Exhibit 99.1 ZTO Reports Third Quarter 2025 Unaudited Financial Results Parcel Volume Increased 9.8% to 9.6 Billion Adjusted Net Income Grew 5.0% to RMB2.5 Billion SHANGHAI, Nov 20, 2025 /PRNewswire/ - ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fast- growing express delivery company in China ("ZTO" or the "Company"), today announced its unaudited financial results for the third quarter ended September 30, 2025. The Company grew parcel volume by 9.8% year over year while maintaining ...

Financial Performance - For the three months ended September 30, 2025, net sales were $1,812,461, compared to $3,450,056 for the nine months ended September 30, 2025, indicating a significant increase from $1,623,260 in the same period last year[19] - Gross profit for the three months ended September 30, 2025, was $80,794, while the gross profit for the nine months ended September 30, 2025, was a loss of $1,257,532, compared to a profit of $378,111 in the same period last year[19] - The net loss for the three months ended September 30, 2025, was $6,357,557, compared to a net loss of $1,234,986 for the same period in 2024, indicating a worsening financial position[19] - For the nine months ended September 30, 2025, the company reported a net loss of $25,540,675 compared to a net loss of $6,522,441 for the same period in 2024[24] - The total operating loss for the three months ended September 30, 2025, was $6,063,194, with the electric vehicle segment contributing a loss of $3,057,470[123] - The total operating loss for the nine months ended September 30, 2025, was $24,594,494, with the electric vehicle segment reporting a loss of $19,581,724[125] Assets and Liabilities - The company reported a total of $15,477,584 in current assets as of September 30, 2025, down from $17,636,154 as of December 31, 2024[17] - Current liabilities increased to $15,977,016 as of September 30, 2025, compared to $11,744,671 as of December 31, 2024, indicating a rise in short-term financial obligations[17] - The accumulated deficit as of September 30, 2025, was $99,002,149, compared to $73,461,474 as of December 31, 2024, reflecting ongoing financial challenges[17] - The company had trade accounts receivable of $838,651 as of September 30, 2025, with an allowance for doubtful accounts of $413,169, resulting in a net trade accounts receivable balance of $425,482[41] - The company had finished goods inventory on hand of $6,040,410 as of September 30, 2025, with a recorded inventory valuation allowance of $1,184,731[43] - The company had inventory deposits of $7,465,129 as of September 30, 2025, an increase from $6,036,809 as of December 31, 2024[44] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $6,143,988, up from $1,471,391 in the same period last year, reflecting increased operational costs[19] - Research and development expenses for the nine months ended September 30, 2025, were $731,808, significantly higher than $152,351 in the same period last year, indicating a focus on innovation[19] - Non-cash stock-based compensation expense for the nine months ended September 30, 2025, was $614,307, a decrease from $1,871,386 for the same period in 2024, representing a reduction of about 67%[55] - Depreciation expense for the three months ended September 30, 2025, was $105,150, compared to $36,303 for the same period in 2024, reflecting an increase of approximately 189%[64] - Operating lease expenses for the three months ended September 30, 2025, were $99,863, compared to $89,240 for the same period in 2024, reflecting an increase of 18.3%[120] Stock and Equity - The company issued 1,003,045 shares from convertible notes conversion, increasing the total common stock to 4,223,165 shares as of September 30, 2025[22] - As of September 30, 2025, the Company had 4,223,165 shares of common stock outstanding, an increase from 1,987,262 shares on December 31, 2024[89] - The Company has outstanding warrants for 147,039 shares, with exercise prices ranging from $16.60 to $200.00[92] - The Company raised $850,000 from a private placement of 51,205 shares at $16.60 per share, with warrants exercisable at the same price[94] - The Company recorded a full impairment on its ROU asset for a warehouse lease in December 2024, as it decided not to use the facility for its intended purpose[116] Debt and Financing - The future annual minimum payments of the Company's outstanding debt total $2,875,363, with $1,366,040 due in the remainder of 2025 and $1,509,323 in 2026[88] - The balance of the equipment financing agreement with Wells Fargo Bank was $5,731 as of September 30, 2025, with monthly payments of $521[69] - The Company entered into a premium financing agreement with AFCO Insurance Premium Finance for $140,400, with a remaining balance of $99,284 as of September 30, 2025[70] - The Company entered into a premium financing agreement for a loan of $114,140, payable over eleven months at an interest rate of 8.24%[71] Business Operations - The company added two new business operations in the first quarter of 2025: medical supplies and drones[26] - The company is currently engaged in research and development activities for its drone operations, which are in the startup phase[122] - The electric vehicle segment reported no sales for the three months ended September 30, 2025, while the medical supplies segment generated $1,812,461 in sales[123] - The company recognized revenue from the delivery of medical supplies to a related party, accounting for 100% of the net revenue for the medical supplies segment for the three months ended September 30, 2025[33] Impairments and Charges - The company has faced significant goodwill impairment charges totaling $10,103,048 for the nine months ended September 30, 2025, impacting overall financial health[19] - The Company recorded a non-cash impairment of goodwill amounting to $10,103,048 during the first quarter of 2025, resulting in a goodwill balance of $0 as of September 30, 2025[53][66] - The Company recorded a non-cash impairment charge of $3,300,801 related to other intangible assets for the three and nine months ended September 30, 2025[57][66] Lease Agreements - The Company has a lease agreement with Maddox Defense for a facility in Houston, Texas, with a total monthly payment obligation of $7,771[107] - The Company entered into a two-year sublease for a warehouse in the Philippines with a monthly rent starting at $15,000, escalating to $16,530[116] - Future minimum payments under operating leases total $893,073, with $311,210 due in the remainder of 2025[120] - The weighted-average remaining lease term for operating leases is 2.5 years, with a weighted-average discount rate of 14%[120] Other Financial Information - The company recorded net cash used in operating activities of $6,295,792 for the nine months ended September 30, 2025, compared to $2,848,876 for the same period in 2024[24] - The company had cash and cash equivalents of $77,595 at the end of the period, down from $682,654 at the end of the previous period[24] - The Company has a concentration in accounts payable, with two vendors making up over 10% individually and 52% in total of the outstanding accounts payable balance as of September 30, 2025[50] - The company is negotiating a payment plan with Priority Workforce for outstanding unpaid invoices related to employee leasing services, expected to be settled in Q4 2025[127]

Financial Performance - Service revenue for the three months ended September 30, 2025, was $234,000, a 118.7% increase from $107,000 in the same period of 2024[15]. - Gross profit for the nine months ended September 30, 2025, was $745,000, compared to $1,763,000 for the same period in 2024, indicating a decline of 57.8%[15]. - Net loss for the three months ended September 30, 2025, was $11,074,000, compared to a net loss of $7,758,000 for the same period in 2024, reflecting a 42.5% increase in losses[15]. - Momentus reported a net loss of $23.7 million for the nine months ended September 30, 2025, with an accumulated deficit of $431.7 million as of the same date[27]. - The company incurred a net loss of $23.1 million for the nine months ended September 30, 2024, indicating ongoing financial challenges[21]. Assets and Liabilities - Total assets increased to $19,601,000 as of September 30, 2025, compared to $9,952,000 as of December 31, 2024, representing a 96.5% growth[13]. - Cash and cash equivalents decreased to $670,000 as of September 30, 2025, from $1,572,000 as of December 31, 2024, a decline of 57.6%[13]. - Total current liabilities increased to $17,324,000 as of September 30, 2025, compared to $15,010,000 as of December 31, 2024, an increase of 15.4%[13]. - The accumulated deficit as of September 30, 2025, was $(431,689,000), up from $(407,993,000) as of December 31, 2024, indicating a worsening of the deficit by 5.8%[13]. - The total stockholders' deficit improved to $(694,000) as of September 30, 2025, from $(7,810,000) as of December 31, 2024, showing a reduction of 91.1%[13]. Cash Flow and Financing - The company used net cash of $12.7 million to fund its operating activities during the nine months ended September 30, 2025, and had cash and cash equivalents of $0.7 million at the end of the period[28]. - The company expects to finance its operations through equity or debt financings, which may not be available on favorable terms[30]. - If the company cannot raise additional capital, its operations may need to be scaled back or halted altogether[31]. - The company continues to seek opportunities to access additional capital through various means to alleviate its financial conditions[30]. Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $6,436,000, a decrease of 16.8% from $7,731,000 in the same period of 2024[15]. - Research and development costs are expensed as incurred, focusing on developing existing and future technologies for the Company's vehicles[83]. Debt and Loans - The Company entered into a loan agreement with J.J. Astor & Co. for up to $1.5 million, structured in two tranches of $0.75 million each, with a maturity date of March 6, 2026[110]. - The May 2025 Loan requires repayment in 40 weekly installments of $25,000, with at least 10% in cash and the remainder in shares at a conversion price of $1.70 per share[110]. - The Company prepaid $1.0 million to extinguish the May 2025 Loan, which included a $0.1 million termination fee, and recognized a $0.5 million loss on extinguishment[116]. - The Company recognized a $0.8 million loss on extinguishment related to the December 2024 Loan, which was prepaid for $2.4 million[124]. - The total loan payable as of September 30, 2025, consisted of convertible promissory note principal of $3.0 million and accrued interest of $0.4 million[152]. Stock and Equity - The Company issued warrants to purchase up to 952,940 shares of Class A common stock at an exercise price of $1.70 per share in connection with the May 2025 Loan[112]. - The Company issued new warrants to purchase up to 4,862,058 shares of Class A common stock at an exercise price of $1.11 in connection with the warrant inducement agreement[195]. - The Company has the right to direct an investor to purchase up to $50.0 million in shares of Class A common stock at a price of $1.24 per share under the September 2025 Equity Line of Credit (ELOC)[186]. Operational Highlights - Momentus has launched four missions to date, deploying 17 customer satellites and providing hosted payload services, demonstrating significant flight heritage with its Vigoride Orbital Service Vehicle[23]. - The company is advancing its M-1000 satellite bus, which integrates innovations for improved sensor capability, maneuverability, and lower costs, positioning it to meet growing demand in the satellite bus market[24]. - The company has produced its next OSV, Vigoride 7, intended for a mission in 2026, reflecting its commitment to future growth[23]. Fair Value Measurements - As of September 30, 2025, the Company has no assets measured at fair value on a recurring basis, but has liabilities including warrants and convertible notes classified within Level 3 of the fair value hierarchy[56]. - The Company uses the Black-Scholes option pricing model to measure the fair value of warrants and convertible instruments, requiring management to make assumptions about stock price volatility and expected life[79].

Revenue Performance - Q3 2025 revenue decreased to $2.4 million, down from $4.4 million in Q3 2024, representing a decline of 45% year-over-year[21] - Mobile ad revenue remained steady at 15% of total revenue, while revenue from Roblox campaigns decreased to 42%, down from 57% in 2024[6] Cost Management and Profitability - Gross margins improved to 45%, up from 39% a year ago, indicating a positive trend in cost management[6] - Non-cash operating expenses decreased by 29% year-over-year, reflecting strict cost discipline[6] - Operating losses narrowed by 23% on a cash basis compared to Q3 2024, demonstrating progress towards profitability[6] - The company aims to achieve Adjusted EBITDA profitability in Q4 2025, supported by a more efficient cost structure and a stronger partner pipeline[6] Financial Position - The company achieved a strong balance sheet with $20 million from a private placement and zero debt, enhancing financial stability[2] - The total assets decreased to $8.7 million as of September 30, 2025, down from $11.7 million at the end of 2024[19] - Total liabilities decreased to $10.7 million from $11.5 million at the end of 2024, indicating improved financial health[19] Net Loss and Earnings - GAAP net loss for Q3 2025 was $3,562,000, a slight improvement from a loss of $3,632,000 in Q3 2024[23] - Pro forma net loss for the nine months ended September 30, 2025, was $8,491,449, compared to $8,597,000 for the same period in 2024[23] - Non-GAAP net earnings per share for Q3 2025 was $(2.52), significantly better than $(10.19) in Q3 2024[23] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2025, was $6,805,000, an improvement from $8,160,000 in 2024[25] - Net cash provided by investing activities was $923,000 for the nine months ended September 30, 2025, compared to a net cash outflow of $457,000 in 2024[25] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $5,633,000, up from $1,297,000 in 2024[25] - Cash and cash equivalents at the end of Q3 2025 were $1,061,000, compared to $289,000 at the end of Q3 2024[25] Other Financial Metrics - Non-cash stock compensation increased to $1,372,207 for the nine months ended September 30, 2025, from $986,000 in 2024[23] - The company reported a depreciation and amortization expense of $1,607,000 for the nine months ended September 30, 2025, down from $1,953,000 in 2024[25] - The company recorded a loss on extinguishment of liability of $161,000 for the nine months ended September 30, 2025, compared to $336,000 in 2024[25] Strategic Initiatives - The company is exploring strategies within the digital asset economy, backed by a $10 million investment from Evo Fund[8]

Financial Performance - Q3 2025 revenue decreased to $2.4 million, down from $4.4 million in Q3 2024, representing a decline of 45% year-over-year[21] - Operating losses narrowed by 23% on a cash basis compared to Q3 2024, with a net operating loss of $3.1 million[21] - GAAP net loss for Q3 2025 was $3,562,000, a slight improvement from a loss of $3,632,000 in Q3 2024[23] - Pro forma net loss for the nine months ended September 30, 2025, was $8,491,449, compared to $8,597,000 for the same period in 2024[23] - Non-GAAP net earnings per share for Q3 2025 was $(2.52), significantly better than $(10.19) in Q3 2024[23] Revenue Sources - Mobile ad revenue accounted for 15% of total revenue, while Roblox campaigns contributed 42%, down from 57% in 2024, indicating diversification efforts[6] Cost Management - Gross margins improved to 45% in Q3 2025, up from 39% in the same quarter last year[6] - Non-cash operating expenses decreased by 29% year-over-year, reflecting strict cost discipline[6] - The company aims to achieve Adjusted EBITDA profitability in Q4 2025, supported by a more efficient cost structure and a stronger partner pipeline[6] Financial Position - The company achieved a strong balance sheet with $20 million from a private placement and zero debt, enhancing its financial foundation[2] - The total assets decreased to $8.7 million as of September 30, 2025, from $11.7 million at the end of 2024[19] - Total liabilities reduced to $10.7 million from $11.5 million at the end of 2024, indicating improved financial health[19] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2025, was $6,805,000, an improvement from $8,160,000 in 2024[25] - Cash and cash equivalents at the end of Q3 2025 were $1,061,000, compared to $289,000 at the end of Q3 2024[25] - Net cash provided by investing activities for the nine months ended September 30, 2025, was $923,000, compared to a net outflow of $457,000 in 2024[25] - Proceeds from the issuance of common stock in Q3 2025 amounted to $1,945,000[25] Expenses - The company recorded a depreciation and amortization expense of $1,607,000 for the nine months ended September 30, 2025[25] - The change in fair value of warrant liability resulted in a loss of $1,934,000 for the nine months ended September 30, 2025[25] - The company reported a stock-based compensation expense of $1,372,000 for the nine months ended September 30, 2025, compared to $986,000 in 2024[25] Strategic Initiatives - The company is exploring strategies within the digital asset economy, backed by a $10 million investment from Evo Fund[8]

Revenue and Financial Performance - Total revenue from the oil and gas segment was $225,678 for the three and nine months ended September 30, 2025[140]. - General and administrative expenses increased to $3,456,958 during the three months ended September 30, 2025, from $433,412 during the same period in 2024[141]. - Cash balance at September 30, 2025, was $1,512,157, an increase from $525,809 at December 31, 2024[143]. - Operating activities used $4,606,146 of cash during the nine months ended September 30, 2025, compared to $1,823,786 during the same period in 2024[146]. - Financing activities raised $7,431,486 during the nine months ended September 30, 2025, compared to none during the same period in 2024[148]. - Long-term liabilities increased to $6,191,700 at September 30, 2025, from $5,860,274 at December 31, 2024[149]. Strategic Initiatives - The Company acquired all outstanding units of AGIG on July 1, 2025, diversifying its portfolio in the energy sector[127]. - The Company is focused on using waste products to decarbonize the energy sector through AGIG's proprietary technologies[128]. - The Company is in the pre-revenue stage for its renewable energy segment, incurring research and development costs[144]. - The Company will need substantial additional funding to support operations and growth strategy[145].

Financial Performance - Current quarter net revenue decreased by $0.79 million to $1.12 million from $1.91 million in the prior year quarter, primarily due to lower licensing revenues and the sale of remaining Longaberger inventory in the prior year [159]. - The company reported a net loss of $7.90 million for the current quarter, an improvement from a net loss of $9.21 million in the prior year quarter [167]. - Non-GAAP net loss for the current quarter was approximately $1.34 million, or $(0.34) per diluted share, compared to a non-GAAP net loss of $1.33 million, or $(0.57) per diluted share, in the prior year quarter [168]. - Adjusted EBITDA for the current quarter was approximately $(0.65) million, an improvement from approximately $(1.05) million in the prior year quarter [169]. - For the nine months ended September 30, 2025, net revenue decreased by $3.28 million to $3.77 million from $7.05 million in the prior year nine months, primarily due to the divestiture of the Lori Goldstein brand [177]. - The company recognized a net loss of $14.68 million for the current nine months, compared to a net loss of $15.31 million for the prior year nine months [186]. - Non-GAAP net loss was approximately $3.61 million, or $(1.24) per diluted share, for the current nine months, compared to a non-GAAP net loss of approximately $3.44 million, or $(1.53) per diluted share, for the prior year [187]. Operating Costs and Expenses - Direct operating costs and expenses decreased approximately $0.66 million, from $2.83 million in the prior year quarter to $2.17 million in the current quarter, attributed to restructuring and cost reduction actions [160]. - Direct operating costs and expenses for the nine months decreased approximately $3.56 million, from $9.91 million in the prior year to $6.35 million in the current nine months, due to restructuring and cost reduction actions [178]. - The Company’s direct operating costs have been reduced from approximately $8 million per quarter to less than $2.5 million per quarter, resulting in over $22 million in annualized cost savings compared to 2022 [217]. - The company has reduced its direct operating expenses to an expected run rate of less than $10 million per annum as part of ongoing cost-cutting measures [179]. Cash Flow and Liquidity - Net cash used in operating activities was approximately $5.20 million in the current nine months, compared to approximately $3.31 million in the prior year [198]. - As of September 30, 2025, the company had unrestricted cash and cash equivalents of approximately $1.5 million [189]. - The working capital deficit was approximately $0.89 million as of September 30, 2025, primarily due to the amendment of the term loan debt [192]. - Interest and finance expense increased to approximately $3.42 million for the current nine months, up from approximately $0.44 million in the prior year [184]. - The company incurred a $1.85 million loss on early extinguishment of debt during the current nine months due to refinancing activities [184]. - The Company closed on a public offering and private placement of common stock in August 2025, providing additional net proceeds to improve liquidity [195]. - The total net proceeds from the 2025 Public Offering and Private Placement Transactions amounted to approximately $2.0 million [214]. Debt and Financing - Interest and finance expense increased to approximately $0.52 million for the current quarter, compared to approximately $0.14 million in the prior year quarter, due to higher interest rates [165]. - The Company plans to make a prepayment of $3,250,000 on Term Loan A by February 20, 2026, along with an amendment fee of $450,000 [210]. - The liquid asset covenant requirement was reduced to $1,000,000 following the amendment of the loan agreement on October 7, 2025 [209]. - The Company is currently in compliance with all applicable financial covenants as per the loan agreements [208]. - The restructuring of term debt in April 2025 improved the Company's liquidity position despite higher interest payments over the term of the debt [218]. Strategic Initiatives - The company is focused on building a diversified portfolio of lifestyle consumer products brands through organic growth and strategic acquisitions [158]. - The Company plans to launch three new brands in Q4 2025, including Trust, Respect, Love by Cesar Millan, GemmaMade, and Mesa Mia [216]. Market Conditions - The company recognized losses related to equity investments of approximately $5.49 million in the current quarter, compared to $6.85 million in the prior year quarter [164]. - The Company continues to face headwinds from poor economic conditions, inflation, and rising consumer debt levels, which may negatively impact demand for its products [220].

Financial Position - As of September 30, 2025, the company had $8,000 in cash and a working capital deficiency of $2,711,000[89] - The company issued unsecured promissory notes totaling $600,000 to Energi, with a balance due of approximately $675,000 as of September 30, 2025[93] - The company has requested additional loans from third parties to meet liquidity needs, as only approximately $75,000 is available outside the trust account as of November 14, 2025[110] Financial Performance - For the quarter ended September 30, 2025, the company reported a net loss of approximately $199,000, with operating and financial expenses totaling $294,000[102] - The company has not engaged in any revenue-generating operations to date and has incurred increased expenses related to being a public company[101] Business Transactions - The company signed a Business Combination Agreement with Tembo e-LV B.V. on August 29, 2024, and is working towards completing the transaction[91] - Energi Holdings proposed to acquire 51% of Tembo for a total enterprise value of $200 million, with Energi having $1 billion in annual revenues[92] Shareholder Actions - A total of 1,148,799 Class A ordinary shares were redeemed during the Third Extension, resulting in 3,926,071 Class A ordinary shares outstanding[96] - The Fourth Extension was approved on October 31, 2025, extending the mandatory liquidation date to November 2, 2026, with 711,333 Class A ordinary shares redeemed[98] - The company has reduced payments for the redemption of a portion of public shares in connection with multiple extension meetings[114] Compliance and Regulatory Issues - The company is subject to delisting from Nasdaq due to not completing an initial business combination within 36 months of its IPO, with trading suspended on November 5, 2024[95] Investment Strategy - The net proceeds from the initial public offering and private warrants are invested in U.S. government treasury bills with a maturity of 185 days or less[114] - Investments are made in money market funds that comply with Rule 2a-7 under the Investment Company Act of 1940[114] - The company believes there will be no material exposure to interest rate risk due to the short-term nature of these investments[114]

Financial Position - As of September 30, 2025, the company had $8,000 in cash and a working capital deficiency of $2,711,000[89] - The company issued unsecured promissory notes totaling $600,000 to Energi, with a balance of approximately $675,000 due as of September 30, 2025[93] - The company has extended the mandatory liquidation date to November 2, 2026, following the Fourth Extension Meeting[98] - The company faces substantial doubt about its ability to continue as a going concern if it cannot complete the initial business combination due to insufficient funds[110] Financial Performance - For the quarter ended September 30, 2025, the company reported a net loss of approximately $199,000, with operating and financial expenses totaling $294,000[102] - The company has not engaged in revenue-generating operations to date and relies on interest income from its trust account[101] Business Combination - The company signed a Business Combination Agreement with Tembo e-LV B.V. on August 29, 2024, and is working towards completing the transaction[91] - Energi Holdings proposed to acquire 51% of Tembo for a total enterprise value of $200 million, with Energi having $1 billion in annual revenues[92] - The company anticipates using funds from its trust account to complete the initial business combination, with additional loans being sought to cover operational costs[110] Shareholder Actions - A total of 1,148,799 Class A ordinary shares were redeemed during the Third Extension, resulting in 3,926,071 Class A ordinary shares outstanding[96] - The company has reduced payments for the redemption of a portion of public shares in connection with multiple extension meetings[114] Investment Strategy - The net proceeds from the initial public offering and private warrants are invested in U.S. government treasury bills with a maturity of 185 days or less[114] - Investments are made in money market funds that comply with Rule 2a-7 under the Investment Company Act of 1940[114] - The company believes there will be no material exposure to interest rate risk due to the short-term nature of these investments[114]

Revenue Generation and Market Overview - Wellgistics Health expects to generate revenues primarily through Wellgistics Pharmacy and Wellgistics LLC after acquiring Wood Sage, LLC in June 2024 and Wellgistics, LLC in August 2024[182]. - The National Health Expenditure Data for 2022 reached $4.5 trillion, accounting for 17.3% of GDP, with an expected increase to 19.7% by 2032[184]. - Total retail prescription drug spending increased by 8.4% from 2021 to 2022, reaching $405.9 billion[184]. - The U.S. market for medicines reached $435 billion in 2023, with the specialty drug market accounting for over 50% of prescription drug spending despite being less than 10% of total drugs[184]. - Wellgistics, LLC serves over 5,000 registered pharmacies nationwide, focusing on competitive pricing and unique products[172]. - Wellgistics Pharmacy is licensed in 32 states and the District of Columbia, expanding its operations to include mail order pharmacy services[178]. - The pharmacy network includes over 19,000 independent pharmacies across the U.S., capable of delivering prescriptions in hours, servicing approximately 1.3 billion prescriptions annually[185]. - Wellgistics Health aims to enhance patient outcomes by improving medication adherence and providing access to clinical resources[185]. - The company plans to expand its wholesale operations and establish new manufacturer relationships to maximize revenues[185]. Financial Performance - Net revenues for the three months ended September 30, 2025, were $3,012,904, a decrease of approximately 47% compared to $5,673,868 for the same period in 2024[198]. - Gross profit for the three months ended September 30, 2025, was $231,012, representing a decline of approximately 56% from $521,244 in 2024[200]. - General and administrative expenses for the three months ended September 30, 2025, increased to $30,172,800 from $1,798,641 in 2024, primarily due to the acquisition of Wellgistics LLC[202]. - Sales and marketing expenses for the three months ended September 30, 2025, were $803,747, compared to $0 for the same period in 2024, reflecting expanded promotional activities[203]. - Net revenues for the nine months ended September 30, 2025, were $21,667,212, compared to $5,718,408 for the same period in 2024, driven by acquisitions[209]. - Gross profit for the nine months ended September 30, 2025, was $1,429,405, an increase of approximately 176% from $518,636 in 2024[211]. - General and administrative expenses for the nine months ended September 30, 2025, were $66,205,669, up from $2,448,813 in 2024, largely due to acquisitions[214]. - Interest expense for the nine months ended September 30, 2025, was $3,703,837, compared to $142,281 in 2024, reflecting increased financing activities[218]. - The significant increase in other expenses for the nine months ended September 30, 2025, totaled $5,024,498, compared to $126,874 in 2024, primarily due to interest expenses and losses related to acquisitions[217]. - The Company recognized a loss of $1,353,663 for the nine months ended September 30, 2025, due to the amendment of the Membership Interest Purchase Agreement, increasing the promissory note from $15 million to $17.5 million[219]. Debt and Financing Activities - As of September 30, 2025, total debt amounted to $24,809,234, an increase from $23,382,901 as of December 31, 2024[225]. - The Company expects to generate positive cash flow from operations in 2025, driven by annual revenue from Wood Sage and Wellgistics LLC[220]. - The Company issued a total of 3,426,254 shares of common stock, resulting in net proceeds of $2,838,787 as of September 30, 2025[223]. - A public offering of 7,142,862 shares of common stock was filed on September 29, 2025, generating net proceeds of approximately $4.53 million[224]. - The Company entered into a secured term loan of $1,300,000 on August 26, 2025, with a total repayment obligation of $1,872,000[231]. - The Company recorded interest expenses of $668,148 for the nine months ended September 30, 2025, related to various debt instruments[230]. - The Company plans to use proceeds from offerings to strengthen working capital, support operations, and pursue strategic acquisitions[224]. - The Company has ongoing initiatives for facility expansion, employee recruitment, and technology upgrades to meet operational needs[221]. - The Company is focusing on strategic acquisitions to enhance its health ecosystem, including investments in artificial intelligence and data warehousing capabilities[222]. - Wellgistics, LLC entered into a new credit agreement for a line of credit of $10,000,000 with an annual interest rate of 16.84%[241]. - As of September 30, 2025, the outstanding balance on the line of credit was $2,973,751, down from $5,531,260 as of December 31, 2024[241]. Cash Flow and Investment Activities - Net cash used in operating activities for the nine months ended September 30, 2025 was $4,561,776, primarily due to a net loss of $72,981,336[247]. - Net cash provided by financing activities for the nine months ended September 30, 2025 was $8,388,250, driven by gross proceeds of $4,000,000 from the IPO and $20,070,000 from the revolving line of credit[250]. - The company fully repaid the $1.2 million promissory note as of September 30, 2025, compared to an outstanding balance of $137,141 as of December 31, 2024[243]. - The company plans to retain future earnings for operations, expansion, and debt repayment, with no current plans to pay cash dividends[245]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $626,144, primarily for capitalized software expenditures[249]. Accounting and Revenue Recognition - The company recognized revenue at the point of sale, with the majority of orders placed via its website[256]. - The company accounts for acquisitions as business combinations, allocating the purchase price to the fair values of acquired assets and liabilities[262]. - As of September 30, 2025, the company had total outstanding debt principal payments of $24,809,234 scheduled through 2028[244].