life360 positions itself as a 'super-app' for families, offering peace of mind through comprehensive safety and connection features. Its distinctive product suite includes real-time location sharing, driving safety, item tracking, emergency dispatch, and family messaging, catering to diverse family needs - Life360 makes everyday family life better through safety and connection, offering location sharing, market-leading driving safety, and premium safety services[18](index=18&type=chunk)[19](index=19&type=chunk) - The platform provides a comprehensive offering including effortless daily coordination with advanced location sharing and item tracking, digital safety for protection and prevention, and expert emergency assistance anytime, anywhere[23](index=23&type=chunk)[25](index=25&type=chunk) [Competitive Moat & Differentiation](index=8&type=section&id=Competitive%20Moat%20%26%20Differentiati) Life360 maintains a competitive advantage by uniquely focusing on family safety, integrating a proprietary technology platform, and offering a holistic experience that combines mobile premium services and devices, unlike isolated point solutions from competitors - Life360's competitive moat is built on its unique focus on family safety, providing peace of mind and connection, supported by proprietary technology and cross-platform solutions[26](index=26&type=chunk)[27](index=27&type=chunk) - Life360 offers a one-stop holistic experience, combining mobile premium services and devices, which differentiates it from competitors that provide only isolated point solutions[30](index=30&type=chunk)[31](index=31&type=chunk) [User Engagement & Retention](index=10&type=section&id=User%20Engagement%20%26%20Retention) Life360 demonstrates strong user engagement and retention, ranking among the highest DAUs across all apps in the U.S. and outperforming the social media average in app retention, indicating significant product stickiness driven by its core safety features US Lifestyle App Rankings by DAU (June 2025) | Rank | App Name | | :--- | :--- | | 1 | Life360: Stay Connected & Safe | | 2 | Pinterest | | 3 | Walmart: Shopping & Savings | | 4 | Ring - Always Home | | 5 | SHEIN | US Social Networking App Rankings by DAU (June 2025) | Rank | App Name | | :--- | :--- | | 1 | Facebook | | 2 | WhatsApp Messenger | | 3 | Messenger | | 4 | Life360: Stay Connected & Safe | | 5 | Discord | - Life360's app retention consistently outperforms social media peers, with a **1.5x higher retention rate after 90 days**, driven by its strong value proposition and core feature set providing peace of mind[50](index=50&type=chunk) [Addressable Market & Monetization Opportunities](index=13&type=section&id=Addressable%20Market%20%26%20Monetization%20Opportunities) Life360 identifies substantial addressable market opportunities across various sectors, including family financial services, auto insurance, elderly monitoring, advertising, and pet/item tracking. The company plans to monetize these markets through subscription services, devices, and indirect advertising, leveraging its first-party data Addressable Market Opportunities | Market Segment | Estimated Market Size ($) | | :----------------------- | :-------------------- | | Family Financial Services | ~$83 billion | | Auto Insurance | ~$80 billion | | Elderly Monitoring | ~$75 billion | | Advertising | $75 billion | | Pet Tracking | Item Tracking Subscription Services | | Item Tracking | Item Tracking Subscription Services | - Monetization strategies include subscription services (ID theft protection, roadside assistance, crash detection, medical assistance, SOS, emergency dispatch, driver reports, disaster response, stolen phone, travel support), devices, and indirect advertising for free members based on first-party data[56](index=56&type=chunk) [Member Base Expansion & Freemium Model](index=15&type=section&id=Member%20Base%20Expansion%20%26%20Freemium%20Model) Life360 is expanding its member base beyond traditional parents with teens, targeting broader demographics. Its freemium model, featuring triple-tier membership bundles (Silver, Gold, Platinum) in key markets, provides diverse benefits focused on driving and digital safety, enabling monetization across different user needs - Life360 is expanding its member base beyond parents with teens, recognizing an opportunity to grow within its current member base[58](index=58&type=chunk)[59](index=59&type=chunk) U.S. Paying Circles by Membership Tier (as of June 30, 2025) | Membership Tier | % of US Paying Circles | | :---------------- | :--------------------- | | Silver | 4% | | Gold | 84% | | Platinum | 12% | [Market Penetration & International Opportunity](index=17&type=section&id=Market%20Penetration%20%26%20International%20Opportunity) Life360 demonstrates significant remaining growth potential in U.S. penetration, with states experiencing high growth rates. Internationally, penetration is expanding but still trails the U.S., presenting a large upside opportunity, particularly in high-income markets with driving cultures where Triple Tier offerings are being rolled out - States with over **6% penetration in 2020** experienced an average of over **163% penetration growth from June 2020 to June 2025**, indicating substantial remaining runway in the U.S. market[66](index=66&type=chunk) International Penetration by Region (2020 vs 2025) | Region | 2020 Penetration | 2025 Penetration | | :--------------- | :--------------- | :--------------- | | Canada | 1% | 4% | | United Kingdom | 11% | - | | Europe | 0.4% | 1.8% | | Australia & New Zealand | 6% | 15% | | Rest of World | 3% | - | Top 10 International MAU and Revenue Countries (Q2'25) | Rank | Top 10 International MAU Countries | Top 10 International Revenue Countries | | :--- | :--------------------------------- | :----------------------------------- | | 1 | United Kingdom | United Kingdom | | 2 | Brazil | Australia | | 3 | Mexico | Canada | | 4 | Australia | Brazil | | 5 | Italy | Mexico | | 6 | Philippines | Germany | | 7 | Malaysia | Japan | | 8 | Canada | South Africa | | 9 | Spain | Netherlands | | 10 | Thailand | Malaysia | [Advertising Opportunity](index=20&type=section&id=Advertising%20Opportunity) Life360 is leveraging its differentiated audience and first-party data to create new monetization opportunities through advertising, indicating long-term growth potential. Its dynamic suite of in-app and offsite ad products, including context-aware place ads, effectively closes the measurement gap in retail advertising and drives strong campaign performance with brand partnerships like Uber and Accuweather - Life360's differentiated audience, characterized by valuable targeting opportunities based on user insights and location, has the potential to deliver significant value to B2B data providers and advertisers while maintaining user privacy[80](index=80&type=chunk)[81](index=81&type=chunk) - Life360's ad solutions, including Place Pins, Map Banners, Place Ads, and Audiences, close the measurement gap in retail advertising by providing context-aware, footfall-driving media, leveraging self-identified demographics and continuity of location signal[88](index=88&type=chunk)[89](index=89&type=chunk) - High-impact advertising brand partnerships, such as with Uber and Accuweather, demonstrate strong performance with high click-through rates, amplified by Life360's valuable user base of highly engaged members with high-disposable incomes[93](index=93&type=chunk)[95](index=95&type=chunk) Life360 Strategy Life360's strategy focuses on audience growth, scaling paid offerings, expanding revenue streams, and increasing profitability to become the leading global family brand [Strategic Pillars](index=25&type=section&id=Strategic%20Pillars) Life360's strategy is built on four key pillars: growing its audience, scaling paid offerings, expanding revenue streams, and increasing profitability. These pillars are designed to drive long-term growth by enhancing member value, meeting diverse family needs, and balancing growth investments with financial discipline - The core strategy involves growing the audience, scaling paid offerings through increased value and retention, expanding revenue streams by meeting family needs, and creating new revenue streams by building a leading global family brand, all while expanding profitability through financial discipline[97](index=97&type=chunk)[98](index=98&type=chunk) [Freemium Flywheel & Business Model](index=26&type=section&id=Freemium%20Flywheel%20%26%20Business%20Model) Life360's freemium business model leverages network effects to drive growth, with virality and referrals fueling new member acquisition. A growing free user base creates a competitive moat, increases the premium member acquisition pool, and provides indirect monetization opportunities like advertising, supported by efficient digital economics for scaling - The freemium flywheel drives growth through virality and referrals, leading to more users, better engagement, and better features, which in turn fuels the free user base, paid user base, and indirect monetization through ad revenue[99](index=99&type=chunk)[100](index=100&type=chunk) - Strong word-of-mouth drives organic growth and efficient customer acquisition. Digital economics enable efficient scaling of the user base with low-cost, high-margin subscription services. The growing free member base creates a competitive moat, increases the premium member acquisition pool, and offers indirect monetization opportunities, including advertising[105](index=105&type=chunk) [Aspirational Goals](index=28&type=section&id=Aspirational%20Goals) Life360 has set aspirational long-term goals to become the leading brand for everyday family life, aiming for over 150 million Monthly Active Users (MAU) and achieving more than 35% Adjusted EBITDA margins - Long-term aspirational goals include becoming the brand for everyday family life, achieving **150 million+ Monthly Active Users**, and reaching **35%+ Adjusted EBITDA margins**[107](index=107&type=chunk)[109](index=109&type=chunk)[111](index=111&type=chunk) Financial Update Q2'25 Life360 delivered strong Q2'25 financial results, with significant revenue and Adjusted EBITDA growth, driven by subscription momentum and expanding operating leverage, while establishing new advertising revenue streams [Q2'25 Achievements](index=30&type=section&id=Q2%2725%20Achievements) Life360 achieved significant growth in Q2'25, cementing its market-leading position with substantial increases in global MAU, revenue, and paying circles. The company also established initial infrastructure for advertising revenue and expanded profitability with strong Adjusted EBITDA growth Q2'25 Key Achievements | Metric | Q2'25 Value | YoY Growth | | :-------------------------------- | :---------- | :--------- | | Global Monthly Active Users (MAU) | ~88.0 million | +25% | | Revenue | $115.4 million | +36% | | Global Paying Circles | ~2.5 million | +25% | | Adjusted EBITDA | $20.3 million | - | | Adjusted EBITDA Margin | 18% | - | | International MAU Growth | - | 34% | | Quarterly net adds (Paying Circles) | 136k | - | - Initial infrastructure established to build advertising revenue stream and new B2B partnerships are being formed to drive indirect monetization[115](index=115&type=chunk) [Q2'25 Results Summary](index=31&type=section&id=Q2%2725%20Results%20Summary) Life360 delivered strong Q2'25 financial results, with total revenue increasing by 36% YoY, driven by robust subscription and other revenue growth. The company achieved positive net income and significantly expanded Adjusted EBITDA, reflecting increased operating leverage and cost discipline Q2'25 Financial Results Summary | Metric | Q2'25 ($ million) | Q2'24 ($ million) | $ Change ($ million) | % ch YoY | | :-------------------------- | :---- | :---- | :------- | :------- | | Subscription Revenue | 88.6 | 65.7 | 22.9 | 35% | | Hardware Revenue | 12.3 | 11.9 | 0.4 | 3% | | Other Revenue | 14.5 | 7.3 | 7.2 | 100% | | **Total Revenue** | **115.4** | **84.9** | **30.5** | **36%** | | Annualized Monthly Revenue (AMR) | 416.1 | 304.8 | 111.3 | 36% | | Operating Expenses | 88.5 | 66.0 | 22.5 | 34% | | Net Income (Loss) | 7.0 | (11.0) | 18.0 | (164)% | | Adjusted EBITDA (Non-GAAP) | 20.3 | 11.0 | 9.3 | 85% | | Cash and cash equivalents | 434.2 | 162.0 | 272.2 | 168% | | Operating cash flow | 13.3 | 3.3 | 10.1 | 310% | - Subscription revenue momentum continued strong, up **35% including hardware subscriptions**, and **38% for Life360 subscriptions**. Other revenue increased **100%** due to data, partnership, and advertising revenue[120](index=120&type=chunk) - Adjusted EBITDA expansion was driven by strong subscription revenue growth and increased operating leverage, with operating expenses declining as a percentage of revenue[120](index=120&type=chunk) [Annualized Monthly Revenue (AMR)](index=32&type=section&id=Annualized%20Monthly%20Revenue%20(AMR)) Life360's Annualized Monthly Revenue (AMR) continued its strong upward trajectory, reaching $416.1 million in June 2025, representing a 36% year-over-year growth, demonstrating consistent revenue momentum - Quarterly Annualized Monthly Revenue (AMR) reached **$416.1 million in Q2'25**, marking a **36% YoY growth**[122](index=122&type=chunk) [Consolidated Revenue Breakdown](index=33&type=section&id=Consolidated%20Revenue%20Breakdown) In Q2'25, Life360's consolidated revenue of $115 million was primarily driven by subscription revenue (76%), with hardware and other revenue contributing 11% and 13% respectively, reflecting a diversified revenue base with a strong subscription core Q2'25 Quarterly Revenue Breakdown | Revenue Type | Q2'23 ($ million) | Q2'24 ($ million) | Q2'25 ($ million) | | :------------- | :---- | :---- | :---- | | Subscription | $53 | $66 | $89 | | Hardware | $12 | $12 | $12 | | Other | $6 | $7 | $15 | | **Total** | **$71** | **$85** | **$115** | Q2'25 Total Consolidated Revenue Breakdown by Percentage | Revenue Type | Percentage | | :------------- | :--------- | | Subscription | 76% | | Hardware | 11% | | Other | 13% | [Global MAU Growth](index=34&type=section&id=Global%20MAU%20Growth) Life360's Global Monthly Active Users (MAU) grew by 25% year-over-year in Q2'25, reaching 88.0 million, with significant contributions from organic channels and strong growth in international Triple Tier launch countries - Global MAU grew **25% YoY in Q2'25**, with International Triple Tier launch countries MAU growing **43% YoY** and US MAU growing **17% YoY**[130](index=130&type=chunk) [Subscription Revenue & ARPPC](index=35&type=section&id=Subscription%20Revenue%20%26%20ARPPC) Subscription revenue saw a 35% YoY growth in Q2'25, underpinned by a 25% YoY increase in Paying Circles and an 8% YoY increase in Average Revenue Per Paying Circle (ARPPC). This growth was further supported by price increases and a shift towards higher-priced products Consolidated Quarterly Subscription Revenue | Quarter | 2023 ($ million) | 2024 ($ million) | 2025 ($ million) | | :------ | :--- | :--- | :--- | | Q1 | $51.7 | $61.6 | $81.9 | | Q2 | $52.7 | $65.7 | $88.6 | | Q3 | $56.6 | $71.8 | - | | Q4 | $59.8 | $78.8 | - | - Core Life360 subscription revenue grew **38% YoY in Q2'25**, benefiting from strong Paying Circles growth (**25% YoY**) and price increases in the U.S. for new and existing annual subscribers in 2024, alongside a shift in product mix[134](index=134&type=chunk) - Additional uplift from international regions throughout 2024 was due to legacy subscriber price increases and the launch of higher-priced membership tiers in non-Triple Tier markets, as well as continued growth in existing Triple Tier markets[134](index=134&type=chunk) [Paying Circles Growth](index=36&type=section&id=Paying%20Circles%20Growth) Life360's Paying Circles grew by 25% year-over-year in Q2'25, reaching 2.5 million globally. This growth was observed across both U.S. and international markets, with international Triple Tier launch countries showing particularly strong growth - Global Paying Circles grew **25% YoY in Q2'25**, with US Paying Circles growing **23% YoY** and International Triple Tier launch countries Paying Circles growing **62% YoY**[136](index=136&type=chunk) [Average Revenue Per Paying Circle (ARPPC)](index=37&type=section&id=Average%20Revenue%20Per%20Paying%20Circle%20(ARPPC)) Average Revenue Per Paying Circle (ARPPC) increased by 8% YoY globally in Q2'25, driven by successful Triple Tier launches and annual subscription price increases in both the U.S. and international markets Average Revenue Per Paying Circle (ARPPC) ($) | Quarter | Q2'23 | Q2'24 | Q2'25 | | :------ | :---- | :---- | :---- | | Global ARPPC | $128 | $126 | $135 | | International Triple Tier launch countries revenue | $43 | $59 | $76 | - Global ARPPC increased **8% YoY**, while International Triple Tier launch countries revenue increased **35% YoY**, and International ARPPC increased **92% YoY**[139](index=139&type=chunk) - The uplift to global ARPPC was tempered by a **3% increase** in the weighting of international Paying Circles as a percentage of global Paying Circles, reflecting faster growth in international regions that have lower pricing relative to the U.S.[140](index=140&type=chunk) [User Engagement & Retention](index=38&type=section&id=User%20Engagement%20%26%20Retention) Life360 demonstrates strong user engagement and retention, with both Monthly Active Users (MAUs) and Paying Circles consistently increasing across member registration years. This indicates effective long-term conversion of free members to paid and a net subscription revenue retention rate of approximately 100% - MAUs and Paying Circles by member registration year have increased over time, demonstrating strong retention dynamics and the ability to convert free members to paid over the long-term[143](index=143&type=chunk) - Consistent historical net subscriber retention across member registration years drives a net subscription revenue retention rate of approximately **100%**[143](index=143&type=chunk) [Hardware Revenue](index=39&type=section&id=Hardware%20Revenue) Hardware revenue increased by 3% YoY in Q2'25, primarily driven by a 21% YoY increase in net hardware units shipped, despite a decrease in Average Sale Price (ASP). The company observed continued growth in Tile sales to Life360 users, with full integration of premium Tile features expected to further boost this trend Quarterly Hardware Revenue and Units Shipped | Quarter | Q2'24 ($ million) | Q3'24 ($ million) | Q4'24 ($ million) | Q1'25 ($ million) | Q2'25 ($ million) | | :------ | :---- | :---- | :---- | :---- | :---- | | Hardware Revenue | $11.9 | $11.7 | $13.0 | $11.6 | $12.3 | | HW Units Shipped (million) | 0.7 | 0.8 | 1.9 | 0.5 | 0.8 | | ASP ($) | $15.92 | $12.69 | $12.56 | $16.99 | $14.81 | - Q2'25 hardware revenue increased **3% YoY**, driven by a **21% YoY increase in net hardware units shipped** due to online retail channel sales, despite a **7% YoY decrease in ASP**[147](index=147&type=chunk) - Continued growth in Tiles sold into the Life360 user base is expected to continue with full integration of premium Tile features into the Life360 app[147](index=147&type=chunk) [Other Revenue](index=40&type=section&id=Other%20Revenue) Other revenue experienced a significant 100% YoY growth in Q2'25, primarily driven by the ramp-up of advertising revenue and a renegotiated data agreement. This segment continues to expand as a percentage of total revenue, positively impacting gross margin and indicating substantial long-term growth potential Quarterly Other Revenue and as % of Total Revenue | Quarter | Q1'23 ($ million) | Q2'23 ($ million) | Q3'23 ($ million) | Q4'23 ($ million) | Q1'24 ($ million) | Q2'24 ($ million) | Q3'24 ($ million) | Q4'24 ($ million) | Q1'25 ($ million) | Q2'25 ($ million) | | :------ | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | | Other Revenue | $6.1 | $6.5 | $6.5 | $6.5 | $7.3 | $7.3 | $9.3 | $13.0 | $12.8 | $14.5 | | % of Total Revenue | - | - | - | - | - | 9% | 10% | 11% | 12% | 13% | - Q2'25 Other revenue growth of **100% YoY** reflects increases in data and partnership revenue, primarily driven by advertising revenue contribution and a renegotiated data agreement with Placer.ai[152](index=152&type=chunk) - Other revenue continues to expand as a percentage of total revenue, driving positive impacts on gross margin and is expected to have significant long-term growth potential as part of the broader advertising and free user monetization strategy[152](index=152&type=chunk) [Expanding Profitability](index=41&type=section&id=Expanding%20Profitability) Life360 demonstrated expanding profitability in Q2'25, with operating expenses declining as a percentage of revenue to 77%, showcasing strong operating leverage. Adjusted EBITDA margin expanded to 18%, driven by robust subscription revenue growth and increased operational efficiency Operating Expenses as % of Revenue | Quarter | Q1 | Q2 | Q3 | Q4 | | :------ | :-- | :-- | :-- | :-- | | 2023 | 95% | 85% | 83% | 82% | | 2024 | 81% | 79% | 78% | 77% | | 2025 | 74% | 69% | - | - | Adjusted EBITDA & Margin | Quarter | Q1'23 ($ million) | Q2'23 ($ million) | Q3'23 ($ million) | Q4'23 ($ million) | Q1'24 ($ million) | Q2'24 ($ million) | Q3'24 ($ million) | Q4'24 ($ million) | Q1'25 ($ million) | Q2'25 ($ million) | | :------ | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | :---- | | Adjusted EBITDA | $0.5 | $4.3 | $5.5 | $5.7 | $8.9 | $11.0 | $15.9 | $21.2 | $20.3 | $20.3 | | Margin (%) | 1% | 7% | 8% | 10% | 13% | 15% | 18% | 18% | - | - | - Operating expenses as a percentage of revenue declined to **77% in Q2'25**, demonstrating continued strong operating leverage. Adjusted EBITDA margin expanded to **18% in Q2'25**, driven by strong subscription revenue growth and increased operating leverage[156](index=156&type=chunk) FY'25 Outlook Life360 has increased its FY'25 outlook, now expecting consolidated revenue between $462 million and $482 million, with upward revisions across subscription, hardware, and other revenue segments, and raised Adjusted EBITDA guidance [FY'25 Guidance](index=43&type=section&id=FY%2725%20Guidance) Life360 has increased its FY'25 outlook, now expecting consolidated revenue between $462 million and $482 million, with upward revisions across subscription, hardware, and other revenue segments. The company also raised its Adjusted EBITDA guidance to a range of $72 million to $82 million FY'25 Outlook (Revised Guidance) | Metric | New Guidance ($ million) | Prior Guidance ($ million) | | :-------------------- | :------------------- | :------------------- | | Consolidated Revenue | $462 to $482 | $450 to $480 | | Subscription Revenue | $363 to $367 | $355 to $365 | | Hardware Revenue | $42 to $50 | $40 to $50 | | Other Revenue | $57 to $65 | $55 to $65 | | Adjusted EBITDA | $72 to $82 | $65 to $75 | Appendix The appendix provides detailed operating metrics, unaudited consolidated financial statements, GAAP to Non-GAAP reconciliations, and a competitive landscape analysis [Operating Metrics](index=45&type=section&id=Operating%20Metrics) The operating metrics appendix provides detailed quarterly data for Life360 Core and Consolidated metrics, including Monthly Active Users (MAU), Paying Circles, Average Revenue per Paying Circle (ARPPC), Average Revenue per Paying Subscription (ARPPS), net hardware units shipped, Average Sale Price (ASP), Annualized Monthly Revenue (AMR), and various subscription revenue breakdowns Operating Metrics (Q2 2024 - Q2 2025) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :------------------------------------------ | :------ | :------ | :------ | :------ | :------ | | MAU - Global (million) | 88.0 | 83.7 | 79.6 | 76.9 | 70.6 | | MAU - U.S. (million) | 47.5 | 45.3 | 43.7 | 42.2 | 40.5 | | MAU - International (million) | 40.5 | 38.4 | 36.0 | 34.7 | 30.1 | | Paying Circles - Total (million) | 2.5 | 2.4 | 2.3 | 2.2 | 2.0 | | ARPPC ($) | 135.42 | 133.42 | 131.76 | 127.57 | 125.96 | | Subscriptions (million) | 3.1 | 3.0 | 2.9 | 2.8 | 2.7 | | ARPPS ($) | 116.06 | 112.98 | 110.43 | 106.27 | 104.00 | | Net hardware units shipped (million) | 0.8 | 0.5 | 1.9 | 0.8 | 0.7 | | ASP ($) | 14.81 | 16.99 | 12.56 | 12.69 | 15.92 | | AMR ($ million) | 416.1 | 393.0 | 367.6 | 336.2 | 304.8 | | Subscription revenue ($ million) | 88.6 | 81.9 | 78.8 | 71.8 | 65.7 | | Core subscription revenue ($ million) | 82.9 | 76.2 | 73.1 | 66.2 | 60.2 | [Financials](index=46&type=section&id=Financials) This section provides the unaudited consolidated financial statements, including the Income Statement for the three months ended June 30, 2025 and 2024, the Balance Sheet as of June 30, 2025 and December 31, 2024, and the Cash Flow Statement for the six months ended June 30, 2025 and 2024 Income Statement (Three Months Ended June 30, $M) | Metric | 2025 ($ million) | 2024 ($ million) | | :-------------------------------- | :--- | :--- | | Total Revenue | 115.4 | 84.9 | | Gross Profit | 90.5 | 63.6 | | Total Operating Expenses | 88.5 | 66.0 | | Income (loss) from operations | 2.0 | (2.4) | | Net income (loss) | 7.0 | (11.0) | | Net income (loss) per share, basic | 0.09 | (0.15) | | Net income (loss) per share, diluted | 0.08 | (0.15) | Balance Sheet (As of June 30, 2025 and December 31, 2024, $M) | Metric | June 30, 2025 ($ million) | December 31, 2024 ($ million) | | :-------------------------------- | :------------ | :---------------- | | Total Current Assets | 521.2 | 241.0 | | Total Assets | 753.6 | 441.6 | | Total Current Liabilities | 73.0 | 77.3 | | Total Liabilities | 386.9 | 83.0 | | Total Stockholders' Equity | 366.7 | 358.5 | Cash Flow (Six Months Ended June 30, $M) | Metric | 2025 ($ million) | 2024 ($ million) | | :-------------------------------- | :--- | :--- | | Net cash provided by operating activities | 25.4 | 13.9 | | Net cash used in investing activities | (32.1) | (2.3) | | Net cash provided by financing activities | 280.5 | 79.7 | | Net Increase in Cash, Cash Equivalents, and Restricted Cash | 273.8 | 91.3 | | Cash, Cash Equivalents, and Restricted Cash at the End of the Period | 434.2 | 162.0 | [GAAP to Non-GAAP Reconciliations & Non-GAAP Financial Measures](index=48&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations%20%26%20Non-GAAP%20Financial%20Measures) This section provides reconciliations of GAAP to Non-GAAP financial measures, specifically for Cost of Revenue, Operating Expenses, and Adjusted EBITDA. It defines Adjusted EBITDA and explains its use by management for evaluating financial performance and resource allocation, while noting it should not be considered a substitute for GAAP measures Adjusted EBITDA Reconciliation (Three Months Ended June 30, $M) | Metric | 2025 ($ million) | 2024 ($ million) | | :------------------------------------------ | :--- | :--- | | Net income (loss) | 7.0 | (11.0) | | Add (deduct): | | | | Loss on settlement of convertible notes | 1.1 | 0.4 | | Gain on settlement of derivative liability | - | (1.9) | | Gain on change in fair value of investment | (1.3) | - | | Provision for (benefit from) income taxes | (0.4) | 5.5 | | Depreciation and amortization | 3.1 | 2.4 | | Other income, net | (3.4) | (1.0) | | Investment related transaction costs | 0.1 | - | | Stock-based compensation | 15.2 | 10.8 | | IPO-related transaction costs | - | 5.8 | | **Adjusted EBITDA** | **20.3** | **11.0** | - Adjusted EBITDA is defined as net income (loss) excluding specific non-cash or non-core items such as loss on settlement of convertible notes, gain on settlement of derivative liability, gain on change in fair value of investments, income taxes, depreciation and amortization, other income, investment related transaction costs, stock-based compensation, and IPO-related transaction costs[173](index=173&type=chunk) - Adjusted EBITDA is used by management to evaluate financial performance, determine resource allocation, and for period-to-period comparisons, but it is a supplemental measure and not a substitute for GAAP financial information[174](index=174&type=chunk) [Competitive Landscape](index=50&type=section&id=Competitive%20Landscape) The competitive landscape appendix provides a comparative analysis of Life360's features and pricing against various competitors, highlighting its comprehensive offering across family safety, roadside assistance, SOS alerts, driver reports, and item tracking Competitive Feature Comparison | Feature | Life360 | Apple Find My | Google Maps | LifeLock | OnStar | ADT | Car Guardian | Noonlight | Family Link | Find My Kids | AAA | | :-------------------------- | :------ | :------------ | :---------- | :------- | :----- | :-- | :----------- | :-------- | :---------- | :------------ | :-- | | Monthly Price | $14.99 | Free | Free | $7.99 | $14.99 | $79.99 | $4.99 | $34.99 | Free | $10.00 | $14.99 | | Membership | Family circle | Individual | Individual | Family | Individual | Family | Individual | Family | Individual | Individual | Individual | | Available on iOS & Android | √ | √ | √ | √ | √ | √ | √ | √ | √ | √ | √ | | Roadside Assistance | √ | | | √ | | | | √ | | | √ | | SOS Alert | √ | | | | | | √ | √ | | √ | √ | | Driver Reports | √ | | | | √ | | | | | | √ | | Stolen Phone Reimbursement | √ | | | √ | | | | | | | | | Credit Monitoring | Platinum Only | √ | | | | √ | | | | | | | ID Theft Protection | √ | √ | | | | √ | | | | | | | Crash Detection | √ | | | | √ | | √ | √ | | | √ | | Disaster Assistance | Platinum Only | | | | | | | √ | | | | | Travel Assistance | Platinum Only | √ | | | | | | | | | | | Location Sharing | √ | √ | √ | √ | √ | | | √ | √ | √ | √ | | Stolen Funds Reimbursement | √ | √ | | | | √ | | | | | | | Item Tracking | √ | | √ | | | | | | | | | | In-App Messaging | √ | | | | | | | | √ | | | | Pet Tracking | √ | | | | | | | | | | |

PART I. FINANCIAL INFORMATION [FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents Catheter Precision's unaudited condensed consolidated financial statements as of June 30, 2025, detailing financial position and performance [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$25.6 million** while liabilities rose to **$19.0 million**, leading to a significant decline in **stockholders' equity** to **$6.5 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $838 | $2,873 | | Total current assets | $2,046 | $3,292 | | Intangible assets, net | $23,252 | $24,274 | | **TOTAL ASSETS** | **$25,563** | **$27,770** | | **Liabilities & Equity** | | | | Total current liabilities | $4,642 | $2,230 | | Total liabilities | $19,014 | $16,013 | | Total stockholders' equity | $6,549 | $11,757 | | **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | **$25,563** | **$27,770** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 revenues doubled to **$212 thousand**, yet increased operating expenses and **$1.8 million** acquired R&D led to a **$5.1 million** net loss Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $212 | $93 | $355 | $175 | | Gross profit | $198 | $77 | $330 | $154 | | Total operating expenses | $4,884 | $2,794 | $8,591 | $5,487 | | Operating loss | $(4,686) | $(2,717) | $(8,261) | $(5,333) | | Net loss attributable to Catheter Precision, Inc. | $(5,109) | $(4,220) | $(9,154) | $(6,895) | | Net loss per share, basic and diluted | $(0.38) | $(5.57) | $(0.74) | $(9.19) | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity declined from **$11.8 million** to **$6.5 million** due to a **$9.5 million** net loss, partially offset by capital raising efforts - Total stockholders' equity decreased by **$5.2 million** in the first six months of 2025, from **$11.8 million** to **$6.5 million**[15](index=15&type=chunk) - The decrease in equity was mainly due to a net loss of **$9.5 million**, partially offset by proceeds from stock issuances, including a PIPE financing (**$2.0M**), an ATM offering (**$1.6M**), and stock issued for asset acquisitions (**$0.4M**)[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities used **$4.6 million** cash, offset by **$2.6 million** from financing, resulting in a **$2.0 million** decrease in cash, ending at **$0.8 million** Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,601) | $(3,639) | | Net cash used in investing activities | $(23) | $(67) | | Net cash provided by financing activities | $2,589 | $157 | | **NET CHANGE IN CASH AND CASH EQUIVALENTS** | **$(2,035)** | **$(3,549)** | | Cash and cash equivalents, beginning of period | $2,873 | $3,565 | | **Cash and cash equivalents, end of period** | **$838** | **$16** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail business operations, accounting policies, asset acquisitions, equity offerings, related party transactions, and a critical going concern warning [Note 1. Organization and Nature of Operations](index=11&type=section&id=Note%201.%20Organization%20and%20Nature%20of%20Operations) Catheter Precision designs cardiac electrophysiology medical technologies, forming two new subsidiaries for heart failure and mapping advancements - The company's main products are the VIVO System (non-invasive 3D cardiac mapping) and LockeT (suture retention device)[23](index=23&type=chunk)[24](index=24&type=chunk) - In February 2025, the company formed Cardionomix, Inc. (**82%** owned) to acquire and develop the Cardiac Pulmonary Nerve Stimulation (CPNS) System for acute heart failure[26](index=26&type=chunk)[27](index=27&type=chunk) - In June 2025, the company formed KardioNav, Inc. (**57%** owned) to develop new electrophysiology mapping technologies by integrating VIVO IP with patents from a third party[28](index=28&type=chunk)[29](index=29&type=chunk) [Going Concern](index=13&type=section&id=Going%20Concern) Substantial doubt exists about the company's going concern due to recurring losses, negative cash flows, and a **$0.8 million** cash balance, requiring urgent financing - Management has concluded there is **substantial doubt** about the Company's ability to continue as a going concern within 12 months from the financial statement issuance date[36](index=36&type=chunk) Key Financial Indicators (as of June 30, 2025) | Metric | Value (in millions) | | :--- | :--- | | Net Loss (Six Months Ended) | $9.5 | | Cash Used in Operations (Six Months Ended) | $4.6 | | Accumulated Deficit | $301.5 | | Working Capital Deficit | $2.6 | | Cash and Cash Equivalents | $0.8 | - The company plans to raise additional capital through equity or debt financing but acknowledges it may not be able to secure such financing on favorable terms, if at all[37](index=37&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=14&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines key accounting policies, including consolidation of VIEs, fair value measurements for **Level 3** instruments, and revenue recognition - The company consolidates two Variable Interest Entities (VIEs), Cardionomix and KardioNav, as it is the primary beneficiary of both[77](index=77&type=chunk)[79](index=79&type=chunk)[82](index=82&type=chunk) - Royalties payable and trading debt securities are classified as **Level 3** financial instruments, valued using unobservable inputs like discounted future cash flows and probability-weighted models[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Revenue from the VIVO System and LockeT device is recognized at a point in time when control is transferred to the customer upon delivery[90](index=90&type=chunk)[92](index=92&type=chunk) [Note 7. Notes Payable](index=31&type=section&id=Note%207.%20Notes%20Payable) The company holds **$1.3 million** in subsidiary notes and **$1.5 million** in related party notes to the CEO, maturing in January 2026 at **12%** interest - In May 2025, subsidiary Cardionomix issued a **$1.5 million** promissory note (present value **$1.3 million**) in connection with the CPNS System asset acquisition, maturing in three years[116](index=116&type=chunk)[117](index=117&type=chunk) - The company has **$1.5 million** in short-term promissory notes outstanding to CEO David A. Jenkins and his affiliates. These notes were amended to extend the maturity to January 31, 2026, and increase the interest rate to **12%** per annum[120](index=120&type=chunk)[121](index=121&type=chunk)[123](index=123&type=chunk) [Note 8. Royalties Payable](index=32&type=section&id=Note%208.%20Royalties%20Payable) Significant royalty obligations for LockeT, primarily to the CEO, increased in fair value from **$9.2 million** to **$12.0 million**, resulting in a **$2.8 million** non-cash expense - The company is obligated to pay a royalty of **11.82%** of LockeT net sales to former noteholders, who are primarily CEO David A. Jenkins and his affiliates[129](index=129&type=chunk) - The fair value of the total royalty payable increased from **$9.2 million** at year-end 2024 to **$12.0 million** as of June 30, 2025[129](index=129&type=chunk) - The company recorded a non-cash expense of **$2.8 million** for the change in fair value of royalties payable for the six months ended June 30, 2025[132](index=132&type=chunk) [Note 11. Equity Offerings](index=37&type=section&id=Note%2011.%20Equity%20Offerings) In 2025, the company raised **$1.5 million** cash via PIPE financing and **$1.7 million** gross proceeds from an ATM offering of **4.2 million** shares - On May 12, 2025, the company completed a PIPE financing, selling Series B Convertible Preferred Stock and Series L Warrants. It received **$1.5 million** in cash and QHSLab Notes valued at **$864 thousand**, before **$0.4 million** in fees[164](index=164&type=chunk) - On May 19, 2025, the company entered into an At Market (ATM) Offering Agreement. As of June 30, 2025, it had sold **4,183,589 shares** for gross proceeds of **$1.7 million**, before **$0.2 million** in commissions and expenses[175](index=175&type=chunk)[177](index=177&type=chunk) [Note 14. Asset Acquisitions](index=49&type=section&id=Note%2014.%20Asset%20Acquisitions) In 2025, the company expensed **$119 thousand** for a patent and **$1.8 million** for the CPNS System acquisition as acquired in-process R&D - On January 24, 2025, the company acquired a patent for pericardial access technology, expensing **$119 thousand** as acquired IPR&D[215](index=215&type=chunk) - On May 5, 2025, the company's subsidiary acquired the CPNS System, expensing **$1.8 million** as acquired IPR&D. Consideration included **$0.3 million** in stock, a **$1.3 million** note, and **$0.3 million** in transaction costs[217](index=217&type=chunk) [Note 17. Related Parties](index=49&type=section&id=Note%2017.%20Related%20Parties) Extensive related party transactions exist with CEO David A. Jenkins and affiliates, including significant stock holdings, **12%** LockeT royalties, and **$1.5 million** in loans - CEO David A. Jenkins and his affiliates hold a majority of the Series X Convertible Preferred Stock and have royalty rights equal to approximately **12%** of LockeT net sales[224](index=224&type=chunk)[226](index=226&type=chunk) - The company owes **$1.5 million** in principal plus accrued interest to Mr. Jenkins and his affiliates under various short-term promissory notes[229](index=229&type=chunk)[230](index=230&type=chunk) - Mr. Jenkins and his affiliates also hold significant equity stakes in the company's new subsidiaries, Cardionomix (**12%**) and KardioNav (**10%**)[233](index=233&type=chunk)[234](index=234&type=chunk) [Note 18. Subsequent Events](index=51&type=section&id=Note%2018.%20Subsequent%20Events) Stockholders approved a **1-for-19 ratio** reverse stock split, effective August 15, 2025, reducing outstanding shares from **18.9 million** to **1.0 million** - On July 25, 2025, stockholders approved a reverse stock split, which the Board set at a **1-for-19 ratio**[238](index=238&type=chunk) - The reverse stock split will be effective August 15, 2025, and is expected to decrease the number of issued and outstanding shares from approximately **18.9 million** to **1.0 million**[238](index=238&type=chunk)[240](index=240&type=chunk) [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=53&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial performance, liquidity, and capital resources, highlighting revenue growth, widening losses, and **substantial doubt** about going concern due to **insufficient** cash [Results of Operations](index=60&type=section&id=Results%20of%20Operations) Q2 2025 revenues increased by **$119 thousand** from LockeT sales, but net loss widened due to **$1.8 million** acquired IPR&D and higher operating expenses - Revenue for Q2 2025 increased by **$119 thousand** YoY, driven by a **$102 thousand** increase in LockeT sales[285](index=285&type=chunk) - SG&A expenses for Q2 2025 rose by **$0.2 million** YoY, mainly due to increased salaries and benefits from a higher employee headcount (**21 vs. 15**)[287](index=287&type=chunk) - Acquired in-process R&D expense was **$1.8 million** in Q2 2025, related to the Cardionomic asset acquisition, with no comparable expense in Q2 2024[289](index=289&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20capital%20resources) With **$0.8 million** cash and a **$301.5 million** accumulated deficit, the company faces critical liquidity issues, requiring urgent financing and raising **substantial doubt** about its going concern - As of June 30, 2025, the company had cash and cash equivalents of **$0.8 million** and an accumulated deficit of **$301.5 million**[294](index=294&type=chunk) - Management has concluded there is **substantial doubt** about the Company's ability to continue as a going concern for one year[297](index=297&type=chunk) - The company expects the need for additional financing before the end of the current quarter to fund operations and pay debts, as current cash is **insufficient** to cover costs and repay notes due January 31, 2026[296](index=296&type=chunk) [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=69&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section is **not applicable** to the company for the current reporting period - The company states that this item is **not applicable**[316](index=316&type=chunk) [CONTROLS AND PROCEDURES](index=69&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Disclosure controls and procedures were **not effective** as of June 30, 2025, due to **Material weaknesses** including **lack of segregation of duties** and **inadequate review controls** - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were **not effective**[317](index=317&type=chunk) - **Material weaknesses** were identified related to: (1) **lack of segregation of duties**, (2) **lack of designed and operating review controls**, and (3) **insufficient review of work** performed by third-party service providers, particularly for valuations and tax provision calculations[317](index=317&type=chunk) - A remediation plan is being developed, which includes assessing the need for more accounting staff and establishing new policies for reviewing third-party work and internal calculations. A new CFO was hired in January 2025 to help address these issues[318](index=318&type=chunk) PART II. OTHER INFORMATION [LEGAL PROCEEDINGS](index=71&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company refers to legal proceedings information disclosed in its Annual Report on Form 10-K for fiscal year 2024 - As of June 30, 2025, the Company had **no outstanding litigation**[223](index=223&type=chunk) [RISK FACTORS](index=71&type=section&id=ITEM%201A.RISK%20FACTORS) **No material changes** occurred from risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - There have been **no material changes** from the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[324](index=324&type=chunk) [EXHIBITS](index=72&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with Form 10-Q, including agreements, governance documents, and officer certifications

Table of Contents 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 Delaware 38-3661826 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File No. 001-38677 Catheter Precision, Inc. (State or other jurisdiction of incorporation or organization) 1670 Highway 160 West, Suite 205 Fort Mill, S ...

FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 x 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 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Oklo Inc. (Exact name of registrant as specified in its charter) Delaware 86-2292473 (State or other jurisdiction of incorporation or organization) 3190 Coronado Dr. Santa Clara, CA (Address ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40583 Oklo Inc. (Exact name of registrant as specified in its charter) For the quarterly period ended June 30, 2025 Delaware 86-2292473 (State or other jurisdiction of incorp ...