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Category: Commerce

  • MIL-OSI USA: Tillis, Coons, Kiley, and Peters Reintroduce Landmark Legislation to Restore American Innovation

    US Senate News:

    Source: United States Senator for North Carolina Thom Tillis
    WASHINGTON, D.C. – Today, U.S. Senators Thom Tillis (R-NC), Chairman of the Senate Judiciary Subcommittee on Intellectual Property, and Chris Coons (D-DE) and Representatives Kevin Kiley (R-CA) and Scott Peters (D-CA) reintroduced the Patent Eligibility Restoration Act. This bipartisan, bicameral legislation will restore patent eligibility to important inventions across many fields while also resolving legitimate concerns over the patenting of mere ideas, the mere discovery of what already exists in nature, and social and cultural content that everyone agrees is beyond the scope of the patent system. It also affirms the basic principle that the patent system is central to promoting technology-based innovation.
    “Clear, reliable, and predictable patent rights are imperative to enable investments in the broad array of innovative technologies that are critical to the economic and global competitiveness of the United States, and to ensuring the national security of our great country,” said Senator Tillis. “Unfortunately, a series of Supreme Court decisions have rendered patent eligibility law unclear, unreliable, and unpredictable, resulting in U.S. inventors being unable to obtain patents in areas where our economic peers offer patent protection. This is particularly concerning in the economically critical areas of biotechnology and artificial intelligence. This bipartisan, bicameral legislation maintains the existing statutory categories of eligible subject matter, which have worked well for over two centuries, while addressing inappropriate judicially created eligibility limitations by creating clear rules for what is eligible. We cannot allow foreign adversaries like China to overtake us in key areas of technology innovation due to the current state of patent eligibility law. I look forward to continuing to work with all stakeholders on this important matter. Passing patent eligibility reform is one of my top legislative priorities.”
    “When American innovators know their ideas are eligible for patent protection, they take the risks that push us into the future – whether that’s the next medical test or the latest AI technology,” said Senator Coons. “PERA restores clarity to the law on what can be patented and what cannot – guidance that federal courts have been requesting for years and that the Supreme Court has refused to provide. Congress must step up to provide America’s inventors with the stable legal foundation they need to produce the cutting-edge technologies that power our economy.”
    “American innovators have been at a disadvantage in recent years because of the U.S. patent system,” said Representative Kevin Kiley. “Convoluted Supreme Court rulings and tests on subject matter eligibility have made it increasingly difficult for inventors to receive patents, leading to foreign companies overtaking our own. That’s why I’m proud to introduce the bi-partisan Patent Eligibility Restoration Act, which will dramatically reverse this trend, and unleash a tide of economic growth and job creation here at home.”
    “For more than two centuries, a U.S. patent has guaranteed inventions will be protected from theft, helping the U.S. become the innovation capital of the world. San Diego, in particular, is the proud home of a thriving life sciences and technology ecosystem that has benefited from these protections,” said Representative Peters. “Over the last 15 years, however, several Supreme Court decisions have created confusion about what exactly is eligible for a patent. Innovators, consumers, and even the judges who adjudicate patent law have called on Congress to provide clarity on what can be patented. I look forward to working with Congressman Kiley, Senator Coons, and Senator Tillis to advance our Patent Eligibility Restoration Act and protect American innovation.” 
    “Congress has not made substantive changes to what subject matter is patentable in the United States since the Patent Act of 1793, making it difficult for courts, inventors, and the public to understand how 21st-century technologies fit within an 18th Century patent statute,” said Andrei Iancu, board co-chair of C4IP and former Under Secretary of Commerce for Intellectual Property and USPTO Director from 2018 to 2021. “I commend Congress for advancing PERA in order to finally modernize our patent laws and promote U.S. global leadership in biotechnology, artificial intelligence, and other modern technologies.” 
    “PERA provides the clarity needed to unlock the full potential of cutting-edge technologies and solidify U.S. leadership in scientific and technological breakthroughs,” said David Kappos, board co-chair of C4IP and former Under Secretary of Commerce for Intellectual Property and USPTO Director from 2009 to 2013. “We cannot allow legal uncertainty to stall the next wave of American innovation.”
    “Patent Eligibility is an important issue for cancer patients – both for life-saving, early diagnosis and for promising new treatments.  PERA will provide the certainty needed to enable innovative breakthroughs to reach patients. Dana-Farber Cancer Institute applauds Congress for introducing and advancing this important bill – the patients are waiting.” – Dana-Farber Cancer Institute
    “Passing PERA is essential if the US is to catch up to Europe and Asia, especially China,” said Judge Paul Michel (retired). “They make eligible for patenting many classes of inventions held ineligible here. The very uncertainty of the zone of eligibility is itself an obstacle to companies getting the investments they need to compete both domestically and globally. Only Congress can fix this chaotic mess because the courts are trapped in their own harmful precedents.” 
    “In my former court, which hears patent cases on appeal, concurring and dissenting opinions in patent eligibly cases have proliferated,” said Judge Kathleen O’Malley (retired). “Veteran jurists have described the state of affairs as ‘incoherent,’ ‘unclear,’ ‘fraught,’ and ‘inconsistent.’ The Patent Eligibility Restoration Act would return clarity to patent eligibly law and encourage continued innovation in key emerging technologies – technologies that are central to the United States remaining the world’s innovation leader.”
    “NCLifeSci thanks Senator Tillis for reintroducing the Patent Eligibility Restoration Act of 2025, which restores the confidence in our nation’s patent laws by bringing much needed clarity to Section 101 of the Patent Act. Confidence that the life sciences industry needs to robustly invest in the future of medicine. For too long, fields like diagnostics, precision medicine, cell and gene therapy, RNA medicine, and digital health have been threatened by unclear and uncertain patent-eligibility standards that put America’s innovators at a disadvantage, and that discourage local investment. Through this legislation, our members – which include leading innovators who operate cutting-edge gene therapy manufacturing facilities here in North Carolina and research potential treatments and cures for Alzheimer’s and cancer —will be able to continue to take the bold risks and make the high levels of investment necessary to take fields like these to their next level, with the confidence that our patent laws will continue to hold up through future waves of technological progress.” – NC Life Sciences Organization 
    “The Innovation Alliance applauds Senators Tillis and Coons and Representatives Kiley and Peters for sponsoring the Patent Eligibility Restoration Act, which will provide much needed predictability and clarity to the hopelessly confused law of patent eligibility.  The Supreme Court has provided no workable framework to guide patent owners or the courts, and it has repeatedly refused to clarify the law, rejecting requests by the Federal Circuit and others to do so time and again. Investment dollars are flowing out of the United States as a result, jeopardizing the future of America’s innovation economy. It is past time for Congress to act.” – The Innovation Alliance  
    “This bipartisan and much-needed bill would strike a decade of judicial tinkering that has needlessly turned the question of patent eligibility into a confusing mess and harmed the U.S. versus our economic competitors. While the U.S. has spent a decade holding back innovations in areas such as fintech, diagnostic solutions and medical devices trying to figure out whether they are ‘abstract’ or not, our competitors are moving forward and protecting these inventions. PERA would be particularly beneficial to American startups and innovators by providing the clarity needed to attract investment for new ventures in essential areas such as medical devices, diagnostics, manufacturing and a whole new range of advancements powered by software.”- Alliance of U.S. Startups & Inventors for Jobs
    “AUTM – the association representing technology transfer professionals – thanks Senators Tillis and Coons and others for their leadership in introducing PERA. This legislation is crucially needed to address the ambiguities that the courts have created about what is, and what is not, patent eligible. At a time when the U.S. is competing for innovation leadership, its patent system needs to clearly delineate this process so that it can move forward on numerous discoveries that otherwise would wither on the vine.” – AUTM
    “The reintroduction of the Patent Eligibility Restoration Act (PERA) marks a pivotal move toward restoring clarity and consistency in U.S. patent law. By providing clear statutory guidelines, PERA offers inventors, entrepreneurs, and research institutions the certainty needed to innovate confidently. We commend Senator Tillis and Senator Coons for their leadership on this critical issue and remain committed to collaborating with Congress to support a patent system that fosters transparency and predictability.” – American Intellectual Property Law Association (AIPLA)
    “The Coalition for 21st Century Patent Reform applauds Congress for reintroducing PERA. This legislation represents a significant step forward in clarifying patent eligibility while maintaining necessary standards on what is ultimately patentable.  21C applauds these efforts as they will make sure that the United States remains the most attractive place in the world to invest, invent, and grow.” – The Coalition for 21st Century Patent Reform (21C)
    The following organizations support the Patent Eligibility Restoration Act: Innovation Alliance, C4IP, AUTM, AIPLA, IEEE-USA, USIJ, MDMA, BIO, NCLifeSci, Adeia, Nokia, Sisvel, Conservatives for Property Rights, Eagle Forum Education & Legal Defense Fund, U.S. Business & Industry Council, Center for a Free Economy, Center for Individual Freedom, American Policy Center, Less Government, 60 Plus Association, American Association of Senior Citizens, Frontiers of Freedom, Consumer Action for a Strong Economy, Center for American Principles, Prosperity for Us Foundation, Market Institute, Inventors Defense Alliance, Lauder Partners, Dana-Farber Cancer Institute, Heritage Action, 21C, Netlist, and FICPI.
    Background:
    Unfortunately, due to a series of Supreme Court decisions, patent eligibility law in the United States has become confused, constricted, and unclear in recent years. This has resulted in a wide range of well-documented negative impacts – inconsistent case decisions, uncertainty in innovation and investment communities, and unpredictable business outcomes.
    As of 2021, all 12 then-sitting judges of the United States Court of Appeals for the Federal Circuit lamented the state of the law. Witnesses and stakeholders from a wide array of industries, fields, interest groups, and academia have testified and submitted comments confirming the uncertainty and detailing the detrimental effects of patent eligibility confusion in the United States. There is now widespread bipartisan agreement in Congress and across all recent Administrations that reforms are necessary to restore the United States to a position of global strength and leadership in key areas of technology and innovation, such as medical diagnostics, biotechnology, personalized medicine, artificial intelligence, 5G, and blockchain.
    The Patent Eligibility Restoration Act achieves this critical goal by restoring patent eligibility to important inventions across many fields, while also resolving legitimate concerns over patenting of mere ideas, the mere discovery of what already exists in nature, and social and cultural content that everyone agrees is beyond the scope of the patent system, which is a system aimed at promoting technology-based innovation. As a general approach, the Patent Eligibility Restoration Act maintains the existing statutory categories of eligible subject matter, which have worked well for over two centuries, but eliminates the overly malleable set of current judicial exceptions – replacing them with five specific, defined statutory exclusions. By eliminating and replacing the current judicial exceptions, the Patent Eligibility Restoration Act provides predictable patent eligibility for important computer-implemented technological developments and medical advances, creating a solid bedrock for America’s innovation future.
    Full text of the bill is available HERE. 

    MIL OSI USA News –

  • MIL-OSI USA: Luján, Heinrich, Colleagues Demand to Know Who Killed Minority Business Development Agency, Why & Where’s the Money Going?

    US Senate News:

    Source: United States Senator Ben Ray Luján (D-New Mexico)
    “Who is actually running the Department: Secretary Lutnick or Elon Musk and DOGE?” Senators ask
    Washington, D.C. – U.S. Senators Ben Ray Luján (D-N.M.), a member of the Senate Commerce Committee, and Martin Heinrich (D-N.M.), joined U.S. Senator Maria Cantwell, Ranking Member of the Senate Commerce Committee, and five Senate Democrats in demanding that Keith Sonderling, the purported Acting Under Secretary of Commerce for the Minority Business Development Agency (MBDA), promptly turn over key documents and information related to the dismantling of the agency and recent funding termination notices sent to all grantees by a member of Elon Musk’s DOGE. The Senators’ demands come as Paul Dabbar, President Trump’s nominee for Deputy Secretary of Commerce, appeared on Thursday before the Commerce Committee for his nomination hearing.
    “In one MBDA termination notice reviewed by our offices, the Department claims the grant is being terminated because it ‘is unfortunately no longer consistent with the agency’s priorities and no longer serves the interests of the United States and the MBDA Program,’” the senators wrote in a letter to Sonderling, who was confirmed by the Senate as Deputy Secretary of Labor in March. “The termination notice further states that, ‘MBDA is repurposing its funding allocations in a new direction in furtherance of the President’s agenda.’ …[T]he notice is silent about why the grants are inconsistent with the MBDA’s priorities and programs—which Congress, not the Department, set by statute. And it suggests the DOC or others in the Administration may be using funding appropriated for the MBDA for other, unrelated purposes.”
    The Senators questioned Sonderling about the notice terminating all MBDA grants, which was signed by Nate Cavanaugh, a member of Elon Musk’s so-called Department of Government Efficiency (DOGE) and “Under the Authority of Keith Sonderling, Acting Undersecretary of MBDA.”  
    “This raises significant questions regarding Mr. Cavanaugh’s precise role at DOC and the mechanism by which you or other members of DOC leadership delegated him authority to terminate MDBA grants on behalf of the Department,” their letter continued. “Our offices have also obtained information indicating you may not have been aware these termination notices were being sent out by Mr. Cavanaugh under your authority, which would raise further questions about who is actually running the Department: Secretary Lutnick or Elon Musk and DOGE?”
    The letter was also signed by U.S. Senators Tammy Baldwin (D-Wis.), Lisa Blunt Rochester (D-Del.), Brian Schatz (D-Hawaii), Ed Markey (D-Mass.), and Andy Kim (D-N.J.).
    Today, during the Senate Commerce Committee hearing on the nomination of Paul Dabbar to be U.S. Deputy Secretary of Commerce, Senator Luján pressed Mr. Dabbar on the dismantlement of the MBDA by the Trump administration and highlighted the successes of the MBDA. Senator Luján championed an amendment in the Bipartisan Infrastructure Law to make the MBDA permanent. Senator Luján also secured passage of a provision to double the funding level for the MBDA’s Rural Business Development Center Program and to expand this program’s eligibility to include all Minority-Serving Institutions, which will expand opportunities for New Mexico’s colleges and universities. Additionally, in 2021 Senator Luján championed legislation to make permanent and expand the reach of the Minority Business Development Agency.
    In October 2024, Heinrich  led the unveiling of a new, larger office space for the New Mexico Minority Business Development Center in Albuquerque to expand support for local businesses across the state as they create the types of careers New Mexicans can build their families around. Heinrich wrote the legislative provision that established and funded the New Mexico Business Center in 2020, securing more than $2.5 million in federal resources through the U.S. Department of Commerce’s Minority Business Development Agency for its staffing and programming.
    The full text of the letter can be found HERE and below:
    Acting Under Secretary Sonderling:
    On March 25, 2025, and April 17, 2025, we sent letters to Secretary Howard Lutnick raising serious concerns about the apparent dismantling of the Minority Business Development Agency (MBDA), despite his testimony before the Senate Committee on Commerce, Science, and Transportation stating he would not support doing so. In our April 17 letter, we requested specific documents and information that would help address our outstanding questions and concerns regarding the MBDA. On April 24, 2025, we received a letter from the Department of Commerce (DOC) Acting Assistant Secretary for Legislative and Intergovernmental Affairs purporting to respond to our April 17 letter. This response, however, contained a mere three sentences related to the MBDA and failed to answer or meaningfully address any of our requests. Given Secretary Lutnick’s apparent disregard for our concerns about the Department’s actions against the MBDA, we are now requesting you provide documents and information related to this inquiry.
    Since our most recent letter, our offices have obtained information demonstrating that DOC has canceled all MBDA grants—further dismantling an agency Congress statutorily authorized, despite Secretary Lutnick’s testimony to the contrary. In one MBDA termination notice reviewed by our offices, the Department claims the grant is being terminated because it “is unfortunately no longer consistent with the agency’s priorities and no longer serves the interests of the United States and the MBDA Program.” The termination notice further states that, “MBDA is repurposing its funding allocations in a new direction in furtherance of the President’s agenda.” Beyond these conclusory assertions, however, the notice is silent about why the grants are inconsistent with the MBDA’s priorities and programs—which Congress, not the Department, set by statute. And it suggests the DOC or others in the Administration may be using funding appropriated for the MBDA for other, unrelated purposes.
    Raising further concerns, the termination notice was signed by Nate Cavanaugh—who we understand to be part of the so-called Department of Government Efficiency (DOGE)—and is signed “Under the Authority of Keith Sonderling, Acting Undersecretary of MBDA.” Mr. Cavanaugh has reportedly been interviewing employees at the General Services Administration and overseeing efforts to dismantle another agency, the U.S. Institute of Peace. The termination notice indicates that Mr. Cavanaugh now has a DOC e-mail address. This raises significant questions regarding Mr. Cavanaugh’s precise role at DOC and the mechanism by which you or other members of DOC leadership delegated him authority to terminate MDBA grants on behalf of the Department. Our offices have also obtained information indicating you may not have been aware these termination notices were being sent out by Mr. Cavanaugh under your authority, which would raise further questions about who is actually running the Department: Secretary Lutnick or Elon Musk and DOGE?
    Given the lack of responsiveness from the Department to date, we reiterate the requests raised in our April 17, 2025 letter, and request the following additional documents and information no later than May 14, 2025:
    A complete description of Mr. Cavanaugh’s position at DOC, including his title, job description, date(s) of employment, any salary, any benefits, supervisor, and direct reports. Please also identify all other federal e-mail addresses assigned to or used by Mr. Cavanaugh of which you are aware.
    Documents sufficient to show Mr. Cavanaugh’s delegated authority to execute termination notices to MBDA grantees. 
    Documentation sufficient to show your appointment as Acting Under Secretary for Minority Business Development Agency and the date of such appointment.
    A complete description of your decision to delegate your authority to Mr. Cavanaugh for the purpose of terminating MBDA grants, including the extent to which Secretary Lutnick or any other senior DOC official was involved in making this decision.
    A complete description of the types of funded activities that are considered “consistent with the agency’s priorities” and “serve[] the interests of…the MBDA program.”
    A detailed explanation of how the MBDA intends to “repurpos[e] its funding allocations in a new direction in furtherance of the President’s agenda,” including any specific program or activity that has received or is expected to receive repurposed funding.
    Sincerely,

    MIL OSI USA News –

  • MIL-OSI USA: Administrator Loeffler Applauds Congressional Proposal to Increase Capital for Small Manufacturers

    Source: United States Small Business Administration

    WASHINGTON — Today, Kelly Loeffler, Administrator of the U.S. Small Business Administration (SBA) applauded Senator Joni Ernst (R-IA) and Congressman Roger Williams (R-TX) for introducing new legislation that will double the individual loan limit for 7(a) and 504 small business manufacturing loans from $5 million to $10 million. The legislation aligns with SBA’s commitment to restoring American industry through its Made in America Manufacturing Initiative.

    In support of President Trump’s fair-trade agenda and the effort to restore American economic independence, the Made in America Manufacturing Finance Act will provide small manufacturers with new capital to grow, hire, and produce American-made products. Nearly 99% of manufacturers in America are small businesses – and with new capital injection, they will lead the nation’s effort to rebuild U.S. supply chains and recover American jobs.

    “On Liberation Day, President Trump made a clear promise to fight for our businesses and workers by bringing back the jobs and supply chains that built this nation—and today, we’re delivering,” said Loeffler. “The Made in America Manufacturing Finance Act will double SBA loan limits for small manufacturers, supercharging the return of American industry by giving small businesses the capital they need to expand, hire, and compete. I’m grateful to Senator Ernst and Representative Williams for leading this bipartisan effort that will empower our small businesses to reclaim our economic independence and rebuild the foundation of American power.”

    Driven by President Trump’s pro-growth economic policies, small business demand for capital has skyrocketed. SBA 7(a) loan approvals for small manufacturers have increased by 74% in the first 100 days of this Administration – indicating a strong surge in small business formation and growth. The Made in America Manufacturing Finance Act will empower the SBA to meet this new demand – and supercharge the return of Made in America.

    # # #

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov

    MIL OSI USA News –

  • MIL-OSI Security: False disaster relief applications and other fraud lands former Houstonian in federal prison

    Source: Office of United States Attorneys

    HOUSTON – A 35-year-old woman has been sentenced for conspiracy to commit wire fraud which resulted in approximately $620,000 in losses, announced U.S. Attorney Nicholas J. Ganjei.

    Cora Chantail Custard, who had resided in both Houston and San Antonio over course of the conspiracy, pleaded guilty Sept. 17, 2024.

    U.S. District Judge David Hittner has now ordered Custard to serve 57 months in federal prison to be immediately followed by three years of supervised release. She was also ordered to pay $621,388 in restitution. In handing down the sentence, the court noted the sophisticated means in which Custard used social media to advertise her services and defrauded the U.S. government and seven different state agencies.

    From March 2020 until March 2021, Custard conspired with others to submit false and fraudulent loan applications for financial assistance both personally and on behalf of others.

    At the time of the plea, Custard admitted to using her Facebook account to advertise her services to file fraudulent disaster relief applications. Her posts repeatedly described the scheme to her followers as “doing apps,” with the ability to obtain between $6,000 and $8,000 for an application within four to seven days of filing.

    Custard submitted or caused the submission of over 100 fraudulent Economic Injury Disaster Loan applications, at least 36 of which resulted in advance payments totaling $345,000.

    She also filed at least 30 fraudulent Federal Emergency Management Agency disaster benefit applications related to Hurricane Laura in August 2020 and Hurricane Sally in September 2020. At least 16 of those fraudulent applications resulted payouts totaling approximately $75,000.

    Additionally, Custard committed several other fraudulent acts like filing over 100 false unemployment insurance applications in Michigan, Illinois and several other states for her own and others’ benefits. At least 20 of those fraudulent applications resulted in payments totaling approximately $200,000.

    She was remanded into custody at sentencing.

    The Department of Homeland Security-Office of Inspector General (OIG), IRS Criminal Investigation, Treasury Inspector General for Tax Administration, Social Security Administration-OIG, Small Business Administration-OIG and Department of Labor-OIG conducted the investigation.

    Assistant U.S. Attorney Karen M. Lansden prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Cuban National Indicted On Charges Related To Credit Card “Skimming” And Submitting A False Naturalization Application

    Source: Office of United States Attorneys

    Orlando, Florida – United States Attorney Gregory W. Kehoe announces the return of an indictment charging Yunier Perez-Bertemati (40) with 22 counts of access device fraud, possessing and trafficking in unauthorized device-making equipment, aggravated identity theft, making a false statement on an immigration application, and making a false statement to a federal agent. If convicted, Perez-Bertemati faces a maximum penalty of 10 years in federal prison on each of the access device fraud counts, 15 years on the device-making equipment counts, 10 years on the count related to making a false statement in his immigration application, and 5 years on the count related to making a false statement to a federal agent, as well as a mandatory sentence of 2 years’ imprisonment for the aggravated identity theft counts. The indictment also notifies Perez-Bertemati that the United States intends to forfeit $9,650, which are alleged to be proceeds of the offense.

    According to the indictment, Perez-Bertemati engaged in a series of transactions between November 2023 and January 2025 where he sold counterfeit credit and debit cards containing stolen victim account information. He also sold “skimming” equipment—namely, devices used to appropriate victim credit or debit card information when used at a point-of-sale terminal such as a gas pump or ATM. Further, Perez-Bertemati, a Cuban citizen, recently applied to be a United States citizen but made material misrepresentations on his naturalization application and during an interview with an officer with U.S. Citizenship and Immigration Services.

    An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

    This case was investigated by the U.S. Secret Service, U.S. Customs and Border Protection, and the Florida Department of Agriculture and Consumer Services – Office of Agricultural Law Enforcement. It will be prosecuted by Assistant United States Attorney Robert D. Sowell.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    MIL Security OSI –

  • MIL-OSI Economics: Pharma M&A deal value surges by 101% QoQ in Q1 2025 despite US political turbulence, reveals GlobalData

    Source: GlobalData

    Pharma M&A deal value surges by 101% QoQ in Q1 2025 despite US political turbulence, reveals GlobalData

    Posted in Business Fundamentals

    Mergers and acquisitions (M&As) in the biopharmaceutical industry surged 101% in total deal value in Q1 2025 from $18.8 billion in Q4 2024 to $37.7 billion. However, drugmakers remain hesitant to pursue larger-scale transactions. The total deal value in Q1 2025 was 32% lower compared to Q1 2024, as larger M&As are seen as high risk due to the current US political landscape, according to GlobalData, a leading data and analytics company.

    According to GlobalData’s report “Pharma M&A Trends – Q1 2025,” oncology remains the leading therapeutic area in Q1 2025, with most of the deals targeting cancer-related assets.

    While billion-dollar acquisitions remain rare due to the current political turbulence, during Q1 2025, big pharma was involved in four billion-dollar deals valued at $1 billion or more, according to GlobalData’s Pharmaceutical Intelligence Center Deals Database. These included Johnson & Johnson’s $14.6 billion acquisition of Intra-Cellular Therapies, Novartis’ $3.1 billion acquisition of Anthos Therapeutics, GSK’s $1.15 billion buy of IDRx, and AstraZeneca’s $1 billion purchase of EsoBiotec.

    Ophelia Chan, Senior Business Fundamentals Analyst at GlobalData, comments: “Apart from a flurry of large-scale deals driven by big pharma, the industry remains cautious given the uncertainty surrounding Trump’s as-yet-unspecified policies. So far, the start of 2025 continues to be shaped primarily by bolt-on transactions.”

    Chan continues: “Dealmakers are closely monitoring further details of new policies and awaiting greater clarity on forthcoming regulations. Some companies may adopt a wait-and-see approach, holding off on transactions until there is more insight into how Trump’s tariffs will affect industry, while others are awaiting what the administration will say on M&As.”

    Chan concludes: “Given that deregulation was a defining feature of Trump’s first term, it is anticipated that the administration will pursue measures to ease regulatory constraints. Such efforts aim to accelerate the M&A regulatory process, sparking more mega deals and overall increase in M&A activity.”

    To view further insights into M&A activity globally in Q1 2025 in the Pharma Sector, please see our Pharma M&A Trends – Q1 2025 report.

    Note: The data includes announced and completed M&A deals and buy-outs made by private equity firms involving biopharmaceutical companies with drugs headquartered globally which are announced between January 1, 2021 and March 31, 2025, where a deal value has been publicly disclosed.

    MIL OSI Economics –

  • MIL-OSI Economics: US tariffs could seriously disrupt $6.1 billion EU exports of packaging and food processing machinery, says GlobalData

    Source: GlobalData

    US tariffs could seriously disrupt $6.1 billion EU exports of packaging and food processing machinery, says GlobalData

    Posted in Consumer

    On 2 April 2025, the US administration announced tariffs on all imports, which included a notable 20% tariff on exports from the European Union (EU) to the US. This decision followed the imposition of 25% tariffs on all aluminum and steel imports into the US on 12 March 2025. These policies will significantly alter growth opportunities within food processing and packaging machinery companies supplying the US market. This is because of changes in the packaging formats used to package goods in the US and changes in where automation opportunities reside, says GlobalData, a leading data and analytics company.

    GlobalData’s recent report “Industry Insights: The impact of tariffs on consumer packaged goods” reveals which CPG-relevant sectors are most affected by tariffs within specific trade relationships and how companies within these sectors will be affected. It also provides insights into consumer reactions to changes in the market caused by the imposition of tariffs.

    Rory Gopsill, Senior Consumer Analyst at GlobalData, comments: “US tariffs have the potential to alter the demand for certain types of machinery within the US beverages market. Given the significant dependence of the US on aluminum imports to meet domestic needs, a 25% tariff on steel and aluminum imports is expected to increase the cost of beverage cans.

    “Consequently, soft drink manufacturers may consider transitioning to plastic bottles as a response to the heightened costs associated with metal packaging, a possibility acknowledged by Coca-Cola’s chief executive during a call with investors in February following the tariff announcement. This could result in an increased demand for the blow moulding machines used to produce plastic bottles.”

    In 2024, 126.2 billion soft drinks sold in the US were packaged in plastic bottles, and 60.5 billion were packaged in metal cans, according to GlobalData’s Primary Packaging and Outers database. These numbers are 60.0% and 28.8% of the US soft drinks market, respectively. The US tariffs could restrict the growth of rigid metal cans and promote the growth of rigid plastic bottles. This in turn could have knock-on effects for the machinery in the production of these packaging types.

    EU processing machinery manufacturers will be hurt by US tariffs

    Many of the largest manufacturers of packaging and food processing machinery are European. Krones, GEA, and Syntegon are all German companies, while Sacmi, Coesia, IMA, and PFM Group are all Italian companies. This strong ecosystem enabled the EU to export $3.4 billion worth of washing and bottling machines, $1.6 billion worth of industrial food preparation machinery, and $1.1 billion worth of industrial printers to the US in 2023, according to The Observatory of Economic Complexity. Germany alone accounted for 24% of the US’ industrial food preparation machinery imports in 2023, according to the same source. A 20% tariff on these EU exports to the US represents a serious problem for EU machinery manufacturers.

    Gopsill continues: “Other elements of the US’ current policy agenda could also create disruptions in the US packaging and food processing machinery market. The Trump administration is also pursuing a budget reconciliation bill aimed at securing between $90 billion and $175 billion in additional funding for immigration and border enforcement agencies before the end of the year. This funding would enhance the government’s capacity to conduct business raids and detain and deport undocumented immigrants.

    “Such actions could lead to labor shortages in various industries that heavily depend on packaging and food processing machinery. For instance, according to the American Immigration Council, approximately 23% of the workforce in the US meatpacking industry consists of undocumented immigrants, while this figure was around 62% in the seafood processing sector in 2017 (according to the New American Economy).  Furthermore, according to the American Immigration Council, about 5.5% of employees in transportation and warehousing are also undocumented immigrants.

    Gopsill concludes: “If a crackdown on immigrant labor creates workforce vacancies that companies are unable to fill, food processing and packaging machinery companies may be required to accelerate their innovation programs to supply the market with more automated packaging solutions.”

    MIL OSI Economics –

  • MIL-OSI USA: Pfluger Leads Push to Mitigate Cybersecurity Risks Associated with Unsecured Networks

    Source: United States House of Representatives – Congressman August Pfluger (TX-11)

    WASHINGTON, DC — This week, Congressman August Pfluger (TX-11) led a letter with several colleagues commending Federal Communications Commission (FCC) Chairman Brendan Carr on his decision to establish the new Council for National Security within the FCC, and urging him to use the council to mitigate cybersecurity risks associated with unsecured routers.

    In part, the members wrote, “The recent proliferation of cybersecurity incidents underscores the need for the entire federal government to work together to address and deter cyber threats. We write to you today because we believe there is more the FCC can do to reduce the likelihood of such incidents. As the backbone of the Internet, routers play a critical role in securing communications for consumers and businesses. When these devices are insecure, they can serve as gateways for cyberattacks. For example, weak, default, or easily predicted passwords make routers vulnerable to exploitation. Malicious actors can exploit these vulnerabilities in routers to disrupt service, steal sensitive data, or even launch attacks against critical infrastructure…”

    “We are increasingly concerned about the prevalence of these devices and that unsecured routers may allow the CCP to surveil American data or disrupt our networks. Although the Department of Commerce is reviewing whether or not to ban routers made by Chinese-owned companies in the future, many of these devices remain on our networks, which nefarious actors could still leverage.”

    The letter outlines several examples of how the Chinese Communist Party (CCP) has repeatedly tried to leverage private companies and create backdoors in our critical infrastructure technology. The letter also highlights that under Chairman Carr’s leadership, the Council for National Security can take action against the CCP by leveraging equipment authorization to require routers to allow only uniquely identifiable devices known to the household and securely authenticated by the network owner.

    See the full letter HERE or read the full text below.

    Dear Chairman Carr,

    Firstly, we write to commend your decision to establish the new Council for National Security within the Federal Communications Commission (FCC), a crucial step in safeguarding America’s telecommunications infrastructure. Congress stands ready to work with you on this initiative to reduce America’s dependence on foreign adversaries, mitigate cyberattack vulnerabilities, and ensure U.S. supremacy in critical technologies.

    As you know, the House Energy and Commerce Committee has worked diligently to combat the People’s Republic of China’s (PRC) efforts to leverage private companies to create backdoors in our telecommunications infrastructure. For example, the House of Representatives just recently passed H.R. 866, the ROUTERS Act, to safeguard Americans’ communications networks from foreign-adversary controlled technology, including routers, modems, or devices that combine both. Additionally, in the 118th Congress, the House passed H.R. 7521, the Protecting Americans from the Foreign Adversary Controlled Applications Act, which prevents foreign adversary-controlled applications from targeting, surveilling, and manipulating Americans through online applications like TikTok. Congress also worked to ensure that the Secure and Trusted Communications Networks Reimbursement Program, or the “Rip and Replace” program, received proper funding to remove untrusted equipment such as Huawei and ZTE from our networks.

    Last year, the House Committee on Homeland Security and the Select Committee on the Chinese Communist Party released their Joint Investigation report into Shanghai Zhenhua Heavy Industries Company (ZPMC), a PRC-owned and operated company. The investigation yielded that ZPMC, or a third-party company contracted with ZPMC, installed cellular modems onto STS cranes currently operational at U.S. ports. These installations fall outside the scope of any contract between the affected U.S. ports and ZPMC. The modems created an obscure method to collect information and bypass firewalls in a manner that could potentially disrupt port operations.

    Even more recently, the U.S. Cybersecurity and Infrastructure Security Agency (CISA) reported that the Chinese-made Contec CMS8000 patient monitors contained a hard-coded IP address linked to an unidentified third party, allowing for reverse backdoor functionality. This vulnerability allows for remote access of the medical device and may allow for potential manipulation, risking patient safety and compromising sensitive health data.

    These are just a few examples of how the CCP will use every tool at its disposal to undermine U.S. economic and national security interests to further its agenda. The recent proliferation of cybersecurity incidents underscores the need for the entire federal government to work together to address and deter cyber threats. We write to you today because we believe there is more the FCC can do to reduce the likelihood of such incidents.

    As the backbone of the Internet, routers play a critical role in securing communications for consumers and businesses. When these devices are insecure, they can serve as gateways for cyberattacks. For example, weak, default, or easily predicted passwords make routers vulnerable to exploitation. Malicious actors can exploit these vulnerabilities in routers to disrupt service, steal sensitive data, or even launch attacks against critical infrastructure.

    It has been reported that TP-Link, a Chinese company, owns roughly 65% of the routers used in U.S. homes and small businesses. Additionally, the Department of Defense and other federal government agencies have used TP-Link Routers before. Multiple TP-Link routers have been added to the National Institute of Science (NIST) National Vulnerability Database for containing a directory traversal vulnerability, allowing unauthenticated remote attackers to access sensitive files by sending specially crafted requests.

    We are increasingly concerned about the prevalence of these devices and that unsecured routers may allow the CCP to surveil American data or disrupt our networks. Although the Department of Commerce is reviewing whether or not to ban routers made by Chinese-owned companies in the future, many of these devices remain on our networks, which nefarious actors could still leverage.

    With the new Council for National Security, the FCC can take various actions to mitigate cybersecurity risks associated with unsecured routers. The FCC could leverage equipment authorization through the Telecommunications Certification Body to require routers to allow only uniquely identifiable devices known to the household and securely authenticated by the network owner onto a customer’s network. These steps represent broadly accepted minimum security practices under NIST guidance and are necessary first steps toward protecting our nation’s consumers and networks from cyber risks. Other immediate-term options, such as prohibiting any new sales of TP-Link routers, or requiring ISPs to block new TP-Link routers from being added to home networks, would stop the influx of these devices on networks. Additionally, as we think beyond TP-Link routers, ISP authentication will strengthen U.S. networks’ ability to defend themselves against future untrusted Internet of Things (IoT) devices joining their networks.

    We are confident that, under your leadership, we can advance national cybersecurity initiatives

    and create robust strategies to strengthen U.S. networks against cybersecurity threats. Together,

    we can foster a secure digital environment that instills trust and confidence among users

    nationwide.

    Sincerely,

    MIL OSI USA News –

  • MIL-OSI USA: Governor Kehoe Requests Federal Disaster Declaration in Response to March 30-April 8 Severe Storms, Tornadoes, and Flooding

    Source: US State of Missouri

    MAY 1, 2025

    Jefferson City — Today, Governor Mike Kehoe requested that President Donald Trump approve a major disaster declaration to provide federal assistance in a total of 26 Missouri counties in response to the severe storms, tornadoes, and flooding that caused widespread destruction across the state from March 30 to April 8. Six deaths were confirmed due to severe storms during the period.   

    “Missouri has repeatedly been hit hard by severe storms, tornadoes, and flooding this year and the result has been widespread damage and destruction of homes, private property, and public infrastructure,” Governor Kehoe said. “While Missourians and faith-based and volunteer organizations have been supporting their neighbors and local and state government are working hard at recovery, the cost of these efforts – often because of repeated damage in the same counties – is beyond the capacity of local communities and the state to bear in full.”

    Eighteen of the 26 counties included in this request for a federal disaster declaration were also included in a federal disaster request made by Governor Kehoe on April 2, 2025.

    Based on the documented damage, Governor Kehoe is requesting FEMA Individual Assistance for the following 20 counties: Bollinger, Butler, Cape Girardeau, Carter, Cooper, Dunklin, Howell, Iron, Mississippi, New Madrid, Oregon, Ozark, Reynolds, Ripley, Scott, Shannon, Stoddard, Vernon, Washington, and Wayne.

    Individual Assistance would allow eligible residents to seek federal assistance for temporary housing, housing repairs, replacement of damaged belongings, vehicles, and other qualifying expenses.  

    Based on the documented damage and emergency response costs, Governor Kehoe is also requesting FEMA Public Assistance for the following 25 counties: Bollinger, Butler, Cape Girardeau, Carter, Cooper, Douglas, Dunklin, Howell, Iron, Madison, Maries, Mississippi, New Madrid, Oregon, Ozark, Pemiscot, Reynolds, Ripley, Scott, Shannon, Stoddard, Texas, Vernon, Wayne, and Webster.

    If approved, Public Assistance would allow local governments and qualifying nonprofit agencies to seek federal assistance for reimbursement of emergency response and recovery costs, including repair and replacement of damaged roads, bridges, and other public infrastructure.

    Joint damage assessments conducted by FEMA, SEMA, the U.S. Small Business Administration, and local officials estimate more than $25.5 million in emergency response costs and damage to public infrastructure.

    Missourians with unmet needs are encouraged to contact United Way by dialing 2-1-1 or the American Red Cross at 1-800-733-2767. For additional resources and information about disaster recovery in Missouri, including general clean-up information, housing assistance, and mental health services, please visit recovery.mo.gov.

    ###

    MIL OSI USA News –

  • MIL-OSI: CALIFORNIA BANCORP ANNOUNCES INCREASE IN SHARE REPURCHASE PROGRAM AND THE REDEMPTION OF SUBORDINATED NOTES

    Source: GlobeNewswire (MIL-OSI)

    San Diego, Calif., May 01, 2025 (GLOBE NEWSWIRE) — California Bancorp (the “Company”) (Nasdaq: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”), announces that its Board of Directors has authorized an increase in the number of shares of the Company’s common stock that may be repurchased pursuant to its share repurchase program to 1.6 million shares, up from 550,000 shares when the program was first announced on June 15, 2023. The increase allows for the repurchase of approximately 4.9% of the Company’s outstanding shares of common stock. No stock has yet been repurchased through the original or increased repurchase program.

    “The increase in our share repurchase program demonstrates the conviction of our Board of Directors and management team to our relationship-based banking strategy, and our commitment to building long-term shareholder value,” said David Rainer, Executive Chairman of the Company and the Bank. “Our strong balance sheet and capital levels will allow us to be flexible in the opportunistic deployment of capital for share repurchases, as well as the repayment of outstanding callable subordinated debt.”

    Repurchases under the program may occur from time to time in open market transactions, in privately negotiated transactions, or by other means in accordance with federal securities laws and other restrictions. The Company intends to fund its repurchases from available working capital and cash provided by operating activities. The timing of repurchases, as well as the number of shares repurchased, will depend on a variety of factors, including price; trading volume; business, economic and general market conditions; and the terms of any Rule 10b5-1 plan adopted by the Company. The repurchase program has no expiration date and may be suspended, modified, or terminated at any time without prior notice.

    The Company also announces today that it has elected to, and expects to, redeem the $18 million of 5.50% Fixed-to-Floating Subordinated Notes due 2030, that it issued on May 28, 2020.

    ABOUT CALIFORNIA BANCORP

    California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices and four loan production offices serving California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.bankcbc.com.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include expectations regarding opportunities to deploy capital for share repurchases, enhance shareholder value through share repurchases, and redeem our outstanding subordinated debt. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions.

    Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to risks related to our recently completed merger with the predecessor California BanCorp, including the risks that cost savings may be less than anticipate and difficulties in retaining senior management, employees or customers, the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines; and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents the Company files with the SEC from time to time.

    Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law.

    INVESTOR RELATIONS CONTACT
    Kevin Mc Cabe
    California Bank of Commerce
    kmccabe@bankcbc.com
    818.637.7065

    The MIL Network –

  • MIL-OSI USA: Lankford, Hudson Unveil Bill to End Biden-Era ‘Social Cost’ Climate Models, Supercharge Trump’s American Energy Agenda

    US Senate News:

    Source: United States Senator for Oklahoma James Lankford
    WASHINGTON, DC — Senator James Lankford (R-OK) today introduced the Transparency and Honesty in Energy Regulations Act alongside Congressman Richard Hudson (R-NC), legislation that will eliminate the use of “social cost” metrics in federal rulemaking and reinforce President Donald Trump’s Unleashing American Energy executive order.
    “Under President Trump, American energy dominance is back, and states like Oklahoma are fueling the charge,” said Lankford. “This bill pushes back on the Biden Administration’s war on American energy producers by ensuring federal rulemaking is grounded in facts—not flawed models or political agendas. It’s a necessary step to restore transparency, rein in government overreach, and keep American energy competitive.”
    “The Biden-Harris Administration used every tool at their disposal to advance their radical green agenda,” said Hudson. “My bill ensures that going forward, no Administration can use inaccurate, unreliable standards to pass dangerous regulations.”
    Background
    The social cost of greenhouse gas metrics are theoretical measurements that try to put a price or economic impact on emissions. Measurement theories have been used by the federal government to determine the economic impact of potential federal regulations, even though they are unscientific and can result in more burdensome regulations.
    Lankford’s bill would prohibit the Environmental Protection Agency, the Department of Energy, the Interior Department, the Council on Environmental Quality, the Federal Energy Regulatory Commission, the Department of the Treasury, the Department of Agriculture, the Department of Commerce, and the Department of Health and Human Services from using the social cost of carbon, the social cost of methane, and social cost of nitrous oxide as rationales for their regulations.
    The Washington Reporter published an exclusive on the legislation, which you can read HERE.

    MIL OSI USA News –

  • MIL-OSI: Quaint Oak Bancorp, Inc. Announces First Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    Southampton, PA , May 01, 2025 (GLOBE NEWSWIRE) — Quaint Oak Bancorp, Inc. (the “Company”) (OTCQB: QNTO), the holding company for Quaint Oak Bank (the “Bank”), announced today net loss for the quarter ended March 31, 2025 of $83,000, or $(0.03) per basic and diluted share, compared to net income of $873,000, or $0.36 per basic and diluted share, for the same period in 2024.

    Robert T. Strong, Chief Executive Officer stated, “First quarter results historically are not the best of our calendar year. Our first quarter results of this year certainly proved true with slightly less than a breakeven performance. The trends in the country’s real gross domestic product shrinkage of -0.3% in the first quarter 2025 from growth of 2.4% in the fourth quarter of 2024 is a testament to the reality we have experienced.”

    Mr. Strong added, “Uncertainty of the country’s direction in world trade and other domestic issues have had the effect of slowing commitments in the business sector. The housing market has failed to thrive so far this year, rendering our mortgage banking subsidiary to a relatively neutral production mode. Small Business loans both in the SBA category and our portfolio category are slow to close with business owners waiting to gauge the momentum of 2025.”

    Mr. Strong continued, “On a more positive note, the Bank’s pipeline for commercial loans, SBA loans and mortgage loans is relatively strong which would indicate that as the uncertainty in political direction is clarified, our prospects for loan closings should improve.”

    Mr. Strong commented, “We have been reporting weakness in the small business sector of our loan portfolio which still exists. Although both the non-performing loans as a percentage of total loans receivable, net and our non-performing assets as a percentage of total assets experienced a marginal increase over the previous quarter ended December 31, 2024, both have improved over the quarter ended March 31, 2024. Our Texas Ratio is 9.22% at the quarter ended March 31, 2025, down from 11.96% at the quarter ended March 31, 2024. Additionally, I am pleased to report that the Bank’s Total Risk-Based Capital Ratio improved to 13.92% at March 31, 2025 from 13.61% at March 31, 2024.”

    Mr. Strong concluded, “As always, our current and continued business strategy focuses on long-term profitability and maintaining healthy capital ratios both of which reflect our strong commitment to shareholder value.”

    Comparison of Quarter-over-Quarter Operating Results

    Net loss amounted to $83,000 for the three months ended March 31, 2025, a decrease of $956,000, or 109.5%, compared to net income of $873,000 for the three months ended March 31, 2024. The decrease in net income on a comparative quarterly basis was primarily the result of a decrease in interest and dividend income of $2.2 million, an increase in non-interest expense of $419,000, and a decrease in net income from discontinued operations of $406,000, partially offset by a decrease in interest expense of $930,000, a decrease in the provision for credit losses of $695,000, a decrease in the net provision for income taxes from continuing operations of $262,000, and an increase in non-interest income of $178,000.

    The $2.2 million, or 18.1%, decrease in interest and dividend income was primarily due to a decrease in the average balance of loans receivable, net, which decreased $69.8 million from $658.4 million for the three months ended March 31, 2024 to $588.7 million for the three months ended March 31, 2025 and had the effect of decreasing interest income $1.2 million, a 35 basis point decrease in the average yield on loans receivable, net from 6.82% for the three months ended March 31, 2024 to 6.47% for the three months ended March 31, 2025, and had the effect of decreasing interest income $519,000, and a $31.1 million decrease in the average balance of due from banks – interest earning, which decreased from $68.2 million for the three months ended March 31, 2024 to $37.1 million for the three months ended March 31, 2025, and had the effect of decreasing interest income $356,000.

    The $930,000, or 13.9%, decrease in interest expense for the three months ended March 31, 2025 over the comparable period in 2024 was driven by a $1.3 million, or 21.0%, decrease in interest expense on deposits, which was primarily attributable to reduced correspondent banking activity. Also contributing to the decrease in interest expense for the three months ended March 31, 2025 was a $237,000, or 97.9%, decrease in the interest expense on Federal Home Loan Bank long-term borrowings due to a $23.3 million, or 92.8%, decrease in the average balance of Federal Home Loan Bank long-term borrowings which decreased from $25.1 million for the three months ended March 31, 2024 to $1.8 million for the three months ended March 31, 2025 and a $32,000, or 6.6%, decrease in interest expense on subordinated debt. These decreases in interest expense were partially offset by a $479,000, or 100.0%, increase in the interest expense on Federal Home Loan Bank short-term borrowings due to a $43.2 million, or 100.0%, increase in the average balance of Federal Home Loan Bank short-term borrowings which increased from none for the three months ended March 31, 2024 to $43.2 million for the three months ended March 31, 2025, and a $116,000, or 100.0% increase in interest expense on senior debt. The average interest rate spread increased from 2.06% for the three months ended March 31, 2024 to 2.13% for the three months ended March 31, 2025 while the net interest margin decreased from 2.96% for the three months ended March 31, 2024 to 2.63% for the three months ended March 31, 2025.

    The $695,000, or 61.2%, decrease in the provision for credit losses for the three months ended March 31, 2025 over the three months ended March 31, 2024 was primarily due to a decrease in loans receivable, net, partially offset by an increase in charge-offs during the three months ended March 31, 2025.

    The $178,000, or 11.3%, increase in non-interest income for the three months ended March 31, 2025 over the comparable period in 2024 was primarily attributable to a $279,000, or 996.4%, increase in gain on sale of SBA loans, a $121,000, or 12.9%, increase in net gain on sale of loans, and a $33,000, or 21.7%, increase in insurance commissions. These increases were partially offset by a $195,000, or 85.9%, decrease in other fees and service charges, a $60,000, or 29.1%, decrease in mortgage banking, equipment lending and title abstract fees, and a $4,000, or 100.0%, decrease in real estate sales commissions, net.

    The $419,000, or 8.2%, increase in non-interest expense for the three months ended March 31, 2025 over the comparable period in 2024 was primarily due to a $181,000, or 72.4%, increase in occupancy and equipment expense, a $139,000, or 52.9%, increase in data processing expense, an $82,000, or 58.2%, increase in professional fees, a $55,000, or 11.3%, increase in other expense, a $14,000, or 27.5%, increase in directors’ fees and expenses, and a $13,000, or 15.1%, increase in advertising expense. These increases were partially offset by a $52,000, or 30.1%, decrease in FDIC deposit insurance assessment, and a $13,000, or 0.4%, decrease in salaries and employee benefits expense.

    The provision for income tax from continuing operations decreased $262,000, or 99.2%, from $264,000 for the three months ended March 31, 2024 to $2,000 for the three months ended March 31, 2025 due primarily to a decrease in pre-tax income.

    Comparison of Financial Condition

    The Company’s total assets at March 31, 2025 were $650.4 million, a decrease of $34.8 million, or 5.1%, from $685.2 million at December 31, 2024. This decrease in total assets was primarily due to a $14.1 million, or 22.4%, decrease in cash and cash equivalents, a $13.3 million, or 20.7%, decrease in loans held for sale, and an $8.3 million, or 1.6%, decrease in loans receivable, net of allowance for credit losses. The largest decreases within the loan portfolio occurred in commercial real estate loans which decreased $9.6 million, or 3.2%, commercial business loans which decreased $8.9 million, or 7.8%, and one-to-four family non-owner occupied loans which decreased $946,000, or 2.8%. Partially offsetting these decreases were construction loans which increased $4.2 million, or 22.7%, one-to-four family owner occupied loans which increased $4.1 million, or 15.9%, and home equity loans which increased $2.8 million, or 49.3%. Also contributing to the decrease in assets was a $208,000, or 12.5%, decrease in investment securities available for sale, and a $40,000, or 2.5%, decrease in premises and equipment, net. Partially offsetting the decrease in total assets was a $686,000, or 31.0%, increase in investment in Federal Home Loan Bank stock, at cost, a $301,000, or 3.9%, increase in prepaid expenses and other assets, a $227,000, or 5.7%, increase in accrued interest receivable, and a $30,000, or 0.7%, increase in bank-owned life insurance.

    Loans held for sale decreased $13.3 million, or 20.7%, from $64.3 million at December 31, 2024 to $50.9 million at March 31, 2025 as the Bank’s mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $19.6 million of one-to-four family residential loans during the three months ended March 31, 2025 and sold $24.8 million of loans in the secondary market. The Bank’s commercial real estate subsidiary, Oakmont Commercial, LLC, originated $9.4 million of commercial real estate loans during the three months ended March 31, 2025 and sold $17.8 million of loans in the secondary market during this same period. Additionally, the Bank originated $4.9 million of SBA loans and sold $3.7 of loans in the secondary market in the same period.

    Total deposits decreased $45.7 million, or 8.3%, to $507.6 million at March 31, 2025 from $553.3 million at December 31, 2024. This decrease in deposits was primarily attributable to a decrease of $47.8 million, or 100.0%, in interest bearing checking accounts as the Company exited one of its correspondent banking relationships. Also contributing to the decrease in deposits was a decrease of $18.0 million, or 11.1%, in money market accounts, and a $62,000, or 12.6%, decrease in savings accounts. These decreases in deposits were partially offset by an increase of $19.0 million, or 6.7%, in certificates of deposit, and an increase of $1.1 million, or 1.9%, in non-interest bearing checking accounts.

    Total Federal Home Loan Bank (FHLB) borrowings increased $17.1 million, or 35.8%, to $65.0 million at March 31, 2025 from $47.9 million at December 31, 2024. During the period ended March 31, 2025, the Company borrowed $60.0 million of FHLB short-term borrowings, paid down $40.0 million of FHLB short-term borrowings, and paid down $2.9 million of FHLB long-term borrowings.

    Senior debt, net of unamortized debt issuance costs, increased $9.5 million, or 100.0% from none at December 31, 2024 as the Company entered into a Senior Unsecured Note Purchase Agreement with certain institutional accredited investors pursuant to which the Company issued an aggregate of $9.75 million in aggregate principal amount of Fixed Rate Unsecured Senior Notes due March 1, 2028 (the “Notes”) in a private placement. The Company issued to an accredited individual investor an additional $250,000 in principal amount of the Notes as of March 4, 2025 for a total of $10.0 million in aggregate principal amount. The Notes bear interest at a fixed annual rate of 11.00%, payable semi-annually in arrears on March 1 and September 1 of each year, beginning September 1, 2025. The maturity date of the Notes is March 1, 2028.

    Subordinated debt, net of unamortized debt issuance costs, decreased $14.0 million, or 63.6%, to $8.0 million at March 31, 2025 from $22.0 million at December 31, 2024 as the Company used the net proceeds from the sale of the Senior Debt Notes to repay a portion of the outstanding $14.0 million aggregate principal amount of its 8.5% Fixed Rate Subordinated Notes upon their maturity on March 15, 2025.

    Total stockholders’ equity from continuing operations decreased $353,000, or 0.7%, to $52.3 million at March 31, 2025 from $52.6 million at December 31, 2024. Contributing to the decrease were dividends paid of $341,000, and net loss for the period ended March 31, 2025 of $83,000. The decrease in stockholders’ equity was partially offset by amortization of stock awards and options under our stock compensation plans of $61,000, the reissuance of treasury stock under the Bank’s 401(k) Plan of $9,000, and other comprehensive income, net of $1,000.

    Non-performing loans at March 31, 2025 totaled $5.9 million, or 1.13%, of total loans receivable, net of allowance for credit losses, consisting of $5.4 million of loans on non-accrual status and $513,000 of loans 90-days or more delinquent. Non-accrual loans consist of one one-to-four family residential owner occupied loan, eight commercial real estate loans, and twelve commercial business loans. Included in the twelve commercial business loans is one pool of equipment loans. Loans 90-days or more past due include one one-to-four family residential owner occupied loan, one commercial real estate loan and two commercial business loans, all of which are still accruing. All non-performing loans are either well-collateralized or adequately reserved for. During the period ended March 31, 2025, seven commercial business loans totaling $419,000 that were previously on non-accrual were charged-off through the allowance for credit losses. Non-performing loans at December 31, 2024 totaled $5.7 million, or 1.07%, of total loans receivable, net of allowance for credit losses, consisting of $3.9 million of loans on non-accrual status and $1.8 million of loans 90-days or more delinquent. Non-accrual loans consist of one commercial real estate loan, and ten commercial business loans. Included in the ten commercial business loans is one pool of equipment loans. Loans 90-days or more past due include one one-to-four family residential owner occupied loan and two commercial real estate loans, all of which are still accruing. All non-performing loans are either well-collateralized or adequately reserved for. During the year ended December 31, 2024, 19 commercial business loans totaling $1.6 million, and one construction loan of $187,000, that were previously on non-accrual were charged-off through the allowance for credit losses.

    Quaint Oak Bancorp, Inc., a Financial Services Company, is the parent company for the Quaint Oak Family of Companies. Quaint Oak Bank, a Pennsylvania-chartered stock savings bank and wholly-owned subsidiary of the Company, is headquartered in Southampton, Pennsylvania and conducts business through three regional offices located in the Delaware Valley, Lehigh Valley and Philadelphia markets. Quaint Oak Bank’s subsidiary companies include Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, Quaint Oak Mortgage, LLC, and Oakmont Commercial, LLC, a specialty commercial real estate financing company. All companies are multi-state operations.

    Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Factors which could result in material variations include, but are not limited to, changes in interest rates which could affect net interest margins and net interest income, competitive factors which could affect net interest income and noninterest income, changes in demand for loans, deposits and other financial services in the Company’s market area; changes in asset quality, general economic conditions as well as other factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

    In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, competition, changes in the quality or composition of the Company’s loan, investment and mortgage-backed securities portfolios; geographic concentration of the Company’s business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees.

    QUAINT OAK BANCORP, INC.
    Consolidated Balance Sheets
    (In Thousands)
          At March 31,       At December 31,  
          2025       2024  
          (Unaudited)       (Unaudited)  
    Assets                
    Cash and cash equivalents   $ 48,859     $ 62,989  
    Investment in interest-earning time deposits     912       912  
    Investment securities available for sale at fair value     1,458       1,666  
    Loans held for sale     50,946       64,281  
    Loans receivable, net of allowance for credit losses (2025: $6,388; 2024: $6,476)     526,374       534,693  
    Accrued interest receivable     4,188       3,961  
    Investment in Federal Home Loan Bank stock, at cost     2,900       2,214  
    Bank-owned life insurance     4,477       4,447  
    Premises and equipment, net     1,586       1,626  
    Goodwill     515       515  
    Other intangible, net of accumulated amortization     65       77  
    Prepaid expenses and other assets     8,088       7,787  
    Total Assets   $ 650,368     $ 685,168  
                     
    Liabilities and Stockholders’ Equity                
    Liabilities                
    Deposits                
    Non-interest bearing   $ 60,928     $ 59,783  
    Interest-bearing     446,654       493,469  
    Total deposits     507,582       553,252  
    Federal Home Loan Bank short-term borrowings     65,000       45,000  
    Federal Home Loan Bank long-term borrowings     –       2,855  
    Subordinated debt     8,000       22,000  
    Senior debt     9,487       –  
    Accrued interest payable     773       937  
    Advances from borrowers for taxes and insurance     2,044       3,122  
    Accrued expenses and other liabilities     5,218       5,385  
    Total Liabilities     598,104       632,551  
                     
    Total Stockholders’ Equity     52,264       52,617  
    Total Liabilities and Stockholders’ Equity   $ 650,368     $ 685,168  
    QUAINT OAK BANCORP, INC.
    Consolidated Statements of Operations
    (In Thousands, except share data)
        For the Three Months Ended March 31,  
        2025     2024  
        (Unaudited)  
    Interest and Dividend Income                
    Interest on loans, including fees   $ 9,523     $ 11,232  
    Interest and dividends on time deposits, investment securities, interest-bearing deposits with others, and Federal Home Loan Bank stock     403       890  
    Total Interest and Dividend Income     9,926       12,122  
                     
    Interest Expense                
    Interest on deposits     4,729       5,986  
    Interest on Federal Home Loan Bank short-term borrowings     479       –  
    Interest on Federal Home Loan Bank long-term borrowings     5       242  
    Interest on Federal Reserve Bank short-term borrowings     1       –  
    Interest on subordinated debt     452       484  
    Interest on senior debt     116       –  
    Total Interest Expense     5,782       6,712  
    Net Interest Income     4,144       5,410  
    Provision for Credit Losses – Loans     326       1,084  
    Provision for Credit Losses – Unfunded Commitments     115       52  
    Net Interest Income after Provision for Credit Losses     3,703       4,274  
                     
    Non-Interest Income                
    Mortgage banking, equipment lending and title abstract fees     146       206  
    Real estate sales commissions, net     –       4  
    Insurance commissions     185       152  
    Other fees and services charges     32       227  
    Net loan servicing income     4       2  
    Income from bank-owned life insurance     30       28  
    Net gain on sale of loans     1,056       935  
    Gain on the sale of SBA loans     307       28  
    Total Non-Interest Income     1,760       1,582  
                     
    Non-Interest Expense                
    Salaries and employee benefits     3,650       3,663  
    Directors’ fees and expenses     65       51  
    Occupancy and equipment     431       250  
    Data processing     402       263  
    Professional fees     223       141  
    FDIC deposit insurance assessment     121       173  
    Advertising     99       86  
    Amortization of other intangible     12       12  
    Other     541       486  
    Total Non-Interest Expense     5,544       5,125  
    (Loss) income from continuing operations before income taxes     (81 )     731  
    Income Taxes     2       264  
    Net (loss) income from continuing operations     (83 )     467  
    Income from discontinued operations     –       564  
    Income tax from discontinued operations     –       158  
    Net income from discontinued operations     –       406  
    Net (Loss) Income   $ (83 )   $ 873  
        Three Months Ended March 31,  
        2025     2024  
        (Unaudited)  
    Per Common Share Data:                
    Earnings per share from continuing operations – basic   $ (0.03 )   $ 0.20  
    Earnings per share from discontinued operations – basic   $ –     $ 0.16  
    Earnings per share, net – basic   $ (0.03 )   $ 0.36  
    Average shares outstanding – basic     2,626,967       2,450,814  
    Earnings per share from continuing operations – diluted   $ (0.03 )   $ 0.20  
    Earnings per share from discontinued operations – diluted   $ –     $ 0.16  
    Earnings per share, net – diluted   $ (0.03 )   $ 0.36  
    Average shares outstanding – diluted     2,626,967       2,450,814  
    Book value per share, end of period   $ 19.89     $ 20.84  
    Shares outstanding, end of period     2,627,397       2,407,048  
        Three Months Ended March 31,  
        2025     2024  
        (Unaudited)  
    Selected Operating Ratios:                
    Average yield on interest-earning assets     6.30 %     6.63 %
    Average rate on interest-bearing liabilities     4.17 %     4.57 %
    Average interest rate spread     2.13 %     2.06 %
    Net interest margin     2.63 %     2.96 %
    Average interest-earning assets to average interest-bearing liabilities     113.59 %     124.57 %
    Efficiency ratio     70.40 %     73.29 %
                     
    Asset Quality Ratios (1):                
    Non-performing loans as a percent of total loans receivable, net     1.13 %     1.28 %
    Non-performing assets as a percent of total assets     0.91 %     1.00 %
    Allowance for credit losses as a percent of non-performing loans     107.45 %     97.24 %
    Allowance for credit losses as a percent of total loans receivable, net     1.20 %     1.23 %
    Texas Ratio (2)     9.22 %     11.96 %

      
    (1)  Asset quality ratios are end of period ratios.
    (2)  Total non-performing assets divided by tangible common equity plus the allowance for credit losses.

    The MIL Network –

  • MIL-OSI USA: Mfume Joins Bicameral Letter on Cuts to Medicaid in District of Columbia

    Source: United States House of Representatives – Congressman Kweisi Mfume (MD-07)

    WASHINGTON, DC – Amid reports that House Republicans plan to reduce the Federal Medical Assistance Percentage (FMAP) in the District of Columbia, Congressman Steny H. Hoyer (MD-05), Congresswoman Eleanor Holmes Norton (D-DC), and Senator Chris Van Hollen (D-MD) led 15 Members in sending a letter to leaders on the House Committee on Energy & Commerce decrying the proposed cuts to Medicaid in the District. The letter is signed by all Democrats in the National Capital Region, including Senators Mark Warner (D-VA), Tim Kaine (D-VA), and Angela Alsobrooks (D-MD), and Representatives Robert “Bobby” Scott (VA-03), Gerry Connolly (VA-11), Donald Beyer, Jr. (VA-08), Jamie Raskin (MD-08), Kweisi Mfume (MD-07), Glenn Ivey (MD-04), Jennifer L. McClellan (VA-04), Eugene Vindman (VA-07), Suhas Subramanyam (VA-10), Johnny Olszewski (MD-02), Sarah Elfreth (MD-03), and April McClain Delaney (MD-06).

    In 2024, 264,332 people enrolled in Medicaid in the District, including 3 in every 7 children, 4 in every 5 nursing home residents, and 1 in every 2 working-age adults with disabilities. Many of these Americans risk losing coverage if D.C.’s FMAP is reduced. A lower FMAP would also force hospitals, clinics, and local health centers to close their doors, undermining care for everyone in the region. 

    “It is imperative that our constituents, and those who seek care within our jurisdictions, have reliable access to health care,” the Members wrote in their letter. “Cuts to Medicaid will have devastating impacts regionally and nationwide, decreasing the availability of providers and services, forcing millions of American families to lose coverage, and increasing wait times for patients in need. Moreover, cuts threaten our region’s health centers, hospitals, nursing homes, home and community-based care providers, and behavioral health providers.”

    “Such a change would be catastrophic, destabilizing the health care system of the Washington, D.C. metropolitan region and beyond and impacting the hundreds of thousands of constituents who live, work, travel through, or receive care in D.C. each day,” the Members continued.

    “As a top children’s hospital and the region’s only Pediatric Level 1 Trauma Center, we are deeply concerned that the proposed cuts to D.C. Medicaid will have unintended consequences and will put critical health care for children at risk,” said Michelle Riley-Brown, President and CEO of Children’s National Hospital. “These proposals would force us to immediately scale back the specialized care that hundreds of thousands of families from all 50 states and D.C. rely on each year, including the 55 percent of our patients who are covered by Medicaid.” 

    “Cutting DC’s Medicaid funding would decimate health care, emergency preparedness, and public safety in the city, impacting not only DC residents but those who work and visit the city,” said Jacqueline Bowens, President and CEO of DC Hospital Association. “Cuts would force reductions in services at hospitals and have a ripple effect on the city budget and essential public safety services, including police, fire, education, and substance abuse, mental health, and homeless services.”

    The full text of the letter is included below:

    Dear Chairman Guthrie, Ranking Member Pallone, Chairman Carter, and Ranking Member DeGette:

    We write in strong opposition to the proposals contemplated in the FY25 Budget Resolution to cut Medicaid. It is imperative that our constituents, and those who seek care within our jurisdictions, have reliable access to health care. Cuts to Medicaid will have devastating impacts regionally and nationwide, decreasing the availability of providers and services, forcing millions of American families to lose coverage, and increasing wait times for patients in need. Moreover, cuts threaten our region’s health centers, hospitals, nursing homes, home and community-based care providers, and behavioral health providers. These indispensable providers serve low-income, military-connected, and disabled children and adults, and play a unique role in our nation’s capital.

    We write with particular concern regarding proposals to reduce the Federal Medical Assistance Percentage (FMAP) for the District of Columbia. Such a change would be catastrophic, destabilizing the health care system of the Washington, D.C. metropolitan region and beyond and impacting the hundreds of thousands of constituents who live, work, travel through, or receive care in D.C. each day. Notably, this includes Members of Congress and their staff, members of the administration, visiting dignitaries, and their families, as well as families across the country who rely on D.C.’s specialized care. We all depend on and expect our nation’s capital to have a quality, responsive health care system. Efforts to weaken that system through cuts to Medicaid undermine the stability and resilience our region requires and would have reverberating effects across the country.

    In 1997, a Republican Congress passed the National Capital Revitalization and Self-Government Improvement Act of 1997 (Revitalization Act), which established the current 70 percent D.C. FMAP and transferred certain functions and costs from the D.C. government to the federal government. Congress passed the Revitalization Act in part because it recognized that it imposes unique revenue limitations on D.C., which operates as a state, county, and city. Congress imposes three main revenue limitations on D.C.: D.C. cannot tax income earned in D.C. by nonresidents, depriving D.C. of more than $3 billion in revenue per year; D.C. cannot permit buildings to exceed certain height limitations; and D.C. cannot tax its sizable federal property.

    As it currently stands, other jurisdictions are entitled to a higher FMAP than D.C. The Consolidated Appropriations Act, 2023 set the FMAP for American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands permanently at 83% and set the FMAP for Puerto Rico at 76% through FY 2027. Five states (Mississippi, West Virginia, Alabama, New Mexico, and Kentucky) have FMAPs that are higher than D.C.

    Reducing D.C.’s FMAP would weaken care for all in the Washington, D.C. metropolitan region, regardless of insurance status. Medicaid supports nearly a quarter of D.C.’s population, including 3 in 7 children and 4 in 5 nursing home residents. For example, proposals to reduce D.C.’s FMAP from 70 percent to 50 percent would create a $1.1 billion annual hole in local funds and ultimately result in a total loss of $2.1 billion per year in program funds to local hospitals, universities, and providers. This equates to a 40 percent cut in funding directly impacting health care providers. Hospitals in the region project at least $232 million in uncompensated care due to D.C.’s FMAP reductions, with at least one medical system expecting to close altogether. Impacts would reverberate across fire and emergency services, police recruitment and retention, and behavioral health resources and threaten the ability of hospitals and other safety net providers to stay open. Community-based providers in Virginia and Maryland risk being overwhelmed, as demand rises from D.C. residents seeking timely care.

    Further, without corresponding funding or infrastructure support, it would be challenging for the rest of the region to shoulder the responsibility for regional emergency response. D.C.’s four Level I trauma centers, including those at Children’s National Hospital and MedStar Washington Hospital Center, provide vital care for patients in major incidents or emergency situations, including those involving Members of Congress, federal employees, and visitors. Reducing D.C.’s FMAP would have a particularly disproportionate impact on the provision of trauma and specialty capacities, principally for burn and pediatric patients.

    Reductions to D.C.’s FMAP would adversely limit regional access to life-saving and specialized pediatric care. We note with particular alarm the potential impacts on Children’s National, which provides specialized care to patients from all 50 states, including West Virginia, Pennsylvania, Florida, and North Carolina. 73% of hospital stays and emergency department visits at Children’s National are covered by Medicaid. Reductions in Medicaid funding would likely result in the hospital making significant cuts to primary care, behavioral health, and outpatient subspecialty services, with families having to travel further to obtain such care or going without it. Further, local federally qualified health centers (FQHCs) anticipate that a change to D.C.’s FMAP would result in a loss of coverage for more than 33,000 adult health center patients and a loss of $58 million in payments, leaving them unable to serve over 24,000 of their current patients.

    Reductions to D.C.’s FMAP would be catastrophic for our local providers and pose grave challenges to ensuring patients in the mid-Atlantic region and beyond receive necessary care. As you consider potential policy options through Budget Reconciliation, we urge you to strongly oppose all cuts to Medicaid and to protect the current FMAP for the District of Columbia.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Congressman Gabe Amo, Congresswoman Lizzie Fletcher, and Congressman Mike Quigley Introduce Legislation To Reverse Trump Administration Decision Allowing Federal Agencies To Ban Public Input

    Source: US Congressman Gabe Amo (Rhode Island 1st District)

    Washington, D.C.—Today, Congresswoman Lizzie Fletcher (TX-07), Congressman Mike Quigley (IL-05), and Congressman Gabe Amo (RI-01) introduced a resolution opposing the U.S. Department of Health and Human Services’ (HHS) proposal to limit public notice and public comment for proposed rules. Senator Ron Wyden (D-OR), Senator Ed Markey (D-MA), and Senator Angus King (I-ME) introduced this legislation in the U.S. Senate today.

    “For more than half a century, the Department of Health and Human Services — under Democratic and Republican administrations alike — has allowed the American people to weigh in on proposed rules that would affect public property, loans, grants, benefits, and contracts,” said Congressman Gabe Amo. “Secretary Kennedy committed to ‘radical transparency’ during his confirmation hearing, yet his decision to end this public input would eviscerate transparency, undermine public participation, and allow the department to operate in secret. President Trump and Secretary Kennedy’s push to rescind basic transparency in public health begs the question — what are they trying to hide?”

    “For decades, HHS has engaged with the public about policies that directly affect their lives and livelihoods,” said Congresswoman Lizzie Fletcher.  “As a result of this input, Democratic and Republican administrations alike have modified proposed rules in response to the issues and concerns exposed through this public comment process, often clarifying a rule’s intended meaning and correcting unforeseen errors.  Banning public comment not only reduces transparency and accountability in the HHS decision-making process, creating uncertainty for health care providers, research institutions, and advocacy groups in grantmaking processes, it also excludes the people from their government. That’s why I am glad to introduce this legislation in the House with Congressman Mike Quigley and Congressman Gabe Amo in partnership with Senator Ron Wyden, Senator Ed Markey, and Senator Angus King to reaffirm the importance of public engagement in our health care and of the people in our government.”

    “For an administration that claims to be transparent, Trump and RFK’s choice to insulate HHS from public input is repugnant,” said Congressman Mike Quigley. “This change reverses years of HHS precedent. As Founder of the Transparency Caucus, I’m proud to lead this resolution to preserve public involvement in HHS decisions.”

    In 1971, HHS adopted the Richardson Waiver to ensure that public notice and comment procedures for HHS would include rules related to public property, loans, grants, benefits, and contracts.  The 1971 directive built on legal requirements laid out by the Administrative Procedure Act of 1946 (APA) to allow the public greater input in agency matters.  On March 3, HHS Secretary Robert F. Kennedy announced that HHS would rescind this longstanding policy to solicit public comments on proposed rules, effective immediately.

    AFSCME, AFT: Education, Healthcare, Public Services, AI Arthritis, Alliance for Aging Research, America’s Essential Hospitals, American Academy of Family Physicians (AAFP), American Academy of Pediatrics (AAP), American Cancer Society Cancer Action Network, American College of Obstetricians and Gynecologists (ACOG), American Federation for Aging Research, American Kidney Fund, American Lung Association, Arthritis Foundation, Association of American Medical Colleges, Asthma and Allergy Foundation of America, CancerCare, Caring Across Generations, Center for Medicare Advocacy, Center for Reproductive Rights, Center for Reproductive Rights, Children’s Hospital Association, Community Catalyst, Cystic Fibrosis Foundation, Daily Voice National, Epilepsy Foundation of America, Families USA, Geriatric Circle, Gerontological Society of America, Gillette Children’s, Immune Deficiency Foundation, Justice in Aging, Large Urology Group Practice Association, LeadingAge, Medicare Rights Center, Muscular Dystrophy Association, National Bleeding Disorders Foundation, National Bleeding Disorders Foundation, National Consumer Voice for Quality Long-Term Care, National Family Planning & Reproductive Health Association, National Health Council, National Health Law Program, National Kidney Foundation, National MS Society, National Nurses United, National Organization for Rare Disorders, National Partnership for Healthcare and Hospice Innovation, National Partnership for Women & Families, National Patient Advocate Foundation, National Rural Health Association, National Women’s Law Center Action Fund, PHI National, Planned Parenthood Federation of America, Protect Our Care, SEIU, Susan G. Komen, and the United Steelworkers (USW) have endorsed the resolution.

    To read the full text of the resolution, click here.

    MIL OSI USA News –

  • MIL-OSI USA: North Dakota Achieves Top Scores in 2025 American Consumer Satisfaction Index Report

    Source: US State of North Dakota

    The North Dakota Department of Commerce is pleased to announce that its Community Services Block Grant (CSBG) program has received outstanding results in the 2025 American Consumer Satisfaction Index (ACSI) report. This survey, conducted by the federal Office of Community Services (OCS), was sent to all the state’s Community Action Agencies to gauge the performance of the state office across multiple customer service dimensions. The average score across the nation is 73, but North Dakota achieved an impressive score of 93.

    The report highlights that North Dakota received a top score across all states in the following categories:

    • Distribution of Funds: Ensuring there is no interruption and maintaining the quality of the process.
    • Use of Discretionary Funds: Responsiveness to the needs of the network.
    • Monitoring and Corrective Action: Consistency of monitoring.
    • Linkages: Awareness of efforts and effectiveness of partnerships.

    “I am incredibly proud of the collaborative efforts and dedication of our team and partners,” said Community Services Block Grant Administrator Ben Faul. “Achieving such high scores across multiple dimensions is a testament to our commitment to provide exceptional service and support to our community.”

    The survey was conducted by CFI Group, an independent consulting and market research firm, on behalf of the Administration for Children and Families (ACF), a division of OCS. The survey was fielded via email from December 3, 2024, to February 6, 2025. A total of 1,016 surveys were sent, and 546 were completed nationally resulting in an excellent response rate of 54%.

    Commerce is incredibly proud of these achievements and looks forward to continuing its efforts to provide exceptional service to its Community Action Partners and the residents of North Dakota.

    For more information about the Community Services Block Grant Program, visit https://www.commerce.nd.gov/community-services/low-income-programs/community-services-block-grant-csbg.

    MIL OSI USA News –

  • MIL-OSI: OptimizeRx Releases 2025 Environmental, Social, and Governance (ESG) Report

    Source: GlobeNewswire (MIL-OSI)

    WALTHAM, Mass., May 01, 2025 (GLOBE NEWSWIRE) — OptimizeRx Corp. (the “Company”) (Nasdaq: OPRX), a leading provider of healthcare technology solutions helping life sciences companies reach and engage healthcare professionals (HCPs) and patients, has published its Environmental, Social and Governance (ESG) report for 2025.

    As a company focused on optimizing meaningful engagement opportunities at critical junctures of the healthcare journey, we remain dedicated to aligning our mission with our responsibilities as a corporate citizen.

    “Our stakeholders continue to expect us to transparently disclose our commitment to environmental, social, and governance responsibilities,” stated Marion Odence-Ford, Chief Legal Officer & Chief Human Resources Officer. “During calendar year 2024, we enhanced our disclosures on a wide range of ESG topics. We improved our Institutional Shareholder Services (ISS) ESG rating, moving from the seventh decile to the first decile and earning prime status. We are proud of our achievements and look forward to realizing more progress in the years to come.”

    ESG Report Highlights:

    Governance:

    • The pursuit of responsible governance is a top-down endeavor, and the Company’s Board of Directors and the Nominating & Governance Committee have worked closely with the Executive Team to ensure our business strategies and practices align with our corporate governance policies.
    • Our annual double-materiality survey has identified a clear three-year trend in the topics our stakeholders care about most. These topics are clustered in three main areas:
      • Data Protection: Customer Privacy and Data & Cybersecurity;
      • Ethics and Governance: Business Ethics, Responsible Marketing & Advertising, Corporate Governance, and Anti-Competitive Behavior; and
      • Human Capital: Human Capital & Resources, Labor Practices & Management, and Talent Acquisition & Retention.

    Planet:

    • This year’s ESG Report continues to build on past successes, adding additional detail in the form of a methodology appendix, more comprehensive data on Scope 1 emissions, and reporting on additional individual greenhouse gases.

    People:

    • OptimizeRx continues to believe that impartiality in employment practices is an essential part of our business and is necessary to contribute to a culture of respect. We provide merit-based opportunities to all individuals without regard to age, race, color, national origin, ancestry, citizenship, religion, gender, sexual orientation or gender identity.
    • We prioritize recruiting, retaining, and incentivizing a highly qualified workforce as the success of OptimizeRx is dependent on the skills, experience, and efforts of our employees. We also believe that contributions stemming from each employee’s cultural, economic and social background, experience, and thought are essential in making our Company stronger. Collaboration drawn from a range of perspectives enhances decision-making, sparks innovation, and drives better business outcomes. An inclusive culture boosts employee engagement, attracts top talent, and reduces turnover which furthers long-term success.
    • This year, the Company introduced the SPARK employee recognition program to recognize and celebrate Sustained Excellence, Positive Impact, Accountability, Resilience and Kindness.
    • Another recent initiative includes a Competency Model to clearly define competency levels and expectations for skills, knowledge and experience, and to provide department-specific career progression visuals, to guide each employee’s growth and success.

    Prosperity:

    • We remain vigilant in our quest to turn healthcare challenges into opportunities. Not only do these opportunities present us with new ways to grow and learn, but also to do better for our customers, employees, and the patients we impact, because increasing stakeholder value also drives shareholder value.
    • The Company has seen strong adoption of its Dynamic Audience Activation Platform (DAAP), an AI-enabled platform that delivers predictive and privacy-safe marketing solutions that connects life sciences, HCPs and patients across the most robust network of personal and clinical platforms.
    • The 2024 integration of the consumer-focused solutions of Healthy Offers, Inc. (dba Medicx Health), strengthens our ability to deliver on our mission across expanded stakeholder groups with our increased data and analytics capabilities.

    To read OptimizeRx’s full ESG report, please visit the Company’s governance page on its website or click here.

    About OptimizeRx
    OptimizeRx is a leading healthcare technology company that’s redefining how life science brands connect with patients and healthcare providers. Our platform combines innovative AI-driven tools like the Dynamic Audience Activation Platform (DAAP) and Micro-Neighborhood Targeting (MNT) to deliver timely, relevant, and hyper-local engagement. By bridging the gap between HCP and DTC strategies, we empower brands to create synchronized marketing solutions that drive faster treatment decisions and improved patient outcomes.

    Our commitment to privacy-safe, patient-centric technology ensures that every interaction is designed to make a meaningful impact, delivering life-changing therapies to the right patients at the right time. Headquartered in Waltham, Massachusetts, OptimizeRx partners with some of the world’s leading pharmaceutical and life sciences companies to transform the healthcare landscape and create a healthier future for all.

    Important Cautions Regarding Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates”, “believes”, “estimates”, “expects”, “forecasts”, “intends”, “plans”, “projects”, “targets”, “designed”, “could”, “may”, “should”, “will” or other similar words and expressions are intended to identify these forward-looking statements. All statements that reflect the Company’s expectations, assumptions, projections, beliefs or opinions about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements relating to the Company’s growth, business plans, future performance. These forward-looking statements are based on the Company’s current expectations and assumptions regarding the Company’s business, the economy, and other future conditions. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise, except as required by applicable law. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition, and other risks summarized in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, its subsequent Quarterly Reports on Form 10-Q, and its other filings with the Securities and Exchange Commission.

    OptimizeRx Contact 
    Andy D’Silva, SVP Corporate Finance   
    adsilva@optimizerx.com   
      
    Investor Relations Contact
    Steven Halper
    LifeSci Advisors, LLC
    shalper@lifesciadvisors.com

    The MIL Network –

  • MIL-OSI: Zoom to Release Financial Results for the First Quarter of Fiscal Year 2026

    Source: GlobeNewswire (MIL-OSI)

    SAN JOSE, Calif., May 01, 2025 (GLOBE NEWSWIRE) — Zoom Communications, Inc. (NASDAQ: ZM) today announced it will release its financial results for the first quarter of fiscal year 2026 on Wednesday, May 21, 2025, after the market closes.

    A live Zoom Webinar of the event can be accessed at 2:00 pm PT / 5:00 pm ET through Zoom’s investor relations website at https://investors.zoom.com. A replay will be available approximately two hours after the conclusion of the live event.

    About Zoom
    Zoom’s mission is to provide an AI-first work platform for human connection. Reimagine teamwork with Zoom Workplace — Zoom’s open collaboration platform with AI Companion empowers teams to be more productive. Together with Zoom Workplace, Zoom’s Business Services for sales, marketing, and customer experience teams, including Zoom Contact Center, strengthen customer relationships throughout the customer lifecycle. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Get more information at zoom.com.

    Public Relations
    Colleen Rodriguez
    Head of Global PR for Zoom
    press@zoom.us

    Investor Relations
    Charles Eveslage
    Head of Investor Relations for Zoom
    investors@zoom.us

    The MIL Network –

  • MIL-OSI: iRhythm Technologies Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, May 01, 2025 (GLOBE NEWSWIRE) — iRhythm Technologies, Inc. (NASDAQ: IRTC), a leading digital health care company focused on creating trusted solutions that detect, predict, and prevent disease, today reported financial results for the three months ended March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Revenue of $158.7 million, a 20.3% increase compared to first quarter 2024
    • Gross margin of 68.8%, a 250-basis point increase compared to first quarter 2024
    • Unrestricted cash, cash equivalents, and marketable securities of $520.6 million as of March 31, 2025
    • Increased fiscal year 2025 guidance for revenue and adjusted EBITDA margin

    Recent Operational Highlights

    • Strong quarterly revenue unit volume driven by momentum from innovative value-based care accounts as well as demand from Zio AT in the United States and record demand in the United Kingdom
    • Expanded global reach with commercial launch of Zio monitor in Japan, highlighting our continued commitment to bringing our innovative digital healthcare solutions to millions of people worldwide
    • As presented at ACC.25, two large real-world studies in over one million patients revealed that short-term, Holter-duration monitoring frequently misses actionable arrhythmias – 64% of daily-symptom patients with actionable arrhythmias went undetected in the first 48 hours – and that patient-reported symptoms are an unreliable predictor of arrhythmic events1,2
    • AVALON study recently presented at Heart Rhythm Society found that the Zio® long-term continuous monitor (LTCM) associated with higher adjusted odds of arrhythmia detection, fewer repeat tests, and reduced likelihood of cardiovascular events compared to other modalities and LTCM brands in the follow-up year3

    “The first quarter of 2025 demonstrated continued commercial momentum, with revenue growth exceeding 20% year-over-year, driven by upstream expansion in the patient care pathway and strength in our Zio AT business,” said Quentin Blackford, President and Chief Executive Officer of iRhythm. “We’ve seen increasing demand from recently opened accounts while also driving penetration within innovative, value-based care and risk-bearing entities. With our recent commercial launch in Japan, we are now actively driving physician and health system awareness of Zio in six markets outside the U.S., contributing to our milestone of 10 million patient reports posted since iRhythm’s inception. With strong execution across multiple growth levers and additional catalysts on the horizon, we are more excited than ever as we continue to enable the earlier diagnosis of cardiac arrhythmias, opening the potential to reduce costs and deliver meaningful value for patients, our customers, healthcare systems, and shareholders.”

    First Quarter Financial Results
    Revenue for the first quarter of 2025 was $158.7 million, up 20.3% from $131.9 million during the same period in 2024. The increase was driven by growth in demand for Zio services.

    Gross profit for the first quarter of 2025 was $109.2 million, up 24.8% from $87.5 million during the same period in 2024, while gross margin was 68.8%, up from 66.3% during the same period in 2024. The increase in gross profit was primarily due to increased volume of Zio services provided due to higher demand. The increase in gross margin was primarily due to volume leverage as well as operational efficiencies, partially offset by an increased blended cost per unit from a higher Zio AT product mix.

    Operating expenses for the first quarter of 2025 were $141.8 million, compared to $125.7 million for the same period in 2024. Adjusted operating expenses for the first quarter of 2025 were $140.4 million, compared to $125.7 million during the same period in 2024. The increase in adjusted operating expenses was primarily driven by funding of innovation and incremental costs to serve a growing volume of patients globally.

    Net loss for the first quarter of 2025 was $30.7 million, or a diluted loss of $0.97 per share, compared with net loss of $45.7 million, or a diluted loss of $1.47 per share, for the same period in 2024. Adjusted net loss for the first quarter of 2025 was $30.3 million, or a diluted loss of $0.95 per share, compared with an adjusted net loss of $38.1 million, or a diluted loss of $1.23 per share, for the same period in 2024. The decrease in net loss was primarily driven by our revenue growth and operating leverage achieved through implementation of efficiency initiatives.

    Unrestricted cash, cash equivalents, and marketable securities were $520.6 million as of March 31, 2025.

    2025 Annual Guidance
    iRhythm projects revenue for the full year 2025 between $690 million to $700 million. Adjusted EBITDA margin for the full year 2025 is expected to range from approximately 7.5% to 8.5% of revenues.

    Webcast and Conference Call Information
    iRhythm’s management team will host a conference call today beginning at 1:30 p.m. PT/4:30 p.m. ET. Interested parties may access a live and archived webcast of the presentation on the “Events & Presentations” section of the company’s investor website at investors.irhythmtech.com.

    About iRhythm Technologies, Inc.
    iRhythm is a leading digital health care company that creates trusted solutions that detect, predict, and prevent disease. Combining wearable biosensors and cloud-based data analytics with powerful proprietary algorithms, iRhythm distills data from millions of heartbeats into clinically actionable information. Through a relentless focus on patient care, iRhythm’s vision is to deliver better data, better insights, and better health for all.

    Reclassifications
    Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications have no impact on previously reported results of operations or financial position.

    Use of Non-GAAP Financial Measures
    We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including adjusted EBITDA, adjusted net loss, adjusted net loss per share and adjusted operating expenses. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. See the schedules attached to this press release for additional information and reconciliations of such non-GAAP financial measures. We have not reconciled our adjusted operating expenses and adjusted EBITDA margin estimates for full year 2025 because certain items that impact these figures are uncertain or out of our control and cannot be reasonably predicted. Accordingly, a reconciliation of adjusted operating expenses and adjusted EBITDA estimates is not available without unreasonable effort.

    Adjusted EBITDA excludes non-cash operating charges for stock-based compensation expense, changes in fair value of strategic investments, impairment and restructuring charges, business transformation costs, certain intellectual property litigation expenses and settlements, and loss on extinguishment of debt. Business transformation costs include costs associated with professional services, employee termination and relocation, third-party merger and acquisition, integration, and other costs to augment and restructure the organization, inclusive of both outsourced and offshore resources.

    Beginning in the first quarter of 2025, we have excluded third-party attorneys’ fees and expenses associated with patent litigation brought against the Company by Welch Allyn, Inc. and Bardy Diagnostics, Inc., subsidiaries of Baxter International, Inc. Factors we considered in arriving at this determination to exclude these patent litigation costs from our non-GAAP financial measures include frequency and complexity of the patent litigation, the counterparty involved, and the expected magnitude of patent litigation costs for this matter.

    Forward-Looking Statements
    This press 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, and the Private Securities Litigation Reform Act of 1995. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future actions or operating or financial performance. In particular, these statements include statements regarding financial guidance, market opportunity, ability to penetrate the market, international market expansion, anticipated productivity and quality improvements, and expectations for growth. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties, many of which are beyond our control, include risks described in the section entitled “Risk Factors” and elsewhere in our filings made with the Securities and Exchange Commission, including those on the Form 10-Q expected to be filed on or about May 1, 2025. These forward-looking statements speak only as of the date hereof and should not be unduly relied upon. iRhythm disclaims any obligation to update these forward-looking statements.

    Investor Contact
    Stephanie Zhadkevich
    investors@irhythmtech.com

    Media Contact
    Kassandra Perry
    irhythm@highwirepr.com

    1. Battisti, T, Pinkerton, R, Fokin, V. et al. “Arrhythmias in patietns with daily vs non-daily symptoms undergoing long-term continuous patch ECG monitoring.” JACC. 2025 Apr, 85 (12_Supplement) 221.
    2. Battisti, T, Pinkerton, R, Fokin, V. et al.“Symptom-Rhythm Correlation Patterns in Patients Undergoing Ambulatory ECG Monitoring: Analysis of Over 1 Million Patients.” JACC. 2025 Apr, 85 (12_Supplement) 37.
    3. Russo, Pierantonio et al. “Assessment of Variation in AmbuLatory Cardiac MONitoring: Real-World Evidence of Commercially Insured Beneficiaries.” Heart Rhythm, Volume 22, Issue 4, S547.
    IRHYTHM TECHNOLOGIES, INC.
    Condensed Consolidated Balance Sheets
    (In thousands, except par value)
    (unaudited)
     
      March 31, 2025   December 31, 2024
    Assets      
    Current assets:      
    Cash and cash equivalents $ 375,278     $ 419,597  
    Marketable securities   145,311       115,956  
    Accounts receivable, net   80,639       79,941  
    Inventory   14,336       14,039  
    Prepaid expenses and other current assets   20,449       16,286  
    Total current assets   636,013       645,819  
    Property and equipment, net   130,850       125,092  
    Operating lease right-of-use assets   46,171       47,564  
    Restricted cash   8,358       8,358  
    Goodwill   862       862  
    Long-term strategic investments   62,745       61,902  
    Other assets   41,099       41,852  
    Total assets $ 926,098     $ 931,449  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 11,946     $ 7,221  
    Accrued liabilities   79,976       84,900  
    Deferred revenue   3,282       2,932  
    Operating lease liabilities, current portion   16,140       15,867  
    Total current liabilities   111,344       110,920  
    Long-term senior convertible notes   647,237       646,443  
    Other noncurrent liabilities   8,727       8,579  
    Operating lease liabilities, noncurrent portion   72,125       74,599  
    Total liabilities   839,433       840,541  
    Stockholders’ equity:      
    Preferred stock, $0.001 par value – 5,000 shares authorized; none issued and outstanding at March 31, 2025 and December 31, 2024   —       —  
    Common stock, $0.001 par value – 100,000 shares authorized; 32,144 shares issued and 31,915 shares outstanding at March 31, 2025, respectively; 31,621 shares issued and 31,392 shares outstanding at December 31, 2024, respectively   32       31  
    Additional paid-in capital   901,085       874,607  
    Accumulated other comprehensive loss   143       165  
    Accumulated deficit   (789,595 )     (758,895 )
    Treasury stock, at cost; 229 shares at March 31, 2025 and December 31, 2024   (25,000 )     (25,000 )
    Total stockholders’ equity   86,665       90,908  
    Total liabilities and stockholders’ equity $ 926,098     $ 931,449  
                   
    IRHYTHM TECHNOLOGIES, INC.
    Condensed Consolidated Statements of Operations
    (In thousands, except per share data)
    (unaudited)
     
        Three Months Ended March 31,
          2025       2024  
    Revenue, net   $ 158,677     $ 131,929  
    Cost of revenue     49,461       44,413  
    Gross profit     109,216       87,516  
    Operating expenses:        
    Research and development     21,519       16,994  
    Acquired in-process research and development     296       —  
    Selling, general and administrative     119,957       108,660  
    Total operating expenses     141,772       125,654  
    Loss from operations     (32,556 )     (38,138 )
    Interest and other income (expense), net:        
    Interest income     4,919       3,057  
    Interest expense     (3,273 )     (2,860 )
    Loss on extinguishment of debt     —       (7,589 )
    Other income (expense), net     875       (105 )
    Total interest and other income (expense), net     2,521       (7,497 )
    Loss before income taxes     (30,035 )     (45,635 )
    Income tax provision     665       32  
    Net loss   $ (30,700 )   $ (45,667 )
    Net loss per common share, basic and diluted   $ (0.97 )   $ (1.47 )
    Weighted-average shares, basic and diluted     31,590       31,033  
                     
    IRHYTHM TECHNOLOGIES, INC.
    Reconciliation of GAAP to Non-GAAP Financial Information
    (in thousands, except per share data)
    (unaudited)
     
        Three Months Ended March 31,
          2025       2024  
    Adjusted EBITDA reconciliation*        
    Net loss, as reported1   $ (30,700 )   $ (45,667 )
    Interest expense     3,273       2,860  
    Interest income     (4,919 )     (3,057 )
    Changes in fair value of strategic investments     (843 )     —  
    Income tax provision     665       32  
    Depreciation and amortization     5,210       5,131  
    Stock-based compensation     23,344       20,991  
    Business transformation costs     503       —  
    Intellectual property litigation costs2     832       —  
    Loss on extinguishment of debt     —       7,589  
    Adjusted EBITDA   $ (2,635 )   $ (12,121 )
             
    Adjusted net loss reconciliation*        
    Net loss, as reported1   $ (30,700 )   $ (45,667 )
    Business transformation costs     503       —  
    Intellectual property litigation costs2     832       —  
    Changes in fair value of strategic investments     (843 )     —  
    Loss on extinguishment of debt     —       7,589  
    Tax effect of adjustments3     (91 )     —  
    Adjusted net loss   $ (30,299 )   $ (38,078 )
             
    Adjusted net loss per share reconciliation*        
    Net loss per share, as reported1   $ (0.97 )   $ (1.47 )
    Business transformation costs per share     0.02       —  
    Intellectual property litigation costs per share2     0.03       —  
    Changes in fair value of strategic investments per share     (0.03 )     —  
    Loss on extinguishment of debt per share     —       0.24  
    Tax effect of adjustments per share3     —       —  
    Adjusted net loss per share   $ (0.95 )   $ (1.23 )
    Weighted-average shares, basic and diluted     31,590       31,033  
             
    Adjusted operating expense reconciliation*        
    Operating expense, as reported   $ 141,772     $ 125,654  
    Business transformation costs     (503 )     —  
    Intellectual property litigation costs2     (832 )     —  
    Adjusted operating expense   $ 140,437     $ 125,654  
                     

    *Certain numbers expressed may not sum due to rounding.
    1 Net loss for the three months ended March 31, 2025 includes $0.3 million of acquired in-process research and development expense.
    2 Excludes third-party attorneys’ fees and expenses associated with patent litigation brought against the Company by Welch Allyn, Inc. and Bardy Diagnostics, Inc., subsidiaries of Baxter International, Inc.
    3 Income tax impact of Non-GAAP adjustments listed.

    The MIL Network –

  • MIL-OSI: Trupanion Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, May 01, 2025 (GLOBE NEWSWIRE) — Trupanion, Inc. (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the first quarter ended March 31, 2025.

    “Q1 was a strong start to the year, with performance ahead of plan across key metrics,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “We saw early momentum in both retention and pet acquisition, and with expanded margins in our subscription business, we’re well-positioned to continue to invest in growth.”

    First Quarter 2025 Financial and Business Highlights

    • Total revenue was $342.0 million, an increase of 12% compared to the first quarter of 2024.
    • Total enrolled pets (including pets from our other business segment) was 1,667,637 at March 31, 2025, a decrease of 2% over March 31, 2024.
    • Subscription business revenue was $233.1 million, an increase of 16% compared to the first quarter of 2024.
    • Subscription enrolled pets was 1,052,845 at March 31, 2025, an increase of 5% over March 31, 2024.
    • Net loss was $(1.5) million, or $(0.03) per basic and diluted share, compared to a net loss of $(6.9) million, or $(0.16) per basic and diluted share, in the first quarter of 2024.
    • Adjusted EBITDA was $12.2 million, compared to adjusted EBITDA of $4.8 million in the first quarter of 2024.
    • Operating cash flow was $16.0 million and free cash flow was $14.0 million in the first quarter of 2025. This compared to operating cash flow of $2.4 million and free cash flow of $(0.6) million in the first quarter of 2024.
    • At March 31, 2025, the Company held $321.8 million in cash and short-term investments, including $48.8 million held outside the insurance entities, with an additional $15.0 million available under its credit facility.

    Conference Call
    Trupanion’s management will host a conference call today to review its first quarter 2025 results. The call is scheduled to begin shortly after 1:30 p.m. PT/ 4:30 p.m. ET. A live webcast will be accessible through the Investor Relations section of Trupanion’s website at https://investors.trupanion.com/ and will be archived online for 3 months upon completion of the conference call. Participants can access the conference call by dialing 1-866-250-8117 (United States) or 1-412-317-6011 (International). A telephonic replay of the call will also be available after the completion of the call, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 10197710.

    About Trupanion
    Trupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, and certain countries in Continental Europe with over 1,000,000 pets currently enrolled. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet’s recovery, not financial stress. Trupanion is committed to providing pet parents with the highest value in pet medical insurance with unlimited payouts for the life of their pets. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol “TRUP”. The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Accelerant Insurance Company of Canada. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. Policies are sold and administered in Canada by Canada Pet Health Insurance Services, Inc. dba Trupanion 309-1277 Lynn Valley Road, North Vancouver, BC V7J 0A2 and in the United States by Trupanion Managers USA, Inc. (CA license No. 0G22803, NPN 9588590). Canada Pet Health Insurance Services, Inc. is a registered damage insurance agency and claims adjuster in Quebec #603927. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. For more information, please visit trupanion.com.

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for Trupanion, including, but not limited to, its expectations regarding its ability to continue to grow its enrollments and revenue, and otherwise execute its business plan. These forward-looking statements are based upon the current expectations and beliefs of Trupanion’s management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Trupanion as of the date hereof, and Trupanion has no obligation to update these forward-looking statements.

    In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods; the ability to keep growing our membership base and revenue; the accuracy of assumptions used in determining appropriate member acquisition expenditures; the severity and frequency of claims; the ability to maintain high retention rates; the accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency; actual claims expense exceeding estimates; regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing modifications in response to changes in actual or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner model and of our Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members; the ability to retain existing Territory Partners and increase the number of Territory Partners and active hospitals; compliance by us and those referring us members with laws and regulations that apply to our business, including the sale of a pet medical plan; the ability to maintain the security of our data; fluctuations in the Canadian currency exchange rate; the ability to protect our proprietary and member information; the ability to maintain our culture and team; the ability to maintain the requisite amount of risk-based capital; our ability to implement and maintain effective controls, including to remediate material weaknesses in internal controls over financial reporting; the ability to protect and enforce Trupanion’s intellectual property rights; the ability to successfully implement our alliance with Aflac; the ability to continue key contractual relationships with third parties; third-party claims including litigation and regulatory actions; the ability to recognize benefits from investments in new solutions and enhancements to Trupanion’s technology platform and website; our ability to retain key personnel; and deliberations and determinations by the Trupanion board based on the future performance of the company or otherwise.

    For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the Securities and Exchange Commission (SEC), including but not limited to, Trupanion’s Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequently filed reports on Forms 10-Q, 10-K and 8-K. All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system at https://www.sec.gov or the Investor Relations section of Trupanion’s website at https://investors.trupanion.com.

    Non-GAAP Financial Measures
    Trupanion’s stated results may include certain non-GAAP financial measures. These non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry as other companies in its industry may calculate or use non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Trupanion’s reported financial results. The presentation and utilization of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Trupanion urges its investors to review the reconciliation of its non-GAAP financial measures to the most directly comparable GAAP financial measures in its consolidated financial statements, and not to rely on any single financial or operating measure to evaluate its business. These reconciliations are included below and on Trupanion’s Investor Relations website.

    Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Trupanion believes that providing various non-GAAP financial measures that exclude stock-based compensation expense and depreciation and amortization expense allows for more meaningful comparisons between its operating results from period to period. Trupanion offsets new pet acquisition expense with sign-up fee revenue in the calculation of net acquisition cost because it collects sign-up fee revenue from new members at the time of enrollment and considers it to be an offset to a portion of Trupanion’s new pet acquisition expense. Trupanion believes this allows it to calculate and present financial measures in a consistent manner across periods. Trupanion’s management believes that the non-GAAP financial measures and the related financial measures derived from them are important tools for financial and operational decision-making and for evaluating operating results over different periods of time.

    Trupanion, Inc.
    Condensed Consolidated Statements of Operations
    (in thousands, except share data)
        Three Months Ended March 31,
          2025       2024  
      (unaudited)
    Revenue:        
    Subscription business   $ 233,064     $ 201,134  
    Other business     108,911       104,987  
    Total revenue     341,975       306,121  
    Cost of revenue:        
    Subscription business     189,845       172,132  
    Other business     101,027       97,762  
    Total cost of revenue(1),(2)     290,872       269,894  
    Operating expenses:        
    Technology and development(1)     8,072       6,960  
    General and administrative(1)     19,892       14,673  
    New pet acquisition expense(1)     20,516       16,843  
    Depreciation and amortization     3,791       3,785  
    Total operating expenses     52,271       42,261  
    Loss from investment in joint venture     (305 )     (103 )
    Operating loss     (1,473 )     (6,137 )
    Interest expense     3,211       3,596  
    Other (income), net     (3,240 )     (2,843 )
    Loss before income taxes     (1,444 )     (6,890 )
    Income tax (benefit) expense     39       (38 )
    Net loss   $ (1,483 )   $ (6,852 )
             
    Net loss per share:        
    Basic and diluted   $ (0.03 )   $ (0.16 )
    Weighted average shares of common stock outstanding:        
    Basic and diluted     42,775,955       41,917,094  
             
    (1)Includes stock-based compensation expense as follows:
        Three Months Ended March 31,
          2025       2024  
    Cost of revenue   $ 1,259     $ 1,390  
    Technology and development     1,151       1,254  
    General and administrative     4,528       3,449  
    New pet acquisition expense     2,892       2,059  
    Total stock-based compensation expense   $ 9,830     $ 8,152  
             
    (2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows:
        Three Months Ended March 31,
          2025       2024  
    Veterinary invoice expense   $ 247,450     $ 233,569  
    Other cost of revenue     43,422       36,325  
    Total cost of revenue   $ 290,872     $ 269,894  
    Trupanion, Inc.
    Condensed Consolidated Balance Sheets
    (in thousands, except share data)
      March 31,
    2025    		   December 31,
    2024
      (unaudited)    
    Assets      
    Current assets:      
    Cash and cash equivalents $ 166,308     $ 160,295  
    Short-term investments   155,508       147,089  
    Accounts and other receivables, net of allowance for credit losses of $1,046 at March 31, 2025 and $1,117 at December 31, 2024   290,104       274,031  
    Prepaid expenses and other assets   16,417       15,912  
    Total current assets   628,337       597,327  
    Restricted cash   39,702       39,235  
    Long-term investments   376       373  
    Property, equipment and internal-use software, net   101,938       102,191  
    Intangible assets, net   12,130       13,177  
    Other long-term assets   16,356       17,579  
    Goodwill   38,323       36,971  
    Total assets $ 837,162     $ 806,853  
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 9,681     $ 11,532  
    Accrued liabilities and other current liabilities   36,907       33,469  
    Reserve for veterinary invoices   54,042       51,635  
    Deferred revenue   267,357       251,640  
    Long-term debt – current portion   1,350       1,350  
    Total current liabilities   369,337       349,626  
    Long-term debt   127,526       127,537  
    Deferred tax liabilities   1,884       1,946  
    Other liabilities   4,742       4,476  
    Total liabilities   503,489       483,585  
    Stockholders’ equity:      
    Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 43,804,141 and 42,775,955 issued and outstanding at March 31, 2025; 43,516,631 and 42,488,445 shares issued and outstanding at December 31, 2024   —       —  
    Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding   —       —  
    Additional paid-in capital   578,293       568,302  
    Accumulated other comprehensive loss   (715 )     (2,612 )
    Accumulated deficit   (227,371 )     (225,888 )
    Treasury stock, at cost: 1,028,186 shares at March 31, 2025 and December 31, 2024   (16,534 )     (16,534 )
    Total stockholders’ equity   333,673       323,268  
    Total liabilities and stockholders’ equity $ 837,162     $ 806,853  
    Trupanion, Inc.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
      Three Months Ended March 31,
        2025       2024  
      (unaudited)
    Operating activities      
    Net loss $ (1,483 )   $ (6,852 )
    Adjustments to reconcile net loss to cash provided by operating activities:      
    Depreciation and amortization   3,791       3,785  
    Stock-based compensation expense   9,830       8,152  
    Other, net   349       (202 )
    Changes in operating assets and liabilities:      
    Accounts and other receivables   (15,965 )     (10,718 )
    Prepaid expenses and other assets   (204 )     287  
    Accounts payable, accrued liabilities, and other liabilities   1,527       (5,131 )
    Reserve for veterinary invoices   2,407       (885 )
    Deferred revenue   15,712       13,998  
    Net cash provided by operating activities   15,964       2,434  
    Investing activities      
    Purchases of investment securities   (40,875 )     (19,193 )
    Maturities and sales of investment securities   33,242       19,005  
    Purchases of property, equipment, and internal-use software   (1,928 )     (3,065 )
    Other   588       516  
    Net cash used in investing activities   (8,973 )     (2,737 )
    Financing activities      
    Repayment of debt financing   (338 )     (338 )
    Proceeds from exercise of stock options   1,024       372  
    Shares withheld to satisfy tax withholding   (915 )     (245 )
    Other   (230 )     (75 )
    Net cash used in financing activities   (459 )     (286 )
    Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net   (52 )     (313 )
    Net change in cash, cash equivalents, and restricted cash   6,480       (902 )
    Cash, cash equivalents, and restricted cash at beginning of period   199,530       170,464  
    Cash, cash equivalents, and restricted cash at end of period $ 206,010     $ 169,562  
    The following tables set forth our key operating metrics.
                                   
      Three Months Ended March 31,                        
        2025       2024                          
    Total Business:                              
    Total pets enrolled (at period end)   1,667,637       1,708,017                          
    Subscription Business:                              
    Total subscription pets enrolled (at period end)   1,052,845       1,006,168                          
    Monthly average revenue per pet $ 77.53     $ 69.79                          
    Average pet acquisition cost (PAC) $ 267     $ 207                          
    Average monthly retention   98.28 %     98.41 %                        
                                   
                                   
      Three Months Ended
      Mar. 31, 2025   Dec. 31, 2024   Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sep. 30, 2023   Jun. 30, 2023
    Total Business:                              
    Total pets enrolled (at period end)   1,667,637       1,677,570       1,688,903       1,699,643       1,708,017       1,714,473       1,712,177       1,679,659  
    Subscription Business:                              
    Total subscription pets enrolled (at period end)   1,052,845       1,041,212       1,032,042       1,020,934       1,006,168       991,426       969,322       943,958  
    Monthly average revenue per pet $ 77.53     $ 76.02     $ 74.27     $ 71.72     $ 69.79     $ 67.07     $ 65.82     $ 64.41  
    Average pet acquisition cost (PAC) $ 267     $ 261     $ 243     $ 231     $ 207     $ 217     $ 212     $ 236  
    Average monthly retention   98.28 %     98.25 %     98.29 %     98.34 %     98.41 %     98.49 %     98.55 %     98.61 %
    The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands):
           
      Three Months Ended March 31,
        2025       2024  
    Net cash provided by operating activities $ 15,964     $ 2,434  
    Purchases of property, equipment, and internal-use software   (1,928 )     (3,065 )
    Free cash flow $ 14,036     $ (631 )
    The following tables reflect the reconciliation between GAAP and non-GAAP measures (in thousands except percentages):
      Three Months Ended March 31,
        2024       2023  
    Veterinary invoice expense $ 247,450     $ 233,569  
    Less:      
    Stock-based compensation expense(1)   (763 )     (862 )
    Other business cost of paying veterinary invoices(3)   (79,269 )     (81,213 )
    Subscription cost of paying veterinary invoices (non-GAAP) $ 167,418     $ 151,494  
    % of subscription revenue   71.8 %     75.3 %
           
    Other cost of revenue $ 43,422     $ 36,325  
    Less:      
    Stock-based compensation expense(1)   (482 )     (420 )
    Other business variable expenses(3)   (21,736 )     (16,498 )
    Subscription variable expenses (non-GAAP) $ 21,204     $ 19,407  
    % of subscription revenue   9.1 %     9.6 %
           
    Technology and development expense $ 8,072     $ 6,960  
    General and administrative expense   19,892       14,673  
    Less:      
    Stock-based compensation expense(1)   (5,396 )     (4,258 )
    Development expenses(2)   (1,406 )     (1,178 )
    Fixed expenses (non-GAAP) $ 21,162     $ 16,197  
    % of total revenue   6.2 %     5.3 %
           
    New pet acquisition expense $ 20,516     $ 16,843  
    Less:      
    Stock-based compensation expense(1)   (2,873 )     (1,857 )
    Other business pet acquisition expense(3)   (3 )     (13 )
    Subscription acquisition cost (non-GAAP) $ 17,640     $ 14,973  
    % of subscription revenue   7.6 %     7.4 %
           
    (1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation according to GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.3 million for the three months ended March 31, 2025.
    (2) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant.
    (3) Excluding the portion of stock-based compensation expense attributable to the other business segment.
    The following tables reflect the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
      Three Months Ended March 31,
        2025       2024  
    Operating Loss $ (1,473 )   $ (6,138 )
    Non-GAAP expense adjustments      
    Acquisition cost   17,643       14,985  
    Stock-based compensation expense(1)   9,514       7,397  
    Development expenses(2)   1,406       1,179  
    Depreciation and amortization   3,791       3,785  
    Gain (loss) from investment in joint venture   (305 )     (103 )
    Total adjusted operating income (non-GAAP) $ 31,186     $ 21,312  
           
    Subscription Business:      
    Subscription operating income (loss) $ 1,065     $ (4,525 )
    Non-GAAP expense adjustments      
    Acquisition cost   17,640       14,973  
    Stock-based compensation expense(1)   7,772       5,882  
    Development expenses(2)   958       774  
    Depreciation and amortization   2,584       2,487  
    Subscription adjusted operating income (non-GAAP) $ 30,019     $ 19,591  
           
    Other Business:      
    Other business operating loss $ (2,233 )   $ (1,510 )
    Non-GAAP expense adjustments      
    Acquisition cost   3       12  
    Stock-based compensation expense(1)   1,742       1,516  
    Development expenses(2)   448       404  
    Depreciation and amortization   1,207       1,298  
    Other business adjusted operating income (non-GAAP) $ 1,167     $ 1,720  
           
    (1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation in accordance with GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.3 million for the three months ended March 31, 2025.
    (2) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant.
    The following tables reflect the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
                   
      Three Months Ended March 31,
        2025       2024  
    Subscription revenue $ 233,064     $ 201,134  
    Subscription cost of paying veterinary invoices   167,418       151,493  
    Subscription variable expenses   21,204       19,407  
    Subscription fixed expenses*   14,423       10,642  
    Subscription adjusted operating income (non-GAAP) $ 30,019     $ 19,591  
    Other business revenue   108,911       104,987  
    Other business cost of paying veterinary invoices   79,269       81,213  
    Other business variable expenses   21,736       16,498  
    Other business fixed expenses*   6,739       5,555  
    Other business adjusted operating income (non-GAAP) $ 1,167     $ 1,721  
    Revenue   341,975       306,121  
    Cost of paying veterinary invoices   246,687       232,707  
    Variable expenses   42,940       35,905  
    Fixed expenses*   21,162       16,197  
    Total business adjusted operating income (non-GAAP) $ 31,186     $ 21,312  
           
    As a percentage of revenue: Three Months Ended March 31,
        2024       2023  
    Subscription revenue   100.0 %     100.0 %
    Subscription cost of paying veterinary invoices   71.8 %     75.3 %
    Subscription variable expenses   9.1 %     9.6 %
    Subscription fixed expenses*   6.2 %     5.3 %
    Subscription adjusted operating income (non-GAAP)   12.9 %     9.7 %
           
    Other business revenue   100.0 %     100.0 %
    Other business cost of paying veterinary invoices   72.8 %     77.4 %
    Other business variable expenses   20.0 %     15.7 %
    Other business fixed expenses*   6.2 %     5.3 %
    Other business adjusted operating income (non-GAAP)   1.1 %     1.6 %
           
    Revenue   100.0 %     100.0 %
    Cost of paying veterinary invoices   72.1 %     76.0 %
    Variable expenses   12.6 %     11.7 %
    Fixed expenses*   6.2 %     5.3 %
    Total business adjusted operating income (non-GAAP)   9.1 %     7.0 %
           
    *Fixed expenses represent shared services that support both our subscription and other business segments and, as such, are generally allocated to each segment pro-rata based on revenues.

    Adjusted operating income is a non-GAAP financial measure that adjusts operating income (loss) to remove the effect of acquisition cost, development expenses, non-recurring transaction or restructuring expenses, and gain (loss) from investment in joint venture. Non-cash items, such as stock-based compensation expense and depreciation and amortization, are also excluded. Acquisition cost, development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization are expected to remain recurring expenses for the foreseeable future, but are excluded from this metric to measure scale in other areas of the business. Management believes acquisition costs primarily represent the cost to acquire new subscribers and are driven by the amount of growth we choose to pursue based primarily on the amount of our adjusted operating income period over period. Accordingly, this measure is not indicative of our core operating income performance. We also exclude development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization because some investors may not view those items as reflective of our core operating income performance.

    Management uses adjusted operating income and the margin on adjusted operating income to understand the effects of scale in its non-acquisition cost and development expenses and to plan future advertising expenditures, which are designed to acquire new pets. Management uses this measure as a principal way of understanding the operating performance of its business exclusive of acquisition cost and new product exploration and development initiatives. Management believes disclosure of this metric provides investors with the same data that the Company employs in assessing its overall operations and that disclosure of this measure may provide useful information regarding the efficiency of our utilization of revenues, return on advertising dollars in the form of new subscribers and future use of available cash to support the continued growth of our business.

    The following tables reflect the reconciliation of adjusted EBITDA to net loss (in thousands):
                                   
      Three Months Ended March 31,                        
        2025       2024                          
    Net loss $ (1,483 )   $ (6,852 )                        
    Excluding:                              
    Stock-based compensation expense   9,514       7,398                          
    Depreciation and amortization expense   3,791       3,785                          
    Interest income   (2,835 )     (3,045 )                        
    Interest expense   3,211       3,596                          
    Income tax expense (benefit)   39       (38 )                        
    Adjusted EBITDA $ 12,237     $ 4,844                          
                                   
      Three Months Ended
      Mar. 31, 2025   Dec. 31, 2024   Sep. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sep. 30, 2023   Jun. 30, 2023
    Net (loss) income $ (1,483 )   $ 1,656     $ 1,425     $ (5,862 )   $ (6,852 )   $ (2,163 )   $ (4,036 )   $ (13,714 )
    Excluding:                              
    Stock-based compensation expense   9,514       8,036       8,127       8,381       7,398       6,636       6,585       6,503  
    Depreciation and amortization expense   3,791       3,924       4,381       4,376       3,785       3,029       2,990       3,253  
    Interest income   (2,835 )     (2,999 )     (3,232 )     (3,135 )     (3,045 )     (2,842 )     (2,389 )     (2,051 )
    Interest expense   3,211       3,427       3,820       3,655       3,596       3,697       3,053       2,940  
    Income tax expense (benefit)   39       38       39       (44 )     (38 )     130       (43 )     (238 )
    Goodwill impairment charges   —       5,299       —       —       —       —       —       —  
    Non-recurring transaction or restructuring expenses   —       —       —       —       —       —       8       65  
    (Gain) loss from equity method investment   —       —       (33 )     —       —       —       (110 )     —  
    Adjusted EBITDA $ 12,237     $ 19,381     $ 14,527     $ 7,371     $ 4,844     $ 8,487     $ 6,058     $ (3,242 )
     

    Contacts:

    Investors:
    Laura Bainbridge, Senior Vice President, Corporate Communications
    Gil Melchior, Director, Investor Relations
    Investor.Relations@trupanion.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/af9a2ab5-2802-4ca8-8a90-199e1c54b91a

    The MIL Network –

  • MIL-OSI: SB Financial Group Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    DEFIANCE, Ohio, May 01, 2025 (GLOBE NEWSWIRE) — SB Financial Group, Inc. (NASDAQ: SBFG) (“SB Financial” or the “Company”), a diversified financial services company providing full-service community banking, mortgage banking, wealth management, private client and title insurance services today reported earnings for the first quarter ended March 31, 2025.

    First Quarter 2025 Highlights Over the First Quarter Prior Year Include:

    • Adjusted net income of $2.7 million, after accounting for $0.7 million of nonrecurring merger expenses, was up 23.2 percent from the prior year adjusted net income of $2.2 million, with adjusted Diluted Earnings Per Share (“DEPS”) of $0.42. Unadjusted net income and EPS were slightly below the prior year quarter.
    • Successful completion of the Marblehead Bank acquisition, adding $56 million of low-cost deposits and $19 million in loans.
    • Interest income of $17.4 million increased by 13.5 percent from $15.3 million reported in the prior year quarter.
    • Loan growth of $96.7 million, or 9.8 percent from the prior-year quarter, with growth from the linked quarter of $41.6 million. This was our fourth consecutive quarter of sequential expanding loan growth, year over year. Growth adjusted for the Marblehead acquisition would be $78.2 and $23.1 million, from the linked quarter.
    • Deposit growth of $159.7 million, or 14.4 percent from the prior-year quarter, with growth from the linked quarter of $119.4 million. Growth adjusted for the Marblehead acquisition would be $103.7 and $63.4 million, from the linked quarter.
    • Tangible book value (“TBV”) per share ended the quarter at $15.79 up $0.86 per share or 5.8 percent from the prior year quarter. Absent the per share dilution from the acquisition of $0.87, TBV would have been up $1.73 per share or 11.6 percent.
    Earnings Highlights Three Months Ended
    ($ in thousands, except per share & ratios) Mar. 2025 Mar. 2024 % Change
    Operating revenue $ 15,386   $ 13,131   17.2 %
    Interest income   17,372     15,300   13.5 %
    Interest expense   6,093     6,120   -0.4 %
    Net interest income   11,279     9,180   22.9 %
    Provision for credit losses   387     –   N/M
    Noninterest income   4,107     3,951   3.9 %
    Noninterest expense   12,410     10,282   20.7 %
    Net income   2,158     2,368   -8.9 %
    Merger adjusted Earnings per diluted share   0.42     0.33   27.3 %
    Earnings per diluted share   0.33     0.35   -5.7 %
    Merger adjusted Return on Avg. Assets   0.76 %   0.67%   13.4 %
    Return on average assets   0.60 %   0.71%   -15.5 %
    Merger adjusted Return on Avg. Equity   8.35 %   7.26%   15.0 %
    Return on average equity   6.63 %   7.72%   -14.1 %

    “Our first quarter results highlight the value of our growth strategy, even in the midst of temporary economic uncertainty,” said Mark A. Klein, Chairman, President, and CEO. “Merger adjusted net income for the quarter was $2.7 million, a 22.3 percent increase from the prior-year quarter, with the GAAP EPS of $0.33 slightly down from the prior year. The successful closing of the acquisition in the first quarter significantly strengthened our liquidity position through their low-cost deposit base and further expanded our market presence in Northern Ohio. This marks an important milestone in executing our long-term growth strategy to grow organically and through M & A.”

    Interest income for the quarter grew by 13.5 percent to $17.4 million compared to the previous year, driven by continued strong loan growth. Total loans increased by $96.7 million, compared to the prior year, and by $41.5 million from the linked quarter. Adjusted for the Marblehead acquisition, total loan growth would have been $78.2 and $23.1 million, respectively. Deposits rose by $158.9 million, or 14.3 percent, to $1.27 billion, a result of the acquisition and a testament to the trust our clients place in us. Adjusted for the acquisition, deposit growth would have been $102.9 and $62.6 million, respectively.

    RESULTS OF OPERATIONS

    Consolidated Revenue

    In the first quarter of 2025, total operating revenue increased to $15.4 million, a 17.2 percent rise from $13.1 million in the prior year and a slight 0.1 percent decrease from the linked quarter, driven by growth in both net interest income and noninterest income. Net interest income reached $11.3 million, a strong 22.9 percent year-over-year increase, reflecting higher interest income on loans, which rose by $1.7 million to $15.4 million. Deposit costs increased by 5.1 percent to $5.4 million, but were largely offset by decreases in interest expense on other funding sources, resulting in a 0.4 percent decrease in total interest expense compared to the prior year quarter. As a result, the net interest margin expanded by 41 basis points year-over-year to 3.40 percent, reflecting the continued strength of our interest-earning assets and disciplined management of our funding costs. Noninterest income for the quarter increased by 3.9 percent year-over-year to $4.1 million due to improvements in gains on sale and title insurance, partially offset by decreases in mortgage loan servicing fees. Looking ahead, we remain focused on maintaining a balanced strategy that drives sustainable revenue growth while effectively managing costs, ensuring consistent value creation for our shareholders.

    Mortgage Loan Business

    Net mortgage banking revenue for the quarter reached $1.5 million, down $84,000 from the prior-year quarter. Loan servicing fees added $894,000 to revenue, reflecting an increase of $39,000 from the prior year quarter. The OMSR net valuation adjustment for the first quarter of 2025 was a positive $11,000 compared to a positive $181,000 in the first quarter of 2024.

                 
    Mortgage Banking            
    ($ in thousands) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Prior Year
    Growth
    Mortgage originations $ 39,775   $ 72,534   $ 70,715   $ 75,110   $ 42,912   $ (3,137 )
    Mortgage sales   39,279     62,301     61,271     55,835     36,623     2,656  
    Mortgage servicing portfolio   1,432,184     1,427,318     1,406,273     1,389,805     1,371,713     60,471  
    Mortgage servicing rights   14,965     14,868     14,357     14,548     14,191     774  
                 
                 
    Revenue            
    Loan servicing fees   894     886     874     862     855     39  
    OMSR amortization   (294 )   (358 )   (370 )   (335 )   (273 )   (21 )
    Net administrative fees   600     528     504     527     582     18  
    OMSR valuation adjustment   11     288     (465 )   38     181     (170 )
    Net loan servicing fees   611     816     39     565     763     (152 )
    Gain on sale of mortgages   849     1,196     1,311     1,277     781     68  
    Mortgage banking revenue, net $ 1,460   $ 2,012   $ 1,350   $ 1,842   $ 1,544   $ (84 )
                 

    Noninterest Income and Noninterest Expense

    “Noninterest income for the first quarter of 2025 totaled $4.1 million, up $156,000 or 3.9 percent from the prior-year quarter, primarily due to increased gains on sales of mortgage loans and OSMR, and increased title service and other revenue. Compared to the prior-year quarter, gains on sales of mortgage loans and OSMR grew modestly by $68,000 year over year, and title insurance revenue added $131,000, reflecting the consistent benefit of our revenue diversification strategy,” Mr. Klein noted.

                   
    Noninterest Income/Noninterest Expense          
    ($ in thousands, except ratios)   Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Prior Year
    Growth
    Noninterest Income (NII)   $ 4,107   $ 4,557   $ 4,123   $ 4,386   $ 3,951   $ 156  
    NII / Total Revenue     26.7%     29.5%     28.8%     31.5%     30.1%     -3.4%  
    NII / Average Assets     1.1%     1.3%     1.2%     1.3%     1.2%     -0.1%  
    Total Revenue Growth     17.2%     2.2%     4.5%     -0.6%     -6.1%     23.3%  
                                           
    Noninterest Expense (NIE)   $ 12,410   $ 11,003   $ 11,003   $ 10,671   $ 10,282   $ 2,128  
    Efficiency Ratio     80.0%     71.1%     76.8%     75.9%     78.2%     1.8%  
    NIE / Average Assets     3.4%     3.2%     3.2%     3.2%     3.1%     0.3%  
    Net Noninterest Expense/Avg. Assets   -2.3%     -1.9%     -2.0%     -1.9%     -1.9%     -0.4%  
    Total Expense Growth     20.7%     6.1%     5.0%     3.2%     -4.6%     25.3%  

    Noninterest expense for the first quarter of 2025 was impacted by the one-time merger related expenses of $726,000. Adjusting for these expenses and the $300,000 in Marblehead operating expenses for the quarter, total operating costs were up just 3.5 percent from the linked quarter and 10.7 percent.

    “Our efficiency ratio in the first quarter of 2025 was 76.0 percent when we factor out the merger related costs, which was an improvement compared to the prior year.” stated Mr. Klein.

    Balance Sheet

    As of March 31, 2025, SB Financial reported total assets of $1.50 billion, higher from both the linked quarter and the previous year. This growth was primarily driven by a robust increase in the loan portfolio, which reached $1.09 billion, marking a $96.7 million or 9.8 percent increase year over year. Loan growth also included $18.7 million in loans added with the completion of the acquisition. Cash increased by $78.5 million from the prior year, including $35 million added from the liquidation of the acquired investment portfolio.

    Total deposits increased to $1.27 billion, growing $158.9 million or 14.3 percent year over year, including $56 million in low-cost deposits from the acquisition and $102.9 million in organic deposit growth reflecting SB Financial’s successful efforts in deposit gathering and customer engagement. Shareholders’ equity ended the quarter at $131.5 million, representing a $7.8 million increase from the prior year. This growth reflects management’s commitment to enhancing shareholder value and the Company’s disciplined approach to capital management.

    During the first quarter, SB Financial repurchased 26,446 shares, less than previous quarters as the average price was above our target range. This reflects the Company’s dedication to returning value to shareholders through dividends and share repurchases while retaining adequate capital to support our long-term growth.

    “As we progress through the remainder of 2025, our balance sheet strength and strategic management of resources highlight our long-term strategic growth ambitions, both organically and through successful acquisitions,” said Mr. Klein, Chairman, President, and CEO. “Even in the current challenging rate environment, we achieved our fourth consecutive quarter of loan growth, with balances increasing by $96.7 million from the previous year, which included $78.2 million of organic loan growth. This performance underscores the strength of our deep client relationships and our continued competitiveness in the market. Our strong asset quality, supported by top-decile coverage ratios, remains a cornerstone of our financial stability, which we will leverage to take advantage of emerging opportunities while maintaining our focus on operational excellence. Looking ahead, we are committed to driving shareholder value and sustaining robust financial performance as the economic landscape stabilizes.”

                 
    Loan Balances            
    ($ in thousands, except ratios) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Annual
    Growth
    Commercial $ 125,878   $ 124,764   $ 123,821   $ 123,287   $ 120,016   $ 5,862  
    % of Total   11.6%     11.9%     12.0%     12.3%     12.1%     4.9%  
    Commercial RE   509,518     479,573     459,449     434,967     429,362     80,156  
    % of Total   46.8%     45.8%     44.6%     43.3%     43.3%     18.7%  
    Agriculture   61,443     64,680     64,887     64,329     62,365     (922 )
    % of Total   5.6%     6.2%     6.3%     6.4%     6.3%     -1.5%  
    Residential RE   319,307     308,378     314,010     316,233     314,668     4,639  
    % of Total   29.3%     29.5%     30.5%     31.5%     31.7%     1.5%  
    Consumer & Other   72,128     69,340     67,788     66,574     65,141     6,987  
    % of Total   6.6%     6.6%     6.6%     6.6%     6.6%     10.7%  
    Total Loans $ 1,088,274   $ 1,046,735   $ 1,029,955   $ 1,005,390   $ 991,552   $ 96,722  
    Total Growth Percentage                 9.8%  
                 
                 
    Deposit Balances            
    ($ in thousands, except ratios) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024 Annual
    Growth
    Non-Int DDA $ 240,446   $ 232,155   $ 222,425   $ 208,244   $ 219,395   $ 21,051  
    % of Total   18.9%     20.1%     19.2%     18.7%     19.7%     9.6%  
    Interest DDA   208,583     201,085     202,097     190,857     169,171     39,412  
    % of Total   16.4%     17.4%     17.4%     17.1%     15.2%     23.3%  
    Savings   285,902     237,987     241,761     231,855     244,157     41,745  
    % of Total   22.5%     20.6%     20.8%     20.8%     21.9%     17.1%  
    Money Market   257,013     222,161     228,182     225,650     221,362     35,651  
    % of Total   20.2%     19.3%     19.7%     20.2%     19.9%     16.1%  
    Time Deposits   279,276     259,217     265,068     258,582     258,257     21,019  
    % of Total   22.0%     22.5%     22.9%     23.2%     23.2%     8.1%  
    Total Deposits $ 1,271,220   $ 1,152,605   $ 1,159,533   $ 1,115,188   $ 1,112,342   $ 158,878  
    Total Growth Percentage                 14.3%  
                 

    Asset Quality

    As of March 31, 2025, SB Financial continued to demonstrate strong asset quality metrics. Nonperforming assets totaled $6.1 million, representing 0.41 percent of total assets, an increase of $3.2 million compared to $2.9 million or 0.22 percent of total assets reported in the prior year. This year-over-year growth was driven by weakness in three credits that we continue to expect to resolve favorably in 2025.

    The allowance for credit losses remained strong at 1.41 percent of total loans, providing 254.4 percent coverage of nonperforming loans, a level slightly lower than the linked quarter but indicative of our conservative approach to risk management amid the current environment. The net loan charge-offs to average loans ratio remained modest at 3 basis points, improving from 7 basis points in the prior quarter and consistent with the year-ago period, reflecting disciplined credit practices and effective collateral management.

    “Our asset quality metrics fully illustrate the diligence of our approach and commitment to disciplined risk management,” stated Mark Klein, Chairman, President, and CEO. “While we observed a slight uptick in nonperforming assets compared to the prior year, our reserve coverage ratio and continued low charge-off levels underscore the quality of our loan portfolio. We remain focused on balancing our conservative approach in maintaining the integrity of our credit processes with the need to effectively manage our balance sheet for long-term growth.”

                 
    Nonperforming Assets                
    ($ in thousands, except ratios) Mar. 2025 Dec. 2024 Sep. 2024 Jun. 2024 Mar. 2024   Annual
    Change
    Commercial & Agriculture $ 3,418   $ 2,927   $ 2,899   $ 2,781   $ 897   $ 2,521  
    % of Total Com./Ag. loans   1.82%     1.55%     1.54%     1.48%     0.49%     281.0%  
    Commercial RE   798     807     813     475     49     749  
    % of Total CRE loans   0.16%     0.17%     0.18%     0.11%     0.01%     1528.6%  
    Residential RE   1,608     1,539     1,536     1,247     1,295     313  
    % of Total Res. RE loans   0.50%     0.50%     0.49%     0.39%     0.41%     24.2%  
    Consumer & Other   227     243     270     231     193     34  
    % of Total Con./Oth. loans   0.31%     0.35%     0.40%     0.35%     0.30%     17.6%  
    Total Nonaccruing Loans   6,051     5,516     5,518     4,734     2,434     3,617  
    % of Total loans   0.56%     0.53%     0.54%     0.47%     0.25%     148.6%  
    Foreclosed Assets and Other Assets   73     –     –     510     510     (437 )
    Total Change (%)             -85.7%  
    Total Nonperforming Assets $ 6,124   $ 5,516   $ 5,518   $ 5,244   $ 2,944   $ 3,180  
    % of Total assets   0.41%     0.40%     0.40%     0.39%     0.22%     108.02%  


    Webcast and Conference Call

    The Company will hold the first quarter 2025 earnings conference call and webcast on May 2, 2025, at 11:00 a.m. EDT. Interested parties may access the conference call by dialing 1-888-338-9469. The webcast can be accessed at ir.yourstatebank.com. An audio replay of the call will be available on the Company’s website.

    About SB Financial Group

    Headquartered in Defiance, Ohio, SB Financial is a diversified financial services holding company for the State Bank & Trust Company (State Bank) and SBFG Title, LLC dba Peak Title (Peak Title). State Bank provides a full range of financial services for consumers and small businesses, including wealth management, private client services, mortgage banking and commercial and agricultural lending, operating through a total of 26 offices: 24 in ten Ohio counties and two in Northeast, Indiana, and 26 ATMs. State Bank has six loan production offices located throughout the Tri-State region of Ohio, Indiana and Michigan. Peak Title provides title insurance and title opinions throughout the Tri-State and Kentucky. SB Financial’s common stock is listed on the NASDAQ Capital Market with the ticker symbol “SBFG”.

    Forward-Looking Statements

    Certain statements within this document, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those predicted by the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties inherent in the national and regional banking industry, changes in economic conditions in the market areas in which SB Financial and its subsidiaries operate, changes in policies by regulatory agencies, changes in accounting standards and policies, changes in tax laws, fluctuations in interest rates, demand for loans in the market areas in SB Financial and its subsidiaries operate, increases in FDIC insurance premiums, changes in the competitive environment, losses of significant customers, geopolitical events, the loss of key personnel and other risks identified in SB Financial’s Annual Report on Form 10-K and documents subsequently filed by SB Financial with the Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made, and SB Financial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, except as required by law. All subsequent written and oral forward-looking statements attributable to SB Financial or any person acting on its behalf are qualified by these cautionary statements.

    Non-GAAP Financial Measures

    This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Non-GAAP financial measures, specifically pre-tax, pre-provision income, tangible common equity, tangible assets, tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, total interest income – FTE, net interest income – FTE and net interest margin – FTE are used by the Company’s management to measure the strength of its capital and analyze profitability, including its ability to generate earnings on tangible capital invested by its shareholders. In addition, the Company excludes the OMSR valuation adjustment and any gain on sale of assets from net income to report a non-GAAP adjusted net income level. Although management believes these non-GAAP measures are useful to investors by providing a greater understanding of its business, they should not be considered a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    Investor Contact Information:

    Mark A. Klein
    Chairman, President and
    Chief Executive Officer
    Mark.Klein@YourStateBank.com

    Anthony V. Cosentino
    Executive Vice President and
    Chief Financial Officer
    Tony.Cosentino@YourStateBank.com

        SB FINANCIAL GROUP, INC.
        CONSOLIDATED BALANCE SHEETS – (Unaudited)
                               
              March   December   September   June   March
          ($ in thousands)     2025       2024       2024       2024       2024  
                               
    ASSETS                    
      Cash and due from banks   $ 105,145     $ 25,928     $ 49,348     $ 21,983     $ 26,602  
      Interest bearing time deposits     1,565       1,565       1,706       2,417       2,417  
      Available-for-sale securities     199,721       201,587       211,511       207,856       213,239  
      Loans held for sale     4,286       6,770       8,927       7,864       4,730  
      Loans, net of unearned income     1,088,274       1,046,735       1,029,955       1,005,390       991,552  
      Allowance for credit losses     (15,391 )     (15,096 )     (15,278 )     (15,612 )     (15,643 )
      Premises and equipment, net     21,875       20,456       20,715       20,860       20,985  
      Federal Reserve and FHLB Stock, at cost     5,340       5,223       5,223       5,204       6,512  
      Foreclosed assets and other assets     73       –       –       510       510  
      Interest receivable     5,072       4,908       4,842       4,818       3,706  
      Goodwill     27,158       23,239       23,239       23,239       23,239  
      Cash value of life insurance     30,871       30,685       30,488       30,294       30,103  
      Mortgage servicing rights     14,965       14,868       14,357       14,548       14,191  
      Other assets     12,048       12,649       8,916       12,815       13,869  
                               
          Total assets   $ 1,501,002     $ 1,379,517     $ 1,393,949     $ 1,342,186     $ 1,336,012  
                               
                               
                               
    LIABILITIES AND SHAREHOLDERS’ EQUITY                    
      Deposits                    
        Non interest bearing demand   $ 240,446     $ 232,155     $ 222,425     $ 208,244     $ 219,395  
        Interest bearing demand     208,583       201,085       202,097       190,857       169,171  
        Savings     285,902       237,987       241,761       231,855       244,157  
        Money market     257,013       222,161       228,182       225,650       221,362  
        Time deposits     279,276       259,217       265,068       258,582       258,257  
                               
          Total deposits     1,271,220       1,152,605       1,159,533       1,115,188       1,112,342  
                               
      Short-term borrowings     11,058       10,585       15,240       15,178       12,916  
      Federal Home Loan Bank advances     35,000       35,000       35,000       35,000       35,000  
      Trust preferred securities     10,310       10,310       10,310       10,310       10,310  
      Subordinated debt net of issuance costs     19,702       19,690       19,678       19,666       19,654  
      Interest payable     2,634       2,351       3,374       2,944       2,772  
      Other liabilities     19,552       21,468       17,973       18,421       19,295  
                               
          Total liabilities     1,369,476       1,252,009       1,261,108       1,216,707       1,212,289  
                               
      Shareholders’ Equity                    
        Common stock     61,319       61,319       61,319       61,319       61,319  
        Additional paid-in capital     14,955       15,194       15,090       15,195       14,978  
        Retained earnings     117,397       116,186       113,515       112,104       109,938  
        Accumulated other comprehensive loss     (26,872 )     (30,234 )     (24,870 )     (31,801 )     (31,547 )
        Treasury stock     (35,273 )     (34,957 )     (32,213 )     (31,338 )     (30,965 )
                               
          Total shareholders’ equity     131,526       127,508       132,841       125,479       123,723  
                               
          Total liabilities and shareholders’ equity $ 1,501,002     $ 1,379,517     $ 1,393,949     $ 1,342,186     $ 1,336,012  
    SB FINANCIAL GROUP, INC.
    CONSOLIDATED STATEMENTS OF INCOME – (Unaudited)
                             
    ($ in thousands, except per share & ratios)   At and for the Three Months Ended
                             
            March   December   September   June   March
    Interest income      2025     2024       2024     2024       2024  
      Loans                    
      Taxable   $ 15,244   $ 14,920     $ 14,513   $ 13,883     $ 13,547  
      Tax exempt     115     122       127     124       123  
      Securities                    
      Taxable     1,169     1,178       1,192     1,226       1,274  
      Tax exempt     38     35       37     37       37  
      Other interest income     806     592       679     384       319  
                             
        Total interest income     17,372     16,847       16,548     15,654       15,300  
                             
    Interest expense                      
      Deposits     5,352     5,169       5,568     5,208       5,090  
      Repurchase agreements & other     24     41       43     36       34  
      Federal Home Loan Bank advances   362     369       369     370       613  
      Trust preferred securities     160     177       187     187       188  
      Subordinated debt     195     194       195     194       195  
                             
        Total interest expense     6,093     5,950       6,362     5,995       6,120  
                             
                             
    Net interest income     11,279     10,897       10,186     9,659       9,180  
                             
      Provision for credit losses     387     (76 )     200     –       –  
                             
    Net interest income after provision                    
      for loan losses       10,892     10,973       9,986     9,659       9,180  
                             
    Noninterest income                    
      Wealth management fees     864     916       882     848       865  
      Customer service fees     879     842       870     875       880  
      Gain on sale of mtg. loans & OMSR   849     1,196       1,311     1,277       781  
      Mortgage loan servicing fees, net     611     816       39     565       763  
      Gain on sale of non-mortgage loans   15     10       20     105       10  
      Title insurance revenue     397     478       485     406       266  
      Net gain on sales of securities     –     –       –     –       –  
      Gain (loss) on sale of assets     –     –       200     –       –  
      Other     492     299       316     310       386  
                             
        Total noninterest income     4,107     4,557       4,123     4,386       3,951  
                             
    Noninterest expense                    
      Salaries and employee benefits     6,237     6,185       6,057     6,009       5,352  
      Net occupancy expense     893     702       706     707       769  
      Equipment expense     1,072     1,127       1,069     1,060       1,077  
      Data processing fees     1,439     821       758     727       769  
      Professional fees     1,034     895       659     615       758  
      Marketing expense     165     207       241     176       197  
      Telephone and communication expense     139     136       128     156       105  
      Postage and delivery expense     137     116       145     89       97  
      State, local and other taxes     224     224       208     230       245  
      Employee expense     174     168       228     159       178  
      Other expenses     896     422       804     743       735  
                             
        Total noninterest expense     12,410     11,003       11,003     10,671       10,282  
                             
                             
    Income before income tax expense     2,589     4,527       3,106     3,374       2,849  
                             
      Income tax expense     431     892       752     261       481  
                             
    Net income       $ 2,158   $ 3,635     $ 2,354   $ 3,113     $ 2,368  
                             
    Common share data:                    
      Basic earnings per common share   $ 0.33   $ 0.55     $ 0.35   $ 0.47     $ 0.35  
      Diluted earnings per common share $ 0.33   $ 0.55     $ 0.35   $ 0.47     $ 0.35  
                             
    Average shares outstanding (in thousands):                    
      Basic:     6,481     6,575       6,660     6,692       6,715  
      Diluted:     6,502     6,599       6,675     6,700       6,723  
    SB FINANCIAL GROUP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS – (Unaudited)
                         
    ($ in thousands, except per share & ratios) At and for the Three Months Ended
                         
        March   December   September   June   March
    SUMMARY OF OPERATIONS     2025       2024       2024       2024       2024  
                         
    Net interest income   $ 11,279     $ 10,897     $ 10,186     $ 9,659     $ 9,180  
    Tax-equivalent adjustment     41       42       44       43       43  
    Tax-equivalent net interest income     11,320       10,939       10,230       9,702       9,223  
    Provision for credit loss     387       (76 )     200       –       –  
    Noninterest income     4,107       4,557       4,123       4,386       3,951  
    Total operating revenue     15,386       15,454       14,309       14,045       13,131  
    Noninterest expense     12,410       11,003       11,003       10,671       10,282  
    Pre-tax pre-provision income     2,976       4,451       3,306       3,374       2,849  
    Net income     2,158       3,635       2,354       3,113       2,368  
                         
    PER SHARE INFORMATION:                    
    Basic earnings per share (EPS)     0.33       0.55       0.35       0.47       0.35  
    Diluted earnings per share     0.33       0.55       0.35       0.47       0.35  
    Common dividends     0.145       0.145       0.140       0.140       0.135  
    Book value per common share     20.29       19.64       20.05       18.80       18.46  
    Tangible book value per common share (TBV)     15.79       16.00       16.49       15.26       14.93  
    Market price per common share     20.82       20.91       20.56       14.00       13.78  
    Market price to TBV     131.8 %     130.7 %     124.7 %     91.8 %     92.3 %
    Market price to trailing 12 month EPS     12.2       12.1       11.8       7.9       7.9  
                         
    PERFORMANCE RATIOS:                    
    Return on average assets (ROAA)     0.60 %     1.04 %     0.68 %     0.93 %     0.71 %
    Pre-tax pre-provision ROAA     0.83 %     1.28 %     0.96 %     1.01 %     0.86 %
    Return on average equity (ROE)     6.63 %     11.13 %     7.32 %     10.16 %     7.72 %
    Return on average tangible equity     8.32 %     13.58 %     8.97 %     12.59 %     9.55 %
    Efficiency ratio     80.00 %     71.09 %     76.78 %     75.86 %     78.17 %
    Earning asset yield     5.23 %     5.18 %     5.16 %     5.02 %     4.97 %
    Cost of interest bearing liabilities     2.32 %     2.36 %     2.53 %     2.47 %     2.55 %
    Net interest margin     3.40 %     3.35 %     3.17 %     3.10 %     2.99 %
    Tax equivalent effect     0.01 %     0.01 %     0.02 %     0.01 %     0.01 %
    Net interest margin, tax equivalent     3.41 %     3.36 %     3.19 %     3.11 %     3.00 %
    Non interest income/Average assets     1.14 %     1.31 %     1.20 %     1.31 %     1.19 %
    Non interest expense/Average assets     3.45 %     3.15 %     3.20 %     3.18 %     3.08 %
    Net noninterest expense/Average assets     -2.31 %     -1.85 %     -2.00 %     -1.87 %     -1.90 %
                         
    ASSET QUALITY RATIOS:                    
    Gross charge-offs     87       195       29       –       66  
    Recoveries     2       13       2       16       9  
    Net charge-offs     85       182       27       (16 )     57  
    Nonperforming loans/Total loans     0.56 %     0.53 %     0.54 %     0.47 %     0.25 %
    Nonperforming assets/Loans & OREO     0.56 %     0.53 %     0.54 %     0.52 %     0.30 %
    Nonperforming assets/Total assets     0.41 %     0.40 %     0.40 %     0.39 %     0.22 %
    Allowance for credit loss/Nonperforming loans     254.35 %     273.68 %     276.83 %     329.78 %     642.69 %
    Allowance for credit loss/Total loans     1.41 %     1.44 %     1.48 %     1.55 %     1.58 %
    Net loan charge-offs/Average loans (ann.)     0.03 %     0.07 %     0.01 %     (0.01 %)     0.02 %
                         
    CAPITAL & LIQUIDITY RATIOS:                    
    Loans/ Deposits     85.61 %     90.81 %     88.82 %     90.15 %     89.14 %
    Equity/ Assets     8.76 %     9.24 %     9.53 %     9.35 %     9.26 %
    Tangible equity/Tangible assets     6.96 %     7.66 %     7.97 %     7.72 %     7.63 %
    Common equity tier 1 ratio (Bank)     12.35 %     13.43 %     13.19 %     13.98 %     13.84 %
                         
    END OF PERIOD BALANCES                    
    Total assets     1,501,002       1,379,517       1,393,949       1,342,186       1,336,012  
    Total loans     1,088,274       1,046,735       1,029,955       1,005,390       991,552  
    Deposits     1,271,220       1,152,605       1,159,533       1,115,188       1,112,342  
    Shareholders equity     131,526       127,508       132,841       125,479       123,723  
    Goodwill and intangibles     29,125       23,597       23,613       23,630       23,646  
    Tangible equity     102,401       103,911       109,228       101,849       100,077  
    Mortgage servicing portfolio     1,432,184       1,427,318       1,406,273       1,389,805       1,371,713  
    Wealth/Brokerage assets under care     519,158       547,697       557,724       525,713       525,517  
    Total assets under care     3,452,344       3,354,532       3,357,946       3,257,704       3,233,242  
    Full-time equivalent employees     262       252       248       249       245  
    Period end common shares outstanding     6,483       6,494       6,624       6,676       6,702  
    Market capitalization (all)     134,982       135,780       136,189       93,458       92,359  
                         
    AVERAGE BALANCES                    
    Total assets     1,459,896       1,395,473       1,376,849       1,342,847       1,333,236  
    Total earning assets     1,346,354       1,301,872       1,283,407       1,246,099       1,230,736  
    Total loans     1,076,328       1,040,580       1,018,262       1,005,018       993,310  
    Deposits     1,227,449       1,163,531       1,145,964       1,120,367       1,091,803  
    Shareholders equity     131,944       130,647       128,608       122,510       123,058  
    Goodwill and intangibles     26,714       23,605       23,621       23,638       23,654  
    Tangible equity     105,230       107,042       104,987       98,872       99,404  
    Average basic shares outstanding     6,481       6,575       6,660       6,692       6,715  
    Average diluted shares outstanding     6,502       6,599       6,675       6,700       6,723  
    SB FINANCIAL GROUP, INC.
      Rate Volume Analysis – (Unaudited)
      For the Three Months Ended Mar. 31, 2025 and 2024
               
      ($ in thousands) Three Months Ended Mar. 31, 2025     Three Months Ended Mar. 31, 2024
        Average   Average     Average   Average
    Assets Balance Interest Rate     Balance Interest Rate
                       
      Taxable securities $ 196,880   $ 1,276 2.63 %     $ 210,252   $ 1,413 2.70 %
      Overnight Cash   66,460     699 4.27 %       20,729     180 3.48 %
      Nontaxable securities   6,686     38 2.30 %       6,445     37 2.30 %
      Loans, net   1,076,328     15,359 5.79 %       993,310     13,670 5.52 %
                       
      Total earning assets   1,346,354     17,372 5.23 %       1,230,736     15,300 4.99 %
                       
      Cash and due from banks   10,339             4,512      
      Allowance for loan losses   (15,238 )           (15,830 )    
      Premises and equipment   21,082             21,281      
      Other assets   97,359             92,537      
                       
      Total assets $ 1,459,896           $ 1,333,236      
                       
    Liabilities                
      Savings, MMDA and interest bearing demand $ 709,324   $ 2,959 1.69 %     $ 605,243   $ 2,525 1.67 %
      Time deposits   276,253     2,393 3.51 %       258,592     2,565 3.98 %
      Repurchase agreements & other   13,106     24 0.74 %       15,993     34 0.85 %
      Advances from Federal Home Loan Bank   35,044     362 4.19 %       51,030     613 4.82 %
      Trust preferred securities   10,310     160 6.29 %       10,310     188 7.31 %
      Subordinated debt   19,694     195 4.02 %       19,646     195 3.98 %
                       
      Total interest bearing liabilities   1,063,731     6,093 2.32 %       960,814     6,120 2.55 %
                       
      Non interest bearing demand   241,872     –         227,968     –  
                       
      Total funding   1,305,603     1.89 %       1,188,782     2.06 %
            44.20 %         1  
      Other liabilities   22,349             21,396      
                       
      Total liabilities   1,327,952             1,210,178      
                       
      Equity   131,944             123,058      
                       
      Total liabilities and equity $ 1,459,896           $ 1,333,236      
                       
      Net interest income   $ 11,279         $ 9,180  
                       
      Net interest income as a percent of average interest-earning assets – GAAP measure 3.40 %         2.99 %
                       
      Net interest income as a percent of average interest-earning assets – non GAAP 3.41 %         3.00 %
      – Computed on a fully tax equivalent (FTE) basis             
    Non-GAAP reconciliation Three Months Ended
           
    ($ in thousands, except per share & ratios) Mar. 31, 2025   Mar. 31, 2024
           
    Total Operating Revenue $ 15,386     $ 13,131  
    Adjustment to (deduct)/add OMSR recapture/impairment *   (11 )     (181 )
           
    Adjusted Total Operating Revenue   15,375       12,950  
           
           
    Total Operating Expense $ 12,410     $ 10,282  
    Adjustment for merger expenses   (726 )     –  
           
    Adjusted Total Operating Expense   11,684       10,282  
           
           
    Income before Income Taxes   2,589       2,849  
    Adjustment for OMSR*/Merger Expenses   715       (181 )
           
    Adjusted Income before Income Taxes   3,304       2,668  
           
           
    Provision for Income Taxes   431       481  
    Adjustment for OMSR/Merger Expenses **   150       (38 )
           
    Adjusted Provision for Income Taxes   581       443  
           
           
    Net Income   2,158       2,368  
    Adjustment for OMSR*/Merger Expenses   565       (143 )
           
    Adjusted Net Income   2,723       2,225  
           
           
    Diluted Earnings per Share   0.33       0.35  
    Adjustment for OMSR*/Merger Expenses   0.09       (0.02 )
           
    Adjusted Diluted Earnings per Share $ 0.42     $ 0.33  
           
           
    Return on Average Assets   0.60 %     0.71 %
    Adjustment for OMSR*/Merger Expenses   0.15 %     -0.04 %
           
    Adjusted Return on Average Assets   0.75 %     0.67 %
           
    *valuation adjustment to the Company’s mortgage servicing rights    
           
    **tax effect is calculated using a 21% statutory federal corporate income tax rate

    The MIL Network –

  • MIL-OSI: Ready Capital Corporation Announces First Quarter 2025 Results and Webcast Call

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, May 01, 2025 (GLOBE NEWSWIRE) — Ready Capital Corporation (NYSE: RC) (the “Company”) today announced that the Company will release its first quarter 2025 financial results after the New York Stock Exchange closes on Thursday, May 8, 2025. Management will host a webcast and conference call on Friday, May 9, 2025 at 8:30 a.m. Eastern Time to provide a general business update and discuss the financial results for the quarter ended March 31, 2025. 

    Webcast:
    The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. The webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.readycapital.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

    Dial-in:
    The conference call can be accessed by dialing 877-407-0792 (domestic) or 201-689-8263 (international).

    Replay:
    A replay of the call will also be available on the Company’s website approximately two hours after the live call through May 23, 2025.  To access the replay, dial 844-512-2921 (domestic) or 412-317-6671 (international). The replay pin number is 13750797.

    About Ready Capital Corporation

    Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program and government guaranteed loans focused on the United States Department of Agriculture. Headquartered in New York, New York, the Company employs approximately 500 professionals nationwide.

    Contact
    Investor Relations
    Ready Capital Corporation
    212-257-4666
    InvestorRelations@readycapital.com

    The MIL Network –

  • MIL-OSI USA: Chairmen Guthrie and Griffith Along with Vice Chairman Joyce and Reps. James and Obernolte Issue Statement on Passage of Bills to Stop California EV Mandates

    Source: United States House of Representatives – Congressman Jay Obernolte (R-Hesperia)

    WASHINGTON, D.C. – Today, Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, and Congressman Morgan Griffith (VA-09), Chairman of the Subcommittee on Environment, along with other members of the Committee applauded the passage of three resolutions of disapproval under the Congressional Review Act to repeal disastrous electric vehicle (EV) mandates. 

    “The passage of these resolutions is a victory for Americans who will not be forced into purchasing costly EVs because of California’s unworkable mandates,”said Chairmen Guthrie and Griffith. “If not repealed, the California waivers would lead to higher prices for both new and used vehicles, increase our reliance on China, and strain our electric grid. The passage of these three resolutions will help to protect Americans from some of the worst policies of the Biden-Harris Administration. Thank you to Vice Chairman Joyce, Congressman James, and Congressman Obernolte for your work to ensure that families and businesses can continue choosing the vehicles they need.”

    “American consumers, not out-of-touch politicians, should decide what vehicle best fits their individual needs,”said Congressman John Joyce, M.D.“Since I arrived in Washington, I have led this fight to protect consumer freedom and save the American auto industry from dangerous environmental regulations. As this legislation takes its first step toward reaching President Trump’s desk, I urge my colleagues in the Senate to support this bill to save our auto industry and protect the freedom of the open road.”

    “Michigan is not afraid of the future, but we demand to be a part of it. The Biden Administration left behind comply-or-die Green New Deal mandates that threaten to crush our trucking industry and drive-up costs for hardworking Americans,” said Congressman James. “I know — my family has a trucking company. Republicans are working hard to implement President Trump’s America First Agenda, and the first step is repealing the rules and waivers that fueled Bideninflation.”

    “I’m proud that the House passed my resolution to stop California’s unworkable engine emission standards from becoming national policy,”said Congressman Obernolte. “These regulations would raise costs for consumers, crush small businesses, and threaten critical supply chains across the country. It is Congress’ job to ensure that one state’s overreach doesn’t dictate how all Americans live, work, or drive.”

    Read an Op-ed from Chairman Guthrie, Vice Chairman Joyce, Congressman James, and Congressman Obernolte on these resolutions here.

    Background:

    The Clean Air Act generally preempts individual states from setting their own vehicle emission standards. However, section 209 of the Clean Air Act allows the Environmental Protection Agency to waive state preemption for California. This carveout was intended to allow California to implement stricter air vehicle emission standards to address “compelling and extraordinary circumstances” involving local air pollution – not to remake the auto industry and limit consumer choice nationwide. 

    The Biden EPA granted these waivers that have allowed California to ban sales of new gas, diesel, and hybrid vehicles, as well as heavy-duty trucks, while also mandating 100% electric vehicle sales by 2035. With approval of these resolutions, Congress is exercising its important oversight responsibilities and reining in the regulatory overreach of the previous administration. 

    • H.J.Res. 88, led by Rep. John Joyce (PA-13), Vice Chairman of the House Committee on Energy and Commerce, will repeal California’s Advanced Clean Cars II (ACCII) waiver, allowing the State to ban the sale of gas-powered vehicles by 2035.
    • H.J.Res. 87, led by Rep. John James (MI-10), will repeal California’s Advanced Clean Trucks (ACT) waiver, which currently would allow the State to mandate the sale of zero-emission trucks.
    • H.J.Res. 89, led by Rep. Jay Obernolte (CA-23), will put an end to California’s implementation of its most recent nitrogen oxide (NOx) engine emission standards, which create burdensome and unworkable standards for heavy-duty on-road engines.

    ###

    MIL OSI USA News –

  • MIL-OSI Security: Arizona Man Sentenced for COVID Loan Fraud and Tax Fraud

    Source: Office of United States Attorneys

    TUCSON, Ariz. – Roy Lane, 44, of St. David, Arizona, was sentenced on Tuesday by U.S. District Judge John C. Hinderaker to four years in prison, followed by three years of supervised release, for filing false tax returns and loan applications to obtain COVID-19 disaster relief. Layne previously pleaded guilty to two counts of Wire Fraud and one count of Filing a False Claim.

    According to court documents, and evidence presented in court, to create the appearance that he was operating several businesses, Layne filed paperwork with the IRS, applied for a business license from the City of Tucson, opened business bank accounts, and filed false employment-related tax returns. In April 2020, he filed an application with the U.S. Small Business Administration, that claimed he operated a “wholesale” business with 17 employees that had revenue of more than a half million dollars a year. In 2021, he submitted a false application for a Paycheck Protection Act loan, claiming that same “wholesale” business had 31 employees and $1.2 million in revenue. Based on these and other false applications, Layne ultimately received over $300,000 in COVID-19 related loans to which he was not entitled.

    Layne also used the personal identifying information and identities of other people to file false claims for refunds with the IRS. In total, Layne claimed over $7.4 million in false refunds, of which the IRS paid over $590,000.

    In addition to the prison term, U.S. District Judge John C. Hinderaker ordered Layne to pay $856,692.91 in restitution to the United States.

    IRS Criminal Investigation and the FBI investigated the case. Trial Attorney Matthew R. Hoffman of the Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, Tucson, prosecuted the case.

    CASE NUMBER:            CR-24-04907-TUC-JCH
    RELEASE NUMBER:    2025-070_Layne

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI: Asure Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Reports First Quarter 2025 Total Revenues of $34.9 million

    Recurring Revenues Grew 10% from Prior Year

    AUSTIN, Texas, May 01, 2025 (GLOBE NEWSWIRE) — Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the first quarter ended March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Revenue of $34.9 million, up 10% year over year, excluding ERTC revenue up 13% from the prior year first quarter
    • Recurring revenue of $33.2 million versus $30.3 million during the prior year first quarter
    • Net loss of $2.4 million versus a net loss of $0.3 million during the prior year first quarter
    • EBITDA(1) of $4.1 million versus $4.4 million during the prior year first quarter
    • Adjusted EBITDA(1) of $7.3 million versus $6.8 million during the prior year first quarter
    • Gross profit of $24.6 million versus $22.6 million during the prior year first quarter
    • Non-GAAP gross profit(1) of $26.3 million (Non-GAAP gross margin(1) of 75%) versus $23.8 million (and 75% in prior year first quarter)

    Recent Business Highlights

    • New Payroll Tax Management solution launched which is designed specifically for large Canadian companies and global enterprises with employees in Canada. Our ability to serve enterprise clients with international workforces with this innovative solution creates further opportunities to grow our business and the seamless integration of payroll tax services into major platforms such as Workday, Oracle, and SAP is a key benefit. The Canadian payroll tax solution addresses critical compliance needs for organizations managing cross-border payroll processes, reducing complexity and ensuring accurate, timely filing.
    • In April 2025 we entered into a credit agreement primarily with MidCap Financial Trust, whereby the Company may borrow up to $60 million. At closing, which occurred on April 10, we received $20 million of gross proceeds.

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

    Management Commentary

    “We are excited to be off to a great start to 2025 with healthy results for our first quarter of 2025 with our revenues increasing 10% from the prior year first quarter. Our results were driven by strong performance coming from our Payroll Tax Management and initial contribution from our recently acquired product offerings,” said Asure Chairman and CEO Pat Goepel.

    “Our team is focused on continuing to execute our growth strategy. Our revenues are now more than 95% recurring, our contracted revenue backlog sits at an all-time high, and we believe that the investments we have made in the business will continue to drive greater adoption of our broadened product suite for the remainder of 2025.”

    Second Quarter 2025 and Full Year 2025 Revenue Guidance Ranges

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

    Guidance for 2025

    Guidance Range   Q2-2025   FY-2025
    Revenue $ 30.0 M – 32.0 M $ 134.0 M -138.0 M
    Adjusted EBITDA(1) $ 5.0 M -6.0 M   23% -24%
             

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

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

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

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

    Conference Call Details

    Asure management will host a conference call on Thursday, May 1, 2025, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.

    About Asure Software, Inc.

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

    Non-GAAP and Adjusted Financial Measures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Use of Forward-Looking Statements

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

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

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

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

     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)
           
      March 31, 2025   December 31, 2024
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 14,076     $ 21,425  
    Accounts receivable, net of allowance for credit losses of $6,545 and $6,328 at March 31, 2025 and December 31, 2024, respectively   15,800       18,154  
    Inventory   220       195  
    Prepaid expenses and other current assets   5,970       4,888  
    Total current assets before funds held for clients   36,066       44,662  
    Funds held for clients   257,019       192,615  
    Total current assets   293,085       237,277  
    Property and equipment, net   20,999       19,669  
    Goodwill   94,724       94,724  
    Intangible assets, net   73,003       69,114  
    Operating lease assets, net   4,403       4,041  
    Other assets, net   12,727       11,813  
    Total assets $ 498,941     $ 436,638  
    LIABILITIES AND STOCKHOLDERS’EQUITY      
    Current liabilities:      
    Current portion of notes payable $ 7,948     $ 7,008  
    Accounts payable   2,475       1,364  
    Accrued compensation and benefits   2,911       4,485  
    Operating lease liabilities, current   1,432       1,438  
    Other accrued liabilities   6,071       6,600  
    Deferred revenue   4,662       8,363  
    Total current liabilities before client fund obligations   25,499       29,258  
    Client fund obligations   258,586       194,378  
    Total current liabilities   284,085       223,636  
    Long-term liabilities:      
    Deferred revenue   3,321       3,430  
    Deferred tax liability   2,903       2,612  
    Notes payable, net of current portion   6,172       5,709  
    Operating lease liabilities, noncurrent   3,892       3,578  
    Other liabilities   905       358  
    Total long-term liabilities   17,193       15,687  
    Total liabilities   301,278       239,323  
    Stockholders’ equity:      
    Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding   —       —  
    Common stock, $0.01 par value; 44,000 shares authorized; 27,122 and 26,671 shares issued, 27,122 and 26,671 shares outstanding at December 31, 2024 and December 31, 2023, respectively   271       267  
    Treasury stock at cost, zero(1)at March 31, 2025 and December 31, 2024   —       —  
    Additional paid-in capital   507,149       504,849  
    Accumulated deficit   (309,624 )     (307,226 )
    Accumulated other comprehensive loss   (133 )     (575 )
    Total stockholders’ equity   197,663       197,315  
    Total liabilities and stockholders’ equity $ 498,941     $ 436,638  
    (1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Consolidated Statement of Changes in Stockholders’ Equity for the impact of this transaction.
     
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, except per share amounts)
     
      Three Months Ended
    March 31,
      2025   2024
           
    Revenue:      
    Recurring $ 33,187     $ 30,273  
    Professional services, hardware and other   1,667       1,379  
    Total revenue   34,854       31,652  
    Cost of sales   10,246       9,045  
    Gross profit   24,608       22,607  
    Operating expenses:      
    Sales and marketing   8,386       7,767  
    General and administrative   11,900       10,063  
    Research and development   2,029       1,769  
    Amortization of intangible assets   4,308       3,449  
    Total operating expenses   26,623       23,048  
    Loss from operations   (2,015 )     (441 )
    Interest income   171       336  
    Interest expense   (451 )     (180 )
    Other income, net   188       10  
    Loss from operations before income taxes   (2,107 )     (275 )
    Income tax expense   291       33  
    Net loss   (2,398 )     (308 )
    Other comprehensive income (loss):      
    Unrealized gain (loss) on marketable securities   442       (244 )
    Comprehensive loss $ (1,956 )   $ (552 )
           
    Basic and diluted loss per share      
    Basic $ (0.09 )   $ (0.01 )
    Diluted $ (0.09 )   $ (0.01 )
           
    Weighted average basic and diluted shares      
    Basic   26,961       25,334  
    Diluted   26,961       25,334  
                   
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
       
      Three Months Ended March 31,
      2025   2024
           
    Cash flows from operating activities:      
    Net loss $ (2,398 )   $ (308 )
    Adjustments to reconcile loss to net cash provided by (used in) operations:      
    Depreciation and amortization   5,972       4,860  
    Amortization of operating lease assets   374       335  
    Amortization of debt financing costs and discount   253       142  
    Non-cash interest expense   197       —  
    Net accretion of discounts and amortization of premiums on available-for-sale securities   (110 )     (78 )
    Provision for expected losses   93       46  
    Provision for deferred income taxes   291       24  
    Net realized gains on sales of available-for-sale securities   (656 )     (652 )
    Share-based compensation   1,863       1,902  
    Changes in operating assets and liabilities:      
    Accounts receivable   2,261       (919 )
    Inventory   (24 )     (50 )
    Prepaid expenses and other assets   (1,049 )     (473 )
    Operating lease right-of-use assets   —       30  
    Accounts payable   903       (960 )
    Accrued expenses and other long-term obligations   (1,737 )     (2,665 )
    Operating lease liabilities   (427 )     (141 )
    Deferred revenue   (3,810 )     (5,040 )
    Net cash provided by (used in) operating activities   1,996       (3,947 )
    Cash flows from investing activities:      
    Acquisition of intangible assets   (6,346 )     (710 )
    Purchases of property and equipment   (192 )     (240 )
    Software capitalization costs   (2,769 )     (2,435 )
    Purchases of available-for-sale securities   (6,589 )     (3,516 )
    Proceeds from sales and maturities of available-for-sale securities   3,266       2,406  
    Net cash used in investing activities   (12,630 )     (4,495 )
    Cash flows from financing activities:      
    Payments made on amounts due for the acquisition of intangibles   (723 )     (236 )
    Net proceeds from issuance of common stock   441       176  
    Net change in client fund obligations   64,207       21,122  
    Net cash provided by financing activities   63,925       21,062  
    Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents   53,291       12,620  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period   145,712       177,622  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $ 199,003     $ 190,242  
                   
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
    (in thousands)
       
      Three Months Ended March 31,
      2025
    		   2024
           
    Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Condensed Consolidated Balance Sheets
    Cash and cash equivalents $ 14,076     $ 23,166  
    Restricted cash and restricted cash equivalents included in funds held for clients   184,927       167,076  
    Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 199,003     $ 190,242  
           
    Supplemental information:      
    Cash paid for interest $ 125     $ —  
           
    Non-cash investing and financing activities:      
    Acquisition of intangible assets $ 750     $ 6,345  
    Notes payable issued for acquisitions $ 1,150     $ 827  
    Shares issued for acquisitions $ —     $ 4,494  
                   
     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
    (unaudited)
                     
    (in thousands) Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23
    Revenue(1) $ 34,854   $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420  
                     
    Gross Profit to non-GAAP Gross Profit                
    Gross Profit $ 24,608   $ 20,928   $ 19,704   $ 18,868   $ 22,607   $ 17,839   $ 21,280   $ 22,018  
    Gross Margin   70.6 %   68.0 %   67.2 %   67.3 %   71.4 %   67.9 %   72.5 %   72.4 %
                     
    Share-based Compensation   44     44     44     43     40     32     28     46  
    Depreciation   1,369     1,190     1,232     1,145     1,110     921     984     1,309  
    Amortization – intangibles   50     50     50     50     50     50     50     50  
    One-time expenses                
    Settlements, penalties & interest   29     25     2     3     —     (6 )   8     —  
    Acquisition and transaction costs   167     221     367     264     39     —     —     —  
    Other non-recurring expenses   —     84     —     —     —     —     —     —  
    Non-GAAP Gross Profit $ 26,267   $ 22,542   $ 21,399   $ 20,373   $ 23,846   $ 18,836   $ 22,350   $ 23,423  
    Non-GAAP Gross Margin   75.4 %   73.2 %   73.0 %   72.6 %   75.3 %   71.7 %   76.2 %   77.0 %
                     
    Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
    Sales and Marketing Expense $ 8,386   $ 6,945   $ 6,680   $ 6,924   $ 7,767   $ 6,422   $ 6,597   $ 8,515  
                     
    Share-based Compensation   322     251     269     237     243     180     210     149  
    Depreciation   1     —     1     —     1     1     —     —  
    One-time expenses                
    Settlements, penalties & interest   51     78     (5 )   5     18     6     30     4  
    Acquisition and transaction costs   30     9     68     37     11     —     —     —  
    Other non-recurring expenses   —     52     —     —     —     —     —     180  
    Non-GAAP Sales and Marketing Expense $ 7,982   $ 6,555   $ 6,347   $ 6,645   $ 7,494   $ 6,235   $ 6,357   $ 8,182  
                     
    General and Administrative Expense to non-GAAP General and Administrative Expense
    General and Administrative Expense $ 11,900   $ 9,940   $ 10,378   $ 10,118   $ 10,063   $ 9,747   $ 9,294   $ 10,336  
                     
    Share-based Compensation   1,407     1,081     1,187     1,122     1,535     980     936     1,298  
    Depreciation   244     269     264     256     251     225     200     234  
    One-time expenses                
    Settlements, penalties & interest   492     142     377     304     98     284     101     432  
    Acquisition and transaction costs   491     282     371     245     57     51     —     —  
    Other non-recurring expenses   136     220     253     —     86     53     —     453  
    Non-GAAP General and Administrative Expense $ 9,130   $ 7,946   $ 7,926   $ 8,191   $ 8,036   $ 8,154   $ 8,057   $ 7,919  
                     
    Research and Development Expense to non-GAAP Research and Development Expense
    Research and Development Expense $ 2,029   $ 2,103   $ 1,973   $ 1,962   $ 1,769   $ 1,739   $ 1,803   $ 1,325  
                     
    Share-based Compensation   90     87     90     86     85     69     76     89  
    Depreciation   1     —   $ —   $ —   $ —   $ —   $ —   $ —  
    One-time expenses                
    Settlements, penalties & interest   9     21     —     27     31     —     —     —  
    Acquisition and transaction costs   91     153     195     369     147     —     —     —  
    Other non-recurring expenses   —     29     —     —     —     —     —     —  
    Non-GAAP Research and Development Expense $ 1,838   $ 1,813   $ 1,688   $ 1,480   $ 1,506   $ 1,670   $ 1,727   $ 1,236  
                     

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

     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
    (unaudited)
                     
    (in thousands) Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23
    Revenue(1) $ 34,854   $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420  
                     
    GAAP Net Loss to Adjusted EBITDA
    GAAP Net Loss $ (2,398 ) $ (3,204 ) $ (3,901 ) $ (4,360 ) $ (308 ) $ (3,582 ) $ (2,206 ) $ (3,765 )
                     
    Interest expense, net   280     211     109     (53 )   (156 )   (24 )   782     1,593  
    Income taxes   291     499     170     231     33     (158 )   (123 )   627  
    Depreciation   1,614     1,460     1,497     1,402     1,361     1,148     1,185     1,542  
    Amortization – intangibles   4,358     4,482     4,345     4,096     3,499     3,743     3,384     3,343  
    EBITDA $ 4,145   $ 3,448   $ 2,220   $ 1,316   $ 4,429   $ 1,127   $ 3,022   $ 3,340  
    EBITDA Margin   11.9 %   11.2 %   7.6 %   4.7 %   14.0 %   4.3 %   10.3 %   11.0 %
                     
    Share-based Compensation   1,863     1,463     1,591     1,488     1,902     1,260     1,251     1,582  
    One Time Expenses                
    Settlements, penalties & interest   581     266     375     339     147     283     140     436  
    Acquisition and transaction costs   779     665     1,001     914     254     51     —     —  
    Other non-recurring expenses   136     385     253     —     86     53     —     633  
    Other expense (income), net   (188 )   2     —     —     (10 )   1     1,800     93  
    Adjusted EBITDA $ 7,316   $ 6,229   $ 5,440   $ 4,057   $ 6,808   $ 2,775   $ 6,213   $ 6,084  
    Adjusted EBITDA Margin   21.0 %   20.2 %   18.6 %   14.5 %   21.5 %   10.6 %   21.2 %   20.0 %
                                                     

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

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

    The MIL Network –

  • MIL-OSI: Monolithic Power Systems Earnings Commentary for the Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    KIRKLAND, Wash., May 01, 2025 (GLOBE NEWSWIRE) — MPS will report its results after the market closes on May 1, 2025 and host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webcast, which can be accessed at https://mpsic.zoom.us/j/92570889542.

    Q1 2025 Financial Summary  (Unaudited)
      GAAP
      Q1’25
    		   Q4’24
    		   Q1’24
    		     QoQ Change YoY Change
    Revenue ($k) $ 637,554   $ 621,665   457,885     Up 2.6% Up 39.2%
    Gross Margin 55.4%   55.4%   55.1%     Flat Up 0.3 pts
    Opex ($k) $ 184,471   $ 181,101   156,954     Up 1.9% Up 17.5%
    Operating Margin 26.5%   26.3%   20.9%     Up 0.2 pts Up 5.6 pts
    Net income ($k) $ 133,791   $ 1,449,363   92,541     Down 90.8% Up 44.6%
    Diluted EPS $ 2.79   $ 29.88   1.89     Down 90.7% Up 47.6%
      Non-GAAP
      Q1’25
    		   Q4’24
    		   Q1’24
    		     QoQ Change YoY Change
    Revenue ($k) $ 637,554   $ 621,665   $ 457,885     Up 2.6% Up 39.2%
    Gross Margin 55.7%   55.8%   55.7%     Down 0.1 pts Flat
    Opex ($k) $ 133,526   $ 126,117   $ 103,426     Up 5.9% Up 29.1%
    Operating Margin 34.7%   35.5%   33.1%     Down 0.8 pts Up 1.6 pts
    Net income ($k) $ 193,813   $ 198,401   $ 137,492     Down 2.3% Up 41.0%
    Diluted EPS $ 4.04   $ 4.09   $ 2.81     Down 1.2% Up 43.8%
    Tax Rate 15.0%   12.5%   12.5%     Up 2.5 pts Up 2.5 pts
    Revenue by End Market
     
        Revenue   YoY Change   % of Revenue
    End Market ($M)   Q1’25
    		 Q1’24   $   %     Q1’25   Q1’24  
    Storage & Computing   $ 188.5 $ 106.1   $ 82.4   77.7%     29.6 %  23.2 % 
    Automotive   144.9 87.1   57.8   66.4%     22.7   19.0  
    Enterprise Data   132.9 149.7   (16.8 )  (11.2% )    20.8   32.7  
    Communications   71.8 46.7   25.1   53.7%     11.3   10.2  
    Consumer   56.9 38.1   18.8   49.3%     8.9   8.3  
    Industrial   42.6 30.2   12.4   41.1%     6.7   6.6  
    Total   $ 637.6 $ 457.9   $ 179.7   39.2%     100 %  100 % 
                               

    Ongoing Business Conditions

    In Q1 2025, MPS achieved record quarterly revenue of $637.6 million, slightly higher than revenue in the fourth quarter of 2024 and 39.2% higher than revenue in the first quarter of 2024.

    Our performance during the quarter reflected the continued strength of our diversified market strategy and a continued trend of the ordering patterns we saw at the end of 2024.

    Q1 2025 highlights include:

    • At our March 20th investor day, we showcased MPS innovation across a range of areas including new opportunities in Robotics, Automotive, Data Center, Building Automation, Medical, and Audio.
    • In Q1, Storage and Computing segment revenue increased 38% quarter-over-quarter on strong demand for both memory and notebook solutions.
    • We continue to win designs across all major Enterprise Data customers with revenue ramps expected in the second half of this year.
    • Finally, Q1 ’25 Automotive revenue increased 13% from Q4’24, the third consecutive quarter of sequential double-digit growth.

    MPS continues to focus on innovation, solving our customers’ most challenging problems, and maintaining the highest level of quality. We continue to invest in new technology, expand into new markets, and to diversify our end-market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply stability, and swiftly adapt to market changes as they occur.

    “Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS.

    Q1’25 Revenue Results

    MPS reported first quarter revenue of $637.6 million, slightly higher than the fourth quarter of 2024 and 39.2% higher than the first quarter of 2024. Compared with the fourth quarter of 2024, sales in Storage & Computing, Automotive, Communication and Industrial improved sequentially.

    First quarter 2025 Storage and Computing revenue of $188.5 million increased 38.1% from the fourth quarter of 2024. The sequential increase was primarily driven by higher sales of power solutions for storage and notebooks. First quarter 2025 Storage and Computing revenue was up 77.7% year over year. Storage and Computing revenue represented 29.6% of MPS’s first quarter 2025 revenue compared with 22.0% in the fourth quarter of 2024.

    First quarter Automotive revenue of $144.9 million increased 12.9% from the fourth quarter of 2024 primarily from higher sales in ADAS, body electronics, and infotainment power solutions. First quarter 2025 Automotive revenue was up 66.4% year over year. Automotive revenue represented 22.7% of MPS’s first quarter 2025 revenue compared with 20.6% in the fourth quarter of 2024.

    First quarter 2025 Communications revenue of $71.8 million was up 12.3% from the fourth quarter of 2025 primarily on higher sales into networking and optical solutions. First quarter 2025 Communications revenue was up 53.7% year over year. Communications sales represented 11.3% of our total first quarter 2025 revenue compared with 10.3% in the fourth quarter of 2024.

    First quarter 2025 Industrial revenue of $42.6 million increased 4.3% from the fourth quarter of 2024 primarily due to higher sales for industrial meters. First quarter 2025 Industrial revenue was up 41.1% year over year. Industrial revenue represented 6.7% of our total first quarter 2025 revenue compared with 6.6% in the fourth quarter of 2024.

    First quarter Consumer revenue of $56.9 million decreased 0.6% from the fourth quarter of 2024 primarily from lower sales in gaming partially offset by higher sales for TV solutions. First quarter 2025 Consumer revenue was up 49.3% year over year. Consumer revenue represented 8.9% of MPS’s first quarter 2025 revenue compared with 9.2% in the fourth quarter of 2024.

    In our Enterprise Data market, first quarter 2025 revenue of $132.9 million decreased 31.8% from the fourth quarter of 2024. First quarter 2025 Enterprise Data revenue was down 11.2% year over year. Enterprise Data revenue represented 20.8% of MPS’s first quarter 2025 revenue compared with 31.3% in the fourth quarter of 2024.

    Q1’25 Gross Margin & Operating Income

    GAAP gross margin was 55.4%, flat to the fourth quarter of 2024. Our GAAP operating income was $168.8 million compared to $163.3 million reported in the fourth quarter of 2024.

    Non-GAAP gross margin for the first quarter of 2025 was 55.7%, down 0.1 percentage points compared to the fourth quarter of 2024. Our non-GAAP operating income was $221.5 million compared to $220.7 million reported in the fourth quarter of 2024.

    Q1’25 Operating Expenses

    Our GAAP operating expenses were $184.5 million in the first quarter of 2025 compared with $181.1 million in the fourth quarter of 2024.

    Our Non-GAAP operating expenses were $133.5 million, up from $126.1 million in the fourth quarter of 2024.

    The differences between non-GAAP operating expenses and GAAP operating expenses for the quarters discussed here are primarily stock-based compensation and related expenses and deferred compensation plan income.

    Total stock-based compensation and related expenses, including approximately $1.7 million charged to cost of goods sold, was $53.8 million compared with $56.3 million recorded in the fourth quarter of 2024.

    The Bottom Line

    First quarter 2025 GAAP net income was $133.8 million or $2.79 per fully diluted share, compared with $1.4 billion or $29.88 per share in the fourth quarter of 2024. Fourth quarter 2024 GAAP net income and EPS included the recognition of a tax benefit granted to a foreign subsidiary.

    First quarter 2025 non-GAAP net income was $193.8 million or $4.04 per fully diluted share, compared with $198.4 million or $4.09 per fully diluted share in the fourth quarter of 2024.

    The first quarter 2025 non-GAAP tax rate increased to 15% from 12.5% in the fourth quarter of 2024.

    There were 48.0 million fully diluted shares outstanding at the end of the first quarter of 2025.

    Balance Sheet and Cash Flow

    Cash, cash equivalents and short-term investments were $1,026.7 million at the end of the first quarter of 2025 compared to $862.9 million at the end of the fourth quarter of 2024. For the first quarter of 2025, MPS generated operating cash flow of $256.4 million compared with the fourth quarter of 2024 operating cash flow of $167.7 million.

    Accounts receivable at the end of the first quarter of 2025 were $214.9 million, representing 31 days of sales outstanding, which was 6 days higher than the 25 days reported at the end of the fourth quarter of 2024.

    Our internal inventories at the end of the first quarter of 2025 were $454.8 million, up from $419.6 million at the end of the fourth quarter of 2024. Days of inventory of 146 days at the end of the first quarter of 2025 was 8 days higher than at the end of the fourth quarter of 2024.

    We have carefully managed our internal inventories throughout the year, balancing the uncertainty in the market with being prepared to capture market upturns when they occur. Comparing current inventory levels using next quarter’s projected revenue, days of inventory at the end of the first quarter of 143 days was 9 days higher than at the end of the fourth quarter of 2024.

    Selected Balance Sheet and Inventory Data (Unaudited)
           
      Q1’25 Q4’24 Q1’24
    Cash, Cash Equivalents, and Short-Term Investments $ 1,026.7 M $ 862.9 M $ 1,286.4 M
    Operating Cash Flow $ 256.4 M $ 167.7 M $ 248.0 M
    Accounts Receivable $ 214.9 M $ 172.5 M $ 194.4 M
    Days of Sales Outstanding 31 Days 25 Days 39 Days
    Internal Inventories $ 454.8 M $ 419.6 M $ 396.0 M
    Days of Inventory (current quarter revenue) 146 Days 138 Days 175 Days
    Days of Inventory (next quarter revenue) 143 Days 134 Days 159 Days
           

    Q2’25 Business Outlook

    For the second quarter of 2025 ending June 30, we are forecasting:

    • Revenue in the range of $640 million to $660 million.
    • GAAP gross margin in the range of 54.9% to 55.5%.
    • Non-GAAP gross margin in the range of 55.2% to 55.8%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.
    • Total stock-based compensation and related expenses in the range of $58.3 million to $60.3 million including approximately $1.9 million that would be charged to cost of goods sold.
    • GAAP operating expenses between $189 million and $195 million.
    • Non-GAAP operating expenses in the range of $132.6 million to $136.6 million. This estimate excludes stock-based compensation and related expenses in the range of $56.4 million to $58.4 million.
    • Interest and other income in the range from $6.2 million to $6.6 million before foreign exchange gains or losses.
    • Non-GAAP tax rate of 15% for 2025.
    • Fully diluted shares outstanding in the range of 47.9 to 48.3 million shares.

    For further information, contact:

    Bernie Blegen
    Executive Vice President and Chief Financial Officer
    Monolithic Power Systems, Inc.
    408-826-0777
    MPSInvestor.Relations@monolithicpower.com 

    Safe Harbor Statement

    This earnings commentary contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Q2’25 Business Outlook” section herein, our statement regarding our business focus, our statement regarding the expansion and diversification of our global supply chain and the quote from our CEO and founder, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the second quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this earnings commentary and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, global tariffs and retaliatory measures, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs and retaliatory measures, and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this earnings commentary or in the accompanying webinar.

    Non-GAAP Financial Measures

    This CFO Commentary contains references to certain non-GAAP financial measures. Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income, net, non-GAAP operating income and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, other income, net, operating income and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense (income), amortization of acquisition-related intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income (expense). Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP other income, net excludes the effect of deferred compensation plan expense (income). Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense (income). Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to Non-GAAP reconciliations in the tables set forth below.

    RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
    (Unaudited, in thousands, except per share amounts)
     
        Three Months Ended March 31,
        2025   2024
    Net income   $ 133,791     $ 92,541  
                     
    Adjustments to reconcile net income to non-GAAP net income:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income), net     (6 )     47  
    Tax effect     5,897       (7,156 )
    Non-GAAP net income   $ 193,813     $ 137,492  
                     
    Non-GAAP net income per share:                
    Basic   $ 4.05     $ 2.83  
    Diluted   $ 4.04     $ 2.81  
                     
    Shares used in the calculation of non-GAAP net income per share:                
    Basic     47,851       48,635  
    Diluted     48,006       48,928  
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Gross profit   $ 353,230     $ 252,441  
    Gross margin     55.4 %     55.1 %
                     
    Adjustments to reconcile gross profit to non-GAAP gross profit:                
    Stock-based compensation and related expenses     1,706       1,900  
    Amortization of acquisition-related intangible assets     287       258  
    Deferred compensation plan expense (income)     (163 )     440  
    Non-GAAP gross profit   $ 355,060     $ 255,039  
    Non-GAAP gross margin     55.7 %     55.7 %
    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)
     
        Three Months Ended March 31,
        2025   2024
    Total operating expenses   $ 184,471     $ 156,954  
                     
    Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:                
    Stock-based compensation and related expenses     (52,105 )     (49,869 )
    Amortization of acquisition-related intangible assets     (33 )     (33 )
    Deferred compensation plan income (expense)     1,193       (3,626 )
    Non-GAAP operating expenses   $ 133,526     $ 103,426  
                     
    RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
    (Unaudited, in thousands)
     
        Three Months Ended March 31,
        2025   2024
    Total operating income   $ 168,759     $ 95,487  
                     
    Adjustments to reconcile total operating income to non-GAAP total operating income:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income)     (1,356 )     4,066  
    Non-GAAP operating income   $ 221,534     $ 151,613  
                     
    RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET
    (Unaudited, in thousands)
     
        Three Months Ended March 31,
        2025   2024  
    Total other income, net   $ 5,131     $ 9,540  
                   
    Adjustments to reconcile other income, net to non-GAAP other income, net:              
    Deferred compensation plan expense (income)     1,350       (4,019 )
    Non-GAAP other income, net   $ 6,481     $ 5,521  
                     
    RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
    (Unaudited, in thousands)
     
        Three Months Ended March 31,
        2025   2024
    Total income before income taxes   $ 173,890     $ 105,027
                   
    Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:              
    Stock-based compensation and related expenses     53,811       51,769
    Amortization of acquisition-related intangible assets     320       291
    Deferred compensation plan expense (income), net     (6 )     47
    Non-GAAP income before income taxes   $ 228,015     $ 157,134
                   
    2025 SECOND QUARTER OUTLOOK
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited)
        Three Months Ending
    March 31, 2025
                     
        Low   High
    Gross margin     54.9 %     55.5 %
    Adjustment to reconcile gross margin to non-GAAP gross margin:                
    Stock-based compensation and other expenses     0.3 %     0.3 %
    Non-GAAP gross margin     55.2 %     55.8 %
                     
    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)
        Three Months Ending
    March 31, 2025
                     
        Low   High
    Operating expenses   $ 189,000     $ 195,000  
    Adjustments to reconcile operating expenses to non-GAAP operating expenses:                
    Stock-based compensation and other expenses     (56,400 )     (58,400 )
    Non-GAAP operating expenses   $ 132,600     $ 136,600  
                     

    The MIL Network –

  • MIL-OSI: Monolithic Power Systems Announces Results for the First Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    KIRKLAND, Wash., May 01, 2025 (GLOBE NEWSWIRE) — Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter ended March 31, 2025.

    The financial results for the quarter ended March 31, 2025 were as follows:

    • Revenue was $637.6 million for the quarter ended March 31, 2025, a 2.6% increase from $621.7 million for the quarter ended December 31, 2024 and a 39.2% increase from $457.9 million for the quarter ended March 31, 2024.
    • GAAP gross margin was 55.4% for the quarter ended March 31, 2025, compared with 55.1% for the quarter ended March 31, 2024.
    • Non-GAAP gross margin (1) was 55.7% for the quarter ended March 31, 2025, excluding the impact of $1.7 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $0.2 million for deferred compensation plan income, compared with 55.7% for the quarter ended March 31, 2024, excluding the impact of $1.9 million for stock-based compensation and related expenses, $0.4 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.
    • GAAP operating expenses were $184.5 million for the quarter ended March 31, 2025, compared with $157.0 million for the quarter ended March 31, 2024.
    • Non-GAAP operating expenses (1) were $133.5 million for the quarter ended March 31, 2025, excluding $52.1 million for stock-based compensation and related expenses and $1.2 million for deferred compensation plan income, compared with $103.4 million for the quarter ended March 31, 2024, excluding $49.9 million for stock-based compensation and related expenses and $3.6 million for deferred compensation plan expense.
    • GAAP operating income was $168.8 million for the quarter ended March 31, 2025, compared with $95.5 million for the quarter ended March 31, 2024.
    • Non-GAAP operating income (1) was $221.5 million for the quarter ended March 31, 2025, excluding $53.8 million for stock-based compensation and related expenses, $1.4 million for deferred compensation plan income and $0.3 million for amortization of acquisition-related intangible assets, compared with $151.6 million for the quarter ended March 31, 2024, excluding $51.8 million for stock-based compensation and related expenses, $4.1 million for deferred compensation plan expense and $0.3 million for amortization of acquisition-related intangible assets.
    • GAAP other income, net was $5.1 million for the quarter ended March 31, 2025, compared with $9.5 million for the quarter ended March 31, 2024.
    • Non-GAAP other income, net (1) was $6.5 million for the quarter ended March 31, 2025, excluding $1.4 million for deferred compensation plan expense, compared with $5.5 million for the quarter ended March 31, 2024, excluding $4.0 million for deferred compensation plan income.
    • GAAP income before income taxes was $173.9 million for the quarter ended March 31, 2025, compared with $105.0 million for the quarter ended March 31, 2024.
    • Non-GAAP income before income taxes (1) was $228.0 million for the quarter ended March 31, 2025, excluding $53.8 million for stock-based compensation and related expenses and $0.3 million for amortization of acquisition-related intangible assets, compared with $157.1 million for the quarter ended March 31, 2024, excluding $51.8 million for stock-based compensation and related expenses and $0.3 million for amortization of acquisition-related intangible assets.
    • GAAP net income was $133.8 million and $2.79 per diluted share for the quarter ended March 31, 2025. Comparatively, GAAP net income was $92.5 million and $1.89 per diluted share for the quarter ended March 31, 2024.
    • Non-GAAP net income (1) was $193.8 million and $4.04 per diluted share for the quarter ended March 31, 2025, excluding $53.8 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $5.9 million for related tax effects, compared with $137.5 million and $2.81 per diluted share for the quarter ended March 31, 2024, excluding $51.8 million for stock-based compensation and related expenses, $0.3 million for amortization of acquisition-related intangible assets and $7.2 million for related tax effects.

    The following is a summary of revenue by end market (in thousands):

        Three Months Ended March 31,
    End Market   2025   2024
    Storage and Computing   $ 188,511   $ 106,121
    Automotive     144,904     87,092
    Enterprise Data     132,924     149,727
    Communications     71,671     46,645
    Consumer     56,947     38,074
    Industrial     42,597     30,226
    Total   $ 637,554   $ 457,885

    “Our proven, long-term growth strategy remains intact as we continue our transformation from being a chip-only, semiconductor supplier to a full service, silicon-based solutions provider,” said Michael Hsing, CEO and founder of MPS. 

    Business Outlook

    The following are MPS’s financial targets for the second quarter ending June 30, 2025:

    • Revenue in the range of $640.0 million to $660.0 million.
    • GAAP gross margin between 54.9% and 55.5%. Non-GAAP gross margin (1) between 55.2% and 55.8%, which excludes the impact from stock-based compensation and related expenses as well as the impact from amortization of acquisition-related intangible assets.
    • GAAP operating expenses between $189.0 million and $195.0 million. Non-GAAP operating expenses (1) between $132.6 million and $136.6 million, which excludes estimated stock-based compensation and related expenses in the range of $56.4 million to $58.4 million.
    • Total stock-based compensation and related expenses of $58.3 million to $60.3 million including approximately $1.9 million that would be charged to cost of goods sold.
    • Interest and other income in the range of $6.2 million to $6.6 million before foreign exchange gains or losses.
    • Non-GAAP tax rate of 15% for 2025.
    • Fully diluted shares outstanding between 47.9 million and 48.3 million.

    (1) Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income, net and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, operating income, other income, net and income before income taxes determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation and related expenses, which include stock-based compensation expense and employer payroll taxes in relation to the stock-based compensation, net deferred compensation plan expense (income), amortization of acquisition-related intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan income (expense). Non-GAAP operating income excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and deferred compensation plan expense (income). Non-GAAP other income, net excludes the effect of deferred compensation plan expense (income). Non-GAAP income before income taxes excludes the effect of stock-based compensation and related expenses, amortization of acquisition-related intangible assets and net deferred compensation plan expense (income). Projected non-GAAP gross margin excludes the effect of stock-based compensation and related expenses, and amortization of acquisition-related intangible assets. Projected non-GAAP operating expenses exclude the effect of stock-based compensation and related expenses. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to non-GAAP reconciliations in the tables set forth below.

    Earnings Commentary
    Earnings commentary on the results of operations for the quarter ended March 31, 2025 is available under the Investor Relations page on the MPS website.

    Earnings Webinar
    MPS plans to host a question-and-answer webinar covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, May 1, 2025. The live event will be held via a Zoom webcast, which can be accessed at: https://mpsic.zoom.us/j/92570889542. The Zoom webcast can also be accessed live over the phone by dialing (669) 444-9171; the webcast ID is 92570889542. A replay of the event will be archived and available for replay for one year under the Investor Relations page on the MPS website.

    Safe Harbor Statement
    This press release contains, and statements that will be made during the accompanying earnings webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the “Business Outlook” section and the quote from our CEO herein, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the second quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development (“R&D”), expected revenue growth, customers’ acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying earnings webinar are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, global tariffs and retaliatory measures, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs and retaliatory measures, and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this press release or in the accompanying earnings webinar.

    About Monolithic Power Systems
    Monolithic Power Systems, Inc. (“MPS”) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

    Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries. 

    Contact:
    Bernie Blegen
    Executive Vice President and Chief Financial Officer
    Monolithic Power Systems, Inc.
    408-826-0777
    MPSInvestor.Relations@monolithicpower.com

    Monolithic Power Systems, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited, in thousands, except par value)
        March 31,   December 31,
        2025   2024
    ASSETS                
    Current assets:                
    Cash and cash equivalents   $ 637,354     $ 691,816  
    Short-term investments     389,310       171,130  
    Accounts receivable, net     214,866       172,518  
    Inventories     454,793       419,611  
    Other current assets     92,063       109,978  
    Total current assets     1,788,386       1,565,053  
    Property and equipment, net     527,348       494,945  
    Acquisition-related intangible assets, net     9,651       9,938  
    Goodwill     25,944       25,944  
    Deferred tax assets, net     1,318,457       1,326,840  
    Other long-term assets     135,974       194,377  
    Total assets   $ 3,805,760     $ 3,617,097  
                     
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    Current liabilities:                
    Accounts payable   $ 127,310     $ 102,526  
    Accrued compensation and related benefits     74,785       63,918  
    Other accrued liabilities     161,306       128,123  
    Total current liabilities     363,401       294,567  
    Income tax liabilities     69,535       65,193  
    Other long-term liabilities     105,814       111,570  
    Total liabilities     538,750       471,330  
    Commitments and contingencies                
    Stockholders’ equity:                
    Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,877 and 47,823, respectively     764,959       706,817  
    Retained earnings     2,545,375       2,487,461  
    Accumulated other comprehensive loss     (43,324 )     (48,511 )
    Total stockholders’ equity     3,267,010       3,145,767  
    Total liabilities and stockholders’ equity   $ 3,805,760     $ 3,617,097  
    Monolithic Power Systems, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited, in thousands, except per share amounts)
        Three Months Ended March 31,
        2025   2024
    Revenue   $ 637,554     $ 457,885  
    Cost of revenue     284,324       205,444  
    Gross profit     353,230       252,441  
    Operating expenses:                
    Research and development     92,227       75,990  
    Selling, general and administrative     92,244       80,964  
    Total operating expenses     184,471       156,954  
    Operating income     168,759       95,487  
    Other income, net     5,131       9,540  
    Income before income taxes     173,890       105,027  
    Income tax expense     40,099       12,486  
    Net income   $ 133,791     $ 92,541  
                     
    Net income per share:                
    Basic   $ 2.80     $ 1.90  
    Diluted   $ 2.79     $ 1.89  
    Weighted-average shares outstanding:                
    Basic     47,851       48,635  
    Diluted     48,006       48,928  
    RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
    (Unaudited, in thousands, except per share amounts)
        Three Months Ended March 31,
        2025   2024
    Net income   $ 133,791     $ 92,541  
                     
    Adjustments to reconcile net income to non-GAAP net income:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income), net     (6 )     47  
    Tax effect     5,897       (7,156 )
    Non-GAAP net income   $ 193,813     $ 137,492  
                     
    Non-GAAP net income per share:                
    Basic   $ 4.05     $ 2.83  
    Diluted   $ 4.04     $ 2.81  
                     
    Shares used in the calculation of non-GAAP net income per share:                
    Basic     47,851       48,635  
    Diluted     48,006       48,928  
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Gross profit   $ 353,230     $ 252,441  
    Gross margin     55.4 %     55.1 %
                     
    Adjustments to reconcile gross profit to non-GAAP gross profit:                
    Stock-based compensation and related expenses     1,706       1,900  
    Amortization of acquisition-related intangible assets     287       258  
    Deferred compensation plan expense (income)     (163 )     440  
    Non-GAAP gross profit   $ 355,060     $ 255,039  
    Non-GAAP gross margin     55.7 %     55.7 %
    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total operating expenses   $ 184,471     $ 156,954  
                     
    Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:                
    Stock-based compensation and related expenses     (52,105 )     (49,869 )
    Amortization of acquisition-related intangible assets     (33 )     (33 )
    Deferred compensation plan income (expense)     1,193       (3,626 )
    Non-GAAP operating expenses   $ 133,526     $ 103,426  
    RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total operating income   $ 168,759     $ 95,487  
                     
    Adjustments to reconcile total operating income to non-GAAP total operating income:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income)     (1,356 )     4,066  
    Non-GAAP operating income   $ 221,534     $ 151,613  
    RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total other income, net   $ 5,131     $ 9,540  
                     
    Adjustments to reconcile other income, net to non-GAAP other income, net:                
    Deferred compensation plan expense (income)     1,350       (4,019 )
    Non-GAAP other income, net   $ 6,481     $ 5,521  
    RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
    (Unaudited, in thousands)
        Three Months Ended March 31,
        2025   2024
    Total income before income taxes   $ 173,890     $ 105,027  
                     
    Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:                
    Stock-based compensation and related expenses     53,811       51,769  
    Amortization of acquisition-related intangible assets     320       291  
    Deferred compensation plan expense (income), net     (6 )     47  
    Non-GAAP income before income taxes   $ 228,015     $ 157,134  
    2025 SECOND QUARTER OUTLOOK
    RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
    (Unaudited)
        Three Months Ending
        June 30, 2025
        Low   High
    Gross margin     54.9 %     55.5 %
    Adjustment to reconcile gross margin to non-GAAP gross margin:                
    Stock-based compensation and other expenses     0.3 %     0.3 %
    Non-GAAP gross margin     55.2 %     55.8 %
    RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
    (Unaudited, in thousands)
        Three Months Ending
        June 30, 2025
        Low   High
    Operating expenses   $ 189,000     $ 195,000  
    Adjustments to reconcile operating expenses to non-GAAP operating expenses:                
    Stock-based compensation and other expenses     (56,400 )     (58,400 )
    Non-GAAP operating expenses   $ 132,600     $ 136,600  

    The MIL Network –

  • MIL-OSI USA: US Department of Labor awards $4M in funding to continue disaster-relief jobs, training for North Carolinians affected by Hurricane Helene

    Source: US Department of Labor

    WASHINGTON – The U.S. Department of Labor today awarded incremental funding of $4 million to support disaster-relief jobs and continue employment training for North Carolina residents harmed in September 2024 when Hurricane Helene brought the worst flooding in a century to the area. 

    In October 2024, the department’s Employment and Training Administration responded by awarding a National Dislocated Worker Grant of up to $10 million, with an initial award of $2 million, to assist with cleanup and recovery activities in 25 North Carolina communities affected by the storm. 

    This Disaster Recovery National Dislocated Worker Grant allows the North Carolina Department of Commerce, Division of Workforce Solutions to provide people with temporary jobs focused on cleanup and recovery efforts, as well as providing employment and training services to storm survivors. 

    Supported by the Workforce Innovation and Opportunity Act of 2014, National Dislocated Worker Grants provide a state or local board with funding for direct services and assistance in areas experiencing a major economic dislocation event that leads to workforce needs exceeding available resources. 

    MIL OSI USA News –

  • MIL-OSI Economics: Déclaration d’ouverture du Président de la réunion du Comité directeur du Partenariat pour le coton

    Source: WTO

    Headline: Opening statement by the Chair of the meeting of the Steering Committee of the Partnership for Cotton

    S.E. Professeur Oramah, Président d’Afreximbank,S.E. Mme Alimatou Shadiya ASSOUMAN, Ministre du Commerce et de l’Industrie, BéninCher Eric Trachtenberg, Directeur exécutif du Comité consultatif international du coton,Cher Gunther Berger, Directeur général, ONUDIChère Mme Kanayo Awani, Vice-présidente exécutive, Commerce intra-africain et Développement des exportations, AfreximbankExcellences, distingués collègues, partenaires et parties prenantes,Mesdames et Messieurs
    Au nom de la Directrice générale de L’Organisation mondiale du commerce, Ngozi et en mon nom personnel, je vous souhaite la bienvenue à cette réunion du Comité de pilotage du Partenariat pour le Coton.
    Je vous présente toutes mes excuses de ne pouvoir être présent physiquement avec vous au Caire comme c’était initialement prévu.
    Je reste pleinement engagé dans le travail important que nous menons ensemble dans le cadre du Partenariat, et je me réjouis à l’avance des résultats de vos échanges.
    Permettez-moi de remercier chaleureusement les autorités égyptiennes et l’Afreximbank pour leur accueil et l’organisation de cette réunion importante.
    Mes remerciements s’adressent bien sur également à nos partenaires de l’ONUDI, pour leur rôle moteur dans notre partenariat, ainsi qu’à l’ensemble de ceux qui y participent — gouvernements, organisations internationales, institutions financières,  et acteurs du secteur privé — au premier rang desquels nous reconnaissons tous les pays du C4, qui en sont les inspirateurs et portent la cause de l’économie du coton depuis près d’un quart de siècle à l’OMC.  
    Pour nos discussions des deux prochains jours, notre objectif est clair : trouver les moyens de renforcer les chaînes de valeur du secteur coton–textile–habillement dans les pays du C4 «+»: le Bénin, le Burkina Faso, le Tchad, le Mali et la Côte d’Ivoire, en créant davantage de valeur ajoutée, en élargissant les opportunités commerciales, et en assurant des résultats de développement durables.
    Concrètement, il s’agira de :
    Présenter les rapports nationaux et celui régional issus des différentes consultations dans les pays du C4+ ;
    Identifier les priorités nationales ainsi que les besoins en matière d’assistance technique et de financement des investissements ;
    Échanger sur les mesures de soutien et les options de financement proposées par les institutions financières, sur la base des rapports issus des consultations nationales.
    Cette réunion du Comité de pilotage se tient à un moment charnière, au terme d’un travail collectif considérable de mise à jour de l’état des lieux de la filière coton et des enjeux de notre Partenariat. En juin 2024, le Comité de pilotage a validé les conclusions d’une étude de référence menée par l’ONUDI, avec l’appui du Centre du Commerce International. En septembre 2024, des consultations nationales se sont tenues sur cette base dans les cinq pays du C-4+. Ces consultations ont permis d’identifier les priorités du secteur coton-textile-habillement, sur lesquelles des présentations vous seront faites dans un instant.
    L’enthousiasme autour du Partenariat, la diversité des parties prenantes et institutions représentées ici aujourd’hui, les perspectives prometteuses que laissent espérer les études nationales ainsi, la mobilisation des institutions financières, montrent une dynamique tournée vers l’action.
    C’est cette dynamique que nous voulons nourrir, avec déjà, en ligne de mire, l’échéance de la prochaine conférence ministérielle de l’OMC, au printemps 2026, qui se tiendra en terre africaine, à Yaoundé, et pourrait représenter une nouvelle étape pour notre mobilisation. 
    C’est en nous plaçant dans cette perspective optimiste que j’ouvre la réunion de notre comité de pilotage. Je forme le vœu que nos échanges au cours de ces deux journées soient porteurs de résultats concrets pour l’industrialisation et la transformation locale du coton dans les pays partenaires.
    Nous pourrons rapporter ces résultats aux membres de l’OMC lors de notre prochaine discussion sur le coton, prévue le 14 mai à l’OMC, qui abordera toutes les problématiques auxquelles fait face l’industrie cotonnière dans les pays du C4 et les autres pays en développement.
    Je vous remercie de votre attention et cède à présent la parole à Son Excellence Madame Kanayo Awani, Vice-Présidente exécutive du Commerce intra-africain et du Développement des exportations à Afreximbank.
    A très bientôt à Genève.

    Share

    MIL OSI Economics –

  • MIL-OSI USA: FEMA Alert: Watch for Fraud After April Storms in Kentucky

    Source: US Federal Emergency Management Agency

    Headline: FEMA Alert: Watch for Fraud After April Storms in Kentucky

    FEMA Alert: Watch for Fraud After April Storms in Kentucky

    FRANKFORT, Ky

     – If you are a survivor of Kentucky April storms, straight-line winds, tornadoes, floods, landslides and mudslides, you may also be a target of con artists and criminals who try to obtain money or steal personal information

    Protect Your IdentityIn some cases, thieves try to apply for FEMA assistance using names, addresses and Social Security numbers they have stolen from survivors

    If a FEMA inspector comes to your home and you did not submit a FEMA application, your information may have been used without your knowledge to create a FEMA application

    If so, please inform the inspector that you did not apply for FEMA assistance, so the inspector can submit a request to stop further processing of the application

    If you did not apply for assistance, but received a letter from FEMA, please call the FEMA Helpline at 800-621-3362

    The Helpline will submit a request to stop any further processing of that application

    If you do wish to apply for FEMA assistance after stopping an application made in your name without your knowledge, the Helpline will assist you in creating a new application

    Identify Legitimate FEMA StaffFEMA Disaster Survivor Assistance teams, housing inspectors and other officials are working in areas impacted by the April severe storms throughout Kentucky

    They carry official identification badges with photo

    FEMA representatives never charge applicants for disaster assistance, inspections or help in filling out applications

     Don’t believe anyone who promises a disaster grant in return for payment

    Don’t give your banking information to a person claiming to be a FEMA housing inspector

    FEMA inspectors never collect your personal financial information

     Report Scams and FraudIf you believe you are the victim of a scam report it immediately to your local police or sheriff’s department, or contact the Office of the Attorney General by calling 502-696-5485 or visit its website at Natural Disaster Scams – Kentucky Attorney General

    To file a fraud complaint, go online to Scam Report (kentucky

    gov)

    If you suspect fraudulent activity involving FEMA, you can report it to the FEMA Fraud Branch at:  StopFEMAFraud@fema

    dhs

    gov, or write to: FEMA Fraud and Internal Investigation Division, 400 C Street SW Mail Stop 3005, Washington, DC 20472-3005

    If you suspect identity theft, please visit Identity Theft | FTC Consumer Information or IdentityTheft

    gov

     How To Apply for FEMA AssistanceSurvivors in the Anderson, Butler, Carroll, Christian, Clark, Franklin, Hardin, Hopkins, Jessamine, McCracken, Mercer, Owen and Woodford counties who have disaster-caused damage or loss from the April storm can apply for federal disaster assistance under the major disaster declaration DR-4864 in several ways:Online at DisasterAssistance

    gov

    Visit any Disaster Recovery Center

    To find a center close to you, visit fema

    gov/DRC, or text DRC along with your Zip Code to 43362 (Example: “DRC 29169”)

    Use the FEMA mobile app

    FEMA works with every household on a case-by-case basis

    Call the FEMA Helpline at 800-621-3362

    It is open 7 a

    m

    to 10 p

    m

    Eastern Daylight Time

    Help is available in many languages

    If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA your number for that service

     For more information about Kentucky flooding recovery, visit www

    fema

    gov/disaster/4860 and www

    fema

    gov/disaster/4864

    Follow the FEMA Region 4 X account at x

    com/femaregion4

    martyce

    allenjr
    Thu, 05/01/2025 – 16:27

    MIL OSI USA News –

  • MIL-OSI Asia-Pac: Rakesh Verma takes charge as Director General, IIIDEM; Ashish Goyal takes charge as Director General, Media

    Source: Government of India

    Posted On: 01 MAY 2025 7:47PM by PIB Delhi

    Shri. Rakesh Verma, assumes charge as Director General, India International Institute of Democracy and Election Management (IIIDEM), New Delhi here today.  Shri Verma is a 1993 batch IAS Officer from Punjab Cadre. He holds a degree in Computer Science and Engineering from IIT Delhi. 

    2. Prior to this, he was serving as Additional Secretary, Department of Water Resources, River Development and Ganga Rejuvenation, Ministry of Jal Shakti. Earlier he also served as Additional Secretary and Joint Secretary in the Ministry of Tourism.

    3. Shri. Ashish Goyal, assumed charge as Director General, Media in the Election Commission of India (ECI) today. Shri Goyal is a 1996 batch IIS officer. He holds a Masters in Business Administration from Panjab University and a Bachelor’s degree in Engineering from Punjab Engineering College, Chandigarh.

    4. Prior to this, he was serving as the Director General of National Museum, Ministry of Culture with additional charge of Director, Salar Jung Museum.

    ******

    PK/GDH/RP

    (Release ID: 2125891) Visitor Counter : 44

    MIL OSI Asia Pacific News –