Corporate Update and Recent Highlights The company advanced its Deramiocel regulatory path, initiated clinical trials for its StealthX™ platform, and achieved commercial manufacturing readiness [Deramiocel Program Update](index=1&type=section&id=Deramiocel%20Program%20Update) The company is advancing the regulatory pathway for Deramiocel with the FDA while reporting positive long-term clinical data - **A Type A meeting with the U.S. FDA is scheduled for August 2025** to discuss the Deramiocel BLA path forward after receiving a Complete Response Letter (CRL)[3](index=3&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) - The company aims to resubmit the BLA based on HOPE-2 data, with **HOPE-3 topline data expected in Q4 2025** as potential support[3](index=3&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) - **Four-year HOPE-2 extension data showed continued preservation of cardiac function** (LVEF) and slowed skeletal muscle decline in patients treated with Deramiocel[7](index=7&type=chunk) - The FDA granted **Orphan Drug Designation for Deramiocel in Becker muscular dystrophy** (BMD)[13](index=13&type=chunk) [StealthX™ Platform Update](index=1&type=section&id=StealthX%E2%84%A2%20Platform%20Update) The StealthX™ exosome platform entered the clinical stage with FDA clearance and the initiation of a Phase 1 vaccine trial - **The FDA cleared the IND for the StealthX™ exosome-based vaccine**, marking its first-in-human use[3](index=3&type=chunk)[5](index=5&type=chunk)[13](index=13&type=chunk) - A **Phase 1 clinical trial was initiated in August 2025**, conducted and funded by NIAID as part of the Project NextGen initiative[3](index=3&type=chunk)[13](index=13&type=chunk) [Manufacturing and Commercial Readiness](index=1&type=section&id=Manufacturing%20and%20Commercial%20Readiness) Capricor successfully resolved all FDA Pre-License Inspection observations, confirming its commercial manufacturing readiness - **All 483 Pre-License Inspection observations have been resolved and accepted by the FDA**, a key manufacturing milestone[3](index=3&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) Second Quarter 2025 Financial Results The company reported zero revenue and a wider net loss for Q2 2025, while maintaining a cash runway into late 2026 [Key Financial Metrics](index=3&type=section&id=Key%20Financial%20Metrics) The company reported zero revenue and a wider net loss in Q2 2025 due to increased operating expenses and prior milestone recognition Quarterly Financial Performance | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $0 | $4.0M | -100% | | Total Operating Expenses | $27.7M | $15.6M | +77.8% | | Net Loss | ($25.9M) | ($11.0M) | +135.5% | | Net Loss Per Share | ($0.57) | ($0.35) | +62.9% | Half-Year Financial Performance | Financial Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $0 | $8.9M | -100% | | Total Operating Expenses | $52.7M | $30.7M | +71.6% | | Net Loss | ($50.3M) | ($20.8M) | +141.9% | | Net Loss Per Share | ($1.10) | ($0.66) | +66.7% | [Financial Position and Outlook](index=3&type=section&id=Financial%20Position%20and%20Outlook) The company holds a strong cash position of $122.8 million, sufficient to fund operations into the fourth quarter of 2026 - **Cash and equivalents totaled $122.8 million** as of June 30, 2025, compared to $151.5 million at year-end 2024[8](index=8&type=chunk) - The current cash balance is expected to **fund operations into the fourth quarter of 2026**[5](index=5&type=chunk)[12](index=12&type=chunk) Company and Product Information This section details the company's focus on rare disease therapeutics, its lead candidate Deramiocel, and its StealthX™ platform [About Deramiocel (CAP-1002)](index=5&type=section&id=About%20Deramiocel) Deramiocel is an allogeneic cell therapy for dystrophinopathies that has received multiple special regulatory designations - Deramiocel is an allogeneic cardiosphere-derived cell (CDC) therapy with **immunomodulatory and anti-fibrotic actions**[17](index=17&type=chunk) - The therapy holds multiple key regulatory designations, including **Orphan Drug, RMAT, and Rare Pediatric Disease designations**[18](index=18&type=chunk) [About Capricor Therapeutics](index=5&type=section&id=About%20Capricor%20Therapeutics) Capricor Therapeutics is a biotechnology company developing cell and exosome-based therapies for rare diseases - Capricor is a biotechnology company focused on **cell and exosome-based therapeutics for rare diseases**[19](index=19&type=chunk) - The company's pipeline is led by **Deramiocel for DMD** and the **StealthX™ exosome platform** for vaccines and targeted delivery[19](index=19&type=chunk) Financial Statements This section presents the company's unaudited consolidated statements of operations and summary balance sheets for the period [Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) The statement of operations shows zero revenue and a higher net loss for the three and six months ended June 30, 2025 Unaudited Consolidated Statements of Operations and Comprehensive Loss | (In thousands, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Revenue** | **$0** | **$3,971** | **$0** | **$8,878** | | **Operating Expenses** | | | | | | Research and development | $22,047 | $12,505 | $40,963 | $23,606 | | General and administrative | $5,672 | $3,058 | $11,739 | $7,130 | | **Total Operating Expenses** | **$27,719** | **$15,563** | **$52,702** | **$30,735** | | **Loss from Operations** | **($27,719)** | **($11,591)** | **($52,702)** | **($21,857)** | | **Net Loss** | **($25,911)** | **($11,000)** | **($50,302)** | **($20,794)** | | **Net Loss Per Share** | **($0.57)** | **($0.35)** | **($1.10)** | **($0.66)** | [Summary Balance Sheets](index=8&type=section&id=SUMMARY%20BALANCE%20SHEETS) The balance sheet reflects a decrease in cash and total assets, resulting in lower stockholders' equity as of June 30, 2025 Unaudited Summary Balance Sheets | (In thousands) | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and marketable securities | $122,801 | $151,516 | | **Total Assets** | **$133,569** | **$170,481** | | **Total Liabilities** | **$28,592** | **$25,019** | | **Total Stockholders' Equity** | **$104,977** | **$145,462** | | **Total Liabilities and Stockholders' Equity** | **$133,569** | **$170,481** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices) | (917) 742-1904 | | --- | (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: For the tran ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ 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: 001-42607 DUNE ACQUISITION CORPORATION II (Exact Name of Registrant as Specified in Its Charter) Cayman Islands N/A (State or other jur ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company's financial position as of June 30, 2025, shows a portfolio of $1.1716 billion and net assets of $480.6 million, with a quarterly decrease in NAV per share | Metric | June 30, 2025 | | :--- | :--- | | **Assets and Liabilities:** | | | Investment Portfolio | $1.1716 billion | | Net Assets | $480.6 million | | Net Asset Value per Share | $7.36 | | Quarterly Change in NAV per Share | -1.6% | | Weighted Average Yield on Debt Investments | 11.5% | | **Operating Performance:** | | | Net Investment Income | $11.8 million | | Net Investment Income per Share | $0.18 | | Core Net Investment Income per Share | $0.18 | | Declared Dividends per Share | $0.24 | | **Portfolio Activity:** | | | Investment Purchases | $87.7 million | | Investment Sales and Repayments | $132.2 million | [Portfolio and Investment Activity](index=2&type=section&id=Portfolio%20and%20Investment%20Activity) This section details the company's investment strategy, portfolio composition, quality, and recent investment activities, including the PennantPark Senior Loan Fund [Management Commentary](index=2&type=section&id=Management%20Commentary) The company's management is encouraged by the recovery in recent transaction activity, anticipating increased new loan originations and potential equity exits, while strategically rotating equity into debt to boost core net investment income - The company's strategic focus is to rotate equity positions into debt investments to drive growth in **Core Net Investment Income (Core NII)**[6](index=6&type=chunk) - Management will continue to utilize substantial **spillover income** to cover any shortfalls between Core Net Investment Income and dividends[6](index=6&type=chunk) [Portfolio Composition and Quality](index=2&type=section&id=Portfolio%20Composition%20and%20Quality) As of June 30, 2025, the total investment portfolio decreased to $1.1716 billion, with a shift from first lien secured debt to preferred and common equity, and an increase in non-accrual companies Portfolio Composition | Portfolio Composition | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Investment Portfolio | $1.1716 billion | $1.3281 billion | | First Lien Secured Debt | 41% | 50% | | Second Lien Secured Debt | 1% | 5% | | Subordinated Debt | 16% | 14% | | Preferred and Common Equity | 31% | 23% | | U.S. Government Securities | 11% | 8% | Portfolio Quality Metrics | Portfolio Quality Metrics | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Weighted Average Yield on Debt Investments | 11.5% | 12.3% | | Number of Non-Accrual Companies | 4 | 2 | | Non-Accrual Investments (Fair Value % of Total Portfolio) | 0.7% | 2.3% | | Total Portfolio Companies | 158 | 152 | [Investment Activity](index=2&type=section&id=Investment%20Activity) Investment activity for the three and nine months ended June 30, 2025, shows a decrease in investments made and an increase in sales and repayments compared to the prior year Investment Activity (Three Months Ended June 30) | Investment Activity (Three Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | Investments Made | $87.7 million | $163.1 million | | Sales and Repayments | $132.2 million | $132.9 million | | Weighted Average Yield on New Investments | 10.0% | 12.0% | Investment Activity (Nine Months Ended June 30) | Investment Activity (Nine Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | Investments Made | $560.2 million | $752.1 million | | Sales and Repayments | $749.0 million | $380.1 million | [PennantPark Senior Loan Fund (PSLF)](index=2&type=section&id=PennantPark%20Senior%20Loan%20Fund%20(PSLF)) The PSLF's total investment portfolio increased to $1.3391 billion as of June 30, 2025, despite a decrease in investments made and an increase in sales and repayments during the quarter PSLF Portfolio Overview | PSLF Portfolio Overview | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Investment Portfolio | $1.3391 billion | $1.0312 billion | | Number of Companies | 115 | 102 | | Average Investment Size | $11.6 million | $10.1 million | | Weighted Average Yield on Debt Investments | 10.4% | 11.3% | PSLF Investment Activity (Three Months Ended June 30) | PSLF Investment Activity (Three Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | Investments Made | $22.0 million | $56.0 million | | Sales and Repayments | $71.4 million | $54.9 million | [Results of Operations](index=3&type=section&id=Results%20of%20Operations) This section analyzes the company's investment income, expenses, net investment income, and realized and unrealized gains/losses, culminating in the net change in net assets from operations [Investment Income](index=3&type=section&id=Investment%20Income) Investment income for the three and nine months ended June 30, 2025, decreased year-over-year, primarily due to a smaller investment portfolio and a lower weighted average yield on debt investments Investment Income (Millions of Dollars) | Investment Income (Millions of Dollars) | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | 2025 Fiscal Year | $29.6 | $94.4 | | 2024 Fiscal Year | $37.0 | $107.3 | - The year-over-year decrease in investment income is primarily due to a smaller total investment portfolio and a lower weighted average yield on debt investments[15](index=15&type=chunk) [Expenses](index=3&type=section&id=Expenses) Total expenses for the three and nine months ended June 30, 2025, decreased year-over-year, mainly driven by reduced debt-related interest and fees, and lower incentive fees Total Expenses (Millions of Dollars) | Total Expenses (Millions of Dollars) | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | 2025 Fiscal Year | $17.8 | $58.2 | | 2024 Fiscal Year | $21.3 | $61.7 | - The year-over-year decrease in expenses is primarily due to reduced debt-related interest and fees and lower incentive fees[16](index=16&type=chunk) [Net Investment Income](index=3&type=section&id=Net%20Investment%20Income) Net investment income for the three months ended June 30, 2025, was $11.8 million ($0.18 per share), a decrease from the prior year, mainly due to lower investment income partially offset by reduced expenses Net Investment Income | Net Investment Income | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | **2025 Fiscal Year** | | | | Total | $11.8 million | $36.2 million | | Per Share | $0.18 | $0.55 | | **2024 Fiscal Year** | | | | Total | $15.7 million | $45.7 million | | Per Share | $0.24 | $0.70 | [Realized and Unrealized Gains/Losses](index=3&type=section&id=Realized%20and%20Unrealized%20Gains%2FLosses) For the three months ended June 30, 2025, the company reported net realized losses of $0.5 million and net unrealized losses of $0.2 million, with cumulative net unrealized appreciation of $40.4 million in the portfolio Gains/Losses Summary (Millions of Dollars) | Gains/Losses Summary (Millions of Dollars) | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | **2025 Fiscal Year** | | | | Net Realized Gains (Losses) | $(0.5) million | $(30.8) million | | Net Change in Unrealized Appreciation (Depreciation) | $(0.2) million | $29.3 million | | **2024 Fiscal Year** | | | | Net Realized Gains (Losses) | $(6.9) million | $(36.1) million | | Net Change in Unrealized Appreciation (Depreciation) | $(5.1) million | $23.2 million | - As of June 30, 2025, the investment portfolio had cumulative net unrealized appreciation of **$40.4 million**, compared to **$11.2 million** as of September 30, 2024[20](index=20&type=chunk) [Net Change in Net Assets](index=4&type=section&id=Net%20Change%20in%20Net%20Assets) The net increase in net assets from operations for the three months ended June 30, 2025, was $8.2 million ($0.12 per share), an increase from the prior year, with a similar trend for the nine-month period Net Increase (Decrease) in Net Assets Resulting from Operations | Net Increase (Decrease) in Net Assets Resulting from Operations | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | **2025 Fiscal Year** | | | | Total | $8.2 million | $33.7 million | | Per Share | $0.12 | $0.52 | | **2024 Fiscal Year** | | | | Total | $3.7 million | $30.5 million | | Per Share | $0.06 | $0.47 | [Liquidity and Capital Resources](index=4&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily derived from operating cash flow, investment sales, and debt financing, with a notable shift in cash flow dynamics compared to the prior year - The company's liquidity and capital resources primarily stem from cash flow from operations, proceeds from investment sales and repayments, securities offerings, and debt financing[23](index=23&type=chunk) Key Liquidity Metrics | Key Liquidity Metrics | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Truist Credit Facility Outstanding Borrowings | $316.5 million | $461.5 million | | Truist Credit Facility Available Capacity | $183.5 million | $13.5 million | | Cash and Cash Equivalents | $70.5 million | $49.9 million | - For the nine months ended June 30, 2025, operating activities provided **$212.6 million** in cash, while financing activities used **$192.0 million**, primarily for credit repayments and dividend payments, a reversal from the prior year's cash flow dynamics[26](index=26&type=chunk)[27](index=27&type=chunk) [Distributions and Recent Developments](index=5&type=section&id=Distributions%20and%20Recent%20Developments) This section outlines the company's declared dividends for the quarter and future months, alongside a recent successful refinancing of its CLO VII subsidiary [Distributions](index=5&type=section&id=Distributions) For the three months ended June 30, 2025, the company declared dividends of $0.24 per share, an increase from the prior year, and announced future monthly dividends of $0.08 per share Declared Dividends | Declared Dividends | Three Months Ended June 30 | Nine Months Ended June 30 | | :--- | :--- | :--- | | **2025 Fiscal Year** | | | | Per Share | $0.24 | $0.72 | | Total | $15.7 million | $47.0 million | | **2024 Fiscal Year** | | | | Per Share | $0.22 | $0.64 | | Total | $14.4 million | $41.8 million | Future Dividend Declarations | Future Dividend Declarations | | | | :--- | :--- | :--- | | Record Date | Payment Date | Dividend Per Share | | August 15, 2025 | September 2, 2025 | $0.08 | | September 15, 2025 | September 30, 2025 | $0.08 | [Recent Developments](index=5&type=section&id=Recent%20Developments) In July 2025, PSLF's subsidiary, PennantPark CLO VII, LLC, successfully refinanced $300 million of its debt, reducing its weighted average cost of capital from SOFR+3.31% to SOFR+2.63% - In July 2025, PSLF's subsidiary CLO VII successfully refinanced, reducing its weighted average cost of capital from **SOFR+3.31%** to **SOFR+2.63%**[29](index=29&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the company's consolidated statements of assets and liabilities and consolidated statements of operations, highlighting key financial positions and performance metrics [Consolidated Statements of Assets and Liabilities](index=5&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total assets were $1.2529 billion, total liabilities were $772.3 million, and net assets were $480.6 million, with a decrease in NAV per share from $7.56 to $7.36 Key Balance Sheet Items (Millions of Dollars) | Key Balance Sheet Items (Millions of Dollars) | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Investments (Fair Value) | $1,171.6 | $1,328.1 | | Cash and Cash Equivalents | $70.5 | $49.9 | | **Total Assets** | **$1,252.9** | **$1,389.1** | | **Total Liabilities** | **$772.3** | **$895.2** | | **Total Net Assets** | **$480.6** | **$493.9** | | **Net Asset Value Per Share** | **$7.36** | **$7.56** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, total investment income was $29.6 million, net investment income was $11.8 million, and the net increase in net assets from operations was $8.2 million Key Operating Statement Items (Millions of Dollars) | Key Operating Statement Items (Millions of Dollars) | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | | :--- | :--- | :--- | | Total Investment Income | $29.6 | $37.0 | | Net Expenses | $17.8 | $21.3 | | **Net Investment Income** | **$11.8** | **$15.7** | | Net Realized and Unrealized Gains (Losses) on Investments and Debt | $(3.6) | $(12.0) | | **Net Increase (Decrease) in Net Assets Resulting from Operations** | **$8.2** | **$3.7** |

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) TELA Bio reported strong Q2 2025 results with 26% revenue growth, appointed a new President, expanded European presence, and reiterated full-year guidance Q2 2025 Key Metrics and FY 2025 Guidance | Metric | Q2 2025 Result ($ million) | YoY Growth (%) | FY 2025 Guidance ($ million) | | :--- | :--- | :--- | :--- | | Revenue | $20.2 | 26 | $85.0 - $88.0 | | OviTex Revenue Growth | ~12 | - | - | | OviTex PRS Revenue Growth | ~53 | - | - | - Appointed Jeffrey Blizard as President, effective June 2025, to strengthen commercial leadership and drive sales execution[6](index=6&type=chunk) - Announced the European commercial launch of OviTex Inguinal for robotic and laparoscopic inguinal hernia repair, expanding the company's European footprint[6](index=6&type=chunk) - Management expressed excitement about transformative opportunities, citing an innovative product portfolio, compelling clinical data, and a refined sales approach under new leadership[4](index=4&type=chunk) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) TELA Bio's Q2 2025 revenue grew 26% to $20.2 million, with improved gross margin and significantly reduced operating and net losses, demonstrating enhanced efficiency [Revenue Analysis](index=1&type=section&id=Revenue%20Analysis) Q2 2025 revenue increased 26% year-over-year to $20.2 million, driven by new customers, international expansion, and a new OviTex PRS configuration, partially offset by product mix shifts Q2 Revenue Performance | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $20.2 | $16.1 | 26 | - Primary growth drivers included an increase in unit sales from new customers, growing international sales, and the U.S. launch of a new OviTex PRS configuration[5](index=5&type=chunk) - Growth was partially offset by a decrease in average selling prices for hernia products due to a product mix shift towards smaller, robotically compatible units[5](index=5&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Gross profit increased to $14.1 million with a 69.8% margin, primarily due to lower inventory charges, leading to reduced operating and net losses of $9.1 million and $9.9 million respectively Q2 2025 vs Q2 2024 Profitability (in millions) | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | | :--- | :--- | :--- | | Gross Profit | $14.1 | $11.1 | | Gross Margin | 69.8% | 68.8% | | Operating Expenses | $23.2 | $22.6 | | Loss from Operations | $(9.1) | $(11.6) | | Net Loss | $(9.9) | $(12.6) | - The increase in gross margin was primarily due to a lower charge for excess and obsolete inventory as a percentage of revenue[7](index=7&type=chunk) - Operating expenses increased due to higher commission costs and professional fees, partially offset by lower compensation from a reduced headcount[8](index=8&type=chunk) [Financial Position](index=2&type=section&id=Financial%20Position) As of June 30, 2025, TELA Bio maintained a cash and cash equivalents balance of $35.0 million - Cash and cash equivalents totaled **$35.0 million** on June 30, 2025[10](index=10&type=chunk) [Full Year 2025 Financial Guidance](index=2&type=section&id=Full%20Year%202025%20Financial%20Guidance) TELA Bio reiterated its full-year 2025 revenue guidance, projecting $85.0 million to $88.0 million, representing 23% to 27% year-over-year growth Full Year 2025 Revenue Guidance | Metric | Guidance Range ($ million) | YoY Growth (%) | | :--- | :--- | :--- | | Revenue | $85.0 - $88.0 | 23 - 27 | [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents the unaudited consolidated financial statements for Q2 2025, including Balance Sheets and Statements of Operations, detailing the company's financial status and performance [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $67.5 million, liabilities $58.4 million, cash $35.0 million, and stockholders' equity $9.2 million, reflecting changes from year-end 2024 Key Balance Sheet Items (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $34,977 | $52,670 | | Total assets | $67,537 | $86,570 | | Total liabilities | $58,353 | $58,112 | | Total stockholders' equity | $9,184 | $28,458 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenue reached $20.2 million with a net loss of $9.9 million, or ($0.22) per share, an improvement from the prior year, and six-month revenue totaled $38.7 million with a $21.2 million net loss Q2 Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | Revenue | $20,197 | $16,091 | | Gross Profit | $14,105 | $11,073 | | Loss from Operations | $(9,081) | $(11,570) | | Net Loss | $(9,923) | $(12,600) | | Net Loss per Share | $(0.22) | $(0.51) | Six Months Ended June 30 Highlights (in thousands) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Revenue | $38,717 | $32,694 | | Net Loss | $(21,187) | $(18,261) | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides details on the upcoming investor conference call, a corporate overview of TELA Bio, and standard legal disclaimers regarding forward-looking statements [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) TELA Bio will host a conference call on August 11, 2025, at 4:30 p.m. Eastern Time to discuss its second quarter financial results, requiring online registration - A conference call to discuss Q2 financial results is scheduled for 4:30 p.m. Eastern Time on Monday, August 11, 2025[12](index=12&type=chunk) [About TELA Bio, Inc.](index=2&type=section&id=About%20TELA%20Bio%2C%20Inc.) TELA Bio is a commercial-stage medical technology company focused on innovative and economically effective soft-tissue reconstruction solutions - TELA Bio (NASDAQ: TELA) is a commercial-stage medical technology company specializing in innovative soft-tissue reconstruction solutions[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section cautions on forward-looking statements, including 2025 revenue guidance, highlighting risks such as macroeconomic conditions, market acceptance, and competition that could affect actual results - The press release contains forward-looking statements, including revenue guidance for 2025, which are subject to risks and uncertainties[14](index=14&type=chunk) - Key risks include macroeconomic conditions, demand for products, ability to achieve profitability, market acceptance, competition, and product development challenges[14](index=14&type=chunk)

Washington, D.C. 20549 FORM 10-Q Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number: 001-38890 Quince Therapeutics, Inc. (Exact name of registrant as specified in its ...

Biohaven Second Quarter 2025 Business and Financial Update [Q2 2025 Key Highlights](index=1&type=section&id=Q2%202025%20Key%20Highlights) Biohaven ended Q2 2025 with **$408.2 million** cash, awaiting FDA decision for VYGLXIA, and reported significant clinical progress Financial Position as of June 30, 2025 | Metric | Value (USD) | | :--- | :--- | | Cash, cash equivalents, marketable securities and restricted cash | ~$408.2 million | - The New Drug Application (NDA) for VYGLXIA in spinocerebellar ataxia (SCA) is under review, with a PDUFA date set for **Q4 2025**[4](index=4&type=chunk) - MoDE degrader BHV-1300 demonstrated IgG reductions up to **87%** in Phase 1, while TRAP degrader BHV-1400 showed sustained Gd-IgA1 reductions over **80%**, highlighting potential in immune-mediated diseases[4](index=4&type=chunk) - The next-generation Trop2 ADC, BHV-1510, showed early clinical activity, with tumor reduction observed in the first **6 patients** treated in combination with cemiplimab[4](index=4&type=chunk) - A pivotal Phase 2/3 study was initiated for BHV-8000, a brain-penetrant TYK2/JAK1 inhibitor, in patients with Parkinson's disease[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO expressed optimism for VYGLXIA's decision and highlighted progress across I&I, Ion Channel, and Oncology platforms - The company is preparing for a potential commercial launch of VYGLXIA for spinocerebellar ataxia (SCA), pending FDA approval, to address a high unmet need[3](index=3&type=chunk)[5](index=5&type=chunk) - Progress in the Inflammation and Immunology (I&I) platform is highlighted by compelling data from MoDE/TRAP degraders (BHV-1300, BHV-1400) and the initiation of a pivotal study for the brain-penetrant TYK2/JAK1 inhibitor (BHV-8000) in Parkinson's disease[3](index=3&type=chunk) - The Ion Channel platform (Kv7) continues to advance, with promising early observations from the compassionate use of opakalim in a pediatric epilepsy patient[3](index=3&type=chunk) - The Oncology platform is generating promising early clinical data, with BHV-1510 showing tumor reduction in the first **six patients** treated with cemiplimab, and BHV-1530 (FGFR3-directed ADC) advancing into clinical testing[3](index=3&type=chunk) [Recent Business Highlights](index=2&type=section&id=Recent%20Business%20Highlights) Biohaven reported positive degrader data, advanced oncology, initiated Parkinson's study, and discontinued troriluzole for OCD - The MoDE program's BHV-1300 achieved IgG reductions up to **87%** in a Phase 1 multiple-dose study, suggesting potential for treating diseases like Graves' and rheumatoid arthritis[6](index=6&type=chunk) - The TRAP degrader BHV-1400 achieved rapid, deep, and sustained reductions in Gd-IgA1 of up to **81%** after a single dose in a Phase 1 study, targeting IgA Nephropathy[6](index=6&type=chunk) - The Trop2-directed ADC, BHV-1510, demonstrated early clinical activity, with tumor reduction in all **six** of the first patients treated in combination with cemiplimab[6](index=6&type=chunk) - A pivotal Phase 2/3 study of the brain-penetrant TYK2/JAK1 inhibitor, BHV-8000, was initiated for the treatment of early Parkinson's disease[6](index=6&type=chunk) - The Phase 3 trial of troriluzole in Obsessive-Compulsive Disorder (OCD) was completed with no efficacy signal detected, leading to the termination of the OCD development program[7](index=7&type=chunk) [Expected Upcoming Milestones](index=3&type=section&id=Expected%20Upcoming%20Milestones) Biohaven anticipates key milestones through 2026, including VYGLXIA PDUFA, registrational degrader studies, and BHV-7000 results - **VYGLXIA (Glutamate Modulator):** A PDUFA date for the SCA NDA is expected in **Q4 2025**, with the company preparing for a potential commercial launch[8](index=8&type=chunk) - **MoDE/TRAP Platforms:** A Phase 1b study for BHV-1300 in Graves' disease is set to begin in **2H 2025**, with a potentially registrational study also expected in **2H 2025**. A potentially registrational study for BHV-1400 (IgA nephropathy) is expected to start in **2026**[11](index=11&type=chunk) - **BHV-7000 (Kv7 Activator):** Pivotal topline results are anticipated in **2H 2025** for major depressive disorder and in **1H 2026** for focal epilepsy[11](index=11&type=chunk) - **Taldefgrobep alfa (Myostatin):** A Phase 2 study in obesity is expected to be initiated in **2H 2025**[11](index=11&type=chunk) - **ADC Platform:** Phase 1/2 studies with BHV-1510 and a Phase 1 study with BHV-1530 will continue to advance through **2025**[11](index=11&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) This section details Biohaven's Q2 2025 financial position, operating expenses, net loss, and balance sheet [Capital Position](index=3&type=section&id=Capital%20Position) Biohaven maintained a strong capital position with approximately **$408.2 million** in cash and marketable securities as of June 30, 2025 Cash Position | Date | Metric | Value (USD) | | :--- | :--- | :--- | | June 30, 2025 | Cash, cash equivalents, marketable securities and restricted cash | ~$408.2 million | [Second Quarter 2025 Financial Highlights](index=3&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Biohaven's Q2 2025 net loss narrowed to **$198.1 million** due to decreased R&D expenses, despite increased G&A Q2 Financial Performance (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | R&D Expenses | $184.4 | $314.8 | ($130.5) | | G&A Expenses | $27.3 | $19.0 | $8.4 | | Net Loss | ($198.1) | ($319.8) | $121.7 | | Net Loss Per Share | ($1.94) | ($3.64) | $1.70 | | Non-GAAP Adj. Net Loss | ($166.4) | ($308.6) | $142.2 | - The **$130.5 million** decrease in R&D expenses was primarily due to a one-time non-cash expense in Q2 2024 for a milestone and royalty buyback related to the BHV-7000 platform, partially offset by increased direct program costs in 2025[10](index=10&type=chunk)[12](index=12&type=chunk) - The **$8.4 million** increase in G&A expenses was mainly driven by higher non-cash share-based compensation and fees related to a Note Purchase Agreement entered into during Q2 2025[13](index=13&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Biohaven reported Q2 2025 total operating expenses of **$211.7 million** and a net loss of **$198.1 million**, a significant improvement Consolidated Statements of Operations Highlights (Unaudited, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Research and development | $184,367 | $314,819 | | General and administrative | $27,334 | $18,953 | | **Total operating expenses** | **$211,701** | **$333,772** | | **Loss from operations** | **($211,701)** | **($333,772)** | | **Net loss** | **($198,147)** | **($319,771)** | | **Net loss per share** | **($1.94)** | **($3.64)** | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Biohaven's total assets decreased to **$550.4 million** as of June 30, 2025, with liabilities increasing to **$415.8 million**, reducing equity Consolidated Balance Sheet Highlights (Unaudited, in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $165,797 | $99,134 | | Marketable securities | $239,183 | $386,857 | | **Total current assets** | **$474,827** | **$538,472** | | **Total assets** | **$550,415** | **$615,107** | | Total current liabilities | $124,324 | $154,226 | | Notes payable | $257,070 | $— | | **Total liabilities** | **$415,828** | **$191,671** | | **Total shareholders' equity** | **$134,587** | **$423,436** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) Biohaven reconciled Q2 2025 GAAP net loss of **$198.1 million** to a non-GAAP adjusted net loss of **$166.4 million** GAAP to Non-GAAP Net Loss Reconciliation (Unaudited, in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **GAAP net loss** | **($198,147)** | **($319,771)** | | Add: non-cash share-based compensation | $20,812 | $12,232 | | Add: loss from change in fair value of derivatives | $10,970 | ($1,040) | | **Non-GAAP adjusted net loss** | **($166,365)** | **($308,579)** | GAAP to Non-GAAP Net Loss Per Share Reconciliation (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **GAAP net loss per share** | **($1.94)** | **($3.64)** | | Non-cash share-based compensation per share | $0.20 | $0.14 | | Loss from change in fair value of derivatives per share | $0.11 | ($0.01) | | **Non-GAAP adjusted net loss per share** | **($1.63)** | **($3.52)** |

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Fluence reported Q3 2025 revenue of **$602.5 million** (+24.7% YoY) and **$6.9 million** net income, reaffirming FY2025 guidance, with strong **$508.8 million** order intake Financial Performance Overview | Financial Metric | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $602.5M | $483.3M | +24.7% | | **GAAP Gross Profit Margin** | 14.8% | 17.2% | -2.4 p.p. | | **Adjusted Gross Profit Margin** | 15.4% | 17.5% | -2.1 p.p. | | **Net Income** | $6.9M | $1.1M | +527% | | **Adjusted EBITDA** | $27.4M | $15.6M | +75.6% | - Order intake for Q3 was approximately **$508.8 million**, increasing the total backlog to **$4.9 billion** as of June 30, 2025. An additional **$1.1 billion** in contracts were signed in July and August[6](index=6&type=chunk) - Total liquidity was approximately **$903 million** as of June 30, 2025. The company also secured a new **$150.0 million** supply chain financing facility in August to provide incremental liquidity[6](index=6&type=chunk) Fiscal Year 2025 Guidance | Fiscal Year 2025 Guidance | Value | Note | | :--- | :--- | :--- | | **Revenue** | $2.6B - $2.8B | Expected to be at the lower end of the range | | **Adjusted EBITDA** | $0 - $20M | Reaffirmed | | **Annual Recurring Revenue (ARR)** | $145M | Reaffirmed | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted strong margins and execution, with U.S. manufacturing delays shifting Q3 revenue to FY2026, while reaffirming 2025 gross margin and Adjusted EBITDA targets - The CEO stated that while strong margins underscore the strength of the operating model, delays in scaling new U.S. manufacturing facilities caused a revenue shortfall for the quarter[5](index=5&type=chunk)[7](index=7&type=chunk) - Revenue impacted by production delays is expected to be recovered in fiscal 2026 as the new facilities reach targeted capacity. The company projects approximately **$2.5 billion** of its current backlog will convert to revenue in fiscal 2026[7](index=7&type=chunk) - The CFO emphasized that the company is on track to meet its fiscal 2025 gross margin and Adjusted EBITDA targets despite the revenue shift. A new **$150 million** unsecured supply chain financing facility was secured, enhancing financial flexibility[7](index=7&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) Financial statements show total assets at **$2.08 billion** due to inventory, with a nine-month net loss of **$92.1 million** and **$411.3 million** net cash outflow from operations [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.08 billion** as of June 30, 2025, driven by a **$654.3 million** rise in inventory, with liabilities growing to **$1.55 billion** and equity decreasing Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $436,322 | $448,685 | | **Inventory, net** | $654,301 | $182,601 | | **Total current assets** | $1,849,696 | $1,680,443 | | **Total assets** | $2,075,150 | $1,902,188 | | **Total current liabilities** | $1,124,834 | $1,258,835 | | **Total liabilities** | $1,554,306 | $1,295,049 | | **Total stockholders' equity** | $520,844 | $607,139 | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2025 total revenue grew 24.7% YoY to **$602.5 million**, yielding **$6.9 million** net income, while the nine-month period recorded a **$92.1 million** net loss Condensed Consolidated Statements of Operations (in thousands) | Statement of Operations | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total revenue** | $602,533 | $483,317 | | **Gross profit** | $89,099 | $83,045 | | **Income (loss) before income taxes** | $11,471 | $5,304 | | **Net income (loss)** | $6,894 | $1,075 | | **Basic EPS (Class A)** | $0.05 | $0.01 | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Nine-month net cash used in operating activities was **$411.3 million**, primarily due to inventory, offset by **$358.6 million** from financing activities Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(411,281) | $69,156 | | **Net cash used in investing activities** | $(20,047) | $(13,444) | | **Net cash provided by (used in) financing activities** | $358,645 | $(5,767) | | **Net (decrease) increase in cash** | $(58,818) | $50,577 | [Key Operating Metrics](index=15&type=section&id=Key%20Operating%20Metrics) As of June 30, 2025, deployed energy storage grew 26% to **6.3 GW**, contracted backlog increased 9% to **8.2 GW**, and the pipeline expanded 38% to **35.7 GW** Energy Storage Products Metrics (GW) | Metric (Energy Storage Products) | June 30, 2025 | Sept 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | **Deployed** | 6.3 | 5.0 | +26% | | **Contracted Backlog** | 8.2 | 7.5 | +9% | | **Pipeline** | 35.7 | 25.8 | +38% | Services Metrics (GW) | Metric (Services) | June 30, 2025 | Sept 30, 2024 | Change % | | :--- | :--- | :--- | :--- | | **Assets under Management** | 5.5 | 4.3 | +28% | | **Contracted Backlog** | 4.9 | 4.1 | +20% | Q3 2025 Order Intake (Contracted GW) | Q3 2025 Order Intake | Q3 2025 | Q3 2024 | Change % | | :--- | :--- | :--- | :--- | | **Energy Storage Products** | 0.7 | 1.6 | (56)% | | **Services** | 1.4 | 0.4 | +250% | | **Digital** | 0.9 | 0.6 | +50% | [Reconciliation of GAAP to Non-GAAP Measures](index=17&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Q3 2025 Adjusted EBITDA significantly increased to **$27.4 million** from **$15.6 million** YoY, with Adjusted Gross Profit at **$92.8 million** and a 15.4% margin Reconciliation to Adjusted EBITDA (in thousands) | Reconciliation to Adjusted EBITDA | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net income (loss)** | $6,894 | $1,075 | | Interest expense (income), net | $1,083 | $(1,300) | | Income tax expense | $4,577 | $4,229 | | Depreciation and amortization | $8,255 | $4,423 | | Stock-based compensation | $6,400 | $6,140 | | Other non-recurring expenses | $146 | $1,033 | | **Adjusted EBITDA** | **$27,355** | **$15,600** | Reconciliation to Adjusted Gross Profit (in thousands) | Reconciliation to Adjusted Gross Profit | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Gross profit** | $89,099 | $83,045 | | Stock-based compensation | $636 | $824 | | Depreciation and amortization | $2,734 | $770 | | Other non-recurring expenses | $307 | — | | **Adjusted Gross Profit** | **$92,776** | **$84,639** | | **Adjusted Gross Profit Margin %** | **15.4%** | **17.5%** | [Share Information and Corporate Details](index=3&type=section&id=Share%20Information%20and%20Corporate%20Details) As of June 30, 2025, Fluence had **182,359,413** total Class A and B-1 common shares outstanding, with a Q3 earnings call scheduled for August 12, 2025 Common Stock Outstanding (as of June 30, 2025) | Common Stock Class | Shares Outstanding | | :--- | :--- | | Class B-1 (AES Grid Stability, LLC) | 51,499,195 | | Class A (Siemens AG) | 39,738,064 | | Class A (SPT Invest Management, Sarl) | 11,761,131 | | Class A (Qatar Holding LLC) | 14,668,275 | | Class A (Public) | 64,692,748 | | **Total Class A and B-1 Outstanding** | **182,359,413** | - The company will hold a conference call on Tuesday, August 12, 2025, at 8:30 a.m. EDT to discuss the Q3 fiscal results[9](index=9&type=chunk)

FORM 10-Q (Mark one) ☒ Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2025 Or ☐ Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 001-40536 Acurx Pharmaceuticals, Inc. (Exact name of registrant as specified in its charter) | Delaware | 82-3733567 | | --- | --- | | State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization | Identification No.) | | 259 Li ...

[PART I. Financial Information](index=2&type=section&id=PART%20I.%20Financial%20Information) [Financial Statements and Supplementary Data](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20and%20Supplementary%20Data) Presents unaudited consolidated financial statements, including balance sheet, income, cash flows, and detailed notes on key policies [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets grew to **$12.24 billion** by June 30, 2025, driven by net loans, with liabilities and equity also increasing Consolidated Balance Sheet Highlights (Unaudited) | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **12,237,147** | **11,584,936** | **+5.6%** | | Net Loans and Leases | 9,437,849 | 8,864,848 | +6.5% | | Goodwill | 378,654 | 363,715 | +4.1% | | **Total Liabilities** | **10,719,380** | **10,179,771** | **+5.3%** | | Total Deposits | 10,104,582 | 9,678,019 | +4.4% | | **Total Shareholders' Equity** | **1,517,767** | **1,405,165** | **+8.0%** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income for H1 2025 decreased to **$66.1 million** due to higher noninterest expenses and increased credit loss provisions Income Statement Summary (Unaudited, Six Months Ended June 30) | Metric | 2025 ($ thousands) | 2024 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 201,763 | 187,296 | +7.7% | | Provision for credit losses | 18,393 | 12,065 | +52.5% | | Total noninterest income | 47,251 | 49,198 | -3.9% | | Total noninterest expense | 147,518 | 131,371 | +12.3% | | **Net Income** | **66,098** | **74,637** | **-11.4%** | Per Share Data (Unaudited, Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Diluted Earnings per Share | $0.64 | $0.73 | | Cash Dividends Declared per Common Share | $0.265 | $0.255 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities provided **$86.3 million** cash, investing used **$300.9 million**, and financing provided **$241.4 million**, resulting in a **$26.8 million** cash increase Cash Flow Summary (Unaudited, Six Months Ended June 30) | Activity | 2025 ($ thousands) | 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | 86,291 | 62,338 | | Net cash used in investing activities | (300,934) | (98,860) | | Net cash provided by financing activities | 241,400 | 77,822 | | **Net increase in cash and cash equivalents** | **26,757** | **41,300** | [Notes to the Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) Detailed notes explain financial statements, highlighting the **$46.2 million** CenterGroup acquisition, **$14.9 million** goodwill, and loan portfolio growth - On April 30, 2025, the Company completed its acquisition of CenterGroup Financial, Inc. for total consideration of **$46.2 million**, paid via 3,016,009 shares of common stock. The acquisition added three full-service banking offices in the Cincinnati, Ohio market[17](index=17&type=chunk)[18](index=18&type=chunk) - The CenterGroup acquisition resulted in the recording of **$14.9 million** in goodwill, which is not amortizable or tax-deductible. Acquisition-related costs of **$4.1 million** were expensed as incurred[18](index=18&type=chunk)[33](index=33&type=chunk) - A day 1 allowance for credit losses of **$3.4 million** for non-PCD loans and **$0.4 million** for off-balance sheet commitments was recorded through the provision for credit losses related to the Center acquisition[25](index=25&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=61&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, noting decreased net income from merger costs and credit loss provisions, offset by net interest income growth - For the six months ended June 30, 2025, net income was **$66.1 million** (**$0.64/share**), down from **$74.6 million** (**$0.73/share**) in the prior year, primarily due to a **$16.1 million** increase in noninterest expense, including **$4.0 million** in merger costs[216](index=216&type=chunk) - Net interest margin on a fully taxable equivalent basis improved to **3.73%** for H1 2025, up from **3.55%** in H1 2024, due to lower cost of interest-bearing liabilities and higher yield on interest-earning assets[220](index=220&type=chunk) - Card-related interchange income for H1 2025 decreased by **$6.2 million** (**45%**) compared to the prior year, a direct result of the company becoming subject to the Durbin Amendment on July 1, 2024[238](index=238&type=chunk) - Nonperforming loans increased to **$99.5 million** (**1.04%** of total loans) at June 30, 2025, up from **$61.5 million** (**0.68%** of total loans) at year-end 2024, primarily due to a single **$31.9 million** dealer floor plan relationship[302](index=302&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=89&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates market risk disclosures by reference from the 'Market Risk' caption in Item 2 (MD&A) - The report refers to the 'Market Risk' section within Item 2 (MD&A) for quantitative and qualitative disclosures about market risk[332](index=332&type=chunk) [Controls and Procedures](index=89&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025 - The **CEO and CFO** concluded that the company's disclosure controls and procedures were **effective** as of the end of the reporting period[334](index=334&type=chunk) [PART II. Other Information](index=90&type=section&id=PART%20II.%20Other%20Information) [Legal Proceedings](index=90&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is subject to various legal proceedings, with estimated possible losses between **$0** and **$1 million** beyond recorded liabilities - Information regarding legal proceedings is incorporated by reference from Note 6 of the financial statements[336](index=336&type=chunk) - Management estimates the range of reasonably possible aggregate losses beyond any recorded liability for pending litigation is between **$0** and **$1 million**[45](index=45&type=chunk) [Risk Factors](index=90&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors were reported since the Annual Report on Form 10-K for the year ended December 31, 2024 - **No material changes** to risk factors were reported since the last Annual Report on Form 10-K[337](index=337&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **32,844** common shares at an average price of **$15.47** under its share repurchase program Share Repurchases in Q2 2025 | Month Ending | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 30, 2025 | — | — | | May 31, 2025 | — | — | | June 30, 2025 | 32,844 | $15.47 | [Other Information](index=90&type=section&id=ITEM%205.%20Other%20Information) The company entered a Rule 10b5-1 Issuer Repurchase Plan on June 18, 2025, to facilitate stock buybacks - On June 18, 2025, the Corporation entered into a **Rule 10b5-1 Issuer Repurchase Plan** to repurchase its common stock[339](index=339&type=chunk) [Exhibits](index=91&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and XBRL-formatted financial statements - Exhibits filed include **CEO/CFO certifications** (31.1, 31.2, 32.1, 32.2) and **XBRL data files** (101)[340](index=340&type=chunk)