Category: Business

MIL-OSI New Zealand: NZ Post cost-cutting another blow to Kiwi employment – E tū

Source: Etu Union

Workers at NZ Post’s call centre have been told their jobs are being gradually moved to Manila, in the Philippines, as part of NZ Post’s need to cut costs.

While workers’ jobs are safe for now, they will be replaced by workers in Manila by attrition, with people not being rehired in Aotearoa New Zealand when one leaves.

NZ Post worker and E tū delegate Samatha Boe says the move is out of line with NZ Post’s values.

“I find it disappointing a government-owned business is looking to send jobs offshore, thus taking away from everyday New Zealanders trying to earn a living in a difficult economic climate,” Samantha says.

“The Government should be prioritising having Kiwis in jobs. They might save in some running costs, but they’ll lose out in tax revenue and unemployment benefits.

“One of NZ Post’s values is ‘stronger together’ – we should be keeping these values here in Aotearoa.”

E tū Negotiation Specialist Joe Gallagher fears this is just another signal of the Government’s overall goal of preparing NZ Post for privatisation.

“Our postal network is core infrastructure designed to help our communities and businesses, not just another thing to make a quick buck on,” Joe says.

“We’re deeply concerned that the Government is allowing NZ Post to make these kinds of changes in preparation to sell off this service to the highest bidder.

“The state-owned enterprise model has been appropriate for NZ Post, and we have worked very constructively with the company through some significant changes, always putting the interests of workers and the wider community who use the services first.

“Offshoring work, inadequate government support, and the talks of privatisation all point to an abdication of responsibility for both New Zealand’s workforce and the services we need.”

ENDS

For more information and comment:
Joe Gallagher, 027 591 0015

MIL OSI New Zealand News –

March 6, 2025
MIL-OSI USA: AI pioneers Andrew Barto and Richard Sutton win 2025 Turing Award for groundbreaking contributions to reinforcement learning
Source: US Government research organizations

NSF funded Barto’s research journey from basic science to pioneering breakthroughs in artificial intelligence
The computing world is celebrating a major milestone as Andrew Barto, professor emeritus at the University of Massachusetts Amherst, and Richard Sutton, professor of computer science at the University of Alberta, Canada, have been awarded the 2024 Association for Computing Machinery A.M. Turing Award — often called the “Nobel Prize of computing” — for “developing the conceptual and algorithmic foundations of reinforcement learning.”

The legacy in reinforcement learning

Barto and Sutton are widely recognized as pioneers of the modern computational reinforcement learning (RL), a field that addresses the challenge of learning how to act based on evaluative feedback. Their work has laid the conceptual and algorithmic foundations of RL, shaping the future of artificial intelligence and decision-making systems.

The influence of RL extends across multiple disciplines, including computer science (machine learning), engineering (optimal control), mathematics (operations research), neuroscience (optimal decision-making), psychology (classical and operant conditioning) and economics (rational choice theory). Researchers in these fields continue to be profoundly shaped by the contributions of Sutton and Barto.

From NSF Grants to AI Breakthroughs

Barto’s contributions were made possible through a series of U.S. National Science Foundation-funded projects that sustained AI research long before its recent boom. His research was supported through grants from NSF programs including the National Robotics Initiative, Robust Intelligence, Collaborative Research in Computation Neuroscience, Human-Centered Computing, Biological Information Technology and Systems, Artificial Intelligence and Cognitive Science, which have driven the long-term, fundamental advances in machine learning that we see today.

“Barto’s research exemplifies the power of foundational computational research that has not only advanced state-of-the-art decision-making machines and intelligent systems but has also provided critical insights into understanding intelligence itself,” said Greg Hager, NSF assistant director for Computer and Information Science and Engineering.

“Andy Barto’s work laid the foundation for modern reinforcement learning, influencing generations of researchers, including myself. His insights with Rich Sutton into how agents can learn and adapt in complex environments form the backbone of how automated behavior is generated in the field of artificial intelligence. Without his pioneering research, many of today’s — and tomorrow’s — AI breakthroughs wouldn’t be possible,” said Michael Littman, director for the NSF Division of Information and Intelligent Systems.

The impact of Barto and Sutton’s work

For decades, NSF has supported fundamental research in AI, with Barto’s work being among the most influential. Barto and Sutton formalized RL concepts through decades of research, beginning with Sutton’s time as Barto’s first doctoral student. Their collaboration continued as Sutton later joined Barto at the UMass Amherst as a senior research scientist from 1995 to 1998 and beyond, producing many of the foundational RL approaches that remain in use today.

Reinforcement learning methods built on Sutton and Barto’s work today underpin:
- Chatbots: Conversational AI agents learn to answer questions helpfully and accurately with the help of a technique called reinforcement learning from human feedback, as deployed in ChatGPT and other leading bots.
- Games: From Jeopardy to Go to video games, RL algorithms have made it possible for computer players to achieve world-class performance and have even influenced the strategies of the best human players.
- Robot motor skill learning: RL enables robots to learn autonomously through trial and error how to carry out intricate tasks.
- Microprocessor layout and circuit design: RL systems make decisions for composing components that make up computer chips
- Personalized recommendations: Online services like Netflix and YouTube rely on RL techniques to tailor recommendations.
- Autonomous vehicles: RL models help self-driving cars learn how to navigate complex traffic environments.
- Supply chain optimization: RL-enabled systems learn what items need to be stored where so that customers can receive goods quickly and cheaply.
- Algorithm design: Researchers have broken new ground and solved long-standing problems with the help of RL systems.
Breakthroughs in RL have fueled a multibillion-dollar industry, with major companies like DeepMind and OpenAI relying on RL as a core technology. Additionally, many major tech firms now have dedicated RL research teams. It is also recognized as a core topic of study. For example, RL was added to the Computer Science Standards of Learning for Virginia Public Schools earlier this year.

Bridging AI and neuroscience

The influence of Barto and Sutton’s work extends far beyond computer science and AI, forging crucial connections between RL and brain sciences, including cognitive science, psychology and neuroscience. Their research has provided groundbreaking insights into how learning can occur, both in machines and in the human brain.

One of their earliest breakthroughs came in 1981 when they showed that temporal difference (TD) learning could explain certain learning behaviors that the existing Rescorla-Wagner model couldn’t. This discovery opened the door to a new way of understanding how learning happens. Building on this idea, a 1995 study found a connection between the TD algorithm and how dopamine neurons in the brain behave. This insight laid the groundwork for later experiments that confirmed that TD learning accurately describes how dopamine influences reward-based learning.

With the 2025 A.M. Turing Award recognizing Barto and Sutton’s lifetime achievements, their legacy underscores the importance of sustained federal investment in basic research — the kind of support that has fueled AI’s breakthroughs over the last four decades.

For more details on this year’s award, please visit https://amturing.acm.org/
MIL OSI USA News –
March 6, 2025
MIL-OSI USA: Gov. Pillen Signs Executive Order Banning More CCP Tech

Source: US State of Nebraska

. Pillen Signs Executive Order Banning More CCP Tech

LINCOLN, NE – Today, Governor Jim Pillen signed an executive order banning the use or download of applications, software, and platforms created or owned by affiliates of the Chinese Communist Party (CCP) on state networks and devices.

“This is about protecting Nebraska. We need to continue identifying and eliminating threats that come from the Chinese Communist Party,” said Gov. Pillen. “They don’t mean well, and we must ensure that America’s adversaries can’t hack our state’s data or critical digital infrastructure. This is important, ongoing work and commonsense governance.”

Today’s action will expand on Gov. Pillen’s March 2023 executive order by including new technology developed by and affiliated with the CCP. That order banned communications equipment and services produced by CCP-controlled companies that were also on the Federal Communications Commission’s Covered List.

A copy of today’s executive order is attached to this email.

Gov. Pillen and Secretary of State Evnen sign EO 25-04

MIL OSI USA News –

March 6, 2025
MIL-OSI USA: Governor Stein Provides Updates on Severe Weather Impacting North Carolina & Issues Safety Guidance
Source: US State of North Carolina

Headline: Governor Stein Provides Updates on Severe Weather Impacting North Carolina & Issues Safety Guidance

Governor Stein Provides Updates on Severe Weather Impacting North Carolina & Issues Safety Guidance
lsaito
Wed, 03/05/2025 – 17:35

Raleigh, NC
Today, Governor Stein and emergency officials provided updates on severe weather impacting the state and are urging all North Carolinians to prepare for severe thunderstorms, heavy downpours, isolated tornadoes, and damaging wind gusts. As the storm continues to move eastward throughout the day, North Carolinians should stay tuned to emergency alerts and have a plan to take cover if necessary.

“Our State Emergency Response Team is in contact with its partners across the state and ready to respond with any tool at its disposal to keep North Carolinians safe through this severe weather,” said Governor Josh Stein. “Please listen to your local weather forecast for updates, enable emergency alerts on your cell phone, and have a plan to take immediate cover if a severe weather warning for tornadoes is issued for your area.”

Preparedness Tips:
- During periods of severe weather, it is important to go inside a sturdy structure and to the middle of the building, away from windows.
- You should secure all outdoor items at your house that could become airborne in gusty winds.
- Make sure your cell phone is charged and that you have enabled emergency alerts so you can be informed by local emergency management and by the National Weather Service.
- Have a plan to take cover if a severe weather warning is issued for your area.
- As a reminder, a watch is a reminder that weather conditions may support severe weather conditions. A warning means that hazardous weather conditions are expected and imminent.
- Visit www.readync.gov for more information on how you and your family can be prepared.
A tornado watch has been issued for 24 counties across the Triangle and surrounding counties to the coastal plain until 1:00 pm. Counties impacted by warnings and watches will be updated here. Structural damages from winds have been reported in Union County and state emergency management officials remain in contact with local emergency management to assist as needed.

A Wind Advisory is now in effect for much of North Carolina through Wednesday evening. The Wind Advisory across much of the Outer Banks remains in effect through 10:00 p.m. Wednesday. A High Wind Warning remains in effect for higher elevations across portions of the mountains through early Wednesday afternoon where wind gusts up to 70mph are expected.

The Storm Prediction Center (SPC) has expanded the Enhanced Risk (level 3 of 5) for severe storms slightly westward to include western portions of central North Carolina and remains in place for the eastern half of the state with a Slight Risk (level 2 of 5) in place across the foothills. The primary impacts will be damaging wind gusts (up to 75mph) and tornadoes where some tornadoes may become strong, especially across eastern North Carolina. While severe storms are possible across much of North Carolina today, the strongest severe storms are most likely along and east of the US-1 corridor Wednesday afternoon and evening. While any additional development is not expected to become as severe, storms may redevelop late Wednesday afternoon into Wednesday evening across portions of the Piedmont. Risk levels vary across the state; North Carolinians should pay attention to local forecasts and make plans that are appropriate for the risk level in their area.

A Coastal Flood Advisory is now in effect through 1:00 a.m. Thursday for Ocracoke & Hatteras Islands as well as the northern Outer Banks where minor soundside coastal flooding near shorelines and tidal waterways is expected. Minor ocean overwash is also possible along portions of the North Carolina coast, especially areas vulnerable to southerly winds.
Mar 5, 2025

MIL OSI USA News –
March 6, 2025
MIL-Evening Report: OPINION: Keith Rankin – Germany’s Election 2025: Far Establishment-Right versus Far Non-Establishment-Right?

Opinion/Analysis by Keith Rankin.

Keith Rankin, trained as an economic historian, is a retired lecturer in Economics and Statistics. He lives in Auckland, New Zealand.

Germany’s important election last week struggled to make the news cycle, even on Germany’s own Deutsche Welle(DW), Germany’s equivalent of Britain’s BBC. Especially (but not only) in the international media, most of the focus was on a single party (AFD, Alliance for Germany) that was never going to have the most votes and was (almost) never going to become part of the resulting government.

Germany is the world’s third largest national economy, and traditionally dominates the politics of the European Union; an important example of this dominance was the Eurozone financial crisis of the first-half of the 2010s; a crisis that was (unsatisfactorily) resolved, thanks to a problematic and controversial program of fiscal austerity.

At present, Germany, like New Zealand, is experiencing an economic recession. (Provisional annual economic growthwas -0.2% in 2024 and -0.3% in 2023.) The cause is similar, too, in both countries: the same ‘balance the Budget’ mentality that gave the world the Great Depression in the 1930s.

Election Result

The ‘winner’ of the German election was the CDU/CSU Alliance (see Wikipedia for a better presentation of the results), which works a bit like the Liberal/National Coalition in Australia. (The Christian Social Union functions in Bavaria much like Australia’s National Party functions in rural Queensland.) CDU/CSU (like National in New Zealand) comfortably prevailed with 28.5 percent of the vote, entitling that alliance to 33 percent of the seats in the Bundestag (Parliament).

The new Chancellor (equivalent to Prime Minister) will be Friedrich Merz; a 69-year-old version of our own Christopher Luxon, as far as I can tell. He is strongly anti-Putin and pro-Israel. He has come to power well and truly under the international media radar; and will be in a strong position to exert near-absolute power, given that he will always be able to turn to the AFD (who got more votes than the Social Democrats; 20.8%) for support in the Bundestag for any measure that is not palatable to Olaf Scholz’s Social Democrats. In the new Parliament, the Greens and the Left merely make up the numbers.

Merz’s Christian Democrats will form a coalition government with the losing SPD (Social Democratic Party, like Labour in New Zealand) who came third with 16.4 percent of the vote; 19 percent of the seats. Together these two parties of the establishment centre hold 52% of the new parliament, despite having less than 45% of the vote. (The outgoing minority government was a centrist coalition of the SPD and the Greens; the election was held early because the ACT-like Liberal Party – the FPD, Free Democrats – withdrew from the coalition. The FPD vote shrunk from 11.4 percent in 2021 to just 4.3 percent of the vote this time.)

The result in Germany proved to be very much like that of the United Kingdom in 2024: a slide in support for the two major parties (‘the establishment centre’), a consolidation of power to the self-same establishment centre, and a shift of that establishment centre to the right. (See my chart in Germany’s stale (and still pale) political mainstream, Evening Report 27 February 2025, for a timeline of decline.) While both countries technically underwent a change of government, in both countries the establishment has entrenched its power, and in both countries the political assumptions of the power centre have shifted to the right.

Clearly this is problematic for democracy, because historically disastrous popular support for the ‘broad church’ parties of the establishment centre has coincided with increased power to those parties, as well as policy convergence between them. Further, based on legislative electoral requirements, neither Germany nor the United Kingdom (nor the United States for that matter) will have a new government until 2029. At a time when a week is a long time in international politics, 208 weeks is an eternity. World War Three, a distinct possibility, may be in its second or third year by then.

Voting System

Germany represents the prototype upon which New Zealand’s MMP voting system is based. There are some differences though, and some recent changes.

Germany calls its all-important ‘party vote’ the ‘second vote’, disguising its importance. It is possible that many German voters do not fully appreciate its significance. The electorate vote is called ‘first vote’, and winners (by a plurality, not necessarily a majority) are elected ‘directly’. The second (party) vote is understood as a top-up vote to ensure proportionality.

Party lists are regional in Germany. And ‘ethnic parties’ may get special privileges.

In one respect the German version is more proportional than the New Zealand version of MMP, in that it no longer allows overhang MPs. (However, the most recent result is not proportional in the important sense that two parties together with less than 45% of the vote have 52% of the seats.) In MMP, one can easily imagine an overhang situation being frequent if the ‘major’ parties, which win most electorates, only get between 16% and 29% of the party vote.

In 2013, Germany’s Federal Constitutional Court decided that overhang seats were too big a threat to proportionality. So, they introduced ‘levelling seats’. In effect, it meant that if one party gets an overhang, then all parties get an overhang. The result was, in 2013, that a parliament that should have had 598 members (Deputies) ended up with 631, an effective overhang of 33. In 2017 that effective overhang grew to 111, and to 137 in 2021.

For 2025, they decided to abandon overhang representation altogether, by not guaranteeing direct election through the first vote. And they fixed the size of the Bundestag to 630 Deputies, up from a base-size of 598.

If the new German system was in place in New Zealand in 2023, then two of the Te Pati Māori electorate seats from 2023 would have been forfeit, going instead to second placed candidates; proportionality in 2023 entitled Te Pati Māori to four seats, not the six which they have. However, we should note that, if New Zealand was using the present German version of MMP, there would be no special Māori electorates, but the Māori Party would be exempt the five percent party threshold. Ethnic-privileged parties in Germany are incentivised to focus on the party vote, not the electorate vote. In Germany there is a Danish ethnic party (South Schleswig Voters’ Association) which is exempt the threshold. Its leader, Stefan Seidler, did not win his electorate. But his party got 0.15% of the nationwide vote, meaning it qualified for 0.15% of the 630 places in the Bundestag; one seat, for him.

New Zealand voters seem to have more tactical and strategic political nous than do German voters. Thus, it has been very rare for a party in New Zealand to miss out qualifying for Parliament because of getting between 4% and 5% of the party votes (noting that both countries operate a 5% disqualification threshold). In Germany, party-vote percentages just below 5% are not uncommon. In New Zealand, voters, conscious that they want to play a role in coalition-building, actively help parties near the threshold to get over the line. (Indeed, I voted New Zealand First in 2023, because I was 99.9% sure that the only post-election coalition options would be National/ACT or National/ACT/NZF; I favoured the three-party alternative, so I used my vote strategically to help block a National/ACT government.)

Indeed the latest German result was a bit like the latest New Zealand result, but with a party resembling New Zealand First (BSW) getting 4.972% of the vote, so getting no seats at all. BSW getting just a few more votes would have meant a substantial erosion of the two-party power result which eventuated. It is extremely difficult for new non-ethnic parties to get elected in Germany.

In 2025, two parties scored just under five percent of the vote. As well as the BSW, the (ACT-like) Free Democrats who had been part of the previous government, and who had indeed precipitated the early election, scored 4.3%. Indeed, fifteen percent of the votes were ‘wasted’ – that is, cast for ultimately unsuccessful parties. In New Zealand the wasted vote is typically around four percent. Indeed, this high wasted vote turns out to be a more serious challenge to proportionality in German than uncompensated overhang seats.

Both Germany and New Zealand have the contentious (in New Zealand) ‘electorate MP’ rule; the rule that’s misleadingly dubbed in New Zealand as the ‘coat-tail’ rule. (Misleading, because most MPs come in on the coat-tails of their party leadership, and always have.) In Germany the rule is stricter than in New Zealand. In order to avoid disqualification by getting less than 5% of the party vote, New Zealand requires that the party get one electorate MP. In Germany the rule (initially the same as New Zealand), since 1957 has been a requirement for three electorate MPs. In Germany in 2021, the Left Party got 4.87% of the vote and three electorate MPs; they just squeezed in, on both criteria!

Overall, United States’ Vice-President JD Vance’s pre-election comments about democracy in Germany were valid. German politics continues to exclude the non-establishment parties of both the right and the left, despite support for these parties having been increasing for a while, and now representing the majority of German voters.

Media Framing

German television electoral coverage, if DW is anything to go by, is superficial; indeed, is quite insensitive to the national and local dramas taking place. I watched the coverage live. In the hour before the Exit Poll results were announced, the discussion barely mentioned the potential dramas taking place, despite both the BSW and FDP parties pre-polling only just under the five percent threshold. The state of the economy was mentioned in a perfunctory way; clearly it was not a big issue for the political class on display.

At 6 o’clock exactly, the exit-poll results were read out, as if they were the election result. As indeed they turned out to be, more-or-less; the same as the pre-election polls. The subsequent uninterested attitude towards the actual counting of the votes was disappointing. There had been a bit of this in the 2024 UK election as well; as if the exit poll was the election result. In the UK case, Labour’s actual result (for the popular vote) was well under the exit poll result, while the Conservatives did significantly better than their exit poll tally; those facts, though, were for the nerds and psephologists.

In my observation, early votes and exit polls favour the parties supported by the political class; election day votes much less so. So, in New Zealand in 2023 it was initially looking like there would be a two-party coalition of the right. But, to the attentive, as the night wore on, the National Party percentage fell from 41% to 38%, meaning that NZF would have to be included in any resulting coalition.

I suspected something quite similar would happen in Germany, and I was only partially wrong. The exit poll results, and the subsequent counts, were presented to just one decimal place; indeed, the presentation of the numbers was very poor throughout. So, it was hard to see to what extent BSW was improving as the votes were counted.

In the exit poll, two parties – FPD and BSW – were shown as being on 4.7%, and the AFD was on 19.5%. So, the two 4.7% parties were largely written out of the subsequent discussion. We did see an early concession by the FPD, who – representing a segment of the political class – understood the polling dynamics rather well. And we did see the AFD’s Alice Weidel being asked if she was disappointed to get under 20%. Ms Weidel put on a brave face, but she did seem disappointed. When the votes were actually counted, her party got 20.8% exactly on Weidel’s prior expectations.

BSW was completely ignored. There was simply no interest in the possibility that they might reach the 5% threshold, even when the vote count had them upto 4.9%. In the end BSW reached 4.972%; so close! Out of sight, out of mind! In the official results the BSW were lumped with ‘Other Parties’. The DW election panel were too unaware to make any comments about the party itself, its philosophies, or how its possible success might influence the process of forming a coalition government. (Of particular importance was that, with just a few more votes, BSW might have given Eastern Germany a voice in a three-way coalition government.)

For DW, their perennial concern is the place of Germany within Europe and the World; they had little time to give the outside world a glimpse into the domestic lives and politics of ordinary Germans. And we heard nothing about the ‘ethnic vote’, the privileged Denmark Party notwithstanding. I suspect that many if not most of the recent immigrants who do much of the work in Germany either could not vote or did not vote. The election was about them, not for them; denizens, not citizens.

However, DW did invite on a gentleman who mildly focussed the attention of the discussants by suggesting that one of the priorities of the new Chancellor – Friedrich Merz – would be to acquire nuclear weapons! I don’t think the rest of the world had any prior insights into that; ordinary Germans were probably equally in the dark.

Who is Friedrich Merz? Who knows? It turns out that he dropped out of politics for a while, to play a leading role in BlackRock, the international acquisitions company which until recently owned New Zealand’s SolarZero (refer Update on SolarZero Liquidation by BlackRock, Scoop, 29 January 2025). Our media told us that the election was all about the “far-right” AFD Party; that is, the far non-establishment-right. We in New Zealand heard nothing about the far establishment-right; the shadowy man (or his party). Some now fear Merz will be an out-and-out warmonger. Even Al Jazeera, which can be relied upon to cover many stories about places New Zealand’s media barely touches (and in a bit more depth), had the portraits of Olaf Scholz and Alice Weidel on the screen, on 22 February, the day before the election, despite the certainty that Merz world become the new Chancellor.

In that vein, I heard a German woman interviewed in Christchurch, on RNZ on 25 February. She, disappointed with the election result, spent her whole edited four minutes railing about the AFD, as if the AFD had won. There was no useful commentary, by her or RNZ, of the actual result of Germany’s election.

Are we so shallow that we don’t care; that some of us with the loudest voices only want to rail against a non-establishment party, and to see the democratic support for alternative parties as being somehow anti-democratic?

East Germany

People of a certain age in New Zealand will remember the former East Germany; the DDR, German ‘Democratic’ Republic. Most people in Germany itself will have had knowledge of it, including the Berlin-based political staff of DW who were mostly in their thirties, forties and fifties. But the ongoing issues of Eastern Germany were barely in their mindframes.

In Eastern Germany – the former DDR – (especially outside of Berlin), support for the AFD was close to 40%, for BSW over 10%, and the Left much higher than in Western Germany. In the former East Berlin (which I visited in 1974), the Left seems to have been the most popular party. Support in the East for the establishment parties combined was between 25% and 30%, and with a lower turnout.

BSW, it turns out, is Left on economic policy and Right on social policy. And, in the German discourse, is categorised by the political class as ‘pro-Putin’. If BSW had got 5% of the vote, Merz could have tried to bring them into his government; or Merz might have turned to the Green Party instead of a ‘pro-Putin’ party. But I cannot see even the German Greens being able to govern as a junior partner to a belligerent establishment-right CDU-led government. BSW’s failure to get 5% of the vote may turn out to be one of the great ‘might-have-beens’ of Germany’s future history.

As JD Vance stated, this Eastern German situation poses a danger for democracy in Germany and in Europe. Eastern Germany is where the German state is at its most vulnerable. The majority of voters there have voted for ‘pro-Putin’ parties; and, significantly, parties prioritising the problems of economic failure over the big-politics of extranational power-plays.

The new German government, it would seem, is set to aggravate (or, at best, ignore) the problems of Germany’s ‘near-East’, while setting out to inflame the problems of Europe’s ‘far-East’.

The Debt Brake

This is Germany’s equivalent of Ruth Richardson’s 1994 ‘Fiscal Responsibility Act’ (now entrenched in New Zealand law and lore). This is the major single reason why New Zealand has had so many infrastructure problems this century, and why so many young men and families emigrated to Australia in the 1990s, with some of these emigrants coming back to New Zealand in recent years as ‘501s’.

The Merkel debt-brake is the self-inflicted single major reason why many European economies are in such a mess today; and Germany in particular. Germany is congenitally deeply committed to all kinds of financial austerity, with government financial austerity being the most ingrained. Rather than circulating as it should, money is concentrating. The debt-brake is “a German constitutional rule introduced [in 2009] during the Global Financial crisis to enforce budget discipline and reduce [public] debt loads in the country” (see Berlin Briefing, below).

Germany still has a parliamentary session under the old Parliament, before the new parliament convenes. Michaela Küfner (see Berlin Briefing, below) suggests the possibility that the old “lame duck” Parliament could remove the debt-brake from the German constitution, because she sees the make-up of the new more right-wing parliament as being less amenable to address this ‘elephant in the room’. Seems democratically dodgy to me, even talking about pushing dramatic constitutional legislation through a ‘lame duck’ parliament; like Robert Muldoon, pushing through a two-year parliamentary term for New Zealand in the week after the 1984 election!

(Two-year parliamentary terms are not unknown, by the way; the United States has a two-year term for its Congress. This is almost never mentioned when we discuss the parliamentary term in New Zealand. In the United States at present, there will be many people for whom the 2026 election cannot come fast enough; an opportunity to reign-in Donald Trump.)

Future German relations with the United States

On 27 February (28 Feb, New Zealand time) – before the fiasco in the White House on 28 February – I watched Berlin Briefing on DW. This programme is a regular panel discussion of the political editorship of Deutsche Welle.

The context here is that Friedrich Merz made an important speech the evening after the election; a speech that had the Berlin beltway – “people behind the scenes here in Berlin” – all agog. Merz said: “For me the absolute priority will be strengthening Germany so much so that we can achieve [defence] independence from the United States.”

The discussion proceeded as follows:

“How important is this anchoring in Nato of the idea of the United States as ‘The Great Protector’?” Nina Haase, DW political correspondent: “I don’t think there’s a word, ‘massive’ is not enough; people behind the scenes here in Berlin … they talk about are we going to part with the United States amicably or are we going to become enemies [my emphasis] … Europe has relied on the US so much since the Second World War is completely new thinking; just to prepare for a scenario with, if you will, would-be enemies on two sides; in the East with Russia launching a hybrid attack and then [an enemy] in the West as well.” They go on to talk about the possible need for conscription in Germany.

The political correspondents were talking like bourgeois brat adult children who had expected that they should be able to enjoy a power-lifestyle underwritten by ‘big daddy’ always there as a financial and security backstop; and just realising that the rug of entitlement might be being pulled from under them. Michaela Küfner (Chief Political Editor of DW) goes on to talk about an “existential threat from the United States”, meaning the withdrawal (and potential enmity) of the great protector. “Like your Rich Uncle from across the ocean turning against you”, she said.

Nina Haase: “Pacifism, the very word, needs to be redefined in Germany … Germans are only now able to understand that you have to have weapons in order not to use them.” She was referring to earlier generations of pacifists (like me) who saw weapons as the problem, not the solution.

Ulrike Franke: “Everything needs to change for everything to stay the same”, basically saying Germany itself may have to pursue domestic Rich Uncle policies to maintain the lifestyles of the (entitled) ten percenters.

Michaela Küfner, towards the end of the discussion: “The AFD is framing [the supporters of] the parties which will make up the coming coalition as the political class who we will challenge”. And she noted, but only at the very end of the long discussion, that the effectively disenfranchised people in Eastern Germany are “a lot more Russia-friendly”.

Maybe Merz has a plan to build employment-rich munitions factories in Eastern Germany, to address both his security concerns and the obvious political discontent arising from unemployment and fast-eroding living standards? But Merz will have to abandon his innate fiscal conservatism before he can even contemplate that; can he do a Hoover to Hitler transition? Rearmament was Hitler’s game; his means to full employment after the Depression.

Implications for Democracy

I sense that Friedrich Merz will become the face of coming German politics, just as Angela Merkel once was, and as Trump and Starmer are very much the faces of government in their countries; becoming – albeit through democratic means – similar to the autocrats that, in Eastern and Middle-Eastern countries, they [maybe not Trump] rail against.

We might note that if we look carefully at World War One and World War Two, the core conflict was Germany versus Russia. Will World War Three be the same? And which side will ‘we’ (or ‘US’) be on? In WW1 and WW2, we were on Russia’s side. (Hopefully, in the future, we can be neutral with respect to other countries’ conflicts.)

Democracy is under strain worldwide. The diminishing establishment-centre – the political and economic elites and the people with secure employment and housing who still vote for familiar major parties – is clinging on to power, and for the time-being remains more powerful than ever in Europe.

In the Europe of the early 1930s, it was the Great Depression as a period of abject political failure that resulted in the suspension of democracy. All the signs are that the same failures of democratic leadership – worldwide from the 1920s – will bring about similar consequences.

For democracies to save themselves, they should bring non-establishment voices to the table. In 2025. Germany will be another important test case, already sowing the seeds of political failure. We should be wary of demonising the far non-establishment-right while lionising the far establishment-right.

*******

Keith Rankin (keith at rankin dot nz), trained as an economic historian, is a retired lecturer in Economics and Statistics. He lives in Auckland, New Zealand.

Ref.

MIL OSI Analysis – EveningReport.nz –

March 6, 2025
MIL-OSI USA: PHOTO: Cornyn Meets with City of Del Rio Leaders

US Senate News:

Source: United States Senator for Texas John Cornyn

WASHINGTON – U.S. Senator John Cornyn (R-TX) met yesterday with leaders from the City of Del Rio including Mayor Al Arreola and City Manager Shawna Burkhart, to discuss increasing legitimate trade and travel, easing congestion at ports of entry, improving safety, and expediting presidential permits for key bridge expansion projects in the region, specifically for the Del Rio-Acuña International Bridge. See photo below.

This image is in the public domain, but those wishing to do so may credit the Office of U.S. Senator John Cornyn.

Senator John Cornyn, a Republican from Texas, is a member of the Senate Finance, Judiciary, Intelligence, Foreign Relations, and Budget Committees.

MIL OSI USA News –

March 6, 2025
MIL-OSI USA: Cornyn, Markey Reintroduce Legislation to Fund Sea Turtle Research and Rescue Assistance

US Senate News:

Source: United States Senator for Texas John Cornyn

Senators John Cornyn (R-TX) and Edward J. Markey (D-MA) reintroduced their bipartisan and bicameral Sea Turtle Rescue Assistance and Rehabilitation Act, legislation to establish funding at the Department of Commerce for the rescue, recovery and research of sea turtles in Texas and across the United States. Text of the bill can be found, here.

“Sea turtle strandings are rising at an alarming rate along the Texas Gulf Coast,” said Sen. Cornyn. “This bill would help identify the causes of these strandings and invest in rescue and recovery efforts to better protect Texas’ endangered and storied sea turtle population.”

“Sea turtles are the canaries in the coal mine. Right now, every known species of sea turtles found in US waters is either threatened or endangered and faces extinction and environmental wipeout due to the human-caused climate crisis. We have the responsibility to act,” said Sen. Markey. “I am reintroducing the Sea Turtle Rescue Assistance Act to financially support ongoing rescue and rehabilitation efforts of our shelled friends.”

The legislation is co-sponsored by Senators Chris Van Hollen (D-MD), Lindsey Graham (R-SC), Cory Booker (D-NJ, and Tom Tillis (R-NC). In January, Representative Bill Keating (MA-09) introduced companion legislation in the House of Representatives.

Background:

In 2000, fewer than 50 sea turtles were found stranded on the beaches of Cape Cod; by 2022, that number had skyrocketed to 866. During the 2021 cold snap in Texas, more than 12,100 turtles were cold-stunned, and rescue organizations were able to save and return only 4,000 of the stranded turtles to the wild. Rescue efforts are predominantly volunteer led and underfunded despite sea turtles facing increasing environmental and human-caused threats that make strandings more likely, including rapid temperature changes, red tide events, and entanglement in marine debris. This bill would provide stability and support to efforts that rehabilitate and aid in the recovery of sea turtles along the coastal US. Specifically, the Sea Turtle Rescue Assistance Act would create a new grant program to fund rescue, recovery, and research of sea turtles in the U.S., and authorize $5 million annually for awarding of grants to further that purpose from 2025 through 2030.

The Sea Turtle Rescue Assistance and Rehabilitation Act is endorsed by the Association of Zoos and Aquariums, the New England Aquarium, the National Aquarium, ABQ BioPark, Acadia Institute of Oceanography, Adventure Aquarium, Allied Whale – College of the Atlantic, Assateague Coastal Trust, Atlantic Marine Conservation Society, Aquarium of the Pacific, Arizona-Sonora Desert Museum, Audubon Nature Institute, Bird River Beach Community Association, Blank Park Zoo, Brevard Zoo / East Coast Zoological Park, Brookfield Zoo Chicago, Buttonwood Park Zoo, Central Florida Zoo & Botanical Gardens, Chattanooga Zoo at Warner Park, Cincinnati Zoo & Botanical Garden, Citizens Campaign for the Environment, Clearwater Marine Aquarium, Cleveland Metroparks Zoo, Coastal Research and Education Society of Long Island, Columbus Zoo and Aquarium, Connecticut’s Beardsley Zoo, Conservation Council For Hawaii, El Paso Zoo and Botanical Garden, Fort Wayne Children’s Zoo, Georgia Aquarium, Georgia Sea Turtle Center / Jekyll Island Authority, Georgia Wildlife Federation, Gladys Porter Zoo, Gulf World Marine Institute, Healthy Ocean Coalition, Houston Zoo, International Fund for Animal Welfare (IFAW), Jenkinson’s Aquarium, John Ball Zoo, John G. Shedd Aquarium, Kansas City Zoo, Karen Beasley Sea Turtle Rescue & Rehabilitation Center, Loggerhead Marinelife Center, Louisiana Wildlife Federation, Marine Education – Research & Rehabilitation Institute, Inc. (MERR), Marine Conservation Institute, Marine Mammal Alliance Nantucket, Maryland Zoo in Baltimore, Mass Audubon, Maui Ocean Center Marine Institute, Monterey Bay Aquarium, Mystic Aquarium, National Marine Life Center, National Wildlife Federation, Natural Resources Defense Council, Newport Aquarium, New York Marine Rescue Center, North Carolina Aquariums, North Carolina Wildlife Federation, OdySea Aquarium, Oregon Coast Aquarium, Pittsburgh Zoo & Aquarium, Racine Zoo, Roger Williams Park Zoo, Saint Louis Zoo, SEA LIFE Aquariums, Sea Turtle Recovery, Inc., Seattle Aquarium, Seatuck Environmental Association, SeaWorld Parks, Sociedad Ornitologica Puertorriquena Inc., South Carolina Aquarium, South Carolina Wildlife Federation, Sunset Zoo, Surfrider Foundation, Texas Conservation Alliance, Texas Sealife Center, Texas State Aquarium, The Florida Aquarium, The Institute for Marine Mammal Studies, The Living Desert Zoo and Gardens, The Maritime Aquarium at Norwalk, The Ocean Project, The Turtle Hospital, Upwell Turtles, Vancouver Aquarium, Virgin Islands Conservation Society, Virginia Aquarium & Marine Science Center, Whitney Lab for Marine Bioscience at University of Florida, WIDECAST: Wider Caribbean Sea Turtle Conservation Network, Wildlife Restoration Foundation, and Woodland Park Zoo.

“We are grateful for Sen. Markey’s continued partnership as he reintroduces the Sea Turtle Rescue Assistance and Rehabilitation Act of 2025 in the U.S. Senate. Each year, the New England Aquarium rescues and rehabilitates hundreds of cold-stunned sea turtles that wash onto the beaches of Cape Cod Bay. This bill would help fill a critical gap in sea turtle conservation efforts by providing much-needed financial support to organizations across the country like ours that help return these endangered animals to the ocean,” said Vikki N. Spruill, President and CEO of the New England Aquarium.

“The National Aquarium applauds the reintroduction of the bicameral, bipartisan Sea Turtle Rescue Assistance and Rehabilitation Act. We are proud to be part of the nationwide network of organizations engaged in sea turtle conservation and in educating the public on the challenges facing these threatened and endangered species. Sea turtle strandings are on the rise, as are the expenses related to rescuing, rehabilitating and releasing them back to their ocean home. The level of voluntary contribution from stranding network partners is not sustainable. We thank the champions in the House and Senate for their leadership in creating a much-needed federal grant program to support this important work,” said John Racanelli, President & CEO of the National Aquarium.

“Each year, aquariums, zoos and other organizations selflessly rescue and rehabilitate thousands of stranded and injured sea turtles with little to no federal support. They do it because it is the right thing to do,” said Dan Ashe, President and CEO of the Association of Zoos and Aquariums. “This bipartisan Sea Turtle Rescue Assistance and Rehabilitation Act would help to fill a critical gap in support for these federally protected sea turtles.”

MIL OSI USA News –

March 6, 2025
MIL-OSI: Mount Logan Capital Inc. Schedules Release of 2024 Fiscal Year Results

Source: GlobeNewswire (MIL-OSI)

TORONTO, March 05, 2025 (GLOBE NEWSWIRE) — Mount Logan Capital Inc. (CBOE: MLC) (“Mount Logan” or the “Company”) will release its financial results for the fiscal year ended December 31, 2024 after market close on Thursday, March 13, 2025. The Company will host a conference call on Friday, March 14, 2025, at 9:00 a.m. Eastern Time to discuss these results. Shareholders, prospective shareholders, and analysts are welcome to listen to the conference call. To join the call, please use the dial-in information below. A recording of the conference call will be available on Mount Logan’s website www.mountlogancapital.ca in the Investor Relations section under “Events”.

Canada Dial-in Toll Free: 1-833-950-0062
US Dial-in Toll Free: 1-833-470-1428
International Dial-in:
Access Code: 601424

About Mount Logan Capital Inc.

Mount Logan Capital Inc. is an alternative asset management and insurance solutions company that is focused on public and private debt securities in the North American market and the reinsurance of annuity products, primarily through its wholly owned subsidiaries Mount Logan Management LLC (“ML Management”) and Ability Insurance Company (“Ability”), respectively. Mount Logan also actively sources, evaluates, underwrites, manages, monitors and primarily invests in loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.

ML Management was organized in 2020 as a Delaware limited liability company and is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended. The primary business of ML Management is to provide investment management services to (i) privately offered investment funds exempt from registration under the Investment Company Act of 1940, as amended (the “1940 Act”) advised by ML Management, (ii) a non-diversified closed end management investment company that has elected to be regulated as a business development company, (iii) Ability, and (iv) non-diversified closed-end management investment companies registered under the 1940 Act that operate as interval funds. ML Management also acts as the collateral manager to collateralized loan obligations backed by debt obligations and similar assets.

Ability is a Nebraska domiciled insurer and reinsurer of long-term care policies acquired by Mount Logan in the fourth quarter of fiscal year 2021.

This press release is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this release is not, and under no circumstances is it to be construed as, an offer to sell or an offer to purchase any securities in the Company or in any fund or other investment vehicle. This press release is not intended for U.S. persons. The Company’s shares are not and will not be registered under the U.S. Securities Act of 1933, as amended, and the Company is not and will not be registered under the U.S. Investment Company Act of 1940 (the “1940 Act”). U.S. persons are not permitted to purchase the Company’s shares absent an applicable exemption from registration under each of these Acts. In addition, the number of investors in the United States, or which are U.S. persons or purchasing for the account or benefit of U.S. persons, will be limited to such number as is required to comply with an available exemption from the registration requirements of the 1940 Act.

Contacts:
Mount Logan Capital Inc.

365 Bay Street, Suite 800
Toronto, ON M5H 2V1
info@mountlogancapital.ca

Nikita Klassen
Chief Financial Officer
Nikita.Klassen@mountlogancapital.ca

Scott Chan
Investor Relations
Scott.Chan@mountlogan.com

The MIL Network –

March 6, 2025
MIL-OSI: ThreeD Capital Inc. Announces Private Placement Financing

Source: GlobeNewswire (MIL-OSI)

TORONTO, March 05, 2025 (GLOBE NEWSWIRE) — ThreeD Capital Inc. (“ThreeD” or the “Company”) (CSE:IDK / OTCQX:IDKFF) a Canadian-based venture capital firm focused on opportunistic investments in companies in the junior resources and disruptive technologies sectors, is pleased to announce terms to a proposed private placement financing (the “Private Placement”).

The Private Placement will consist of the sale of up to 7,000,000 units of the Company (“Units”) at a price of $0.10 per Unit, for total gross proceeds raised of $700,000. Each Unit is comprised of one common share and one common share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of $0.20 per common share for a period of 60 months. No commission or finders’ fees are expected paid as part of the Private Placement.

All securities issued and issuable in connection with the Private Placement will be subject to a four-month and a day hold period. Proceeds received from the Private Placement are intended to be used for general working capital purposes and purchase of investments.

In connection with the Private Placement, certain directors of the Company (collectively the “Insiders”), intend to purchase a total of 2,000,000 Units. Insiders’ participation in the Private Placement constitutes a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on the exemption from the valuation and minority shareholder approval requirements under MI 61-101, as the fair market value of the Insiders’ participation in the Private Placement does not exceed 25% of the market capitalization of the Company.

The Private Placement remains subject to the approval of the Canadian Securities Exchange.

About ThreeD Capital Inc.

ThreeD is a publicly-traded Canadian-based venture capital firm focused on opportunistic investments in companies in the junior resources and disruptive technologies sectors. ThreeD’s investment strategy is to invest in multiple private and public companies across a variety of sectors globally. ThreeD seeks to invest in early stage, promising companies where it may be the lead investor and can additionally provide investees with advisory services and access to the Company’s ecosystem.

For further information:

Matthew Davis, CPA

Chief Financial Officer and Corporate Secretary
davis@threedcap.com

Phone: 416-941-8900

The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.

Forward-Looking Statements

This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of Canadian securities laws including, without limitation, statements with respect to the future investments by the Company. All statements other than statements of historical fact are forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. Although the Company believes that the expectations reflected in the forward looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause the Company’s actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

The MIL Network –

March 6, 2025
MIL-OSI: Capstone Infrastructure Corporation Reports Fourth Quarter and Fiscal 2024 Results and Declares a Quarterly Dividend
Source: GlobeNewswire (MIL-OSI)

Toronto, Ontario, March 05, 2025 (GLOBE NEWSWIRE) — Capstone Infrastructure Corporation (TSX: CSE.PR.A) (the “Corporation” or “Capstone”) today announced and filed its financial results for the fourth quarter and fiscal year ended December 31, 2024. The Corporation’s 2024 Management’s Discussion and Analysis (“MD&A”) and audited consolidated financial statements are available at www.capstoneinfrastructure.com and on SEDAR+ at www.sedarplus.ca. Capstone’s MD&A details the “Results of Operations” and provides a “Financial Position Review” for the quarter ended December 31, 2024.

Dividend Declarations

Today, the Board of Directors declared a quarterly dividend on the Corporation’s Cumulative Five-Year Rate Reset Preferred Shares, Series A (the “Preferred Shares”) of $0.2314 per Preferred Share to be paid on or about April 30, 2025 to shareholders of record at the close of business on April 15, 2025. The dividend on the Preferred Shares covers the period from January 31, 2025 to April 29, 2025.

The dividends paid by the Corporation on its Preferred Shares are designated “eligible” dividends for the purposes of the Income Tax Act (Canada). An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.

About Capstone Infrastructure Corporation

Capstone is generating our low-carbon future, driving the energy transition forward through creative thinking, strong partnerships, and a commitment to quality and integrity in how we do business. A developer, owner, and operator of clean and renewable energy projects across North America, Capstone’s portfolio includes approximately 885 MW gross installed capacity across 35 facilities, including wind, solar, hydro, biomass, and natural gas power plants. Please visit www.capstoneinfrastructure.com for more information.

Caution Regarding Forward-Looking Statements

Certain of the statements contained within this document are forward-looking and reflect management’s expectations regarding the future growth, results of operations, performance and business of the Corporation based on information currently available to the Corporation. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. These statements use forward-looking words, such as “anticipate”, “continue”, “could”, “expect”, “may”, “will”, “intend”, “estimate”, “plan”, “believe” or other similar words. These statements are subject to known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and, accordingly, should not be read as guarantees of future performance or results. The forward-looking statements within this document are based on information currently available and what the Corporation currently believes are reasonable assumptions, including the material assumptions set out in the management’s discussion and analysis of the results of operations and the financial condition of the Corporation (“MD&A”) for the year ended December 31, 2024, as updated in subsequently filed MD&A of the Corporation (such documents are available under the Corporation’s SEDAR+ profile at www.sedarplus.ca).

Although the Corporation believes that it has a reasonable basis for the expectations reflected in these forward-looking statements, actual results may differ from those suggested by the forward-looking statements due to inherent risks and uncertainties. For a comprehensive description of these risk factors, please refer to the “Risk Factors” section of the Corporation’s Annual Information Form dated March 21, 2024, as supplemented by disclosure of risk factors contained in any subsequent annual information form, material change reports (except confidential material change reports), business acquisition reports, interim financial statements, interim management’s discussion and analysis and information circulars filed by the Corporation with the securities commissions or similar authorities in Canada (which are available under the Corporation’s SEDAR+ profile at www.sedarplus.ca).

The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements. The forward-looking statements within this document reflect current expectations of the Corporation as at the date of this document and speak only as at the date of this document. Except as may be required by applicable law, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

Attachment
- 2024 Annual Report
The MIL Network –
March 6, 2025
MIL-Evening Report: Australia’s major sports codes are considered not-for-profits – is it time for them to pay up?

Source: The Conversation (Au and NZ) – By Matt Nichol, Lecturer in Law, CQUniversity Australia

Not-for-profit organisations support a range of needs and activities, such as financial disadvantage, health and education.

Governments support these entities through various measures, notably exemption from income tax and other taxes.

Some of Australia’s major professional sports – such as the Australian Football League (AFL) and its clubs, the National Rugby League (NRL) and its clubs and Cricket Australia – are treated as not-for-profits. This means they do not pay income tax.

Not-for-profits and charities

The not-for-profit sector in Australia consists of about 600,000 organisations, 59,000 of which contributed $43 billion to Australia’s economy in 2010 (2010 is the most recent available data).

Some not-for-profit organisations receive special designation as charities and must have a charitable purpose that benefits the public.

A charity is not permitted to distribute profits to its members and must be registered with the Australian Charities and Not-for-profits Commission.

The Australian Taxation Office (ATO) is aware of more than 200,000 entities that receive one or more tax concessions. But only 61,010 are registered charities.

Professinal sports and tax

Within the regulation of not-for-profits exists professional sport.

Sports receive an exemption from income tax if, under section 50-45 of the Income Tax Assessment Act 1997, a club or association encourages or promotes a game or sport.

In addition, the organisation must not conduct business for the purpose of profit for members.

The sports exemption does not differentiate between professional and community (or amateur) sport, as is the case in New Zealand, where charities and taxation law limit a sports charity to an amateur organisation.

Therefore, major Australian professional sports are considered not-for-profits and do not pay income tax.

None of these entities are registered charities.

This raises questions of fairness: these organisations receive revenue that ranges from tens of millions of dollars in the case of clubs to hundreds of millions and even billions for leagues.

When the sports exemption was introduced in the 1950s, it was designed to assist small community clubs. This might include the local golf club that operates on a public course and has operating revenue of $10,000, or the local tennis or football club with similar revenues.

The big business of pro sports

In recent years, the revenues of professional sport have ballooned, primarily due to lucrative broadcasting deals.

For example, in 2023, the AFL had revenues of $1.06 billion and recently announced its 2024 profit of $45.4 million, putting it in Australia’s 30 largest charities by income.

In 2023, the revenues of the AFL’s clubs ranged from $50.4-$105.7 million.

The NRL earned $744.9 million in revenue in 2024.

Also, the AFL and NRL receive a percentage of the income of betting agencies, reportedly $30 million a year for the AFL and $50 million for the NRL.

Half of the NRL clubs are sponsored by betting companies and three NRL stadiums are named after betting agencies.

Some non-Victorian AFL clubs, such as Brisbane and Greater Western Sydney, have gambling sponsorships, but Victorian clubs have signed up to the Victorian Responsible Gambling Foundation’s “Love the Game, Not the Odds” program.

This reliance on sports betting revenues raises issues as to the public benefit of these organisations and whether they should receive tax exemptions.

Read more:
Will the government’s online gambling advertising legislation ever eventuate? Don’t bet on it

The issue of unrelated business income

The issue of unrelated business income (the income a not-for-profit earns from commercial activities not related to its charitable purpose), especially from gambling and poker machines, raises concerns.

North Melbourne was the first Victorian AFL club to sell its poker machines in 2008. In 2016, it was the only club without pokies.

Collingwood sold its machines in 2018 and Hawthorn sold its two poker machine venues in 2022. But Carlton, Essendon, Richmond and St Kilda earned a collective $40 million from poker machines in 2022/2023.

The profits of poker machines by Victorian AFL clubs can be distinguished from sports clubs in New South Wales, where not less than 0.75% of poker machine profits must be distributed to charities under community development and support expenditure.

Poker machine venues are a considerable source of revenue in the NRL. In 2021, rugby league received $9.8 million from regional licensed clubs – $7.28 million to grassroots rugby and $2.52 million to NRL clubs.

Metropolitan venues gave $29.67 million to rugby league – $17.09 million to grassroots rugby and $12.58 million to NRL clubs.

A possible solution

Unrelated business income tax (UBIT) is a tax on the unrelated business income of not-for-profits. Related business income for a not-for-profit is membership fees and services directly related to the members such as restaurants or meals.

However, the major source of unrelated business income for sports are sponsorship and income from gambling companies and poker machines.

A UBIT has a long history in the United States and was proposed by the Gillard government in 2011, only to be postponed in 2013 and eventually abandoned by the Abbott government in 2014.

In the context of professional sport, a UBIT would fairly treat leagues and clubs, which increasingly engage in commercial activities outside their charitable activities, with a public benefit without removing the tax exemption.

For example, a UBIT would tax the profits of clubs with poker machines. It would also tax some of Australia’s most profitable professional sports clubs and leagues for revenue not related to promoting the sports.

It would also help distinguish between “real” not-for-profits and professional sports.

In doing so, it would also create a fair regulatory environment for the operation of for-profit and not-for-profit businesses.

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

– ref. Australia’s major sports codes are considered not-for-profits – is it time for them to pay up? – https://theconversation.com/australias-major-sports-codes-are-considered-not-for-profits-is-it-time-for-them-to-pay-up-250914

MIL OSI Analysis – EveningReport.nz –

March 6, 2025
MIL-OSI USA: Grassley Works to Empower Patients, Boost Transparency Through Improved Data on Inpatient Psychiatric Facilities
US Senate News:
Source: United States Senator for Iowa Chuck Grassley

WASHINGTON – Sen. Chuck Grassley (R-Iowa), a senior member and former chairman of the Senate Finance Committee, is pushing the Centers for Medicare & Medicaid Services (CMS) to provide clear and accessible information on inpatient psychiatric facilities (IPFs) to better support patients and their families. While CMS has supported web-based tools to find and compare providers, the agency lacks a tool for comparing IPFs so that families can make fully-informed decisions.

“This is the kind of information that patients and their families care about…In all states, patients and their families deserve to have access to all IPF inspection/survey reports through a user-accessible website, no matter whether the survey was performed by a state or local survey agency, CMS, or an accrediting organization,” Grassley wrote.

Grassley is an outspoken advocate for improved oversight and transparency at health care facilities that care for vulnerable Americans, such as nursing homes and IPFs. His past work revealed that inspection reports are completely inaccessible to consumers in most states. Grassley has previously called for improving the quality of information available to the public about nursing homes. He’s also pushed for greater transparency of financial relationships between drug makers and providers and of the misuse of psychotropic drugs in nursing homes and foster youth.

“Currently, a search for an IPF on the Care Compare website yields little to no information that would allow a consumer to determine the safety of the facility…There is no information regarding assaults, abuses, suicides, and [unauthorized departures], particularly information regarding facilities that have had repeated and/or potentially preventable events. There is no information regarding Medicare Conditions of Participation violations, citations, penalties, or enforcement actions,” Grassley continued.

Grassley requested the agency provide details on plans to improve public access to IPF data and any possible barriers to CMS’s progress.

Text of the letter to Acting CMS Administrator Carlton follows:

February 28, 2025

VIA ELECTRONIC TRANSMISSION

The Honorable Stephanie Carlton

Acting Administrator

Centers for Medicare & Medicaid Services

Dear Acting Administrator Carlton:

I have long advocated for improved oversight and transparency at health care facilities that care for vulnerable Americans, such as nursing homes and inpatient psychiatric facilities (IPFs).^[1] My oversight has resulted in improvements to the Nursing Home Care Compare website, which has been found to help consumers find their way to higher quality nursing homes and encourage providers to improve quality.^[2] Yet, after more than twenty-five years of the Centers for Medicare & Medicaid Services (CMS) supporting web-based tools for consumers to find and compare providers, the mechanism for comparing IPFs is still lacking. ^[3] Like nursing home residents, psychiatric inpatients are at high risk for abuse, neglect, and harm, and the public deserves to be able to readily access information regarding quality, safety, and regulatory citations at IPFs in all states.^[4]

According to a recent report, it took weeks to compile information regarding safety and regulatory issues at two IPFs because there is no place to readily access that information.^[5] The report noted that, “the Centers for Medicare and Medicaid Services has a robust database of hospital inspections, quality of care and staff ratings. However, when you try to search many inpatient mental health hospitals, every category says information is not available.”^[6] In response to questions about the lack of information, the prior administration stated that “although CMS doesn’t give star ratings for psychiatric hospitals, consumers can still find valuable quality information by using [other] CMS resources.”^[7] However, a review of those resources found them to be insufficient.^[8]

Currently, a search for an IPF on the Care Compare website yields little to no information that would allow a consumer to determine the safety of the facility. After searching for an IPF on Care Compare, the website launches a webpage showing that the facility’s “Overall Star Rating” and “Patient Survey Rating” are not available.^[9] Under a drop down, Care Compare primarily presents process measures, including COVID-19 vaccinations for providers, influenza vaccinations and body mass index screenings for patients.^[10] While there is information regarding potentially harmful mechanical restraints and seclusions, there is no data regarding physical holds and chemical restraints, which surveyors have also found to be used inappropriately and with incorrect technique.^[11] There is no information regarding assaults, abuses, suicides, and elopements (unauthorized departures), particularly information regarding facilities that have had repeated and/or potentially preventable events. ^[12] There is no information regarding Medicare Conditions of Participation violations, citations, penalties, or enforcement actions.^[13] This is the kind of information that patients and their families care about.

While Care Compare provides access to inspection reports for nursing homes, this capability is missing from the hospital section of the website.^[14] In all states, patients and their families deserve to have access to all IPF inspection/survey reports through a user-accessible website, no matter whether the survey was performed by a state or local survey agency, CMS, or an accrediting organization, such as The Joint Commission. While some hospital inspection reports may be accessible through the CMS 2567 Statement of Deficiencies data file, this is not a consumer-facing or readily accessible resource.^[15] Additionally, my past oversight work revealed that inspection reports from accrediting organizations are completely inaccessible to consumers in most states.^[16] Despite my advocacy on the issue, in 2017, CMS reversed course on a proposal to require accrediting organizations to post provider survey reports on their public-facing websites, but noted that, “CMS is committed to ensuring that patients have the ability to review the findings used to determine that a facility meets the health and safety standards required for Medicare participation.”^[17] Seven years later, it still doesn’t appear that patients, or even CMS, have the ability to readily conduct that review.^[18] There also still appears to be incongruity between safety violations and accreditation.^[19]

For Congress to understand CMS’s current actions to increase the relevance of information regarding IPFs on the Care Compare website as well as any barriers impeding CMS’s progress, please provide answers to the following questions no later than March 14, 2025.
1. Does CMS plan to take steps to improve how information regarding IPF quality, safety, and regulatory issues are displayed on Care Compare? If not, why not? If so, please describe.
1. Are there any barriers to displaying information regarding patient harm, including abuses, assaults, suicides, and elopements with harm, for IPFs on Care Compare?
1. Are there any barriers to displaying citations, safety violations, licensure suspensions or limitations, immediate jeopardy findings, Medicare program terminations, monetary penalties, enforcement actions, or any other remediation actions for IPFs on Care Compare?
1. Are there any barriers to integrating the CMS 2567 Statement of Deficiencies data file in a user-accessible way on Care Compare?
1. What surveys are included in the CMS 2567 Statement of Deficiencies data file and which surveys are excluded? For example, does the data file contain surveys conducted by all state and local survey agencies? Are there any circumstances in which the file would contain surveys conducted by accrediting organizations?
1. Why are the findings from the following surveys/inspections not included in the 2567 Statement of Deficiencies data file posted on the CMS Hospital website?^[20] What are the barriers to making the following reports accessible on Care Compare?
1. How does CMS assess the usability and relevance of the information regarding IPFs on the Care Compare website from the perspective of patients and their families?
1. How does CMS validate the data currently contained in Care Compare for IPFs? For example, what was CMS’s process for validating Harborview Medical Center’s 2022 restraint rate of 22.44 hours per 1000 patient care hours, when the national average was 0.32, and the 2022 seclusion rate of 81.73, when the national average was 0.36?^[27]
1. How does the data currently contained in Care Compare for IPFs inform the survey/inspection process? For example, have surveyors examined the restraint and seclusion practices at Harborview Medical Center?^[28]
1. How does CMS “ensur[e] that patients have the ability to review the findings used to determine that a facility meets the health and safety standards required for Medicare participation,” including when those findings come from accrediting organizations?^[29]
1. What role does CMS play in the accreditation process for IPFs? How do the deficiencies listed in the CMS 2567 Statement of Deficiencies data file factor into accreditation?
1. How does CMS partner with the Substance Abuse and Mental Health Services Administration (SAMHSA) on the Inpatient Psychiatric Facility Quality Reporting (IPFQR) program and ensure consistency between the IPFs listed on the Care Compare website and the IPFs listed on the FindTreatment.gov website?^[30] How does CMS use data collected through the National Substance Use and Mental Health Services Survey (N-SUMHSS)?^[31]
Thank you for your prompt review and response. If you have any questions, please contact my Judiciary Committee staff at (202) 224-5225.

Sincerely,

Charles E. Grassley

Chairman

Committee on the Judiciary

[1] Press Release, Warren, Grassley Lead the Call for Greater Transparency in Nursing Home Ownership, Off. of Senator Charles E. Grassley (May 19, 2023), https://www.grassley.senate.gov/news/news-releases/warren-grassley-lead-the-call-for-greater-transparency-in-nursing-home-ownership; Press Release, After Year-Long Push for Transparency In Nursing Homes, Grassley Urges Improvements to CMS’s Care Compare, Off. of Senator Charles E. Grassley (June 21, 2023), https://www.grassley.senate.gov/news/news-releases/after-years-long-push-for-transparency-in-nursing-homes-grassley-urges-improvements-to-cmss-care-compare; Press Release, Grassley Welcomes CMS Action Following His Decades-Long Push to Increase Nursing Home Transparency, Off. of Senator Charles E. Grassley (Nov. 15, 2023), https://www.grassley.senate.gov/news/news-releases/grassley-welcomes-cms-action-following-his-decades-long-push-to-increase-nursing-home-transparency; Press Release, Grassley: Alarming Pattern of Conduct Reported at UHS Facilities, Off. of Senator Charles E. Grassley (Dec. 18, 2017), https://www.grassley.senate.gov/news/news-releases/grassley-alarming-pattern-conduct-reported-uhs-facilities.

[2] R. Tamara Konetzka, Kevin Yan, and Rachel Werner, Two Decades of Nursing Home Compare: What Have We Learned?, Medical Care Research and Review (June 13, 2020), https://journals.sagepub.com/doi/10.1177/1077558720931652?url_ver=Z39.88-2003&rfr_id=ori:rid:crossref.org&rfr_dat=cr_pub%20%200pubmed.

[3] Report, Nursing Homes: CMS Offers Useful Information on Website and Is Considering Additional Steps to Assess Underlying Data, Government Accountability Office, GAO-23-105312, (May 2023), https://www.gao.gov/assets/gao-23-105312.pdf.

[4] Morgan Shields, Maureen Stewart, and Kathleen Delaney, Patient Safety in Inpatient Psychiatry: A Remaining Frontier for Health Policy, Health Affairs (Nov. 18, 2018), https://www.healthaffairs.org/doi/10.1377/hlthaff.2018.0718; Hospital Surveys with 2567 Statement of Deficiencies through 2024 Q3 data file, Hospital webpage, Ctrs. for Medicare & Medicaid Services (accessed Feb. 3, 2025), https://www.cms.gov/files/document/hospital-surveys-2567-statement-deficiencies-through-2024-q3.xlsx, (Surveyors described findings of abuse, neglect, or harm during numerous surveys listed in the 2567 Statement of Deficiencies data file, such as 6G7O11/October 16, 2023, 52U911/March 4, 2024, VN4211/June 13, 2024, QD1O11/January 6, 2021, ZX8G11/April 8, 2022, YMU211/June 7, 2021, SSIO11/February 23, 2023, 00IG11/June 10, 2022, P33211/April 10, 2024, RKRS11/October 5, 2022, and CYVY11/September 23, 2022).

[5] Randall Kerr, WRAL Investigates why the truth about mental health hospitals remains hidden, WRAL News (May 7, 2024), https://www.wral.com/story/wral-investigates-why-the-truth-about-mental-health-hospitals-remains-hidden/21418636/.

[6] Id.

[7] Id.

[8] Id, (As described by WRAL, “those resources included with the statement were a spreadsheet you could download, but can’t even decipher considering all of the categories, acronyms and codes that don’t necessarily reflect the actual quality of care. The other resource was the same online database that again has no information about the hospital’s performance.”).

[9] Care Compare entry for Aurora Vista Del Mar, Care Compare, Medicare.gov (accessed Feb. 3, 2025), available at https://www.medicare.gov/care-compare/details/hospital/054077?id=a96bf388-2fd6-460f-bca4-d70b1eeb862d&city=Ventura&state=CA&zipcode=.

[10] Psychiatric unit services drop-down for Aurora Vista Del Mar, Care Compare, Medicare.gov (accessed Feb. 3, 2025), https://www.medicare.gov/care-compare/details/hospital/054077?id=a96bf388-2fd6-460f-bca4-d70b1eeb862d&city=Ventura&state=CA&zipcode=&measure=hospital-psychiatric-surveys.

[11] Surveys ZF7G11/June 4, 2024 and D0SD11/July 11, 2024, 2567 data file, supra note 4, (For example, during an inspection of Destiny Springs Healthcare in June 2024, surveyors found that “the Hospital failed to ensure staff did not utilize a chemical restraint as a means of coercion, discipline, convenience or retaliation for one (1) patient.” One month later, surveyors found that “the hospital failed to ensure restraints were conducted safely, resulting in Patient #1 suffering a fractured humerus.”).

[12] Ross Jones, Congressman, local leaders want answers over Detroit hospital patient abuse, suicide, ABC WXYZ Detroit (Oct. 10, 2024), https://www.wxyz.com/news/local-news/investigations/congressman-local-leaders-want-answers-over-detroit-hospital-patient-abuse-suicide; Surveys 366M11/June 6, 2024 and 31M611/July 3, 2024, 2567 data file, supra note 4, (In 2024, at Detroit Receiving Hospital, in the span of 73 days, two different female patients were sexually assaulted by two different male patients while sedated and confined to four-point restraints, which is a time when patients should be continuously monitored by staff, and another patient died by suicide in her room in the setting of missed safety checks.); Maddie Kirth, ‘Were they not trained?’ Family of missing Hammond Alzheimer’s patient demands hospital reform, Fox 8 (June 23, 2023), https://www.fox8live.com/2023/06/24/were-they-not-trained-family-missing-hammond-alzheimers-patient-demands-hospital-reform/; Survey 1UQQ11/June 21, 2023, 2567 data file, supra note 4, (In 2023, a patient with severe dementia was able to walk out of a locked unit at Oceans Behavioral Hospital of Hammond in Louisiana and was found dead in a field one day later. It took nearly an hour for staff to realize that the patient was gone and another ninety minutes to call 911.).

[13] Heather Catallo, ‘He didn’t deserve this.’ Patient dies after being restrained in psych ward, family speaks out, WXYZ (Dec. 19, 2024), https://www.wxyz.com/news/local-news/investigations/he-didnt-deserve-this-patient-dies-after-being-restrained-in-psych-ward-family-speaks-out; Medicare notice to the public regarding termination of Pontiac General Hospital effective November 24, 2024 (Nov. 8, 2024), https://www.cms.gov/files/document/michigan-pontiac-general-hospital-11/08/2024.pdf, (There is no information regarding Michigan’s Pontiac General Hospital’s termination from the Medicare program on November 24, 2024, after a patient died in the setting of improper restraint technique and a delayed and disorganized resuscitation effort.); Surveys R5UY11/March 22, 2024, 24E111/April 3, 2024, M4B411/June 6, 2024, QORQ11/July 31, 2024, and NB8H11/August 15, 2024, 2567 data file, supra note 4 (There is no information regarding the 30 deficiencies, including three condition-level deficiencies and two immediate jeopardy findings, listed in the CMS 2567 Statement of Deficiencies data file for Oceans Behavioral Hospital of Hammond in Louisiana during the first three quarters of 2024.); Alex Lubben, State gives troubled Mandeville psychiatric hospital one last chance to stay open, NOLA (Apr. 19, 2024), https://www.nola.com/news/northshore/what-is-the-future-of-northlake-behavioral-health-system/article_e5218958-f90a-11ee-ab91-072e26520f37.html, (There is no information regarding Northlake Behavioral Health System’s reported agreement with the Louisiana Department of Health to “pay an $18,000 fine, hire a consultant, cover the cost of all future LDH inspections, and suffer additional penalties for any repeat deficiencies found in the course of those inspections” in order to maintain a provisional license.).

[14] GAO-23-105312, supra note 3.

[15] 2567 data file, supra note 4.

[16] Press Release, Grassley Presses Agency On Statutory Changes Needed to Make Hospital Inspection Reports Public, Off. of Senator Charles E. Grassley (Sep. 20, 2017), https://www.grassley.senate.gov/news/news-releases/grassley-presses-agency-statutory-changes-needed-make-hospital-inspection-reports.

[17] Charles Ornstein, Secret Hospital Inspections May Become Public At Last, ProPublica (April 18, 2017), https://www.propublica.org/article/secret-hospital-inspections-may-become-public-at-last; Fact Sheet, Fiscal Year (FY) 2018 Medicare Hospital Inpatient Prospective Payment System (IPPS) and Long Term Acute Care Hospital (LTCH) Prospective Payment System Final Rule(CMS-1677-F), Centers for Medicare & Medicaid Services (Aug. 2, 2017), https://www.cms.gov/newsroom/fact-sheets/fiscal-year-fy-2018-medicare-hospital-inpatient-prospective-payment-system-ipps-and-long-term-acute-0; Charles Ornstein, Accreditors Can Keep Their Hospital Inspection Reports Secret, Feds Decide, ProPublica (Aug. 3, 2017), https://www.propublica.org/article/accreditors-can-keep-their-hospital-inspection-reports-secret-feds-decide; Letter from Senator Charles E. Grassley to Administrator Seema Verma, Centers for Medicare & Medicaid Services (Sep. 18, 2017), https://www.grassley.senate.gov/imo/media/doc/2017-09-18%20CEG%20to%20CMS%20(Joint%20Commission).pdf.

[18] Centers for Medicare & Medicaid Services, Proposed Rule, Medicare Program; Strengthening Oversight of Accrediting Organizations (AOs) and Preventing AO Conflict of Interest, and Related Provisions, Section G, Federal Register (Feb. 15, 2024), https://www.federalregister.gov/documents/2024/02/15/2024-02137/medicare-program-strengthening-oversight-of-accrediting-organizations-aos-and-preventing-ao-conflict#footnote-4-p12000.

[19] Press Release, Grassley, Stark hold officials accountable for improper approval of specialty hospital in West Texas, U.S. Comm. on Finance (Mar. 6, 2007), https://www.finance.senate.gov/ranking-members-news/grassley-stark-hold-officials-accountable-for-improper-approval-of-specialty-hospital-in-west-texas; Letter from Senator Charles E. Grassley to Mr. Mark Chassin, The Joint Commission (Apr. 14, 2017), https://www.grassley.senate.gov/imo/media/doc/2017-04-14%20CEG%20to%20Joint%20Commission%20(UHS).pdf; Stephanie Armour, Hospital Watchdog Gives Seal of Approval, Even After Problems Emerge, The Wall Street Journal (Sep. 8, 2017), https://www.wsj.com/articles/watchdog-awards-hospitals-seal-of-approval-even-after-problems-emerge-1504889146; Surveys 2DCB11/March 5, 2024, S6IC11/June 13, 2024, WKNI11/July 12, 2024, 7VB511/April 11, 2024, DICQ11/July 12, 2024, ZF7G11/June 4, 2024, and D0SD11/July 11, 2024, 2567 data file, supra note 4; Search for Mesa Springs, Crestwyn Behavioral Health, Del Amo Hospital, and Destiny Springs Healthcare on The Joint Commission’s “Find Accredited Organizations” webpage, The Joint Commission (accessed Feb. 11, 2025), https://www.jointcommission.org/who-we-are/who-we-work-with/find-accredited-organizations/#q=mesa%20springs&numberOfResults=25, https://www.jointcommission.org/who-we-are/who-we-work-with/find-accredited-organizations/#q=Crestwyn%20Behavioral%20Health%20&numberOfResults=25, https://www.jointcommission.org/who-we-are/who-we-work-with/find-accredited-organizations/#q=Del%20Amo%20Hospital&numberOfResults=25, https://www.jointcommission.org/who-we-are/who-we-work-with/find-accredited-organizations/#q=Destiny%20Springs%20Healthcare&numberOfResults=25, (For example, Mesa Springs in Texas is currently shown as having a gold seal on The Joint Commission website, while the hospital had 14 condition-level deficiencies across three surveys listed in the CMS 2567 Statement of Deficiencies data file for the first three quarters of 2024. Crestwyn Behavioral Health in Tennessee with four condition-level citations in the first three quarters of 2024, Del Amo Hospital in California with three condition-level citations, and Destiny Springs Healthcare in Arizona with three condition-level citations are also currently shown as having Joint Commission accreditation.).

[20] 2567 data file, supra note 4.

[21] Joe Ulery, Whistleblower exposes dangers at Indiana facility, Public News Service (Dec. 18, 2024), https://www.publicnewsservice.org/2024-12-18/mental-health/whistleblower-exposes-dangers-at-indiana-facility/a94122-1.

[22] Letter from the Ctrs. for Medicare & Medicaid to Universal Health Services regarding notification of possible termination from the Medicare program (Mar. 27, 2023), https://www.northcarolinahealthnews.org/wp-content/uploads/2023/05/Brynn-Marr-Hospital-CCN-344016-90-day-3-27-2023.signed-002-3.pdf; Taylor Knopf, NC psych hospital failed to provide ‘safe and therapeutic’ environment, feds say, NC Health News (May 10, 2023), https://www.northcarolinahealthnews.org/2023/05/10/nc-psych-hospital-failed-to-provide-safe-and-therapeutic-environment-feds-say/.

[23] Peter Herman, Psychiatric health aide in D.C. charged with sexual abuse of a patient, The Washington Post (Dec. 21, 2023), available at https://www.washingtonpost.com/dc-md-va/2023/12/21/sexual-assault-dc-psychiatric/.

[24] Heidi Kirk, WRAL Investigates: Holly Hill violated standards of care that could’ve prevented patient escapes, inspection says, WRAL News (July 15, 2024), available at https://www.wral.com/story/wral-investigates-holly-hill-violated-standards-of-care-that-could-ve-prevented-patient-escapes-inspection-says/21526230/.

[25] Nick Welsh, Santa Barbara County’s Psych-Bed Pinch Tightens as Key Mental-Health Safety Valve Shuts Down, Santa Barbara Independent (Nov. 1, 2023), https://www.independent.com/2023/11/01/santa-barbara-countys-psych-bed-pinch-tightens-as-key-mental-health-safety-valve-shuts-down/.

[26] Adam Walser, Florida grandmother outraged after 13-year-old dies by suicide inside mental hospital, ABC Action News (July 11, 2023), https://www.abcactionnews.com/news/local-news/i-team-investigates/lutz-grandmother-outraged-after-13-year-old-commits-suicide-inside-mental-hospital.

[27] “Inpatient psychiatric facility quality measure data – by facility” data set, Ctrs. for Medicare & Medicaid Services (Oct. 30, 2024), https://data.cms.gov/provider-data/dataset/q9vs-r7wp; “Inpatient psychiatric facility quality measure data – national” data set, Ctrs. for Medicare & Medicaid Services (Oct. 30, 2024), https://data.cms.gov/provider-data/dataset/s5xg-sys6.

[28] Id.

[29] Fact sheet, supra note 17.

[30] Mental health and substance use treatment locator website, Substance Abuse and Mental Health Services Admin. (accessed Feb. 11, 2025), https://findtreatment.gov/locator.

[31] National Substance Use and Mental Health Services Survey, Substance Abuse and Mental Health Services Admin. (accessed Feb. 11, 2025), https://info.nsumhss.samhsa.gov/.

-30-
MIL OSI USA News –
March 6, 2025
MIL-OSI United Kingdom: Security and growth at the centre of the UK-Ireland Summit
Source: United Kingdom – Executive Government & Departments

Press release

Security and growth at the centre of the UK-Ireland Summit

National security, growth and energy security will be top of the agenda at the first annual UK-Ireland Summit tomorrow as the Prime Minister underscores the importance of delivering for the people of the UK.
Ensuring peace, prosperity and security in Europe and around the world will be at the heart of discussions with Taoiseach Micheál Martin at the UK-Ireland Summit

Comes as new UK-Irish cooperation cuts red tape for offshore energy developers in the Irish and Celtic Seas – delivering greater economic security for the hardworking British people

New Irish investments, worth £185.5 million, set to see thousands of jobs created across the country

National security, growth and energy security will be top of the agenda at the first annual UK-Ireland Summit tomorrow as the Prime Minister underscores the importance of delivering for the people of the UK.

The meeting comes after the Prime Minister hosted 18 leaders in London on Sunday where he reiterated the UK’s unwavering support for Ukraine and European security. As part of that commitment, tomorrow the two leaders will announce closer collaboration on energy security to harness the full potential of the Irish and Celtic seas.

Through a new data sharing arrangement, the UK and Irish governments will lay the groundwork for commercial developers to increase offshore energy by cutting red tape and minimising the burden of maritime and environmental consent processes for developers.

This will speed up developments and mobilise investments in offshore energy infrastructure.

This new collaboration will increase renewable energy production and enhance the UK’s energy security, delivering on this Government’s Plan for Change.

Prime Minister Keir Starmer said:

Energy security and national security are two sides of the same coin, that is why we must work with our allies and partners across the world to protect the hardworking British people from external factors driving up household bills.

As our closest neighbour our partnership with Ireland is testament to the importance of working with international partners to deliver for people at home.

Now more than ever we must work with likeminded partners in the pursuit of global peace, prosperity and security.

Tomorrow, the Prime Minister and Taoiseach will host a joint business roundtable with industry leaders and businesses across tech, finance, clean energy, manufacturing and construction from the UK and Ireland. The discussion will focus on potential opportunities for growth and investment, and how the UK and Ireland can work together to build an even more resilient and successful trading relationship. They will also discuss how both countries can work closer together on renewable energy, tech, AI and security.

As part of tomorrow’s summit, the UK has welcomed new Irish investments worth £185.5 million creating 2,540 jobs across the country from Version 1, Applegreen, Omniplex, Galvia, Buymedia, Uniquely, Walsh Mushrooms and PM Group. From Evesham to Edinburgh, new investments show confidence in the UK as an attractive place to invest and delivers on the government’s Plan for Change to kickstart economic growth.

The UK will also announce that W.H. Davis, part of Buckland Group, has won a £100 million contract with Irish Rail supporting their investment in railway infrastructure in Ireland.

Ireland is the UK’s 6th largest trading partner with the trading relationship worth nearly £80 billion last year across sectors including renewable energy, life sciences, creative industries and tech.

Tomorrow’s events follow a cultural reception hosted by the Prime Minister and Taoiseach this evening, with representatives from both the UK and Ireland showcasing the world-class talent on both sides of the Irish sea.

After the summit, the Prime Minister will travel to a defence company to meet employees and apprentices working in the national security sector.

Visit comes after the Prime Minister’s landmark announcement made last week on increasing defence spending to 2.5% of GDP by April 2027.

In 2023-24, defence spending supported over 430,000 jobs across the UK, the equivalent to one in every 60, with 16,900 in the North West.

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Published 5 March 2025
MIL OSI United Kingdom –
March 6, 2025
MIL-OSI Russia: Government meeting (2025, No. 7)

Translartion. Region: Russians Fedetion –

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

1. On the draft federal law “On ratification of the Agreement between the Government of the Russian Federation, the Central Bank of the Russian Federation and the Government of the Republic of Belarus, the National Bank of the Republic of Belarus on cooperation and exchange of information, including confidential information, in the field of supervision and (or) control over the financial market”

The bill aims to ratify the agreement signed in Moscow on August 6, 2024.

2. On amendments to certain acts of the Government of the Russian Federation (in terms of amendments to the Regulation on the Government Commission for the Development of Housing Construction and the Assessment of the Efficiency of the Use of Land Plots Owned by the Russian Federation)

The draft act is aimed at granting the commission the authority to make decisions on the transfer of federal property to another level of public ownership.

On Amendments to Certain Acts of the Government of the Russian Federation (in terms of amendments to the Regulation on the Government Commission for the Development of Housing Construction and the Assessment of the Efficiency of the Use of Land Plots Owned by the Russian Federation)

The draft act is aimed at granting the commission the authority to make decisions on the transfer of federal property to another level of public ownership.

3. On the draft federal law “On Amendments to Certain Legislative Acts of the Russian Federation” (in terms of improving the submission of reports by non-profit organizations)

The bill is aimed at simplifying the procedure for submitting reports by non-profit organizations, including charitable, volunteer and socially oriented NPOs.

4. On Amendments to the Resolution of the Government of the Russian Federation of July 28, 2018 No. 885 (in terms of amending the Regulation on the Federal Service for Supervision in Education and Science)

The draft resolution is aimed at empowering Rosobrnadzor to determine the minimum number of points confirming successful completion of testing in a state or municipal general education organization by foreign citizens and stateless persons on knowledge of the Russian language, sufficient for mastering educational programs of primary general, basic general and secondary general education.

Moscow, March 5, 2025

The content of the press releases of the Department of Press Service and References is a presentation of materials submitted by federal executive bodies for discussion at a meeting of the Government of the Russian Federation.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

March 6, 2025
MIL-OSI New Zealand: Health – Vape companies hunt loopholes ahead of law change

Source: Asthma and Respiratory Foundation

Heavy restrictions on the sale of vapes will soon be in place, but some vape companies are already searching for loopholes in the law.

The Asthma and Respiratory Foundation is calling out vape retailers for their blatant attempts to bypass the new laws aimed at protecting our tamariki.

Between March and June, a flurry of new laws will take effect, including the ban of disposable vapes, a ban on displaying products (in store and online), and a ban on discounts and giveaways.

The Foundation, however, is aware of some vape retailers exploring website redesigns and new customer engagement strategies to continue marketing their products despite the law changes.

Foundation Chief Executive Ms Letitia Harding says any attempt to undermine the regulations will only reinforce the need for stronger enforcement.

“Vape companies have been given clear rules to follow, and yet some are already looking for loopholes.”

While the Foundation supported the new laws, it urged the Government to invest in enforcement so they have the intended impact of reducing youth access, limiting exposure, and preventing nicotine addiction in a new generation, Ms Harding says.

“We have been calling for tighter restrictions since 2017, so it is good to finally see many of our recommendations come into law, including banning in-front-of-store window advertising and product display by retailers.”

“However, the Government can’t drop the ball and let retailers dodge the new laws.”

In addition to the new laws, the Foundation wants the Government to halt the establishment of further Specialist Vape Retailers (SVRs), limit the nicotine content of all vape products to 20 mg/mL and re-look at the prescription model.

MIL OSI New Zealand News –

March 6, 2025
MIL-OSI New Zealand: Energy – Perfect paradox: Urgent focus on affordability and infrastructure in global energy report – BusinessNZ

Source: BusinessNZ

Global data released from the World Energy Council today highlights urgent concern for affordable energy and the importance of future energy infrastructure.

The BusinessNZ Energy Council (BEC) is New Zealand’s representative to the World Energy Council. Executive Director Tina Schirr says more than 3,000 energy leaders from more than 100 countries participated in the World Energy Issues Monitor 2025, a survey providing critical insights into the challenges facing the energy sector at home and abroad.

“New Zealand is not alone in its desire for more affordable and reliable energy. This year’s Monitor shows this is the number one growing concern for businesses and households around the world.

“The report also identifies areas which require urgent action including energy storage, grid upgrades, and climate mitigation. These infrastructure and climate issues are crucial for energy security and economic growth.

“While New Zealand shares many global concerns – including the need for economic growth alongside energy transition, key differences emerge in areas like supply chain disruptions and the development of future fuels.

“The World Energy Issues Monitor is a valuable tool for understanding the key uncertainties and priorities shaping energy strategies worldwide. BEC looks forward to the release of regional data in May, which will offer more detailed insights into New Zealand’s current situation.”

The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.

MIL OSI New Zealand News –

March 6, 2025
MIL-OSI New Zealand: Consumer NZ calls for an end to the surcharge “swindle”

Source: Consumer NZ

Consumer NZ is calling on the Commerce Commission to consider a ban on card payment surcharges due to growing concerns about excessive and hidden fees.

While the Commission is considering lowering interchange fees – to reduce merchants’ costs for accepting card payments, – Consumer says there’s no guarantee this will reduce card surcharges for consumers, and that should be the priority.

Currently, there are no regulations in New Zealand on surcharges, only guidelines. The guidelines recommend surcharges be transparent, avoidable and not excessive. Unfortunately, these recommendations are often ignored, to the detriment of shoppers.

“The surcharging situation in New Zealand is a mess. We have received hundreds of complaints showing merchants are not complying with the guidelines. It’s time to introduce new surcharge rules,” says Consumer acting head of research and advocacy, Jessica Walker.

Although the Commission has said it will consider some form of surcharge regulation, an outright ban doesn’t appear to be one of the options being considered. Yet Consumer thinks a ban would be a simple and effective solution, with the benefits outweighing the risks.

“Less thought would be required about what card to use, whether to swipe, insert or tap; what the surcharge amount is and whether there’s a way to avoid the surcharge.

“You could just leave the house with your phone in your pocket, knowing you wouldn’t have to pay a hefty surcharge for the convenience of not carrying any cards. A ban makes things simpler for merchants too,” Walker says.

Issues with surcharging

Complaints to Consumer about surcharges include:

Excessive fees: Merchants are charging well over what it costs them to accept the card payment. In the worst cases, card payment surcharges have exceeded 20%. The Commission estimates New Zealanders are paying up to $65 million per year in excessive surcharges, with Mastercard estimating this figure to be $90 million.

Lack of transparency: Some merchants don’t mention the fact they add surcharges. Others have terminals that simply state “surcharge applies”, without specifying the amount.

Fixed fees: Some merchants charge flat fees rather than percentages, which don’t always reflect their actual costs.

Hidden fees: Additional costs, like service fees, are often bundled with surcharges, confusing consumers.

To address these issues, Consumer is calling on the Commission to consider a ban on surcharges.

The benefits of a surcharge ban

Transparency: A surcharge ban would eliminate unclear and hidden fees, allowing consumers to more easily compare prices.

Consistency: Consumers would have a consistent experience across merchants, with no nasty surprises at the counter.

Simplicity: A ban would be easy for consumers and businesses to understand and easy for the Commission to enforce.

Fairer: A ban would incentivise merchants to search for better card deals that allow them to reduce their payment costs. While surcharging is allowed, there’s no incentive for merchants to do this. Lower interchange fees also mean businesses could more easily absorb payment costs.

Encourages competition: Transparent pricing would allow consumers to shop around more easily, fostering competition.

Alignment with other jurisdictions: The United Kingdom and European Union have banned surcharges, proving such a ban can work.

The case for banning surcharges in New Zealand is strong.

Consumer lodged a submission with the Commission this week supporting further interchange regulation and calling for the Commission to consider a ban on surcharges.

We urge anyone else who is fed up with surcharges to let the Commission know by 5pm on 18 March 2025 using this simple online form: https://consumernz.cmail20.com/t/i-l-fdykily-ijjdkdttjk-j/

MIL OSI New Zealand News –

March 6, 2025
MIL-OSI New Zealand: Consumer NZ calls for an end to the surcharge “swindle”

Source: Consumer NZ

Consumer NZ is calling on the Commerce Commission to consider a ban on card payment surcharges due to growing concerns about excessive and hidden fees.

While the Commission is considering lowering interchange fees – to reduce merchants’ costs for accepting card payments, – Consumer says there’s no guarantee this will reduce card surcharges for consumers, and that should be the priority.

Currently, there are no regulations in New Zealand on surcharges, only guidelines. The guidelines recommend surcharges be transparent, avoidable and not excessive. Unfortunately, these recommendations are often ignored, to the detriment of shoppers.

“The surcharging situation in New Zealand is a mess. We have received hundreds of complaints showing merchants are not complying with the guidelines. It’s time to introduce new surcharge rules,” says Consumer acting head of research and advocacy, Jessica Walker.

Although the Commission has said it will consider some form of surcharge regulation, an outright ban doesn’t appear to be one of the options being considered. Yet Consumer thinks a ban would be a simple and effective solution, with the benefits outweighing the risks.

“Less thought would be required about what card to use, whether to swipe, insert or tap; what the surcharge amount is and whether there’s a way to avoid the surcharge.

“You could just leave the house with your phone in your pocket, knowing you wouldn’t have to pay a hefty surcharge for the convenience of not carrying any cards. A ban makes things simpler for merchants too,” Walker says.

Issues with surcharging

Complaints to Consumer about surcharges include:

Excessive fees: Merchants are charging well over what it costs them to accept the card payment. In the worst cases, card payment surcharges have exceeded 20%. The Commission estimates New Zealanders are paying up to $65 million per year in excessive surcharges, with Mastercard estimating this figure to be $90 million.

Lack of transparency: Some merchants don’t mention the fact they add surcharges. Others have terminals that simply state “surcharge applies”, without specifying the amount.

Fixed fees: Some merchants charge flat fees rather than percentages, which don’t always reflect their actual costs.

Hidden fees: Additional costs, like service fees, are often bundled with surcharges, confusing consumers.

To address these issues, Consumer is calling on the Commission to consider a ban on surcharges.

The benefits of a surcharge ban

Transparency: A surcharge ban would eliminate unclear and hidden fees, allowing consumers to more easily compare prices.

Consistency: Consumers would have a consistent experience across merchants, with no nasty surprises at the counter.

Simplicity: A ban would be easy for consumers and businesses to understand and easy for the Commission to enforce.

Fairer: A ban would incentivise merchants to search for better card deals that allow them to reduce their payment costs. While surcharging is allowed, there’s no incentive for merchants to do this. Lower interchange fees also mean businesses could more easily absorb payment costs.

Encourages competition: Transparent pricing would allow consumers to shop around more easily, fostering competition.

Alignment with other jurisdictions: The United Kingdom and European Union have banned surcharges, proving such a ban can work.

The case for banning surcharges in New Zealand is strong.

Consumer lodged a submission with the Commission this week supporting further interchange regulation and calling for the Commission to consider a ban on surcharges.

We urge anyone else who is fed up with surcharges to let the Commission know by 5pm on 18 March 2025 using this simple online form: https://consumernz.cmail20.com/t/i-l-fdykily-ijjdkdttjk-j/

MIL OSI New Zealand News –

March 6, 2025
MIL-OSI New Zealand: Banking Sector – ASB further boosts rural commitment with new Head of Food & Fibre

Source: ASB

ASB has appointed Kristen Ashby as its new Head of Food & Fibre, a newly established role within its Rural Corporate Banking team.

Kristen joins ASB from Fonterra where she was most recently Director of Capital Strategy. Starting her career as a Chartered Accountant, Kristen has worked across a variety of roles at organisations including Fonterra, Turners & Growers and Goodman Fielder.

Born and bred in Waikato, Kristen’s rural upbringing and breadth of experience mean she brings a unique perspective to this role. She is passionate about helping Kiwi businesses to reach their goals, as well as future proofing for tomorrow.

Kristen says, “I’m excited to be joining the team at such a crucial time. I see so much opportunity in the Food & Fibre sector and feel privileged to help build on the work already being done at ASB.

As a bank we can make a real difference for our rural communities, uplift regional economies and put New Zealand-grown products on the map globally.

I’m looking forward to getting on the road soon to meet our customers and broader industry participants to tackle these ambitious goals.”

ASB General Manager Rural Banking Aidan Gent says “Kristen is a passionate leader with a proven track record of success, genuinely interested in making a difference for our customers.

We are so excited to have her on board in this pivotal role as we bring our full-service banking proposition to the Food & Fibre sector – a critical component of our economy.

With Food & Fibre making up more than 80% of our global exports, there is significant opportunity in this sector. This is not just farmers – it is the innovators looking at new foods & fibres and future uses of land, processors, logistics companies moving goods, all the way through to the electrician in Gore fixing a woolshed.

Food & Fibre represents an opportunity to truly accelerate the social, environmental and financial progress of New Zealanders.”

Kristen Ashby started in her new role in February 2025.

MIL OSI New Zealand News –

March 6, 2025
MIL-OSI New Zealand: Asia New Zealand – Top Asia experts gather in Auckland to discuss New Zealand’s progress in and with Asia
Source: Asia New Zealand Foundation

Top Asia experts from across New Zealand and the Asia region will meet in Auckland from 9 to 11 March to share their perspectives on New Zealand’s Asia relations.

The experts are part of the Asia New Zealand Foundation’s Honorary Advisers Network and include current and former ministers, academics, businesspeople and other sector leaders.

As a network, they help to guide the Asia New Zealand Foundation’s work and support its mission of being one of New Zealand’s leading non-profit, non-partisan providers of Asia insights and experiences that help New Zealanders to excel in Asia.

During the two-day meeting, members of the network will meet with Prime Minister Christopher Luxon, Foreign Minister Winston Peters (who is also chair of the network) and a range of New Zealand’s top public and private sector leaders.

Attendees from Asia will include key figures such as Dr Ng Eng Hen, Singapore’s Minister for Defence; Ms Heekyung Jo Min, Executive Vice President of major Asian media and entertainment company CJ Cheiljedang; trade expert and former ASEAN Secretariat head Dr Rebecca Fatima Sta Maria; and Professor Thitinan Pongsudhirak, Thailand’s leading international relations authority.

“The advisers are vital advocates for New Zealand in Asia, bringing deep expertise and longstanding ties. As New Zealand’s relationships with Asia evolve and as the Foundation’s work develops across the region, their contributions become even more critical,” says Foundation Chief Executive, Suz Jessep.

“At a time of profound change in our region, this in-person meeting provides an opportunity to really unpick how other small and medium sized countries are responding to challenges and opportunities in Asia and to hear free and frank assessments from trusted advisers who know us well and who want to see New Zealand succeed.” Jessep noted.

The advisers have supported New Zealand’s connections with Asia in several ways. In addition to their honorary role, they have also supported educational scholarships, paid internships for New Zealand students in Asian companies and facilitated and participated in Track II (informal diplomacy) dialogues between New Zealand and Asian experts.

List of Honorary Advisers attending:

Asia Honorary Advisers

Ms Adaljiza Magno – Timor Leste

Mr Amane Nakashima – Japan

Mr Guillermo M. Luz – Philippines

Ms Heekyung Jo Min – South Korea

Ms. Helianti Hilman – Indonesia

Prof Jolan Hsieh – Taiwan

Dr Ng Eng Hen – Singapore

Prof Pavida Pananond – Thailand

Ms Pham Thi My Le – Viet Nam

Dr Rebecca Fatima Sta Maria – Malaysia

Dr Reuben Abraham – India

Mr Stanley Tan ONZM – Singapore

Prof Thitinan Pongsudhirak – Thailand

New Zealand Honorary Advisers

Rt Hon Sir Anand Satyanand

Mr Danny Chan

Rt Hon Sir Don McKinnon (Foundation Founder)

Mr Josh Wharehinga

Mr Kyle Murdoch

Hon Lianne Dalziel

Prof Manying Ip

Ms Nicola Ngarewa

Ms Paula Tesoriero

Hon Philip Burdon (Foundation Founder)

Ms Sachie Nomura

Mr Sameer Handa

Mr Simon Murdoch

Ms Tania Te Whenua

Ms Traci Houpapa

Mr Warrick Cleine (Viet Nam)

About the Asia New Zealand Foundation Te Whītau Tūhono

Established in 1994, the Asia New Zealand Foundation Te Whītau Tūhono is New Zealand’s leading provider of Asia insights and experiences. Its mission is to equip New Zealanders to excel in Asia, by providing research, insights and targeted opportunities to grow their knowledge, connections and experiences across the Asia region. The Foundation’s activities cover more than 20 countries in Asia and are delivered through eight core programmes: arts, business, entrepreneurship, leadership, media, research, Track II diplomacy and sports.
MIL OSI New Zealand News –
March 6, 2025
MIL-OSI Australia: Active transport boost for Katherine

Source: Australian Executive Government Ministers

Residents of Katherine will have more opportunities to walk or cycle through their community thanks to funding from the Albanese Government.

The Katherine Town Council will receive $756,000 under the government’s Active Transport Fund to build the Zimin Drive Shared Pathway.

The project will see the construction of a 2.4-metre wide, 5.7 kilometre-long, shared bicycle and pedestrian sealed pathway along Zimin Drive.

This will provide a safer, healthier travel option between the Stuart and Victoria Highways, looping around Katherine South.

The Albanese Government is making our cities and regions even better places to live, building social infrastructure, connecting place and designing healthier, more liveable towns.

Our new Active Transport Fund is one part of this, providing safe and accessible transport options that are good for the planet and good for ourselves.

The Active Transport Fund supports the government’s commitment to invest in infrastructure planning, design and construction that improves safety outcomes for vulnerable road users under the National Road and Safety Strategy 2021-2030.

For more information visit Active Transport Fund | Infrastructure Investment Program.

Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

“The Albanese Government is investing in active transport infrastructure, to make it safer and easier to walk, cycle or push a pram to work, school or anywhere else.

“We’re ensuring more opportunities for the people of Katherine to be more active and connected by providing better ways for them to walk and cycle across town.”

Quotes attributable to Federal Member for Lingiari Marion Scrymgour:

“Students, pedestrians and cyclists will now have a far safer way to travel in Katherine.

“We are making the community of Katherine healthier and more liveable by improving active travel connections to create opportunities for moving around town using physical activity

MIL OSI News –

March 6, 2025
MIL-OSI Security: Leader of organization who smuggled aliens through Corpus Christi sent to prison and ordered to forfeit $1 million

Source: Office of United States Attorneys

CORPUS CHRISTI, Texas – A 39-year-old Honduran national who illegally resided in Houston has been ordered to prison following his conviction for transporting illegal aliens, announced U.S. Attorney Nicholas J. Ganjei.

Marvin Reyes pleaded guilty May 30, 2024.

U.S. District Judge David Morales has now ordered him to serve 108 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional information including how the conspiracy had stretched over three years with over 200 aliens transported. In handing down the prison term, the court commented that over 200 people could have been hurt or killed because of the Reyes’ actions, and that he was responsible as the leader. The court also took note of the funds received as a result of the criminal activity and imposed a $1 million money judgement.

“Thanks to the teamwork of our office’s Corpus Christi prosecutors and their law enforcement partners, the leader of an alien smuggling ring has been put out of action,” said Ganjei. “Successful interdiction of illegal alien smuggling at the border or at interior checkpoints benefits the nation as a whole. The Southern District of Texas is proud to do its part to support a secure border.”

In July 2021, law enforcement discovered a human smuggling organization based out of Houston that Reyes led. Numerous individuals had been attempting to smuggle illegal aliens further into the United States.

The investigation revealed Reyes and others were coordinating the movement of illegal aliens through the Border Patrol checkpoints located near Sarita and Falfurrias as well as by airplane. Reyes also arranged private flights for illegal aliens from Weslaco to Houston.

Bank records showed Reyes received at least $1 million in proceeds from the human smuggling activities.

Reyes will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorneys Patrick Overman and Tyler Foster prosecuted the case.

MIL Security OSI –

March 6, 2025
MIL-OSI: Tech Expert Warns: 2025 Will Be a Crossroads Year for America—A New Era of Disruption and Opportunity
Source: GlobeNewswire (MIL-OSI)

NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — Tech expert James Altucher is issuing a stark warning: 2025 will be a defining crossroads for America—one that could either unlock historic new opportunities or leave millions struggling to catch up.

Dubbed “The Great Gain”, Altucher believes that the U.S. is entering a rare moment in history where massive economic and technological shifts will converge at the same time, forcing industries, businesses, and individuals to either adapt or be left behind. “For the first time in US history… Two major Wealth Drivers are on a collision course.”

According to Altucher, these two forces—a political and economic realignment combined with a peak in the nation’s financial cycle—are setting the stage for rapid, unpredictable change. “The first 365 days of Trump’s presidency will be remembered as… The best time to get rich in American history.”

A Defining Moment in Economic History

Altucher has made a career out of identifying major turning points before they happen. He predicted the rise of video streaming in the late 1990s, saw the social media explosion before Facebook’s IPO, and has been ahead of the curve on disruptive technologies and financial trends.

Now, he sees 2025 as another major inflection point—one that could either create immense new opportunities or leave many behind. “Technology is evolving at an exponential rate, and industries are being reshaped overnight.”

Altucher compares this shift to previous economic revolutions—those rare moments when industries and wealth were completely transformed: “The Industrial Revolution created unprecedented business empires. The dot-com boom built some of today’s biggest companies.”

But, he argues, 2025 will be even bigger. “The Great Gain is the FINAL major wealth-building opportunity of our lifetimes.”

What This Means for Everyday Americans

Altucher is urging Americans to prepare now, as this shift will create both massive winners and losers. He believes that for those who take action early, this period could bring a rare second chance to reshape their future.

“In our nation’s history… There have been only a few times… Where regular Americans could quickly gain enough wealth… To radically improve their standard of living.”

About James Altucher

James Altucher is a renowned entrepreneur, investor, and thought leader known for spotting emerging economic trends and breakthrough technologies long before they reach the mainstream.

Over his career, Altucher has:
- Built and sold multiple companies across finance, tech, and media
- Advised Fortune 500 corporations on economic trends and disruptive innovation
- Authored over 20 books, including Choose Yourself, Skip the Line, and The Rich Employee
- Been featured in leading media outlets, including CNBC, Yahoo Finance, and The New York Times
His podcast, The James Altucher Show, has been downloaded over 40 million times, featuring in-depth interviews with some of the world’s most influential entrepreneurs, investors, and visionaries.

Media Contact:
Derek Warren
Public Relations Manager
Paradigm Press Group
Email: dwarren@paradigmpressgroup.com

The MIL Network –
March 6, 2025
MIL-OSI: James Altucher Declares 2025 as ‘The Great Gain’—A New Era of Opportunity for Americans
Source: GlobeNewswire (MIL-OSI)

NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — Renowned entrepreneur, best-selling author, and economic visionary James Altucher has identified 2025 as a pivotal year for American prosperity, calling it “The Great Gain”—a moment in history where major economic and technological forces are converging to create new opportunities unlike anything seen before. “The first 365 days of Trump’s presidency will be remembered as… The best time to get rich in American history.”

Altucher argues that two major economic forces are colliding for the first time in history to create an unprecedented wave of opportunity. “For the first time in US history… Two major Wealth Drivers are on a collision course.”

A Once-in-a-Generation Moment

Altucher, known for his ability to forecast major economic and technological shifts, believes that 2025 will be remembered as one of the most transformative years in modern history. He compares it to past eras of rapid progress, such as the Industrial Revolution, the rise of Silicon Valley, and the early internet boom of the 1990s.

“The Industrial Revolution created unprecedented business empires. The dot-com boom built some of today’s biggest companies.”

According to Altucher, this moment is different from previous cycles because of the convergence of two Wealth Drivers:
1. A Political and Economic Shift – A radical move in the first 100 days of the new administration is set to open new doors for growth.
2. A Historical Economic Cycle – A peak in the 4-year wealth cycle, which “last time… turned more than 80,000 people into new millionaires.”
A Call to Action for Americans

Altucher urges Americans to stay ahead of these changes by recognizing the emerging trends that could redefine the economy. From career opportunities and entrepreneurship to advancements in automation and artificial intelligence, the coming months will present once-in-a-lifetime chances to adapt, grow, and thrive. “In our nation’s history… There have been only a few times… Where regular Americans could quickly gain enough wealth… To radically improve their standard of living.”

About James Altucher

James Altucher is not only a tech expert, he’s a former hedge fund manager and best-selling author. Altucher has also launched and sold multiple businesses and advised Fortune 500 companies. His work has been featured on Fox Business, CNBC, Yahoo Finance, The New York Times, and Business Insider.

His podcast, The James Altucher Show, has been downloaded over 40 million times, featuring guests such as Mark Cuban, Richard Branson, and Peter Thiel.

Media Contact:
Derek Warren
Public Relations Manager
Paradigm Press Group
Email: dwarren@paradigmpressgroup.com

The MIL Network –
March 6, 2025
MIL-OSI: James Altucher Declares 2025 as ‘America’s Defining Moment’—A Rare Economic Shift That Could Reshape the Future

Source: GlobeNewswire (MIL-OSI)

NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — Tech expert, best-selling author, and market forecaster James Altucher is making a bold proclamation: 2025 will mark a turning point in the American economy—one that could redefine industries, technology, and personal opportunity.

Calling it “The Great Gain”, Altucher believes that a rare collision of economic forces is underway, creating what could be one of the most significant windows for personal and financial transformation in modern history. “For the first time in US history… Two major Wealth Drivers are on a collision course.”

These two forces—a major political and economic shift combined with a historic wealth cycle peak—are aligning in a way that hasn’t happened in decades. “The first 365 days of Trump’s presidency will be remembered as… The best time to get rich in American history.”

A Historic Turning Point for Innovation and Growth

Altucher, who has successfully predicted market-defining trends for decades, sees 2025 as the start of a technological and financial transformation similar to past economic revolutions. “The Industrial Revolution created unprecedented business empires. The dot-com boom built some of today’s biggest companies.”

He believes this moment could be even bigger, with industries evolving faster than ever before. “Technology is evolving at an exponential rate, and industries are being reshaped overnight.”

A Rare Chance for Everyday Americans

Altucher emphasizes that this shift isn’t just for major corporations or Wall Street—it presents a rare second chance for everyday Americans to take advantage of changes before they become mainstream. “In our nation’s history… There have been only a few times… Where regular Americans could quickly gain enough wealth… To radically improve their standard of living.”

About James Altucher

James Altucher is not only a tech expert, he’s a former hedge fund manager and best-selling author. Altucher has also launched and sold multiple businesses and advised Fortune 500 companies. His work has been featured on Fox Business, CNBC, Yahoo Finance, The New York Times, and Business Insider.

His podcast, The James Altucher Show, has been downloaded over 40 million times, featuring guests such as Mark Cuban, Richard Branson, and Peter Thiel.

Media Contact:
Derek Warren
Public Relations Manager
Paradigm Press Group
Email: dwarren@paradigmpressgroup.com

The MIL Network –

March 6, 2025

MIL-OSI: Ring Energy Announces Fourth Quarter and Full Year 2024 Results, Year-End 2024 Proved Reserves, and 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

THE WOODLANDS, Texas, March 05, 2025 (GLOBE NEWSWIRE) — Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for the fourth quarter and full year 2024, year-end 2024 proved reserves and provided 2025 operational and financial guidance.

Fourth Quarter 2024 Highlights

Recorded net income of $5.7 million, or $0.03 per diluted share;
Reported Adjusted Net Income¹ of $12.3 million, or $0.06 per diluted share;
Sold 19,658 barrels of oil equivalent per day (“Boe/d”), exceeding midpoint of guidance and 12,916 barrels of oil per day (“Bo/d”);
Held all-in cash operating costs¹ (on a Boe basis) substantially flat with Q3 2024;
Reduced total capital expenditures by 12% to $37.6 million as compared to Q3 2024;
Recorded Adjusted Cash Flow from Operations¹ of $42.2 million and delivered Adjusted Free Cash Flow¹ of $4.7 million, remaining cash flow positive for 21 consecutive quarters; and
Strengthened balance sheet by an additional $7.0 million in debt reduction.

Full Year 2024 Highlights

Recorded net income of $67.5 million, or $0.34 per diluted share;
Reported Adjusted Net Income¹ of $69.5 million, or $0.35 per diluted share;
Grew sales volumes year-over-year (“Y-O-Y”) by 8% to a record 19,648 Boe/d and oil sales by 6% to a record 13,283 Bo/d;
Reduced Y-O-Y all-in cash operating costs¹ (on a Boe basis) by 2%;
Generated Adjusted EBITDA¹ of $233.3 million despite a 7% reduction in realized prices;
Maintained capital spending essentially flat at $151.9 million while improving capital efficiency on horizontal (“Hz”) wells by 11% to ~$492 per foot and vertical wells by ~3% on a per completed interval basis;
Generated a Cash Return on Capital Employed (“CROCE”)¹ of 15.9% despite lower commodity pricing, which is the third consecutive year that Ring has achieved a CROCE in excess of 15%;
Recorded Adjusted Cash Flow from Operations¹ of $195.3 million and delivered Adjusted Free Cash Flow¹ of $43.6 million, remaining cash flow positive for over 5 years;
Divested non-core vertical wells with high operating cost for $5.5 million;
Paid down $40.0 million in debt and $70.0 million since closing the Founders acquisition in August 2023;
Reaffirmed the borrowing base at $600 million, exited 2024 with ~$217 million of liquidity, borrowings of $385 million, and a Leverage Ratio¹ of 1.66x; and
Organically grew proved reserves by 4.4 MMBoe, or 3%, to 134.2 MMBoe.

2025 Outlook²

Average annual sales midpoint of 21,000 Boe/d and 13,900 Bo/d, a 7% and 5% increase, respectively;
Annual capital spending midpoint of $154 million, essentially flat with the prior year;
Total wells drilled, completed and online (midpoint) of ~49 wells; and
Assumes nine months of Lime Rock asset operations without the benefit of anticipated synergies and cost reductions.

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “We finished 2024 delivering on our promises during the fourth quarter, in a year in which the Ring Team enhanced nearly every controllable metric. We grew our sales by 8% over the prior year to a record 19,648 Boe/d and our oil sales by 6% to a record 13,283 Bo/d. We reduced our all-in cash operating costs per Boe by 2% and drilled 13 more wells for slightly less capital than the previous year representing a substantial increase in capital efficiency for both our horizontal and vertical wells. We paid down debt by $40 million and exited the year with $385 million borrowings and approximately $217 million of liquidity. During the fourth quarter of 2024, we reduced our capital expenditures in anticipation of seeking and completing a meaningful acquisition of producing properties, while achieving the midpoint of our guidance on a Boe basis. As we have previously stated, we intend to maintain or slightly grow our production through our organic drilling program and grow through accretive, balance sheet enhancing acquisitions of assets that meet specific criteria. Our strategy retains the flexibility to respond to changing conditions to ensure we continue to make progress profitably growing the Company, achieving the size and scale to earn more attractive market metrics, and build long term shareholder value. Looking forward to 2025, we intend to continue a reduced capital spending program in the first quarter to help us achieve a satisfactory leverage ratio upon closing the Lime Rock transaction. The rest of the year will be consistent with our past. We will continue our focus on maximizing cash flow generation and intend to allocate a portion of our cash flow from operations to maintain production and liquidity and allocate the balance to paying down debt. With the potential added benefit of the proposed Lime Rock production beginning in the second quarter and our historically successful capital spending program, we anticipate ending 2025 stronger than ever.”

Mr. McKinney concluded, “I would like to thank the Ring Team for the hard work and dedication it took to deliver our 2024 results. I also want to express our gratitude for the continued support of our shareholders. Despite an environment of lower realized commodity prices, being a member of a market segment where investor interest has waned, and other market conditions beyond our control, our shareholders continued to support us as we pursue our value focused proven strategy to build long-term value.”

Summary Results

	Quarter							Year
	Q4 2024	Q3 2024	Q4 2024 to Q3 2024 % Change		Q4 2023	Q4 2024 to Q4 2023 % Change		FY 2024	FY 2023	FY % Change
Average Daily Sales Volumes (Boe/d)	19,658	20,108	(2	)%	19,397	1	%	19,648	18,119	8	%
Crude Oil (Bo/d)	12,916	13,204	(2	)%	13,637	(5	)%	13,283	12,548	6	%
Net Sales (MBoe)	1,808.5	1,849.9	(2	)%	1,784.5	1	%	7,191.1	6,613.3	9	%
Realized Price – All Products ($/Boe)	$46.14	$48.24	(4	)%	$56.01	(18	)%	$50.94	$54.60	(7	)%
Realized Price – Crude Oil ($/Bo)	$68.98	$74.43	(7	)%	$77.33	(11	)%	$74.87	$76.21	(2	)%
Revenues ($MM)	$83.4	$89.2	(7	)%	$99.9	(17	)%	$366.3	$361.1	1	%
Net Income/Loss ($MM)	$5.7	$33.9	(83	)%	$50.9	(89	)%	$67.5	$104.9	(36	)%
Adjusted Net Income¹ ($MM)	$12.3	$13.4	(8	)%	$21.2	(42	)%	$69.5	$100.5	(31	)%
Adjusted EBITDA¹ ($MM)	$50.9	$54.0	(6	)%	$65.4	(22	)%	$233.3	$236.0	(1	)%
Capital Expenditures ($MM)	$37.6	$42.7	(12	)%	$38.8	(3	)%	$151.9	$152.0	—	%
Adjusted Free Cash Flow¹ ($MM)	$4.7	$1.9	144	%	$16.3	(71	)%	$43.6	$45.3	(4	)%

Adjusted Net Income, Adjusted EBITDA, Adjusted Free Cash Flow, Adjusted Cash Flow from Operations, Cash Return on Capital Employed and PV-10 are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures, in the tables shown later in this release under “Non-GAAP Financial Information.”

Sales Volumes, Prices and Revenues: Sales volumes for the fourth quarter of 2024 are shown in the table above.

For the fourth quarter of 2024, realized average sales prices were $68.98 per barrel of crude oil, $(0.96) per Mcf of natural gas and $9.08 per barrel of NGLs. The realized natural gas and NGL prices are impacted by a fee reduction to the value received. For the fourth quarter of 2024, the weighted average natural gas price per Mcf was $0.87 offset by a weighted average fee value per Mcf of $(1.83), and the weighted average NGL price per barrel was $20.96 partially offset by a weighted average fee of $(11.88) per barrel. The combined average realized sales price for the period was $46.14 per Boe, down 4% versus $48.24 per Boe for the third quarter of 2024, and down 18% from $56.01 per Boe in the fourth quarter of 2023. The average oil price differential the Company experienced from WTI NYMEX futures pricing in the fourth quarter of 2024 was a negative $1.42 per barrel of crude oil, while the average natural gas price differential from NYMEX futures pricing was a negative $3.83 per Mcf.

Revenues were $83.4 million for the fourth quarter of 2024 compared to $89.2 million for the third quarter of 2024 and $99.9 million for the fourth quarter of 2023. The 7% decrease in fourth quarter 2024 revenues from the third quarter was driven by a ($3.8MM) price variance and a ($2.0MM) volume variance.

Lease Operating Expense (“LOE”): LOE, which includes expensed workovers and facilities maintenance, was $20.3 million, or $11.24 per Boe, in the fourth quarter of 2024 versus $20.3 million, or $10.98 per Boe, in the third quarter of 2024 and $18.7 million, or $10.50 per Boe, for the fourth quarter of 2023. Fourth quarter 2024 LOE per Boe was within the Company’s guidance range, and the Company remains focused on further improving the efficiencies of its operations.

Gathering, Transportation and Processing (“GTP”) Costs: As previously disclosed, due to a contractual change effective May 1, 2022, the Company no longer maintains ownership and control of the majority of its natural gas through processing. As a result, GTP costs are now substantially reflected as a reduction to the natural gas sales price and not as an expense item. There remains only one contract in place with a natural gas processing entity where the point of control of gas dictates requiring the fees to be recorded as an expense.

Ad Valorem Taxes: Ad valorem taxes, inclusive of an accrual for methane taxes of $527,687, were $1.34 per Boe for the fourth quarter of 2024, compared to $1.17 per Boe in the third quarter of 2024 and $0.92 per Boe for the fourth quarter of 2023.

Production Taxes: Production taxes were $2.13 per Boe in the fourth quarter of 2024 compared to $2.27 per Boe in the third quarter of 2024 and $2.78 per Boe in fourth quarter of 2023. Production taxes ranged between 4.6% to 5.0% of revenue for all three periods.

Depreciation, Depletion and Amortization (“DD&A”) and Asset Retirement Obligation Accretion: DD&A was $13.57 per Boe in the fourth quarter of 2024 versus $13.87 per Boe for the third quarter of 2024 and $13.76 per Boe in the fourth quarter of 2023. Asset retirement obligation accretion was $0.18 per Boe in the fourth quarter of 2024 compared to $0.19 per Boe for the third quarter of 2024 and $0.20 per Boe in the fourth quarter of 2023.

General and Administrative Expenses (“G&A”): G&A was $8.0 million ($4.44 per Boe) for the fourth quarter of 2024 versus $6.4 million ($3.47 per Boe) for the third quarter of 2024 and $8.2 million ($4.58 per Boe) in the fourth quarter of 2023. G&A, excluding share-based compensation¹, was $6.4 million for the fourth quarter of 2024 ($3.52 per Boe) versus $6.4 million for the third quarter of 2024 ($3.45 per Boe) and $5.7 million in the fourth quarter of 2023 ($3.20 per Boe). The fourth quarter of 2024 included $21,017 of Transaction Costs. Excluding these costs and share-based compensation, G&A was $3.51 per Boe for the period.

Interest Expense: Interest expense was $10.1 million in the fourth quarter of 2024 versus $10.8 million for the third quarter of 2024 and $11.6 million for the fourth quarter of 2023.

Derivative (Loss) Gain: In the fourth quarter of 2024, Ring recorded a net loss of $6.3 million on its commodity derivative contracts, including a realized $0.7 million cash commodity derivative gain and an unrealized $7.0 million non-cash commodity derivative loss. This compared to a net gain of $24.7 million in the third quarter of 2024, including a realized $1.9 million cash commodity derivative loss and an unrealized $26.6 million non-cash commodity derivative gain, and a net gain of $29.3 million in the fourth quarter of 2023, including a realized $3.3 million cash commodity derivative loss and an unrealized $32.5 million non-cash commodity derivative gain.

A summary listing of the Company’s outstanding derivative positions at December 31, 2024 is included in the tables shown later in this release. A quarterly breakout is provided in the Company’s investor presentation.

For full year 2025, the Company currently has approximately 2.4 million barrels of oil (48% of oil sales guidance midpoint) hedged and 2.4 billion cubic feet of natural gas (33% of natural gas sales guidance midpoint) hedged.

Income Tax: The Company recorded a non-cash income tax provision of $1.8 million in the fourth quarter of 2024, $10.1 million in the third quarter of 2024, and $7.9 million for fourth quarter 2023.

Balance Sheet and Liquidity: Total liquidity at December 31, 2024 was $216.8 million, a 4% increase from September 30, 2024 and a 24% increase from December 31, 2023. Liquidity at December 31, 2024 consisted of cash and cash equivalents of $1.9 million and $215.0 million of availability under Ring’s revolving credit facility, which includes a reduction of $35 thousand for letters of credit. On December 31, 2024, the Company had $385.0 million in borrowings outstanding on its revolving credit facility that has a current borrowing base of $600.0 million. Ring paid down $7 million of debt during the fourth quarter of 2024 and $70.0 million since the closing of the Founders Transaction in August 2023. The Company is targeting further debt pay down during 2025 dependent on market conditions, the timing of capital spending, and other considerations.

During the fourth quarter of 2024, the Company’s borrowing base of $600 million under its revolving credit facility was reaffirmed. The next regularly scheduled bank redetermination is scheduled to occur during May 2025. Ring is currently in compliance with all applicable covenants under its revolving credit facility.

Capital Expenditures: During the fourth quarter of 2024, capital expenditures on an accrual basis were $37.6 million, which was near the midpoint of Ring’s guidance of $33 million to $41 million. The Company drilled five Hz and four vertical wells, and completed ten wells — with all drilling and completion activity occurring in the Central Basin Platform (“CBP”). Also included in fourth quarter 2024 capital spending were costs for capital workovers, infrastructure upgrades, recompletions, leasing costs, and ESG improvements.

For the year ended December 31, 2024, capital expenditures on an accrual basis were $151.9 million — substantially flat with full year 2023 despite more than a 40% increase in drilling and completion activity in 2024. Capital spending in 2024 included costs to drill, complete and place on production 21 Hz wells (five in the NWS and 16 in the CBP) and 22 vertical wells in the CBP, as well as costs for capital workovers, infrastructure upgrades, recompletions, leasing costs, and ESG improvements.

The table below sets forth Ring’s drilling and completions activities by quarter for 2024:

Quarter	Area	Wells Drilled	Wells Completed	Drilled Uncompleted (“DUC”) ⁽²⁾

1Q 2024	Northwest Shelf (Horizontal)	2	2	—
	Central Basin Platform (Horizontal)	3	3	—
	Central Basin Platform (Vertical)	6	6	—
	Total ⁽¹⁾	11	11	—

2Q 2024	Northwest Shelf (Horizontal)	—	—	—
	Central Basin Platform (Horizontal)	5	5	—
	Central Basin Platform (Vertical)	6	6	—
	Total	11	11	—

3Q 2024	Northwest Shelf (Horizontal)	3	3	—
	Central Basin Platform (Horizontal)	4	2	2
	Central Basin Platform (Vertical)	6	6	—
	Total	13	11	2

4Q 2024	Northwest Shelf (Horizontal)	—	—	—
	Central Basin Platform (Horizontal)	5	6	1
	Central Basin Platform (Vertical)	4	4	—
	Total	9	10	1

FY 2024	Northwest Shelf (Horizontal)	5	5	—
	Central Basin Platform (Horizontal)	17	16	1
	Central Basin Platform (Vertical)	22	22	—
	Total	44	43	1

⁽¹⁾ First quarter total and full year total do not include one salt water disposal (“SWD”) well completed in the Central Basin Platform
⁽²⁾ Note that the DUC wells represent period-end counts rather than period-to-date totals.

Full Year 2024 Summary Financial Review

The Company reported net income for full year 2024 of $67.5 million, or $0.34 per diluted share, and Adjusted Net Income of $69.5 million, or $0.35 per diluted share. For full year 2023, Ring reported net income of $104.9 million, or $0.54 per diluted share, and Adjusted Net Income of $100.5 million, or $0.51 per diluted share.

In full year 2024, the Company generated Adjusted EBITDA of $233.3 million, Adjusted Free Cash Flow of $43.6 million, and Adjusted Cash Flow from Operations of $195.3 million — representing a four percent or less decline in all three metrics from full year 2023, despite an almost seven percent decrease in overall realized commodity pricing.

Revenues totaled $366.3 million for 2024 compared to $361.1 million in 2023, with the increase driven by higher sales volumes partially offset by lower overall realized commodity prices.

Net sales for full year 2024 were a record 19,648 Boe/d, or 7,191,054 Boe, comprised of 4,861,628 Bbls of oil, 6,423,674 Mcf of natural gas, and 1,258,814 Bbls of NGLs. Full year 2023 net sales averaged 18,119 Boe/d, or 6,613,321 Boe, which included 4,579,942 Bbls of oil, 6,339,158 Mcf of natural gas, and 976,852 Bbls of NGLs. The increase in sales volumes was primarily associated with a full year of production from the Founders Acquisition that closed in August 2023, as well as strong organic growth from the Company’s targeted capital spending program.

For full year 2024, the Company’s realized crude oil sales price was $74.87 per barrel, the natural gas sales price was $(1.44) per Mcf, and the NGLs sales price was $9.23 per barrel. The combined average sales price for full year 2024 was $50.94 per Boe compared to $54.60 per Boe for full year 2023.

For the full year 2024, LOE was $78.3 million, or $10.89 per Boe (substantially at the midpoint of guidance of $10.70 to $11.00 per Boe). The increase in LOE on an absolute basis from full year 2023 was primarily due to the full year of expenses from the assets acquired with the Founders Acquisition (closed in August 2023) which contributed to the previously discussed 9% increase in production. Also affecting absolute LOE were higher activity levels, partially offset by the Company’s ongoing cost reduction and increased efficiency initiatives.

For the full year 2024, G&A was $29.6 million, or $4.12 per Boe, compared to $29.2 million, or $4.41 per Boe for full year 2023. G&A, excluding share-based compensation, was $24.1 million, or $3.36 per Boe, compared to $20.4 million, or $3.08 per Boe for full year 2023. Excluding Transaction Costs, full year 2024 G&A, net of share-based compensation, was $3.35 per Boe. The increase from full year 2023 was primarily associated with higher total compensation levels driven by higher activity levels in 2024 and a non-recurring employee retention tax credit in 2023, with the overall net increase partially offset by a $3.3 million year-over-year reduction in share-based compensation.

Recently Announced Proposed Accretive Bolt-On Acquisition

On February 25, 2025, the Company entered into an agreement to acquire Lime Rock’s CBP assets for $90 million in cash with $80 million due at closing and $10 million due on the nine month anniversary of closing, and approximately 7.4 million shares of our common stock. The purchase price is subject to customary purchase price adjustments. The transaction has an effective date of October 1, 2024, and is expected to close by the end of the first quarter of 2025.

Lime Rock’s CBP acreage is in Andrews County, Texas, where the majority of the acreage directly offsets Ring’s core Shafter Lake operations, and the remaining acreage is prospective for multiple horizontal targets and exposes the Company to new active plays. The transaction represents another opportunity for the Company to seamlessly integrate strategic, high-quality assets with Ring’s existing operations and create shareholder value through improved operations and synergy capture.

The Lime Rock position has been a key target for Ring as the Company has historically sought to consolidate producing assets in core counties in the CBP defined by shallow declines, high margin production and undeveloped inventory that immediately competes for capital. Additionally, these assets add significant near-term opportunities for field level optimization and cost savings that are core competencies of Ring’s operating team.

2025 Capital Investment, Sales Volumes, and Operating Expense Guidance

In January, the Company commenced its 2025 development program with one rig drilling horizontal wells followed by another rig drilling vertical wells. During the first quarter, this disciplined capital program is intended to achieve a satisfactory leverage ratio upon the closing of the Lime Rock transaction. The Company intends to utilize a phased (versus continuous) capital drilling program to maximize free cash flow and retain the flexibility to respond to changes in commodity prices and other market conditions.

For full year 2025, Ring expects total capital spending of $138 million to $170 million that includes a balanced and capital efficient combination of drilling, completing and placing on production 27 to 32 Hz and 15 to 22 vertical wells across the Company’s asset portfolio. Additionally, the full year capital spending program includes funds for the drilling of targeted well recompletions, capital workovers, infrastructure upgrades, reactivations, leasing costs, ESG improvements, and the drilling of approximately three SWD wells, in addition to the Company’s pro-rata capital spending for non-operated drilling, completion, and capital workover activities.

All projects and estimates are based on assumed WTI oil prices of $65 to $75 per barrel and Henry Hub prices of $2.00 to $4.00 per Mcf.

Based on the $154 million midpoint of spending guidance, the Company expects the following estimated allocation of capital investment:

73% for drilling, completion, and related infrastructure;
19% for recompletions and capital workovers;
5% for environmental and emission reducing facility upgrades; and
3% for land and non-operated capital.

The Company remains focused on continuing to generate Adjusted Free Cash Flow. All 2025 planned capital expenditures will be fully funded by cash on hand and cash from operations, and excess Adjusted Free Cash Flow is currently targeted for further debt reduction.

The Company currently forecasts full year 2025 oil sales volumes of 13,600 to 14,200 Bo/d compared with full year 2024 oil sales volumes of 13,283 Bo/d, with the midpoint of guidance reflecting almost a 5% increase from last year.

The guidance in the table below represents the Company’s current good faith estimate of the range of likely future results for the first quarter and full year of 2025 and assumes the closing of the Lime Rock transaction at the end of the first quarter of 2025. Guidance could be affected by the factors discussed below in the “Safe Harbor Statement” section. LOE per Boe assumes the full operating costs of the Lime Rock assets before anticipated synergies and cost reductions after the assets are integrated.

	Q1 2025	Q2 2025	Q3 2025	Q4 2025	FY 2025

Sales Volumes:
Total Oil (Bo/d)	11,700 – 12,000	13,700 – 14,700	14,000 – 15,000	14,400 – 15,400	13,600 – 14,200
Midpoint (Bo/d)	11,850	14,200	14,500	14,900	13,900
Total (Boe/d)	18,000-18,500	20,500 – 22,500	20,700 – 22,700	21,000 – 23,000	20,000 – 22,000
Midpoint (Boe/d)	18,250	21,500	21,700	22,000	21,000
Oil (%)	65%	66%	67%	68%	66%
NGLs (%)	19%	18%	18%	18%	18%
Gas (%)	16%	16%	15%	14%	16%

Capital Program:
Capital spending⁽¹⁾ (millions)	$26 – $34	$34 – $42	$46 – $54	$32 – $40	$138 – $170
Midpoint (millions)	$30	$38	$50	$36	$154
New Hz wells drilled	4 – 5	8 – 9	11 – 13	4 – 5	27 – 32
New Vertical wells drilled	3 – 4	3 – 5	4 – 6	5 – 7	15 – 22
Completion of DUC wells	0	1	0	0	1
Wells completed and online	7 – 9	12 – 15	15 – 19	9 – 12	43 – 55

Operating Expenses:
LOE (per Boe)	$11.75 – $12.25	$11.50 – $12.50	$11.25 – $12.25	$11.00 – $12.00	$11.25 – $12.25
Midpoint (per Boe)	$12.00	$12.00	$11.75	$11.50	$11.75

⁽¹⁾ In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades and well reactivations. Also included is anticipated spending for leasing acreage and non-operated drilling, completion, capital workovers, and ESG improvements.

Year-End 2024 Proved Reserves

The Company’s year-end 2024 SEC proved reserves were 134.2 MMBoe, up 3% compared to 129.8 MMBoe at year-end 2023. During 2024, Ring recorded reserve additions of 16.0 MMBoe for extensions, discoveries and improved recovery. Offsetting these additions were 1.2 MMBoe related to the sale of non-core assets, 7.2 MMBoe of production, and 3.2 MMBoe of revisions related to changes in pricing and performance.

The SEC twelve-month first day of the month average prices used for year-end 2024 were $71.96 per barrel of crude oil and $2.130 per MMBtu of natural gas, both before adjustment for quality, transportation, fees, energy content, and regional price differentials, while for year-end 2023 they were $74.70 per barrel of crude oil and $2.637 per MMBtu of natural gas — a decrease of four percent and two percent, respectively.

Year-end 2024 SEC proved reserves were comprised of approximately 60% crude oil, 19% natural gas, and 21% natural gas liquids. At year end, approximately 69% of 2024 proved reserves were classified as proved developed and 31% as proved undeveloped. This is compared to year-end 2023 when approximately 68% of proved reserves were classified as proved developed and 32% were classified as proved undeveloped. The Company’s year-end 2024 proved reserves were prepared by Cawley, Gillespie & Associates, Inc., and independent petroleum engineering firm.

The PV-10 value at year-end 2024 was $1,462.8 million versus $1,647.0 million at the end of 2023.

	Oil (Bbl)		Gas (Mcf)		Natural Gas Liquids (Bbl)		Net (Boe)		PV-10⁽¹⁾

Balance, December 31, 2023	82,141,277		146,396,322		23,218,564		129,759,229		$	1,647,031,127

Purchase of minerals in place	—		—		—		—
Extensions, discoveries and improved recovery	11,495,236		10,630,769		2,738,451		16,005,482
Sales of minerals in place	(1,140,568	)	(56,020	)	(16,361	)	(1,166,266	)
Production	(4,861,628	)	(6,423,674	)	(1,258,814	)	(7,191,054	)
Revisions of previous quantity estimates	(6,730,246	)	(730,235	)	3,621,245		(3,230,707	)

Balance, December 31, 2024	80,904,071		149,817,162		28,303,085		134,176,684		$	1,462,827,136

⁽¹⁾ PV-10 is a non-GAAP financial measure and is derived from the Standardized Measure of Discounted Futures Net Cash Flows, which is the most directly comparable generally accepted accounting principles (“GAAP”) measure.

In accordance with guidelines established by the SEC, estimated proved reserves as of December 31, 2024 were determined to be economically producible under existing economic conditions, which requires the use of the 12-month average commodity price for each product, calculated as the unweighted arithmetic average of the first-day-of-the-month price for the year ended December 31, 2024. The SEC average prices used for year-end 2024 were $71.96 per barrel of crude oil (WTI) and $2.130 per MMBtu of natural gas (Henry Hub), both before adjustment for quality, transportation, fees, energy content, and regional price differentials. Such prices were held constant throughout the estimated lives of the reserves. Future production and development costs are based on year-end costs with no escalations.

Standardized Measure of Discounted Future Net Cash Flows

Ring’s standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves and changes in the standardized measure as described below were prepared in accordance with GAAP.

*As of December 31,*		2024			2023

Future cash inflows	$	6,165,487,616		$	6,622,410,752
Future production costs		(2,432,555,200	)		(2,413,303,488	)
Future development costs ⁽¹⁾		(536,825,664	)		(562,063,424	)
Future income taxes		(465,768,645	)		(548,664,988	)
Future net cash flows		2,730,338,107			3,098,378,852
10% annual discount for estimated timing of cash flows		(1,497,401,764	)		(1,699,193,661	)

Standardized Measure of Discounted Future Net Cash Flows	$	1,232,936,343		$	1,399,185,191

(1) Future development costs include not only development costs but also future asset retirement costs.

Reconciliation of PV-10 to Standardized Measure

PV-10 is derived from the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”), which is the most directly comparable GAAP financial measure for proved reserves calculated using SEC pricing. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes, discounted at 10 percent. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may utilize the measure as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. Moreover, GAAP does not provide a measure of estimated future net cash flows for reserves other than proved reserves or for reserves calculated using prices other than SEC prices. We use this measure when assessing the potential return on investment related to our oil and natural gas properties. PV-10, however, is not a substitute for the Standardized Measure. Our PV-10 measure and the Standardized Measure do not purport to represent the fair value of our oil and natural gas reserves.

The following table reconciles the PV-10 value of the Company’s estimated proved reserves as of December 31, 2024 to the Standardized Measure:

SEC Pricing Proved Reserves
Standardized Measure Reconciliation
Present Value of Estimated Future Net Revenues (PV-10)	$	1,462,827,136
Future Income Taxes, Discounted at 10%		229,890,793
Standardized Measure of Discounted Future Net Cash Flows	$	1,232,936,343

Conference Call Information

Ring will hold a conference call on Thursday, March 6, 2025 at 11:00 a.m. ET (10:00 a.m. CT) to discuss its fourth quarter and full year 2024 operational and financial results. An updated investor presentation will be posted to the Company’s website prior to the conference call.

To participate in the conference call, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the “Ring Energy 2024 Earnings Conference Call”. International callers may participate by dialing 412-317-5762. The call will also be webcast and available on Ring’s website at www.ringenergy.com under “Investors” on the “News & Events” page. An audio replay will also be available on the Company’s website following the call.

About Ring Energy, Inc.

Ring Energy, Inc. is an oil and gas exploration, development, and production company with current operations focused on the development of its Permian Basin assets. For additional information, please visit www.ringenergy.com.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. Additionally, forward-looking statements include statements about the expected benefits to the Company and its shareholders from the proposed Lime Rock acquisition and the anticipated completion of the Lime Rock acquisition or the timing thereof. When used in this release, the words “could,” “may,” “will,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “guidance,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base and interest rates under the Company’s credit facility; Ring’s ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; the impacts of hedging on results of operations; and Ring’s ability to replace oil and natural gas reserves. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2024, and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company. Should one or more of the risks or uncertainties described in this release occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this release are expressly qualified in their entirety by this safe harbor statement. This safe harbor statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Ring undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Contact Information

Al Petrie Advisors
Al Petrie, Senior Partner
Phone: 281-975-2146
Email: apetrie@ringenergy.com

RING ENERGY, INC. Condensed Statements of Operations

	(Unaudited)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Oil, Natural Gas, and Natural Gas Liquids Revenues	$	83,440,546		$	89,244,383		$	99,942,718		$	366,327,414		$	361,056,001

Costs and Operating Expenses
Lease operating expenses		20,326,216			20,315,282			18,732,082			78,310,949			70,158,227
Gathering, transportation and processing costs		130,230			102,420			464,558			506,333			457,573
Ad valorem taxes		2,421,595			2,164,562			1,637,722			8,069,064			6,757,841
Oil and natural gas production taxes		3,857,147			4,203,851			4,961,768			16,116,565			18,135,336
Depreciation, depletion and amortization		24,548,849			25,662,123			24,556,654			98,702,843			88,610,291
Asset retirement obligation accretion		323,085			354,195			351,786			1,380,298			1,425,686
Operating lease expense		175,090			175,091			175,090			700,362			541,801
General and administrative expense		8,035,977			6,421,567			8,164,799			29,640,300			29,188,755

Total Costs and Operating Expenses		59,818,189			59,399,091			59,044,459			233,426,714			215,275,510

Income from Operations		23,622,357			29,845,292			40,898,259			132,900,700			145,780,491

Other Income (Expense)
Interest income		124,765			143,704			96,984			491,946			257,155
Interest (expense)		(10,112,496	)		(10,754,243	)		(11,603,892	)		(43,311,810	)		(43,926,732	)
Gain (loss) on derivative contracts		(6,254,448	)		24,731,625			29,250,352			(2,365,917	)		2,767,162
Gain (loss) on disposal of assets		—			—			44,981			89,693			(87,128	)
Other income		80,970			—			72,725			106,656			198,935
Net Other Income (Expense)		(16,161,209	)		14,121,086			17,861,150			(44,989,432	)		(40,790,608	)

Income Before Provision for Income Taxes		7,461,148			43,966,378			58,759,409			87,911,268			104,989,883

Provision for Income Taxes		(1,803,629	)		(10,087,954	)		(7,862,930	)		(20,440,954	)		(125,242	)

Net Income	$	5,657,519		$	33,878,424		$	50,896,479		$	67,470,314		$	104,864,641

Basic Earnings per Share	$	0.03		$	0.17		$	0.26		$	0.34		$	0.55
Diluted Earnings per Share	$	0.03		$	0.17		$	0.26		$	0.34		$	0.54

Basic Weighted-Average Shares Outstanding		198,166,543			198,177,046			195,687,725			197,937,683			190,589,143
Diluted Weighted-Average Shares Outstanding		200,886,010			200,723,863			197,848,812			200,277,380			195,364,850

RING ENERGY, INC. Condensed Operating Data (Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2024		2024		2023		2024		2023

Net sales volumes:
Oil (Bbls)	1,188,272		1,214,788		1,254,619		4,861,628		4,579,942
Natural gas (Mcf)	1,683,793		1,705,027		1,613,102		6,423,674		6,339,158
Natural gas liquids (Bbls)	339,589		350,975		261,020		1,258,814		976,852
Total oil, natural gas and natural gas liquids (Boe)⁽¹⁾	1,808,493		1,849,934		1,784,490		7,191,054		6,613,321

% Oil	66	%	66	%	70	%	68	%	69	%
% Natural gas	15	%	15	%	15	%	15	%	16	%
% Natural gas liquids	19	%	19	%	15	%	17	%	15	%

Average daily sales volumes:
Oil (Bbls/d)	12,916		13,204		13,637		13,283		12,548
Natural gas (Mcf/d)	18,302		18,533		17,534		17,551		17,368
Natural gas liquids (Bbls/d)	3,691		3,815		2,837		3,439		2,676
Average daily equivalent sales (Boe/d)	19,658		20,108		19,397		19,648		18,119

Average realized sales prices:
Oil ($/Bbl)	68.98		74.43		77.33		74.87		76.21
Natural gas ($/Mcf)	(0.96	)	(2.26	)	(0.12	)	(1.44	)	0.05
Natural gas liquids ($/Bbls)	9.08		7.66		11.92		9.23		11.95
Barrel of oil equivalent ($/Boe)	46.14		48.24		56.01		50.94		54.60

Average costs and expenses per Boe ($/Boe):
Lease operating expenses	11.24		10.98		10.50		10.89		10.61
Gathering, transportation and processing costs	0.07		0.06		0.26		0.07		0.07
Ad valorem taxes	1.34		1.17		0.92		1.12		1.02
Oil and natural gas production taxes	2.13		2.27		2.78		2.24		2.74
Depreciation, depletion and amortization	13.57		13.87		13.76		13.73		13.40
Asset retirement obligation accretion	0.18		0.19		0.20		0.19		0.22
Operating lease expense	0.10		0.09		0.10		0.10		0.08
G&A (including share-based compensation)	4.44		3.47		4.58		4.12		4.41
G&A (excluding share-based compensation)	3.52		3.45		3.20		3.36		3.08
G&A (excluding share-based compensation and transaction costs)	3.51		3.45		3.00		3.35		3.01

(1) Boe is determined using the ratio of six Mcf of natural gas to one Bbl of oil (totals may not compute due to rounding.) The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, natural gas, and natural gas liquids may differ significantly.

RING ENERGY, INC. Condensed Balance Sheets

As of December 31,		2024			2023
ASSETS
Current Assets
Cash and cash equivalents	$	1,866,395		$	296,384
Accounts receivable		36,172,316			38,965,002
Joint interest billing receivables, net		1,083,164			2,422,274
Derivative assets		5,497,057			6,215,374
Inventory		4,047,819			6,136,935
Prepaid expenses and other assets		1,781,341			1,874,850
Total Current Assets		50,448,092			55,910,819
Properties and Equipment
Oil and natural gas properties, full cost method		1,809,309,848			1,663,548,249
Financing lease asset subject to depreciation		4,634,556			3,896,316
Fixed assets subject to depreciation		3,389,907			3,228,793
Total Properties and Equipment		1,817,334,311			1,670,673,358
Accumulated depreciation, depletion and amortization		(475,212,325	)		(377,252,572	)
Net Properties and Equipment		1,342,121,986			1,293,420,786
Operating lease asset		1,906,264			2,499,592
Derivative assets		5,473,375			11,634,714
Deferred financing costs		8,149,757			13,030,481
Total Assets	$	1,408,099,474		$	1,376,496,392

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	95,729,261		$	104,064,124
Income tax liability		328,985			—
Financing lease liability		906,119			956,254
Operating lease liability		648,204			568,176
Derivative liabilities		6,410,547			7,520,336
Notes payable		496,397			533,734
Asset retirement obligations		517,674			165,642
Total Current Liabilities		105,037,187			113,808,266

Non-current Liabilities
Deferred income taxes		28,591,802			8,552,045
Revolving line of credit		385,000,000			425,000,000
Financing lease liability, less current portion		647,078			906,330
Operating lease liability, less current portion		1,405,837			2,054,041
Derivative liabilities		2,912,745			11,510,368
Asset retirement obligations		25,864,843			28,082,442
Total Liabilities		549,459,492			589,913,492
Commitments and contingencies
Stockholders’ Equity
Preferred stock – $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding		—			—
Common stock – $0.001 par value; 450,000,000 shares authorized; 198,561,378 shares and 196,837,001 shares issued and outstanding, respectively		198,561			196,837
Additional paid-in capital		800,419,719			795,834,675
Retained earnings (Accumulated deficit)		58,021,702			(9,448,612	)
Total Stockholders’ Equity		858,639,982			786,582,900
Total Liabilities and Stockholders’ Equity	$	1,408,099,474		$	1,376,496,392

RING ENERGY, INC. Condensed Statements of Cash Flows

	(Unaudited)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Cash Flows From Operating Activities
Net income	$	5,657,519		$	33,878,424		$	50,896,479		$	67,470,314		$	104,864,641
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		24,548,849			25,662,123			24,556,654			98,702,843			88,610,291
Asset retirement obligation accretion		323,085			354,195			351,786			1,380,298			1,425,686
Amortization of deferred financing costs		1,299,078			1,226,881			1,221,479			4,969,174			4,920,714
Share-based compensation		1,672,320			32,087			2,458,682			5,506,017			8,833,425
Credit loss expense		(26,747	)		8,817			92,142			160,847			134,007
(Gain) loss on disposal of assets		—			—			—			(89,693	)		—
Deferred income tax expense (benefit)		1,723,338			10,005,502			7,735,437			19,935,413			(425,275	)
Excess tax expense (benefit) related to share-based compensation		9,011			7,553			319,541			104,344			478,304
(Gain) loss on derivative contracts		6,254,448			(24,731,625	)		(29,250,352	)		2,365,917			(2,767,162	)
Cash received (paid) for derivative settlements, net		745,104			(1,882,765	)		(3,255,192	)		(5,193,673	)		(9,084,920	)
Changes in operating assets and liabilities:
Accounts receivable		349,474			5,529,542			6,825,601			3,594,504			1,154,085
Inventory		580,161			1,148,418			(588,100	)		2,089,116			3,113,782
Prepaid expenses and other assets		295,555			545,529			158,163			93,509			226,688
Accounts payable		4,462,089			(225,196	)		(4,952,335	)		(5,076,738	)		(1,451,422	)
Asset retirement obligation		(613,603	)		(222,553	)		(836,778	)		(1,588,480	)		(1,862,385	)
Net Cash Provided by Operating Activities		47,279,681			51,336,932			55,733,207			194,423,712			198,170,459

Cash Flows From Investing Activities
Payments for the Stronghold Acquisition		—			—			—			—			(18,511,170	)
Payments for the Founders Acquisition		—			—			(12,324,388	)		—			(62,227,145	)
Payments to purchase oil and natural gas properties		(1,423,483	)		(164,481	)		(557,323	)		(2,210,826	)		(2,162,585	)
Payments to develop oil and natural gas properties		(36,386,055	)		(42,099,874	)		(39,563,282	)		(153,945,456	)		(152,559,314	)
Payments to acquire or improve fixed assets subject to depreciation		—			(33,938	)		(282,519	)		(185,524	)		(492,317	)
Proceeds from sale of fixed assets subject to depreciation		—			—			(1	)		10,605			332,229
Proceeds from divestiture of oil and natural gas properties		121,232			—			1,500,000			121,232			1,554,558
Proceeds from sale of Delaware properties		—			—			(7,993	)		—			7,600,699
Proceeds from sale of New Mexico properties		—			—			(420,745	)		(144,398	)		3,891,757
Proceeds from sale of CBP vertical wells		—			5,500,000			—			5,500,000			—
Net Cash Used in Investing Activities		(37,688,306	)		(36,798,293	)		(51,656,251	)		(150,854,367	)		(222,573,288	)

Cash Flows From Financing Activities
Proceeds from revolving line of credit		22,000,000			27,000,000			46,000,000			130,000,000			225,000,000
Payments on revolving line of credit		(29,000,000	)		(42,000,000	)		(49,000,000	)		(170,000,000	)		(215,000,000	)
Proceeds from issuance of common stock from warrant exercises		—			—			—			—			12,301,596
Payments for taxes withheld on vested restricted shares, net		—			(17,273	)		(225,788	)		(919,249	)		(520,153	)
Proceeds from notes payable		58,774			—			72,442			1,560,281			1,637,513
Payments on notes payable		(475,196	)		(442,976	)		(488,776	)		(1,597,618	)		(1,603,659	)
Payment of deferred financing costs		(42,746	)		—			(52,222	)		(88,450	)		(52,222	)
Reduction of financing lease liabilities		(265,812	)		(257,202	)		(224,809	)		(954,298	)		(776,388	)
Net Cash Provided by (Used in) Financing Activities		(7,724,980	)		(15,717,451	)		(3,919,153	)		(41,999,334	)		20,986,687

Net Increase (Decrease) in Cash		1,866,395			(1,178,812	)		157,803			1,570,011			(3,416,142	)
Cash at Beginning of Period		—			1,178,812			138,581			296,384			3,712,526
Cash at End of Period	$	1,866,395		$	—		$	296,384		$	1,866,395		$	296,384

RING ENERGY, INC.
Financial Commodity Derivative Positions
As of December 31, 2024

The following tables reflect the details of current derivative contracts as of December 31, 2024 (quantities are in barrels (Bbl) for the oil derivative contracts and in million British thermal units (MMBtu) for the natural gas derivative contracts):

	Oil Hedges (WTI)
	Q1 2025		Q2 2025		Q3 2025		Q4 2025		Q1 2026		Q2 2026		Q3 2026		Q4 2026

Swaps:
Hedged volume (Bbl)		193,397		151,763		351,917		141,755		477,350		457,101		59,400		423,000
Weighted average swap price	$	68.68	$	68.53	$	71.41	$	69.13	$	70.16	$	69.38	$	66.70	$	66.70

Two-way collars:
Hedged volume (Bbl)		474,750		464,100		225,400		404,800		—		—		379,685		—
Weighted average put price	$	57.06	$	60.00	$	65.00	$	60.00	$	—	$	—	$	60.00	$	—
Weighted average call price	$	75.82	$	69.85	$	78.91	$	75.68	$	—	$	—	$	72.50	$	—

	Gas Hedges (Henry Hub)
	Q1 2025		Q2 2025		Q3 2025		Q4 2025		Q1 2026		Q2 2026		Q3 2026		Q4 2026

NYMEX Swaps:
Hedged volume (MMBtu)		451,884		647,200		330,250		11,400		26,600		555,300		17,400		513,300
Weighted average swap price	$	3.77	$	3.46	$	3.72	$	3.74	$	3.74	$	3.39	$	3.74	$	3.74

Two-way collars:
Hedged volume (MMBtu)		22,016		27,300		308,200		598,000		553,500		—		515,728		—
Weighted average put price	$	3.00	$	3.00	$	3.00	$	3.00	$	3.50	$	—	$	3.00	$	—
Weighted average call price	$	4.40	$	4.15	$	4.75	$	4.15	$	5.03	$	—	$	3.93	$	—

	Oil Hedges (basis differential)
	Q1 2025		Q2 2025		Q3 2025		Q4 2025		Q1 2026		Q2 2026		Q3 2026		Q4 2026

Argus basis swaps:
Hedged volume (Bbl)		177,000		273,000		276,000		276,000		—		—		—		—
Weighted average spread price ⁽¹⁾	$	1.00	$	1.00	$	1.00	$	1.00	$	—	$	—	$	—	$	—

⁽¹⁾ The oil basis swap hedges are calculated as the fixed price (weighted average spread price above) less the difference between WTI Midland and WTI Cushing, in the issue of Argus Americas Crude.

RING ENERGY, INC.
Non-GAAP Financial Information

Certain financial information included in this release are not measures of financial performance recognized by accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures are “Adjusted Net Income”, “Adjusted EBITDA”, “Adjusted Free Cash Flow” or “AFCF,” “Adjusted Cash Flow from Operations” or “ACFFO,” “G&A Excluding Share-Based Compensation,” “G&A Excluding Share-Based Compensation and Transaction Costs,” “Leverage Ratio,” “Current Ratio,” “Cash Return on Capital Employed” or “CROCE,” “All-In Cash Operating Costs,” and “Cash Operating Margin.” Management uses these non-GAAP financial measures in its analysis of performance. In addition, Adjusted EBITDA is a key metric used to determine a portion of the Company’s incentive compensation awards. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

Reconciliation of Net Income to Adjusted Net Income

“Adjusted Net Income” is calculated as net income minus the estimated after-tax impact of share-based compensation, ceiling test impairment, unrealized gains and losses on changes in the fair value of derivatives, and transaction costs for executed acquisitions and divestitures (A&D). Adjusted Net Income is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current period to prior periods. The Company believes that the presentation of Adjusted Net Income provides useful information to investors as it is one of the metrics management uses to assess the Company’s ongoing operating and financial performance, and also is a useful metric for investors to compare our results with our peers.

	(Unaudited for All Periods)
	Three Months Ended																		Twelve Months Ended
	December 31,						September 30,						December 31,						December 31,						December 31,
		2024						2024						2023						2024						2023
	Total			Per share – diluted			Total			Per share – diluted			Total			Per share – diluted			Total			Per share – diluted			Total			Per share – diluted
Net Income	$	5,657,519		$	0.03		$	33,878,424		$	0.17		$	50,896,479		$	0.26		$	67,470,314		$	0.34		$	104,864,641		$	0.54

Share-based compensation		1,672,320			0.01			32,087			—			2,458,682			0.01			5,506,017			0.03			8,833,425			0.05
Unrealized loss (gain) on change in fair value of derivatives		6,999,552			0.03			(26,614,390	)		(0.13	)		(32,505,544	)		(0.16	)		(2,827,756	)		(0.02	)		(11,852,082	)		(0.07	)
Transaction costs – executed A&D		21,017			—			—			—			354,616			—			24,556			—			417,166			—
Tax impact on adjusted items		(2,008,740	)		(0.01	)		6,132,537			0.03			(35,631	)		—			(628,405	)		—			(1,788,248	)		(0.01	)

Adjusted Net Income	$	12,341,668		$	0.06		$	13,428,658		$	0.07		$	21,168,602		$	0.11		$	69,544,726		$	0.35		$	100,474,902		$	0.51

Diluted Weighted-Average Shares Outstanding		200,886,010						200,723,863						197,848,812						200,277,380						195,364,850

Adjusted Net Income per Diluted Share	$	0.06					$	0.07					$	0.11					$	0.35					$	0.51

Reconciliation of Net Income to Adjusted EBITDA

The Company defines “Adjusted EBITDA” as net income plus net interest expense (including interest income and expense), unrealized loss (gain) on change in fair value of derivatives, ceiling test impairment, income tax (benefit) expense, depreciation, depletion and amortization, asset retirement obligation accretion, transaction costs for executed acquisitions and divestitures (A&D), share-based compensation, loss (gain) on disposal of assets, and backing out the effect of other income. Company management believes Adjusted EBITDA is relevant and useful because it helps investors understand Ring’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as Ring calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use.

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Net Income	$	5,657,519		$	33,878,424		$	50,896,479		$	67,470,314		$	104,864,641

Interest expense, net		9,987,731			10,610,539			11,506,908			42,819,864			43,669,577
Unrealized loss (gain) on change in fair value of derivatives		6,999,552			(26,614,390	)		(32,505,544	)		(2,827,756	)		(11,852,082	)
Income tax (benefit) expense		1,803,629			10,087,954			7,862,930			20,440,954			125,242
Depreciation, depletion and amortization		24,548,849			25,662,123			24,556,654			98,702,843			88,610,291
Asset retirement obligation accretion		323,085			354,195			351,786			1,380,298			1,425,686
Transaction costs – executed A&D		21,017			—			354,616			24,556			417,166
Share-based compensation		1,672,320			32,087			2,458,682			5,506,017			8,833,425
Loss (gain) on disposal of assets		—			—			(44,981	)		(89,693	)		87,128
Other income		(80,970	)		—			(72,725	)		(106,656	)		(198,935	)

Adjusted EBITDA	$	50,932,732		$	54,010,932		$	65,364,805		$	233,320,741		$	235,982,139

Adjusted EBITDA Margin		61	%		61	%		65	%		64	%		65	%

Reconciliations of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted EBITDA to Adjusted Free Cash Flow

The Company defines “Adjusted Free Cash Flow” or “AFCF” as Net Cash Provided by Operating Activities less changes in operating assets and liabilities (as reflected on our Statements of Cash Flows), plus transaction costs for executed acquisitions and divestitures (A&D), current income tax expense (benefit), proceeds from divestitures of equipment for oil and natural gas properties, loss (gain) on disposal of assets, and less capital expenditures, credit loss expense, and other income. For this purpose, our definition of capital expenditures includes costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and lease maintenance costs) but excludes acquisition costs of oil and gas properties from third parties that are not included in our capital expenditures guidance provided to investors. Our management believes that Adjusted Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of our current operating activities after the impact of capital expenditures and net interest expense (including interest income and expense, excluding amortization of deferred financing costs) and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. Other companies may use different definitions of Adjusted Free Cash Flow.

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Net Cash Provided by Operating Activities	$	47,279,681		$	51,336,932		$	55,733,207		$	194,423,712		$	198,170,459
Adjustments – Statements of Cash Flows
Changes in operating assets and liabilities		(5,073,676	)		(6,775,740	)		(606,551	)		888,089			(1,180,748	)
Transaction costs – executed A&D		21,017			—			354,616			24,556			417,166
Income tax expense (benefit) – current		71,280			74,899			(192,048	)		401,197			72,213
Capital expenditures		(37,633,168	)		(42,691,163	)		(38,817,080	)		(151,946,171	)		(151,969,735	)
Proceeds from divestiture of equipment for oil and natural gas properties		121,232			—			—			121,232			54,558
Credit loss expense		26,747			(8,817	)		(92,142	)		(160,847	)		(134,007	)
Loss (gain) on disposal of assets		—			—			(44,981	)		—			87,128
Other income		(80,970	)		—			(72,725	)		(106,656	)		(198,935	)

Adjusted Free Cash Flow	$	4,732,143		$	1,936,111		$	16,262,296		$	43,645,112		$	45,318,099

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Adjusted EBITDA	$	50,932,732		$	54,010,932		$	65,364,805		$	233,320,741		$	235,982,139

Net interest expense (excluding amortization of deferred financing costs)		(8,688,653	)		(9,383,658	)		(10,285,429	)		(37,850,690	)		(38,748,863	)
Capital expenditures		(37,633,168	)		(42,691,163	)		(38,817,080	)		(151,946,171	)		(151,969,735	)
Proceeds from divestiture of equipment for oil and natural gas properties		121,232			—			—			121,232			54,558

Adjusted Free Cash Flow	$	4,732,143		$	1,936,111		$	16,262,296		$	43,645,112		$	45,318,099

Reconciliation of Net Cash Provided by Operating Activities to Adjusted Cash Flow from Operations

The Company defines “Adjusted Cash Flow from Operations” or “ACFFO” as Net Cash Provided by Operating Activities, as reflected in our Statements of Cash Flows, less the changes in operating assets and liabilities, which includes accounts receivable, inventory, prepaid expenses and other assets, accounts payable, and settlement of asset retirement obligations, which are subject to variation due to the nature of the Company’s operations. Accordingly, the Company believes this non-GAAP measure is useful to investors because it is used often in its industry and allows investors to compare this metric to other companies in its peer group as well as the E&P sector.

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,		December 31,
		2024			2024			2023			2024		2023

Net Cash Provided by Operating Activities	$	47,279,681		$	51,336,932		$	55,733,207		$	194,423,712	$	198,170,459

Changes in operating assets and liabilities		(5,073,676	)		(6,775,740	)		(606,551	)		888,089		(1,180,748	)

Adjusted Cash Flow from Operations	$	42,206,005		$	44,561,192		$	55,126,656		$	195,311,801	$	196,989,711

Reconciliation of General and Administrative Expense (G&A) to G&A Excluding Share-Based Compensation and Transaction Costs

The following table presents a reconciliation of General and Administrative Expense (G&A), a GAAP measure, to G&A excluding share-based compensation, and G&A excluding share-based compensation and transaction costs for executed acquisitions and divestitures (A&D).

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2024		2024		2023		2024		2023

General and administrative expense (G&A)	$	8,035,977	$	6,421,567	$	8,164,799	$	29,640,300	$	29,188,755
Shared-based compensation		1,672,320		32,087		2,458,682		5,506,017		8,833,425
G&A excluding share-based compensation		6,363,657		6,389,480		5,706,117		24,134,283		20,355,330
Transaction costs – executed A&D		21,017		—		354,616		24,556		417,166
G&A excluding share-based compensation and transaction costs	$	6,342,640	$	6,389,480	$	5,351,501	$	24,109,727	$	19,938,164

Calculation of Leverage Ratio

“Leverage” or the “Leverage Ratio” is calculated under our existing senior revolving credit facility and means as of any date, the ratio of (i) our consolidated total debt as of such date to (ii) our Consolidated EBITDAX for the four consecutive fiscal quarters ending on or immediately prior to such date for which financial statements are required to have been delivered under our existing senior revolving credit facility.

The Company defines “Consolidated EBITDAX” in accordance with our existing senior revolving credit facility that means for any period an amount equal to the sum of (i) consolidated net income (loss) for such period plus (ii) to the extent deducted in determining consolidated net income for such period, and without duplication, (A) consolidated interest expense, (B) income tax expense determined on a consolidated basis in accordance with GAAP, (C) depreciation, depletion and amortization determined on a consolidated basis in accordance with GAAP, (D) exploration expenses determined on a consolidated basis in accordance with GAAP, and (E) all other non-cash charges acceptable to our senior revolving credit facility administrative agent determined on a consolidated basis in accordance with GAAP, in each case for such period minus (iii) all noncash income added to consolidated net income (loss) for such period; provided that, for purposes of calculating compliance with the financial covenants, to the extent that during such period we shall have consummated an acquisition permitted by the credit facility or any sale, transfer or other disposition of any property or assets permitted by the senior revolving credit facility, Consolidated EBITDAX will be calculated on a pro forma basis with respect to the property or assets so acquired or disposed of.

Also set forth in our existing senior revolving credit facility is the maximum permitted Leverage Ratio of 3.00. The following table shows the leverage ratio calculation for the Company’s most recent fiscal quarter.

	(Unaudited)
	Three Months Ended
	March 31,			June 30,			September 30,			December 31,		Last Four Quarters
		2024			2024			2024			2024	Last Four Quarters
Consolidated EBITDAX Calculation:
Net Income (Loss)	$	5,515,377		$	22,418,994		$	33,878,424		$	5,657,519	$	67,470,314
Plus: Consolidated interest expense		11,420,400			10,801,194			10,610,539			9,987,731		42,819,864
Plus: Income tax provision (benefit)		1,728,886			6,820,485			10,087,954			1,803,629		20,440,954
Plus: Depreciation, depletion and amortization		23,792,450			24,699,421			25,662,123			24,548,849		98,702,843
Plus: non-cash charges acceptable to Administrative Agent		19,627,646			1,664,064			(26,228,108	)		8,994,957		4,058,559
Consolidated EBITDAX	$	62,084,759		$	66,404,158		$	54,010,932		$	50,992,685	$	233,492,534
Plus: Pro Forma Acquired Consolidated EBITDAX	$	—		$	—		$	—		$	—	$	—
Less: Pro Forma Divested Consolidated EBITDAX		(124,084	)		(469,376	)		(600,460	)		77,819		(1,116,101	)
Pro Forma Consolidated EBITDAX	$	61,960,675		$	65,934,782		$	53,410,472		$	51,070,504	$	232,376,433

Non-cash charges acceptable to Administrative Agent:
Asset retirement obligation accretion	$	350,834		$	352,184		$	354,195		$	323,085
Unrealized loss (gain) on derivative assets		17,552,980			(765,898	)		(26,614,390	)		6,999,552
Share-based compensation		1,723,832			2,077,778			32,087			1,672,320
Total non-cash charges acceptable to Administrative Agent	$	19,627,646		$	1,664,064		$	(26,228,108	)	$	8,994,957

	As of
	December 31,
		2024
Leverage Ratio Covenant:
Revolving line of credit	$	385,000,000
Pro Forma Consolidated EBITDAX		232,376,433
Leverage Ratio		1.66
Maximum Allowed		≤ 3.00	x

Calculation of Current Ratio

The “Current Ratio” is calculated under our existing senior revolving credit facility and means as of any date, the ratio of (i) our Current Assets as of such date to (ii) our Current Liabilities as of such date. Based on its credit agreement, the Company defines Current Assets as all current assets, excluding non-cash assets under Accounting Standards Codification (“ASC”) 815, plus the unused line of credit. The Company’s non-cash current assets include the derivative asset marked to market value. Based on its credit agreement, the Company defines Current Liabilities as all liabilities, in accordance with GAAP, which are classified as current liabilities, including all indebtedness payable on demand or within one year, all accruals for federal or other taxes payable within such year, but excluding current portion of long-term debt required to be paid within one year, the aggregate outstanding principal balance and non-cash obligations under ASC 815.

Also set forth in our existing senior revolving credit facility is the minimum permitted Current Ratio of 1.00. The following table shows the current ratio calculation for the Company’s most recent fiscal quarter.

	As of
	December 31,
	2024
Current Assets	50,448,092
Less: Current derivative assets	5,497,057
Current Assets per Covenant	44,951,035
Revolver Availability (Facility less debt less LCs)	214,965,000
Current Assets per Covenant	259,916,035

Current Liabilities	105,037,187
Less: Current financing lease liability	906,119
Less: Current operating lease liability	648,204
Less: Current derivative liabilities	6,410,547
Current Liabilities per Covenant	97,072,317

Current Ratio	2.68
Minimum Allowed	> or = 1.00	x

Calculation of Cash Return on Capital Employed

The Company defines “Return on Capital Employed” or “CROCE” as Adjusted Cash Flow from Operations divided by average debt and shareholder equity for the period. Management believes that CROCE is useful to investors as a performance measure when comparing our profitability and the efficiency with which management has employed capital over time relative to other companies. CROCE is not considered to be an alternative to net income reported in accordance with GAAP.

CROCE (Cash Return on Capital Employed):	As of and for the
	twelve months ended
	December 31,			December 31,			December 31,
		2024			2023			2022

Total long term debt (i.e. revolving line of credit)	$	385,000,000		$	425,000,000		$	415,000,000
Total stockholders’ equity	$	858,639,982		$	786,582,900		$	661,103,391

Average debt	$	405,000,000		$	420,000,000		$	352,500,000
Average stockholders’ equity		822,611,441			723,843,146			480,863,799
Average debt and stockholders’ equity		1,227,611,441			1,143,843,146			833,363,799

Net Cash Provided by Operating Activities	$	194,423,712		$	198,170,459		$	196,976,729
Less change in WC (Working Capital)		(888,089	)		1,180,748			24,091,577
Adjusted Cash Flows From Operations (ACFFO)	$	195,311,801		$	196,989,711		$	172,885,152

CROCE (ACFFO)/(Average D+E)		15.9	%		17.2	%		20.7	%

All-In Cash Operating Costs

The Company defines All-In Cash Operating Costs, a non-GAAP financial measure, as “all in cash” costs which includes lease operating expenses, G&A costs excluding share-based compensation, net interest expense (including interest income and expense, excluding amortization of deferred financing costs), workovers and other operating expenses, production taxes, ad valorem taxes, and gathering/transportation costs. Management believes that this metric provides useful additional information to investors to assess the Company’s operating costs in comparison to its peers, which may vary from company to company.

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2024		2024		2023		2024		2023
All-In Cash Operating Costs:
Lease operating expenses (including workovers)		20,326,216		20,315,282		18,732,082		78,310,949		70,158,227
G&A excluding share-based compensation		6,363,657		6,389,480		5,706,117		24,134,283		20,355,330
Net interest expense (excluding amortization of deferred financing costs)		8,688,653		9,383,658		10,285,429		37,850,690		38,748,863
Operating lease expense		175,090		175,091		175,090		700,362		541,801
Oil and natural gas production taxes		3,857,147		4,203,851		4,961,768		16,116,565		18,135,336
Ad valorem taxes		2,421,595		2,164,562		1,637,722		8,069,064		6,757,841
Gathering, transportation and processing costs		130,230		102,420		464,558		506,333		457,573
All-in cash operating costs		41,962,588		42,734,344		41,962,766		165,688,246		155,154,971

Boe		1,808,493		1,849,934		1,784,490		7,191,054		6,613,321

All-in cash operating costs per Boe	$	23.20	$	23.10	$	23.52	$	23.04	$	23.46

Cash Operating Margin

The Company defines Cash Operating Margin, a non-GAAP financial measure, as realized revenues per Boe less “all-in cash” operating costs per Boe. Management believes that this metric provides useful additional information to investors to assess the Company’s operating margins in comparison to its peers, which may vary from company to company.

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2024		2024		2023		2024		2023
Cash Operating Margin
Realized revenues per Boe	$	46.14	$	48.24	$	56.01	$	50.94	$	54.60
All-in cash operating costs per Boe	$	23.20	$	23.10	$	23.52	$	23.04	$	23.46
Cash Operating Margin per Boe	$	22.94	$	25.14	$	32.49	$	27.90	$	31.14

¹ Non-GAAP financial measure. Please see “Non-GAAP Information” at the end of this release for details and reconciliations of GAAP to Non-GAAP.
² 2025 outlook includes the assets to be acquired in the Lime Rock Acquisition, with an anticipated closing date before the end of Q1 2025.

The MIL Network –

March 6, 2025

MIL-OSI: Arq Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Delivered 10% YoY growth in FY 2024 revenue driven by PAC business turnaround and 7^thstraight quarter of double-digit YoY ASP growth

Grew FY 2024 gross margins by approximately 410 bps YoY to 36.2% and achieved 3^rdconsecutive quarter of positive Adjusted EBITDA, highlighting sustained foundational PAC business improvement

Exited 2024 with a stronger financial position, successfully completing a $30 million ABL facility which lowers financing costs, increases capacity, and enhances liquidity

Development of transformational GAC facility continues; first production anticipated prior to quarter end in line with ramp up to 25 million pounds nameplate capacity in H2 2025

GREENWOOD VILLAGE, Colo., March 05, 2025 (GLOBE NEWSWIRE) — Arq, Inc. (NASDAQ: ARQ) (the “Company” or “Arq”), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced its financial and operating results for the quarter and year ended December 31, 2024.

Financial Highlights

Generated revenue of $109.0 million in FY 2024 ($27.0 million in Q4 2024), up 10% over the prior year, driven largely by higher Average Sales Price (“ASP”), and positive changes in product mix
Increased ASP in Q4 2024 by approximately 14% over the prior year period, reflecting the 7^th consecutive quarter of double-digit YoY percentage growth in ASP
All powder activated carbon (“PAC”) contracts are now net cash producers following the successful resolution of all negative margin agreements as of December 31, 2024
Improved FY 2024 gross margin to 36.2% in FY 2024, up approximately 410 basis points vs. FY 2023, driven by higher revenue, continued focus on profitability over volume, and ongoing operational cost management
Gross margin in Q4 2024 of 36.3% vs. 49.8% in Q4 2023 – prior quarter included a $4.7 million take-or-pay benefit and other non-recurring items vs. $1.6 million in Q4 2024. Q4 2024 was otherwise largely in-line with last year’s performance despite two brief but unplanned outages at the Red River plant
Reported Net loss of ($5.1) million in FY 2024, reflecting a significant improvement over the prior year period Net loss of ($12.2) million; Q4 2024 Net loss of ($1.3) million vs. Net income of $3.3 million in Q4 2023
Adjusted EBITDA of $7.7 million in FY 2024 vs. Adjusted EBITDA loss of ($2.6) million in the prior year⁽¹⁾; Adjusted EBITDA of $3.3 million in Q4 2024 vs. $7.2 million in the prior year period⁽¹⁾
Announced successful closing of a $30 million asset backed lending (“ABL”) facility, enhancing financial flexibility and reducing our cost of capital
Exited 2024 with cash and restricted cash of $22.2 million, including $8.7 million restricted cash
Capital expenditures for FY 2024 totaled $85.2 million, including $80.0 million growth capital expenditures associated with Red River Phase I development

⁽¹⁾ Adjusted EBITDA is a non-GAAP financial measure. Please refer to the paragraph titled “Non-GAAP Measures” for the definitions of non-GAAP financial measures and reconciliations to GAAP measures included in this press release.

Recent Business Highlights

Construction at Red River facility complete with commissioning ongoing and first production of granular activated carbon (“GAC”) at Red River expected by end of Q1 2025; on target to achieve first deliveries in Q1 2025
Ramp up of Red River GAC production anticipated to run into H2 2025; expect to achieve full run rate capacity of 25 million pounds in H2 2025
Approximately 16 million pounds of our 25 million pound per year nameplate capacity contracted
In negotiations to contract remaining capacity at Red River. Multiple in-situ pilot tests are underway with customers, a required step before finalizing contracts, and in-line with the expected ramp-up schedule
Potential to increase Red River’s 25 million pound per year nameplate capacity by 10-20% still targeted; timing of upside production run-rate expected to be defined once nameplate capacity is achieved

Management Commentary

“These results reinforce the durability of our transformation within the foundational PAC business,” said Bob Rasmus, CEO of Arq. “Our 2024 results show a business which has been successfully turned around into a cash flow contributor. The annualized performance of the business has materially improved and is more profitable. With our third consecutive quarter of positive Adjusted EBITDA, the direction of travel is extremely positive. I also believe this is a business which can still be enhanced further.”

Mr. Rasmus continued, “The capex overrun we experienced in Q4 was extremely frustrating, and while we actively look for ways to mitigate this increase, we remain confident that its impact on our long-term profitability and returns profile should be negligible.”

“The imminent start of GAC production is of course a major milestone for us and will represent a huge achievement for the whole team,” added Mr. Rasmus. “While we want to remain cautious on the duration of our ramp-up to nameplate capacity, there should be no doubt we will be trying to get there as quickly as possible. By H2 2025 we believe we will have a solid, sustainably profitable PAC business being complimented by a high growth GAC business, representing our springboard to future growth.”

Full Year 2024 Results

Revenues totaled $109.0 million for full year 2024, compared to $99.2 million in the prior year. The revenue increase was primarily driven by improved ASP and product diversification into higher value end-markets.

Cost of revenues totaled $69.5 million for full year 2024, compared to $67.3 million in the prior year. While total costs increased year over year, costs as a percentage of total revenue were down. This decrease in costs as a percentage of revenue was related to a decrease in the cost to manufacture our products, which primarily resulted from decreased variable production costs on lower production volumes during 2024.

Gross margin was 36.2% for full year 2024, compared to 32.1% in the prior year. The increase was driven by higher revenue as detailed above, as well as cost reductions.

Other operating expenses were $41.4 million for full year 2024, compared to $45.2 million in the prior year. The reduction was mainly driven by expenses incurred during 2023 relating to the acquisition of Arq Limited (“Legacy Arq”) (the “Arq Acquisition”) that did not occur in 2024.

Operating loss totaled ($2.0) million for full year 2024, compared to an operating loss of ($13.3) million in the prior year. The reduction in loss was mainly driven by the factors referenced above.

Interest expense was $3.3 million for full year 2024, compared to $3.0 million in the prior year. The increase was primarily driven by interest expenses related to the $10 million term loan with CF Global (the “CFG Loan”) of $2.3 million and $2.0 million in 2024 and 2023, respectively. The CFG Loan had a higher principal balance from the accrual of interest payable (PIK) upon the termination date of the CFG Loan, which was paid in December 2024.

Income tax benefit was $0.2 million for full year 2024, compared to an income tax expense of $0.2 million in the prior year.

Net loss was ($5.1) million, or ($0.14) per diluted share for full year 2024, compared to Net loss of ($12.2) million, or ($0.42) per diluted share in the prior year. The reduction in net loss was driven by higher revenues and a reduction in costs.

Adjusted EBITDA was $7.7 million for full year 2024, compared to an Adjusted EBITDA loss of ($2.6) million in the prior year. The increase was mainly driven by our continued focus on increasing revenues while driving costs down. Additionally, an addback of Adjusted EBITDA during 2024 related to Loss on extinguishment of debt of $1.4 million, related to our repayment of the CFG Loan in December 2024 led to the increase. See the note below regarding the use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

Fourth Quarter 2024 Results

Revenue totaled $27.0 million for Q4 2024, reflecting a decrease of 4% compared to $28.1 million in the prior year period. The reduction was driven predominantly by the one-off benefits delivered in Q4 2023 as a result of take-or-pay enforcement totaling $4.7 million vs. $1.6 million in the fourth quarter of 2024. Excluding these one-off items, revenue was up YoY. ASP for the fourth quarter of 2024 were up approximately 14% compared to prior year period, marking the 7^th consecutive quarter of double-digit year-over-year percentage growth in ASP.

Costs of revenue totaled $17.2 million for the fourth quarter of 2024, an increase of approximately 22% compared to $14.1 million in the prior year period.

Gross margin reduced to 36.3% for the fourth quarter of 2024, compared to 49.8% in the prior year period. The reduction in gross margin was driven by higher non-recurring revenues in Q4 2023 driven primarily by $3.1 million of additional take or pay enforcement in Q4 2023. Excluding this, Q4 2024 was largely in-line despite two brief but unplanned outages at our Red River plant.

Selling, general and administrative expenses totaled $6.0 million in Q4 2024, compared to $6.5 million in the prior year period. The reduction of approximately $0.5 million or 8% was primarily driven by a reduction in payroll and benefits as well as legal and consulting fees as the Company incurred incremental fees related to the Arq Acquisition in 2023.

Research and development costs totaled $0.7 million in Q4 2024, compared to $1.2 million in the prior year period. This reduction was primarily due to the Company performing product qualification testing in the prior year period with potential lead-adopters as part of its ongoing GAC contracting process in 2023.

Operating income was $0.4 million for the fourth quarter of 2024, compared to an operating income of $3.1 million in the prior year period. The reduction was mainly driven by the factors referenced above.

Net loss was ($1.3) million in the fourth quarter of 2024, or ($0.03) per diluted share, compared to a net income of $3.3 million, or $0.10 per diluted share, in the prior year period.

Adjusted EBITDA was $3.3 million for the fourth quarter of 2024, compared to Adjusted EBITDA of $7.2 million in the prior year period. The reduction was primarily driven by the significant one-off items discussed above. See note below regarding the use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

Capex and Balance Sheet

Capital expenditures totaled $85.2 million for full year 2024, compared to $27.5 million in the prior year. The increase vs. the prior year was driven by the ongoing expansion of our Red River and Corbin facilities. The increase in total 2024 capex from previous guidance of $60 – $70 million was primarily driven by several factors, including $4 – $5 million related to contractor errors associated with small-bore piping needs, roughly $3 – $4 million related to maintaining a timely completion, and approximately $2 million related to the need for additional external professional services.

The Company raised approximately $26.7 million of net equity proceeds in its September 2024 underwritten public offering of common stock, which, combined with approximately $15 million raised in a private placement of common stock in May 2024, resulted in year-to-date net equity proceeds raised through Q4 2024 of approximately $41.6 million.

In December 2024, the Company closed a $30 million ABL credit facility (the “ABL Facility”) with MidCap Financial, a leading commercial finance company focused on middle market transactions. Total available borrowing capacity for the ABL Facility is determined by a borrowing base calculation based on a certain percentage of eligible accounts receivable and inventory.

Initial drawdown from the ABL Facility ($13.8 million as of December 31, 2024) was utilized to refinance Arq’s outstanding CFG Loan. Going forward, the Company expects that proceeds from the ABL Facility will be used to finance ongoing working capital requirements and potential capital expenditures related to the Company’s strategic growth investment at its Red River plant, as well as to support general corporate purposes.

Cash as of December 31, 2024, including $8.7 million of restricted cash, totaled $22.2 million, compared to $54.2 million as of December 31, 2023. The reduction was largely driven by increased expenditures relating to the Red River GAC expansion.

Total debt, inclusive of financing leases, as of December 31, 2024, totaled $24.8 million compared to $20.9 million as of December 31, 2023. The increase was driven by closing the ABL Facility.

Conference Call and Webcast Information

Arq will host its Q4 2024 earnings conference call on March 6, 2025, at 8:30 a.m. ET. The live webcast can be accessed through the Investor Resources section of Arq’s website at www.arq.com. Interested parties may participate in the conference call by registering at https://www.webcast-eqs.com/arq20250306. Alternatively, the live conference call may be accessed by dialing (877) 407-0890 or (201) 389-0918 and referencing Arq. An investor presentation will also be available in the Investor Resources section before the call begins.

A replay of the event will be made available shortly after the event and accessible via the same webcast link referenced above. Alternatively, the replay may be accessed by dialing (877) 660-6853 or (201) 612-7415 and entering Access ID 13751420. The dial-in replay will expire after March 13, 2025.

About Arq

Arq (NASDAQ: ARQ) is a diversified, environmental technology company with products that enable a cleaner and safer planet while actively reducing our environmental impact. As the only vertically integrated producer of activated carbon products in North America, we deliver a reliable domestic supply of innovative, hard-to-source, high-demand products. We apply our extensive expertise to develop groundbreaking solutions to remove harmful chemicals and pollutants from water, land and air. Learn more at: www.arq.com.

Caution on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a “safe harbor” for such statements in certain circumstances. When used in this press release, the words “can,” “will,” “may,” “intends,” “expects,” “continuing,” “believes,” similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. All statements that address activities, events or developments that the Company intends, expects or believes may occur in the future are forward-looking statements. These forward-looking statements include, but are not limited to, statements or expectations regarding: the anticipating timing of the completion of commissioning of the GAC Facility, ramp-up to full nameplate capacity at our Red River facility, and commercial production of our GAC products; the anticipated effects from fluctuations in the pricing of our AC products; expected supply and demand for our AC products and services, including our GAC products; the seasonal impact on our customers and their demand for our products; the ability to continue to successfully integrate Legacy Arq’s business and recognize the benefits and synergies from the Arq Acquisition; the ability to continue to develop and utilize Legacy Arq’s products and technology and the anticipated timing for bringing such products to market; our ability to access new markets for our GAC and other products; any future plant capacity expansions or site development projects and our ability to finance any such projects; the effectiveness of our technologies and the benefits they provide; the timing of awards of, and work and related testing under, our contracts and agreements and their value; probability of any loss occurring with respect to certain guarantees made by Tinuum Group; the timing and amounts of or changes in future revenue, funding for our business and projects, margins, expenses, earnings, tax rates, cash flows, royalty payment obligations, working capital, liquidity and other financial and accounting measures; the performance of obligations secured by our surety bonds; the amount and timing of future capital expenditures needed to fund our business plan; the impact of capital expenditure overruns on our business; awards of patents designed to protect our proprietary technologies both in the U.S. and other countries; the adoption and scope of regulations to control certain chemicals in drinking water and other environmental concerns and the impact of such regulations on our customers’ and our businesses, including any increase or decrease in sales of our AC products resulting from such regulations; the impact of adverse global macroeconomic conditions, including rising interest rates, recession fears and inflationary pressures, and geopolitical events or conflicts; opportunities to effectively provide solutions to our current and future customers to comply with regulations, improve efficiency, lower costs and maintain reliability; and the impact of prices of competing power generation sources such as natural gas and renewable energy on demand for our products. These forward-looking statements included in this press release involve risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, the timing and scope of new and pending regulations and any legal challenges to or extensions of compliance dates of them; the U.S. government’s failure to promulgate new regulations or enforce existing regulations that benefit our business; changes in laws and regulations, accounting rules, prices, economic conditions and market demand; availability, cost of and demand for alternative energy sources and other technologies and their impact on coal-fired power generation in the U.S.; technical, start up and operational difficulties; competition within the industries in which the Company operates; risks associated with our debt financing; our inability to effectively and efficiently commercialize new products, including our GAC products; our inability to effectively manage commissioning and startup of the GAC facility at our Red River plant; disruptions at any of our facilities, including by natural disasters or extreme weather; risks related to our information technology systems, including the risk of cyberattacks on our networks; failure to protect our intellectual property from infringement or claims that we have infringed on the intellectual property of others; our inability to obtain future financing or financing on terms that are favorable to us; our inability to ramp up our operations to effectively address recent and expected growth in our business; loss of key personnel; ongoing effects of the inflation and macroeconomic uncertainty, including from the new U.S. presidential administration, increased domestic and international tariffs, lingering effects of the pandemic and armed conflicts around the world, and such uncertainty’s effect on market demand and input costs; availability of materials and equipment for our business; intellectual property infringement claims from third parties; pending litigation; factors relating to our business strategy, goals and expectations concerning the Arq Acquisition; our ability to maintain relationships with customers, suppliers and others with whom the Company does business and meet supply requirements; our results of operations and business generally; risks related to diverting management’s attention from our ongoing business operations; costs related to the ongoing manufacturing of our products, including our GAC products; opportunities for additional sales of our AC products and end-market diversification; the timing and scope of new and pending regulations, executive orders and any legal challenges to or extensions of compliance dates of them; the rate of coal-fired power generation in the U.S.; the timing and cost of any future capital expenditures and the resultant impact to our liquidity and cash flows; and the other risk factors described in our filings with the SEC, including our most recent Annual Report on Form 10-K. You are cautioned not to place undue reliance on the forward-looking statements and to consult filings we have made and will make with the SEC for additional discussion concerning risks and uncertainties that may apply to our business and the ownership of our securities. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth in this press release. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise. The forward-looking statements speak only as to the date of this press release, and we disclaim any duty to update such statements unless required by law.

Source: Arq, Inc.

Investor Contact:
Anthony Nathan, Arq
Marc Silverberg, ICR
investors@arq.com


Arq, Inc. and Subsidiaries Consolidated Balance Sheets

	As of December 31,
(in thousands, except share data)		2024			2023
ASSETS
Current assets:
Cash	$	13,516		$	45,361
Receivables, net		14,876			16,192
Inventories, net		19,314			19,693
Prepaid expenses and other current assets		4,650			5,215
Total current assets		52,356			86,461
Restricted cash, long-term		8,719			8,792
Property, plant and equipment, net of accumulated depreciation of $26,619 and $19,293, respectively		178,564			94,649
Other long-term assets, net		44,729			45,600
Total Assets	$	284,368		$	235,502
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	21,017		$	14,603
Revolving credit facility		13,828			—
Current portion of long-term debt obligations		1,624			2,653
Other current liabilities		8,184			5,792
Total current liabilities		44,653			23,048
Long-term debt obligations, net of current portion		9,370			18,274
Other long-term liabilities		13,069			15,780
Total Liabilities		67,092			57,102
Commitments and contingencies
Stockholders’ equity:
Preferred stock: par value of $0.001 per share, 50,000,000 shares authorized, none issued or outstanding		—			—
Common stock: par value of $0.001 per share, 100,000,000 shares authorized, 46,639,930 and 37,791,084 shares issued and 42,021,784 and 33,172,938 shares outstanding at December 31, 2024 and 2023, respectively		47			38
Treasury stock, at cost: 4,618,146 and 4,618,146 shares as of December 31, 2024 and 2023, respectively		(47,692	)		(47,692	)
Additional paid-in capital		198,487			154,511
Retained earnings		66,434			71,543
Total Stockholders’ Equity		217,276			178,400
Total Liabilities and Stockholders’ Equity	$	284,368		$	235,502


Arq, Inc. and Subsidiaries Consolidated Statements of Operations

	Three Months Ended December 31,						Years Ended December 31,
(in thousands, except per share data)		2024			2023			2024			2023
	(unaudited)
Revenue	$	27,040		$	28,104		$	108,959		$	99,183

Cost of revenue, exclusive of depreciation and amortization		17,236			14,105			69,515			67,323

Operating expenses:
Selling, general and administrative		5,960			6,495			28,695			34,069
Research and development		709			1,169			4,050			3,314
Depreciation, amortization, depletion and accretion		2,504			3,267			8,594			10,543
Loss (gain) on sale of assets		218			(36	)		64			(2,731	)
Total operating expenses		9,391			10,895			41,403			45,195
Operating income (loss)		413			3,104			(1,959	)		(13,335	)
Other (expense) income:
Earnings from equity method investments		—			111			127			1,623
Interest expense		(831	)		(859	)		(3,257	)		(3,014	)
Loss on extinguishment of debt		(1,422	)		—			(1,422	)		—
Other		307			1,120			1,238			2,630
Total other (expense) income		(1,946	)		372			(3,314	)		1,239
(Loss) income before income taxes		(1,533	)		3,476			(5,273	)		(12,096	)
Income tax (benefit) expense		(194	)		186			(164	)		153
Net (loss) income	$	(1,339	)	$	3,290		$	(5,109	)	$	(12,249	)
(Loss) income per common share:
Basic	$	(0.03	)	$	0.10		$	(0.14	)	$	(0.42	)
Diluted	$	(0.03	)	$	0.10		$	(0.14	)	$	(0.42	)
Weighted-average number of common shares outstanding:
Basic		41,275			32,367			36,051			29,104
Diluted		41,275			32,952			36,051			29,104


Arq, Inc. and Subsidiaries Consolidated Statements of Cash Flows

	Years Ended December 31,
(in thousands)		2024			2023
Cash flows from operating activities
Net loss	$	(5,109	)	$	(12,249	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, amortization, depletion and accretion		8,594			10,543
Stock-based compensation expense		2,715			2,648
Operating lease expense		2,004			2,757
Loss from extinguishment of debt		1,422			—
Amortization of debt discount and debt issuance costs		601			546
Loss (gain) on sale of assets		64			(2,731	)
Earnings from equity method investments		(127	)		(1,623	)
Other non-cash items, net		37			(75	)
Changes in operating assets and liabilities:
Receivables and related party receivables		1,316			(2,264	)
Prepaid expenses and other assets		1,166			4,777
Inventories, net		1,636			(2,571	)
Other long-term assets, net		(2,166	)		(4,762	)
Accounts payable and accrued expenses		216			(12,061	)
Other current liabilities		1,144			(184	)
Operating lease liabilities		(1,272	)		(168	)
Other long-term liabilities		(1,764	)		764
Net cash provided by (used in) operating activities		10,477			(16,653	)
Cash flows from investing activities
Acquisition of property, plant, equipment and intangible assets, net		(85,170	)		(27,516	)
Acquisition of mine development costs		(181	)		(2,690	)
Proceeds from sale of property and equipment		150			—
Distributions from equity method investees in excess of cumulative earnings		127			1,623
Cash and restricted cash acquired in business acquisition		—			2,225
Payment for disposal of Marshall Mine, LLC		—			(2,177	)
Net cash used in investing activities	$	(85,074	)	$	(28,535	)
Cash flows from financing activities
Net proceeds from common stock issued in public offering	$	26,654		$	—
Net proceeds from common stock issued in private placement transactions		14,951			15,220
Borrowings on revolving credit facility		13,828			—
Net proceeds from common stock issued to related party		800			1,000
Principal payments on notes payable		(10,544	)		(473	)
Repurchase of common stock to satisfy tax withholdings		(1,135	)		(230	)
Principal payments on finance lease obligations		(1,022	)		(1,130	)
Payment of debt issuance costs		(633	)		—
Payment of debt extinguishment costs		(220	)		—
Net proceeds from CFG Loan, related party, net of discount and issuance costs		—			8,522
Net cash provided by financing activities		42,679			22,909
Decrease in Cash and Restricted Cash		(31,918	)		(22,279	)
Cash and Restricted Cash, beginning of year		54,153			76,432
Cash and Restricted Cash, end of year	$	22,235		$	54,153

Supplemental disclosure of cash flow information:
Cash paid for interest	$	2,017		$	1,727
Cash received for income taxes	$	(452	)	$	(1,697	)
Supplemental disclosure of non-cash investing and financing activities:
Change in accrued purchases for property and equipment	$	6,198		$	914
Purchase of property and equipment through note payable	$	1,004		$	—
Equity issued as consideration for acquisition of business	$	—		$	31,206
Paid-in-kind dividend on Series A Preferred Stock	$	—		$	157

Note on Non-GAAP Financial Measures

To supplement our financial information presented in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”), we provide certain supplemental financial measures, including EBITDA and Adjusted EBITDA, which are measurements that are not calculated in accordance with U.S. GAAP. EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA reduced by the non-cash impact of equity earnings from equity method investments and other non-cash gains, increased by cash distributions from equity method investments, other non-cash losses and non-recurring costs and fees. EBITDA and Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) in accordance with U.S. GAAP as a measure of performance. See below for a reconciliation from net income (loss), the nearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.

We believe that the EBITDA and Adjusted EBITDA measures are less susceptible to variances that affect our operating performance. We include these non-GAAP measures because management uses them in the evaluation of our operating performance, and believe they help to facilitate comparison of operating results between periods. We believe the non-GAAP measures provide useful information to both management and users of the financial statements by excluding certain expenses, gains, and losses which can vary widely across different industries or among companies within the same industry and may not be indicative of core operating results and business outlook.

EBITDA and Adjusted EBITDA:

The following table reconciles net income (loss), our most directly comparable as-reported financial measure calculated in accordance with U.S. GAAP, to EBITDA and Adjusted EBITDA (Adjusted EBITDA loss).


Arq, Inc. and Subsidiaries Reconciliation of Net income (loss) to EBITDA and Adjusted EBITDA (Adjusted EBITDA loss) *(Unaudited)*

	Three Months Ended									Years Ended
	September 30,			December 31,						December 31,
(in thousands)		2024			2024			2023			2024			2023
Net income (loss)	$	1,617		$	(1,339	)	$	3,290		$	(5,109	)	$	(12,249	)
Depreciation, amortization, depletion and accretion		2,716			2,504			3,267			8,594			10,543
Amortization of Upfront Customer Consideration		127			127			127			508			508
Interest expense, net		600			516			346			2,154			1,168
Income tax (benefit) expense		—			(194	)		186			(164	)		153
EBITDA		5,060			1,614			7,216			5,983			123
Cash distributions from equity method investees		127			—			111			127			1,623
Equity earnings		(127	)		—			(111	)		(127	)		(1,623	)
Loss on extinguishment of debt		—			1,422			—			1,422			—
(Gain) loss on sale of assets		(154	)		218			—			64			(2,695	)
Gain on change in estimate, asset retirement obligation		—			—			(37	)		—			(37	)
Financing costs		228			47			—			275			—
Adjusted EBITDA (Adjusted EBITDA loss)	$	5,134		$	3,301		$	7,179		$	7,744		$	(2,609	)

The MIL Network –

March 6, 2025

MIL-OSI: ArrowMark Financial Corp. Announces Special Distribution of $0.10 and Regular Cash Distribution of $0.45 per Share for the First Quarter 2025

Source: GlobeNewswire (MIL-OSI)

DENVER, March 05, 2025 (GLOBE NEWSWIRE) — ArrowMark Financial Corp. (Nasdaq: BANX) (“ArrowMark Financial” or the “Company”), an SEC registered closed-end management investment company, today announced that its Board of Directors has declared a special cash distribution of $0.10 per share generated from excess income, and a regular cash distribution of $0.45 per share for the first quarter 2025. The total distribution of $0.55 per share will be payable on March 27, 2025 to shareholders of record on March 20, 2025.

“We are very pleased to announce a special distribution for Q1 2025 along with the regular quarterly distribution of $0.45. We believe this distribution reflects the Fund’s ability to consistently over-earn its declared quarterly distribution rate. ArrowMark Financial is committed to providing consistent risk-adjusted returns while maintaining focus on capital preservation and income generation for our shareholders,” said Chairman & CEO Sanjai Bhonsle.

About ArrowMark Financial Corp.

ArrowMark Financial Corp. is an SEC registered non-diversified, closed-end fund listed on the NASDAQ Global Select Market under the symbol “BANX.” Its investment objective is to provide shareholders with current income. The Fund pursues its objective by investing primarily in regulatory capital securities of financial institutions. ArrowMark Financial is managed by ArrowMark Asset Management, LLC. To learn more, visit ir.arrowmarkfinancialcorp.com or contact the Fund’s secondary market service agent at 877-855-3434.

Disclaimer and Risk Factors:

There is no assurance that ArrowMark Financial will achieve its investment objective. ArrowMark Financial is subject to numerous risks, including investment and market risks, management risk, income and interest rate risks, banking industry risks, preferred stock risk, convertible securities risk, debt securities risk, liquidity risk, valuation risk, leverage risk, non-diversification risk, credit and counterparty risks, market at a discount from net asset value risk and market disruption risk. Shares of closed-end investment companies may trade above (a premium) or below (a discount) their net asset value. Shares of ArrowMark Financial may not be appropriate for all investors. Investors should review and consider carefully ArrowMark Financial’s investment objective, risks, charges and expenses. Past performance does not guarantee future results.

The Annual Report, Semi-Annual Report and other regulatory filings of the Fund with the SEC are accessible on the SEC’s website at www.sec.gov and on the Fund’s website at ir.arrowmarkfinancialcorp.com.

Contact:

BANX@destracapital.com

Destra Capital Advisors LLC (877) 855-3434
Destra Capital Advisors LLC provides secondary market services for the Fund by agreement.

The MIL Network –

March 6, 2025
MIL-OSI USA: Welch Reintroduces the Digital Integrity in Democracy Act

US Senate News:

Source: United States Senator Peter Welch (D-Vermont)
Bill will increase accountability for election-related disinformation
WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.) led Senators Amy Klobuchar (D-Minn.), Jeff Merkley (D-Ore.), Ben Ray Luján (D-N.M.), and Mazie Hirono (D-Hawaii) this week in reintroducing the Digital Integrity in Democracy Act, legislation to increase accountability for social media platforms that knowingly host false election administration information. The bill aims to strengthen voting rights protections by carving out a narrow exception from existing legal immunity for social media platforms that intentionally or knowingly amplify election-related misinformation.
“Across the country, voting rights are under attack. We see that very clearly on social media, where carefully orchestrated campaigns target voters with false information in an effort to keep them from the ballot box. But social media platforms have been reluctant to intervene and remove this false information, letting these harmful lies live online. They need a reality check,” said Senator Welch. “Our bill seeks to hold social media platforms accountable for intentionally hosting false election administration information to ensure every voter can fairly participate in our democracy.”
“Free and fair elections are the cornerstone of our democracy. While election disinformation is not new, emerging technologies make it easier to deceive Americans about how to exercise their right to vote,” said Senator Klobuchar. “This legislation will combat efforts intended to disenfranchise voters by holding social media companies accountable for allowing false information on their platforms about voting like when and where to cast a ballot.”
“We must crack down on the spread of false information about our elections,” said Senator Merkley. “Preserving a government ‘of, by, and for the people’ depends on protecting voters from the quick, easy spread of misinformation on social media that can jeopardize voters’ ability to exercise their right to vote.”
“Falsehoods posted on social media about the time, place and manner of an election, and lies about voter eligibility requirements, are spread with the intent to suppress voter turnout,” said Senator Luján. “I’m proud to cosponsor the Digital Integrity in Democracy Act, legislation that would hold large-scale social media companies accountable for removing these types of election falsities. This is a reasonable, balanced approach to protecting voters and our democracy, while also protecting free speech online.”
“Disinformation about elections on social media platforms is a threat to our democracy and to the right of all Americans to make their voices heard in our elections,” said Senator Hirono. “I’m glad to join Senator Welch and our colleagues in introducing this legislation to hold social media companies accountable for election disinformation shared on their platforms.”
The Digital Integrity in Democracy Act is endorsed by Common Cause and Stand Up America.
“All voters deserve access to trusted information about our elections. However, when social media companies knowingly allow and amplify false election information on their platforms, voters are left in the dark,” said Ishan Mehta, Common Cause’s Media and Democracy Program Director. “Common Cause thanks Senator Welch for introducing the Digital Integrity in Democracy Act to ensure that voters can get trusted information about elections when making their voices heard, and we encourage Congress to quickly pass this legislation.”
“Recent decisions at Meta show that social media companies do not want to take responsibility for the content on their platforms. They don’t care if misinformation and disinformation flow rampantly – they’re profiting from it. Instead, they want to exploit users as unpaid labor to do the fact-checking without any real oversight (i.e. Community Notes on Twitter/X and Facebook),” said Dayanita Ramesh, Senior Social Media Director at Stand Up America. “The truth still matters, particularly when it comes to our elections and our freedom to vote. Senator Welch’s Digital Integrity in Democracy Act would finally hold social media companies accountable for spreading lies about election information and voting access. We applaud Senator Welch’s leadership in demanding accountability from these platforms and ensuring the American people have the accurate information they need to exercise their freedom to vote.”
Learn more about the Digital Integrity in Democracy Act.
Read a section-by-section summary and full text of the bill.

MIL OSI USA News –

March 6, 2025
MIL-OSI United Kingdom: £2.6m investment package for adult social care as Westminster City Council approves new budget plans | Westminster City Council
Source: City of Westminster

Budget approved for improvements to key areas such as adult social care and housing as the council launches its new Fairer Westminster delivery plan for the next three years.

Westminster City Council has today announced a major new investment of £2.6m to go into cushioning the cost of adult social care – meaning hundreds of adult social care users will now not pay for care, while hard working care assistants will earn more.

Approved at Full Council (Wednesday March 5), additional funding for adult social care includes £1.4m to increase the pay of the personal care assistants (over 400 staff) who provide care for Westminster residents through direct payments.

This will improve the quality of care for care receivers and help more people who use adult social care to employ the carer they want as they will now be able to pay a competitive salary.

Direct payment recipients will now be able to offer an additional £1.50- £2.00 an hour salary for their personal assistant, so those who opt to receive direct payments to pay for their care needs will see their monthly funds increase.

An additional £1.2m is also being invested to level up the threshold at which people start to pay for their social care costs so that it is the same for everyone regardless of age. This will help over 460 residents aged under 65 to keep more of their income before paying care bills.

Colin, a Westminster resident who receives direct payments to support with his care needs, said:

“At 59, I’ve been fortunate to receive direct payments since graduating from university at 21, enabling me to live independently in my own home and manage my care on my terms.

“While direct payments may not suit every disabled person due to the associated responsibilities, for those willing to take them on, they can be life-enhancing and transformative.

“I believe the additional £1.4 million that Westminster City Council is allocating to personal carers’ pay will make the carer role competitive in the labour market once again, making it easier to attract people to work with me.

“Many disabled people have found it challenging to recruit quality social care workers in recent years.

“The increased funding could help me, as an employer, attract candidates from companies like Amazon and McDonald’s, which traditionally offer higher wages.

“It may also help encourage young people to view social care as a viable career option that offers a respectable and ethical wage. Society’s general underappreciation of care work has made finding and retaining good carers difficult.”

The approval of the budget at Full Council coincides with the launch of the new Fairer Westminster delivery plan, which outlines the council’s ambitions for the future of the city, and what it wants to achieve to make Westminster a great place to live. Led by voices and priorities from the community, the new plan aims to create meaningful change by providing effective, value-for-money services and accessible opportunities for all, so every resident in the city can thrive.

Headline announcements in the approved budget to kick-start the Fairer Westminster delivery plan for 2025 include:
- An extra £1.2m to tackle rough sleeping and help people off the pavements and into safety.
- Help to relieve pressure on Westminster’s housing waiting list by investing an additional £140m into buying and expanding temporary accommodation.
- An extra £1m on cost of living support to turn short-term relief into long-term solutions – such as free school meals during school holidays, supermarket food vouchers, a hardship fund and supporting specialist advice centres.
- Investing £10m into high streets across Paddington and Bayswater to support local economies and make the areas more dynamic.
- Investing in new Community hubs such as Ernest Harris House opening this Spring and the Pimlico Community hub at site of the Old Pimlico Library opening in 2026.
- An additional £2m for anti-social and city management measures across the city, including the recruitment of eight new City Inspectors and doubling the number of CCTV cameras on the streets to 200, including 40 new cameras in the West End.
The Council will also deliver new savings of nearly £30m by 2028 through measures including greater efficiencies in contracts and the switch to an electric cleaning and waste fleet.

The budget sets out detailed spending plans for managing more than 20,000 local authority properties under what is called the Housing Revenue Account. The business plan includes total capital investment of £916m over the next 5 years and a total of £2.5bn over the full 30 years. The budget also sets out the business plan for funding the council’s fairer Westminster programme under its capital strategy. The Council is proposing a gross capital programme up to 2038/39 of £2.5bn, partially offset by nearly £1.2bn of income, giving a net budget of £1.3bn.

Despite the scale of new investment, the Council Tax rise equals just 48p a week for a Band D* property, which means Westminster still has one of the lowest Council Tax rates in the country. The Westminster City Council part of the Council Tax rises by 4.99 per cent overall – 2.99 per cent for council services and 2 per cent for the portion set aside for adult social care.
- Adults under 65 with disabilities will be able to keep at least £272.69 a week after they have paid their care bills – meaning 147 Westminster residents will now pay less for support and 315 will no longer pay anything at all.
- The eight City Inspectors are an additional resource to the creation of the street-based intervention team announced in January https://www.westminster.gov.uk/news/new-front-line-team-tackle-street-based-anti-social-behaviour-asb-westminster
- You can see full details of the approved Budget here: Full Council papers
- The Fairer Westminster delivery plan and the approved investment is split between; housing, temporary accommodation and rough sleeping; schools, children’s social care and youth services; waste, street cleansing, highways and public protection; public health and adult social care; and enabling services. Read the full Fairer Westminster delivery plan here: Delivering a Fairer Westminster
MIL OSI United Kingdom –
March 6, 2025

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