Category: Australia

  • MIL-OSI Australia: ACT signs on to new school funding and reform agreement

    Source: Australian Ministers for Education

    The Albanese Government and Barr Government have today signed an updated school funding and reform agreement.

    As part of the updated agreement, the Commonwealth will provide additional funding, lifting its contribution to 25 per cent of the Schooling Resource Standard (SRS) by 2034.   

    This will see an estimated $72 million in additional Commonwealth funding to ACT public schools over the life of the agreement.

    This includes more individualised support for students, mandating evidenced-based teaching practices and more mental health support in schools.

    The Australian Government’s funding increase is conditional on the ACT maintaining its funding share for public schools at a minimum of 81.5 per cent of the SRS from 2030 to 2034. 

    This is not a blank cheque. 

    The funding is tied to reforms that will help students catch up, keep up and finish school, such as: 

    • Year 1 phonics and early years numeracy checks to identify students in the early years of school who need additional help
    • whole of school systems of supports and assessment tools that will enable targeted support to students and schools that need it most, including through small-group or catch-up tutoring to help students who fall behind
    • initiatives that support wellbeing for learning – including new approaches to addressing bullying and supporting complex behaviours
    • working with schools, communities and services providers to provide students with access to community coordinators and multi-disciplinary services
    • exploring ways to expand flexible education offerings to support students who need additional support to engage with learning
    • delivering Literacy and Numeracy coaching services, professional learning initiatives and access to quality assured curriculum resources for teachers across ACT public schools
    • initiatives to strengthen teacher and school leader wellbeing, with focus on teacher workload reduction and workforce attraction and retention.

    In addition, the following national targets are included: 

    • increasing the proportion of students leaving school with a Year 12 certificate by 7.5 percentage points (nationally) by 2030
    • reducing the proportion of students in the NAPLAN ‘Needs Additional Support’ proficiency level for reading and numeracy nationally by 10 per cent
    • increasing the proportion of students in the ‘Strong’ and ‘Exceeding’ proficiency levels for reading and numeracy by 10 per cent by 2030 and trend upwards for priority equity cohorts in the ‘Strong’ and ‘Exceeding’ proficiency levels nationally
    • increasing the Student Attendance Rate, nationally, to 91.4 per cent (2019 level) by 2030
    • increasing the engagement rate (completed or still enrolled) of initial teacher education students by 10 percentage points to 69.7 per cent by 2035.

    This means more help for students and more support for teachers.

    This agreement builds on the previous agreement with the ACT, signed in November last year.

    Quotes attributable to Australian Minister for Education Jason Clare:

    “This agreement lifts the Commonwealth’s contribution to 25 per cent of the Schooling Resource Standard for ACT public schools. 

    “This investment is tied to real, practical reforms to help students catch up, keep up and finish school.”

    Quotes attributable to ACT Minister for Education and Early Childhood Yvette Berry MLA:

    “Every ACT public school student deserves a great education, and a high-quality public education system is key to helping children and young people reach their full potential.

    “This updated funding agreement will mean extra resources for ACT students and teachers, ensuring ACT public schools will continue to be great places for students to learn and staff to work.”

    MIL OSI News

  • MIL-OSI: Silvercrest Asset Management Group Inc. Reports Q4 and Year-End 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, March 06, 2025 (GLOBE NEWSWIRE) — Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the results of its operations for the quarter and year ended December 31, 2024.

    Business Update

    Silvercrest concluded 2024 with strong new client organic flows due to new strategic investments made over the past year that are already bearing fruit. The firm garnered $1.4 billion in Q4 and $1.5 billion during 2024 in new client assets under management (“AUM”) inflows, the best year for new organic client inflows since 2015. The fourth quarter was primarily bolstered by winning a successful seed investment in our new Global Value Equity strategy of $1.3 billion USD ($2.0 billion AUD) in partnership with CBUS, one of Australia’s largest superannuation funds. The increases during the quarter bode well for future revenue, and we remain highly optimistic about securing more significant organic net flows over the course of 2025 to increase our return on invested capital.

    Total AUM as of year-end 2024 reached $36.5 billion as of December 31, 2024, up 9.6% from $33.3 billion at year-end 2023. Discretionary AUM, which drives revenue, rose 6.4% to $23.3 billion from $21.9 billion. Overall, total asset flows and market increases were a net positive for the firm and will drive an increase in future revenue. Revenue for the year increased 5.3% to $123.7 million from $117.4 million, with Q4 revenue up 12.0% over Q4 2023, to $32.0 million from $28.5 million.

    Strategically, in addition to building the firm’s new Global Value Equity strategy, we have hired business development and market leads in Atlanta and Singapore. We have our full MAS license for doing business in Singapore. With significant European assets and growth opportunities, we will be pursuing more initiatives to better highlight Silvercrest in both the institutional and wealth markets. The firm also has invested in talent across the firm to drive new growth and successfully transition the business toward the next generation.

    Silvercrest developed new and stronger institutional consulting relationships during 2024, with new investment opportunities to develop our strategies. Our pipeline remains robust. As a result, we are optimistic about securing significant new organic flows. Importantly, the firm’s pipeline does not yet include mandates for our new Global Value Equity strategy which has a high capacity for significant new assets. We have worked hard over the past year to build the infrastructure, team, and strategy while undertaking business development. As with our third-quarter call, we envision more positive AUM flows and resulting revenue increases.

    As I have discussed throughout the past year, Silvercrest has never had more business opportunities. Those initiatives are beginning to bear results. We have made and will continue to make investments to drive future growth in the business. We expect to make more hires to complement our outstanding professional team to drive that future growth. Silvercrest continues to accrue a higher interim percentage of revenue for compensation for this purpose, and, as mentioned, we will continue to adjust compensation accruals to match these important investments in the business and will keep you informed of our plans and the progress of these investments.

    Fourth Quarter 2024 Highlights

    • Total AUM of $36.5 billion, inclusive of discretionary AUM of $23.3 billion and non-discretionary AUM of $13.2 billion at December 31, 2024.
    • Revenue of $32.0 million.
    • U.S. Generally Accepted Accounting Principles (“GAAP”) consolidated net income and net income attributable to Silvercrest of $2.7 million and $1.6 million, respectively.
    • Basic and diluted net income per share of $0.17.
    • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)1 of $5.1 million.
    • Adjusted net income1 of $2.9 million.
    • Adjusted basic and diluted earnings per share1,2 of $0.21 and $0.20, respectively.

    The table below presents a comparison of certain GAAP and non-GAAP (“Adjusted”) financial measures and AUM.

       
    For the Three Months

    Ended December 31,
        For the Twelve Months
    Ended December 31,
     
    (in thousands except as indicated)   2024     2023     2024     2023  
    Revenue   $ 31,962     $ 28,542     $ 123,651     $ 117,410  
    Income (loss) before other income (expense), net   $ 1,957     $ (969 )   $ 17,627     $ 18,819  
    Net income (loss)   $ 2,684     $ (642 )   $ 15,709     $ 15,183  
    Net income (loss) margin     8.4 %     (2.2 )%     12.7 %     12.9 %
    Net income (loss) attributable to Silvercrest   $ 1,618     $ (411 )   $ 9,535     $ 9,094  
    Net income (loss) per basic share   $ 0.17     $ (0.05 )   $ 1.00     $ 0.96  
    Net income (loss) per diluted share   $ 0.17     $ (0.04 )   $ 1.00     $ 0.96  
    Adjusted EBITDA1   $ 5,070     $ 2,581     $ 26,101     $ 26,878  
    Adjusted EBITDA Margin1     15.9 %     9.0 %     21.1 %     22.9 %
    Adjusted net income1   $ 2,861     $ 1,049     $ 15,782     $ 16,104  
    Adjusted basic earnings per share1, 2   $ 0.21     $ 0.08     $ 1.15     $ 1.16  
    Adjusted diluted earnings per share1, 2   $ 0.20     $ 0.07     $ 1.10     $ 1.12  
    Assets under management at period end (billions)   $ 36.5     $ 33.3     $ 36.5     $ 33.3  
    Average assets under management (billions)3   $ 35.0     $ 32.3     $ 34.9     $ 31.1  
    Discretionary assets under management (billions)   $ 23.3     $ 21.9     $ 23.3     $ 21.9  
    ___________________
    1 Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in Exhibits 3 and 4.
    2 Adjusted basic and diluted earnings per share measures for the three and twelve months ended December 31, 2024 are based on the number of shares of Class A common stock and Class B common stock outstanding as of December 31, 2024. Adjusted diluted earnings per share are further based on the addition of unvested restricted stock units and non-qualified stock options to the extent dilutive at the end of the reporting period.
    3 We have computed average AUM by averaging AUM at the beginning of the applicable period and AUM at the end of the applicable period.


    AUM at $36.5 Billion

    Silvercrest’s discretionary assets under management increased by $1.4 billion, or 6.4%, to $23.3 billion at December 31, 2024, from $21.9 billion at December 31, 2023. The increase was attributable to market appreciation of $2.1 billion partially offset by net client outflows of $0.7 billion. Silvercrest’s total AUM increased by $3.2 billion, or 9.6%, to $36.5 billion at December 31, 2024, from $33.3 billion at December 31, 2023. The increase was attributable to market appreciation of $3.8 billion partially offset by net client outflows of $0.6 billion.

    Silvercrest’s discretionary assets under management increased by $0.7 billion, or 3.1%, to $23.3 billion at December 31, 2024, from $22.6 billion at September 30, 2024. The increase was attributable to net client inflows of $0.9 billion partially offset by market depreciation of $0.2 billion. Silvercrest’s total AUM increased by $1.4 billion, or 4.0%, to $36.5 billion at December 31, 2024, from $35.1 billion at September 30, 2024. The increase was attributable to market appreciation of $0.5 billion and net client inflows of $0.9 billion.

    Fourth Quarter 2024 vs. Fourth Quarter 2023

    Revenue increased by $3.4 million, or 12.0%, to $32.0 million for the three months ended December 31, 2024, from $28.5 million for the three months ended December 31, 2023. This increase was driven by net client inflows in discretionary assets under management partially offset by market depreciation.

    Total expenses increased by $0.5 million, or 1.7%, to $30.0 million for the three months ended December 31, 2024, from $29.5 million for the three months ended December 31, 2023. Compensation and benefits expense decreased by $0.8 million, or 3.4%, to $21.9 million for the three months ended December 31, 2024, from $22.7 million for the three months ended December 31, 2023. The decrease was primarily attributable to a decrease in bonuses of $1.7 million, partially offset by increases in salaries and benefits of $0.9 million primarily as a result of merit-based increases and newly hired staff. General and administrative expenses increased by $1.3 million, or 18.5%, to $8.1 million for the three months ended December 31, 2024, from $6.8 million for the three months ended December 31, 2023. This was primarily attributable to increases in portfolio and systems expense of $0.5 million, office expense of $0.2 million, recruiting costs of $0.1 million and professional fees of $0.5 million.

    Consolidated net income was $2.7 million for the three months ended December 31, 2024, as compared to consolidated net loss of $0.6 million for the same period in the prior year. Net income attributable to Silvercrest was $1.6 million, or $0.17 per basic and diluted share, for the three months ended December 31, 2024. Our Adjusted Net Income1 was $2.9 million, or $0.21 per adjusted basic share and $0.20 per adjusted diluted share,2 for the three months ended December 31, 2024.

    Adjusted EBITDA1 was $5.1 million, or 15.9% of revenue, for the three months ended December 31, 2024, as compared to $2.6 million or 9.0% of revenue for the same period in the prior year.

    Year Ended December 31, 2024 vs. Year Ended December 31, 2023

    Revenue increased by $6.2 million, or 5.3%, to $123.7 million for the year ended December 31, 2024, from $117.4 million for the year ended December 31, 2023. This increase was driven by market appreciation in discretionary assets under management partially offset by net client outflows.

    Total expenses increased by $7.4 million, or 7.5%, to $106.0 million for the year ended December 31, 2024, from $98.6 million for the year ended December 31, 2024. Compensation and benefits expense increased by $4.0 million, or 5.6%, to $76.7 million for the year ended December 31, 2024, from $72.6 million for the year ended December 31, 2023. The increase was primarily attributable to an increase in equity based compensation expense of $0.3 million due to an increase in the number of unvested restricted stock units and unvested non-qualified stock options outstanding, an increase in salaries and benefits expense of $2.5 million primarily as a result of merit-based increases and newly hired staff and an increase in the accrual for bonuses of $1.2 million. General and administrative expenses increased by $3.4 million, or 13.1%, to $29.4 million for the year ended December 31, 2024, from $26.0 million for the year ended December 31, 2023. The increase was primarily attributable to increases in professional fees of $1.1 million, portfolio and systems expenses of $0.8 million, occupancy and related costs of $0.3 million, trading errors of $0.3 million, recruiting expenses of $0.3 million, travel and entertainment expenses of $0.2 million, depreciation and amortization of $0.1 million, office expense of $0.1 million, publications and subscriptions costs of $0.1 million and sub-advisory and referral fees of $0.1 million. 

    Consolidated net income was $15.7 million, or 12.7% of revenue, for the year ended December 31, 2024, as compared to consolidated net income of $15.2 million, or 12.9% of revenue, for the same period in the prior year. Net income attributable to Silvercrest was $9.5 million, or $1.00 per basic and diluted share, for the year ended December 31, 2024. Our Adjusted Net Income1 was $15.8 million, or $1.15 per adjusted basic share and $1.10 per adjusted diluted share,2 for the year ended December 31, 2024.

    Adjusted EBITDA1 was $26.1 million, or 21.1% of revenue, for the year ended December 31, 2024, as compared to $26.9 million, or 22.9% of revenue, for the same period in the prior year.

    Liquidity and Capital Resources

    Cash and cash equivalents were $68.6 million at December 31, 2024, compared to $70.3 million at December 31, 2023. As of December 31, 2024, there was nothing outstanding under our term loan with City National Bank and nothing outstanding on our revolving credit facility with City National Bank.

    Silvercrest Asset Management Group Inc.’s total equity was $80.7 million at December 31, 2024. We had 9,376,280 shares of Class A common stock outstanding and 4,373,315 shares of Class B common stock outstanding at December 31, 2024.

    Non-GAAP Financial Measures

    To provide investors with additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, we supplement our consolidated financial statements presented on a basis consistent with GAAP with Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures of earnings. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

    • EBITDA represents net income before provision for income taxes, interest income, interest expense, depreciation and amortization.
    • We define Adjusted EBITDA as EBITDA without giving effect to the Delaware franchise tax, professional fees associated with acquisitions or financing transactions, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings of the Company, taking into account earnings attributable to both Class A and Class B stockholders.
    • Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA Margin, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring profitability of the Company, taking into account profitability attributable to both Class A and Class B stockholders.
    • Adjusted Net Income represents recurring net income without giving effect to professional fees associated with acquisitions or financing transactions, losses on forgiveness of notes receivable from our principals, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. Furthermore, Adjusted Net Income includes income tax expense assuming a blended corporate rate of 26%. We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Net Income, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring income of the Company, taking into account income attributable to both Class A and Class B stockholders.
    • Adjusted Earnings Per Share represents Adjusted Net Income divided by the actual Class A and Class B shares outstanding as of the end of the reporting period for basic Adjusted Earnings Per Share, and to the extent dilutive, we add unvested restricted stock units and non-qualified stock options to the total shares outstanding to compute diluted Adjusted Earnings Per Share. As a result of our structure, which includes a non-controlling interest, we believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Earnings Per Share, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings per share of the Company as a whole as opposed to being limited to our Class A common stock.

    Conference Call

    The Company will host a conference call on March 7, 2025, at 8:30 am (Eastern Time) to discuss these results. Hosting the call will be Richard R. Hough III, Chief Executive Officer and President, and Scott A. Gerard, Chief Financial Officer. Listeners may access the call by dialing 1-844-836-8743 or for international listeners the call may be accessed by dialing 1-412-317-5723. A live, listen-only webcast will also be available via the investor relations section of www.silvercrestgroup.com. An archived replay of the call will be available after the completion of the live call on the Investor Relations page of the Silvercrest website at http://ir.silvercrestgroup.com/.

    Forward-Looking Statements

    This release contains, and from time to time our management may make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and assumptions. These statements are only predictions based on our current expectations and projections about future events. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those indicated by such forward-looking statements include, but are not limited to: incurrence of net losses; fluctuations in quarterly and annual results; adverse economic or market conditions; our expectations with respect to future levels of assets under management, inflows and outflows; our ability to retain clients; our ability to maintain our fee structure; our particular choices with regard to investment strategies employed; our ability to hire and retain qualified investment professionals; the cost of complying with current and future regulation coupled with the cost of defending ourselves from related investigations or litigation; failure of our operational safeguards against breaches in data security, privacy, conflicts of interest or employee misconduct; our expected tax rate; our expectations with respect to deferred tax assets, adverse economic or market conditions; incurrence of net losses; adverse effects of management focusing on implementation of a growth strategy; failure to develop and maintain the Silvercrest brand; and other factors disclosed under “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2023, which is accessible on the U.S. Securities and Exchange Commission’s website at www.sec.gov. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

    About Silvercrest

    Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser. With offices in New York, Boston, Virginia, New Jersey, California and Wisconsin, Silvercrest provides traditional and alternative investment advisory and family office services to wealthy families and select institutional investors.

    Silvercrest Asset Management Group Inc.

    Contact: Richard Hough
    212-649-0601
    rhough@silvercrestgroup.com

     
    Exhibit 1
     
    Silvercrest Asset Management Group Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited and in thousands, except share and per share amounts or as noted)
     
        Year Ended December 31,  
        2024     2023  
        (Unaudited)        
    Revenue            
    Management and advisory fees   $ 119,316     $ 112,794  
    Family office services     4,335       4,616  
    Total revenue     123,651       117,410  
    Expenses            
    Compensation and benefits     76,663       72,619  
    General and administrative     29,361       25,972  
    Total expenses     106,024       98,591  
    Income before other (expense) income, net     17,627       18,819  
    Other (expense) income, net            
    Other (expense) income, net     203       76  
    Interest income     1,432       946  
    Interest expense     (144 )     (421 )
    Equity income from investments     1,154       73  
    Total other (expense) income, net     2,645       674  
    Income before provision for income taxes     20,272       19,493  
    Provision for income taxes     (4,563 )     (4,310 )
    Net income     15,709       15,183  
    Less: net income attributable to non-controlling interests     (6,174 )     (6,089 )
    Net income attributable to Silvercrest   $ 9,535     $ 9,094  
    Net income per share:            
    Basic   $ 1.00     $ 0.96  
    Diluted   $ 1.00     $ 0.96  
    Weighted average shares outstanding:            
    Basic     9,495,375       9,431,404  
    Diluted     9,532,525       9,464,339  
     
    Exhibit 2
    Silvercrest Asset Management Group Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited and in thousands, except share and per share amounts or as noted)
     
        For the Three Months Ended December 31,  
        2024     2023  
        (Unaudited)        
    Revenue            
    Management and advisory fees   $ 30,871     $ 27,349  
    Family office services     1,091       1,193  
    Total revenue     31,962       28,542  
    Expenses            
    Compensation and benefits     21,903       22,674  
    General and administrative     8,102       6,837  
    Total expenses     30,005       29,511  
    Income (loss) income before other income (expense), net     1,957       (969 )
    Other income (expense), net            
    Other income (expense), net     178       45  
    Interest income     422       525  
    Interest expense     (49 )     (107 )
    Equity income from investments     1,154       73  
    Total other income (expense), net     1,705       536  
    Income (loss) before provision for income taxes     3,662       (433 )
    Provision for income taxes     (978 )     (209 )
    Net income (loss)     2,684       (642 )
    Less: net (income) loss attributable to non-controlling interests     (1,066 )     231  
    Net income (loss) attributable to Silvercrest   $ 1,618     $ (411 )
    Net income (loss) per share:            
    Basic   $ 0.17     $ (0.05 )
    Diluted   $ 0.17     $ (0.04 )
    Weighted average shares outstanding:            
    Basic     9,450,344       9,368,579  
    Diluted     9,487,453       9,368,579  
     
    Exhibit 3
    Silvercrest Asset Management Group Inc.
    Reconciliation of GAAP to non-GAAP (“Adjusted”) Adjusted EBITDA Measure
    (Unaudited and in thousands, except share and per share amounts or as noted)
     
    Adjusted EBITDA   For the Three Months
    Ended December 31,
        For the Year
    Ended December 31,
     
        2024     2023     2024     2023  
    Reconciliation of non-GAAP financial measure:                        
    Net (loss) income   $ 2,684     $ (642 )   $ 15,709     $ 15,183  
    Provision for income taxes     978       209       4,563       4,310  
    Delaware Franchise Tax     50       50       200       200  
    Interest expense     49       107       144       421  
    Interest income     (422 )     (525 )     (1,432 )     (946 )
    Depreciation and amortization     1,035       1,002       4,146       4,014  
    Equity-based compensation     542       580       1,916       1,627  
    Other adjustments (A)     154       1,800       855       2,069  
    Adjusted EBITDA   $ 5,070     $ 2,581     $ 26,101     $ 26,878  
    Adjusted EBITDA Margin     15.9 %     9.0 %     21.1 %     22.9 %

    (A) Other adjustments consist of the following:

        Three Months Ended
    December 31,
        Twelve Months Ended
    December 31,
        2024     2023     2024     2023
    Acquisition costs (a)   $       $       $       $ 5  
    Severance     140         52         393         71  
    Other (b)     14         1,748         462         1,993  
    Total other adjustments   $ 154       $ 1,800       $ 855       $ 2,069  
    (a) For the twelve months ended December 31, 2023, represents professional fees of $5 related to the acquisition of Cortina.
    (b) For the three months ended December 31, 2024, represents a Tax Receivable Agreement adjustment of ($78), an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, software implementation costs of $4, professional fees related to a transfer pricing project of $27 and data conversion costs of $13. For the twelve months ended December 31, 2024, represents a fair value adjustment to the Neosho contingent purchase price consideration of $12, an ASC 842 rent adjustment of $192 related to the amortization of property lease incentives, a Tax Receivable Agreement adjustment of ($78), sign on bonuses paid to certain employees of $188, professional fees of $53 related to a transfer pricing project, legal fees of $46, data conversion costs of $27 and software implementation costs of $22. For the three months ended December 31, 2023, represents a variable compensation payment of $1,667 related to the difference between the number of non-qualified stock options granted to an existing Class B unit holder as determined using the Black-Scholes method inclusive and exclusive of the expected annual dividend yield input, a Tax Receivable Agreement adjustment of ($38), an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, software implementation costs of $7, a fair value adjustment to the Neosho contingent purchase price consideration of $24, professional fees related to a transfer pricing project of $37 and legal fees related to the startup of a fund of $2. For the twelve months ended December 31, 2023, represents a variable compensation payment of $1,667 related to the difference between the number of non-qualified stock options granted to an existing Class B unit holder as determined using the Black-Scholes method inclusive and exclusive of the expected annual dividend yield input,  a Tax Receivable Agreement adjustment of $2, an ASC 842 rent adjustment of $192 related to the amortization of property lease incentives, moving costs of $35, software implementation costs of $35, professional fees related to a transfer pricing project of $37, legal fees related to the startup of a fund of $2, a fair value adjustment to the Neosho contingent purchase price consideration of $24 and a fair value adjustment to the Cortina contingent purchase price consideration of ($2).
     
    Exhibit 4
    Silvercrest Asset Management Group Inc.
    Reconciliation of GAAP to non-GAAP (“Adjusted”)
    Adjusted Net Income and Adjusted Earnings Per Share Measures
    (Unaudited and in thousands, except per share amounts or as noted)
     
    Adjusted Net Income and Adjusted Earnings Per Share   Three Months Ended
    December 31,
        Year Ended
    December 31,
     
        2024     2023     2024     2023  
    Reconciliation of non-GAAP financial measure:                        
    Net income (loss)   $ 2,684     $ (642 )   $ 15,709     $ 15,183  
    Consolidated GAAP Provision for income taxes     978       209       4,563       4,310  
    Delaware Franchise Tax     50       50       200       200  
    Other adjustments (A)     154       1,800       855       2,069  
    Adjusted earnings before provision for income taxes     3,866       1,417       21,327       21,762  
    Adjusted provision for income taxes:                        
    Adjusted provision for income taxes (26% assumed tax rate)     (1,005 )     (368 )     (5,545 )     (5,658 )
                             
    Adjusted net income   $ 2,861     $ 1,049     $ 15,782     $ 16,104  
                             
    GAAP net income (loss) per share (B):                        
    Basic   $ 0.17     $ (0.05 )   $ 1.00     $ 0.96  
    Diluted   $ 0.17     $ (0.04 )   $ 1.00     $ 0.96  
                             
    Adjusted earnings per share/unit (B):                        
    Basic   $ 0.21     $ 0.08     $ 1.15     $ 1.16  
    Diluted   $ 0.20     $ 0.07     $ 1.10     $ 1.12  
                             
    Shares/units outstanding:                        
    Basic Class A shares outstanding     9,376       9,479       9,376       9,479  
    Basic Class B shares/units outstanding     4,373       4,431       4,373       4,431  
    Total basic shares/units outstanding     13,750       13,910       13,750       13,910  
                             
    Diluted Class A shares outstanding (C)     9,413       9,515       9,413       9,515  
    Diluted Class B shares/units outstanding (D)     4,945       4,820       4,945       4,820  
    Total diluted shares/units outstanding     14,358       14,335       14,358       14,335  
    (A) See A in Exhibit 3.
    (B) GAAP earnings per share is strictly attributable to Class A stockholders. Adjusted earnings per share takes into account earnings attributable to both Class A and Class B stockholders.
    (C) Includes 37,109 and 35,554 unvested restricted stock units at December 31, 2024 and 2023, respectively.
    (D) Includes 205,079 and 240,998 unvested restricted stock units at December 31, 2024 and 2023, respectively, and 366,293 and 147,506 unvested non-qualified options at December 31, 2024 and 2023, respectively.
     
    Exhibit 5
    Silvercrest Asset Management Group Inc.
    Condensed Consolidated Statements of Financial Condition
    (Unaudited and in thousands)
     
        December 31,
    2024
        December 31,
    2023
     
    Assets            
    Cash and cash equivalents   $ 68,611     $ 70,301  
    Investments     1,354       219  
    Receivables, net     12,225       9,526  
    Due from Silvercrest Funds     945       558  
    Furniture, equipment and leasehold improvements, net     7,387       7,422  
    Goodwill     63,675       63,675  
    Operating lease assets     16,032       19,612  
    Finance lease assets     254       330  
    Intangible assets, net     16,644       18,933  
    Deferred tax asset     4,220       5,034  
    Prepaid expenses and other assets     3,085       3,964  
    Total assets   $ 194,432     $ 199,574  
    Liabilities and Equity            
    Accounts payable and accrued expenses   $ 1,953     $ 1,990  
    Accrued compensation     39,865       37,371  
    Borrowings under credit facility           2,719  
    Operating lease liabilities     22,270       26,277  
    Finance lease liabilities     262       336  
    Deferred tax and other liabilities     10,389       9,071  
    Total liabilities     74,739       77,764  
    Commitments and Contingencies (Note 10)            
    Equity            
    Preferred Stock, par value $0.01, 10,000,000 shares authorized; none issued and outstanding            
    Class A Common Stock, par value $0.01, 50,000,000 shares authorized; 10,450,559
    and 9,376,280 issued and outstanding, respectively, as of December 31, 2024;
    10,287,452 and 9,478,997 issued and outstanding, respectively, as of December 31, 2023
        104       103  
    Class B Common Stock, par value $0.01, 25,000,000 shares authorized; 4,373,315
    and 4,431,105 issued and outstanding as of December 31, 2024 and 2023, respectively
        42       43  
    Additional Paid-In Capital     56,369       55,809  
    Treasury stock, at cost, 1,074,279 and 808,455 shares as of December 31, 2024 and 2023, respectively     (19,728 )     (15,057 )
    Accumulated other comprehensive income (loss)     (43 )     (12 )
    Retained earnings     43,953       41,851  
    Total Silvercrest Asset Management Group Inc.’s equity     80,697       82,737  
    Non-controlling interests     38,996       39,073  
    Total equity     119,693       121,810  
    Total liabilities and equity   $ 194,432     $ 199,574  
     
    Exhibit 6
    Silvercrest Asset Management Group Inc.
    Total Assets Under Management
    (Unaudited and in billions)
     
    Total Assets Under Management:
     
        Three Months Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 35.1     $ 31.2       12.5 %
                       
    Gross client inflows     2.2       0.9       144.4 %
    Gross client outflows     (1.3 )     (1.3 )     0.0 %
    Net client flows     0.9       (0.4 )     325.0 %
                       
    Market appreciation     0.5       2.5       -80.0 %
    Ending assets under management   $ 36.5     $ 33.3       9.6 %
        Year Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 33.3     $ 28.9       15.2 %
                       
    Gross client inflows     5.1       5.4       -5.6 %
    Gross client outflows     (5.7 )     (4.8 )     18.8 %
    Net client flows     (0.6 )     0.6       -200.0 %
                       
    Market appreciation     3.8       3.8       0.0 %
    Ending assets under management   $ 36.5     $ 33.3       9.6 %
     
    Exhibit 7
    Silvercrest Asset Management Group Inc.
    Discretionary Assets Under Management
    (Unaudited and in billions)
     
    Discretionary Assets Under Management:
     
        Three Months Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 22.6     $ 20.5       10.2 %
                       
    Gross client inflows     1.8       0.7       157.1 %
    Gross client outflows     (0.9 )     (1.1 )     -18.2 %
    Net client flows     0.9       (0.4 )     325.0 %
                       
    Market (depreciation) appreciation     (0.2 )     1.8       -111.1 %
    Ending assets under management   $ 23.3     $ 21.9       6.4 %
        Twelve Months Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 21.9     $ 20.9       4.8 %
                       
    Gross client inflows     3.9       3.0       30.0 %
    Gross client outflows     (4.6 )     (4.1 )     12.2 %
    Net client flows     (0.7 )     (1.1 )     36.4 %
                       
    Market appreciation     2.1       2.1       0.0 %
    Ending assets under management   $ 23.3     $ 21.9       6.4 %
    Exhibit 8
    Silvercrest Asset Management Group Inc.
    Non-Discretionary Assets Under Management
    (Unaudited and in billions)
     
    Non-Discretionary Assets Under Management:
     
        Three Months Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 12.5     $ 10.7       16.8 %
                       
    Gross client inflows     0.4       0.2       100.0 %
    Gross client outflows     (0.4 )     (0.2 )     100.0 %
    Net client flows                 0.0 %
                       
    Market appreciation     0.7       0.7       0.0 %
    Ending assets under management   $ 13.2     $ 11.4       15.8 %
        Twelve Months Ended
    December 31,
        % Change from December 31,  
        2024     2023     2023  
    Beginning assets under management   $ 11.4     $ 8.0       42.5 %
                       
    Gross client inflows     1.2       2.4       -50.0 %
    Gross client outflows     (1.1 )     (0.7 )     57.1 %
    Net client flows     0.1       1.7       -94.1 %
                       
    Market appreciation     1.7       1.7       0.0 %
    Ending assets under management   $ 13.2     $ 11.4       15.8 %
     
    Exhibit 9
    Silvercrest Asset Management Group Inc.
    Assets Under Management
    (Unaudited and in billions)
     
        Three Months Ended
    December 31,
     
        2024     2023  
    Total AUM as of September 30,   $ 35.088     $ 31.187  
    Discretionary AUM:            
    Total Discretionary AUM as of September 30,   $ 22.639     $ 20.462  
    New client accounts/assets (1)     1.370       0.188  
    Closed accounts (2)     (0.011 )     (0.103 )
    Net cash inflow/(outflow) (3)     (0.458 )     (0.479 )
    Non-discretionary to Discretionary AUM (4)     (0.012 )     (0.002 )
    Market appreciation     (0.209 )     1.819  
    Change to Discretionary AUM     0.680       1.423  
    Total Discretionary AUM at December 31,     23.319       21.885  
    Change to Non-Discretionary AUM (5)     0.687       0.671  
    Total AUM as of December 31,   $ 36.455     $ 33.281  
       
    Twelve Months Ended

    December 31,
     
        2024     2023  
    Total AUM as of January 1,   $ 33.281     $ 28.905  
    Discretionary AUM:            
    Total Discretionary AUM as of January 1,   $ 21.885     $ 20.851  
    New client accounts/assets (1)     1.549       0.339  
    Closed accounts (2)     (0.527 )     (0.202 )
    Net cash inflow/(outflow) (3)     (1.714 )     (1.272 )
    Non-discretionary to Discretionary AUM (4)     (0.018 )     (0.032 )
    Market (depreciation)/appreciation     2.144       2.201  
    Change to Discretionary AUM     1.434       1.034  
    Total Discretionary AUM at December 31,     23.319       21.885  
    Change to Non-Discretionary AUM (5)     1.740       3.342  
    Total AUM as of December 31,   $ 36.455     $ 33.281  
    (1) Represents new account flows from both new and existing client relationships.
    (2) Represents closed accounts of existing client relationships and those that terminated.
    (3) Represents periodic cash flows related to existing accounts.
    (4) Represents client assets that converted to Discretionary AUM from Non-Discretionary AUM.
    (5) Represents the net change to Non-Discretionary AUM.
     
    Exhibit 10
    Silvercrest Asset Management Group Inc.
    Equity Investment Strategy Composite Performance1, 2
    As of December 31, 2024
    (Unaudited)
     
    PROPRIETARY EQUITY PERFORMANCE 1, 2   ANNUALIZED PERFORMANCE  
        INCEPTION   1-YEAR     3-YEAR     5-YEAR     7-YEAR     INCEPTION  
    Large Cap Value Composite   4/1/02     16.3       5.1       10.8       10.6       9.7  
    Russell 1000 Value Index         14.4       5.6       8.7       8.4       7.9  
                                       
    Small Cap Value Composite   4/1/02     10.1       4.3       8.8       7.1       10.3  
    Russell 2000 Value Index         8.1       1.9       7.3       6.1       7.9  
                                       
    Smid Cap Value Composite   10/1/05     15.7       2.6       7.6       7.0       9.5  
    Russell 2500 Value Index         11.0       3.8       8.4       7.2       7.8  
                                       
    Multi Cap Value Composite   7/1/02     16.1       2.6       9.2       8.5       9.7  
    Russell 3000 Value Index         14.0       5.4       8.6       8.3       8.4  
                                       
    Equity Income Composite   12/1/03     10.4       3.1       6.7       7.4       10.8  
    Russell 3000 Value Index         14.0       5.4       8.6       8.3       8.5  
                                       
    Focused Value Composite   9/1/04     16.7       (0.2 )     5.6       5.4       9.4  
    Russell 3000 Value Index         14.0       5.4       8.6       8.3       8.3  
                                       
    Small Cap Opportunity Composite   7/1/04     14.9       4.5       10.3       10.1       11.0  
    Russell 2000 Index         11.5       1.2       7.4       6.9       8.1  
                                       
    Small Cap Growth Composite   7/1/04     13.6       (2.9 )     11.1       11.8       10.6  
    Russell 2000 Growth Index         15.2       0.2       6.9       7.2       8.5  
                                       
    Smid Cap Growth Composite   1/1/06     20.9       (3.2 )     12.6       14.2       11.1  
    Russell 2500 Growth Index         13.9       0.0       8.1       8.8       9.5  
    1 Returns are based upon a time weighted rate of return of various fully discretionary equity portfolios with similar investment objectives, strategies and policies and other relevant criteria managed by Silvercrest Asset Management Group LLC (“SAMG LLC”), a subsidiary of Silvercrest. Performance results are gross of fees and net of commission charges. An investor’s actual return will be reduced by the advisory fees and any other expenses it may incur in the management of the investment advisory account. SAMG LLC’s standard advisory fees are described in Part 2 of its Form ADV. Actual fees and expenses will vary depending on a variety of factors, including the size of a particular account. Returns greater than one year are shown as annualized compounded returns and include gains and accrued income and reinvestment of distributions. Past performance is no guarantee of future results. This piece contains no recommendations to buy or sell securities or a solicitation of an offer to buy or sell securities or investment services or adopt any investment position. This piece is not intended to constitute investment advice and is based upon conditions in place during the period noted. Market and economic views are subject to change without notice and may be untimely when presented here. Readers are advised not to infer or assume that any securities, sectors or markets described were or will be profitable. SAMG LLC is an independent investment advisory and financial services firm created to meet the investment and administrative needs of individuals with substantial assets and select institutional investors. SAMG LLC claims compliance with the Global Investment Performance Standards (GIPS®).
    2 The market indices used to compare to the performance of Silvercrest’s strategies are as follows:
      The Russell 1000 Index is a capitalization-weighted, unmanaged index that measures the 1000 largest companies in the Russell 3000. The Russell 1000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
      The Russell 2000 Index is a capitalization-weighted, unmanaged index that measures the 2000 smallest companies in the Russell 3000. The Russell 2000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
      The Russell 2500 Index is a capitalization-weighted, unmanaged index that measures the 2500 smallest companies in the Russell 3000. The Russell 2500 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
      The Russell 3000 Value Index is a capitalization-weighted, unmanaged index that measures those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth.

    The MIL Network

  • MIL-OSI Submissions: Global Bodies – IPU report: Parliamentary gender gap narrowed over the past 30 years but progress stalled in 2024

    Source: Inter-Parliamentary Union

    Geneva, Switzerland, Thursday 6 March 2025 – A new IPU report analysing three decades of women in national parliaments reveals that the percentage of seats held by women has risen from 11.3% in 1995 to 27.2% in 2025.

    The IPU report Women in parliament 1995-2025 commemorates 30 years since the 1995 Beijing Declaration and Platform for Action, the landmark UN framework which set out a roadmap for gender equality and women’s rights. (ref. https://www.ipu.org/resources/publications/reports/2025-03/women-in-parliament-1995-2025 )

    The report shows that, from 2000 to 2015, the proportion of women in parliament rose steadily. However, in recent years, this progress has slowed.

    And in 2024, despite a high number of elections with 73 chamber renewals globally, women’s parliamentary representation increased by only 0.3 percentage points, marking the slowest rate of progress since 2017.

    Parity achieved in six countries

    In 1995, no parliament had achieved gender parity.

    In 2025, six parliaments have parity or more women than men in their single or lower chambers (Rwanda, Cuba, Nicaragua, Mexico, Andorra and the United Arab Emirates).

    Regional differences

    The Americas have seen the most significant increase in women’s parliamentary participation, with a 22.7 percentage point gain across all chambers combined over 30 years. The region now has the highest average, with 35.4% of seats held by women.

    From leading the world 30 years ago for gender equality in parliament, Asia now lags behind; the region recorded the slowest growth with a gain of just 8.9 points since 1995.

    2024 elections: More diversity and prominence for gender issues

    Despite the current pushback against diversity in the United States, the November 2024 elections saw two Black women elected to the Senate for the first time and the first openly transgender person to be elected to Congress.

    The United Kingdom Parliament elected in 2024 is also the most ethnically diverse in the country’s history with Black, Asian and ethnic minorities, both men and women, comprising around 13% of the House of Commons.

    The report notes that gender issues, particularly abortion rights and issues of gender identity, had a polarizing effect on many of the elections last year, in some cases spurring an anti-feminist backlash and in others serving to mobilize female voters.

    Violence against women in politics

    The report also points to political violence against women in 2024 elections:

    Mexico’s 2024 election was one of its most violent, with an estimated 130 candidates, including 30 women, allegedly attacked, according to Data Cívica.

    In the Republic of Korea, a woman MP was physically attacked during the election campaign.

    In the United Kingdom, the 2024 election saw an “alarming rise” in candidate abuse according to a report by the country’s Electoral Commission, disproportionately affecting women.

    However, some countries, with IPU support, have taken noteworthy steps to address gender-based violence in elections and parliaments, including Australia and the United Republic of Tanzania.

    Proactive steps towards gender parity

    Countries which have taken steps towards ensuring greater gender balance have seen the most laudable progress.

    These steps include implementing well-designed quotas, making parliaments more gender-sensitive and addressing violence against women.

    The report underlines that two factors have made a significant difference in the share of women elected to parliaments: electoral systems – especially proportional representation or mixed systems – and gender quotas in any form.

    In countries with gender quotas in place, the proportion of women elected or appointed was 31.2% in 2024 compared to 16.8% in countries without.

    Quotes

    IPU President, Tulia Ackson: “True progress in women’s political representation requires political will, intentional steps and a long-term commitment. At a time when women’s rights are on the backfoot in some regions of the world, women’s leadership is more important than ever.”

    President of the IPU Forum of Women Parliamentarians, Cynthia López Castro: “The journey from 11% to 27% women in parliaments over 30 years shows us that change is possible, but also that our work is far from done as we aim for gender parity. We need to encourage the next generation to come forward and continue the fight.”

    IPU Secretary General, Martin Chungong: “IPU analysis shows that the gender glass ceiling in parliaments has cracked but is far from shattered. There has been progress but the backlash against women’s rights in some countries is extremely worrying. It will take both women and men to overcome these challenges and accelerate progress towards gender parity.”

    The IPU is the global organization of national parliaments. It was founded in 1889 as the first multilateral political organization in the world, encouraging cooperation and dialogue between all nations. Today, the IPU comprises 181 national Member Parliaments and 15 regional parliamentary bodies. It promotes peace, democracy and sustainable development. It helps parliaments become stronger, younger, greener, more innovative and gender-balanced. It also defends the human rights of parliamentarians through a dedicated committee made up of MPs from around the world.

    MIL OSI – Submitted News

  • MIL-OSI Europe: MOTION FOR A RESOLUTION on the white paper on the future of European defence – B10-0146/2025

    Source: European Parliament

    Rasa Juknevičienė, Nicolás Pascual de la Parte, Riho Terras, Michael Gahler, David McAllister, Sebastião Bugalho, Andrzej Halicki
    on behalf of the PPE Group

    B10‑0146/2025

    European Parliament resolution on the white paper on the future of European defence

    (2025/2565(RSP))

    The European Parliament,

     having regard to the Treaty on the Functioning of the European Union (TFEU),

     having regard to Title V of the Treaty on European Union (TEU), in particular Chapter Two, Section Two thereof on provisions on the common security and defence policy (CSDP),

     having regard to the Versailles Declaration adopted on 11 March 2022 at the informal meeting of Heads of State or Government,

     having regard to the Strategic Compass for Security and Defence – For a European Union that protects its citizens, values and interests and contributes to international peace and security, which was approved by the Council on 21 March 2022 and endorsed by the European Council on 24 March 2022,

     having regard to the national security strategies of the Member States,

     having regard to the Civilian CSDP Compact – Towards more effective civilian missions, approved by the Council on 22 May 2023,

     having regard to Council Decision (CFSP) 2022/1968 of 17 October 2022 on a European Union Military Assistance Mission in support of Ukraine (EUMAM Ukraine)[1],

     having regard to Council Decision (CFSP) 2024/890 of 18 March 2024 amending Decision (CFSP) 2021/509 establishing a European Peace Facility[2],

     having regard to Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union[3],

     having regard to Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 2021 establishing the European Defence Fund and repealing Regulation (EU) 2018/1092[4],

     having regard to Regulation (EU) 2023/1525 of the European Parliament and of the Council of 20 July 2023 on supporting ammunition production (ASAP)[5],

     having regard to Regulation (EU) 2023/2418 of the European Parliament and of the Council of 18 October 2023 on establishing an instrument for the reinforcement of the European defence industry through common procurement (EDIRPA)[6],

     having regard to Regulation (EU) 2024/1252 of the European Parliament and of the Council of 11 April 2024 establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1724 and (EU) 2019/1020[7],

     having regard to the Commission proposal of 18 April 2023 for a regulation of the European Parliament and of the Council laying down measures to strengthen solidarity and capacities in the Union to detect, prepare for and respond to cybersecurity threats and incidents (COM(2023)0209),

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 21 February 2025 on an EU Action Plan on Cable Security (JOIN(2025)0009),

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 10 March 2023 on a European Union Space Strategy for Security and Defence (JOIN(2023)0009),

     having regard to Commission Recommendation (EU) 2023/2113 of 3 October 2023 on critical technology areas for the EU’s economic security for further risk assessment with Member States[8],

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 10 November 2022 entitled ‘Action plan on military mobility 2.0’ (JOIN(2022)0048),

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 18 May 2022 on the Defence Investment Gaps Analysis and Way Forward (JOIN(2022)0024),

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 10 March 2023 on the update of the EU Maritime Security Strategy and its Action Plan entitled ‘An enhanced EU Maritime Security Strategy for evolving maritime threats’ (JOIN(2023)0008),

     having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 5 March 2024 entitled ‘A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry’ (JOIN(2024)0010),

     having regard to the report by the High Representative of the Union for Foreign Affairs and Security Policy of 20 June 2024 entitled ‘Common Foreign and Security Policy Report – Our priorities in 2024’,

     having regard to the political guidelines for the next European Commission 2024-2029 by Ursula von der Leyen entitled ‘Europe’s choice’, published on 18 July 2024,

     having regard to the report by Enrico Letta entitled ‘Much more than a market’, published in April 2024, and in particular the section thereof entitled ‘Promoting peace and enhancing security: towards a Common Market for the defence industry’,

     having regard to the report by Mario Draghi of 9 September 2024 on the future of European competitiveness and in particular Chapter Four thereof on increasing security and reducing dependencies,

     having regard to the report by Sauli Niinistö of 30 October 2024 entitled ‘Safer Together: Strengthening Europe’s Civilian and Military Preparedness and Readiness’,

     having regard to the North Atlantic Treaty of 1949,

     having regard to the Madrid Summit Declaration adopted by NATO heads of state and government at the North Atlantic Council meeting in Madrid on 29 June 2022,

     having regard to the NATO 2022 Strategic Concept and to the NATO Vilnius Summit Communiqué issued by NATO heads of state and government at the North Atlantic Council meeting in Vilnius on 11 July 2023,

     having regard to the joint declarations on EU-NATO cooperation signed on 8 July 2016, 10 July 2018 and 10 January 2023,

     having regard to the ninth progress report on the implementation of the common set of proposals endorsed by EU and NATO Councils on 6 December 2016 and 5 December 2017, submitted jointly by the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy and the NATO Secretary General to the Council of the EU and the NATO Council on 13 June 2024,

     having regard to the Washington Summit Declaration issued by the NATO heads of state and government participating in the North Atlantic Council meeting in Washington on 10 July 2024,

     having regard to Ukraine’s victory plan presented by the President of Ukraine, Volodymyr Zelenskyy, to the European Council on 17 October 2024,

     having regard to the speeches and statements made at the Munich Security Conference on 14-16 February 2025,

     having regard to the statements made at the Leaders Meeting on Ukraine, held in London on 2 March 2025,

     having regard to the temporary halt of all United States military aid to Ukraine,

     having regard to the statement by the President of the Commission of 4 March 2025 on the defence package, the ReArm Europe Plan,

     having regard to Rule 55 of its Rules of Procedure,

    A. whereas the security situation in Europe has seen an unprecedented deterioration over the past years; whereas there is a common understanding that Europe needs to be able to effectively address European security challenges and achieve a state of defence readiness;

    B. whereas Russia’s war of aggression against Ukraine has been a watershed moment in European history; whereas Putin’s war of aggression against Ukraine is widely recognised as an attack on the European peace order established after the Second World War and on the global order as a whole;

    C. whereas despite previous signs and warnings, many countries have not taken the necessary defence measures; whereas the goal of committing 2 % of gross domestic product (GDP) to defence spending agreed by NATO members in 2014 is still not being met by all NATO members in the EU; whereas the gap between the 2 % goal and the actual defence spending by EU Member States amounts to EUR 1 770 billion over the 2006-2022 period[9]; whereas in 2024, 16 EU Member States that are also NATO allies were expected to exceed NATO’s 2 % defence investment guideline, compared to only nine in 2023;

    D. whereas as a result of these investment gaps, numerous reports, notably the Defence Investment Gaps Analysis of May 2022, have analysed a worrying capability gap in European defence;

    E. whereas the Draghi report highlighted a funding need of EUR 500 billion in European defence for the next decade and highlights a combination of structural weaknesses affecting the competitiveness of the EU’s defence technological and industrial base (EDTIB), and identifies fragmentation, insufficient public defence investment and limited access to financing as obstacles to a capable EDTIB; whereas the lending policy of the European Investment Bank (EIB) excludes the financing of ammunition and weapons, as well as equipment or infrastructure exclusively dedicated to military and police use;

    F. whereas the Niinistö report underlines the fact that the EU and its Member States are not yet fully prepared for the most severe cross-sectoral or multidimensional crisis scenarios, especially given the further deteriorating environment outside of the EU; whereas it insists that this preparedness is necessary for the EU and its Member States to signal to potential adversaries that they will not be able to outlast the EU; whereas it deplores the fact that the EU lacks a common plan in the event of armed aggression and underlines that the EU needs to rethink the way it defines its security;

    G. whereas Russia’s continued armament efforts and its cooperation with other authoritarian powers on armaments, vastly surpassing European stocks and production capacities, pose the most serious and unprecedented threat to world peace as well as to the security and territory of the EU and its Member States; whereas the Russian regime is strengthening its ties in particular with the autocratic leaderships of China, Iran and North Korea in order to achieve its objectives;

    H. whereas the EU is also facing the most diverse and complex range of non-military threats since its creation, exacerbated by Russia’s war of aggression against Ukraine, including foreign information manipulation and interference, cyberattacks, attacks against underwater infrastructure, economic pressures, food and energy blackmailing, instrumentalisation of migration and subversive political influence; whereas the EU should take these kind of threats seriously in its defence and security policies;

    I. whereas the recent actions and statements by the US administration have further increased concerns about the future stance of the US vis-à-vis Russia, NATO and the security of Europe;

    J. whereas the EU’s security environment has deteriorated not only in eastern Europe, but also in countries in the EU’s southern neighbourhood partnership and beyond;

    K. whereas the disastrous impact of past or ongoing wars, instability, insecurity, poverty and climate change in the Sahel region, north-eastern Africa and Libya poses serious risks to the EU’s security and its economic and trade interests; whereas the instability and insecurity in the southern neighbourhood and the Sahel region are closely interlinked with and remain an ongoing challenge for EU external border management and mitigation of illegal migration;

    L. whereas European security is linked to stability on the African continent, and the growing presence of non-European actors is testament to the lack of sufficient security and diplomatic engagement in the region to effectively counter the challenges and protect its strategic interests;

    M. whereas the Black Sea has shifted from a secondary to a primary military theatre for the EU and NATO, and, alongside the Baltic Sea, has become a pivotal strategic region for European security in countering the Russian threat;

    N. whereas the Arctic region is becoming increasingly important in terms of economic development and transport, while at the same time facing challenges linked to climate change and militarisation, as well as those resulting from increasing geopolitical competition and migration;

    O. whereas China, driven by the ambition to become a global superpower, is eroding the rules-based international order by increasingly pursuing assertive foreign and hostile economic and competition policies and exporting dual-use goods deployed by Russia on the battlefield against Ukraine, thereby threatening European security and interests; whereas China is also investing tremendously in its armed forces, using its economic power to quash criticism worldwide, and is striving to assert itself as the dominant power in the Indo-Pacific region; whereas China, by intensifying its confrontational, aggressive and intimidating actions against some of its neighbours, particularly in the Taiwan Strait and the South China Sea, poses a risk to regional and global security as well as to the EU’s economic interests; whereas China has promoted an alternative narrative for many years, challenging human rights, democratic values and open markets in multilateral and international forums; whereas China’s increasing influence in international organisations has impeded positive progress and further excluded Taiwan from rightful and meaningful participation in these organisations;

    P. whereas in 2023, Parliament and the Council concluded agreements on the European defence industry reinforcement through common procurement act (EDIRPA) and the Act in Support of Ammunition Production (ASAP), which, as short-term and emergency measures, aim to encourage the joint procurement of defence products, ramp up the European defence industry’s production capacity, and replenish depleted stocks;

    Q. whereas in 2024, the Commission proposed the establishment of a European defence industrial strategy (EDIS) and a European defence industry programme (EDIP), addressing, in particular, the improvement of EU defence capabilities and the governance, security of supply and integration of the Ukrainian defence technological and industrial base (DTIB) into its EU counterpart, the EDTIB;

    R. whereas building defence capabilities and adapting them to military needs requires a common strategic culture and shared threat perception and assessment, as well as the development of solutions to be combined in doctrine and concepts;

    S. whereas in the light of the above challenges and analyses, the President of the European Commission tasked the Commissioner for Defence and Space and the High Representative of the Union for Foreign Affairs and Security Policy with drafting a white paper on the future of European defence, which is due to be published on 19 March 2025;

    1. Believes that the white paper on the future of European defence must put forward concrete measures and options to the members of the European Council so that truly groundbreaking and much needed efforts can be made, in the shortest possible time frames, which must address the following pressing needs: to urgently and substantially increase defence capabilities, overcome fragmentation in the European defence industry market, enhance the capacity of the EDTIB, promptly identify and implement pragmatic solutions for the considerable funding needs, deepen EU-NATO cooperation through a robust European pillar in NATO, and ensure an increase in our military support to Ukraine and other neighbouring countries that share our European values;

    2. Calls on Council President António Costa to immediately convene the European Council, based on the conclusions of the white paper, so that EU leaders can agree on immediate and far-reaching decisions to implement the European Defence Union as laid out in Article 42(2) TEU and elaborate on the measures identified in the white paper; urges both the Council and the Commission to identify clear and concrete priorities for the short, medium and long term, with a corresponding timeline of actions;

    3. Reiterates its previous calls to take seriously the direct and indirect threat of a Russian attack against the EU and to prepare urgently, without any further delay, to do the utmost to improve European military capacities in order to ensure that Europe is ready for the most extreme military contingencies; calls therefore for the threat analysis of the EU’s Strategic Compass to be updated and upgraded to a threat assessment and for the measures within the compass to be adapted accordingly, in order to reflect the threat magnitude in our threat environment;

    4. Strongly believes that Europeans must take on greater responsibility within NATO, especially when it comes to ensuring security on the European continent, and hence underlines that a strong and robust European pillar in NATO is the best way to foster our transatlantic security and ensure the security of all Europeans; recalls that a true transatlantic partnership means shared responsibility, joint efforts and equal burden-sharing;

    5. Stresses the importance of learning from Ukraine’s experience in countering Russian aggression and calls for immediate measures to enhance the security and defence of the EU’s north-eastern border with Russia and Belarus by establishing a comprehensive and resilient defence line across land, air and maritime domains to counter military and hybrid threats; emphasises the need to coordinate and integrate national efforts through EU regulatory and financial instruments to accelerate implementation;

    6. Stresses that Europe continues to stand firmly on the side of Ukraine as it courageously fights for our European way of life, and recalls its conviction that it is on the Ukrainian battlefields that the future of Europe will be decided; reiterates thus that the EU will support Ukraine for as long as it takes for Ukraine to win this war, as a forced surrender by Ukraine and acceptance of a ‘peace’ treaty on Putin’s terms could accelerate the timeline for Russia to shift its aggression toward the EU or NATO; urges the EU, accordingly, to develop a ‘Ukraine strategy’, outlining clear objectives for the support of Ukraine’s defence capabilities and the integration of the Ukrainian DTIB into the EDTIB, and to find the necessary resources to implement such a strategy, while supporting European defence industry activities in Ukraine in order to ramp up local production and enhance cooperation between Ukrainian and EU defence companies; underscores that such a Ukraine strategy must be an integral part of a ‘European defence’ strategy; calls on the EU Member States to commit at least 0.25 % of their GDP to military aid for Ukraine;

    7. Emphasises the need for a holistic approach to European security, ensuring that all EU policies incorporate defence and security dimensions, supported by both regulatory and financial instruments;

    8. Believes that the EU should develop economic cooperation contingency plans to prepare for mutual support in the event of large-scale security crises, and should deepen economic and defence industrial dialogues in relation to early warnings of hard, hybrid and cyberthreats, in order to foster mutual support planning, protection of critical infrastructure, maritime and underwater safety, and other forms of deeper defence industrial cooperation; calls, in cooperation with NATO, for an enhanced response to Russia’s hybrid war that aims at destabilising not only Ukraine but the whole European continent;

    Addressing capability gaps

    9. Underlines the need to urgently address the gaps in military equipment and ammunition by building on the success of the EDIRPA and ASAP programmes and to swiftly finalise EDIP so that, through common procurement, our common European and Ukrainian capabilities are increased and our stocks of crucial defence equipment and ammunition are replenished; welcomes EDIP’s potential to improve the defence capabilities of the EU and its Member States, to strengthen security of supply and to improve the effectiveness and coherence of EU efforts through new governance structures; stresses that EDIP’s financial envelope will fall well short of meeting the ambitions laid out in EDIP and calls, therefore, for additional funding sources to be identified immediately and to include exploring the possibility of reallocations within the current multiannual financial framework (MFF), notably with regard to European defence projects of common interest and to the Ukraine support instrument that currently lacks any funding; stresses, with regard to the threat assessment of a possible Russian attack on EU and NATO territory within the next few years, the urgent need for EDIP to be implemented swiftly and for additional and substantial funding to be provided for joint European defence efforts before the next MFF;

    10. Calls for the need for a significant increase in availability of strategic enablers in the air, maritime, underwater, space and cyber domains to be addressed without delay;

    11. Suggests that successful Permanent Structured Cooperation (PESCO) and European Defence Fund (EDF) projects be prioritised along the lines of known capability gaps and that sufficient funding be ensured for projects that have proven to deliver; calls for the closure of PESCO projects that do not deliver results and/or do not provide added value in the closing of capability gaps and/or European defence readiness; stresses, in the light of the limited financial envelope of the EDF, that duplicated efforts, especially in crucial capability areas such as the hypersonic interceptor or future main battle tank systems, waste EU tax payers’ money, will prolong development efforts and thus increase the probability of procurement of such capabilities from the US, thus undermining the ambition laid out in EDIS;

    12. Calls for the architecture of the EU Defence Industrial Toolbox to be rationalised, as more financial resources alone will not ensure success, since it is even more important that these resources are spent in a more efficient and effective manner;

    13. Underlines the need to ensure coherence of output between the EU’s Capability Development Plan (CDP) and Coordinated Annual Review on Defence and the NATO capability targets, without delay, to foster complementarity and to prevent dysfunctional duplications; calls for a concrete action plan to be drawn up, including a clear timeline for each priority in line with both the CDP and the NATO Defence Planning Process;

    14. Welcomes the proposal for European defence projects of common interest on the development of common capabilities which go beyond the financial means of an individual Member State, such as a European air shield, autonomous space access and space surveillance, transport and communication capabilities, sovereign digital infrastructures, sovereign cloud infrastructure, long-range precision strike capabilities and integrated air defence, as well as complex maritime and underwater protective assets; stresses that the EU’s efforts in missile defence need to be aligned and integrated with NATO support for the European Sky Shield Initiative, driven by EU Member States; stresses the need to ensure adequate funding, to be established well before 2028, in order to deliver results with regard to the threat analyses of a possible Russian attack against EU and NATO territory within the next few years;

    15. Calls for the establishment of EU-specific rapid response strategies for underwater infrastructure protection operating in alignment with NATO while maintaining EU autonomy; encourages investment in advanced detection and surveillance systems for underwater infrastructure monitoring;

    16. Calls for the EU to further accelerate the implementation of military mobility; believes that the EU has to move from ‘mobility’ to ‘military logistics’; stresses the need for significant investment in military mobility infrastructure to enhance cargo airlift capabilities, camps, fuel infrastructure through depots, ports, air, sea and rail transport platforms, railway lines, waterways, roads, bridges and logistic hubs; stresses that this must be done in cooperation with NATO by drafting a strategic plan for developing mobility;

    17. Underlines the need to quickly agree on additional common European military forces, given that the Rapid Deployment Capacity (RDC) designed as a crisis management instrument provides only a limited European capability to react and support NATO efforts in the event of Russian aggression against EU and NATO territory; recommends, therefore, that the Helsinki Headline Goal of 1999 be revived and that the RDC be gradually extended to ultimately establish a European corps of 60 000 troops, which should be part of a permanent EU structure while being integrated into NATO’s force model;

    18. Recommends the establishment of a security of supply regime, including joint strategic stocks of raw materials and critical parts, to ensure the availability of raw materials and components needed for the production of defence products, and to allow production cycles to be ramped up faster and shortened;

    Fostering the EU’s defence technological and industrial base (EDTIB)

    19. Calls for a significant increase in common procurement by EU Member States of required European defence equipment and capabilities; calls on the Member States to aggregate demand by procuring defence equipment jointly, with the possibility of granting the Commission a mandate to procure on their behalf, ideally ensuring a long-term planning horizon for the EDTIB, thus improving the EDTIB’s production capacities and the interoperability of the European armed forces, and making efficient use of taxpayers’ money through economies of scale;

    20. Underlines the outstanding success of the EU’s first joint procurement instrument, EDIRPA, by incentivising joint procurement by Member States; believes that there is a need to continue mechanisms similar to EDIRPA and ASAP while increasing the share of funding for joint procurements compared to support measures for research and development;

    21. Believes that the development of the EU’s joint capability should be based on risk analysis provided in threat assessments and on the impact of projects on mitigating the EU’s joint security risks;

    22. Believes that it is necessary to conduct systematic analyses of lessons learned from the war in Ukraine from a technology usage perspective, and analyses of the necessity of EU and NATO standards in comparison to how they affect the cost of technology and products compared to their usage effectiveness;

    23. Stresses that EDIP must actively facilitate the participation of small and medium-sized enterprises and new market entrants through simplified access to funding, reduced regulatory barriers, and dedicated support mechanisms for scaling up operations; emphasises that EDIP should be designed as a stepping stone towards greater European sovereignty in defence production;

    24. Highlights the need to support the development of pan-European value chains in EU defence cooperation by involving companies throughout the EU in the production of defence equipment and by distributing production facilities throughout the EU in order to improve security of supply, increase attractiveness of EU defence cooperation and, above all, enhance the resilience of the supply network, thus reducing our vulnerability in the event of an armed attack;

    25. Calls for the review and adaptation of current and future legislation with regard to negative effects on the EDTIB, especially concerning production capacities and security of supply; calls for an extended mapping, in cooperation with the EDTIB, to identify all horizontal hindrances in the current legislation; calls for a detailed action plan to be developed to resolve the issues as soon as possible; underlines the need to review, simplify and harmonise the current framework for export licences and intra-EU transfer licences, as well as for cross-certification of equipment, as one of the priorities to foster better cooperation within the market and among Member States;

    26. Strongly underlines the need to significantly increase our investment in emerging and disruptive technologies and structures in defence, taking care not to disperse our resources across too many projects, including cyber defence, outer space, complex underwater protective assets, novel materials and manufacturing, artificial intelligence, quantum computing, cloud computing and sovereign cloud infrastructure, high-performance computing, the internet of things, robotics, biotechnology and nanotechnology;

    27. Calls on the Commission to leverage the full dual-use potential of space technologies, considering space as both a new operating domain and a critical enabler of multi-domain operations; underlines that the EU currently has a substantial gap in space capabilities compared to its main competitors and stresses that, in order to address this gap in space technologies, already existing flagship projects (i.e. Copernicus and Galileo) should be enhanced for defence applications; suggests, furthermore, that the EU should urgently pursue the development of its IRIS2 constellation, together with the development of further EU common projects, for example, for space domain awareness and space-based missile early-warning applications;

    28. Recalls the increasing threats of cyber warfare and underlines the need for the EU to establish an EU cyber defence coordination centre to monitor, detect and respond to cyberthreats in real time;

    29. Highlights the importance of the involvement of other industrial actors that do not undertake defence-related activities as potential partners in scaling up production when necessary;

    30. Calls for the EU to foster stronger collaboration between our armed forces, academia, industries and investors;

    Ensuring pragmatic sources of finance

    31. Calls on the Commission to bring forward a legislative proposal containing a binding commitment for Member States to reach a minimum threshold of 3 % of their GDP on defence expenditure by 2026, with the need to further increase it to 4 % by 2028 and to commit at least 0.5 % of their GDP to EU common defence; stresses that, in the light of three decades of underinvestment, the current threat to the EU requires much higher defence investment, while underlining that the EU budget can only complement but can never replace the efforts of the Member States in that regard; emphasises that national defence investment by Member States will continue to serve as the backbone of defence readiness, while EU funding and its role in harmonising and streamlining the processes may have an important impact in enhancing and multiplying these efforts; calls for the EU and its Member States to work and agree on specific ways and means to achieve a short- to long-term substantial increase in public and private investment in defence and security on the national and European levels;

    32. Welcomes the Commission’s announcement on the ReArm Europe Plan;

    33. Welcomes the Commission’s proposal to activate the national escape clause of the Stability and Growth Pact;

    34. Welcomes the Commission’s proposal for a new instrument providing EUR 150 billion in loans to Member States for joint defence investment;

    35. Welcomes the Commission’s announcement of its plans to direct more funds towards defence-related investment, including making it possible for cohesion policy programmes to be used;

    36. Calls for a system of European defence bonds to be explored for financing large-scale military investments up front, ensuring urgent capability development; calls for clear allocation criteria prioritising joint capability development, research and innovation, and military mobility infrastructure; calls, along the same lines, for the use of unused ‘coronabonds’ for defence instruments to be explored;

    37. Underlines the role of public-private partnerships which are essential to finance defence investment; proposes, therefore, a dedicated EU instrument incentivising private investment in defence following the example of InvestEU;

    38. Welcomes the Commission’s announcement of its plans to take action to mobilise private capital through an acceleration of the Savings and Investment Union and through the EIB; calls for an urgent revision of the EIB’s lending policy and immediate flexibility to remove current restrictions on financing ammunition, weapons and equipment or infrastructure dedicated to military use; stresses that this fundamental reform is necessary to unlock significant investment potential for the European defence sector, and to foster risk-sharing instruments to facilitate commercial bank lending to the sector; urges the EIB to take the necessary steps to facilitate private investment in defence, ensuring that the financial landscape supports the growing needs of the industry;

    39. Demands a review of past and new legislation and taxonomy to ensure that they are best suited to advance our European defence industry;

    40. Believes that environmental, social and governance criteria and taxonomy rules and their interpretation by rating agencies are an obstacle to ensuring increased public finance for defence and hence calls on the Commission to address this issue by, among other things, adapting the regulation on sustainability‐related disclosures in the financial services sector[10] with a view to explicitly ruling out a classification of the defence industry as sustainably or socially harmful;

    Supporting innovation

    41. Calls for the establishment of an EU agency, inspired by the US’s Defense Advanced Research Projects Agency, as part of the European Defence Agency, which should be solely responsible for supporting research in emerging and disruptive technologies, equipped with an adequate amount of venture capital; emphasises the need for expanded research and development funding to ensure participation by all Member States through the creation of specialised ‘hubs’;

    42. Believes in the need to increase the funding for academic research programmes to cooperate with the defence industry to ensure long-term in-depth research in defence;

    Finalising the common market for defence

    43. Urges Member States to stop invoking Article 346 TFEU as a means of avoiding the application of the Procurement Directive[11], thus undermining the common market for defence; calls on the Commission to close this loophole by immediately launching a review of this directive, as well as of the Intra-Community Transfer Directive[12], which is scheduled for the second half of 2025, and to recast both regulations as soon as possible with a view to strengthening the common market for defence, as well as to introducing flexibility with regard to crisis situations like those we are currently facing;

    44. Calls for the transformation of NATO standards into EU legislation in order to facilitate the interoperability of European armed forces while strengthening our capacity to negotiate these standards within NATO and to enforce the consistent implementation of these standard in practice;

    45. Presses for a common European certification scheme for weapons systems and a move beyond the current system of national certification in order to speed up the introduction of weapons systems into the armed forces of Member States;

    Fostering effective governance

    46. Deplores the lack of cohesion and effectiveness of EU defence structures and instruments resulting from the loose institutional connection between the Council and the Commission, which not only significantly limits the added value and the effectiveness of cooperation in the EU framework but also results in the ineffective use of taxpayers’ money;

    47. Calls for the creation of a permanent Council of EU defence ministers;

    48. Suggests that the Commissioner for Defence and Space should become the head of the European Defence Agency and should also be nominated as the coordinator for PESCO projects by recasting the respective Council decisions;

    49. Encourages the creation of a ‘defence readiness board’ as proposed in EDIP, led by the Defence Commissioner, which should meet frequently in different configurations, for example, EU defence ministers, national procurement directors and industry representatives;

    50. Believes that the Defence Commissioner should exercise supervision over the EU Military Committee, the EU Military Staff and military operations;

    51. Suggests that the funding for PESCO and the European Defence Agency be transferred into the common EU budget;

    52. Highlights the need for enhanced and effective parliamentary scrutiny in the area of defence, given its importance and the effects on other areas of increasing investment in defence; calls, therefore, for the establishment of an interinstitutional agreement ensuring Parliament’s access to classified information and the provision of physical infrastructure to that end, allowing for committee meetings to be conducted under the classification of EU restricted, or an even higher security classification;

    Fostering EU-NATO complementarity

    53. Calls for a true strategic partnership between the EU and NATO, in full respect of the agreed guiding principles of cooperation, as well as the decision-making autonomy of both organisations, and underlines that only together can we ensure our security and long-term prosperity;

    54. Underlines the need for an agreement on the exchange of classified information between the EU and NATO;

    55. Calls for the establishment of a regular joint armament conference between the EU and NATO in order to coordinate and align efforts with regard to capability development;

    56. Recalls the need to ensure frequent EU-NATO meetings and summits on political and experts levels, in an inclusive, non-discriminatory and reciprocal manner;

    57. Calls for the EU to reinforce the Structured Dialogue with NATO on the defence industry in order to enhance cooperation in key areas such as interoperability and standardisation;

    Fostering cooperation with non-EU partners

    58. Recalls that there is no alternative to strong and sustainable transatlantic cooperation and thus believes that every effort must be made to foster transatlantic cooperation in every field of the military and defence sectors, while recalling the need to foster European defence and develop our sovereignty;

    59. Underlines the need to enhance our partnership with like-minded countries, particularly those in Europe, such as the UK and Norway; calls for an EU-UK broad security pact, also covering key subjects such as energy, migration and critical minerals; points to the added value of fostering our relationships with global partners such as the US, Japan and Australia;

    °

    ° °

    60. Instructs its President to forward this resolution to the Council, the Commission, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy and the parliaments and governments of the EU Member States and NATO member countries.

    MIL OSI Europe News

  • MIL-OSI Security: Brevard County Man Pleads Guilty To Distributing Fentanyl And Methamphetamine

    Source: Office of United States Attorneys

    Orlando, Florida – Acting United States Attorney Sara C. Sweeney announces that Christopher Fitzgerald Spivey, Jr. (40, Melbourne) has pleaded guilty to four counts of distribution of controlled substances. By virtue of Spivey’s prior serious violent felony conviction, he faces a minimum penalty of 15 years, up to life, in federal prison. A sentencing date has not yet been set.

    According to court documents, on four occasions between November 5 and December 10, 2024, Spivey distributed fentanyl and methamphetamine to a confidential source. In total, Spivey distributed over 55 grams of fentanyl and nearly 1,300 grams of pure methamphetamine. Prior to Spivey distributing these drugs, he had a felony conviction for a serious violent felony—aggravated assault upon a law enforcement officer—for which he received a 10-year sentence. Additionally, Spivey is on notice that the United States intends to forfeit $10,500, which represents the proceeds of the offenses.

    This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Megan Testerman.

    MIL Security OSI

  • MIL-Evening Report: ‘Orgasms are a marvellous happiness’. Shere Hite gave voice to female sexuality in a landmark book – but the backlash was fierce

    Source: The Conversation (Au and NZ) – By Camilla Nelson, Associate Professor in Media and Journalism, University of Notre Dame Australia

    Owen Franken/Corbis via Getty Images

    In our feminist classics series we revisit influential works.


    Shere Hite’s The Hite Report was quickly dubbed a “sexual revolution in 600 pages”. It did something nobody had considered worth doing: investigating women’s sexuality by asking them to share their thoughts and feelings, then relaying those reflections to readers in women’s own words.

    This might not sound unusual today. But in 1976, it was incendiary.

    Based on a survey of 3,000 women distributed by the New York Chapter of the National Organisation for Women (the feminist group co-founded by Betty Friedan), more than 75% of the book comprises narrative responses to open ended survey questions.

    It includes a plethora of startlingly frank – for its time – and explicitly detailed opinions, anecdotes, complaints and criticisms about sex, masturbation and orgasm. The book is an extraordinarily rich cultural artefact in the archive of human intimacy.

    Unsurprisingly, the women who responded to Hite’s survey thoroughly enjoyed sex. “Orgasm is the ultimate pleasure – which women often deny themselves, but men never do,” claimed one. “Orgasms are a marvellous happiness”, added another. “Orgasm cancels out rage and longing for at least 48 hours,” said yet another.

    But it was the manner in which Hite’s respondents got their orgasms that made the book a scandal. “I think masturbation is essential to one’s health,” said one respondent. “[A]s I learned in my marriage – a partner is not always good sexually, though he may be wonderful in other ways.”

    Masturbation is better than “bad sex with an incompatible partner”, explained another respondent. “The only way I can have an orgasm is by masturbating,” said another.

    ‘A complex nature’

    The Hite Report did not attempt to define a sexual norm, or produce a representative survey sample, or pretend its data could be generalised to an entire population. But it did contain some statistical findings.

    The most significant of these – the source of the book’s notoriety – was that only 30% of women surveyed reported being able to regularly or reliably reach orgasm through heterosexual intercourse. And yet, 80% reported they could easily and regularly reach orgasm through clitoral stimulation, which was frequently obtained through masturbation, either alone, or with their partner.

    In her preface Hite argued that the canonical sexological works of the past 100 years – including the works of Sigmund Freud, Alfred Kinsey, and William Masters and Virginia Johnson – had constructed female sexuality “as essentially a response to male sexuality and intercourse”. She set out to demonstrate that “female sexuality might have a complex nature of its own”.

    Hite argued sex was a cultural institution, not a biological one. Historically, men had defined sex in terms of their own needs and preferences, then mandated their preferences as biological.

    Freud, for example, knew female orgasm could be reliably obtained through clitoral stimulation, but defined clitoral orgasm as an “immature orgasm” and orgasm arising from heterosexual intercourse as a “mature orgasm”. He then labelled women who could not achieve orgasm in the required way “frigid” and “hysterical”.

    The Hite Report is organised into eight chapters or themes, starting with “Masturbation”, followed by “Orgasm”, “Intercourse”, “Clitoral Stimulation”, “Lesbianism”, “Sexual Slavery”, “The Sexual Revolution” and “Older Women”. In a concluding chapter, Hite reflects on the issues raised by survey participants.

    In the chapter “Lesbianism”, a significant number of heterosexual-identified women confess same sex attraction, or else identify as bisexual. They also describe lesbian sexuality as “more variable”, and the “physical actions more mutual”.

    “The basic difference with a woman is that there’s no end,” claimed one respondent, “[…] it’s like a circle, it goes on and on.”

    “Lesbianism” sits in stark contrast to the chapter on “Sexual Slavery”, where Hite seeks to investigate why women pursue unequal sexual relationships, especially where respondents claim to receive little or no sexual pleasure.

    “Having a man love me and want to have sex with me is necessary to my happiness,” claimed one respondent. “Sex makes me feel I am a woman to my husband instead of just a live-in maid,” added another.

    “I’ve never heard a word of praise from my husband in 21 years except while having intercourse,” claimed yet another. “While I resent this, I still love him […] ”

    Wildly successful

    Many women applauded the book. Author Erica Jong, writing in The New York Times, called it a “revelation”. Others warned of a possible male backlash. “It seems that women are finally reporting the facts of their own sex,” wrote journalist Ellen Willis in the Washington Post, “and men are putting on the earmuffs of fear and retreating to deeper fantasies.”

    This backlash was not long in coming. Playboy apocryphally dubbed it “The Hate Report”, a label regularly recycled in media outlets around the world, including by female journalists. One male journalist, writing in the Miami Herald, argued women could not be regarded as truthful or reliable witnesses to their own lives. “What annoys me about The Hite Report,” he wrote, “is its smug assumption that just because women made these comments, they’re true”.

    Despite – or perhaps because of – this controversy, the book was wildly successful. It was translated into ten different languages – including French, Spanish, German, Italian, Hebrew and Japanese – and sold over 2 million copies within the first 12 months.

    It remains the 30th bestselling book of all time, with 50 million copies sold in 45 countries, including two recently translated editions in China, where it sparked conversations among intellectuals interested in formerly taboo western culture.

    Faking orgasms

    Born in smalltown Missouri, Hite gained a masters degree in social history and in 1967 moved to New York to enrol in a PhD program at Columbia University. She left when conservative faculty members refused to allow her to complete her dissertation on female sexuality. Hite worked as a model to pay her tuition fees. She joined the National Organisation for Women when they protested the sexism of the Olivetti advertising campaigns, after Hite was cast as an “Olivetti girl” for the typewriter company.

    Increasingly tagged as a “man-basher” after the publication of her book, Hite’s public persona was conventionally, almost theatrically feminine. She revelled in a contemporary Baroque aesthetic; a mirage of red lipstick, froufrou dresses, pancake-style makeup and tousled orange or platinum curls. And she spoke about sex in explicit detail, in a voice that was earnest, articulate and unembarrassed.

    Hite did not “discover” the clitoral orgasm. Instead, by centring women’s experiences, and taking their reflections seriously, her work threw into question centuries of sexological studies. These studies had either pathologised normal female sexual functioning or else insisted any pleasure women derived from sex had to be a by-product of conventional heterosexual intercourse.

    Even Masters and Johnson, who, in their reports from 1966 onwards, clinically proved all female orgasms were the result of clitoral stimulation, had insisted on the centrality of coitus.

    As Hite told television show host Geraldo in 1977,

    Masters and Johnson made a tremendous step forward in that they studied, and showed clinically, for the first time, that all orgasms are caused by clitoral stimulation, and we really have them to thank for that. However, when they described how it’s done – the thrusting of the penis causes the vaginal lips to move, which causes the skin that’s connected to the clitoris to move, which causes the glands to move over the clitoris, which supposedly gives you orgasm. But that doesn’t work for most women.

    And yet, although the participants in Hite’s study were overwhelmingly educated and politically progressive, many confessed they felt compelled to fake an orgasm during intercourse to please a man.

    “I ‘perform’ and boost his ego and confidence,” claimed one. “I do not like to think of myself as a performer but I feel judged and also judge myself when I don’t have an orgasm.” “[M]en do expect it, so I often force myself […],” said another.

    Participants also claimed how a woman was seen to orgasm mattered. “I don’t show the signs you’re supposed to,” worried one. “They think because I don’t pant, scream and claw I haven’t had one,” said another. “I used to go out of my way to offer all the mythical Hollywood signs,” revealed another.

    One participant even suggested the whole issue of sex was so politically fraught that, “Maybe sex would be better if we’d never heard of orgasm”.

    Respondents also told Hite the “sexual revolution” of the 1960s and 1970s had intensified, rather than reduced, gender prejudices and double standards.

    Sexual violence

    Another breathtaking aspect of the book is the way participants’ answers are shot through with sexual violence. On the issue of sexual coercion, for example, one participant replied, “I’m not supposed to say ‘no’ since I’m legally married”.

    On a question about the use of force in sex, another replied, “Only with my husband.” (In 1976, marital rape was legal and “acceptable” in most western nations.)

    Rape myths are also common. “I define as rape someone you don’t know who attacks you,” said one respondent. “I never defined it as […] someone you know. If you define rape that way, every woman has been raped over and over.”

    Another suggested rape wasn’t rape if a victim gave up fighting. “He really raped me, but not in the legal way. I couldn’t prevent him, in other words.”

    Hite identified toxic gender stereotypes as the major driver of sexual violence, especially the belief that “a man’s need for ‘sex’ is a strong and urgent ‘drive’” which women were obligated to satisfy. “Women aren’t always free to not have sex,” explained one respondent.

    Archival insights

    The Hite archive is housed in the Schlesinger Library of the Radcliffe Institute at Harvard University. It comprises over 250 filing boxes and folios, occupying more than 30 metres of shelf space. Most of the material relates to Hite’s public career as a sex researcher, with a small scattering of personal papers.

    I was at Harvard doing research for a book on Hite’s contemporary Andrea Dworkin. Although the two feminists exist as polar opposites in the public imagination, they thoroughly agreed with one another, and enjoyed a supportive working relationship. And so I wanted to take a look.

    Among the publishing agreements, speaking invitations, publicity material and the copies of the edited and revised questionnaires that formed the basis of the 1976 report – which are printed in vermillion – an occasional note flips out.

    One, a seemingly unpublished open letter titled “Dear Women”, bears the traces of the intense, frequently misogynistic and overtly hostile media scrutiny that marked Hite’s wild catapult to fame.

    “Sometimes I feel I am dying here in the midst of all this,” she writes, “without the support of anyone”.

    Another, scrawled in a flamboyant purple felt tip pen in the midst of her 1977 book tour of France, reads, “I know that I have done something good – but somehow I feel evil […] When did that start?”

    There are also letters from readers. One, sent from Milan in the wake of the controversy that accompanied the Italian edition of the book, bears the typewritten subject line “Personal”. It reads:

    Dear Ms Hite,
    I am 43 years old and have never written a fan letter in my life until today. But I feel a moral obligation to tell you that your ‘Report’ has rehabilitated me in my own eyes. After years of thinking there was something wrong with me, your book has shown me I’m normal.

    Hite’s “Dear Women” letter describes the extraordinary challenges, including the financial challenges, she faced both before and after the book was published.

    Macmillan, after purchasing the rights to the book, went cold on the project when the commissioning editor resigned or, as Hite phrases it, “quit/was fired depending on your point of view”. The publisher made no plan to promote the book and assigned a 22-year-old man to answer any media queries.

    Hite decided to step in, when, working in the publisher’s offices late one evening, she found a letter from her male publicist declining an invitation to discuss The Hite Report on TV as “he thought my book/subject might be too ‘ticklish’ for television”.

    Hite’s contract with Macmillan gave her little or no control over international editions of the book (and severely limited the income she could take from royalties, before it was ruled unconscionable by a court). In 1978, she “flew around the world twice” attempting to stop the book from being sensationalised.

    In France, the publisher had promised Hite a plain print cover, but was overruled by an all-male advertising department who “printed a cover with a nude woman”. In the second printing, the publisher agreed to revert to plain text.

    In Israel, entire sections of the first edition text were censored. Protests by local journalists led to the publisher engaging an Israeli feminist to re-translate the work.

    In Japan, the male translator produced a translation that was “so embarrassed and vague that it made absolutely no sense”. But on this occasion, a sympathetic female editor stepped in to rewrite entire sections of the manuscript.

    Hite’s Australian reception ranked among the most hostile. Her research assistant described the trip as “hideous”, alleging Hite had “never before encountered” such “vicious attitudes” as those exhibited by male journalists.

    Hite’s research assistant revealed in a separate letter that Hite’s doctors had “absolutely forbid her to do anything but rest for the next few months” after the Australian trip.

    Later life

    In her preface, Hite writes that she hoped to start a conversation through which men and women might “begin to devise more kind, generous, and personal ways of relating”.

    Sadly, this was not what happened. Hite went on to release four major reports on human sexuality, including a report on male sexuality, one on women and love, and one on the family. Then in 1996, she revoked her US citizenship and moved to Germany, saying the media’s hostility towards her made it impossible to continue working.

    Living in Germany, and later in Paris and London, she published her autobiography, The Hite Report on Shere Hite, and The Hite Reader, containing a selection of her published work. She died in 2020, aged 77.

    What marks the Hite Report as an artefact from another era is less the peculiar patois of the “Age of Aquarius”, than the way in which Hite’s respondents so often defined their identities through their husband’s, whether as a wife, former wife, or woman destined to be a wife. “Wifedom” is the default state.

    Equally, what makes the book disturbing, is the reality of sexual violence and coercion that lurks in so many answers, even when respondents are not being questioned about violence or coercion directly.

    With shocked recognition, the reader realises society has not changed nearly as much as some would like to think. The fact it has changed at all is partly due to the second sexual revolution ignited by Hite’s work.

    Camilla Nelson does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. ‘Orgasms are a marvellous happiness’. Shere Hite gave voice to female sexuality in a landmark book – but the backlash was fierce – https://theconversation.com/orgasms-are-a-marvellous-happiness-shere-hite-gave-voice-to-female-sexuality-in-a-landmark-book-but-the-backlash-was-fierce-246150

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Australia: Suspicious fire at Blair Athol

    Source: South Australia Police

    Police are investigating a suspicious fire at Blair Athol early this morning.

    About 4.20am on Friday 7 March, police and MFS were called to a business on Barton Street after reports of smoke coming from the back door.

    When patrols arrived, they found the fire had self-extinguished. There was no apparent structural damage, but there was significant smoke damage caused to the property.

    Crime Scene investigators and Western District CIB attended the scene.

    Police believe the fire was deliberately lit and are investigating if it is linked to Operation Eclipse.

    Anyone with information on the incident or saw any suspicious activity is asked to contact Crime Stoppers at www.crimestopperssa.com.au on 1800 333 000. You can remain anonymous.

    MIL OSI News

  • MIL-OSI USA: Sen. Scott, Rep. Pfluger Seek to Boost American Energy Production

    US Senate News:

    Source: United States Senator for South Carolina Tim Scott
    WASHINGTON — U.S. Senator Tim Scott (R-S.C.) and Congressman August Pfluger (R-Texas) introduced the Unlocking Domestic LNG Potential Act. This legislation would place the permitting process in the jurisdiction of the Federal Energy Regulatory Commission (FERC) and eliminate the U.S. Department of Energy’s authority on LNG exports.
    During the Biden-era energy crisis, the administration made an ill-advised decision to halt the approval process for liquified natural gas exports, halting America’s then-booming natural gas exports.
    “Unlocking American energy production not only plays a vital role in safeguarding our national security, but is the path to lowering energy costs for families across the nation,” said Senator Scott. “Relying on bad actors undoubtedly puts America last, not first. With President Trump back in office, we will be energy independent and dominate once again.”
    “President Biden spent four years pandering to progressive climate extremists and restricted future energy exports instead of unleashing American energy production to provide our allies with a secure, affordable energy source. We finally have a President back in office who understands that having efficient, reliable, and affordable energy is the key to U.S. national security,” said Rep. Pfluger. “This legislation cuts the red tape by removing the Department of Energy’s export authorization requirement and streamlining the permitting process. Energy security is national security, and I thank Senator Scott for leading this bill in the Senate and look forward to pushing for its passage in both chambers.”
    Senator Scott and Congressman Pfluger were joined by Senators Kevin Cramer (R-N.D.), Pete Ricketts (R-Neb.), Ted Budd (R-N.C.), Katie Britt (R-Ala.), Rick Scott (R- Fla.), and Representatives John Joyce (R-Pa.), Julia Letlow (R-La.), Victoria Spartz (R-Ind.), Dan Crenshaw (R-Texas), Lauren Boebert (R-Colo.), Stephanie Bice (R-Okla.), Roger Williams (R-Texas), Troy Balderson (R-Ohio), Craig Goldman (R-Texas), Randy Weber (R-Texas), Jodey Arrington (R-Texas), Dan Newhouse (R-Wash.), Jake Ellzey (R-Texas), Pete Sessions (R-Texas), and Brian Babin (R-Texas). 
    Find the legislation text here. 

    MIL OSI USA News

  • MIL-Evening Report: We simulated the upcoming AFL season four different ways – here’s what was predicted

    Source: The Conversation (Au and NZ) – By Tara Lind, PhD Candidate, La Trobe University

    The 2025 AFL season is just around the corner and fans are pondering the big questions: who will play finals? Who will finish in the top four? Who’s getting the wooden spoon?

    The start of a new season brings with it many unknowns, hopes, and in some cases, trepidation.

    Hawthorn finished 2024 playing some of the most exciting footy in the competition – can they keep that momentum going?

    Collingwood enters 2025 with the oldest and most experienced list – will that be the key to another deep finals run? Or are they over the hill?

    Can Carlton finally break its premiership drought? Can West Coast, North Melbourne, or Richmond get back on track? What can Fremantle do with its young list and high expectations?

    With so many unknowns, we turned to data.

    Simulations and predictions

    In La Trobe University’s Master of Sport Analytics, students need to build their own footy tipping algorithms and use them to simulate future matches.

    We’ve seen lots of different approaches to this problem. Each comes with its own set of assumptions and blind spots.

    One straightforward way to try to forecast what will happen in the upcoming season is to just look at history: how often does a team that finishes first on the ladder stay on top the next?

    That’s happened seven times since 1990, so about 20% of the time.

    We can model probabilities like this for every ladder position to get a gauge on how rankings typically shift from season to season, and apply this to the end-of-season 2024 ladder to predict the 2025 standings.

    This approach does not take into account last year’s finals results, the different age profiles of teams, the 2025 fixture, or other team changes such as trades, retirements, or injuries.

    Taking age into account

    How about if we consider player ages as well? This should give us a better sense of a team’s expected change between seasons.

    Research has suggested AFL players reach their peak performance levels at around 24-25.

    A quick look at team median ages since 1990 agrees: teams with a median player age over 25 typically have a worse winning percentage the following year, and teams younger than 24 usually improve (with plenty of exceptions).

    Combining last year’s ladder with age profiles gives a different view of the upcoming season.

    There is more shuffling, with older teams like Collingwood and Melbourne expected to fall, while the younger Fremantle, Gold Coast and Adelaide lists are given higher probabilities of finishing near the top.

    We’re still left with some important blind spots though: information from last year’s finals (Brisbane performed far better than a typical fifth-place finisher), and the difficulty of the upcoming fixture, have not been considered.

    The Elo rating system

    To take the full 2025 fixture into account, we need to simulate the entire season game by game.

    That can be done if we use the Elo rating system to get a “strength” rating for each team.

    Elo ratings track team strength over time: ratings go up with a win and down with a loss. The amount it changes depends on the opponent – beating a strong team boosts the rating more than beating a weak one, and the ratings update after every game played.

    We’ll use the Elo ratings that each team ended up on at the end of last year (including finals) as a baseline for 2025.

    With these ratings, we can calculate the probability of one team beating another in any given matchup. The method also considers home ground advantage by giving the home team a small rating boost.

    Once we have probabilities for each match outcome, we can simulate the entire season. Here’s how it works:

    • Each game needs a winner. To decide, we use a computer function that picks a winner based on probability, kind of like flipping a weighted coin. If a team has a 70% probability of winning, it’s more likely to be chosen, but there’s still a 30% chance they lose
    • This is done for every game in the season
    • We then repeat this 10,000 times – simulating 10,000 different versions of the season
    • In each version, we create an end-of-season ladder, based on the simulated games results
    • After all the simulations, we can see how often each team finishes in each ladder position. This gives us a prediction for their chances of finishing first, second, third and so on.

    The Elo approach favours Brisbane much more and is less kind to West Coast (35% chance of finishing last).

    It does not predict the decline of Collingwood and Melbourne because, although it takes into account the finals and fixture, it doesn’t have an age component.

    The ‘wisdom of the crowd’

    If each approach comes with its own set of limitations, then we might expect to get a better forecast by combining lots of predictions from different sources because of the “wisdom of the crowd”.

    The idea is that you get more accurate predictions if you combine multiple independent sources.

    Luckily for us, each season, several AFL stats experts build models to estimate the probability of each match outcome and generously post them online.

    What goes into each model is not always known, but they consider a mixture of different factors such as attacking and defending strengths, in-game statistics, home ground advantage, player lists and trades, last season’s performance and more.

    For our analysis, we’ll combine the Elo model with the average of all these expert tips to get a “wisdom of the crowd” prediction for each game’s probability. The ladder can then be simulated using the same method as above.

    Four groups emerge from the wisdom of the crowd:

    • Brisbane, Hawthorn, Geelong and the Western Bulldogs are predicted to lead the pack, surpassing last year’s top three
    • Sydney, Port Adelaide, GWS, Carlton, Fremantle, Collingwood and Adelaide have a wide spread of predicted finishes, skewed more towards finishing in the top eight – but there won’t be enough room for all of them
    • Essendon, Melbourne, St Kilda and Gold Coast might challenge for a spot in the finals, but the models are less confident in their chances
    • West Coast, North Melbourne and Richmond are hard to separate from each other, a cut below the rest.

    Uncertainty and excitement

    Each table tells a potentially different story but the most universal theme is uncertainty.

    Team sports are hard to predict, especially before we’ve had a chance to observe any games, and even the most confident predictions are under 40% (meaning they are more likely not to happen).

    Uncertainty leads to excitement, and this data only makes us more excited to see what will play out this season.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. We simulated the upcoming AFL season four different ways – here’s what was predicted – https://theconversation.com/we-simulated-the-upcoming-afl-season-four-different-ways-heres-what-was-predicted-249475

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Security: Eight Charged in North Charleston Public Corruption Schemes, Including Three City Councilmen

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    CHARLESTON, S.C. — Eight people have been charged in federal court for a series of bribery, kickback, extortion, and money laundering schemes following a public corruption investigation in North Charleston. Three of the individuals charged are elected members of the North Charleston City Council.

    Four individuals have been charged by Information and have agreed to plead guilty:

    Jerome Sydney Heyward, 61, North Charleston City Councilmember;

    Sandino Savalas Moses, 50, North Charleston City Councilmember;

    Donavan Laval Moten, 46, founder of Core4Success Foundation; and

    Aaron Charles-Lee Hicks, 37, resident of North Charleston.

    A federal grand jury returned indictments against four others:

    Mike A. Brown, 46, North Charleston City Council Member;

    Hason Tatorian (“Tory”) Fields, 51, a Goose Creek resident;

    Rose Emily Lorenzo, 65, a North Carolina resident; and

    Michelle Stent-Hilton, 56, a North Charleston resident.

    Heyward is charged in three separate schemes with corruptly using his position as a North Charleston City Councilman to personally enrich himself through bribes, kickbacks, and extortion and to deprive the citizens and the government of North Charleston of their intangible right to the honest and faithful services of the North Charleston City Council. In the first scheme, Heyward extorted a businessman by soliciting payments in exchange for his official action as a City Councilman. In the second scheme, Heyward conspired with Mike A. Brown and Aaron Hicks to solicit and accept bribes from Aaron Hicks—working on behalf of a company with business before North Charleston City Council—in exchange for his support of the rezoning of the Baker Hospital site. In the third scheme, Heyward conspired with Donavan Moten, Rose Lorenzo, and Michelle Stent-Hilton to embezzle funds belonging to North Charleston by soliciting and accepting kickbacks from non-profit organizations run by Moten and Stent-Hilton that received violence reduction grant funds from the City.

    Heyward has agreed to plead guilty to: extortion under color of official right and using fear of economic harm; multiple counts of conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud; multiple counts of bribery with respect to programs receiving federal funds and honest services wire fraud; theft with respect to programs receiving federal funds; and multiple counts of money laundering. Heyward faces a maximum term of imprisonment of 20 years, a fine of $500,000, and a term of supervised release of three years. Heyward has agreed to cooperate with federal, state, and local law enforcement agencies.

    Mike A. Brown is charged with conspiring with Heyward and Hicks to commit bribery and honest services wire fraud. The indictment alleges that Mike A. Brown, while serving as a North Charleston City Councilmember, solicited and accepted bribes from Hicks—working on behalf of a company requesting the rezoning of the Baker Hospital site—in exchange for his support of the rezoning application. Mike A. Brown faces a maximum term of imprisonment of 20 years, a fine of $250,000, and a term of supervised release of three years. He will be arraigned on these charges in March.

    Aaron Hicks is charged with a conspiracy to pay bribes to Mike A. Brown and Jerome Heyward and a separate conspiracy with Hason Tatorian Fields to bribe Sandino Moses in exchange for their influence on North Charleston City Council and their support of the rezoning of the Baker Hospital site. Hicks has agreed to plead guilty to two counts of conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud; bribery with respect to programs receiving federal funds, and honest services wire fraud. Hicks has agreed to cooperate fully with federal, state, and local law enforcement agencies. Hicks faces a maximum term of imprisonment of 20 years, a fine of $250,000, and a term of supervised release of three years.

    Hason Tatorian (“Tory”) Fields is charged with conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud, bribery with respect to programs receiving federal funds, and honest services wire fraud. The indictment alleges that Fields conspired with Hicks to pay bribes to Sandino Moses. Thereafter, Fields paid Moses two bribes in an attempt to influence him in connection with his official action regarding the rezoning of the Baker Hospital site. Fields faces a maximum term of imprisonment of 20 years, a fine of $250,000 and a term of supervised release of three years.

    Sandino Moses is charged with misprision of a felony. The Information alleges that Moses knew that Fields and others attempted to bribe him and paid him bribes but he failed to disclose that criminal conduct and instead took steps to conceal the bribes by returning the money to Fields. Moses has agreed to plead guilty and to cooperate fully with federal state and local law enforcement agencies. He faces a maximum term of imprisonment of three years, a fine of $250,000, and a maximum term of supervised release of one year.

    Donavan Laval Moten has agreed to plead guilty to conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud, theft with respect to programs receiving federal funds, bribery with respect to programs receiving federal funds, honest services wire fraud, and money laundering. The information alleges that Moten conspired with Jerome Heyward and Rose Lorenzo to kick back a portion of funds that Moten’s nonprofit received from North Charleston to Heyward, who at the time was on North Charleston’s City Council. The indictment further alleges that after receiving the money from North Charleston, Moten laundered Heyward’s portion through Lorenzo. Moten has agreed to cooperate fully with federal, state, and local enforcement officials. Moten faces a maximum term of imprisonment of 20 years, a fine of $500,000 and a term of supervised release of three years.

    Michelle Stent-Hilton is charged with conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud, theft with respect to programs receiving federal funds, bribery with respect to programs receiving federal funds, honest services wire fraud, and money laundering. The indictment alleges that Stent-Hilton, who is affiliated with a non-profit and served as Jerome Heyward’s personal assistant, promised to pay Heyward a portion of money the non-profit received from the city of North Charleston. At the time, Heyward was serving on North Charleston City Council and voted on the grant proposal to distribute funds to non-profits, including Stent-Hilton’s. The indictment further alleges that after receiving money from North Charleston, Stent-Hilton laundered Heyward’s kick back through Rose Lorenzo. Stent-Hilton faces a maximum term of imprisonment of 20 years, a fine of $500,000 and a term of supervised release of three years.

    Rose Emily Lorenzo is charged with conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud, theft with respect to programs receiving federal funds, bribery with respect to programs receiving federal funds, honest services wire fraud, and money laundering. The indictment alleges that Lorenzo conspired with Jerome Heyward and others to kick back a portion of City of North Charleston grant funds that were awarded to non-profits affiliated with Donavan Moten and Michelle Stent-Hilton to Heyward. The indictment further alleges that Lorenzo agreed to launder the funds by acting as an intermediary who received the funds from Moten and Stent-Hilton, and then wired them to Heyward for the purpose of concealing the true purpose of the transaction. Lorenzo faces a maximum term of imprisonment of 20 years, a fine of $500,000 and a term of supervised release of three years.

    Heyward, Moten, Hicks, and Moses are scheduled to plead guilty before the Honorable Richard M. Gergel on Friday, Feb. 28.

    “When elected officials take their oath of office, they make a sacred promise to the people they serve.  They pledge to uphold the law, to act with integrity, and to place the public interest above their own,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “Public service should never merely be a job – it is a public trust. The allegations in this case describe a profound betrayal of that trust.”

    “Public corruption at any level of government cannot be tolerated,” said Steve Jensen Special Agent in Charge of the FBI Columbia Field Office. “Citizens have a right to expect honesty, fairness, and integrity from their leaders. The FBI, in collaboration with our law enforcement partners, is dedicated to aggressively investigating corruption and ensuring those responsible are held accountable.”

    “SLED Agents worked hand-in-hand with our federal partners to ensure that justice will be served,” said SLED Chief Mark Keel. “No matter who you are, or what position you hold, you will be held accountable for breaking the law. Elected officials and citizens should be working together to better their community, not exploiting others.”

    The case was investigated by the FBI Columbia Field Office and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse and Whit Sowards are prosecuting the case.

    All charges in the indictment are merely accusations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    ###

    MIL Security OSI

  • MIL-Evening Report: Meet Maria Clementina Sobieska, the defiant queen who pulled off a jailbreak to secure the Jacobite legacy

    Source: The Conversation (Au and NZ) – By Darius von Guttner Sporzynski, Historian, Australian Catholic University

    Wikimedia

    Maria Clementina Sobieski is one of only three women buried in the famous St Peter’s Basilica in Vatican City, alongside an estimated 100 or so popes. She lived a life of extraordinary defiance and determination.

    Born in 1701 in Oława, Poland, Maria Clementina was the granddaughter of King John III Sobieski of Poland, who was famous for his victory in the 1683 Battle of Vienna against the forces of the Ottoman Empire.

    While this ancestry provided Maria Clementina her status as a princess, it also came with significant challenges, by placing her at the centre of 18th century European dynastic politics.

    At just 17 years old, she was betrothed to James Stuart, the Jacobite claimant to the British throne. This match, which held immense political and religious significance, was agreed to by her father, Jakub, after negotiations with Stuart.

    But her journey to marriage wouldn’t simple. It required a daring escape from imprisonment in Innsbruck, where she was held by Emperor Charles VI in a bid to prevent her union with Stuart.

    Francesco Bertosi’s painting, ‘Princess Maria Clementina Sobieska, 1701–1735. Wife of Prince James Francis Edward Stuart’, 1719.
    National Galleries of Scotland

    A high-stakes abduction

    The marriage between Maria Clementina and James Stuart was a direct challenge to the Protestant king George I of Great Britain.

    James Stuart, also known as the Old Pretender, was living in exile and sought to reclaim the British throne that was his by birthright. His marriage to Maria Clementina, which was endorsed by Pope Clement XI, would symbolise Catholic unity against growing Protestant dominance.

    Recognising this political threat, George I asked Emperor Charles VI, his ally, to order Maria Clementina’s detention in Innsbruck while she was en route to her wedding.

    Her confinement was intended to coerce her family into annulling the engagement. However, Maria Clementina, bolstered by her unwavering faith and determination, refused to capitulate.

    Anton Raphael Mengs’s painting, ‘Prince James Francis Edward Stuart’, circa 1740s.
    Wikimedia

    The perilous escape

    Maria Clementina’s imprisonment at the hands of Charles VI lasted six months. During this time, she kept her spirits high through correspondence with James Stuart and her father, Jakub. Meanwhile, plans for her escape were set in motion by Charles Wogan, an Irish Jacobite loyal to Stuart.

    The princess disguised herself by switching clothes with the servant of one of her rescuers, Eleanor Misset. She then slipped past imperial guards with a small group posing as a travelling family.

    The escape involved avoiding imperial agents and enduring significant physical hardship, including traversing the harsh and mountainous Brenner Pass in the Alps.

    In one instance, after a carriage axle broke, Maria Clementina and Eleanor Misset were forced to walk a considerable distance to find shelter. Despite the gruelling journey, Maria Clementina demonstrated remarkable resolve, earning the admiration of her companions.

    Reaching safety and marriage

    After crossing into Italy, the group arrived in Bologna, where Maria Clementina rested and prepared for her new role as James Stuart’s wife. Her wedding took place on May 9 1719 in a modest ceremony.

    Although James Stuart was absent (not unusual for high-profile dynastic alliances at the time), the marriage formalised their union and reinforced the Jacobite claim to the British throne.

    Maria Clementina wore a white dress to symbolise mourning for James Stuart’s late mother, Maria Beatrice d’Este. The ceremony was attended by Jacobite activist Charles Wogan and other members of the escape team, including Eleanor Misset.

    And so Maria Clementina became the titular Catholic queen of England, Scotland and Ireland.

    Agostino Masucci’s ‘The Solemnisation of the Marriage of James III and Maria Clementina Sobieska’, circa 1735.
    National Galleries of Scotland

    Motherhood and family challenges

    Maria Clementina’s bold actions ensured the continuity of the Jacobite line. On December 31 1720 she gave birth to her first son, Charles Edward Stuart, later known as Bonnie Prince Charlie.

    He was baptised within the hour by Father Lawrence Mayes, the same bishop who officiated his parents’ wedding, and his birth was widely celebrated by Jacobite supporters.

    Maria Clementina’s second son, Henry Benedict Stuart, was born on March 6 1725 and was later made Duke of York.

    A monument in St Peter’s Basilica dedicated to the royal Stuarts, James and his sons, Charles and Henry.
    Wikimedia, CC BY-SA

    While the birth of her sons brought joy and hope to the Jacobite cause, Maria Clementina’s relationship with James Stuart grew strained.

    As one household observer remarked:

    their tempers are so very different that though in the greatest trifles they are never of the same opinion, the one won’t yield an inch to the other.

    James neglected Maria Clementina. The pair also clashed over their sons’ education, further straining the marriage.

    The later years

    By the end of 1725, Maria Clementina’s frustrations with her marriage reached a breaking point. She left James and took up residence at the convent of St Cecilia in Trastevere, Rome, leaving her young sons behind.

    For two years she embraced a devout lifestyle, focusing on her own welfare. Her return to James in 1728 was marked by a withdrawal from court life, and she spent much of her time in seclusion at Rome’s Palazzo Muti.

    John Pettie (1834-93), ‘Bonnie Prince Charlie Entering the Ballroom at Holyroodhouse’, before April 1892.
    Royal Collection Trust, CC BY-NC-SA

    Despite her struggles, Maria Clementina’s legacy as a mother was significant. Charles Edward Stuart and Henry Benedict Stuart carried the Jacobite cause forward, their lives shaped by the resilience and determination demonstrated by their mother. Her commitment to their futures ensured the Jacobite line endured, even as political realities shifted.

    Maria Clementina died on January 18 1735 at the age of 32. She was given a royal funeral in St Peter’s Basilica, where she was interred with honours befitting her status as queen. Her heart was enshrined separately in the church of the Twelve Holy Apostles in Rome.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. Meet Maria Clementina Sobieska, the defiant queen who pulled off a jailbreak to secure the Jacobite legacy – https://theconversation.com/meet-maria-clementina-sobieska-the-defiant-queen-who-pulled-off-a-jailbreak-to-secure-the-jacobite-legacy-247211

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: Underfunded? Overfunded? How school funding works in Australia

    Source: The Conversation (Au and NZ) – By Laura Perry, Professor of Education Policy and Comparative Education, Murdoch University

    Getty Images

    During the federal election campaign we can expect to hear candidates talk passionately about school funding. This is one of the most contentious areas of education policy – and one many families and voters care deeply about.

    You may hear some parties talking about how they are “fully funding” schools and other commentary about schools being under or overfunded.

    How does school funding work in Australia?

    Where does the money come from?

    All schools in Australia receive both public and private funding. Public funding is taxpayer funding and it comes from both state and federal governments.

    Private funding comes from parents and households, as well as churches and other associations, which are mostly charitable. These charitable organisations receive tax breaks.

    How does government funding work?

    All schools in Australia receive funding from federal and state governments.

    The amount they receive is based on the “schooling resource standard”. This standard – which dates back to the 2011 school funding review by David Gonski – establishes a baseline amount schools should receive based on the number of pupils they enrol.

    Extra loadings are then provided for schools and students with special needs, for example students with disabilities, from low socioeconomic backgrounds or in remote areas.

    The estimated baseline schooling resource standard for 2025 is A$17,565 per secondary student and $13,977 per primary student.

    The latest federal school funding policy, the Better and Fairer Schools Agreement sets out how public schools will receive 25% of the schooling resource standard from the federal government and rest from their respective state government.

    Up to 80% of a non-government school’s schooling resource standard funding can be provided by the federal government. But the actual amount is adjusted by something called a school’s “capacity to contribute”.

    This measures a non-government school community’s capacity to contribute to the ongoing costs of running their school. In practice, it sees lower-fee non-government schools receive more public funding than higher-fee non-government schools.

    State governments also provide public funding to non-government schools. This is because school funding agreements require state governments to contribute some level of funding to non-government schools.




    Read more:
    NSW has finally struck a school funding deal. What does this mean for schools and students?


    How are schools funded by other sources?

    All schools in Australia receive private funding from parents and households.

    Public schools receive private funding in the form of fees and contributions from parents. These fees and contributions can vary from a few hundred dollars at some public primary schools to thousands of dollars at some public secondary schools.

    This funding is used to support building and facilities, excursions, as well as subsidise curriculum subjects, especially in secondary schools.

    Non-government schools receive private funding in the form of fees. These are often many thousands of dollars per student. In NSW and Victoria in 2024, recent research on independent schools (not including Catholic schools) indicates average fees for Year 12 are at least $15,674.

    Non-government schools in particular receive a substantial funding from philanthropic and charitable organisations.

    According to analysis by advocacy group Save Our Schools, 50 non-government schools received $461 million dollars in donations between 2017 and 2021.




    Read more:
    Are public schools really ‘free’? Families can pay hundreds of dollars in voluntary fees


    What is meant by ‘underfunded’ and ‘overfunded?’

    In media and policy debates about schools we frequently hear talk of public schools being “underfunded” or still not “fully funded”. We also hear about some independent schools being “overfunded”.

    This relates to whether they are receiving what they are entitled to under the schooling resources standard.

    To date approximately 2% of public schools, receive the amount they are entitled to based on the schooling resources standard. This is largely because state and territory governments, other than the ACT, have not contributed their full share.

    This means the vast majority of public schools are “underfunded”.

    The most recent national school funding agreement has set out a timeline to make sure all schools are eventually fully funded. In some cases, this may not be until the 2030s.

    On the other hand, many non-government schools are “overfunded” because they are receiving more than the amount specified by the schooling resource standard.

    Non-government schools that charge fees in excess of the schooling resource standard will be “overfunded”. Even moderate-fee schools may be “overfunded” because of the public funding they receive on top of the private funding paid by parents.

    As noted earlier, school funding agreements require federal and state governments to contribute to the schooling resource standard of all non-government schools. Even high-fee non-government schools receive substantial amounts of public funding.

    For example, my 2024 research suggests high-fee non-government schools (those charging $25,000 per year or more) receive approximately $5,000 per pupil in public funding.




    Read more:
    As more money is flagged for WA schools, what does ‘fully funded’ really mean?


    Are some non-government schools at risk of losing funds?

    Most non-government schools will continue to receive increases in public funding due to indexation.

    But there are headlines about “private school funding cuts”.

    This is because some non-government schools will see less public funding if the federal government has been paying more than 80% of the schooling resource standard (due to outdated funding methods). Schools have until 2029 to transition to the current funding system.

    This will only impact a small proportion of non-government schools. For example, in January, The Sydney Morning Herald reported 30 schools were projected to lose funding.

    Laura Perry does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Underfunded? Overfunded? How school funding works in Australia – https://theconversation.com/underfunded-overfunded-how-school-funding-works-in-australia-251048

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: When patients are harmed in hospital, issues aren’t always fixed to avoid it happening again

    Source: The Conversation (Au and NZ) – By Peter Hibbert, Honorary Professor, Australian Institute of Health Innovation, Macquarie University

    Pormezz/Shutterstock

    Over the past two weeks, the media has reported several cases of serious “adverse events”, where babies, children and an adult experienced harm and ultimately died while receiving care in separate Australian hospitals.

    When a serious adverse event occurs, hospitals investigate what happened and why, and propose recommendations to reduce the risk of similar harm occurring again.

    About 1,600 patient safety investigations are undertaken each year. And the stakes are high. If not managed well, the hospital’s response can compound the psychological harm to the patient and their family. If lessons aren’t learnt, patient safety doesn’t improve.

    Despite three decades of concerted effort, the rate of adverse events remains stubbornly high in Australia. One in ten people will experience harm associated with their hospital care.

    What can be done to reduce this harm? There is no quick fix but our research shows improving hospital investigations can have a big impact. Here’s how this can be done.

    What exactly are ‘adverse events’?

    Thirty years ago, one of the first large-scale studies of the rates of harm to patients in Australian hospitals was published – the Quality in Australian Health Care Study.

    Alongside subsequent studies in other countries, it found one in ten hospital admissions were associated with an “adverse event”. These included:

    • incidents with medications (such as administering the wrong dose or drug)

    • hospital-acquired infections (associated with surgery or intravenous lines)

    • physical or mental health deterioration which is not detected and managed in a timely way.

    Some adverse events can lead to patients suffering serious or permanent physical disabilities and psychological trauma.

    Clinicians involved in such events can also suffer significant psychological distress and grief.

    How are they investigated?

    When a serious adverse event occurs, hospitals form a team to undertake a patient safety investigation. The teams harness experts from the clinical specialties involved in the adverse event (such as emergency department or surgery) and health service safety personnel.

    The investigation also informs “open disclosure” – information for the patient and family about why the adverse event occurred and what changes the health service intends to make to prevent a similar adverse event from happening again.

    But our research has shown most recommendations in these investigations are unlikely to reduce harm to patients.

    The complexity of health care, workforce shortages and broader pressures on the health system (such as an ageing population requiring more complex care) often work against health services effectively implementing recommendations.

    So what can be done?

    We are undertaking research with four state and territory governments (New South Wales, Victoria, Queensland and the Australian Capital Territory) to test these strategies and inform how they can be redesigned for safer care. Here’s what we’ve found so far.

    A well-recognised problem with some investigations is their lack of specialised expertise in patient safety. The field is backed by robust research, yet often the people undertaking the investigations are experts in their clinical field, or in the running of a hospital, but not in safety science.

    Added to that, the sheer complexity of health care makes the task of finding the factors that contributed to the harm and developing effective recommendations even more challenging.

    Consider the contrast this has with biomedical sciences, such as developing new drugs or tests. These use large, specialist, independent research institutions with highly trained scientists. Yet patient safety problems, which are arguably as complex, are expected to be solved with fewer resources, using part-time staff with variable task-specific experience and training, at a local hospital.

    Complex patient safety problems require appropriate investments in expertise and independence.

    Findings of investigations tend not to be shared. This means learning remains local. Repeated investigations of the same type of adverse event may be undertaken at multiple hospitals, duplicating effort.

    More sharing of adverse events by hospitals and health departments would reduce this duplication and make learning more efficient. Aviation does this well. If a commercial jet experiences a problem or near miss, the issue is shared so every airline knows about it.

    If we did this, we could redesign hospital systems to support safer care. This could, for example, include standardising how medication information, such as the dose, is displayed on all hospital computer systems. Doctors going from one hospital to another would be less likely to make errors in prescribing medication, which is a common patient safety risk.

    Thirty years after the rates of adverse events were first reported in Australia, patients and the broader public deserve to know that investigations are being conducted effectively and that strategies are being adopted to keep every hospital visit safer.




    Read more:
    Operating on the wrong body part – what can be done to prevent it?


    Peter Hibbert receives funding from the National Health and Medical Research Council as a Partnership Grant, with partners: the Clinical Excellence Commission in New South Wales, Safer Care Victoria, Clinical Excellence Queensland, and Australian Capital Territory Health.
    He also undertakes training in undertaking patient safety investigations and consulting to health services.

    Jeffrey Braithwaite receives funding from the National Health and Medical Research Council as a Partnership Grant, with partners: the Clinical Excellence Commission in New South Wales, Safer Care Victoria, Clinical Excellence Queensland and Australian Capital Territory Health.

    ref. When patients are harmed in hospital, issues aren’t always fixed to avoid it happening again – https://theconversation.com/when-patients-are-harmed-in-hospital-issues-arent-always-fixed-to-avoid-it-happening-again-251064

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: AI doesn’t really ‘learn’ – and knowing why will help you use it more responsibly

    Source: The Conversation (Au and NZ) – By Kai Riemer, Professor of Information Technology and Organisation, University of Sydney

    HAKINMHAN/Shutterstock

    What if we told you that artificial intelligence (AI) systems such as ChatGPT don’t actually learn? Many people we talk to are genuinely surprised to hear this.

    Even AI systems themselves will often tell you confidently that they are learning systems. Many reports and even academic papers say the same. But this is due to a misconception – or rather a loose understanding of what we mean by “learning” in AI.

    Yet, understanding more precisely how and when AI systems learn (and when they don’t) will make you a more productive and more responsible user of AI.

    AI does not learn – at least not like humans do

    Many misconceptions around AI stem from using words that have a certain meaning when applied to humans, such as learning. We know how humans learn, because we do it all the time. We have experiences; we do something that fails; we encounter something new; we read something surprising; and thus we remember, we update or change the way we do things.

    This is not how AI systems learn. There are two main differences.

    Firstly, AI systems do not learn from any specific experiences, which would allow them to understand things the way we humans do. Rather they “learn” by encoding patterns from vast amounts data – using mathematics alone. This happens during the training process, when they are built.

    Take large language models, such as GPT-4, the technology that powers ChatGPT. In a nutshell, it learns by encoding mathematical relationships between words (actually, tokens), with the aim to make predictions about what text goes with what other text. These relationships are extracted from vast amounts of data and encoded during a computationally intensive training phase.

    This form of “learning” is obviously very different to how humans learn.

    It has certain downsides in that AI often struggles with simple commonsense knowledge about the world that humans naturally learn by just living in the world.

    But AI training is also incredibly powerful, because large language models have “seen” text at a scale far beyond what any human can comprehend. That’s why these systems are so useful with language-based tasks, such as writing, summarising, coding, or conversing. The fact these systems don’t learn like us, but at a vast scale, makes them all-rounders in the kinds of things they do excel at.

    AI systems do not learn from any specific experiences, which would allow them to understand things the way we humans do.
    Rido/Shutterstock

    Once trained, the learning stops

    Most AI systems that most people use, such as ChatGPT, also do not learn once they are built. You could say AI systems don’t learn at all – training is just how they’re built, it’s not how they work. The “P” in GPT literally stands for “pre-trained”.

    In technical terms, AI systems such as ChatGPT only engage in “training-time learning”, as part of their development, not in “run-time learning”. Systems that learn as they go do exist. But they are typically confined to a single task, for example your Netflix algorithm recommending what to watch. Once it’s done, it’s done, as the saying goes.

    Being “pre-trained” means large language models are always stuck in time. Any updates to their training data require highly costly retraining, or at least so-called fine-tuning for smaller adjustments.

    That means ChatGPT does not learn from your prompts on an ongoing basis. And out of the box, a large language model does not remember anything. It holds in its memory only whatever occurs in a single chat session. Close the window, or start a new session, and it’s a clean sheet every time.

    There are ways around this, such as storing information about the user, but they are achieved at the application level; the AI model itself does not learn and remains unchanged until retrained (more on that in a moment).

    Most AI systems that most people use, such as ChatGPT, also do not learn once they are built.
    Ascannio/Shutterstock

    What does this mean for users?

    First, be aware of what you get from your AI assistant.

    Learning from text data means systems such as ChatGPT are language models, not knowledge models. While it is truly amazing how much knowledge gets encoded via the mathematical training process, these models are not always reliable when asked knowledge questions.

    Their real strength is working with language. And don’t be surprised when responses contain outdated information given they are frozen in time, or that ChatGPT does not remember any facts you tell it.

    The good news is AI developers have come up with some clever workarounds. For example, some versions of ChatGPT are now connected to the internet. To provide you with more timely information they might perform a web search and insert the result into your prompt before generating the response.

    Another workaround is that AI systems can now remember things about you to personalise their responses. But this is done with a trick. It is not that the large language model itself learns or updates itself in real time. The information about you is stored in a separate database and is inserted into the prompt each time in ways that remain invisible.

    But it still means that you can’t correct the model when it gets something wrong (or teach it a fact), which it would remember to correct its answers for other users. The model can be personalised to an extent, but it still does not learn on the fly.

    Users who understand how exactly AI learns – or doesn’t – will invest more in developing effective prompting strategies, and treat the AI as an assistant – one that always needs checking.

    Let the AI assist you. But make sure you do the learning, prompt by prompt.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. AI doesn’t really ‘learn’ – and knowing why will help you use it more responsibly – https://theconversation.com/ai-doesnt-really-learn-and-knowing-why-will-help-you-use-it-more-responsibly-250923

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Security: Four Plead Guilty in N. Charleston Public Corruption Scheme

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    CHARLESTON, S.C. —Following Wednesday’s announcement of eight people charged in a public corruption scheme, four have pleaded guilty. The four men, including two former city council members, were each granted release pending sentencing on unsecured bonds.

    These four defendants entered guilty pleas in federal court today:

    Jerome Sydney Heyward, 61, Former North Charleston City Councilmember;

    Sandino Savalas Moses, 50, Former North Charleston City Councilmember;

    Donavan Laval Moten, 46, founder of Core4Success Foundation; and

    Aaron Charles-Lee Hicks, 37, resident of North Charleston.

    United States District Judge Richard M. Gergel accepted the guilty pleas and will sentence Heyward, Moses, Moten, and Hicks after receiving and reviewing a sentencing report prepared by the U.S. Probation Office. Heyward and Moten each face a maximum term of imprisonment of 20 years, a fine of $500,000, and a term of supervised release of three years. Hicks faces a maximum term of imprisonment of 20 years, a fine of $250,000, and a term of supervised release of three years. Moses faces a maximum term of imprisonment of three years, a fine of $250,000, and a maximum term of supervised release of one year.

    This case was investigated by the FBI Columbia Field Office and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse and Whit Sowards are prosecuting the case.

    ###

    MIL Security OSI

  • MIL-Evening Report: US trade wars with China – and how they play out in Africa

    Source: The Conversation (Au and NZ) – By Lauren Johnston, Associate Professor, China Studies Centre, University of Sydney

    Since taking office, US president Donald Trump has implemented policies that have been notably hostile towards China. They include trade restrictions. Most recently, a 20% tariff was added to all imports from China and new technological restrictions were imposed under the America First Investment Policy. This isn’t the first time US-China tensions have flared. Throughout history the relationship has been fraught by economic, military and ideological conflicts.

    China-Africa scholar and economist Lauren Johnston provides insights into how these dynamics may also shape relations between Africa and China.

    How has China responded to hostile US policies?

    First, China tends to have a defiant official response. It expresses disappointment, then states that the US policy position is not helpful to any country or the world economy.

    Second, China makes moves domestically to prioritise the interests of key, affected industries.

    Third, China will sometimes impose retaliatory sanctions.

    In 2018, for instance, China imposed a 25% tariff on US soybeans, a critical animal feed source. The US Department of Agriculture had to compensate US soybean farmers for their lost income.

    Another example is how, following US tech sanctions, China took a more independent technology path. It has channelled billions into tech funds. The goal is to make financing available for Chinese entrepreneurs and to push technological boundaries in areas of US sanction, such as semiconductors. These efforts are backed up by subsidies and tax reductions. In some cases, the Chinese state will invest directly in tech companies.

    More recently, China retaliated to the US trade war by
    announcing tariffs on 80 US products. China is set to place 15% tariffs on certain energy exports, including coal, natural gas and petroleum. An additional 10% tariffs will be placed on 72 manufactured products including trucks, motor homes and agricultural machinery.

    Agricultural trade has been hard hit. The day the US announced a 10% tariff on Chinese imports, China announced “an additional 15% tariff on imported chicken, wheat, corn and cotton originating from the US”. Also, “sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products will be subject to an additional 10% tariff”.

    How have these Chinese responses affected Africa?

    We can’t say for certain that China’s response to US trade tensions has explicitly affected its Africa policy, but there are some notable coincidences.

    Less than one month after Trump’s return to the White House in 2025, and soon after the first tariffs were slapped on China’s exports to the US, China announced new measures to foster China-Africa trade efforts. The policy package aims to “strengthen economic and trade exchanges between China and Africa.”

    This is the latest in a series of Chinese actions.

    In January 2018 trade hostilities began to escalate after Trump imposed a first round of tariffs on all imported washing machines and solar panels. These had an impact on China’s exports to the US.

    Later the same year, China imposed 25% tariffs on US soy bean imports and took steps to reduce dependence on US agricultural products. China also took steps to expand trade with Africa, agricultural trade in particular.

    In September 2018, Beijing hosted the Forum on China and Africa Cooperation summit, a triennial head of state gathering. It was announced that China would set up a China-Africa trade expo and foster deeper agricultural cooperation. In the days after the summit, China’s Ministry of Agriculture and Rural Affairs was already acting on this. A gathering of African agricultural ministers took place in Changsha, Hunan province.

    Hunan province has since taken centre stage in China-Africa relations. It’s now the host of a permanent China-Africa trade exhibition hall and a larger biennial China-Africa economic and trade exhibition (known as CAETE).

    Hunan also hosts the pilot zone for In-Depth China-Africa Economic and Trade Cooperation. The zone has numerous initiatives designed to overcome obstacles to China-Africa trade and investment, like support in areas of law, technology and currency, and vocational training.

    Finally, the zone is located in a bigger free-trade zone that is better connected to Africa by air, water and land corridors. African agricultural exports to China pass through Hunan, where local industry either uses these imports or distributes them across the country to retailers.

    Companies in Hunan are well placed to play a key role in supporting China-Africa trade, capitalising on the opportunities left by China-US hostilities.

    Hunan’s agritech giant Longping High-Tech, for instance, is investing in Tanzanian soybean farmers.

    Hunan is also home to China’s construction manufacturing and electronic transportation frontier. This includes global construction giant Sany, which produces heavy industry machinery for the construction, mining and energy sectors. China’s global electronic vehicle manufacturing BYD and its electronic railway industry are also in Hunan. They have deep and increasing interests in Africa and can also support China’s key minerals and tech race with the US.

    As US-China hostility enters a new era, what are the implications for China-Africa relations?

    As my new working paper sets out, African countries are, for example, responding to the new opportunities from China.

    At the end of 2024, while the world waited for Trump’s second coming, various African countries made moves to strengthen economic ties with China, Hunan province especially.

    In December 2024, Tanzania became the first African country to open an official investment promotion office in the China-Africa Cooperation Pilot Zone in Changaha.

    In November 2024, both the China-Africa Economic and Trade Expo in Africa and the China Engineering Technology Exhibition were held in Abuja, Nigeria. Equivalent events were hosted in Kenya.

    Early in 2025 in Niamey, Niger, a joint pilot cooperation zone was inaugurated , and which is direct partner of the China-Africa Pilot zone in Hunan.

    As China moves away from US agricultural produce, for instance, African agricultural producers can benefit. Substitute African products and potential exports will enjoy a price boost, and elevated Chinese support.

    China’s newly elevated interest in African development and market potential will bring major prospects. The question will be whether African countries are ready to grasp them, and to use that potential to foster an independent development path of their own.

    Lauren Johnston does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. US trade wars with China – and how they play out in Africa – https://theconversation.com/us-trade-wars-with-china-and-how-they-play-out-in-africa-249609

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI: Sheaff Brock Announces Return of Michelle Reddick as Portfolio Consultant

    Source: GlobeNewswire (MIL-OSI)

    INDIANAPOLIS, March 06, 2025 (GLOBE NEWSWIRE) — Michelle Reddick, a seasoned professional with 15-plus years of financial industry experience, has returned to Sheaff Brock as Vice President, Client Solutions and Portfolio Consultant.

    Sheaff Brock is a fee-only independent investment firm specializing in wealth management for high-net-worth individuals. Selected as the #7 Financial Advisor in the U.S. on CNBC’s 2024 Financial Advisor 100 List, the firm’s first priority is building and preserving clients’ wealth over time. In her Portfolio Consultant role, Michelle works closely with Sheaff Brock clients, helping with their investment needs as they strive to meet ongoing financial goals. Prior to Sheaff Brock, Michelle was a corporate trainer at Charles Schwab where she trained hundreds of stockbrokers and guided new employees through the intricacies of the financial world. She credits her ability to build connections and relate to clients to previous work experience as a public relations specialist.

    “I love talking with my clients and am passionate about helping them with their financial goals,” said Michelle of her return to Sheaff Brock. “I’m glad to reunite with Sheaff Brock and to once again partner with clients as we navigate their finances.”

    Ron Brock, Managing Partner of Sheaff Brock, said, “We’re excited to have Michelle working with her clients again. She is an exceptional part of our Sheaff Brock team.”

    Michelle Reddick—Vice President, Client Solutions and Portfolio Consultant, Sheaff Brock

    About Sheaff Brock:
    Sheaff Brock is an SEC-registered, fee-only independent investment firm striving to enhance portfolios of growth- and income-oriented investors, managing $1.4 billion in assets nationwide as of 12/31/2024. Managing Director David Gilreath contributes investment commentary to Investing.com, Think Advisor, Medical Economics, and Financial Advisor magazine.

    About CNBC Financial Advisor 100
    The 2024 CNBC Financial Advisor 100 (ranked 7th 10/2/24), 2023 CNBC Financial Advisor 100 (ranked 10th, 9/12/23), 2022 CNBC Financial Advisor 100 (ranked 68th, 10/4/22), 2021 CNBC Financial Advisor 100 (ranked 82nd, 10/6/21) & the 2020 CNBC Financial Advisor 100 (ranked 95th, 10/6/20) list is an independent ranking. CNBC enlisted data provider AccuPoint Solutions to assist with the ranking of registered investment advisors for the CNBC FA 100 list. The analysis started with 40,896 RIA firms for 2024, 40,646, RIA firms for 2023, 39,818 RIA firms for 2022, 38,302 for 2021 and 37,369 for 2020 from the Securities and Exchange Commission regulatory database. AccuPoint screened the list down to 903 RIAs for 2024, 812 RIAs for 2023, 904 RIAs for 2022, 749 for 2021, and 750 for 2020 who were required to complete a survey to be in consideration for the CNBC FA 100 list. Sheaff Brock does not pay for applying for the award; however, Sheaff Brock does pay for use of the CNBC Financial Advisor 100 logo.

    Data points used by AccuPoint for the ranking included regulatory/compliance record, number of years in the business, number of certified financial planners, number of employees, number of investment advisors registered with the firm, ratio of investment advisors to total number of employees, total assets under management, percentage of discretionary assets under management, total accounts under management, number of states where the RIA is registered and country of domicile.

    Third-party rankings and recognition from rating services or publications, such as the CNBC FA 100, is no guarantee of future investment success and working with a highly rated advisor does not ensure that a client or prospective client will experience a higher level of performance or results. The ranking may not reflect a client or prospective client’s experience with the registered investment advisor. Past performance does not guarantee or indicate future results.

    CONTACT: Barb Smith 317-289-8699

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/43ccc1be-c10d-40d4-ba8b-4df4dc1523a7

    The MIL Network

  • MIL-OSI Security: Countries unite to identify illegal fishing vessel via INTERPOL

    Source: Interpol (news and events)

    LYON, France – A joint effort by New Zealand, Australia and Norway to find a vessel suspected of illegal fishing has led to the publication of an INTERPOL Purple Notice to assist in identifying its location.

    An INTERPOL Purple Notice has been issued to find a vessel suspected of illegal fishing. Pictured is ‘Thunder’ as Wuhan N 4 in Singapore, October 2012.

    Thunder as Wuhan N 4 – bow view – Singapore October 2012

    Circulated to all 190 INTERPOL member countries the Notice, requested by New Zealand supported by the Australian Fisheries Management Authority (AFMA) and the Norwegian Directorate of Fisheries, also seeks information about the individuals and networks which own, operate and profit from the suspected illegal activities of the vessel, currently believed to be called ‘Thunder’.

    During the past two years, the vessel has operated under at least three different names and under several flags, in order to avoid detection of illegal fishing activities.

    In July 2012, Mongolian registration papers for a vessel called ‘Wuhan 4’ were issued; however in August 2012 the vessel was sighted in the North Indian Ocean under the name ‘Kuko’. In October 2012, the vessel was spotted at a Singapore shipyard under the name ‘Wuhan N 4’ and under a Mongolian flag.

    In April 2013, the same vessel requested access to a port in Malaysia under the name ‘Wuhan 4’ but when inspected a few days later in Indonesia, it was using the name ‘Thunder’ and with the Nigerian flag.

    “Thunder has been operating under a number of names and flags over several years and we believe this is being done to avoid been caught violating international laws and conventions,” said Gary Orr, Manager, Operational Coordination with New Zealand’s Ministry for Primary Industries.

    “Fisheries crime is not constrained by borders and is commonly carried out by transnational organized networks. Norway is deeply concerned about its global effects. We need an international, coordinated response to effectively tackle these networks, and I welcome the good cooperation we have established with Australia and New Zealand via INTERPOL,” said Norway’s Minister of Fisheries, Elisabeth Aspaker.

    AFMA’s Fisheries Operations General Manager Peter Venslovas said illegal fishing activities seriously undermine the sustainability of fisheries: “Ongoing cooperation between countries across the globe to combat illegal fishing is having a real impact and making it harder for these operators to make a profit.”

    It is possible that the owners of ‘Thunder’ have earned more than USD 60 million from its illegal fishing activities since it was blacklisted by the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR) in February 2006.

    The vessel is currently believed to be operating in the Southern Ocean around Antarctica where it may be fishing illegally for Patagonian toothfish, also known as Chilean Sea Bass, a highly sought after protected species.

    This is the third INTERPOL Purple Notice issued in connection with illegal fishing activities, with the first published in September this year at the request of Norwegian authorities for a vessel named ‘Snake’.

    INTERPOL’s Purple Notices are used to seek or provide information on modi operandi, objects, devices and concealment methods used by criminals.

    MIL Security OSI

  • MIL-OSI United Nations: Climate change: La Niña fades, as global heat keeps rising

    Source: United Nations MIL OSI b

    Climate and Environment

    The weak but significant La Niña weather event that began in December is likely to be brief, the World Meteorological Organization (WMO) has announced. 

    La Niña, a natural climate phenomenon, results in cooler Pacific Ocean temperatures and influences weather conditions worldwide. The latest forecasts from WMO indicate sea surface temperatures in the equatorial Pacific are expected to return to normal.  

    The agency says that there is a 60 per cent chance conditions will shift back to what scientists call an ENSO-neutral temperature range during March-May 2025, increasing to 70 per cent for April-June 2025.  

    ENSO (El Niño-Southern Oscillation)-neutral simply means the ocean is neither unusually warm (El Niño) nor unusually cool (La Niña). Likewise, the probability of El Niño developing is very low during this period, the agency said.  

    According to WMO Secretary-General Celeste Saulo, El Niño and La Niña associated forecasts are critical for early warnings and taking preemptive action.  

    “These forecasts translate into millions of dollars’ worth in economic savings for key sectors like agriculture, energy and transport, and have saved thousands of lives over the years by enabling disaster risk preparedness”.

    La Niña, with its large-scale cooling of ocean surface temperatures in the central and eastern Pacific, changes wind, pressure, and rainfall. Typically, it brings climate impacts opposite to El Niño, especially in tropical regions.  

    For instance, during El Niño, Australia often experiences drought, whereas La Niña can bring increased rainfall and flooding. In contrast, parts of South America may experience drought during La Niña but wetter conditions during El Niño.

    Bringing the heat

    Notably, these natural climate events are currently occurring alongside human-caused climate change, which is warming the planet and causing more extreme weather. According to WMO, January 2025 was the warmest January on record, despite the cooler La Niña conditions.

    The agency looks at ENSO but also issues regular Global Seasonal Climate Updates (GSCU) that provide a more comprehensive climate outlook based on other key patterns such as those in the Atlantic and Arctic. These updates also track sea temperatures, global and regional temperature and rainfall changes.

    With most maritime regions set to be warmer than normal, except in the eastern Pacific, WMO forecasts above-average temperatures across nearly all land areas worldwide during the upcoming season.

    MIL OSI United Nations News

  • MIL-OSI United Kingdom: Nuclear safeguards: AUKUS statement to the IAEA Board of Governors, March 2025

    Source: United Kingdom – Executive Government & Departments 3

    Speech

    Nuclear safeguards: AUKUS statement to the IAEA Board of Governors, March 2025

    UK Ambassador Corinne Kitsell’s statement on behalf of Australia, the UK and the US to the International Atomic Energy Agency Board of Governors meeting on IAEA safeguards and AUKUS

    Chair, 

    I take the floor on behalf of Australia, the United Kingdom, and the United States to respond to disinformation about Australia’s acquisition of a naval nuclear propulsion capability through the AUKUS partnership. We are once again compelled to invoke our Right of Reply to address remarks that purposefully mischaracterise AUKUS and attempt to undermine the independence, integrity, and authority of the IAEA.  

    I reiterate that this item has not been adopted as a standing agenda item by this Board and has never enjoyed consensus support, despite one member state’s introduction every Board. This repeated attempt to add an agenda item distracts from other pressing concerns requiring the Board’s attention and falsely implies an active compliance problem where none exists. AUKUS partners will provide an update on Australia’s acquisition of conventionally armed, nuclear-powered submarines under ‘Any Other Business’, consistent with our practice of providing updates to every regular meeting of the Board since 2021. 

    Director General Grossi has repeatedly expressed his satisfaction with AUKUS partners’ engagement and transparency and has upheld his commitment to update the Board on naval nuclear propulsion, including through his report published last November. Ever since the initial announcement of the partnership, the AUKUS partners have continued to engage consistently, openly, and transparently with Member States and the Secretariat on genuine questions. 

    Chair, 

    Under this item, the Board has repeatedly heard unsubstantiated claims that ignore or misrepresent the information we have provided in good faith, and assertions that disregard the statements made by the Director General. I would like to remind the Board that: 

    With regards to an intergovernmental dialogue, the IAEA has the clear authority under its Statute, and extensive precedent, to negotiate directly and in-confidence with individual Member States on the establishment and application of safeguards and verification arrangements. Interference would politicise the IAEA’s independence, its mandate and technical authority, and establish a deeply harmful precedent. 

    I also want to underline that the transfer of high enriched uranium from a nuclear-weapon State to a non-nuclear-weapon State does not run counter to the NPT or its spirit. The transfer of nuclear material at any enrichment level among States Parties is not prohibited by the NPT, provided the transfer is carried out in a manner consistent with any relevant safeguards obligations. Australia’s conventionally armed, nuclear-powered submarine program will be subject to a robust package of verification measures, consistent with its longstanding non-proliferation obligations. 

    Naval nuclear propulsion was indeed foreseen by the drafters of the NPT. Article 14 of the IAEA’s model Comprehensive Safeguards Agreement – on which Australia’s CSA is based – is the specific provision to support the right of states to use nuclear material in a non-proscribed military activity, including for naval nuclear propulsion, within the legal framework for safeguards implementation. 

    As we have regularly stated, under Australia’s Article 14 arrangement, the IAEA will maintain oversight of nuclear material and meet its technical safeguards objectives throughout the submarines’ lifecycle. Once the Article 14 arrangement is agreed between Australia and the IAEA Secretariat, the Director General will transmit it to the Board for ‘appropriate action’. To suggest that the Board will somehow be bypassed is false. 

    With regards to the AUKUS Naval Nuclear Propulsion Agreement, I want to underline that it reaffirms, and is consistent with, the parties’ existing non-proliferation obligations, including under the NPT. The Agreement obliges the UK and US to ensure that Australia can provide the IAEA with other information and access necessary to fulfil Australia’s obligations under its safeguards agreements with the IAEA and the future Article 14 arrangement. 

    Chair, 

    Our three countries – along with the majority of the Board – continue to oppose any proposal for this item to be a standing agenda item or any efforts that undermine and politicise the technical mandate of the IAEA. We appreciate that colleagues continue to reject deliberate attempts to undermine the Agency’s independence and integrity. 

    We will continue to engage in good faith with Member States on genuine questions. Consistent with our approach to maintaining open and transparent engagement, we will provide an update to the Board under ‘Any Other Business’ and welcome the Director General’s continued commitment to provide updates on naval nuclear propulsion, as and when he deems appropriate. 

    Thank you, Chair.

    Updates to this page

    Published 6 March 2025

    MIL OSI United Kingdom

  • MIL-OSI USA: King Introduces Bipartisan Bill to Make it Easier for Rural Veterans to Access Health Care

    US Senate News:

    Source: United States Senator for Maine Angus King
    WASHINGTON, D.C. — U.S. Senators Angus King (I-Maine), Kevin Cramer (R-N.D.), and Dan Sullivan (R-Alaska), members of the Senate Veterans’ Affairs Committee (SVAC) and Senate Armed Services Committee (SASC), are introducing legislation aiming to help veterans in rural areas get transportation to health care appointments. The Supporting Rural Veterans Access to Healthcare Services Act, would reauthorize the Highly Rural Transportation Grant (HRTG) Program, a service that provides roughly 2.7 million veterans with access to free transportation services to VA-authorized health care appointments.
    “Veterans in rural Maine communities already face challenges when it comes to accessing quality, affordable care because of distance to VA medical facilities and availability of health care workers,” said Senator King. “The bipartisan Supporting Rural Veterans Access to Healthcare Services Act would provide rural veterans with travel assistance to appointments, ensuring they can more easily and efficiently access providers and treatments. Where veterans choose to live should not impede their ability to get the care they earned and deserve. I want to thank my Veterans Affairs Committee colleagues on both sides of the aisle for their work to make sure our rural veterans get the support they need — from Maine all the way to Alaska.” 
    “North Dakota is home to many veterans who rely on transportation assistance to access their healthcare services,” said Senator Cramer. “Reauthorizing the Highly Rural Transportation Grant Program will ensure veterans can travel to their medical appointments, whether in the community or at a VA facility directly facilitating access to the care they’ve earned.”
    “Living in a small, highly-rural community far from a major metropolitan center does not justify a veteran losing or receiving limited access to the health care they have sacrificed for and earned,” said Senator Sullivan. “Transportation assistance is life-saving for Alaska’s veterans. I am glad to introduce legislation to reauthorize the Highly Rural Transportation Grant Program with Alaska-specific provisions to ensure our veterans are able to reach their VA appointments without lengthy delays or debilitating costs.” 
    The legislation is supported by Disabled American Veterans (DAV) and the Wounded Warrior Project (WWP).
    “Transportation to VA medical facilities remains a major challenge for the 2.7 million veterans who live in rural areas and are enrolled in VA care,” said Daniel Contreras, DAV National Commander. “DAV is proud to support the Supporting Veterans Access to Healthcare Services Act as it would improve rural veterans’ access to VA medical treatment. We applaud Sens. Cramer and King for their leadership in re-introducing this vital bipartisan legislation that will help ensure our nation keeps its promises to America’s veterans.”
    “Among the post-9/11 wounded, ill, and injured veterans we serve, just over half report that they have experienced some degree of difficulty accessing health care through VA,” said Jose Ramos, WWP’s Vice President for Government and Community Relations. “The Supporting Rural Veterans Access to Healthcare Services Act would help ensure that transportation to appointments is one less barrier for veterans in rural areas to be concerned about.  Wounded Warrior Project is pleased to support this legislation, and we thank Senators Cramer, King, and Sullivan for their leadership in supporting better pathways to health for our nation’s veterans.”
    Representing one of the states with the highest rates of military families and veterans per capita, Senator King has been a staunch advocate for America’s servicemembers and veterans. A member of the Senate Veterans’ Affairs Committee (SVAC), he works to ensure American veterans receive their earned benefits and that the VA is properly implementing various programs such as the PACT Act, the State Veterans Homes Domiciliary Care Flexibility Act, and the John Scott Hannon Act. Last month, in a letter to VA Secretary Doug Collins, Senator King joined his colleagues in urging for immediate action to secure veterans’ personal information provided by VA or other agencies to Elon Musk and his “Department of Government Efficiency” (DOGE), a measure that would protect millions of veterans’ medical records stored in VA’s computer systems. In addition, he helped pass the Veterans COLA Act, which increased benefits for 30,000 Maine veterans and their families. Recently, Senator King introduced bipartisan legislation alongside SVAC Chairman Senator Jerry Moran (R-KS) to improve care coordination for veterans who rely on both VA health care and Medicare. Recently, Senator King was honored by the Disabled American Veterans as its 2025 Legislator of the Year. Last year, he was recognized by the Wounded Warrior Project as the 2024 Legislator of the Year for his “outstanding legislative effort and achievement to improve the lives of the wounded, ill, and injured veterans.”

    MIL OSI USA News

  • MIL-OSI USA: Attorney General James Delivers More Than $344,000 of Baby Formula to Bronx Families

    Source: US State of New York

    EW YORK – New York Attorney General Letitia James today announced that her office secured more than $344,000 worth of baby formula from Marine Park Distribution Inc. (Marine Park) for families in the Bronx. The donation is part of the $675,000 worth of baby formula that Attorney General James secured as a result of her settlement with Marine Park and its affiliate Formula Depot Inc. (Formula Depot) for illegal price gouging during the nationwide formula shortage in 2022. An investigation by the Office of the Attorney General (OAG) found that Marine Park and Formula Depot raised prices of formula during the shortage in violation of New York’s price gouging laws. At times, Marine Park doubled the price of a can of formula, charging its customers up to $36 for a can of formula that cost $18 before the shortage. The Office of the Attorney General (OAG) will work with Roads to Success, a nonprofit in the Bronx, to distribute the formula to families in need.

    “Using a national emergency to raise prices on hardworking families who are struggling to find enough food for their children is despicable,” said Attorney General James. “Marine Park broke the law when they took advantage of a dangerous formula shortage to make even higher profits, and now they have to pay for it. Thanks to my office’s investigation, today we’re delivering essential baby formula to families in the Bronx. I thank Roads to Success for their work to distribute this formula to those in need, and I will continue to go after price gougers who try to cheat New Yorkers during a crisis.”

    “We are deeply grateful to Attorney General Letitia James and her office for their unwavering commitment to supporting families in need,” said Sheila Duke, CEO of Roads to Success. “Access to baby formula is not just a necessity, it is a lifeline for parents striving to provide for their children. At Roads to Success, we witness struggles of families facing food insecurity, and we know how critical this support is for the health and well-being of infants in our community. This generous donation will bring much-needed relief to Bronx families. We are honored to play a pivotal role in distributing these essential resources and remain committed to advocating for the well-being of the families we serve.”

    New York’s price gouging laws prohibit vendors from unconscionably increasing prices on goods that are vital to consumers’ health, safety, or welfare during market disruptions such as the 2022 formula shortage. In May 2022, Attorney General James issued warnings to more than 30 retailers across the state to stop overcharging for baby formula after consumers reported unreasonably high prices.

    Baby formula is a critical food source for the vast majority of infants across the country. Three out of four infants in the U.S. consume baby formula during the first six months of their lives. The 2022 shortage caused by a manufacturing plant closure and recall created significant hardship for families across New York as supplies dwindled and prices rose. An OAG investigation found that Marine Park, which sells baby formula to retailers, and Formula Depot, which sells to consumers online, raised prices over 60 percent more than was allowed under the law during the shortage, generating hundreds of thousands of dollars more in revenue. One consumer, who relied on Formula Depot for formula safe for babies with milk and soy allergies, bought a case of formula for $190, only to be charged $245 for the same case just a few weeks later.

    As a result of OAG’s investigation, Marine Park and Formula Depot must provide $675,000 of baby formula that Attorney General James will donate to New Yorkers in need by November 2025. In addition, the two companies are barred from future price gouging and have paid a $75,000 penalty to the state. In December 2024, Attorney General James made the first formula donation of 3,300 cans of baby formula worth about $140,000 to Foodlink in Rochester. Today’s donation will deliver 7,520 cans of powder formula and 3,510 bottles of liquid formula to families in the Bronx through Roads to Success, a nonprofit organization that runs a DYCD Cornerstone Program for youth and adults at the Boston Secor Community Center.

    Bronx residents face the highest rate of food insecurity in the state, with nearly one in three children lacking consistent access to enough food. Child poverty in the Bronx is higher than in any other county in New York, and Bronx residents use food pantries at a higher rate than residents of any other borough. The OAG’s formula donation will provide much-needed food assistance to families in need.

    “This donation provides necessary relief for Bronx families, ensuring parents don’t have to choose between feeding their children and affording other necessities,” said Senator Nathalia Fernandez. “I applaud Attorney General James for turning a bad situation into meaningful action—taking the greed of price gougers and using it to support the very people they tried to exploit.”

    “No parent should ever have to choose between feeding their child and paying their bills. The price gouging during the formula shortage was not only an exploitation of desperation but a direct attack on struggling families. Today’s victory is a testament to the power of accountability,” said Senator Robert Jackson. “I commend Attorney General James for standing firm against corporate greed and ensuring Bronx families receive the support they deserve. This donation is more than just baby formula—it’s a symbol of our unwavering commitment to economic justice, dignity, and the fundamental right of every child to be nourished and cared for.”

    “No parent should have to worry about how they will feed their child,” said Assemblymember Jeffrey Dinowitz. “This significant donation of baby formula, secured by Attorney General James, will bring vital relief to Bronx families who have faced unnecessary hardship due to price gouging. I applaud Attorney General James for holding bad actors accountable and ensuring our communities receive the support they deserve.”

    “Today’s donation of over $344,000 worth of baby formula is a vital step in ensuring that Bronx families have access to the essential resources they need,” said Bronx Borough President Vanessa L. Gibson. “We applaud Attorney General James for holding those who took advantage of vulnerable families accountable and securing these necessary goods for our community. As we continue to support families in need, we are reminded of the importance of protecting New Yorkers from unfair practices, especially during times of crisis.”

    Attorney General James has been a leader in the fight to protect New York consumers and guard against price gouging. In October 2024, Attorney General James led a multistate coalition urging congressional leaders to support a national ban on price gouging. In March and April 2024, Attorney General James distributed over 9,500 cans of baby formula in Buffalo and New York City from a settlement with Walgreens for price gouging during the formula shortage. In May 2023, Attorney General James secured a $100,000 settlement with Quality King Distributors, Inc. due to unconscionable price increases for Lysol products during the early days of the COVID-19 pandemic. In March 2023, Attorney General James announced price gouging rules to protect consumers and small businesses from corporate profiteering. The rules would strengthen enforcement of New York’s price gouging law. In April 2021, Attorney General James delivered 1.2 million eggs to food pantries throughout the state which were secured as part of an agreement with the nation’s largest egg producers for price gouging in the early months of the pandemic. 

    New Yorkers should report potential concerns about price gouging to the OAG by filing a complaint online or calling 800-771-7755.

    This matter was handled by Assistant Attorney General Benjamin C. Fishman, under the supervision of Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine, all of the Consumer Frauds and Protection Bureau. Former Data Scientist Jasmine McAllister also assisted in this matter, under the supervision of Director of Research and Analytics Victoria Khan, Deputy Director Gautam Sisodia, and former Director Megan Thorsfeldt. The Consumer Frauds and Protection Bureau is a part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and is overseen by First Deputy Attorney General Jennifer Levy.

    MIL OSI USA News

  • MIL-OSI Global: Plants struggled for millions of years after Earth’s worst climate catastrophe – new study

    Source: The Conversation – UK – By Marcos Amores, PhD Candidate in Palaeoclimatology, University College Cork

    A king fern at the Royal Botanic Garden, Sydney, Australia. Marcos Amores

    With the world on the threshold of 1.5°C of warming, one pressing question is: how bad can it get? The answer may lie beneath our feet.

    Buried underground are rocks, many rocks, and they are old. For palaeontologists like us, they are a vast archive of past life on Earth. In particular, they can tell us how life on land fared during times when the climate warmed suddenly. Our new study showed that plants were severely affected and forests took millions of years to recover.

    About 252 million years ago more than 80% of marine species became extinct. This is known as the end-Permian mass extinction, arguably the most significant climatic crisis since the earliest appearance of animals, more than 555 million years ago. It seems that the prime culprit was the massive amount of warming-inducing greenhouse gas released by volcanoes in a region known as the Siberian Traps in Russia.

    Evidence suggests that plants may not have suffered a mass extinction, but their communities were heavily affected, if not destroyed outright. While the extreme heat would have pushed plants and animals past their tolerance limits, they probably also faced deadly droughts, ozone depletion, widespread wildfires and toxic heavy metal contamination.

    Data on how plants fared following the end-Permian extinction are plentiful, but little is known about those located at higher latitudes, where it was cooler. Thriving ecosystems existed at polar latitudes back then, aided by a mostly ice-free polar region. At the end-Permian event, however, this ecosystem was entirely wiped out.

    Our work examined the rocks and fossils of the Sydney region of Australia, which was located near the south pole for at least 8 million years following the worst mass extinction in Earth’s history. These well-preserved, long-term records provide a window into the recovery of plant communities furthest away from the source of trouble.

    The long, unsteady path to recovery

    The plant fossils from these Australian rocks showed that conifers, like modern pines or cypresses, were some of the earliest to colonise the land immediately following the calamity. The recovery to flourishing forests, however, was not smooth sailing.

    We discovered that even higher temperatures 2 million years after the end-Permian event caused the collapse of these conifer survivors. In turn, they were replaced by tough, shrubby plants resembling modern clubmosses (like Isoetes). How hot it got in Sydney is not known, but this scorching period lasted for about 700,000 years and made life challenging for trees and other large plants.

    When cooling conditions finally manifested, large but unusual plants that looked like ferns but bore seeds like conifers flourished and established more stable forests in Sydney. This recovery took less than 100,000 years to happen. These plants eventually dominated the landscape for millions of years, paving the way for the lush forests during the Mesozoic age of the dinosaurs.

    So, after million of years, the forest ecosystems of the Mesozoic came to look like those from before the end-Permian event. But crucially, the plant species that made up the new forests were completely different.

    The term “recovery” can be misleading. Forests recover eventually, but extinction of individual species is forever.

    By understanding how ancient plant ecosystems weathered extreme climate swings, we, as researchers, hope to learn valuable lessons about how modern plants and ecosystems might cope (or not) with today’s climate crisis. With this knowledge, we can inform policymakers of what is yet to come, and help steer a course that will avoid the worst climate outcomes over the longest possible timeframes.

    So, fossil records add a data-driven long-term perspective to the climate choices we make today. Ecosystems depend on a fragile balance, with plants as the backbone of food webs on land and climate regulators.

    The fossils have spoken: the disruption of these systems can have consequences that last hundreds of thousands of years, so protecting today’s ecosystems is more important than ever.


    Don’t have time to read about climate change as much as you’d like?

    Get a weekly roundup in your inbox instead. Every Wednesday, The Conversation’s environment editor writes Imagine, a short email that goes a little deeper into just one climate issue. Join the 40,000+ readers who’ve subscribed so far.


    Marcos Amores receives funding from Research Ireland Centre for Applied Geosciences (grants 13/RC/2092_P2 and 17/RC-PhD/3481) and Research Ireland (grant 22/FFP-P/11448).

    Chris Mays receives funding from the Irish Centre for Research in Applied Geosciences (grant #13/RC/2092_P2) and Science Foundation Ireland (grant #22/FFP-P/11448).

    ref. Plants struggled for millions of years after Earth’s worst climate catastrophe – new study – https://theconversation.com/plants-struggled-for-millions-of-years-after-earths-worst-climate-catastrophe-new-study-251324

    MIL OSI – Global Reports

  • MIL-OSI USA: Join Us on 3/27 for a Foreign and Comparative Law Webinar: Climate-Induced Migration: Responses in the Pacific

    Source: US Global Legal Monitor

    Join us on Thursday, March 27, 2025, at 9 a.m. EDT for our next foreign, comparative, and international law webinar, “Climate-Induced Migration: Responses in the Pacific.”

    Pacific Island nations have sought to increase global awareness of the impacts of climate change in the region and have pushed for greater mitigation of emissions and financing mechanisms to assist countries in adapting to rising sea levels and ocean acidification and to enhance resilience to extreme weather events. They have also highlighted the issue of climate-induced mobility, including displacement, planned relocation, and migration, and the need for this to be considered in discussions and policies at the international level.

    Media stories have referred to low-lying islands in the Pacific as “sinking,” with the rising sea level being an “existential threat” to some countries and creating “climate refugees.” Commentators pose questions about what might happen, including under international law, if a country were to “disappear” – what happens concerning sovereignty, territorial rights, and the citizenship rights of the people? Where would the population move to and what support would be provided to do so? What status would they have in a different country or countries? How would cultures and languages be maintained?

    In our March foreign, comparative, and international law webinar, we will look at some of the responses to the climate-induced migration issue in the Pacific. In particular, in 2023, Pacific Island leaders endorsed the Pacific Regional Framework on Climate Mobility, which “recognizes the urgent need to strengthen understanding, coordination and cooperation on climate change-related human mobility; to establish adequate human rights-based response and support mechanisms for people at risk; and to adopt a pro-active and planned approach to address climate mobility and enhance Pacific resilience and well-being.” In addition, the webinar will highlight the November 2023 agreement between Australia and Tuvalu, known as the Falepili Union, which includes an undertaking from Australia to create a “special mobility pathway” for Tuvaluans, with a focus on “mobility with dignity.”

    Please register here.

    The webinar will be presented by Kelly Buchanan, the Law Library’s foreign law specialist for the Pacific region. Kelly holds an LL.B. (Hons) and bachelor of arts degrees from Victoria University of Wellington in New Zealand.


    Subscribe to In Custodia Legis – it’s free! – to receive interesting posts drawn from the Law Library of Congress’s vast collections and our staff’s expertise in U.S., foreign, and international law.

    MIL OSI USA News

  • MIL-OSI USA: U.S. International Trade in Goods and Services, January 2025

    Source: US Bureau of Economic Analysis

    The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $131.4 billion in January, up $33.3 billion from $98.1 billion in December, revised.

    U.S. International Trade in Goods and Services Deficit
    Deficit: $131.4 Billion  +34.0%°
    Exports: $269.8 Billion  +1.2%°
    Imports: $401.2 Billion  +10.0%°

    Next release: Thursday, April 3, 2025

    (°) Statistical significance is not applicable or not measurable. Data adjusted for seasonality but not price changes

    Source: U.S. Census Bureau, U.S. Bureau of Economic Analysis; U.S. International Trade in Goods and Services, March 6, 2025

    Exports, Imports, and Balance (exhibit 1)

    January exports were $269.8 billion, $3.3 billion more than December exports. January imports were $401.2 billion, $36.6 billion more than December imports.

    The January increase in the goods and services deficit reflected an increase in the goods deficit of $33.5 billion to $156.8 billion and an increase in the services surplus of $0.2 billion to $25.4 billion.

    Year-over-year, the goods and services deficit increased $64.5 billion, or 96.5 percent, from January 2024. Exports increased $10.6 billion or 4.1 percent. Imports increased $75.2 billion or 23.1 percent.

    Three-Month Moving Averages (exhibit 2)

    The average goods and services deficit increased $19.2 billion to $102.6 billion for the three months ending in January.

    • Average exports increased $1.2 billion to $270.0 billion in January.
    • Average imports increased $20.4 billion to $372.5 billion in January.

    Year-over-year, the average goods and services deficit increased $37.1 billion from the three months ending in January 2024.

    • Average exports increased $11.4 billion from January 2024.
    • Average imports increased $48.5 billion from January 2024.

    Exports (exhibits 3, 6, and 7)

    Exports of goods increased $2.7 billion to $172.8 billion in January.

      Exports of goods on a Census basis increased $2.8 billion.

    • Capital goods increased $4.2 billion.
      • Civilian aircraft increased $1.1 billion.
      • Semiconductors increased $0.7 billion.
      • Computers increased $0.5 billion.
      • Civilian aircraft engines increased $0.5 billion.
    • Consumer goods increased $1.7 billion.
      • Pharmaceutical preparations increased $0.8 billion.
      • Jewelry increased $0.6 billion.
    • Other goods decreased $1.3 billion. (See the “Notice” for more information.)
    • Foods, feeds, and beverages decreased $1.0 billion.
      • Soybeans decreased $0.8 billion.

      Net balance of payments adjustments decreased $0.1 billion.

    Exports of services increased $0.6 billion to $97.0 billion in January.

    • Financial services increased $0.2 billion.
    • Telecommunications, computer, and information services increased $0.1 billion.
    • Other business services increased $0.1 billion.
    • Transport increased $0.1 billion.
    • Maintenance and repair services increased $0.1 billion.
    • Government goods and services decreased $0.3 billion.

    Imports (exhibits 4, 6, and 8)

    Imports of goods increased $36.2 billion to $329.5 billion in January.

      Imports of goods on a Census basis increased $36.2 billion.

    • Industrial supplies and materials increased $23.1 billion.
      • Finished metal shapes increased $20.5 billion.
    • Consumer goods increased $6.0 billion.
      • Pharmaceutical preparations increased $5.2 billion.
      • Cell phones and other household goods increased $1.2 billion.
    • Capital goods increased $4.6 billion.
      • Computers increased $3.0 billion.
      • Computer accessories increased $1.2 billion.
      • Telecommunications equipment increased $1.1 billion.

      Net balance of payments adjustments decreased $0.1 billion.

    Imports of services increased $0.4 billion to $71.7 billion in January.

    • Charges for the use of intellectual property increased $0.2 billion.
    • Other business services increased $0.1 billion.
    • Travel decreased $0.1 billion.

    Real Goods in 2017 Dollars – Census Basis (exhibit 11)

    The real goods deficit increased $30.8 billion, or 27.5 percent, to $142.9 billion in January, compared to a 27.4 percent increase in the nominal deficit.

    • Real exports of goods increased $0.6 billion, or 0.4 percent, to $142.3 billion, compared to a 1.6 percent increase in nominal exports.
    • Real imports of goods increased $31.4 billion, or 12.4 percent, to $285.2 billion, compared to a 12.5 percent increase in nominal imports.

    Revisions

    Exports and imports of goods and services were revised for July through December 2024 to incorporate more comprehensive and updated quarterly and monthly data. In addition to these revisions, seasonally adjusted data for all months of 2024 were revised so that the totals of the seasonally adjusted months equal the annual totals.

    Revisions to December exports

    • Exports of goods were revised down $0.1 billion.
    • Exports of services were revised up $0.1 billion.

    Revisions to December imports

    • Imports of goods were revised up $0.2 billion.
    • Imports of services were revised down $0.6 billion.

    Goods by Selected Countries and Areas: Monthly – Census Basis (exhibit 19)

    The January figures show surpluses, in billions of dollars, with Netherlands ($4.3), South and Central America ($4.3), Belgium ($0.6), and Brazil ($0.6). Deficits were recorded, in billions of dollars, with China ($29.7), European Union ($25.5), Switzerland ($22.8), Mexico ($15.5), Ireland ($12.4), Vietnam ($11.9), Canada ($11.3), Germany ($7.6), Taiwan ($7.5), Japan ($7.4), South Korea ($5.4), India ($4.2), Italy ($3.5), Malaysia ($2.5), Australia ($2.0), Hong Kong ($1.4), France ($1.0), Singapore ($1.0), Israel ($0.6), United Kingdom ($0.5), and Saudi Arabia ($0.1).

    • The deficit with Switzerland increased $9.8 billion to $22.8 billion in January. Exports increased $0.6 billion to $1.8 billion and imports increased $10.3 billion to $24.6 billion.
    • The deficit with Ireland increased $6.2 billion to $12.4 billion in January. Exports increased less than $0.1 billion to $1.2 billion and imports increased $6.2 billion to $13.6 billion.
    • The surplus with South and Central America increased $0.7 billion to $4.3 billion in January. Exports increased $0.3 billion to $18.0 billion and imports decreased $0.5 billion to $13.7 billion.

    Goods and Services by Selected Countries and Areas: Quarterly – Balance of Payments Basis (exhibit 20)

    Statistics on trade in goods and services by country and area are only available quarterly, with a one-month lag. With this release, fourth-quarter figures are now available.

    The fourth-quarter figures show surpluses, in billions of dollars, with South and Central America ($19.1), Netherlands ($18.6), Australia ($7.1), Singapore ($7.0), Brazil ($7.0), United Kingdom ($4.9), Hong Kong ($4.3), Saudi Arabia ($3.4), and Belgium ($1.5). Deficits were recorded, in billions of dollars, with China ($68.8), Mexico ($48.0), European Union ($38.5), Vietnam ($32.7), Germany ($21.1), Taiwan ($18.9), Japan ($17.0), Switzerland ($15.7), India ($13.2), South Korea ($12.5), Italy ($11.1), Canada ($10.5), Ireland ($7.8), Malaysia ($7.4), France ($4.5), and Israel ($2.1).

    • The deficit with Switzerland increased $12.1 billion to $15.7 billion in the fourth quarter. Exports decreased $1.6 billion to $18.8 billion and imports increased $10.6 billion to $34.5 billion.
    • The deficit with India increased $3.4 billion to $13.2 billion in the fourth quarter. Exports decreased $0.2 billion to $20.6 billion and imports increased $3.2 billion to $33.8 billion.
    • The deficit with the European Union decreased $5.8 billion to $38.5 billion in the fourth quarter. Exports decreased $0.9 billion to $164.8 billion and imports decreased $6.7 billion to $203.3 billion.

    All statistics referenced are seasonally adjusted; statistics are on a balance of payments basis unless otherwise specified. Additional statistics, including not seasonally adjusted statistics and details for goods on a Census basis, are available in exhibits 1-20b of this release. For information on data sources, definitions, and revision procedures, see the explanatory notes in this release. The full release can be found at www.census.gov/foreign-trade/Press-Release/current_press_release/index.html or www.bea.gov/data/intl-trade-investment/international-trade-goods-and-services. The full schedule is available in the Census Bureau’s Economic Briefing Room at www.census.gov/economic-indicators/ or on BEA’s website at www.bea.gov/news/schedule.

    Next release: April 3, 2025, at 8:30 a.m. EDT
    U.S. International Trade in Goods and Services, February 2025

    Notice

    Impact of Canada Border Services Agency’s (CBSA) Release of CBSA Assessment and Revenue Management (CARM)

    The CBSA introduced a new accounting system (CARM) on October 21, 2024. As a result, importers in Canada have experienced delays in filing shipment information. These delays affected the compilation of statistics on U.S. exports of goods to Canada for September 2024 through January 2025, which are derived from data compiled by Canada through the United States – Canada Data Exchange. A dollar estimate of the filing backlog is included in estimates for late receipts and, following the U.S. Census Bureau’s customary practice for late receipt estimates, is included in the export end-use category “Other goods” as well as in exports to Canada. This estimate will be replaced with the actual transactions reported by the Harmonized System classification in June 2025 with the release of “U.S. International Trade in Goods and Services, Annual Revision.” Until then, please refer to the supplemental spreadsheet “CARM Exports to Canada Corrections,” which provides a breakdown of the late receipts by 1-digit end-use category for statistics through 2024. This spreadsheet will be updated as late export transactions are received to reflect reassignments from the initial “Other goods” category to the appropriate 1-digit end-use category. Any 2025 impacts will be revised in June 2026.

    If you have questions or need additional information, please contact the Census Bureau, Economic Indicators Division, International Trade Macro Analysis Branch, on 800-549-0595, option 4, or at eid.international.trade.data@census.gov.

    Upcoming Changes to the Real (Chained-Dollar) Series

    Effective with the release of the February 2025 statistics on April 3, 2025, the Census Bureau will continue to use the Bureau of Labor Statistics (BLS) U.S. Import and Export Price Indexes to calculate the chained-dollar series (exhibits 10 and 11). The BLS will be implementing changes to the indexes with the release of the February 2025 U.S. Import and Export Price Indexes on March 18, 2025. The changes to the indexes could impact the chained-dollar values. Please refer to the BLS notice for additional information on the Upcoming Change to Data Source for Import and Export Price Indexes: U.S. Bureau of Labor Statistics.

    If you have any questions or need additional information, please contact the Census Bureau, Economic Statistical Methods Division, International Trade Statistical Methods Branch, on 301-763-3080.

    Upcoming Updates to Goods and Services

    With the releases of the “U.S. International Trade in Goods and Services” report (FT-900) and the FT-900 Annual Revision on June 5, 2025, statistics on trade in goods, on both a Census basis and a balance of payments (BOP) basis, will be revised beginning with 2020 and statistics on trade in services will be revised beginning with 1999. The revised statistics for goods on a BOP basis and for services will also be included in the “U.S. International Transactions, 1st Quarter 2025 and Annual Update” report and in the international transactions interactive database, both to be released by BEA on June 24, 2025.

    Revised statistics on trade in goods will reflect:

    • Corrections and adjustments to previously published not seasonally adjusted statistics for goods on a Census basis.
    • End-use reclassifications of several commodities.
    • Recalculated seasonal and trading-day adjustments.
    • Newly available and revised source data on BOP adjustments, which are adjustments that BEA applies to goods on a Census basis to convert them to a BOP basis. See the “Goods (balance of payments basis)” section in the explanatory notes for more information.

    Revised statistics on trade in services will reflect:

    • Newly available and revised source data, primarily from BEA surveys of international services.
    • Corrections and adjustments to previously published not seasonally adjusted statistics.
    • Recalculated seasonal adjustments.
    • Revised temporal distributions of quarterly source data to monthly statistics. See the “Services” section in the explanatory notes for more information.

    A preview of BEA’s 2025 annual update of the International Transactions Accounts will be available in the Survey of Current Business in April 2025.

    If you have questions or need additional information, please contact the Census Bureau, Economic Indicators Division, International Trade Macro Analysis Branch, on (800) 549-0595, option 4, or at eid.international.trade.data@census.gov or BEA, Balance of Payments Division, at InternationalAccounts@bea.gov.

    MIL OSI USA News

  • MIL-OSI: Turtle Beach Corporation to Report Fourth Quarter & Full Year 2024 Financial Results on Thursday, March 13, 2025

    Source: GlobeNewswire (MIL-OSI)

    WHITE PLAINS, N.Y., March 06, 2025 (GLOBE NEWSWIRE) — Turtle Beach Corporation (Nasdaq: TBCH) a leading gaming headset and accessories brand, today announced it will report financial results for the fourth quarter and full year 2024 on Thursday, March 13, 2025, after the close of trading on the Nasdaq Stock Market.

    The Company will also host a conference call and audio webcast at 5:00p.m. ET / 2:00p.m. PT that same day to review the results. The call will be hosted by Cris Keirn, Chief Executive Officer, and Mark Weinswig, Chief Financial Officer.

    Conference Call Information
    The live webcast of the call will be available on the “Events & Presentations” page of the Company’s website at www.turtlebeachcorp.com. Interested individuals may also join by dialing 1-877-407-0792 or 1-201-689-8263. To avoid delays, participants are encouraged to dial into the conference call 15-minutes ahead of the scheduled start time.

    A telephone replay of the call will be available through March 27, 2025, and can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 13751064. A replay of the webcast will also be available on the investor relations website for a limited time.

    About Turtle Beach Corporation

    Turtle Beach Corporation (the “Company”) (www.turtlebeachcorp.com) is one of the world’s leading gaming accessory providers. The Company’s namesake Turtle Beach brand (www.turtlebeach.com) is known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade. Turtle Beach Corporation acquired Performance Designed Products (www.pdp.com) in 2024. Turtle Beach’s shares are traded on the Nasdaq Exchange under the symbol: TBCH.

    Cautionary Note on Forward-Looking Statements
    This press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions, or beliefs about future events. Statements containing the words “may”, “could”, “would”, “should”, “believe”, “expect”, “anticipate”, “plan”, “estimate”, “target”, “goal”, “project”, “intend” and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements are only predictions and are not guarantees of performance. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved. Forward-looking statements are based on management’s current beliefs and expectations, as well as assumptions made by, and information currently available to, management.

    While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to logistic and supply chain challenges and costs, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the Company’s other periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise.

    CONTACTS

    Investors:
    tbch@icrinc.com
    (646) 277-1285

    Public Relations & Media:
    MacLean Marshall
    Sr. Director, Global Communications
    Turtle Beach Corporation
    (858) 914-5093
    maclean.marshall@turtlebeach.com

    The MIL Network

  • MIL-OSI: Baker Hughes and Woodside Energy Announce Collaboration Framework to Develop Small-Scale Decarbonization Solution Utilizing Net Power Platform

    Source: GlobeNewswire (MIL-OSI)

    • Joint initiative to develop a lower carbon power generation technology solution specifically designed for oil and gas, heavy industries and other smaller scale applications
    • Collaboration framework focuses on assessing feasibility and scalability of Net Power’s platform and is open to other potential contributors

    HOUSTON and LONDON, March 06, 2025 (GLOBE NEWSWIRE) — Baker Hughes (NASDAQ: BKR), an energy technology company, and Woodside Energy (ASX: WDS; NYSE: WDS), a leading Australian energy company, announced Thursday a joint initiative to develop a lower carbon power generation technology solution utilizing the Net Power (NSYE: NPWR) platform that is specifically designed for oil and gas (including LNG), heavy industries and other smaller scale applications.

    Building on their 2022 Memorandum of Understanding (MoU), which aimed to advance the decarbonization of the natural gas supply chain, Baker Hughes and Woodside have now signed a Technology Development Agreement (TDA), to develop the small-scale Net Power platform. The patented Net Power platform works by utilizing natural gas to generate affordable power while inherently capturing nearly all carbon dioxide (CO2) emissions.

    Baker Hughes and Woodside aim to bring other development partners into the program to tailor the concept to the continuously evolving requirements of different captive power generation segments.

    Through the TDA, the program will also focus on assessing feasibility and industrial market scalability of Net Power’s platform.

    Baker Hughes is the exclusive provider of the small-scale application of the Net Power platform, and the TDA will benefit from the development and testing currently ongoing both at Net Power’s La Porte, Texas, demonstration facility and the company’s planned first utility-scale power plant near Midland, Texas.

    “We are excited to continue our collaboration with Baker Hughes and leverage their leading-edge technology and our combined engineering and CCUS capabilities to explore and develop lower-carbon emissions alternative power solutions using Net Power’s platform,” said Woodside Executive Vice President Technical and Energy Development Julie Fallon. “This agreement further strengthens our long-standing relationship across the natural gas value chain and our shared journey in the energy transition.”

    “Baker Hughes is committed to providing innovative solutions that support the decarbonization of the energy and industrial sectors, and we are honored to share this journey with our long-standing customer Woodside Energy,” said Alessandro Bresciani, senior vice president of Climate Technology Solutions at Baker Hughes. “We believe this framework represents the partnerships and collaborations necessary to develop and scale the energy solutions that support decarbonization while also meeting the world’s growing energy demand.”

    “Net Power applauds the enhanced collaboration between Woodside and our partner Baker Hughes. This work has the potential to bring our technology platform to a broader array of end markets and applications, complementing our utility-scale program and strategy,” said Danny Rice, chief executive officer of Net Power. “Today’s announcement is a tangible commitment to continue technology innovation and market development for the Net Power platform and to bring ultra-low emissions energy solutions to a power-hungry world.”

    About Baker Hughes
    Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

    About Woodside Energy
    Woodside is a global energy company founded in Australia, providing reliable and affordable energy to help people lead better lives.

    For more information, please contact:

    Baker Hughes Media Relations
    Chiara Toniato
    +39 3463823419
    chiara.toniato@bakerhughes.com 

    Woodside Energy Media Relations
    Rob Young
    +1 281-790-2805
    robert.young@woodside.com

    Baker Hughes Investor Relations
    Chase Mulvehill
    +1 346-297-2561
    investor.relations@bakerhughes.com

    The MIL Network

  • MIL-OSI: Regula Increases Its Global User Base by 52% Amid Rising Identity Verification Demands

    Source: GlobeNewswire (MIL-OSI)

    RESTON, Va., March 06, 2025 (GLOBE NEWSWIRE) — Regula, a global developer of forensic devices and identity verification (IDV) solutions, is now providing advanced IDV software technologies to 152 million online users worldwide. This new milestone marks an impressive growth of 52% compared to the previous year. Among the main drivers of wider IDV adoption, Regula points out the rising need for advanced anti-fraud solutions, regulatory shifts, and digital transformation initiatives.

    Countries with the most notable Regula’s client base increase, as up to the beginning of 2025

    The increasing adoption of Regula’s document and biometric verification solutions highlights a growing demand for secure and user-friendly IDV workflows in key sectors, including finance, e-commerce, government services, travel, and more. This strong year-to-year growth demonstrates that businesses are proactively adapting to the rapidly changing ID verification landscape with Regula’s complete IDV solution, which includes document authenticity checks, biometric verification, liveness detection, and deepfake prevention.

    Regional highlights

    From stricter KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations in North America and Europe to erupting digital identity initiatives in Asia to booming fintech services in Latin America and the Middle East, identity verification is becoming an essential part of digital interactions. Here’s how different markets are driving Regula’s IDV adoption growth.

    North America

    • Key drivers: Rising fraud incidents and threats (according to Regula’s survey,* 96% of US businesses faced identity fraud in 2024) plus regulatory pressure.
    • Country highlight: The US (+55%) – Increased adoption of AI-driven fraud prevention and stronger authentication in financial services and e-commerce.

    Europe

    • Key drivers: Stricter regulations (GDPR, AMLD), the European Digital Identity Wallet initiative, and fintech expansion.
    • Country highlights:
      • The UK (+122%) – Post-Brexit compliance shifts and growth in digital banking.
      • Germany (+123%) – Strong data privacy laws and high demand for authenticity checks in digital scenarios.

    META (Middle East, Türkiye, and Africa)

    • Key drivers: Digital government initiatives, fintech growth, and a push for AI-driven security.
    • Country highlight: The UAE (+112%) – Rapid adoption of digital identity verification solutions due to its ambitions to become a leader in AI, fintech, and smart city innovations.

    APAC (Asia Pacific)

    • Key drivers: Booming digital payments, financial inclusion efforts, and strong government support for digital identity solutions.
    • Country highlights:
      • Singapore (+102%) – A financial hub with widespread digital banking and government-backed digital ID systems like Singpass.
      • Australia (+188%) – AML regulations and age verification initiatives.

    Latin America

    • Key drivers: Explosive fintech growth, mobile banking expansion, and high fraud rates requiring stronger ID verification techniques.
    • Country highlights:
      • Mexico (+156%) – Rapid adoption of digital payments and financial services.
      • Colombia (+241%) – The fastest-growing market, driven by fintech expansion and government-led digital ID initiatives.

    “The growth across these markets is a direct response to regulatory developments, digital transformation efforts, and the increasing sophistication of fraud – all the factors that make identity verification paramount. As businesses and governments worldwide accelerate their adoption of digital solutions, they face the complex challenge of ensuring security and compliance while maintaining a low-effort user experience. Additionally, the ever-rising cyber and identity fraud threats have made advanced IDV not just a regulatory requirement but a fundamental business necessity. By leveraging our decades-long expertise in forensic level document and biometric verification, we deliver comprehensive, future-proof solutions and help our customers build secure and user-friendly IDV workflows,” says Henry Patishman, Executive VP of Identity Verification Solutions at Regula.

    No compromise on security, efficiency, or compliance

    To help businesses and government institutions fight identity fraud effectively, Regula offers a complete IDV solution, comprising Regula Document Reader SDK and Regula Face SDK. This on-premise software performs extensive document and biometric authenticity checks, enables data cross-validation to spot discrepancies that might indicate fraud, and ensures sensitive personal data privacy.

    With more than 14,800 identity document templates from 251 countries and territories, Regula provides businesses with the industry’s most comprehensive ID template database. This asset allows for accurate identity verification regardless of the provided document, which is especially important for financial institutions, travel companies, and global businesses.

    Regula’s ID verification software is fully compatible with most third-party document readers, allowing organizations to adopt advanced offline ID verification without investing in new hardware.

    Also, Regula’s IDV technologies are inherently future-ready, supporting emerging standards such as ISO/IEC 39794-5 for biometric passport verification and Digital Travel Credentials (DTCs) aimed at streamlining travel and border crossing.

    Regula’s hardware and software solutions are trusted by more than 1,000 organizations all over the world. Among them:

    • UBS, the world’s largest private bank, has implemented a robust customer onboarding system powered by Regula’s comprehensive ID verification technologies.
    • Checkport, a Swiss aviation security provider, utilizes Regula’s identity verification solutions to enhance passenger screening and security protocols.
    • Pearson VUE, a global leader in online testing, relies on Regula to authenticate candidate identities for high-stakes remote exams.

    To learn more about Regula’s technologies and offerings, please visit Regula’s website.

    *The research was initiated by Regula and conducted by Sapio Research in August 2024 using an online survey of 575 business decision-makers across the Financial Services (including Traditional Banking and Fintech), Crypto, Technology, Telecommunications, Aviation, Healthcare, and Law Enforcement sectors. The respondent geography included Germany, Mexico, the UAE, the US, and Singapore. Find more insights on deepfake fraud in the survey report.

    About Regula

    Regula is a global developer of forensic devices and identity verification solutions. With our 30+ years of experience in forensic research and the most comprehensive library of document templates in the world, we create breakthrough technologies for document and biometric verification. Our hardware and software solutions allow over 1,000 organizations and 80 border control authorities globally to provide top-notch client service without compromising safety, security, or speed. Regula has been repeatedly named a Representative Vendor in the Gartner® Market Guide for Identity Verification.

    Learn more at www.regulaforensics.com.

    Contact:
    Kristina – ks@regulaforensics.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/47df2109-e416-4f49-a77f-7a950ba1d8c1

    The MIL Network

  • MIL-OSI United Kingdom: Advanced attack drones for Ukraine in new deal struck by UK government and Anduril UK

    Source: United Kingdom – Executive Government & Departments

    Press release

    Advanced attack drones for Ukraine in new deal struck by UK government and Anduril UK

    Ukraine’s armed forces will be backed by more advanced attack drones to tackle Russian aggression in the Black Sea, following a deal struck by the UK government and an Anglo-American defence tech company.

    Defence Secretary John Healey visits Anduril in Washington DC

    • The deal with Anduril UK has been agreed ahead of the Defence Secretary’s meeting with his US counterpart Pete Hegseth at the Pentagon today.
    • During his visit to Washington D.C., John Healey MP met with staff at Anduril’s facility.
    • The UK continues to work with allies to put Ukraine in the strongest position for peace as it continues to defend itself against Russian aggression.

    Defence Secretary John Healey MP visited Anduril, the firm supplying the drones, in Washington D.C. ahead of a meeting with his US counterpart Pete Hegseth at the Pentagon today.

    The deal follows a meeting of world leaders in London last week, when the Prime Minister and allies agreed it was essential that military support continues for Ukraine to put the country in the strongest possible position for peace as it continues to defend itself from Russian aggression.

    The new contracts, totalling nearly £30 million and backed by the International Fund for Ukraine, will result in Anduril UK supplying cutting-edge Altius 600m and Altius 700m drones – known as loitering munitions – that are designed to monitor an area before striking targets that enter it.

    The Defence Secretary visited Anduril yesterday, where he spoke with a number of American and British staff. Founded in California, Anduril continues to invest significantly in the UK with a large footprint across the country and plans to rapidly scale, in line with the Government’s commitment to keeping the nation safe while providing highly skilled jobs.

    Securing a lasting peace in Ukraine and strengthening bonds between NATO allies set to top the agenda when the Defence Secretary meets with his US counterpart today.

    The visit follows Prime Minister Keir Starmer meeting the US President last week, and John Healey MP will hail the unparalleled depth of the UK’s special relationship with the US – the UK’s closest security ally – as both nations continue to collaborate to bolster security and support economic growth. 

    The meeting follows the recent decision by the UK Government to raise defence spending to 2.5% of GDP by April 2027 – the biggest sustained uplift since the Cold War. National security is a foundation of our Plan for Change, and the Prime Minister and Defence Secretary have said that Europe needs to take a greater responsibility for its security, and that defence can be an engine for economic growth.

    Defence Secretary, John Healey MP, said:

    We are determined to achieve a secure, lasting peace in Ukraine, which means putting Ukraine in the strongest possible position to prevent any return to Russian aggression.

    The UK has already provided more than 10,000 drones to Ukraine’s Armed Forces, which have proved vital in disrupting Russian troop advances and targeting positions behind the frontline.

    With a £2.26 billion loan from seized Russian assets, plus £1.6 billion worth of air defence missiles announced for Ukraine in the last week, the UK is continuing to show leadership in securing a lasting peace for Ukraine.

    The work with Anduril UK been led by Defence Equipment & Support – the procurement arm of the MOD – on behalf of the UK-administered International Fund for Ukraine (IFU). The fund now stands at more than £1.3 billion worth of pledges from 10 other countries, of which the UK has contributed £500 million. 

    Ukraine’s armed forces will take delivery of the drones, launchers and spare parts over the coming months. 

    Dr Rich Drake, MD of Anduril UK and Europe said:

    Anduril UK is proud to partner with the UK Government, working hand in glove to deliver vital capabilities for the UK and its Allies. Our focus on developing and deploying technology where and when it’s needed is at the core of everything we do – from the rapid delivery of Altius to Ukraine to the expansion of our presence here in the UK. We look forward to strengthening our partnership with the Ministry of Defence to protect our nation and our allies.

    In January, it was announced that 30,000 drones will be sent to Ukraine by the international Drone Capability Coalition, co-led by the UK and Latvia.

    Since July 2024, the Government has provided over £5.26 billion in military aid and financial support to Ukraine, including a £3 billion annual military aid and a £2.26 billion loan for military spending.

    The British and US Armed Forces operate in close alignment around the world, from the long-standing global coalition to combat Daesh in the Middle East to joint maritime security patrols in the Indo-Pacific. 

    The Defence Secretary’s visit to Washington D.C. comes as the UK receives the last of an order of 50 of the latest generation AH-64E attack helicopters for the British Army, the most advanced attack helicopter in the world. The helicopter was handed over this week at the Boeing site in Arizona under a programme that supports more than 300 UK jobs, helping to grow the UK economy – underscoring defence as an engine for driving economic growth. 

    The visit also comes at the conclusion of the 50th occurrence of Exercise Red Flag in Nevada, a joint exercise with the UK, United States and Australia. The training is designed to test equally matched air forces in a realistic combat scenario and involves more than 3,000 military personnel in high-intensity training, such as dogfighting, air-policing and practicing bombing runs, at Nellis Air Force Base.

    Updates to this page

    Published 6 March 2025

    MIL OSI United Kingdom

  • MIL-OSI: Smart Share Global Limited Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    POIs1operated through network partner model reached 96.8% as of the end of the third quarter of 2024
    Cumulative registered users2reached 430.2 million as of the end of the third quarter of 2024

    SHANGHAI, March 06, 2025 (GLOBE NEWSWIRE) — Smart Share Global Limited (Nasdaq: EM) (“Energy Monster” or the “Company”), a consumer tech company providing mobile device charging service, today announced its unaudited financial results for the quarter ended September 30, 2024.

    HIGHLIGHTS FOR THE THIRD QUARTER OF 2024

    • As of September 30, 2024, the Company’s services were available in 1,274 thousand POIs, compared with 1,267 thousand as of June 30, 2024.
    • As of September 30, 2024, the Company’s available-for-use power banks3 were 9.5 million.
    • As of September 30, 2024, cumulative registered users reached 430.2 million, with 13.1 million newly registered users acquired during the quarter.
    • Mobile device charging orders4 for the third quarter of 2024 was 148.1 million, compared with 176.5 million for the third quarter of 2023.
    • As of September 30, 2024, 96.8% of POIs were operated under our network partner model, compared with 89.2% as of June 30, 2024.
    • During the third quarter of 2024, the Company successfully completed its transition to the network partners model, accompanied by a retrospective review of the network partner model throughout the transition period.

    FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2024
    Revenues were RMB490.8 million (US$69.9 million5) for the third quarter of 2024, representing a 20.0% decrease from the same period in 2023. The decrease was primarily due to the decrease in revenues generated under the direct model as part of the Company’s overall strategy of shifting towards the network partner model.

    • Mobile device charging revenues, which consist of revenues generated under both the direct and network partner models, decreased by 34.8% to RMB367.9 million (US$52.4 million) for the third quarter of 2024, from RMB564.2 million in the same period of 2023.
      • Revenues generated under the network partner model, comprising of (i) mobile device charging solution fees, which increased by 12.2% year-over-year to RMB65.9 million, and (ii) power bank, cabinet and other related sales, which increased by 10.3% year-over-year to RMB243.9 million, increased by 10.7% to RMB309.8 million for the third quarter of 2024, from RMB280.0 million in the same period of 2023. The increase was primarily due to the increase in the number of POIs operated under the network partner model as part of the Company’s overall strategy of shifting towards the network partner model.
      • Revenues generated under the direct model, comprising of mobile device charging service fees of RMB57.1 million and power bank sales of RMB0.9 million, decreased by 79.6% to RMB58.0 million for the third quarter of 2024, from RMB284.2 million in the same period of 2023. The decrease was primarily due to the decrease in the number of POIs operated under the direct model as part of the Company’s overall strategy of shifting towards the network partner model.
    • Other revenues, which primarily comprise of revenues from new business initiatives and advertising services, increased by 149.4% to RMB122.9 million (US$17.5 million) for the third quarter of 2024, from RMB49.3 million in the same period of 2023. The increase was primarily attributable to new business initiatives.

    Cost of revenues increased by 38.5% to RMB298.4 million (US$42.5 million) for the third quarter of 2024, from RMB215.5 million in the same period last year. The increase was primarily due to the increase in cost in association with the increase in new business initiatives and cost of cabinet sold.

    Research and development expenses decreased by 15.8% to RMB20.0 million (US$2.9 million) for the third quarter of 2024, from RMB23.8 million in the same period last year. The decrease was primarily due to the decrease in personnel related expenses.

    Sales and marketing expenses decreased by 51.8% to RMB142.6 million (US$20.3 million) for the third quarter of 2024 from RMB296.0 million in the same period last year. The decrease was primarily due to the decrease in incentive fees paid to location partners under the direct model and personnel related expenses.

    General and administrative expenses increased by 10.0% to RMB41.6 million (US$5.9 million) for the third quarter of 2024, compared to RMB37.8 million in the same period last year. The increase was primarily due to the increase in reserve for doubtful accounts in relation to the increasing contribution of the network partner model.

    Loss from operations for the third quarter of 2024 was RMB5.1 million (US$0.7 million), compared to an income from operations of RMB33.4 million in the same period last year.

    Net income for the third quarter of 2024 was RMB4.2 million (US$0.6 million), compared to a net income of RMB49.0 million in the same period last year.

    Non-GAAP adjusted net income for the third quarter of 2024 was RMB9.2 million (US$1.3 million), compared to a non-GAAP adjusted net income of RMB54.2 million in the same period last year.

    Net income attributable to ordinary shareholders for the third quarter of 2024 was RMB4.2 million (US$0.6 million), compared to a net income attributable to ordinary shareholders of RMB49.0 million in the same period last year.

    As of September 30, 2024, the Company had cash and cash equivalents, restricted cash and short-term investments of RMB3.0 billion (US$432.0 million). 

    SUPPLEMENTAL INFORMATION
    The table below sets forth the breakdown of mobile device charging revenue components based on the latest classification for the periods indicated:

      2023Q3   2024Q2   2024Q3
      thousands RMB   thousands RMB   thousands RMB
               
    Mobile device charging:          
    Network Partner Model 279,960   292,505   309,837
    Mobile device charging solution 58,759   61,508   65,935
    Power bank, cabinet and other related sales 221,201   230,997   243,902
    Direct Model 284,233   118,105   58,048
    Mobile device charging service 278,099   115,863   57,113
    Power bank sales 6,134   2,242   935
    Total mobile device charging 564,193   410,610   367,885
               

    CORRECTIONS OF PREVIOUSLY ANNOUNCED INTERIM FINANCIAL INFORMATION AND PREVIOUSLY ISSUED FINANCIAL STATEMENTS
    In connection with the preparation of its unaudited financial results for the three months ended September 30, 2024, the Company discovered prior period errors in the accrual for tax surcharges and related interest expenses, accruals for commissions to location partners and related balances, the impairment of prepayments to location partners and the expected credit losses on deposits to location partners and accounts receivable due from network partners. Accordingly, the Company determined to disclose the correction of previously announced interim financial information and previously issued financial statements for the related errors in this current report on Form 6-K. None of the errors had a material impact on previously issued annual financial statements filed on Form 20-F. The section “Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements” sets forth the specific corrections made to previously announced interim financial information and previously issued financial statements.

    ABOUT SMART SHARE GLOBAL LIMITED
    Smart Share Global Limited (Nasdaq: EM), or Energy Monster, is a consumer tech company with the mission to energize everyday life. The Company is a leading provider of mobile device charging service in China with an extensive network of partners powered by its own advanced service platform. The Company provides mobile device charging service through its shared power banks, which are placed in POIs such as entertainment venues, restaurants, shopping centers, hotels, transportation hubs and public spaces. Users may access the service by scanning the QR codes on Energy Monster’s cabinets to release the power banks. As of September 30, 2024, the Company had 13,000 network partners and 9.5 million power banks in 1,274,000 POIs across more than 2,100 counties and county-level districts in China.

    CONTACT US
    Investor Relations
    Hansen Shi
    ir@enmonster.com

    SAFE HARBOR STATEMENT
    This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as the Company’s strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission (“SEC”), in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Energy Monster’s strategies; its future business development, financial condition and results of operations; the impact of technological advancements on the pricing of and demand for its services; competition in the mobile device charging service industry; Chinese governmental policies and regulations affecting the mobile device charging service industry; changes in its revenues, costs or expenditures; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

    NON-GAAP FINANCIAL MEASURE
    In evaluating its business, the Company considers and uses non-GAAP adjusted net income in reviewing and assessing its operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company presents this non-GAAP financial measure because it is used by management to evaluate operating performance and formulate business plans. The Company believes that this non-GAAP financial measure helps identify underlying trends in its business, provide further information about its results of operations, and enhance the overall understanding of its past performance and future prospects.

    Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP and have limitations as analytical tools. The Company’s non-GAAP financial measure does not reflect all items of expenses that affect its operations and does not represent the residual cash flow available for discretionary expenditures. Further, the Company’s non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. The Company compensates for these limitations by reconciling its non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating performance. Investors and others are encouraged to review the Company’s financial information in its entirety and not rely on a single financial measure.

    The Company defines non-GAAP adjusted net income as net income excluding share-based compensation expenses. For more information on the non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

    Smart Share Global Limited
    Unaudited Consolidated Balance Sheets
    (In thousands, except for share and per share data, unless otherwise noted)
                 
        December 31, 2023   September 30, 2024   September 30, 2024
    RMB RMB US$
         
    ASSETS            
    Current assets:            
    Cash and cash equivalents   588,644     256,963     36,617  
    Restricted cash   173,246     114,291     16,286  
    Short-term investments   2,541,889     2,640,281     376,237  
    Accounts receivable, net   268,743     338,646     48,257  
    Inventory   106,530     162,508     23,157  
    Prepayments and other current assets   339,251     401,626     57,232  
                 
    Total current assets   4,018,303     3,914,315     557,786  
                 
    Non-current assets:            
    Long-term restricted cash   20,000     20,000     2,850  
    Property, equipment and software, net   322,806     190,720     27,177  
    Right-of-use assets, net   16,353     9,010     1,284  
    Other non-current assets   20,469     6,759     963  
    Deferred tax assets, net   22,165     1,252     178  
                 
    Total non-current assets   401,793     227,741     32,452  
                 
    Total assets   4,420,096     4,142,056     590,238  
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY            
    Current liabilities:            
    Accounts and notes payable   767,669     577,508     82,295  
    Salary and welfare payable   143,653     133,204     18,981  
    Taxes payable   230,763     207,414     29,556  
    Current portion of lease liabilities   7,399     3,585     511  
    Accruals and other current liabilities   336,959     352,341     50,209  
                 
    Total current liabilities   1,486,443     1,274,052     181,552  
                 
    Non-current liabilities:            
    Non-current lease liabilities   7,641     5,090     725  
    Amounts due to related parties-non-current   1,000     1,000     142  
    Other non-current liabilities   195,585     215,780     30,748  
                 
    Total non-current liabilities   204,226     221,870     31,615  
                 
    Total liabilities   1,690,669     1,495,922     213,167  
                 
    SHAREHOLDERS’ EQUITY            
    Ordinary shares   347     347     49  
    Treasury stock   (5,549 )   (45,964 )   (6,549 )
    Additional paid-in capital   11,791,570     11,748,257     1,674,113  
    Statutory reserves   16,593     16,593     2,364  
    Accumulated other comprehensive income   182,824     168,951     24,075  
    Accumulated deficit   (9,256,358 )   (9,242,050 )   (1,316,981 )
                 
    Total shareholders’ equity   2,729,427     2,646,134     377,071  
                 
    Total liabilities and shareholders’ equity   4,420,096     4,142,056     590,238  
                 
    Smart Share Global Limited
    Unaudited Consolidated Statements of Comprehensive Income/ (Loss)
    (In thousands, except for share and per share data, unless otherwise noted)
                             
        Three months ended September 30,   Nine months ended September 30,
        2023   2024   2023   2024
        RMB   RMB   US$   RMB   RMB   US$
                    As corrected*        
    Revenues:                        
    Mobile device charging   564,193     367,885     52,423     2,403,516     1,156,571     164,810  
    Others   49,273     122,898     17,513     68,511     194,341     27,693  
                             
    Total revenues   613,466     490,783     69,936     2,472,027     1,350,912     192,503  
                             
    Cost of revenues   (215,461 )   (298,396 )   (42,521 )   (1,014,390 )   (685,733 )   (97,716 )
    Research and development expenses   (23,799 )   (20,042 )   (2,856 )   (63,894 )   (60,528 )   (8,625 )
    Sales and marketing expenses   (295,990 )   (142,614 )   (20,322 )   (1,258,883 )   (523,545 )   (74,605 )
    General and administrative expenses   (37,777 )   (41,563 )   (5,923 )   (96,535 )   (108,511 )   (15,463 )
    Other operating (loss)/income   (7,023 )   6,763     964     (17,033 )   (4,030 )   (574 )
                             
    Income/(loss) from operations   33,416     (5,069 )   (722 )   21,292     (31,435 )   (4,480 )
                             
    Interest and investment income   32,160     27,919     3,978     86,450     87,262     12,435  
    Interest expense to third parties               (4,228 )        
    Foreign exchange loss, net   4,299     5,700     812     (8,210 )   2,597     370  
    Other (loss)/income, net   (16 )   19     3     (27 )   87     12  
                             
    Income before income tax expense   69,859     28,569     4,071     95,277     58,511     8,337  
                             
    Income tax expense   (20,849 )   (24,323 )   (3,466 )   (20,231 )   (44,203 )   (6,299 )
                             
    Net income   49,010     4,246     605     75,046     14,308     2,038  
                             
    Net income attributable to ordinary shareholders of Smart Share Global Limited   49,010     4,246     605     75,046     14,308     2,038  
                             
    Other comprehensive (loss)/income                        
    Foreign currency translation adjustments, net of nil tax   (12,332 )   (22,136 )   (3,154 )   38,090     (13,873 )   (1,977 )
                             
    Total comprehensive income/(loss)   36,678     (17,890 )   (2,549 )   113,136     435     61  
                             
    Comprehensive income/(loss) attributable to ordinary shareholders of Smart Share Global Limited   36,678     (17,890 )   (2,549 )   113,136     435     61  
                             
    Weighted average number of ordinary shares used in computing net income per share                        
    – basic   520,075,932     507,084,501     507,084,501     519,795,778     512,825,904     512,825,904  
    – diluted   520,075,932     512,101,780     512,101,780     519,795,778     517,894,151     517,894,151  
                             
    Net income per share attributable to ordinary shareholders                        
    – basic   0.09     0.01     0.00     0.14     0.03     0.00  
    – diluted   0.09     0.01     0.00     0.14     0.03     0.00  
                             
    Net income per ADS attributable to ordinary shareholders                        
    – basic   0.19     0.02     0.00     0.29     0.06     0.01  
    – diluted   0.19     0.02     0.00     0.29     0.06     0.01  
                             
    *The corrections as detailed in the section “Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements” were material to the previously announced unaudited consolidated financial information of the Company for the nine months ended September 30, 2023.
                                         

    Corrections of Previously Announced Interim Financial Information and Previously Issued Financial Statements

    In connection with the preparation of its unaudited financial results for the three months ended September 30, 2024, the Company discovered prior period errors in the accrual for tax surcharges and related interest expenses, accruals for commissions to location partners and related balances, the impairment of prepayments to location partners and the expected credit losses on deposits to location partners and accounts receivable due from network partners. Accordingly, the Company determined to disclose the correction of previously announced interim financial information and previously issued financial statements for the related errors in this current report on Form 6-K. None of the errors had a material impact on previously issued annual financial statements filed on Form 20-F.

    The Company is still in the process of assessing the control implications in connection with the identified errors. The Company has previously concluded that it had two material weaknesses in internal control over financial reporting, including (i) the Company’s lack of sufficient competent financial reporting and accounting personnel with appropriate understanding of accounting principles generally accepted in the United States of America, or U.S. GAAP, to address complex U.S. GAAP technical accounting issues and to prepare and review its consolidated financial statements, including disclosure notes, in accordance with U.S. GAAP and financial reporting requirements set forth by the SEC, and (ii) the Company’s lack of period end financial closing policies and procedures for preparation of consolidated financial statements, including disclosure notes, which are in compliance with U.S. GAAP and the SEC’s reporting and disclosure requirements. As a result of the errors identified, the Company could identify additional material weaknesses as part of finalizing its analysis related to its annual report process.

    The Company assessed the effects of the corrections in previously announced interim financial information and previously issued financial statements for the prior periods affected and determined that they were material to the unaudited consolidated balance sheets as of March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024 and the unaudited consolidated statements of comprehensive income/(loss) for the three months ended March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024, for the six months ended June 30, 2023 and June 30, 2024 and for the nine months ended September 30, 2023, where the corrected amounts are labelled as “As corrected” in the following tables, but are not material to any of the other prior interim financial information or annual financial statements of the Company, where the corrected amounts are labelled as “As revised” in the following tables.

    The following tables present the aggregated impact of the corrections to the financial information for the prior periods. The previously issued consolidated financial statements as of December 31, 2022 and 2023 and for the years then ended will be revised when they are presented in the Company’s Form 20-F for the year ended December 31, 2024.

      Year ended December 31, 2021    
      As Previously Reported   Corrections   As revised   Error #
          (Amounts in thousands of RMB)  
                   
    Sales and marketing expenses (2,950,972 )   (3,457 )   (2,954,429 )   2>, 3>
    General and administrative expenses (118,973 )   (1,847 )   (120,820 )   3>
    Loss from operations (108,999 )   (5,304 )   (114,303 )    
    Loss before income tax expense (124,615 )   (5,304 )   (129,919 )    
    Net loss (124,615 )   (5,304 )   (129,919 )    
    Net loss attributable to ordinary shareholders (4,958,370 )   (5,304 )   (4,963,674 )    
    Total comprehensive loss (274,882 )   (5,304 )   (280,186 )    
    Net loss per share attributable to ordinary shareholders              
    – basic and diluted (12.20 )   (0.01 )   (12.21 )    
    Net loss per ADS attributable to ordinary shareholders              
    – basic and diluted (24.40 )   (0.02 )   (24.42 )    
    Adjusted net loss (non-GAAP) (93,904 )   (5,304 )   (99,208 )    
                   
      Three months ended March 31, 2022   Three months ended June 30, 2022   Three months ended September 30, 2022   Three months ended December 31, 2022    
      As Previously Reported   Corrections   As revised   As Previously Reported   Corrections   As revised   As Previously Reported   Corrections   As revised   As Previously Reported   Corrections   As revised   Error #
      (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
     
                                                       
    Cost of revenues (127,553 )   (398 )   (127,951 )   (162,869 )   (3,885 )   (166,754 )   (125,548 )   (6,545 )   (132,093 )   (140,953 )   (5,484 )   (146,437 )   1>
    Sales and marketing expenses (659,679 )   (919 )   (660,598 )   (664,918 )   (2,318 )   (667,236 )   (752,534 )   (325 )   (752,859 )   (635,199 )   760     (634,439 )   2>, 3>
    General and administrative expenses (27,376 )   (145 )   (27,521 )   (28,458 )   (199 )   (28,657 )   (29,421 )   (212 )   (29,633 )   (27,148 )   (812 )   (27,960 )   3>
    Other operating income/(loss) 5,277         5,277     (1,565 )   (821 )   (2,386 )   19,846     (1,287 )   18,559     (10,682 )   (796 )   (11,478 )   1>
    Loss from operations (99,316 )   (1,462 )   (100,778 )   (191,028 )   (7,223 )   (198,251 )   (96,974 )   (8,369 )   (105,343 )   (233,927 )   (6,332 )   (240,259 )    
    Loss before income tax expense (96,411 )   (1,462 )   (97,873 )   (184,527 )   (7,223 )   (191,750 )   (95,754 )   (8,369 )   (104,123 )   (220,072 )   (6,332 )   (226,404 )    
    Income tax expense     365     365         1,131     1,131         1,372     1,372     (114,476 )   1,005     (113,471 )   All
    Net loss (96,411 )   (1,097 )   (97,508 )   (184,527 )   (6,092 )   (190,619 )   (95,754 )   (6,997 )   (102,751 )   (334,548 )   (5,327 )   (339,875 )    
    Net loss attributable to ordinary shareholders (96,411 )   (1,097 )   (97,508 )   (184,527 )   (6,092 )   (190,619 )   (95,754 )   (6,997 )   (102,751 )   (334,548 )   (5,327 )   (339,875 )    
    Total comprehensive loss (102,246 )   (1,097 )   (103,343 )   (108,881 )   (6,092 )   (114,973 )   (21,459 )   (6,997 )   (28,456 )   (366,282 )   (5,327 )   (371,609 )    
    Net loss per share attributable to ordinary shareholders                                                  
    – basic and diluted (0.20 )   0.01     (0.19 )   (0.36 )   (0.01 )   (0.37 )   (0.18 )   (0.02 )   (0.20 )   (0.64 )   (0.02 )   (0.66 )    
    Net loss per ADS attributable to ordinary shareholders                                                  
    – basic and diluted (0.40 )   0.02     (0.38 )   (0.72 )   (0.02 )   (0.74 )   (0.36 )   (0.04 )   (0.40 )   (1.28 )   (0.03 )   (1.31 )    
    Adjusted net loss (non-GAAP) (89,695 )   (1,097 )   (90,792 )   (177,491 )   (6,092 )   (183,583 )   (88,638 )   (6,997 )   (95,635 )   (327,171 )   (5,327 )   (332,498 )    
                                                       
      Six months ended June 30, 2022   Nine months ended September 30, 2022   Year ended December 31, 2022    
      As Previously Reported   Corrections   As revised   As Previously Reported   Corrections   As revised   As Previously Reported   Corrections   As revised   Error #
      (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
     
                                           
    Cost of revenues (290,422 )   (4,283 )   (294,705 )   (415,970 )   (10,828 )   (426,798 )   (556,923 )   (16,312 )   (573,235 )   1>
    Sales and marketing expenses (1,324,597 )   (3,237 )   (1,327,834 )   (2,077,131 )   (3,562 )   (2,080,693 )   (2,712,330 )   (2,802 )   (2,715,132 )   2>,  3>
    General and administrative expenses (55,834 )   (344 )   (56,178 )   (85,255 )   (556 )   (85,811 )   (112,403 )   (1,368 )   (113,771 )   3>
    Other operating income 3,712     (821 )   2,891     23,558     (2,108 )   21,450     12,876     (2,904 )   9,972     1>
    Loss from operations (290,344 )   (8,685 )   (299,029 )   (387,318 )   (17,054 )   (404,372 )   (621,245 )   (23,386 )   (644,631 )    
    Loss before income tax expense (280,938 )   (8,685 )   (289,623 )   (376,692 )   (17,054 )   (393,746 )   (596,764 )   (23,386 )   (620,150 )    
    Income tax expense     1,496     1,496         2,868     2,868     (114,476 )   3,873     (110,603 )   All
    Net loss (280,938 )   (7,189 )   (288,127 )   (376,692 )   (14,186 )   (390,878 )   (711,240 )   (19,513 )   (730,753 )    
    Net loss attributable to ordinary shareholders (280,938 )   (7,189 )   (288,127 )   (376,692 )   (14,186 )   (390,878 )   (711,240 )   (19,513 )   (730,753 )    
    Total comprehensive loss (211,127 )   (7,189 )   (218,316 )   (232,586 )   (14,186 )   (246,772 )   (598,868 )   (19,513 )   (618,381 )    
    Net loss per share attributable to ordinary shareholders                                      
    – basic and diluted (0.54 )   (0.02 )   (0.56 )   (0.73 )   (0.02 )   (0.75 )   (1.37 )   (0.04 )   (1.41 )    
    Net loss per ADS attributable to ordinary shareholders                                      
    – basic and diluted (1.08 )   (0.04 )   (1.12 )   (1.46 )   (0.04 )   (1.50 )   (2.74 )   (0.08 )   (2.82 )    
    Adjusted net loss (non-GAAP) (267,186 )   (7,189 )   (274,375 )   (355,824 )   (14,186 )   (370,010 )   (682,995 )   (19,513 )   (702,508 )    
                                           
        Three months ended March 31, 2023   Three months ended June 30, 2023   Three months ended September 30, 2023   Three months ended December 31, 2023    
        As Previously Reported   Corrections   As corrected*   As Previously Reported   Corrections   As corrected*   As Previously Reported   Corrections   As revised   As Previously Reported   Corrections   As corrected*   Error #
        (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
     
                                                         
    Cost of revenues   (127,389 )   (1,355 )   (128,744 )   (668,547 )   (1,638 )   (670,185 )   (214,817 )   (644 )   (215,461 )   (198,711 )   6,910     (191,801 )   1>
    Sales and marketing expenses   (665,274 )   (1,253 )   (666,527 )   (295,150 )   (1,216 )   (296,366 )   (298,216 )   2,226     (295,990 )   (248,792 )   1,075     (247,717 )   2>, 3>
    General and administrative expenses   (26,771 )   (450 )   (27,221 )   (31,117 )   (420 )   (31,537 )   (37,094 )   (683 )   (37,777 )   (30,546 )   (955 )   (31,501 )   3>
    Other operating income/(loss)   2,268     (2,305 )   (37 )   (8,703 )   (1,270 )   (9,973 )   (5,532 )   (1,491 )   (7,023 )   (13,860 )   4,985     (8,875 )   1>
    (Loss)/income from operations   (15,775 )   (5,363 )   (21,138 )   13,558     (4,544 )   9,014     34,008     (592 )   33,416     (32,856 )   12,015     (20,841 )    
    Income before income tax expense   10,810     (5,363 )   5,447     24,515     (4,544 )   19,971     70,451     (592 )   69,859     2,986     12,015     15,001      
    Income tax expense       227     227         391     391     (20,442 )   (407 )   (20,849 )   (579 )   (724 )   (1,303 )   All
    Net income   10,810     (5,136 )   5,674     24,515     (4,153 )   20,362     50,009     (999 )   49,010     2,407     11,291     13,698      
    Net income attributable to ordinary shareholders   10,810     (5,136 )   5,674     24,515     (4,153 )   20,362     50,009     (999 )   49,010     2,407     11,291     13,698      
    Total comprehensive (loss)/income   (7,257 )   (5,136 )   (12,393 )   93,004     (4,153 )   88,851     37,677     (999 )   36,678     (16,787 )   11,291     (5,496 )    
    Net income per share attributable to ordinary shareholders                                                    
    – basic and diluted   0.02     (0.01 )   0.01     0.05     (0.01 )   0.04     0.10     (0.01 )   0.09     0.00     0.03     0.03      
    Net income per ADS attributable to ordinary shareholders                                                    
    – basic and diluted   0.04     (0.02 )   0.02     0.10     (0.02 )   0.08     0.20     (0.01 )   0.19     0.00     0.05     0.05      
    Adjusted net income (non-GAAP)   17,095     (5,136 )   11,959     30,055     (4,153 )   25,902     55,214     (999 )   54,215     5,716     11,291     17,007      
      Six months ended June 30, 2023   Nine months ended September 30, 2023   Year ended December 31, 2023    
      As Previously Reported   Corrections   As corrected*   As Previously Reported   Corrections   As corrected*   As Previously Reported   Corrections   As revised   Error #
      (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
     
                                           
    Cost of revenues (795,936 )   (2,993 )   (798,929 )   (1,010,753 )   (3,637 )   (1,014,390 )   (1,209,464 )   3,273     (1,206,191 )   1>
    Sales and marketing expenses (960,424 )   (2,469 )   (962,893 )   (1,258,640 )   (243 )   (1,258,883 )   (1,507,432 )   832     (1,506,600 )   2>, 3>
    General and administrative expenses (57,888 )   (870 )   (58,758 )   (94,982 )   (1,553 )   (96,535 )   (125,528 )   (2,508 )   (128,036 )   3>
    Other operating loss (6,435 )   (3,575 )   (10,010 )   (11,967 )   (5,066 )   (17,033 )   (25,827 )   (81 )   (25,908 )   1>
    (Loss)/income from operations (2,217 )   (9,907 )   (12,124 )   31,791     (10,499 )   21,292     (1,065 )   1,516     451      
    Income before income tax expense 35,325     (9,907 )   25,418     105,776     (10,499 )   95,277     108,762     1,516     110,278      
    Income tax expense     618     618     (20,442 )   211     (20,231 )   (21,021 )   (513 )   (21,534 )   All
    Net income 35,325     (9,289 )   26,036     85,334     (10,288 )   75,046     87,741     1,003     88,744      
    Net income attributable to ordinary shareholders 35,325     (9,289 )   26,036     85,334     (10,288 )   75,046     87,741     1,003     88,744      
    Total comprehensive income 85,747     (9,289 )   76,458     123,424     (10,288 )   113,136     106,637     1,003     107,640      
    Net income per share attributable to ordinary shareholders                                      
    – basic and diluted 0.07     (0.02 )   0.05     0.16     (0.02 )   0.14     0.17     0.00     0.17      
    Net income per ADS attributable to ordinary shareholders                                      
    – basic and diluted 0.14     (0.04 )   0.10     0.32     (0.03 )   0.29     0.34     0.00     0.34      
    Adjusted net income (non-GAAP) 47,150     (9,289 )   37,861     102,364     (10,288 )   92,076     108,080     1,003     109,083      
                                           
      Three months ended March 31, 2024   Three months ended June 30, 2024   Six months ended June 30, 2024    
      As Previously Reported   Corrections   As corrected*   As Previously Reported   Corrections   As corrected*   As Previously Reported   Corrections   As corrected*   Error #
      (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
     
                                           
    Cost of revenues (167,737 )       (167,737 )   (219,600 )       (219,600 )   (387,337 )       (387,337 )   1>
    Sales and marketing expenses (204,494 )   2,082     (202,412 )   (180,949 )   2,430     (178,519 )   (385,443 )   4,512     (380,931 )   2>, 3>
    General and administrative expenses (26,584 )   (986 )   (27,570 )   (39,450 )   72     (39,378 )   (66,034 )   (914 )   (66,948 )   3>
    Other operating loss (1,474 )   (593 )   (2,067 )   (8,133 )   (593 )   (8,726 )   (9,607 )   (1,186 )   (10,793 )   1>
    Loss from operations (22,757 )   503     (22,254 )   (6,021 )   1,909     (4,112 )   (28,778 )   2,412     (26,366 )    
    Income before income tax expense 7,339     503     7,842     20,191     1,909     22,100     27,530     2,412     29,942      
    Income tax expense (7,688 )   (354 )   (8,042 )   (11,013 )   (825 )   (11,838 )   (18,701 )   (1,179 )   (19,880 )   All
    Net (loss)/income (349 )   149     (200 )   9,178     1,084     10,262     8,829     1,233     10,062      
    Net (loss)/income attributable to ordinary shareholders (349 )   149     (200 )   9,178     1,084     10,262     8,829     1,233     10,062      
    Total comprehensive income 2,013     149     2,162     15,079     1,084     16,163     17,092     1,233     18,325      
    Net (loss)/ income per share attributable to ordinary shareholders                                      
    – basic and diluted (0.00 )   0.00     (0.00 )   0.02     0.00     0.02     0.02     0.00     0.02      
    Net (loss)/ income per ADS attributable to ordinary shareholders                                      
    – basic and diluted (0.00 )   0.00     (0.00 )   0.04     0.00     0.04     0.03     0.01     0.04      
    Adjusted net income (non-GAAP) 3,834     149     3,983     15,212     1,084     16,296     19,046     1,233     20,279      
                                           
      As of March 31, 2022   As of June 30, 2022   As of September 30, 2022    
      As Previously Reported   Corrections   As revised   As Previously Reported   Corrections   As revised   As Previously Reported   Corrections   As revised   Error #
      (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
     
                                           
    Accounts receivable, net 11,616         11,616     16,729         16,729     13,862         13,862     3>
    Prepayments and other current assets 396,431     5,399     401,830     408,906     2,406     411,312     365,891     (51 )   365,840     2>, 3>
    Total current assets 3,158,544     5,399     3,163,943     3,296,072     2,406     3,298,478     3,473,368     (51 )   3,473,317      
    Deferred tax assets                                      
    Other non-current assets 143,384     (317 )   143,067     114,696     (317 )   114,379     75,356     (319 )   75,037     3>
    Total non-current assets 1,085,178     (317 )   1,084,861     1,011,567     (317 )   1,011,250     970,140     (319 )   969,821      
    Total assets 4,243,722     5,082     4,248,804     4,307,639     2,089     4,309,728     4,443,508     (370 )   4,443,138      
    Accounts and notes payable 533,924     11,866     545,790     691,115     11,391     702,506     796,380     9,469     805,849     2>
    Tax payable 8,373     33     8,406     33,048     3,607     36,655     93,077     10,067     103,144     All
    Current Liabilities 992,753     11,899     1,004,652     1,176,270     14,998     1,191,268     1,336,208     19,536     1,355,744      
    Total liabilities 1,120,470     11,899     1,132,369     1,290,251     14,998     1,305,249     1,441,126     19,536     1,460,662      
    Accumulated deficit (8,704,399 )   (6,817 )   (8,711,216 )   (8,888,927 )   (12,909 )   (8,901,836 )   (8,984,680 )   (19,906 )   (9,004,586 )   All
    Total shareholders’ equity 3,123,252     (6,817 )   3,116,435     3,017,388     (12,909 )   3,004,479     3,002,382     (19,906 )   2,982,476      
    Total liabilities and shareholders’ equity 4,243,722     5,082     4,248,804     4,307,639     2,089     4,309,728     4,443,508     (370 )   4,443,138      
                                           
                                           
      As of March 31, 2023   As of June 30, 2023   As of September 30, 2023    
      As Previously Reported   Corrections   As corrected*   As Previously Reported   Corrections   As corrected*   As Previously Reported   Corrections   As corrected*   Error #
      (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
     
                                           
    Accounts receivable, net 17,203         17,203     243,068     (29 )   243,039     243,771     (524 )   243,247     3>
    Prepayments and other current assets 302,793     (4,234 )   298,559     401,716     (6,548 )   395,168     349,793     (4,368 )   345,425     2>, 3>
    Total current assets 3,420,919     (4,234 )   3,416,685     3,916,080     (6,577 )   3,909,503     3,991,784     (4,892 )   3,986,892      
    Deferred tax assets 30,986     3,873     34,859     30,986     3,873     34,859     23,070     3,873     26,943     All
    Other non-current assets 28,683     (703 )   27,980     19,402     (1,058 )   18,344     19,630     (1,150 )   18,480     3>
    Total non-current assets 978,630     3,170     981,800     391,352     2,815     394,167     419,466     2,723     422,189      
    Total assets 4,399,549     (1,064 )   4,398,485     4,307,432     (3,762 )   4,303,670     4,411,250     (2,169 )   4,409,081      
    Accounts and notes payable 909,320     6,656     915,976     688,213     5,594     693,807     794,811     5,644     800,455     2>
    Tax payable 169,452     22,649     192,101     262,152     25,166     287,318     215,253     27,708     242,961     All
    Current Liabilities 1,543,809     29,305     1,573,114     1,382,863     30,760     1,413,623     1,444,630     33,352     1,477,982      
    Total liabilities 1,766,006     29,305     1,795,311     1,579,012     30,760     1,609,772     1,642,733     33,352     1,676,085      
    Accumulated deficit (9,309,059 )   (30,369 )   (9,339,428 )   (9,284,544 )   (34,522 )   (9,319,066 )   (9,234,535 )   (35,521 )   (9,270,056 )   All
    Total shareholders’ equity 2,633,543     (30,369 )   2,603,174     2,728,420     (34,522 )   2,693,898     2,768,517     (35,521 )   2,732,996      
    Total liabilities and shareholders’ equity 4,399,549     (1,064 )   4,398,485     4,307,432     (3,762 )   4,303,670     4,411,250     (2,169 )   4,409,081      
                                           
      As of December 31, 2021   As of December 31, 2022   As of December 31, 2023    
      As Previously Reported   Corrections   As revised   As Previously Reported   Corrections   As revised   As Previously Reported   Corrections   As revised   Error #
      (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
     
                                           
    Accounts receivable, net 14,881         14,881     16,482         16,482     269,736     (993 )   268,743     3>
    Prepayments and other current assets 487,540     11,180     498,720     228,672     (2,209 )   226,463     345,744     (6,493 )   339,251     2>, 3>
    Total current assets 3,247,732     11,180     3,258,912     3,300,784     (2,209 )   3,298,575     4,025,789     (7,486 )   4,018,303      
    Deferred tax assets             30,986     3,873     34,859     18,804     3,361     22,165     All
    Other non-current assets 164,986     (317 )   164,669     35,898     (634 )   35,264     21,621     (1,152 )   20,469     3>
    Total non-current assets 1,150,249     (317 )   1,149,932     986,857     3,239     990,096     399,584     2,209     401,793      
    Total assets 4,397,981     10,863     4,408,844     4,287,641     1,030     4,288,671     4,425,373     (5,277 )   4,420,096      
    Accounts and notes payable 551,751     16,583     568,334     810,197     7,048     817,245     764,741     2,928     767,669     2>
    Tax payable 10,195         10,195     147,367     19,215     166,582     214,738     16,025     230,763     All
    Current Liabilities 1,028,365     16,583     1,044,948     1,422,878     26,263     1,449,141     1,467,490     18,953     1,486,443      
    Total liabilities 1,165,957     16,583     1,182,540     1,646,336     26,263     1,672,599     1,671,716     18,953     1,690,669      
    Accumulated deficit (8,607,989 )   (5,720 )   (8,613,709 )   (9,319,229 )   (25,233 )   (9,344,462 )   (9,232,128 )   (24,230 )   (9,256,358 )   All
    Total shareholders’ equity 3,232,024     (5,720 )   3,226,304     2,641,305     (25,233 )   2,616,072     2,753,657     (24,230 )   2,729,427      
    Total liabilities and shareholders’ equity 4,397,981     10,863     4,408,844     4,287,641     1,030     4,288,671     4,425,373     (5,277 )   4,420,096      
      As of March 31, 2024   As of June 30, 2024    
      As Previously Reported   Corrections   As corrected*   As Previously Reported   Corrections   As corrected*   Error #
      (Amounts in thousands of RMB)
    (Amounts in thousands of RMB)
     
                               
    Accounts receivable, net 278,690     (1,626 )   277,064     300,853     (1,292 )   299,561     3>
    Prepayments and other current assets 380,314     (8,120 )   372,194     327,539     (10,115 )   317,424     2>, 3>
    Total current assets 4,047,143     (9,746 )   4,037,397     3,968,175     (11,407 )   3,956,768      
    Deferred tax assets 18,804     3,360     22,164     18,804     3,360     22,164     All
    Other non-current assets 20,081     (1,368 )   18,713     16,592     (1,391 )   15,201     3>
    Total non-current assets 354,770     1,992     356,762     304,324     1,969     306,293      
    Total assets 4,401,913     (7,754 )   4,394,159     4,272,499     (9,438 )   4,263,061      
    Accounts and notes payable 726,011     (644 )   725,367     699,504     (4,830 )   694,674     2>
    Tax payable 213,999     16,971     230,970     213,000     18,389     231,389     All
    Current Liabilities 1,494,455     16,327     1,510,782     1,374,535     13,559     1,388,094      
    Total liabilities 1,702,971     16,327     1,719,298     1,588,426     13,559     1,601,985      
    Accumulated deficit (9,232,477 )   (24,081 )   (9,256,558 )   (9,223,299 )   (22,997 )   (9,246,296 )   All
    Total shareholders’ equity 2,698,942     (24,081 )   2,674,861     2,684,073     (22,997 )   2,661,076      
    Total liabilities and shareholders’ equity 4,401,913     (7,754 )   4,394,159     4,272,499     (9,438 )   4,263,061      
                               
    * The corrections were material to the unaudited consolidated balance sheets as of March 31, 2023, June 30, 2023, September 30, 2023, March 31, 2024 and June 30, 2024 and the unaudited consolidated statements of comprehensive income/(loss) for the three months ended March 31, 2023, June 30, 2023, December 31, 2023, March 31, 2024 and June 30, 2024, for the six months ended June 30, 2023 and June 30, 2024 and for the nine months ended September 30, 2023.
                               

    Note:

    1> Understatements of accrual for tax surcharges and related interest expenses

    Upon the final settlement of the Company’s underpaid VAT, which was recorded in prior periods, and surcharges, which was not recorded in prior periods, with the relevant tax authorities for its mobile device charging revenue in 2024, the Company determined that the unrecorded surcharges and interest expenses related to the surcharges should have been recorded in the same prior periods that the provision for underpaid VAT was recorded. As a result, the Company has determined to correct the accrual for tax surcharges and related interest expenses in prior periods such that cost of revenues, other operating loss, tax payable and accumulated deficit are corrected.

    2> Misstatements of accruals for commissions to location partners and related balances

    The accounts payable balances due to location partners under the direct model contained certain entries in relation to the commissions to location partners that were duplicative or incomplete in prior periods. Certain debit balances in accounts payable should have been reclassified to prepayments and subjected to impairment as of prior period ends. In connection therewith, the Company has determined to correct the commissions paid to locations partners and related balances for certain prior periods such that sales and marketing expenses, accounts and notes payable, prepayments and other current assets and accumulated deficit are corrected.

    3> Understatements of impairment of prepayments to location partners and expected credit losses of deposits to location partners and accounts receivable due from network partners

    The different risk characteristics of the prepayments to location partners with invalid or expired contracts, the deposits to location partners under the direct model with expired or invalid contracts and the accounts receivable due from network partners that were deregistered or dissolved were inadequately considered in the impairment assessments of such assets as of prior period ends. In connection therewith, the Company has determined to correct the impairment of prepayments to locations partners and the provision for the expected credit losses of deposits to location partners and accounts receivable due from network partners in prior periods such that sales and marketing expenses, general and administrative expenses, accounts receivable, net, prepayments and other current assets, other non-current assets and accumulated deficit are corrected.

    Smart Share Global Limited
    Unaudited Reconciliation of GAAP and Non-GAAP Results
    (In thousands, except for share and per share data, unless otherwise noted)
                           
      Three months ended September 30,   Nine months ended September 30,
      2023   2024   2023   2024
      RMB   RMB   US$   RMB   RMB   US$
                  As corrected*        
    Net income 49,010   4,246   605   75,046   14,308   2,038
    Add:                      
    Share-based compensation 5,205   4,979   710   17,030   15,196   2,165
    Less:                      
    Adjusted for tax effects          
                           
    Adjusted net income (non-GAAP) 54,215   9,225   1,315   92,076   29,504   4,203
                           

    _____________________________

    1 The Company defines number of points of interests, or POIs, as of a certain date as the total number of unique locations whose proprietors (location partners) have entered into contracts with the Company or its network partners on that date and have at least one cabinet assigned to the location.

    2 The Company defines cumulative registered users as the total number of users who have agreed to register their mobile phone numbers with the Company via its mini programs since inception, and the number of cumulative registered users of the Company on a certain date is the number of unique mobile phone numbers that have been registered with the Company since inception on that date.

    3 The Company defines available-for-use power banks as of a certain date as the number of power banks in circulation on that day.

    4 The Company defines mobile device charging orders for a given period as the total number of completed orders placed by registered users of the mobile device charging business under both the direct and network partner models in that given period, without any adjustment for orders that may qualify for discounts or incentives.

    5 The U.S. dollar (US$) amounts disclosed in this press release, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this press release is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of September 30, 2024, which was RMB7.0176 to US$1.0000. The percentages stated in this press release are calculated based on the RMB amounts.

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