Category: Business

  • MIL-OSI Global: New research shows bigger animals get more cancer, defying decades-old belief

    Source: The Conversation – UK – By Joanna Baker, Postdoctoral Researcher in Evolutionary Biology, University of Reading

    It’s not just size that matters. The speed of evolution can affect a species’ cancer prevalence too. Eric Isselee/Shutterstock

    A longstanding scientific belief about a link between cancer prevalence and animal body size has tested for the first time in our new study ranging across hundreds of animal species.

    If larger animals have more cells, and cancer comes from cells going rogue, then the largest animals on earth – like elephants and whales – should be riddled with tumours. Yet, for decades, there has been little evidence to support this idea.

    Many species seem to defy this expectation entirely. For example, budgies are notorious among pet owners for being prone to renal cancer despite weighing only 35g. Yet cancer only accounts for around 2% of mortality among roe deer (up to 35kg).

    Peto’s paradox is that bigger, longer-lived species should have higher cancer prevalence, yet they don’t seem to. Back in 1977, Professor Sir Richard Peto noted that, on a cell-by-cell basis, mice seem to have much higher susceptibility to cancer than humans. This has led to speculation that larger species must have evolved natural cancer defences.

    Several examples of these cancer defences have since been identified. For example, Asian elephants, a species with notably low cancer prevalence, have over 20 copies of a tumour suppressor gene (TP53) compared to our own lone copy. However, scientists are yet to find broader evidence across a range of animal species.




    Read more:
    Baleen whales are among the biggest creatures on Earth – science is revealing new secrets about their size


    Our new study challenges Peto’s paradox. We used a recently compiled dataset of cancer prevalence in over 260 species of amphibians, birds, mammals and reptiles from wildlife institutions. Then, using powerful modern statistical techniques, we compared cancer prevalence between the animals.

    Large species have a much greater risk of getting cancer (solid line), but faster evolution rates reduce that risk (dashed line).
    Jo Baker and George Butler, CC BY-NC-ND

    We found that larger species do, in fact, have more cancer compared to smaller ones. This holds across all four major vertebrate groups, meaning that the traditional interpretation of Peto’s paradox doesn’t hold up. But the story doesn’t end there.

    At first look, our findings seemed to be at odds with another long-standing scientific idea. Cope’s rule is that evolution has repeatedly favoured larger body sizes, because of advantages like improved predation and resilience. But why would natural selection drive species towards a trait that carries an inherent risk of cancer?

    The answer lies in how quickly body size evolves. We found that birds and mammals which reached large sizes more rapidly have reduced cancer prevalence. For example, the common dolphin, Delphinus delphis evolved to reach its large body size – along with most other whales and dolphins (referred to as cetaceans) about three times faster than other mammals. However, cetaceans tend to have less cancer than expected.

    Larger species face higher cancer risks but those that reached that size rapidly evolved mechanisms for mitigating it, such as lower mutation rates or enhanced DNA repair mechanisms. So rather than contradicting Cope’s rule, our findings refine it.

    Larger bodies often evolve, but not as quickly in groups where the burden of cancer is higher. This means that the threat of cancer may have shaped the pace of evolution.

    Common dolphins evolved rapidly.
    DesiDrewPhotography/Shutterstock

    Humans evolved to our current body size relatively rapidly. Based on this, we would expect humans and bats to have similar cancer prevalence, because we evolved at a much, much faster rate. However, it is important to note that our results can’t explain the actual prevalence of cancer in humans. Nor is that an easy statistic to estimate.

    Human cancer is a complicated story to unravel, with a plethora of types and many factors affecting its prevalence. For example, many humans not only have access to modern medicine but also varied lifestyles that affect cancer risk. For this reason, we did not include humans in our analysis.

    Fighting cancer

    Understanding how species naturally evolve cancer defences has important implications for human medicine. The naked mole rat, for example, is studied for its exceptionally low cancer prevalence in the hopes of uncovering new ways to prevent or treat cancer in humans. Only a few cancer cases have ever been observed in captive mole rats so, the exact mechanisms of their cancer resistance remain mostly a mystery.

    At the same time, our findings raise new questions. Although birds and mammals that evolved quickly seem to have stronger anti-cancer mechanisms, amphibians and reptiles didn’t show the same pattern. Larger species had higher cancer prevalence regardless of how quickly they evolved. This could be due to differences in their regenerative abilities. Some amphibians, like salamanders, can regenerate entire limbs – a process that involves lots of cell division, which cancer could exploit.

    Putting cancer into an evolutionary context allowed us to reveal that its prevalence does increase with body size. Studying this evolutionary arms race may unlock new insights into how nature fights cancer – and how we might do the same.

    George Butler receives funding from the Prostate Cancer Foundation and the US Department of Defense CDMRP/PCRP (HT9425-23-1-0157).

    Joanna Baker 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. New research shows bigger animals get more cancer, defying decades-old belief – https://theconversation.com/new-research-shows-bigger-animals-get-more-cancer-defying-decades-old-belief-251287

    MIL OSI – Global Reports

  • MIL-OSI USA: At Hearing, Trump’s Deputy Treasury Secretary Nominee Admits Republicans’ “Magic Math” Won’t Pay for Billionaire Tax Cuts

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    March 06, 2025
    Warren: “Congressional Republicans want to use ‘magic math’ to pass giant tax cuts, and then try to tell the American people those tax cuts cost nothing.”
    Video of Exchange (YouTube) 
    Washington, D.C. – At a hearing of the Senate Finance Committee, U.S. Senator Elizabeth Warren (D-Mass.) questioned Dr. Michael Faulkender, President Trump’s nominee for Deputy Secretary of the Treasury, on Republicans’ “magic math” for their plans to cut taxes for the ultra-wealthy. Republican leaders are increasingly supportive of using a “current policy baseline” for their tax package to hide the true cost of their proposed $4.6 trillion tax package.
    Congress’ independent scorekeepers have historically scored legislation using a “current law baseline,” which assumes that temporary tax cuts will expire and that extending those tax cuts will cost money. A current policy baseline, on the other hand, assumes that temporary tax cuts will not expire and that extending those tax cuts will cost $0. When pressed by Senator Warren on whether this gimmick actually produces additional revenue, Dr. Faulkender admitted, “I can’t imagine that it would.”
    Last month, Senator Warren sent a letter to the nonpartisan Joint Committee on Taxation (JCT), which provides Members of Congress with revenue estimates for tax legislation. She pressed for answers on whether JCT has ever used a “current policy baseline” for official scoring purposes on the Senate floor, among other questions, to set the record straight on Republicans’ “magic math.”
    Ahead of his nomination hearing before the Senate Finance Committee, Senator Warren also sent a 32-page letter to Dr. Faulkender, pressing him to explain his views on his potential Treasury responsibilities.
    Transcript: Hearing to examine the nomination of Michael Faulkender, of Maryland, to be Deputy Secretary of the TreasurySenate Finance CommitteeMarch 6, 2025 
    Senator Elizabeth Warren: Thank you very much, Mr. Chairman. So, President Trump had exactly one big legislative accomplishment in his first term: a giant tax cut for millionaires, billionaires, and massive corporations. In fact, it was so giant that a big hunk of it lasted only eight years and still cost $2 trillion. Now, the eight years are up, so Republicans want to do another tax cut for the ultra-wealthy, which Congress’ non-partisan budget scorers say is going to cost $4.6 trillion this time. Now, Congressional Republicans say they care about the deficit, so they have a plan to fix things up: repeal math. Here’s their story: because they already had eight years of tax cuts that ran up the debt, Congressional Republicans claim that 10 more years of tax cuts will be free. They named this gimmick the ‘current policy baseline.’ They should have named it “magic math.” It is so nuts that when we need to figure out the cost of tax cuts, the Senate has never, never switched to it over using real math. 
    Now, Dr. Faulkender, if confirmed, you will play a role in whatever tax deal the Republicans put together. So let’s talk about math,“magic math” and real math. Dr. Faulkender, does renaming tax cuts produce any additional revenue?
    Michael Faulkender, Deputy Secretary-Designate, U.S. Department of the Treasury: Does renaming them–
    Senator Warren: Yes, calling them something different. Does that produce any additional revenue?
    Dr. Faulkender: I don’t think renaming something changes—if it changes behavior, it has the potential to change revenues.
    Senator Warren: Wait, so, are you saying renaming tax cuts produces additional revenue? Just renaming it?
    Dr. Faulkender: I can’t imagine that it would, unless it causes people to behave differently. 
    Senator Warren: Okay, I’ll take that as no. Fair enough? Claiming that somehow losing $4.6 trillion in tax revenues is free is just plain nuts. Congressional Republicans are hoping they can fool people long enough to deliver giveaways to their wealthy donors before anyone figures it out. But at the end of the day, Republicans cannot repeal math. A bunch of tax cuts for billionaires will cost $4.6 trillion.
    But congressional Republicans don’t like that answer. So, I’m wondering, if they love magic math so much, I want to ask the same question in reverse. If the Republicans’ idea of magically not counting the cost of tax cuts for billionaires makes sense, what about not counting the cost of tax cuts for ordinary people? That is, for extending the Child Tax Credit? 
    Dr. Faulkender, according to Republicans’ magic math, if extending the tax cuts is free, shouldn’t extending a temporary expansion of the Child Tax Credit also be free?
    Dr. Faulkender: Thank you, Senator. The Tax Cuts and Jobs Act increased the child tax credit from $1,000 to $2,000, and so if we allow that tax cut to expire, it would mean that the child tax credit would go back to the $1,000. 
    Senator Warren: Right. So, the question I’m asking is, using Republican “magic math,” if it is free to extend tax cuts for billionaires, isn’t it also free to extend tax cuts for poor kids? 
    Dr. Faulkender: Senator, I’m not familiar with magic math, but what I do know is that the American people look at the current tax code, what they paid last year and what they paid this year as the current environment. So, the question is, when we talk about extending it, I would argue that extending the TCJA is making sure that the American people don’t incur a $4.5 trillion tax increase.
    Senator Warren: So, you do think that renaming the tax cuts will produce $4.5 trillion in revenue? 
    Dr. Faulkender: No, Senator, I didn’t say that it had any impact on the bottom line deficit. I’m just saying when you ask me what a baseline is, to me, the baseline is what I’m currently doing.
    Senator Warren: I’m not asking you that. I’m asking you what it costs to put in $4.5 trillion in tax cuts. Look, if Republican “magic math” works, then why not extend it to everything we spend money on? How about the money we spent last year on roads and bridges or child care subsidies and the workers who process Social Security checks? Of course not. No one is going to do that. 
    Congressional Republicans want to use “magic math” to pass giant tax cuts, and then try to tell the American people those tax cuts cost nothing. Hard-working Americans understand that $4.6 trillion for a billionaire tax cut is not free. Congressional Republicans are trying to sell magic math so they can help billionaires, and fortunately, the American people are just not buying that. 

    MIL OSI USA News

  • MIL-OSI Russia: Transcript of COM Regular Press Briefing, March 6, 2025

    Source: IMF – News in Russian

    March 6, 2025

    SPEAKER:  Ms. Julie Kozack, Director of the Communications Department, IMF

     *  *  *  *  *

    MS. KOZACK: Good morning, everyone, and welcome to this IMF press briefing. It is very good to see you all, both those of you who are here in person and, of course, our colleagues online as well.

    I am Julie Kozak, Director of the Communications Department. As usual, this briefing is embargoed until 11 a.m. Eastern Time in the U.S. I will start with a short announcement and then take your questions in person on Webex and via the Press Center. 

    The 2025 Spring Meetings of the IMF and World Bank Group will take place from Monday, April 21 through Saturday, April 26. Press registration to attend the spring meetings in person in Washington D.C. is now open and you can register through www.IMFconnect.org. 

    And with that, I will now open the floor for your questions. For those connecting virtually, please turn on both your camera and microphone when speaking. And with that, over to you. 

    QUESTIONER: If the Congress does not approve the future agreement, as it is established by the local law, does the IMF give the money to Argentina? 

    MS. KOZACK: Okay, so that is a question on Argentina. Any other questions on Argentina? I do not see any hands up in the room. Let us go online. QUESTIONER: Do you think we are already in the final stage? And what remains to announce the Staff Agreement with the IMF?

    QUESTIONER: Good morning. I was wondering about also there have been versions of a new loan up to $20 billion and the first deployment of $8 billion this year. Can you confirm that, or can you give us an insight into the fresh funds that could be coming in the new agreement? And also, when can we expect a signing of the letter of intent? 

    QUESTIONER: So, my question is about the Congress. President Milei confirmed that the staff-level agreement must be approved by the Parliament as indicated by the Argentine law. So, is that also a requirement from the IMF itself or could the President sign a decree avoiding the current law that requires the staff-level agreement to be approved by Parliament. 

    QUESTIONER: I want to ask about the scope of the potential agreement with Argentina. There are reports out saying it could be as high, or there is an expectation it could be as high as $20 billion.

    QUESTIONER: I think a few people have already asked, but when [do] you expect to reach a staff-level agreement, whether, as the Argentine government has said, it is only the final numbers that need to be agreed and not other technical aspects? And whether the IMF requires that the entirety of the SLA be reviewed by Congress for approval or if whether a general outline produced by the government will be enough? 

    MS. KOZACK: Okay, very good. So, with that, let me go ahead and talk about Argentina. So, first, I just want to start by saying, as I think many of you know, both the Managing Director and the First Deputy Managing Director recently met with the Argentine authorities. And as they recently emphasized, we are continuing to make good progress toward a program, and we are working constructively with the Argentine authorities in this regard. The authorities’ stabilization and growth plan is delivering significant results.

    It has made notable strides in reducing inflation, stabilizing the economy, and fostering a return to growth in the country, and poverty is finally beginning to decline in Argentina. To sustain these early gains, there is a shared understanding about the need to continue to adopt a consistent set of fiscal, monetary and exchange rate policies, while very importantly, advancing growth enhancing reforms. And the new program would build on the progress achieved so far while also addressing Argentina’s remaining challenges. 

    Now, with respect to some of the questions regarding Congressional approval, we do take note of President Milei’s commitment to seek congressional support for a new IMF supported program. As we have often said in the past, strong ownership and broad support are key to the program’s success, 

    Here, I want to emphasize, though, that securing congressional support is a decision of the authorities as legislated in Argentine domestic law. And at the same time, of course, as I just noted, broad political and social support can enhance program implementation. Questions regarding the specific process on achieving or seeking congressional support should be addressed really to the Argentine authorities because it is a matter of domestic law. 

    From our side, as I noted, the negotiations are continuing in a constructive manner. In terms of the process from the IMF side. Once the negotiations are completed, as with any IMF program or proposed program, the final arrangement, the documents, will require approval of the IMF’s Executive Board. And we will provide further updates as we have them. 

    With respect to some of the questions about the details of the negotiations, the potential size of the program. All I can say right now is this is still under discussion as part of the ongoing and constructive dialogue that we are having with the authorities. And we will provide an update when we have more information that we can share with you. 

    QUESTIONER: On Lebanon, so following recent reports that the Lebanese government is in discussions with IMF over a potential deal on its financial default in public debt. I just want to see if the IMF can confirm these reports. If so, what does it look like? Are there any contingencies to this? And will there be an IMF mission visiting Lebanon? Thank you. 

    MS. KOZACK: So, what I can share on Lebanon is that an IMF team will visit Lebanon very soon, March 10th to 14th. This mission is aimed at, of course, meeting the new authorities, discussing Lebanon’s recent economic developments, its reconstruction needs, and the authorities’ economic priorities in the near-term. This is a fact-finding mission that will take place. But beyond this fact-finding mission, as we look ahead, future next steps could include helping the authorities to formulate a comprehensive economic reform program.

    Our staff continues to be closely engaged with the authorities. We are providing policy advice and capacity development to help the authorities’ efforts to rebuild Lebanon’s economy and institutions in coordination with other international partners. And that is what I have for now on Lebanon. 

    QUESTIONER: I wanted to ask you about what is happening in the United States. The trade wars have begun, and we are seeing some impact already, both in terms of market reaction and a lot of volatility in the markets, ups, and downs. We are also seeing some interesting developments in terms of bond markets and yields; it is going to increase the cost of borrowing. So, I wanted to ask you if you, at this point, I know we’ve asked this question before, but I wonder if you’ve got an additional assessment, as we’re now seeing some of these policies that had been promised taking effect, and whether you can say now whether you’re expecting an impact on the global economy and also on the U.S. economy and the affected economies that have been targeted thus far — China, Canada, Mexico. 

    QUESTIONER: As a follow up to [that] question, does the IMF consider that the ongoing developments of the U.S. tariffs and trade wars would push other nations to seek more trade relations and more alliances with other economic organizations and trade organizations such as BRICS, for example, or others? And broadly speaking, what is the IMF assessment of the global fragmentation that is going on right now? Do you see that it is slowing down or opposite it is moving faster, taking into account the latest developments in the United States?

    QUESTIONER: I would like to focus on the development of 10 years of U.S. bond yield movement. The 10-year bond yield now decreased, dropping substantially. And what does it mean? What is the implication of the movement? Does it represent some U.S. recession or U.S. economy? 

    QUESTIONER: With the tariffs actually now in place, has the IMF undertook a study to determine the potential impact on small island states that are heavily dependent on flows and goods and commodities coming out of the United States, more specifically, those countries within the Caribbean region who are very much dependent and could face significant inflationary pressures based on these tariffs?

    MS. KOZACK: So, first I want to just step back a little bit to recognize that we have seen now several new and significant developments over the past few days. The U.S. has imposed tariffs on Canada and Mexico as well as additional tariffs on China. Canada and China have, in response, announced tariffs on some U.S. goods and other measures. And Mexico has indicated that it will provide more details in the coming days.

    And as we have said before, you know, while assessing the full impact of tariffs on economic activity and inflation will depend on many factors, we do expect to provide an analysis of this, certainly at the global level and for the most affected countries at the time of our World Economic Outlook update in April. And of course we will also cover this issue, I imagine, in some of the regional updates where relevant. And I want to also emphasize that as part of our bilateral surveillance with countries, the individual Article IV reports this topic will also be covered to the extent that the countries are affected. 

    What I can say today is that if sustained the impact of the U.S. tariffs on Canada and Mexico can be expected to have a significant adverse economic impact on those countries given their very strong integration and exposure to the U.S. market. 

    Now, more broadly, there were some questions about financial market movements. So let me also just step back for a moment on some of these, and here I want to refer to some remarks that our Managing Director has been making recently. As she’s been saying, we are now in the midst of significant transformations, and these include the rapid advance of AI to changing patterns of capital flows and trade. She has also been mentioning that trade is no longer the engine of global growth that it used to be. 

    For example, during the period of 2000 to 2019, global trade growth reached nearly 6 percent on an annual basis, whereas over the more recent period of 2022 to 2024, global trade is growing closer to 3 percent. So global trade growth has been on a downward — has declined. And of course, it is in this more global context that governments are recalibrating their approaches and adjusting policies. 

    I also want to recognize, of course, that we have seen increased volatility in financial markets. We see that in indicators such as the VIX. We also have seen indicators of global uncertainty showing an increase. And what will be critical to assess what the economic impact of this will be — will be whether these trends are short-lived or whether they are sustained. Generally speaking, our research shows that both historically and across countries, sustained periods of elevated uncertainty can be associated with both households and firms holding back on consumption and investment decisions. And as I said, we will be providing a comprehensive analysis of our views on the global economy and individual economies as part of the World Economic Outlook that will be released in April. 

    On the specific question on U.S. bond yields, we do recognize of course, that U.S. bond yields have moved lower since the beginning of the year. And it does seem that on that basis markets may be reappraising or reassessing their views, particularly on the outlook for monetary policy. I will stop there and move on.

    QUESTIONER: When is the IMF Board expected to review and approve the next disbursement for Ukraine? Are there any remaining conditions or procedural steps that Ukraine must fulfill before approval? And the Ukrainian government is engaging in debt restructuring efforts with its creditors. How does the IMF assess Ukraine’s debt sustainability and what role does this play in bord’s decision making process regarding future disbursement announcements?

    QUESTIONER: So, to follow up on previous question. In February, you stated, that Ukraine would have access to about U.S. $900 million for the next review. Now we are speaking about $400 million. So, why the IMF has made a decision to adjust to the total sum of disbursement that will be provided to Ukraine?

    QUESTIONER: And do you think that it can impact financial stability of Ukrainian economy or there is no risk for them? 

    QUESTIONER: How do you expect the freezing of the U.S. aid for Ukraine might impact the program you have already on course right now? And how does this affect the global plan that had been made like a year ago or two years ago now? 

    QUESTIONER: I just want to follow up the last question about the impact — what the impact Trump administration is doing. Does this impact the IMF projections on Ukraine this and next year? 

    QUESTIONER: An adjacent question, maybe related to the prospect for ending the war. And, you know, we have seen economic developments in Russia continue to percolate along even though the war has been going on and there have been sanctions. Have you started to look at what the end of the war could mean for both the Russian and Ukrainian economies in terms of, you know, perhaps, you know, assuming that there would be an end of sanctions once there was a cessation of hostilities, whether that would give a boost to the Russian economy, maybe the European economy in general could lower costs, things like that? So just kind of walk us through what you are seeing there. 

    MS. KOZACK: Okay, let me go ahead on Ukraine. So, just to bring everyone up to speed. So, on February 28th, the IMF staff, and the Ukrainian authorities reached a staff-level agreement on the Seventh Review of the four-year EFF arrangement. This is subject to approval of the IMF’s Executive Board. Ukraine is expected to draw, as noted, about U.S. $400 million, and that would bring total disbursements under the program to U.S. $10.1 billion.

    I just want to note that program performance in Ukraine remains strong. All of the end December quantitative performance criteria were met, and understandings were reached between the Ukrainian authorities and IMF staff on a set of policies and reforms to sustain macroeconomic stability. The structural reform agenda in Ukraine is continuing to make good progress, and there are strong commitments from the Ukrainian authorities in a number of other areas. 

    Now on some of the specific questions, first on the matter of the disbursement, what I can say there is that it is not unusual over the life of a program for the pattern of disbursements to shift based on evolving balance of payments needs. And that is what has happened in this case. It is also important to emphasize that the overall size of the program, which is $15.6 billion, remains unchanged. And so that shift in disbursement pattern reflects the shifting balance of payments pattern for Ukraine. 

    So, on the issue the debt restructuring and debt process, what I can say there is that restoring debt sustainability in Ukraine hinges on continued implementation of the authority’s debt restructuring strategy, where completing the treatment of the GDP warrants remains important. And it also hinges very much on continuation of the revenue-based fiscal adjustment strategy, which is supported under the program. And as you know, Ukraine’s debt has been assessed in the last review to be sustainable on a forward-looking basis contingent on these two areas that I just mentioned. And of course, there will be a revised debt sustainability assessment as part of the ongoing review. 

    With respect to the other question, what I can say here is that the Ukrainian economy, you know, has shown continued resilience despite the challenges arising from the war. At the time of the Seventh Review, the last review, we estimated GDP growth to be 3.5 percent in 2024. But we did expect it at that time to moderate to 2 to 3 percent in 2025. And that was reflecting some headwinds from labor constraints and damage to energy infrastructure, given the ongoing war. It is the case in general for Ukraine, and we have been saying this throughout the life of the program, that the outlook remains exceptionally uncertain, especially as the war continues and it is taking a heavy toll on Ukraine’s people, economy, and infrastructure. 

    On the more recent developments that you were referring to, we are following these developments very closely. It is premature at the moment to comment on them, but we are following them, and we will make an assessment in due course.

    And on your question, the answer is essentially the same. We are following the developments very closely, and we will, as developments evolve, be undertaking obviously an assessment of what a peace deal could potentially look like and what would be the implications for all of the involved parties. 

    QUESTIONER: Julie, can you on the basis of having studied previous conflicts ending, can you just give us divorced from Ukraine and Russia, but just can you give us an indication of what generally happens when a conflict ends, what that means? And is there anything that we can draw on, at least just from history? 

    MS. KOZACK: So, I do not have, you know, off the top of my head a piece of research that I can kind of point to in terms of the interest analysis. What I certainly can say is that we always, for all of our member countries, hope for peace and stability in all of our member countries. And I think at that moment this is really what I can say. But I take note of the importance of your point, and we will, I have no doubt, in due course be conducting all of the necessary analysis as events unfold.

    QUESTIONER: I have two questions mainly on Egypt. as Egypt is scheduled for 10th of March for the discussion of the Fourth Review of the EFF for the country, what are we expecting from this meeting? And if you please, could you update us on the RSF facility worth $1.2 billion for the country? Thank you so much. 

    QUESTIONER: I would second exactly those questions. And just to add to that, I know it says on the IMF Executive Board calendar that the Board will be discussing waivers of non-observance for some of the performance criteria related to Egypt’s loan program and modifications for others. Are you able to tell us any more about exactly which criteria the Board will be looking at? And on the RSF, if you are able to give us any more detail about the prospective value of that. I know it has been put at $1 billion before. A related question, not on Egypt but on Gaza. I would be interested to know if the IMF has begun to think, whether internally or with partners in the region, about what its potential role would be in funding a reconstruction plan for Gaza given the $50 billion, upwards of $50 billion, cost of any reconstruction. 

    QUESTIONER: I may repeat questions about the value of current tranche to be given to Egypt and the timing of when the central bank of Egypt to receive it. And also, I have another question about the program of state assets selling. Will we witness some steps, new steps in that program? Could it be connected with the decision to be taken in March?

    MS. KOZACK: And any other questions on Egypt? All right. And then I have a question that came in through the Press Center. I am going to read it out loud – ’Does the IMF’s approval of the fourth tranche to Egypt require Egypt to implement some reforms? And when will the Fifth Review of the loan be held? What is the estimated size of the loan allocated to Egypt, and here will it be dispersed in installments or in one lump sum?’

    On Egypt – on March 10th, our Executive Board will be discussing Egypt’s Article IV consultation and the fourth review under the EFF. It will also be discussing at the same time Egypt’s request for an RSF, the Resilience and Sustainability Facility. Subject to completion by the Executive Board, the authorities, would have access to $1.2 billion under the EFF. So, under the EFF program. And then in addition, subject again to approval by our Executive Board, the size of the RSF would be about U.S. $1.3 billion. Regarding the RSF, like all of the IMF programs, the RSF is also delivered in tranches. So, it is not one lump sum up front. It is a phased program where tranches are dispersed on the basis of conditions being met. 

    And with respect to some of the other questions, what I can say today is just that we will provide, of course, more details following the Board meeting and on the question of waivers and modifications and also the questions on the state-owned enterprises. And again, the board meeting will be on March 10th. 

    QUESTIONER: I have two questions related to Japan. Firstly, amid rising uncertainty due to President Trump’s tariff policy, I would like to ask you — ask your thoughts on whether the Bank of Japan, currently in a rate hike phase, should continue raising rate or take more cautious approach in assessing the impact. And secondly, President Trump recently made remarks suggesting that Japan and China are engaging in currency devaluation. I would appreciate it if you share your views on Japan’s foreign exchange policy. Thank you. 

    MS. KOZACK: So, maybe just stepping back to give a bit of context on Japan. What I can say on Japan is that on the growth side, growth this year is expected to strengthen, and we also expect inflation to converge to the Bank of Japan’s 2 percent target by the end of 2025. 

    In 2024, growth in Japan slowed due to some temporary supply disruptions. But since then, we have seen a strengthening in growth driven by domestic demand, particular — particularly private consumption in Japan and rising wages. And we expect this to continue into 2025, where we project growth, at the time of the January WEO, we projected growth at 1.1 percent for Japan in 2025. And of course, just to say that we will be updating this projection as part of the April forecast. 

    Looking at inflation — headline and core inflation, as I said, are expected to decline gradually toward the 2 percent target. We have been supportive of the Bank of Japan’s recent monetary policy decisions. We believe that these decisions will help anchor inflation expectations at the 2 percent target but also given balance risks around inflation, our assessment has been that further hikes in the policy interest rate should continue to be data dependent, and they should proceed at a gradual pace over time. 

     With respect to the question on the exchange rate, what I can say there is that the Japanese authorities have affirmed their commitment to a flexible exchange rate regime. Japan’s flexible exchange rate regime has helped the country or has helped the economy absorb the impact of shocks. And it also supports the focus of monetary policy on price stability. And at the same time, what I can say is that that flexible exchange rate regime is helping maintain an external position that is in line with fundamentals. 

    QUESTIONER: Could you give us an update on the negotiations for Ethiopia, please? And on El Salvador, the deal that you agreed on in December and was approved a couple of weeks ago involves the government not increasing its exposure to Bitcoin. Government has continued to buy through the Office of Bitcoin, which is linked to the presidential palace. But yesterday the Fund said that these purchases do not increase the government’s exposure to Bitcoin. Could you please explain that? 

    QUESTIONER: Also on El Salvador, obviously he was saying to not to not buy it as a government reserve. I just wanted to, I guess, contrast to the U.S. I mean, President Trump has very much announced a digital assets reserve, including Ethereum and other coins, as well as Bitcoin. And I wondered if the IMF could – can you comment on the U.S. program or how would you distinguish the two countries and why the IMF might be taking a different approach?

    MS. KOZACK: All right, let me go ahead and take the El Salvador question in Ethiopia and then we will go back. I see many hands up online. 

    So, on El Salvador, as you know, last week our Executive Board approved a 40-month Extended Fund Facility, EFF, for U.S. $1.4 billion and with an immediate disbursement of $113 million. The program is expected to catalyze financial and technical support from other IFIs. And this will lead to a combined total over the program period of about U.S. $3.5 billion of support for El Salvador. The goals of the program are to restore fiscal sustainability, rebuild external and financial buffers, strengthen governance and transparency, and ultimately create the conditions for stronger and more resilient growth. 

    Regarding Bitcoin, in particular, the program aims to address the risks associated with the Bitcoin project to protect consumers and investors, as well as to limit potential fiscal costs. So, to start, there were recent legal reforms that have made the acceptance of Bitcoin voluntary, and taxes can be paid only in U.S. dollars. Under the program, the government has committed to not accumulate for their Bitcoins at the level of the overall public sector. 

    Regarding the recent increase in Bitcoin holding by the Strategic Bitcoin Reserve Fund, the authorities have confirmed that these are consistent with the agreed program conditionality, and we do remain engaged with the authorities on this important issue. 

    And then, to your question. We are obviously closely monitoring President Trump’s announcement in this area. The Presidential Working Group on Digital Asset Markets has not yet completed its work. So, we do not yet have details on the implementation of this proposal, but we will come back in due course. 

    And then turning to the question on Ethiopia. So just an update on Ethiopia. On January 17th, the IMF Executive Board completed the Second Review of the arrangement, the ECF arrangement for Ethiopia, and that allowed for a drawdown of about U.S. $245 million. The ECF arrangement supports the authorities’ reforms to address macroeconomic imbalances, restore external debt sustainability, and lay the foundation for strong private sector-led growth. 

    I can also just remind you that the Managing Director recently traveled to Ethiopia. She was there February 8th and 9th. She met with Prime Minister Abiy and his team to take stock of the economic reforms and the progress that is being made in the country. And she also took the opportunity to meet with other stakeholders, including representatives of the private sector. 

    QUESTIONER: My question is on USAID. USAID has now totally stopped its business. And to what extent do you see the impact, especially on lower income countries at the global level? And should you consider using your facility to support them just in case? 

    MS. KOZACK: So, on this issue, we are obviously again paying close attention to developments, and we are working with our country authorities. But it is, at the same time, it is too early to really say what the precise impact may be. And so, we will come back in due course. For now, we are monitoring.

    QUESTIONER: I have a question on Senegal. Following a recent audit of the country’s debt, it was found to be 99.7 percent of GDP. That was in 2023. And I know that IMF has said before that Senegal debt was stable even though it was high. I am wondering if that is the figure that you still consider sustainable. And then also with regards on talks of a new IMF program, I am wondering if Senegal could be asked to reimburse previous dispersion under this reporting period. 

    QUESTIONER: Still on Senegal, as soon as the report from the Audit Supreme Court was released, we saw rating agency downgrading Senegal sovereign notes. So, the country is now stuck. It cannot raise funds from the internal market, and it cannot go in a very comfortable position in international markets while they still face a lot of challenges. So, I am wondering why the IMF is working fast and bold to find a solution for Senegal in the midterm or even long-term. Is there any situation where IMF can provide a short-term, I mean, short-term relief to the country so they can go through these hard moments in a very soft way? 

    MS. KOZACK: So, on Senegal, what I can say is that we are actively engaged in discussions with the authorities with respect to the Court of Auditors Report and the associated misreporting under the IMF program. The Court of Auditors Report was released on February 12th. The Court confirmed that the fiscal deficit and debt were under reported during the period of 2019 to 2023.

    So, what we are doing is working closely with the authorities in their efforts to preserve fiscal and debt sustainability. We are working actively to advance on our discussions following the publication of the report, and we are also working with the authorities on measures to correct and remedy the misreporting that took place. What I can add is that the resolution of the misreporting in line with IMF policy is a precondition for discussions of any future financial assistance by the IMF.

    And with respect to potential consequences, I can say that the IMF does not impose any sanctions for misreporting cases. It is up to our Executive Board to decide on the next steps. And those next steps, you know, could include a waiver. And that waiver could — it could also include; it could be a waiver without a request for reimbursement. So, all of those discussions on Senegal are now underway. We are actively, very much working with the authorities, supporting as much as possible their efforts on fiscal and debt sustainability, as I said. And we will come back and report back when we have more information on Senegal. 

    I have a question here online that I am going to read. It came from the Press Center on Thailand. And the question is – ‘The upcoming World Bank IMF Annual Meetings in Thailand will bring significant attention to Southeast Asia’s economic outlook. From the from IMF’s perspective, how can Thailand best leverage this opportunity to address regional challenges such as digital transformation, climate change adaptation, and income inequality? And what collaborative initiatives between the IMF and Thailand are being planned to ensure lasting economic benefits for the country beyond the meetings themselves?’ 

    So, on this very important question, a very nice question, actually, what I can say is that we are very much looking forward to having Thailand host the annual meetings in 2026. So, this will be in October of 2026. Every three years, we do our Annual Meetings abroad. 2026, October will be Thailand. So, mark your calendar. I can also add that preparations are underway. The Fund, the IMF staff are working hand in hand with the Thai authorities to make this a highly successful event and showcasing the significant strides that Thailand has made since it last hosted our annual meetings in 1991. So, it will be 25 years when we get to 2026. 

    The Managing Director recently met with Bank of Thailand’s Governor Sethaput at the AlUla Conference in Saudi Arabia. They discussed the preparations for the annual meetings and agreed that it would be a very good opportunity to showcase on the global stage the region’s dynamism and economic activities. And of course, the meetings will also allow Thailand to position itself as a key contributor to the international economic dialogue and to gather views and experiences from countries throughout the membership of the IMF and the World Bank. 

    This ongoing close relationship leading up to and beyond, we hope, the Annual Meetings will focus on prioritizing reform reforms that are necessary to ensure the lasting benefits for Thailand and building the relationships and the shared policy, dialogue and experiences we hope will deepen our engagement, our excellent engagement and relationship with Thailand and will be sustained even past the Annual Meetings in 2026.

    QUESTIONER: My question is, what are the IMF growth projections for Jordan amid the ongoing impact of the Gaza war? And when will the Third Review under the EFF begin? And are any adjustments expected to the war’s region effect on Jordan’s economy? 

    MS. KOZACK: So, what I can share on Jordan is that the Executive Board on December 12th completed the Article IV Consultation with Jordan and the Second Review under the EFF arrangement. The mission for the next review, which will be the Third Review, is expected to take place in April.

    What I can also say is that Jordan has demonstrated resilience and maintained macroeconomic stability throughout the prolonged regional conflict. This resilience reflects the authority’s continued implementation of sound macroeconomic policies and progress with reforms. While recent developments in the region, particularly the ceasefire agreements, give rise to some cautious optimism, uncertainty, of course, in Jordan does remain high. And with respect to the growth projections, what I can say is that growth in 2024 was 2.3 percent. We are projecting growth at 2.5 percent in 2025 and a further increase in growth in 2026 to 3 percent. But like in all countries, we will be updating these projections as both part of our April World Economic Outlook Global Forecast, and also, of course, the team will be doing a full assessment of the Jordanian economy as part of their mission in April 

    And so, with this, I’m going to bring this press briefing to a close. Thank you all very much. Thank you very much for participating today. As a reminder, the briefing is embargoed until 11 a.m. Eastern Time in the U.S. The transcript, as always, will be made available later today on IMF.org. And in case of clarifications or additional questions, please reach out to my colleagues at media@IMF.org. And I wish everyone a wonderful day, and I look forward to seeing you next time. Thank you very much. 

     

    * * * * *

     

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Boris Balabanov

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/03/06/tr030625-transcript-of-com-regular-press-briefing

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI USA: Employee at Multinational DVD Company Charged with Stealing, Selling Pre-Release Commercial DVDs for Blockbuster Films

    Source: US Justice – Antitrust Division

    Headline: Employee at Multinational DVD Company Charged with Stealing, Selling Pre-Release Commercial DVDs for Blockbuster Films

    A worker at a DVD and Blu-ray manufacturing and distribution company used by major movie studios was arrested today in Memphis, Tennessee, for allegedly stealing DVDs and Blu-rays of blockbuster movies from the company and selling them before their official scheduled release dates. A digital copy of at least one of the stolen Blu-rays was illegally distributed tens of millions of times over the internet, causing the copyright owner tens of millions of dollars in losses.

    MIL OSI USA News

  • MIL-OSI USA: Ernst Exposes Concerning Ties to China in Critical Defense Program

    US Senate News:

    Source: United States Senator Joni Ernst (R-IA)
    WASHINGTON – During a Senate Committee on Small Business and Entrepreneurship hearing, Chair Joni Ernst (R-Iowa) demonstrated why it is critical to pass her INNOVATE Act to strengthen due diligence of foreign ties for recipients of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
    During the hearing, Ernst exposed how inconsistent vetting standards within the programs have allowed companies with ties to China to receive hundreds of millions of tax dollars for critical defense research, including the company of one of the witnesses testifying before the committee.
    Click here to watch Chair Ernst’s questioning.
    Ernst questioned Triton Systems Executive Vice President Dr. Ken Mahmud on concerning ties between his company’s chief executive officer and a Chinese Communist Party-backed investment firm, CITIC Capital Acquisition Corp. These ties are especially concerning because Triton has received more than 900 SBIR awards amounting to more than $350 million. Mahmud acknowledged China’s ties to Triton but failed to address concerns that taxpayer-funded technology, including sensitive intellectual property, ended up benefitting China.
    Ernst’s INNOVATE Act would address this by closing loopholes and strengthening the due diligence assessment of foreign risks to prevent malign foreign actors from stealing innovation that is critical to national security. It would also require agencies to claw back awards if taxpayer-funded intellectual property is exposed to America’s foreign adversaries.

    MIL OSI USA News

  • MIL-OSI USA: Cramer, Coons Introduce Bipartisan Bill to Increase Affordable Housing

    US Senate News:

    Source: United States Senator Kevin Cramer (R-ND)
    WASHINGTON, D.C. – Recent declines in the number of landlords participating in the Housing Choice Voucher (HCV) program, also known as Section 8 vouchers, have made it more difficult for renters to find housing.  
    U.S. Senators Kevin Cramer, member of the Senate Committee on Banking, Housing, and Urban Development, and Chris Coons (D-DE), introduced their Choice in Affordable Housing Act today to help expand the HCV program. U.S. Representatives Emanuel Cleaver (D-MO-05) and Mike Lawler (R-NY-17) introduced the bill in the House of Representatives.
    The bill includes funding to create the Herschel Lashkowitz Housing Partnership Fund, named after the former state senator, Fargo mayor, and affordable housing advocate, Herschel Lashkowitz. It will improve the federal government’s largest rental assistance program by attracting and retaining participating landlords. Additionally, it increases funding to the Tribal Department of Housing and Urban Development Veterans Affairs Supportive Housing program, uses neighborhood-specific data to set rents fairly, reduces inspection delays, and refocuses HUD’s evaluation of housing agencies. Together, these changes reduce barriers to low-income housing. 
    “Increases in housing costs mean millions of renters struggle to find affordable places to live,” said Cramer. “The success of the Housing Choice Voucher program is contingent on landlords providing adequate housing options. Herschel Lashkowitz’s legacy of affordable housing advocacy lives on through this commonsense bill by boosting the supply of options for renters to use their vouchers.”
    “As County Executive and County Council President, I saw firsthand the life-changing impact that a safe, affordable home had for Delawareans families,” said Coons. “Families in the first state and across the nation need better options when they are looking for a home, and landlords need support to be able to bring their properties into the Section 8 market. This bill is a huge step forward towards those goals so more Americans in every corner of our country can feel at home.”
    This bill is endorsed by National Affordable Housing Management Association, National Low Income Housing Coalition, National Housing Law Project, Habitat for Humanity International, National Association of Realtors, National Association of Home Builders, Enterprise Community Partners, National Association of Residential Property Managers, National Leased Housing Association, Institute of Real Estate Management, National Rental Home Council, the Poverty & Race Research Action Council, RESULTS Education Fund, the Bipartisan Policy Center, the National Multifamily Housing Council, the National Apartment Association, the Council for Affordable and Rural Housing, and the Building Owners and Managers Association.
    Cosponsors of the bill include U.S. Senators John Curtis (R-UT), Martin Heinrich (D-NM), Jerry Moran (R-KS), Tina Smith (D-MN), Raphael Warnock (D-GA).
    Click here for bill text.

    MIL OSI USA News

  • MIL-OSI Global: Bridget Jones’s husband must die – how the women of our rom coms must lose love to find it again

    Source: The Conversation – UK – By Charlotte Ireland, Associate Researcher, Department of English, University of Birmingham

    In the first three Bridget Jones films, the eponymous chaotic heroine has been on a seemingly endless quest to not be single. We have watched her secure, lose and secure again the heart of buttoned-up human rights lawyer Mark Darcy. Sadly, the cycle must continue and in the newest and last instalment, Mad About the Boy, she loses him all over again.

    The brand of romantic comedy Bridget Jones belongs to, which came about in the late 90s and early 2000s, thrives on the chaos of single life, not “smug married” life. Bridget works best when she is self-deprecating, single and searching.

    Helen Fielding’s Bridget Jones’s Diary (1996) has been, and continues to be, described as the “urtext” of chick lit — a defining novel from which others in the genre descend.

    In chick lit, characters are often navigating the ebbs and flows of contemporary female experience, negotiating the challenges of juggling personal autonomy, career, family, friendship and love.

    The new film cleaves closely to these tried and tested tropes of the genre. And, in a twist, the film’s writers have killed off Mark Darcy. Fielding’s novel Mad About the Boy (2013) is set several years after Darcy’s death, which occurs when he’s on a humanitarian mission in Sudan.


    Looking for something good? Cut through the noise with a carefully curated selection of the latest releases, live events and exhibitions, straight to your inbox every fortnight, on Fridays. Sign up here.


    Bridget isn’t the first 2000s romantic lead to lose her great love. Fans of Sex and the City watched Carrie Bradshaw lose Big, the man she had pursued with equally wavering success across the show’s six seasons, in its reboot And Just Like That.

    While it may be frustrating that the writers felt that they couldn’t tell a story about Bridget or Carrie without making them single, the exploration of dating, friendships and careers has matured in these new instalments. Age, widowhood and a changing dating landscape have introduced alternative narratives – grief, dating with children, across ages and online.

    Totally new romantic prospects

    Divorce is a familiar theme in chick lit. It can be seen in Jojo Moyes’ Someone Else’s Shoes (2023), Marian Keyes’ Again, Rachel (2022) and even Candace Bushnell’s Is There Still Sex in the City? (2019). Given how frequently divorce appears in chick lit, it’s worth asking: why did Darcy and Big have to die?

    Studies show that 60% of people going through a divorce may be open to reconciliation. For Bridget and Carrie, divorce would have left the romantic door open.

    Also, as the path of reconciliation has been tread so many times with these men, there are only so many stories left to tell. New romantic interests would bring new dynamics, new issues to explore and more uncertainty for fans.

    Bridget Jones and Sex in the City were pioneering. They featured honest and open discussion of being single in your 30s. They depicted candid portrayals of female sexuality, including discussions about self-pleasure. They showed Bridget and Carrie navigating complex relationships, difficult careers and friendships in a way many hadn’t seen at the time.

    Stories of divorce and marriage are common in chick lit. So death, widowhood and middle-age allow the writers of Bridget Jones and And Just Like That to tread new ground for the same audiences in a way they did when they first came out.

    Dating through grief and at an older age

    Widowed dating brings avoidance, awkwardness and guilt. Bridget and Carrie initially claim they will never have sex again, feeling out of place in the dating world. Yet, there is a palpable sense of interest that makes them go back on this pronouncement quickly.

    Guilt follows their first post-widowhood dates, as they sense their late husbands watching: Carrie through flickering lights, Bridget through an owl.

    Carrie is told she must date again to give her readers a “glimmer of hope” (and sell more books). Similarly, Mad About the Boy critiques the stigma surrounding older single women.

    Both have been praised for their portrayal of widowed dating realities (And Just Like That) and as a moving study of grief (Mad About the Boy).

    Chapter 2, the UK’s only dating app for widowers and widows, found a lack of resources on widowed dating so surveyed over 500 people across the UK who had lost a partner. They found, on average, widows and widowers started dating two years and seven months after their loss. Nearly 50% felt some form of guilt (or as though they were “replacing” or “cheating” on their deceased partner), while only 7% didn’t find it difficult.

    Bridget Jones, once a relatable 30-something dater, now reflects the realities of such widowed dating in midlife. Bringing these experiences to a popular, entertaining format sparks conversations about grief, love, and second chances – challenging stigmas while acknowledging the complexities of moving forward.

    The consistency of friendships

    What remains constant in both Bridget and Carrie’s lives is friendship, which studies have found becomes even more vital after loss.

    In Mad About the Boy, Bridget’s friends “surrounded [her] like a womb” after Darcy’s death. In And Just Like That, Miranda comforts Carrie in bed, rubbing her back just as Big once did.

    “Friends are the family we choose for ourselves”, a phrase often attributed to writer Edna Buchanan, is a common saying that encapsulates the close friendships in chick lit. This is reflected in the “urban family of single friends”, a stock feature of the genre.

    These friendships aren’t just supportive — they’re essential to the heroines’ survival and happiness. The message is clear: romantic love may fade, but true friendships endure.

    Charlotte Ireland 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. Bridget Jones’s husband must die – how the women of our rom coms must lose love to find it again – https://theconversation.com/bridget-joness-husband-must-die-how-the-women-of-our-rom-coms-must-lose-love-to-find-it-again-249914

    MIL OSI – Global Reports

  • MIL-OSI Global: Can melatonin supplements really ‘reverse’ DNA damage caused by lack of sleep?

    Source: The Conversation – UK – By Timothy Hearn, Senior Lecturer in Bioinformatics, Anglia Ruskin University

    Pixel-Shot/Shutterstock

    Sleep isn’t just a luxury, it’s a vital process that helps our bodies repair and
    rejuvenate. Researchers have started to uncover how the quality and timing of sleep can affect more than just how rested we feel – it might also affect the very blueprint of our cells: our DNA.

    A new study from Canada found that melatonin, a hormone known for its role in regulating sleep, might help reverse some of the DNA damage caused by years of poor sleep.

    Melatonin is produced by the pineal gland in our brains when darkness
    falls. It signals to our bodies that it’s time to wind down and prepare for sleep.
    Beyond its sleep-inducing properties, melatonin is also a powerful antioxidant.

    Antioxidants help protect our cells from oxidative stress – a condition in which an imbalance between free radicals and antioxidants can damage important cellular
    components, including DNA. Oxidative DNA damage is thought to contribute to the development of diseases, such as cancer.

    Night-shift workers, who often battle irregular sleep patterns and diminished
    melatonin production due to exposure to artificial light, are at a particularly high risk.

    Their disrupted sleep cycles can lead to a reduced ability to repair oxidative DNA damage, which might, over time, increase their risk of developing serious health issues.

    What the research shows

    In the Canadian study, 40 participants who regularly worked night shifts were given either a 3mg melatonin supplement or a placebo before their daytime sleep. The researchers then measured the repair of oxidative DNA damage by analysing levels of a marker known as 8-hydroxy-2′-deoxyguanosine (8-OH-dG) in urine samples. Higher levels of this marker indicate better DNA repair activity because damaged DNA is being successfully removed from cells.

    The study found that during the period of daytime sleep, participants who took
    melatonin showed an 80% increase in urinary 8-OH-dG compared to those who took
    the placebo. This result, although described as “borderline statistically significant”, suggests that melatonin may boost the body’s natural DNA repair mechanisms when the sleep schedule is disrupted. However, during subsequent night shifts – when melatonin levels naturally fall – the effect was not observed.

    These findings are consistent with earlier research indicating that melatonin not only has antioxidant properties but may also boost specific genes involved in the repair process. Melatonin, then, appears to help the body recognise and get rid of damaged segments of DNA, potentially reducing the long-term risks associated with accumulated cellular damage.

    Enhanced repair

    When headlines claim that melatonin supplements “reverse DNA damage”, it’s
    important to understand what that really means.

    The study does not suggest that melatonin completely erases years of accumulated DNA damage. Instead, it points to melatonin’s potential to enhance the body’s repair capacity. For people who have suffered from years of poor sleep – whether due to night shifts, insomnia or lifestyle factors – melatonin might help mitigate further damage by improving the efficiency of the body’s natural repair processes.

    While the idea of reversing DNA damage is certainly appealing, more research is needed. The study was relatively small, and its participants were exclusively night shift workers – a group with unique challenges regarding sleep and circadian rhythms, the body’s natural 24-hour cycle that controls sleep, wakefulness and eating.

    Larger trials, exploring different doses and long-term use, will be crucial to determine whether melatonin supplementation can have a broader application for those who don’t get enough sleep.

    What does this mean for you?

    The research adds an interesting piece to the puzzle of how sleep and overall health are interconnected. Melatonin supplements are already widely used to help regulate sleep patterns and combat jet lag, but are only available on prescription in the UK.

    This new evidence suggests that their benefits might extend beyond just helping you
    fall asleep – they could also play a role in maintaining the health of your DNA.
    While melatonin supplements might not completely “reverse” years of DNA damage
    from poor sleep, they do appear to boost the body’s natural repair processes – a
    hopeful sign that improved sleep quality, aided by melatonin, could be a key element in our quest for better health.

    That said, melatonin is not a magic bullet. A healthy lifestyle, including good sleep hygiene, balanced nutrition and regular exercise, remains essential for protecting your cells from damage.

    Timothy Hearn 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. Can melatonin supplements really ‘reverse’ DNA damage caused by lack of sleep? – https://theconversation.com/can-melatonin-supplements-really-reverse-dna-damage-caused-by-lack-of-sleep-251559

    MIL OSI – Global Reports

  • MIL-OSI Global: ‘Pay to help’ is a new trend which could change the future of volunteering

    Source: The Conversation – UK – By Xiaoyan Liang, Associate Professor of Strategic Management, Xi’an Jiaotong-Liverpool University

    Gorodenkoff/Shutterstock

    Volunteering is a popular way for people to give something back to society. Whether it’s joining a tree-planting group, or helping out at a charity shop, spending time contributing to a cause is something valued by almost a billion people across the world.

    Some businesses have picked up on this in a positive way, by allowing staff to take paid time away from their jobs to volunteer. And research suggests that doing so makes those firms more attractive employers, with happier employees.

    But in a surprising new trend, some non-profit organisations have started charging companies for access to their volunteering programmes.

    Usually this “pay-to-volunteer” approach involves non-profits setting a fee for companies to send groups of employees to lend a hand. And although there are no official statistics available about how widespread this is, we found plenty of examples in the UK, the US and Australia.

    For instance, one Australian non-profit organisation we looked at charges businesses AU$600 (£302) for three employees to volunteer for a day stacking shelves and serving customers in a food bank.

    Another charges AU$1200 (£605) for up to ten volunteering employees to pack grocery boxes, and a similar fee for up to five people to distribute food to communities in a minibus. A third invoices AU$130 (£65) per person for a shift making meals for people who struggle to afford food.

    This kind of arrangement could redefine the traditional relationship between corporations and charitable organisations. So why switch to such a potentially disruptive model?

    Our research on some Australian examples suggests that it come down to how much a particular non-profit organisation prioritises the transactional value of volunteering arrangements with businesses.

    They might argue that charging a fee generates revenue, which helps to cover the costs of running volunteer programmes, as well as funding the organisation itself. They may also believe that any fees can be justified by the numerous benefits volunteering can bring to the companies which choose to pay them. These include enhanced employee morale and engagement, as well as the associated effects on the company’s image and reputation.

    By contrast, the non-profits who reject the idea of charging companies tend to be more interested in the symbolic value of volunteering. They would argue that a cost to access volunteering contradicts the selfless spirit of the whole exercise.

    Valuable volunteers

    For our research into the trend, we focused on the “food rescue” sector – non-profits dedicated to distributing usable but surplus and unsold food to those in need. One of the non-profit executives we spoke to stressed that volunteering should be “time given at no cost”.

    He added: “I just think the people who are charging organisations to come in to their operations are short-sighted and completely missing the point.

    “The opportunity is to build a relationship [with a business] and then understand where the best value can be driven from that relationship. It is not presenting an invoice as people walk out the door.”

    Others raised concerns that the “pay to help” model creates a two-tier system which depends entirely on a firm’s financial capacity. This could alienate and exclude smaller businesses unable to meet these costs.

    We also heard concerns voiced about implications for the future of the volunteering sector as a whole. If paying to volunteer becomes widespread, will it increase or reduce the overall volunteer base?

    Volunteering is a valuable work benefit.
    maxim ibragimov/Shutterstock

    Another manager we spoke to said the idea of paying to volunteer risked undermining the experience of corporate volunteering, as fees might bring unhelpful expectations. Would knowing that their volunteering activity was being paid for lead to some employees expecting privileges or certain outcomes for example, altering the dynamic between them and the people they are supposed to be helping?

    It was also suggested that non-profits might feel obliged to ensure the satisfaction of their fee-paying corporate volunteers, to the detriment of the charitable work they are doing.

    There are implications for non-paying volunteers too. The presence of volunteers whose employers are paying for them to be there might diminish the meaning of volunteering work more generally.

    So without fully engaging with these questions, non-profits should approach this new model of charging for volunteers with caution. Introducing a financial component may dampen employees’ enthusiasm and lead to companies reducing their volunteering projects. It could even change people’s overall perception of non-profits more generally, affecting the support – and donations – they may rely upon.

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

    Xiaoyan Liang 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. ‘Pay to help’ is a new trend which could change the future of volunteering – https://theconversation.com/pay-to-help-is-a-new-trend-which-could-change-the-future-of-volunteering-245980

    MIL OSI – Global Reports

  • MIL-OSI Global: Money laundering plays a key role in every part of the illegal drugs industry – here’s how it works

    Source: The Conversation – UK – By Mark Berry, Lecturer In Criminology, Bournemouth University

    R Mendoza/Shutterstock

    The global illicit drugs trade is estimated to be worth at least half a trillion US dollars each year. Drugs such as cocaine, methamphetamine and heroin generate large revenues all along their supply chains, from where the products (and precursor materials) are grown or made – principally Colombia and Bolivia, China, Afghanistan, and the “golden triangle” of Myanmar, Laos and Thailand – to wherever the finished drugs are consumed.

    Earnings in the illicit drug trade are variable. Few people will make the kind of money that once put the Mexican former cartel boss Joaquín “El Chapo” Guzmán on the Forbes list of global billionaires. But while drug “kingpins” are the industry’s biggest individual earners, they do not hold the majority of the drug money that is generated throughout the global supply chain.

    Despite their frequent glamorisation in film and TV portrayals, drug cartels are basically international logistics companies. They work with distributors in different countries who deliver the drugs to regional wholesalers, who in turn supply the local retailers (dealers) who sell drugs to individuals.

    Everyone along the supply chain takes their cut, with most people making much more modest incomes than the millionaire drug traffickers of narcocorrido lore. In our interviews with illicit drug entrepreneurs in the US and UK, we routinely spoke to sellers whose incomes ranged from pocket money to providing a moderately comfortable life.



    Illicit drug use is damaging large parts of the world socially, politically and environmentally. Patterns of supply and demand are changing rapidly. In our longform series Addicted, leading experts bring you the latest insights on drug use and production as we ask: is it time to declare a planetary emergency?


    Around 70% to 80% of the overall revenue generated by illicit drugs is shared among the many wholesale and street-level dealers in destination countries such as the UK and US, where the price per gram is at its highest. How this money moves and is used to sustain the illicit drug trade should be an important part of any worthwhile counter-narcotics strategy. But it rarely is.

    Professional money launderers

    The people and organisations responsible for laundering drug revenues – that is, transforming them into untraceable money that can easily be spent, or into assets that can be held or sold – often exist under the radar of law enforcement and the media.

    Yet the ways illicit drug money is laundered are hardly a mystery. Techniques include wire transfers to offshore bank accounts, investments in shell companies or deposits in cash businesses, and buying foreign currencies or (to a small extent) cryptocurrencies. In addition, the straightforward physical transportation of cash across national borders is an often-used method known as a “bulk cash transfer”.

    The largest players in the illicit drugs industry, such as international cartels, national distributors and large-scale wholesalers, often use professional money launderers – some of whom have seemingly reputable jobs in the financial sector. In one recent case, US financial regulators fined TD Bank US$3 billion (£2.4 billion) – a record penalty for a bank – for facilitating the laundering of millions of dollars of drug cartel money.

    Over six years, more than 90% of the bank’s transactions went unmonitored, enabling “three money laundering networks to collectively transfer more than US$670 million through TD Bank accounts”. Then-US attorney general Merrick Garland commented: “By making its services convenient for criminals, [TD Bank] became one.”

    Video: CBC News.

    Some money laundering networks are as global as the drug supply chains they service. In June 2024, the US Department of Justice’s (DoJ) multi-year “Operation Fortune Runner” investigation saw LA-based associates of Mexico’s Sinaloa drug cartel charged with conspiring with money-laundering groups linked to a Chinese underground banking network. According to the IRS’s head of criminal investigation, Guy Ficco:

    Drug traffickers generate immense amounts of cash through their illicit operations. This case is a prime example of Chinese money launderers working hand-in-hand with drug traffickers to try to legitimise profits generated by drug activities.

    According to the DoJ, “many wealthy Chinese nationals” barred from transferring large amounts to the US by the Chinese government’s capital flight restrictions seek informal alternatives to the conventional banking system – including via schemes to launder illicit drug money. The DoJ explained how this works:

    The China-based investor contacts an individual who has US dollars available to sell in the United States. This seller of US dollars provides identifying information for a bank account in China, with instructions for the investor to deposit Chinese currency (renminbi) in that account. Once the owner of the account sees the deposit, an equivalent amount of US dollars is released to the buyer in the United States.

    These arrangements are not unique to Chinese actors. Similar arrangements occur throughout the world, including schemes to leverage the black market peso exchange and the Hawala international money transfer system.

    Professional launderers are both creating and exploiting vulnerabilities in the global financial system. Such corruption allows suspicious transactions to occur without proper checks or oversight. This not only reduces transparency in the financial system but erodes public trust in it.

    How cartels launder their money

    International drug cartels and national wholesalers have a smaller markup on their transactions, compared with retailers. But because they are responsible for moving enormous quantities of illicit drugs, they still generate millions of dollars worth of revenue.

    The most prolific known drug distributors in US history, Margarito Flores Jr and his twin brother Pedro, delivered billions of dollars worth of cocaine, heroin and methamphetamines to their US and Canadian wholesale clients between 1998 and 2009. They were working for Guzmán and Ismeal “El Mayo” Zambada García, then leaders of the Sinaloa cartel, as well as the Mexican Beltrán Leyva brothers whose cartel bore their surname.

    Today, Margarito Flores Jr trains law enforcement across the US in the methods he and his brother used to traffic drugs and run their business. In January 2015, both men were sentenced to 14 years for drug trafficking – Margarito Flores Jr would later reach out to one of this article’s authors (R.V. Gundur) after reading his book, Trying to Make It: The Enterprises, Gangs, and People of the American Drug Trade, which includes a comprehensive account of the Flores crew’s activities.

    In a subsequent interview, he told us: “My brother and I estimate that, if we added up all of the money we sent back to Mexico over the decade we sold drugs, it was probably more than US$3.5 billion.”

    The billions they remitted to Mexico were used by Guzmán, Zambada and the Beltrán Levya brothers not only to expand their drug businesses, but to corrupt powerful figures such as Mexico’s former secretary of public security, Genaro García Luna.

    García Luna, who was Mexico’s highest-ranking law enforcement official from 2006 to 2012, was sentenced to nearly 40 years in prison in October 2024 after being found guilty of taking millions of dollars in bribes from the Sinaloa cartel, as well as enabling the trafficking of more than a million kilograms of cocaine into the US. Flores explained to us:

    It’s important to understand that corruption impacts people at all levels of government. Our payoffs included local police and other people in the community, up to higher-positioned people in government. Lots of that money ended up funding the violent conflicts between cartels.

    While there has been widespread coverage of cartel drug money being laundered through high-profile businesses and banks such as Wachovia and HSBC, Flores suggested that “the money involved in the drug trade is a lot more than anybody really can understand”. The reason for this, he said, is that it’s very hard to track the flow of hard cash via lorries, boats, planes and even drones. Flores told us:

    It’s a misconception that everyone who makes a lot of money in drugs or other illegal business makes an effort to launder their money. My brother and I held much of what we earned in cash. We knew the government could eventually take everything [else].

    The twins were right: in time, that’s exactly what the US government did.

    ‘Everyday’ money laundering

    In our study of money laundering strategies used by people involved in the illicit drug trade in the UK and US, we found that street dealers do not typically undertake sophisticated laundering processes. Rather, they spend their cash on food and other routine living expenses. One independent UK drug dealer, whose experience was typical of many, used the money earned from his cocaine sales to buy groceries and pay bills for himself and his daughter.

    Spending money, even small amounts, gained through illegal activities is a money laundering offence – albeit one that is seldom prosecuted. As a result, these everyday activities that return illicit drug money to the legal economy are not well accounted for – even though the street value of drugs drives global market value estimates.

    Business-savvy street dealers can earn gross revenues that approach the earnings of high-paid white-collar workers. But they must disguise their earnings’ origins before they can spend them, of course, and various tactics are used to do this.

    Some dealers solicit close friends or family members to act as “strawmen”. These are people willing to put assets paid for by illicit drug money – such as cars, properties or even businesses – in their names on behalf of the dealer. Idris Elba’s character Stringer Bell in HBO’s The Wire was an accurate portrayal of someone investing in legal enterprises using illicit drug money.

    A guide to Stringer Bell’s character in The Wire. Video: Just an Observation.

    These strategies occur wherever illegal enterprise exists, and have done for well over a century. In the US, we interviewed wholesalers who had used family members to own houses and other properties on their behalf. This is done to mitigate against the risk of asset forfeiture should they be convicted of a crime. If an illicit enterprise can create a plausible beneficial owner who is not involved in crime, then the asset is harder to seize. This is why the Donald Trump administration’s recent suspension of beneficial owner oversight is problematic from a drug enforcement perspective.

    In liberal democracies, governments cannot investigate someone’s finances simply because they are related to criminals. The dirty money that is put into their accounts can also be disguised as legitimate income making it difficult to identify, although thorough investigations may uncover it.

    In the UK, we also talked to successful drug retailers who had set up local businesses in their own names. The EU’s law enforcement agency, Europol, has reported similar activities throughout Europe.

    Legal businesses are a common – and often hard-to-detect – vehicle to launder drug money. Bars, clubs, gyms, and hair, nail and tanning salons can be readily set up with drug money, as large cash infusions to establish a business are often not well scrutinised. These businesses are comparatively easy to run with significant cash flows, providing suitable cover for dirty money.

    For example, a beauty salon, especially one that offers high-value boutique services, could easily incorporate drug revenue into its financial accounts by reporting sales that do not occur. Tanning salons can be set up with little expense since they require only sunbeds and the rental of a property.

    Along with bars, clubs and salons, construction companies and restaurants stand out as other cash-intensive businesses with high volumes of transactions – characteristics that make good fronts for laundering money.

    It’s hard to spot a ‘dirty’ business

    There is no surefire way to tell whether a business is a laundering front. While some may look like enterprises struggling to stay afloat, others develop into viable operations that eventually no longer need dirty money to sustain them.

    Some drug dealers incorporate laundering practices within their legitimate jobs. Tradespeople such as electricians or plumbers, for example, can launder money by generating invoices for fake jobs, then reporting the income on their tax returns.

    In both the UK and US, tax authorities are not charged with evaluating the veracity of the funds reported, and are generally satisfied once tax is paid. In other words, they generally trust declared income as proof of legal business activity. Moreover, they, along with the police, lack the resources to investigate these businesses for money laundering.

    Through their legal businesses, many drug dealers pay significant taxes on their illegal revenue, and thus contribute to the economy.

    Paying income tax effectively renders this income laundered. It can be invested and used to set up other businesses, or to purchase cars and properties without suspicion. It can also bolster credit ratings, and improve access to legal financial services such as bank loans.

    Many small-time drug dealers start legal businesses in order to exit the illicit drug trade. We interviewed one cocaine dealer who had used his drug money to set up a retail electronics store; once it was successful, he stopped dealing. Similarly, the person behind a semi-legitimate nitrous oxide enterprise used his proceeds to set up a legitimate alcohol delivery service.

    Through self-laundering, these modest drug dealers transform their proceeds of crime into spendable cash – and may eventually leave criminality behind altogether.

    The (losing) battle against laundered money

    Across the world, anti-money laundering efforts against organised criminal gangs are notoriously ineffective.

    The Financial Action Task Force (FATF) – an intergovernmental organisation formed in 1999 to combat money laundering and the financing of terrorism – assesses financial regulators’ anti-money laundering controls all over the world. Countries designated as a risk that require monitoring are placed on the task force’s “grey list”, while severe, high-risk countries go on its “black list”. Being put on these lists can result in a withdrawal of international investment and implementation of sanctions by other countries.

    Although developing countries have often scored badly in their assessments, there has been some progress. While Kenya remained on the grey list in 2024, for example, it was found to have strengthened its measures to tackle both money laundering and terrorist financing. In the same year, though, Lebanon was added to the grey list over concerns on both counts.

    The FATF’s evaluation processes are designed to provide an objective assessment of whether a country has implemented its anti-money laundering and counter-terrorist financing recommendations. However, the success of the FATF’s anti-money laundering controls remains unclear.

    Video: The Financial Action Task Force.

    Often lost in the criminal financing narrative is the role of bulk cash transfers. Even in a world that is moving to cashless transactions, cash generally remains the primary currency of both the illicit drug trade and corruption.

    The biggest and most successful drug traffickers have significant cash reserves which are used to pay workers, replace drugs that are lost or seized, accrue assets, and bribe key officials.

    Reflecting on his former illicit enterprise, Margarito Flores observed: “For every kilo of cocaine or heroin or methamphetamine we sold in the US, at least a kilo of cash went back to Mexico.” For deals in Europe, Flores said: “Given the markup the further away you trade, the amount of cash sent back could be even higher – I would estimate it to be a kilo and a half.”

    Flores described the ineptitude of law enforcement in policing cash that was leaving the US:

    No matter how careful we were, my brother and I lost a handful of loads of drugs heading north [from Mexico into the US]. Heading south was different: we just had the money put on tractor trailers and had it driven it across the border. We never lost a dollar. That’s where politicians don’t pay enough attention. That cash lets traffickers keep doing business.

    Focus on the money as well as the drugs

    So long as demand for illicit drugs exists, the industry will continue – and the revenue it generates will be laundered.

    We believe that to curb the drugs trade, enforcement strategies need to go beyond simply capturing drugs and focus much more on capturing the money. Governments should go after reserves held not only by drug cartels but high-level distributors, such as those who replaced the Flores twins, and also wholesalers. People like these – comparatively high earners in destination countries – are the backbone of the illicit drugs trade.

    Transnational law enforcement should prioritise detecting and seizing bulk cash transfers. These high-volume proceeds underwrite the wellbeing of drug trafficking organisations. Digital tools, such as machine learning and artificial intelligence, can be developed to create new techniques to track and trace suspicious transactions, although they alone won’t solve all laundering problems.

    Corruption of officials also remains a problem. Governments need to ensure their officials are well paid and sufficiently monitored in their roles – be they working in government, border control, banks, police departments or prisons. Unfortunately, the US has shirked its leadership in global anti-corruption efforts with the recent halting of the enforcement of the Foreign Corrupt Practices Act, which bans the bribing of foreign officials.




    Read more:
    Mexico’s drug corruption has more to do with US demand than crooked politicians


    Anti-money laundering efforts need to be consistently supported and required. Lamentably, the US has undermined its anti-money laundering toolkit by suspending the enforcement of beneficial ownership information reporting requirements. Establishing beneficial ownership helps financial institutions to identify parties that are hiding their financial interests, which can be an indication of money laundering or other criminal activity.

    Similarly, foreign investment in producer countries can strengthen their capacity to counter laundering by supporting intelligence infrastructure and improved training. Recent cuts to USAid and the reduction of US State Department efforts in these areas is another indication that the US will no longer lead in these domains.

    As cash businesses provide an easy mechanism for cleaning money, moving to a cashless society that uses digital transactions may help ensure that money is traceable. At the same time, cryptomarkets provide a minor, but potentially increasing, pathway to hiding dirty money digitally.

    Ultimately, we should recognise the decades-long “war on drugs” for what it is: a policy costing trillions of dollars that combined mass incarceration with insufficient public health investment, and which has harmed the very communities the illicit drug trade affects the most. It is a difficult balance, but the pathway forward needs to reorient the objectives regarding drugs: invest in people, then go after the money that keeps the cartels, distributors and wholesalers afloat.


    For you: more from our Insights series:

    To hear about new Insights articles, join the hundreds of thousands of people who value The Conversation’s evidence-based news. Subscribe to our newsletter.

    Mark Berry received funding from the Dawes Trust for a prestigious PhD scholarship to undertake work that informs the contents of this article.

    R.V. Gundur received funding from the Economic and Social Research Council to undertake work that informs the contents of this article. He is also a professional member of the International Compliance Association.

    The authors wish to thank Margarito Flores Jr (kingpintoeducator.com) for his help with this article.

    ref. Money laundering plays a key role in every part of the illegal drugs industry – here’s how it works – https://theconversation.com/money-laundering-plays-a-key-role-in-every-part-of-the-illegal-drugs-industry-heres-how-it-works-251288

    MIL OSI – Global Reports

  • MIL-OSI Security: Employee at Multinational DVD Company Charged with Stealing, Selling Pre-Release Commercial DVDs for Blockbuster Films

    Source: United States Attorneys General

    A worker at a DVD and Blu-ray manufacturing and distribution company used by major movie studios was arrested today in Memphis, Tennessee, for allegedly stealing DVDs and Blu-rays of blockbuster movies from the company and selling them before their official scheduled release dates. A digital copy of at least one of the stolen Blu-rays was illegally distributed tens of millions of times over the internet, causing the copyright owner tens of millions of dollars in losses.

    According to court documents, Steven R. Hale, 37, of Memphis, worked for a multinational company that, among other things, manufactured and distributed DVDs and Blu-rays of movies. From approximately February 2021 to March 2022, Hale allegedly stole numerous “pre-release” DVDs and Blu-rays, that is, discs being prepared for commercial distribution in the United States and not available for sale to the public. These included DVDs and Blu-rays for such popular films as “F9: The Fast Saga,” “Venom: Let There Be Carnage,” “Godzilla v. Kong,” “Shang-Chi and the Legend of the Ten Rings,” “Dune,” and “Black Widow.” Hale allegedly sold the DVDs and Blu-rays through e-commerce sites. At least one pre-release Blu-ray that Hale allegedly stole and sold, “Spider-Man: No Way Home,” was “ripped” — that is, extracted from the Blu-ray by bypassing the encryption that prevents unauthorized copying — and copied. That digital copy was then illegally made available over the internet more than a month before the Blu-ray’s official scheduled release date. Copies of “Spider-Man: No Way Home” were downloaded tens of millions of times, with an estimated loss to the copyright owner of tens of millions of dollars.

    The indictment, unsealed today, charges Hale with two counts of criminal copyright infringement and one count of interstate transportation of stolen goods. If convicted, he faces a maximum penalty of five years in prison on each criminal copyright infringement count and 10 years in prison on the interstate transportation of stolen goods count. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Reagan Fondren for the Western District of Tennessee, and Special Agent in Charge Joseph E. Carrico of the FBI Nashville Field Office made the announcement.

    The FBI is investigating the case.

    Senior Counsel Matthew A. Lamberti and Trial Attorney Debra Ireland of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Raney Irwin for the Western District of Tennessee are prosecuting the case.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI

  • MIL-OSI USA: Gov. Kemp Signs AFY25 Budget – Delivering Hurricane Relief, Tax Refunds, and Major One-Time Investments

    Source: US State of Georgia

    ATLANTA – Governor Brian P. Kemp, joined by First Lady Marty Kemp, Lt. Governor Burt Jones, Speaker Jon Burns, House and Senate Appropriations Chairmen Tillery and Hatchett, constitutional officers, and members of the Georgia General Assembly, today signed the Amended Budget for Fiscal Year 2025

    Excerpt of Governor Kemp’s Remarks

    I want to start by thanking the great legislative partners you see behind us and those next to me, including Lt. Governor Burt Jones, Speaker Jon Burns, Chairman Blake Tillery, Chairman Matt Hatchett, and the members of the General Assembly from both chambers and parties who overwhelmingly voted for this budget.

    We’re also glad to be joined by the Constitutional Officers here with us today and the nation’s best First Lady, Marty Kemp!

    I also want to thank OPB Director Rick Dunn and his team for all the time and hard work they put into the budget process each year alongside our partners in the House and Senate Budget Offices and all the time and effort they still have left to give as we work on the big budget. Let’s give his team a round of applause.

    Today, I’ll sign the amended budget for Fiscal Year 2025… a budget that gives relief to Georgians devastated by Hurricane Helene… makes our schools and communities safer through strategic investments… and yet again returns hard-earned money to the taxpayers. 

    All of this investment is designed to benefit our local communities but it’s also going to keep Georgians working in all parts of the state during these uncertain economic times.

    As we all know too well, inflation may have come down, but high prices haven’t. And that’s why this budget includes 1 billion dollars for another one-time refund for hardworking taxpayers!

    And as just a reminder to you all behind me, we still need the General Assembly to pass the enabling legislation.

    I’m sure some of these men and women up here will help us out with that later today!

    And as soon as we pass the second tax cut acceleration measure, we’ll be able to keep even more of Georgians’ money in their pockets… because they know how to spend it better than the government does!

    My goal working with the members of the General Assembly who have been such strong supporters in these measures has been to help Georgians fighting through 40-year-high inflation. 

    To give them a chance during these challenging times to keep their businesses going and provide for their families by putting more money in their pockets. And to help them and their children have good-paying jobs by developing an environment that attracts business and opportunity.

    That’s what people voted for in November of 2024; that’s what we’ve all been doing; and that’s what we’re going to keep doing!

    So, thank you, legislators, for helping us keep Georgia the best place to live, work, and raise a family through budgets like this.

    You can watch Governor Kemp’s full remarks and the signing of the budget here.

    “This budget includes critical midyear adjustments for Georgia’s education system, economic development projects, transportation infrastructure and public safety,” said Lt. Governor Burt Jones. “Additionally, over $250 million is included for Georgia’s agriculture and timber communities impacted by Hurricane Helene, along with relief for our fellow Georgians and local communities for recovery and cleanup efforts. I want to thank Governor Kemp, Speaker Burns, Chairman Tillery, and all members of the Senate Appropriations Committee for their hard work to ensure we passed a balanced and fiscally conservative budget, as we prepare for fiscal year 2026. Georgia is a shining example of how to budget efficiently and effectively, while putting Georgian’s hard earned dollars back in their pockets. I look forward to our continued work to appropriate taxpayer dollars in a fiscally, conservative manner.”

    “This budget reaffirms Georgia’s commitment to making strategic investments that strengthen and uplift every community, family, and citizen across our great state—all while putting money back in the pockets of taxpayers,” said Speaker Jon Burns. “As we look ahead, the House is looking forward to working alongside Governor Kemp to continue prioritizing fiscally responsible and measured investments that secure the future success of our state for generations to come.”

    In addition to investments in healthcare, public safety, education, and returning $1 billion to taxpayers through a third one-time special tax refund, the amended budget includes investments and allocations for:

    • Hurricane Helene Relief: More then $867 million for response costs and relief, including but not limited to, one-time grants to public rural and critical access hospitals included in the major disaster declaration area to assist in financial stabilization and recovery efforts, disaster relief assistance to impacted farmers and timber producers, and grants to non-profits for Hurricane Helene rebuilding and recovery efforts.
    • Education and Workforce Development: $140 million in additional allocations to fully fund QBE and support our local school systems to help us build an unrivaled workforce as we work to make Georgia the Top State for Talent.
    • Public Safety and Corrections: More than $434 million in new funding for the Department of Corrections to fortify state facilities, invest in Corrections Officers, and equip them with the tools they need to be effective and efficient.
    • Fighting Human Trafficking: $3.5 million to design a recovery center for victims of human trafficking – an effort championed by First Lady Marty Kemp – and over $187,000 to expand the Human Trafficking Prosecution Unit to the Macon and Augusta regions.
    • School Security: An additional $50 million in one-time funds for another round of security grants to all K-12 public schools.
    • Coastal Water Infrastructure: $501.7 million in funding for the development and construction of water infrastructure in Georgia’s coastal region to meet the growing demand due to historic economic development.
    • Local Water and Sewer Infrastructure: Over $266 million in funding for the Georgia Environmental Finance Authority to support water and sewer infrastructure development projects across Georgia.
    • Local Road Infrastructure: $265 million into the local maintenance and improvement grant program and $46 million to the Georgia Transportation Infrastructure Bank’s grant and loan program. 
    • Combating Wildfires: $4.7 million for the Forestry Commission to purchase a new fire suppression helicopter

    MIL OSI USA News

  • MIL-OSI: EV Realty Acquires EV Charging Platform Gage Zero’s Assets to Scale Truck Fleet Charging and Meet Long-Term Market Demand

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, March 06, 2025 (GLOBE NEWSWIRE) — EV Realty, Inc. (“EV Realty”), an EV infrastructure development platform powering commercial fleets, today announced that it has acquired a strategic portfolio of assets from Gage Zero, an Austin-based company focused on fleet electrification and infrastructure development for local, regional, and drayage trucking fleets.

    Gage Zero’s approach to the market, prioritizing partnerships, industry leadership, and an equitable energy transition, generated a strategic portfolio of assets and customer relationships that complements EV Realty’s development platform strengths and growing portfolio of grid-ready, shovel-ready sites throughout California. This transaction combines EV Realty’s proven expertise in infrastructure development and deployment and Gage Zero’s active development projects and deep customer relationships with established regional trucking and logistics companies.

    “Commercial fleet electrification continues to advance as vehicle manufacturers make production and supply chain investments, battery costs decline, and leading fleets—including many of Gage Zero’s partners—see the potential for greater efficiency and lower costs associated with EV trucking,” said Patrick Sullivan, EV Realty’s Co-Founder and Chief Executive Officer. “The combination of our two portfolios provides our shared customers more opportunity to plan around electrification within a broadly served regional network, which opens new freight lanes, allows trucks to be used more, and ultimately drives down costs for our customers, enabling a transition to EVs that makes dollars and sense.”     

    “We’re excited to partner with EV Realty through this acquisition. Gage Zero’s reputation in the space, prioritizing demand-led development, pairs well with EV Realty’s disciplined approach to development and its construction-ready grid-advantaged real estate portfolio. Together, we will leverage EV Realty’s substantial investment capital and proven expertise in constructing and operating EV charging infrastructure projects to deliver even greater value to our stakeholders,” said Zeina El-Azzi, Co-Founder and Chief Executive Officer of Gage Zero. “The DNA and approach of our two platforms are complementary and aligned, and this transaction makes the combined projects stronger and more equipped to deliver for our customers amidst a rapidly evolving market and regulatory environment.”

    Late last year, EV Realty announced a charging site acquisition in Torrance, CA, joining its growing portfolio of charging hubs currently under development in California. The company is also developing two hubs in San Bernardino and one in Livermore.

    Gage Zero’s development portfolio in California includes proposed charging hub projects which will expand EV Realty’s long-term network to serve its customers in locations including Long Beach, Ontario, Los Angeles, San Diego, Fresno, Oakland, and Sacramento. Other assets acquired are in Illinois and Texas, enabling medium-term expansion into additional key markets where zero-emission freight movement is gaining traction led by demand. As part of this transaction, key members of Gage Zero’s team will be joining EV Realty, ensuring continuity to deliver results for customers, partners, and key stakeholders.

    About EV Realty
    EV Realty develops, deploys, and owns charging infrastructure critical to electrifying commercial fleets in the U.S. at scale. The company accelerates the adoption of large EV fleets by focusing on the fundamental constraint all electric fleets face: low-cost, reliable, and expandable access to grid-scale power. EV Realty is developing a network of grid-optimized, large-scale EV charging hubs for delivery, logistics, and services fleet customers. Our Powered Properties™ serve multiple commercial fleets in secure, high-power locations with guaranteed charging access and availability, and are located proximate to major logistics corridors. By aggregating multiple fleets with shared private infrastructure in grid-ready locations, EV Realty charging hubs reduce upfront and recurring costs for fleets, optimize charging times and provide high utilization rates. Learn more about EV Realty and how it is transforming fleet charging at www.evrealtyus.com.

    About Gage Zero
    Gage Zero is a fleet electrification solutions company based in Austin, Texas building a zero emission future for people and the planet. Our women-led team of clean energy and transportation experts deploys capital, builds reliable infrastructure, and provides comprehensive, cost-effective electrification services that benefit commercial transportation operators, enrich communities, and support local economies. We believe industries working together can empower everyone to participate in a cleaner future.

    The MIL Network

  • 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: Asure Announces Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Reports Full Year 2024 Revenues of $119.8 million

    Full Year 2024 Recurring Revenues Grew 15% from Prior Year

    Recurring Revenues Grew to 96% of Total Revenues from 84% in the Prior Year

    AUSTIN, Texas, March 06, 2025 (GLOBE NEWSWIRE) — Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Financial Highlights

    • Revenue of $30.8 million, up 17% year over year, excluding ERTC revenue up 22% from prior year fourth quarter
    • Recurring revenue of $28.5 million, up 14% from prior year fourth quarter
    • Net loss of $3.2 million versus a net loss of $3.6 million during prior year fourth quarter
    • EBITDA (1) of $3.4 million versus $1.1 million from prior-year fourth quarter
    • Adjusted EBITDA (1) of $6.2 million, versus $2.8 million from prior-year fourth quarter
    • Gross profit of $20.9 million versus $17.8 million from prior-year fourth quarter
    • Non-GAAP gross profit (1) of $22.5 million (Non-GAAP gross margin (1) of 73%) versus $18.8 million (and 72% in prior-year fourth quarter)

    Full Year 2024 Financial Highlights

    • Revenue of $119.8 million increased slightly year over year, excluding ERTC revenue up 17% from prior year
    • Recurring revenue of $114.5 million up 15% from prior year
    • Net loss of $11.8 million versus prior year net loss of $9.2 million
    • EBITDA (1) of $11.4 million versus $14.3 million in the prior year
    • Adjusted EBITDA (1) of $22.5 million versus $23.3 million in the prior year
    • Gross profit of $82.1 million versus $85.5 million in the prior year
    • Non-GAAP gross profit (1) of $88.2 million versus $90.3 million in the prior year

    Recent Business Highlights

    • In January 2025 we signed a major multi-year agreement with an industry leader in audit, consulting, tax and advisory  services to resell our Payroll and Payroll Tax Management solutions. The multi-year agreement will deliver comprehensive payroll and payroll tax management services for the firm’s clients enabling them to offer these services for the first time. 
    • We announced the introduction of Luna, a groundbreaking AI agent designed to enhance payroll and HR management. Unlike traditional generative AI chatbots, Luna is an advanced AI agent that understands Asure’s suite of products, serves as an industry expert, and most importantly, can act on behalf of both employees through self-service and business owners and administrators.
    • Jay Whitehead joined Asure in January 2025 as Senior Vice President to lead our AsurePay™ Platinum VIP Banking card and Marketplace businesses. He is a seasoned entrepreneur, and HCM thought leader who we expect to drive innovation and foster strategic partnerships at Asure.

    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Management Commentary

    “We are pleased to report strong results for 2024, demonstrating the continued momentum of our business. Excluding the one-time impact of ERTC revenue, our fourth-quarter revenue grew 22% year-over-year, reaching $30.8 million—an impressive finish to the year. For the full year, total revenue increased modestly to $119.8 million, but when adjusted to exclude ERTC, our revenue growth was 17% year-over-year, underscoring the strength of our core business. Recurring revenue, the backbone of our model, grew 15% year-over-year and now represents 96% of total revenue, up from 84% in 2023. Additionally, our contracted revenue backlog continued to expand, providing further visibility into future growth,” said Asure Chairman and CEO Pat Goepel. 

    “Our performance in 2024 was particularly strong in key areas, including our Payroll Tax Management product, which drove several major multi-year agreements with enterprise clients. The success of this product, along with our growing backlog, reinforces the durability of our revenue streams and positions us well for the future.” 

    “We executed our strategy despite the anticipated headwind of replacing one-time ERTC revenue, and we are entering 2025 with a solid foundation for continued growth. Our plan for 2025 includes both organic and inorganic expansion, supported by the significant investments we’ve made in technology, operations, and new product development. With these improvements, we are confident in our ability to drive sustained, long-term growth.” 

    First Quarter 2025 and Full Year 2025 Revenue Guidance Ranges

    The Company is providing the following guidance for the first quarter 2025 and full year 2025 based on the Company’s year-to-date results and recent business trends. The guidance for our first quarter 2025 and the full year 2025 excludes any contribution from future potential acquisitions.

    Guidance for 2025

    Guidance Range   Q1-2025   FY-2025
    Revenue $ 33.0 M – 35.0 M $ 134.0 M -138.0 M
    Adjusted EBITDA(1) $ 6.0 M -7.0 M   23% -24%
             

    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does.

    Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.

    Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.

    Management’s projections are based on management’s current beliefs and assumptions about the Company’s business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2025 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 5 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry.

    Conference Call Details

    Asure management will host a conference call on Thursday, March 6, 2025, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.

    About Asure Software, Inc.

    Asure (Nasdaq: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure’s suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company’s approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com

    Non-GAAP and Adjusted Financial Measures

    This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.

    Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.

    Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.

    Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.

    Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.

    EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.

    Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.

    Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

    Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.

    Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

    Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.

    Income Taxes. The Company excludes income taxes, both at the federal and state levels.

    One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.

    Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.

    Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.

    Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.

    Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.

    Use of Forward-Looking Statements

    This press release contains certain statements made by management that may constitute “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP, non-U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of “forward-looking statements” include statements regarding our strategy, future operations, financial condition, results of operations, projected costs, revenue growth, earnings, and plans and objectives of management. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Additionally, we are under no obligation to update any of the forward-looking statements after the date of this press release or to confirm such statements to actual results.

    The risks and uncertainties referred to above include—but are not limited to— risks associated with breaches of the Company’s security measures; risks related to material weaknesses; possible fluctuations in the Company’s financial and operating results; privacy concerns and laws and other regulations may limit the effectiveness of our applications; the financial and other impact of any previous and future acquisitions; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; risk of our software and solutions not functioning adequately; interruptions, delays or changes in the Company’s services or the Company’s Web hosting; may incur debt to meet future capital requirements; volatility and weakness in bank and capital markets; access to additional capital; significant costs as a result of operating as a public company; the expiration of Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims and the corresponding cash collections of existing receivables; the inability to continue to release timely updates for changes in laws; the inability to develop new and improved versions of the Company’s services and technological developments; customer’s nonrenewal of their agreements and other similar changes could negatively impact revenue, operating results and financial conditions; the exposure of market, interest, credit and liquidity risk on client funds held int rust; the Company’s operation in highlight competitive markets; risk that our clients could have insufficient funds that could result in limitations in the ability to transmit ACH transactions; impairment of intangible assets; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; various financial aspects of the Company’s Software-as-a-Service model; adverse effects to our business a result of claims, lawsuits, and other proceedings; issues in the use of artificial intelligence in our HCM products and services; adverse changes to financial accounting standards to the Company; inability to maintain third-party licensed software; evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet; factors affecting the Company’s deferred tax assets and ability to value and utilize them; the nature of the Company’s business model; inability to adopt new or correctly interpret existing money service and money transmitter business status; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; interruptions to supply chains and extended shut down of businesses; potential enactment of adverse tax laws, regulation, political, economic and social factors; potential sales of a substantial number of shares of our common stock along with its volatility; risks associate with potential equity-related transactions including dividends, rights under the stockholder plan to discourage certain actions and other impacts as a result of actions of our stockholders.

    Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025.

    The forward-looking statements, including the financial guidance and 2025 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based. © 2025 Asure Software, Inc. All rights reserved

     
    ASURE SOFTWARE, INC.
    CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)
           
      December 31, 2024   December 31, 2023
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 21,425     $ 30,317  
    Accounts receivable, net of allowance for credit losses of $6,328 and $4,787 at December 31, 2024 and December 31, 2023, respectively   18,154       14,202  
    Inventory   195       155  
    Prepaid expenses and other current assets   4,888       3,471  
    Total current assets before funds held for clients   44,662       48,145  
    Funds held for clients   192,615       219,075  
    Total current assets   237,277       267,220  
    Property and equipment, net   19,669       14,517  
    Goodwill   94,724       86,011  
    Intangible assets, net   69,114       62,082  
    Operating lease assets, net   4,041       4,991  
    Other assets, net   11,813       9,047  
    Total assets $ 436,638     $ 443,868  
    LIABILITIES AND STOCKHOLDERSEQUITY      
    Current liabilities:      
    Current portion of notes payable $ 7,008     $ 27  
    Accounts payable   1,364       2,570  
    Accrued compensation and benefits   4,485       6,519  
    Operating lease liabilities, current   1,438       1,490  
    Other accrued liabilities   6,600       3,862  
    Deferred revenue   8,363       6,853  
    Total current liabilities before client fund obligations   29,258       21,321  
    Client fund obligations   194,378       220,019  
    Total current liabilities   223,636       241,340  
    Long-term liabilities:      
    Deferred revenue   3,430       16  
    Deferred tax liability   2,612       1,728  
    Notes payable, net of current portion   5,709       4,282  
    Operating lease liabilities, noncurrent   3,578       4,638  
    Other liabilities   358       209  
    Total long-term liabilities   15,687       10,873  
    Total liabilities   239,323       252,213  
    Stockholders’ equity:      
    Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding          
    Common stock, $0.01 par value; 44,000 shares authorized; 26,671 and 25,382 shares issued, 26,671 and 24,998 shares outstanding at December 31, 2024 and December 31, 2023, respectively   267       254  
    Treasury stock at cost, zero(1)and 384 shares at December 31, 2024 and December 31, 2023, respectively         (5,017 )
    Additional paid-in capital   504,849       487,973  
    Accumulated deficit   (307,226 )     (290,440 )
    Accumulated other comprehensive loss   (575 )     (1,115 )
    Total stockholders’ equity   197,315       191,655  
    Total liabilities and stockholders’ equity $ 436,638     $ 443,868  
    (1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Consolidated Statement of Changes in Stockholders’ Equity for the impact of this transaction.
     
     
    ASURE SOFTWARE, INC.
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, except per share amounts)
           
      Three Months Ended
    December 31,
      Twelve Months Ended
    December 31,
      2024   2023   2024   2023
                   
    Revenue:              
    Recurring $ 28,521     $ 24,985     $ 114,471     $ 99,734  
    Professional services, hardware and other   2,271       1,279       5,321       19,348  
    Total revenue   30,792       26,264       119,792       119,082  
    Cost of sales   9,864       8,425       37,685       33,545  
    Gross profit   20,928       17,839       82,107       85,537  
    Operating expenses:              
    Sales and marketing   6,945       6,422       28,316       28,734  
    General and administrative   9,940       9,747       40,499       39,333  
    Research and development   2,103       1,739       7,807       6,846  
    Amortization of intangible assets   4,432       3,694       16,222       13,623  
    Total operating expenses   23,420       21,602       92,844       88,536  
    Loss from operations   (2,492 )     (3,763 )     (10,737 )     (2,999 )
    Interest income   151       326       913       1,342  
    Interest expense   (362 )     (302 )     (1,024 )     (5,639 )
    Loss on extinguishment of debt                     (1,517 )
    Other income (expense), net   (2 )     (1 )     8       (292 )
    Loss from operations before income taxes   (2,705 )     (3,740 )     (10,840 )     (9,105 )
    Income tax expense (benefit)   499       (158 )     933       109  
    Net loss   (3,204 )     (3,582 )     (11,773 )     (9,214 )
    Other comprehensive income (loss):              
    Unrealized gain (loss) on marketable securities   (565 )     1,581       540       1,368  
    Comprehensive loss $ (3,769 )   $ (2,001 )   $ (11,233 )   $ (7,846 )
                   
    Basic and diluted loss per share              
    Basic $ (0.12 )   $ (0.14 )   $ (0.45 )   $ (0.42 )
    Diluted $ (0.12 )   $ (0.14 )   $ (0.45 )   $ (0.42 )
                   
    Weighted average basic and diluted shares              
    Basic   26,602       24,907       26,054       22,138  
    Diluted   26,602       24,907       26,054       22,138  
                                   
     
    ASURE SOFTWARE, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
       
      Year Ended December 31,
      2024   2023
           
    Cash flows from operating activities:      
    Net loss $ (11,773 )   $ (9,214 )
    Adjustments to reconcile loss to net cash provided by operations:      
    Depreciation and amortization   22,142       19,135  
    Amortization of operating lease assets   1,386       1,481  
    Amortization of debt financing costs and discount   726       820  
    Non-cash interest expense   298       1,471  
    Net accretion of discounts and amortization of premiums on available-for-sale securities   (377 )     (119 )
    Provision for expected losses   46       2,047  
    Provision for deferred income taxes   884       225  
    Loss on extinguishment of debt         990  
    Net realized gains on sales of available-for-sale securities   (2,609 )     (2,257 )
    Share-based compensation   6,444       5,430  
    Loss on disposals of long-term assets         132  
    Change in fair value of contingent purchase consideration         175  
    Changes in operating assets and liabilities:      
    Accounts receivable   (3,998 )     (4,126 )
    Inventory   (41 )     97  
    Prepaid expenses and other assets   (1,886 )     5,101  
    Operating lease right-of-use assets         546  
    Accounts payable   (1,206 )     376  
    Accrued expenses and other long-term obligations   (1,103 )     87  
    Operating lease liabilities   (1,555 )     (1,118 )
    Deferred revenue   2,010       (2,379 )
    Net cash provided by operating activities   9,388       18,900  
    Cash flows from investing activities:      
    Acquisition of intangible assets   (13,256 )     (7,651 )
    Purchases of property and equipment   (692 )     (1,585 )
    Software capitalization costs   (10,187 )     (7,027 )
    Purchases of available-for-sale securities   (15,643 )     (27,647 )
    Proceeds from sales and maturities of available-for-sale securities   20,522       14,385  
    Net cash used in investing activities   (19,256 )     (29,525 )
    Cash flows from financing activities:      
    Proceeds from notes payable, net of issuance costs   4,995        
    Payments of notes payable   (420 )     (35,627 )
    Debt extinguishment costs         (250 )
    Net proceeds from issuance of common stock   1,370       46,800  
    Capital raise fees   (132 )     (338 )
    Payments made on amounts due for the acquisition of intangibles   (1,513 )     (311 )
    Net change in client fund obligations   (26,342 )     13,931  
    Net cash provided by (used in) financing activities   (22,042 )     24,205  
    Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents   (31,910 )     13,580  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period   177,622       164,042  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $ 145,712     $ 177,622  
                   
     
    ASURE SOFTWARE, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
    (in thousands)
       
      Year Ended December 31,
      2024
      2023
           
    Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets
    Cash and cash equivalents $ 21,425     $ 30,317  
    Restricted cash and restricted cash equivalents included in funds held for clients   124,287       147,305  
    Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 145,712     $ 177,622  
           
    Supplemental information:      
    Cash paid for interest $     $ 3,140  
    Cash paid for income taxes $ 18     $ 432  
           
    Non-cash investing and financing activities:      
    Acquisition of intangible assets $ 5,338     $ 357  
    Notes payable issued for acquisitions $ 3,107     $ 1,209  
    Shares issued for acquisitions $ 9,125     $ 2,543  
                   
     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
    (unaudited)
                     
    (in thousands) Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23
    Revenue(1) $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064  
                     
    Gross Profit to non-GAAP Gross Profit                
    Gross Profit $ 20,928   $ 19,704   $ 18,868   $ 22,607   $ 17,839   $ 21,280   $ 22,018   $ 24,400  
    Gross Margin   68.0 %   67.2 %   67.3 %   71.4 %   67.9 %   72.5 %   72.4 %   73.8 %
                     
    Share-based Compensation   44     44     43     40     32     28     46     31  
    Depreciation   1,190     1,232     1,145     1,110     921     984     1,309     1,009  
    Amortization – intangibles   50     50     50     50     50     50     50     268  
    One-time expenses                
    Settlements, penalties & interest   25     2     3         (6 )   8         4  
    Acquisition and transaction costs   221     367     264     39                  
    Other non-recurring expenses   84                              
    Non-GAAP Gross Profit $ 22,542   $ 21,399   $ 20,373   $ 23,846   $ 18,836   $ 22,350   $ 23,423   $ 25,712  
    Non-GAAP Gross Margin   73.2 %   73.0 %   72.6 %   75.3 %   71.7 %   76.2 %   77.0 %   77.8 %
                     
    Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
    Sales and Marketing Expense $ 6,945   $ 6,680   $ 6,924   $ 7,767   $ 6,422   $ 6,597   $ 8,515   $ 7,200  
                     
    Share-based Compensation   251     269     237     243     180     210     149     124  
    Depreciation       1         1     1              
    One-time expenses                
    Settlements, penalties & interest   78     (5 )   5     18     6     30     4     11  
    Acquisition and transaction costs   9     68     37     11                  
    Other non-recurring expenses   52                         180      
    Non-GAAP Sales and Marketing Expense $ 6,555   $ 6,347   $ 6,645   $ 7,494   $ 6,235   $ 6,357   $ 8,182   $ 7,065  
                     
    General and Administrative Expense to non-GAAP General and Administrative Expense
    General and Administrative Expense $ 9,940   $ 10,378   $ 10,118   $ 10,063   $ 9,747   $ 9,294   $ 10,336   $ 9,956  
                     
    Share-based Compensation   1,081     1,187     1,122     1,535     980     936     1,298     1,142  
    Depreciation   269     264     256     251     225     200     234     210  
    One-time expenses                
    Settlements, penalties & interest   142     377     304     98     284     101     432     102  
    Acquisition and transaction costs   282     371     245     57     51              
    Other non-recurring expenses   220     253         86     53         453      
    Non-GAAP General and Administrative Expense $ 7,946   $ 7,926   $ 8,191   $ 8,036   $ 8,154   $ 8,057   $ 7,919   $ 8,502  
                     
    Research and Development Expense to non-GAAP Research and Development Expense
    Research and Development Expense $ 2,103   $ 1,973   $ 1,962   $ 1,769   $ 1,739   $ 1,803   $ 1,325   $ 1,979  
                     
    Share-based Compensation   87     90     86     85     69     76     89     40  
    One-time expenses                
    Settlements, penalties & interest   21         27     31                  
    Acquisition and transaction costs   153     195     369     147                  
    Other non-recurring expenses   29                              
    Non-GAAP Research and Development Expense $ 1,813   $ 1,688   $ 1,480   $ 1,506   $ 1,670   $ 1,727   $ 1,236   $ 1,939  
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
    (unaudited)
                     
    (in thousands) Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23
    Revenue(1) $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064  
                     
    GAAP Net (Loss) Income to Adjusted EBITDA
    GAAP Net (Loss) Income $ (3,204 ) $ (3,901 ) $ (4,360 ) $ (308 ) $ (3,582 ) $ (2,206 ) $ (3,765 ) $ 339  
                     
    Interest expense, net   211     109     (53 )   (156 )   (24 )   782     1,593     1,944  
    Income taxes   499     170     231     33     (158 )   (123 )   627     (237 )
    Depreciation   1,460     1,497     1,402     1,361     1,148     1,185     1,542     1,219  
    Amortization – intangibles   4,482     4,345     4,096     3,499     3,743     3,384     3,343     3,570  
    EBITDA $ 3,448   $ 2,220   $ 1,316   $ 4,429   $ 1,127   $ 3,022   $ 3,340   $ 6,835  
    EBITDA Margin   11.2 %   7.6 %   4.7 %   14.0 %   4.3 %   10.3 %   11.0 %   20.7 %
                     
    Share-based Compensation   1,463     1,591     1,488     1,902     1,260     1,251     1,582     1,337  
    One Time Expenses                
    Settlements, penalties & interest   266     375     339     147     283     140     436     117  
    Acquisition and transaction costs   665     1,001     914     254     51              
    Other non-recurring expenses   385     253         86     53         633      
    Other expense (income), net   2             (10 )   1     1,800     93     (83 )
    Adjusted EBITDA $ 6,229   $ 5,440   $ 4,057   $ 6,808   $ 2,775   $ 6,213   $ 6,084   $ 8,206  
    Adjusted EBITDA Margin   20.2 %   18.6 %   14.5 %   21.5 %   10.6 %   21.2 %   20.0 %   24.8 %
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

    Investor Relations Contact
    Patrick McKillop
    Vice President, Investor Relations
    617-335-5058
    patrick.mckillop@asuresoftware.com 

    The MIL Network

  • MIL-OSI: Calian Announces Upcoming Participation at Investor Conference

    Source: GlobeNewswire (MIL-OSI)

    OTTAWA, Ontario, March 06, 2025 (GLOBE NEWSWIRE) — Calian® Group Ltd. (TSX:CGY), a diverse products and services company providing innovative healthcare, communications, learning and cybersecurity solutions, announced today that the Company will be participating at the following investor conference:

    37thAnnual ROTH Conference
    Date: March 17, 2025
    Location: Dana Point, CA

    About Calian

    www.calian.com

    We keep the world moving forward. Calian® helps people communicate, innovate, learn and lead safe and healthy lives. Every day, our employees live our values of customer commitment, integrity, innovation, respect and teamwork to engineer reliable solutions that solve complex challenges. That’s Confidence. Engineered. A stable and growing 40-year company, we are headquartered in Ottawa with offices and projects spanning North American, European and international markets. Visit calian.com to learn about innovative healthcare, communications, learning and cybersecurity solutions.

    Product or service names mentioned herein may be the trademarks of their respective owners.

    Investor Relations inquiries:

    ir@calian.com

    DISCLAIMER
    Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

    Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8
    Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: info@calian.com

    The MIL Network

  • MIL-OSI: Jayud Global Logistics Appoints Hu Mengmeng as Chief Financial Officer

    Source: GlobeNewswire (MIL-OSI)

    SHENZHEN, China, March 06, 2025 (GLOBE NEWSWIRE) — Jayud Global Logistics Limited (NASDAQ: JYD) (“Jayud” or the “Company”), a leading end-to-end supply chain solution provider based in Shenzhen specializing in cross-border logistics, today announced the appointment of Ms. HU Mengmeng as Chief Financial Officer, effective March 1, 2025. She succeeds Ms. Lin Bao, who is stepping down from her position as CFO for personal reasons.

    Ms. Hu (46) brings over 20 years of extensive experience in the shipping and logistics sector, having held senior financial positions at several renowned multinational companies, including Maersk, CSAV Shipping Co, Ltd, and CMA CGM. Her expertise spans comprehensive financial management, strategic cost control, cash flow optimization, and cross-border operations.

    “On behalf of the Board and the entire Jayud team, I would like to express our sincere gratitude to Ms. Lin Bao for her dedicated service and significant contributions as CFO,” said Xiaogang Geng, Chairman of the Board and CEO of Jayud Global Logistics. “We respect her decision to step down and wish her all the best in her future endeavors.”

    “We are delighted to welcome Ms. Hu to our executive leadership team. Her wealth of experience in financial management within the logistics industry, coupled with her strategic vision and proven track record of optimizing financial operations, will be instrumental as we expand our global footprint and enhance shareholder value.”

    “I am honored to join Jayud Global Logistics at such an exciting time in the Company’s development,” said Ms. Hu. “I see tremendous opportunity to drive sustainable growth, leveraging my experience in the logistics sector to optimize financial strategies, enhance operational efficiency, and create additional value for our shareholders and customers.”

    Ms. Lin Bao will remain with the Company for a period to ensure a smooth transition of responsibilities to Ms. Hu. This transition period will facilitate knowledge transfer and maintain operational continuity in the Company’s financial management.

    Before joining Jayud, Ms. Hu served as Financial Director at Shihua Youshi Education Technology (Shenzhen) Co., Ltd. from 2017 to 2024, where she developed and implemented medium to long-term financial strategies and led comprehensive financial management initiatives. Previously, she held positions as Audit Manager at CMA CGM (China) Co., Ltd. Shenzhen Branch, Finance Manager at CSAV Shipping Co., Ltd., and Cost Manager at Maersk (China) Shipping Co., Ltd.

    Ms. Hu holds a Bachelor’s degree in Economics with a specialization in International Finance from Shenyang University of Technology. She is fluent in Chinese, Cantonese, and English.

    About Jayud Global Logistics Limited
    Jayud Global Logistics Limited is one of the leading Shenzhen-based end-to-end supply chain solution providers in China, focusing on cross-border logistics services. Headquartered in Shenzhen, the Company benefits from the unique geographical advantages of providing a high degree of support for ocean, air, and overland logistics. The Company has established a global operation nexus featuring logistic facilities throughout major transportation hubs in China and globally, with footprints in 12 provinces in Mainland China and 16 countries across six continents. Jayud offers a comprehensive range of cross-border supply chain solution services, including freight forwarding, supply chain management, and other value-added services. With its strong service capabilities and research and development capabilities in proprietary IT systems, the Company provides customized and efficient logistics solutions and develops long-standing customer relationships. For more information, please visit the Company’s website: https://ir.jayud.com.

    Forward-Looking Statements
    Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs, including the expectation that the Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as “may”, “will”, “expect”, “anticipate”, “aim”, “estimate”, “intend”, “plan”, “believe”, “is/are likely to”, “potential”, “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

    For more information, please contact:

    Jayud Global Logistics Limited
    Investor Relations Department
    Email: ir@jayud.com  

    Investor Relations Contact:
    Matthew Abenante, IRC
    President
    Strategic Investor Relations, LLC
    Tel: 347-947-2093
    Email: matthew@strategic-ir.com

    The MIL Network

  • MIL-OSI: FormFactor Partners with Delft Circuits to Revolutionize Quantum Computing Interfacing

    Source: GlobeNewswire (MIL-OSI)

    LIVERMORE, Calif., March 06, 2025 (GLOBE NEWSWIRE) — FormFactor, Inc. (NASDAQ: FORM), a leader in precision test and measurement solutions, and Delft Circuits, an innovator in high-density cryogenic cabling solutions, have teamed up to integrate Delft Circuits’ Cri/oFlex® product portfolio into FormFactor’s cryogenic test systems. This partnership addresses the growing demand for scalable, high-density interconnect solutions in quantum computing, enabling the industry to meet growing demands for computation power and efficient system interfacing.

    As quantum technology continues to evolve, systems must support higher channel densities to meet increasing computational requirements. FormFactor’s systems, currently equipped with 12 ISO-100 ports supporting up to 300 channels, will now integrate Delft Circuits’ high-density Cri/oFlex® cabling. This partnership enables up to 160 channels per port, with a total of 1920 channels, improving the overall performance and scalability of quantum systems, especially in environments where space and efficiency are critical.

    “Delft Circuits’ technology perfectly complements our systems, allowing us to offer our customers some of the highest channel densities in the industry while maintaining the precision and reliability FormFactor is known for,” said Thomas Fries, VP and GM, Emerging Growth Business Unit, FormFactor.

    Key Benefits of the Partnership:

    • Increased Channel Density: Delft Circuit’s Cri/oFlex® cabling provides up to 160 channels per port, enabling 1920 channels in total—driving the scalability needed for next-generation quantum computers.
    • Tailored for Space-Constrained Environments: Designed specifically for high-density interfacing in compact quantum computing fridges, facilitating seamless integration in limited spaces.
    • Scalable Pathway for Growth: Initial support for 80-160 channels with mK node and SMP-SMP jumpers, with future scalability to meet accelerating roadmaps.

    “Our partnership with FormFactor underscores the value of Cri/oFlex® technology in addressing the critical needs of quantum computing infrastructures. We are excited to bring our expertise to their robust portfolio and help advance the industry’s progress,” said Daan Kuitenbrouwer, Chief Commercial Officer and Founder at Delft Circuits.

    The collaboration is ideally positioned to transform quantum computing interfacing by offering a comprehensive solution that combines precision measurement with cutting-edge cabling technology—accelerating the scalability and reliability of next-generation quantum systems for researchers, developers, manufacturers, and infrastructure providers alike.

    About FormFactor
    FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full IC life cycle – from characterization, modeling, reliability, and design debug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

    About Delft Circuits
    Delft Circuits is a leading provider of dedicated quantum hardware, dedicated to supplying the best hardware for the quantum engineer and industry. With a focus on designing and developing i/o cabling solutions, the company has established itself as a trusted partner for leading national laboratories, blue-chip corporations, and ambitious professors. With a beachhead market in the quantum industry, Delft Circuits has already realized hundreds of i/o modules for almost a hundred customers. As an independent, dedicated quantum hardware supplier, the company is committed to pioneering i/o for advanced technologies. Delft Circuits proprietary cabling solutions were referenced by DARPA as the world’s state of the art. Investors in Delft Circuits include QuVest Capital, Scholt Group and High Tech Gründerfonds (HTGF). For more information, please visit: https://www.delft-circuits.com

    Forward-Looking Statements:

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the impact of this new partnership. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” and “continue,” the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

    FormFactor Investor Contact
    Stan Finkelstein
    Investor Relations
    (925) 290-4273
    ir@formfactor.com

    The MIL Network

  • MIL-OSI: Reliance Global Group Reports 2024 Results and Provides Business Update

    Source: GlobeNewswire (MIL-OSI)

    LAKEWOOD, N.J., March 06, 2025 (GLOBE NEWSWIRE) — Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance”, “we” or the “Company”) today provided a business update and reported financial results for the year ended December 31, 2024.

    “We are pleased to report continued revenue growth and strong operational execution in 2024,” said Ezra Beyman, Chairman and Chief Executive Officer of Reliance. “This year has been truly transformative for Reliance, driven by disciplined fiscal management, strategic investments in technology, and targeted acquisitions. Our OneFirm strategy has successfully integrated our agency operations into a unified, technology-driven platform, enhancing efficiency, reducing costs, and strengthening net operating results. These initiatives have significantly improved profitability and, we believe, positioned the Company for long-term, scalable growth in the evolving InsurTech landscape.”

    “Additionally, we believe the planned Spetner acquisition and the continued expansion of RELI Exchange’s AI-powered Quote & Bind platform are poised to drive significant value for the Company and its shareholders. Our Quote & Bind platform has revolutionized the insurance purchasing process, allowing agents to quickly generate competitive quotes and seamlessly bind policies in real time. By leveraging AI, automation, and advanced data analytics, we are enhancing efficiency, improving underwriting precision, and delivering superior service to our agents and their clients.”

    2024 Financial Highlights

    • Commission income revenue increased by $322,535, or 2%, to $14,054,361 in 2024, compared to $13,731,826 in 2023, attributed to sustained organic growth of our current in-place operations.
    • Commission expense increased by $456,660, or 12%, to $4,189,599 in 2024, compared to $3,732,939 in 2023, driven primarily by the Company’s commission income revenue mix.
    • Salaries and wages decreased by 4%, or $276,242, from $7,226,810 in 2024, versus $7,503,052 in 2023, demonstrating the Company’s ability to effectively leverage its talent (human capital) and continue to organically grow revenues.
    • General and administrative expenses increased nominally by $129,646, or 3%, to $4,219,635 in 2024, versus $4,089,989 in 2023, driven in part by acquisition related costs and general inflation, but offset by OneFirm efficiency enhancements.
    • Net loss decreased by $2,938,398, or 24%, to $9,071,584 in 2024, versus $12,009,982 in 2023. This positive swing is a result of less intangible impairment charges in the current year and the Company’s focus on streamlining its balance sheet which has previously been encumbered by certain fair value contingent and warrant liabilities that were liquidated or substantially reduced as of and for the year ended December 31, 2024, thus minimizing the impact of fair value swings affecting the Company’s profitability.
    • Adjusted EBITDA loss (“AEBITDA”), a non-GAAP financial measure, improved significantly during 2024, decreasing 39% or $205,573, from $(526,798) in 2023, to $(321,224) in 2024. This demonstrates the Company’s continued trend toward AEBITDA profitability, brought about through disciplined fiscal management and exciting organic operational growth.

    The Company also provided an update on its pending Spetner acquisition, which is in the final closing stages. Once closed, the acquisition is expected to expand Reliance’s insurance offerings, further strengthening its competitive position and enhancing its ability to serve a broader market with a more comprehensive suite of insurance solutions.

    Reliance has also expanded its RELI Exchange Quote & Bind platform, reinforcing its leadership in the InsurTech space. Initially launched in beta, the platform now includes more carriers and a broader range of insurance products, with further enhancements underway. Designed to streamline agent workflows, it enables instant quoting and policy binding, improving efficiency and accelerating policy issuance. AI-driven automation enhances underwriting accuracy, while access to top-tier carriers ensures competitive pricing and diverse coverage options.

    Moshe Fishman, Reliance’s Director of InsurTech and Operations, added “At Reliance, we are revolutionizing the insurance industry through cutting-edge technology and automation. With the continued expansion of our Quote & Bind platform, we are empowering agents with advanced tools that enhance efficiency, speed up deal closures, and maximize profitability. This initiative is a cornerstone of our strategy to make RELI Exchange the most comprehensive and accessible InsurTech solution in the industry.”

    Mr. Beyman concluded, “As we look ahead, the future for Reliance has never been brighter. With our disciplined approach to expansion, cutting-edge technology, and strategic acquisitions, we are well-positioned to capitalize on emerging opportunities in the rapidly evolving InsurTech landscape. The completion of the Spetner acquisition and the ongoing enhancements to our Quote & Bind platform are just the beginning of what we believe will be a period of unprecedented growth. We remain focused on innovation, operational excellence, and delivering superior service to our agents and customers. By staying true to our vision, we are confident in our ability to build Reliance into a highly profitable enterprise that generates sustainable long-term value for our shareholders. The momentum we have built in 2024 is only the foundation—we are excited for what lies ahead in 2025 and beyond.”

    Conference Call

    Reliance Global Group will host a conference call today at 4:30 PM Eastern Time to discuss the Company’s financial results for the fourth quarter and year ended December 31, 2024, as well as the Company’s corporate progress and other developments.

    The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 522829. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/52132 or on the investor relations section of the Company’s website, https://relianceglobalgroup.com/events-and-presentations/.

    A webcast replay will be available on the investor relations section of the Company’s website at https://relianceglobalgroup.com/events-and-presentations/ through March 6, 2026. A telephone replay of the call will be available approximately one hour following the call, through March 20, 2025, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 52132.

    About Reliance Global Group, Inc.

    Reliance Global Group, Inc. (NASDAQ: RELI) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company’s business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company’s business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail “brick and mortar” insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at https://www.relianceglobalgroup.com.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions and include statements such as the Company having built a best-in-class InsurTech platform, making RELI Exchange an even more compelling value proposition and further accelerating growth of the platform, rolling out several other services in the near future to RELI Exchange agency partners, building RELI Exchange into the largest agency partner network in the U.S., the Company moving in the right direction and the Company’s highly scalable business model driving significant shareholder value. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere and risks as and uncertainties related to: the Company’s ability to generate the revenue anticipated and the ability to build the RELI Exchange into the largest agency partner network in the U.S., and the other factors described in the Company’s most recent Annual Report on Form 10-K, as the same may be updated from time to time. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, the Company’s Quarterly Reports on Form 10-Q, the Company’s Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

    Contact:

    Crescendo Communications, LLC
    Tel: +1 (212) 671-1020
    Email: RELI@crescendo-ir.com

    INFORMATION REGARDING A NON-GAAP FINANCIAL MEASURE

    The Company believes certain financial measures which meet the definition of non-GAAP financial measures, as defined in Regulation G of the SEC rules, provide important supplemental information. Namely our key financial performance metric Adjusted EBITDA (“AEBITDA”) is a non-GAAP financial measure that is not in accordance with, or an alternative to, measures prepared in accordance with GAAP. “AEBITDA” is defined as earnings before interest, taxes, depreciation, and amortization (EBITDA) with additional adjustments as further outlined below, to result in Adjusted EBITDA (“AEBITDA”). The Company considers AEBITDA an important financial metric because it provides a meaningful financial measure of the quality of the Company’s operational, cash impacted and recurring earnings and operating performance across reporting periods. Other companies may calculate Adjusted EBITDA differently than we do, which might limit its usefulness as a comparative measure to other companies in the industry. AEBITDA is used by management in addition to and in conjunction (and not as a substitute) with the results presented in accordance with GAAP. Management uses AEBITDA to evaluate the Company’s operational performance, including earnings across reporting periods and the merits for implementing cost-cutting measures. We have presented AEBITDA solely as supplemental disclosure because we believe it allows for a more complete analysis of results of operations and assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Consistent with Regulation G, a description of such information is provided below herein and tabular reconciliations of this supplemental non-GAAP financial information to our most comparable GAAP information are contained below.

    We exclude the following items when calculating Adjusted EBITDA, and the following items define our non-GAAP financial measure “AEBITDA”:

      Interest and related party interest expense: Unrelated to core Company operations and excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Depreciation and amortization: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Goodwill and/or asset impairments: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Equity-based compensation: Non-cash compensation provided to employees and service providers, excluded to provide more meaningful supplemental information regarding the Company’s core cash impacted operational performance.
      Change in estimated acquisition earn-out payables: An earn-out liability is a liability to the seller upon an acquisition which is contingent on future earnings. These liabilities are valued at each reporting period and the changes are reported as either a gain or loss in the change in estimated acquisition earn-out payables account in the consolidated statements of operations. The gain or loss is non-cash, can be highly volatile and overall is not deemed relevant to ongoing operations, thus, it’s excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Recognition and change in fair value of warrant liabilities: This account includes changes to derivative warrant liabilities which are valued at each reporting period and could result in either a gain or loss. The period changes do not impact cash, can be highly volatile, and are unrelated to ongoing operations, and thus are excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Other income (expense), net: Includes non-routine income or expenses and other individually de minimis items and is thus excluded as unrelated to core operations of the company.
      Transactional costs: This includes expenses related to mergers, acquisitions, financings and refinancings, and amendments or modification to indebtedness. Thes costs are unrelated to primary Company operations and are excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Non-standard costs: This account includes non-standard non-operational items, related to costs incurred for a legal suit the Company has filed against one of the third parties involved in the discontinued operations and was excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Loss from discontinued operations before tax: This account includes the net results from discontinued operations, and since discontinued, are unrelated to the Company’s ongoing operations and thus excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
         

    The following table provides a reconciliation from net loss to AEBITDA for the periods ended December 31, 2024 and 2023, respectively:

        December 31,
    2024
        December 31,
    2023
     
    Net loss   $ (9,071,584 )   $ (12,009,982 )
    Adjustments:                
    Interest and related party interest expense     1,583,610       1,656,253  
    Depreciation and amortization     1,786,068       2,609,191  
    Asset impairment     3,922,110        
    Goodwill impairment           7,594,000  
    Equity-based compensation employees, directors, and service providers     858,108       1,272,155  
    Change in estimated acquisition earn-out payables     47,761       1,716,873  
    Other income, net     (51,345 )     (6,530 )
    Transactional costs     636,494       101,500  
    Non-standard costs     123,554       58,675  
    Recognition and change in fair value of warrant liabilities     (156,000 )     (5,503,647 )
    Loss from discontinued operations before tax           1,984,714  
    Total adjustments     8,750,360       11,483,185  
                     
    AEBITDA   $ (321,224 )   $ (526,798 )

    The MIL Network

  • MIL-OSI: Fidus Investment Corporation Announces Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Board of Directors Declared Total Dividends of $0.54 per Share for First Quarter 2025

    Base Dividend of $0.43 and Supplemental Dividend of $0.11 Per Share

    EVANSTON, Ill, March 06, 2025 (GLOBE NEWSWIRE) — Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Financial Highlights

    • Total investment income of $37.5 million
    • Net investment income of $18.6 million, or $0.55 per share
    • Adjusted net investment income of $18.4 million, or $0.54 per share(1)
    • Invested $120.3 million in debt and equity securities, including five new portfolio companies
    • Received proceeds from repayments and realizations of $122.8 million
    • Paid total dividends of $0.61 per share: regular quarterly dividend of $0.43 and supplemental dividend of $0.18 per share on December 27, 2024
    • Net asset value (“NAV”) of $655.7 million, or $19.33 per share, as of December 31, 2024

    Full Year 2024 Financial Highlights

    • Total investment income of $146.1 million
    • Net investment income of $74.6 million, or $2.29 per share
    • Adjusted net investment income of $75.4 million, or $2.31 per share(1)
    • Invested $394.5 million in debt and equity securities, including 16 new portfolio companies
    • Received proceeds from repayments and realizations of $276.9 million
    • Paid total dividends of $2.42 per share: regular quarterly dividends totaling $1.72 and supplemental dividends of $0.70 per share
    • Estimated spillover income (or taxable income in excess of distributions) as of December 31, 2024 of $45.6 million, or $1.34 per share

    Management Commentary

    “During the fourth quarter and fiscal year 2024, we extended our track record of growing our portfolio while maintaining sound credit quality overall by adhering to our proven strategy of investing in debt and equity investments,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation.  “Originations for the year exceeded repayments and realizations resulting in a 13.8% increase in assets under management on a fair value basis. Our portfolio generated 11.6% higher adjusted net investment income and produced $11.6 million of net realized gains. In 2024, we distributed a total of $2.42 per share to our shareholders.  For 2025, we remain committed to our strategy and our goals of growing net asset value over time, preserving capital and delivering attractive risk-adjusted returns to our shareholders.”

    (1) Supplemental information regarding adjusted net investment income:

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment adviser provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.

    Fourth Quarter 2024 Financial Results

    The following table provides a summary of our operating results for the three months ended December 31, 2024, as compared to the same period in 2023 (dollars in thousands, except per share data):

                           
      Three Months Ended December 31,              
      2024     2023     $ Change     % Change  
    Interest income $ 31,651     $ 29,511     $ 2,140       7.3 %
    Payment-in-kind interest income   2,095       1,973       122       6.2 %
    Dividend income   104       265       (161 )     (60.8 %)
    Fee income   2,998       3,522       (524 )     (14.9 %)
    Interest on idle funds   609       1,040       (431 )     (41.4 %)
    Total investment income $ 37,457     $ 36,311     $ 1,146       3.2 %
                           
    Net investment income $ 18,648     $ 16,939     $ 1,709       10.1 %
    Net investment income per share $ 0.55     $ 0.58     $ (0.03 )     (5.2 %)
                           
    Adjusted net investment income(1) $ 18,437     $ 18,837     $ (400 )     (2.1 %)
    Adjusted net investment income per share(1) $ 0.54     $ 0.65     $ (0.11 )     (16.9 %)
                           
    Net increase (decrease) in net assets resulting from operations $ 17,593     $ 26,430     $ (8,837 )     (33.4 %)
    Net increase (decrease) in net assets resulting from operations per share $ 0.52     $ 0.91     $ (0.39 )     (42.9 %)
                                   

    The $1.1 million increase in total investment income for the three months ended December 31, 2024, as compared to the same period in 2023 was primarily attributable to (i) a $2.3 million increase in total interest income (which includes payment-in-kind interest income) resulting from an increase in average debt investment balances outstanding, partially offset by a decrease in weighted average yield on debt investment balances outstanding, (ii) a $0.2 million decrease in dividend income due to decreased levels of distributions received from equity investments, (iii) a $0.5 million decrease in fee income resulting from a decrease in origination fees, partially offset by an increase in amendment and administrative fees, and (iv) a $0.4 million decrease in interest on idle funds due to a decrease in weighted average cash balances outstanding.

    For the three months ended December 31, 2024, total expenses, including the base management fee waiver and income tax provision, were $18.8 million, a decrease of $0.6 million, or (2.9%) from the $19.4 million of total expenses, including the base management fee waiver and income tax provision, for the three months ended December 31, 2023. The decrease was primarily attributable to (i) a $0.3 million increase in interest and financing expenses, (ii) a $0.6 million net increase in base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $0.1 million decrease in the income incentive fee and a $2.1 million decrease in capital gains incentive fee accrued, (iv) a $0.1 million decrease in professional fees, and (v) a $0.8 million increase in income tax provision.

    Net investment income increased by $1.7 million, or 10.1%, to $18.6 million during the three months ended December 31, 2024 as compared to the same period in 2023, as a result of the $1.1 million increase in total investment income and the $0.6 million decrease in total expenses, including base management fee waiver and income tax provision. Adjusted net investment income,(1) which excludes the capital gains incentive fee accrual, was $0.54 per share compared to $0.65 per share in the prior year.

    For the three months ended December 31, 2024, the total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, was $(0.5) million, as compared to total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, of $19.7 million for the same period in 2023.

    Full Year 2024 Financial Results
    The following table provides a summary of our operating results for the year ended December 31, 2024 as compared to the same period in 2023 (dollars in thousands, except per share data):

      Years Ended December 31,              
      2024     2023     $ Change     % Change  
    Interest income $ 123,153     $ 109,947     $ 13,206       12.0 %
    Payment-in-kind interest income   7,840       6,634       1,206       18.2 %
    Dividend income   2,242       1,215       1,027       84.5 %
    Fee income   9,572       9,450       122       1.3 %
    Interest on idle funds   3,347       2,864       483       17 %
    Total investment income $ 146,154     $ 130,110     $ 16,044       12.3 %
                           
    Net investment income $ 74,636     $ 65,106     $ 9,530       14.6 %
    Net investment income per share $ 2.29     $ 2.47     $ (0.18 )     (7.3 %)
                           
    Adjusted net investment income(1) $ 75,367     $ 67,511     $ 7,856       11.6 %
    Adjusted net investment income per share(1) $ 2.31     $ 2.56     $ (0.25 )     (9.8 %)
                           
    Net increase in net assets resulting from operations $ 78,292     $ 77,133     $ 1,159       1.5 %
    Net increase in net assets resulting from operations per share $ 2.40     $ 2.93     $ (0.53 )     (18.1 %)
                                   

    The $16.0 million increase in total investment income for the year ended December 31, 2024 as compared to the same period in 2023 was primarily attributable to (i) a $14.4 million increase in total interest income resulting from an increase in average debt investment balances outstanding, partially offset by lower weighted average yield on debt investment balances outstanding, (ii) a $1.0 million increase in dividend income due to increased levels of distributions received from equity investments, (iii) a $0.1 million increase in fee income resulting from an increase in amendment and administrative fees, partially offset by a decrease in origination, management, and prepayment fees, and (iv) a $0.5 million increase in interest on idle funds due to an increase in average cash balances outstanding.

    For the year ended December 31, 2024, total expenses, including the base management waiver and income tax provision, were $71.5 million, an increase of $6.5 million or 10.0%, from the $65.0 million of total expenses, including income tax provision, for the year ended December 31, 2023. The increase was primarily attributable to (i) a $1.7 million increase in interest and financing expenses, (ii) a $2.6 million net increase in base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $2.0 million increase in income incentive fees, partially offset by a $1.7 million decrease in capital gains incentive fees, (iv) a $0.2 million increase in professional fees, and (v) a $1.4 million increase in income tax provision.

    Net investment income increased by $9.5 million, or 14.6%, to $74.6 million during the year ended December 31, 2024 as compared to the same period in 2023, as a result of the $16.0 million increase in total investment income, partially offset by the $6.5 million increase in total expenses, including the base management fee waiver and income tax provision. Adjusted net investment income,(1) which excludes the capital gains incentive fee accrual, increased by $7.9 million, or 11.6%, to $75.4 million.

    For the year ended December 31, 2024, the total net realized gain on investments, net of income tax provision on realized gains, was $10.1 million, as compared to total net realized gain on investments, net of income tax provision on realized gains, of $22.4 million for the same period in 2023.

    Portfolio and Investment Activities

    As of December 31, 2024, the fair value of our investment portfolio totaled $1.1 billion and consisted of 87 active portfolio companies and four portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 101.4% of the related cost basis as of December 31, 2024. As of December 31, 2024, the debt investments of 50 portfolio companies bore interest at a variable rate, which represented $704.0 million, or 74.5%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of December 31, 2024, our average active portfolio company investment at amortized cost was $12.4 million, which excludes investments in four portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 13.3% as of December 31, 2024. The weighted average yield was computed using the effective interest rates for debt investments at cost as of December 31, 2024, including the accretion of original issue discounts and loan origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing, if any.

    Fourth quarter 2024 investment activity included the following new portfolio company investments:

    • Axis Medical Technologies LLC (dba MoveMedical), a leading provider of last-mile supply chain software solutions to medical device OEMs. Fidus invested $14.8 million in first lien debt and preferred equity and made additional commitments up to $0.8 million in first lien debt.
    • CP Communications, LLC, a provider of specialized technology solutions for live event broadcasters and premium video content producers. Fidus invested $8.4 million in first lien debt, subordinated debt and common equity.
    • Estex Manufacturing Company, LLC, a branded manufacturer of sewn products used in the utility, airline / aerospace, sports, and military end markets. Fidus invested $6.3 million in first lien debt and common equity.
    • Fumex, LLC, a leading provider of fume extraction and air filtration systems for industrial manufacturing applications. Fidus invested $7.4 million in first lien debt and common equity.
    • World Tours LLC, a travel tour operator focused on affinity groups in the United States. Fidus invested $7.0 million in first lien debt and preferred equity.

    Liquidity and Capital Resources

    As of December 31, 2024, we had $57.2 million in cash and cash equivalents and $95.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). In 2024, we received net proceeds of $66.3 million from the equity at-the-market program (the “ATM Program”). As of December 31, 2024, we had SBA debentures outstanding of $175.0 million, $125.0 million outstanding of our 4.75% notes due January 2026 (the “January 2026 Notes”) and $125.0 million outstanding of our 3.50% notes due November 2026 (the “November 2026 Notes” and collectively with the January 2026 Notes the “Notes”). As of December 31, 2024, the weighted average interest rate on total debt outstanding was 4.6%.

    Subsequent Events

    On January 6, 2025, we invested $15.0 million in first lien debt and $0.8 million in common equity of Customer Expressions Corp. (dba Case IQ), a leading of SaaS-based Governance, Risk and Compliance (GRC) solutions to mid-size and large enterprises.

    On January 7, 2025, we invested $19.0 million in first lien debt, $0.4 million in common equity, and committed up to $2.3 million in a revolving loan to Onsight Industries, LLC, a leading provider of customized signs & displays, mailbox solutions, and site furnishings for the home builder and land developer industries.

    On January 14, 2025, we exited our preferred equity investment in Healthfuse, LLC. We received a distribution on our preferred equity investment for a realized gain of approximately $3.2 million.

    On January 24, 2025, we received a distribution on our equity investments in Medsurant Holdings, LLC, resulting in a net realized gain of approximately $8.2 million.

    On February 5, 2025, we invested $14.0 million in first lien debt, $0.5 million in common equity, $0.1 million in preferred equity, and committed up to $2.0 million in a revolving loan to Fraser Steel LLC, a designer and manufacturer of steel tubular parts and assemblies for OEM customers used in a wide range of applications.

    On February 6, 2025, we issued an additional $5.0 million in SBA debentures, which will bear interest at a fixed interim interest rate of 5.207% until the pooling date in March 2025.

    On February 13, 2025, we issued an additional $14.5 million in SBA debentures, which will bear interest at a fixed interim interest rate of 5.217% until the pooling date in March 2025.

    On February 27, 2025, we repaid $12.5 million of SBA debentures with a weighted average interest rate of 5.755% which would have matured on dates ranging from March 2032 to September 2033.

    First Quarter 2025 Dividends Totaling $0.54 Per Share Declared

    On February 18, 2025, our board of directors declared a base dividend of $0.43 per share and a supplemental dividend of $0.11 per share for the first quarter. The dividends will be payable on March 27, 2025, to stockholders of record as of March 20, 2025.

    When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under GAAP due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2025 taxable income, as well as the tax attributes for 2025 dividends, will be made after the close of the 2025 tax year. The final tax attributes for 2025 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

    Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.

    Fourth Quarter 2024 Financial Results Conference Call

    Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, March 7, 2025. To participate in the conference call, please dial (844) 808-7136 approximately 10 minutes prior to the call. International callers should dial (412) 317-0534. Please ask to be joined into the Fidus Investment Corporation call.

    A live webcast of the conference call will be available at http://investor.fdus.com/news-events/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.

    ABOUT FIDUS INVESTMENT CORPORATION

    Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

    Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and is licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC).

    FORWARD-LOOKING STATEMENTS

    This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain, including, but not limited to, statements about the future performance and financial condition of the Company, the prospects of our existing and prospective portfolio companies, the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives, and the timing, form and amount of any distributions or supplemental dividends in the future. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, such as changes in the financial and lending markets, the impact of the general economy (including an economic downturn or recession), and the impact of interest rate volatility and the impact of elevated levels of inflation on the Company’s business and its portfolio companies; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors related to changes in the markets in which the Company invests, changes in the financial, capital, and lending markets, and other factors described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.

    FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Assets and Liabilities
    (in thousands, except shares and per share data)
                   
      December 31,     December 31,  
      2024     2023  
    ASSETS              
    Investments, at fair value:              
    Control investments (cost: $6,832 and $6,832, respectively) $     $  
    Affiliate investments (cost: $56,679 and $46,485, respectively)   102,024       83,876  
    Non-control/non-affiliate investments (cost: $1,011,646 and $883,312, respectively)   988,482       874,030  
    Total investments, at fair value (cost: $1,075,157 and $936,629, respectively)   1,090,506       957,906  
    Cash and cash equivalents   57,159       119,131  
    Interest receivable   15,119       11,965  
    Prepaid expenses and other assets   1,328       1,896  
    Total assets $ 1,164,112     $ 1,090,898  
    LIABILITIES              
    SBA debentures, net of deferred financing costs $ 168,899     $ 204,472  
    Notes, net of deferred financing costs   248,362       247,243  
    Borrowings under Credit Facility, net of deferred financing costs   43,954       (1,082 )
    Secured borrowings   13,674       15,880  
    Accrued interest and fees payable   5,784       5,924  
    Base management fee payable, net of base management fee waiver – due to affiliate   4,805       4,151  
    Income incentive fee payable – due to affiliate   4,477       4,570  
    Capital gains incentive fee payable – due to affiliate   14,703       17,509  
    Administration fee payable and other, net – due to affiliate   919       789  
    Taxes payable   1,850       1,227  
    Accounts payable and other liabilities   1,019       741  
    Total liabilities $ 508,446     $ 501,424  
    Commitments and contingencies              
    NET ASSETS              
    Common stock, $0.001 par value (100,000,000 shares authorized, 33,914,652 and 30,438,979 shares              
    issued and outstanding at December 31, 2024 and December 31, 2023, respectively) $ 34     $ 31  
    Additional paid-in capital   567,159       504,087  
    Total distributable earnings   88,473       85,356  
    Total net assets   655,666       589,474  
    Total liabilities and net assets $ 1,164,112     $ 1,090,898  
    Net asset value per common share $ 19.33     $ 19.37  
    FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Operations (unaudited)
    (in thousands, except shares and per share data)
     
      Three Months Ended     Years Ended  
      December 31,     December 31,  
      2024     2023     2024     2023  
    Investment Income:                      
    Interest income                      
    Control investments $     $     $     $  
    Affiliate investments   930       858       3,533       4,026  
    Non-control/non-affiliate investments   30,721       28,653       119,620       105,921  
    Total interest income   31,651       29,511       123,153       109,947  
    Payment-in-kind interest income                      
    Control investments                      
    Affiliate investments   9             9        
    Non-control/non-affiliate investments   2,086       1,973       7,831       6,634  
    Total payment-in-kind interest income   2,095       1,973       7,840       6,634  
    Dividend income                      
    Control investments                      
    Affiliate investments               1,830       519  
    Non-control/non-affiliate investments   104       265       412       696  
    Total dividend income   104       265       2,242       1,215  
    Fee income                      
    Control investments                      
    Affiliate investments   168       5       183       65  
    Non-control/non-affiliate investments   2,830       3,517       9,389       9,385  
    Total fee income   2,998       3,522       9,572       9,450  
    Interest on idle funds   609       1,040       3,347       2,864  
    Total investment income   37,457       36,311       146,154       130,110  
    Expenses:                      
    Interest and financing expenses   6,298       5,988       24,398       22,749  
    Base management fee   4,869       4,222       18,855       16,288  
    Incentive fee – income   4,477       4,570       18,549       16,529  
    Incentive fee (reversal) – capital gains   (211 )     1,898       731       2,405  
    Administrative service expenses   704       681       2,598       2,353  
    Professional fees   739       862       3,208       2,906  
    Other general and administrative expenses   239       258       1,003       1,031  
    Total expenses before base management fee waiver   17,115       18,479       69,342       64,261  
    Base management fee waiver   (64 )     (71 )     (264 )     (287 )
    Total expenses, net of base management fee waiver   17,051       18,408       69,078       63,974  
    Net investment income before income taxes   20,406       17,903       77,076       66,136  
    Income tax provision (benefit)   1,758       964       2,440       1,030  
    Net investment income   18,648       16,939       74,636       65,106  
    Net realized and unrealized gains (losses) on investments:                      
    Net realized gains (losses):                      
    Control investments                     (11,458 )
    Affiliate investments   134       446       134       546  
    Non-control/non-affiliate investments   (710 )     19,358       11,451       34,983  
    Total net realized gain (loss) on investments   (576 )     19,804       11,585       24,071  
    Income tax (provision) benefit from realized gains on investments   43       (93 )     (1,480 )     (1,662 )
    Net change in unrealized appreciation (depreciation):                      
    Control investments                     11,083  
    Affiliate investments   7,537       714       7,954       (8,395 )
    Non-control/non-affiliate investments   (8,059 )     (10,934 )     (13,882 )     (13,047 )
    Total net change in unrealized appreciation (depreciation) on investments   (522 )     (10,220 )     (5,928 )     (10,359 )
    Net gain (loss) on investments   (1,055 )     9,491       4,177       12,050  
    Realized losses on extinguishment of debt               (521 )     (23 )
    Net increase (decrease) in net assets resulting from operations $ 17,593     $ 26,430     $ 78,292     $ 77,133  
    Per common share data:                      
    Net investment income per share-basic and diluted $ 0.55     $ 0.58     $ 2.29     $ 2.47  
    Net increase in net assets resulting from operations per share — basic and diluted $ 0.52     $ 0.91     $ 2.40     $ 2.93  
    Dividends declared per share $ 0.61     $ 0.80     $ 2.42     $ 2.88  
    Weighted average number of shares outstanding — basic and diluted   33,914,652       28,961,411       32,585,238       26,365,269  

    Schedule 1

    Supplemental Information Regarding Adjusted Net Investment Income

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three and twelve months ended December 31, 2024 and 2023.

      ($ in thousands)     ($ in thousands)  
      Three Months Ended     Years Ended  
      December 31,     December 31,  
      (unaudited)     (unaudited)  
      2024     2023     2024     2023  
    Net investment income $ 18,648     $ 16,939     $ 74,636     $ 65,106  
    Capital gains incentive fee expense (reversal)   (211 )     1,898       731       2,405  
    Adjusted net investment income(1) $ 18,437     $ 18,837     $ 75,367     $ 67,511  
      (Per share)     (Per share)  
      Three Months Ended     Years Ended  
      December 31,     December 31,  
      (unaudited)     (unaudited)  
      2024     2023     2024     2023  
    Net investment income $ 0.55     $ 0.58     $ 2.29     $ 2.47  
    Capital gains incentive fee expense (reversal)   (0.01 )     0.07       0.02       0.09  
    Adjusted net investment income(1) $ 0.54     $ 0.65     $ 2.31     $ 2.56  
    (1)   Adjusted net investment income per share amounts are calculated as adjusted net investment income dividend by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.
    Company Contact: Investor Relations Contact:
    Shelby E. Sherard Jody Burfening
    Chief Financial Officer Alliance Advisors IR
    (847) 859-3940 (212) 838-3777
    ssherard@fidusinv.com jburfening@allianceadvisors.com

    The MIL Network

  • MIL-OSI: Global-e to Host 2025 Investor Day

    Source: GlobeNewswire (MIL-OSI)

    PETAH-TIKVA, Israel, March 06, 2025 (GLOBE NEWSWIRE) — Global-e (Nasdaq: GLBE), the platform powering global direct-to-consumer e-commerce, today announced it will host its 2025 Investor Day on Tuesday, March 11, 2025, beginning at 9:30 a.m. ET.

    A live webcast of the event will be available in the Investor Relations section of Global-e’s website at https://investors.global-e.com/news-events/events-presentations. A replay of the webcast will also be available on the website after the event.

    About Global-e Online Ltd.

    Global-e (Nasdaq: GLBE) is the world’s leading platform enabling and accelerating global, Direct-To-Consumer e-commerce. The chosen partner of over 1,000 brands and retailers across the United States, EMEA and APAC, Global-e makes selling internationally as simple as selling domestically. The company enables merchants to increase the conversion of international traffic into sales by offering online shoppers in over 200 destinations worldwide a seamless, localized shopping experience. Global-e’s end-to-end e-commerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast global e-commerce experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. For more information, please visit: www.global-e.com.

    Investor Contact:
    Erica Mannion or Mike Funari
    Sapphire Investor Relations, LLC
    IR@global-e.com
    +1 617-542-6180

    Press Contact:
    Sarah Schloss
    Headline Media
    sarah.schloss@headline.media
    +1 914-506-5104

    The MIL Network

  • MIL-OSI: Five Star Bank Appoints Eric Marks Chief Consumer Banking Officer

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, N.Y., March 06, 2025 (GLOBE NEWSWIRE) — Financial Institutions, Inc. (NASDAQ: FISI), parent company of Five Star Bank (“Five Star” or the “Bank”) and Courier Capital, LLC, announced that Eric W. Marks has joined as Senior Vice President, Chief Consumer Banking Officer of the Bank.

    As Chief Consumer Banking Officer, Mr. Marks will have executive leadership and strategic oversight of the Bank’s consumer lines of business, including Retail Banking, Residential Mortgage, and Small Business Banking, as well as its Customer Contact Center and Collections departments. Mr. Marks’ deep banking experience, which includes many facets of consumer banking leadership, financial oversight and strategic planning, will serve him well as he looks to drive sustainable customer growth and customer-service excellence in Five Star’s retail network and its 49 banking locations across Western and Central New York. Mr. Marks will report to President and CEO Martin K. Birmingham and join the Company’s Executive Management Committee.

    “We are thrilled to welcome Eric Marks to Five Star Bank,” said Mr. Birmingham. “His deep understanding of all aspects of consumer banking, as well as his local roots and familiarity with our markets, will be very valuable as he supports the continued evolution, growth and, ultimately, the long-term success of our consumer banking offerings.”

    Mr. Marks commented, “I am excited to join a community bank like Five Star, which has a deep history here in Upstate New York. I look forward to being a part of its continued success as we focus on delivering a simple, connected and trusted banking experience in our markets, and helping our customers and communities thrive.”

    Mr. Marks joins Five Star from M&T Bank, where he had most recently served as its Retail Segment Chief Financial Officer. During his 19-year tenure at M&T, Mr. Marks held roles of increasing responsibility in several enterprise functions and lines of business, including corporate and consumer strategy, mortgage, branch distribution planning, consumer deposit pricing and portfolio management, as well as consumer indirect lending.

    Mr. Marks, who is based at Five Star Bank Centre in Amherst, N.Y., earned his bachelor’s degree from Mercyhurst University and his M.B.A. from the University at Buffalo. He has also completed an executive leadership course at the University of Michigan’s Ross School of Business. Mr. Marks has a long history of community volunteerism, previously serving on the boards of the Orchard Park Little League, the Orchard Park Boys and Girls Club, Western New York Heritage Press, and more.

    About Financial Institutions, Inc. and Five Star Bank
    Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately $6.1 billion in assets as of December 31, 2024, offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Courier Capital, LLC offers customized investment management, financial planning and consulting services to individuals and families, businesses, institutions, non-profits and retirement plans. Learn more at Five-StarBank.com and FISI-Investors.com.

    Safe Harbor Statement
    This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “believe,” “anticipate,” “continue,” “estimate,” “expect,” “focus,” “”intend,” “may,” “plan,” “preliminary,” “should,” or “will.” Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; inflation; changes in deposit flows and the cost and availability of funds; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; whether the Company experiences greater credit losses than expected; whether the Company experiences breaches of its, or third party, information systems; the attitudes and preferences of the Company’s customers; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; the competitive environment; fluctuations in the fair value of securities in its investment portfolio; changes in the regulatory environment and the Company’s compliance with regulatory requirements; and general economic and credit market conditions nationally and regionally; and the macroeconomic volatility related to the impact of a pandemic or global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.

    For additional information contact:
    Kate Croft
    Director, Investor and External Relations
    716-817-5159
    klcroft@five-starbank.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/45b81392-4098-491e-a8f4-0824ccb09934

    The MIL Network

  • MIL-OSI Banking: CSO-3 optical Earth-observation satellite successfully launched

    Source: Thales Group

    Headline: CSO-3 optical Earth-observation satellite successfully launched

    • The CSO system comprises three defense and security satellites
    • This trio has two distinct missions: reconnaissance for CSO-1 and CSO-3, and identification for CSO-2, affording higher resolution and refined analysis
    • The very-high-resolution optical instrument flying on each satellite is a marvel of technology built by prime contractor Thales Alenia Space

    Cannes, March  6th, 2025 – The CSO-3 military observation satellite has been successfully launched by Arianespace atop an Ariane 6 from Europe’s spaceport in French Guiana. Carrying a very-high-resolution optical instrument built by Thales Alenia Space, the joint venture between Thales (67%) and Leonardo (33%), the satellite was developed by prime contractor Airbus Defence & Space for the French defense procurement agency DGA on behalf of the French Air and Space Force’s Space Command, with delegated oversight from the French space agency CNES.

    CSO © CNES

    The third and last component in the CSO system for France’s MUSIS* military program, CSO-3 will provide increased coverage and revisit capabilities to enable more effective conduct of military operations and faster crisis response.

    Designed to the most stringent intelligence and defense requirements, CSO-3 is equipped with a cutting-edge instrument developed by Thales Alenia Space. This instrument is the core of the mission, affording exceptional resolution and detail of Earth’s surface. Its unrivaled performance enables it to acquire imagery at extremely high resolution, even in low-light conditions and at night thanks to its infrared capabilities. Its advanced technologies include latest-generation optical systems and ultra-sensitive sensors. 

    CSO © CNES

    Like for the previous Helios 1, Helios 2 and Pleiades satellites, Thales Alenia Space designed strategic equipment for the CSO system, including the solar arrays, very-high-throughput image telemetry systems, and encryption/decryption modules to ensure data security and confidentiality. The company also supplied the system’s telemetry, tracking and control transponders.

    “The launch of CSO-3 is a major milestone for French sovereignty in space, both in terms of launch capabilities and satellite technology,” said Hervé Derrey, Thales Alenia Space CEO. “With the completion of this system, France is leading the way in optical space reconnaissance. The CSO system’s exceptional performance is based in particular on the optical instrument built by the teams at Thales Alenia Space and our industry partners. These unique skills in Europe are strategically important and demonstrate our ability to meet the new challenges facing French and European sovereignty.”

    *Multinational Space-based Imaging System for Surveillance, Reconnaissance, and Observation

    About THALES ALENIA SPACE

    Drawing on over 40 years of experience and a unique combination of skills, expertise and cultures, Thales Alenia Space delivers innovative solutions for telecommunications, navigation, Earth observation, environmental management, exploration, science and orbital infrastructures. Governments and private industry alike count on Thales Alenia Space to design and build satellite-based systems that provide anytime, anywhere connections and positioning, monitor our planet, enhance management of its resources and explore our Solar System and beyond. Thales Alenia Space sees space as a new horizon, helping to build a better, more sustainable life on Earth. A joint venture between Thales (67%) and Leonardo (33%), Thales Alenia Space also teams up with Telespazio to form the parent companies’ Space Alliance, which offers a complete range of services. Thales Alenia Space posted consolidated revenues of approximately €2.2 billion in 2023 and has around 8,600 employees in 8 countries, with 16 sites in Europe.
     

    MIL OSI Global Banks

  • MIL-OSI Banking: Verizon tells customers to put the phone down

    Source: Verizon

    Headline: Verizon tells customers to put the phone down

    NEW YORK – With the average Verizon home internet household boasting 18 connected devices and counting, Verizon recognizes the increasing challenge of managing screen time and its impact on overall well-being. That’s why, today, at the first-ever Verizon Digital Wellness Summit hosted by Drew Barrymore, Verizon is unveiling a series of initiatives aimed at promoting healthy digital habits for families.

    “Building healthy habits in our digital lives is essential for overall well-being. Verizon is empowering families to have peace of mind around their children’s online lives by providing resources and tools that promote digital safety – and encouraging kids to put the phones down from time to time,” said Sampath, CEO, Verizon Consumer. “We’re committed to making sure that technology enhances our lives, rather than detracts from them, and our new initiatives are a significant step in that direction.”

    Addressing the Digital Dilemma Head-On with Strategic Partnerships and Programs:

    • Discovery Education: Collaborating on a new Digital Citizenship Initiative to provide K-12 students with free tools, resources and skills needed to thrive in today’s digital world. Content is free on the website and to classrooms within the Discovery Education Experience, an essential K-12 companion for engaged classrooms.
    • Sesame Workshop: Conducting a research study with the Joan Ganz Cooney Center focused on digital well-being of children during key developmental ages of 8 to 12. The findings will address challenges families face with technology use and guide the creation of future digital wellness programs.
    • My Digital TAT2: Partnering to offer free workshops in select Verizon retail stores for parents and caregivers, providing tools to foster children’s digital wellness and navigate emerging tech trends.
    • Older Adults Technology Services (OATS) from AARP: Developing a new digital wellness course for older adults, delivered both in-person and virtually through SeniorPlanet.org, focusing on safe and effective technology use, privacy protection, and staying connected.

    “At Verizon, we’re committed to putting technology into the hands of those who otherwise might not have access to it. But access alone is not enough,” said Donna Epps, Chief Responsible Business Officer, Verizon. “Verizon wants to ensure everyone has the knowledge and skills to use technology safely and responsibly. That’s why we’re launching our digital wellness programs—empowering users of all ages with the training and resources necessary to build healthy habits and a healthy relationship with technology.”

    Showcasing the importance of offline connections at the Verizon Arcade Unplugged:

    • IRL Gaming: To coincide with the Global Day of Unplugging, Verizon is launching the Verizon Arcade Unplugged pop-up experience, transforming digital games into life-sized, interactive challenges to encourage screen-free family time. The activation will be open to select partners on Friday, March 7 and A Parently Kidding member families on Saturday, March 8. Limited general admission tickets are available here. Verizon Arcade Unplugged is also gearing up for an exciting nationwide tour this summer hitting California, Texas and major cities starting in April. Stay tuned for more updates as the experience makes its way across the country.

    Tools that help provide peace of mind in a digital world:

    • All-in-One Protection with the Verizon Family app: With features like location sharing, Parental Controls, Safe Walk with SOS, Crash Detection and Roadside assistance to keep families connected and protected. The Verizon Family app is available for all Verizon mobile customers on postpaid plans through the App Store and Google Play. More information is available at verizon.com/verizonfamily and Parenting in a Digital World.

    MIL OSI Global Banks

  • MIL-OSI Banking: Members share experiences on going beyond tariff codes to implement environmental measures

    Source: WTO

    Headline: Members share experiences on going beyond tariff codes to implement environmental measures

    Organized and moderated by Luis Oña-Garcés of Ecuador, the session featured experience-sharing by members implementing environmental measures which are controlled at the border based on tariff classification categories beyond the Harmonized System codes.
    A series of key questions guided delegations in addressing environmental measures implemented through tariff classification, exploring the use of specific codes and additional categories designed for this purpose. Other mechanisms used at the border, such as certifications or licences, were also analysed. Good practices identified in the implementation and monitoring of these measures were shared. The objective was to understand the challenges and results of these strategies.
    The European Union shared its process used to track trade in products covered by regulations of fluorinated greenhouse gases, ozone-depleting substances, and deforestation. This included the EU TARIC databases which identify specific products beyond 6-digit HS codes. This more exact definition helped customs operations by enhancing traceability and smoothing the cross-border process.
    The EU suggested that the World Customs Organization (WCO) put in place a project aimed at improving the classification of green technology and environmentally friendly products by refining definitions and collaborating with international organizations. The EU noted that updating the current HS system to recognize products under green initiatives and the circular economy will streamline processes, enhance policy enforcement, and improve trade efficiency and traceability.
    The United Kingdom indicated that collaboration between trade and customs is essential to understand limitations posed by the HS and to apply solutions that can be implemented at the border. The UK emphasized that differentiation of production processes or end-use, especially for environmental products, is challenging. It noted that national tariff lines and harmonized definitions/standards are alternatives to HS amendments.
    The UK presented a case study showing that HS codes have no precise categories for recycling, reuse and waste of textiles, which hamper monitoring trade. Discrepancies in customs classification and contamination cause trade barriers due to HS code definitions not conforming with industry procedures. To avoid this, the UK said greater WTO member cooperation can enhance knowledge of trade restrictions due to unclear HS nomenclature.
    The Dominican Republic reported on the successful implementation of Multilateral Environmental Agreements (MEAs) and their integration into the country’s customs tariff system. It has introduced further subdivisions in its tariff structure, beyond the HS standard codes, to monitor environmentally sensitive products and institutionalised interagency planning and coordination through the creation of a Green Customs Department.
    Addressing challenges and opportunities, the Dominican Republic noted the obstacles encountered, particularly on outdated law frameworks, and emphasized the significance of effective technology-driven customs regulation and staff training to improve understanding and implementation of environmental policies while maintaining trade efficiency.
    Jamaica also highlighted its efforts in enforcing environmental policies on plastics pollution, hazardous waste treatment and disposal, and the development of renewable energy through customs policy. However, Jamaica noted the numerous challenges that hinder effective enforcement both at the national level and regionally within the Caribbean Community (CARICOM). These include insufficient stakeholder knowledge of MEAs and lack of coordination among regulatory and customs institutions. Jamaica said that enforcement continues to be difficult despite advancement because of a shortage of resources and the need for additional interagency coordination. The country continues to modernize customs practices and simplify policies according to international environmental commitments, with the aim of striking a balance between trade facilitation and sustainability goals.
    The HS is a multipurpose international product nomenclature developed by the WCO. It comprises more than 5,000 commodity groups or categories, each of them identified by a six-digit code. See here for the current HS 2022 nomenclature.
    The system is used by 212 economies as a basis for their customs tariffs and for the collection of international trade statistics. Over 98% of the merchandise in international trade is classified in terms of the HS.
    A first thematic session on Greening the HS was held in June 2024. It provided a detailed presentation of the HS role and structure, including its potential and limitations in identifying goods of policy interest. The challenge of defining environmental goods and making them visible in the HS were discussed, as were proposed HS amendments by the Food and Agriculture Organization and the Basel, Rotterdam and Stockholm Conventions.
    The Chair of the Committee on Market Access, Nicola Waterfield of Canada, said that the presentations gave members an opportunity to learn about a very wide range of challenges and solutions beyond the HS to implement their environmental policies. They also highlighted the crossovers between greening efforts and the work of the Committee on transparency in import and export restrictions and prohibitions which would be notified as quantitative restrictions.
    As with past thematic sessions in the Committee, and to respond to a demand by members, the WTO Secretariat will prepare a factual summary report based on information shared.

    Share

    MIL OSI Global Banks

  • MIL-OSI Submissions: Africa and Sub Continent – The International Islamic Trade Finance Corporation (ITFC) and Mutual Trust Bank Sign Murabaha Agreement to Boost Trade Finance for Small and Medium Enterprises (SMEs) and the Private Sector in Bangladesh

    SOURCE: International Islamic Trade Finance Corporation (ITFC)

    The Master Murabaha Agreement reflects the shared vision of ITFC and Mutual Trust Bank to drive economic growth by supporting SMEs and the private sector

    DHAKA, Bangladesh, March 6, 2025/ — The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, and Mutual Trust Bank PLC (MTB) signed a Master Murabaha Agreement to strengthen trade finance support for Small and Medium Enterprises (SMEs) and the private sector in Bangladesh.

    The agreement will enable ITFC to provide trade financing facilities against Letters of Credit (LCs) issued by Mutual Trust Bank, enhancing the bank’s capacity to support cross-border trade and contribute to the growth of SMEs. This collaboration underscores both institutions’ commitment to fostering economic development and private sector growth in Bangladesh.

    The signing ceremony was held at Dhaka and attended by senior executives from both organizations. Mr. Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank, and Mr. Nazeem Noordali, Officer-in-Charge, CEO of ITFC, led the signing on behalf of their respective institutions.

    Mr. Nazeem Noordali emphasized the strategic importance of the partnership, stating, “We are proud to partner with Mutual Trust Bank to provide trade financing facilities that will support SME growth and the import of essential commodities in Bangladesh. Private sector development is a cornerstone of the country’s economic progress, and enabling SMEs to access trade finance is central to ITFC’s strategy. This initiative will also help SMEs integrate into global value chains, fostering sustainable economic growth.”

    Mr. Syed Mahbubur Rahman, Managing Director and CEO of Mutual Trust Bank, expressed his enthusiasm for the agreement, saying, “The partnership with ITFC under this trade finance facility agreement is significant, especially given the current economic challenges faced by Bangladesh. This collaboration will enhance MTB’s reputation among correspondent banks globally, highlighting its resilience, commitment to best practices, and dedication to sustainable growth. Furthermore, it will provide our SME customers with greater access to financing and help facilitate the import of essential raw materials and soft commodities”.

    The Master Murabaha Agreement reflects the shared vision of ITFC and Mutual Trust Bank to drive economic growth by supporting SMEs and the private sector. By facilitating access to trade finance, the partnership aims to empower businesses, create employment opportunities, and contribute to the sustainable development of Bangladesh.

    About the International Trade Finance Corporation (ITFC):
    The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$83 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.

    MIL OSI – Submitted News

  • MIL-OSI Russia: Five best articles in Russian for 06.03.2025

    MIL Analysis: Here are the top five Russian language articles published today. The analysis includes five key articles prioritized at the moment.

    Today’s analysis provides us with new results from Moscow Exchange for a year of transactions on the derivatives market. Technological sovereignty is developing independently in education.

    Marat Khusnullin said that the road infrastructure of the overpass on the 6th km of the highway A-149 “Adler – Krasnaya Polyana” is already 50% of the total task.

    Moscow Metro continues to surprise, now it is possible to pay for a trip with digital rubles. Rosneft has also developed a new high-precision robotic complex to identify the internal devices of reactor equipment and ensure the health and safety of personnel.

    You can read one of the articles below.

    1. Financial news: Almost 200 thousand people concluded transactions on the futures market of the Moscow Exchange in February.

    Transactions with futures and options on the Moscow Exchange in February 2025 were concluded by 193 thousand individuals (153 thousand in February 2024). Their share in the total trading volume of exchange-traded derivatives amounted to 63%.

    2. Vladimir Stroyev took part in an expert discussion on Russia’s technological sovereignty.

    On March 5, 2025 within the framework of the Exhibition-Forum of Educational Technologies, Infrastructure and Intellectual Solutions MMCO.EXPO-2025 an expert discussion “Rectors’ Club” was held, in which the Rector of the State University of Management Vladimir Stroyev took part.

    3. Marat Khusnullin: Reconstruction of the overpass on the Adler bypass is 50% complete.

    Modernization of the road network is one of the fundamental tasks to ensure dynamic development of the whole country. For this purpose, among other things, city bypasses are being built. In particular, the Adler bypass project is being implemented, within the framework of which the overpass on the 6th km of the A-149 Adler-Krasnaya Polyana highway is being reconstructed. Today the readiness of this artificial structure is 50%, said Deputy Prime Minister Marat Khusnullin.

    4. Moscow Metro launched a pilot of digital ruble payments by means of a universal QR code.

    The Moscow Metro together with the Central Bank of the Russian Federation (CBR) and VTB Bank is conducting a pilot launch of a new method of digital ruble fare payment by means of a universal QR code. Within the framework of the closed beta-testing the focus group has successfully purchased Troika cards and topped up the balance with a digital ruble at ticket offices.

    5. “Rosneft” creates robots for diagnostics of petrochemical equipment.

    Specialists of the Company’s Volgograd Scientific Institute developed a new high-precision robotic complex that determines the vertical position of internal devices of reactor equipment. The complex has been successfully tested at petrochemical industry enterprises of the Russian Federation.

    Learn more about MIL’s content and data services by visiting milnz.co.nz.

    Regards MIL!

    MIL OSI Russia News

  • MIL-OSI Europe: Women Climate Leaders Network marks first anniversary with insights to accelerate green investment activities

    Source: European Investment Bank

    March 2025 marks the first anniversary of the Women Climate Leaders Network (WCLN), launched by the EIB Group to champion green innovation and support businesses in their green transition.

    Over the past year, the network, comprising 48 women climate leaders from the private sector across the 27 EU member states, has developed actionable recommendations to help small and medium-sized enterprises (SMEs) and mid-sized companies adopt greener approaches and green innovations. Members shared their insights with EU policymakers at the EIB Group Forum.

    The paper outlines proposals to accelerate green investment for SMEs and innovation from a policy and finance perspective. WCLN considers that targeted financial support for distinct company segments is more effective at promoting transformative investment. Mid-sized companies are instrumental for Europe’s productivity growth and green innovation capacity but suffer financing constraints. Recommendations further include local knowledge-sharing platforms, simplified reporting, capacity building, and linking green to business benefits. Additionally, the Network advocates for enhanced policies to scale green innovation through temporary tax incentives, adjusted financial regulations, and regulatory sandboxes.

    The Network confirms that a single point of entry guidance for the next Multiannual Financial Framework – EU’s long-term budget – will be crucial in informing SMEs about available EU financing.

    As the Women Climate Leaders Network enters its second year, it remains dedicated to empowering businesses in the EU’s transition to a greener, more inclusive future.

    For more information

    MIL OSI Europe News

  • MIL-OSI Europe: MOTION FOR A RESOLUTION on the white paper on the future of European defence – B10-0149/2025

    Source: European Parliament

    Reinis Pozņaks, Adam Bielan, Rihards Kols, Cristian Terheş, Alberico Gambino, Alexandr Vondra, Aurelijus Veryga, Jadwiga Wiśniewska, Joachim Stanisław Brudziński, Michał Dworczyk, Roberts Zīle, Sebastian Tynkkynen, Bogdan Rzońca, Carlo Fidanza, Ondřej Krutílek, Veronika Vrecionová, Geadis Geadi
    on behalf of the ECR Group

    B10‑0149/2025

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

    (2025/2565(RSP))

    The European Parliament,

     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 25 March 2022,

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

     having regard to Council Decision (CFSP) 2017/2315 of 11 December 2017 establishing permanent structured cooperation (PESCO) and determining the list of participating Member States[1],

     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[2],

     having regard to Regulation (EU) 2023/1525 of the European Parliament and of the Council of 20 July 2023 on supporting ammunition production (ASAP)[3],

     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)[4],

     having regard to European Court of Auditors (ECA) special report 04/2025 of 6 February 2025 entitled ‘EU military mobility – Full speed not reached due to design weaknesses and obstacles en route’[5],

     having regard to the report by Enrico Letta of 18 April 2024 entitled ‘Much more than a market’, and in particular the section ‘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 entitled ‘The future of European competitiveness’, and in particular chapter four thereof, ‘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,

     having regard to the Madrid Summit Declaration issued by NATO heads of state or government participating in the meeting of the North Atlantic Council in Madrid on 29 June 2022,

     having regard to the NATO 2022 Strategic Concept of 29 June 2022 and the Vilnius Summit Communiqué issued by NATO heads of state and government participating in the meeting of the North Atlantic Council in Vilnius on 11 July 2023,

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

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

     having regard to Rule 136(2) of its Rules of Procedure,

    A. whereas, following the deteriorating geopolitical context and security environment in recent years, the strengthening of European defence, the bolstering of Europe’s operational capabilities and the ramping up of defence production are key initiatives that must be undertaken for ensuring peace, fostering development and strengthening unity between citizens and the Member States, and will contribute decisively to peace on our continent and towards ensuring the long-term security of Ukraine;

    B. whereas the recognition that Russia is the most significant threat to Europes security for the foreseeable future is paramount, and all Member States must therefore ensure a widespread increase in defence production and operational capabilities in order to ensure that credible deterrence is restored on the European continent, while simultaneously recognising that the instability in the southern neighbourhood must be fully taken into consideration;

    C. whereas, in light of the worsening external environment and despite the efforts made in recent years to enhance the EU’s crisis preparedness through new legislation, mechanisms and tools across various policy areas, the EU and its Member States remain vulnerable to multiple crisis scenarios;

    D. whereas the Commissioner for Defence and Space, Andrius Kubilius, and the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, Kaja Kallas, have been jointly tasked with producing a white paper on the future of European defence within the first 100 days of the mandate of the new Commission; whereas this paper aims to move from political objectives expressed in general terms to specific and quantifiable objectives, and to constitute an element of defence planning;

    E. whereas the timing of the white paper may coincide with a review of the Strategic Compass threat analysis, as well as with possible proposals for a revision of the Strategic Compass, as the majority of its commitments are due for completion by 2025;

    F. whereas the white paper’s principal focus must be to outline a clear plan for how the Member States can address and overcome their growing need for greater financial, operational and logistical resources for their national armed forces and intelligence services;

    G. whereas the white paper must ensure that an effective and financeable strategy that counters hybrid warfare can be realised, particularly one that counters the ongoing attacks on subsea infrastructure that are essential for global energy transport and digital communications, as approximately 99 % of global data traffic is reliant on undersea fibre-optic cables;

    H. whereas the undersea network of the Member States consists of 39 such cables, ensuring connectivity across the Mediterranean, North Sea and Baltic Sea; whereas recent undersea cable disruptions are often dismissed as maritime accidents; whereas emerging technologies and rapid advancements in autonomous underwater drones and deep-sea espionage capabilities create key vulnerabilities that are being exploited by hostile state and non-state actors;

    I. whereas the white paper must ensure complementarity with NATO’s Strategic Concept as NATO is and must remain the principal security guarantor for the Euro-Atlantic area;

    1. Reiterates its firm support for initiatives aimed at strengthening the European defence and deterrence capacity, addressing hybrid and cyber threats, promoting industrial cooperation in the defence sector, and providing the Member States and their allies with high-quality defence products in the required quantities and at short notice; underlines that these objectives require vision, concreteness and shared commitments, both in the strictly military field and in the industrial, technological and intelligence sectors;

    2. Emphasises that the EU must adopt a comprehensive, all-encompassing approach to civilian and military preparedness and readiness, involving both government and society as a whole, as European defence is confronted with increasingly complex challenges that demand a shift in approach, in particular regarding artificial intelligence (AI), cybersecurity and multi-domain operational strategies; considers the importance of strengthening cooperation with NATO and like-minded countries and engaging with the United States to increase the resilience of the transatlantic relationship;

    3. Expects the white paper on the future of European defence to differentiate between short-term and long-term plans and objectives, to predominantly address defence sector capability issues, industrial competitiveness and investment needs, as well as to frame the overall approach to EU defence integration, with the aim of strengthening the Member States’ abilities to respond to threats – particularly in the context of Russia’s continuing war of aggression in Ukraine, combined with evolving geopolitical challenges to Europe’s southern flank, and increased military capabilities of hostile state and non-state actors – reinforce EU-NATO cooperation, ensure more efficient Member State defence spending, improve coordination between the Member States, and strengthen strategic partnerships while prioritising the transatlantic relationship;

    4. Underlines that Europe must take on greater responsibility and welcomes the fact that higher Member State investment in defence is already accelerating the consolidation of the EU’s Defence Technological and Industrial Base (EDTIB), which includes a number of large multinational companies, mid-caps and over 2 000 small and medium-sized enterprises (SMEs); stresses that the different EU initiatives and regulations should work together to incentivise this process, rather than presenting obstacles; underlines the importance of improving coherence and coordination between EU instruments and programmes of common European interest for defence;

    5. Reiterates, in this regard, that it will also be important to promptly adopt the European defence industry programme (EDIP), in order to support the European defence industrial strategy (EDIS), adopted in March 2024, which aims to enhance the EU’s defence readiness and specifically its industrial capacity;

    6. Encourages the expansion of financial support to future European defence spending initiatives that promote the mass development of operational capabilities and strategic enablers, along with a robust enhancement of civil defence infrastructure to ensure the national resilience of the Member States;

    7. Welcomes the announcement of the proposal for the exemption of defence spending from EU limitations on public spending – a first, fundamental step in the right direction;

    8. Recalls that on 31 January 2025, 19 of the Member States sent a letter urging the European Investment Bank (EIB) to take a stronger role in financing security and defence, in particular re-evaluating the EIB’s list of excluded activities, increasing funding for defence-related investments and exploring the issuance of ‘defence bonds’;

    9. Calls on the EIB to further review its policy on defence investment; welcomes the EIB’s decision to update the definition of eligible dual-use projects, but notes that its lending policy still excludes the financing of ammunition and weapons, as well as equipment or infrastructure exclusively dedicated to military use; underlines that more should be done to enable access to financing and facilitate the de-risking of defence projects across the financial institutions;

    10. Urges the Member States to support the establishment of a defence, security and resilience bank to serve as a multilateral lending institution designed to provide low-interest, long-term loans that can support key national security priorities such as rearmament, defence modernisation, rebuilding efforts in Ukraine and the buying back of critical infrastructure currently owned by hostile non-EU countries;

    11. Encourages EU defence actions aimed at supporting, initiating and incentivising better Member State coordination as Member States are the principal customers of defence equipment, and stresses that any EU initiative for defence must aim to reach a critical mass of capability development, support an appreciable share of Europe’s overall defence investments and support its defence industrial tools with financial means that have a structural effect, without coming at the expense of national defence spending;

    12. Encourages the Member States to promote cooperation between different European defence firms to encourage the combining of resources and competencies, in order to spur innovation and the development of modern military equipment;

    13. Considers that the strategic environments in which many EU common security and defence policy (CSDP) missions are present are radically deteriorating, with an ongoing war of aggression by Russia in Ukraine and its spillover effect into Moldova and the South Caucasus, a wave of coup d’états in the Sahel region and renewed terrorist campaigns in Somalia and Mozambique, all of which demonstrate the need for the white paper to ensure flexibility in a 360 degree approach to European security that strives towards building a credible and capable deterrence capacity for the Member States, and ensures that Member State civilian and military personnel can deter and respond rapidly to the growing threat environment;

    14. Recognises that the current geopolitical paradigm is the result of decades of underinvestment in European security and over-reliance on allies and partners; considers it a key priority of the white paper to outline an actionable plan to revitalise and advance deterrence along the periphery of Europe with a combination of joint civilian and military training missions that specialise in combined arms training, counter-unmanned aerial vehicle (C-UAV) and counter-improvised explosive device (C-IED) capabilities, and enhance interoperability and interchangeability among the Member States and non-EU countries;

    15. Calls for the white paper to ensure that the CSDP’s access to planning, resources and logistics is utilised in a manner that permits the CSDP to become the primary enabler of civilian crisis management during emergencies, and can be used as a practice hub for societal resilience and recovery in the face of both human-induced and natural disasters;

    16. Stresses that the white paper should promote close coordination between the EU and NATO to aid our collective defence and deterrence efforts, as well as the alliance’s effort to promote cooperative security through defence capacity-building and its open door policy;

    17. Calls for the white paper to outline how the EU and NATO should collaborate on building an integrated approach to the Black Sea, with a view to strengthening partnership in the areas of security, energy and connectivity; calls for the EU to redouble joint efforts by the EU and NATO to strengthen the deterrence and resilience of the Eastern Partnership countries by developing maritime defence capabilities, enhancing maritime interoperability, providing capabilities to deter and defend against cyber intrusions and attacks, expanding intelligence-sharing and maintaining modern outfitting of national armed forces;

    18. Highlights that Russia’s aggression against Ukraine and Iran’s aggression against Israel have demonstrated the use of drones at an unprecedented scale in modern warfare, urges the Member States to utilise the European Peace Facility, Permanent Structured Cooperation, the European Defence Agency and other available and future instruments to ensure that investment, development and joint procurement of counter unmanned aerial systems (C-UAS) and airborne electronic attack (AEA) equipment are prioritised, and to integrate C-UAS and AEA into the strategic doctrine of CSDP military training missions;

    19. Concurs with the ambition of enhancing the European pillar within NATO, with a view to augmenting strategic complementarity, by increasing the amount and range of NATO advanced training courses between European allies and partners to ensure that the Member States close the gap with the United States in operational capabilities and effectiveness; stresses that the development of EU operational capabilities can go hand in hand with the deepening of EU-NATO cooperation;

    20. Emphasises that the rise of asymmetric transnational threats has increasingly blurred the distinction between external and internal security, as well as between military and non-military security, and that this shifting landscape necessitates a comprehensive and adaptive approach to security at EU level; underlines that the Member States’ increases in defence spending should be complementary to the EU’s overall security strategy, which must evolve in response to changes in the strategic environment;

    21. Recognises that NATO and leading allies such as the United States and the United Kingdom are playing a crucial role in coordinating and leading the efforts to support Ukraine militarily not only with weapons, ammunition and equipment, but also intelligence and data; considers Russia’s ongoing war of aggression as further evidence that the most important countries for European security remain the United States and United Kingdom, as the war continues to reveal profound structural faults in EU security and defence architecture and unacceptable shortfalls in its capabilities;

    22. Highlights the need to ensure the security of the Black Sea region by assisting in the demining of Ukraine’s seawaters and to encourage the Member States to offer joint training exercises in this regard, with an emphasis on the development of maritime mine counter measure capabilities and critical seabed infrastructure protection;

    23. Underlines the importance of undersea cables and in this regard expresses worry about the recent series of cable disruptions in the Baltic Sea, which raise concerns about hybrid warfare tactics, particularly plausible deniability in state-sponsored sabotage; recalls that Russia’s increased naval presence, also through its shadow fleet, in European waters, highlights the vulnerabilities of seabed infrastructure; stresses the need to expand NATO and EU naval coordination for Baltic Sea patrols, enhance surveillance and defensive capabilities, increase investment in undersea surveillance technologies and strengthen partnerships with private telecom and energy companies for real-time monitoring of undersea threats;

    24. Encourages the Member States to provide specialised opportunities for SMEs in the European defence sector so they have the capacity to participate in the bidding process via measures such as creating a pre-approved list of companies to facilitate a speedier engagement process, introducing private equity firms that invest in SMEs into the procurement process, assisting SME growth through incubation and capital investment, reducing the complexities of bidding for contracts, and devising an internal effort to reform the amount of time taken to address contract details;

    25. Encourages the Member States to support binding commitments in their defence budgets that ensure a minimum expenditure in the field of research and development spending, in order to ensure that SME engagement and a spillover effect into the civilian marketplace can be tangibly supported;

    26. Emphasises that the Member States’ ambitions to achieve defence readiness should also be advanced through partnerships and prioritise, where possible, the integration of the Ukrainian Defence Technological and Industrial Base into the wider European Defence Technological and Industrial Base (EDTIB) and transatlantic defence technological and industrial cooperation, with a particular emphasis on joint drone and munitions development;

    27. Encourages initiatives such as the EU’s Act in Support of Ammunition Production (ASAP) to serve as a standard for advancing the much-needed increase in munitions and capabilities required for our armed forces, using ASAP as a basis for combining credible and effective multi-domain conventional force capabilities, missile defences, space support, drone development and various other key capabilities as outlined in the EDA’s Capability Development Plan;

    28. Stresses that the white paper must include an outline of institutional reforms that reinforce changes in procurement regulations and intellectual property frameworks, as well as leveraging tax incentives to promote defence-related innovation; emphasises that any such changes must be designed to ensure speed and efficiency within the procurement process and management life cycle of Member State weapons systems;

    29. Encourages speedy financing for enhancing military mobility in a manner that guarantees the upgrading of infrastructure for dual-use military and civilian purposes, contributes to the EU’s defence capabilities and realises a fully operational military Schengen area; underlines that such investments offer significant economic and security benefits; calls on the Commission to act on the recommendations of the 2025 ECA special report on military mobility and to give greater importance to the military assessment during the selection process for dual-use projects;

    30. Stresses that military mobility requires the elimination of regulatory bottlenecks that hinder the delivery of capabilities and limit the investment required to modernise defence capabilities and improve military mobility; emphasises, therefore, that the removal of obstacles, implementation of flow-monitoring and optimisation of systems for addressing cross-border threats are crucial and must be reflected in the white paper;

    31. Urges the Commission to consider financing that ensures that anti-access/area denial capabilities and civil-military fusion are prioritised within any infrastructure development objectives, particularly along the eastern flank;

    32. Supports initiatives for industrial reinforcement actions that benefit SMEs or mid-caps, demonstrate a contribution to the creation of new forms of cross-border cooperation or involve the creation of new infrastructure, facilities or production lines, or the establishment of new or the ramping-up of existing manufacturing capacities of crisis-relevant products;

    33. Encourages the Member States to prioritise the pre-deployment of personnel and capabilities in support of the eastern flank, combined with a follow-on forces and rapid deployment capability that ensures effective border security and deterrence against both hybrid warfare and Russian military manoeuvres;

    34. Underlines the Arctic’s strategic importance within the EU’s defence framework, underscoring the need for strengthened deterrence and defence capabilities in close coordination with NATO; emphasises that this cooperation is essential to address the intensifying militarisation and resource competition operated by Russian and Chinese activities in the region, and to counterbalance their expanding influence and military presence;

    35. Encourages the Member States to ensure closer synergies with national joint training and evaluation centres in Eastern Partnership countries, while also ensuring that there is widespread Member State representation in CSDP missions throughout the Eastern Partnership region, and to encourage greater participation of non-EU countries in these missions, particularly non-EU countries that have hosted successfully completed CSDP missions;

    36. Considers outer space to be an increasingly contested area, with the weaponisation of space on the rise, space security becoming an ever more critical and contested issue, and a growing rush to militarise space infrastructure; highlights the need to prioritise the defence and security of space as a critical part of Europe’s defence, and underscores the importance of securing Europe’s space capabilities and infrastructure, both on land and in orbit, to ensure continuous, secure access to data and communications;

    37. Recognises the important role that emerging disruptive technologies such as quantum computing and AI will play in our future relations with Russia and China, and calls for increasing Europe’s resilience to emerging disruptive technologies in all CSDP missions and operations;

    38. Considers that hybrid threats in the years to come will see the systematic combination of information warfare, agile combat manoeuvres, mass cyber warfare and emerging and disruptive technologies from seabed to space, with both advanced air-breathing and space-based surveillance and strike systems deployed, all of which will be enabled by advanced AI, quantum computing, increasingly ‘intelligent’ drone swarm technologies, offensive cyber capabilities, hypersonic missile systems, and nanotech and bio-warfare;

    39. Underlines the importance of civil defence and preparedness in the medium and long term, including the need to establish adequate civil protection infrastructure and planning for emergency situations; calls for the EU, its Member States and local governments to ensure the necessary investments for those purposes and a dedicated investment guarantee programme within the EIB for crisis-proofing and civil defence infrastructure;

    40. Instructs its President to forward this resolution to the European Council, the Council, the Commission, in particular the President of the Commission, the Commissioner for Defence and Space and the other competent Commissioners, the Vice-President of the Commission / High Representative of the Union for Foreign Affairs and Security Policy, the UN Secretary-General, the NATO Secretary General, the President of the NATO Parliamentary Assembly, the EU security and defence agencies and the governments and parliaments of the Member States and partner countries.

     

    MIL OSI Europe 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;

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    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