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Category: CTF

  • MIL-Evening Report: This 6-point plan can ease Australia’s gambling problems – if our government has the guts

    Source: The Conversation (Au and NZ) – By Charles Livingstone, Associate Professor, School of Public Health and Preventive Medicine, Monash University

    WHYFRAME/Shutterstock

    We have a refreshed and revitalised Australian government, enriched with great political capital.

    During the last term of parliament before the election, opportunities to address Australia’s raging gambling habit were neglected.

    Could this government now have enough authority and courage to take on the gambling ecosystem?

    A massive issue

    Australians are the world’s biggest gambling losers.

    Many attribute this to some inherent Australian trait. But what it really comes down to is the proliferation of gambling operators and their products.

    They’re everywhere, along with their marketing and promotion.

    Half of the gambling problems in Australia are associated with poker machines, ubiquitous in all states and territories other than Western Australia (WA).

    Consequently, and unsurprisingly, WA has the lowest rate of gambling harms. The state has 2,500 pokies at a single Perth casino and none in clubs or pubs.

    New South Wales boasts nearly 90,000 pokies, the highest pokie “density” in Australia, and its clubs and pubs make $8.1 billion a year.

    Overall, pokie losses in Australia total $15.8 billion per year.

    Wagering (betting on sport, racing and even elections), is now mainly online, and reaps another $8.4 billion in Australia. This is the fastest growing gambling sector, with growth, adjusted for inflation, of more than 45% between 2018-19 and 2022-23.

    Pokies grew by a more modest 7.6% during the same period. Only casinos went backwards.

    Overall, gambling costs Australians more than $32 billion annually.

    This has been fuelled by relentless promotion and marketing and the expansion of the gambling ecosystem: the network of commercial actors who reap a major dividend from gambling losses.

    It includes the bookies, pub and club chains as well as sporting leagues, financial services providers, software and game developers, charitable organisations, broadcasters, and state and territory governments.

    Of course, gambling comes at a cost: it is strongly linked to broken relationships, loss of assets, employment and educational opportunities, and crime rates.

    Intimate partner violence and neglect of children, along with poor mental and physical health, are also connected to gambling accessibility. As, unfortunately, is suicide.

    However, there are ways to reduce gambling harm.

    Six ways to tackle the problem

    1. First up, we need a national gambling regulator. This was an important recommendation in the 2023 report of the all-party parliamentary committee chaired by the late Peta Murphy.

    Currently, gambling is regulated by each state and territory. Some have reasonably robust systems in place. Others, somewhat less so. None are best practice.

    A national system is long overdue, as many gambling businesses operate across multiple Australian jurisdictions.

    In the absence of national regulation, the Northern Territory has become the de facto national regulator for online wagering. It offers a low-tax and arguably low intervention regulatory system.

    Yet the vast majority of losses from punters come in other jurisdictions.

    National regulation would also assist in standardising tax rates and maintaining reasonable uniform standards of regulation and enforcement.

    2. Poker machines are Australia’s biggest gambling problem, but a national precommitment scheme would provide a tool for people to manage their gambling.

    This proposal has been frequently mooted in Australia since the Productivity Commission recommended it in 2010.

    It has worked well in Europe: forms of it now operate in 27 European countries.

    Both Victoria and Tasmania have proposed it, as did the Perrottet government in the lead into the last NSW election.

    Unfortunately, the power of the pokie lobby, supercharged by the addiction surplus it reaps from punters, has slowed or stopped its implementation.

    But it’s eminently feasible and is highly likely to significantly reduce the harm of pokies.

    The technical challenges are far from insurmountable, despite what industry interests argue.



    Read more:
    Pokies line the coffers of governments and venues – but there are ways to tame this gambling gorilla

    3. Limiting accessibility to pokies is an important way to reduce harm.

    Nothing good happens in a pokie room after midnight, yet they are often open until 4am, with reopening time only a little later.

    Closing down venues after midnight and not opening until 10am would help a lot of people.

    4. We can’t talk about political access without considering some key tools of the gambling ecosystem.

    Pokie operators have enormous ability to influence politicians. Donations are a typical method to ensure access, backed up by the “revolving door” of post-politics jobs.

    Politicians also enjoy a stream of freebies from the gambling ecosystem, which allow these businesses to bend the ear of a guest for hours at a time, at lunch, over drinks, or during an event.

    To address this, we need better rules around acceptance of hospitality and gifts. Some states have moved towards such arrangements but there has been little action on the national front.

    5. Another major recommendation from the Murphy committee was the banning of online gambling ads.

    The majority of Australians want it to happen, and gambling ads are banned for almost all other forms of gambling.

    The special treatment for this rapidly growing, highly harmful gambling product makes no sense.

    6. Finally, we need to properly resource research into gambling harm and its prevention.

    Much gambling research (and its conferences) are funded by the gambling ecosystem, either directly or via representative organisations.

    This raises massive conflicts and has lead to a poor evidence base for policy making.

    The time is now

    Anything that stops people getting into trouble with gambling will be opposed by the gambling ecosystem because their best customers are those with the biggest losses.

    But nobody is saying we should do away with gambling.

    The evidence-based ideas above would help people with existing problems, and stop many more from ending up in trouble.

    Gambling is a problem we can solve.

    It does need political effort – but the Albanese government has the political capital to solve this problem.

    Charles Livingstone has received funding from the Victorian Responsible Gambling Foundation, the (former) Victorian Gambling Research Panel, and the South Australian Independent Gambling Authority (the funds for which were derived from hypothecation of gambling tax revenue to research purposes), from the Australian and New Zealand School of Government and the Foundation for Alcohol Research and Education, and from non-government organisations for research into multiple aspects of poker machine gambling, including regulatory reform, existing harm minimisation practices, and technical characteristics of gambling forms. He has received travel and co-operation grants from the Alberta Problem Gambling Research Institute, the Finnish Institute for Public Health, the Finnish Alcohol Research Foundation, the Ontario Problem Gambling Research Committee, the Turkish Red Crescent Society, and the Problem Gambling Foundation of New Zealand. He was a Chief Investigator on an Australian Research Council funded project researching mechanisms of influence on government by the tobacco, alcohol and gambling industries. He has undertaken consultancy research for local governments and non-government organisations in Australia and the UK seeking to restrict or reduce the concentration of poker machines and gambling impacts, and was a member of the Australian government’s Ministerial Expert Advisory Group on Gambling in 2010-11. He is a member of the Lancet Public Health Commission into gambling, and of the World Health Organisation expert group on gambling and gambling harm. He made a submission to and appeared before the HoR Standing Committee on Social Policy and Legal Affairs inquiry into online gambling and its impacts on those experiencing gambling harm.

    Angela Rintoul holds a postdoctoral fellowship funded by Suicide Prevention Australia. In the past she has received funding from the Victoria Responsible Gambling Foundation, which was supported by allocations from the Community Support Fund, a government administered trust fund constituted from direct taxes on EGMs in hotels. She has also received funding from the Winston Churchill Memorial Trust and ANROWS. She is a member of the WHO meeting on gambling and received travel funding from the Turkish Green Crescent Society and consultancy funding from WHO. She has been paid to review grants by the British Academic Forum for the Study of Gambling, which administered via Gambling Research Exchange Ontario, funded by regulatory settlements from gambling companies who have breached the law.

    – ref. This 6-point plan can ease Australia’s gambling problems – if our government has the guts – https://theconversation.com/this-6-point-plan-can-ease-australias-gambling-problems-if-our-government-has-the-guts-256442

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: DeGette Statement Following Marathon Markup of Trump’s ‘One Big, Bogus Bill’

    Source: United States House of Representatives – Congresswoman Diana DeGette (First District of Colorado)

    WASHINGTON, D.C. — Today, Congresswoman Diana DeGette (CO-01) released the following statement after the Energy & Commerce Committee completed a nearly 27 hour-long markup of Trump’s ‘One Big, Bogus Bill’ that would cut $715 billion from Medicaid, kick 13.7 million Americans off their health care, and defund Planned Parenthood to give tax cuts to billionaires.

    “House Republicans held a 27 hour markup, starting debate over the health care provisions at 1 o’clock in the morning, to hide what they are doing from the American people. Throughout the night, they deflected from their true intentions of kicking millions of Americans off their health care. But here’s the truth: you can’t cut $715 billion from Medicaid without kicking eligible recipients off the program. The policies House Republicans want to implement have been tried in states like Georgia and Arkansas, and they have failed miserably, leading to eligible people losing their health care and actually costing the states more money. Make no mistake: this bill will lead to eligible recipients losing their health care, and House Republicans couldn’t care less.

    “Furthermore, they are specifically targeting Planned Parenthood, which serves over 60,000 Coloradans annually, by eliminating their federal funding. That means 1 million Planned Parenthood patients on Medicaid will lose access to care, such as cancer screenings, wellness visits, HIV prevention, and family planning counseling.

    “House Republicans are so focused on appeasing Trump and giving tax cuts to billionaires that they are gutting essential health care programs and providers. I called out their cuts throughout the markup, and I am going to continue to fight to protect Medicaid and access to health care as Republicans try to jam this monstrosity of a bill through Congress.”

    Democrats on the committee offered a number of amendments to stop this bill from taking health care away from hard-working Americans. Republicans voted against every single Democratic amendment, including: 

    • An amendment to require the HHS Secretary to certify that the Trump administration will not cut Medicaid benefits.
    • An amendment to prevent defunding Planned Parenthood.
    • An amendment to prevent the bill from taking effect if any of the provisions result in an increase in mortality rates.
    • An amendment to require 100 percent of savings to be reinvested in medical assistance for eligible Medicaid recipients.
    • An amendment to maintain state flexibility in funding Medicaid.
    • An amendment to require assessments from states on the impact of this bill on uncompensated care and emergency department wait time.
    • An amendment to remove unnecessary and burdensome paperwork requirements.
    • An amendment to require states to provide 12 months postpartum coverage.
    • An amendment to codify a ban on CHIP waiting periods.
    • An amendment noting the Sense of Congress that Americans should not pay more than those in other countries for the exact same prescription drugs.

    An amendment that says none of the provisions of the bill will take effect if any of the provisions result in reduced access to coverage.

    ###

    MIL OSI USA News –

  • MIL-OSI New Zealand: 2025 annual survey on privacy

    Source:

    Read the 2025 survey, ‘Research on Privacy Concerns and use of personal information’ (opens to PDF, 2.1MB).

    Privacy Commissioner Michael Webster says public concern about privacy remains high, with particular unease around children’s privacy, social media use, and AI decision-making.  

    “More people are worried about the impact of technology on their privacy and are questioning what their personal information is being used for and why.”

    The impact of technology is reflected in people’s privacy concerns:

    • 67% of respondents are concerned about the privacy of children, including when using social media
    • 63% are concerned about the management of personal information by social media companies
    • 62% are concerned about government agencies or businesses using AI in decision-making.

    “New Zealanders are great adopters of technology, but this survey suggests that we’re increasing becoming aware there’s also a price to pay through the loss of control over our personal information and we’re increasing worried about the implications of that.”

    Nearly half of respondents say they’ve become more concerned about issues of individual privacy and personal information over the past few years.  Two thirds of respondents now say protecting their personal information is a major concern in their lives.  And over 80% said they wanted more control and choice over the collection and use of their personal information.

    The level of concern also means many New Zealanders are willing to consider taking action if they think their right to privacy is not being protected and respected.  Two-thirds of respondents said they would consider changing service providers – such as businesses – due to poor privacy practices.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Privacy Week 2025: Public concern about privacy remains high

    Source:

    The annual privacy survey of New Zealanders was released today during Privacy Week 2025. 

    Privacy Commissioner Michael Webster says public concern about privacy remains high, with particular unease around children’s privacy, social media use, and AI decision-making.  

    “More people are worried about the impact of technology on their privacy and are questioning what their personal information is being used for and why.”

    The impact of technology is reflected in people’s privacy concerns: 

    • 67% of respondents are concerned about the privacy of children, including when using social media
    • 63% are concerned about the management of personal information by social media companies
    • 62% are concerned about government agencies or businesses using AI in decision-making.

    “New Zealanders are great adopters of technology, but this survey suggests that we’re increasing becoming aware there’s also a price to pay through the loss of control over our personal information and we’re increasing worried about the implications of that.”

    Nearly half of respondents say they’ve become more concerned about issues of individual privacy and personal information over the past few years.  Two thirds of respondents now say protecting their personal information is a major concern in their lives.  And over 80% said they wanted more control and choice over the collection and use of their personal information.

    The level of concern also means many New Zealanders are willing to consider taking action if they think their right to privacy is not being protected and respected.  Two-thirds of respondents said they would consider changing service providers – such as businesses – due to poor privacy practices.

    MIL OSI New Zealand News –

  • MIL-OSI Global: Should AD stand for Alzheimer’s disease, or for Auguste Deter, the patient whose case was first described?

    Source: The Conversation – Canada – By Donald Weaver, Professor of Chemistry and Senior Scientist of the Krembil Research Institute, University Health Network, University of Toronto

    Alzheimer’s disease is named for Alois Alheimer (left), but his patient, Auguste Deter (right), should not be overlooked. (Wikimedia Commons)

    Auguste Deter was born 175 years ago on May 16, 1850. Though the story of her life is not widely known, it should be. Through her suffering and dignity, Deter puts a much-needed human face on the tragedy of Alzheimer’s disease (AD), one of the most important medical problems currently confronting humankind. Auguste Deter reminds us that AD is a disease of people, not proteins.

    Often, scientists reduce AD to a disorder of shrunken brain cells or misfolded proteins. However, AD is so much more.

    It is a disease that impairs thought processes and personal memories — the very essence of what makes each one of us an individual capable of hopes, dreams, love and being loved. AD is a very human disease and a very human struggle for individuals, their families and society as a whole. Deter is a crucial reminder of the human aspects of this devastating disease.

    ‘I have lost myself’

    Although dementia had been recognized for centuries, Deter was the first person officially diagnosed with the type of dementia now recognized as Alzheimer’s disease.

    Auguste Deter was a patient of Alois Alzheimer. His report on her case was the first description of what is now Alzheimer’s disease.
    (Wikimedia Commons)

    Born Auguste Hochmann into a working-class family, the financial hardships imposed by her father’s early death forced Deter into full-time employment as a seamstress at age 14. She continued this work until marrying Karl Deter, a railway clerk. The couple moved to Frankfurt, Germany where they lived as a happy and harmonious family with their daughter, Thekla.

    Tragically in the spring of 1901, this loving and caring 51-year-old woman began to be incapable of routine household activities. Soon, due to her progressive memory loss and intellectual impairment, she was no longer able to function on her own. She was admitted to the Frankfurt Psychiatric Hospital under the care of Dr. Alois Alzheimer.

    Alzheimer asked her many questions to which she would sometimes quietly reply “Ich habe mich verloren.” (“I have lost myself.”) Sadly, her relentless cognitive decline continued. On July 12, 1905, Alzheimer recorded that Deter’s deterioration had progressed such that she was lying on her side in a pool of urine, knees drawn up, unable to communicate. She died on April 8, 1906 from pneumonia and infected bed sores.

    Definitive features

    Alois Alzheimer.
    (Provided by U.S. National Library of Medicine)

    During the subsequent autopsy, Alzheimer identified not only Deter’s marked brain shrinkage but also localized clumps (“plaques”) of an unknown deposited substance as well as dense bundles of tangled fibres in what were once healthy brain cells.

    These latter two observations — now recognized as amyloid plaques and tau tangles — have become the diagnostic features that define the pathology of AD. In 1907, Alzheimer published a scientific paper in which he described Deter’s brain and her “new” type of dementia.

    Unfortunately, Alzheimer was unable to dedicate a long career to a more comprehensive understanding of this disease. He contracted rheumatic fever in 1912, dying of its complications three years later at age 51. Nonetheless, the Deter case report was sufficient to establish his legacy as the discoverer of Alzheimer’s disease.

    As an inquisitive psychiatrist and pathologist, Alzheimer had been interested in medicine and science, not fame. He was not seeking to name a disease after himself. In 1910, Alzheimer’s boss, the renowned German psychiatrist Emil Kraepelin, wrote the influential Handbook of Psychiatry – a textbook in which he named this newly identified type of dementia “Alzheimer’s Disease.” In doing so, Kraepelin’s textbook ultimately transformed Alzheimer’s name into a household word.

    Meanwhile, in Prague

    But does Alzheimer’s disease truly deserve to be called Alzheimer’s disease? There are other people who can claim contributions to the discovery of Alzheimer’s disease.

    In 1907, the same year that Alzheimer published his single case description of Deter, a Czech psychiatrist named Oskar Fischer independently published a thorough structural analysis of plaques in the brains of 12 people with dementia. Between 1910-1912, he went on to analyze plaques and pathological brain changes in another 58 cases of dementia.

    Oskar Fischer.
    (Wikimedia Commons)

    Arguably, Fischer made more important contributions than Alzheimer to the comprehensive description of the disease. Yet it is called Alzheimer’s disease, not Fischer’s disease.

    There are many reasons for this. Fischer was Jewish and subject to antisemitism. He was not at a prominent German university and did not have a powerful ally like Emil Kraepelin promoting his career. And science is, after all, a very human activity.

    Unfortunately, Fischer later became trapped in occupied Prague under the oppression of authoritarian Nazi rule. Fischer was arrested in 1941 and died in the Gestapo’s notorious Small Fortress prison on Feb. 28, 1942.

    It seemed likely that Fischer’s seminal contributions to our understanding of dementia would be lost. Thankfully in 2008, Michel Goedert of Cambridge University rediscovered Fischer’s significant contributions stored in the archives of Charles University in Prague. This has restored Fischer to his rightful position as one of the discoverers of AD and retrospectively raises questions about the correct naming attribution of AD.

    However, when considering the naming of AD, we must not forget Patient No. 1: Auguste Deter. Interestingly and fortuitously, her initials are AD. So, should AD signify Auguste Deter disease rather than Alzheimer’s disease? Should the Alzheimer-Fischer controversy be resolved by simply reassigning the AD abbreviation to Auguste Deter? Should the disease be named after its “first patient,” rather than the physician(s) who discovered it?

    Medicine has a penchant for naming signs, symptoms and diseases after the physicians who first described them. We typically tend not to name them after the afflicted person. Perhaps this is done to preserve patient confidentiality; perhaps not.

    But AD is a disease like no other. It’s very personal. It affects the memories, thoughts and emotions that define us as human beings. We must never forget that AD is a disease of people and families, not just proteins and fibrils. Deter tragically yet courageously embodies the human heartbreak of this dreadful disease.

    Deter’s contribution to the 1907 single case report study by Alzheimer was immense: Deter’s life, illness and death are the story of AD. Deter should be remembered. It was and is her disease.

    Donald Weaver 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. Should AD stand for Alzheimer’s disease, or for Auguste Deter, the patient whose case was first described? – https://theconversation.com/should-ad-stand-for-alzheimers-disease-or-for-auguste-deter-the-patient-whose-case-was-first-described-255942

    MIL OSI – Global Reports –

  • MIL-OSI Russia: IMF Executive Board Receives Request for Flexible Credit Line Arrangement with Costa Rica

    Source: IMF – News in Russian

    May 14, 2025

    Washington, DC:  After concluding the 2025 Article IV consultation with Costa Rica on May 12, 2025, the International Monetary Fund (IMF) Executive Board met on the same day in an informal session[1] to discuss a request from the authorities for a two-year arrangement under the Flexible Credit Line (FCL) with the IMF in an amount equivalent to SDR 1.1082 billion (300 percent of quota or about US$1.5 billion). The authorities intend to treat the credit line as precautionary.

    The FCL is reserved for countries with very strong policy frameworks and track records in economic performance. It helps safeguard countries by providing them with upfront access to IMF resources in case needed if future external shocks materialize. The FCL also permits qualifying countries to signal continued commitment to very strong institutional frameworks and macroeconomic and financial policies. Unlike the Extended Fund Facility (EFF) arrangement, which the authorities completed in 2024, the FCL has no ex-post conditionality.

    On the basis of Costa Rica’s very strong economic fundamentals, institutional policy frameworks, and track record, IIMF Managing Director Kristalina Georgieva intends to recommend approval of the FCL arrangement for Costa Rica when the IMF Executive Board meets again to take a decision in the following weeks. The IMF stands ready to continue its fruitful engagement with Costa Rica.

    [1] During an informal session, IMF staff engages with Executive Board Members to discuss country matters where no formal board decision is expected.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Meera Louis

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

    https://www.imf.org/en/News/Articles/2025/05/14/pr25146-costa-rica-imf-receives-request-for-fcl-arrangement

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI USA: Reed, Crapo Unite in Bipartisan Push to Improve Disabled Veteran Housing Access

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed
    WASHINGTON, DC – In an effort to better serve military members who selflessly served our nation and address the unique housing challenges veterans face, U.S. Senators Mike Crapo (R-ID) and Jack Reed (D-RI) are teaming up to advance the Disabled Veterans Housing Support Act (S.1714).  This bipartisan, bicameral legislation would help cut red tape and better ensure veterans can receive the housing support they need.  Specifically, the bill exempts payments to veterans for a service-connected disability from being included as income when applying for housing that uses Community Development Block Grant (CDBG) funding.
    “Veterans disabled in combat have laid their lives on the line in defense of this nation,” Senator Crapo said.  “The benefits they earned for injuries sustained fighting for liberty should not be used to deny them housing assistance they would otherwise qualify for following their service.  This act would help more disabled veterans receive the housing and dignity they deserve for their sacrifices for the United States.”
    “Our disabled veterans deserve a safe place to call home,” Senator Reed said.  “This bill will help open up more affordable housing opportunities by ensuring that disabled veterans’ earned benefits do not impact their eligibility to find housing.”
    This common-sense solution would ensure America’s disabled veterans can participate in federal housing programs they would otherwise qualify for were they not receiving disability payments.
    The U.S. Department of Housing and Urban Development (HUD) provides CDBG funding to states and local governments to assist low- and moderate-income people with housing and other community resources.  Generally, states and municipalities must use CDBG dollars to help individuals and families who earn less than 80 percent of the Area Median Income.
    The legislation also directs the Government Accountability Office (GAO) to report to Congress in one year on how individuals with service-connected disabilities are treated in determining their eligibility for HUD programs and provide recommendations for how the department could improve its service to veterans and other underserved communities.
    Companion legislation  was introduced in the U.S. House of Representatives by Congresswoman Monica De La Cruz (R-TX) and Congressman Brad Sherman (D-CA).  The U.S. House of Representatives unanimously approved the Disabled Veterans Housing Support Act on February 10, 2025.  The full U.S. Senate must now act before the bill can be sent to the President’s desk to be signed into law.

    MIL OSI USA News –

  • MIL-OSI USA: May 9th, 2025 Heinrich, Luján, Vasquez Call on Trump Administration to Crack Down on U.S. Firearms Flowing to Latin American Drug Cartels

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich
    WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.), a member of the core bipartisan group of senators who negotiated and passed the Bipartisan Safer Communities Act (BSCA), joined U.S. Senator Ben Ray Luján (D-N.M.) and U.S. Representative Gabe Vasquez (D-N.M.) to urge the Trump Administration to use its recent designation of Latin American cartels as Foreign Terrorist Organizations (FTOs) to take aggressive action to stop the illegal trafficking of American firearms across the Southern Border.
    In a letter addressed to Secretary of Homeland Security Kristi Noem, Secretary of State Marco Rubio, and Attorney General Pam Bondi, the lawmakers called for a coordinated federal response to stem the flow of hundreds of thousands of American firearms that arm violent drug cartels, fuel lawlessness along the Southern Border, and bring drugs into communities across the United States.
    “We were pleased that President Trump agreed to address the outflow of hundreds of thousands of American-made firearms across the southern border when he initially postponed the implementation of tariffs on our ally Mexico. Accordingly, we urge you to utilize the FTO designation to take aggressive action to stem the flow of American guns to the cartels,” the lawmakers wrote.
    Anywhere between 200,000 and 500,000 American firearms are smuggled across U.S. borders into Mexico every year, arming Latin American criminal organizations that have used them to undermine domestic law enforcement and assert control over fentanyl and human trafficking operations back into the United States. 
    “The new FTO designation for these cartels provides additional legal tools to bolster interagency coordination, disrupt their financial networks, and impose stricter penalties on those who provide material support to these criminal enterprises. Specifically, under current statute, it is unlawful to knowingly provide material support or resources to a Foreign Terrorist Organization and those who do so can be fined or imprisoned for up to 20 years,” the lawmakers continued.
    The members urged the administration to effectively and strategically employ the full suite of legal options this new designation enables and offered their assistance to empower it to specifically address the “Iron River” of American firearms that are fueling violence and destruction in communities across the United States and Mexico. 
    “We hope that you move swiftly and use these new legal authorities to combat southbound arms trafficking. We stand ready to assist in this effort in any way we can, including through legislation that expands your programmatic authorities to address this critical issue,” the lawmakers concluded.
    The letter was led by Luján and U.S. Senator Michael Bennet (D-Colo.) in the Senate and U.S. Representatives Dan Goldman (D-N.Y.) and Rob Menendez (D-N.J.) in the House. Alongside Heinrich and Vasquez, the letter was signed by U.S. Senator Catherine Cortez Masto (D-Nev.) and U.S. Representatives Eric Swalwell (D-Calif.), J. Luis Correa (D-Calif.), Seth Magaziner (D-R.I.), Debbie Wasserman Schultz (D-Fla.), Jill Tokuda (D-Hawaii), Timothy Kennedy (D-N.Y.), and Nellie Pou (D-N.J.).
    The full text of the letter is here. 
    Background on Heinrich-Led Gun Trafficking and Straw Purchase Provisions:
    Heinrich-led provisions in the Bipartisan Safer Communities Act increased criminal penalties for straw purchasers and made it a crime, for the first time ever, to traffic firearms out of the United States. Straw purchasers are people who buy guns for those who cannot buy them directly themselves due to their age, felony criminal convictions, or other limitations. By increasing penalties for straw purchasing, Heinrich’s provision is helping to keep guns out of the hands of criminals and those who would use them against our communities. By making it illegal to traffic firearms out of the country, Heinrich’s provision gave law enforcement the tools needed to prosecute and disrupt the flow of firearms to Mexico and the Northern Triangle, fueling the violence that has driven so many to flee their home countries.  
    To date, the Department of Justice has charged more than 600 defendants using BSCA’s gun trafficking and straw purchasing laws, removing hundreds of firearms off the streets in the process. These cases are significant, often preventing and prosecuting highly dangerous activity, such as crimes linked to organized trafficking rings and transnational criminal organizations.  
    For example, in March 2024, the Justice Department charged several defendants with trafficking and straw purchasing over 100 firearms, including many military-grade weapons, that were allegedly intended to be smuggled to a Mexican drug cartel. In April 2024, a defendant was sentenced to 276 months in prison for firearms trafficking and straw purchasing, as well as distribution of fentanyl, where the evidence showed that two of the trafficked firearms had been used in gang-related shootings. In 2o23, a defendant was sentenced to two years in prison for running an illegal gun trafficking enterprise, repeatedly taking money to lie on firearm purchase forms and obtain weapons for convicted felons. 
    In New Mexico, the Office of the United States Attorney for the District of New Mexico has charged 11 defendants with BSCA violations. 
    Heinrich’s Longtime Leadership to Tackle Gun Violence:
    A gun owner and father, Heinrich has long worked to advance and pass bipartisan policies that save lives, protect public safety, and reduce gun violence.
    Heinrich recently co-sponsored the Preventing Illegal Weapons Trafficking Act, legislation to protect communities from gun violence by requiring federal law enforcement to coordinate efforts to prevent the importation and trafficking of machinegun conversion devices including ‘auto-sears’ — illegal gun modification devices that can convert semi-automatic weapons into fully-automatic weapons — and seize all profits that come from the illegal trafficking of these devices.
    Last month, Heinrich introduced his Gas-Operated Semi-Automatic Firearms Exclusion (GOSAFE) Act and bipartisan Banning Unlawful Machinegun Parts (BUMP) Act, commonsense legislation designed to protect communities from gun violence, while safeguarding Americans’ constitutional right to own a firearm for legitimate self-defense, hunting, and sporting purposes.
    Heinrich also convened a press conference in Albuquerque with New Mexicans to Prevent Gun Violence, Everytown, community leaders, and students to announce the introduction of his GOSAFE Act. For photos and videos of that event, click here.
    In October 2024, Heinrich secured critical funding for New Mexico law enforcement to purchase four new NIBIN machines for Las Cruces, Farmington, Gallup, and Roswell. This allows law enforcement to trace firearms used in crimes and hold criminals accountable, all while saving officers valuable time and resources.
    In July 2023, Heinrich cosponsored the bicameral Ghost Guns and Untraceable Firearms Act, legislation to require online and other sellers of gun-making kits to comply with federal firearm safety regulations.     
    In 2017, Heinrich cosponsored the bipartisan Fix NICS Act, which now requires federal and state authorities to produce background check implementation plans and holds federal agencies accountable for reporting relevant criminal records to the National Instant Criminal Background Check System (NICS). Heinrich also led the successful call to repeal the Dickey Amendment, which had previously prevented the Center for Disease Control and Prevention (CDC) from funding research on gun violence and its effects on public health.

    MIL OSI USA News –

  • MIL-OSI USA: Shaheen Introduces Bill to Direct Restoration and Protection Efforts of the 5-State Connecticut River Watershed Region

    US Senate News:

    Source: United States Senator for New Hampshire Jeanne Shaheen
    (Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH) is reintroducing the Connecticut River Watershed Partnership Act (CRWPA), which would formalize a partnership between federal, state, local and private entities to promote conservation, restoration, education and recreation efforts in the Watershed and establish a voluntary grant program to facilitate these activities. This collaborative effort will benefit fish and wildlife habitats, protect drinking water sources, enhance flood resilience and help promote access to the Watershed’s public spaces, particularly for excluded and marginalized communities. U.S. Representative Jim McGovern (MA-02) leads a companion bill in the House of Representatives.
    “The Connecticut River and its watershed are a vibrant part of New England’s landscape, providing habitat for fish and wildlife, supplying safe drinking water for our communities and spurring tourism that contributes to the whole region’s economy,” said Senator Shaheen. “Only by working together at the federal, state and local level can we effectively protect and preserve this critical environmental and economic resource—and that’s just the kind of partnership this legislation would create.”
    The Connecticut River, New England’s longest river, drains a 7.2-million-acre watershed across five New England states: Connecticut, Maine, Massachusetts, New Hampshire and Vermont. The Watershed is home to 396 communities and provides multiple environmental and economic benefits to diverse stakeholders and industries, including fisheries, farming, hunting, recreation, boating and tourism. The Silvio O. Conte National Fish and Wildlife Refuge encompasses the entire Watershed and is the only refuge of its kind in the National Wildlife Refuge System.
    Specifically, the CRWPA would:
    Require the Secretary of Interior to establish a non-regulatory Watershed Partnership Program intended to identify, prioritize and implement restoration and protection activities within the Watershed in consultation with federal, state, local and non-profit stakeholders;
    Create a grant and technical assistance program for state and local governments; tribal organizations; nonprofit organizations; institutions of higher education; and other eligible entities for activities in the Watershed;
    Implement a 75% Federal cost share for the grant program, except where the Secretary determines a larger cost share is appropriate; and
    Ensure other activities conducted by the Secretary in the Watershed would supplement, not supplant activities carried out by the partnership program.
    The legislation is supported by a broad coalition of more than 50 public and private organizations throughout New England, including the Connecticut River Watershed Partnership. Along with Shaheen, the legislation is co-sponsored by U.S. Senators Richard Blumenthal (D-CT), Maggie Hassan (D-NH), Ed Markey (D-MA), Chris Murphy (D-CT), Elizabeth Warren (D-MA), Bernie Sanders (I-VT) and Peter Welch (D-VT).
    Full bill text is available here.
    Shaheen has led efforts to safeguard our natural environment and invest in climate resiliency while boosting New Hampshire’s recreation economy. Shaheen led the bipartisan Outdoor Recreation Jobs and Economic Impact Act into law to require the federal government to measure the impact of the outdoor recreation on the economy. In November 2024, Shaheen applauded the release of an annual report showing a $1.2 trillion economic contribution by the outdoor recreation sector in 2023, including $3.9 billion in New Hampshire. Shaheen also helped reintroduce the Ski Hill Resources for Economic Development (SHRED) Act to fuel investment in outdoor recreation in national forests that benefits mountain communities.
    Shaheen has also led efforts to help secure full funding and permanent authorization for the Land and Water Conservation Fund (LWCF), which has helped protect more than 2.5 million acres of land and supported tens of thousands of state and local outdoor recreation projects throughout the nation. In 2020, Shaheen helped lead the Great American Outdoors Act into law to permanently fund the LWCF and provide mandatory funding for deferred maintenance on public lands. 

    MIL OSI USA News –

  • MIL-OSI USA: Senator Murray, WA Broadband Office, Digital Equity Advocates Slam Trump for Ripping Away Resources to Close Digital Divide

    US Senate News:

    Source: United States Senator for Washington State Patty Murray
    ICYMI: Senator Murray Blasts Trump’s Attack on Resources to Close Digital Divide: “Republicans Will Have to Explain Why Middle Schoolers in Rural Districts Shouldn’t Get Laptops”
    Murray first authored and introduced the Digital Equity Act in 2019 and got it passed into law as part of the Bipartisan Infrastructure Law
    ***WATCH FULL PRESS CONFERENCE HERE; DOWNLOAD HERE***
    Washington, D.C. — Today, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, and author of the Digital Equity Act, held a virtual press conference in response to President Trump illegally blocking funding from the Digital Equity Act after falsely attacking the law as “racist” and “unconstitutional.” Murray first authored and introduced the Digital Equity Act in 2019 and got it passed into law as part of the Bipartisan Infrastructure Law. Joining Senator Murray for the call were Aaron Wheeler, Director of the Washington State Broadband Office, and Angela Siefer, Executive Director of the National Digital Inclusion Alliance (NDIA).
    Senator Murray’s Digital Equity Act passed with overwhelming bipartisan support in 2022 and provides $2.75 billion to help cities, states, and Tribes close the digital divide by providing individuals and communities with the skills, supports, and technologies necessary to take full advantage of a broadband internet connection—from helping seniors get online to ensuring students in every classroom have the tools they need to succeed.
    “A President cannot overrule a law—period. And certainly not through a tweet. But that hasn’t stopped this administration from illegally blocking the funding from the Digital Equity Act to all 50 states. I passed this law in 2021 as a part of the Bipartisan Infrastructure Law—and I actually first introduced the bill in 2019 to help close the digital divide, even before COVID,” said Senator Murray. “I worked hard and built a massive coalition of support for the Digital Equity Act and I worked really hard to make sure Republicans would be on board too—Senator Portman from Ohio co-led the bill with me. And guess what? Digital Equity passed with overwhelming bipartisan support. And that’s because my Republican colleagues have heard the same stories as I have—like kids in rural communities forced to drive to McDonalds parking lots for Wi-Fi to do their homework… It is insane—absolutely nuts—that Trump is blocking resources to help make sure kids in rural school districts can get hotspots or laptops, all because he doesn’t like the word equity! This administration’s deranged obsession with forcing extremist right-wing culture wars on all of us is not an acceptable or legal reason to deny states access to these funds.”
    “Canceling contracts related to Washington State’s $15.9 million Digital Equity Capacity Grant will severely hinder our efforts to close the digital divide,” said Aaron Wheeler, Director of the Washington State Broadband Office. “Cutting this vital program will expose millions of Washington residents to cyber risks, weaken the economic framework of Washington’s communities, and set back educational and workforce opportunities. And the long-term costs of security breaches, cyber theft and public trust will outweigh any short-term budget savings… Our team had just awarded our Advanced Cybersecurity Literacy Program grant to begin the state’s efforts to develop a curriculum that would have rolled out across the state to help educate and protect vulnerable individuals who are often targets of online scams. Then we got the federal notice that our grant had been canceled. We have all seen stories about victims of these complex online crimes and the impact they can have when they fall victim to online fraud. Our cybersecurity work would have helped prevent this by providing education about the online risks everyone faces. The program would have provided the tools people need to avoid these scams.”
    “The Digital Equity Act passed with overwhelming bipartisan support in Congress to help close the digital divide in rural, urban, and Tribal communities. Fifty states and six territories are counting on these funds to implement essential programs, and that work is already underway. NDIA is one of 65 projects recommended for award, and our subgrantees were prepared to launch 13 programs in 11 states beginning on March 1. NDIA’s shovel-ready projects alone would have supported over 30,000 people in applying for jobs, talking to their doctors, completing homework assignments, and learning to avoid online scams. We are grateful to Senator Murray for standing up for this vital work and the communities that cannot afford to be left behind,” said Angela Siefer, Executive Director of the National Digital Inclusion Alliance (NDIA).
    Senator Murray first introduced the Digital Equity Act in 2019 and worked hard to build a robust coalition of 100+ organizations to secure strong bipartisan consensus and support for her legislation, ultimately passing it into law as a part of the Bipartisan Infrastructure Law. Senator Murray’s Digital Equity Act provided $2.75 billion to establish three federal grant programs, administered by the NTIA, to promote digital equity nationwide by:
    Building Capacity within States through Formula Grants: Creates a five-year $300 million per year formula grant program for all 50 States, the District of Columbia, and Puerto Rico to fund the creation and implementation of comprehensive digital equity plans in each State.
    Spurring Targeted Action through Competitive Grants: Creates a five-year $250 million per year competitive grant program to support digital inclusion projects undertaken by individual groups, coalitions, and/or communities of interest.
    Supporting Research and Evidence-Based Policymaking: Tasks NTIA with evaluating digital equity projects and providing policymakers at the local, state, and federal levels with detailed information about which projects are most effective.
    Digital equity funds can be used in all kinds of ways to support Washington state families and our economy:
    Workforce: supporting the work of local workforce boards, community and technical colleges, and community-based organizations by increasing access to devices across underserved populations, increasing the digital skills of Washington’s current and future workforce, and by increasing the accessibility of state and local resources to workers.
    Education: supporting Washington’s public schools, community and technical colleges, and community-based organizations as they work to integrate technology literacy and fluency in their curriculum, reducing barriers and advancing access to technology, including digital devices, internet connection, and digital skills training.
    Health Care: supporting the Washington Department of Health and the Washington State Health Care Authority in expanding opportunities for Washingtonians to access telehealth services, reducing the need to travel long distances in rural areas for preventative and specialist care. Additionally, the digital equity funds could be used to work with partner organizations to expand the availability and awareness of culturally sensitive and linguistically accessible online healthcare resources and services.
    And much more.
    Senator Murray’s remarks, as delivered, are below and HERE:
    “Thank you everyone for joining. I wish we didn’t need to have this call today, but as usual President Trump is spouting off about something he has no clue about—and he’s making it everyone else’s problem.
    “Last week, on a Thursday afternoon President Trump suddenly decided to ‘declare’ the Digital Equity Act, a bipartisan law that I wrote, unconstitutional. Needless to say, a President cannot overrule a law—period. And certainly not through a tweet. But that hasn’t stopped this administration from illegally blocking the funding from the Digital Equity Act to all 50 states.
    “I passed this law in 2021 as a part of the Bipartisan Infrastructure Law—and I actually first introduced the bill in 2019 to help close the digital divide, even before COVID.
    “I remember being in Forks Washington back in 2019, a very remote part of my state on the Olympic Peninsula talking about this bill. A local math teacher told me when it came to high-speed internet and digital resources, they felt like Port Townsend in the 1890s waiting for rail—for anyone who’s not familiar, the train never did make it over the mountains to Port Townsend. But I was determined to not let history repeat itself with high-speed internet. 
    “So, I worked hard and built a massive coalition of support for the Digital Equity Act and I worked really hard to make sure Republicans would be on board too—Senator Portman from Ohio co-led the bill with me.
    “And guess what? Digital Equity passed with overwhelming bipartisan support. And that’s because my Republican colleagues have heard the same stories as I have—like kids in rural communities forced to drive to McDonalds parking lots for Wi-Fi to do their homework. That shouldn’t happen in America!
    “Everyone agrees the federal government has a role to play in closing the digital divide. This isn’t a partisan issue. That’s why we saw public statements of support for Digital Equity dollars from Democrats and Republicans.
    “Every single state—all 50 of them—submitted a plan to the Biden administration to qualify for Digital Equity dollars, outlining exactly how they would use these funds and why they needed them.
    “Not a single Republican governor in 2024 felt the law was unconstitutional then—certainly none of them thought it was ‘racist’ or ‘illegal’ like the President is saying.
    “That’s why people as conservative as the Republican governors of Montana and Ohio were touting Digital Equity dollars. Even Kristi Noem’s administration made certain to plaster her name all over the digital equity plan they submitted to the Biden administration.
    “Everyone wanted Digital Equity dollars—and listen, call it digital equity or digital opportunity, the money does the same thing! So why is the President all of a sudden doing this?
    “It is insane—absolutely nuts—that Trump is blocking resources to help make sure kids in rural school districts can get hotspots or laptops, all because he doesn’t like the word equity!
    “This administration’s deranged obsession with forcing extremist right-wing culture wars on all of us is not an acceptable or legal reason to deny states access to these funds.
    “Whether it’s helping veterans in Ohio navigate the VA benefits available to them online or making sure seniors in rural Texas can access telehealth resources—Trump is stealing from every state in America.
    “Democrats will fight this every step of the way, but my Republican colleagues will need to explain to their constituents why middle schoolers in rural districts shouldn’t get laptops.
    “With that, I’m glad to turn it over to Aaron Wheeler who knows better than anyone that Digital Equity dollars will help everyone—in every community, in every part of Washington state.”

    MIL OSI USA News –

  • MIL-OSI USA: Warner & Kaine on Nomination of Erik Siebert for Eastern District of Virginia

    US Senate News:

    Source: United States Senator for Commonwealth of Virginia Mark R Warner
    WASHINGTON – U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) released the following statement on the President’s nomination of Erik Siebert to serve as the U.S. Attorney for the Eastern District (EDVA):
    “Mr. Siebert has dedicated his career to protecting public safety, from his work with the Washington DC Metropolitan Police Department to his handling of violent crimes and firearms trafficking as a line Assistant U.S. Attorney in the Eastern District of Virginia. With his experience and dedication to service, Mr. Siebert is equipped to handle the challenges and important obligations associated with this position. We look forward to voting in favor of his confirmation.”
    Earlier this year, Sens. Warner and Kaine sent a letter to the White House recommending Mr. Siebert, who currently serves as the Interim United States Attorney for the EDVA. His nomination is subject to confirmation by the full Senate.
     

    MIL OSI USA News –

  • MIL-OSI USA: “NIH Cuts Will Hurt” RFK Jr. Admits When Pressed by Senator Murray On Harm to NIH Clinical Care, Confronted with Constituent’s Personal Story

    US Senate News:

    Source: United States Senator for Washington State Patty Murray
    In response to question about Trump’s proposal to nearly halve the NIH’s budget, Kennedy concedes “I think the cuts that are now proposed by NIH are gonna hurt.”
    ICYMI: In Seattle, Senator Murray Highlights Consequences of Trump & Elon’s Cuts & Layoffs at NIH—Hears from Leading Researchers, Patients, and Early Career Scientists
    ***WATCH: Senator Murray’s remarks and questioning of Secretary Kennedy***
    ***WATCH: Senator Murray rebuts Secretary Kennedy’s claims about her constituent, Natalie***
    Washington, D.C. — Today, at a Senate Health, Education, Labor and Pensions (HELP) Committee hearing with U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy Jr., U.S. Senator Patty Murray (D-WA), a senior member and former Chair of the HELP Committee, grilled Secretary Kennedy on how the Trump administration is endangering Americans’ health and safety by slashing staff and blocking funding at the National Institute of Health (NIH) and firing nearly 90 percent of staff at the CDC’s National Institute for Occupational Safety and Health (NIOSH), including nearly 100 staff in Spokane.
    In their unprecedented and reckless effort to gut HHS—including pushing out 20,000 HHS employees and defunding critical research—President Trump and Secretary Kennedy are creating total chaos, delaying funding and stalling research for lifesaving treatments and cures, weakening our biomedical workforce, cancelling vital ongoing studies and delaying clinical trials, and threatening to undo decades of hard-won progress.
    Senator Murray began by sharing the story of her constituent, Natalie Phelps of Washington state: “One of my constituents, Natalie Phelps—a mom of two from Bainbridge Island in Washington state. She has been fighting aggressive Stage Four colorectal cancer for nearly five years now. Her best hope now is a clinical trial at the NIH Clinical Center. She flew out to the NIH just a few weeks ago for her first appointment, and her care team wanted her to come back in four weeks to start treatment. But because of the thoughtless, mass firing of thousands of critical employees across NIH and HHS that you have carried out, Natalie’s doctors at that clinical center have told her that they have no choice but to delay her treatment by an additional four weeks. Now, an extra four weeks may not sound like a long time but, I will tell you, for Stage Four cancer patients like Natalie, this could mean the difference between life and death.”
    Senator Murray asked Secretary Kennedy, “How many staff have been cut from the NIH’s Clinical Center? I want a specific number.”
    “I can’t tell you that now, Senator Murray. What I can tell you is that if you contact my office tomorrow, I’ll look specifically into that,” replied Secretary Kennedy.
    Senator Murray pressed, “Well, that is not acceptable. I want an answer back [on] that. She deserves it. She doesn’t have much time. She deserves an answer back.”
    Secretary Kennedy demurred, again saying Murray should contact his office, and eventually stated: “I don’t think that should happen to anybody.”
    Senator Murray then pressed: “What have you—and I mean you personally—done to assess how these staff cuts are impacting patient care? She is one of many. What have you done to assess that?” Senator Murray
    Secretary Kennedy responded, “I’ve revised the guidelines and said we shouldn’t—no, no clinical trials should be affected by the cuts.”
    Senator Murray made clear: “Mr. Secretary, I just have a short amount of time. They [your cuts] are impacting clinical trials. … I want to tell you, you need to know this. Natalie, is sitting there waiting.”
    Secretary Kennedy then repeatedly interrupted. Senator Murray reclaimed her time and pressed further: “I am asking you a question and it is critical. You are here to defend cutting NIH by half. Do you genuinely believe that that won’t result in more stories like Natalie’s?”
    Secretary Kennedy responded: “I think the cuts that are now proposed by NIH are gonna hurt. I think President Trump – you know, there’s no agency head in government like myself who wants to see their budget cut.”
    After more back and forth, Senator Murray stated: “Well, I will just say that it is my job to be a voice for people like Natalie and countless other patients who are like her. So you’ve got to fix this. I want to know, and I want a personal update on Natalie’s case, and you’ve offered that, please give that to me in the next 24 hours, and I expect details and transparency about the state of NIH clinical care.”
    Senator Murray continued her questioning by pressing Secretary Kennedy on the decimation of NIOSH and mass firings, including at the NIOSH Spokane Research Laboratory in Eastern Washington, which is the largest NIOSH facility west of the Mississippi River. Senator Murray has slammed the Trump administration for eviscerating the NIOSH Laboratory in Spokane as part of their mass layoffs. “I’m alarmed by your decision to essentially eliminate the National Institute for Occupational Safety and Health,” said Senator Murray. “You have already fired nearly 90 percent of staff. That includes the staff in my state at the Spokane Research Lab. Those are experts who do essential work to protect miners and firefighters and farm workers and people who are working in dangerous conditions. I am told that after backlash, you are reinstating some of those, mainly in the West Virginia office … nobody in the Western United States, and there doesn’t seem to be any rhyme or reason as to how you’ve made these decisions. And how do you explain this to my constituents in Spokane, who are out of a job, and the workers that are being impacted by that.”
    Secretary Kennedy confirmed that he has brought back some of the workers he’d fired after facing backlash, but did not provide a rationale for the cuts in Washington, stating in part: “The work at NIOSH will not be interrupted. We’re going – I brought back 328 workers, mainly in the Cleveland office and the Morgantown office, and for the World Trade Center site. And that work will continue. The work on mine safety will continue.” However, critical mine safety research occurred at the Spokane lab—and Secretary Kennedy failed to provide any explanation for those cuts—or a commitment to rehire those workers. (Secretary Kennedy also misstated the number of fired workers that have since been rehired and where they work: 313, not 328, have been rehired, and the office in question is Cincinnati, not Cleveland.)
    Senator Murray concluded: “Mr. Chairman, I would just say you can’t fire 90 percent of the people and assume the work gets done.”
    Later in the hearing, Secretary Kennedy asserted that Natalie was ineligible for her clinical trial and called her story a “canard,” saying: “Senator Murray had raised the issue of a constituent of hers who she said had been denied a place in a clinical trial in Washington due to the RIF. We’ve been able to run down that case. The patient was medically ineligible for that trial. It had nothing to do with the RIF. And NIH has been trying to get her into another clinical trial, but none of our clinical trials have been shut down because of the RIF. That was a canard.”
    Senator Murray returned to the hearing to respond directly to Secretary Kennedy: “Secretary Kennedy came back and said my constituent, who I spoke about earlier, [her care] was not delayed by staffing cuts. First off, she is already enrolled in that clinical trial. It’s not a question of eligibility—the issue, as I stated clearly, was the delay in care that she got. And what you stated, Secretary Kennedy, is not true.”
    “I spoke with Natalie, actually, last night. She asked her NIH doctor directly why, when she was informed of the delay, and her doctor at NIH said very plainly TWICE: her care was delayed because of staffing cuts. And Mr. Chairman, I think it’s important for the record to show, my staff has put in inquiries with HHS leadership and they’ve been unresponsive so far.And, just to make clear, this is just one case of many. But those are the facts,” Senator Murray said.
    ___________________________________
    Senator Murray has been a leading voice in Congress raising the alarm over HHS’ unilateral reorganization plan and slamming the closure of the HHS Region 10 office in Seattle and the CDC’s National Institute for Occupational Safety and Health (NIOSH) Spokane Research Laboratory. Senator Murray has sent oversight letters and hosted numerous press conferences and events to lay out how the administration’s reckless gutting of HHS is risking Americans health and safety and will set our country back decades, and lifting up the voices of HHS employees who were fired for no reason and through no fault of their own.
    In particular, Senator Murray has been leading the charge against the Trump administration’s efforts to gut lifesaving research at NIH and pushed out nearly 5,000 NIH skilled scientists, grants administrators, and other employees at the agency. When the Trump administration attempted to illegally cap indirect cost rates at 15 percent, Senator Murray immediately and forcefully condemned the move, led the entire Senate Democratic caucus in a letter decrying the proposed change, and introduced amendments to Senate Republicans’ budget resolution to reverse it, which Republicans blocked. Murray has led Congressional efforts to boost biomedical research. Previously, over her years as Chair of the Labor-HHS Appropriations Subcommittee, Senator Murray secured billions of dollars in increases for biomedical research at NIH, and during her time as Chair of the HELP Committee she established the new ARPA-H research agency as part of her PREVENT Pandemics Act to advance some of the most cutting-edge research in the field. Senator Murray was also the lead Democratic negotiator of the bipartisan 21st Century Cures Act, which delivered a major federal investment to boost NIH research, among many other investments. 
    Senator Murray forcefully opposed the nomination of notorious anti-vaccine activist RFK Jr. to be Secretary of HHS, and she has long worked to combat vaccine skepticism and highlight the importance of scientific research and vaccines. Murray was also a leading voice against the nomination of Dr. Dave Weldon to lead CDC, repeatedly speaking up about her serious concerns with the nominee immediately after their meeting. In 2019, Senator Murray co-led a bipartisan hearing in the HELP Committee on vaccine hesitancy and spoke about the importance of addressing vaccine skepticism and getting people the facts they need to keep their families and communities safe and healthy. Ahead of the 2019 hearing, as multiple states were facing measles outbreaks in under-vaccinated areas, Murray sent a bipartisan letter with former HELP Committee Chair Lamar Alexander pressing Trump’s CDC Director and HHS Assistant Secretary for Health on their efforts to promote vaccination and vaccine confidence.

    MIL OSI USA News –

  • MIL-OSI USA: Murray, Cantwell, Baldwin, Planned Parenthood Action Fund President Hold Press Conference Slamming Republican Effort to Defund Planned Parenthood, Pass Largest-Ever Cut to Medicaid

    US Senate News:

    Source: United States Senator for Washington State Patty Murray
    ICYMI: Senator Murray Statement on House Republicans’ Bill to Defund Planned Parenthood, Slash Medicaid
    KFF Explainer: How Will the 2025 Budget Reconciliation Affect the ACA, Medicaid, and the Uninsured Rate?
    ***WATCH PRESS CONFERENCE HERE***
    Washington, D.C. — Today, U.S. Senators Patty Murray (D-WA), a senior member and former Chair of the Senate Health, Education, Labor and Pensions (HELP) Committee, Maria Cantwell (D-WA), and Tammy Baldwin (D-WI) joined Planned Parenthood Action Fund President Alexis McGill Johnson and Planned Parenthood advocates in holding a press conference on the Republicans’ partisan reconciliation bill that includes provisions to “defund” Planned Parenthood and make the largest-ever cut to Medicaid in history.
    Republicans’ reconciliation bill, which only requires a simple majority to pass in each chamber of Congress, would result in at least 13.7 million people losing health insurance by 2034, according to the nonpartisan Congressional Budget Office (CBO)—this figure is a result of Republican cuts to Medicaid combined with Republicans’ refusal to extend Affordable Care Act tax credits and the Trump administration’s sabotage of the ACA marketplace. CBO estimates that the provision in House Republicans’ legislation defunding Planned Parenthood would increase the deficit by $300 million.
    “Republicans are gearing [up] to kick more than 8.6 million people off their health insurance, and while they are moving heaven and earth to extend tax cuts for the richest people on the planet, they are not so much as lifting a finger to save the health plan tax credits for working families—something that will push yet another 4 million people off their insurance… Because the brutal reality is that Republicans are not just taking away people’s health coverage, they also want to shut the doors on one of the biggest health care providers in the country. They want to defund Planned Parenthood,” said Senator Murray.“About three in four people say they oppose defunding Planned Parenthood health centers. But Republicans do not care—they need to appease their far-right, anti-choice fringe. Now this is going to hurt their own constituents, seeing as one in three women have been to a Planned Parenthood health center for care. But Republicans don’t care—after all, billionaire tax cuts won’t pay for themselves! Although the irony is, in this case, defunding Planned Parenthood would actually cost our country more money in the long term. CBO estimated yesterday that one provision in House Republicans’ bill would actually increase the deficit by $300 million dollars! And, defunding Planned Parenthood will cut off millions of patients from basic health care like cancer screenings, pap tests, birth control. But Republicans just don’t care—whatever Donald Trump wants, comes first for them. Well, I want everyone to know, Democrats do care. And we are not going to let Republicans blow past all the warning signs. Saving people’s access to basic health care—saving Planned Parenthood—is just too important.”
    One in three women have been to a Planned Parenthood health center for care and for many people, Planned Parenthood health centers are their only source of health care. Planned Parenthood is more popular than any elected official or party, and nearly three-quarters of voters, including more than half of Trump voters, oppose Congress taking away funds from Planned Parenthood health centers for providing birth control, wellness exams, and cancer screenings.
    “Make no mistake: The House’s reconciliation bill is targeting Planned Parenthood. By moving full steam ahead to push a dangerously unpopular agenda, House Republicans have shown they aren’t concerned about their constituents or cutting costs. This effort to ‘defund’ Planned Parenthood will threaten Americans’ health and futures, and leave a gap in care no other provider can fill. We cannot allow these lawmakers to play politics with health care. Planned Parenthood Action Fund is showing up every day with reproductive freedom champions like Sen. Patty Murray until we defeat this outrageous attack,” said Alexis McGill Johnson, President, Planned Parenthood Action Fund.
    “In the State of Washington, Planned Parenthood serves about 100,000 patients annually. So that just tells you, where are those 100,000 people going to go if you don’t have Medicaid as a reimbursement mechanism? About half of those patients rely on Medicaid,” Senator Cantwell said. “Small communities like Pullman, Washington, and other parts of Eastern Washington — where there are no other choices to deliver this kind of care — you’re asking people then to either do without care that might tell us something about a very pressing health care condition, or make you have to give up job time, or drive miles and miles and miles and miles, just to get the care you deserve.”
    “Plain and simple: Republicans are putting health care further out of reach for Americans, all because they need to give tax handouts to their rich friends. Planned Parenthood is a health care provider – they do cancer screenings, regular checkups, and so much more, but Republicans refuse to accept that and would rather try to score political points, so they are going to take that essential health care away from American families. It’s wrong and we are going to fight it,” said Senator Baldwin.
    Senator Murray is a longtime leader in the fight to protect and expand access to reproductive health care and abortion rights and is widely credited with holding the line against any budget deal that would cut funding for Planned Parenthood in 2011 and leading the fight to uphold President Obama’s policy requiring insurers to cover birth control as part of the Affordable Care Act. Murray has led Congressional efforts to fight back after the Supreme Court’s disastrous decision overturning Roe v. Wade, introducing more than a dozen pieces of legislation to protect reproductive rights from further attacks, protect providers, and help ensure women get the care they need; Murray has led efforts to push for passage of these bills on the floor multiple times. Last year, on the anniversary of Roe v. Wade, Murray led her colleagues in hosting a “State of Abortion Rights” briefing with women who have suffered firsthand from Republican abortion bans, and last June, she chaired a HELP Committee hearing titled “The Assault on Women’s Freedoms: How Abortion Bans Have Created a Health Care Nightmare Across America.” Murray helped lead efforts to force Republicans on the record on votes to protect access to contraception and access to IVF (twice), and led her colleagues in raising the alarm about the threat a second Trump administration poses to reproductive rights and abortion access in every state, as outlined in Project 2025.
    Senator Murray’s remarks, as delivered, are below and HERE:
    “Well, thank you all so much for joining us. We are here to raise the alarm as Republicans are now moving heaven and earth to gut health care in this country.
    “You know the saying ‘women and children first?’ Well for Republicans, billionaires go first—and women and children go overboard.
    “That’s essentially the principle they are writing into their reconciliation bill right now.
    “Despite all the warnings from families across the country—despite warnings from themselves, Republicans are gearing [up] to kick more than 8.6 million people off their health insurance.
    “And while they are moving heaven and earth to extend tax cuts for the richest people on the planet, they are not so much as lifting a finger to save the health plan tax credits for working families, something that will push yet another 4 million people off their insurance.
    “But it gets worse—much worse—and that’s what I want to remind everyone here today now.
    “Because the brutal reality is that Republicans are not just taking away people’s health coverage, they also want to shut the doors on one of the biggest health care providers in our country.
    “They want to defund Planned Parenthood.
    “That is wildly unpopular—about three in four people say they oppose defunding Planned Parenthood health centers. But Republicans do not care—they need to appease their far-right, anti-choice fringe.
    “Now this is going to hurt their own constituents, seeing as one in three women have been to a Planned Parenthood health center for care. But Republicans don’t care—after all, billionaire tax cuts won’t pay for themselves!
    “Although the irony is, in this case, defunding Planned Parenthood would actually cost our country more money in the long term. CBO estimated yesterday that one provision in House Republicans’ bill would actually increase the deficit by $300 million dollars!
    “And, defunding Planned Parenthood will cut off millions of patients from basic health care like cancer screenings, pap tests, birth control. But Republicans just don’t care—whatever Donald Trump wants, comes first.
    “Well I want everyone to know, Democrats do care. And we are not going to let Republicans blow past all the warning signs. Saving people’s access to basic health care—saving Planned Parenthood—is just too important.
    “We don’t have to guess at the stakes here—we already know from experience. We have seen exactly what has happened when Republican states have defunded Planned Parenthood: health care outcomes—worse, fewer patients receive care.
    “The fact of the matter is, if Republicans get their way—if they succeed in shutting the doors of Planned Parenthood clinics across the country—millions of women will have nowhere else to turn.
    “After all, two-thirds of Planned Parenthood health centers are in rural and medically underserved areas—places where there’s already a shortage of clinics and health care professionals. And for a lot of these patients, Planned Parenthood is literally the only provider in reach and in budget. They literally can’t afford to lose this care.
    “So, we are not going to stand by as Republicans try to cut off this lifeline, just so they can cut a massive check to billionaires like Trump and Elon Musk.
    “We are here today to put a bright and burning spotlight on the full extent of the destruction Republicans are planning. And to lift up the voices Republicans are most afraid of—the patients who they are trying to cut off from health care.”

    MIL OSI USA News –

  • MIL-OSI USA: Following Grassley Oversight, CMS Takes Action on Rural Hospital Demonstration Program

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley
    WASHINGTON – Sen. Chuck Grassley (R-Iowa) welcomed an action by the Centers for Medicare and Medicaid Services (CMS) to fill 10 available spaces in its Rural Community Hospital Demonstration (RCHD) program. Citing the program’s efficacy and qualifying hospitals’ interest, Grassley has spent years pushing CMS to open RCHD applications and fill empty slots.  
    At a Senate Finance Committee nomination hearing in March, Grassley pressed Dr. Mehmet Oz, then-nominee to be CMS Administrator, to protect and support access to rural health care, including a specific request to fill RCHD slots. 
    “I’m glad to see CMS fill these slots and give more rural hospitals a chance to thrive. Through this program, rural hospitals will have a better opportunity to keep their doors open and continue providing needed services for their local communities. This fight is not over, and Congress must continue pushing to support rural health care in America,” Grassley said. 
    Background:
    The RCHD program boosts financial viability for rural hospitals that are too large to be Critical Access Hospitals and too small to benefit from Medicare’s hospital inpatient prospective payment system. Congress created the RCHD in 2003 and has reauthorized it three times. Currently, there are four Iowa hospitals participating in RCHD.
    Grassley’s Continued Advocacy:
    In 2023, Grassley secured a commitment from then-Health and Human Services (HHS) Secretary Xavier Becerra that his agency would “do more” to support struggling rural hospitals. Grassley followed up by urging CMS to open RCHD spots. At Grassley’s request, CMS spoke with Iowa facilities looking to participate in the RCHD program. 
    However, after months of inaction by the Biden administration, Grassley questioned Secretary Becerra about his failure to fill program openings and penned a letter with Sen. Cindy Hyde-Smith (R-Miss.) reminding CMS it should be wielding every tool available to help rural hospitals. 
    -30-

    MIL OSI USA News –

  • MIL-OSI Russia: China Internet Civilization Conference to Focus on Young Netizens, Digital Literacy

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    BEIJING, May 14 (Xinhua) — The 2025 China Internet Civilization Conference will be held from June 10 to 11 in Hefei, east China’s Anhui Province. The event will focus on building a cyber civilization among young netizens and improving the nation’s digital literacy, organizers said Wednesday.

    As Yang Jianwen, deputy director of the Office of the Central Cyberspace Commission and the State Internet Information Office of the People’s Republic of China, noted at a press conference in Beijing, the program of the two-day conference, themed “Accumulating the Positive Energy of the Internet and Shaping New Trends of the Era,” will include a grand opening ceremony, a main forum, 14 sub-forums and a series of thematic events designed to showcase scientific and technological achievements and innovations.

    The event will also feature a number of new achievements in the field of building a cyber civilization.

    Young Chinese Internet users, whose number has now reached about 540 million, are an important force in the formation of cyber civilization, Yang Jianwen emphasized, adding that an initiative to develop a youth Internet civilization is planned to be announced during the main forum.

    The conference is held by the Office of the Central Cyberspace Commission and the Office of the CPC Central Committee for Spiritual Culture, jointly with the Party Committee and the People’s Government of Anhui Province. –0–

    MIL OSI Russia News –

  • MIL-OSI Russia: World Conference on Digital Education 2025 Opens in Wuhan

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    WUHAN, May 14 (Xinhua) — The 2025 World Conference on Digital Education kicked off Wednesday in Wuhan, central China’s Hubei Province. Chinese Vice Premier Ding Xuexiang attended the opening ceremony and delivered a speech.

    As Ding Xuexiang, also a member of the Standing Committee of the Politburo of the CPC Central Committee, emphasized, China pays close attention to the development of digital education.

    According to him, China, which is currently accelerating the construction of an educational power, will consistently promote digital transformation and intelligent upgrading of the education sector.

    Ding Xuexiang said that China is building a modern digital education system that is more equitable, has higher quality and intellectualization, and provides universal lifelong learning for the entire population.

    The Chinese vice premier called for harnessing the momentum of education development in the age of intelligence, deepening international cooperation in digital education, and accelerating the implementation of the UN Global Digital Compact.

    The 2025 Global Conference on Digital Education on “Education Development and Transformation: The Age of Intelligence” will run until May 16.

    The opening ceremony of the event was attended by more than 600 people, including officials from Chinese and foreign governments, heads of relevant international organizations, representatives from universities, primary and secondary schools, as well as experts and scholars. –0–

    MIL OSI Russia News –

  • MIL-OSI Russia: China suspends designation of several US companies and export restrictions against them

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    BEIJING, May 14 (Xinhua) — China on Wednesday suspended the designation of several U.S. companies as unreliable entities and the application of export restrictions against them, the Ministry of Commerce said.

    In response to media questions, the agency’s official representative said that the measure announced on April 4 to include 11 American companies in China’s list of unreliable entities has been suspended for 90 days.

    The April 9 move to add six more U.S. companies to the list of untrustworthy entities has also been suspended, and Chinese businesses are now allowed to apply to do business with those companies, the spokesman said.

    In addition, China has suspended for 90 days the export control measures that placed 28 U.S. companies on the export control list on April 4 and 9, the Commerce Department official added.

    In the event that exporters need to supply dual-use goods to the above-mentioned 28 companies, they must submit an application to the Ministry of Commerce in accordance with current regulations. –0–

    MIL OSI Russia News –

  • MIL-OSI Russia: Chinese Foreign Minister Meets with New Sudanese Foreign Minister

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    BEIJING, May 14 (Xinhua) — Chinese Foreign Minister Wang Yi met with Omer Mohamed Ahmed Siddig, Sudan’s outgoing ambassador to China and new foreign minister, in Beijing on Wednesday.

    Wang Yi, also a member of the Politburo of the CPC Central Committee, congratulated O. M. A. Siddig on his appointment as Sudanese Foreign Minister and expressed gratitude for his contribution to the development of China-Sudan relations during his time as ambassador to China.

    Noting that this year marks the 10th anniversary of the establishment of strategic partnership between China and Sudan, Wang called on the two sides to implement the important consensus reached by the two heads of state and promote continuous fruitful results in bilateral relations to benefit the peoples of both countries.

    The Chinese diplomat stressed that China firmly supports Sudan in protecting its sovereignty, independence and territorial integrity, as well as in achieving peace, stability and development as soon as possible. China will continue to provide Sudan with feasible humanitarian assistance, the Chinese Foreign Minister added.

    O. M. A. Siddig, in turn, said that Sudan regards China as its most important partner and reliable friend, prioritizes cooperation with it, and will continue to firmly support the country in protecting its core interests. As Foreign Minister, he promised to make every effort to develop the strategic partnership between Sudan and China and to jointly implement important global initiatives put forward by China. –0–

    MIL OSI Russia News –

  • MIL-OSI Russia: Peruvian President Appoints E. Arana as New Prime Minister

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    LIMA, May 14 (Xinhua) — Peruvian President Dina Boluarte on Wednesday appointed former Justice Minister Eduardo Arana as the country’s new prime minister following the resignation of Gustavo Adriaenssen.

    When asked by D. Boluarte during the oath taking session, “Do you swear before God and the Fatherland to conscientiously and faithfully fulfill the duties of Prime Minister, without engaging in corruption?” E. Arana replied, “I swear.”

    Peru’s president then swore in new cabinet members who will serve with her until her term ends next year. –0–

    MIL OSI Russia News –

  • MIL-OSI: Medallion Bank Announces Launch of Series G Preferred Stock Offering

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, May 14, 2025 (GLOBE NEWSWIRE) — Medallion Bank (Nasdaq: MBKNP), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners, announced today that it has launched a public offering of shares of its Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G, par value $1.00 per share, with a liquidation amount of $25 per share (the “Series G Preferred Stock”). Medallion Bank’s Series G Preferred Stock is expected to trade on the Nasdaq Capital Market under the ticker symbol “MBNKO.” Medallion Bank is and will remain a wholly owned subsidiary of Medallion Financial upon completion of the offering.

    Medallion Bank expects to grant the underwriters a 30-day option to purchase additional shares of the Series G Preferred Stock solely to cover over-allotments, if any.

    Medallion Bank intends to use the net proceeds from this offering for general corporate purposes, which may include, among other things, increasing Medallion Bank’s capital levels, growing its consumer loan portfolios or redeeming some or all of its outstanding Series F Non-Cumulative Perpetual Preferred Stock (the “Series F Preferred Stock”), subject to the prior approval of the Federal Deposit Insurance Corporation.

    Piper Sandler & Co. and Lucid Capital Markets, LLC are acting as joint book-running managers. A.G.P./Alliance Global Partners, B. Riley Securities, Inc., InspereX LLC, Ladenburg Thalmann & Co. Inc., Muriel Siebert & Co., LLC, Wedbush Securities Inc., and William Blair & Company, L.L.C. are acting as lead managers.

    The offering of the Medallion Bank’s Series G Preferred Stock is exempt from the registration requirements of the Securities Act of 1933 pursuant to Section 3(a)(2) of that Act and will be made only by means of an offering circular. This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. The securities are neither insured nor approved by the Federal Deposit Insurance Corporation or any other Federal or state regulatory body.

    The preliminary offering circular relating to the offering is available at medallionbankoffering.com. In addition, copies of the preliminary offering circular may also be obtained from: Piper Sandler & Co.; Attn: Debt Capital Markets, 1 Greenwich Plaza, 1st Floor, Suite 111, Greenwich, CT 06830, or by email at fsg-dcm@psc.com.  

    About Medallion Bank

    Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp.

    This press release contains “forward-looking statements”, which reflect Medallion Bank’s current views with respect to future events and which address matters that are, by their nature, inherently uncertain and beyond Medallion Bank’s control. These statements are often, but not always, made through the use of words or phrases such as “expect” and “intend” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to the offering of shares of the Series G Preferred Stock, the anticipated use of the net proceeds by Medallion Bank and the grant to the underwriters of an option to purchase additional shares of the Series G Preferred Stock. No assurance can be given that the transaction discussed above will be completed on the terms described, or at all, or that Medallion Bank will decide to redeem its Series F Preferred Stock or, if it does, the amount to be redeemed and the timing of redemption and required regulatory approval. Completion of the offering on the terms described, including the grant of the option to the underwriters, and the application of net proceeds, are subject to numerous conditions, many of which are beyond the control of Medallion Bank. Medallion Bank undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors,” in Medallion Bank’s Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2025.

    This press release does not constitute a notice of redemption with respect to the Series F Preferred Stock. If Medallion Bank decides to redeem the Series F Preferred Stock, it intends to announce its decision by press release and an appropriate notice of redemption during the applicable notice window.

    Company Contact:
    Investor Relations
    212-328-2176
    InvestorRelations@medallion.com

    The MIL Network –

  • MIL-OSI: Red Cat Reports Financial Results for First Quarter 2025 and Provides Corporate Update

    Source: GlobeNewswire (MIL-OSI)

    SAN JUAN, Puerto Rico, May 14, 2025 (GLOBE NEWSWIRE) — Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or the “Company”), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, reports its financial results for the first quarter ended March 31, 2025 and provides a corporate update.

    Recent Operational Highlights

    • Announced the expansion of our multi-domain Family of Systems with a new line of Unmanned Surface Vessels (USVs). This strategic move marks Red Cat’s official entry into the rapidly evolving maritime autonomy market and reinforces its position as a provider of comprehensive, interoperable unmanned systems for air, land, and sea operations.
    • Expanded our Red Cat Futures Industry Consortium to include Palantir and Palladyne to boost AI capabilities in contested environments, including visual navigation.
    • Introducing Black Widow™ and Edge 130 drones to the Latin American market at LAAD 2025 in Rio De Janeiro, Brazil in April 2025.
    • Introduced our Black Widow™ short-range reconnaissance drone and Edge 130 Tricopter to the Middle East market at the International Defense Exhibition and Conference in Abu Dhabi, UAE, Feb 17-21, 2025.
    • Introduced Black Widow™ to the Asia Pacific Market at the AISSE conference in Putrajaya, Malaysia in January 2025.
    • Announced that the Black Widow drone and FlightWave Edge 130 were included on the list of 23 platforms and 14 unique components and capabilities selected as winners of the Blue UAS Refresh. The platforms will undergo National Defense Authorization Act (NDAA) verification and cyber security review with the ultimate goal of joining the Blue UAS List.
    • Partnered with Palantir to deploy Warp Speed, Palantir’s manufacturing OS. This collaboration will transform our supply and manufacturing operations with Palantir’s AI enabled monitoring, process flow enhancement and comprehensive data analysis. Palantir’s Warp Speed will optimize Red Cat’s production and streamline its supply chain, change management, and quality assurance, ultimately reducing costs and improving margins.

    First Quarter 2025 Financial Highlights

    • Quarterly Revenue of $1.7 million
    • Ended the quarter with cash and accounts receivable of $9.3 million
    • In addition, closed funding of $30.0 million subsequent to quarter end
    • Reiterate 2025 annual revenue guidance of $80 to $120 million for calendar year 2025, which consists of:
      • $25 to $65 million in SRR-related Black Widow sales
      • $25 million in Non-SRR Black Widow sales
      • $25 million in Edge 130 sales
      • $5m in Fang FPV sales

    “Red Cat’s momentum continues to build as we execute on our strategy to deliver advanced, AI-enabled unmanned systems across air, land, and sea,” said Jeff Thompson, Red Cat CEO. “Our partnership with Palantir to deploy Warp Speed is optimizing our manufacturing and cost efficiency, while our expansion into maritime autonomy with Unmanned Surface Vessels significantly expands our Family of Systems. A strong balance sheet bolstered by a recent $30 million capital raise positions us strongly to meet growing domestic and international demand in the second half of 2025.”

    “Our balance sheet remains strong as we transition to production and delivery of our new Black Widow drones,” said Chris Ericson, Red Cat CFO. “We have bolstered our quarter-end cash and receivables of $9 million with an additional $30 million from a capital raise executed soon after quarter-end. This liquidity has given us ample strength and ability to expand manufacturing to meet the impending demands of the U.S. Army’s SRR program and international opportunities for the second half of 2025.”

    Conference Call Today

    CEO Jeff Thompson and CFO Chris Ericson will host an earnings conference call at 4:30 p.m. ET on Wednesday, May 14, 2025, to review financial results and provide an update on corporate developments. Following management’s formal remarks, there will be a question-and-answer session. Interested parties can attend the conference call through a live webcast that can be accessed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=OqffyYp4

    About Red Cat Holdings, Inc.

    Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Through two wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat has developed a Family of Systems. This includes the Black Widow™, a small unmanned ISR system that was awarded the U.S. Army’s Short Range Reconnaissance (SRR) Program of Record contract. The Family of Systems also includes TRICHON™, a fixed-wing VTOL for extended endurance and range, and FANG™, the industry’s first line of NDAA-compliant FPV drones optimized for military operations with precision strike capabilities. Learn more at www.redcat.red.

    Forward Looking Statements

    This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Red Cat Holdings, Inc.’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the Form 10-K filed with the Securities and Exchange Commission on July 27, 2023. Forward-looking statements contained in this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no duty to update such information except as required under applicable law.

    Contact:

    INVESTORS:
    E-mail: Investors@redcat.red

    NEWS MEDIA:
    Phone: (347) 880-2895
    Email: peter@indicatemedia.com

     
    RED CAT HOLDINGS
    Condensed Consolidated Balance Sheets
     
          March 31,     December 31,
          2025       2024  
    ASSETS            
                 
    Cash   $ 7,722,410     $ 9,154,297  
    Accounts receivable, net     1,554,295       489,316  
    Inventory, including deposits     17,107,860       13,592,900  
    Intangible assets including goodwill, net     25,718,450       26,124,133  
    Other     7,552,833       6,243,621  
                 
    TOTAL ASSETS   $ 59,655,848     $ 55,604,267  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
                 
    Accounts payable and accrued expenses   $ 2,712,333     $ 3,289,634  
    Debt obligations     350,000       350,000  
    Customer deposits     220,517       227,484  
    Operating lease liabilities     2,329,194       1,617,596  
    Convertible notes payable     25,132,556       —  
    Total liabilities     30,744,600       5,484,714  
                 
    Stockholders’ capital     176,779,302       174,864,256  
    Accumulated deficit/comprehensive loss     (147,868,054 )     (124,744,703 )
    Total stockholders’ equity     28,911,248       50,119,553  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 59,655,848     $ 55,604,267  
                 
    Condensed Consolidated Statements of Operations
     
          Three months ended
    March 31,
          2025   2024
    Revenues     $ 1,629,662     $ 6,614,029  
                       
    Cost of goods sold       2,480,072       5,492,825  
                       
    Gross (loss) profit       (850,410 )     1,121,204  
                       
    Operating Expenses                  
    Research and development       3,432,593       2,669,502  
    Sales and marketing       3,314,748       1,410,506  
    General and administrative       4,880,448       3,084,495  
    Total operating expenses       11,627,789       7,164,503  
    Operating loss       (12,478,199 )     (6,043,299 )
                       
    Other expense (income)       10,645,152       (635,676 )
                       
    Net loss from continuing operations       (23,123,351 )     (5,407,623 )
                       
    Loss from discontinued operations       —       (1,373,457 )
    Net loss     $ (23,123,351 )   $ (6,781,080 )
                       
    Loss per share – basic and diluted     $ (0.27 )   $ (0.09 )
                       
    Weighted average shares outstanding – basic and diluted       85,505,520       74,204,622  
     
    Condensed Consolidated Statements of Cash Flows
         
          Three months ended March 31,  
          2025       2024  
    Cash Flows from Operating Activities                
    Net loss from continuing operations   $ (23,123,351 )   $ (5,407,623 )
    Non-cash expenses     12,886,204       1,129,679  
    Changes in operating assets and liabilities     (5,670,590 )     (97,316 )
    Net cash used in operating activities     (15,907,737 )     (4,375,260 )
                     
    Cash Flows from Investing Activities                
    Proceeds from divestiture of consumer segment     —       1,000,000  
    Purchases of property and equipment     (273,103 )     (75,991 )
    Net cash (used in) provided by investing activities     (273,103 )     924,009  
                     
    Cash Flows from Financing Activities                
    Proceeds from issuance of convertible notes payable, net     14,432,879       —  
    Proceeds from exercise of stock options     316,074       —  
    Payments of debt obligations, net     —       (147,147 )
    Net cash provided by (used in) financing activities     14,748,953       (147,147 )
                     
    Net cash used in discontinued operations     —       (194,969 )
                     
    Net decrease in Cash     (1,431,887 )     (3,793,367 )
    Cash, beginning of period     9,154,297       10,245,064  
    Cash, end of period    $ 7,722,410     $ 6,451,697  

    The MIL Network –

  • MIL-OSI: Birchcliff Energy Ltd. Announces Strong Q1 2025 Results and Declares Q2 2025 Dividend

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, May 14, 2025 (GLOBE NEWSWIRE) — Birchcliff Energy Ltd. (“Birchcliff” or the “Corporation”) (TSX: BIR) is pleased to announce its Q1 2025 financial and operational results.

    Chris Carlsen, Birchcliff’s President and Chief Executive Officer, commented: “We are pleased to report strong operational and financial results for the first quarter of 2025, driven by our continued focus on operational excellence and our high-quality asset base. We successfully executed our Q1 capital program, drilling 14 wells and bringing 8 wells onstream, resulting in first quarter average production of 77,363 boe/d. We generated adjusted funds flow(1) of $124.4 million in Q1 2025 (an 88% increase from Q1 2024), driven by increased production and a stronger average realized natural gas sales price, which benefitted from our natural gas market diversification, with approximately 78% of our natural gas volumes realizing U.S. pricing at the Dawn and NYMEX HH markets. We achieved free funds flow(1) of $12.6 million in the first quarter, notwithstanding that approximately 40%(2) of our full-year capital budget was invested in Q1 2025 prior to spring break-up. With a substantial portion of our capital program behind us, we expect to generate significant free funds flow during the remainder of the year, which will be allocated primarily towards reducing our total debt(3) by approximately 28% from year end 2024(4) , after the payment of our base dividend. Our 2025 production guidance and capital program are unchanged and we remain focused on capital efficiency improvements, driving down our costs and strengthening our balance sheet.

    This year marks a significant milestone for Birchcliff as we celebrate our 20th anniversary. We extend our gratitude to our dedicated staff, our board of directors and our shareholders for their support over the years. Together, we look forward to a promising future, leveraging our strengths to navigate the evolving market, drive profitable growth and deliver long-term shareholder value.”

    Q1 2025 FINANCIAL AND OPERATIONAL HIGHLIGHTS

    • Delivered average production of 77,363 boe/d (82% natural gas, 10% NGLs, 6% condensate and 2% light oil), a 3% increase from Q1 2024.
    • Generated adjusted funds flow of $124.4 million, or $0.46 per basic common share(5), an 88% and 84% increase, respectively, from Q1 2024. Cash flow from operating activities was $126.1 million, a 93% increase from Q1 2024.
    • Reported net income to common shareholders of $65.7 million, or $0.24 per basic common share, as compared to a net loss to common shareholders of $15.0 million and $0.06 per basic common share in Q1 2024.
    • Birchcliff’s market diversification contributed to an effective average realized natural gas sales price(5) of $4.89/Mcf in Q1 2025, which represents a 142% premium to the average benchmark AECO 7A Monthly Index price in the quarter.
    • Achieved an operating netback(5) of $17.71/boe, a 38% increase from Q1 2024.
    • Birchcliff had a very active first quarter capital program, drilling 14 (14.0 net) wells and bringing 8 (8.0 net) wells on production, with F&D capital expenditures totalling $111.8 million in Q1 2025.

    Birchcliff’s unaudited interim condensed financial statements for the three months ended March 31, 2025 and related management’s discussion and analysis will be available on its website at www.birchcliffenergy.com and on SEDAR+ at www.sedarplus.ca. Birchcliff’s updated corporate presentation will be available on its website at www.birchcliffenergy.com on May 14, 2025.

    ______________________________

    (1)  Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures”.

    (2)  Based on the mid-point of Birchcliff’s 2025 capital budget of $260 million to $300 million.

    (3)  Capital management measure. See “Non-GAAP and Other Financial Measures”.

    (4)  Based on the mid-point of Birchcliff’s total debt guidance range at year end 2025 of $365 million to $405 million and as compared to Birchcliff’s total debt at year end 2024 of $535.6 million.

    (5)  Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.

    DECLARATION OF Q2 2025 QUARTERLY DIVIDEND

    • Birchcliff’s board of directors (the “Board”) has declared a quarterly cash dividend of $0.03 per common share for the quarter ending June 30, 2025.
    • The dividend will be payable on June 30, 2025 to shareholders of record at the close of business on June 13, 2025. The dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada).

    EXTENSION OF CREDIT FACILITIES

    • Subsequent to the end of Q1 2025, Birchcliff’s syndicate of lenders completed its regular semi-annual review of the borrowing base limit under the Corporation’s extendible revolving credit facilities (the “Credit Facilities”).
    • In connection therewith, the agreement governing the Credit Facilities was amended effective May 7, 2025 to extend the maturity dates of each of the syndicated extendible revolving term credit facility and the extendible revolving working capital facility from May 11, 2027 to May 11, 2028. In addition, the lenders confirmed the borrowing base limit at $850 million. The Credit Facilities do not contain any financial maintenance covenants.

    ANNUAL MEETING OF SHAREHOLDERS

    • Birchcliff’s annual meeting of shareholders is scheduled to take place tomorrow, Thursday, May 15, 2025, at 3:00 p.m. (Mountain Daylight Time) in the McMurray Room at the Calgary Petroleum Club, 319 – 5th Avenue S.W., Calgary, Alberta.

    This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. For further information regarding the forward-looking statements and forward-looking information contained herein, see “Advisories – Forward-Looking Statements”. With respect to the disclosure of Birchcliff’s production contained in this press release, production volumes have been disclosed on a “gross” basis, as such term is defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). For further information regarding the disclosure of Birchcliff’s production contained herein, see “Advisories – Production”. In addition, this press release uses various “non-GAAP financial measures”, “non-GAAP ratios” and “capital management measures” as such terms are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”). Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and might not be comparable to similar financial measures disclosed by other issuers. For further information regarding the non-GAAP and other financial measures used in this press release, see “Non-GAAP and Other Financial Measures”.

    Q1 2025 UNAUDITED FINANCIAL AND OPERATIONAL SUMMARY

      Three months ended Three months ended
      March 31, 2025 March 31, 2024
    OPERATING    
    Average production    
    Light oil (bbls/d) 1,795   1,525  
    Condensate (bbls/d) 4,238   4,765  
    NGLs (bbls/d) 7,626   7,397  
    Natural gas (Mcf/d) 382,224   370,288  
    Total (boe/d) 77,363   75,402  
    Average realized sales prices (CDN$)    
    Light oil (per bbl) 95.27   95.24  
    Condensate (per bbl) 97.98   100.26  
    NGLs (per bbl) 27.95   27.59  
    Natural gas (per Mcf) 3.64   2.61  
    Total (per boe) 28.32   23.80  
    NETBACK AND COST ($/boe)    
    Petroleum and natural gas revenue 28.32   23.80  
    Royalty expense (2.16 ) (2.11 )
    Operating expense (3.04 )(1) (3.85 )
    Transportation and other expense(2) (5.41 ) (4.99 )
    Operating netback(2) 17.71   12.85  
    G&A expense, net (1.42 ) (1.28 )
    Interest expense (1.27 ) (1.13 )
    Lease interest expense (0.33 )(1) –  
    Realized gain (loss) on financial instruments 3.18   (0.82 )
    Other cash income –   0.01  
    Adjusted funds flow(2) 17.87   9.63  
    Depletion and depreciation expense (8.99 ) (8.56 )
    Unrealized gain (loss) on financial instruments 3.53   (3.28 )
    Other expenses(3) (0.48 ) (0.52 )
    Deferred income tax (expense) recovery (2.49 ) 0.54  
    Net income (loss) to common shareholders 9.44   (2.19 )
    FINANCIAL    
    Petroleum and natural gas revenue ($000s) 197,188   163,304  
    Cash flow from operating activities ($000s) 126,097   65,255  
    Adjusted funds flow ($000s)(4) 124,413   66,081  
    Per basic common share ($)(2) 0.46   0.25  
    Free funds flow ($000s)(4) 12,594   (36,692 )
    Per basic common share ($)(2) 0.05   (0.14 )
    Net income (loss) to common shareholders ($000s) 65,727   (15,035 )
    Per basic common share ($) 0.24   (0.06 )
    End of period basic common shares (000s) 272,071   268,578  
    Weighted average basic common shares (000s) 271,614   267,905  
    Dividends on common shares ($000s) 8,151   26,857  
    F&D capital expenditures ($000s)(5) 111,819   102,773  
    Total capital expenditures ($000s)(4) 112,473   103,484  
    Revolving term credit facilities ($000s) 518,581   428,566  
    Total debt ($000s)(6) 534,710   443,380  

    (1)  Effective July 1, 2024, Birchcliff assumed operatorship of a third-party natural gas processing facility that resulted in the take-or-pay commitment associated with the underlying processing arrangement (the “Gas Processing Lease”) being classified as a lease under IFRS Accounting Standards. Birchcliff’s operating expense and lease interest expense for the three months ended March 31, 2025 include the financial effects of the Gas Processing Lease.

    (2)  Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.

    (3)  Includes non-cash items such as compensation, accretion, amortization of deferred financing fees and other gains and losses.

    (4)  Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures”.

    (5)  See “Advisories – F&D Capital Expenditures”.

    (6)  Capital management measure. See “Non-GAAP and Other Financial Measures”.

    2025 GUIDANCE

    • Birchcliff is reaffirming its 2025 annual average production guidance of 76,000 to 79,000 boe/d and F&D capital expenditures guidance of $260 million to $300 million.
    • As a result of the continued volatility in commodity prices driven by the uncertainties surrounding tariffs, global trade tensions and OPEC+ production increases, Birchcliff has lowered its commodity price assumptions for the remainder of 2025 and revised its guidance for adjusted funds flow, free funds flow and total debt accordingly. In addition, the Corporation has lowered its royalty expense guidance for 2025, primarily due to lower oil prices forecasted for the remainder of the year.
    • Birchcliff expects to significantly strengthen its balance sheet in 2025, with free funds flow (after the payment of dividends) anticipated to be allocated primarily towards debt reduction. Based on its current commodity price assumptions, Birchcliff expects to exit 2025 with total debt of $365 million to $405 million, which represents a 28% reduction from its total debt at year end 2024 of $535.6 million.
    • The following tables set forth Birchcliff’s updated and previous guidance and commodity price assumptions for 2025, as well as its free funds flow sensitivity:
      Updated 2025 guidance and
    assumptions – May 14, 2025    (1)    		   Previous 2025 guidance and
    assumptions – March 12, 2025
    Production      
    Annual average production (boe/d) 76,000 – 79,000   76,000 – 79,000
    % Light oil 3%   3%
    % Condensate 6%   6%
    % NGLs 9%   9%
    % Natural gas 82%   82%
           
    Average Expenses ($/boe)      
    Royalty $1.90 – $2.10   $2.10 – $2.30
    Operating $2.90 – $3.10   $2.90 – $3.10
    Transportation and other(2) $5.55 – $5.75   $5.55 – $5.75
           
    Adjusted Funds Flow (millions)(3) $480   $580
           
    F&D Capital Expenditures (millions) $260 – $300   $260 – $300
           
    Free Funds Flow (millions)(3) $180 – $220   $280 – $320
           
    Total Debt at Year End (millions)(4) $365 – $405   $265 – $305
           
    Natural Gas Market Exposure      
    AECO exposure as a % of total natural gas production 23%   23%
    Dawn exposure as a % of total natural gas production 41%   41%
    NYMEX HH exposure as a % of total natural gas production 35%   35%
    Alliance exposure as a % of total natural gas production 1%   1%
           
    Commodity Prices      
    Average WTI price (US$/bbl) $61.75(5)   $67.00
    Average WTI-MSW differential (CDN$/bbl) $5.60(5)   $8.80
    Average AECO price (CDN$/GJ) $2.30(5)   $2.20
    Average Dawn price (US$/MMBtu) $3.65(5)   $4.20
    Average NYMEX HH price (US$/MMBtu) $3.95(5)   $4.50
    Exchange rate (CDN$ to US$1) 1.41(5)   1.44
    Forward eight months’ free funds flow sensitivity(5)(6) Estimated change to
    2025 free funds flow (millions)
    Change in WTI US$1.00/bbl $2.6
    Change in NYMEX HH US$0.10/MMBtu $4.5
    Change in Dawn US$0.10/MMBtu $5.5
    Change in AECO CDN$0.10/GJ $2.4
    Change in CDN/US exchange rate CDN$0.01 $3.5

    (1)  Birchcliff’s guidance for its production commodity mix, adjusted funds flow, free funds flow, total debt and natural gas market exposure in 2025 is based on an annual average production rate of 77,500 boe/d in 2025, which is the mid-point of Birchcliff’s annual average production guidance range for 2025. Changes in assumed commodity prices and variances in production forecasts can have an impact on the Corporation’s forecasts of adjusted funds flow and free funds flow and the Corporation’s other guidance, which impact could be material. In addition, any acquisitions or dispositions completed over the course of 2025 could have an impact on Birchcliff’s 2025 guidance and assumptions set forth herein, which impact could be material. For further information regarding the risks and assumptions relating to the Corporation’s guidance, see “Advisories – Forward-Looking Statements”.

    (2)  Non-GAAP ratio. See “Non-GAAP and Other Financial Measures”.

    (3)  Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures”.

    (4)  Capital management measure. See “Non-GAAP and Other Financial Measures”.

    (5)  Birchcliff’s updated commodity price and exchange rate assumptions and free funds flow sensitivity for 2025 are based on anticipated full-year averages using the Corporation’s anticipated forward benchmark commodity prices and the CDN/US exchange rate as of May 5, 2025, which include settled benchmark commodity prices and the CDN/US exchange rate for the period from January 1, 2025 to April 30, 2025.

    (6)  Illustrates the expected impact of changes in commodity prices and the CDN/US exchange rate on the Corporation’s updated forecast of free funds flow for 2025, holding all other variables constant. The sensitivity is based on the updated commodity price and exchange rate assumptions set forth in the table above. The calculated impact on free funds flow is only applicable within the limited range of change indicated. Calculations are performed independently and may not be indicative of actual results. Actual results may vary materially when multiple variables change at the same time and/or when the magnitude of the change increases.

    • The oil and natural gas industry in Canada, along with other industries, has faced considerable uncertainty in respect of the United States’ evolving trade policy. Although Birchcliff currently anticipates that U.S. tariffs will not have a material impact on its business, this considerable uncertainty makes it impossible to predict what, if any, impacts there might be on the Corporation’s business. Birchcliff will continue to monitor developments in U.S. trade policy, assess any potential impacts on the Corporation’s business and will update its guidance if, as and when appropriate.

    Q1 2025 FINANCIAL AND OPERATIONAL RESULTS

    Production

    • Birchcliff’s production averaged 77,363 boe/d in Q1 2025, a 3% increase from Q1 2024. The increase was primarily due to the strong performance of the Corporation’s capital program and the successful drilling of new Montney/Doig wells brought on production since Q1 2024, specifically high-rate natural gas wells in liquids-rich zones in Pouce Coupe and light oil and liquids-rich natural gas wells in Gordondale, partially offset by natural production declines.
    • Liquids accounted for 18% of Birchcliff’s total production in both Q1 2025 and Q1 2024.

    Adjusted Funds Flow and Cash Flow From Operating Activities

    • Birchcliff’s adjusted funds flow was $124.4 million in Q1 2025, or $0.46 per basic common share, an 88% and 84% increase, respectively, from Q1 2024.
    • Birchcliff’s cash flow from operating activities was $126.1 million in Q1 2025, a 93% increase from Q1 2024.
    • The increases were primarily due to higher natural gas revenue, which largely resulted from higher natural gas production in Q1 2025 and a 39% increase in the average realized natural gas sales price Birchcliff received for such production as compared to Q1 2024. Adjusted funds flow and cash flow from operating activities were also positively impacted by a realized gain on financial instruments of $22.2 million in Q1 2025 as compared to a realized loss on financial instruments of $5.6 million in Q1 2024.

    Net Income (Loss) to Common Shareholders

    • Birchcliff reported net income to common shareholders of $65.7 million in Q1 2025, or $0.24 per basic common share, as compared to a net loss to common shareholders of $15.0 million and $0.06 per basic common share in Q1 2024.
    • The change to a net income position was primarily due to higher adjusted funds flow and an unrealized gain on financial instruments of $24.6 million in Q1 2025 as compared to an unrealized loss on financial instruments of $22.5 million in Q1 2024, partially offset by a deferred income tax expense of $17.3 million in Q1 2025 as compared to a deferred income tax recovery of $3.7 million in Q1 2024.

    Capital Activities and Investment

    • Birchcliff had a very active first quarter capital program, drilling 14 (14.0 net) wells and bringing 8 (8.0 net) wells on production, with F&D capital expenditures totalling $111.8 million in Q1 2025.

    Debt and Credit Facilities

    • Total debt at March 31, 2025 was $534.7 million, a 21% increase from March 31, 2024.
    • At March 31, 2025, Birchcliff had a balance outstanding under its Credit Facilities of $522.3 million (March 31, 2024: $430.2 million) from available Credit Facilities of $850.0 million (March 31, 2024: $850.0 million), leaving the Corporation with $327.7 million (39%) of unutilized credit capacity after adjusting for outstanding letters of credit and unamortized deferred financing fees.

    Natural Gas Market Diversification

    • Birchcliff’s physical natural gas sales exposure primarily consists of the AECO, Dawn and Alliance markets. In addition, the Corporation has various financial instruments outstanding that provide it with exposure to NYMEX HH pricing.
    • The following table sets forth Birchcliff’s effective sales, production and average realized sales price for its natural gas and liquids for Q1 2025, after taking into account the Corporation’s financial instruments:
    Three months ended March 31, 2025
      Effective
    sales
    (CDN$000s)    		 Percentage
    of total sales
    (%)    		 Effective
    production
    (per day)    		 Percentage of
    total natural gas
    production
    (%)    		 Percentage of
    total corporate
    production
    (%)    		 Effective average
    realized
    sales price
    (CDN$)
    Market            
    AECO(1)(2) 16,210 7 82,553 Mcf 22 18 2.18/Mcf
    Dawn(3) 82,094 34 162,982 Mcf 43 35 5.60/Mcf
    NYMEX HH(1)(4) 69,988 29 136,689 Mcf 35 29 5.69/Mcf
    Total natural gas(1) 168,292 70 382,224 Mcf 100 82 4.89/Mcf
    Light oil 15,391 6 1,795 bbls   2 95.27/bbl
    Condensate 37,371 16 4,238 bbls   6 97.98/bbl
    NGLs 19,183 8 7,626 bbls   10 27.95/bbl
    Total liquids 17,945 30 13,659 bbls   18 58.52/bbl
    Total corporate(1) 240,237 100 77,363 boe   100 34.50/boe

    (1)  Effective sales and effective average realized sales price on a total natural gas and total corporate basis and for the AECO and NYMEX HH markets are non-GAAP financial measures and non-GAAP ratios, respectively. See “Non-GAAP and Other Financial Measures”.

    (2)  Birchcliff has short-term physical sales agreements with third-party marketers to sell and deliver into the Alliance pipeline system. All of Birchcliff’s short-term physical Alliance sales and production during Q1 2025 received AECO premium pricing and have therefore been included as effective sales and production in the AECO market.

    (3)  Birchcliff has agreements for the firm service transportation of an aggregate of 175,000 GJ/d of natural gas on TransCanada PipeLines’ Canadian Mainline, whereby natural gas is transported to the Dawn trading hub in Southern Ontario.

    (4)  NYMEX HH effective sales and production include financial NYMEX HH/AECO 7A basis swap contracts for an aggregate of 147,500 MMBtu/d at an average contract price of NYMEX HH less US$1.088/MMBtu during Q1 2025.

    Birchcliff’s effective average realized sales price for NYMEX HH of CDN$5.69/Mcf (US$3.65/MMBtu) was determined on a gross basis before giving effect to the average NYMEX HH/AECO 7A fixed contract basis differential price of CDN$1.70/Mcf (US$1.088/MMBtu) and includes any realized gains and losses on financial NYMEX HH/AECO 7A basis swap contracts during Q1 2025.

    After giving effect to the NYMEX HH/AECO 7A fixed contract basis differential price and including any realized gains and losses on financial NYMEX HH/AECO 7A basis swap contracts during Q1 2025, Birchcliff’s effective average realized net sales price for NYMEX HH was CDN$3.99/Mcf (US$2.56/MMBtu) in Q1 2025.

    • The following table sets forth Birchcliff’s physical sales, production, average realized sales price, transportation costs and natural gas sales netback by natural gas market for the periods indicated, before taking into account the Corporation’s financial instruments:
    Three months ended March 31, 2025
    Natural
    gas
    market    		 Natural gas
    sales
    (CDN$000s)    		 Percentage of
    natural gas
    sales
    (%)    		 Natural gas
    production
    (Mcf/d)    		 Percentage of
    natural gas
    production
    (%)    		 Average realized
    natural gas sales
    price
    (CDN$/Mcf)    		 Natural gas
    transportation
    costs    (1)
    (CDN$/Mcf)    		 Natural gas
    sales
    netback    (2)
    (CDN$/Mcf)
    AECO 42,368 34 215,026 56 2.19 0.46 1.73
    Dawn 82,094 65 162,982 43 5.60 1.55 4.05
    Alliance(3) 769 1 4,216 1 2.03 – 2.03
    Total 125,231 100 382,224 100 3.64 0.92 2.72
    Three months ended March 31, 2024
    Natural
    gas
    market    		 Natural gas
    sales
    (CDN$000s)    		 Percentage of
    natural gas
    sales
    (%)    		 Natural gas
    production
    (Mcf/d)    		 Percentage of
    natural gas
    production
    (%)    		 Average realized
    natural gas sales
    price
    (CDN$/Mcf)    		 Natural gas
    transportation
    costs    (1)
    (CDN$/Mcf)    		 Natural gas
    sales
    netback    (2)
    (CDN$/Mcf)
    AECO 38,639 44 195,141 53 2.19 0.40 1.79
    Dawn 45,198 51 161,667 44 3.07 1.41 1.66
    Alliance(3) 4,185 5 13,480 3 3.41 – 3.41
    Total 88,022 100 370,288 100 2.61 0.83 1.78

    (1)  Reflects costs to transport natural gas from the field receipt point to the delivery sales trading hub.

    (2)  Natural gas sales netback denotes the average realized natural gas sales price less natural gas transportation costs.

    (3)  Birchcliff has short-term physical sales agreements with third-party marketers to sell and deliver into the Alliance pipeline system. Alliance sales are indexed to the AECO 5A benchmark index price and are recorded net of transportation tolls.

    OPERATIONAL UPDATE

    • Birchcliff’s 2025 capital budget of $260 million to $300 million includes the drilling of 25 (25.0 net) wells and the bringing on production of 26 (26.0 net) wells in 2025. Year-to-date, the Corporation has drilled 15 (15.0 net) wells and brought 12 (12.0 net) wells on production.
    • In the first quarter of 2025, Birchcliff delivered strong execution metrics, building on the operational momentum and key learnings from a successful capital program in 2024. Birchcliff’s teams continue to demonstrate a steadfast focus on execution, operational efficiency and disciplined cost management. Birchcliff’s purposeful execution is helping to strengthen its performance and position the business for sustainable growth through the remainder of the year and in the long-term.

    Pouce Coupe

    • Birchcliff completed the drilling of its 5-well 04-05 pad in December 2024 and the wells were turned over to production through Birchcliff’s permanent facilities in early March 2025. This pad targeted high-rate natural gas wells in the Lower Montney. The wells have shown strong production rates exhibiting low declines as highlighted in the table below, which summarizes the aggregate and average production rates for the wells from the pad:

    5-Well 04-05 Pad IP Rates

      Wells: IP 30(1) Wells: IP 60(1)
    Aggregate production rate (boe/d) 6,130 5,578
      Aggregate natural gas production rate (Mcf/d) 34,691 31,864
      Aggregate condensate production rate (bbls/d) 348 267
    Average per well production rate (boe/d) 1,226 1,116
      Average per well natural gas production rate (Mcf/d) 6,938 6,373
      Average per well condensate production rate (bbls/d) 70 53
    Condensate-to-gas ratio (bbls/MMcf) 10 8

    (1)  Represents the cumulative volumes for each well measured at the wellhead separator for the 30 or 60 days (as applicable) of production immediately after each well was considered stabilized after producing fracture treatment fluid back to surface in an amount such that flow rates of hydrocarbons became reliable. The natural gas volumes represent raw natural gas volumes as opposed to sales gas volumes. See “Advisories – Initial Production Rates”.

    • Completions operations on Birchcliff’s 3-well 07-10 pad were finished in March 2025 and the wells were turned over to production through the Corporation’s permanent facilities in April 2025. This pad targeted condensate-rich natural gas wells in the Lower Montney.
    • Completions operations on Birchcliff’s 4-well 05-19 pad were finished in April 2025 and flowback operations were recently completed. The wells are currently scheduled to be turned over to production through the Corporation’s permanent facilities later in May 2025. This pad targeted condensate-rich natural gas wells in the Lower Montney.
    • Completions operations are underway on Birchcliff’s 4-well 03-06 pad and the wells are currently scheduled to be turned over to production through the Corporation’s permanent facilities in June 2025. This pad targeted condensate-rich natural gas wells in the Lower Montney.
    • In the second half of April 2025, Birchcliff successfully completed the first phase of its planned turnaround at its Pouce Coupe gas plant. The second phase of the turnaround is well underway and is expected to be completed shortly.

    Gordondale

    • Completions operations on Birchcliff’s 4-well 02-27 pad were finished in March 2025 and the wells were turned over to production through the Corporation’s permanent facilities in May 2025. This pad targeted condensate-rich natural gas wells in the Lower Montney.

    Elmworth

    • As previously disclosed in its March 12, 2025 press release, Birchcliff completed a horizontal Montney land retention well in February 2025 and performed a 10.5 day flow test on the well.
    • Birchcliff continues to progress the formal planning for the construction of a proposed 100% owned and operated 80 MMcf/d natural gas processing plant in Elmworth. In the second half of March 2025, Birchcliff held an open house in the area to discuss its proposed plans for the area with community residents.

    ABBREVIATIONS

    AECO benchmark price for natural gas determined at the AECO ‘C’ hub in southeast Alberta
    bbl barrel
    bbls barrels
    bbls/d barrels per day
    boe barrel of oil equivalent
    boe/d barrel of oil equivalent per day
    condensate pentanes plus (C5+)
    F&D finding and development
    G&A general and administrative
    GAAP generally accepted accounting principles for Canadian public companies, which are currently IFRS Accounting Standards
    GJ gigajoule
    GJ/d gigajoules per day
    HH Henry Hub
    IFRS International Financial Reporting Standards as issued by the International Accounting Standards Board
    IP initial production
    Mcf thousand cubic feet
    Mcf/d thousand cubic feet per day
    MMBtu million British thermal units
    MMBtu/d million British thermal units per day
    MMcf million cubic feet
    MMcf/d million cubic feet per day
    MSW price for mixed sweet crude oil at Edmonton, Alberta
    NGLs natural gas liquids consisting of ethane (C2), propane (C3) and butane (C4) and specifically excluding condensate
    NYMEX New York Mercantile Exchange
    OPEC Organization of the Petroleum Exporting Countries
    OPEC+ OPEC plus certain other oil-producing countries
    Q quarter
    WTI West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma, for crude oil of standard grade
    000s thousands
    $000s thousands of dollars
       

    NON-GAAP AND OTHER FINANCIAL MEASURES

    This press release uses various “non-GAAP financial measures”, “non-GAAP ratios” and “capital management measures” (as such terms are defined in NI 52-112), which are described in further detail below.

    Non-GAAP Financial Measures

    NI 52-112 defines a non-GAAP financial measure as a financial measure that: (i) depicts the historical or expected future financial performance, financial position or cash flow of an entity; (ii) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity; (iii) is not disclosed in the financial statements of the entity; and (iv) is not a ratio, fraction, percentage or similar representation. The non-GAAP financial measures used in this press release are not standardized financial measures under GAAP and might not be comparable to similar measures presented by other companies. Investors are cautioned that non-GAAP financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP financial measures as indicators of Birchcliff’s performance. Set forth below is a description of the non-GAAP financial measures used in this press release.

    Adjusted Funds Flow and Free Funds Flow

    Birchcliff defines “adjusted funds flow” as cash flow from operating activities before the effects of decommissioning expenditures, retirement benefit payments and changes in non-cash operating working capital. Birchcliff eliminates settlements of decommissioning expenditures from cash flow from operating activities as the amounts can be discretionary and may vary from period to period depending on its capital programs and the maturity of its operating areas. The settlement of decommissioning expenditures is managed with Birchcliff’s capital budgeting process which considers available adjusted funds flow. Birchcliff eliminates retirement benefit payments from cash flow from operating activities as such payments reflect costs for past service and contributions made by eligible executives under the Corporation’s post-employment benefit plan, which are not indicative of the current period. Changes in non-cash operating working capital are eliminated in the determination of adjusted funds flow as the timing of collection and payment are variable and by excluding them from the calculation, the Corporation believes that it is able to provide a more meaningful measure of its operations and ability to generate cash on a continuing basis. Management believes that adjusted funds flow assists management and investors in assessing Birchcliff’s financial performance after deducting all operating and corporate cash costs, as well as its ability to generate the cash necessary to fund sustaining and/or growth capital expenditures, repay debt, settle decommissioning obligations, buy back common shares and pay dividends.

    Birchcliff defines “free funds flow” as adjusted funds flow less F&D capital expenditures. Management believes that free funds flow assists management and investors in assessing Birchcliff’s ability to generate shareholder value and returns through a number of initiatives, including, but not limited to, debt repayment, common share buybacks, the payment of common share dividends, acquisitions and other opportunities that would complement or otherwise improve the Corporation’s business and enhance long-term shareholder value.

    The most directly comparable GAAP financial measure to adjusted funds flow and free funds flow is cash flow from operating activities. The following table provides a reconciliation of cash flow from operating activities to adjusted funds flow and free funds flow for the periods indicated:

      Three months ended
    		   Twelve months ended  
      March 31,
    		   December 31,  
    ($000s) 2025   2024   2024  
    Cash flow from operating activities 126,097   65,255   203,710  
    Change in non-cash operating working capital (2,194 ) (13,163 ) 17,269  
    Decommissioning expenditures 510   138   1,964  
    Retirement benefit payments –   13,851   13,851  
    Adjusted funds flow 124,413   66,081   236,794  
    F&D capital expenditures (111,819 ) (102,773 ) (273,084 )
    Free funds flow 12,594   (36,692 ) (36,290 )

    Birchcliff has disclosed in this press release forecasts of adjusted funds flow and free funds flow for 2025, which are forward-looking non-GAAP financial measures. See “2025 Guidance”. The equivalent historical non-GAAP financial measures are adjusted funds flow and free funds flow for the twelve months ended December 31, 2024. Birchcliff anticipates the forward-looking non-GAAP financial measures for adjusted funds flow and free funds flow disclosed herein will be higher than their respective historical amounts, primarily due to higher anticipated benchmark natural gas prices in 2025 as compared to 2024. The commodity price assumptions on which the Corporation’s guidance is based are set forth under the heading “2025 Guidance”.

    Transportation and Other Expense

    Birchcliff defines “transportation and other expense” as transportation expense plus marketing purchases less marketing revenue. Birchcliff may enter into certain marketing purchase and sales arrangements with the objective of reducing any unused transportation or fractionation fees associated with its take-or-pay commitments and/or increasing the value of its production through value-added downstream initiatives. Management believes that transportation and other expense assists management and investors in assessing Birchcliff’s total cost structure related to transportation and marketing activities. The most directly comparable GAAP financial measure to transportation and other expense is transportation expense. The following table provides a reconciliation of transportation expense to transportation and other expense for the periods indicated:

      Three months ended
    		   Twelve months ended  
      March 31,
    		   December 31,  
    ($000s) 2025   2024   2024  
    Transportation expense 37,519   36,625   149,534  
    Marketing purchases 14,910   7,111   51,496  
    Marketing revenue (14,748 ) (9,468 ) (54,069 )
    Transportation and other expense 37,681   34,268   146,961  


    Operating Netback

    Birchcliff defines “operating netback” as petroleum and natural gas revenue less royalty expense, operating expense and transportation and other expense. Operating netback is a key industry performance indicator and one that provides investors with information that is commonly presented by other oil and natural gas producers. Management believes that operating netback assists management and investors in assessing Birchcliff’s operating profits after deducting the cash costs that are directly associated with the sale of its production, which can then be used to pay other corporate cash costs or satisfy other obligations. The following table provides a breakdown of Birchcliff’s operating netback for the periods indicated:

    Three months ended ($000s) March 31, 2025   March 31, 2024  
    P&NG revenue 197,188   163,304  
    Royalty expense (15,039 ) (14,467 )
    Operating expense (21,133 ) (26,427 )
    Transportation and other expense (37,681 ) (34,268 )
    Operating netback 123,335   88,142  


    Total Capital Expenditures

    Birchcliff defines “total capital expenditures” as exploration and development expenditures less dispositions plus acquisitions (if any) and plus administrative assets. Management believes that total capital expenditures assists management and investors in assessing Birchcliff’s overall capital cost structure associated with its petroleum and natural gas activities. The most directly comparable GAAP financial measure to total capital expenditures is exploration and development expenditures. The following table provides a reconciliation of exploration and development expenditures to total capital expenditures for the periods indicated:

    Three months ended ($000s) March 31, 2025 March 31, 2024  
    Exploration and development expenditures(1) 111,819 102,773  
    Dispositions – (109 )
    Administrative assets 654 820  
    Total capital expenditures 112,473 103,484  

    (1)  Disclosed as F&D capital expenditures elsewhere in this press release. See “Advisories – F&D Capital Expenditures”.

    Effective Sales – Total Corporate, Total Natural Gas, AECO Market and NYMEX HH Market

    Birchcliff defines “effective sales” in the AECO market and NYMEX HH market as the sales amount received from the production of natural gas that is effectively attributed to the AECO and NYMEX HH market pricing, respectively, and does not consider the physical sales delivery point in each case. Effective sales in the NYMEX HH market includes realized gains and losses on financial instruments and excludes the notional fixed basis costs associated with the underlying financial contract in the period. Birchcliff defines “effective total natural gas sales” as the aggregate of the effective sales amount received in each natural gas market. Birchcliff defines “effective total corporate sales” as the aggregate of the effective total natural gas sales and the sales amount received from the production of light oil, condensate and NGLs. Management believes that disclosing the effective sales for each natural gas market assists management and investors in assessing Birchcliff’s natural gas diversification and commodity price exposure to each market. The most directly comparable GAAP financial measure to effective total natural gas sales and effective total corporate sales is natural gas sales. The following table provides a reconciliation of natural gas sales to effective total natural gas sales and effective total corporate sales for the periods indicated:

    Three months ended ($000s)  March 31, 2025 March 31, 2024  
    Natural gas sales 125,231 88,022  
    Realized gain (loss) on financial instruments 22,167 (5,628 )
    Notional fixed basis costs(1) 20,894 18,477  
    Effective total natural gas sales 168,292 100,871  
    Light oil sales 15,391 13,219  
    Condensate sales 37,371 43,477  
    NGLs sales 19,183 18,568  
    Effective total corporate sales 240,237 176,135  

    (1)  Reflects the aggregate notional fixed basis cost associated with Birchcliff’s financial NYMEX HH/AECO 7A basis swap contracts in the period.

    Non-GAAP Ratios

    NI 52-112 defines a non-GAAP ratio as a financial measure that: (i) is in the form of a ratio, fraction, percentage or similar representation; (ii) has a non-GAAP financial measure as one or more of its components; and (iii) is not disclosed in the financial statements of the entity. The non-GAAP ratios used in this press release are not standardized financial measures under GAAP and might not be comparable to similar measures presented by other companies. Set forth below is a description of the non-GAAP ratios used in this press release.

    Adjusted Funds Flow Per Boe and Adjusted Funds Flow Per Basic Common Share

    Birchcliff calculates “adjusted funds flow per boe” as aggregate adjusted funds flow in the period divided by the production (boe) in the period. Management believes that adjusted funds flow per boe assists management and investors in assessing Birchcliff’s financial profitability and sustainability on a cash basis by isolating the impact of production volumes to better analyze its performance against prior periods on a comparable basis.

    Birchcliff calculates “adjusted funds flow per basic common share” as aggregate adjusted funds flow in the period divided by the weighted average basic common shares outstanding at the end of the period. Management believes that adjusted funds flow per basic common share assists management and investors in assessing Birchcliff’s financial strength on a per common share basis.

    Free Funds Flow Per Basic Common Share

    Birchcliff calculates “free funds flow per basic common share” as aggregate free funds flow in the period divided by the weighted average basic common shares outstanding at the end of the period. Management believes that free funds flow per basic common share assists management and investors in assessing Birchcliff’s financial strength and its ability to deliver shareholder returns on a per common share basis.

    Transportation and Other Expense Per Boe

    Birchcliff calculates “transportation and other expense per boe” as aggregate transportation and other expense in the period divided by the production (boe) in the period. Management believes that transportation and other expense per boe assists management and investors in assessing Birchcliff’s cost structure as it relates to its transportation and marketing activities by isolating the impact of production volumes to better analyze its performance against prior periods on a comparable basis.

    Operating Netback Per Boe

    Birchcliff calculates “operating netback per boe” as aggregate operating netback in the period divided by the production (boe) in the period. Operating netback per boe is a key industry performance indicator and one that provides investors with information that is commonly presented by other oil and natural gas producers. Management believes that operating netback per boe assists management and investors in assessing Birchcliff’s operating profitability and sustainability by isolating the impact of production volumes to better analyze its performance against prior periods on a comparable basis.

    Effective Average Realized Sales Price – Total Corporate, Total Natural Gas, AECO Market and NYMEX HH Market

    Birchcliff calculates “effective average realized sales price” as effective sales, in each of total corporate, total natural gas, AECO market and NYMEX HH market, as the case may be, divided by the effective production in each of the markets during the period. Management believes that disclosing the effective average realized sales price for each natural gas market assists management and investors in comparing Birchcliff’s commodity price realizations in each natural gas market on a per unit basis.

    Capital Management Measures

    NI 52-112 defines a capital management measure as a financial measure that: (i) is intended to enable an individual to evaluate an entity’s objectives, policies and processes for managing the entity’s capital; (ii) is not a component of a line item disclosed in the primary financial statements of the entity; (iii) is disclosed in the notes to the financial statements of the entity; and (iv) is not disclosed in the primary financial statements of the entity. Set forth below is a description of the capital management measure used in this press release.

    Total Debt

    Birchcliff calculates “total debt” at the end of the period as the amount outstanding under the Corporation’s Credit Facilities plus working capital deficit (less working capital surplus) plus the fair value of the current asset portion of financial instruments less the fair value of the current liability portion of financial instruments and less the current portion of other liabilities discounted to the end of the period. The current portion of other liabilities has been excluded from total debt as these amounts have not been incurred and reflect future commitments in the normal course of operations. Management believes that total debt assists management and investors in assessing Birchcliff’s overall liquidity and financial position at the end of the period. The following table provides a reconciliation of the amount outstanding under the Corporation’s Credit Facilities, as determined in accordance with GAAP, to total debt for the periods indicated:

    As at ($000s) March 31, 2025   December 31, 2024   March 31, 2024  
    Revolving term credit facilities 518,581   566,857   428,566  
    Working capital (surplus) deficit(1) (67,109 ) (88,953 ) 34,261  
    Fair value of financial instruments – asset(2) 96,623   71,038   240  
    Fair value of financial instruments – liability(2) –   –   (14,550 )
    Other liabilities(2) (13,385 ) (13,385 ) (5,137 )
    Total debt 534,710   535,557   443,380  

    (1)  Current liabilities less current assets.

    (2)  Reflects the current portion only.

    ADVISORIES

    Unaudited Information

    All financial and operational information contained in this press release for the three months ended March 31, 2025 and 2024 is unaudited.

    Currency

    Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars, all references to “$” and “CDN$” are to Canadian dollars and all references to “US$” are to United States dollars.

    Boe Conversions

    Boe amounts have been calculated by using the conversion ratio of 6 Mcf of natural gas to 1 bbl of oil. Boe amounts may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

    MMBtu Pricing Conversions

    $1.00 per MMBtu equals $1.00 per Mcf based on a standard heat value Mcf.

    Oil and Gas Metrics

    This press release contains metrics commonly used in the oil and natural gas industry, including operating netback. These oil and gas metrics do not have any standardized meanings or standard methods of calculation and therefore may not be comparable to similar measures presented by other companies. As such, they should not be used to make comparisons. Management uses these oil and gas metrics for its own performance measurements and to provide investors with measures to compare Birchcliff’s performance over time; however, such measures are not reliable indicators of Birchcliff’s future performance, which may not compare to Birchcliff’s performance in previous periods, and therefore should not be unduly relied upon. For additional information regarding operating netback and how such metric is calculated, see “Non-GAAP and Other Financial Measures”.

    Production

    With respect to the disclosure of Birchcliff’s production contained in this press release: (i) references to “light oil” mean “light crude oil and medium crude oil” as such term is defined in NI 51-101; (ii) references to “liquids” mean “light crude oil and medium crude oil” and “natural gas liquids” (including condensate) as such terms are defined in NI 51-101; and (iii) references to “natural gas” mean “shale gas”, which also includes an immaterial amount of “conventional natural gas”, as such terms are defined in NI 51-101. In addition, NI 51-101 includes condensate within the product type of natural gas liquids. Birchcliff has disclosed condensate separately from other natural gas liquids as the price of condensate as compared to other natural gas liquids is currently significantly higher and Birchcliff believes presenting the two commodities separately provides a more accurate description of its operations and results therefrom.

    With respect to the disclosure of Birchcliff’s production contained in this press release, all production volumes have been disclosed on a “gross” basis as such term is defined in NI 51-101, meaning Birchcliff’s working interest (operating or non-operating) share before the deduction of royalties and without including any royalty interests of Birchcliff.

    Initial Production Rates

    Any references in this press release to initial production rates or other short-term production rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue to produce and decline thereafter and are not indicative of the long-term performance or the ultimate recovery of such wells. In addition, such rates may also include recovered “load oil” or “load water” fluids used in well completion stimulation. Readers are cautioned not to place undue reliance on such rates in calculating the aggregate production for Birchcliff. Such rates are based on field estimates and may be based on limited data available at this time.

    With respect to the production rates for the Corporation’s 5-well 04-05 pad disclosed herein, such rates represent the cumulative volumes for each well measured at the wellhead separator for the 30 and 60 days (as applicable) of production immediately after each well was considered stabilized after producing fracture treatment fluid back to surface in an amount such that flow rates of hydrocarbons became reliable, divided by 30 or 60 (as applicable), which were then added together to determine the aggregate production rates for the 5-well pad and then divided by 5 to determine the per well average production rates. The production rates excluded the hours and days when the wells did not produce. To-date, no pressure transient or well-test interpretation has been carried out on any of the wells. The natural gas volumes represent raw natural gas volumes as opposed to sales gas volumes.

    Finding and Development (F&D) Capital Expenditures

    References in this press release to “F&D capital expenditures” denotes exploration and development expenditures as disclosed in the Corporation’s financial statements in accordance with GAAP, and is primarily comprised of capital for land, seismic, workovers, drilling and completions, well equipment and facilities and capitalized G&A costs and excludes any acquisitions, dispositions, administrative assets and the capitalized portion of cash incentive payments that have not been approved by the Board. Management believes that F&D capital expenditures assists management and investors in assessing Birchcliff’s capital cost outlay associated with its exploration and development activities for the purposes of finding and developing its reserves.

    Forward-Looking Statements

    Certain statements contained in this press release constitute forward‐looking statements and forward-looking information (collectively referred to as “forward‐looking statements”) within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this press release relate to future events or Birchcliff’s future plans, strategy, operations, performance or financial position and are based on Birchcliff’s current expectations, estimates, projections, beliefs and assumptions. Such forward-looking statements have been made by Birchcliff in light of the information available to it at the time the statements were made and reflect its experience and perception of historical trends. All statements and information other than historical fact may be forward‐looking statements. Such forward‐looking statements are often, but not always, identified by the use of words such as “seek, “plan”, “focus”, “future”, “outlook”, “position”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “forecast”, “guidance”, “potential”, “proposed”, “predict”, “budget”, “continue”, “targeting”, “may”, “will”, “could”, “might”, “should”, “would”, “on track”, “maintain”, “deliver” and other similar words and expressions.

    By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. Accordingly, readers are cautioned not to place undue reliance on such forward-looking statements. Although Birchcliff believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct and Birchcliff makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements.

    In particular, this press release contains forward‐looking statements relating to:

    • Birchcliff’s plans and other aspects of its anticipated future financial performance, results, operations, focus, objectives, strategies, opportunities, priorities and goals, including: Birchcliff’s continued focus on operational excellence; that with a substantial portion of its capital program behind it, Birchcliff expects to generate significant free funds flow during the remainder of the year, which will be allocated primarily towards reducing its total debt by approximately 28% from year end 2024, after the payment of its base dividend; that Birchcliff’s 2025 production guidance and capital program are unchanged and it remains focused on capital efficiency improvements, driving down its costs and strengthening its balance sheet; and that Birchcliff looks forward to a promising future, leveraging its strengths to navigate the evolving market, drive profitable growth and deliver long-term shareholder value;
    • the information set forth under the heading “2025 Guidance” and elsewhere in this press release as it relates to Birchcliff’s guidance for 2025, including: that as a result of the continued volatility in commodity prices driven by the uncertainties surrounding tariffs, global trade tensions and OPEC+ production increases, Birchcliff has lowered its commodity price assumptions for the remainder of 2025; that lower oil prices are forecasted for the remainder of the year; that Birchcliff expects to significantly strengthen its balance sheet in 2025, with free funds flow (after the payment of dividends) anticipated to be allocated primarily towards debt reduction; that based on its current commodity price assumptions, Birchcliff expects to exit 2025 with total debt of $365 million to $405 million, which represents a 28% reduction from its total debt at year end 2024 of $535.6 million; forecasts of annual average production, production commodity mix, average expenses, adjusted funds flow, F&D capital expenditures, free funds flow, total debt at year end, natural gas market exposure and the expected impact of changes in commodity prices and the CDN/US exchange rate on Birchcliff’s forecast of free funds flow; and that Birchcliff currently anticipates that U.S. tariffs will not have a material impact on its business;
    • the information set forth under the heading “Operational Update” and elsewhere in this press release regarding Birchcliff’s 2025 capital program and its exploration, production and development activities and plans (including its plans for Elmworth) and the timing thereof, including: that Birchcliff’s 2025 capital budget of $260 million to $300 million includes the drilling of 25 (25.0 net) wells and the bringing on production of 26 (26.0 net) wells in 2025; that Birchcliff’s teams continue to demonstrate a steadfast focus on execution, operational efficiency and disciplined cost management; that Birchcliff’s purposeful execution is helping to strengthen its performance and position the business for sustainable growth through the remainder of the year and in the long-term; the expected timing for wells to be brought on production and the completion of the turnaround at Birchcliff’s Pouce Coupe gas plant; targeted product types; and that Birchcliff is progressing the formal planning for the construction of a proposed 100% owned and operated 80 MMcf/d natural gas processing plant in Elmworth; and
    • that Birchcliff anticipates the forward-looking non-GAAP financial measures for adjusted funds flow and free funds flow disclosed herein will be higher than their respective historical amounts, primarily due to higher anticipated benchmark natural gas prices in 2025 as compared to 2024.

    With respect to the forward-looking statements contained in this press release, assumptions have been made regarding, among other things: prevailing and future commodity prices and differentials, exchange rates, interest rates, inflation rates, royalty rates and tax rates; the state of the economy, financial markets and the exploration, development and production business; the political environment in which Birchcliff operates; tariffs and trade policies; the regulatory framework regarding royalties, taxes, environmental, climate change and other laws; the Corporation’s ability to comply with existing and future laws; future cash flow, debt and dividend levels; future operating, transportation, G&A and other expenses; Birchcliff’s ability to access capital and obtain financing on acceptable terms; the timing and amount of capital expenditures and the sources of funding for capital expenditures and other activities; the sufficiency of budgeted capital expenditures to carry out planned operations; the successful and timely implementation of capital projects and the timing, location and extent of future drilling and other operations; results of operations; Birchcliff’s ability to continue to develop its assets and obtain the anticipated benefits therefrom; the performance of existing and future wells; reserves volumes and Birchcliff’s ability to replace and expand reserves through acquisition, development or exploration; the impact of competition on Birchcliff; the availability of, demand for and cost of labour, services and materials; the approval of the Board of future dividends; the ability to obtain any necessary regulatory or other approvals in a timely manner; the satisfaction by third parties of their obligations to Birchcliff; the ability of Birchcliff to secure adequate processing and transportation for its products; Birchcliff’s ability to successfully market natural gas and liquids; the results of the Corporation’s risk management and market diversification activities; and Birchcliff’s natural gas market exposure. In addition to the foregoing assumptions, Birchcliff has made the following assumptions with respect to certain forward-looking statements contained in this press release:

    • With respect to Birchcliff’s 2025 guidance (as updated on May 14, 2025), such guidance is based on the commodity price, exchange rate and other assumptions set forth under the heading “2025 Guidance”. In addition:
      • Birchcliff’s production guidance assumes that: the 2025 capital program will be carried out as currently contemplated; no unexpected outages occur in the infrastructure that Birchcliff relies on to produce its wells and that any transportation service curtailments or unplanned outages that occur will be short in duration or otherwise insignificant; the construction of new infrastructure meets timing and operational expectations; existing wells continue to meet production expectations; and future wells scheduled to come on production meet timing, production and capital expenditure expectations.
      • Birchcliff’s forecast of F&D capital expenditures assumes that the 2025 capital program will be carried out as currently contemplated and excludes any potential acquisitions, dispositions and the capitalized portion of cash incentive payments that have not been approved by the Board. The amount and allocation of capital expenditures for exploration and development activities by area and the number and types of wells to be drilled and brought on production is dependent upon results achieved and is subject to review and modification by management on an ongoing basis throughout the year. Actual spending may vary due to a variety of factors, including commodity prices, economic conditions, results of operations and costs of labour, services and materials.
      • Birchcliff’s forecasts of adjusted funds flow and free funds flow assume that: the 2025 capital program will be carried out as currently contemplated and the level of capital spending for 2025 set forth herein is met; and the forecasts of production, production commodity mix, expenses and natural gas market exposure and the commodity price and exchange rate assumptions set forth herein are met. Birchcliff’s forecast of adjusted funds flow takes into account its financial basis swap contracts outstanding as at May 5, 2025 and excludes cash incentive payments that have not been approved by the Board.
      • Birchcliff’s forecast of year end total debt assumes that: (i) the forecasts of adjusted funds flow and free funds flow are achieved, with the level of capital spending for 2025 met and the payment of an annual base dividend of approximately $33 million; (ii) any free funds flow remaining after the payment of dividends, asset retirement obligations and other amounts for administrative assets, financing fees and capital lease obligations is allocated towards debt reduction; and (iii) there are no buybacks of common shares, no equity issuances, no further exercises of stock options and no significant acquisitions or dispositions completed by the Corporation during 2025. The forecast of total debt excludes cash incentive payments that have not been approved by the Board.
      • Birchcliff’s forecast of its natural gas market exposure assumes: (i) 175,000 GJ/d being sold on a physical basis at the Dawn price; (ii) 147,500 MMBtu/d being contracted on a financial basis at an average fixed basis differential price between AECO 7A and NYMEX HH of US$1.088/MMBtu; and (iii) 1,200 GJ/d being sold at Alliance on a physical basis at the AECO 5A price plus a premium. Birchcliff’s natural gas market exposure takes into account its financial basis swap contracts outstanding as at May 5, 2025.
    • With respect to statements regarding future wells to be drilled or brought on production, such statements assume: the continuing validity of the geological and other technical interpretations performed by Birchcliff’s technical staff, which indicate that commercially economic volumes can be recovered from Birchcliff’s lands as a result of drilling future wells; and that commodity prices and general economic conditions will warrant proceeding with the drilling of such wells.

    Birchcliff’s actual results, performance or achievements could differ materially from those anticipated in the forward-looking statements as a result of both known and unknown risks and uncertainties including, but not limited to: general economic, market and business conditions which will, among other things, impact the demand for and market prices of Birchcliff’s products and Birchcliff’s access to capital; volatility of crude oil and natural gas prices; fluctuations in commodity prices and exchange, interest and inflation rates; risks associated with increasing costs, whether due to high inflation rates, supply chain disruptions or other factors; an inability of Birchcliff to generate sufficient cash flow from operations to meet its current and future obligations; an inability to access sufficient capital from internal and external sources on terms acceptable to the Corporation; risks associated with Birchcliff’s Credit Facilities, including a failure to comply with covenants under the agreement governing the Credit Facilities and the risk that the borrowing base limit may be redetermined; fluctuations in the costs of borrowing; operational risks and liabilities inherent in oil and natural gas operations; the risk that weather events such as wildfires, flooding, droughts or extreme hot or cold temperatures forces the Corporation to shut-in production or otherwise adversely affects the Corporation’s operations; the occurrence of unexpected events such as fires, explosions, blow-outs, equipment failures, transportation incidents and other similar events; an inability to access sufficient water or other fluids needed for operations; the risks associated with supply chain disruptions; uncertainty that development activities in connection with Birchcliff’s assets will be economic; an inability to access or implement some or all of the technology necessary to operate its assets and achieve expected future results; geological, technical, drilling, construction and processing problems; uncertainty of geological and technical data; horizontal drilling and completions techniques and the failure of drilling results to meet expectations for reserves or production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, revenue, costs and reserves; the accuracy of cost estimates and variances in Birchcliff’s actual costs and economic returns from those anticipated; incorrect assessments of the value of acquisitions and exploration and development programs; the risks posed by pandemics, epidemics, geopolitical events and global conflict and their impacts on supply and demand and commodity prices; actions taken by OPEC and other major oil producers and the impact such actions may have on supply and demand and commodity prices; stock market volatility; loss of market demand; changes to the regulatory framework in the locations where the Corporation operates, including changes to tax laws, Crown royalty rates, environmental and climate change laws (including emissions and “greenwashing”), carbon tax regimes, incentive programs and other regulations that affect the oil and natural gas industry; political uncertainty and uncertainty associated with government policy changes; actions by government authorities; the risk that: (i) the U.S. tariffs that are currently in effect on goods exported from or imported into Canada continue in effect for an extended period of time, the tariffs that have been threatened are implemented, that tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased or new tariffs are imposed, including on oil and natural gas; (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas; and (iii) the tariffs imposed or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S. will trigger a broader global trade war, which could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Corporation, including by decreasing the demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets and limiting access to financing; an inability of the Corporation to comply with existing and future laws and the cost of compliance with such laws; dependence on facilities, gathering lines and pipelines; uncertainties and risks associated with pipeline restrictions and outages to third-party infrastructure that could cause disruptions to production; the lack of available pipeline capacity and an inability to secure adequate and cost-effective processing and transportation for Birchcliff’s products; an inability to satisfy obligations under Birchcliff’s firm marketing and transportation arrangements; shortages in equipment and skilled personnel; the absence or loss of key employees; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, equipment and skilled personnel; management of Birchcliff’s growth; environmental and climate change risks, claims and liabilities; potential litigation; default under or breach of agreements by counterparties and potential enforceability issues in contracts; claims by Indigenous peoples; the reassessment by taxing or regulatory authorities of the Corporation’s prior transactions and filings; unforeseen title defects; third-party claims regarding the Corporation’s right to use technology and equipment; uncertainties associated with the outcome of litigation or other proceedings involving Birchcliff; uncertainties associated with counterparty credit risk; risks associated with Birchcliff’s risk management and market diversification activities; risks associated with the declaration and payment of future dividends, including the discretion of the Board to declare dividends and change the Corporation’s dividend policy and the risk that the amount of dividends may be less than currently forecast; the failure to obtain any required approvals in a timely manner or at all; the failure to complete or realize the anticipated benefits of acquisitions and dispositions and the risk of unforeseen difficulties in integrating acquired assets into Birchcliff’s operations; negative public perception of the oil and natural gas industry; the Corporation’s reliance on hydraulic fracturing; market competition, including from alternative energy sources; changing demand for petroleum products; the availability of insurance and the risk that certain losses may not be insured; breaches or failure of information systems and security (including risks associated with cyber-attacks); risks associated with artificial intelligence; risks associated with the ownership of the Corporation’s securities; the accuracy of the Corporation’s accounting estimates and judgments; and the risk that any of the Corporation’s material assumptions prove to be materially inaccurate (including the Corporation’s commodity price and exchange rate assumptions for 2025).

    Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other risk factors that could affect Birchcliff’s results of operations, financial performance or financial results are included in the Corporation’s annual information form and annual management’s discussion and analysis for the financial year ended December 31, 2024 under the heading “Risk Factors” and in other reports filed with Canadian securities regulatory authorities.

    This press release contains information that may constitute future-oriented financial information or financial outlook information (collectively, “FOFI”) about Birchcliff’s prospective financial performance, financial position or cash flows, all of which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on FOFI. Birchcliff’s actual results, performance and achievements could differ materially from those expressed in, or implied by, FOFI. Birchcliff has included FOFI in order to provide readers with a more complete perspective on Birchcliff’s future operations and management’s current expectations relating to Birchcliff’s future performance. Readers are cautioned that such information may not be appropriate for other purposes.

    Management has included the above summary of assumptions and risks related to forward-looking statements provided in this press release in order to provide readers with a more complete perspective on Birchcliff’s future operations and management’s current expectations relating to Birchcliff’s future performance. Readers are cautioned that this information may not be appropriate for other purposes.

    The forward-looking statements and FOFI contained in this press release are expressly qualified by the foregoing cautionary statements. The forward-looking statements and FOFI contained herein are made as of the date of this press release. Unless required by applicable laws, Birchcliff does not undertake any obligation to publicly update or revise any forward-looking statements or FOFI, whether as a result of new information, future events or otherwise.

    ABOUT BIRCHCLIFF:

    Birchcliff is an intermediate oil and natural gas company based in Calgary, Alberta with operations focused on the exploration and development of the Montney/Doig Resource Play in Alberta. Birchcliff’s common shares are listed for trading on the Toronto Stock Exchange under the symbol “BIR”.

    For further information, please contact:
     
    Birchcliff Energy Ltd.
    Suite 1000, 600 – 3rd Avenue S.W.
    Calgary, Alberta T2P 0G5
    Telephone: (403) 261-6401
    Email: birinfo@birchcliffenergy.com
    www.birchcliffenergy.com    		 Chris Carlsen – President and Chief Executive Officer

    Bruno Geremia – Executive Vice President and Chief Financial Officer

    The MIL Network –

  • MIL-OSI: Usio Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Record First Quarter Revenues of $22.0 million

    Total payment dollars processed through all payment channels up 34% versus the prior year period 

    SAN ANTONIO, May 14, 2025 (GLOBE NEWSWIRE) — Usio, Inc. (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the first quarter, which ended March 31, 2025.

    Louis Hoch, President and Chief Executive Officer of Usio, said, “Results in the first quarter continue to reflect strong fundamental processing growth, disciplined cost control, and strong positive cash flow and a continued commitment to cash management. We reported positive Adjusted EBITDA1 of $0.7 million and added $0.7 million in cash to our balance sheet illustrating our improved operational performance. More importantly, our growing implementation queue from signed deals and pipeline have never been stronger, and we are beginning to generate activity/volume from some of our largest new opportunities. We believe we are in excellent position to generate value for our shareholders over the long-term and believe we have the financial resources to assure that we are well prepared from the ramp in activity arising from the imminent growth in volume associated with this new business.”

    Total payment dollar processing volume growth accelerated to 34% in the first quarter, led by strong growth in our highest margin line of business, ACH, where electronic check dollar volume increased 42%, transactions grew 36% and returned check transactions grew 24%, all compared to the same period in 2024.

    Revenues for the quarter were in line with our expectations, and were up from a year ago, primarily due to strong growth in our ACH and complementary services line of business, offsetting the impact in the quarter from the loss of breakage revenues arising from the completion of a large prepaid card programs that were effectively wound down completely by the close of the first quarter of 2024. ACH & complementary services revenue growth was primarily attributable to an increase in ACH volume from net new business and organic growth. The business also benefited from a year over year increase in revenues from ancillary product offerings, such as Remotely Created Checks, or RCC, PINless debit as well as cross-selling to our ACH base. Credit card revenues were up 4%, with PayFac revenues growing a strong 25% and continuing to offset legacy credit card volume attrition and increased competition. With Payfac now over 50% of our total card business, we believe that overall credit card revenue growth will increasingly reflect PayFac’s faster growth. Prepaid card load volume was a strong $98 million; we believe that revenues should start to better reflect our focus on growing programs with recurring revenues in this business line. Revenues for Output Solutions were up 4% in the quarter.

    For the quarter ended March 31, 2025, margins were down 1% from the year ago first quarter, mainly from non-operational factors, primarily lower interest revenues. Other selling, general and administrative expenses were essentially flat from the same period last year as part of our commitment to disciplined cost controls. The Company reported a net loss of approximately $0.2 million, or ($0.01) per share, compared to a net loss of $0.3 million, or ($0.01) per share, a year ago due largely to lower expenses related to stock compensation and depreciation.  Adjusted EBITDA1 was $0.7 million, a $0.1 million decrease from the $0.8 million Adjusted EBITDA1 a year ago.

    Mr. Hoch concluded, “The Company is in a strong position, with a growing portfolio of recurring revenues, a best-ever financial position, and signed contracts that we believe will be adding incremental revenue as they come online, although the timing of when these incremental deals will ramp up remains uncertain. So far this year we have achieved our goals to strengthen the organization, strengthen our financial position, and expand our market presence.”

    1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below

    Quarterly Processing and Transaction Volumes

    Total payment transactions processed in the first quarter of 2025 were 13.7 million, an increase of 41% over the same quarter of last year. Total payment dollars processed through all payment channels in the first quarter of 2025 were $2.0 billion, an improvement of 34% over last year’s first quarter $1.5 billion in volume. 

    We set all-time records in dollars and transactions processed in our credit card segment, where dollars processed were up 17% and transactions processed were up 65% from a year ago. ACH electronic check transaction volume was up 36%, electronic check dollars processed were up 42% and return check transactions processed were up 24%. In our Prepaid business unit, card load volume was down 15%, transactions processed up 5% and purchase volume down 8%.

    First Quarter 2025 Revenue Detail

    Revenues for the quarter ended March 31, 2025 were $22.0 million, up 5% compared to the prior year quarter, due primarily to strong growth in our ACH and complementary services revenues, overcoming a decrease in Prepaid and interest revenues as our COVID incentive programs were effectively wound down completely by the end of the first quarter in 2024.

      Three Months Ended March 31,  
      2025     2024     $ Change     % Change  
                                   
    ACH and complementary services $ 5,044,517     $ 3,881,734     $ 1,162,783       30 %
    Credit card   7,878,694       7,560,734       317,960       4 %
    Prepaid card services   2,907,451       3,341,224       (433,773 )     (13 )%
    Output Solutions   5,732,867       5,537,923       194,944       4 %
    Interest – ACH and complementary services   224,129       211,640       12,489       6 %
    Interest – Prepaid card services   182,661       402,741       (220,080 )     (55 )%
    Interest – Output Solutions   38,731       34,390       4,341       13 %
    Total Revenue $ 22,009,050     $ 20,970,386     $ 1,038,664       5 %
                                   

    Gross profit for the first quarter of 2025 was $4.8 million compared to $4.9 million for the first quarter of 2024, while gross margins were 21.9%, declining from 23.1% in the same period a year ago. This was primarily due to lower interest revenues. In addition, ACH and complementary services segment revenue growth was strongest in the slightly less profitable complementary services.

    Other selling, general and administrative expenses, “SG&A”, were $4.1 million for the quarter ended March 31, 2025, effectively flat compared to $4.1 million in the prior year period. This was driven by strategic spend management in our lines of business, as we focus on improving growing revenues while maintaining nominal growth in SG&A in order to improve profitability.

    For the quarter, we reported an operating loss of $0.2 million compared to a loss of $0.3 million in operating income for the same quarter a year ago due to nominally reduced gross profits, and marginally increased SG&A expenses. Adjusted EBITDA1 was $0.7 million for the quarter, compared to Adjusted EBITDA1 of $0.8 million a year ago. Net loss in the quarter ended March 31, 2025 was approximately $0.2 million, or ($0.01) per share, compared to a net loss of $0.3 million, or ($0.01) per share, for the same period in the prior year. 

    Operating Cash Flows were $1.4 million for the three months ended March 31, 2025, as compared to $0.1 million in the same period a year ago. The difference was driven primarily by a reduction in accounts receivable.

    We continue to be in solid financial condition with $8.7 million in cash and cash equivalents as of March 31, 2025, a $0.7 million increase in cash balances over the first three months of the year while $350,000 was utilized to repurchase shares in the period.

    1 Please see reconciliation of GAAP to Non-GAAP Financial Measures below

    Conference Call and Webcast

    Usio, Inc.’s management will host a conference call on Wednesday, May 14, 2025, at 4:30 pm Eastern time to review financial results and provide a business update. To listen to the conference call, interested parties within the U.S. should call +1-844-883-3890. International callers should call + 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the Company’s website at www.usio.com/investors.

    A replay of the call will be available approximately one hour after the end of the call through May 28, 2025. The replay can be accessed via the Company’s website or by dialing +1-877-344-7529 (U.S.) or 1-412-317-0088 (international). The replay conference playback code is 3107685.

    About Usio, Inc.

    Usio, Inc. (Nasdaq: USIO), a leading, cloud-based, integrated FinTech electronic payment solutions provider, offers a wide range of payment solutions to merchants, billers, banks, service bureaus, integrated software vendors and card issuers. The Company operates credit, debit/prepaid, and ACH payment processing platforms to deliver convenient, world-class payment solutions and services to clients through its unique payment facilitation platform as a service. The Company, through its Usio Output Solutions division offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the card issuing sector. Usio is headquartered in San Antonio, Texas, and has offices in Austin, Texas. Websites: www.usio.com, www.payfacinabox.com, www.akimbocard.com and www.usiooutput.com. Find us on Facebook® and Twitter.

    Comparisons

    Unless otherwise indicated, all comparisons and growth rates represent year-over-year comparisons, with the quarterly period of this year compared to the corresponding quarter of the prior year.

    About Non-GAAP Financial Measures

    This press release includes non-GAAP financial measures, as defined in Regulation G adopted by the Securities and Exchange Commission, of EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures provides investors with financial measures it uses in the management of its business.

    • The Company defines EBITDA as operating income (loss), before interest, taxes, depreciation and amortization of intangibles.
    • The Company defines Adjusted EBITDA as EBITDA, as defined above, plus non-cash stock option costs and certain non-recurring items, such as costs related to acquisitions.
    • The Company defines Adjusted EBITDA margins as Adjusted EBITDA, as defined above, divided by total revenues.

    In previous periods, the Company reported the non-GAAP financial measure of adjusted operating cash flows, which excluded certain items from operating cash flows to provide a measure of cash generated from its core operations. Beginning with the current reporting period, the Company is no longer presenting adjusted operating cash flows as a non-GAAP financial measure. The decision to discontinue reporting adjusted operating cash flows is due to changes in the presentation of certain assets, specifically the movement of assets held for customers, into the financing activities section of our cash flow statement. As a result of this reclassification, we believe that the need for the adjusted operating cash flows measure is no longer required, as the adjustments previously made to exclude these amounts are not necessary. 

    Management believes EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins are helpful to investors in evaluating the Company’s operating performance because non-cash costs and other items that management believes are not indicative of its results of operations are excluded. 

    EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. They are not measurements of our financial performance under GAAP and should not be considered as alternatives to revenue, net income, or cash provided by (used in) operating activities, as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA, Adjusted EBITDA, and Adjusted EBITDA margins have limitations as analytical tools and you should not consider these non-GAAP financial measures in isolation or as a substitute for analysis of our operating results as reported under GAAP.

    1 Please see reconciliation of GAAP to Non-GAAP Financial Measures Below

    FORWARD-LOOKING STATEMENTS DISCLAIMER

    Except for the historical information contained herein, the matters discussed in this press release include forward-looking statements which are covered by safe harbors. Those statements include, but may not be limited to, all statements regarding management’s intent, belief and expectations, such as statements concerning our future and our operating and growth strategy and any guidance for future periods. These forward-looking statements are identified by the use of words such as “believe,” “should,” “intend,” “look forward,” “anticipate,” “schedule,” and “expect” among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company’s business that could cause actual results to vary, including such risks related to an economic downturn, the management of the Company’s growth, the loss of key resellers, the relationships with the Automated Clearing House network, bank sponsors, third-party card processing providers and merchants, the security of our software, hardware and information, the volatility of the stock price, the need to obtain additional financing, risks associated with new legislation, and compliance with complex federal, state and local laws and regulations, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission including its annual report on Form 10-K for the fiscal year ended December 31, 2024. One or more of these factors have affected, and in the future could affect, the Company’s businesses and financial results and could cause actual results to differ materially from plans and projections. Although the Company believes that the assumptions underlying the forward-looking statements included in this press release are reasonable, the Company can give no assurance such assumptions will prove to be correct. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the objectives and plans will be achieved. All forward-looking statements made in this press release are based on information presently available to management. The Company assumes no obligation to update any forward-looking statements, except as required by law.

    Contact:

    Paul Manley
    Senior Vice President, Investor Relations
    paul.manley@usio.com
    612-834-1804

    USIO, INC.
    CONSOLIDATED BALANCE SHEETS
     
        March 31, 2025     December 31, 2024  
        (Unaudited)          
    ASSETS                
    Cash and cash equivalents   $ 8,718,247     $ 8,056,891  
    Accounts receivable, net     4,569,616       5,053,639  
    Accounts receivable, tax credit     —       1,494,612  
    Settlement processing assets     62,151,877       47,104,006  
    Prepaid card load assets     14,553,939       25,648,688  
    Customer deposits     1,907,169       1,918,805  
    Inventory     348,493       403,796  
    Prepaid expenses and other     729,039       585,500  
    Current assets before merchant reserves     92,978,380       90,265,937  
    Merchant reserves     4,925,101       4,890,101  
    Total current assets     97,903,481       95,156,038  
                     
    Property and equipment, net     3,230,300       3,194,818  
                     
    Other assets:                
    Intangibles, net     663,349       881,346  
    Deferred tax asset, net     4,580,440       4,580,440  
    Operating lease right-of-use assets     2,884,691       3,037,928  
    Other assets     357,877       357,877  
    Total other assets     8,486,357       8,857,591  
                     
    Total Assets   $ 109,620,138     $ 107,208,447  
                     
    LIABILITIES AND STOCKHOLDERS’ EQUITY                
    Current liabilities:                
    Accounts payable   $ 715,223     $ 1,256,819  
    Accrued expenses     2,705,122       3,366,925  
    Operating lease liabilities, current portion     620,915       612,680  
    Equipment loan, current portion     150,085       147,581  
    Settlement processing obligations     62,151,877       47,104,006  
    Prepaid card load obligations     14,553,939       25,648,688  
    Customer deposits     1,907,169       1,918,805  
    Current liabilities before merchant reserve obligations     82,804,330       80,055,504  
    Merchant reserve obligations     4,925,101       4,890,101  
    Total current liabilities     87,729,431       84,945,605  
                     
    Non-current liabilities:                
    Equipment loan, net of current portion     533,248       571,862  
    Operating lease liabilities, net of current portion     2,365,529       2,534,017  
    Total liabilities     90,628,208       88,051,484  
                     
    Stockholders’ equity:                
    Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at March 31, 2025 (unaudited) and December 31, 2024, respectively     —       —  
    Common stock, $0.001 par value, 200,000,000 shares authorized; 30,038,355 and 29,902,415 issued, and 26,527,906 and 26,609,651 outstanding at March 31, 2025 (unaudited) and December 31, 2024, respectively     30,038       198,317  
    Additional paid-in capital     99,992,655       99,676,457  
    Treasury stock, at cost; 3,510,449 and 3,292,764 shares at March 31, 2025 (unaudited) and December 31, 2024, respectively     (6,122,232 )     (5,770,592 )
    Deferred compensation     (6,640,905 )     (6,914,563 )
    Accumulated deficit     (68,267,626 )     (68,032,656 )
    Total stockholders’ equity     18,991,930       19,156,963  
                     
    Total Liabilities and Stockholders’ Equity   $ 109,620,138     $ 107,208,447  
                     
    USIO, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (UNAUDITED)
     
      Three Months Ended March 31,  
      2025     2024  
                   
    Revenues $ 22,009,050     $ 20,970,386  
    Cost of services   17,199,907       16,116,691  
    Gross profit   4,809,143       4,853,695  
                   
    Selling, general and administrative expenses:              
    Stock-based compensation   410,062       499,273  
    Other SG&A   4,142,895       4,060,225  
    Depreciation and amortization   495,770       576,154  
    Total selling, general and administrative   5,048,727       5,135,652  
                   
    Operating (loss)   (239,584 )     (281,957 )
                   
    Other income and (expense):              
    Interest income   79,011       115,354  
    Interest expense   (11,843 )     (13,585 )
    Other income, net   67,168       101,769  
                   
    (Loss) before income taxes   (172,416 )     (180,188 )
                   
    State income tax expense   62,554       70,000  
    Income tax expense   62,554       70,000  
                   
    Net (loss) $ (234,970 )   $ (250,188 )
                   
    (Loss) Per Share              
    Basic (loss) per common share: $ (0.01 )   $ (0.01 )
    Diluted (loss) per common share: $ (0.01 )   $ (0.01 )
    Weighted average common shares outstanding              
    Basic   26,615,947       26,375,762  
    Diluted   26,615,947       26,375,762  
                   
    USIO, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
     
      Three Months Ended March 31,  
      2025     2024  
    Operating Activities              
    Net (loss) $ (234,970 )   $ (250,188 )
    Adjustments to reconcile net (loss) to net cash provided by operating activities:              
    Depreciation   277,773       358,187  
    Amortization   217,997       217,967  
    Employee stock-based compensation   410,062       499,273  
    Changes in operating assets and liabilities:              
    Accounts receivable   484,023       701,911  
    Accounts receivable, tax credit   1,494,612       —  
    Prepaid expenses and other   (143,539 )     (243,344 )
    Operating lease right-of-use assets   153,237       102,394  
    Other assets   —       20,000  
    Inventory   55,303       (6,769  
    Accounts payable and accrued expenses   (1,203,399 )     (1,158,059 )
    Operating lease liabilities   (160,253 )     (107,243 )
    Merchant reserves   35,000       12,000  
    Customer deposits   (11,636 )     (57,468 )
    Net cash provided by operating activities   1,374,210       88,661  
                   
    Investing Activities              
    Purchases of property and equipment   (313,254 )     (176,750 )
    Net cash (used in) investing activities   (313,254 )     (176,750 )
                   
    Financing Activities              
    Payments on equipment loan   (36,110 )     (14,431 )
    Proceeds from issuance of common stock   11,515       —  
    Purchases of treasury stock   (351,640 )     (44,823 )
    Assets held for customers   3,953,121       (6,748,838 )
    Net cash provided by (used in) financing activities   3,576,886       (6,808,092 )
                   
    Change in cash, cash equivalents, settlement processing assets, prepaid card loads, customer deposits and merchant reserves   4,637,842       (6,896,181 )
    Cash, cash equivalents, settlement processing assets, prepaid card loads, customer deposits and merchant reserves, beginning of year   87,618,491       90,810,089  
                   
    Cash, Cash Equivalents, Settlement Processing Assets, Prepaid Card Loads, Customer Deposits and Merchant Reserves, End of Period $ 92,256,333     $ 83,913,908  
                   
    Supplemental disclosures of cash flow information              
    Cash paid during the period for:              
    Interest $ 11,843     $ 13,585  
    Issuance of deferred stock compensation   —       —  
                   
    USIO, INC.
    STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
    (UNAUDITED)
     
      Common Stock     Additional Paid- In     Treasury     Deferred     Accumulated     Total Stockholders’  
      Shares     Amount     Capital     Stock     Compensation     Deficit     Equity  
                                                           
    Balance at December 31, 2024   29,902,415     $ 198,317     $ 99,676,457     $ (5,770,592 )   $ (6,914,563 )   $ (68,032,656 )   $ 19,156,963  
                                                           
    Adjustment to par value of common stock   —       (168,415 )     168,415       —       —       —       —  
    Issuance of common stock under equity incentive plan   128,053       128       136,276       —       —       —       136,404  
    Issuance of common stock under employee stock purchase plan   7,887       8       11,507       —       —       —       11,515  
    Deferred compensation amortization   —       —       —       —       273,658       —       273,658  
    Purchase of treasury stock costs   —       —       —       (351,640 )     —       —       (351,640 )
    Net (loss) for the period   —       —       —       —       —       (234,970 )     (234,970 )
                                                           
    Balance at March 31, 2025   30,038,355     $ 30,038     $ 99,992,655     $ (6,122,232 )   $ (6,640,905 )   $ (68,267,626 )   $ 18,991,930  
                                                           
    Balance at December 31, 2023   28,671,606     $ 197,087     $ 97,479,830     $ (4,362,150 )   $ (6,907,775 )   $ (71,338,153 )   $ 15,068,839  
                                                           
    Issuance of common stock under equity incentive plan   107,600       107       153,118       —       —       —       153,225  
    Deferred compensation amortization   —       —       —       —       346,047       —       346,047  
    Purchase of treasury stock costs   —       —       —       (44,823 )     —       —       (44,823 )
    Net (loss) for the period   —       —       —       —       —       (250,188 )     (250,188 )
                                                           
    Balance at March 31, 2024   28,779,206     $ 197,194     $ 97,632,948     $ (4,406,973 )   $ (6,561,728 )   $ (71,588,341 )   $ 15,273,100  
                                                           
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (UNAUDITED)
     
      Three Months Ended March 31,  
      2025     2024  
                   
    Reconciliation from Operating (loss) to Adjusted EBITDA:              
    Operating (loss) $ (239,584 )   $ (281,957 )
    Depreciation and amortization   495,770       576,154  
    EBITDA   256,186       294,197  
    Non-cash stock-based compensation expense, net   410,062       499,273  
    Adjusted EBITDA $ 666,248     $ 793,470  
                   
                   
    Calculation of Adjusted EBITDA margins:              
    Revenues $ 22,009,050     $ 20,970,386  
    Adjusted EBITDA $ 666,248     $ 793,470  
    Adjusted EBITDA margins   3.0 %     3.8 %
                   

    The MIL Network –

  • MIL-OSI: Conifer Holdings Reports 2025 First Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    TROY, Mich., May 14, 2025 (GLOBE NEWSWIRE) — Conifer Holdings, Inc. (Nasdaq: CNFR) (“Conifer” or the “Company”) today announced results for the first quarter ended March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Personal Lines production was up 22% for the period
    • Net income allocable to common shareholders of $522,000, or $0.04 per share
    • Book value increased to $2.09 per common share outstanding

    Management Comments

    Brian Roney, CEO of Conifer, commented, “While we were pleased to see continued growth in our Personal lines production, overall, Conifer had an up and down quarter, netting to a small gain. Of note for the period, book value did increase, but largely due to GAAP treatment of an expected earn-out payment.”

    2025 First Quarter Financial Results Overview

       
      At and for the
    Three Months Ended March 31,
      2025   2024   % Change
      (dollars in thousands, except share and per share amounts)
               
    Gross written premiums $ 16,173     $ 24,313     -33.5 %
    Net written premiums   10,840       15,391     -29.6 %
    Net earned premiums   10,315       16,887     -38.9 %
               
    Net investment income   1,289       1,546     -16.6 %
    Net realized investment gains (losses)   3       –     **
    Change in fair value of equity investments   (192 )     43     **
               
    Net income (loss) allocable to common shareholders   522       74     **
    Net income (loss) allocable to common shareholders per share, diluted $ 0.04     $ 0.01     **
               
    Adjusted operating income (loss)*   (3,684 )     1,314     **
    Adjusted operating income (loss) per share, diluted* $ (0.30 )   $ 0.11     **
               
    Book value per common share outstanding $ 2.09     $ 0.21      
               
    Weighted average shares outstanding, basic and diluted   12,222,881       12,222,881      
               
    Underwriting ratios:          
    Loss ratio (1)   89.7 %     62.0 %    
    Expense ratio (2)   50.8 %     34.7 %    
    Combined ratio (3)   140.5 %     96.7 %    
               
    * The “Definitions of Non-GAAP Measures” section of this release defines and reconciles data that are not based on generally accepted accounting principles.
    ** Percentage is not meaningful          
    (1) The loss ratio is the ratio, expressed as a percentage, of net losses and loss adjustment expenses to net earned premiums and other income from underwriting operations.
    (2) The expense ratio is the ratio, expressed as a percentage, of policy acquisition costs and other underwriting expenses to net earned premiums and other income from underwriting operations.
    (3) The combined ratio is the sum of the loss ratio and the expense ratio. A combined ratio under 100% indicates an underwriting profit. A combined ratio over 100% indicates an underwriting loss.
               

    2025 First Quarter Gross Written Premium

    Gross written premiums decreased 33.5% in the first quarter of 2025 to $16.2 million, compared to
    $24.3 million in the prior year period. This decrease reflects the Company’s strategic shift away from Commercial Lines premium following the sale of our agency group in 2024.

    Commercial Lines Financial and Operational Review

     
    Commercial Lines Financial Review
      Three Months Ended March 31,
      2025   2024   % Change
      (dollars in thousands)
               
    Gross written premiums $ 2,047     $ 12,762     -84.0 %
    Net written premiums   (1,604 )     8,287     -119.4 %
    Net earned premiums   1,331       8,797     -84.9 %
               
    Underwriting ratios:          
    Loss ratio   113.1 %     76.5 %    
    Expense ratio   25.3 %     32.7 %    
    Combined ratio   138.4 %     109.2 %    
               
    Contribution to combined ratio from net (favorable) adverse prior year development   -46.6 %     0.5 %    
               
    Accident year combined ratio (1)   185.0 %     108.7 %    
               
    (1) The accident year combined ratio is the sum of the loss ratio and the expense ratio, less changes in net ultimate loss estimates from prior accident year loss reserves. The accident year combined ratio provides management with an assessment of the specific policy year’s profitability and assists management in their evaluation of product pricing levels and quality of business written.
               

    The Company’s commercial lines of business represented 12.6% of total gross written premium in the first quarter of 2025. As noted above, premium decreased considerably year over year as Conifer continued to focus its underwriting efforts on Personal Lines business, notably our homeowner’s insurance portfolio in Texas and the Midwest.

    Personal Lines Financial and Operational Review

               
    Personal Lines Financial Review
      Three Months Ended March 31,
      2025   2024   % Change
      (dollars in thousands)
               
    Gross written premiums $ 14,126     $ 11,551     22.3 %
    Net written premiums   12,444       7,104     75.2 %
    Net earned premiums   8,984       8,090     11.1 %
               
    Underwriting ratios:          
    Loss ratio   86.3 %     46.2 %    
    Expense ratio   54.6 %     36.8 %    
    Combined ratio   140.9 %     83.0 %    
               
    Contribution to combined ratio from net (favorable) adverse prior year development   8.6 %     -6.3 %    
               
    Accident year combined ratio   132.3 %     89.3 %    
               

    Personal lines, representing 87.4% of total gross written premium for the quarter, consists primarily of low-value dwelling homeowner’s insurance in Texas and the Midwest.

    Personal lines gross written premium increased 22.3% from the prior year period to $14.1 million for the first quarter of 2025, led by growth in the Company’s low-value dwelling line of business in Texas.

    For the quarter, the loss ratio was impacted by ordinary seasonal storms, largely in Texas. As per the expected norm, we believe that the loss ratio should moderate as the year progresses.

    Combined Ratio Analysis

       
      Three Months Ended
    March 31,
      2025   2024
       
           
    Underwriting ratios:      
    Loss ratio 89.7 %   62.0 %
    Expense ratio 50.8 %   34.7 %
    Combined ratio 140.5 %   96.7 %
           
    Contribution to combined ratio from net (favorable) adverse prior year development 1.4 %   -2.7 %
           
    Accident year combined ratio 139.1 %   99.4 %
           

    Net Investment Income
    Net investment income was $1.3 million for the quarter ended March 31, 2025, compared to $1.5 million in the prior year period.

    Change in Fair Value of Equity Securities
    During the quarter, the Company reported a loss from the change in fair value of equity investments of $192,000, compared to a $43,000 gain in the prior year period.

    Net Income (Loss) allocable to common shareholders
    The Company reported net income allocable to common shareholders of $522,000, or $0.04 per share, for the first quarter of 2025.

    Adjusted Operating Income (Loss)
    There was an adjusted operating loss of $3.7 million, or $0.30 per share, for the first quarter ended March 31, 2025. See Definitions of Non-GAAP Measures.

    About Conifer Holdings
    Conifer Holdings, Inc. is a Michigan-based property and casualty holding company. Through its subsidiaries, Conifer offers specialty insurance coverage for largely personal lines, marketing through independent agents. The Company trades on the Nasdaq Capital Market under the symbol CNFR. Additional information is available on the Company’s website at www.ir.cnfrh.com.

    Definitions of Non-GAAP Measures
    Conifer prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). Statutory data is prepared in accordance with statutory accounting rules as defined by the National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual, and therefore is not reconciled to GAAP data.

    We believe that investors’ understanding of Conifer’s performance is enhanced by our disclosure of adjusted operating income. Our method for calculating this measure may differ from that used by other companies and therefore comparability may be limited. We define adjusted operating income (loss), a non-GAAP measure, as net income (loss) excluding: 1) net realized investment gains and losses, 2) change in fair value of equity securities 3) change in fair value of contingent considerations and 4) net income (loss) from discontinued operations. We use adjusted operating income as an internal performance measure in the management of our operations because we believe it gives our management and other users of our financial information useful insight into our results of operations and our underlying business performance.

    Forward-Looking Statement

    This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events or our future financial or operating performance, and include Conifer’s expectations regarding premiums, earnings, its capital position, expansion, and growth strategies. The forward-looking statements contained in this press release are based on management’s good-faith belief and reasonable judgment based on current information. The forward-looking statements are qualified by important factors, risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from those in the forward-looking statements, including those described in our form 10-K (“Item 1A Risk Factors”) filed with the SEC on March 28, 2025 and subsequent reports filed with or furnished to the SEC. Any forward-looking statement made by us in this report speaks only as of the date hereof or as of the date specified herein. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws or regulations.

    Reconciliations of adjusted operating income (loss) and adjusted operating income (loss) per share:

       
      Three Months Ended
    March 31,
      2025   2024
      (dollar in thousands, except share and per share amounts)
           
    Net income (loss) $ 522     $ 231  
    Less:      
    Net realized investment gains (losses)   3       –  
    Change in fair value of equity securities   (192 )     43  
    Change in fair value of contingent considerations   4,395       –  
    Net income (loss) from discontinued operations   –       (1,126 )
    Impact of income tax expense (benefit) from adjustments *   –       –  
    Adjusted operating income (loss) $ (3,684 )   $ 1,314  
           
    Weighted average common shares, diluted   12,222,881       12,222,881  
           
    Diluted income (loss) per common share:      
    Net income (loss) $ 0.04     $ 0.02  
    Less:      
    Net realized investment gains (losses)   –       –  
    Change in fair value of equity securities   (0.02 )     0.01  
    Change in fair value of contingent considerations   0.36       –  
    Net income (loss) from discontinued operations   –       (0.10 )
    Impact of income tax expense (benefit) from adjustments *   –       –  
    Adjusted operating income (loss), per share $ (0.30 )   $ 0.11  
           

    * The Company has recorded a full valuation allowance against its deferred tax assets as of March 31, 2025 and March 31, 2024, respectively. As a result, there were no taxable impacts to adjusted operating income from the adjustments to net income (loss) in the table above after taking into account the use of NOLs and the change in the valuation allowance.

             
    Conifer Holdings, Inc. and Subsidiaries
    Consolidated Balance Sheets
    (dollars in thousands)
             
        March 31,   December 31,
        2025   2024
    Assets   (Unaudited)    
    Investment securities:        
    Debt securities, at fair value (amortized cost of $106,636 and $117,827, respectively)   $ 96,023     $ 105,665  
    Equity securities, at fair value (cost of $1,838 and $1,836, respectively)     1,411       1,603  
    Short-term investments, at fair value     42,066       21,151  
    Total investments     139,500       128,419  
             
    Cash and cash equivalents     10,281       27,654  
    Premiums and agents’ balances receivable, net     9,568       9,901  
    Reinsurance recoverables on unpaid losses     77,872       84,490  
    Reinsurance recoverables on paid losses     11,666       6,919  
    Prepaid reinsurance premiums     5,403       6,088  
    Deferred policy acquisition costs     6,647       6,380  
    Receivable from contingent considerations     12,465       8,070  
    Other assets     3,672       3,735  
    Total assets   $ 277,074     $ 281,656  
             
    Liabilities and Shareholders’ Equity        
    Liabilities:        
    Unpaid losses and loss adjustment expenses   $ 176,362     $ 189,285  
    Unearned premiums     30,645       30,590  
    Reinsurance premiums payable     2,488       1  
    Debt     11,996       11,932  
    Mandatorily redeemable preferred stock     5,651       –  
    Funds held under reinsurance agreements     20,964       25,829  
    Accounts payable and accrued expenses     3,383       2,494  
    Total liabilities     251,489       260,131  
             
    Commitments and contingencies     –       –  
             
    Shareholders’ equity:        
    Common stock, no par value (100,000,000 shares authorized; 12,222,881 issued and outstanding, respectively)     100,117       98,178  
    Accumulated deficit     (62,631 )     (63,153 )
    Accumulated other comprehensive income (loss)     (11,901 )     (13,500 )
    Total shareholders’ equity     25,585       21,525  
    Total liabilities and shareholders’ equity   $ 277,074     $ 281,656  
             
    Conifer Holdings, Inc. and Subsidiaries
    Consolidated Statements of Operations (Unaudited)
    (dollars in thousands, except share and per share data)
             
        Three Months Ended
        March 31
        2025   2024
             
    Revenue and Other Income        
    Premiums        
    Gross earned premiums   $ 16,118     $ 34,232  
    Ceded earned premiums     (5,803 )     (17,345 )
    Net earned premiums     10,315       16,887  
    Net investment income     1,289       1,546  
    Net realized investment gains (losses)     3       –  
    Change in fair value of equity securities     (192 )     43  
    Other income     65       149  
    Change in fair value of contingent considerations     4,395       –  
    Total revenue and other income     15,875       18,625  
             
    Expenses        
    Losses and loss adjustment expenses, net     9,274       10,520  
    Policy acquisition costs     2,677       3,160  
    Operating expenses     2,861       2,862  
    Interest expense     541       877  
    Total expenses     15,353       17,419  
             
    Income (loss) from continuing operations before income taxes     522       1,206  
    Income tax expense (benefit)     –       (151 )
             
    Net income (loss) from continuing operations   $ 522     $ 1,357  
    Net income (loss) from discontinued operations     –       (1,126 )
    Net income (loss)     522       231  
    Series A Preferred Stock dividends     –       157  
    Net income (loss) allocable to common shareholders   $ 522     $ 74  
             
    Earnings (loss) per common share, basic and diluted        
    Net income (loss) from continuing operations   $ 0.04     $ 0.11  
    Net income (loss) from discontinued operations   $ –     $ (0.10 )
    Net income (loss) allocable to common shareholders   $ 0.04     $ 0.01  
             
    Weighted average common shares outstanding, basic and diluted     12,222,881       12,222,881  
             

    For Further Information:
    Jessica Gulis, 248.559.0840
    ir@cnfrh.com

    The MIL Network –

  • MIL-OSI: Capital Southwest Announces Financial Results for Fourth Fiscal Quarter and Fiscal Year Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    DALLAS, May 14, 2025 (GLOBE NEWSWIRE) — Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its financial results for the fourth fiscal quarter and year ended March 31, 2025.

    Fourth Quarter Fiscal Year 2025 Financial Highlights

    • Total Investment Portfolio: $1.8 billion
      • Credit Portfolio of $1.6 billion
        • 99% 1st Lien Senior Secured Debt
        • $146.2 million in new committed credit investments during the quarter
        • Weighted Average Yield on Debt Investments: 11.7%
        • Current non-accruals with a fair value of $30.6 million, representing 1.7% of the total investment portfolio
      • Equity Portfolio of $179.4 million
        • $3.8 million in new equity co-investments during the quarter
    • Pre-Tax Net Investment Income:
      • $28.5 million, or $0.56 per weighted average common share outstanding
      • Adjusted pre-tax net investment income of $31.3 million, or $0.61 per weighted average common share outstanding, excluding one-time net expenses of $2.8 million, or $0.05 per share, related to the departure of our former President and Chief Executive Officer(1)
    • Estimated Undistributed Taxable Income (“UTI”): $0.79 per share as of March 31, 2025
    • LTM Operating Leverage: 1.7% for the quarter ended March 31, 2025
    • Dividends: Paid $0.58 per share Regular Dividend and $0.06 per share Supplemental Dividend
      • 110% LTM Pre-Tax NII Regular Dividend Coverage
      • Total Dividends for the quarter ended March 31, 2025 of $0.64 per share
    • Net Realized and Unrealized Depreciation: $10.3 million, or 0.6% of total investments at fair value
      • $19.3 million of net appreciation related to the equity portfolio
      • $25.7 million of net depreciation related to the credit portfolio
      • $3.9 million realized and unrealized income tax provision
    • Balance Sheet:
      • Cash and Cash Equivalents: $43.2 million
      • Total Net Assets: $883.6 million
      • Net Asset Value (“NAV”) per Share: $16.70

    Fiscal Year 2025 Financial Highlights

    • Total Investment Portfolio: Increased by $308.7 million in total fair value, from $1.5 billion to $1.8 billion, representing 21% growth during the year
      • Credit Portfolio increased by $261.3 million, representing 19% growth during the year
    • Investment Revenue: $204.4 million for the year ended March 31, 2025, representing a $26.3 million, or 15% increase, as compared to March 31, 2024
    • Operating Leverage: Remained flat at 1.7% as of March 31, 2025 as compared to March 31, 2024
    • Dividends: Declared and paid total dividends of $2.54 per share
      • $2.31 per share in regular dividends, an increase of 3% compared to the prior year
      • $0.23 per share in supplemental dividends
      • Estimated UTI balance at the end of the fiscal year ended March 31, 2025 was $0.79 per share

    In commenting on the Company’s results, Michael Sarner, President and Chief Executive Officer, stated, “The March quarter was another strong quarter for Capital Southwest, with approximately $150 million of new committed originations. Our portfolio continued to generate significant income for our shareholders, producing $0.61 of adjusted pre-tax net investment income per share,(1) or $0.56 of pre-tax net investment income per share, for the quarter. In consideration of the continued performance of our portfolio, our Board of Directors has again declared a regular dividend of $0.58 per share for the quarter ending June 30, 2025. Our Board of Directors also has declared a supplemental dividend of $0.06 per share for the quarter ending June 30, 2025, resulting in total dividends for the quarter of $0.64 per share. While future dividend declarations are at the discretion of our Board of Directors, it is our intent to continue to distribute quarterly supplemental dividends for the foreseeable future based on our current UTI balance of $0.79 per share, additional harvested gains which occurred subsequent to quarter end and significant net unrealized appreciation in our equity portfolio. We continued to efficiently raise equity capital during the quarter, raising over $68 million on our Equity ATM Program. In April 2025, we increased commitments by $25 million on our Corporate Credit Facility to $510 million. Additionally, we received a license from the U.S. Small Business Administration to operate a second SBIC subsidiary. This license provides Capital Southwest with access to up to an additional $175 million in cost effective debt capital, bringing Capital Southwest’s aggregate borrowing capacity through the SBIC program to a total of up to $350 million.”

    Fourth Quarter Fiscal Year Investment Activities

    During the quarter ended March 31, 2025, the Company originated $149.9 million in new commitments, consisting of investments in four new portfolio companies totaling $116.3 million and add-on commitments in 15 portfolio companies totaling $33.6 million. New committed originations were comprised of $146.1 million 1st lien senior secured debt and $3.8 million equity.

    During the quarter ended March 31, 2025, the Company received proceeds of $40.6 million from nine portfolio company prepayments and exits, generating net realized gains of $5.1 million. Total proceeds were comprised of $24.6 million from debt investments and $16.0 million from equity investments.

    Fourth Fiscal Quarter 2025 Operating Results

    For the quarter ended March 31, 2025, Capital Southwest reported total investment income of $52.4 million, compared to $52.0 million in the prior quarter. The increase in investment income was primarily attributable to an increase in interest income due to an increase in the average cost basis of investments held, offset by a decrease in prepayment and arranger fees received during the quarter.

    For the quarter ended March 31, 2025, total operating expenses (excluding interest expense) were $8.7 million, compared to $6.6 million in the prior quarter. The increase was primarily attributable to $2.8 million in one-time expenses related to the departure of our former President and Chief Executive Officer during the current quarter.

    For the quarter ended March 31, 2025, interest expense was $15.2 million, compared to $14.7 million in the prior quarter. The increase was primarily attributable to an increase in average debt outstanding.

    For the quarter ended March 31, 2025, total pre-tax net investment income was $28.5 million, compared to $30.7 million in the prior quarter.

    For the quarter ended March 31, 2025, there was a tax provision of $0.6 million, compared to a tax provision of $0.4 million in the prior quarter.

    During the quarter ended March 31, 2025, Capital Southwest recorded total net realized and unrealized losses on investments of $10.3 million, compared to $13.7 million of total net realized and unrealized losses in the prior quarter. For the quarter ended March 31, 2025, the total net realized and unrealized losses on investments reflected net realized and unrealized gains on equity investments of $19.3 million, net realized and unrealized losses on debt investments of $25.7 million and realized and unrealized income tax provision of $3.9 million. The net increase in net assets resulting from operations was $17.6 million for the quarter, compared to $16.3 million in the prior quarter.

    The Company’s NAV at March 31, 2025 was $16.70 per share, compared to $16.59 per share in the prior quarter. The increase in NAV per share from the prior quarter is primarily due to the issuance of common stock at a premium to NAV per share through the Equity ATM Program (as described below), partially offset by net realized and unrealized losses on investments.

    Fiscal Year 2025 Operating Results

    For the year ended March 31, 2025, Capital Southwest reported total investment income of $204.4 million, compared to $178.1 million in the prior year. The increase in investment income was primarily attributable to an increase in average debt investments outstanding and an increase in arranger fees, partially offset by a decrease in weighted average yield on debt investments and a decrease in dividend income.

    For the year ended March 31, 2025, total operating expenses (excluding interest expense) were $29.0 million, compared to $24.1 million in the prior year. The increase in operating expenses (excluding interest expense) during the current year was primarily attributable to one-time expenses related to the departure of our former President and Chief Executive Officer during the current year, an increase in professional fees and an increase in general and administrative expenses.

    For the year ended March 31, 2025, interest expense was $55.0 million, compared to $43.1 million in the prior year. The increase was primarily attributable to an increase in average debt outstanding and an increase in the weighted average interest rate on total debt.

    For the year ended March 31, 2025, total pre-tax net investment income was $120.4 million, compared to $110.9 million in the prior year.

    During the year ended March 31, 2025, Capital Southwest recorded total net realized and unrealized losses on investments of $47.2 million, compared to $26.3 million in the prior year. For the year ended March 31, 2025, the total net realized and unrealized losses on investments reflected net realized and unrealized gains on equity of $28.4 million, net realized and unrealized losses on debt of $69.0 million and realized and unrealized income tax provision of $6.6 million. The net increase in net assets resulting from operations was $70.5 million, compared to $83.4 million in the prior year.

    The Company’s NAV at March 31, 2025 was $16.70, as compared to $16.77 at March 31, 2024. The decrease in NAV per share from the prior year is primarily due to net realized and unrealized losses on investments, partially offset by the issuance of common stock at a premium to NAV per share through the Equity ATM Program (as described below).

    Liquidity and Capital Resources

    At March 31, 2025, Capital Southwest had approximately $43.2 million in unrestricted cash and money market balances and $341.2 million of unused capacity under the Corporate Credit Facility (as defined below) and the SPV Credit Facility (as defined below). The regulatory debt to equity ratio at the end of the quarter was 0.89 to 1.

    As of March 31, 2025, Capital Southwest had the following borrowings outstanding:

    • $235.0 million of total debt outstanding on the Corporate Credit Facility
    • $108.0 million of total debt outstanding on the SPV Credit Facility
    • $148.8 million, net of unamortized debt issuance costs, of the 3.375% Notes due October 2026
    • $70.2 million, net of unamortized debt issuance costs, of the 7.75% Notes due August 2028
    • $223.1 million, net of amortized debt issuance costs, of the 5.125% convertible notes due November 2029
    • $170.9 million, net of unamortized debt issuance costs, of SBA Debentures (as defined below)

    In August 2016, CSWC entered into a senior secured credit facility (the “Corporate Credit Facility”) to provide additional liquidity to support its investment and operational activities. Borrowings under the Corporate Credit Facility accrue interest on a per annum basis at a rate equal to the applicable SOFR rate plus 2.15%. On August 2, 2023, CSWC entered into the Third Amended and Restated Senior Secured Revolving Credit Agreement (the “Credit Agreement”) that (1) increased commitments under the Corporate Credit Facility from $400 million to $435 million; (2) added an uncommitted accordion feature that could increase the maximum commitments up to $750 million; (3) extended the end of the Corporate Credit Facility’s revolving period from August 9, 2025 to August 2, 2027 and extended the final maturity from August 9, 2026 to August 2, 2028; and (4) amended several financial covenants. On December 7, 2023, the Company entered into an Incremental Commitment and Assumption Agreement that increased the total commitments under the accordion feature of the Credit Agreement by $25 million, which increased total commitments from $435 million to $460 million. The $25 million increase was provided by one new lender, bringing the total bank syndicate to ten participants. On September 12, 2024, the Company entered into an Incremental Commitment and Assumption Agreement that increased the total commitments under the accordion feature of the Credit Agreement by $25 million, which increased total commitments from $460 million to $485 million. The $25 million increase was provided by one new lender, bringing the total bank syndicate to 11 participants. On April 9, 2025, the Company entered into Incremental Commitment and Assumption Agreements that increased the total commitments under the accordion feature of the Credit Agreement by $25 million, which increased total commitments from $485 million to $510 million. The $25 million increase was provided by two existing lenders.

    Capital Southwest SPV LLC (“SPV”) is a wholly owned special purpose vehicle that was formed to hold investments for the SPV Credit Facility (as defined below) to support our investment and operating activities. On March 20, 2024, SPV entered into a special purpose vehicle financing credit facility (the “SPV Credit Facility”). The SPV Credit Facility included an initial commitment of $150 million. Pursuant to the terms of the loan agreement, on June 20, 2024, total commitments automatically increased from $150 million to $200 million. The SPV Credit Facility also includes an accordion feature that allows increases up to $400 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. Borrowings under the SPV Credit Facility bear interest at three-month Term SOFR plus 2.50% per annum during the revolving period ending on March 20, 2027 and three-month Term SOFR plus an applicable margin of 2.85% thereafter. SPV (i) paid unused commitment fees of 0.10% through April 20, 2024 and (ii) pays unused commitment fees of 0.35% thereafter, on the unused lender commitments under the SPV Credit Facility, in addition to other customary fees. Under the SPV Credit Facility, SPV also pays a utilization fee based on the amount of borrowings utilized. The SPV Credit Facility matures on March 20, 2029.

    On November 4, 2024, the Company issued $230.0 million in aggregate principal amount of 5.125% convertible notes due 2029 (the “2029 Convertible Notes”), including the underwriters’ full exercise of their option to purchase an additional $30.0 million in aggregate principal amount to cover over-allotments. The 2029 Convertible Notes bear interest at a rate of 5.125% per year, payable quarterly on February 15, May 15, August 15 and November 15 of each year. The 2029 Convertible Notes will mature on November 15, 2029, unless earlier converted, redeemed or repurchased. The conversion rate was initially 40.0000 shares of common stock per $1,000 principal amount of 2029 Convertible Notes (equivalent to an initial conversion price of $25.00 per share of common stock), subject to adjustment in some events.

    On December 9, 2024, the Company redeemed $140.0 million in aggregate principal amount of the issued and outstanding 4.50% notes due 2026 (the “January 2026 Notes”) in full. The January 2026 Notes were redeemed at 100% of their principal amount, plus the accrued and unpaid interest thereon, through, but excluding the redemption date. Accordingly, the Company recognized a realized loss on extinguishment of debt, equal to the write-off of the related unamortized debt issuance costs, of $0.4 million during the quarter ended December 31, 2024. There was no “make-whole” premium required to be paid in connection with the redemption.

    The Company has an “at-the-market” offering (the “Equity ATM Program”), pursuant to which the Company may offer and sell, from time to time through sales agents, up to $1 billion of shares of its common stock. During the quarter ended March 31, 2025, the Company sold 2,992,513 shares of its common stock under the Equity ATM Program at a weighted-average price of $22.91 per share, raising $68.6 million of gross proceeds. Net proceeds were $67.5 million after commissions to the sales agents on shares sold. As of March 31, 2025, the Company has $290.0 million available under the Equity ATM Program.

    Our wholly owned subsidiaries, Capital Southwest SBIC I, LP (“SBIC I”) and Capital Southwest SBIC II, LP (“SBIC II” and together with SBIC I, the “SBIC Subsidiaries”), received a license from the Small Business Administration (the “SBA”) to operate as a Small Business Investment Company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958, as amended, on April 20, 2021 and April 17, 2025, respectively. The SBIC licenses allow the SBIC Subsidiaries to obtain leverage by issuing SBA-guaranteed debentures (“SBA Debentures”), subject to the issuance of a leverage commitment by the SBA. SBA debentures are loans issued to an SBIC that have interest payable semi-annually and a ten-year maturity. The interest rate is fixed shortly after issuance at a market-driven spread over U.S. Treasury Notes with ten-year maturities. For two or more SBICs under common control, the maximum amount of outstanding SBA debentures cannot exceed $350 million. As of March 31, 2025, SBIC I had a total leverage commitment from the SBA in the amount of $175.0 million, all of which was drawn.

    Share Repurchase Program

    On July 28, 2021, the Company’s Board of Directors (the “Board”) approved a share repurchase program authorizing the Company to repurchase up to $20 million of its outstanding shares of common stock in the open market at certain thresholds below its NAV per share, in accordance with guidelines specified in Rules 10b5-1(c)(1)(i)(B) and 10b-18 under the Securities Exchange Act of 1934, as amended. On August 31, 2021, the Company entered into a share repurchase agreement, which became effective immediately, and the Company will cease purchasing its common stock under the share repurchase program upon the earlier of, among other things: (1) the date on which the aggregate purchase price for all shares equals $20 million including, without limitation, all applicable fees, costs and expenses; or (2) upon written notice by the Company to the broker that the share repurchase agreement is terminated. During the quarter ended March 31, 2025, the Company did not repurchase any shares of the Company’s common stock under the share repurchase program.

    Regular Dividend of $0.58 Per Share and Supplemental Dividend of $0.06 Per Share for Quarter Ended June 30, 2025

    On April 25, 2025, the Board declared a total dividend of $0.64 per share for the quarter ending June 30, 2025, comprised of a Regular Dividend of $0.58 per share and a Supplemental Dividend of $0.06 per share.

    The Company’s dividend will be payable as follows:

    Regular Dividend

    Amount Per Share: $0.58
    Ex-Dividend Date: June 13, 2025
    Record Date: June 13, 2025
    Payment Date: June 30, 2025

    Supplemental Dividend

    Amount Per Share: $0.06
    Ex-Dividend Date: June 13, 2025
    Record Date: June 13, 2025
    Payment Date: June 30, 2025

    When declaring dividends, the Board of Directors reviews estimates of taxable income available for distribution, which may differ from net investment income under generally accepted accounting principles. The final determination of taxable income for each year, as well as the tax attributes for dividends in such year, will be made after the close of the tax year.

    Capital Southwest maintains a dividend reinvestment plan (“DRIP”) that provides for the reinvestment of dividends on behalf of its registered stockholders who hold their shares with Capital Southwest’s transfer agent and registrar, Equiniti Trust Company.  Under the DRIP, if the Company declares a dividend, registered stockholders who have opted into the DRIP by the dividend record date will have their dividend automatically reinvested into additional shares of Capital Southwest’s common stock. 

    Fourth Quarter 2025 Earnings Results Conference Call and Webcast

    Capital Southwest has scheduled a conference call on Thursday, May 15, 2025, at 11:00 a.m. Eastern Time to discuss the fourth quarter 2025 financial results. You may access the call by using the Investor Relations section of Capital Southwest’s website at www.capitalsouthwest.com, or by using http://edge.media-server.com/mmc/p/s389iru5. 

    An audio archive of the conference call will also be available on the Investor Relations section of Capital Southwest’s website.

    For a more detailed discussion of the financial and other information included in this press release, please refer to the Capital Southwest’s Form 10-K for the period ended March 31, 2025 to be filed with the Securities and Exchange Commission (the “SEC”) and Capital Southwest’s Fourth Fiscal Quarter 2025 Earnings Presentation to be posted on the Investor Relations section of Capital Southwest’s website at www.capitalsouthwest.com. 

    About Capital Southwest

    Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.8 billion in investments at fair value as of March 31, 2025. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

    Forward-Looking Statements

    This press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest, including, but not limited to, the statements about Capital Southwest’s future performance and financial performance and financial condition, and the timing, form and amount of any distributions or supplemental dividends in the future. Forward-looking statements are statements that are not historical statements and can often be identified by words such as “will,” “believe,” “expect” and similar expressions and variations or negatives of these words. These statements are based on management’s current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on our business and our portfolio companies; regulatory changes; tax treatment; our ability to operate the SBIC Subsidiaries as small business investment companies; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy and its impact on our portfolio companies and our financial condition; an economic downturn and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the impact of supply chain constraints on our portfolio companies; and the elevated levels of inflation and its impact on our portfolio companies and the industries in which we invests.

    Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest’s Annual Report on Form 10-K for the year ended March 31, 2025 and any subsequent filings with the SEC, including the “Risk Factors” sections therein, for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

    Investor Relations Contact:

    Michael S. Sarner, President and Chief Executive Officer
    214-884-3829

    (1) Adjusted pre-tax net investment income is a non-GAAP measure. This non-GAAP measure is included to supplement the Company’s financial information presented in accordance with GAAP and because the Company believes such measure is a useful indicator of operations and enhances investors’ ability to analyze trends in the Company’s business exclusive of a tax provision and the one-time net expenses related to the departure of Capital Southwest’s former President and Chief Executive Officer. However, the non-GAAP measure has limitations and should not be considered in isolation or as a substitute for analysis of the Company’s financial results as reported under GAAP.

    Non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, non-GAAP measures are not based on any comprehensive set of accounting rules or principles. This measure should only be used to evaluate the Company’s results of operations in conjunction with its corresponding GAAP measure. Pursuant to the requirements of Item 10(e) of Regulation S-K, as promulgated under the Securities Exchange Act of 1934, as amended, the Company has provided a reconciliation of these non-GAAP measures in the above disclosure.

    CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (In thousands, except shares and per share data)
           
      March 31,   March 31,
        2025       2024  
      (Unaudited)    
    Assets      
    Investments at fair value:      
    Non-control/Non-affiliate investments (Cost: $1,403,623 and $1,276,690, respectively) $ 1,436,316     $ 1,286,355  
    Affiliate investments (Cost: $304,824 and $200,013, respectively)   292,891       190,206  
    Control investments (Cost: $70,913 and $0, respectively)   56,092       —  
    Total investments (Cost: $1,779,360 and $1,476,703, respectively)   1,785,299       1,476,561  
    Cash and cash equivalents   43,221       32,273  
    Restricted cash   1,650       —  
    Receivables:      
    Dividends and interest   30,303       22,928  
    Escrow   1,926       16  
    Other   2,018       7,276  
    Income tax receivable   94       336  
    Debt issuance costs (net of accumulated amortization of $10,357 and $7,741, respectively)   9,266       10,928  
    Other assets   9,063       6,440  
    Total assets $ 1,882,840     $ 1,556,758  
           
    Liabilities      
    SBA Debentures (net of $4,082 and $4,305, respectively, of unamortized debt issuance costs) $ 170,918     $ 148,695  
    January 2026 Notes (net of $0 and $612, respectively, of unamortized debt issuance costs)   —       139,388  
    October 2026 Notes (net of $1,154 and $1,923, respectively, of unamortized debt issuance costs)   148,846       148,077  
    August 2028 Notes (net of $1,681 and $2,182, respectively, of unamortized debt issuance costs)   70,194       69,693  
    2029 Convertible Notes (net of $6,893 and $0, respectively, of unamortized debt issuance costs)   223,107       —  
    Credit Facilities   343,000       265,000  
    Other liabilities   23,038       17,381  
    Accrued restoration plan liability   555       570  
    Income tax payable   2,769       281  
    Deferred tax liability   16,780       11,997  
    Total liabilities   999,207       801,082  
           
    Commitments and contingencies (Note 12)      
           
    Net Assets      
    Common stock, $0.25 par value: authorized, 75,000,000 shares at March 31, 2025 and March 31, 2024; issued, 52,912,796 shares at March 31, 2025 and 45,050,759 shares at March 31, 2024   13,228       11,263  
    Additional paid-in capital   959,123       796,945  
    Total distributable (loss) earnings   (88,718 )     (52,532 )
    Total net assets   883,633       755,676  
    Total liabilities and net assets $ 1,882,840     $ 1,556,758  
    Net asset value per share (52,912,796 shares outstanding at March 31, 2025 and 45,050,759 shares outstanding at March 31, 2024) $ 16.70     $ 16.77  
                   
    CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except shares and per share data)
               
      Years Ended
      March 31,
        2025       2024       2023  
      (Unaudited)        
    Investment income:          
    Interest income:          
    Non-control/Non-affiliate investments $ 152,952     $ 133,329     $ 87,982  
    Affiliate investments   20,015       17,209       11,658  
    Control investments   1,226       —       —  
    Payment-in-kind interest income:          
    Non-control/Non-affiliate investments   9,819       7,737       2,382  
    Affiliate investments   2,214       2,471       3,060  
    Control investments   644       —       —  
    Dividend income:          
    Non-control/Non-affiliate investments   4,125       3,533       1,824  
    Affiliate investments   421       230       141  
    Control investments   —       7,983       7,337  
    Fee income:          
    Non-control/Non-affiliate investments   8,340       4,257       4,057  
    Affiliate investments   2,179       759       638  
    Control investments   135       82       100  
    Other income   2,369       545       121  
    Total investment income   204,439       178,135       119,300  
    Operating expenses:          
    Compensation   11,143       10,631       9,870  
    Share-based compensation   6,963       4,518       3,705  
    Interest   54,959       43,088       28,873  
    Professional fees   4,685       3,705       3,180  
    General and administrative   6,242       5,244       4,632  
    Total operating expenses   83,992       67,186       50,260  
    Income before taxes   120,447       110,949       69,040  
    Federal income, excise and other taxes   1,424       1,135       630  
    Deferred taxes   841       (191 )     (301 )
    Total income tax provision   2,265       944       329  
    Net investment income $ 118,182     $ 110,005     $ 68,711  
    Realized (loss) gain          
    Non-control/Non-affiliate investments $ (46,722 )   $ (18,062 )   $ (5,872 )
    Affiliate investments   273       (6,500 )     (11,027 )
    Control investments   (260 )     (15,047 )     —  
    Income tax (provision) benefit   (2,941 )     (286 )     (130 )
    Total net realized (loss) gain on investments, net of tax   (49,650 )     (39,895 )     (17,029 )
    Net unrealized appreciation (depreciation) on investments          
    Non-control/Non-affiliate investments   916       1,584       (6,942 )
    Affiliate investments   6,354       (6,688 )     6,014  
    Control investments   (1,188 )     18,727       (11,147 )
    Income tax (provision) benefit   (3,659 )     17       (6,514 )
    Total net unrealized appreciation (depreciation) on investments, net of tax   2,423       13,640       (18,589 )
    Net realized and unrealized (losses) gains on investments   (47,227 )     (26,255 )     (35,618 )
    Realized loss on extinguishment of debt   (387 )     (361 )     —  
    Realized loss on disposal of fixed assets   (20 )     —       —  
    Net increase in net assets from operations $ 70,548     $ 83,389     $ 33,093  
               
    Pre-tax net investment income per share – basic $ 2.50     $ 2.72     $ 2.30  
    Net investment income per share – basic $ 2.46     $ 2.70     $ 2.29  
    Net increase in net assets from operations – basic $ 1.47     $ 2.05     $ 1.10  
    Net increase in net assets from operations – diluted $ 1.47     $ 2.05     $ 1.10  
    Weighted average common shares outstanding – basic   47,448,093       40,727,133       30,015,533  
    Weighted average common shares outstanding – diluted   51,187,714       40,727,133       30,015,533  

    The MIL Network –

  • MIL-OSI: Senvest Capital Inc. Reports Results for the First Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    MONTREAL, May 14, 2025 (GLOBE NEWSWIRE) — Senvest Capital Inc. today reported a net loss attributable to common shareholders of ($332.0) million or ($136.14) per share for the three months ended March 31, 2025. This compares to net income attributable to common shareholders of $52.3 million or $21.17 per share for the same period in 2024

    Financial statements are available online at Sedar+ www.sedarplus.ca

      CONSOLIDATED STATEMENTS OF INCOME
      (unaudited)
      (in millions of dollars, except per share amounts)
      For the three months ended
      03/31/2025     03/31/2024
           
    Net income (loss) attributable to common shareholders ($332.0 )   $52.3
           
    Diluted earnings (loss) per share attributable to common shareholders ($136.14 )   $21.17
             

    Contact: George Malikotsis, Vice President Finance
    (514) 281-8082             
    www.senvest.com 

    The MIL Network –

  • MIL-OSI: Epsilon Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, May 14, 2025 (GLOBE NEWSWIRE) — Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported first quarter 2025 financial and operating results.

    First Quarter 2025 Highlights:

    Epsilon – Q1 2025          
        Q1 2025 Q4 2024 Q1 2024 QoQ% YoY%
    NRI Production            
    Gas MMcf 2,740 1,765 1,666 55 % 64 %
    Oil Mbbl 46 52 37 -12 % 24 %
    NGL Mbbl 16 17 16 -6 % -2 %
    Total Mmcfe 3,108 2,176 1,982 43 % 57 %
                 
    Revenues $M          
    Gas   10,614 3,958 2,963 168 % 258 %
    Oil   3,270 3,537 2,715 -8 % 20 %
    NGL   387 385 373 1 % 4 %
    Midstream1   1,892 1,060 1,936 79 % -2 %
    Total   16,163 8,940 7,987 81 % 102 %
                 
    Realized Prices2            
    Gas $/Mcf 3.87 2.24 1.78 73 % 118 %
    Oil $/Bbl 71.76 68.38 74.13 5 % -3 %
    NGL $/Bbl 24.52 22.98 23.16 7 % 6 %
                 
    Adj. EBITDA $M 10,609 5,335 4,595 99 % 131 %
                 
    Cash + STI3 $M 7,363 6,990 15,447 5 % -52 %
                 
    Capex4 $M 8,035 3,804 21,466 111 % -63 %
                 
    Dividend $M 1,376 1,370 1,370 0 % 0 %
                 
    Share Buybacks $M 0 0 1,199   -100 %
                 
    1) Net of elimination entry for fees paid by Epsilon
    2) Excludes impact of hedge realizations
    3) Includes restricted cash balance
    4) Includes acquisitions


    Operations Update:

    Epsilon’s capital expenditures were $8.0 million for the quarter ended March 31, 2025. These were primarily related to the drilling and completion of 2 gross (0.5 net) Glauconitic wells in the Garrington area of Alberta, Canada (including $4.9 million in drilling carry in favor of the operator to earn a 25% working interest in the large leasehold position).

    Jason Stabell, Epsilon’s Chief Executive Officer, commented, “Our Marcellus business performed very well during the quarter with all delayed turn-in-line wells now on production and the lifting of the curtailments we sustained for most of last year. As a result, total gas volumes were up over 50% quarter over quarter. Realized gas prices also rebounded strongly, with Marcellus cash-flows (revenues less operating expenses) up over 200% quarter over quarter and up over 450% from the first quarter last year. This demonstrates the leverage we have in the basin to incremental development in a strong natural gas market. As mentioned previously, we have meaningful remaining undeveloped inventory there. However, we don’t expect any additional development this year.

    In Texas, current plans call for 2 gross (0.5 net) new wells over the remainder of the year, in line with our development obligations on the leasehold. The Barnett wells are still economic at current oil prices, but any escalation in activity levels will require higher sustained prices.

    Our first two wells in the Alberta JV we entered in October are now on production. Our operating partner is currently evaluating inflow performance and sizing artificial lift and facilities. The current plan is to drill 2 more wells there over the remainder of the year.

    With our diversified assets, commodity mix and balance sheet, we remain in a strong position to take advantage of accretive opportunities.”

    Current Hedge Book:

    NG Hedge Book     Realized – Q125                
    2025   Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25
    NYMEX Henry Hub (LD)                        
    Fixed Swaps MMBTUs (232,500 ) (210,000 ) (387,500 ) (255,000 ) (418,500 ) (255,000 ) (263,500 ) (263,500 ) (255,000 ) (263,500 ) (120,000 ) (120,000 )
    Hedges per Day p/day (7,500 ) (7,500 ) (12,500 ) (8,500 ) (13,500 ) (8,500 ) (8,500 ) (8,500 ) (8,500 ) (8,500 ) (4,000 ) (4,000 )
    WA Strike Price $ / MMBTU 3.47   3.47   3.68   3.21   3.12   3.21   3.21   3.21   3.21   3.21   4.66   4.66  
    Tenn Z4 300L Basis                          
    Basis Swaps MMBTUs (232,500 ) (210,000 ) (232,500 ) (255,000 ) (263,500 ) (255,000 ) (263,500 ) (263,500 ) (255,000 ) (263,500 )    
    Hedges per Day p/day (7,500 ) (7,500 ) (7,500 ) (8,500 ) (8,500 ) (8,500 ) (8,500 ) (8,500 ) (8,500 ) (8,500 )    
    WA Strike Price $ / MMBTU (0.74 ) (0.74 ) (0.74 ) (0.95 ) (0.95 ) (0.95 ) (0.95 ) (0.95 ) (0.95 ) (0.95 )    
                               
    Hedged Net Price $ / MMBTU       2.17   2.26   2.26   2.26   2.26   2.26      
    Settlements $M (76.73 ) (94.50 ) (159.50 ) (198.40 ) (28.62 )              
                               
    NG Hedge Book                          
    2026   Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26
    NYMEX Henry Hub (LD)                        
    Fixed Swaps MMBTUs (124,000 ) (112,000 ) (124,000 ) (120,000 ) (124,000 ) (120,000 ) (124,000 ) (124,000 ) (120,000 ) (124,000 )    
    Hedges per Day p/day (4,000 ) (4,000 ) (4,000 ) (4,000 ) (4,000 ) (4,000 ) (4,000 ) (4,000 ) (4,000 ) (4,000 )    
    WA Strike Price $ / MMBTU 4.66   4.66   4.66   4.09   4.09   4.09   4.09   4.09   4.09   4.09      
                               
    Crude Hedge Book   Realized – Q125                  
    2025   Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25
    NYMEX WTI CMA                          
    Fixed Swaps Bbls (4,682 ) (4,091 ) (4,389 ) (6,600 ) (6,600 ) (6,200 ) (6,200 ) (6,000 ) (5,600 ) (3,400 ) (3,200 ) (3,200 )
    Hedges per Day BOPD (151 ) (146 ) (142 ) (220 ) (213 ) (207 ) (200 ) (194 ) (187 ) (110 ) (107 ) (103 )
    WA Strike Price $/Bbl 74.34   74.34   74.34   71.73   71.76   71.79   71.07   71.06   71.05   70.20   70.20   70.20  
    Settlements $M (3.55 ) 12.81   28.09   57.86                  


    Earning’s Call:

    The Company will host a conference call to discuss its results on Thursday, May 15, 2025 at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).

    Interested parties in the United States and Canada may participate toll-free by dialing (833) 816-1385. International parties may participate by dialing (412) 317-0478. Participants should ask to be joined to the “Epsilon Energy First Quarter 2025 Earnings Conference Call.”

    A webcast can be viewed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Ehro2Pgc. A webcast replay will be available on the Company’s website (www.epsilonenergyltd.com) following the call.

    About Epsilon

    Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets in Pennsylvania, Texas, Alberta CA, New Mexico, and Oklahoma.

    Forward-Looking Statements

    Certain statements contained in this news release constitute forward looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, ‘may”, “will”, “project”, “should”, ‘believe”, and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated. Forward-looking statements are based on reasonable assumptions, but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.

    Contact Information:

    281-670-0002

    Jason Stabell
    Chief Executive Officer
    Jason.Stabell@EpsilonEnergyLTD.com

    Andrew Williamson
    Chief Financial Officer
    Andrew.Williamson@EpsilonEnergyLTD.com

     
    EPSILON ENERGY LTD.
    Unaudited Consolidated Statements of Operations
    (All amounts stated in US$)
                 
        Three months ended March 31,
        2025   2024
    Revenues from contracts with customers:            
    Gas, oil, NGL, and condensate revenue   $ 14,270,790     $ 6,051,045  
    Gas gathering and compression revenue     1,892,350       1,935,698  
    Total revenue     16,163,140       7,986,743  
                 
    Operating costs and expenses:            
    Lease operating expenses     2,755,898       1,768,462  
    Gathering system operating expenses     552,651       552,570  
    Depletion, depreciation, amortization, and accretion     3,475,857       2,380,426  
    Impairment expense     6,669       —  
    General and administrative expenses:            
    Stock based compensation expense     385,838       321,569  
    Other general and administrative expenses     1,818,418       1,559,023  
    Total operating costs and expenses     8,995,331       6,582,050  
    Operating income     7,167,809       1,404,693  
                 
    Other income (expense):            
    Interest income     15,299       266,272  
    Interest expense     (12,211 )     (8,760 )
    Loss on derivative contracts     (1,462,170 )     (100,726 )
    Other expense     (22,499 )     (533 )
    Other (expense) income, net     (1,481,581 )     156,253  
                 
    Net income before income tax expense     5,686,228       1,560,946  
    Income tax expense     1,670,194       54,050  
    NET INCOME   $ 4,016,034     $ 1,506,896  
    Currency translation adjustments     (50,116 )     364  
    Unrealized loss on securities     —       (4,609 )
    NET COMPREHENSIVE INCOME   $ 3,965,918     $ 1,502,651  
                 
    Net income per share, basic   $ 0.18     $ 0.07  
    Net income per share, diluted   $ 0.18     $ 0.07  
    Weighted average number of shares outstanding, basic     22,008,766       21,994,207  
    Weighted average number of shares outstanding, diluted     22,109,819       21,994,207  
                 
    EPSILON ENERGY LTD.
    Unaudited Consolidated Balance Sheets
    (All amounts stated in US$)
     
        March 31,   December 31,
        2025   2024
    ASSETS            
    Current assets            
    Cash and cash equivalents   $ 6,892,735     $ 6,519,793  
    Accounts receivable     8,003,517       5,843,722  
    Prepaid income taxes     —       975,963  
    Other current assets     647,295       792,041  
    Total current assets     15,543,547       14,131,519  
    Non-current assets            
    Property and equipment:            
    Oil and gas properties, successful efforts method            
    Proved properties     194,811,616       191,879,210  
    Unproved properties     33,425,087       28,364,186  
    Accumulated depletion, depreciation, amortization and impairment     (126,370,072 )     (123,281,395 )
      Total oil and gas properties, net     101,866,631       96,962,001  
    Gathering system     43,176,418       43,116,371  
    Accumulated depletion, depreciation, amortization and impairment     (36,777,152 )     (36,449,511 )
      Total gathering system, net     6,399,266       6,666,860  
    Land     637,764       637,764  
    Buildings and other property and equipment, net     246,894       259,335  
    Total property and equipment, net     109,150,555       104,525,960  
    Other assets:            
    Operating lease right-of-use assets, long term     318,604       344,589  
    Restricted cash     470,000       470,000  
    Prepaid drilling costs     22,581       982,717  
    Total non-current assets     109,961,740       106,323,266  
    Total assets   $ 125,505,287     $ 120,454,785  
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY            
    Current liabilities            
    Accounts payable trade   $ 2,013,172     $ 2,334,732  
    Gathering fees payable     1,651,164       997,016  
    Royalties payable     2,019,819       1,400,976  
    Income taxes payable     924,905       —  
    Accrued capital expenditures     309,630       572,079  
    Accrued compensation     284,905       695,018  
    Other accrued liabilities     481,770       371,503  
    Fair value of derivatives     1,534,675       487,548  
    Operating lease liabilities     121,293       121,135  
      Total current liabilities     9,341,333       6,980,007  
    Non-current liabilities            
    Asset retirement obligations     3,716,029       3,652,296  
    Deferred income taxes     12,417,125       12,738,577  
    Operating lease liabilities, long term     326,527       355,776  
      Total non-current liabilities     16,459,681       16,746,649  
    Total liabilities     25,801,014       23,726,656  
    Commitments and contingencies (Note 11)            
    Shareholders’ equity            
    Preferred shares, no par value, unlimited shares authorized, none issued or outstanding     —       —  
    Common shares, no par value, unlimited shares authorized and 22,008,766 shares issued and outstanding at March 31, 2025 and December 31, 2024     116,081,031       116,081,031  
    Additional paid-in capital     12,504,745       12,118,907  
    Accumulated deficit     (38,864,654 )     (41,505,076 )
    Accumulated other comprehensive income     9,983,151       10,033,267  
      Total shareholders’ equity     99,704,273       96,728,129  
    Total liabilities and shareholders’ equity   $ 125,505,287     $ 120,454,785  
                 
    EPSILON ENERGY LTD.
    Unaudited Consolidated Statements of Cash Flows
    (All amounts stated in US$)
                 
        Three months ended March 31,
        2025   2024
    Cash flows from operating activities:            
    Net income   $ 4,016,034     $ 1,506,896  
    Adjustments to reconcile net income to net cash provided by operating activities:            
    Depletion, depreciation, amortization, and accretion     3,475,857       2,380,426  
    Impairment expense     6,669       —  
    Accretion of discount on available for sale securities     —       (216,180 )
    Loss on derivative contracts     1,462,170       100,726  
    Settlement (paid) received on derivative contracts     (415,043 )     488,285  
    Settlement of asset retirement obligation     (1,600 )     (1,653 )
    Stock-based compensation expense     385,838       321,569  
    Deferred income tax expense (benefit)     (321,452 )     (22,993 )
    Changes in assets and liabilities:            
    Accounts receivable     (2,159,795 )     953,714  
    Prepaid income taxes     978,542       (68,401 )
    Other assets and liabilities     141,640       146,477  
    Accounts payable, royalties payable, gathering fees payable, and other accrued liabilities     91,390       (1,897,438 )
    Income taxes payable     922,326       —  
    Net cash provided by operating activities     8,582,576       3,691,428  
    Cash flows from investing activities:            
    Additions to unproved oil and gas properties     (5,060,901 )     (3,088,198 )
    Additions to proved oil and gas properties     (2,578,866 )     (17,226,449 )
    Additions to gathering system properties     (104,275 )     (22,650 )
    Additions to land, buildings and property and equipment     —       (7,681 )
    Purchases of short term investments – available for sale     —       (4,045,785 )
    Proceeds from short term investments – held to maturity     —       10,794,285  
    Prepaid drilling costs     960,136       1,813,808  
    Net cash used in investing activities     (6,783,906 )     (11,782,670 )
    Cash flows from financing activities:              
    Buyback of common shares     —       (1,203,708 )
    Dividends paid     (1,375,612 )     (1,370,409 )
    Net cash used in financing activities     (1,375,612 )     (2,574,117 )
    Effect of currency rates on cash, cash equivalents, and restricted cash     (50,116 )     364  
    Decrease in cash, cash equivalents, and restricted cash     372,942       (10,664,995 )
    Cash, cash equivalents, and restricted cash, beginning of period     6,989,793       13,873,628  
    Cash, cash equivalents, and restricted cash, end of period   $ 7,362,735     $ 3,208,633  
                 
    Supplemental cash flow disclosures:            
    Income tax paid – federal   $ 80,000     $ —  
    Income tax paid – state (PA)   $ 5,138     $ —  
    Income tax paid – state (other)   $ 25     $ —  
    Interest paid   $ 657     $ —  
                 
    Non-cash investing activities:            
    Change in proved properties accrued in accounts payable   $ 341,974     $ 2,946,528  
    Change in gathering system accrued in accounts payable   $ (44,228 )   $ (3,624 )
    Asset retirement obligation asset additions and adjustments   $ 18,235     $ 16,372  
        Three months ended March 31,
        2025   2024
    Net income   $ 4,016,034     $ 1,506,896  
    Add Back:            
    Interest income, net     (3,088 )     (257,512 )
    Income tax expense     1,670,194       54,050  
    Depreciation, depletion, amortization, and accretion     3,475,857       2,380,426  
    Impairment expense     6,669       —  
    Stock based compensation expense     385,838       321,569  
    Loss on derivative contracts net of cash received or paid on settlement     1,047,127       589,011  
    Foreign currency translation loss     10,289       570  
    Adjusted EBITDA   $ 10,608,920     $ 4,595,010  

    Epsilon defines Adjusted EBITDA as earnings before (1) net interest expense, (2) taxes, (3) depreciation, depletion, amortization and accretion expense, (4) impairments of natural gas and oil properties, (5) non-cash stock compensation expense, (6) gain or loss on derivative contracts net of cash received or paid on settlement, and (7) other income. Adjusted EBITDA is not a measure of financial performance as determined under U.S. GAAP and should not be considered in isolation from or as a substitute for net income or cash flow measures prepared in accordance with U.S. GAAP or as a measure of profitability or liquidity.

    Additionally, Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Epsilon has included Adjusted EBITDA as a supplemental disclosure because its management believes that EBITDA provides useful information regarding its ability to service debt and to fund capital expenditures. It further provides investors a helpful measure for comparing operating performance on a “normalized” or recurring basis with the performance of other companies, without giving effect to certain non-cash expenses and other items. This provides management, investors and analysts with comparative information for evaluating the Company in relation to other natural gas and oil companies providing corresponding non-U.S. GAAP financial measures or that have different financing and capital structures or tax rates. These non-U.S. GAAP financial measures should be considered in addition to, but not as a substitute for, measures for financial performance prepared in accordance with U.S. GAAP.

    The MIL Network –

  • MIL-OSI: David Boies joins Rumble legal team in case against Google

    Source: GlobeNewswire (MIL-OSI)

    LONGBOAT KEY, FL, May 14, 2025 (GLOBE NEWSWIRE) — Rumble (NASDAQ:RUM), the video-sharing platform and cloud services provider, today announced that prominent lawyer David Boies, of the firm Boies Schiller Flexner LLP, has joined the litigation team in Rumble’s antitrust lawsuit against Google. Rumble filed suit against Google in January 2021, accusing the tech giant of giving Internet search preference to YouTube, a video platform it owns, and thereby harming competition and Rumble’s growth and revenue.

    “David Boies is one of the best trial lawyers in the world.” said Rumble Chief Executive Officer Chris Pavlovski. “We welcome him to Rumble’s legal team.” 

    ABOUT RUMBLE

    Rumble is a high-growth video platform and cloud services provider, founded in 2013 by entrepreneur Chris Pavlovski, which is creating an independent infrastructure intended to make it impervious to cancellation or censorship by Big Tech. Rumble’s mission is to restore the internet to its roots by making it free and open once again. For more information, visit: corp.rumble.com.

    Contact: press@rumble.com

    The MIL Network –

  • MIL-OSI: Nasdaq Announces 2025 Annual Meeting of Shareholders

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, May 14, 2025 (GLOBE NEWSWIRE) — Nasdaq, Inc. (Nasdaq: NDAQ) has scheduled its 2025 Annual Meeting of Shareholders for June 11, 2025, at 8:00 AM ET. The virtual meeting website can be accessed 15 minutes prior to the meeting start by visiting: www.virtualshareholdermeeting.com/NDAQ2025.  

    Shareholders of record as of April 14, 2025 will be eligible to vote and participate in the Annual Meeting. Nasdaq’s 2025 Proxy Statement and 2024 Annual Report on Form 10-K are available at ir.nasdaq.com or proxyvote.com. The Proxy Statement contains information on voting and virtual attendance procedures. 

    About Nasdaq: 

    Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com. 

    Media Relations Contacts: 

    Nick Jannuzzi 
    +1.973.760.1741 
    Nicholas.Jannuzzi@Nasdaq.com

    Investor Relations Contact:

    Ato Garrett 
    +1.212.401.8737 
    Ato.Garrett@Nasdaq.com

    -NDAQF-

    The MIL Network –

  • MIL-OSI: Reliance Global Group Reports 2025 First Quarter Results and Provides Business Update

    Source: GlobeNewswire (MIL-OSI)

    LAKEWOOD, N.J., May 14, 2025 (GLOBE NEWSWIRE) — Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance”, “we” or the “Company”) today provided a business update and reported financial results for the quarter ended March 31, 2025.

    “We are pleased to begin 2025 with improving financial results that build on the momentum we achieved in 2024,” said Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. “Our growth in organic revenues highlights the attractive strides we’ve made in expanding our market share. At the same time, the substantial reduction in net loss and the increase in AEBITDA reflect the sustained benefits of our disciplined fiscal management, streamlined operations under the OneFirm model, and the absence of prior-year impairment charges. This strong momentum has reinforced our foundation and positioned us for scalable, long-term growth with improved profitability.”

    “We are excited about the road ahead as we build on the progress made in 2024 and move closer to completing the Spetner acquisition—an important milestone that is expected to enhance our insurance capabilities and strengthen our financial and market position. We also continue to drive innovation across our platform, most notably with the launch of RELI Auto Leasing. This new offering allows our RELI Exchange agency partners to provide clients with convenient access to vehicle leasing nationwide while earning commissions—without requiring expertise in auto finance. By integrating leasing into the insurance process, we are enhancing our value proposition, deepening client relationships, and opening a compelling new revenue stream for our agents. At the same time, the continued adoption of our advanced InsurTech solutions is transforming the agent experience through AI-driven automation, improved underwriting precision, and streamlined service. These innovations, combined with our disciplined approach to growth and operational excellence, position us to capitalize on emerging opportunities in the evolving InsurTech landscape. We believe the foundation we have put in place sets the stage for a period of exceptional expansion in 2025 and beyond, and we remain committed to delivering superior service to our agents and clients while driving long-term value for our shareholders,” concluded Mr. Beyman.

    2025 First Quarter Financial Highlights

    • Commission income revenue increased by $153,782, or 4%, to $4,236,220 in Q1 2025, compared to $4,082,438 in Q1 2024. This increase reflects continued organic growth across the Company’s insurance distribution channels.
    • Commission expense increased by $192,885, or 15%, to $1,469,427 in Q1 2025, compared to $1,276,542 in Q1 2024. The increase reflects higher payouts to agents in line with rising commission volumes and improved agency performance.
    • Salaries and wages increased by $398,175, or 22%, to $2,229,837 in Q1 2025, compared to $1,831,662 in Q1 2024. The increase is primarily due to $540,015 in non-cash equity awards, and indicates that overall, standard non-equity-based salaries and wages costs have been decreasing for the Company quarter over quarter.
    • General and administrative increased by $141,388, to $1,516,228 in Q1 2025, compared to $1,374,890 in Q1 2024. The increase is primarily due to $484,970 of non-cash equity pay to certain of the Company’s directors and service providers, and indicates that overall, standard non-equity-based general and administrative costs have been decreasing for the Company quarter over quarter, reflecting management’s disciplined cost controls and efficiencies gained under our OneFirm initiative.
    • Net loss decreased by $3,609,781, or 68%, to $1,736,882 in Q1 2025, compared to $5,346,663 in Q1 2024. This substantial improvement was driven by the elimination of impairment charges, and the Company’s continued focus on cost control and streamlining its operations. When further deducting the total non-cash equity payments of $1,024,985 discussed above, standard non-equity net loss further improves significantly as compared to the quarter in the prior year and is a testament to the Company’s focus and success in increasing its top-line revenues and managing its operating costs.
    • Adjusted EBITDA (“AEBITDA”), our key non-GAAP financial measure, increased by $219,061, or 297% to an AEBITDA gain of $145,407 in Q1 2025, compared to an AEBITDA loss of ($73,654) in Q1 2024. This marks another quarter of AEBITDA gain for the Company and demonstrates the continued trend toward increased profitability, brought about through disciplined fiscal management and exciting organic operational growth.

    Conference Call

    Reliance Global Group will host a conference call today at 4:30 PM Eastern Time to discuss the Company’s financial results for the quarter ended March 31, 2025, as well as the Company’s corporate progress and other developments.

    The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 848176. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/52473 or on the investor relations section of the Company’s website, https://relianceglobalgroup.com/events-and-presentations/.

    A webcast replay will be available on the investor relations section of the Company’s website at https://relianceglobalgroup.com/events-and-presentations/ through May 13, 2026. A telephone replay of the call will be available approximately one hour following the call, through May 27, 2025, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 52473.

    About Reliance Global Group, Inc.

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

    Forward-Looking Statements

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

    Contact:

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

    INFORMATION REGARDING A NON-GAAP FINANCIAL MEASURE

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

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

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

    The following table provides a reconciliation from net loss to AEBITDA for the 3 month periods ended March 31, 2025 and 2024, respectively:

        March 31,
    2025    		     March 31,
    2024    		  
    Net loss   $ (1,736,882 )   $ (5,346,663 )
    Adjustments:                
    Interest and related party interest expense     325,242       410,286  
    Depreciation and amortization     360,595       534,152  
    Asset impairment     –       3,922,110  
    Equity-based compensation employees, directors, and service providers     1,024,985       154,912  
    Change in estimated acquisition earn-out payables     –       47,761  
    Other income, net     –       (11 )
    Transactional costs     143,187       253,893  
    Non-standard costs     28,280       45,239  
    Recognition and change in fair value of warrant liabilities     –       (95,333  
    Total adjustments     1,882,289       5,273,009  
                     
    AEBITDA   $ 145,407     $ (73,654 )

    The MIL Network –