NewzIntel.com

Category: Commerce

  • MIL-OSI Economics: The power of AI to increase access to good jobs for all

    Source: Microsoft

    Headline: The power of AI to increase access to good jobs for all

    Adopting technology, policies, and practices with disabled talent

    Business Case for Accessible Transportation. For 30% of US employees, access to employment includes travel as a part of their work. Accessible airline travel is good business. It connects disabled employees to a global economic workforce, bolsters productivity, and increases efficiency. This month, we worked with The Society for Human Resources Management Foundation (SHRM Foundation) to publish a new report on accessible air travel, A World of Work that Works for All: Accessible Airline Travel for People with Disabilities. The report provides insights into the business case for air travel and recommendations for how organizations can create more inclusive travel policies.

    Accessible formats with AI. The Royal National Institute for the Blind (RNIB), United Kingdom, developed an AI-based solution to streamline and scale its accessible document service to convert complex documents into accessible formats such as braille, large print, and audio. Azure AI and Azure Neural Voice enhance these formats with natural-sounding, conversational audio for a more engaging and accessible experience. “It’s a fundamental right to get information in a format you can access,” says Aidan Forman, Director of Technology and Digital Transformation at RNIB. “Accessible information is genuinely life-changing for blind and partially sighted people to fully participate in society.”

    Skilling to accelerate accessibility. The Assistive Technology Experience Centre by Access Tech Innovation in Lagos, Nigeria provides information, demos, and consultations on assistive technologies. The center has welcomed over 1000 visitors and partnered with local and international organizations to expand its reach. An AI for Accessibility grantee, the center has extended e-learning to more than 130 blind or low vision individuals in multiple countries.

    MIL OSI Economics –

  • MIL-OSI Global: Four ways Mohamed Al Fayed silenced whistleblowers in his organisation

    Source: The Conversation – UK – By Kate Kenny, Professor of Business and Society, University of Galway

    Mohamed Al Fayed owned the luxury goods department store Harrods from 1985 to 2010. Fred Duval/Shutterstock

    On the first anniversary of former Harrods owner Mohamed Al Fayed’s death, more than 20 women accused the billionaire of rape, sexual assault or harassment while they worked at his luxury department store. Many had been in their late teens and early twenties at the time.

    Since then, a further 65 women have come forward to the BBC with allegations dating back as far as 1977, and 40 people are reported to have contacted the police.

    How did Al Fayed silence potential whistleblowers for such a long time? I’ve researched whistleblowing in organisations for almost 15 years. Looking at the allegations made against him, four apparent strategies stand out as textbook examples of how leaders can suppress dissent to continue their terrible behaviour – even today.

    1. The organisation as a fortress

    As the chairman-owner of Harrods, Al Fayed could wander around its swanky shopping halls and oak-panelled offices as he pleased. And it appears he looked for women to target as he did so.

    Security guards had their role, in some cases reportedly turning a blind eye to distraught and dishevelled women leaving Al Fayed’s apartments and houses after attacks. HR people might likewise focus on recruiting certain women – like the security staff, they were just getting on with their work.

    That is the thing about bureaucracies, as philosophers from Hannah Arendt to Max Weber have highlighted. Staff are not responsible for the outcome. They just need to do their job.

    My research on whistleblowing in financial services shows clearly that the kind of blind rule-following many organisational roles require stops workers questioning the big picture and acting ethically by stepping in.

    2. Hi-tech surveillance

    The IRA bomb that exploded in Harrods’ car park in 1983 led to a top-notch system of surveillance being installed by its then owners.

    So, when Al Fayed bought the store two years later, his need for control was satisfied with cameras and recording systems. Eventually, everyone working at Harrods apparently knew about the system, which appears to have stopped them talking to each other about Al Fayed’s behaviour.

    Shockingly, the former Harrods owner appears to have extended this surveillance to the very bodies of the women he targeted. Doctors associated with the company were said to administer mandatory gynaecological examinations to female staff. Fayed was reportedly sent their test results. This meant he had eyes on his workers, bodies and all.

    Today, with things like social media and the ability to share large amounts of data rapidly, it is more difficult for organisations to keep information in-house. And so, we have seen a rapid growth in insider threat detection – using technology like keystroke monitoring, where every keystroke on a computer is tracked without the user’s knowledge, to identify potential leaks.

    A byproduct has been a “chill effect” on workers speaking out about wrongdoing they see in their organisations – something that has been highlighted by the UN as a problem for society.

    My research alongside other academics into whistleblowing in healthcare, engineering and government shows one thing clearly: if trust in the organisation is lacking and workers do not feel protected against potential reprisals, they stay silent. Overt surveillance deters disclosures of organisational abuses.

    Al Fayed was said to prowl Harrods on the hunt for women to target.
    DaLiu/Shutterstock

    3. Legal pressure

    The “non-disclosure agreement plus settlement payoff” tactic that Al Fayed employed with a number of Harrods staff was straight out of the Harvey Weinstein playbook. The disgraced film producer used non-disclosure agreements systematically to silence survivors.

    While non-disclosure agreements are not allowed to be used to stop workers reporting possible crimes or serious wrongdoings, a frightened 20-year-old is not likely to know this.

    In the case of Al Fayed, when Vanity Fair magazine published victims’ testimonies and allegations of serious criminality, his lawyers knew the solution. Keep the legal pressure on until the magazine settled.

    The use of legal tools to silence whistleblowers is one of the biggest concerns for researchers today. From “Slapp” suits – strategic lawsuits against public participation, filed against people who speak out – to inappropriate use of non-disclosure agreements, defensive organisations increasingly turn to the law in public whistleblowing cases. As analysis of the case of whistleblowers at the disgraced blood testing firm Theranos made clear, often the threat of legal action is enough to keep a worker silent.

    4. Dehumanise targets

    Al Fayed, we are told, would chuckle as he openly groped women. One woman reported his laughter after an attempted rape at his Villa Windsor in Paris, when he fell on the floor after she pushed him off.

    Most people would not find humour in such situations, unless they don’t see their victims as “real people”.

    But the likelihood of targets speaking out is, again, slim. A very young person told they are worthless, treated as such, and reminded of it regularly by colleagues and bosses, is not best placed to speak up. Our research with other survivors in work organisations shows how the experience of sexual violence and harassment can leave them vulnerable. They find disclosure of the abuse intolerable without empathetic and supportive colleagues.

    In an organisation designed to prevent workers discussing their concerns together – as Harrods appears to have been – the solidarity required to speak out and be protected through the collective is utterly absent.

    Harrods’ current owners have said they are “appalled” at the allegations, and the business has reached settlements with many of the people who have complained.

    When executing a campaign of “attack, isolate and silence”, money and influence can buy predators a lot of leeway, as other high-profile abusers like Weinstein and Jimmy Savile figured out. But the key thing is the organisation. With the right PR, surveillance, HR and lawyers to take legal action should stories get published, predators will be safe. The secret stays kept – until, one day, people have finally had enough.

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

    – ref. Four ways Mohamed Al Fayed silenced whistleblowers in his organisation – https://theconversation.com/four-ways-mohamed-al-fayed-silenced-whistleblowers-in-his-organisation-240936

    MIL OSI – Global Reports –

  • MIL-OSI Global: Japan election: voters took aim at an untrustworthy government beset by scandal

    Source: The Conversation – UK – By Julie Gilson, Reader in Asian Studies, University of Birmingham

    Japan’s ruling Liberal Democratic party (LDP) suffered a severe blow on October 27 when, alongside its smaller coalition partner, Komeito, it lost its majority in a snap general election. The ruling coalition took 215 seats, fewer than the 233 required, with the centre-left opposition Constitutional Democratic party making big gains.

    Prime Minister Shigeru Ishiba called the election after winning his bid for party leadership in September. He had hoped to cement his position and draw a line under the tenure of his predecessor, Fumio Kishida, who had stepped down earlier that month amid a string of corruption scandals and public discontent over the rising cost of living.

    Ishiba has admitted that voters, who turned out in their third-lowest numbers in Japan’s post-war era, have dealt the LDP a “severe judgment”. But he has vowed to continue ruling the country.

    For its part, the opposition is not unified and therefore not in a position to offer a viable alternative. However, the ability of Ishiba’s government to push through the changes it needs to win back voter support will be severely restricted if the LDP fails to enter into coalition or garner key allies on particular issues.

    The LDP sits at the heart of the so-called “1955 system”, which has seen the party retain almost uninterrupted government control since the end of the second world war. But recent events have rocked Japanese politics.

    At the end of 2023, the public became aware of funding scandals involving dozens of LDP politicians. They were found to have diverted over ¥600 million (£3 million) of campaign donations into slush funds without recording the transactions as they were legally required to do.

    These scandals involved cabinet ministers and close allies of Kishida, who had already faced criticism over their links with the controversial Unification church. The church, whose members are commonly known as the Moonies, has been called a “dangerous cult” by its critics and is accused of exploiting its members financially.

    Japan’s former prime minister, Shinzo Abe, was shot dead in July 2022 by a man who said he held the church responsible for bankrupting his family. Abe was not a member of the church, but his grandfather was a key figure in its establishment in Japan in the 1950s. Kishida ordered party members to end their ties with the church in the aftermath of Abe’s assassination.

    These scandals have taken place against the backdrop of rising prices, stagnant wages and a generally sluggish economy. Consumer price inflation accelerated to 3% in August, a ten-month high. The dreary outlook contributed to voter disillusionment.

    According to a survey by Tokyo-based news agency Kyodo News, the approval rating of Ishiba’s cabinet fell to 32.1% after the vote, from its pre-election rating of 50.7%.

    The electorate has expressed its doubt that a new government could end the distrust caused by the scandals. Rebuilding this trust will only become harder as the yen continues to fall, and Japan’s economic uncertainty, ageing population, and disaffection among young voters persist.

    Regional insecurity

    The electoral body blow could also weaken Japanese foreign policy, with China emerging as the main beneficiary. To its democratic allies, a stable Japan is crucial for securing geopolitical stability in a region that also includes a dominant China, a belligerent Russia and a nuclear-armed North Korea.

    The LDP has traditionally always had a hawkish foreign policy stance. And in recent decades it has moved towards a desire to revise Japan’s “pacifist” constitution in favour of enabling the military to take a more flexible approach to security threats.

    Kishida was lauded abroad for his foreign policy, having proposed increases in the defence budget and more cooperation with the US in the Indo-Pacific region. And Ishiba has previously advocated for an “Asian Nato” to counter China. He has even visited Taiwan’s capital city, Taipei – much to Beijing’s disapproval.

    At the same time, Komeito’s more conservative position on foreign policy has supported an approach towards building diplomatic bridges with China. But should the LDP enter into coalition with the right-wing Japan Innovation party, which is a possibility given it won 38 seats in the recent election, a more assertive stance towards China may arise.

    Led by politician Nobuyuki Baba, the party supports the revision of Japan’s constitution and an increase in defence spending as a means of countering China’s regional influence.

    That said, a prolonged period of incapacitated politics within Japan presents a good opportunity for China to escalate its incursions into Japanese airspace and military manoeuvres around Taiwan. Japan’s leadership now needs to get its house in order quickly if the balance of security in the Indo-Pacific is to be maintained.

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

    – ref. Japan election: voters took aim at an untrustworthy government beset by scandal – https://theconversation.com/japan-election-voters-took-aim-at-an-untrustworthy-government-beset-by-scandal-242406

    MIL OSI – Global Reports –

  • MIL-OSI USA: Rep. Laurel Lee Urges USDA to Expedite Aid for Hurting Florida Agriculture Producers

    Source: United States House of Representatives – Congresswoman Laurel Lee – Florida (15th District)

    Washington, D.C. – Today, Congresswoman Laurel Lee (FL-15) joined Senators Marco Rubio, Rick Scott, Congressman Scott Franklin (FL-18), and the entire Florida delegation in writing Secretary Vilsack to strongly urge the USDA to take immediate action to provide disaster assistance for Florida agricultural producers affected by Hurricanes Helene and Milton. 

    “Agriculture is such an important part of Florida’s 15th District, and after Hurricanes Helene and Milton, our farmers and producers need our support,” said Congresswoman Laurel Lee. “I am urging the USDA to quickly take action and deliver aid to our agriculture producers in Florida who were affected by these disasters so they can get back to feeding America.”

    “The devastation from Hurricanes Debby, Helene and Milton has hit Florida’s farmers hard, and the impacts are rippling through our state. These back-to-back storms wiped out crops, destroyed infrastructure, and put countless livelihoods in jeopardy. The U.S. Department of Agriculture must act swiftly to deliver the critical aid our agricultural producers need to rebuild and recover. Florida can’t do this alone, and our farmers deserve nothing less than our full support,” said Senator Rubio (R-FL).

    “Back-to-back hurricanes have dealt a devastating blow to Florida’s agricultural producers, many of whom are still recovering from the disastrous 2022 season. After four major storms in two years, our farmers and ranchers desperately need help now. One-size-fits-all federal disaster programs consistently fail our state’s agricultural sector, creating onerous application processes and delaying critical aid. After Hurricane Irma in 2017, when USDA administered appropriated funds to Florida through a block grant, the state quickly got help into the hands of our producers. Putting Florida in the driver’s seat made all the difference. Forgoing a federal program in favor of a state solution is a critical, but simple fix,” said Congressman Franklin.

    Specifically, in the letter, the Florida delegation:

    • Emphasize the necessity for the USDA to utilize block grants to distribute aid to Florida and other specialty-crop states, where high volume of disaster program applications overwhelm local Farm Service Agency (FSA) offices and delay assistance for producers;
    • Demand USDA enhance current FSA operations and improve staffing issues;
    • Urge the USDA to provide a budgetary request to House and Senate Appropriations Committees to ensure Congress can appropriate adequate funding for disaster response;
    • Discuss crop insurance reforms to help specialty crop producers recover in tandem with disaster aid; and
    • Reasserts Congress’ desire to collaborate with USDA to ensure proper support for Florida agriculture.

    Hurricane Milton made landfall on Florida’s Gulf Coast just 13 days after Helene and brought high winds, flooding and damage across the entire state. Milton’s path impacted some of Florida’s most productive agricultural areas for fruits, vegetables, dairy, cattle, citrus and other specialty crops. According to the Florida Department of Agriculture and Consumer Services (FDACS), the preliminary estimate of total crop and infrastructure losses ranges from $1.5 to $2.5 billion.

    Congress appropriates relief and disaster funds for the USDA to disburse relief. Currently, it is USDA’s practice to stand up new, unique programs after disasters. These programs are administered by FSA, the USDA subagency charged with helping agricultural producers apply for aid and other USDA assistance programs.

    This practice not only makes the disaster relief process arduous, but also delays delivery of critical assistance for the producers who feed our state and nation. FSA offices across Florida are still having trouble facilitating disaster assistance programs after 2022 Hurricanes Ian and Nicole, which were not in the form of a block grant.

    In contrast, block grants administered by the state expedite disbursement, free up personnel at FSA to efficiently carry out routine programs and provide needed flexibility for states. After Hurricane Irma, Congress appropriated relief to help Florida agriculture and USDA delivered that aid through a block grant to the state. The State of Florida was successful in getting that aid without delay.

    Cosigners include: Rep. Kat Cammack (R-FL-03); Rep. Anna Paulina Luna (R-FL-13); Rep. Neal Dunn (R-FL-02); Rep. Brian Mast (R-FL-21); Rep. Gus Bilirakis (R-FL-12); Rep. Mario Diaz-Balart (R-FL-26); Rep. Laurel Lee (R-FL-15); Rep. Michael Waltz (R-FL-06); Rep. Maria Elvira Salazar (R-FL-27); Rep. Daniel Webster (R-FL-11); Rep. Aaron Bean (R-FL-04); Rep. Bill Posey (R-FL-08); Rep. John Rutherford (R-FL-05); Rep. Darren Soto (D-FL-09); Rep. Byron Donalds (R-FL-19); Rep. Cory Mills (R-FL-7); Rep. Jared Moskowitz (D-FL-23); Rep. Debbie Wasserman Schultz (D-FL-25); Rep. Greg Steube (R-FL-17); Rep. Lois Frankel (D-FL- 22); Rep. Carlos Gimenez (R-FL-28); Rep. Federica Wilson (D-FL-24); Rep. Sheila Cherfilus- McCormick (D-FL-20); Rep. Vern Buchanan (R-FL-16); Rep. Matt Gaetz (R-FL-01); Rep. Kathy Castor (D-FL-14)

    You can read the text of the letter here.

    MIL OSI USA News –

  • MIL-OSI USA: North Dakota’s Office of Legal Immigration Opens Grant Portal to Boost Workforce Diversity and Support Immigrant Integration

    Source: US State of North Dakota

    The North Dakota Department of Commerce is pleased to announce that the application portal is now open for the Office of Legal Immigration Grant Program. This grant program, created under Senate Bill 2142 by the Sixty-eighth Legislative Assembly, is designed to support employers and communities in North Dakota in recruiting, retaining, and integrating New Americans into the state’s workforce and communities. 

    Through this program, the Office of Legal Immigration will offer grants to eligible businesses and community-based organizations seeking to advance workforce and community integration initiatives. Applications are accepted on a first-come, first-served basis, with funds available until June 30, 2025. 

    “This program reflects North Dakota’s commitment to addressing workforce needs through innovative solutions,” said Commerce Workforce Director Katie Ralston Howe. “The Office of Legal Immigration Grant Program will bolster our workforce by enabling employers to attract and retain foreign born talent and empowering communities to be inclusive spaces for Immigrants and New Americans.” 

    Key Points 

    • Submission: All materials must be submitted online, including required documents.
    • Review: Conducted by the Workforce Development Division.
    • Timeline: Reviewed within 3 weeks; notifications within 4 weeks.
    • Grant Agreement: Successful applicants must complete an agreement; funds disbursed based on milestones. 
    • Reporting: Regular progress reports on milestones, expenditures, and outcomes required for accountability. 
    • Deadline: Open until funds are exhausted; final deadline is June 30, 2025. Applications reviewed on a rolling basis.  

    For more information, application guidelines, and eligibility details, visit https://ndgov.link/OLIGrant. 

    MIL OSI USA News –

  • MIL-OSI Economics: ICC Joins SME Resilience Alliance for Ukraine

    Source: International Chamber of Commerce

    Headline: ICC Joins SME Resilience Alliance for Ukraine

    ICC Secretary General John W.H. Denton AO said:

    “By joining the SME Resilience Alliance for Ukraine, ICC builds on its ongoing efforts to support small- and medium-sized enterprises through initiatives like the ICC Centre of Entrepreneurship, aiming to harness the power of the private sector to drive economic recovery and resilience in Ukraine.”

    Additionally, the ICC Centre of Entrepreneurship in Ukraine is working to empower Ukrainian SMEs and assist the re-skilling of internally displace people, notably women.

    ICC also maintains regular consultations with multilateral and bilateral donors to explore strategies for Ukraine’s economic reconstruction. This includes engaging with the Ukraine Donor Platform, its Business Advisory Council, and the rotating Ukraine Recovery Conference (URC) platform.

    As a friend of the SME Resilience Alliance, ICC attended the second meeting, opened by Oleksii Sobolev, First Deputy Minister at the Ministry of Economy of Ukraine. In his speech, Mr Sobolev emphasised the vital role SMEs play in the country’s recovery. With SMEs accounting for more than 90% of all businesses in Ukraine, the Ukrainian government’s SME strategy for 2024-2027 aims to facilitate recovery and enhance human capital and entrepreneurial culture.

    The SME Alliance for Ukraine aims to support the Ukrainian government’s efforts through three key areas: improving regulatory framework conditions, strengthening support institutions for SMEs and enhancing access to finance. Pursuing the goal of mobilising €7 billion for ongoing and new SME programmes, the Alliance has mapped relevant actors in Ukraine and abroad. This allows for the identification of regional as well as sectoral gaps and overlaps in support, and facilitates the linking of potential trading partners. Most SME beneficiaries in Ukraine operate in the agri-food sector, and a large share is owned by women.

    Through its participation in the Alliance, ICC seeks to extend its ongoing efforts to strengthen Ukraine’s economy. ICC has previously been actively engaged in several key initiatives, including the Black Sea Grain Initiative, which has facilitated the export of nearly 33 million tonnes of grain. Additionally, the ICC Centre of Entrepreneurship in Ukraine is working to empower Ukrainian SMEs and assist with refugee integration.

    ICC also maintains regular consultations with multilateral donors and individual contributors to explore strategies for economic reconstruction. This includes engaging with the Ukraine Donor Platform and its Business Advisory Council.

    Through these initiatives and partnerships, ICC remains committed to supporting Ukraine’s economic recovery and fostering a sustainable business environment for SMEs.

    MIL OSI Economics –

  • MIL-OSI USA: Governor Cooper Highlights Tourism Industry in Western North Carolina at Grandfather Mountain, Surveys Storm Damage in Avery County

    Source: US State of North Carolina

    Headline: Governor Cooper Highlights Tourism Industry in Western North Carolina at Grandfather Mountain, Surveys Storm Damage in Avery County

    Governor Cooper Highlights Tourism Industry in Western North Carolina at Grandfather Mountain, Surveys Storm Damage in Avery County
    bconroy

    Today, Governor Roy Cooper traveled to Grandfather Mountain State Park in Avery County to highlight the importance of supporting Western North Carolina’s tourism industry in the wake of Hurricane Helene. Afterward, the Governor assessed damaged areas and spoke with people impacted by the storm in Banner Elk, where he was joined by Western North Carolina native and Grammy-nominated country musician Eric Church.

    “Today I visited beautiful Grandfather Mountain State Park in Avery County and traveled to Banner Elk to see areas that were damaged during Helene,” said Governor Cooper. “Tourism is a critical part of Western North Carolina’s economy, and there are still many wonderful spots in the region open and accepting visitors. I’m grateful for the work of our federal, state and local responders as well as partners like Eric Church who have given time and effort to help communities in need.”

    This week, Governor Cooper signed a Memorandum of Understanding with Western North Carolina native and country musician Eric Church confirming his commitment that publishing royalties from Church’s recent song, “Darkest Hour,” will help fund response and recovery efforts in the aftermath of Hurricane Helene.

    Unaccounted For People

    The DPS Task Force to locate unaccounted for people has 7 people remaining on this list. The Task Force has handed over remaining work on this to local law enforcement.

    Travel to Western North Carolina

    Some roads are closed because they are too damaged and dangerous to travel. Other roads still need to be reserved for essential traffic like utility vehicles, construction equipment and supply trucks. However, some parts of the area are open and ready to welcome visitors which is critical for the revival of Western North Carolina’s economy. If you are considering a visit to the area, consult DriveNC.gov for open roads and reach out to the community and businesses you want to visit to see if they are welcoming visitors back yet.

    North Carolina National Guard Response

    More than 1,700 Soldiers and Airmen are working in Western North Carolina. Joint Task Force- North Carolina, the task force led by the North Carolina National Guard continues to help with commodity distribution and critical debris removal alongside local government workers, volunteers and  numerous civilian entities to get much-needed help to people in Western North Carolina.

    The U.S. Army Corps of Engineers is helping to assess water and wastewater plants and dams. Residents can track the status of the public water supply in their area through this website.

    FEMA Assistance

    Approximately $195 million in FEMA Individual Assistance funds have been paid so far to Western North Carolina disaster survivors and approximately 239,000 people have registered for Individual Assistance. Over 8,600 people are being helped through FEMA’s Transitional Sheltering Assistance. Nearly 6,200 registrations for Small Business Administration Loans have been filed.

    Nearly 1,800 FEMA staff are in the state to help with the Western North Carolina relief effort. In addition to search and rescue and providing commodities, they are meeting with disaster survivors in shelters and neighborhoods to provide rapid access to relief resources. They can be identified by their FEMA logo apparel and federal government identification.

    North Carolinians can apply for Individual Assistance by calling 1-800-621-3362 from 7am to 11pm daily or by visiting www.disasterassistance.gov, or by downloading the FEMA app. FEMA may be able to help with serious needs, displacement, temporary lodging, basic home repair costs, personal property loss or other disaster-caused needs.

    Help from Other States

    More than 1,750 responders from 39 state and local agencies have performed 153 missions supporting the response and recovery efforts through the Emergency Management Assistance Compact (EMAC). This includes public health nurses, emergency management teams supporting local governments, veterinarians, teams with search dogs and more.

    Beware of Misinformation

    North Carolina Emergency Management and local officials are cautioning the public about false Helene reports and misinformation being shared on social media. NCEM has launched a fact versus rumor response webpage to provide factual information in the wake of this storm. FEMA also has a rumor response webpage.

    Efforts continue to provide food, water and basic necessities to residents in affected communities, using both ground resources and air drops from the NC National Guard. Food, water and commodity points of distribution are open throughout Western North Carolina. For information on these sites in your community, visit your local emergency management and local government social media and websites or visit ncdps.gov/Helene.

    Storm Damage Cleanup

    If your home has damages and you need assistance with clean up, please call Crisis Cleanup for access to volunteer organizations that can assist you at 844-965-1386.

    Power Outages

    Across Western North Carolina, approximately 2,200 customers remain without power, down from a peak of more than 1 million. Overall power outage numbers will fluctuate up and down as power crews temporarily take circuits or substations offline to make repairs and restore additional customers.

    Road Closures

    Some roads are closed because they are too damaged and dangerous to travel. Other roads still need to be reserved for essential traffic like utility vehicles, construction equipment and supply trucks. However, some parts of the area are open and ready to welcome visitors which is critical for the revival of Western North Carolina’s economy. If you are considering a visit to the area, consult DriveNC.gov for open roads and reach out to the community and businesses you want to visit to see if they are welcoming visitors back yet.

    NCDOT currently has more than 2,000 employees and more than 900 pieces of equipment working on damaged road sites.

    Fatalities

    101 storm-related deaths have been confirmed in North Carolina by the Office of Chief Medical Examiner. This number is expected to rise over the coming days. The North Carolina Office of the Chief Medical Examiner will continue to confirm numbers twice daily. If you have an emergency or believe that someone is in danger, please call 911.

    Volunteers and Donations

    If you would like to donate to the North Carolina Disaster Relief Fund, visit nc.gov/donate. Donations will help to support local nonprofits working on the ground.

    For information on volunteer opportunities, please visit nc.gov/volunteernc.

    Additional Assistance

    There is no right or wrong way to feel in response to the trauma of a hurricane. If you have been impacted by the storm and need someone to talk to, call or text the Disaster Distress Helpline at 1-800-985-5990. Help is also available to anyone, anytime in English or Spanish through a call, text or chat to 988. Learn more at 988Lifeline.org.

    If you are seeking a representative from the North Carolina Joint Information Center, please email ncempio@ncdps.gov or call 919-825-2599.

    For general information, access to resources, or answers to frequently asked questions, please visit ncdps.gov/helene.

    If you are seeking information on resources for recovery help for a resident impacted from the storm, please email IArecovery@ncdps.gov.

    ###

    Oct 31, 2024

    MIL OSI USA News –

  • MIL-Evening Report: The ‘big 4’ accounting firms often consult for the same clients they audit. Should that be allowed?

    Source: The Conversation (Au and NZ) – By Helen Spiropoulos, Associate Professor, University of Technology Sydney

    Public trust in the auditing profession is under intense pressure. A series of high-profile scandals, both in Australia and overseas, has severely damaged its reputation.

    This week, Australia’s corporate watchdog – the Australian Securities and Investments Commission (ASIC) – put the entire sector on notice.

    In a letter to auditors on Wednesday, ASIC announced it would soon commence a new data-driven surveillance of auditor independence and conflicts of interest. Put simply, any practices that could compromise the integrity of auditing work.

    The move comes amid longstanding calls for stronger regulation. Some have gone as far as to call for auditors – particularly the “big four” – to be banned from offering consulting services to their audit customers. Why? Fears it helps companies unethically game the system.

    But our recent research, which specifically examines chief executive pay, offers an alternative perspective and suggests we should tread carefully.



    Read more:
    A year after the PwC scandal, the furore is gone – as well as any real appetite for structural change

    Objectivity and independence

    The “big four” – PricewaterhouseCoopers (PwC), Ernst & Young (EY), KPMG and Deloitte – are the world’s largest professional services firms. They offer services in auditing, consulting, tax and advisory services.

    Known for their extensive resources and global reach, these firms serve major clients, including many publicly listed companies and governments.

    However, some have raised concerns about potential conflicts of interest that may arise when these firms provide both consulting and auditing to the same client.

    Auditing is the process of examining a company’s financial statements and processes to ensure both accuracy and compliance with accounting standards.

    Conducted by external auditors, it’s meant to give investors, regulators, and the public confidence that a company’s financial picture is accurate and trustworthy.

    The key worry is that offering both services risks compromising an auditor’s objectivity and independence.

    Auditors may be incentivised to shy away from scrutinising their clients too closely, if it helps preserve lucrative consulting contracts.

    How much money should the boss make?

    Professional services firms, including the big four, are often engaged as external consultants to help decide on “executive compensation” – how much a company’s chief executive should be paid.

    Chief executive pay is highly contentious. They can earn staggering amounts of money, which can sometimes appear disconnected from how well a company is actually performing and what’s in its shareholders’ best interests.

    Large companies often outsource decisions about how much to pay chief executives.
    GaudiLab/Shutterstock

    Compensation consultants are hired to help structure these pay packages, ideally by setting up performance targets that align chief executives’ incentives with shareholder value.

    The idea is that if you don’t meet a certain goal as the boss, you should miss out on being paid for it.

    But these consultants can also be a part of the problem. As chief executives can influence whether a particular consultant is hired or retained, consultants might design favourable contracts to increase their chances of getting hired again.

    How? By setting up targets that are easy to hit, or vague enough to avoid true accountability.

    Such accountability in executive compensation is extremely important. How much those at the top get paid should reflect the quality of their decisions.

    Without proper oversight, pay structures risk incentivising quick wins instead of long-term growth, which could potentially harm investors, employees and the company’s future.

    To solve this problem, you need transparent performance metrics. This makes it easier for shareholders to see whether chief executives are truly earning their pay.

    When executive compensation consultants do their job well, such transparency gets built in. So how does the big four score?

    What we found

    Our study, published in the Australian Journal of Management, analysed chief executives’ compensation structures in a sample drawn from the 500 largest companies listed on the Australian Securities Exchange (ASX), between 2005 and 2019.

    We found that the big four, when engaged as compensation consultants, appeared to uphold more rigorous standards than their smaller counterparts.

    For example, big four firms were more likely to recommend including performance measures like “relative total shareholder return”, which takes the performance of a company’s competitors into account.

    This can reduce the likelihood of “pay for luck” – paying a chief executive extra when a company performs well simply due to market-wide factors, such as movements in commodity prices or currency exchange rates.

    Non-big four consultants, on the other hand, showed a tendency towards less clearly defined targets, which can open the door to less accountability.

    Compensation consultants should set targets for chief executives that genuinely reflect good performance.
    Owlie Productions/Shutterstock

    What’s behind this effect?

    One possible explanation for our findings is that the big four’s multi-service approach gives them less reliance on securing repeat business from any single client.

    With consulting, tax, audit and advisory services across various industries, these firms aren’t as dependent on individual clients, which can give them greater freedom to recommend compensation packages that may not always align with a chief executive’s preferences.

    It has been argued, including by former chairman of the Australian Competition and Consumer Commission Graeme Samuel, that the big four’s consulting services pose potential conflicts that could compromise their audit duties.

    The same could be said for other advisory services provided by these firms.

    However, our findings offer evidence that when it comes to executive compensation, the big four’s reputation and expertise may actually discourage practices that obscure performance metrics or result in excessive chief executive pay.

    Any reforms should tread carefully

    The auditing sector will be watching the outcomes of ASIC’s forthcoming “crackdown” closely. The case for stricter oversight is strong.

    But we should be careful not to lose the nuance of this issue. In some cases, the big four’s multi-service approach may actually elevate governance standards rather than erode them.

    In a market dominated by these firms, the consequences of their exit from consulting services could extend beyond audit independence.

    Ironically, forcing these firms out of consulting could make auditing their primary revenue source from many clients, creating the very dependence regulators aim to avoid.

    Are we ready to face the unintended effects of limiting these firms’ roles? If our research is any indication, the answer is not so clear-cut.

    As an undergraduate student, Helen Spiropoulos did two internships at Deloitte in the areas of Audit and then Consulting (Strategy and Operations).

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

    – ref. The ‘big 4’ accounting firms often consult for the same clients they audit. Should that be allowed? – https://theconversation.com/the-big-4-accounting-firms-often-consult-for-the-same-clients-they-audit-should-that-be-allowed-242588

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: In Norway, students get grades for their behaviour – could this work in Australia?

    Source: The Conversation (Au and NZ) – By Stephen Dobson, Professor and Dean of Education and the Arts, CQUniversity Australia

    Student behaviour is one of the biggest issues facing Australian schools. A survey of Queensland teachers earlier this year found “managing student behaviour” was the main thing taking their time away from teaching.

    Along with students talking out of turn, using their phones or not paying attention, there are regular reports of students being violent and abusive towards teachers. Australian classrooms are rated among the “least favourable” for discipline in the OECD.

    Amid a push to include more classroom management training for teachers, what other approaches could we look at to improve behaviour?

    What happens in Norway?

    For several decades Norwegian school children have been assessed twice a year on their sense of personal order (being punctual, well-prepared and following up on homework) and social behaviour (showing care and respect for others).

    In some schools this might involve following rules against throwing snowballs, eating in class or leaving school grounds.

    Until Year 8, students receive comments and then they also get a grade (good, quite good or not so good).

    Teachers in all subjects report to the child’s home base teacher who calculates an average, noting any poor examples of poor personal order and social behaviour. The overall report is shared with the student and parents receive a copy.

    The goal, as specified in Norway’s Education Act, is to ensure a good and safe school environment and “social learning”. This means learning to behave around others through observing, modelling and imitating the behaviours of others.

    This is on top of learning knowledge and skills.

    Norwegian students can be graded on whether they follow rules about snowball throwing.
    Maria Sbytova/Shutterstock

    Does it work?

    Norwegian society takes these grades seriously. It has been part of the Norwegian schooling system since 1939.

    Research on teachers and students describe it as a valued tool for dealing with students who disrupt the learning environment in the classroom.

    Even when young adults apply for jobs after university or vocational study, employers can be interested in the grade received for order and behaviour at school. Students and their teachers are aware it can indicate trustworthiness and employability.

    A not uncommon story repeated by Norwegian parents to their teenage children is “if you have a record of behaving poorly or arriving late at school it doesn’t bode well whether you want to work on a construction site, in an office or on a hospital ward”.

    There are Norwegian critics of this approach. Some researchers argue behaviour grades can sometimes say more about who are the “teachers’ favourites”.

    But despite some limited trials to refine Norway’s behaviour grading, there are currently no plans to remove it.

    What about Australia?

    There is some precedence for reporting on behaviour in Australia.

    For example, Queensland public schools report about effort and behaviour against a five-point scale: excellent, very good, satisfactory, needs attention and unacceptable.

    But assessment criteria and evidence for the reporting of student effort and behaviour seems to be a more subjective appraisal than reporting against other standards in the curriculum.

    Some Australian schools already report on aspects of student behaviour.
    Monkey Business Images/ Shutterstock

    School is about more than maths and reading

    Schools can teach students more than academic knowledge or vocational skills.

    And while addressing behaviour in schools is complex (and will not be solved by any single thing), reporting on behaviour could provide a regular opportunity for Australian teachers, schools and parents to reflect on how a students is progressing.

    Grading students could make students more accountable for how they interact with their peers and their teachers.

    It could also help build their understanding of what is acceptable, not just in the classroom but in the community more broadly. For example, if there are specific rules about how you speak to others, whether you are safe in the playground and respectful in the classroom.

    This type of social learning is important, because it can help teach students to be inclusive and responsible towards others. It can also help to create a safer school environment for all students and staff.

    At the moment, there is a general requirement in the Australian Curriculum to teach students social and emotional skills across all subjects.

    But it is up to state and territory education authorities to work out if and how students are assessed about this. This includes any reasonable adjustments for students with disability or other special needs.

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

    – ref. In Norway, students get grades for their behaviour – could this work in Australia? – https://theconversation.com/in-norway-students-get-grades-for-their-behaviour-could-this-work-in-australia-239384

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: NEWS RELEASE: SEPTEMBER 2024 VISITOR ARRIVALS RECOVERED 96.1 PERCENT COMPARED TO PRE-PANDEMIC SEPTEMBER 2019

    Source: US State of Hawaii

    NEWS RELEASE: SEPTEMBER 2024 VISITOR ARRIVALS RECOVERED 96.1 PERCENT COMPARED TO PRE-PANDEMIC SEPTEMBER 2019

    Posted on Oct 31, 2024 in Latest Department News, Newsroom

    DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM

     

    RESEARCH AND ECONOMIC ANALYSIS DIVISION

     

    JOSH GREEN, M.D.
    GOVERNOR

    JAMES KUNANE TOKIOKA

    DIRECTOR

    1. EUGENE TIAN
      CHIEF STATE ECONOMIST

     

     

     

    FOR IMMEDIATE RELEASE

    October 31, 2024

    SEPTEMBER 2024 VISITOR ARRIVALS RECOVERED 96.1 PERCENT COMPARED TO PRE-PANDEMIC SEPTEMBER 2019

     

    HONOLULU – Total visitor arrivals in September 2024 represent a 96.1 percent recovery from pre-pandemic September 2019, the best recovery rate since the Maui wildfires (not including February 2024, which had a leap day). Total nominal visitor spending increased 16.3 percent compared to September 2019. According to preliminary statistics from the Department of Business, Economic Development and Tourism (DBEDT), there were 707,486 visitors to the Hawaiian Islands in September 2024, up 7.8 percent from the same month last year. Total visitor spending measured in nominal dollars was $1.45 billion, growth of 4.6 percent from September 2023.

    In September 2024, 688,831 visitors arrived by air service, mainly from the U.S. West and U.S. East. Additionally, 18,655 visitors arrived via out-of-state cruise ships. In comparison, 648,145 visitors (+6.3%) arrived by air and 8,143 visitors (+129.1%) came by cruise ships in September 2023, and 718,042 visitors (-4.1%) came by air and 18,114 visitors (+3.0%) came by cruise ships in September 2019.

    The average length of stay by all visitors in September 2024 was 8.23 days, which was shorter than September 2023 (8.61 days, -4.4%) and September 2019 (8.40 days, -2.0%). The statewide average daily census was 194,156 visitors in September 2024, compared to 188,319 visitors (+3.1%) in September 2023 and 206,169 visitors (-5.8%) in September 2019.

    In September 2024, 359,688 visitors arrived from the U.S. West, an increase from September 2023 (329,347 visitors, +9.2%) and September 2019 (305,808 visitors, +17.6%). U.S. West visitor spending of $663.6 million grew compared to September 2023 ($604.5 million, +9.8%) and was considerably higher than September 2019 ($466.0 million, +42.4%). Daily spending by U.S. West visitors in September 2024 ($228 per person) increased compared to September 2023 ($223 per person, +2.3%) and was significantly more than September 2019 ($179 per person, +27.5%).

    In September 2024, 160,299 visitors arrived from the U.S. East, up from September 2023 (153,737 visitors, +4.3%) and from September 2019 (133,185 visitors, +20.4%). U.S. East visitor spending of $408.9 million increased compared to September 2023 ($404.5 million, +1.1%) and September 2019 ($288.9 million, +41.5%). Daily spending by U.S. East visitors in September 2024 ($274 per person) was slightly less than September 2023 ($275 per person,
    -0.3%) but was much higher than September 2019 ($229 per person, +19.8%).

    There were 64,940 visitors from Japan in September 2024, which was a slight increase from September 2023 (64,580 visitors, +0.6%) but continued to be much lower than September 2019 (143,928 visitors, -54.9%). Visitors from Japan spent $96.2 million in September 2024, compared to $101.3 million (-5.0%) in September 2023 and $196.5 million (-51.0%) in September 2019. Daily spending by Japanese visitors in September 2024 ($240 per person) decreased compared to September 2023 ($243 per person, -1.2%) but was higher than September 2019 ($231 per person, +3.8%).

    In September 2024, 19,188 visitors arrived from Canada, an increase from September 2023 (18,647 visitors, +2.9%), but a decline compared to September 2019 (21,928 visitors, -12.5%). Visitors from Canada spent $43.6 million in September 2024, compared to $48.1 million (-9.3%) in September 2023 and $40.5 million (+7.6%) in September 2019. Daily spending by Canadian visitors in September 2024 ($236 per person) was similar to September 2023 ($236 per person, +0.2%) and was considerably more than September 2019 ($159 per person, +48.8%).

    There were 84,717 visitors from all other international markets in September 2024, comprising visitors from Oceania, Other Asia, Europe, Latin America, Guam, the Philippines, the Pacific Islands and other regions. In comparison, there were 81,833 visitors (+3.5%) from all other international markets in September 2023 and 113,192 visitors (-25.2%) in September 2019.

    Air capacity to the Hawaiian Islands in September 2024 (4,476 transpacific flights with 990,746 seats) increased compared to September 2023 (4,376 flights, +2.3% with 963,916 seats, +2.8%), but declined from September 2019 (4,533 flights, -1.3% with 1,012,883 seats, -2.2%).

    VIEW FULL NEWS RELEASE AND TABLES

     

    Statement by DBEDT Director James Kunane Tokioka

     

    The leading contributor to the September 2024 tourism industry performance was the U.S. market with 519,987 visitors and registered as the second highest September visitor count on record (the highest September number occurred in 2022 with 566,189 visitors). The September 2024 U.S. visitor count was 18.4 percent higher than the same month in 2019. For the first nine months of 2024, the U.S. visitor count was 6.0 percent higher than the same period in 2019.

     

    The rebound of Hawai‘i’s cruise industry, which has surpassed pre-pandemic 2019 levels, was also a contributing factor in September’s performance. Nine out-of-state cruise ships brought 18,655 visitors to the islands in September 2024, more than double the number of visitors who came by cruise ships in September 2023 and 3.0 percent higher than September 2019. For the first nine months of 2024, there were 58 arrivals from out-of-state cruise ships that carried more than 106,000 visitors, a growth of 11.5 percent compared to year-to-date 2019.

     

    Current airlift and travel agency bookings data indicate that the U.S. market will still be leading Hawai‘i’s tourism recovery in the future months. We expect that the foreign exchange rate will be more favorable to foreign visitors and the international market will improve in the near future. During the first nine months of 2024, the recovery of foreign visitors was at 63.6 percent, while Japanese visitor recovery was at 44.5 percent.

     

    # # #

     

     

    Media Contacts:

     

    Laci Goshi

    Department of Business, Economic Development and Tourism

    808-518-5480

    [email protected]

     

    Jennifer Chun

    Director of Tourism Research

    Department of Business, Economic Development and Tourism

    808-973-9446

    [email protected]

    MIL OSI USA News –

  • MIL-OSI USA: California launches new program to improve public safety by reducing homelessness and recidivism

    Source: US State of California 2

    Oct 31, 2024

    What you need to know: California is announcing a new state program using $16 million in federal funds to help improve public safety and reduce recidivism by creating long-term supportive housing and support for people exiting incarceration.

    SACRAMENTO — Governor Newsom today launched a first-of-its-kind program to improve public safety — with new federally funded investments to create long-term supportive housing and comprehensive wrap-around services for individuals exiting incarceration. The funding opportunity is collaboratively administered by the California Department of Housing and Community Development (HCD) and the California Department of Corrections Rehabilitation (CDCR).

    The agencies are now accepting proposals for efforts aimed at reducing the risk of homelessness and recidivism for people who were formerly incarcerated and are reentering society, for the mutual benefit and safety of the individuals being housed and the communities to which they return. 

    “Ensuring that those exiting our prison system have the resources and housing they need makes us all safer. We are grateful for this federal funding to help us reduce homelessness and support those looking for a clean start.”

    Governor Gavin Newsom

    Formerly incarcerated individuals are nearly 10 times more likely than the general public to experience homelessness. However, formerly incarcerated individuals are often excluded from participating in public and affordable housing programs. Studies also indicate reductions in recidivism may occur when formerly incarcerated individuals can secure housing.

    “CDCR knows firsthand how homelessness impacts California communities and is committed to enhancing public safety and promoting successful community reintegration,” said CDCR Secretary Jeff Macomber. “Housing stability is an important aspect to successful reentry, and this groundbreaking effort in partnership with HCD will provide a valuable opportunity to address these challenges.”

    In a concerted effort to lower barriers to housing for people exiting correctional institutions or programs in California, HCD and CDCR will partner to implement the federally funded HOME American Rescue Plan (HOME-ARP) Reentry Housing Pilot Project (RHPP), backed with $16 million from the U.S. Department of Housing and Urban Development. The aim is to lower the rate of homelessness among formerly incarcerated and justice-involved populations, while increasing success in securing employment, furthering education, and helping establish links to health care—all of which lower rates of recidivism. 

    “The Reentry Housing Pilot Project will provide safe and stable homes, along with permanent supportive services to people exiting the justice system,” said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. “Stable housing is a crucial foundation for everyone, including those who were formerly incarcerated. The pilot program will enable them to secure employment, receive necessary health care and reunite with their families. These opportunities and tools serve to benefit both individuals and our communities so we can all succeed.”

    CDCR offers numerous wraparound resources to facilitate successful community reintegration. Research shows that education and employment opportunities for formerly incarcerated individuals have a positive impact on recidivism rates and help them avoid reoffending. Resources for housing, substance use disorder, and other needs such as life skills, jobs, and education are all important in attaining long-term sustainable change.

    Building on those efforts, the Governor is directing HCD and CDCR to work together to add a final step for reentry services, which will provide permanent supportive housing linked to comprehensive, evidence-based programs and services that support successful outcomes and long-term stability.

    “Too often, people leaving prison face a life sentence of housing instability,” said HCD Director Gustavo Velasquez. “Our communities and society are all better for it when we choose to lay the foundation for successful reentry, and housing is the first most critical cornerstone for a more hopeful future.”

    The grants are competitively funded and will be available only to organizations with extensive experience in developing and operating transitional housing and permanent supportive housing for the reentry population.

    Applications for the program are being accepted now and are due by December 31, 2024. Initial HOME-ARP Reentry Housing Pilot Project awards are anticipated in early summer of 2025. Learn more about the program and eligibility requirements here.

    More housing. More accountability.

    Since taking office, Governor Newsom has invested $40 billion in housing production. The state has also invested more than $27 billion to help communities address homelessness.

    Governor Newsom championed the creation of the Housing Accountability Unit at HCD to ensure cities and counties fulfill their legal responsibilities to plan and permit their fair share of housing. This focus on accountability has, in part, led to a 15-year high in housing starts in California. Since its establishment, the Housing Accountability Unit has supported the development of 7,513 housing units, including 2,765 affordable units, through enforcement actions and by working with local jurisdictions to ensure compliance with housing law. 

    Addressing the homeless crisis 

    This also follows the Governor’s recent executive order urging local government to quickly address encampments and provide individuals experiencing homelessness with the care, compassion, and support they need. Earlier this month, the Governor announced $130.7 million in new funding for local communities to help people experiencing homelessness in dangerous encampments, paired with robust accountability measures.

    California recently announced 37 new grant awards totaling more than $827 million to help more than 100 local communities and organizations create long-term solutions to address homelessness, with strong accountability and transparency measures and clear expectations to ensure that local strategies to address homelessness are measurable and effective. 

    The agencies are now accepting proposals for efforts aimed at reducing the risk of homelessness and recidivism for people who were formerly incarcerated and are reentering society, for the mutual benefit and safety of the individuals being housed and the communities to which they return. 

    Recent news

    Oct 30, 2024

    News Lo que necesita saber: A fines del 2023, California distribuyó más de $267 millones a las agencias policiales locales y a los fiscales en todo el Estado para combatir los delitos organizados contra la propiedad y el comercio minorista. En los primeros nueve…

    Oct 30, 2024

    News Lo que necesita saber: El gobernador Newsom anunció 37 nuevas subvenciones por un total de más de $827 millones para ayudar a más de 100 comunidades y organizaciones locales a crear soluciones a largo plazo para abordar el problema de las personas sin hogar. Los…

    Oct 30, 2024

    News What you need to know: The federal court of appeals today denied Huntington Beach’s NIMBY attempt to sue the state for enforcing state law that requires the city to build its fair share of housing. California will continue to hold the city accountable and ensure…

    MIL OSI USA News –

  • MIL-OSI USA: Ernst Continues River to River Tour, Meets with Veterans, Students, Small Business Owners

    US Senate News:

    Source: United States Senator Joni Ernst (R-IA)
    RED OAK, Iowa – This October, U.S. Senator Joni Ernst (R-Iowa) made multiple stops on her annual River to River Tour as part of her ongoing commitment to hear from Iowans in every corner of the state. She recognized outstanding small businesses, hosted town hall meetings, led roundtable discussions, and more.
    Click HERE to download photos from Ernst’s visits.
    The Fort Dodge Messenger highlighted Ernst’s stop in Calhoun County, where she presented her Small Business of the Week award to the family-owned-and-operated excavation business, Hildreth Company, Inc.
    Ernst’s stop at Greene County High School was featured by Raccoon Valley Radio and Greene County News Online. She talked to students about her path from Montgomery County to the United States Senate and answered their questions about working in government.
     
    In Polk County, KCCI attended Ernst’s roundtable with Shopify where she heard firsthand from small business owners and shared more on her work to address the challenges they face.
    Ernst enjoyed a beautiful walking tour in Emmet County to see the City of Estherville’s newly expanded trail system. The visit wascovered by Estherville News.
    The Sigourney News-Review covered Ernst’s Small Business of the Week award presentation in Keokuk County where she honored Barn Wired, a thriving home decor and coffee shop on the town square.
    The Hawkeye spotlighted Ernst’s roundtable with the Burlington Chamber of Commerce at her stop in Des Moines County, where they discussed economic development.
    In Dickinson and Harrison Counties, Ernst hosted town hall meetings to talk about supporting our veterans, passing a new Farm Bill, and securing our border.

    MIL OSI USA News –

  • MIL-OSI Security: Harrisburg Man Indicted for Armed Robbery

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Keith Demetrius Anderson, age 53, of Harrisburg, Pennsylvania, was indicted by a federal grand jury for Interference with Commerce by Robbery, and with Use of a Firearm during a Violent Crime.   

    According to United States Attorney Gerard M. Karam, on or about January 9, 2024, Anderson entered the Vape It Smoke Shop in Dauphin County, pointed a handgun at a store employee, directed the employee to provide the money from the drawer, and obtained approximately $300.

    The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Swatara Township Police Department, and the Harrisburg City Police Department. Assistant U.S. Attorney David C. Williams is prosecuting the case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

    Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

    # # #

    MIL Security OSI –

  • MIL-OSI: AI×Web3 Startup Jugemu.ai, Raising $1M, Launches Telegram Mini App Utilizing TON to Democratize Access to Generative AI

    Source: GlobeNewswire (MIL-OSI)

    Jugemu.ai has announced the launch of its Telegram Mini App, powered by the TON blockchain, aiming to accelerate its mission to “democratize access to generative AI.”

    Offering Free Access to 18 Latest LLM Models for Users in Regions Where Telegram is Popular, such as Africa and southeast Asia

    SAN FRANCISCO, Oct. 31, 2024 (GLOBE NEWSWIRE) — Jugemu.ai, the AI×Web3 startup that has raised $1M, released its Telegram Mini App version of the Jugemu AI application on October 31, 2024, leveraging the TON blockchain. Through this new app, the project aims to focus on regions where Telegram is widely adopted, such as Africa and southeast Asia, furthering its mission of democratizing access to generative AI.

    Developed in Response to Telegram’s Rapid Adoption and TON’s Ecosystem Growth

    Telegram users are growing rapidly, especially across Africa and southeast Asia, with the platform now exceeding 700 million monthly active users. The TON blockchain ecosystem is also seeing exponential growth, with unique wallet addresses surpassing 100 million and daily transaction volumes increasing twelvefold.

    Expanding the User Experience with the Telegram Mini App

    The Jugemu.ai Telegram Mini App is designed to democratize generative AI access. Users can seamlessly connect to Jugemu.app—a single subscription model providing unlimited access to the latest 18 LLMs (including ChatGPT) and allowing comparison of up to three models on a single screen—free of charge. Through intuitive interactions, users can enjoy a wide range of experiences, completing simple tasks, earning points, and engaging in “Tap to Earn” gamification elements.

    Main Features:

    1. Easy Access to Jugemu.app: Free access to 18 of the latest LLMs, including ChatGPT, with unlimited usage and a feature to compare up to three models on a single screen.
    2. Points through Tasks and Tap to Earn: Earn points by completing simple tasks or enjoying the gamified “Tap to Earn” experience.
    3. Seamless Integration with Telegram: Enjoy the AI app within Telegram without needing to leave the platform.
    4. TON Blockchain Utilization: Improved AI service experience with fast and low-cost transactions.
    5. Free Basic Access: Users can try Jugemu.app’s core features at no cost and experience the latest models.
    6. Multiple Payment Options: A variety of payment options, including Telegram Stars, will be introduced progressively.

    About Jugemu.ai
    Jugemu.ai is an AI×DePIN project that has already raised $1M, actively building an ecosystem where users and developers can engage through a pioneering token system. Currently, the project is raising an additional $1M.

    Telegram Mini App: t.me/JugemuAIBot
    Official X (Twitter): https://x.com/JugemuAI
    Official Website: https://www.jugemu.ai

    Press Contact:
    Name: Yuto Komatsu (Business / Marketing Manager)
    Email: yuto@jugemu.ai

    Disclaimer: This content is provided by Jugemu.ai. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fde2c71b-278c-4eee-a2c7-6b60e3a77867

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/49e3b82f-7a66-4e78-a1f7-9dc98081df1f

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9ae7ad57-1c64-4ac1-be5b-fcf4cd21c57e

    The MIL Network –

  • MIL-OSI Economics: A stable euro in a strong Europe | Karl Otto Pöhl Lecture to the Frankfurt Society for Trade, Industry and Science

    Source: Bundesbank

    Check against delivery.

    1 Introduction

    Ladies and gentlemen,

    Thank you very much for inviting me. It gives me great pleasure to be here with you today, and I am very honoured to be delivering the Karl Otto Pöhl Lecture.

    My congratulations on this series of lectures. Nine years ago, it premiered at the Bundesbank’s Regional Office in Hesse at the Taunusanlage in Frankfurt. Since then, various prominent people have presented their views of monetary union. Two of them will come up later on in my talk.

    But let’s stay for now with the lecture’s namesake: Karl Otto Pöhl. On 30 May 1990, he addressed the Frankfurt Society for Trade, Industry and Science as President of the Bundesbank, perhaps even standing right here at this lectern.[1]

    Times were turbulent back then: German monetary union had just been decided and needed to be implemented within the space of just a few weeks. At the same time, the Delors Report had outlined the transition to a European Economic and Monetary Union. Its first stage entered into force on 1 July 1990. Germany’s “Frankfurter Allgemeine Zeitung” newspaper wrote back then that the Bundesbank was facing two unprecedented historical challenges.

    As was his nature, Karl Otto Pöhl shied away from neither challenges nor plain speaking. He explained in no uncertain terms where the difficulties and pitfalls of the two monetary unions lay. At the same time, he left no doubt that he would strive tirelessly to ensure that they were a success. He concluded his speech back then with the words: “I am also confident that we will succeed.” This combination of plain speaking, drive and optimism were characteristic of Karl Otto Pöhl – and we could do with more of that today as we strive to overcome the current challenges.

    Karl Otto Pöhl would have turned 95 this year. We owe him a great deal. His work in the Delors Commission resonates to this day: It was under Mr Pöhl’s chairmanship that the Committee of Central Bank Governors drafted the Statute of the European Central Bank. Thus, the European Central Bank was modelled on the Bundesbank and created as an independent central bank that pursues price stability as its primary objective.

    However, Mr Pöhl was also well aware that these institutional pillars alone are not sufficient to permanently uphold a stable currency for Europe. A firm foundation is needed for the pillars to stand upon. This foundation consists of sound public finances, integrated markets and public confidence in the central bank. Then as now, it is important to strengthen this foundation so that the euro can withstand even a storm. I would now like to talk about what this means specifically in the here and now.

    2 Sound public finances in the euro area

    Let’s start with public finances – and a question: Why should they matter to us in the first place? The Eurosystem has the task of shaping monetary policy for the euro area. Fiscal policy is the Member States’ responsibility. Why then do central bankers talk so often about budget deficits, debt ratios and fiscal rules?[2]

    Our mandate provides the answer: Unsound public finances are a threat to price stability. If the debt burden grows steadily in size, people might lose confidence that the government can continue to shoulder this burden without “inflating it away”. Inflation expectations, and therefore inflation itself, could rise. And monetary policy would have to push back more vigorously to keep inflation under control. This, in turn, would come at a greater cost to the economy as a whole.

    That is why we must nip in the bud any impression that central banks are under pressure to set key interest rates lower or maintain higher bond holdings than actually warranted by monetary policy out of consideration for public finances. And that is exactly why we are such outspoken advocates of effective fiscal rules. They are intended as guardrails for sound public finances. Then monetary policy can safeguard price stability, and do so with as little cost to the aggregate economy as possible.

    Fiscal rules were included in the design of European monetary union from the outset. This was thanks, in part, to Karl Otto Pöhl. Even back in the days of the Delors Commission, he was already advocating binding budgetary rules. Mr Pöhl is also said to have been the first to introduce the idea of a 3% deficit rule.

    Since then, the rules have been amended on several occasions. The latest reform entered into force in April 2024. On paper, the earlier rules were not bad at all. In practice, however, they didn’t have the desired effect. One reason was that numerous exceptions and discretionary powers were used to excuse the many instances in which targets were missed. As a result, the majority of euro area countries have debt exceeding the reference value of 60% of GDP, with a few even well above the 100% mark.

    Against this background, the rules were redrawn. In the reform, a great deal of emphasis was placed on national ownership, the intention being to make Member States feel more bound to the thresholds. If this overhaul does indeed lead to the rules having more binding force, that would be very welcome.

    At the same time, however, the commitments must also be ambitious enough to significantly bring down high deficit and debt ratios. Given a number of vulnerabilities in the new framework, this is not a matter of course. For example, the country-specific limits are based on many assumptions, some of which extend far into the future. The spending limits are ultimately a matter of negotiation. And in practice, response times to undesirable developments will be very long.

    The first acid test is imminent. Spending limits for the first planning period are currently being agreed upon. The plans should stake out a path for high deficit and debt ratios to come down reliably. Responsibility for agreeing such plans lies with the Commission and the Council. In my opinion, Germany should act as a role model in this process. That means leading by example and committing to a path on which the rules are applied rigorously.

    Given high levels of debt in the euro area, it is important that the reformed rules work better than the old ones. As I said earlier, sound Member State finances are part of the foundation of a stable economic and monetary union.

    3 Integrated capital markets in Europe

    But they alone are not enough. In his speech back then to the Frankfurt Society for Trade, Industry and Science, Karl Otto Pöhl explained that the emerging economic and monetary union meant, first, an integration of the markets. That was the most important thing of all, he said.[3] In particular, he pointed to the increasing integration of money and capital markets following the lifting of many restrictions on the free movement of capital.

    There were, and still are, a number of reasons why it is important that European financial markets should be as integrated as possible. First, this helps ensure that monetary policy impulses have equal effect throughout the euro area. Second, in the event of an economic shock in one Member State, it makes sure that downstream costs are cushioned across the currency area. This contributes to the stability of the economy as a whole and the financial system. And third, in a deep, liquid capital market with a broad range of products, it is easier for enterprises to find the financing that suits them best. This is particularly true of start-ups and growth companies. They need access to a developed venture capital market. More private capital is also important to boost investment in the green and digital transformation of the European economy. This investment is urgently needed to strengthen the EU’s productivity and competitiveness.

    So you see, everything points to the benefits of a genuine pan-European capital market. And the EU set itself the goal of creating a capital markets union a decade ago. Unfortunately, the reality is still very different.

    Overall, progress on financial integration in the euro area is disappointing. This was the conclusion recently reached in a report by the European Central Bank. It states that “[b]oth price-based and quantity-based financial integration indicators have declined substantially over the past two years, with no sizeable increase since the inception of Economic and Monetary Union. Despite significant legislative efforts over the last decade, cross-border financial market activities and risk sharing have not grown …”.[4]

    This finding demonstrates just how big the task is. But there is also good news: We know fairly exactly where the pain points lie and can start there. Areas for action include, for example, a more vibrant securitisation market, integrated structures in financial supervision, harmonised securities legislation, and better-coordinated national insolvency and accounting rules.

    The new Commission now needs to place the pursuit of a European capital market at the very top of its list of priorities. We must make more rapid progress on this issue than we have done so far. Policymakers have mostly been united behind the abstract objectives. However, they have then too rarely found the strength to agree on concrete measures. A whole host of measures is needed to achieve the objectives. In some cases, they encroach deeply on national law. If real progress is to be made, all parties will have to pull together, i.e. the Commission, the Parliament and the Member States.

    Happily, the topic has gained fresh momentum this year. Be it the statements by the Eurogroup and the ECB Governing Council or the reports by Enrico Letta and Mario Draghi – they are all providing tailwinds. Now is the time to use them!

    The Eurosystem itself is also contributing to success in this area, particularly in terms of financial market infrastructure. For example, we are advocating for new technologies to make it easier to issue, trade and settle financial instruments. In my view, digitalisation opens up fresh opportunities to strengthen the efficiency of European financial markets, while also breaking down boundaries between national financial markets. We have far from exhausted the potential here!

    4 Public confidence in the central bank

    A Europe with integrated markets and sound public finances is a stronger Europe. It is a Europe with stronger resilience in the face of crises, even during turbulent times; a Europe that allows us to shape our future with self-assurance and on the back of our own efforts. Achieving this goes beyond the monetary policy foundation; it also involves the basis of citizens’ trust in the EU.

    The general public should be able to have as much confidence in the EU in future as they do now.[5] We, as the Eurosystem central banks, are also particularly dependent on the confidence and support of the general public.

    We act independently of politics. This independence has been deliberately granted to us for monetary policy so that we can fulfil our mandate free from political influence. We cannot simply take the public’s trust as a given. Only if the people have confidence in us will they accept the independence granted to us. This trust must be earned time and time again – by acting in accordance with our mandate and communicating transparently and comprehensibly with the public. In short: Our deeds and our words should go hand in hand.

    If people have confidence in central banks and their promise of stability, this also helps to anchor inflation expectations.[6] Well-anchored inflation expectations make it easier for the central bank to actually achieve its target. And meeting the inflation target, in turn, reinforces people’s confidence in the central bank. In this way, a virtuous circle is created – a cycle of positive events.

    The Eurosystem has repeatedly demonstrated that its promise of stability was not merely empty words. Perhaps you remember when the then ECB chief economist, Peter Praet, gave his Karl Otto Pöhl Lecture in 2017. At that time, the Eurosystem was struggling with an inflation rate that remained stubbornly below target. Mr Praet explained what the Governing Council had done to counter deflation risks that had emerged since 2014.

    Alternatively, think back to the economic environment back when Christine Lagarde spoke with you two years ago. In autumn 2022, euro area inflation had peaked, even reaching double digits for a time. Against this backdrop, the ECB President underscored the Governing Council’s determination to push inflation down to its 2% target.

    Here, too, words and deeds were aligned: by September 2023, we had raised key interest rates by a total of 450 basis points in ten steps – a move that bore fruit. The inflation rate has since fallen significantly. In September of this year, it was below 2% in the euro area – and that for the first time in over three years. Tomorrow we will get the first estimate for October. Inflation is also likely to have risen slightly again due to base effects in energy.

    Looking beyond the monthly ups and downs, it can be seen that price stability is no longer far off, but the last mile of the journey still needs to be traversed. In particular, services inflation, which has been relatively sluggish in past experience, remains high, standing at 3.9% at last count.

    The ECB Governing Council lowered key interest rates in October for the third time since June. This was appropriate in view of the somewhat more favourable inflation outlook shown by the data. Our data-dependent approach has proven its worth, particularly in view of the prevailing uncertainty. A new forecast will be available to the Governing Council in December, and that will show us whether we are still on track in terms of inflation developments. I advise you to remain cautious and not to rush into anything.

    Monetary policy needs to ensure that the inflation rate stabilises at 2% over the medium term. Adhering to our promise of stability is absolutely crucial if we are to maintain the confidence that the general public have in us, particularly in light of their inflation experiences in recent years. Accessible communication helps with this.[7]

    Karl Otto Pöhl had already come to this realisation, back in a time when central banks were, in some cases, famous (and infamous) for their secrecy. In an interview in 1988, he said: “I am thoroughly convinced that one of my main tasks is to clarify, to explain.”[8]

    Studies also suggest that people with a good financial education tend to trust central banks.[9] We therefore have a strong vested interest in improving the public’s understanding of money, currency and central banks. This is where the Bundesbank’s educational resources, such as lectures at schools, training courses for teachers, teaching materials, explanatory films and the Money Museum, come into play.

    The effects of financial education could extend even further: researchers from the European Central Bank have investigated how people with differing degrees of financial knowledge responded to the interest rate reversal in 2022 and 2023.[10] People with basic and advanced financial knowledge were surveyed over several months. It transpired that both groups expected significantly higher interest rates. However, there were differences between whether the surveyed groups deemed it better to take out loans or to make savings: those with higher financial literacy adjusted their assessments more quickly and to a considerably greater degree. The impact of the course of monetary policy on people’s behaviour therefore also depends on their financial knowledge. As a result, then, greater emphasis on financial literacy could help monetary policy measures to be translated into action on the part of the individual.

    A good general understanding of economics and finance has yet more advantages. For instance, such knowledge enables people to make better decisions about how to spend, save and invest their money. Studies show that financial knowledge has a positive impact on households’ return on investment.[11] Furthermore, it is more likely to prevent them from making expensive mistakes or falling victim to fraud.

    Financial education also affords opportunities for social advancement. It is therefore important to promote the acquisition of such knowledge in society at large. If knowledge about planning for retirement and wealth accumulation is only gleaned from one’s parental home, it is primarily those who are already in positions of privilege who will benefit. This can entrench and even exacerbate societal inequalities.[12]

    It is all the more worrying that, according to a survey carried out within the EU, an average of just over one in two individuals possesses basic financial knowledge.[13] Although Germany’s performance is above average, we still have plenty of room for improvement. The German government’s initiative aimed at strengthening financial education therefore comes as a welcome development. One component of this initiative, a national strategy for financial literacy, is currently under development. The OECD has provided valuable analyses and recommendations that create a sound basis for policy.[14]

    In any case, there is no lack of interest, especially among young people. According to an OECD study, 81% of 14 to 24-year-olds would like to learn more in school about options for retirement provision, 87% about how to handle their money and 73% about investment opportunities.[15] In addition, 78% of young people in Germany want economics to play a greater role in school.[16] A stronger focus on economic and financial topics in the school curriculum would fall on fertile ground, then.

    5 Conclusion

    The Eurosystem is well equipped to maintain stable prices in the euro area through independence and a clear mandate. But in stormy times especially, we need to be firmly anchored upon a strong foundation, comprising elements such as sound public finances, integrated markets and confidence in the central bank. This foundation must be maintained, and, where necessary, re-laid.

    First and foremost, we are, of course, required to say what we are doing and to do what we are saying. Central bankers would be well advised to adhere to this guiding principle. However, what is also clear is that we cannot guarantee the strength of the euro as a currency by acting alone; rather, politicians and society as a whole have their own parts to play. Pöhl’s contemporary Helmut Schlesinger, who recently turned 100 years old, coined the term “stability culture”.[17]

    I would like to close by citing a quote of Karl Otto Pöhl’s that holds as true today as it originally did over 40 years ago: “There is no law of nature stating that we are entitled to live on an “island of stability”. Such a privilege has to be earned through applying a durable stability policy.”[18] Indeed, this is what we in the Eurosystem are working towards on a day-to-day basis, and I am confident that we will succeed.

    Footnotes

    1. Pöhl, K. O., Rede zur deutschen und europäischen Währungsunion vor der Frankfurter Gesellschaft für Handel, Industrie und Wissenschaft, 30 May 1990. 
    2. Allard, J., M. Catenaro, J. Vidal and G. Wolswijk (2013), Central bank communication on fiscal policy, European Journal of Political Economy, Vol. 30.
    3. Pöhl, K. O., Rede zur deutschen und europäischen Währungsunion vor der Frankfurter Gesellschaft für Handel, Industrie und Wissenschaft, 30 May 1990.
    4. European Central Bank, Financial Integration and Structure in the Euro Area, June 2024.
    5. European Commission (2024), Standard Eurobarometer 101 – Spring 2024.
    6. Christelis, D., D. Georgarakos, T. Jappelli and M. van Rooij (2020), Trust in the Central Bank and Inflation Expectations, International Journal of Central Banking, Vol. 16, No 6; Mellina, S. and T. Schmidt (2018), The role of central bank knowledge and trust for the public’s inflation expectations, Deutsche Bundesbank Discussion Paper No 32/2018; Bursian, D. and E. Faia (2018), Trust in the monetary authority, Journal of Monetary Economics, Vol. 98. 
    7. Eickmeier, S. and L. Petersen (2024), Toward a holistic approach to central bank trust, Deutsche Bundesbank Discussion Paper No 27/2024.
    8. Die Macht des Wortes, interview with manager magazin on 1 June 1988.
    9. Niţoi, M. and M. Pochea (2024), Trust in the central bank, financial literacy, and personal beliefs, Journal of International Money and Finance, Vol. 143.
    10. Charalambakis, E., O. Kouvavas and P. Neves (2024), Rate hikes: How financial knowledge affects people’s reactions, The ECB Blog, 15 August 2024. 
    11. Kaiser, T. and A. Lusardi (2024), Financial literacy and financial education: An overview, CEPR Discussion Paper No 19185; Deuflhard, F., D. Georgarakos and R. Inderst (2019), Financial literacy and savings account returns, Journal of the European Economic Association, Vol. 17, No 1.
    12. Lusardi, A., P.-C. Michaud and O. S. Mitchell (2017): Optimal Financial Knowledge and Wealth Inequality, Journal of Political Economy, Vol. 125(2).
    13. Demertzis, M., L. L. Moffat, A. Lusardi and J. M. López (2024), The state of financial knowledge in the European Union, Policy Brief 04/2024, Bruegel.
    14. OECD (2024), Strengthening Financial Literacy in Germany: Proposal for a National Financial Literacy Strategy, OECD Publishing, Paris, https://doi.org/10.1787/81e95597-en.
    15. OECD (2024), Financial literacy in Germany: Supporting financial resilience and well-being, OECD Business and Finance Policy Papers, https://www.oecd.org/en/publications/financial-literacy-in-germany_c7a28393-en.html.
    16. Bertelsmann Stiftung (2024), Factsheet: Wirtschaftspolitische Interessen junger Menschen in Deutschland.
    17. Schlesinger, H., Eine europäische Währung muß genauso stabil sein wie die D-Mark, Handelsblatt, 31 December 1991.
    18. Welt am Sonntag, 12 April 1981.

    MIL OSI Economics –

  • MIL-OSI USA: SBA Disaster Assistance Available to Havasupai Tribe Private Nonprofit Organizations

    Source: United States Small Business Administration

    “As communities across the Southeast continue to recover and rebuild after Hurricanes Helene and Milton, the SBA remains focused on its mission to provide support to small businesses to help stabilize local economies, even in the face of diminished disaster funding,” said Administrator Isabel Casillas Guzman. “If your business has sustained physical damage, or you’ve lost inventory, equipment or revenues, the SBA will help you navigate the resources available and work with you at our recovery centers or with our customer service specialists in person and online so you can fully submit your disaster loan application and be ready to receive financial relief as soon as funds are replenished.”

    SACRAMENTO, Calif. – Low-interest federal disaster loans are now available to certain private nonprofit organizations in Havasupai Tribe following President Biden’s federal disaster declaration for Public Assistance as a result of flooding that occurred Aug. 22-23, announced Administrator Isabel Casillas Guzman of the U.S. Small Business Administration. Private nonprofits that provide essential services of a governmental nature are eligible for assistance.

    “Private nonprofit organizations should contact FEMA Public Assistance Branch Chief Michael Gayrard by calling (510) 627-7761 or emailing michael.gayrard@fema.dhs.gov to obtain information about applicant briefings,” said Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. “At the briefings, private nonprofit representatives will need to provide information about their organization,” continued Sánchez. The Federal Emergency Management Agency will use that information to determine if the private nonprofit provides an “essential governmental service” and is a “critical facility” as defined by law. FEMA may provide the private nonprofit with a Public Assistance grant for their eligible costs. SBA encourages all private nonprofit organizations to apply with SBA for disaster loan assistance.

    SBA may lend private nonprofits up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets.

    For certain private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help with meeting working capital needs caused by the disaster. Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the nonprofit suffered any property damage.

    “SBA’s disaster loan program offers an important advantage–the chance to incorporate measures that can reduce the risk of future damage,” Sánchez added. “Work with contractors and mitigation professionals to strengthen your property and take advantage of the opportunity to request additional SBA disaster loan funds for these proactive improvements.”

    The interest rate is 3.25 percent with terms up to 30 years. The deadline to apply for property damage is Dec. 24, 2024. The deadline to apply for economic injury is July 25, 2025.

    Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.

    On October 15, 2024, it was announced that funds for the Disaster Loan Program have been fully expended. While no new loans can be issued until Congress appropriates additional funding, we remain committed to supporting disaster survivors. Applications will continue to be accepted and processed to ensure individuals and businesses are prepared to receive assistance once funding becomes available.

    Applicants are encouraged to submit their loan applications promptly for review in anticipation of future funding.

    Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    ###

    About the U.S. Small Business Administration
    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, 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: Silvercrest Asset Management Group Inc. Reports Q3 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) — Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the results of its operations for the quarter ended September 30, 2024.

    Business Update

    Supportive markets and improving economic conditions helped Silvercrest’s assets under management (“AUM”) growth during the third quarter, pointing to improved top-line revenue. The firm also saw improved business development results and will report a robust pipeline of new business opportunities. A persistent trend of the market’s recovery since 2022 has been the narrow leadership of Large Cap Growth equities. We noted during our second quarter earnings call that, despite progress in the market, Large Cap Value and Small Cap stocks, had actually declined during that quarter. We have been pleased to see broader company market participation throughout the third quarter and an increase in equities across the market cap spectrum, which benefits Silvercrest’s diversified wealth management business as well as our exposure to the small cap institutional business. The increases during the quarter bode well for future revenue. We are optimistic about securing significant organic net flows over the next two quarters.

    Silvercrest’s discretionary AUM increased $1.0 billion during the quarter to $22.6 billion, primarily due to rising markets. This net increase in discretionary AUM – which drives revenue – represents a 5% increase since the second quarter and a year-over-year increase of 10% since the third quarter of 2023. New client accounts and relationships increased during the quarter, led by new Silvercrest Small Cap Opportunity mandates. While we report discretionary outflows during the third quarter, the outflows were revenue neutral to the firm. Overall, total asset flows and market increases were a net positive for the firm and should drive an increase in fourth-quarter revenue. Total AUM at the end of the third quarter was $35.1 billion. Total AUM increased year-over-year from the third quarter of 2023, up 13%. Despite these increases, Silvercrest has been investing in the future growth of the business, which has resulted in higher total compensation and which we have adjusted for on a quarterly basis. As a result, while top-line revenue has increased, most metrics of the business are down due to these higher expenses.

    Silvercrest’s pipeline of new institutional business opportunities increased during the third quarter by 20% and now stands at $1.2 billion. Importantly, the firm’s pipeline does not yet include potential mandates for our new Global Equity strategy which has a high capacity for significant inflows. Over the past two quarters, we have worked to build the infrastructure to support the team and strategy while undertaking business development. We are optimistic about near-term positive AUM flows and resulting revenue increases to result from the pipeline.

    I have consistently mentioned that Silvercrest has never had more business opportunities underway. We have made and will make investments to drive future growth in the business. We expect to make more hires to complement our outstanding professional team and to drive future growth. Silvercrest continues to accrue a higher interim percentage of revenue for compensation for this purpose, and, as mentioned, we will continue to adjust compensation levels to match these important investments in the business and will keep you informed of our plans and the progress of these investments.

    We continue to see substantial new opportunities globally for a firm with our high-quality capabilities, coupled with superior client service. 

    On October 30, 2024, the Company’s Board of Directors approved a quarterly dividend of $0.20 per share of Class A common stock.  The dividend will be paid on or about December 20, 2024 to stockholders of record as of the close of business on December 13, 2024.

    Third Quarter 2024 Highlights

    • Total Assets Under Management (“AUM”) of $35.1 billion, inclusive of discretionary AUM of $22.6 billion and non-discretionary AUM of $12.5 billion at September 30, 2024.
    • Revenue of $30.4 million.
    • U.S. Generally Accepted Accounting Principles (“GAAP”) consolidated net income and net income attributable to Silvercrest of $3.7 million and $2.3 million, respectively. 
    • Basic and diluted net income per share of $0.24.
    • Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)1 of $6.3 million.
    • Adjusted net income1 of $3.8 million.
    • Adjusted basic and diluted earnings per share1, 2 of $0.27 and $0.26, respectively.

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

        For the Three Months
    Ended September 30,    		     For the Nine Months
    Ended September 30,    		  
    (in thousands except as indicated)   2024     2023     2024     2023  
    Revenue   $ 30,424     $ 29,704     $ 91,689     $ 88,868  
    Income before other income (expense), net   $ 4,457     $ 6,519     $ 15,670     $ 19,788  
    Net income   $ 3,730     $ 5,380     $ 13,025     $ 15,825  
    Net income margin     12.3 %     18.1 %     14.2 %     17.8 %
    Net income attributable to Silvercrest   $ 2,252     $ 3,216     $ 7,917     $ 9,505  
    Net income per basic share   $ 0.24     $ 0.34     $ 0.83     $ 1.01  
    Net income per diluted share   $ 0.24     $ 0.34     $ 0.83     $ 1.00  
    Adjusted EBITDA1   $ 6,346     $ 8,000     $ 21,031     $ 24,297  
    Adjusted EBITDA Margin1     20.9 %     26.9 %     22.9 %     27.3 %
    Adjusted net income1   $ 3,801     $ 5,136     $ 12,921     $ 15,055  
    Adjusted basic earnings per share1, 2   $ 0.27     $ 0.37     $ 0.93     $ 1.08  
    Adjusted diluted earnings per share1, 2   $ 0.26     $ 0.36     $ 0.89     $ 1.05  
    Assets under management at period end (billions)   $ 35.1     $ 31.2     $ 35.1     $ 31.2  
    Average assets under management (billions)3   $ 34.2     $ 31.6     $ 34.3     $ 30.1  

    _________________

    1 Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in Exhibits 2 and 3.
    2 Adjusted basic and diluted earnings per share measures for the three and nine months ended September 30, 2024 are based on the number of shares of Class A common stock and Class B common stock outstanding as of September 30, 2024. Adjusted diluted earnings per share are further based on the addition of unvested restricted stock units, and non-qualified stock options to the extent dilutive at the end of the reporting period.
    3 We have computed average AUM by averaging AUM at the beginning of the applicable period and AUM at the end of the applicable period.
       

    AUM at $35.1 Billion

    Silvercrest’s discretionary assets under management increased by $2.1 billion, or 10.2%, to $22.6 billion at September 30, 2024, from $20.5 billion at September 30, 2023. The increase was attributable to market appreciation of $4.1 billion partially offset by net client outflows of $2.0 billion. Silvercrest’s total AUM increased by $3.9 billion, or 12.5%, to $35.1 billion at September 30, 2024, from $31.2 billion at September 30, 2023. The increase was attributable to market appreciation of $5.7 billion partially offset by net client outflows of $1.8 billion. 

    Silvercrest’s discretionary assets under management increased by $1.0 billion, or 4.6%, to $22.6 billion at September 30, 2024, from $21.6 billion at June 30, 2024. The increase was attributable to market appreciation of $1.3 billion and net client outflows of $0.3 billion. Silvercrest’s total AUM increased by $1.7 billion, or 5.1%, to $35.1 billion at September 30, 2024, from $33.4 billion at June 30, 2024. The increase was attributable to market appreciation of $1.9 billion and net client outflows of $0.2 billion.

    Third Quarter 2024 vs. Third Quarter 2023

    Revenue increased by $0.7 million, or 2.4%, to $30.4 million for the three months ended September 30, 2024, from $29.7 million for the three months ended September 30, 2023. This increase was driven by market appreciation partially offset by net client outflows.

    Total expenses increased by $2.8 million, or 12.0%, to $26.0 million for the three months ended September 30, 2024, from $23.2 million for the three months ended September 30, 2023. Compensation and benefits expense increased by $1.9 million, or 11.4%, to $18.6 million for the three months ended September 30, 2024, from $16.7 million for the three months ended September 30, 2023. The increase was primarily attributable to increases in the accrual for bonuses of $0.7 million, severance expense of $0.2 million, equity-based compensation of $0.2 million and salaries and benefits of $0.8 million primarily as a result of merit-based increases.  General and administrative expenses increased by $0.9 million, or 13.4%, to $7.4 million for the three months ended September 30, 2024, from $6.5 million for the three months ended September 30, 2023. This was primarily attributable to increases in occupancy and related costs of $0.1 million, professional fees of $0.2 million, portfolio and systems expense of $0.3 million and trade errors of $0.3 million.

    Consolidated net income was $3.7 million or 12.3% of revenue for the three months ended September 30, 2024, as compared to consolidated net income of $5.4 million or 18.1% of revenue for the same period in the prior year. Net income attributable to Silvercrest was $2.3 million, or $0.24 per basic share and diluted share for the three months ended September 30, 2024. Our Adjusted Net Income1 was $3.8 million, or $0.27 per adjusted basic share1, 2 and $0.26 per adjusted diluted share1, 2 for the three months ended September 30, 2024.

    Adjusted EBITDA1 was $6.3 million, or 20.9% of revenue for the three months ended September 30, 2024, as compared to $8.0 million or 26.9% of revenue for the same period in the prior year.

    Nine Months Ended September 30, 2024 vs. Nine Months Ended September 30, 2023

    Revenue increased by $2.8 million, or 3.2%, to $91.7 million for the nine months ended September 30, 2024, from $88.9 million for the nine months ended September 30, 2023. This increase was driven by market appreciation partially offset by net client outflows.

    Total expenses increased by $6.9 million, or 10.0%, to $76.0 million for the nine months ended September 30, 2024, from $69.1 million for the nine months ended September 30, 2023. Compensation and benefits expense increased by $4.8 million, or 9.6%, to $54.8 million for the nine months ended September 30, 2024, from $50.0 million for the nine months ended September 30, 2023. The increase was primarily attributable to increases in the accrual for bonuses of $3.0 million, severance expense of $0.2 million, equity-based compensation of $0.3 million and salaries and benefits of $1.3 million primarily as a result of merit-based increases.  General and administrative expenses increased by $2.1 million, or 11.1%, to $21.3 million for the nine months ended September 30, 2024, from $19.1 million for the nine months ended September 30, 2023. This was primarily attributable to increases in travel and entertainment expenses of $0.2 million, occupancy and related costs of $0.2 million, professional fees of $0.6 million, portfolio and systems expenses of $0.4 million, recruiting expenses of $0.3 million, trade errors of $0.3 million and depreciation and amortization expense of $0.1 million.

    Consolidated net income was $13.0 million or 14.2% of revenue for the nine months ended September 30, 2024, as compared to consolidated net income of $15.8 million or 17.8% of revenue for the same period in the prior year.  Net income attributable to Silvercrest was $7.9 million, or $0.83 per basic share and diluted share for the nine months ended September 30, 2024.  Our Adjusted Net Income1 was $12.9 million, or $0.93 per adjusted basic share1, 2 and $0.89 per adjusted diluted share1, 2 for the nine months ended September 30, 2024.

    Adjusted EBITDA1 was $21.0 million or 22.9% of revenue for the nine months ended September 30, 2024, as compared to $24.3 million or 27.3% of revenue for the same period in the prior year.

    Liquidity and Capital Resources

    Cash and cash equivalents were $58.1 million at September 30, 2024, compared to $70.3 million at December 31, 2023.  As of September 30, 2024, there was nothing outstanding under our term loan or under our revolving credit facility with City National Bank. 

    Silvercrest’s total equity was $84.6 million at September 30, 2024.  We had 9,503,410 shares of Class A common stock outstanding and 4,406,295 shares of Class B common stock outstanding at September 30, 2024.

    Non-GAAP Financial Measures

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

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

    Conference Call

    The Company will host a conference call on November 1, 2024, at 8:30 am (Eastern Time) to discuss these results. Hosting the call will be Richard R. Hough III, Chief Executive Officer, and President and Scott A. Gerard, Chief Financial Officer. Listeners may access the call by dialing 1-844-836-8743 or for international listeners the call may be accessed by dialing 1-412-317-5723.  A live, listen-only webcast will also be available via the investor relations section of www.silvercrestgroup.com.  An archived replay of the call will be available after the completion of the live call on the Investor Relations page of the Silvercrest website at http://ir.silvercrestgroup.com/.

    Forward-Looking Statements and Other Disclosures

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

    About Silvercrest

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

    Silvercrest Asset Management Group Inc.

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

    Exhibit 1

    Silvercrest Asset Management Group Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited and in thousands, except share and per share amounts or as noted)
     
      Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		  
      2024     2023     2024     2023  
                           
    Revenue                      
    Management and advisory fees $ 29,380     $ 28,425     $ 88,445     $ 85,445  
    Family office services   1,044       1,279       3,244       3,423  
    Total revenue   30,424       29,704       91,689       88,868  
    Expenses                      
    Compensation and benefits   18,598       16,691       54,760       49,945  
    General and administrative   7,369       6,494       21,259       19,135  
    Total expenses   25,967       23,185       76,019       69,080  
    Income before other (expense) income, net   4,457       6,519       15,670       19,788  
    Other (expense) income, net                      
    Other (expense) income, net   10       (37 )     25       31  
    Interest income   374       376       1,010       421  
    Interest expense   (15 )     (86 )     (95 )     (314 )
    Total other (expense) income, net   369       253       940       138  
    Income before provision for income taxes   4,826       6,772       16,610       19,926  
    Provision for income taxes   (1,096 )     (1,392 )     (3,585 )     (4,101 )
    Net income   3,730       5,380       13,025       15,825  
    Less: net income attributable to non-controlling interests   (1,478 )     (2,164 )     (5,108 )     (6,320 )
    Net income attributable to Silvercrest $ 2,252     $ 3,216     $ 7,917     $ 9,505  
    Net income per share:                      
    Basic $ 0.24     $ 0.34     $ 0.83     $ 1.01  
    Diluted $ 0.24     $ 0.34     $ 0.83     $ 1.00  
    Weighted average shares outstanding:                      
    Basic   9,541,407       9,354,747       9,510,495       9,452,576  
    Diluted   9,579,172       9,378,479       9,547,659       9,478,090  
                                   

    Exhibit 2

    Silvercrest Asset Management Group Inc.
    Reconciliation of GAAP to non-GAAP (“Adjusted”) Adjusted EBITDA Measure
    (Unaudited and in thousands, except share and per share amounts or as noted)
     
    Adjusted EBITDA Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		  
      2024     2023     2024     2023  
    Reconciliation of non-GAAP financial measure:                      
    Net income $ 3,730     $ 5,380     $ 13,025     $ 15,825  
    Provision for income taxes   1,096       1,392       3,585       4,101  
    Delaware Franchise Tax   50       50       150       150  
    Interest expense   15       86       95       314  
    Interest income   (374 )     (376 )     (1,010 )     (421 )
    Depreciation and amortization   1,034       996       3,111       3,012  
    Equity-based compensation   535       353       1,374       1,047  
    Other adjustments (A)   260       119       701       269  
    Adjusted EBITDA $ 6,346     $ 8,000     $ 21,031     $ 24,297  
    Adjusted EBITDA Margin   20.9 %     26.9 %     22.9 %     27.3 %
                                   

    (A)  Other adjustments consist of the following:

      Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		  
      2024     2023     2024     2023  
    Acquisition costs (a) $ —     $ —     $ —     $ 5  
    Severance   193       —       253       19  
    Other (b)   67       119       448       245  
    Total other adjustments $ 260     $ 119     $ 701     $ 269  
                                   
    (a) For the nine months ended September 30, 2023, represents professional fees of $5 related to the acquisition of Cortina.
       
    (b) For the three months ended September30, 2024, represents an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, data conversion costs of $14 and software implementation costs of $5.  For the nine months ended September 30, 2024, represents a fair value adjustment to the Neosho contingent purchase price consideration of $12, an ASC 842 rent adjustment of $144 related to the amortization of property lease incentives, sign on bonuses paid to certain employees of $188, professional fees of $26 related to a transfer pricing project, legal fees of $46, data conversion costs of $14 and software implementation costs of $18.  For the three months ended September 30, 2023, represents an adjustment to the fair value of the tax receivable agreement of $40, an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, $23 related to moving costs and software implementation costs of $8.  For the nine months ended September 30, 2023, represents an adjustment to the fair value of the tax receivable agreement of $40, an ASC 842 rent adjustment of $144 related to the amortization of property lease incentives, $35 related to moving costs, software implementation costs of $28 and a fair value adjustment to the Cortina contingent purchase price consideration of ($2). 

    Exhibit 3

    Silvercrest Asset Management Group Inc.
    Reconciliation of GAAP to non-GAAP (“Adjusted”)
    Adjusted Net Income and Adjusted Earnings Per Share Measures
    (Unaudited and in thousands, except per share amounts or as noted)
     
    Adjusted Net Income and Adjusted Earnings Per Share Three Months Ended
    September 30,    		     Nine Months Ended
    September 30,    		  
      2024     2023     2024     2023  
    Reconciliation of non-GAAP financial measure:                      
    Net income $ 3,730     $ 5,380     $ 13,025     $ 15,825  
    Consolidated GAAP Provision for income taxes   1,096       1,392       3,585       4,101  
    Delaware Franchise Tax   50       50       150       150  
    Other adjustments (A)   260       119       701       269  
    Adjusted earnings before provision for income taxes   5,136       6,941       17,461       20,345  
    Adjusted provision for income taxes:                      
    Adjusted provision for income taxes (26% assumed tax rate)   (1,335 )     (1,805 )     (4,540 )     (5,290 )
                           
    Adjusted net income $ 3,801     $ 5,136     $ 12,921     $ 15,055  
                           
    GAAP net income per share (B):                      
    Basic $ 0.24     $ 0.34     $ 0.83     $ 1.01  
    Diluted $ 0.24     $ 0.34     $ 0.83     $ 1.00  
                           
    Adjusted earnings per share/unit (B):                      
    Basic $ 0.27     $ 0.37     $ 0.93     $ 1.08  
    Diluted $ 0.26     $ 0.36     $ 0.89     $ 1.05  
                           
    Shares/units outstanding:                      
    Basic Class A shares outstanding   9,503       9,342       9,503       9,342  
    Basic Class B shares/units outstanding   4,406       4,545       4,406       4,545  
    Total basic shares/units outstanding   13,909       13,887       13,909       13,887  
                           
    Diluted Class A shares outstanding (C)   9,541       9,366       9,541       9,366  
    Diluted Class B shares/units outstanding (D)   5,001       4,956       5,001       4,956  
    Total diluted shares/units outstanding   14,542       14,322       14,542       14,322  
                                   
    (A) See A in Exhibit 2.
       
    (B) GAAP earnings per share is strictly attributable to Class A stockholders.  Adjusted earnings per share takes into account earnings attributable to both Class A and Class B stockholders. 
       
    (C) Includes 37,109 and 23,732 unvested restricted stock units at September 30, 2024 and 2023, respectively.
       
    (D) Includes 228,117 and 264,037 unvested restricted stock units at September 30, 2024 and 2023, respectively, and 366,293 and 147,506 unvested non-qualified options at September 30, 2024 and 2023, respectively.

    Exhibit 4

    Silvercrest Asset Management Group Inc.
    Condensed Consolidated Statements of Financial Condition
    (Unaudited and in thousands)
     
     
      September 30,
    2024    		     December 31,
    2023    		  
    Assets          
    Cash and cash equivalents $ 58,103     $ 70,301  
    Investments   219       219  
    Receivables, net   12,833       9,526  
    Due from Silvercrest Funds   860       558  
    Furniture, equipment and leasehold improvements, net   7,458       7,422  
    Goodwill   63,675       63,675  
    Operating lease assets   16,290       19,612  
    Finance lease assets   237       330  
    Intangible assets, net   17,216       18,933  
    Deferred tax asset—tax receivable agreement   3,749       5,034  
    Prepaid expenses and other assets   3,530       3,964  
    Total assets $ 184,170     $ 199,574  
    Liabilities and Equity          
    Accounts payable and accrued expenses $ 1,718     $ 1,990  
    Accrued compensation   27,238       37,371  
    Borrowings under credit facility   —       2,719  
    Operating lease liabilities   22,668       26,277  
    Finance lease liabilities   245       336  
    Deferred tax and other liabilities   9,423       9,071  
    Total liabilities   61,292       77,764  
    Commitments and Contingencies          
    Equity          
    Preferred Stock, par value $0.01, 10,000,000 shares authorized; none issued and outstanding   —       —  
    Class A Common Stock, par value $0.01, 50,000,000 shares authorized; 10,394,542 and 9,503,410 issued and outstanding, respectively, as of September 30, 2024; 10,287,452 and 9,478,997 issued and outstanding, respectively, as of December 31, 2023   104       103  
    Class B Common Stock, par value $0.01, 25,000,000 shares authorized; 4,406,295 and 4,431,105 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively   43       43  
    Additional Paid-In Capital   56,643       55,809  
    Treasury Stock, at cost, 891,132 shares as of September 30, 2024 and 808,455 as of December 31, 2023   (16,421 )     (15,057 )
    Accumulated other comprehensive income (loss)   (19 )     (12 )
    Retained earnings   44,227       41,851  
    Total Silvercrest Asset Management Group Inc.’s equity   84,577       82,737  
    Non-controlling interests   38,301       39,073  
    Total equity   122,878       121,810  
    Total liabilities and equity $ 184,170     $ 199,574  
                   

    Exhibit 5

    Silvercrest Asset Management Group Inc.
    Total Assets Under Management
    (Unaudited and in billions)
     
    Total Assets Under Management:
     
      Three Months Ended
    September 30,    		     % Change from
    September 30,    		  
      2024     2023     2023  
    Beginning assets under management $ 33.4     $ 31.9       4.7 %
                     
    Gross client inflows   1.1       0.6       83.3 %
    Gross client outflows   (1.3 )     (0.8 )     62.5 %
    Net client flows   (0.2 )     (0.2 )     0.0 %
                     
    Market appreciation/(depreciation)   1.9       (0.5 )   NM  
    Ending assets under management $ 35.1     $ 31.2       12.5 %
                           
      Nine Months Ended
    September 30,    		     % Change from
    September 30,    		  
      2024     2023     2023  
    Beginning assets under management $ 33.3     $ 28.9       15.2 %
                     
    Gross client inflows   2.9       4.5       -35.6 %
    Gross client outflows   (4.4 )     (3.5 )     25.7 %
    Net client flows   (1.5 )     1.0       -250.0 %
                     
    Market appreciation   3.3       1.3       153.8 %
    Ending assets under management $ 35.1     $ 31.2       12.5 %
     

    NM = Not Meaningful

    Exhibit 6

    Silvercrest Asset Management Group Inc.
    Discretionary Assets Under Management
    (Unaudited and in billions)
     
    Discretionary Assets Under Management:
     
      Three Months Ended
    September 30,    		     % Change from
    September 30,    		  
      2024     2023     2023  
    Beginning assets under management $ 21.6     $ 21.5       0.5 %
                     
    Gross client inflows   0.8       0.4       100.0 %
    Gross client outflows   (1.1 )     (0.6 )     83.3 %
    Net client flows   (0.3 )     (0.2 )     50.0 %
                     
    Market appreciation/(depreciation)   1.3       (0.8 )     -262.5 %
    Ending assets under management $ 22.6     $ 20.5       10.2 %
     
      Nine Months Ended
    September 30,    		     % Change from
    September 30,    		  
      2024     2023     2023  
    Beginning assets under management $ 21.9     $ 20.9       4.8 %
                     
    Gross client inflows   2.1       2.3       -8.7 %
    Gross client outflows   (3.7 )     (3.0 )     23.3 %
    Net client flows   (1.6 )     (0.7 )     128.6 %
                     
    Market appreciation   2.3       0.3     NM  
    Ending assets under management $ 22.6     $ 20.5       10.2 %
     

    NM = Not Meaningful

    Exhibit 7

    Silvercrest Asset Management Group Inc.
    Non-Discretionary Assets Under Management
    (Unaudited and in billions)
     
    Non-Discretionary Assets Under Management:
     
      Three Months Ended
    September 30,    		     % Change from
    September 30,    		  
      2024     2023     2023  
    Beginning assets under management $ 11.8     $ 10.4       13.5 %
                     
    Gross client inflows   0.3       0.2       50.0 %
    Gross client outflows   (0.2 )     (0.2 )     0.0 %
    Net client flows   0.1       —        
                     
    Market appreciation   0.6       0.3       100.0 %
    Ending assets under management $ 12.5     $ 10.7       16.8 %
                           
      Nine Months Ended
    September 30,    		     % Change from
    September 30,    		  
      2024     2023     2023  
    Beginning assets under management $ 11.4     $ 8.0       42.5 %
                     
    Gross client inflows   0.8       2.2       -63.6 %
    Gross client outflows   (0.7 )     (0.5 )     40.0 %
    Net client flows   0.1       1.7       -94.1 %
                     
    Market appreciation   1.0       1.0       0.0 %
    Ending assets under management $ 12.5     $ 10.7       16.8 %
                           

    Exhibit 8

    Silvercrest Asset Management Group Inc.
    Assets Under Management
    (Unaudited and in billions)
     
      Three Months Ended
    September 30,    		  
      2024     2023  
    Total AUM as of June 30, $ 33.430     $ 31.924  
    Discretionary AUM:          
    Total Discretionary AUM as of June 30, $ 21.646     $ 21.500  
    New client accounts/assets (1)   0.076       0.054  
    Closed accounts (2)   (0.042 )     (0.015 )
    Net cash inflow/(outflow) (3)   (0.308 )     (0.286 )
    Non-discretionary to Discretionary AUM (4)   (0.004 )     0.008  
    Market (depreciation)/appreciation   1.271       (0.799 )
    Change to Discretionary AUM   0.993       (1.038 )
    Total Discretionary AUM at September 30,   22.639       20.462  
    Change to Non-Discretionary AUM (5)   0.665       0.301  
    Total AUM as of September 30, $ 35.088     $ 31.187  
                   
      Nine Months Ended
    September 30,    		  
      2024     2023  
    Total AUM as of January 1, $ 33.281     $ 28.905  
    Discretionary AUM:          
    Total Discretionary AUM as of January 1, $ 21.885     $ 20.851  
    New client accounts/assets (1)   0.179       0.151  
    Closed accounts (2)   (0.516 )     (0.100 )
    Net cash inflow/(outflow) (3)   (1.256 )     (0.793 )
    Non-discretionary to Discretionary AUM (4)   (0.006 )     (0.030 )
    Market appreciation   2.353       0.383  
    Change to Discretionary AUM   0.754       (0.389 )
    Total Discretionary AUM at September 30,   22.639       20.462  
    Change to Non-Discretionary AUM (5)   1.053       2.671  
    Total AUM as of September 30, $ 35.088     $ 31.187  
                   
    (1) Represents new account flows from both new and existing client relationships.
    (2) Represents closed accounts of existing client relationships and those that terminated.
    (3) Represents periodic cash flows related to existing accounts.
    (4) Represents client assets that converted to Discretionary AUM from Non-Discretionary AUM.
    (5) Represents the net change to Non-Discretionary AUM.

    Exhibit 9

    Silvercrest Asset Management Group Inc.
    Equity Investment Strategy Composite Performance 1, 2
    As of September 30, 2024
    (Unaudited)
     
    PROPRIETARY EQUITY PERFORMANCE 1, 2 ANNUALIZED PERFORMANCE
      INCEPTION   1-YEAR   3-YEAR   5-YEAR   7-YEAR   INCEPTION
    Large Cap Value Composite 4/1/02   31.1   9.6   12.5   12.0   9.9
    Russell 1000 Value Index     27.8   9.0   10.7   9.5   8.1
                           
    Small Cap Value Composite 4/1/02   26.7   7.3   10.6   7.8   10.5
    Russell 2000 Value Index     25.9   3.8   9.3   6.6   8.0
                           
    Smid Cap Value Composite 10/1/05   27.9   5.1   9.1   7.5   9.6
    Russell 2500 Value Index     26.6   6.1   10.0   7.8   7.9
                           
    Multi Cap Value Composite 7/1/02   27.6   5.7   10.2   9.2   9.7
    Russell 3000 Value Index     27.6   8.7   10.6   9.3   8.6
                           
    Equity Income Composite 12/1/03   24.8   7.4   8.5   8.8   11.0
    Russell 3000 Value Index     27.6   8.7   10.6   9.3   8.7
                           
    Focused Value Composite 9/1/04   23.6   1.9   6.4   6.1   9.4
    Russell 3000 Value Index     27.6   8.7   10.6   9.3   8.5
                           
    Small Cap Opportunity Composite 7/1/04   25.9   4.7   12.0   10.8   11.1
    Russell 2000 Index     26.8   1.8   9.4   7.4   8.2
                           
    Small Cap Growth Composite 7/1/04   18.9   -5.2   12.0   10.9   10.4
    Russell 2000 Growth Index     27.7   -0.4   8.8   7.6   8.5
                           
    Smid Cap Growth Composite 1/1/06   24.3   -5.8   13.0   12.9   10.7
    Russell 2500 Growth Index     25.2   -0.7   9.7   9.4   9.5
                           
    1 Returns are based upon a time weighted rate of return of various fully discretionary equity portfolios with similar investment objectives, strategies and policies and other relevant criteria managed by Silvercrest Asset Management Group LLC (“SAMG LLC”), a subsidiary of Silvercrest. Performance results are gross of fees and net of commission charges. An investor’s actual return will be reduced by the advisory fees and any other expenses it may incur in the management of the investment advisory account. SAMG LLC’s standard advisory fees are described in Part 2 of its Form ADV. Actual fees and expenses will vary depending on a variety of factors, including the size of a particular account. Returns greater than one year are shown as annualized compounded returns and include gains and accrued income and reinvestment of distributions. Past performance is no guarantee of future results. This piece contains no recommendations to buy or sell securities or a solicitation of an offer to buy or sell securities or investment services or adopt any investment position. This piece is not intended to constitute investment advice and is based upon conditions in place during the period noted. Market and economic views are subject to change without notice and may be untimely when presented here. Readers are advised not to infer or assume that any securities, sectors or markets described were or will be profitable. SAMG LLC is an independent investment advisory and financial services firm created to meet the investment and administrative needs of individuals with substantial assets and select institutional investors. SAMG LLC claims compliance with the Global Investment Performance Standards (GIPS®).
       
    2 The market indices used to compare to the performance of Silvercrest’s strategies are as follows:
       
      The Russell 1000 Index is a capitalization-weighted, unmanaged index that measures the 1000 largest companies in the Russell 3000. The Russell 1000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
       
      The Russell 2000 Index is a capitalization-weighted, unmanaged index that measures the 2000 smallest companies in the Russell 3000. The Russell 2000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
       
      The Russell 2500 Index is a capitalization-weighted, unmanaged index that measures the 2500 smallest companies in the Russell 3000. The Russell 2500 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
       
      The Russell 3000 Value Index is a capitalization-weighted, unmanaged index that measures those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth.

    The MIL Network –

  • MIL-OSI: Asure Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Reports Third Quarter Revenues of $29.3 Million

    Recurring Revenues Grew 20% Versus Prior Year Third Quarter

    AUSTIN, Texas, Oct. 31, 2024 (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 third quarter ended September 30, 2024.

    Third Quarter 2024 Financial Highlights

    • Revenue of $29.3 million, nearly unchanged versus the same period of the prior year
    • Revenue (excluding ERTC revenue) of $29.2 million, up 20% from $24.4 million versus the same period of the prior year
    • Recurring revenue of $28.6 million, up 20% year over year. Recurring revenue was 98% of total revenue versus 81% the same period of the prior year
    • Net loss of $3.9 million versus a net loss of $2.2 million during the same period of the prior year 
    • EBITDA(1) of $2.2  million versus $3.0 million during the same period of the prior year  
    • Adjusted EBITDA(1) of $5.4 million versus $6.2 million during the same period of the prior year 
    • Gross profit of $19.7 million versus $21.3 million during the same period of the prior year  
    • Non-GAAP gross profit(1) of $21.4 million (Non-GAAP gross margin(1) of 73%) versus $22.4 million (and 76% during the same period of the  prior year) 

    Nine Months 2024 Financial Highlights

    • Revenue of $89.0 million down 4% versus the first nine months of prior year
    • Revenue (excluding ERTC revenue) of $87.4 million up 15% from $75.7 million in the first nine months of prior year
    • Recurring revenue (excluding ERTC revenue) of $86.0 million up 16% from $74.4 million in the first nine months of prior year
    • Net loss of $8.6 million versus a net loss of $5.6 million the first nine months of prior year
    • EBITDA(1) of $8.0 million versus $13.2 million the first nine months of prior year
    • Adjusted EBITDA(1) of $16.3 million versus $20.5 million the first nine months of prior year
    • Gross profit of $61.2 million versus $67.7 million during the first nine months of the prior year  
    • Non-GAAP gross profit(1) of $65.6 million (Non-GAAP gross margin(1) of 74%) versus $71.5 million (and 77% during the first nine months of the prior year) 

    _______________
    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 4 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Recent Business Highlights

    • Payroll Tax Management Expansion: Asure’s Payroll Tax Management product gained significant momentum, going live with additional Workday and SAP clients during the third quarter. Key sales wins include one of America’s largest grocery chains and a nationally known HCM system integrator who assists large enterprises with Workday, SAP, and Oracle HCM implementations. These enterprise bookings have grown our backlog and still represent additional product and professional services opportunities.
    • HCM Architectural Milestone: Employee self-service capabilities have been decoupled from disparate payroll platforms and modularized as a single API-based service. This enhancement improves scalability and stability of the end-to-end HCM suite and further consolidates our technical footprint to a more flexible service-oriented architecture.
    • Entering Beta of New AI Agent: More than a chatbot, this new Generative-AI Agent handles inquiries related to payroll and payroll taxes takes secure action on behalf of the user. Through dynamic, interactive sessions, the AI Agent will answer questions and take actions on HR requests including time off requests, demographic changes, or changes to W-4 allowances.
    • Leadership Recognition: Asure Chairman and CEO, Pat Goepel, was named Austin Business Journal’s Best CEO of a Public Company for 2024, recognizing his leadership and commitment to Asure’s growth and success.
    • New financial services product to launch November 2024: Asure is introducing AsurePay™, an innovative financial solution offering working Americans a comprehensive online banking alternative. AsurePay™ combines features such as debit card access, fee-free ATM withdrawals, and paycheck advances through a unique interest-bearing banking solution, designed to improve employee engagement, while also improving overall employer efficiency. This solution is easily accessible through an intuitive mobile app.

    Management Commentary

    Asure Chairman and CEO, Pat Goepel, stated, “Our third quarter performance reflects strong, continued growth, with recurring revenue up 20% year-over-year. We’ve made great strides in transitioning to a more valuable revenue model, with 98% of our revenues now recurring, compared to 81% in the same quarter last year. Additionally, new bookings were up 141% year-over-year. Our backlog has grown significantly — over 35% from Q2 2024 and over 250% from Q3 2023. While large enterprise tax product deals have contributed to our success, their pace of implementation can vary. That said, we remain confident in our ability to maintain this positive trajectory.”

    Goepel continued, “We’re seeing strong demand for our Payroll Tax Management product, we’re introducing new solutions, upgrading our technology, and making strategic acquisitions. Earlier in the year, we faced the challenge of replacing ERTC revenue, but those headwinds have now dissipated as we close out 2024 and this change in the composition of our revenues offers us strong momentum going into 2025. We are optimistic about the opportunities ahead for both the remainder of this year and into next year.”

    Fourth Quarter 2024 and Full Year 2025 Revenue Guidance Ranges

    The Company is providing the following guidance for the fourth quarter 2024 based on the Company’s year-to-date results and recent business trends. Management is initiating full year 2025 guidance to a range of $134M-$138M which does not include revenue from potential future acquisitions.

    Guidance for 2024

    Guidance Range   Q4-2024   FY-2024  
    Revenue $ 30M – 32M $ 119M -121M  
    Adjusted EBITDA(1) $ 6M -7M   18% -19%  
               

    Guidance for 2025 

    Guidance Range   FY-2025  
    Revenue $ 134M – 138M  
    Adjusted EBITDA(1)   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 that 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 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 2024 and 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 6 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, October 31, 2024, 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 Software (Nasdaq: ASUR) is a leading provider of Human Capital Management (“HCM”) software solutions. We help small and mid-sized companies grow by assisting them in building better teams with skills to stay compliant with ever-changing federal, state, and local tax jurisdictions and labor laws, and better allocate cash so they can spend their financial capital on growing their business rather than back-office overhead expenses. Asure’s Human Capital Management suite, named AsureHCM®, includes cloud-based Payroll, Tax Services, and Time & Attendance software and Asure Marketplace™ as well as human resources (“HR”) services ranging from HR projects to completely outsourcing payroll and HR staff. We also offer these products and services through our network of reseller partners. Visit us at 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 motivating or rewarding 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—the expiration of major revenue streams such as Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims; risks associated with breaches of the Company’s security measures; risks associated with the Company’s rate of growth and anticipated revenue run rate, including impact of the current economic environment; the Company’s ability to convert deferred revenue and unbilled deferred revenue into revenue and cash flow, and ability to maintain continued growth of deferred revenue and unbilled deferred revenue; 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; the Company’s ability to continue to release, gain customer acceptance of and provide support for new and improved versions of the Company’s services; successful customer deployment and utilization of the Company’s existing and future services; interruptions to supply chains and extended shut down of businesses; issues in the use of artificial intelligence in our HCM products and services; political unrest, including the current conflict between Russia and Ukraine and the ongoing conflict involving Israel in the Middle East; reductions in employment and an increase in business failures, specifically among our clients; possible fluctuations in the Company’s financial and operating results; 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; 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; technological developments; the nature of the Company’s business model; interest rates; competition; various financial aspects of the Company’s subscription model; impairment of intangible assets; interruptions or delays in the Company’s services or the Company’s Web hosting; access to additional capital; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; volatility and weakness in bank and capital markets; factors affecting the Company’s deferred tax assets and ability to value and utilize them; volatility and low trading volume of our common stock; collection of receivables; and general developments in the economy, financial markets, credit markets and the impact of current and future accounting pronouncements and other financial reporting standards. 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 February 26, 2024, and its quarterly reports on Form 10-Q filed with the SEC on August 1, 2024, and October 31, 2024.

    The forward-looking statements, including the financial guidance 2024 and 2025 outlooks, 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.

    © 2024 Asure Software, Inc. All rights reserved.

    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)
    (Unaudited)
     
      September 30, 2024   December 31, 2023
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 11,248     $ 30,317  
    Accounts receivable, net of allowance for credit losses of $6,150 and $4,787 at September 30, 2024 and December 31, 2023, respectively   17,233       14,202  
    Inventory   233       155  
    Prepaid expenses and other current assets   4,586       3,471  
    Total current assets before funds held for clients   33,300       48,145  
    Funds held for clients   193,589       219,075  
    Total current assets   226,889       267,220  
    Property and equipment, net   18,490       14,517  
    Goodwill   94,724       86,011  
    Intangible assets, net   73,429       62,082  
    Operating lease assets, net   4,401       4,991  
    Other assets, net   10,176       9,047  
    Total assets $ 428,109     $ 443,868  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Current portion of notes payable $ —     $ 27  
    Accounts payable   1,317       2,570  
    Accrued compensation and benefits   4,277       6,519  
    Operating lease liabilities, current   1,600       1,490  
    Other accrued liabilities   8,287       3,862  
    Deferred revenue   3,029       6,853  
    Total current liabilities before client fund obligations   18,510       21,321  
    Client fund obligations   193,951       220,019  
    Total current liabilities   212,461       241,340  
    Long-term liabilities:      
    Deferred revenue   2,276       16  
    Deferred tax liability   2,116       1,728  
    Notes payable, net of current portion   7,506       4,282  
    Operating lease liabilities, noncurrent   3,832       4,638  
    Other liabilities   765       209  
    Total long-term liabilities   16,495       10,873  
    Total liabilities   228,956       252,213  
    Stockholders’ equity:      
    Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding   —       —  
    Common stock, $0.01 par value; 44,000 shares authorized; 26,540 and 25,382 shares issued, 26,540 and 24,998 shares outstanding at September 30, 2024 and December 31, 2023, respectively   265       254  
    Treasury stock at cost, zero(1) and 384 shares at September 30, 2024 and December 31, 2023, respectively   —       (5,017 )
    Additional paid-in capital   502,920       487,973  
    Accumulated deficit   (304,022 )     (290,440 )
    Accumulated other comprehensive loss   (10 )     (1,115 )
    Total stockholders’ equity   199,153       191,655  
    Total liabilities and stockholders’ equity $ 428,109     $ 443,868  
    (1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Condensed 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)
    (Unaudited)
     
      Three Months Ended
    September 30,    		   Nine Months Ended
    September 30,
        2024       2023       2024       2023  
                   
    Revenue:              
    Recurring $ 28,626     $ 23,833     $ 85,950     $ 74,749  
    Professional services, hardware and other   678       5,501       3,050       18,069  
    Total revenue   29,304       29,334       89,000       92,818  
    Cost of sales   9,600       8,054       27,821       25,120  
    Gross profit   19,704       21,280       61,179       67,698  
    Operating expenses:              
    Sales and marketing   6,680       6,597       21,371       22,312  
    General and administrative   10,378       9,294       30,559       29,586  
    Research and development   1,973       1,803       5,704       5,107  
    Amortization of intangible assets   4,295       3,333       11,790       9,929  
    Total operating expenses   23,326       21,027       69,424       66,934  
    (Loss) income from operations   (3,622 )     253       (8,245 )     764  
    Interest income   165       437       762       1,015  
    Interest expense   (274 )     (1,219 )     (662 )     (5,336 )
    Loss on extinguishment of debt   —       (1,517 )     —       (1,517 )
    Other (expense) income, net   —       (283 )     10       (291 )
    Loss from operations before income taxes   (3,731 )     (2,329 )     (8,135 )     (5,365 )
    Income tax expense (benefit)   170       (123 )     434       267  
    Net loss   (3,901 )     (2,206 )     (8,569 )     (5,632 )
    Other comprehensive loss:              
    Unrealized income (loss) on marketable securities   1,340       (201 )     1,105       (213 )
    Comprehensive loss $ (2,561 )   $ (2,407 )   $ (7,464 )   $ (5,845 )
                   
    Basic and diluted loss per share              
    Basic $ (0.15 )   $ (0.10 )   $ (0.33 )   $ (0.27 )
    Diluted $ (0.15 )   $ (0.10 )   $ (0.33 )   $ (0.27 )
                   
    Weighted average basic and diluted shares              
    Basic   26,429       22,591       25,870       21,204  
    Diluted   26,429       22,591       25,870       21,204  
                                   
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
    (Unaudited)
     
      Nine Months Ended September 30,
        2024       2023  
           
    Cash flows from operating activities:      
    Net loss $ (8,569 )   $ (5,632 )
    Adjustments to reconcile loss to net cash (used) in provided by operations:      
    Depreciation and amortization   16,200       14,243  
    Amortization of operating lease assets   1,025       1,129  
    Amortization of debt financing costs and discount   531       548  
    Non-cash interest expense   —       1,471  
    Net accretion of discounts on available-for-sale securities   (273 )     (63 )
    Provision for expected losses   111       2,004  
    Provision for deferred income taxes   388       111  
    Loss on extinguishment of debt   —       1,208  
    Net realized gains on sales of available-for-sale securities   (1,929 )     (1,645 )
    Share-based compensation   4,981       4,170  
    Loss on disposals of long-term assets   —       132  
    Change in fair value of contingent purchase consideration   —       175  
    Changes in operating assets and liabilities:      
    Accounts receivable   (3,142 )     (5,014 )
    Inventory   (78 )     159  
    Prepaid expenses and other assets   (1,656 )     4,031  
    Operating lease right-of-use assets   —       473  
    Accounts payable   (1,253 )     (498 )
    Accrued expenses and other long-term obligations   (1,052 )     918  
    Operating lease liabilities   (1,139 )     (895 )
    Deferred revenue   (4,539 )     (5,190 )
    Net cash (used) in provided by operating activities   (394 )     11,835  
    Cash flows from investing activities:      
    Acquisition of intangible asset   (12,397 )     (697 )
    Purchases of property and equipment   (546 )     (1,365 )
    Software capitalization costs   (7,677 )     (5,029 )
    Purchases of available-for-sale securities   (10,914 )     (21,513 )
    Proceeds from sales and maturities of available-for-sale securities   13,325       10,428  
    Net cash used in investing activities   (18,209 )     (18,176 )
    Cash flows from financing activities:      
    Payments of notes payable   (420 )     (35,627 )
    Debt extinguishment costs   —       (468 )
    Payments made on amounts due for the acquisition of intangible assets   (658 )     —  
    Net proceeds from issuance of common stock   902       45,986  
    Capital raise fees   (47 )     (258 )
    Net change in client fund obligations   (26,068 )     (31,033 )
    Net cash used in financing activities   (26,291 )     (21,400 )
    Net decrease in cash and cash equivalents   (44,894 )     (27,741 )
    Cash and cash equivalents, beginning of period   177,622       164,042  
    Cash and cash equivalents, end of period $ 132,728     $ 136,301  
                   
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
    (in thousands)
    (Unaudited)
     
      Nine Months Ended September 30,
        2024       2023  
           
    Reconciliation of cash and cash equivalents to the Condensed Consolidated Balance Sheets
    Cash and cash equivalents $ 11,248     $ 32,787  
    Cash and cash equivalents included in funds held for clients   121,480       103,514  
    Total cash and cash equivalents $ 132,728     $ 136,301  
           
    Supplemental information:      
    Cash paid for interest $ —     $ 3,140  
    Cash paid for income taxes $ 15     $ 532  
           
    Non-cash investing and financing activities:      
    Acquisition of intangible assets $ 6,918     $ 332  
    Notes payable issued for acquisitions $ 3,138     $ —  
    Shares issued for acquisitions $ 9,125     $ 2,543  
                   
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
    (unaudited)
     
    (in thousands) Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23 Q4-22
    Revenue(1) $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064   $ 29,292  
                     
    Gross Profit to non-GAAP Gross Profit                
    Gross Profit $ 19,704   $ 18,868   $ 22,607   $ 17,839   $ 21,280   $ 22,018   $ 24,400   $ 21,139  
    Gross Margin   67.2 %   67.3 %   71.4 %   67.9 %   72.5 %   72.4 %   73.8 %   72.2 %
                     
    Share-based Compensation   44     43     40     32     28     46     31     34  
    Depreciation   1,232     1,145     1,110     921     984     1,309     1,009     871  
    Amortization – intangibles   50     50     50     50     50     50     268     298  
    One-time expenses                
    Settlements, penalties & interest   2     3     —     (6 )   8     —     4     3  
    Acquisition and transaction costs   367     264     39     —     —     —     —     —  
    Non-GAAP Gross Profit $ 21,399   $ 20,373   $ 23,846   $ 18,836   $ 22,350   $ 23,423   $ 25,712   $ 22,345  
    Non-GAAP Gross Margin   73.0 %   72.6 %   75.3 %   71.7 %   76.2 %   77.0 %   77.8 %   76.3 %
                     
    Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
    Sales and Marketing Expense $ 6,680   $ 6,924   $ 7,767   $ 6,422   $ 6,597   $ 8,515   $ 7,200   $ 6,022  
                     
    Share-based Compensation   269     237     243     180     210     149     124     93  
    Depreciation   1     —     1     1     —     —     —     —  
    One-time expenses                
    Settlements, penalties & interest   (5 )   5     18     6     30     4     11     —  
    Acquisition and transaction costs   68     37     11     —     —     —     —     —  
    Other non-recurring expenses   —     —     —     —     —     180     —     —  
    Non-GAAP Sales and Marketing Expense $ 6,347   $ 6,645   $ 7,494   $ 6,235   $ 6,357   $ 8,182   $ 7,065   $ 5,929  
                     
    General and Administrative Expense to non-GAAP General and Administrative Expense
    General and Administrative Expense $ 10,378   $ 10,118   $ 10,063   $ 9,747   $ 9,294   $ 10,336   $ 9,956   $ 9,720  
                     
    Share-based Compensation   1,187     1,122     1,535     980     936     1,298     1,142     641  
    Depreciation   264     256     251     225     200     234     210     168  
    One-time expenses                
    Settlements, penalties & interest   377     304     98     284     101     432     102     34  
    Acquisition and transaction costs   371     245     57     51     —     —     —     —  
    Other non-recurring expenses   253     —     86     53     —     453     —     —  
    Non-GAAP General and Administrative Expense $ 7,926   $ 8,191   $ 8,036   $ 8,154   $ 8,057   $ 7,919   $ 8,502   $ 8,877  
                     
    Research and Development Expense to non-GAAP Research and Development Expense
    Research and Development Expense $ 1,973   $ 1,962   $ 1,769   $ 1,739   $ 1,803   $ 1,325   $ 1,979   $ 1,627  
                     
    Share-based Compensation   90     86     85     69     76     89     40     70  
    One-time expenses                
    Settlements, penalties & interest   —     27     31     —     —     —     —     25  
    Acquisition and transaction costs   195     369     147     —     —     —     —     —  
    Non-GAAP Research and Development Expense $ 1,688   $ 1,480   $ 1,506   $ 1,670   $ 1,727   $ 1,236   $ 1,939   $ 1,532  
                                                     

    (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) Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23 Q4-22
    Revenue(1) $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064   $ 29,292  
                     
    GAAP Net (Loss) Income to Adjusted EBITDA
    GAAP Net (Loss) Income $ (3,901 ) $ (4,360 ) $ (308 ) $ (3,582 ) $ (2,206 ) $ (3,765 ) $ 339   $ (1,056 )
                     
    Interest expense, net   109     (53 )   (156 )   (24 )   782     1,593     1,944     1,429  
    Income taxes   170     231     33     (158 )   (123 )   627     (237 )   (94 )
    Depreciation   1,497     1,402     1,361     1,148     1,185     1,542     1,219     1,039  
    Amortization – intangibles   4,345     4,096     3,499     3,743     3,384     3,343     3,570     3,648  
    EBITDA $ 2,220   $ 1,316   $ 4,429   $ 1,127   $ 3,022   $ 3,340   $ 6,835   $ 4,966  
    EBITDA Margin   7.6 %   4.7 %   14.0 %   4.3 %   10.3 %   11.0 %   20.7 %   17.0 %
                     
    Share-based Compensation   1,591     1,488     1,902     1,260     1,251     1,582     1,337     838  
    One Time Expenses                
    Settlements, penalties & interest   375     339     147     283     140     436     117     62  
    Acquisition and transaction costs   1,001     914     254     51     —     —     —     —  
    Other non-recurring expenses   253     —     86     53     —     633     —     —  
    Other (expense) income, net   —     —     (10 )   1     1,800     93     (83 )   139  
    Adjusted EBITDA $ 5,440   $ 4,057   $ 6,808   $ 2,775   $ 6,213   $ 6,084   $ 8,206   $ 6,005  
    Adjusted EBITDA Margin   18.6 %   14.5 %   21.5 %   10.6 %   21.2 %   20.0 %   24.8 %   20.5 %
                                                     

    (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: Fidus Investment Corporation Announces Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Board of Directors Declared Total Dividends of $0.61 per Share for Fourth Quarter 2024

    Base Dividend of $0.43 and Supplemental Dividend of $0.18 Per Share

    EVANSTON, Ill., Oct. 31, 2024 (GLOBE NEWSWIRE) — Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the third quarter ended September 30, 2024.

    Third Quarter 2024 Financial Highlights

    • Total investment income of $38.4 million
    • Net investment income of $21.4 million, or $0.64 per share
    • Adjusted net investment income of $20.4 million, or $0.61 per share(1)
    • Invested $65.9 million in debt and equity securities, including three new portfolio companies
    • Received proceeds from repayments and realizations of $50.8 million
    • Paid total dividends of $0.57 per share: regular quarterly dividend of $0.43 and a supplemental dividend of $0.14 per share on September 26, 2024
    • Net asset value (“NAV”) of $658.8 million, or $19.42 per share, as of September 30, 2024
    • Estimated spillover income (or taxable income in excess of distributions) as of September 30, 2024 of $43.1 million, or $1.27 per share

    Management Commentary

    “For the third quarter, our debt investments generated a 8.4% increase in interest income year-over-year. We continued to carefully grow total assets under management while maintaining a healthy portfolio structured to deliver recurring income and the potential for enhanced returns from the monetization of equity investments. We expect investment activity to remain at reasonable levels for the rest of the year, providing us opportunities to advance our long-term goals of generating attractive risk-adjusted returns for our shareholders, preserving capital and growing NAV over time,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation.    

    (1)    Supplemental information regarding adjusted net investment income:

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

    Third Quarter 2024 Financial Results

    The following table provides a summary of our operating results for the three months ended September 30, 2024, as compared to the same period in 2023 (dollars in thousands, except per share data):

                             
        Three Months Ended September 30,              
        2024     2023     $ Change     % Change  
    Interest income   $ 31,857     $ 28,313     $ 3,544       12.5 %
    Payment-in-kind interest income     1,851       2,789       (938 )     (33.6 %)
    Dividend income     1,384       262       1,122       428.2 %
    Fee income     2,693       2,255       438       19.4 %
    Interest on idle funds     597       566       31       5.5 %
    Total investment income   $ 38,382     $ 34,185     $ 4,197       12.3 %
                             
    Net investment income   $ 21,411     $ 16,660     $ 4,751       28.5 %
    Net investment income per share   $ 0.64     $ 0.63     $ 0.01       1.6 %
                             
    Adjusted net investment income (1)   $ 20,424     $ 18,188     $ 2,236       12.3 %
    Adjusted net investment income per share (1)   $ 0.61     $ 0.68     $ (0.07 )     (10.3 %)
                             
    Net increase  (decrease) in net assets resulting from operations   $ 16,477     $ 24,299     $ (7,822 )     (32.2 %)
    Net increase (decrease) in net assets resulting from operations per share   $ 0.49     $ 0.91     $ (0.42 )     (46.2 %)

    The $4.2 million increase in total investment income for the three months ended September 30, 2024, as compared to the same period in 2023, was primarily attributable to (i) a $2.6 million increase in total interest income (which includes payment-in-kind interest income) resulting from an increase in average debt investment balances outstanding, partially offset by a decrease in weighted average yield on debt investment balances outstanding, (ii) a $1.1 million increase in dividend income due to an increase in distributions received from equity investments and (iii) a $0.4 million increase in fee income resulting from an increase in amendment fees.

    For the three months ended September 30, 2024, total expenses, including the base management fee waiver and income tax provision, were $17.0 million, a decrease of $0.5 million, or (3.2%) from the $17.5 million of total expenses, including the base management fee waiver and income tax provision, for the three months ended September 30, 2023. The decrease was primarily attributable to (i) a $2.5 million decrease in capital gains incentive fee accrued, partially offset by (ii) a $0.7 million net increase in base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $0.6 million increase in the income incentive fee, and (iv) a $0.6 million increase in income tax provision (benefit).

    Net investment income increased by $4.7 million, or 28.5%, to $21.4 million during the three months ended September 30, 2024 as compared to the same period in 2023, as a result of the $4.2 million increase in total investment income and the $0.5 million decrease in total expenses, including base management fee waiver and income tax provision. Adjusted net investment income,(1) which excludes the capital gains incentive fee accrual, was $0.61 per share compared to $0.68 per share in the prior year.

    For the three months ended September 30, 2024, the total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, was $(0.4) million, as compared to total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, of $9.7 million for the same period in 2023.

    Portfolio and Investment Activities

    As of September 30, 2024, the fair value of our investment portfolio totaled $1,090.7 million and consisted of 85 active portfolio companies and five portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 101.5% of the related cost basis as of September 30, 2024. As of September 30, 2024, the debt investments of 49 portfolio companies bore interest at a variable rate, which represented $702.0 million, or 73.2%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of September 30, 2024, our average active portfolio company investment at amortized cost was $12.6 million, which excludes investments in five portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 13.8% as of September 30, 2024. The weighted average yield was computed using the effective interest rates for debt investments at cost as of September 30, 2024, including the accretion of original issue discounts and loan origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing.

    Third quarter 2024 investment activity included the following new portfolio company investment:

    • Jumo Health, Inc., a developer of creative, patient-centric educational solutions that improve health literacy to accelerate clinical trial enrollment and increase participant retention. Fidus invested $6.0 million in first lien debt and $0.8 million in preferred equity.
    • Thrust Flight LLC, a provider of professional flight training services. Fidus invested $9.8 million in first lien debt, $1.1 million in common equity and made additional commitments up to $2.6 million in first lien debt.
    • InductiveHealth Informatics, LLC, a leading provider of disease and syndromic surveillance solutions for health agencies. Fidus invested $20.0 million in first lien debt and $0.4 million in preferred equity.

    Liquidity and Capital Resources

    As of September 30, 2024, we had $54.4 million in cash and cash equivalents and $100.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). For the three months ended September 30, 2024, we received net proceeds of $14.1 million from the equity at-the-market program (the “ATM Program”). As of September 30, 2024, we had SBA debentures outstanding of $175.0 million, $125.0 million outstanding of our 4.75% notes due January 2026 (the “January 2026 Notes”) and $125.0 million outstanding of our 3.50% notes due November 2026 (the “November 2026 Notes” and collectively with the January 2026 Notes the “Notes”). As of September 30, 2024, the weighted average interest rate on total debt outstanding was 4.6%.

    Fourth Quarter 2024 Dividends Totaling $0.61 Per Share Declared

    On October 28, 2024, our board of directors declared a base dividend of $0.43 per share and a supplemental dividend of $0.18 per share for the fourth quarter. The dividends will be payable on December 27, 2024, to stockholders of record as of December 17, 2024.

    When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under GAAP due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2024 taxable income, as well as the tax attributes for 2024 dividends, will be made after the close of the 2024 tax year.  The final tax attributes for 2024 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

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

    Subsequent Events

    On October 1, 2024, we invested $6.3 million in first lien debt and common equity in Estex Manufacturing Company, LLC, a branded manufacturer of sewn products used in the utility, airline / aerospace, sports, and military end markets.

    On October 11, 2024, we exited our debt investment in US Fertility Enterprises, LLC. We received payment in full of $15.2 million on our subordinated debt, which included a prepayment fee.

    On October 24, 2024, we exited our debt investment in Sonicwall US Holdings, Inc. We received payment of $3.3 million on our second lien debt, resulting in a realized loss of $0.1 million.

    On October 25, 2024, we invested $14.8 million in first lien debt and common equity in Axis Medical Technologies LLC (dba Movemedical), a leading provider of last-mile supply chain software solutions to medical device OEMs.

    Third Quarter 2024 Financial Results Conference Call

    Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, November 1, 2024. To participate in the conference call, please dial (844) 808-7136 approximately 10 minutes prior to the call. International callers should dial (412) 317-0534. Please ask to be joined into the Fidus Investment Corporation call.

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

    ABOUT FIDUS INVESTMENT CORPORATION

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

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

    FORWARD-LOOKING STATEMENTS

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

        FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Assets and Liabilities
    (in thousands, except shares and per share data)
            		  
        September 30,     December 31,  
        2024     2023  
    ASSETS                
    Investments, at fair value:                
       Control investments (cost: $6,832 and $6,832, respectively)   $   —     $   —  
       Affiliate investments (cost: $48,019 and $46,485, respectively)       85,827         83,876  
       Non-control/non-affiliate investments (cost: $1,019,953 and $883,312, respectively)       1,004,848         874,030  
    Total investments, at fair value (cost: $1,074,804 and $936,629, respectively)       1,090,675         957,906  
    Cash and cash equivalents       54,443         119,131  
    Interest receivable       14,317         11,965  
    Prepaid expenses and other assets       1,618         1,896  
    Total assets   $   1,161,053     $   1,090,898  
    LIABILITIES                
    SBA debentures, net of deferred financing costs   $   170,472      $   204,472  
    Notes, net of deferred financing costs       248,081         247,243  
    Borrowings under Credit Facility, net of deferred financing costs       38,853         (1,082 )
    Secured borrowings       14,025         15,880  
    Accrued interest and fees payable       3,544         5,924  
    Base management fee payable, net of base management fee waiver – due to affiliate       4,784         4,151  
    Income incentive fee payable – due to affiliate       5,059         4,570  
    Capital gains incentive fee payable – due to affiliate       14,914         17,509  
    Administration fee payable and other, net – due to affiliate       619         789  
    Taxes payable       751         1,227  
    Accounts payable and other liabilities       1,190         741  
    Total liabilities   $   502,292      $   501,424  
    Commitments and contingencies                
    NET ASSETS                
    Common stock, $0.001 par value (100,000,000 shares authorized, 33,914,652 and 30,438,979 shares                
    issued and outstanding at September 30, 2024 and December 31, 2023, respectively)   $   34      $   31  
    Additional paid-in capital       572,159         504,298  
    Total distributable earnings       86,568         85,145  
    Total net assets       658,761         589,474  
    Total liabilities and net assets   $   1,161,053      $   1,090,898  
    Net asset value per common share   $   19.42      $   19.37  
    FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Operations (unaudited)
    (in thousands, except shares and per share data)

    		  
        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024     2023     2024     2023  
    Investment Income:                        
    Interest income                        
    Control investments   $ —     $ —     $ —     $ —  
    Affiliate investments     870       1,011       2,603       3,168  
    Non-control/non-affiliate investments     30,987       27,302       88,899       77,268  
    Total interest income     31,857       28,313       91,502       80,436  
    Payment-in-kind interest income                        
    Control investments     —       —       —       —  
    Affiliate investments     —       —       —       —  
    Non-control/non-affiliate investments     1,851       2,789       5,745       4,661  
    Total payment-in-kind interest income     1,851       2,789       5,745       4,661  
    Dividend income                        
    Control investments     —       —       —       —  
    Affiliate investments     1,328       (1 )     1,830       519  
    Non-control/non-affiliate investments     56       263       308       431  
    Total dividend income     1,384       262       2,138       950  
    Fee income                        
    Control investments     —       —       —       —  
    Affiliate investments     5       5       15       60  
    Non-control/non-affiliate investments     2,688       2,250       6,559       5,868  
    Total fee income     2,693       2,255       6,574       5,928  
    Interest on idle funds     597       566       2,738       1,824  
    Total investment income     38,382       34,185       108,697       93,799  
    Expenses:                        
    Interest and financing expenses     6,026       5,985       18,100       16,761  
    Base management fee     4,848       4,161       13,986       12,066  
    Incentive fee – income     5,059       4,478       14,072       11,959  
    Incentive fee (reversal) – capital gains     (987 )     1,528       942       507  
    Administrative service expenses     688       581       1,894       1,672  
    Professional fees     567       587       2,469       2,044  
    Other general and administrative expenses     266       269       764       773  
    Total expenses before base management fee waiver     16,467       17,589       52,227       45,782  
    Base management fee waiver     (64 )     (72 )     (200 )     (216 )
    Total expenses, net of base management fee waiver     16,403       17,517       52,027       45,566  
    Net investment income before income taxes     21,979       16,668       56,670       48,233  
    Income tax provision (benefit)     568       8       682       66  
    Net investment income     21,411       16,660       55,988       48,167  
    Net realized and unrealized gains (losses) on investments:                        
    Net realized gains (losses):                        
    Control investments     —       —       —       (11,458 )
    Affiliate investments     —       1       —       100  
    Non-control/non-affiliate investments     (366 )     9,749       12,161       15,625  
    Total net realized gain (loss) on investments     (366 )     9,750       12,161       4,267  
    Income tax (provision) benefit from realized gains on investments     —       (31 )     (1,523 )     (1,569 )
    Net change in unrealized appreciation (depreciation):                        
    Control investments     —       —       —       11,083  
    Affiliate investments     2,075       (4,507 )     417       (9,109 )
    Non-control/non-affiliate investments     (6,643 )     2,450       (5,823 )     (2,113 )
    Total net change in unrealized appreciation (depreciation) on investments     (4,568 )     (2,057 )     (5,406 )     (139 )
    Net gain (loss) on investments     (4,934 )     7,662       5,232       2,559  
    Realized losses on extinguishment of debt     —       (23 )     (521 )     (23 )
    Net increase (decrease) in net assets resulting from operations   $ 16,477     $ 24,299     $ 60,699     $ 50,703  
    Per common share data:                        
    Net investment income per share-basic and diluted   $ 0.64     $ 0.63     $ 1.74     $ 1.89  
    Net increase in net assets resulting from operations per share — basic and diluted   $ 0.49     $ 0.91     $ 1.89     $ 1.99  
    Dividends declared per share   $ 0.57     $ 0.72     $ 1.81     $ 2.08  
    Weighted average number of shares outstanding — basic and diluted     33,380,480       26,618,973       32,138,865       25,490,379  

    Schedule 1

    Supplemental Information Regarding Adjusted Net Investment Income

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure.  This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses.  The management agreement with our investment advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years.  In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate.  As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three and nine months ended September 30, 2024 and 2023.

              ($ in thousands)     ($ in thousands)  
              Three Months Ended     Nine Months Ended  
              September 30,     September 30,  
              (unaudited)     (unaudited)  
              2024     2023     2024     2023  
    Net investment income         $ 21,411     $ 16,660     $ 55,988     $ 48,167  
    Capital gains incentive fee expense (reversal)           (987 )     1,528       942       507  
    Adjusted net investment income (1)         $ 20,424     $ 18,188     $ 56,930     $ 48,674  
              (Per share)     (Per share)  
              Three Months Ended     Nine Months Ended  
              September 30,     September 30,  
              (unaudited)     (unaudited)  
              2024     2023     2024     2023  
    Net investment income         $ 0.64     $ 0.63     $ 1.74     $ 1.89  
    Capital gains incentive fee expense (reversal)           (0.03 )     0.05       0.03       0.02  
    Adjusted net investment income (1)         $ 0.61     $ 0.68     $ 1.77     $ 1.91  
    (1 ) Adjusted net investment income per share amounts are calculated as adjusted net investment income dividend by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.
    Company Contact: Investor Relations Contact:
    Shelby E. Sherard Jody Burfening
    Chief Financial Officer LHA
    (847) 859-3940 (212) 838-3777
    ssherard@fidusinv.com jburfening@lhai.com

    The MIL Network –

  • MIL-OSI USA: Webster Joins Senators Scott & Rubio, Florida Delegation Urging USDA to Expedite Aid for Florida Agricultural Producers

    Source: United States House of Representatives – Congressman Daniel Webster (11th District of Florida)

    Washington, D.C. — Florida Congressman Daniel Webster, R-Clermont, along with Congressman Scott Franklin (R-FL), Senators Rick Scott (R-FL), Marco Rubio (R-FL), and the entire Florida delegation sent a letter to U.S. Department of Agriculture (USDA) Secretary Tom Vilsack urging the USDA to take immediate action to provide disaster assistance for Florida agricultural producers affected by Hurricanes Helene and Milton. 
     
    “These back-to-back major hurricanes have decimated Florida agriculture, our state’s second largest industry, which generates more than $182.6 billion in annual revenue and provides more than 2.5 million jobs,” the members wrote. “As Members of Congress, it is our responsibility to work with USDA to best assist the producers who feed our nation.”
     
    The full text of the letter is below. 
     
    Dear Secretary Vilsack:
     
    We write to strongly urge the U.S. Department of Agriculture (USDA) take immediate action to deliver critical aid to agricultural producers affected by recent hurricanes Helene and Milton. These back-to-back major hurricanes have decimated Florida agriculture, our state’s second largest industry, which generates more than $182.6 billion in annual revenue and provides more than 2.5 million jobs.
     
    Hurricane Milton made landfall on Florida’s Gulf Coast just 13 days after Helene and brought high winds, flooding and damage across the entire state. According to the Florida Department of Agriculture and Consumer Sciences (FDACS), the preliminary estimate of total crop and infrastructure losses ranges from $1.5 to $2.5 billion, and the State of Florida has requested federal agriculture disaster designations for impacted counties in response to both storms.
     
    Milton’s path impacted some of Florida’s most productive agricultural areas for aquaculture, avocados, bell peppers, blackberries, blueberries, broccoli, cabbage, cattle, citrus, christmas trees, corn, cotton, cucumbers, dairy, equine, floriculture, grapes, leafy greens, mangos, other animal products, peaches, peanuts, pecans, potatoes, poultry, rice, snap beans, soybeans, strawberries, sugarcane, sweet corn, tangerines, tomatoes, watermelons, and more. Agricultural lands and agribusiness more than 100 miles away from the eye of the storm experienced tornadoes and other devastating effects which compounded losses.
     
    Block Grants:
     
    In 2018, after Hurricane Irma, Congress appropriated relief to Florida agriculture and USDA delivered that aid through a block grant to the state. The State of Florida was successful in getting that aid to those in need quickly and efficiently. During a House Appropriations Subcommittee on Agriculture hearing held on March 9, 2023, USDA Inspector General Phyllis K. Fong was asked about the effectiveness of this block grant and she stated, “[i]n that instance, FSA successfully partnered with Florida to deliver assistance to the citrus farmers.” She went on to say: “I think that is an example, within your own state, where that kind of block grant program can work.” We ask that you support both an appropriation request and authority to deliver the assistance in the form of a block grant to our state.
     
    USDA must work to deliver aid to communities affected by disasters as quickly and efficiently as possible. FSA offices across Florida are still having trouble facilitating disaster assistance programs designed to help after 2022 Hurricanes Ian and Nicole. However, these funds were not in the form of a block grant and as a result, there are hundreds of producers who are still awaiting assistance.
     
    Creating a new disaster program each time funds are appropriated by Congress not only complicates the disaster relief application process, but also delays delivery of critical assistance for the producers who feed our state and nation. Block grants administered by the state expedite disbursement, free up personnel at FSA to efficiently carry out routine programs and provide needed flexibility for states.
     
    As you are aware, the Block Grant Assistance Act (H.R 662 & S.180) was designed to authorize USDA to administer calendar year 2022 disaster relief via block grants. This would give USDA the ability, when reasonable, to issue block grants and expedite payment to producers. This bill is cosponsored by the entire Florida delegation and unanimously passed the House on June 12, 2023. We remain steadfast in our support for standing block grant authority and continue to urge USDA to support this measure giving them additional flexibility in administering disaster programs.
     
    Farm Service Agency:
     
    Unlike most commodity crop programs, Florida specialty crop programs are disaster based and time consuming to deliver. Additionally, permanent FSA staff are needed in the county offices to administer the USDA disaster programs efficiently and effectively. We ask that USDA approve an expedited review of applications and deployment of existing authority for FSA offices to waive requirements that are redundant or unnecessary.
     
    In many other states, straightforward programs like Agriculture Risk Coverage or Price Loss Coverage enable producers to easily enroll and receive payments. These routine programs influence FSA workload metrics and help the agency prioritize personnel and resources. However, the situation differs significantly in Florida with specialty crops. Most of our programs are disaster-based, which are notably more time-consuming to administer and manage. These factors are not accounted for when allocating staff. As a result, our FSA county offices are not adequately staffed and have not finalized Emergency Relief Program (ERP) and Emergency Conservation Program (ECP) payments to producers for 2022.
     
    Disaster Appropriation:
     
    Per USDA data, losses in agriculture across calendar year 2022 totaled $14 billion, yet Congress only appropriated $3.7 billion in relief to our nation’s producers in the December 2022 omnibus. We recognize this led to difficult decisions on how to distribute the disaster assistance. However, the “Progressive Payment Factor” being applied to ERP 2022 payments was an unnecessary and harmful program flaw that has resulted in the producers who suffered the most severe losses receiving pennies on the dollars in assistance. Federal disaster assistance is never meant to make producers whole, but Congress has a duty to prevent a failure like this from occurring again. We look forward to working with USDA to ensure adequate funding for 2023 and 2024 losses.
     
    Improved Crop Insurance Options:
     
    Crop insurance is another tool USDA can use to improve the farm safety net alongside these suggestions for improving delivery of FSA disaster programs. The 2024 Farm Bill that passed the House Committee on Agriculture includes language to improve crop insurance options for specialty crop growers, including the Temperature Endorsement for Multi-Peril Policies (TEMP) Act (H.R.6186 & S.3253).4 Many of Florida’s specialty crop growers do not have insurance on their crops because of the high price of the premiums and low payouts from claims. The Florida Delegation will continue its efforts to work with USDA to prioritize improving crop insurance options for growers as outlined in the 2024 Farm Bill passed by the House Committee on Agriculture earlier this year.
     
    To ensure USDA and Congress are equipped to provide adequate support for producers, please respond to the following questions and provide the following documents and information no later than November 29, 2024.

    1. A statement of agency policy for utilization of block grants within USDA disaster-based programs.
    2. A document detailing calendar year 2024 calendar year losses up to October 29, 2024, and a budgetary request to the House and Senate Appropriations Committees to ensure adequate funding of relief programs.
    3. An updated document detailing FSA county office leadership, and how many FTEs are employed at each.
    4. A report on the number of FTEs Florida FSA offices need to efficiently administer a disaster-based program to Florida producers.
    5. A plan for strike team deployment to Florida FSA offices including timeline, number of employees and where these teams will be placed.

    As Members of Congress, it is our responsibility to work with USDA to best assist the producers who feed our nation. We appreciate your attention to this urgent matter.
     
    Sincerely,
     
     

    ###

    MIL OSI USA News –

  • MIL-OSI New Zealand: Trade Deals – Gulf State trade deal to grow economy – BusinessNZ

    Source: BusinessNZ

    BusinessNZ welcomes the opportunity for New Zealand business to access new markets and grow our economy through a Free Trade Agreement (FTA) with the Gulf States.
    Chief Executive Katherine Rich says the new high-quality FTA between New Zealand and the Gulf Cooperation Council will be welcome news to those looking to grow their business overseas.
    “New Zealand has a strong reputation for exports which are sought after in the Gulf States – things like high-quality agriculture, food and beverage, as well as other goods. This FTA gives preferential access for our primary sector exporters and streamlined customs processes.
    “This deal will help meet the ambitious target set by this Government to double export value by 2034. The Gulf States are home to some 54 million people who have good incomes and sophisticated tastes, so there are plenty of opportunities for Kiwi exporters to expand into the region.
    “This FTA also sends an important global signal at a time of increasing protectionism, that some countries are still embracing open economies and free trade – which is for the mutual benefit of their consumers and citizens.
    “BusinessNZ acknowledges the hard work our negotiators have put into making this deal a reality and look forward to further growing our economy through overseas trade.
    The Gulf Cooperation Council Nations include: Bahrain, Kuwait , Oman, Qatar, Saudi Arabia, UAE
    The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Trade Deals – Gulf State trade deal unlocks new region – BusinessNZ

    Source: BusinessNZ

    ExportNZ welcomes a new Free Trade Agreement (FTA) between New Zealand and the Gulf Cooperation Council, which provides new avenues for exporters.
    Executive Director Josh Tan says the agreement with the Gulf States will streamline processes to get New Zealand products on shelves in the Gulf sooner.
    “This FTA provides new market access to several Gulf States, making it easier for exporters to engage with customers and clients, and grow their business overseas.
    “Exporters will be pleased to hear tariffs on 99 percent of goods will be eliminated in the first ten years of the FTA coming into force, providing certainty to businesses looking to enter Gulf State markets.
    “With this deal and the recent NZ-UAE FTA, New Zealand now has access into the economic hubs of the Middle East. These deals will help unlock the region for exporters who had previously been deterred from doing business in the Gulf.
    “The Government has set an ambitious target to double our export value by 2034. Agreements like this and the UAE-NZ FTA will help exporters reach that goal.
    “ExportNZ on behalf of all NZ exporters, would like to thank our negotiators in securing this new deal.”
    Gulf Cooperation Council Nations include: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE
    The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.

    MIL OSI New Zealand News –

  • MIL-OSI USA: Disaster Recovery Center Opens in Polk County

    Source: US Federal Emergency Management Agency

    Headline: Disaster Recovery Center Opens in Polk County

    Disaster Recovery Center Opens in Polk County

    RALEIGH, N.C. –  A Disaster Recovery Center (DRC) will open Friday, Nov. 1 in Mill Spring (Polk County) to assist North Carolina survivors who experienced loss from Tropical Storm Helene.  The Polk County DRC is located at:  Polk County Recreation Complex (Parking Lot)235 Wolverine TrailMill Spring, NC 28756Open: 8 a.m. – 7 p.m., Monday through SundayA DRC is a one-stop shop where survivors can meet face-to-face with FEMA representatives, apply for FEMA assistance, receive referrals to local assistance in their area, apply with the U.S. Small Business Administration (SBA) for low-interest disaster loans and much more.  FEMA financial assistance may include money for basic home repairs, personal property losses or other uninsured, disaster-related needs, such as childcare, transportation, medical needs, funeral or dental expenses. To find additional DRC locations, go to fema.gov/drc or text “DRC” and a zip code to 43362. Additional recovery centers will open soon. All centers are accessible to people with disabilities or access and functional needs and are equipped with assistive technology.   Homeowners and renters in 39 North Carolina counties and tribal members of the Eastern Band of Cherokee Indians can visit any open center, including locations in other states. No appointment is needed.  It is not necessary to go to a center to apply for FEMA assistance. The fastest way to apply is online at DisasterAssistance.gov or via the FEMA app. You may also call 800-621-3362. If you use a relay service, such as video relay, captioned telephone or other service, give FEMA your number for that service. 
    barbara.murien…
    Thu, 10/31/2024 – 19:29

    MIL OSI USA News –

  • MIL-OSI: Sound Financial Bancorp, Inc. Q3 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Oct. 30, 2024 (GLOBE NEWSWIRE) — Sound Financial Bancorp, Inc. (the “Company”) (Nasdaq: SFBC), the holding company for Sound Community Bank (the “Bank”), today reported net income of $1.2 million for the quarter ended September 30, 2024, or $0.45 diluted earnings per share, as compared to net income of $795 thousand, or $0.31 diluted earnings per share, for the quarter ended June 30, 2024, and $1.2 million, or $0.45 diluted earnings per share, for the quarter ended September 30, 2023. The Company also announced today that its Board of Directors declared a cash dividend on common stock of $0.19 per share, payable on November 26, 2024 to stockholders of record as of the close of business on November 12, 2024.

    Comments from the President and Chief Executive Officer

    “For the first time in our history, loans surpassed $900 million, and we continued to grow deposits. These production improvements came as we held operating expenses steady, demonstrating our ability to grow the Bank efficiently,” remarked Laurie Stewart, President and Chief Executive Officer. “We also completed a major upgrade to our online banking services and have received positive feedback on this from our clients,” concluded Ms. Stewart.

    “Net income increased 45% from the prior quarter primarily due to the improvement in our net interest margin, which was driven by the repricing and origination of new loans at higher market rates. At the same time, funding costs increased at a slower pace, as the majority of our deposits had already been repriced. We also made progress in transitioning time deposits to savings and money market accounts, which typically carry lower rates and provide more flexibility for future repricing,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

    Mr. Ochs continued, “As always, we remain focused on maintaining strong asset quality. Non-performing loans decreased from the prior quarter-end and we are actively utilizing available remedies to address the remaining problem loans.”

    Q3 2024 Financial Performance
    Total assets increased $26.1 million or 2.4% to $1.10 billion at September 30, 2024, from $1.07 billion at June 30, 2024, and increased $70.8 million or 6.9% from $1.03 billion at September 30, 2023.     Net interest income increased $425 thousand or 5.7% to $7.9 million for the quarter ended September 30, 2024, from $7.4 million for the quarter ended June 30, 2024, and decreased $295 thousand or 3.6% from $8.2 million for the quarter ended September 30, 2023.
       
        Net interest margin (“NIM”), annualized, was 2.98% for the quarter ended September 30, 2024, compared to 2.92% for the quarter ended June 30, 2024 and 3.38% for the quarter ended September 30, 2023.
    Loans held-for-portfolio increased $12.5 million or 1.4% to $901.7 million at September 30, 2024, compared to $889.3 million at June 30, 2024, and increased $26.3 million or 3.0% from $875.4 million at September 30, 2023.    
        An $8 thousand provision for credit losses was recorded for the quarter ended September 30, 2024, compared to a $109 thousand and a $75 thousand release of provision for credit losses for the quarters ended June 30, 2024 and September 30, 2023, respectively. At September 30, 2024, the allowance for credit losses on loans to total loans outstanding was 0.95%, compared to 0.96% at both June 30, 2024 and September 30, 2023.
    Total deposits increased $23.4 million or 2.6% to $930.2 million at September 30, 2024, from $906.8 million at June 30, 2024, and increased $69.3 million or 8.1% from $860.9 million at September 30, 2023. Noninterest-bearing deposits increased $4.8 million or 3.8% to $129.7 million at September 30, 2024 compared to $124.9 million at June 30, 2024, and decreased $24.2 million or 15.7% compared to $153.9 million at September 30, 2023.    
        Total noninterest income increased $73 thousand or 6.3% to $1.2 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and increased $154 thousand or 14.2% compared to the quarter ended September 30, 2023.
    The loans-to-deposits ratio was 97% at September 30, 2024, compared to 98% at June 30, 2024 and 102% at September 30, 2023.    
        Total noninterest expense decreased $58 thousand or 0.7% to $7.7 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and decreased $31 thousand or 0.4% from compared to the quarter ended September 30, 2023.
    Total nonperforming loans decreased $420 thousand or 4.7% to $8.5 million at September 30, 2024, from $8.9 million at June 30, 2024, and increased $6.7 million or 381.8% from $1.8 million at September 30, 2023. Nonperforming loans to total loans was 0.94% and the allowance for credit losses on loans to total nonperforming loans was 101.13% at September 30, 2024.    
        The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at September 30, 2024.
           
             

    Operating Results

    Net interest income increased $425 thousand, or 5.7%, to $7.9 million for the quarter ended September 30, 2024, compared to $7.4 million for the quarter ended June 30, 2024, and decreased $295 thousand, or 3.6%, from $8.2 million for the quarter ended September 30, 2023.The increase from the prior quarter was primarily due to a higher average yield on interest-earning assets, particularly loans receivable, and an increase in the average balances of both loans receivable and interest-earning cash. This was partially offset by a more modest rise in the cost of funds, as higher cost earnings interest-bearing deposits decreased by the end of the third quarter of 2024, limiting the growth in funding costs compared to the prior quarter. The decrease in net interest income compared to the same quarter one year ago was primarily due to higher funding costs, specifically, increased rates on and balances of money market and certificate accounts, partially offset by an increase in the average yield earned on interest-earning assets.

    Interest income increased $799 thousand, or 5.7%, to $14.8 million for the quarter ended September 30, 2024, compared to $14.0 million for the quarter ended June 30, 2024, and increased $2.2 million, or 17.0%, from $12.7 million for the quarter ended September 30, 2023. The increase from the prior quarter was primarily due to a higher average balance of loans and interest-bearing cash, along with a 14 basis point increase in the average loan yield, reflecting higher rates on newly originated loans and upward adjustments to rates on existing variable rate loans. The increase in interest income compared to the same quarter last year was due primarily to higher average balances of loans and interest-bearing cash, a 41 basis point increase in the average yield on loans, a 20 basis point increase in the average yield on interest-bearing cash, and a seven basis point increase in the average yield on investments, partially offset by a decline in the average balance of investments.

    Interest income on loans increased $556 thousand, or 4.5%, to $12.9 million for the quarter ended September 30, 2024, compared to $12.3 million for the quarter ended June 30, 2024, and increased $1.4 million, or 11.9%, from $11.5 million for the quarter ended September 30, 2023. The average balance of total loans was $898.6 million for the quarter ended September 30, 2024, up from $891.9 million for the quarter ended June 30, 2024 and $862.4 million for the quarter ended September 30, 2023. The average yield on total loans was 5.70% for the quarter ended September 30, 2024, up from 5.56% for the quarter ended June 30, 2024 and 5.29% for the quarter ended September 30, 2023. The increase in the average loan yield during the current quarter, compared to both the prior quarter and the third quarter of 2023, was primarily due to the origination of new loans at higher interest rates. Additionally, variable-rate loans resetting to higher rates contributed to the increase in average yield compared to the third quarter of 2023. The increase in the average balance during the current quarter compared to the prior quarter was primarily due to growth in commercial and multifamily loans, manufactured housing loans and consumer loans, with the growth in consumer loans coming primarily from floating home loans. This was partially offset by a decline in construction and land loans. The average balances for commercial business loans and one-to-four family loans remained relatively flat from the second quarter of 2024. The increase in the average balance of loans during the current quarter compared to the third quarter of 2023 was primarily due to loan growth across all categories, except for one-to-four family loans, construction and land loans, and commercial business loans, with the largest decrease being in construction and land loans.

    Interest income on investments was $132 thousand for the quarter ended September 30, 2024, compared to $133 thousand for the quarter ended June 30, 2024, and $139 thousand for the quarter ended September 30, 2023. Interest income on interest-bearing cash increased $244 thousand to $1.8 million for the quarter ended September 30, 2024, compared to $1.6 million for the quarter ended June 30, 2024, and increased $788 thousand from $1.0 million for the quarter ended September 30, 2023. These increases were due to higher average balances of interest-bearing cash, with the increase from the same quarter in the prior year also resulting from a higher average yield.

    Interest expense increased $374 thousand, or 5.7%, to $7.0 million for the quarter ended September 30, 2024, from $6.6 million for the quarter ended June 30, 2024, and increased $2.4 million, or 54.2%, from $4.5 million for the quarter ended September 30, 2023. The increase in interest expense during the current quarter from the prior quarter was primarily the result of a $38.8 million increase in the average balance of savings and money market accounts, as well as higher average rates paid on these accounts, partially offset by a $13.9 million decrease in the average balance of certificate accounts. The increase in interest expense during the current quarter from the comparable period a year ago was primarily the result of a $9.8 million increase in the average balance of certificate accounts and a $148.1 million increase in the average balance of savings and money market accounts, as well as higher average rates paid on all interest-bearing deposits. This was partially offset by a $46.3 million decrease in the average balance of demand and NOW accounts and a $2.8 million decrease in the average balance of FHLB advances. The average cost of deposits was 2.74% for the quarter ended September 30, 2024, up from 2.67% for the quarter ended June 30, 2024 and 1.85% for the quarter ended September 30, 2023. The average cost of FHLB advances was 4.32% for both the quarters ended September 30, 2024 and June 30, 2024, and down from 4.38% for the quarter ended September 30, 2023.

    NIM (annualized) was 2.98% for the quarter ended September 30, 2024, up from 2.92% for the quarter ended June 30, 2024 and down from 3.38% for the quarter ended September 30, 2023. The increase in NIM from the prior quarter was result of an increase in interest income on interest-earning assets, partially offset by an increase in the cost of funding. The decrease in NIM from the quarter one year ago was primarily due to the cost of funding increasing at a faster pace than the yield earned on interest-earning assets, driven by the higher average balance of higher costing money market and certificate accounts.

    A provision for credit losses of $8 thousand was recorded for the quarter ended September 30, 2024, consisting of a provision for credit losses on loans of $106 thousand and a release of provision for credit losses on unfunded loan commitments of $98 thousand. This compared to a release of provision for credit losses of $109 thousand for the quarter ended June 30, 2024, consisting of a release of provision for credit losses on loans of $88 thousand and a release of provision for credit losses on unfunded loan commitments of $21 thousand, and a provision for credit losses of $75 thousand for the quarter ended September 30, 2023, consisting of a provision for credit losses on loans of $224 thousand and a release of the provision for credit losses on unfunded loan commitments of$149 thousand. The increase in the provision for credit losses for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 resulted primarily from growth in the loan portfolio and higher quantitative loss rates, which were influenced by a forecast of higher unemployment, and enhancements to the loss model, including an additional qualitative adjustment related to loan review. These adjustments were partially offset by decline in the balance of the construction loan portfolio, which typically has higher loss rates, and a decrease in the qualitative risk adjustment for construction loans as projects were completed and market conditions improved. Expected loss estimates consider various factors, such as market conditions, borrower -specific information, projected delinquencies, and the impact of economic conditions on borrowers’ ability to repay.

    Noninterest income increased $73 thousand, or 6.3%, to $1.2 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and increased $154 thousand, or 14.2%, compared to the quarter ended September 30, 2023. The increase from the prior quarter was primarily related to a $217 thousand upward adjustment in fair value of mortgage servicing rights and a $52 thousand increase in earnings from bank-owned life insurance (“BOLI”), both influenced by fluctuating market interest rates. These gains were partially offset by a $133 thousand decrease in service charges and fee income, which was elevated in the prior quarter due to the recovery of potential future lost fee income due to vendor error. Additionally, there was a $34 thousand decrease in net gain on sale of loans, due to lower sales volume, and a $30 thousand decrease in gain on disposal of assets due to insurance claims on the loss of fully depreciated assets in second quarter of 2024. The increase in noninterest income from the comparable period in 2023 was primarily due to an $98 thousand increase in earnings on BOLI due to market rate fluctuations, and an $179 thousand increase in the fair value adjustment on mortgage servicing rights due to changes in prepayment speeds, servicing costs, and discount rate. These increases were partially offset by a $72 thousand decrease in service charges and fee income primarily due to a volume incentive paid by Mastercard in 2023, a $36 thousand decrease in net gain on sale of loans for reason similar to those noted above, and a decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than we are replacing the loans. Additionally, mortgage servicing income decreased by $15 thousand compared to the third quarter of 2023. Loans sold during the quarter ended September 30, 2024, totaled $2.4 million, compared to $4.0 million and $4.4 million of loans sold during the quarters ended June 30, 2024 and September 30, 2023, respectively.

    Noninterest expense decreased $58 thousand, or 0.7%, to $7.7 million for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, and decreased $31 thousand, or 0.4%, from the quarter ended September 30, 2023. The decrease from the quarter ended June 30, 2024 was primarily a result of lower a $189 thousand decrease in salaries and benefits, primarily due to lower incentive compensation accruals. This was partially offset by an $157 thousand increase in data processing expenses, largely due to a vendor reimbursement received in the previous quarter for software implementation costs. Additionally, regulatory assessments declined $31 thousand due to a lower accrual for exam costs. Compared to same quarter in 2023, the decrease in noninterest expense was primarily due to lower operations, data processing, and occupancy expenses, which were partially offset by a $321 thousand increase in salaries and benefits. Operations expenses decreased due to reduction in loan originations costs, office expenses, marketing costs, legal fees, and charitable contributions, partially offset by an operational loss from a fraudulently obtained loan charged off in the third quarter of 2024. Data processing expenses decreased due to one-time costs related to new technology implemented in 2023, while occupancy expenses decreased primarily due fully amortized leasehold improvements. The increase in salaries and benefits compared to the third quarter of 2023 reflected higher incentive compensation, medical expenses, retirement plan costs, and directors’ fees (due to the addition of a new director), partially offset by lower salaries from a restructuring of positions at the end of 2023.

    Balance Sheet Review, Capital Management and Credit Quality

    Assets at September 30, 2024 totaled $1.10 billion, an increase from $1.07 billion at June 30, 2024 and $1.03 billion at September 30, 2023. The increase in total assets from June 30, 2024 and one year ago was primarily due to an increase in cash and cash equivalents and in loans held-for-portfolio.

    Cash and cash equivalents increased $13.8 million, or 10.2%, to $148.9 million at September 30, 2024, compared to $135.1 million at June 30, 2024, and increased $47.0 million, or 46.2%, from $101.9 million at September 30, 2023. The increase from the prior quarter and from one year ago was primarily due to the increase in deposits exceeding the increase in loans held-for-portfolio.

    Investment securities increased $28 thousand, or 0.3%, to $10.2 million at September 30, 2024, compared to $10.1 million at June 30, 2024, and increased $17 thousand, or 0.2%, from $10.2 million at September 30, 2023. Held-to-maturity securities totaled $2.1 million at both September 30, 2024 and June 30, 2024, and totaled $2.2 million at September 30, 2023. Available-for-sale securities totaled $8.0 million at September 30, 2024, June 30, 2024 and September 30, 2023.

    Loans held-for-portfolio were $901.7 million at September 30, 2024, compared to $889.3 million at June 30, 2024 and $875.4 million at September 30, 2023. The increase from to June 30, 2024, primarily resulted from growth in one-to-four family home loans, commercial and multifamily loans, as well as manufactured home and floating home loans, partially offset by decreases in construction and land loans and home equity loans. The increase in one-to-four family home loans was primarily due to new originations exceeding prepayments during the quarter, while the increase in commercial and multifamily loans primarily resulted from conversion of construction projects to permanent financing. The increase in manufactured home loans and floating home loans relates to continued strong demand for this type of financing in our market. The decrease in construction and land loans was primarily due to project completions and reduced demand caused by higher interest rates, which limited new financing opportunities. The decrease in home equity loans reflected normal payment fluctuations. Compared to September 30, 2024, the overall increase in loans held-for-portfolio was due to sustained strong loan demand and slower prepayment activity, with increases primarily related to commercial and multifamily loans, home equity loans, manufactured home loans and floating home loans.

    Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, decreased $420 thousand, or 4.7%, to $8.6 million at September 30, 2024, from $9.0 million at June 30, 2024 and increased $6.3 million, or 268.2%, from $2.3 million at September 30, 2023. The decrease in NPAs from June 30, 2024 was primarily due to the payoff of three loans totaling $175 thousand and one loan totaling $421 thousand returning to accrual status, partially offset by the addition of eight loans totaling $260 thousand to nonaccrual. The increase in NPAs from one year ago was primarily due to the placement of an additional $7.7 million of loans on nonaccrual status, which included a $3.7 million matured commercial real estate loan where the borrower is in the process of securing financing from another lender, a $2.4 million floating home loan, and a $985 thousand commercial real estate loan, all of which are well secured, and one manufactured home loan of $115 thousand that was repossessed in the first quarter of 2024. These additions were partially offset by the payoff of seven loans totaling $877 thousand, and normal payment amortization.

    NPAs to total assets were 0.78%, 0.84% and 0.23% at September 30, 2024, June 30, 2024 and September 30, 2023, respectively. The allowance for credit losses on loans to total loans outstanding was 0.95% at September 30, 2024, compared to 0.96% at both June 30, 2024 and September 30, 2023. Net loan charge-offs for the third quarter of 2024 totaled $14 thousand, compared to $17 thousand for the second quarter of 2023, and $3 thousand for the third quarter of 2023.

    The following table summarizes our NPAs at the dates indicated (dollars in thousands):

      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Nonperforming Loans:                  
    One-to-four family $ 745     $ 822     $ 835     $ 1,108     $ 1,137  
    Home equity loans   338       342       83       84       86  
    Commercial and multifamily   4,719       5,161       4,747       —       306  
    Construction and land   25       28       29       —       78  
    Manufactured homes   230       136       166       228       151  
    Floating homes   2,377       2,417       3,192       —       —  
    Commercial business   23       —       —       2,135       —  
    Other consumer   32       3       1       1       4  
    Total nonperforming loans   8,489       8,909       9,053       3,556       1,762  
    OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       575       575       575  
    Manufactured homes   115       115       115       —       —  
    Total OREO and repossessed assets   115       115       690       575       575  
    Total NPAs $ 8,604     $ 9,024     $ 9,743     $ 4,131     $ 2,337  
                       
    Percentage of Nonperforming Loans:                  
    One-to-four family   8.7 %     9.1 %     8.5 %     26.9 %     48.7 %
    Home equity loans   3.9       3.8       0.9       2.0       3.7  
    Commercial and multifamily   54.8       57.2       48.7       —       13.1  
    Construction and land   0.3       0.3       0.3       —       3.3  
    Manufactured homes   2.7       1.5       1.7       5.5       6.4  
    Floating homes   27.6       26.8       32.8       —       —  
    Commercial business   0.3       —       —       51.7       —  
    Other consumer   0.4       —       —       —       0.2  
    Total nonperforming loans   98.7       98.7       92.9       86.1       75.4  
    Percentage of OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       5.9       13.9       24.6  
    Manufactured homes   1.3       1.3       1.2       —       —  
    Total OREO and repossessed assets   1.3       1.3       7.1       13.9       24.6  
    Total NPAs   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
     

    The following table summarizes the allowance for credit losses at the dates and for the periods indicated (dollars in thousands, unaudited):

      At or For the Quarter Ended:
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Allowance for Credit Losses on Loans                  
    Balance at beginning of period $ 8,493     $ 8,598     $ 8,760     $ 8,438     $ 8,217  
    (Release of) Provision for credit losses during the period   106       (88 )     (106 )     337       224  
    Net charge-offs during the period   (14 )     (17 )     (56 )     (15 )     (3 )
    Balance at end of period $ 8,585     $ 8,493     $ 8,598     $ 8,760     $ 8,438  
    Allowance for Credit Losses on Unfunded Loan Commitments                  
    Balance at beginning of period $ 245     $ 266     $ 193     $ 557     $ 706  
    (Release of) Provision for credit   (98 )     (21 )     73       (364 )     (149 )
    Balance at end of period   147       245       266       193       557  
    Allowance for Credit Losses $ 8,732     $ 8,738     $ 8,864     $ 8,953     $ 8,995  
    Allowance for credit losses on loans to total loans   0.95 %     0.96 %     0.96 %     0.98 %     0.96 %
    Allowance for credit losses to total loans   0.97 %     0.98 %     0.99 %     1.00 %     1.03 %
    Allowance for credit losses on loans to total nonperforming loans   101.13 %     95.33 %     94.97 %     246.34 %     478.89 %
    Allowance for credit losses to total nonperforming loans   102.86 %     98.08 %     97.91 %     251.77 %     510.50 %
     

    Deposits increased $23.4 million, or 2.6%, to $930.2 million at September 30, 2024, from $906.8 million at June 30, 2024 and increased $69.3 million, or 8.1%, from $860.9 million at September 30, 2023. The increase in deposits compared to the prior quarter-end was primarily a result of an increase of $17.0 million related to one new depositor relationship, as well as a $5.3 million increase in related party money market deposits. Compared to a year ago, the increase was primarily a result of an increase in certificate accounts and money market accounts, including $50.2 million of related party deposits, which helped fund organic loan growth. These increases were partially offset by decreases in noninterest-bearing and interest-bearing demand accounts and savings accounts, as interest rate sensitive clients shifted funds from lower-cost deposits, such as noninterest-bearing deposits, into higher rate money market and time deposits. Noninterest-bearing deposits increased $4.8 million, or 3.8%, to $129.7 million at September 30, 2024, compared to $124.9 million at June 30, 2024 and decreased $24.2 million, or 15.7%, from $153.9 million at September 30, 2023. Noninterest-bearing deposits represented 14.0%, 13.8% and 17.9% of total deposits at September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

    FHLB advances totaled $40.0 million at each of September 30, 2024, June 30, 2024, and September 30, 2023. FHLB advances are primarily used to support organic loan growth and to maintain liquidity ratios in line with our asset/liability objectives. FHLB advances outstanding at September 30, 2024 had maturities ranging from late 2024 through early 2028. Subordinated notes, net totaled $11.7 million at each of September 30, 2024, June 30, 2024 and September 30, 2023.

    Stockholders’ equity totaled $102.2 million at September 30, 2024, an increase of $892 thousand, or 0.9%, from $101.3 million at June 30, 2024, and an increase of $2.0 million, or 2.0%, from $100.2 million at September 30, 2023. The increase in stockholders’ equity from June 30, 2024 was primarily the result of $1.2 million of net income earned during the current quarter and a $127 thousand decrease in accumulated other comprehensive loss, net of tax, partially offset by the payment of $487 thousand in cash dividends to the Company’s stockholders.

    Sound Financial Bancorp, Inc., a bank holding company, is the parent company of Sound Community Bank, which is headquartered in Seattle, Washington and has full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow and University Place. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with one loan production office located in the Madison Park neighborhood of Seattle. For more information, please visit www.soundcb.com.

    Forward-Looking Statements Disclaimer

    When used in this press release and in documents filed or furnished by Sound Financial Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors listed below or because of other factors that we cannot foresee that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made.

    Factors which could cause actual results to differ materially, include, but are not limited to: adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation or deflation, a recession or slowed economic growth, as well as supply chain disruptions; changes in the interest rate environment, including increases and decreases in the Board of Governors of the Federal Reserve System (the Federal Reserve) benchmark rate and the duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; changes in consumer spending, borrowing and savings habits; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; secondary market conditions for loans; expectations regarding key growth initiatives and strategic priorities; environmental, social and governance goals and targets; results of examinations of the Company or the Bank by their regulators; increased competition; changes in management’s business strategies; legislative changes; changes in the regulatory and tax environments in which the Company operates; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on our third-party vendors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with or furnished to the SEC, which are available at www.soundcb.com and on the SEC’s website at www.sec.gov. The risks inherent in these factors could cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company and could negatively affect the Company’s operating and stock performance.

    The Company does not undertake—and specifically disclaims any obligation—to revise any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statement.


    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)

        For the Quarter Ended
        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Interest income   $ 14,838   $ 14,039     $ 13,760     $ 13,337     $ 12,686  
    Interest expense     6,965     6,591       6,300       5,770       4,518  
    Net interest income     7,873     7,448       7,460       7,567       8,168  
    Provision for (release of) credit losses     8     (109 )     (33 )     (27 )     75  
    Net interest income after provision for (release of) credit losses     7,865     7,557       7,493       7,594       8,093  
    Noninterest income:                    
    Service charges and fee income     628     761       612       576       700  
    Earnings on bank-owned life insurance     186     134       177       222       88  
    Mortgage servicing income     280     279       282       288       295  
    Fair value adjustment on mortgage servicing rights     101     (116 )     (65 )     (96 )     (78 )
    Net gain on sale of loans     40     74       90       76       76  
    Other income     —     30       —       —       —  
    Total noninterest income     1,235     1,162       1,096       1,066       1,081  
    Noninterest expense:                    
    Salaries and benefits     4,469     4,658       4,543       3,802       4,148  
    Operations     1,540     1,569       1,457       1,537       1,625  
    Regulatory assessments     189     220       189       198       183  
    Occupancy     414     397       444       458       458  
    Data processing     1,067     910       1,017       1,311       1,296  
    Net (gain) loss on OREO and repossessed assets     —     (17 )     6       —       —  
    Total noninterest expense     7,679     7,737       7,656       7,306       7,710  
    Income before provision for income taxes     1,421     982       933       1,354       1,464  
    Provision for income taxes     267     187       163       143       295  
    Net income   $ 1,154   $ 795     $ 770     $ 1,211     $ 1,169  
     

    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)

        For the Nine Months Ended September 30
          2024       2023  
    Interest income   $ 42,638     $ 37,273  
    Interest expense     19,856       10,990  
    Net interest income     22,782       26,283  
    (Release of) provision for credit losses     (134 )     (246 )
    Net interest income after (release of) provision for credit losses     22,916       26,529  
    Noninterest income:        
    Service charges and fee income     2,001       1,951  
    Earnings on bank-owned life insurance     498       957  
    Mortgage servicing income     841       891  
    Fair value adjustment on mortgage servicing rights     (81 )     (123 )
    Net gain on sale of loans     205       264  
    Other income     30       —  
    Total noninterest income     3,494       3,940  
    Noninterest expense:        
    Salaries and benefits     13,670       13,333  
    Operations     4,566       4,557  
    Regulatory assessments     598       490  
    Occupancy     1,255       1,352  
    Data processing     2,995       3,077  
    Net (gain) loss on OREO and repossessed assets     (10 )     13  
    Total noninterest expense     23,074       22,822  
    Income before provision for income taxes     3,336       7,647  
    Provision for income taxes     617       1,419  
    Net income   $ 2,719     $ 6,228  
     

    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, unaudited)

        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    ASSETS                    
    Cash and cash equivalents   $ 148,930     $ 135,111     $ 137,977     $ 49,690     $ 101,890  
    Available-for-sale securities, at fair value     8,032       7,996       8,115       8,287       7,980  
    Held-to-maturity securities, at amortized cost     2,139       2,147       2,157       2,166       2,174  
    Loans held-for-sale     65       257       351       603       1,153  
    Loans held-for-portfolio     901,733       889,274       897,877       894,478       875,434  
    Allowance for credit losses – loans     (8,585 )     (8,493 )     (8,598 )     (8,760 )     (8,438 )
    Total loans held-for-portfolio, net     893,148       880,781       889,279       885,718       866,996  
    Accrued interest receivable     3,705       3,413       3,617       3,452       3,415  
    Bank-owned life insurance, net     22,363       22,172       22,037       21,860       21,638  
    Other real estate owned (“OREO”) and other repossessed assets, net     115       115       690       575       575  
    Mortgage servicing rights, at fair value     4,665       4,540       4,612       4,632       4,681  
    Federal Home Loan Bank (“FHLB”) stock, at cost     2,405       2,406       2,406       2,396       2,783  
    Premises and equipment, net     4,807       4,906       6,685       5,240       5,204  
    Right-of-use assets     3,779       4,020       4,259       4,496       4,732  
    Other assets     6,777       6,995       4,500       6,106       6,955  
    TOTAL ASSETS   $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221     $ 1,030,176  
    LIABILITIES                    
    Interest-bearing deposits   $ 800,480     $ 781,854     $ 788,217     $ 699,813     $ 706,954  
    Noninterest-bearing deposits     129,717       124,915       128,666       126,726       153,921  
    Total deposits     930,197       906,769       916,883       826,539       860,875  
    Borrowings     40,000       40,000       40,000       40,000       40,000  
    Accrued interest payable     908       760       719       817       588  
    Lease liabilities     4,079       4,328       4,576       4,821       5,065  
    Other liabilities     9,711       9,105       9,578       9,563       9,794  
    Advance payments from borrowers for taxes and insurance     2,047       812       2,209       1,110       1,909  
    Subordinated notes, net     11,749       11,738       11,728       11,717       11,707  
    TOTAL LIABILITIES     998,691       973,512       985,693       894,567       929,938  
    STOCKHOLDERS’ EQUITY:                    
    Common stock     25       25       25       25       25  
    Additional paid-in capital     28,296       28,198       28,110       27,990       28,112  
    Retained earnings     74,840       74,173       73,907       73,627       73,438  
    Accumulated other comprehensive loss, net of tax     (922 )     (1,049 )     (1,050 )     (988 )     (1,337 )
    TOTAL STOCKHOLDERS’ EQUITY     102,239       101,347       100,992       100,654       100,238  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,100,930     $ 1,074,859     $ 1,086,685     $ 995,221     $ 1,030,176  
     

    KEY FINANCIAL RATIOS
    (unaudited)

        For the Quarter Ended
        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Annualized return on average assets     0.42 %     0.30 %     0.29 %     0.46 %     0.46 %
    Annualized return on average equity     4.50 %     3.17 %     3.06 %     4.78 %     4.60 %
    Annualized net interest margin(1)     2.98 %     2.92 %     2.95 %     3.04 %     3.38 %
    Annualized efficiency ratio(2)     84.31 %     89.86 %     89.48 %     84.63 %     83.36 %
    (1)   Net interest income divided by average interest earning assets.
    (2)   Noninterest expense divided by total revenue (net interest income and noninterest income).
     

    PER COMMON SHARE DATA
    (unaudited)

        At or For the Quarter Ended
        September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023   September 30, 2023
    Basic earnings per share   $ 0.45     $ 0.31     $ 0.30     $ 0.47     $ 0.45  
    Diluted earnings per share   $ 0.45     $ 0.31     $ 0.30     $ 0.47     $ 0.45  
    Weighted-average basic shares outstanding     2,544,233       2,540,538       2,539,213       2,542,175       2,553,773  
    Weighted-average diluted shares outstanding     2,569,368       2,559,015       2,556,958       2,560,656       2,571,808  
    Common shares outstanding at period-end     2,564,095       2,557,284       2,558,546       2,549,427       2,568,054  
    Book value per share   $ 39.87     $ 39.63     $ 39.47     $ 39.48     $ 39.03  
     

    AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
    (Dollars in thousands, unaudited)

    The following tables present, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Income and yields on tax-exempt obligations have not been computed on a tax equivalent basis. All average balances are daily average balances. Nonaccrual loans have been included in the table as loans carrying a zero yield for the period they have been on nonaccrual (dollars in thousands).

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average
    Outstanding
    Balance    		   Interest
    Earned/
    Paid    		   Yield/Rate   Average Outstanding Balance   Interest
    Earned/
    Paid    		   Yield/Rate   Average Outstanding Balance   Interest
    Earned/
    Paid    		   Yield/Rate
    Interest-Earning Assets:                                  
    Loans receivable $ 898,570     $ 12,876   5.70 %   $ 891,863     $ 12,320   5.56 %   $ 862,397     $ 11,505   5.29 %
    Interest-earning cash   138,240       1,830   5.27 %     120,804       1,586   5.28 %     81,616       1,042   5.07 %
    Investments   13,806       132   3.80 %     13,935       133   3.84 %     14,793       139   3.73 %
    Total interest-earning assets $ 1,050,616       14,838   5.62 %     1,026,602     $ 14,039   5.50 %   $ 958,806       12,686   5.25 %
    Interest-Bearing Liabilities:                                  
    Savings and money market accounts $ 340,281       2,688   3.14 %   $ 301,454       2,115   2.82 %   $ 192,214       720   1.49 %
    Demand and NOW accounts   148,252       151   0.41 %     153,739       148   0.39 %     194,561       173   0.35 %
    Certificate accounts   303,632       3,524   4.62 %     317,496       3,731   4.73 %     293,820       2,984   4.03 %
    Subordinated notes   11,745       168   5.69 %     11,735       168   5.76 %     11,703       168   5.70 %
    Borrowings   40,000       434   4.32 %     40,000       429   4.31 %     42,815       473   4.38 %
    Total interest-bearing liabilities $ 843,910       6,965   3.28 %   $ 824,424       6,591   3.22 %   $ 735,113       4,518   2.44 %
    Net interest income/spread     $ 7,873   2.34 %       $ 7,448   2.28 %       $ 8,168   2.81 %
    Net interest margin         2.98 %           2.92 %           3.38 %
                                       
    Ratio of interest-earning assets to interest-bearing liabilities   124 %             125 %             130 %        
    Noninterest-bearing deposits $ 132,762             $ 128,878             $ 151,298          
    Total deposits   924,927     $ 6,363   2.74 %     901,567     $ 5,994   2.67 %     831,893     $ 3,877   1.85 %
    Total funding (1)   976,672       6,965   2.84 %     953,302       6,591   2.78 %     886,411       4,518   2.02 %
    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
     
      Nine Months Ended
      September 30, 2024   September 30, 2023
      Average
    Outstanding
    Balance    		   Interest
    Earned/
    Paid    		   Yield/Rate   Average
    Outstanding
    Balance    		   Interest
    Earned/
    Paid    		   Yield/Rate
    Interest-Earning Assets:                      
    Loans receivable $ 895,300     $ 37,429   5.58 %   $ 865,357     $ 34,437   5.32 %
    Interest-earning cash   122,194       4,832   5.28 %     70,094       2,447   4.67 %
    Investments   12,607       377   3.99 %     13,962       389   3.73 %
    Total interest-earning assets $ 1,030,101       42,638   5.53 %   $ 949,413       37,273   5.25 %
    Interest-Bearing Liabilities:                      
    Savings and money market accounts $ 308,845       6,669   2.88 %   $ 173,319       1,197   0.92 %
    Demand and NOW accounts   153,897       440   0.38 %     216,753       587   0.36 %
    Certificate accounts   312,176       10,950   4.69 %     273,564       7,182   3.51 %
    Subordinated notes   11,735       504   5.74 %     11,693       504   5.76 %
    Borrowings   40,000       1,293   4.32 %     45,280       1,520   4.49 %
    Total interest-bearing liabilities $ 826,653       19,856   3.21 %   $ 720,609       10,990   2.04 %
    Net interest income/spread     $ 22,782   2.32 %       $ 26,283   3.21 %
    Net interest margin         2.95 %           3.70 %
                           
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             132 %        
    Noninterest-bearing deposits $ 131,365             $ 161,051          
    Total deposits   906,283     $ 18,059   2.66 %     824,687     $ 8,966   1.45 %
    Total funding (1)   958,018       19,856   2.77 %     881,660       10,990   1.67 %
    (1)   Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
     

    LOANS
    (Dollars in thousands, unaudited)

        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Real estate loans:                    
    One-to-four family   $ 271,702     $ 268,488     $ 279,213     $ 279,448     $ 280,556  
    Home equity     25,199       26,185       24,380       23,073       21,313  
    Commercial and multifamily     358,587       342,632       324,483       315,280       304,252  
    Construction and land     85,724       96,962       111,726       126,758       118,619  
    Total real estate loans     741,212       734,267       739,802       744,559       724,740  
    Consumer Loans:                    
    Manufactured homes     40,371       38,953       37,583       36,193       34,652  
    Floating homes     86,155       81,622       84,237       75,108       73,716  
    Other consumer     18,266       18,422       18,847       19,612       18,710  
    Total consumer loans     144,792       138,997       140,667       130,913       127,078  
    Commercial business loans     17,481       17,860       19,075       20,688       25,033  
    Total loans     903,485       891,124       899,544       896,160       876,851  
    Less:                    
    Premiums     736       754       808       829       850  
    Deferred fees, net     (2,488 )     (2,604 )     (2,475 )     (2,511 )     (2,267 )
    Allowance for credit losses – loans     (8,585 )     (8,493 )     (8,598 )     (8,760 )     (8,438 )
    Total loans held-for-portfolio, net   $ 893,148     $ 880,781     $ 889,279     $ 885,718     $ 866,996  
     

    DEPOSITS
    (Dollars in thousands, unaudited)

        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Noninterest-bearing demand   $ 129,717     $ 124,915     $ 128,666     $ 126,726     $ 153,921  
    Interest-bearing demand     148,740       152,829       159,178       168,346       185,441  
    Savings     61,455       63,368       65,723       69,461       76,729  
    Money market(1)     285,655       253,873       241,976       154,044       143,558  
    Certificates     304,630       311,784       321,340       307,962       301,226  
    Total deposits   $ 930,197     $ 906,769     $ 916,883     $ 826,539     $ 860,875  
    (1)   Includes $5.0 million of brokered deposits at December 31, 2023.
     

    CREDIT QUALITY DATA
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Total nonperforming loans   $ 8,489     $ 8,909     $ 9,053     $ 3,556     $ 1,762  
    OREO and other repossessed assets     115       115       690       575       575  
    Total nonperforming assets   $ 8,604     $ 9,024     $ 9,743     $ 4,131     $ 2,337  
    Net charge-offs during the quarter   $ (14 )   $ (17 )   $ (56 )   $ (15 )   $ (3 )
    Provision for (release of) credit losses during the quarter     8       (109 )     (33 )     (27 )     75  
    Allowance for credit losses – loans     8,585       8,493       8,598       8,760       8,438  
    Allowance for credit losses – loans to total loans     0.95 %     0.96 %     0.96 %     0.98 %     0.96 %
    Allowance for credit losses – loans to total nonperforming loans     101.13 %     95.33 %     94.97 %     246.34 %     478.89 %
    Nonperforming loans to total loans     0.94 %     1.00 %     1.01 %     0.40 %     0.20 %
    Nonperforming assets to total assets     0.78 %     0.84 %     0.90 %     0.42 %     0.23 %
     

    OTHER STATISTICS
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
                         
    Total loans to total deposits     97.13 %     98.27 %     98.11 %     108.42 %     101.86 %
    Noninterest-bearing deposits to total deposits     13.95 %     13.78 %     14.03 %     15.33 %     17.88 %
                         
    Average total assets for the quarter   $ 1,095,404     $ 1,070,579     $ 1,062,036     $ 1,033,985     $ 1,005,223  
    Average total equity for the quarter   $ 102,059     $ 100,961     $ 101,292     $ 100,612     $ 100,927  
                                             

    Contact

    Financial:      
    Wes Ochs
    Executive Vice President/CFO
    (206) 436-8587
     
    Media:      
    Laurie Stewart
    President/CEO
    (206) 436-1495

    The MIL Network –

  • MIL-OSI Economics: Media Release: Australia wins bid to host 2026 global carbon capture conference – Australian Energy Producers

    Source: Australian Petroleum Production & Exploration Association

    Headline: Media Release: Australia wins bid to host 2026 global carbon capture conference – Australian Energy Producers

    The Australian oil and gas sector’s leadership in carbon capture, utilisation and storage (CCUS) – a key emissions reductions technology – is set to be showcased on the world stage.

    Australian Energy Producers is pleased to announce it will co-host the world’s leading CCUS conference in Perth in 2026, in partnership with the CSIRO, CO2CRC and the Department of Climate Change, Energy, the Environment and Water.

    The Greenhouse Gas Control Technologies (GHGT) Conference, run by the IEA Greenhouse Gas R&D Programme, brings together over 1,000 CCUS researchers, industry leaders, government officials, and stakeholders from around the world to discuss and share the latest developments with the technology.

    Australian Energy Producers Chief Executive Samantha McCulloch said Australia’s selection to host GHGT-18 reinforced its standing as a global leader in CCUS research, development and deployment.  

    “Australia has two of the largest carbon capture and storage (CCS) projects operating globally – Chevron’s Gorgon Project and the Santos and Beach Energy joint venture Moomba Project,” she said.

    “These projects are today storing emissions equivalent to taking one million cars off the road each year.

    “CCUS is a key technology in efforts to reach net zero in Australia and the region.

    “The International Energy Agency, Intergovernmental Panel on Climate Change, and CSIRO have all found that there is no pathway to net zero without CCUS.”

    The 2026 event will be the third time Australia has hosted the global conference, having hosted it in Cairns in 2000 and Melbourne in 2018.

    The announcement last week in Canada during the closing session of GHGT-17 coincided with a major CCUS milestone for Australia, with the Moomba CCS Project achieving first injection and full ramp up.

    “Australia has a comparative advantage in CCUS, with world class geology, industry experience, and strong links with regional trading partners looking to collaborate on CCUS,” Ms McCulloch said.

    “Scaling up CCUS is an opportunity to not just reduce emissions but also create new jobs and attract new investment.”

    Australia’s hosting of the conference is supported by Business Events Perth, reflecting the opportunity for GHGT-18 to amplify Western Australia’s global standing as a premier destination for impactful global events.

    Contact: 0401 839 227

    MIL OSI Economics –

  • MIL-Evening Report: Forum troika’s visit highlights value of regionalism for New Caledonia

    ANALYSIS: By Patrick Decloitre, RNZ Pacific correspondent French Pacific desk

    As a three-day fact-finding mission from a group of Pacific leaders drew to a close in New Caledonia, and with the outcomes report not expected before next year, the visit to the riot-hit French Pacific territory seems to have triggered a new sense of awareness locally about the values of Pacific regional mechanisms of “talanoa” embodied by the Pacific Islands Forum (PIF).

    Local President Louis Mapou stressed on several occasions during the visit that New Caledonia’s situation was the “subject of much attention” in the Pacific region.

    He suggested that one of the reasons for this could be because of a potential “spillover” effect that could “jeopardise cohesion in the Pacific”.

    However, Mapou also stressed that he had received the message conveyed by the PIF “Troika-Plus” group that “they’re ready to take part in [New Caledonia’s] reconstruction”.

    ‘New Caledonia’s regional integration in its region’
    Mapou said that one of the recurrent themes during the PIF visit was “New Caledonia’s regional integration in its region”.

    “Whatever might be said, in many ways, New Caledonia does not know its [Pacific] region very well. Because it has this affiliation relationship to Europe and France that has prevailed over all these years,” he told local media.

    “So, in a certain way, we’re just discovering our region. And in this process, the Pacific Islands Forum could bring a sort of leverage,” he said.

    Kanaky New Caledonia, as well as French Polynesia — both French Pacific entities — became full members of the Pacific Islands Forum in 2016, after several years of “associate members” status.

    Mapou said New Caledonia’s current status vis-à-vis France was mentioned during talks with the PIF mission.

    “I spoke with them about obstacles that should be removed, that are directly related to our current status. This is part of topics on which we should be working in future,” he said.

    “They’re very open-minded, they don’t have any preconceived ideas, they’re happy to talk equally about the concepts of independence, just as they are for keeping [New Caledonia] within the French Republic,” he revealed.

    One of the unexpected outcomes, beyond the specific fact-finding mission that brought this PIF “Troika-Plus” leaders’ delegation to New Caledonia, seems to have underlined the values of regionalism, as well as New Caledonia’s long-awaited and genuine integration in its “regional environment”.

    These values seem to have been recognised by all sides of New Caledonia’s political spectrum, as well as all walks of life within the civil, economic, educational and religious society.

    PIF’s “Troika-Plus” leaders meet with Southern Province President Sonia Backès (third from left) at SPC headquarters last Monday. Image: PIF/RNZ Pacific

    Pacific diversity in status
     During the past few days, informal exchanges with the Pacific leaders have also allowed New Caledonia’s authorities to share and compare possible ways forward regarding the territory’s political status.

    “They readily exchanged their own experiences with our government. The Cook Islands, which is a self-governing state in ‘free association’ with New Zealand; Tonga, which has never been colonised; and the Solomon Islands, who have also undergone inter-ethnic conflicts and where the young population was also involved. And Fiji, which obtained independence (in 1970), had decided to withdraw from the Commonwealth and is finally re-discussing its link with Great Britain,” Mapou briefed local media on Tuesday.

    The leaders spent three days (October 27-29) in the French Pacific territory to gather information on the ground, after destructive riots broke out in May, resulting in 13 deaths and extensive economic damage estimated at €2.2 billion.

    During the three days, the PIF leaders met a wide range of political, business, religious, and civil society leaders to get a first-hand account of the situation.

    On Tuesday, the “plus” component of the troika, Fiji Prime Minister Sitiveni Rabuka, reiterated the mission’s assigned mantra in a manner of conclusion to their mission.

    “We were here to understand and make recommendations. We have heard many extremely different attitudes. We hope it will be possible to find a solution for the people and the government,” Rabuka told religious leaders.

    Bitterness from civil society
     The long series of talks, within a particularly tight schedule, also allowed groups within New Caledonia’s civil society — including traditional chiefs, youth, human rights activists, educationists, mayors and women — to express their views directly during the Pacific leaders’ visit.

    Some of these groups also took the opportunity to point out that they were not always listened to in other circumstances.

    “Today, peace has just been through a rough episode. And we, women, are being asked to help. But when was the last time we were heard?

    “We’ve already said women should be part of all levels of decision-making, including on matters of dealing with violence and access for women to economic empowerment.

    “We were ignored. And then, when fire breaks out, we’re being asked for help because this is the foundation of Pacific values,” said Sonia Tonga, the president of the Oceania Union of Francophone Women, which groups women’s groups from New Caledonia, French Polynesia, Wallis-and-Futuna and Vanuatu.

    Talking about the youth, she said there was an “ill-being”, “they don’t recognise themselves in this system, including for education. We’re trying to fit an Oceanian society into a framework that has not been designed for them.

    “When will we be heard in our country?”.

    As part of talks with church leaders, it was also pointed out that there were benefits from sharing experiences with Pacific leaders.

    “I’ve been many times in Fiji, Tonga, the Solomon Islands, Vanuatu and other Pacific islands. They too have had their hard times.

    “And they too are familiar with the experience of violence which is difficult to bring back to a path of dialogue,” said 80-year-old Nouméa Catholic Archbishop Michel-Marie Calvet, a respected figure.

    In terms of earlier crises in the Pacific region, among PIF member island states, in the early 2000s, civil unrest occurred in both Fiji and the Solomon Islands, with shops being targeted and looted.

    Under Pacific Islands Forum mechanisms, especially the declaration of Biketawa, this prompted in 2003 the setting up of “RAMSI” (Regional Assistance Mission to Solomon Islands), with mostly Australia and New Zealand military and police as its main contributors, with additional input from other Pacific island countries.

    In Fiji, the mission to defuse the crisis, associated with an attempted coup and a MPs hostage situation within Parliament buildings in May 2000, was mainly achieved by the Republic of Fiji Military Forces (RFMF) through protracted negotiations and without violence.

    Forum “Troika-Plus” leaders in New Caledonia conducting a fact-finding mission to assess the situation on ground. Image: X /@ForumSEC/RNZ Pacific

    Supporting Pacific dialogue
    In the political sphere, there was a recognition of the benefits of a Pacific perspective.

    “There is a Pacific tradition of dialogue and talanoa. So, I think [the PIF leaders] can invite pro-independence parties to come to the [negotiating] table,” said New Caledonia’s Mayors’ Association president Pascal Vittori.

    “We’re actually expecting PIF will back this notion of dialogue — that’s what’s important now,” he told local media.

    Sonia Backès, one of the staunchest defenders of New Caledonia remaining part of France, told reporters on Monday: “We didn’t ask for this [mission]. Now we’re waiting for this (troika) report based on their observing mission.

    “We all know that there are biased views on the part of some, one way or the other.

    “So we hope the final report will be as fair and neutral as possible so as not to add fuel to the fire.”

    Following their visit to New Caledonia and based on the information gathered, the Forum “Troika-Plus” leaders are expected to compile a “comprehensive report” to be submitted to the next annual Forum Leaders’ Summit in the Solomon Islands in 2025.

    “The terms of reference of this mission were discussed beforehand between the government of New Caledonia, the Pacific Islands Forum and the (French) State. We all agreed that what was most important was to have an assessment of the situation.

    “There is a need to provide information to the public so that it is an informed opinion leader. It’s important in those times of misinformation and manipulation from one side or the other,” French ambassador for the Pacific Véronique Roger-Lacan told public broadcaster NC la 1ère TV on Tuesday evening.

    Rioting damage in Nouméa’s Ducos industrial zone. Image: LNC TV/RNZ Pacific

    Business sector now needs Pacific market overtures
     Even the business sector now seems to believe that, as a result of the widespread destruction caused by the riots, which has left more than 800 companies burnt down and looted, as well as thousands jobless, the wider Pacific region has now become a new potentially attractive market.

    “Our local market has just shrunk considerably and so we will need to find new openings for our products. In that perspective, our cooperation with the Pacific is very, very strategic”, said business leaders association MEDEF-NC president Mimsy Daly.

    She had once again presented a detailed view of the widespread devastation caused by the recent riots and those who took part.

    “‘Were they aware of what they were doing?’ is one of the questions I was asked,” she wrote on social networks after her encounter with the “Troika-Plus”.

    “A logical question when you know that what has been destroyed equals about 70 percent of the GDP of the Cook Islands, 100 percent of the GDP of the Solomon Islands and 40 percent of the GDP of Fiji.”

    But she admitted the response to this complex question was “primordial” and “every light will have to be shed on the matter”.

    In a wrap-up of the three days, President Mapou held a final meeting with the group on Tuesday.

    Wide circle of ‘concertation’ needed
     French High Commissioner Louis Le Franc, after a final meeting with the delegation, said: “They have come here to seek the profound causes of what happened on May 13. They have been listening very closely.

    “I understand their view is that a wide circle of concertation [cooperation] will be required to reach an agreement,” he said.

    He elaborated, saying that the Pacific Forum leaders seemed to place a lot of hope in the notions of “trust”, the “necessity of living together” and the PIF’s “will to help, while saying that, at the same time, the solution lies in the hands of New Caledonia”.

    French President Macron (right) with New Caledonia’s President Louis Mapou (left) and former New Caledonia Congress President Roch Wamytan (centre) earlier this year. Image: RNZ Pacific

    Next: another ‘concertation and dialogue’ mission
     Following the PIF “Troika-Plus” mission, another visit is expected in New Caledonia in the next few days — this time coming from Paris.

    This new high-level visit will be headed by the presidents of both houses of Parliament in France (Senate and National Assembly), respectively Gérard Larcher and Yaël Braun-Pivet, from November 9-14.

    They will lead what is described as a “mission of concertation and dialogue”.

    The dates come as a top-level meeting took place last week, presided by French Head of State Emmanuel Macron and attended by French minister for Overseas François-Noël Buffet (who had just returned from New Caledonia), French PM Barnier, Larcher and Braun-Pivet.

    The objective, once again, was to reinforce the signal that the time had come to resume political dialogue.

    Macron indicated earlier that he still intended to host a meeting in Paris sometime in November.

    Buffet was also in New Caledonia earlier this month for four days to assess the situation and try to restore a path to dialogue between all political stakeholders, both pro-independence and pro-France.

    This article is republished under a community partnership agreement with RNZ.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Senator Wicker Commends Dr. Darsey’s Appointment to Federal Board

    US Senate News:

    Source: United States Senator for Mississippi Roger Wicker
    WASHINGTON – Today, U.S. Senator Roger Wicker, R-Miss., commended the appointment of Dr. Damon Darsey to the FirstNet Authority Board of Directors. Senator Wicker recommended Dr. Darsey to the Acting Associate Administrator of the Office of Public Safety Communications at the U.S. Department of Commerce and Secretary Gina Raimondo.
    The Board of Directors provides oversight of FirstNet, which is a nationwide interoperable public safety broadband network designed to connect first responders across departments for large-scale disasters. The board is also responsible for providing FirstNet with overall policy direction and strategic guidance.
    “Dr. Darsey has been a leader in public safety for Mississippi. For years, he has been engaged in the policy, development, technical, and political challenges around deploying a dedicated public safety network. His experience as the Medical Director for the Mississippi Department of Public Safety is a valuable asset to the board’s composition. I am confident he will continue to be an advocate for our communities and first responders,” Senator Wicker said. 
    Since 2010, Dr. Darsey has been the principal investigator of nearly $36 million of grants focusing on the clinical and academic interest of improving the communications, care, and coordination of first responders and in-field medical care.

    MIL OSI USA News –

  • MIL-OSI China: EU tariffs on Chinese EVs spark widespread opposition

    Source: China State Council Information Office

    The European Union’s (EU) decision to impose definitive countervailing duties on Chinese-made electric vehicles (EVs) for a period of five years has sparked strong opposition, with China calling the move “unfair, unreasonable and unobjective.”

    In a statement on Wednesday, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), on behalf of the Chinese automotive industry, expressed “great regret” over the decision to impose anti-subsidy tariffs on electric vehicles originating in China.

    Starting Wednesday, these tariffs will apply with varying rates for different companies: 17 percent for BYD, 18.8 percent for Geely, and 35.3 percent for SAIC. Other cooperating firms will be subject to a 20.7 percent duty, while non-cooperating companies will have a duty rate of 35.3 percent, according to the European Commission.

    Following a substantiated request for an individual review, U.S. EV maker Tesla, which also manufactures vehicles in China, will face a duty of 7.8 percent, the commission noted.

    The CCCME said the European Commission failed to rectify its “incorrect findings” in the final ruling on the imposition of definitive duties against Chinese EVs, and there was a serious lack of transparency in the procedure, adding that the move seriously violates relevant World Trade Organization (WTO) and EU anti-subsidy rules.

    The China Association of Automobile Manufacturers (CAAM) also expressed disagreement with the decision in a statement on Wednesday. The decision, which is not objective and extremely unfair to China’s auto companies, is deemed unacceptable, the CAAM said.

    The CAAM stressed that the imposition of tariffs not only violates the fundamental principles of free trade and fair competition, but also undermines cooperation between the Chinese and European automotive industries, as well as green and low-carbon transition.

    Earlier on Wednesday, a Ministry of Commerce (MOC) spokesperson said China does not approve of or accept the European Commission’s decision to impose extra tariffs on Chinese EVs.

    China has repeatedly pointed out that the EU’s anti-subsidy investigation into Chinese EVs is irrational, fraught with numerous non-compliance issues, and is a protectionist move under the guise of “fair competition,” the MOC said.

    China has already appealed to the WTO’s dispute settlement mechanism over the issue, and will continue to take all necessary measures to safeguard the legitimate rights and interests of Chinese enterprises, the MOC spokesperson noted.

    Chinese carmaker SAIC Motor, which has been slapped with a duty rate of 35.3 percent by the European Commission, said that it plans to file a lawsuit at the Court of Justice of the European Union challenging the decision.

    According to the carmaker, the European Commission made errors in identifying subsidies during its probe, ignored key facts and arguments presented by SAIC, and inaccurately presumed subsidy rates for several items.

    The company said that the extra tariffs will only raise costs for European car buyers and impede the widespread adoption of EVs, adding that it is taking steps to adapt to trade barriers, including intensifying efforts to introduce new car models with various power systems to the European market and expanding its product lineup under the MG brand.

    NEW PHASE OF CONSULTATIONS

    While announcing the imposition of duties on Tuesday, the European Commission said the EU and China are continuing to work toward finding alternative, WTO-compatible solutions that would be effective in addressing the problems identified by the investigation, adding that it remains open to negotiations on price undertakings.

    Noting that the EU remains open to continuing discussions on price commitments for Chinese-made EVs, the MOC spokesperson said that China always advocates for resolving trade disputes through dialogue and consultation, and has made every effort to achieve this.

    Currently, technical teams from both sides are engaged in a new phase of consultations. It is hoped that the European side will work constructively with China, follow the principles of “pragmatism and balance” and take into account each other’s core concerns, and strive to reach a mutually acceptable solution as soon as possible to avoid an escalation of trade frictions, according to the MOC.

    The CAAM voiced the hope that both sides will continue to engage in dialogue and consultations to maintain the steady operations of global automotive industrial and supply chains.

    The CCCME, meanwhile, has expressed the hope that the EU would approach the consultations with the utmost sincerity and reach a balanced solution acceptable to both sides as soon as possible. 

    MIL OSI China News –

  • MIL-OSI Australia: Brookfield’s acquisition of Neoen not opposed, subject to divestments

    Source: Australian Competition and Consumer Commission

    The ACCC will not oppose the acquisition of Neoen SA by a consortium led by Brookfield Renewable Holdings SAS (Brookfield BidCo), subject to a court-enforceable undertaking to divest Neoen’s existing Victorian renewable electricity generation and storage assets and its development projects in Victoria.

    Brookfield Renewable has established Brookfield BidCo for the purposes of the proposed acquisition. Brookfield Renewable is a division of Brookfield Corporation (Brookfield), which is a global asset management business.

    Brookfield has a controlling interest in AusNet, that owns and operates Victoria’s monopoly electricity transmission network and parts of the electricity distribution network. AusNet also has two battery energy storage systems and a further two development projects in Victoria.

    Neoen specialises in renewable energy projects. Neoen has 15 operating assets in Australia and a further 48 projects in varying stages of development.  

    The ACCC’s investigation focused on competition in the Victorian markets for the supply of renewable generation, firming capacity and electricity storage services, and Frequency Control Ancillary Services and/or Very Fast Frequency Control Ancillary Services. 

    The ACCC was concerned that Brookfield, through its control of AusNet, would be able to operate the Victorian transmission network to favour its own generation and storage assets and/or hinder rival generators or storage assets.

    The ACCC concluded that the acquisition of Neoen would increase Brookfield’s incentives to engage in such conduct.

    “The ACCC has long-standing competition concerns with cross-ownership of monopoly energy network assets and energy generators, due to the potential for the monopoly provider to discriminate against rivals and favour its own operations,” ACCC Commissioner Dr Philip Williams said.

    “The ACCC considers that, without the divestment, the acquisition would have increased Brookfield’s incentives to delay or increase the cost of connections works on rival projects or operate the AusNet transmission network to benefit Brookfield’s related assets,” Dr Williams said.

    “While there are some regulatory protections to limit obvious and blatant conduct disadvantaging rivals, there is still a clear potential for anti-competitive tactics.”

    “With these significant concerns in mind, the ACCC has accepted a court-enforceable undertaking from Brookfield to divest Neoen’s operating assets and development projects in Victoria,” Dr Williams said.

    “The ACCC considers that this divestment will reduce Brookfield’s incentives to engage in such conduct as a result of the transaction.”

    Brookfield will now be required to divest Neon’s operational assets and six further development projects in Victoria. The operational assets are the Victorian Big Battery, Numurkah Solar Farm, Bulgana Wind Farm and Battery.

    Neoen has six development projects in Victoria that will also be divested. The development projects are Navarre Green Power Hub Stage 1 and 2, Kentbruck Green Power Hub Stage 1 and 2, Kentbruck Storage, Moorabool Battery Energy Storage System (also known as Victorian Big Battery Stage 2), Loy Yang Wind, and Bulgana X.

    More information can be found on the ACCC’s website at Brookfield – Neoen.

    Background

    Brookfield is a Canadian global asset manager with approximately US$900 billion assets under management.

    In Australia, Neoen has 15 operating generation and storage assets capable of generating ~1.8GW of electricity, and 48 projects in varying stages of development capable of generating ~10GW of electricity once operational.

    Brookfield BidCo has been established for the purposes of the proposed acquisition. Brookfield BidCo is a wholly owned subsidiary of Bernabeu Master UK Holdings Limited. Bernabeu Master UK Holdings Limited is ultimately owned by Brookfield Asset Management ULC. Temasek is a member of the consortium.

    Brookfield Infrastructure (through Brookfield Super-Core Infrastructure Partners), with a 45.4% interest, is the largest investor in AusNet. The balance is held by a number of unrelated parties. Brookfield actively manages AusNet. AusNet has two battery energy storage systems and a further two development projects in Victoria.

    MIL OSI News –

  • MIL-OSI USA: October 30th, 2024 Heinrich Delivers Keynote Address at Veterans Business Summit

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich
    PHOTOS & VIDEOS
    ALBUQUERQUE, N.M. — Today, U.S. Senator Martin Heinrich (D-N.M.), a member of the Senate Appropriations Committee, delivered a keynote address at the New Mexico Veterans Business Summit highlighting how investments in veteran-owned businesses have grown New Mexico’s economy and created jobs New Mexicans can build their families around. 
    Heinrich secured $50,000 through the Appropriations process for the New Mexico Veterans Business Advocates Expo to provide New Mexico’s veteran-owned businesses an opportunity to interact with potential partners, customers, and employees, supporting their success and growth.
    Heinrich also highlighted his work to expand veterans’ benefits and access to the health care they’ve earned and deserve.

    U.S. Senator Martin Heinrich (D-N.M.) delivers a keynote address at the New Mexico Veterans Business Summit, October 30, 2024.
    “Small, locally-owned businesses — including veteran-owned businesses — are the beating hearts of our communities and backbone of our economy,” said Heinrich. “Our veterans leave their military service with unique skills and experience. I was proud to secure $50,000 in the 2024 Appropriations Bills to support the New Mexico Veterans Business Summit that is providing resources to help veteran-owned small businesses and military veterans looking for new career and entrepreneurial opportunities. I remain committed to supporting our state’s veterans and small business owners, lowering costs, growing our economy, and connecting New Mexicans to high-quality careers they can build their families around.”

    U.S. Senator Martin Heinrich (D-N.M.) at the New Mexico Veterans Business Summit, October 30, 2024.
    Heinrich remains unwavering in his commitment to provide the care and benefits that veterans deserve and have earned.
    This year, the VA has served more veterans than ever before and provided more care and benefits to veterans who were exposed to toxins during their time in the military because of the successful implementation of the Honoring our Promise to Address Comprehensive Toxics (PACT) Act, bipartisan legislation that Heinrich helped lead as then-Chair of the Senate Appropriations Subcommittee on Military Construction, Veterans Affairs, and Related Agencies. 
    The PACT Act was signed into law in 2022 and has provided a record expansion of care and benefits for veterans. As a result, more veterans are filing claims and receiving their long overdue earned benefits, including disability compensation and GI Bill benefits.
    Heinrich also recently passed legislation to protect veterans’ earned benefits and ensure the Department of Veterans Affairs (VA) is able to continue to pay disability compensation, surviving spouses and dependent compensation, pension, and education benefits to veterans, including nearly 70,000 New Mexicans.
    Additionally, Heinrich recently announced the Senate Appropriations Committee’s bipartisan, unanimous passage of the Fiscal Year 2025 Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill, which included $3.2 billion to expand programs providing critical services and housing for veterans and their families. Heinrich also fought to include key language to protect access to abortion for veterans in cases of rape, incest, and when the life of the mother is at risk, but the Committee did not ultimately include the provision.
    In the Fiscal Year 2024 Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill, Heinrich successfully advocated for major increases in funding to programs that support veterans in New Mexico and throughout the United States. He also successfully included key language to protect access to health care for veterans in New Mexico and nationally. Specifically, Heinrich secured increased funding to provide access to care for rural and Tribal veterans, transportation for rural veterans, rural health care for veterans, assistance to homeless veterans, construct state extended care facilities, improve veteran access to Suicide Prevention Coordinators, increase research on prosthetics and limb loss, and build on the work of neurology-related Centers of Excellence. 
    Additionally, in the Fiscal Year 2024 Transportation, Housing and Urban Development, and Related Agencies Appropriations Bill, Heinrich successfully ensured that funding was not cut from the Tribal HUD-VA Supportive Housing Program, which provides rental assistance and supportive services to Nativ

    MIL OSI USA News –