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Category: Finance

  • MIL-OSI Europe: Written question – Challenges for European fisheries and aquaculture – E-001824/2025

    Source: European Parliament

    Question for written answer  E-001824/2025
    to the Commission
    Rule 144
    Emmanouil Fragkos (ECR), Nora Junco García (ECR)

    The European fisheries and aquaculture sector faces challenges concerning generational renewal, energy transition, fleet ageing, digitalisation, climate change and competition for maritime space.

    While the common fisheries policy (CFP) has made progress on environmental goals (e.g. fish-stock sustainability), it has underperformed in socio-economic terms.

    The CFP should prioritise science-based policies to enhance food-security, reduce bureaucracy and promote socio-economic development. With 70 % of EU seafood being imported, there is growing concern about food autonomy.

    With the right support, our fisheries can continue to advance without compromising productivity. The EU’s fishing fleet, constrained by outdated policies limiting capacity and vessel upgrades, struggles to modernise and transition to low-emission technologies.

    Investments are urgently needed to update the fleet and related infrastructure.

    Imports from non-EU countries with lower standards and costs exacerbate the sector’s challenges. Despite support efforts, EU aquaculture production has stagnated, growing only marginally between 2008 and 2020. Addressing these issues requires a coordinated EU approach focused on competitiveness, sustainability and fair market conditions.

    What actions does the Commission intend to take in order to ensure a level playing field with non-EU countries in relation to:

    • 1.capture fisheries, such as monitoring compliance with obligations (e.g. regarding the reduction of illegal, unreported and unregulated fishing) both generally and particularly within EU waters?
    • 2.aquaculture, mainly with regard to imports from third parties (e.g. concerning the abolition of various forms of State aid that artificially reduce production costs)?

    Submitted: 6.5.2025

    MIL OSI Europe News –

  • MIL-OSI Europe: EIB takes part in World Circular Economy Forum 2025 in Brazil to foster competitiveness and sustainable growth

    Source: European Investment Bank

    • EIB to participate in more than 10 sessions at WCEF 2025 from 13-16 May 2025 to discuss circular economy advances
    • EIB financing for circular economy grows to record €1.4 billion in 2024
    • EIB lending to circular economy projects amounts to €5.1 billion over the past five years

    The European Investment Bank (EIB) is participating in the World Circular Economy Forum 2025 (WCEF 2025) from 13-16 May 2025 in São Paulo, Brazil, and online around the globe. The annual WCEF, an initiative of Finland and the Finnish Innovation Fund (Sitra), is one of the world’s leading events on the circular economy, which aims to make production and consumption more sustainable by extending the life cycle of resources, materials and goods.

    The WCEF provides a platform for sharing knowledge and expertise, building networks and advancing the transition to a circular economy. This year’s edition will shed light on the bottlenecks to sustainable growth and the root causes that urgently require circular solutions.

    The EIB, one of the biggest multilateral providers of climate and environment finance, will present to conference participants its array of financing and advisory products to develop and support the circular economy. The EIB will also discuss the role of the circular economy in securing the supply of strategic materials and the benefits of pursuing projects across entire value chains.

    “We are stepping up our support for the circular economy in line with the European Union’s objectives that put circularity at the core of our decarbonisation strategy,” said EIB Vice-President Ambroise Fayolle. “In the past five years, we provided more than €5 billion to co-finance 153 circular economy projects in a variety of sectors. Circularity is key to conserve limited and strategic materials, enhance resilience and competitiveness and reduce our impact on the climate and the environment.”

    EIB lending to circular economy projects has consistently increased over the years, amounting to €5.1 billion in 2020-2024, with a record level of €1.4 billion last year alone. Recently financed projects include a €17 million loan to Europe’s largest iPhone refurbisher Swappie, venture debt financing of €25 million to Fairmat, a French company pioneering the recycling of carbon fibre composite materials, and a €75 million loan to improve solid waste management in Benin.

    Earlier this year, the EIB’s Board of Directors also approved an action plan to step up support for critical raw materials (CRM) with the aim of doubling annual financing for such projects – including circular solutions – to €2 billion. The plan also includes a new CRM Task Force and a dedicated one-stop shop to build and manage a pipeline of CRM operations and advisory activities and increased technical expertise and partnerships

    Join the EIB at WCEF 202

    Vice-President Fayolle is leading the EIB’s participation, starting with a panel at the opening plenary on 13 May. In total, EIB experts will take part in more than 10 sessions. The full list of sessions with EIB speakers is available here.

    People on site can meet staff of the EIB at its stand at the OCA in the Ibirapuera park in São Paulo on 13-14 May.

    For interview requests, please reach out to the press contact below.

    For more information about the EIB’s support to the circular economy visit: Circular economy (eib.org)

    Background information  

    EIB 

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union.  

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.  

    All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

    Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

    High-quality, up-to-date photos of our headquarters for media use are available here.

    MIL OSI Europe News –

  • MIL-OSI: Satellogic Reports First Quarter 2025 Financial Results and Provides Business Update

    Source: GlobeNewswire (MIL-OSI)

    Revenue of $3.4 million in 1Q 2025

    Domestication to U.S. Completed

    Awarded $30 Million Contract for AI-First Constellation and Closed $20 Million Registered Direct Offering

    NEW YORK, May 13, 2025 (GLOBE NEWSWIRE) — Satellogic Inc. (NASDAQ: SATL), a leader in sub-meter resolution Earth Observation (“EO”) data collection, today provided a business update and reported its financial results for the three months ended March 31, 2025.

    “The year is off to a great start with our recent announcements in April related to our $30 million low latency, near-daily AI-first constellation contract, our sovereign defense and intelligence imagery sales to Brazil and Singapore, and the closing of a registered direct offering in which we received $20 million in gross proceeds, which further strengthened our liquidity position. These milestones, coupled with the completion of our domestication during the first quarter, positions Satellogic to focus on significant growth opportunities, underscoring the value of our data insights and technology,” said Satellogic CEO, Emiliano Kargieman.

    Rick Dunn, Chief Financial Officer, added, “In terms of financial results, we ended the quarter with $17.7 million of cash on hand (which does not include the proceeds from the aforementioned offering) and continued to reduce our cash used in operations by $5.4 million, or 53%, compared to the three months ended March 31, 2024. Our revenue also increased modestly by 2% to $3.4 million compared to the prior year period.”

    “We expect that our revenue for 2025 will largely be dependent on closing opportunities within our Space Systems line of business, which we anticipate will contribute considerable per unit cash flow and strong gross margin. As we look to 2025 and beyond, management continues to focus on near-term growth opportunities and moving the Company forward on a path to profitability,” concluded Dunn.

    Financial Results for the Three Months Ended March 31, 2025

    • Revenue for the three months ended March 31, 2025, increased by $0.1 million, or 2%, to $3.4 million, as compared to revenue of $3.3 million for the three months ended March 31, 2024. The increase was driven primarily by a $0.4 million increase in imagery ordered by new and existing Asset Monitoring customers, partially offset by a $0.4 million decrease in revenue generated from the Space Systems business line. Revenue for the three months ended March 31, 2025 included $2.6 million attributable to our Asset Monitoring line of business, $0.4 million attributable to our Space Systems line of business, and $0.4 million attributable to our CaaS line of business compared to $2.2 million, $0.7 million and $0.4 million, respectively, in the prior period.
    • Cost of Sales, exclusive of depreciation, decreased $0.1 million, or 5%, to $1.2 million for the three months ended March 31, 2025 from $1.3 million for the three months ended March 31, 2024. The decrease was driven primarily by lower Space Systems costs on lower sales volume, partially offset by higher outsourced ground station costs. However, as a percentage of revenue, our cost of sales were 37% for the three months ended March 31, 2025, as compared to 39% for the three months ended March 31, 2024.
    • Selling, General and Administrative expenses decreased $2.9 million, or 31%, to $6.5 million during the three months ended March 31, 2025, from $9.4 million for the three months ended March 31, 2024. The decrease was driven primarily by a $0.5 million decrease in professional fees consisting mainly of the accrued advisory fee pursuant to the Liberty Subscription Agreement and professional fees related to the secured convertible notes in 2024, partially offset by professional fees related to our domestication in 2025. The decrease was also partially driven by decreases in salaries, wages, stock-based compensation and other benefits as a result of the Company’s workforce reductions in 2024 and other expense reductions resulting from continued cash control measures during 2024.
    • Engineering expenses decreased $1.9 million, or 43%, to $2.5 million for the three months ended March 31, 2025 from $4.4 million for the three months ended March 31, 2024. The decrease was driven primarily by a decrease in salaries, wages, and other benefits and stock-based compensation as a result of the Company’s workforce reductions in 2024. The decrease was also partially driven by other expense reductions resulting from continued cash control measures during 2024, including the termination of our high-throughput plant lease in the Netherlands.
    • Net loss for the three months ended March 31, 2025, increased by $17.4 million to $32.6 million, as compared to a net loss of $15.2 million for the three months ended March 31, 2024. The increase was primarily driven by an increase in the change in fair value of financial instruments ($21.6 million) and other (expense) income, net ($1.6 million) offset by increases in revenue and decreases in operating costs.
    • Non-GAAP Adjusted EBITDA loss for the three months ended March 31, 2025, improved by $3.1 million to $6.1 million, from an Adjusted EBITDA loss of $9.1 million for the three months ended March 31, 2024, primarily due to year-over-year increases in revenue and decreases in operating expenses.
    • Cash and Cash Equivalents were $17.7 million at March 31, 2025, compared to $22.5 million at December 31, 2024.
    • Net cash used in operating activities was $4.7 million for the three months ended March 31, 2025, compared to $10.1 million for the three months ended December 31, 2024. This decline in net cash used by operations was primarily due to workforce reduction and overall cost control initiatives.

    Use of Non-GAAP Financial Measures

    We monitor a number of financial performance and liquidity measures on a regular basis in order to track the progress of our business. Included in these financial performance and liquidity measures are the non-GAAP measures, Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA. We believe these measures provide analysts, investors and management with helpful information regarding the underlying operating performance of our business, as they provide meaningful supplemental information regarding our performance and liquidity by removing the impact of items that we believe are not reflective of our underlying operating performance. The non-GAAP measures are used by us to evaluate our core operating performance and liquidity on a comparable basis and to make strategic decisions. The non-GAAP measures also facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations such as capital structures, taxation, depreciation, capital expenditures and other non-cash items (i.e., embedded derivatives, debt extinguishment and stock-based compensation) which may vary for different companies for reasons unrelated to operating performance. However, different companies may define these terms differently and accordingly comparisons might not be accurate. Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA are not intended to be a substitute for any GAAP financial measure. For the definitions of Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA and reconciliations to the most directly comparable GAAP measure, net loss, see below.

    We define Non-GAAP EBITDA as net loss excluding interest, income taxes, depreciation and amortization. We did not incur amortization expense during the years ended December 31, 2024 and 2023.

    We define Non-GAAP Adjusted EBITDA as Non-GAAP EBITDA further adjusted for professional fees related to the secured convertible notes, other expense (income), net, changes in the fair value of financial instruments and stock-based compensation. Other expense (income), net includes foreign exchange gain or loss and other non-operating income and expenses not considered indicative of our ongoing operational performance.

    The following table presents a reconciliation of Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA to its net loss for the periods indicated.

      Three Months Ended March 31,
    (in thousands of U.S. dollars)   2025       2024  
    Net loss available to stockholders $ (32,581 )   $ (15,178 )
    Interest expense   —       9  
    Income tax expense   715       1,433  
    Depreciation expense   2,687       2,845  
    Non-GAAP EBITDA $ (29,179 )   $ (10,891 )
    Professional fees related to Secured Convertible Notes   —       971  
    Other expense (income), net   167       (1,401 )
    Change in fair value of financial instruments   22,361       752  
    Stock-based compensation   595       1,446  
    Non-GAAP Adjusted EBITDA $ (6,056 )   $ (9,123 )
     

    About Satellogic

    Founded in 2010 by Emiliano Kargieman and Gerardo Richarte, Satellogic (NASDAQ: SATL) is the first vertically integrated geospatial company, driving real outcomes with planetary-scale insights. Satellogic is creating and continuously enhancing the first scalable, fully automated EO platform with the ability to remap the entire planet at both high-frequency and high-resolution, providing accessible and affordable solutions for customers.

    Satellogic’s mission is to democratize access to geospatial data through its information platform of high-resolution images to help solve the world’s most pressing problems including climate change, energy supply, and food security. Using its patented Earth imaging technology, Satellogic unlocks the power of EO to deliver high-quality, planetary insights at the lowest cost in the industry.

    With more than a decade of experience in space, Satellogic has proven technology and a strong track record of delivering satellites to orbit and high-resolution data to customers at the right price point.

    To learn more, please visit: http://www.satellogic.com

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intends”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “should”, “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are based on Satellogic’s current expectations and beliefs concerning future developments and their potential effects on Satellogic and include statements concerning Satellogic’s strategic realignment as a U.S. company, and the visibility and high growth opportunities it will provide in connection therewith. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These statements are based on various assumptions, whether or not identified in this press release. These forward-looking statements are provided for illustrative purposes only and are not intended to serve, and must not be relied on by an investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Satellogic. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our ability to generate revenue as expected, including due to challenges created by macroeconomic concerns, geopolitical uncertainty (e.g., trade relationships), financial market fluctuations and related factors, (ii) our ability to effectively market and sell our EO services and to convert contracted revenues and our pipeline of potential contracts into actual revenues, (iii) risks related to the secured convertible notes, (iv) the potential loss of one or more of our largest customers, (v) the considerable time and expense related to our sales efforts and the length and unpredictability of our sales cycle, (vi) risks and uncertainties associated with defense-related contracts, (vii) risk related to our pricing structure, (viii) our ability to scale production of our satellites as planned, (ix) unforeseen risks, challenges and uncertainties related to our expansion into new business lines, (x) our dependence on third parties, including SpaceX, to transport and launch our satellites into space, (xi) our reliance on third-party vendors and manufacturers to build and provide certain satellite components, products, or services and the inability of these vendors and manufacturers to meet our needs, (xii) our dependence on ground station and cloud-based computing infrastructure operated by third pirates for value-added services, and any errors, disruption, performance problems, or failure in their or our operational infrastructure, (xiii) risk related to certain minimum service requirements in our customer contracts, (xiv) market acceptance of our EO services and our dependence upon our ability to keep pace with the latest technological advances, including those related to artificial intelligence and machine learning, (xv) our ability to identify suitable acquisition candidates or consummate acquisitions on acceptable terms, or our ability to successfully integrate acquisitions, (xvi) competition for EO services, (xvii) challenges with international operations or unexpected changes to the regulatory environment in certain markets, (xviii) unknown defects or errors in our products, (xix) risk related to the capital-intensive nature of our business and our ability to raise adequate capital to finance our business strategies, (xx) uncertainties beyond our control related to the production, launch, commissioning, and/or operation of our satellites and related ground systems, software and analytic technologies, (xxi) the failure of the market for EO services to achieve the growth potential we expect, (xxii) risks related to our satellites and related equipment becoming impaired, (xxiii) risks related to the failure of our satellites to operate as intended, (xxiv) production and launch delays, launch failures, and damage or destruction to our satellites during launch, (xxv) the impact of natural disasters, unusual or prolonged unfavorable weather conditions, epidemic outbreaks, terrorist acts and geopolitical events (including the ongoing conflicts between Russia and Ukraine, in the Gaza Strip and the Red Sea region) on our business and satellite launch schedules and (xxvi) the anticipated benefits of the domestication may not materialize. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Satellogic’s Annual Report on Form 10-K and other documents filed or to be filed by Satellogic from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Satellogic assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Satellogic can give no assurance that it will achieve its expectations.

    Contacts

    Investor Relations:

    Ryan Driver, VP of Strategy & Corporate Development
    ryan.driver@satellogic.com

    Media Relations:

    Satellogic
    pr@satellogic.com

    SATELLOGIC INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
    UNAUDITED
     
      Three Months Ended March 31,
    (in thousands of U.S. dollars, except share and per share amounts)   2025       2024  
    Revenue $ 3,387     $ 3,328  
    Costs and expenses      
    Cost of sales, exclusive of depreciation shown separately below   1,237       1,305  
    Selling, general and administrative   6,485       9,389  
    Engineering   2,493       4,387  
    Depreciation expense   2,687       2,845  
    Total costs and expenses   12,902       17,926  
    Operating loss   (9,515 )     (14,598 )
    Other (expense) income, net      
    Interest income, net   177       204  
    Change in fair value of financial instruments   (22,361 )     (752 )
    Other (expense) income, net   (167 )     1,401  
    Total other (expense) income, net   (22,351 )     853  
    Loss before income tax   (31,866 )     (13,745 )
    Income tax expense   (715 )     (1,433 )
    Net loss available to stockholders $ (32,581 )   $ (15,178 )
    Other comprehensive loss      
    Foreign currency translation gain (loss), net of tax   257       (137 )
    Comprehensive loss $ (32,324 )   $ (15,315 )
           
    Basic net loss per share for the period attributable to holders of Common Stock $ (0.34 )   $ (0.17 )
    Basic weighted-average Common Stock outstanding   96,655,349       90,331,496  
    Diluted net loss per share for the period attributable to holders of Common Stock $ (0.34 )   $ (0.17 )
    Diluted weighted-average Common Stock outstanding   96,655,349       90,331,496  
    SATELLOGIC INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    UNAUDITED
     
      March 31,   December 31,
    (in thousands of U.S. dollars, except per share and par value amounts)   2025       2024  
    ASSETS      
    Current assets      
    Cash and cash equivalents $ 17,716     $ 22,493  
    Restricted cash   305       —  
    Accounts receivable, net of allowance of $148 and $148, respectively   1,799       1,464  
    Prepaid expenses and other current assets   4,274       3,907  
    Total current assets   24,094       27,864  
    Property and equipment, net   25,802       27,228  
    Operating lease right-of-use assets   6,538       877  
    Other non-current assets   4,968       5,722  
    Total assets $ 61,402     $ 61,691  
    LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY      
    Current liabilities      
    Accounts payable $ 3,742     $ 3,754  
    Warrant liabilities   14,902       11,511  
    Earnout liabilities   1,992       1,501  
    Operating lease liabilities   989       363  
    Contract liabilities   6,308       5,871  
    Accrued expenses and other liabilities   13,661       11,621  
    Total current liabilities   41,594       34,621  
    Secured Convertible Notes at fair value   96,590       79,070  
    Operating lease liabilities   5,812       516  
    Other non-current liabilities   498       516  
    Total liabilities   144,494       114,723  
    Commitments and contingencies      
    Stockholders’ (deficit) equity      
    Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2024 and December 31, 2023   —       —  
    Class A Common Stock, $0.0001 par value, 385,000,000 shares authorized, 84,451,437 shares issued and 83,883,614 shares outstanding as of March 31, 2025 and 83,000,501 shares issued and 82,432,678 shares outstanding as of December 31, 2024   —       —  
    Class B Common Stock, $0.0001 par value, 15,000,000 shares authorized, 13,582,642 shares issued and outstanding as of March 31, 2025 and December 31, 2024   —       —  
    Treasury stock, at cost, 567,823 shares as of March 31, 2025 and 567,823 shares as of December 31, 2024   (8,603 )     (8,603 )
    Additional paid-in capital   358,511       356,247  
    Accumulated other comprehensive loss   (314 )     (571 )
    Accumulated deficit   (432,686 )     (400,105 )
    Total stockholders’ (deficit) equity   (83,092 )     (53,032 )
    Total liabilities and stockholders’ (deficit) equity $ 61,402     $ 61,691  
    SATELLOGIC INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    UNAUDITED
     
      Three Months Ended March 31,
    (in thousands of U.S. dollars)   2025       2024  
    Cash flows from operating activities:      
    Net loss $ (32,581 )   $ (15,178 )
    Adjustments to reconcile net loss to net cash used in operating activities:      
    Depreciation expense   2,687       2,845  
    Operating lease expense   421       538  
    Stock-based compensation   595       1,446  
    Change in fair value of financial instruments, net of interest paid on Secured Convertible Notes   20,691       752  
    Foreign exchange differences   (188 )     (643 )
    Loss on disposal of property and equipment   28       78  
    Expense for estimated credit losses on accounts receivable, net of recoveries   —       16  
    Non-cash change in contract liabilities   (46 )     (501 )
    Other, net   —       56  
    Changes in operating assets and liabilities:      
    Accounts receivable   (21 )     (932 )
    Prepaid expenses and other current assets   830       (377 )
    Accounts payable   569       1,764  
    Contract liabilities   438       (25 )
    Accrued expenses and other liabilities   2,024       601  
    Operating lease liabilities   (169 )     (555 )
    Net cash used in operating activities   (4,722 )     (10,115 )
    Cash flows from investing activities:      
    Purchases of property and equipment   (1,913 )     (1,942 )
    Net cash used in investing activities   (1,913 )     (1,942 )
    Cash flows from financing activities:      
    Proceeds from issuance of Common Stock under ATM Program, net of transaction costs   1,143       —  
    Payments for withholding taxes related to the net share settlement of equity awards   (375 )     (184 )
    Proceeds from exercise of stock options   916       —  
    Net cash provided by (used in) financing activities   1,684       (184 )
    Net (decrease) increase in cash, cash equivalents and restricted cash   (4,951 )     (12,241 )
    Effect of foreign exchange rate changes on cash and cash equivalents   177       542  
    Cash, cash equivalents and restricted cash – beginning of period   23,682       24,603  
    Cash, cash equivalents and restricted cash – end of period $ 18,908     $ 12,904  

    The MIL Network –

  • MIL-OSI: Skyward Specialty Recruits Corey LaFlamme to Lead Captives & Specialty Programs Divisions; Hill Transitions To Divisions’ Chairman

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, May 13, 2025 (GLOBE NEWSWIRE) — Skyward Specialty Insurance Group, Inc.™ (Nasdaq: SKWD) (“Skyward Specialty” or “the Company”) a leader in the specialty property and casualty (P&C) market, announced today the Company has recruited Corey LaFlamme to assume the role of President, Captives & Specialty Programs, marking a key strategic move to support its continued growth in one of the fastest-expanding segments of the specialty market.

    Additionally, the Company announced that Kirby Hill, who has played a central role in building Skyward Specialty’s Captives & Specialty Programs divisions, will assume the role of Chairman, Captives & Specialty Programs. In this new capacity, Hill will focus on business development, key account relationship management, key strategic matters and mentoring.

    LaFlamme brings more than 20 years of experience across the specialty landscape. He joins Skyward Specialty from The Hartford, where he served most recently as Head of Programs. Throughout his career, LaFlamme built a reputation for cultivating strong relationships, driving innovation and delivering consistent performance.

    “Corey’s arrival comes at a pivotal time for Skyward Specialty. His experience, leadership and his balanced growth and underwriting mindset align perfectly with our vision to expand and lead in the Captives & Specialty Programs markets,” said Skyward Specialty Chairman and CEO Andrew Robinson. “At the same time, I want to recognize the impact Kirby has had in building this business into the true market contender it is. His continued involvement as Chairman will be instrumental in supporting Corey and ensuring that we accelerate our momentum. With this exceptional leadership team in place, we are well-positioned to lead in a space we view as one of the market’s most promising and dynamic areas.”

    About Skyward Specialty
    Skyward Specialty (Nasdaq: SKWD) is a rapidly growing and innovative specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. The Company operates through eight underwriting divisions — Accident & Health, Agriculture and Credit (Re)insurance, Captives, Construction & Energy Solutions, Global Property, Professional Lines, Specialty Programs, Surety and Transactional E&S.

    Skyward Specialty’s subsidiary insurance companies consist of Great Midwest Insurance Company, Houston Specialty Insurance Company, Imperium Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A (Excellent) with a stable outlook by A.M. Best Company. For more information about Skyward Specialty, its people, and its products, please visit skywardinsurance.com.

    Media Contact
    Haley Doughty
    Skyward Specialty Insurance Group
    713-935-4944
    hdoughty@skywardinsurance.com

    Investor Contact
    Natalie Schoolcraft
    Skyward Specialty Insurance Group
    614-494-4988
    nschoolcraft@skywardinsurance.com

    The MIL Network –

  • MIL-OSI Security: International coalition uncovers EUR 3 million online investment fraud

    Source: Eurojust

    Using the method of cyber trading, the group was able to make considerable profits and defraud victims of their substantial savings. The criminals created a fake online trading platform that promised large profits in a short period of time. After initially transferring modest sums of money to the platform, victims are then persuaded by fake charts that they will make large profits. Using psychological pressure, fake brokers call their victims to convince them to transfer higher amounts to the platform. The money transferred by the victims is never invested and instead goes directly to the criminal group. Authorities are aware of approximately 100 victims, but they believe more people have fallen victim to the OCG. 

    German authorities started investigating the fake platform after a married couple reported the scam to the police. The initial investigation focused on the holder of the bank account to which the couple had transferred their savings. The authorities soon uncovered an international criminal group behind the fake investment platform. On 6 September 2022, during the first action day in this investigation, authorities searched multiple locations in Belgium and Latvia, arrested two suspects and seized important evidence. This evidence was instrumental in identifying seven more members of the criminal group, including the managers of the call centres used to convince victims to invest more money. 

    The second action day took place on 13 May 2025. A total of eight searches took place simultaneously in Albania, Cyprus and Israel and executed six interrogations.  During the searches, authorities seized evidence to continue the investigation such as electronic devices and documents as well as cash.  A suspect in Cyprus was arrested with the intention of either surrendering or extraditing them to Germany. Investigations into the investment fraud will continue. 

    As victims were identified across the world and the group operated globally, international cooperation was essential. Eurojust ensured that judicial authorities worked together smoothly and efficiently from the start of the investigation in 2022. For the second phase of the investigation, Eurojust facilitated all judicial cooperation requests and coordinated the action day from its headquarters in The Hague. Europol provided operational support throughout the investigation, deploying mobile offices in Israel, Albania and the United Kingdom. A virtual command post was also set up by Europol to facilitate real-time coordination and intelligence sharing.

    The following authorities carried out the operations:

    • Germany: Public Prosecutor’s Office at the Itzehoe Regional Court, Department for Combating Cybercrime; District Criminal Investigation Office Kiel
    • Cyprus: Attorney General’s Office; Cyprus Police; Unit for Combating Money Laundering (MOKAS)
    • Albania: Special Prosecution Office against Corruption and Organised Crime
    • United Kingdom: National Crime Agency
    • Israel: Israeli Police –  National Cybercrime Unit, LAHAV 433 together with the Coordination and Operational Division in the Intelligence Branch

    This operation was carried out as part of the European Multidisciplinary Platform Against Criminal Threats (EMPACT).

    EMPACT tackles the most important threats posed by organised and serious international crime affecting the European Union. EMPACT strengthens intelligence and strategic and operational cooperation between national authorities, EU institutions and bodies, and international partners. EMPACT runs in four-year cycles focusing on common EU crime priorities. Fraud, economic and financial crimes are among the priorities for the 2022-2025 Policy Cycle.

    MIL Security OSI –

  • MIL-OSI Security: District of Arizona Charges 314 Individuals for Immigration-Related Criminal Conduct

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    PHOENIX, Ariz. – During the week of enforcement operations from May 3, 2025, through May 9, 2025, the U.S. Attorney’s Office for the District of Arizona brought immigration-related criminal charges against 314 defendants. Specifically, the United States filed 117 cases in which aliens illegally re-entered the United States, and the United States also charged 166 aliens for illegally entering the United States.  In its ongoing effort to deter unlawful immigration, the United States filed 25 cases against 31 individuals responsible for smuggling illegal aliens into and within the District of Arizona.

    These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), ICE Homeland Security Investigations (HSI), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

    Recent matters of interest include:

    United States v. Marco Antonio Ruelas-Solis: On May 3, 2025, Marco Antonio Ruelas-Solis, of Mexico, was found in possession of an FNS-9C 9-millimeter pistol and 40 rounds of 9-millimeter ammunition while target shooting along Forest Road 403 in the Tonto National Forest in Maricopa County. Ruelas-Solis was charged with Possession of a Firearm by Alien Unlawfully Present in the United States and Reentry of a Removed Alien. [Case Numbers: MJ-25-0178; MJ-25-6183]

    United States v. Clayton Line Wilhite: On May 4, 2025, Clayton Line Wilhite was arrested and charged with Transportation of an Illegal Alien after he failed to yield at an immigration checkpoint. After Wilhite failed to yield, law enforcement officers from Border Patrol and Customs and Border Protection responded to the scene and attempted to effectuate a stop. Wilhite led officers on a short vehicle chase before striking another car from behind and pulling over. Two illegal aliens from Mexico then exited the vehicle and tried to flee but were detained by agents. Wilhite remained in the driver’s seat and was arrested without further incident. [Case number: MJ-25-07795]

    A criminal complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

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

    RELEASE NUMBER:    2025-076_May 9 Immigration Enforcement

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

     

    MIL Security OSI –

  • MIL-OSI: Global Star Acquisition Inc. and K Enter Holdings Inc. Finalize Business Combination

    Source: GlobeNewswire (MIL-OSI)

    SEOUL and NEW YORK, May 13, 2025 (GLOBE NEWSWIRE) — Global Star Acquisition Inc. (NASDAQ: GLST) (“Global Star”), a special purpose acquisition company and K Enter Holdings Inc. (“K Enter”), a holding company with an internal K drama production team and controlling interest in six diversified entertainment operating companies based in Korea and engaged in the entertainment content and IP creation businesses, today announced the completion of the previously announced business combination that will result in the creation of K Wave Media Ltd. Accordingly, K Wave Media Ltd.’s ordinary shares and warrants are expected to commence trading on The Nasdaq Global Market under the symbols “KWM” and “KWMWW”, respectively on May 14, 2025.

    The business combination was approved at a special meeting of GLST’s stockholders on February 3, 2025.

    “We are proud to complete this milestone transition of K Wave Media to become the first Korean content media alliance to list on the Nasdaq stock exchange,” said Tan Chin Hwee, Executive Chairman and Interim CEO of K Enter. “We are laser focused on pursuing our planned growth initiatives across the value chain of our Korean entertainment and media business lines, now with enhanced U.S. visibility to attract a core retail and institutional shareholder base. Additionally, we are appreciative of Global Star’s partnership and mutual determination to achieve K Wave’s public listing. We are poised to become a leading player in IP-based diversified entertainment delivering high quality K-content to our loyal global fanbase.”

    K Wave Media will continue to be led by Tan Chin Hwee, Executive Chairman and Interim CEO of K Enter, until a successor is appointed.

    Advisors

    D. Boral Capital acted as Global Star’s Capital Markets Advisor on the transaction. Loeb & Loeb LLP acted as U.S. legal counsel to K Enter. Duane Morris LLP acted as legal counsel to Global Star.

    About K Enter Holdings Inc.

    K Enter Holdings Inc. is a Delaware corporation with contracts to acquire controlling equity interests in six diversified entertainment operating companies based in Korea, engaged in the entertainment content, IP creation, merchandising and entertainment investment businesses (the “Six Korean Entities”). K Enter has an internal K drama production team. The Six Korean Entities to be acquired by K Enter include Play Company Co., Ltd, a Korean IP merchandising company, and Solaire Partners Ltd., a Korean IP content-specialized private equity firm, Studio Anseilen Co., Ltd., a K drama production company, and The LAMP Co., Ltd., Bidangil Pictures Co., Ltd., and Apeitda Co., Ltd., each of which is a K movie production company.

    About Global Star Acquisition Inc.

    Global Star Acquisition Inc., a Delaware corporation, is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

    Cautionary Statements Regarding Forward-Looking Statements

    This press release is provided for informational purposes and for no other purpose. No representations or warranties, express or implied are given in, or in respect of, this press release. To the fullest extent permitted by law under no circumstances will Global Star, K Enter, or any of the Six Korean Entities, interest holders, affiliates, representatives, partners, directors, officers, employees, advisors or agents be responsible or liable for any direct, indirect or consequential loss or loss of profit arising from the use of this press release, its contents, its omissions, reliance on the information contained within it, or on opinions communicated in relation thereto or otherwise arising in connection therewith. Industry and market data used in this press release have been obtained from third-party industry publications and sources as well as from research reports prepared for other purposes. Neither Global Star nor K Enter has independently verified the data obtained from these sources and cannot assure you of the data’s accuracy or completeness. This data is subject to change. In addition, this press release does not purport to be all-inclusive or to contain all the information that may be required to make a full analysis of Global Star, K Enter or the Proposed Business Combination. Viewers of this press release should each make their own evaluation of Global Star and K Enter and of the relevance and adequacy of the information and should make such other investigations as they deem necessary. This press release contains certain “forward-looking statements” within the meaning of the federal securities laws, including statements regarding the benefits of the Proposed Business Combination, including K Enter’s ability to accelerate the development of its products and bring them to market, the anticipated timing for completion of the Proposed Business Combination, and Global Star’s and K Enter’s expectations, plans or forecasts of future events and views as of the date of this press release. Global Star and K Enter anticipate that subsequent events and developments will cause Global Star’s and K Enter’s assessments to change. These forward-looking statements, which may include, without limitation, words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will”, “could,” “should,” “believes,” “predicts,” “potential,” “might,” “continues,” “think,” “strategy,” “future,” and similar expressions, involve significant risks and uncertainties (most of which factors are outside of the control of Global Star or K Enter).

    In addition, this press release includes a summary set of risk factors that may have a material impact on Global Star, K Enter or the Proposed Business Combination, which are not intended to capture all the risks to which Global Star, K Enter or the Proposed Business Combination is subject or may be subject. Factors that may cause such differences include but are not limited to: (1) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement; (2) the risk that the Proposed Business Combination may not be completed in a timely manner or at all, which may adversely affect the price of the securities; (3) the risk that the Proposed Business Combination may not be completed by Global Star’s business combination deadline; (4) the inability to complete the Proposed Business Combination, including but not limited to due to the failure to obtain approval of the stockholders of Global Star or K Enter for the Merger Agreement, to receive certain governmental, regulatory and third party approvals or to satisfy other conditions to closing in the Merger Agreement; (5) the failure to achieve the minimum amount of cash available following any redemptions by Global Star’s stockholders; (6) the inability to obtain or maintain the listing of Global Star’s common stock on Nasdaq following the Proposed Business Combination, including but not limited to redemptions exceeding anticipated levels or the failure to meet Nasdaq’s initial listing standards in connection with the consummation of the Proposed Business Combination; (7) the effect of the announcement or pendency of the Proposed Business Combination on K Enter’s business relationships, operating results, and business generally; (8) risks that the Proposed Business Combination disrupts current plans and operations of K Enter or the Six Korean Entities; (9) the inability to realize the anticipated benefits of the Proposed Business Combination and to realize estimated pro forma results and underlying assumptions, including but not limited to with respect to estimated stockholder redemptions and costs related to the Proposed Business Combination; (10) the possibility that Global Star or K Enter or the Six Korean Entities may be adversely affected by other economic or business factors; (11) changes in the markets in which K Enter and the Six Korean Entities compete, including but not limited to with respect to its competitive landscape, technology evolution, changes in entertainment choices or regulatory changes; (12) changes in domestic and global general economic conditions; (13) risk that K Enter may not be able to execute its growth strategies; (14) the risk that K Enter experiences difficulties in managing its growth and expanding operations after the Proposed Business Combination; (15) the risk that the parties will need to raise additional capital to execute the business plan, which may not be available on acceptable terms or at all; (16) the ability to recognize the anticipated benefits of the Proposed Business Combination to achieve its commercialization and development plans, and identify and realize additional opportunities, which may be affected by, among other things, competition, the ability of K Enter to grow and manage growth economically and hire and retain key employees; (17) risk that K Enter may not be able to develop and maintain effective internal controls; (18) the risk that K Enter may fail to keep pace with rapid technological developments or changes in entertainment tastes to provide new and innovative products and services, or may make substantial investments in unsuccessful new products and services; (19) the ability to develop, license or acquire new content, products and services; (20) the risk that K Enter is unable to secure or protect its intellectual property; (21) the risk of product liability or regulatory lawsuits or proceedings relating to K Enter’s business; (22) the risk of cyber security or foreign exchange losses; (23) changes in applicable laws or regulations; (24) the outcome of any legal proceedings that may be instituted against the parties related to the Merger Agreement or the Proposed Business Combination; (25) the impact of the global COVID-19 pandemic and response on any of the foregoing risks, including but not limited to supply chain disruptions; (26) the risk that K Enter fails to successfully and timely consummate its acquisition of one or more of the Six Korean Entities’; and (27) other risks and uncertainties identified in the registration statement on Form F-4, which included a proxy statement/prospectus filed in connection with the Proposed Business Combination (the “Registration Statement”), including those under “Risk Factors” therein, and in other filings with the U.S. Securities and Exchange Commission (“SEC”) made by Global Star. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Global Star’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and the Registration Statement filed with the SEC with respect to the Proposed Business Combination, and other documents filed by Global Star from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. The foregoing list of factors is not exhaustive, are provided for illustrative purposes only, and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Forward-looking statements speak only as of the date they are made. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither Global Star nor K Enter presently know or that Global Star and K Enter currently believe are immaterial that could also cause actual results to differ materially from those contained in the forward-looking statements. Global Star and K Enter anticipate that subsequent events and developments will cause Global Star’s and K Enter’s assessments to change. However, while Global Star and K Enter may elect to update these forward-looking statements at some point in the future, Global Star and K Enter specifically disclaim any obligation to do so. Neither Global Star nor K Enter gives any assurance that Global Star or K Enter, or the combined company, will achieve its expectations. Accordingly, undue reliance should not be placed upon the forward-looking statements, and they should not be relied upon as representing Global Star’s and K Enter’s assessments as of any date subsequent to the date of this press release.

    Contact

    K Enter Holdings, Inc.
    Ted Kim
    Director and Co-Founder, K-Enter Holdings
    ted@globalfundpe.com

    Investor Contact
    MZ Group
    Shannon Devine/Rory Rumore
    +1 (203) 741-8811
    GLST@mzgroup.us

    The MIL Network –

  • MIL-OSI: Gevo Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Quarterly Revenue Increased $25 Million Compared to First Quarter of 2024 Due to Strategic Growth Initiatives 

    Further Revenue and Adjusted EBITDA1Growth is Expected in 2025 

    Gevo to Host Conference Call Today at 4:30 p.m. ET

    ENGLEWOOD, Colo., May 13, 2025 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) (“Gevo”, the “Company”, “we”, “us” or “our”), a leading developer of cost-effective, renewable hydrocarbon fuels and chemicals that also can deliver significant carbon emission abatement, today announced financial results for the first quarter ended March 31, 2025.

    Recent Corporate Highlights: Continuing on a Path to Positive Adjusted EBITDA1 

    • Revenue and Adjusted EBITDA growth: Total operating revenue increased by approximately $25 million in the first quarter of 2025 compared to the first quarter of 2024.
      • This increase was primarily driven by inorganic revenue growth of $23 million during the last two months of the quarter from Gevo North Dakota (through the acquisition of substantially all of the assets of Red Trail Energy, LLC, which closed on January 31, 2025). Gevo’s consolidated financials for the first quarter of 2025 include Gevo North Dakota results for the two months of February and March 2025.
      • RNG total operating revenue increased by $1.7 million, or 42%, compared to the first quarter of 2024. This was primarily driven by receiving approval of a -339 gCO2e/MJ carbon intensity (“CI”) score for our RNG project from the California Air Resources Board (“CARB”) under their Low Carbon Fuel Standard (“LCFS”) program, partially offset by lower Renewable Identification Number (“RIN”) prices.
      • We expect further Adjusted EBITDA1 growth through the rest of 2025 as a result of the expected monetization of Section 45Z tax credits generated by our low-carbon ethanol and biogas facilities.
      • Other revenue, including sales of isooctane and software services, also increased by $0.6 million in the first quarter of 2025 compared to the first quarter of 2024.
    • Carbon abatement, a new product that can be sold: Gevo is actively developing the customers and markets for voluntary carbon abatement. Our drop-in fuel products generated total carbon abatement (i.e., emissions sequestered, reduced or avoided by using renewable instead of fossil inputs) of over 100 thousand metric tons of CO2 in the first quarter of 2025.
      • This carbon abatement includes captured and sequestered volume of approximately 29 thousand metric tons of CO2 at Gevo North Dakota during the two months of February and March 2025.
      • During the same period, Gevo North Dakota produced approximately 11.1 million gallons of low-carbon ethanol at an estimated CI of 21 gCO2e/MJ, contributing approximately 47 thousand metric tons of carbon abatement.
      • RNG had production of 79,963 MMBtu in the first quarter of 2025 and over 60,000 metric tons of carbon credits were generated in the California LCFS system.

    _________________________
    1  Adjusted EBITDA is a non-GAAP measure calculated by adding back depreciation and amortization, allocated intercompany expenses for shared service functions, non-cash stock-based compensation, and the change in fair value of derivative instruments to GAAP loss from operations as well as monetized tax credits, if any. A reconciliation of adjusted EBITDA to GAAP loss from operations is provided in the financial statement tables following this release. Adjusted EBITDA was referred to as “cash EBITDA” in previous periods.

    • New offtake agreements for jet fuel and carbon abatement: In April 2025, Gevo signed a pioneering offtake agreement with Future Energy Global (“FEG”), under which FEG will acquire from Gevo the Scope 1 and Scope 3 emissions credits from 10 million gallons per year of fuel to be produced at one of our planned alcohol-to-jet (“ATJ”) facilities. Additionally, we entered into an agreement with a separate undisclosed party for an additional five million gallons per year of SAF, without the carbon value or Scope 1 and Scope 3 emissions credits attached. The carbon abatement for this additional 5 million gallons has been sold to a separate party, not the fuel buyer. Note that Scope 1 and Scope 3 emissions credits are in addition to, and separate from, state and federal compliance credits. These offtake agreements are expected to be useful for financing our ATJ projects in South Dakota or North Dakota.
    • Verity: Verity is our wholly owned, data verification platform that enables traceable, audit-ready carbon abatement accounting across complex supply chains, supporting regulatory compliance and carbon market participation. In the first quarter of 2025, Verity announced agreements with two new customers, Landus and Minnesota Soybean Processors. These agreements provide access to those customers to track and verify sustainable agriculture attributes, while streamlining compliance reporting and auditability.

    2025 First Quarter Financial Highlights

    • Ended the first quarter with cash, cash equivalents and restricted cash of $134.9 million.
    • Combined operating revenue and investment income was $30.9 million for the first quarter.
      • On a standalone basis, our RNG subsidiary generated revenue of $5.7 million during the first quarter of 2025. This reflects an increase of $1.7 million compared to the previous year, driven by increased LCFS credit generation due to our carbon score for the LCFS program, partially offset by reduced RIN prices. 
    • Loss from operations of $20.1 million for the first quarter.
    • Non-GAAP Adjusted EBITDA loss1 of $15.4 million for the first quarter.
    • Sale of environmental attributes by our RNG subsidiary of $5.4 million for the first quarter.
    • Gevo RNG generated income from operations of $0.5 million, and non-GAAP Adjusted EBITDA1 of $2.7 million for the first quarter.
    • Gevo North Dakota generated income from operations of $1.1 million, and non-GAAP Adjusted EBITDA1 of $1.8 million for the first quarter.
    • Net loss per share of $0.09 for the first quarter.

    Management Comment 

    Dr. Patrick Gruber, Gevo’s Chief Executive Officer, commented, “We believe we can get to positive Adjusted EBITDA this year for the company. This is in spite of the perceived headwinds and noise in the marketplace. We have real products to sell now that we own our North Dakota plant. Gevo North Dakota produces ethanol, animal feed, corn oil, and importantly, carbon abatement. The carbon abatement value is generated by capturing CO2 and sending it more than a mile underground into what we think is the best well (or sequestration site) in the country. Having this carbon abatement available to us has opened up new doors in the marketplace as customers and partners don’t have to wait around for synthetic aviation fuel (“SAF”) projects to be built to start developing the market in a real sense. We have approval from the Internal Revenue Service to apply for the Section 45Z tax credit, so we will do that, and that should help meet our Adjusted EBITDA goals.”

    Dr. Gruber continued, “We continue to believe that SAF offers an excellent market opportunity. We see that jet fuel demand, beyond SAF, is expected to grow. We continue to believe that alcohol-to-jet offers the most scalable and lowest cost of production route. We need to get plants financed and deployed. To that end, we are doing a few things. First, we continue to be engaged with the U.S. Department of Energy on financing our ATJ-60 project, which we believe advances the stated objectives of the White House to produce more home-made energy including ethanol, biofuels and jet fuel. Second, we are translating the designs and engineering from the ATJ-60 to deploy an ATJ plant that can produce 30 million gallons per year of jet fuel at our Gevo North Dakota site (“ATJ-30”). We expect that this ATJ-30 plant will be near-fully modularized to minimize cost, construction, and start-up risks, and be able to be deployed sooner than or on a similar timeframe as ATJ-60. We already have more than 50% of the capacity of the ATJ-30 sold. Third, by driving down capital costs, we expect that there will be several opportunities for us to “sell” plants, and license our technology portfolio in the future.”

    “Unlike other companies in the ATJ space,” Dr. Gruber added, “we are using tried and true, proven at scale, unit operations to produce jet fuel. We figured out how to optimize them, integrate them, and make the jet fuel product in extremely high yield, with low production cost and a very low CI score. We have more than 100 patents covering the business system and technologies for ethanol to jet fuel and other hydrocarbons. We are pleased that Axens, who is the preeminent supplier of the various unit operations needed to make jet fuel from ethylene, including winning a Nobel prize for the trickiest step, has taken a license from Gevo for advanced ATJ processes. We are continuing to strengthen our partnership with Axens.”

    “We are also aligning our strategic goals with fiscal discipline measures that should further enable our conservation of cash and realization of our target Adjusted EBITDA growth and strong fiscal year performance.”

    Dr. Gruber concluded, “I like our position: we have operating assets that contribute Adjusted EBITDA, we have mature jet fuel projects, we have one of the few operating carbon capture and sequestration operations, we are developing markets with advanced carbon sequestration operations, we have a terrific site in North Dakota to build out capacity for jet fuel and other products, and we have a strong proprietary position given our patents and know-how.”

    2025 First Quarter Financial Results

    Operating revenue. During the three months ended March 31, 2025, operating revenue increased by $25.1 million compared to the three months ended March 31, 2024. This increase was primarily due to $22.8 million in revenue from Gevo North Dakota in the two months we have owned it, $1.7 million in additional revenue from our RNG project driven by an increase in LCFS credits generated due to our improved carbon score for the LCFS program offset by a decline in RIN prices, and $0.5 million from the sale of isooctane. During the three months ended March 31, 2025, we sold 79,963 MMBtu of RNG from our RNG project, resulting in $0.3 million in RNG sales and $5.4 million in environmental attribute sales.

    Cost of production. Cost of production increased $18.9 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to $21.7 million from Gevo North Dakota, partially offset by $3.6 million of future corn basis gains.

    Depreciation and amortization. Depreciation and amortization increased $1.2 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to $3.5 million of depreciation related to Gevo North Dakota, partially offset by a $2.6 million reduction of depreciation related to assets fully depreciated at our facility in Luverne, Minnesota (the “Luverne Facility”).

    Research and development expense. Research and development expenses decreased $0.5 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to decreased consulting expenses and professional fees.

    General and administrative expense. General and administrative expense decreased $1.1 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to a $2.3 million decrease in stock-based compensation, partially offset by $0.5 million higher employee costs, $0.2 million increase in insurance costs and $0.2 million increase in computer and software costs.

    Project development costs. Project development costs are primarily related to our ATJ projects and Verity, which consist primarily of employee expenses, preliminary engineering costs, and technical consulting fees. Project development costs decreased $0.3 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to a $1.8 million wind-down fee incurred in 2024, partially offset by $1.1 million of additional employee related costs.

    Acquisition related costs. Acquisition related costs of $4.4 million are due to our acquisition of Gevo North Dakota.

    Facility idling costs. Facility idling costs are related to the care and maintenance of our Luverne Facility and reprocessing plant. Facility idling costs decreased $0.5 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to utilizing the reprocessing plant for isooctane production.

    Loss from operations. The Company’s loss from operations decreased by $3.0 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to increased revenues from Gevo North Dakota and the reduction of general and administrative expenses, partially offset by the acquisition related costs.

    Interest expense. Interest expense increased $2.8 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to the debt used to acquire Gevo North Dakota and a higher interest rate on our remarketed RNG bonds.

    Interest and investment income. Interest and investment income decreased $2.8 million during the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to the usage of cash for the acquisition of Gevo North Dakota and to fund our capital projects and operating costs, resulting in a lower balance of cash equivalent investments during the three months ended March 31, 2025.

    Other income (expense), net. Other income (expense), net remained flat for the three months ended March 31, 2025, compared to the three months ended March 31, 2024.

    Webcast and Conference Call Information

    Hosting today’s conference call at 4:30 p.m. ET will be Dr. Patrick R. Gruber, Chief Executive Officer, Dr. Chris Ryan, President and Chief Operating Officer, L. Lynn Smull, Chief Financial Officer, Dr. Paul Bloom, Chief Business Officer and Dr. Eric Frey, Vice President of Finance and Strategy. They will review Gevo’s financial results and provide an update on recent corporate highlights.

    To participate in the live call, please register through the following event weblink: https://register-conf.media-server.com/register/BI14d4db26011d45b9871ce05b8b3c5a63. After registering, participants will be provided with a dial-in number and pin.

    To listen to the conference call (audio only), please register through the following event weblink: https://edge.media-server.com/mmc/p/xd9v2i3x.

    A webcast replay will be available two hours after the conference call ends on May 13, 2025. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

    About Gevo

    Gevo is a next-generation diversified energy company committed to fueling America’s future with cost-effective, drop-in fuels that contribute to energy security, abate carbon, and strengthen rural communities to drive economic growth. Gevo’s innovative technology can be used to make a variety of renewable products, including SAF, motor fuels, chemicals, and other materials that provide U.S.-made solutions. By investing in the backbone of rural America, Gevo’s business model includes developing, financing, and operating production facilities that create jobs and revitalize communities. Gevo owns and operates one of the largest dairy-based RNG facilities in the United States, turning by-products into clean, reliable energy. We also operate an ethanol plant with an adjacent CCS facility, further solidifying America’s leadership in energy innovation. Additionally, Gevo owns the world’s first production facility for specialty ATJ fuels and chemicals. Gevo’s market-driven “pay for performance” approach regarding carbon and other sustainability attributes, helps ensure value is delivered to our local economy. Through its Verity subsidiary, Gevo provides transparency, accountability, and efficiency in tracking, measuring and verifying various attributes throughout the supply chain. By strengthening rural economies, Gevo is working to secure a self-sufficient future and to make sure value is brought to the market.

    For more information, see www.gevo.com.

    Forward-Looking Statements

    Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, the financing and the timing of our ATJ-60 project, our ATJ-30 project, our financial condition, our results of operation and liquidity, our business plans, our business development activities, financial projections related to our business, our RNG project, our sales agreements, our plans to develop our business, our ability to successfully develop, construct, and finance our operations and growth projects, our ability to achieve cash flow from our planned projects, the ability of our products to contribute to lower greenhouse gas emissions, particulate and sulfur pollution, and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in our most recent Annual Report on Form 10-K and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

    Non-GAAP Financial Information

    This press release contains a financial measure that does not comply with U.S. generally accepted accounting principles (“GAAP”), including non-GAAP adjusted EBITDA. Non-GAAP adjusted EBITDA excludes depreciation and amortization, allocated intercompany expenses for shared service functions, and non-cash stock-based compensation from GAAP loss from operations. Management believes this measure is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. This non-GAAP financial measure also facilitates management’s internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes this non-GAAP financial measure is useful to investors because it allows for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided below.

    Gevo, Inc.
    Condensed Consolidated Balance Sheets
    (In thousands, except share and per share amounts)

               
      March 31, 2025   December 31, 2024
    Assets          
    Current assets          
    Cash and cash equivalents $ 65,288     $ 189,389  
    Restricted cash   1,489       1,489  
    Trade accounts receivable, net   11,746       2,411  
    Inventories   16,787       4,502  
    Prepaid expenses and other current assets   8,545       5,920  
    Total current assets   103,855       203,711  
    Property, plant and equipment, net   339,070       221,642  
    Restricted cash   68,155       68,155  
    Operating right-of-use assets   2,283       1,064  
    Finance right-of-use assets   1,540       1,877  
    Intangible assets, net   52,113       8,129  
    Goodwill   41,605       3,740  
    Deposits and other assets   69,179       75,623  
    Total assets $ 677,800     $ 583,941  
    Liabilities          
    Current liabilities          
    Accounts payable and accrued liabilities $ 28,770     $ 22,006  
    Operating lease liabilities   692       333  
    Finance lease liabilities   1,610       2,001  
    Loans payable   19,925       21  
    Total current liabilities   50,997       24,361  
    Remarketed Bonds payable, net   67,317       67,109  
    Loans payable   79,773       —  
    Operating lease liabilities   1,840       966  
    Finance lease liabilities   210       187  
    Asset retirement obligation   2,142       —  
    Other long-term liabilities   729       1,830  
    Total liabilities   203,008       94,453  
               
    Redeemable non-controlling interest   4,955       —  
               
    Equity          
    Common stock, $0.01 par value per share; 500,000,000 shares authorized; 239,562,995 and 239,176,293 shares issued and outstanding at March 31, 2025, and December 31, 2024, respectively.   2,396       2,392  
    Additional paid-in capital   1,289,406       1,287,333  
    Accumulated deficit   (821,965 )     (800,237 )
    Total stockholders’ equity   469,837       489,488  
    Total liabilities and stockholders’ equity $ 677,800     $ 583,941  
                   

    Gevo, Inc.
    Condensed Consolidated Statements of Operations
    (In thousands, except share and per share amounts)

               
      Three Months Ended March 31, 
      2025   2024
    Total operating revenues $ 29,109     $ 3,990  
    Operating expenses:          
    Cost of production   21,446       2,587  
    Depreciation and amortization   5,622       4,451  
    Research and development expense   1,052       1,548  
    General and administrative expense   11,084       12,150  
    Project development costs   5,002       5,319  
    Acquisition related costs   4,438       —  
    Facility idling costs   604       1,076  
    Total operating expenses   49,248       27,131  
    Loss from operations   (20,139 )     (23,141 )
    Other (expense) income          
    Interest expense   (3,294 )     (542 )
    Interest and investment income   1,770       4,593  
    Other (expense) income, net   (110 )     215  
    Total other (expense) income, net   (1,634 )     4,266  
    Net loss   (21,773 )     (18,875 )
    Net loss attributable to non-controlling interest   (45 )     —  
    Net loss attributable to Gevo, Inc. $ (21,728 )   $ (18,875 )
               
    Net loss per share – basic and diluted $ (0.09 )   $ (0.08 )
    Weighted-average number of common shares outstanding – basic and diluted   232,027,993       240,844,334  
                   

    Gevo, Inc.
    Condensed Consolidated Statements of Stockholders’ Equity
    (In thousands, except share amounts)

                               
      For the Three Months Ended March 31, 2025 and 2024
                               
                               
      Common Stock         Accumulated    Stockholders’
      Shares      Amount      Paid-In Capital      Deficit   Equity
    Balance, December 31, 2024   239,176,293     $ 2,392     $ 1,287,333     $ (800,237 )   $ 489,488  
    Non-cash stock-based compensation   —       —       1,898       —       1,898  
    Stock-based awards and related share issuances, net   386,702       4       175       —       179  
    Net loss   —       —       —       (21,728 )     (21,728 )
    Balance, March 31, 2025   239,562,995     $ 2,396     $ 1,289,406     $ (821,965 )   $ 469,837  
                               
    Balance, December 31, 2023   240,499,833     $ 2,405     $ 1,276,581     $ (721,597 )   $ 557,389  
    Non-cash stock-based compensation   —       —       4,233       —       4,233  
    Stock-based awards and related share issuances, net   1,204,232       12       583       —       595  
    Repurchase of common stock   (2,127,661 )     (21 )     (1,376 )     —       (1,397 )
    Net loss   —       —       —       (18,875 )     (18,875 )
    Balance, March 31, 2024   239,576,404     $ 2,396     $ 1,280,021     $ (740,472 )   $ 541,945  
                                           

    Gevo, Inc.
    Condensed Consolidated Statements of Cash Flows
    (In thousands)

               
      Three Months Ended March 31, 
      2025   2024
    Operating Activities          
    Net loss $ (21,773 )   $ (18,875 )
    Adjustments to reconcile net loss to net cash used in operating activities:          
    Stock-based compensation   1,898       4,233  
    Depreciation and amortization   5,622       4,451  
    Change in fair value of derivative instruments   (2,732 )     —  
    Other non-cash (income) expense   1,004       656  
    Changes in operating assets and liabilities, net of effects of acquisition:          
    Accounts receivable   (4,355 )     135  
    Inventories   (1,045 )     (55 )
    Prepaid expenses and other current assets, deposits and other assets   (2,264 )     (3,297 )
    Accounts payable, accrued expenses and non-current liabilities   (403 )     (3,326 )
    Net cash used in operating activities   (24,048 )     (16,078 )
    Investing Activities          
    Acquisitions of property, plant and equipment   (5,834 )     (17,512 )
    Acquisition of Red Trail Energy   (198,461 )     –  
    Net cash used in investing activities   (204,295 )     (17,512 )
    Financing Activities          
    OIC loan proceeds   105,000       —  
    Payment of debt issuance costs   (5,480 )     —  
    Non-controlling interest   5,000       —  
    Proceeds from the exercise of stock options   179       —  
    Payment of loans payable   —       (32 )
    Payment of finance lease liabilities   (457 )     (23 )
    Repurchases of common stock   —       (1,397 )
    Net cash provided by (used in) financing activities   104,242       (1,452 )
    Net decrease in cash and cash equivalents   (124,101 )     (35,042 )
    Cash, cash equivalents and restricted cash at beginning of period   259,033       375,597  
    Cash, cash equivalents and restricted cash at end of period $ 134,932     $ 340,555  
                   

    Gevo, Inc.
    Reconciliation of GAAP to Non-GAAP Financial Information
    (In thousands)

               
      Three Months Ended March 31, 
      2025   2024
    Non-GAAP Adjusted EBITDA (Consolidated):          
    Loss from operations $ (20,139 )   $ (23,141 )
    Depreciation and amortization   5,622       4,451  
    Stock-based compensation   1,898       4,233  
    Change in fair value of derivative instruments   (2,732 )     —  
    Non-GAAP adjusted EBITDA (loss) (Consolidated) $ (15,351 )   $ (14,457 )
      Three Months Ended March 31, 2025
                           
      Gevo   GevoFuels   GevoRNG   GevoND   Consolidated
    Non-GAAP Adjusted EBITDA (Consolidated):                            
    (Loss) income from operations $ (20,984 )   $ (724 )   $ 469     $ 1,100     $ (20,139 )
    Depreciation and amortization   747       —       1,403       3,472       5,622  
    Allocated intercompany expenses for shared service functions   (890 )     —       890       —       —  
    Stock-based compensation   1,937       —       (39 )     —       1,898  
    Change in fair value of derivative instruments   —       —       —       (2,732 )     (2,732 )
    Non-GAAP adjusted EBITDA (loss) (Consolidated) $ (19,190 )   $ (724 )   $ 2,723     $ 1,840     $ (15,351 )
                                           
      Three Months Ended March 31, 2024
                       
      Gevo   GevoFuels   GevoRNG   Consolidated
    Non-GAAP Adjusted EBITDA (Consolidated):                      
    Loss from operations $ (20,126 )   $ (1,010 )   $ (2,005 )   $ (23,141 )
    Depreciation and amortization   3,077       —       1,374       4,451  
    Allocated intercompany expenses for shared service functions   (890 )     —       890       —  
    Stock-based compensation   4,199       —       34       4,233  
    Non-GAAP adjusted EBITDA (loss) (Consolidated) $ (13,740 )   $ (1,010 )   $ 293     $ (14,457 )
                                   

    Media Contact
    Heather Manuel
    Vice President of Stakeholder Engagement & Partnerships
    PR@gevo.com

    Investor Contact
    Eric Frey, PhD
    Vice President of Finance and Strategy
    IR@Gevo.com

    The MIL Network –

  • MIL-OSI: AGM Group Holdings Inc. Files 2024 Annual Report on Form 20-F

    Source: GlobeNewswire (MIL-OSI)

    Beijing, May 13, 2025 (GLOBE NEWSWIRE) — AGM Group Holdings Inc. (“AGM Holdings” or the “Company”) (NASDAQ: AGMH), an integrated technology company specializing in the assembling and sales of high-performance hardware and computing equipment, today announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 with the Securities and Exchange Commission (the “SEC”) on May 13, 2025. 

    The annual report on Form 20-F can be accessed on the SEC’s website at www.sec.gov and on the Company’s investor relations website at www.agmprime.com. The Company will also provide a hard copy of the annual report containing its audited consolidated financial statements, free of charge, to its shareholders upon request.

    About AGM Group Holdings Inc.

    AGM Group Holdings Inc. (NASDAQ: AGMH) is an integrated technology company specializing in the assembling and sales of high-performance hardware and computing equipment. With a mission to become a key participant and contributor in the global blockchain ecosystem, AGMH focuses on the research and development of blockchain-oriented Application-Specific Integrated Circuit (ASIC) chips, the assembling and sales of high-end crypto miners for Bitcoin and other cryptocurrencies. For more information, please visit www.agmprime.com.

    For more information, please contact:

    AGM Group Holdings Inc.
    Email: ir@agmprime.com
    Website: http://www.agmprime.com

    Ascent Investor Relations LLC
    Tina Xiao
    President
    Phone: +1-646-932-7242
    Email: investors@ascent-ir.com

    The MIL Network –

  • MIL-OSI: Robinhood Markets, Inc. Reports April 2025 Operating Data

    Source: GlobeNewswire (MIL-OSI)

    MENLO PARK, Calif., May 13, 2025 (GLOBE NEWSWIRE) — Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today reported select monthly operating data for April 2025.

    • Funded Customers at the end of April were 25.9 million (up approximately 120 thousand from March 2025, up approximately 2 million year-over-year).
    • Total Platform Assets at the end of April were $232 billion (up 5% from March 2025, up 88% year-over-year). Net Deposits were $6.8 billion in April, or a 37% annualized growth rate relative to March 2025 Total Platform Assets. Over the last twelve months, Net Deposits were $59.2 billion, or an annual growth rate of 48% relative to April 2024 Total Platform Assets.
    • Equity Notional Trading Volumes were $157.8 billion (up 26% from March 2025, up 123% year-over-year). Options Contracts Traded were 167.5 million (roughly flat to March 2025, up 32% year-over-year). Crypto Notional Trading Volumes were $8.6 billion (down 24% from March 2025, down 15% year-over-year).
    • Margin balances at the end of April were $8.4 billion (down 5% from the end of March 2025, up 105% year-over-year).
    • Total Cash Sweep balances at the end of April were $28.9 billion (up 2% from the end of March 2025, up 51% year-over-year).
    • Total Securities Lending Revenue in April was $25 million (up 4% from March 2025, up 19% year-over-year).
      April
    2025    		 March
    2025    		 M/M
    Change    		 April
    2024    		 Y/Y
    Change
    (M – in millions, B – in billions)          
    Funded Customer Growth (M)          
    Funded Customers 25.9 25.8 – 24.0 +8%
               
    Asset Growth ($B)          
    Total Platform Assets $232.3 $220.6 +5% $123.3 +88%
    Net Deposits $6.8 $7.6 NM $4.9 NM
               
    Trading          
    Trading Days (Equities and Options) 21 21 – 22 (5%)
    Total Trading Volumes          
    Equity ($B) $157.8 $125.6 +26% $70.7 +123%
    Options Contracts (M) 167.5 167.9 – 126.6 +32%
    Crypto ($B) $8.6 $11.3 (24%) $10.1 (15%)
               
    Daily Average Revenue Trades (DARTs) (M)        
    Equity 2.3 2.3 – 1.8 +28%
    Options 1.2 1.1 +9% 0.8 +50%
    Crypto 0.5 0.6 (17%) 0.4 +25%
               
    Customer Margin and Cash Sweep ($B)        
    Margin Book $8.4 $8.8 (5%) $4.1 +105%
    Total Cash Sweep $28.9 $28.2 +2% $19.1 +51%
    Gold Cash Sweep $26.9 $26.4 +2% $18.4 +46%
    Non-Gold Cash Sweep $2.0 $1.8 +11% $0.7 +186%
               
    Total Securities Lending Revenue ($M) $25 $24 +4% $21 +19%

    Note: Net Deposits do not include results from TradePMR.

    For definitions and additional information regarding these metrics, please refer to Robinhood’s full monthly metrics release, which is available on investors.robinhood.com.

    The information in this release is unaudited and the information for the months in the most recent fiscal quarter is preliminary, based on Robinhood’s estimates, and subject to completion of financial closing procedures. Final results for the most recent fiscal quarter, as reported in Robinhood’s quarterly and annual filings with the U.S. Securities and Exchange Commission (“SEC”), might vary from the information in this release.

    About Robinhood

    Robinhood Markets, Inc. (NASDAQ: HOOD) transformed financial services by introducing commission-free stock trading and democratizing access to the markets for millions of investors. Today, Robinhood lets you trade stocks, options, futures (which includes options on futures, swaps, and event contracts), and crypto, invest for retirement, and earn with Robinhood Gold. Headquartered in Menlo Park, California, Robinhood puts customers in the driver’s seat, delivering unprecedented value and products intentionally designed for a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.

    Robinhood uses the “Overview” tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com), as means of disclosing information to the public in a broad, non-exclusionary manner for purposes of the SEC Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood’s press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.

    “Robinhood” and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.

    Contacts

    Investor Relations

    ir@robinhood.com

    Media

    press@robinhood.com

    The MIL Network –

  • MIL-OSI: authID Reports Financial and Operating Results for the First Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    DENVER, May 13, 2025 (GLOBE NEWSWIRE) — authID® (Nasdaq: AUID) (“authID” or the “Company”), a leading provider of biometric identity verification and authentication solutions, today reported financial and operating results for the first quarter ended March 31, 2025.

    First Quarter 2025 vs. First Quarter 2024 Financial Summary

    • Total revenue for the quarter increased to $0.30 million, compared to $0.16 million a year ago.
    • Operating expenses were $4.7 million, compared to $3.3 million a year ago.
    • Net loss was $4.3 million, or $0.40 per share, compared to a loss of $3.1 million, or $0.32 per share a year ago.
    • Adjusted EBITDA Loss of $3.9 million (non-GAAP measure as defined below), compared with $2.4 million a year ago.
    • Gross bARR (Booked Annual Recurring Revenue) of $0.01 million (non-GAAP measure as defined below), compared with $0.10 million a year ago.

    “I’m incredibly excited about authID’s growth prospects in 2025 and beyond,” said Rhon Daguro, authID’s Chief Executive Officer. “We have solidified our foundation to become a leader in the evolving and fast-growing biometric authentication market while making progress on our ambitious 2025 goals. We are continuing to advance our conversations with key enterprise and platform partner prospects in order to achieve our bookings targets and are intensifying our focus on the large enterprise and large channel OEM segments as we move through the second quarter.

    “We recently secured nearly $9 million in capital through two financing rounds to improve our balance sheet, broaden our investor base and provide us with additional expertise and support as we scale our business and invest in new opportunities. Through these efforts we have also created an advisory board comprised of two new expert advisors, Eric Swider and Donald Nitti. Both leaders have extensive experience in different industry and government sectors where authID’s biometric identity solutions can address critical needs.

    “As we move through the year, we continue to expect to close multiple Fortune 500 and multi-national customers in 2025, and we are currently in the late stages of our sales cycle with these potential customers. I’m pleased with our momentum to date and remain confident that we will sign new customers and drive significant growth towards our $18 million bookings target for 2025.”

    Recent Business and Operational Highlights

    • Secured nearly $9 million dollars after expenses from existing and new shareholders through two registered direct offerings, while also creating an advisory board comprised of two new expert advisors, Eric Swider and Donald Nitti.
    • Signed a paid live production trial agreement with a Global Fortune 500 prospect to deliver authID’s solution in a controlled rollout. Upon completion, authID expects to secure a longer-term agreement.
    • Advanced to final stages with a Global Fortune 500 biometric hardware provider to embed authID into a solution offering reusable, interoperable identity credentials for employee workforces.
    • Confirmed as the selected vendor by one of the largest identity fraud platforms and are in the final stages of contract negotiations.
    • Launched efforts into the Public Sector by providing a reuseable identity platform for removing the barriers between siloed systems for government workforces.
    • Began integration with a blockchain-based data privacy and security platform to validate identity of data owners through privacy preserving biometrics which bring authID’s technology into smart cities in South America and India to start.
    • Identified new opportunities in the Indian banking sector with our Indian partner to protect high value transactions and account access with authID’s PrivacyKey technology
    • Successfully delivered a proof of concept and entered into contract negotiations with a Fortune 500 prospect to deliver identity verification and biometric solutions.
    • Named “Best ID Management Platform” Award in 2025 FinTech Breakthrough Awards for the third time. authID was recognized for its groundbreaking biometric identity verification technology, which has set a new standard for precision, speed, and data privacy in the fintech industry, as well as the verification landscape at large.

    Financial Results for the First Quarter Ended March 31, 2025

    Total revenue for the three months ended March 31, 2025 was $0.30 million, compared with $0.16 million a year ago.

    Operating expenses for the three months ended March 31, 2025, were $4.7 million, compared to $3.3 million a year ago. The 2025 increase is primarily due to increased headcount investment in sales and R&D.

    Net loss for the three months ended March 31, 2025 was $4.3 million, of which non-cash charges were $0.5 million, compared with a net loss of $3.1 million a year ago, of which non-cash charges were $0.8 million

    Loss per share for the three months ended March 31, 2025 was $0.40, compared with $0.32 a year ago.

    Adjusted EBITDA loss was $3.9 million for the three months ended March 31, 2024, compared with $2.4 million a year ago. The increase in Adjusted EBITDA loss is primarily driven by the increase in headcount investment in sales and R&D. Please refer to Table 1 for reconciliation of net loss to Adjusted EBITDA (a non-GAAP measure).

    Remaining Performance Obligation (RPO) as of March 31, 2025, was $13.85 million, of which $1.01 million is held as deferred revenue and $12.84 million is related to other non-cancellable contracted amounts, compared to RPO of $4.03 million as of March 31, 2024. The Company expects to recognize the full RPO of $13.85 million over the entire life of the contracts, which are typically signed with a 3-year term.

    The gross amount of Booked Annual Recurring Revenue or bARR, (a non-GAAP measure, as defined below), signed in the first quarter of 2025 was $0.01 million, down from $0.10 million of gross bARR a year ago. The net amount of bARR was negative $0.13 million compared to $0.10 million of net bARR signed in the comparable period in 2024. The Q1 bARR is comprised of $0 million in Committed Annual Recurring Revenue (cARR) and $0.01 million in estimated Usage Above Commitments (UAC).

    The net amount of bARR reflects the deduction of the bARR of contracts previously included in reported bARR, due to certain customers experiencing delays in Production Go-Live timing and volume ramping. See below for further definition and explanation of ARR and bARR, non-GAAP measures.

    Conference Call

    A conference call and webcast will be held today at 5.00 p.m. EDT, hosted by authID Chief Executive Officer, Rhon Daguro and Chief Financial Officer, Ed Sellitto to discuss the financial results and provide a corporate update. To participate on the live conference call, please access this registration link and you will be provided with dial-in details. To avoid delays, participants are encouraged to dial into the conference call 15 minutes ahead of the scheduled start time. A live webcast of the call will be available at webcast registration and on the “Events & Presentations” page of the Company’s website at investors.authid.ai. Only participants on the live conference call will be able to ask questions.

    A replay of the event and a copy of the presentation will also be available for 90 days at authID’s Investor Relations site.

    About authID Inc.

    authID (Nasdaq: AUID) ensures enterprises “Know Who’s Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented biometric identity platform. authID powers biometric identity proofing in 700ms, biometric authentication in 25ms, and account recovery with a fast, accurate, user-friendly experience. With our ground-breaking PrivacyKey Solution, authID provides a 1-to-1-billion false match rate, while storing no biometric data. authID stops fraud at onboarding, blocks deepfakes, prevents account takeover, and eliminates password risks and costs, through the fastest, most frictionless, and most accurate user identity experience demanded by today’s digital ecosystem.

    For further information please visit authid.ai

    Investor Relations Contacts
    authID Investor Relations
    investor-relations@authID.ai

    Media Contacts
    Walter Fowler
    1-631-334-3864
    wfowler@nexttechcomms.com

    Forward-Looking Statements

    This Press Release includes “forward-looking statements.” All statements other than statements of historical facts included herein, including, without limitation, those regarding the future results of operations, growth and sales, potential contract signings, booked Annual Recurring Revenue (bARR) (and its components cARR and UAC), Annual Recurring Revenue (ARR), cash flow, cash position and financial position, business strategy, plans and objectives of management for future operations of both authID Inc. and its business partners, are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding authID’s present and future business strategies, and the environment in which authID expects to operate in the future, which assumptions may or may not be fulfilled in practice. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the Company’s ability to attract and retain customers; successful implementation of the services to be provided under new customer contracts and their adoption by customers’ users; the Company’s ability to compete effectively; changes in laws, regulations and practices; the increase in international tariffs and uncertainty over international trading conditions, changes in domestic and international economic and political conditions, the impact of the wars in Ukraine and the Middle East, inflationary pressures, changes in interest rates, and others. See the Company’s Annual Report on Form 10-K for the Fiscal Year ended December 31, 2024 filed at www.sec.gov and other documents filed with the SEC for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this release and cannot be relied upon as a guide to future performance. authID expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release to reflect any changes in its expectations with regard thereto or any change in events, conditions, or circumstances on which any statement is based.

    Non-GAAP Financial Information

    The Company provides certain non-GAAP financial measures in this statement. These non-GAAP key business indicators, which include Adjusted EBITDA, bARR and ARR should not be considered replacements for and should be read in conjunction with the GAAP financial measures.

    Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period results. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors, and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our company and our management.

    Adjusted EBITDA is a non-GAAP financial measure that represents GAAP net loss adjusted to exclude (1) interest expense and debt discount and debt issuance costs amortization expense, (2) interest income, (3) depreciation and amortization, (4) stock-based compensation expense (stock options) and certain other items management believes affect the comparability of operating results.

    Please see Table 1 below for a reconciliation of Adjusted EBITDA – continuing operations to net loss – continuing operations, the most directly comparable financial measure calculated and presented in accordance with GAAP.

     
     TABLE 1
    Reconciliation of Loss from Continuing Operations to Adjusted EBITDA Continuing Operations.
     
      Three Months Ended
    March 31,
      2025   2024
    Loss from continuing operations $ (4,339,467 )   $ (3,057,577 )
                   
    Addback:              
                   
    Interest expense, net   12,712       13,138  
    Other income   (51,544 )     (108,920 )
    Depreciation and amortization   30,192       43,408  
    Stock compensation   454,339       722,971  
    Adjusted EBITDA continuing operations (Non-GAAP)   (3,893,768 )     (2,386,980 )
     

    Management believes that bARR and ARR, when viewed with our results under GAAP, provide useful information about the direction of future growth trends of the Company’s revenues. We also rely on bARR as one of several primary measures to review and assess the sales performance of our Company and our management team in connection with our executive compensation. The Company defines Booked Annual Recurring Revenue or bARR, as the amount of annual recurring revenue represented by the estimated amounts of annual recurring revenue we believe will be earned under such contracted orders, looking out eighteen months from the date of signing of each customer contract. This estimate is comprised of two components (1) Committed Annual Recurring Revenue (cARR), which represents the minimum amounts that customers are contractually committed to pay each year over the life of the contract and (2) Usage Above Commitments (UAC), which represents our estimate of the rate of annual recurring revenue arising from actual usage of our services above the contractual minimums, that we believe the Customer will achieve after 18 months. The net amount of bARR reflects the deduction of the bARR of contracts previously included in reported bARR, which were subject to attrition, or other downward adjustments during the quarter.

    The company defines Annual Recurring Revenue or ARR, as the amount of recurring revenue recognized during the last three months of the relevant period as determined in accordance with GAAP, multiplied by four.

    bARR may be distinguished from ARR, as bARR does not take specifically into account the time to implement any contract for authID’s services, nor for any ramp in adoption, or seasonality of usage of our biometric products but is based on the assumption that 18 months after signing these matters will have been generally resolved. Furthermore, bARR is based on estimates of future revenues under particular contracts, whereas ARR, whilst also forward-looking, is based on historical revenues recognized in accordance with GAAP during the relevant period. A reconciliation of bARR to a GAAP measure is not provided as there is no comparable GAAP measure and we believe that any attempt at such reconciliation may be confusing to investors. bARR and ARR have limitations as analytical tools, and you should not consider them in isolation from, or as a substitute for, analysis of our results as reported under GAAP. Some of these limitations are:

    • bARR & ARR should not be considered as predictors of future revenues but only as indicators of the direction in which revenues may be trending. Actual revenue results in the future as determined in accordance with GAAP may be significantly different to the amounts indicated as bARR or ARR at any time.
    • bARR and ARR are to be considered “forward-looking statements” and subject to the same risks, as other such statements (see note on “Forward-Looking Statements” above).
     
    authID INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
     
      Three Months Ended
    March 31,
      2025   2024
    Revenues, net $ 296,256     $ 157,378  
                   
    Operating Expenses:              
    General and administrative   2,645,700       2,062,361  
    Research and development   1,998,663       1,204,968  
    Depreciation amortization   30,192       43,408  
    Total operating expenses   4,674,555       3,310,737  
                   
    Loss from operations   (4,378,299 )     (3,153,359 )
                   
    Other Income (Expense):              
    Interest expense, net   (12,712 )     (13,138 )
    Other income   51,544       108,920  
    Other income (expense), net   38,832       95,782  
                   
    Net loss before income taxes   (4,339,467 )     (3,057,577 )
    Income tax expense   –       –  
    Net Loss $ (4,339,467 )   $ (3,057,577 )
                   
                   
    Net Loss Per Share – Basic and Diluted operations $ (0.40 )   $ (0.32 )
                   
    Weighted Average Shares Outstanding – Basic and Diluted   10,920,909       9,450,220  
     
    authID INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
     
        March 31,
    2025    		       December 31,
    2024    		  
    ASSETS   (Unaudited)          
    Current Assets:              
    Cash $ 2,866,347     $ 8,471,561  
    Accounts receivable, net   1,028,564       97,897  
    Contract assets   487,551       426,859  
    Deferred contract costs   595,359       617,918  
    Other current assets, net   623,475       460,192  
    Total current assets   5,601,296       10,074,427  
                   
    Intangible assets, net   185,226       213,718  
    Goodwill   4,183,232       4,183,232  
    Total assets $ 9,969,754     $ 14,471,377  
                   
    LIABILITIES AND STOCKHOLDERS’ EQUITY              
    Current Liabilities:              
    Accounts payable and accrued expenses $ 811,934     $ 1,715,410  
    Commission liability   191,519       459,657  
    Severance liability   325,000       325,000  
    Convertible debt, net   –       240,884  
    Deferred revenue   1,011,448       215,237  
    Total current liabilities   2,339,901       2,956,188  
                   
    Total liabilities $ 2,339,901     $ 2,956,188  
                   
    Commitments and Contingencies (Note 8)              
                   
    Stockholders’ Equity:              
    Common stock, $0.0001 par value, 150,000,000 shares authorized as of March 31, 2025 and December 31, 2024; 10,920,909 shares issued and outstanding as of March 31, 2025 and December 31, 2024   1,092       1,092  
    Additional paid-in capital   185,766,847       185,312,508  
    Accumulated deficit   (178,147,996 )     (173,808,529 )
    Accumulated comprehensive income   9,910       10,118  
    Total stockholders’ equity   7,629,853       11,515,189  
    Total liabilities and stockholders’ equity $ 9,969,754     $ 14,471,377  
     
    authID INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
     
      Three Months Ended
    March 31,
      2025   2024
    CASH FLOWS FROM OPERATING ACTIVITIES:              
                   
    Net loss $ (4,339,467 )   $ (3,057,577 )
    Adjustments to reconcile net loss with cash flows from operations:              
    Stock-based compensation   454,339       722,971  
    Depreciation and amortization expense   30,192       43,408  
    Amortization of debt discounts and issuance costs   4,116       4,115  
                   
    Changes in operating assets and liabilities:              
    Accounts receivable   (930,667 )     (237,506 )
    Contract assets   (60,692 )     (49,713 )
    Deferred contract cost   22,559       (3,417 )
    Other current assets   (163,283 )     (9,521 )
    Commission liability   (268,138 )     (40,950 )
    Accounts payable and accrued expenses   (903,476 )     (495,357 )
    Deferred revenue   796,211       176,019  
    Net cash flows from operating activities   (5,358,306 )     (2,947,528 )
                   
    CASH FLOWS FROM INVESTING ACTIVITIES:              
    Purchase of intangible assets   (1,700 )     –  
    Net cash flows from investing activities   (1,700 )     –  
                   
    CASH FLOWS FROM FINANCING ACTIVITIES:              
    Repayment of convertible notes   (245,000 )     –  
    Net cash flows from financing activities   (245,000 )     –  
                   
    Effect of Foreign Currencies   (208 )     (3,359 )
                   
    Net Change in Cash   (5,605,214 )     (2,950,887 )
    Cash, Beginning of the Period   8,471,561       10,177,099  
    Cash, End of the Period $ 2,866,347     $ 7,226,212  
                   
    Supplemental Disclosure of Cash Flow Information:              
    Cash paid for interest $ 13,137     $ 9,023  

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    VIENNA, Va., May 13, 2025 (GLOBE NEWSWIRE) — Urgent.ly Inc. (Nasdaq: ULY) (“Urgently”), a U.S.-based leading provider of digital roadside and mobility assistance technology and services, today reported financial results for the first quarter ended March 31, 2025.

    “I am pleased with our solid start to the year, as we delivered revenue in line with our expectations and record gross margin of 26%. In addition, we achieved GAAP operating loss improvement of 71% and non-GAAP operating loss improvement of 93%, or $0.4 million, which was ahead of our guidance for non-GAAP operating loss of $1.0 million. By almost all key measures, we delivered our best quarter as a public company, and I am proud of the tireless effort across the organization to achieve these results. As we look ahead to the balance of the year, we expect to deliver positive sequential revenue growth during the third quarter, sustain our non-GAAP operating break-even and move closer to positive cash flow,” said Matt Booth, CEO of Urgently.

    First Quarter 2025 Updates:

    • Revenue of $31.3 million, a decrease of 22% year over year.
    • Gross profit of $8.0 million, a decrease of 15% year over year.
    • Gross margin of 26% compared to 23% in the prior year period.
    • GAAP operating expenses of $10.4 million, an improvement of 41%, compared to $17.7 million in the prior year period.
    • Non-GAAP operating expenses of $8.4 million, an improvement of 42%, compared to $14.5 million in the prior year period.
    • GAAP operating loss of $2.4 million compared to $8.3 million in the prior year period, an improvement of 71%.
    • Non-GAAP operating loss of $0.4 million, an improvement of 93%, compared to $5.1 million in the prior year period.
    • Approximately 189,000 dispatches completed.
    • Consumer satisfaction score of 4.6 out of 5 stars.

    Earnings Conference Call

    Urgently will host a conference call to discuss the first quarter 2025 financial results on May 13, 2025 at 5:00 p.m. Eastern Time. The conference call can be accessed live over the phone by dialing 1-877-317-6789 (USA) or 1-412-317-6789 (International). The replay will be available via webcast through Urgently’s Investor Relations website at https://investors.geturgently.com.

    About Urgently

    Urgently is focused on helping everyone move safely, without disruption, by safeguarding drivers, promptly assisting their journey, and employing technology to proactively avert possible issues. The company’s digitally native software platform combines location-based services, real-time data, AI and machine-to-machine communication to power roadside assistance solutions for leading brands across automotive, insurance, telematics and other transportation-focused verticals. Urgently fulfills the demand for connected roadside assistance services, enabling its partners to deliver exceptional user experiences that drive high customer satisfaction and loyalty, by delivering innovative, transparent and exceptional connected mobility assistance experiences on a global scale. For more information, visit www.geturgently.com.

    For media and investment inquiries, please contact:

    Press: media@geturgently.com

    Investor Relations: investorrelations@geturgently.com

    Non-GAAP Financial Measures

    In addition to our financial information presented in accordance with GAAP, we believe Non-GAAP Operating Expenses and Non-GAAP Operating Loss are useful to investors in evaluating our operating performance. We use the non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that the non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, may be helpful to investors because they provide consistency and comparability with past financial performance and meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. The non-GAAP financial measures are presented for supplemental informational purposes only, have limitations as analytical tools, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP and may be different from similarly-titled non-GAAP financial measures used by other companies. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, which could reduce the usefulness of the non-GAAP financial measures presented herein as a tool for comparison.

    A reconciliation is provided below for each of the non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to our most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. We define Non-GAAP Operating Expenses as operating expenses, excluding depreciation and amortization expense, stock-based compensation expense, and non-recurring charges (or income) such as transaction and restructuring costs. We define Non-GAAP Operating Loss as operating loss, excluding depreciation and amortization expense, stock-based compensation expense, and non-recurring charges (or income) such as transaction and restructuring costs.

    For a discussion of Non-GAAP Operating Expenses and Non-GAAP Operating Loss, please see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Urgently’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which will be filed with the Securities and Exchange Commission (the “SEC”) by May 15, 2025.

    Forward Looking Statements

    This press release contains or may contain “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Urgently’s future financial or operating performance. Such statements are based upon current plans, estimates and expectations of management of Urgently in light of historical results and trends, current conditions and potential future developments, and are subject to various risks and uncertainties that could cause actual results to differ materially from such statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Forward-looking terms such as “may,” “will,” “could,” “should,” “would,” “plan,” “potential,” “intend,” “anticipate,” “project,” “predict,” “target,” “believe,” “continue,” “estimate” or “expect” or the negative of these words or other words, terms and phrases of similar nature are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than historical facts, including, without limitation, statements regarding Urgently’s expected revenue growth, cash flow and non-GAAP operating loss break-even, and any assumptions underlying any of the foregoing, are forward-looking statements.

    There are a significant number of factors that could cause actual results to differ materially from statements made in this press release and our earnings call, including but not limited to: risks associated with our ability to raise funds through future financings and the sufficiency of our cash and cash equivalents to meet our liquidity needs; our history of losses; our limited operating history; our ability to service our debt, comply with our debt agreements and refinance our obligations under such agreements, including by successfully deploying the capital from the new credit facility and repaying our new and existing debt facilities; our ability to retain customers and expand existing customers’ use of our platform; our ability to attract new customers; our ability to expand into new solutions, technologies and geographic regions; our ability to adequately forecast consumer demand and optimize our network of service providers; our ability to compete in the markets in which we participate; our ability to comply with laws and regulations applicable to our business; our ability to continue as a going concern; our ability to develop and maintain an effective system of internal controls and procedures and accurately report our financial results in a timely manner; our ability to maintain the listing of our common stock on the Nasdaq Stock Market LLC; and expectations regarding the impact of weather events, natural disasters or health epidemics, including the war between Hamas and Israel, on our business. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the SEC, including in our annual report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on March 14, 2025, as amended by our annual report on Form 10-K/A, which was filed with the SEC on April 17, 2025, our quarterly reports on Form 10-Q, and other filings and reports that we may file from time to time with the SEC. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.

    Consolidated Balance Sheets
    (in thousands)
    (unaudited)

        March 31, 2025     December 31, 2024  
    Assets            
    Current assets:            
    Cash and cash equivalents   $ 6,410     $ 14,179  
    Accounts receivable, net     23,506       22,890  
    Prepaid expenses and other current assets     2,900       3,687  
    Total current assets     32,816       40,756  
    Right-of-use assets     681       810  
    Property, equipment and software, net     1,529       1,577  
    Capitalized software costs, net     5,291       4,637  
    Intangible assets, net     4,006       4,396  
    Other non-current assets     2,109       1,895  
    Total assets   $ 46,432     $ 54,071  
                 
    Liabilities and Stockholders’ Deficit            
    Current liabilities:            
    Accounts payable   $ 3,160     $ 2,900  
    Accrued expenses and other current liabilities     15,783       19,991  
    Current lease liabilities     371       446  
    Current portion of long-term debt, net     13,198       14,257  
    Total current liabilities     32,512       37,594  
    Long-term lease liabilities     406       466  
    Long-term debt, net     40,381       39,883  
    Derivative liability     471       —  
    Other long-term liabilities     8,740       7,798  
    Total liabilities     82,510       85,741  
    Stockholders’ deficit:            
    Common stock     1       1  
    Additional paid-in capital     168,201       167,125  
    Accumulated deficit     (204,280 )     (198,796 )
    Total stockholders’ deficit     (36,078 )     (31,670 )
    Total liabilities and stockholders’ deficit   $ 46,432     $ 54,071  

    Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)

        Three Months Ended March 31,  
        2025     2024  
    Revenue   $ 31,272     $ 40,092  
    Cost of revenue     23,283       30,741  
    Gross profit     7,989       9,351  
    Operating expenses:            
    Research and development     1,968       4,243  
    Sales and marketing     703       2,019  
    Operations and support     2,411       4,321  
    General and administrative     4,368       6,014  
    Depreciation and amortization     986       1,102  
    Total operating expenses     10,436       17,699  
    Operating loss     (2,447 )     (8,348 )
    Other income (expense), net:            
    Interest expense, net     (3,277 )     (3,789 )
    Change in fair value of derivative liability     37       —  
    Change in fair value of accrued purchase consideration     77       821  
    Loss on debt extinguishment     —       (1,405 )
    Income from equity method investment     150       —  
    Other expense, net     (5 )     (255 )
    Total other expense, net     (3,018 )     (4,628 )
    Loss before income taxes     (5,465 )     (12,976 )
    Provision for income taxes     19       39  
    Net loss   $ (5,484 )   $ (13,015 )
                 
    Loss per share, basic and diluted   $ (4.69 )   $ (11.69 )

    Non-GAAP Financial Measures
    (in thousands)
    (unaudited)

    Reconciliation of Operating Expenses to Non-GAAP Operating Expenses

        Three Months Ended March 31,  
        2025     2024  
    Operating expenses   $ 10,436     $ 17,699  
    Less: Depreciation and amortization expense     (986 )     (1,102 )
    Less: Stock-based compensation expense     (538 )     (718 )
    Less: Non-recurring transaction costs     (375 )     (726 )
    Less: Restructuring costs     (174 )     (699 )
    Non-GAAP operating expenses   $ 8,363     $ 14,454  
     

    Reconciliation of Operating Loss to Non-GAAP Operating Loss

        Three Months Ended March 31,  
        2025     2024  
    Operating loss   $ (2,447 )   $ (8,348 )
    Add: Depreciation and amortization expense     986       1,102  
    Add: Stock-based compensation expense     538       718  
    Add: Non-recurring transaction costs     375       726  
    Add: Restructuring costs     174       699  
    Non-GAAP operating loss   $ (374 )   $ (5,103 )

    The MIL Network –

  • MIL-OSI: CalPrivate Bank Announces New Chief Credit Officer

    Source: GlobeNewswire (MIL-OSI)

    LA JOLLA, Calif., May 13, 2025 (GLOBE NEWSWIRE) — Private Bancorp of America, Inc. (OTCQX:PBAM) (“Company”), the parent company of CalPrivate Bank (“Bank”) announced the appointment of Andrew K Meitzen as the Bank’s new Executive Vice President and Chief Credit Officer. Mr. Meitzen brings impressive skills and diverse experience working in the banking industry at both community banks and the Office of the Comptroller of the Currency (OCC) with an emphasis in lending, credit, and enterprise risk management.

    Rick Sowers, President and Chief Executive Officer of the Company and Bank stated, “We are excited to have Andrew join our team bringing his expertise in disciplined credit and deal structuring, along with the technical acumen to navigate the ever-evolving credit landscape of today’s economy.”

    “I am honored to be joining the CalPrivate Team and excited to contribute to the ongoing success of the Bank and its Clients,” said Mr. Meitzen. “The core values of Relationships, Solutions and Trust resonate with me and are the perfect foundation for continued growth.”

    About Private Bancorp of America, Inc.
    Private Bancorp of America, Inc. (OTCQX: PBAM) PBAM is the holding company for CalPrivate Bank, which operates offices in Coronado, San Diego, La Jolla, Newport Beach, El Segundo, Beverly Hills, and soon Montecito, as well as through efficient digital banking services. CalPrivate Bank is driven by its core values of building client Relationships based on superior client Solutions, unparalleled Service, and mutual Trust. The Bank caters to high-net-worth individuals, professionals, closely held businesses, and real estate entrepreneurs, delivering a Distinctly Different™ personalized banking experience while leveraging cutting-edge technology to enhance our clients’ evolving needs. CalPrivate Bank is in the top tier of customer service survey ratings in the nation, scoring almost three times higher than the median domestic bank. The Bank offers comprehensive deposit and treasury services, rapid and creative loan options including various portfolio and government-guaranteed lending programs, cross border banking, and innovative, unique technologies that drive enhanced client performance. CalPrivate Bank has been recognized by Bank Director’s RankingBanking® as the 10th best bank in the country and the #1 bank in its asset class for both return on assets (ROA) and return on equity (ROE). CalPrivate Bank was also ranked in the top 5% of banks in the U.S. with assets between $2B and $10B by American Banker. Additionally, CalPrivate Bank is a Bauer Financial 5-star rated bank, an SBA Preferred Lender, and has been honored as Community Bank SBA 504 Lender of the Year by the NADCO Community Impact Awards, exemplifying excellence in the banking industry. These prestigious rankings highlight the Bank’s commitment to delivering exceptional banking services and setting new industry standards.

    Learn more at www.calprivate.bank.

    Investor Relations Contact
    Rick Sowers
    President and CEO
    Private Bancorp of America, Inc.
    (424) 303-4894

    Safe Harbor Paragraph
    This press release contains expressions of expectations, both implied and explicit, that are “forward looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We caution you that a number of important factors could cause actual results to differ materially from those in the forward-looking statements, especially given the current turmoil in the banking and financial markets. These factors include the effects of depositors withdrawing funds unexpectedly, counterparties being unable to provide liquidity sources that we believe should be available, loan losses, economic conditions and competition in the geographic and business areas in which Private Bancorp of America, Inc. operates, including competition in lending and deposit acquisition, the unpredictability of fee income from participation in SBA loan programs, the effects of bank failures, liquidations and mergers in our markets and nationally, our ability to successfully integrate and develop business through the addition of new personnel, whether our efforts to expand loan, product and service offerings will prove profitable, system failures and data security, whether we can effectively secure and implement new technology solutions, inflation, fluctuations in interest rates, legislation and governmental regulation. You should not place undue reliance on forward-looking statements, and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise. These factors could cause actual results to differ materially from what we anticipate or project. You should not place undue reliance on any such forward-looking statement, which speaks only as of the date on which it was made. Although we, in good faith, believe the assumptions and bases supporting our forward-looking statements to be reasonable there can be no assurance that those assumptions and bases will prove accurate.

    The MIL Network –

  • MIL-OSI: Waldencast Reports Q1 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Q1 Net Revenue of $65.4 million, (4.1)% decline from Q1 2024
    76.4% Adjusted Gross Margin, an improvement of 10 basis points
    $4.4 million of Adjusted EBITDA

    LONDON, May 13, 2025 (GLOBE NEWSWIRE) — Waldencast plc (NASDAQ: WALD) (“Waldencast” or the “Company”), a global multi-brand beauty and wellness platform, today reported operating results for the three months ended March 31, 2025 (“Q1 2025”) on Form 6-K to the U.S. Securities and Exchange Commission (the “SEC”), which are also available on our investor relations site at http://ir.waldencast.com/.

    Michel Brousset, Waldencast Founder and CEO, said: “As anticipated, in Q1 2025, Milk Makeup results were impacted by the cycling of the very successful launch of Jellies in Q1 2024, as well as the significant inventory reduction at the retail level versus a year ago.”

    “Despite a broader slowdown in the prestige beauty category in the U.S., Milk Makeup ended the quarter on a very strong note, fueled by the highly successful launch of Hydro Grip Gel Tint, which sold out shortly after release. We are also very pleased with the brand’s entry into Ulta Beauty, with retail sales beginning in late February. Both initiatives exceeded expectations and contributed to the brand’s high single-digit growth in U.S. retail sales. This solid domestic performance was offset by the contraction of international sales, which faced a difficult comparison against last year’s Q1 distribution expansion, as well as inventory reduction by retail partners. In Q1, Milk Makeup partnered with Nike Running in North America for the Nike After Dark Tour in Los Angeles, bringing sport and self-expression together to keep expanding reach and deepen community engagement.”

    “The Obagi Medical brand delivered a solid performance in the first quarter, although out of stocks in some key SKUs dampened volume growth. We are accelerating ongoing efforts to transform our supply chain—consolidating third party logistics partners and enhancing operational capabilities—to improve fulfillment, increase reliability, and support long-term, scalable growth.”

    “Despite a difficult quarter, we continue to increase our investments in marketing, up in the high teens, to fuel brand equity and set a strong foundation for delivering our long-term ambitions, starting with our 2025 objectives.”

    “We are confident in our ability to deliver a stronger performance throughout the remainder of the year, beginning in Q2. Key drivers include a robust pipeline of breakthrough innovation at both Milk Makeup and Obagi Medical, combined with restocking of Hydro Grip Gel Tint which is expected to fuel continued consumer demand. We also anticipate a meaningful uplift in Milk Makeup volumes from the successful Ulta Beauty launch. Additionally, ongoing improvements from Obagi Medical’s supply chain restructuring are expected to enhance fulfillment rates and operational resilience,” concluded Mr. Brousset.

    Q1 2025 Results Overview

    Please refer to the definitions and reconciliations set out further in this release with respect to certain adjusted non-GAAP measures discussed below which are included to provide an easier understanding of the underlying performance of the business, but should not be seen as a substitute for the U.S. GAAP numbers presented in this release.

    For the three months ended March 31, 2025 compared to the three months ended March 31, 2024:

    Net Revenue decreased 4.1% year-over-year to $65.4 million.

    Gross Profit was $47.2 million, while Adjusted Gross Profit totaled $50.0 million, or 76.4% of net revenue, an expansion of 10 basis points compared to the prior year.

    Net Loss for Q1 2025 was $20.7 million primarily driven by Depreciation and Financial charges. Non-recurring legal and advisory expenses totaled $1.5 million, continuing their decline from prior quarter.

    Adjusted EBITDA was $4.4 million, or 6.7% of net revenue. The year-over-year decline reflects sustained investments in sales and marketing, and G&A deleverage stemming from lower revenue.

    Liquidity: As previously announced, during Q1, Waldencast secured a new $205 million five-year credit facility, comprising a $175 million term loan and a $30 million revolving credit facility (“RCF”). This refinancing replaces the previous bank loans, enhances financial flexibility, and extends the Company’s debt maturity profile to March 2030, supporting long-term strategic priorities.

    As of March 31, 2025, the Company held $10.8 million in cash and cash equivalents, $172.1 million in net debt, and approximately $22.5 million in available capacity under the RCF. The increase in net debt during the quarter is primarily due to refinancing-related costs. Cash consumption reflects lower Adjusted EBITDA and an inventory build-up to support expected sales growth in future quarters.

    Outstanding Shares: As of April 30, 2025, we had 123,011,239 ordinary shares outstanding, consisting of 112,644,711 Class A shares and 10,366,528 Class B shares. As of December 31, 2024, we had 122,692,968 ordinary shares outstanding, consisting of 112,026,440 Class A shares and 10,666,528 Class B shares.

                           
    (In $ millions, except for percentages)   Q1 2025   % Sales   % Growth     Q1 2024   % Sales
    Waldencast                      
    Net Revenue   65.4   100.0%   (4.1)%     68.3   100.0%
    Adjusted Gross Profit   50.0   76.4%   (4.0)%     52.1   76.3%
    Adjusted EBITDA   4.4   6.7%   (61.5)%     11.4   16.6%
                           
    Obagi Medical                      
    Net Revenue   36.2   100.0%   7.1%     33.8   100.0%
    Adjusted Gross Profit   29.7   82.0%   7.9%     27.5   81.4%
    Adjusted EBITDA   5.9   16.3%   (12.5)%     6.7   20.0%
                           
    Milk Makeup                      
    Net Revenue   29.3   100.0%   (15.1)%     34.5   100.0%
    Adjusted Gross Profit   20.4   69.5%   (17.3)%     24.6   71.3%
    Adjusted EBITDA   4.4   14.9%   (56.4)%     10.0   29.1%
                           

    First Quarter 2025 Brand Highlights:

    Obagi Medical:

    • Net Revenue reached $36.2 million, up 7.1% from $33.8 million in Q1 2024.
    • Growth was fueled by continued strength in the direct-to-consumer channels. The benefits from transitioning to a first-party model with our primary e-commerce distributor have now fully annualized.
    • The Physician Dispense channel declined in the quarter, largely due to ongoing supply chain restructuring and temporary inventory constraints affecting key products, which limited sales during the quarter.
    • Adjusted Gross Margin of 82.0% increased 60 basis points from Q1 2024, supported by a favorable channel mix and lower promotional activity.
    • Adjusted EBITDA was $5.9 million, down 12.5% compared to Q1 2024. The Adjusted EBITDA margin declined by 370 basis points year-over-year to 16.3%, primarily due to higher marketing investments and increased supply chain costs aimed at supporting future growth.

    Milk Makeup:

    • As anticipated, Milk Makeup’s Net Revenue declined in the quarter. Net Revenue was $29.3 million, down 15.1% versus $34.5 million in Q1 2024. This result was a combination of cycling a very successful launch of Jellies in Q1 2024 and a significant reduction of retail inventory levels quarter-over-quarter.
    • Sales momentum accelerated in March, driven by the successful strategic launch of Hydro Grip Gel Tint, which significantly exceeded expectations and led to out of stocks.
    • The brand also expanded into Ulta Beauty during the quarter, with strong initial sell-out contributing to high single-digit growth in U.S. retail sales.
    • Adjusted Gross Margin declined by 180 basis points versus Q1 2024, mostly impacted by set-up costs for new retailers.
    • Adjusted EBITDA was $4.4 million, with an Adjusted EBITDA margin of 14.9%. The margin contraction was primarily driven by increased marketing investments and G&A deleverage resulting from lower sales.

    Fiscal 2025 Outlook:

    While mindful of the broader macroeconomic environment and assuming no further material changes to current tariffs, including the latest updates on China, we remain confident that our strategic initiatives position us well to deliver on our full-year guidance of mid-teens net revenue growth and an adjusted EBITDA margin in the mid-to-high teens.

    Given our high gross margin business model and limited reliance on Asian sourcing, we expect a limited increase in cost of goods with any necessary price adjustments (likely in the low-to-mid single digits) to offset the announced tariff scenario.

    Conference Call and Webcast Information

    Waldencast will host a conference call to discuss its first quarter results on Wednesday, May 14, 2025, at 8:30 AM EDT for the period ended March 31, 2025. Those interested in participating in the conference call are invited to dial (877) 704-4453. International callers may dial (201) 389-0920. A live webcast of the conference call will include a slide presentation and will be available online at https://ir.waldencast.com/. A replay of the webcast will remain available on the website until our next conference call. The information accessible on, or through, our website is not incorporated by reference into this release.

    Non-GAAP Financial Measures

    In addition to the financial measures presented in this release in accordance with U.S. GAAP, Waldencast separately reports financial results on the basis of the measures set out and defined below which are non-GAAP financial measures. Waldencast believes the non-GAAP measures used in this release provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. Waldencast believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures also provide perspective on how Waldencast’s management evaluates and monitors the performance of the business.

    There are limitations to non-GAAP financial measures because they exclude charges and credits that are required to be included in GAAP financial presentation. The items excluded from GAAP financial measures such as net income/loss to arrive at non-GAAP financial measures are significant components for understanding and assessing our financial performance. Non-GAAP financial measures should be considered together with, and not alternatives to, financial measures prepared in accordance with GAAP.

    Please refer to definitions set out in the release and the tables included in this release for a reconciliation of these metrics to the most directly comparable GAAP financial measures.

    Adjusted Gross Profit is defined as GAAP gross profit excluding the impact of amortization of the supply agreement and formulation intangible assets, and the amortization of the fair value of the related party liability from the Obagi Medical China Business, which was not acquired by Waldencast at the time of the business combination with Obagi Medical and Milk Makeup (the “Business Combination”). The Adjusted Gross Profit reconciliation by Segment for each period is included in the Appendix.

    Adjusted Gross Margin is defined as Adjusted Gross Profit divided by GAAP Net Revenue.

    Adjusted EBITDA is defined as GAAP net income (loss) before interest income or expense, income tax (benefit) expense, depreciation and amortization, and further adjusted for the items as described in the reconciliation below. We believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business. Adjusted EBITDA excludes certain expenses that are required to be presented in accordance with GAAP because management believes they are non-core to our regular business. These include non-cash expenses, such as depreciation and amortization, stock-based compensation, the amortization and release of fair value of the related party liability to the Obagi Medical China Business, change in fair value of assets and liabilities, and foreign currency translation loss (gain). In addition, adjustments include expenses that are not related to our underlying business performance including (1) legal, advisory and consultant fees related to the financial restatement of previously issued financial statements and associated regulatory investigation, and (2) other non-recurring costs, primarily legal settlement costs and restructuring costs. The Adjusted EBITDA by Segment for each period is included in the Appendix.

    Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue. The Adjusted EBITDA Margin reconciliation by Segment for each period is included in the Appendix.

             
    (In thousands, except for percentages)   Three Months
    Ended March 31,
    2025    		   Three Months
    Ended March 31,
    2024
    Net Loss   $ (20,735 )   $ (3,894 )
    Adjusted For:        
    Depreciation and amortization     14,998       14,884  
    Interest expense, net     6,384       4,293  
    Income tax expense (benefit)     1,398       (685 )
    Stock-based compensation expense     2,368       1,059  
    Legal and advisory non-recurring costs(1)     1,474       7,924  
    Change in fair value of assets and liabilities     (1,167 )     (12,160 )
    Amortization and release of related party liability(2)     —       (316 )
    Other costs(3)     (353 )     246  
    Adjusted EBITDA   $ 4,366     $ 11,351  
    Net Revenue   $ 65,442     $ 68,272  
    Net Loss % of Net Revenue   (31.7 )%   (5.7 )%
    Adjusted EBITDA Margin     6.7 %     16.6 %
    (1)   Includes mainly legal, advisory and consultant fees related to the financial restatement of the 2020-2022 periods and associated regulatory investigation, and the Business Combination.
    (2)   Relates to the fair value of the related party liability for the unfavorable discount to the Obagi Medical China Business as part of the Business Combination.
    (3)   Other costs include legal settlements, foreign currency translation losses and (gains), and restructuring costs.
         

    Net Debt Position is defined as the principal outstanding for the 2022 term loan and 2022 revolving credit facility minus the cash and cash equivalents as of March 31, 2025.

         
    (In thousands)   Reconciliation of
    Net Carrying
    Amount of debt to
    Net Debt
    Current portion of long-term debt   $ 7,740  
    Long-term debt     164,694  
    Net carrying amount of debt     172,434  
    Adjustments:    
    Add: Unamortized debt issuance costs     10,401  
    Less: Cash & cash equivalents     (10,782 )
    Net Debt   $ 172,053  
             

    About Waldencast plc

    Founded by Michel Brousset and Hind Sebti, Waldencast’s ambition is to build a global best-in-class beauty and wellness operating platform by developing, acquiring, accelerating, and scaling conscious, high-growth purpose-driven brands. Waldencast’s vision is fundamentally underpinned by its brand-led business model that ensures proximity to its customers, business agility, and market responsiveness, while maintaining each brand’s distinct DNA. The first step in realizing its vision was the Business Combination. As part of the Waldencast platform, its brands will benefit from the operational scale of a multi-brand platform; the expertise in managing global beauty brands at scale; a balanced portfolio to mitigate category fluctuations; asset light efficiency; and the market responsiveness and speed of entrepreneurial indie brands. For more information please visit: https://ir.waldencast.com.

    Obagi Medical is an industry-leading, advanced skin care line rooted in research and skin biology, refined with a legacy of over 35 years’ experience. First known as leaders in the treatment of hyperpigmentation with the Obagi Nu-Derm® System, Obagi Medical products are designed to address the appearance of premature aging, photodamage, skin discoloration, acne, and sun damage. More information about Obagi Medical is available on the brand’s website at www.obagi.com.

    Founded in 2016, Milk Makeup quickly became a cult-favorite among the beauty community for its values of self-expression and inclusion, captured by its signature “Live Your Look”, its innovative formulas, and clean ingredients. The brand creates vegan, cruelty-free, clean formulas and has its Milk Makeup HQ in Downtown NYC. Currently, Milk Makeup offers over 250 products through its U.S. website www.MilkMakeup.com, and retail partners including Sephora globally, Ulta Beauty in the U.S., Lyko in Scandinavia, Space NK and Boots in the United Kingdom and many more.

    Cautionary Statement Regarding Forward-Looking Statements

    All statements in this release that are not historical, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about: Waldencast’s outlook and guidance for 2025; our ability to deliver financial results in line with expectations; expectations regarding sales, earnings or other future financial performance and liquidity or other performance measures; our long-term strategy and future operations or operating results; expectations with respect to our industry and the markets in which it operates; future product introductions; developments relating to the ongoing investigation and legal proceedings; and any assumptions underlying any of the foregoing. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” and “will” and variations of such words and similar expressions are intended to identify such forward-looking statements.

    These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of our control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements, including, among others: (i) the impact of the material weaknesses in our internal control over financial reporting, including associated investigations, our efforts to remediate such material weakness and the timing of remediation and resolution of associated investigations; (ii) our ability to recognize the anticipated benefits from any acquired business, including the Business Combination; (iii) our ability to successfully implement our management’s plans and strategies; (iv) the overall economic and market conditions, sales forecasts and other information about our possible or assumed future results of operations or our performance; (v) the general impact of geopolitical events, including the impact of current wars, conflicts or other hostilities; (vi) the potential for delisting, legal proceedings or existing or new government investigation or enforcement actions, including those relating to the restatement or the subject of the Audit Committee of our Board of Directors’ review further described in our annual report filed on Form 20-F for the year ended December 31, 2022; (vii) our ability to manage expenses, our liquidity and our investments in working capital; (viii) any failure to obtain governmental and regulatory approvals related to our business and products; (ix) the impact of any international trade or foreign exchange restrictions, increased tariffs, foreign currency exchange fluctuations; (x) our ability to raise additional capital or complete desired acquisitions; (xi) our ability to comply with financial covenants imposed by the new 2025 credit agreement we entered into referenced in the section entitled “Liquidity” above and the impact of debt service obligations and restricted debt covenants; (xii) volatility of Waldencast’s securities due to a variety of factors, including Waldencast’s inability to implement its business plans or meet or exceed its financial projections and changes; (xiii) the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; (xiv) the ability of Waldencast to implement its strategic initiatives and continue to innovate Obagi Medical’s and Milk Makeup’s existing products and anticipate and respond to market trends and changes in consumer preferences; (xv) any shifts in the preferences of consumers as to where and how they shop; (xvi) the impact of any unfavorable publicity on our business or products; (xvii) changes in future exchange or interest rates or credit ratings; (xviii) changes in, and uncertainty with respect to, laws, regulations, and policies, including as a result of the change in the U.S. administration; and (xix) social, political and economic conditions. These and other risks, assumptions and uncertainties are more fully described in the Risk Factors section of our 2024 20-F (File No. 01-40207), filed with the SEC on March 20, 2025, and in our other documents that we file or furnish with the SEC, which you are encouraged to read.

    Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to rely on these forward-looking statements, which speak only as of the date they are made. Waldencast expressly disclaims any current intention, and assumes no duty, to update publicly any forward-looking statement after the distribution of this release, whether as a result of new information, future events, changes in assumptions or otherwise.

    Contacts:

    Investors
    ICR
    Allison Malkin
    waldencastir@icrinc.com

    Media
    ICR
    Brittney Fraser/Alecia Pulman
    waldencast@icrinc.com

    Appendix

    Adjusted Gross Profit

         
        Group
    (In thousands, except for percentages)   Three months
    ended March 31,
    2025    		   Three months
    ended March 31,
    2024
    Net Revenue   $ 65,442     $ 68,271  
    Gross Profit     47,205       49,580  
    Gross Profit Margin     72.1 %     72.6 %
    Gross Margin Adjustments:        
    Amortization of the fair value of the related party liability(1)     —       (316 )
    Amortization impact of intangible assets(2)     2,801       2,801  
    Adjusted Gross Profit   $ 50,006     $ 52,065  
    Adjusted Gross Margin %     76.4 %     76.3 %
    (1)   Relates to the fair value of the related party liability for the unfavorable discount to the Obagi Medical China Business as part of the Business Combination.
    (2)   The supply agreement and formulations intangible assets are amortized to cost of goods sold.
         
        Obagi Medical   Milk Makeup
    (In thousands, except for percentages)   Three months
    ended March 31,
    2025    		   Three months
    ended March 31,
    2024    		   Three months
    ended March 31,
    2025    		   Three months
    ended March 31,
    2024
    Net Revenue   $ 36,166     $ 33,768     $ 29,276     $ 34,503  
    Gross Profit     26,851       24,989       20,354       24,597  
    Gross Profit Margin     74.2 %     74.0 %     69.5 %     71.3 %
    Gross Margin Adjustments:                
    Amortization of the fair value of the related party liability     —       (316 )     —       —  
    Amortization impact of intangible assets     2,801       2,801       —       —  
    Adjusted Gross Profit   $ 29,652     $ 27,474     $ 20,354     $ 24,597  
    Adjusted Gross Margin %     82.0 %     81.4 %     69.5 %     71.3 %
                                     

    Adjusted EBITDA Margin by Segment

        Obagi Medical   Milk Makeup
    (In thousands, except for percentages)   Three months
    ended March 31,
    2025    		   Three months
    ended March 31,
    2024    		   Three months
    ended March 31,
    2025    		   Three months
    ended March 31,
    2024
    Net Loss   $ (9,056 )   $ (5,761 )   $ (1,004 )   $ 5,340  
    Adjusted For:                
    Depreciation and amortization     10,420       10,395       4,578       4,489  
    Interest expense (income), net     3,385       3,187       (3 )     (55 )
    Income tax expense (benefit)     1,369       (687 )     25       —  
    Stock-based compensation expense     (526 )     (781 )     568       357  
    Legal and advisory non-recurring costs     189       467       —       —  
    Change in fair value of assets and liabilities     14       —       —       —  
    Amortization and release of related party liability     —       (316 )     —       —  
    Other costs     104       239       206       (105 )
    Adjusted EBITDA   $ 5,900     $ 6,743     $ 4,370     $ 10,026  
    Net Revenue   $ 36,166     $ 33,768     $ 29,276     $ 34,503  
    Net Loss % of Net Revenue   (25.0 )%   (17.1 )%   (3.4 )%     15.5 %
    Adjusted EBITDA Margin     16.3 %     20.0 %     14.9 %     29.1 %
        Central costs
    (In thousands, except for percentages)   Three months
    ended March 31,
    2025    		   Three months
    ended March 31,
    2024
    Net Loss   $ (10,676 )   $ (3,472 )
    Adjusted For:        
    Interest expense, net     3,002       1,160  
    Income tax expense     3       2  
    Stock-based compensation expense     2,326       1,482  
    Legal and advisory non-recurring costs     1,285       7,457  
    Change in fair value of assets and liabilities     (1,181 )     (12,160 )
    Other costs     (664 )     112  
    Adjusted EBITDA   $ (5,904 )   $ (5,419 )
    Net Revenue   $ —     $ —  
    Net Loss % of Net Revenue   N/A     N/A  
    Adjusted EBITDA Margin   N/A     N/A  
                 

    The MIL Network –

  • MIL-OSI: Evolution Petroleum Reports Fiscal Third Quarter 2025 Results and Declares Quarterly Cash Dividend for Fiscal Fourth Quarter

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Texas, May 13, 2025 (GLOBE NEWSWIRE) — Evolution Petroleum Corporation (NYSE American: EPM) (“Evolution” or the “Company”) today announced its financial and operating results for its fiscal third quarter ended March 31, 2025. Evolution also declared its 47th consecutive quarterly cash dividend of $0.12 per common share for the fiscal 2025 fourth quarter.

    Financial & Operational Highlights

    ($ in thousands) Q3 2025   Q2 2025   Q3 2024     % Change vs Q3/Q2     % Change vs Q3/Q3   2025 YTD   2024 YTD  
    % Change vs YTD’24
    Average BOEPD 6,667     6,935       7,209       (4 )%     (8 )%   7,033       6,651       6 %
    Revenues $ 22,561     $ 20,275     $ 23,025       11 %     (2 )%   $ 64,732     $ 64,650       — %
    Net Income (Loss) (1) $ (2,179 )   $ (1,825 )   $ 289       NM       NM     $ (1,939 )   $ 2,845       NM  
    Adjusted Net Income (Loss) (1)(2) $ 806     $ (841 )   $ 978       NM       (18 )%   $ 701     $ 3,597       (81 )%
    Adjusted EBITDA(3) $ 7,421     $ 5,688     $ 8,476       30 %     (12 )%   $ 21,234     $ 22,011       (4 )%

    _____________________

    (1) “NM” means “Not Meaningful.”
    (2) Adjusted Net Income is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.
    (3) Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.
       
    • Fiscal Q3 production was 6,667 average barrels of oil equivalent per day (“BOEPD”), with oil accounting for 52% of revenue, natural gas accounting for 35%, and natural gas liquids (“NGLs”) accounting for 13% of revenue during the quarter.
    • Amid market volatility in fiscal Q3, the Company benefited from its diversified energy portfolio, as reflected by a 30% increase in Adjusted EBITDA(3) versus fiscal Q2.
    • Fiscal Q3 revenue rose 11% versus Fiscal Q2, largely driven by the strength of natural gas revenue, which increased 34% during the quarter.
    • $4.1 million returned to shareholders in the form of cash dividends during fiscal Q3, and $4.0 million of principal repaid on its Senior Secured Credit Facility.
    • Activities subsequent to quarter end:
      • Four gross new wells were brought online at the Chaveroo Field under budget, with early production rates exceeding expectations.
      • Closed the highly accretive $9.0 million acquisition of non-operated oil and natural gas assets located in New Mexico, Texas, and Louisiana (the “TexMex” acquisition).
      • As of today, production adds from the four new gross Chaveroo wells and TexMex are contributing more than 850 net BOEPD to production.

    Kelly Loyd, President and Chief Executive Officer, commented: “We are maintaining our quarterly dividend at $0.12 per share for the twelfth consecutive quarter, underscoring our commitment to sustainable shareholder returns as well as our confidence in the strength of our asset base, even in a volatile commodity price environment.

    “Our third quarter results reflect the benefits of our balanced, long-life portfolio of producing assets that are capable of both flourishing in attractive price environments and withstanding cyclical lows. Despite weather and maintenance-related downtime, which affected production, we were able to more than meet all of our capital obligations during the quarter, including ~$8.5 million in dividend and capex payments, as well as repayment of $4.0 million of principal on our Senior Secured Credit Facility.

    “Subsequent to quarter end, we closed the TexMex acquisition and turned in-line our latest four Chaveroo wells. TexMex and the four new gross Chaveroo wells are currently contributing more than 850 net BOEPD to production. We also expect to benefit from recent and ongoing drilling activities in our SCOOP/STACK area. When combined with the strength in natural gas prices, these production additions are expected to meaningfully benefit our next fiscal quarter.

    Mr. Loyd concluded, “In coordination with our Chaveroo partner, we have agreed to delay the start of our third development block until later into our fiscal year 2026. Our current focus is on acquiring oil-weighted, low-decline producing properties at discounted prices, or natural gas properties which can be hedged favorably for years to come, while strategically deferring development of our high-value, oil-weighted locations, preserving value for our shareholders until oil market conditions improve. Maintaining our dividend is a top priority, and we believe our resilient portfolio and strong financial position will enable us to continue with our dividend program well into the future.”

    Fiscal Third Quarter 2025 Financial Results

    Total revenues decreased 2% to $22.6 million compared to $23.0 million in the year-ago quarter. The decline was driven primarily by an 8% decrease in production volumes, partially offset by a 7% increase in average realized commodity prices. The decrease in production volumes was primarily due to planned maintenance at the central facility and NGL plant downtime at Delhi Field, January winter weather impacts at Barnett Shale, as well as natural production declines, partially offset by additional production from the Company’s SCOOP/STACK properties acquired in February 2024.

    Lease operating costs (“LOE”) increased to $13.4 million compared to $12.6 million in the year-ago quarter. The increase was driven by CO2 purchases at Delhi Field, which resumed in October 2024 after being suspended in February 2024, coupled with a full quarter of the Company’s SCOOP/STACK properties acquired in February 2024, increasing lease operating costs by $0.5 million compared to the year-ago quarter. On a per unit basis, total LOE increased 16% to $22.32 per BOE compared to $19.24 per BOE in the year-ago quarter.

    Depletion, depreciation, and accretion expense was $5.0 million compared to $5.9 million in the year-ago period. On a per BOE basis, the Company’s current quarter depletion rate decreased to $7.68 per BOE compared to $8.43 per BOE in the year-ago period due to a decrease in its depletable base.

    General and administrative (“G&A”) expenses, excluding stock-based compensation, were $1.9 million for both the current and year-ago periods. On a per BOE basis, G&A expenses increased to $3.22 compared to $2.85 in the year-ago period. The increase per unit is the result of decreased production in the current period.

    The Company reported a net loss of $2.2 million or $(0.07) per share, compared to net income of $0.3 million or $0.01 per share in the year-ago period. Excluding the impact of unrealized losses, adjusted net income was $0.8 million or $0.02 per diluted share, compared to adjusted net income of $1.0 million or $0.03 per diluted share in the prior quarter.

    Adjusted EBITDA was $7.4 million compared to $8.5 million in the year-ago period. The decrease was primarily due to decreased revenue as a result of lower production and higher total operating costs due to CO2 purchases at Delhi Field, which resumed in October 2024 after being suspended in February 2024.

    Production & Pricing

    Average price per unit: Q3 2025   Q3 2024   % Change vs Q3/Q3
    Crude oil (BBL) $ 68.42     $ 73.06       (6) %
    Natural gas (MCF)   3.87       2.77       40 %
    Natural Gas Liquids (BBL)   32.28       25.26       28 %
    Equivalent (BOE)   37.60       35.10       7 %
                           

    Total production for the third quarter of fiscal 2025 decreased 7.5% to 6,667 net BOEPD compared to 7,209 net BOEPD in the year-ago period. Total production for the third quarter of fiscal 2025 included 1,911 barrels per day (“BOPD”) of crude oil, 3,723 BOEPD of natural gas, and 1,033 BOEPD of NGLs. The decrease in total production was driven by planned maintenance at the central facility and NGL plant downtime at Delhi Field, January winter weather impacts at Barnett Shale, as well as natural production declines partially offset by additional production from the Company’s SCOOP/STACK properties acquired in February 2024. Total oil and natural gas liquids production generated 65% of revenue for the quarter compared to 75% in the year-ago period.

    The Company’s average realized commodity price (excluding the impact of derivative contracts) increased 7% to $37.60 per BOE, compared to $35.10 per BOE in the year-ago period. These increases were primarily driven by an increase of approximately 40% in realized natural gas prices year over year.

    Operations Update

    At SCOOP/STACK, the Company brought online 13 gross wells fiscal year-to-date, with an additional five wells in progress.

    At Chaveroo, the Company successfully completed and brought online four new gross wells in the second development block. These wells were completed on schedule and under budget. Although very early in the productive life of the wells, production rates are significantly exceeding expectations.

    In the Williston Basin, oil production was up quarter over quarter as a result of deferred oil sales at the end of Q2 to Q3. Gas and NGLs increased quarter over quarter, benefiting from a full quarter of gas sales. The Williston field continues to generate solid returns.

    At Delhi, production was temporarily affected by planned maintenance at the Delhi Central Facility, which resulted in a shutdown of the entire field for a few days and at the NGL Plant for approximately two weeks.  At the end of the quarter, the decision was made to switch from purchasing CO2 volumes to additional water injection.  The operator will continue to inject approximately 300 MMCFPD of recycled CO2.  The Company and the operator believe this will be the most economical way to run the field and will significantly reduce operating costs while maximizing cash flow.

    Jonah remained steady, with a temporary dip in volumes during February due to the impact of winter weather. However, strong winter natural gas pricing contributed positively to overall cash flow for the quarter.

    Barnett Shale delivered consistent cash-flow generation, reflecting its reliability and operational stability. Despite brief downtime in January due to winter storms, production remained steady overall, with improved realized pricing for natural gas and NGLs serving as a tailwind for financial results. These favorable pricing dynamics helped offset broader commodity price weakness and underscore Barnett’s continued role as a valuable contributor to our diversified portfolio.

    Balance Sheet, Liquidity, and Capital Spending

    On March 31, 2025, cash and cash equivalents totaled $5.6 million, with a working capital deficit of $2.7 million primarily due to unrealized losses on current derivative contracts, which vary quarter-to-quarter based on forecasted commodity prices at the end of each quarter. Evolution had $35.5 million of borrowings outstanding under its revolving credit facility and total liquidity of $20.1 million, including cash and cash equivalents. In Fiscal Q3, Evolution paid $4.1 million in common stock dividends, $4.0 million in repayments of borrowings of its Senior Secured Credit Facility, $1.8 million in deposits for its TexMex Acquisition, and $4.4 million in capital expenditures. During the quarter ended March 31, 2025, the Company sold a total of approximately 0.2 million shares of its common stock under its At-the-Market Sales Agreement for net proceeds of approximately $1.1 million, after deducting less than $0.1 million in offering costs.

    The Company has received approval from its lender, MidFirst Bank, to extend the maturity of the existing Senior Secured Credit Facility to April 2028 and increase their total commitments from $50.0 million to $55.0 million. Also, the Company expects to receive $10.0 million in additional commitments from a new lender, Prism Bank, bringing the total commitments to $65.0 million.

    Cash Dividend on Common Stock

    On May 12, 2025, Evolution’s Board of Directors declared a cash dividend of $0.12 per share of common stock, which will be paid on June 30, 2025, to common stockholders of record on June 13, 2025. This will be the 47th consecutive quarterly cash dividend on the Company’s common stock since December 31, 2013. To date, Evolution has returned approximately $130.7 million, or $3.93 per share, back to stockholders in common stock dividends.

    Conference Call

    As previously announced, Evolution Petroleum will host a conference call on Wednesday, May 14, 2025, at 10:00 a.m. CT to review its fiscal third quarter 2025 financial and operating results. Participants can join online at https://event.choruscall.com/mediaframe/webcast.html?webcastid=ASNQRrWs or by dialing (844) 481-2813. Dial-in participants should ask to join the Evolution Petroleum Corporation call. A replay will be available through May 14, 2026, via the webcast link provided and on Evolution’s Investor Relations website at www.ir.evolutionpetroleum.com.

    About Evolution Petroleum

    Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Visit www.evolutionpetroleum.com for more information.

    Cautionary Statement

    All forward-looking statements contained in this press release regarding the Company’s current and future expectations, potential results, and plans and objectives involve a wide range of risks and uncertainties. Statements herein using words such as “believe,” “expect,” “may,” “plans,” “outlook,” “should,” “will,” and words of similar meaning are forward-looking statements. Although the Company’s expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations. The Company gives no assurance that its goals will be achieved. These factors and others are detailed under the heading “Risk Factors” and elsewhere in our periodic reports filed with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to update any forward-looking statement.

    Contact
    Investor Relations
    (713) 935-0122
    ir@evolutionpetroleum.com

           
    Evolution Petroleum Corporation

    Condensed Consolidated Statements of Operations (Unaudited)

    (In thousands, except per share amounts)
           
      Three Months Ended   Nine Months Ended
      March 31,    December 31,   March 31, 
      2025   2024   2024   2025   2024
    Revenues                            
    Crude oil $ 11,769     $ 14,538     $ 11,763     $ 38,269     $ 38,913  
    Natural gas   7,790       5,860       5,793       17,868       17,943  
    Natural gas liquids   3,002       2,627       2,719       8,595       7,794  
    Total revenues   22,561       23,025       20,275       64,732       64,650  
    Operating costs                            
    Lease operating costs   13,388       12,624       12,793       37,971       36,865  
    Depletion, depreciation, and accretion   5,014       5,900       5,433       16,172       14,760  
    General and administrative expenses   2,573       2,417       2,654       7,754       7,522  
    Total operating costs   20,975       20,941       20,880       61,897       59,147  
    Income (loss) from operations   1,586       2,084       (605 )     2,835       5,503  
    Other income (expense)                            
    Net gain (loss) on derivative contracts   (3,802 )     (1,183 )     (1,219 )     (3,223 )     (1,183 )
    Interest and other income   55       63       52       164       283  
    Interest expense   (705 )     (518 )     (764 )     (2,292 )     (584 )
    Income (loss) before income taxes   (2,866 )     446       (2,536 )     (2,516 )     4,019  
    Income tax (expense) benefit   687       (157 )     711       577       (1,174 )
    Net income (loss) $ (2,179 )   $ 289     $ (1,825 )   $ (1,939 )   $ 2,845  
    Net income (loss) per common share:                            
    Basic $ (0.07 )   $ 0.01     $ (0.06 )   $ (0.07 )   $ 0.09  
    Diluted $ (0.07 )   $ 0.01     $ (0.06 )   $ (0.07 )   $ 0.08  
    Weighted average number of common shares outstanding:                            
    Basic   33,433       32,702       32,934       33,027       32,692  
    Diluted   33,433       32,854       32,934       33,027       32,920  
                                           
    Evolution Petroleum Corporation

    Condensed Consolidated Balance Sheets (Unaudited)

    (In thousands, except share and per share amounts)
           
      March 31, 2025   June 30, 2024
    Assets              
    Current assets              
    Cash and cash equivalents $ 5,601     $ 6,446  
    Receivables from crude oil, natural gas, and natural gas liquids revenues   10,707       10,826  
    Derivative contract assets   828       596  
    Prepaid expenses and other current assets   2,658       3,855  
    Total current assets   19,794       21,723  
    Property and equipment, net of depletion, depreciation, and impairment              
    Oil and natural gas properties, net, full-cost method of accounting, of which none were excluded from amortization   133,514       139,685  
                   
    Other noncurrent assets              
    Derivative contract assets   48       171  
    Other assets   3,038       1,298  
    Total assets $ 156,394     $ 162,877  
    Liabilities and Stockholders’ Equity              
    Current liabilities              
    Accounts payable $ 11,977     $ 8,308  
    Accrued liabilities and other   7,092       6,239  
    Derivative contract liabilities   3,453       1,192  
    State and federal taxes payable   —       74  
    Total current liabilities   22,522       15,813  
    Long term liabilities              
    Senior secured credit facility   35,500       39,500  
    Deferred income taxes   4,572       6,702  
    Asset retirement obligations   20,398       19,209  
    Derivative contract liabilities   1,742       468  
    Operating lease liability   —       58  
    Total liabilities   84,734       81,750  
    Commitments and contingencies              
    Stockholders’ equity              
    Common stock; par value $0.001; 100,000,000 shares authorized: issued and outstanding 34,284,369 and 33,339,535 shares as of March 31, 2025 and June 30, 2024, respectively   34       33  
    Additional paid-in capital   45,786       41,091  
    Retained earnings   25,840       40,003  
    Total stockholders’ equity   71,660       81,127  
    Total liabilities and stockholders’ equity $ 156,394     $ 162,877  
                   
    Evolution Petroleum Corporation

    Condensed Consolidated Statements of Cash Flows (Unaudited)

    (In thousands)
                                 
      Three Months Ended   Nine Months Ended
      March 31,    December 31,   March 31, 
      2025   2024   2024   2025   2024
    Cash flows from operating activities:                            
    Net income (loss) $ (2,179 )   $ 289     $ (1,825 )   $ (1,939 )   $ 2,845  
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:                            
    Depletion, depreciation, and accretion   5,014       5,900       5,433       16,172       14,760  
    Stock-based compensation   642       549       659       1,860       1,585  
    Settlement of asset retirement obligations   (66 )     (19 )     (182 )     (346 )     (19 )
    Deferred income taxes   (2,101 )     766       252       (2,130 )     124  
    Unrealized (gain) loss on derivative contracts   3,926       1,063       1,368       3,426       1,063  
    Accrued settlements on derivative contracts   (57 )     94       9       (114 )     94  
    Other   (4 )     (3 )     (1 )     (7 )     —  
    Changes in operating assets and liabilities:                            
    Receivables from crude oil, natural gas, and natural gas liquids revenues   (26 )     (2,495 )     29       (34 )     (4,734 )
    Prepaid expenses and other current assets   965       (1,151 )     (1,494 )     1,400       (1,425 )
    Accounts payable, accrued liabilities, and other   1,149       (1,629 )     3,471       4,382       814  
    State and federal taxes payable   —       —       —       (74 )     (365 )
    Net cash provided by operating activities   7,263       3,364       7,719       22,596       14,742  
    Cash flows from investing activities:                            
    Acquisition deposits   (1,800 )     —       —       (1,800 )     —  
    Acquisition of oil and natural gas properties   (20 )     (43,788 )     (69 )     (351 )     (43,788 )
    Capital expenditures for oil and natural gas properties   (4,404 )     (2,648 )     (758 )     (7,902 )     (8,353 )
    Net cash used in investing activities   (6,224 )     (46,436 )     (827 )     (10,053 )     (52,141 )
    Cash flows from financing activities:                            
    Common stock dividends paid   (4,109 )     (4,003 )     (4,082 )     (12,224 )     (12,037 )
    Common stock repurchases, including stock surrendered for tax withholding   (71 )     (818 )     (103 )     (262 )     (1,031 )
    Borrowings under senior secured credit facility   —       42,500       —       —       42,500  
    Repayments of senior secured credit facility   (4,000 )     —       —       (4,000 )     —  
    Issuance of common stock   1,145       —       2,259       3,404       —  
    Offering costs   (70 )     —       (236 )     (306 )     —  
    Net cash provided by (used in) financing activities   (7,105 )     37,679       (2,162 )     (13,388 )     29,432  
    Net increase (decrease) in cash and cash equivalents   (6,066 )     (5,393 )     4,730       (845 )     (7,967 )
    Cash and cash equivalents, beginning of period   11,667       8,460       6,937       6,446       11,034  
    Cash and cash equivalents, end of period $ 5,601     $ 3,067     $ 11,667     $ 5,601     $ 3,067  
                                           

    Evolution Petroleum Corporation

    Non-GAAP Reconciliation – Adjusted EBITDA (Unaudited)

    (In thousands)

    Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures that are used as supplemental financial measures by our management and by external users of our financial statements, such as investors, commercial banks, and others, to assess our operating performance as compared to that of other companies in our industry, without regard to financing methods, capital structure, or historical costs basis. We use these measures to assess our ability to incur and service debt and fund capital expenditures. Our Adjusted EBITDA and Net income (loss) and earnings per share, excluding selected items, should not be considered alternatives to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items in the same manner.

    We define Adjusted EBITDA as net income (loss) plus interest expense, income tax expense (benefit), depreciation, depletion, and accretion (DD&A), stock-based compensation, ceiling test impairment, and other impairments, unrealized loss (gain) on change in fair value of derivatives, and other non-recurring or non-cash expense (income) items.

                                     
      Three Months Ended   Nine Months Ended
      March 31,    December 31,   March 31, 
      2025     2024   2024     2025     2024
    Net income (loss) $ (2,179 )   $ 289     $ (1,825 )   $ (1,939 )   $ 2,845  
    Adjusted by:                                
    Interest expense   705       518       764       2,292       584  
    Income tax expense (benefit)   (687 )     157       (711 )     (577 )     1,174  
    Depletion, depreciation, and accretion   5,014       5,900       5,433       16,172       14,760  
    Stock-based compensation   642       549       659       1,860       1,585  
    Unrealized loss (gain) on derivative contracts   3,926       1,063       1,368       3,426       1,063  
    Adjusted EBITDA $ 7,421     $ 8,476     $ 5,688     $ 21,234     $ 22,011  
                                           
    Evolution Petroleum Corporation

    Non-GAAP Reconciliation – Adjusted Net Income (Unaudited)

    (In thousands, except per share amounts)
           
      Three Months Ended   Nine Months Ended
      March 31,    December 31,   March 31, 
      2025   2024   2024   2025   2024
    As Reported:                            
    Net income (loss), as reported $ (2,179 )   $ 289     $ (1,825 )   $ (1,939 )   $ 2,845  
                                 
    Impact of Selected Items:                            
    Unrealized loss (gain) on commodity contracts   3,926       1,063       1,368       3,426       1,063  
    Selected items, before income taxes $ 3,926     $ 1,063     $ 1,368     $ 3,426     $ 1,063  
    Income tax effect of selected items(1)   941       374       384       786       311  
    Selected items, net of tax $ 2,985     $ 689     $ 984     $ 2,640     $ 752  
                                 
    As Adjusted:                            
    Net income (loss), excluding selected items(2) $ 806     $ 978     $ (841 )   $ 701     $ 3,597  
                                 
    Undistributed earnings allocated to unvested restricted stock   (96 )     (21 )     (100 )     (274 )     (73 )
    Net income (loss), excluding selected items for earnings per share calculation $ 710     $ 957     $ (941 )   $ 427     $ 3,524  
                                 
    Net income (loss) per common share — Basic, as reported $ (0.07 )   $ 0.01     $ (0.06 )   $ (0.07 )   $ 0.09  
    Impact of selected items   0.09       0.02       0.03       0.08       0.02  
    Net income (loss) per common share — Basic, excluding selected items(2) $ 0.02     $ 0.03     $ (0.03 )   $ 0.01     $ 0.11  
                                 
                                 
    Net income (loss) per common share — Diluted, as reported $ (0.07 )   $ 0.01     $ (0.06 )   $ (0.07 )   $ 0.08  
    Impact of selected items   0.09       0.02       0.03       0.08       0.03  
    Net income (loss) per common share — Diluted, excluding selected items(2)(3) $ 0.02     $ 0.03     $ (0.03 )   $ 0.01     $ 0.11  

    _____________________

    (1) The tax impact for the three months ended March 31, 2025 and 2024, is represented using estimated tax rates of 24.0% and 35.2%, respectively. The tax impact for the three months ended December 31, 2024, is represented using estimated tax rates of 28.0%. The tax impact for the nine months ended March 31, 2025 and 2024 is represented using estimated tax rates of 22.9% and 29.2%, respectively.
    (2) Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these items on reported results. These financial measures should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted Net Income (Loss) and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted Net Income (Loss) and earnings per share in the same manner.
    (3) The impact of selected items for the three months ended March 31, 2025, and 2024, were each calculated based upon weighted average diluted shares of 33.6 million and 32.9 million, respectively, due to the net income (loss), excluding selected items. The impact of selected items for the three months ended December 31, 2024, was calculated based upon weighted average diluted shares of 32.9 million due to the net income (loss), excluding selected items. The impact of selected items for the nine months ended March 31, 2025, and 2024, was each calculated based upon weighted average diluted shares of 33.2 million and 32.9 million, respectively, due to the net income (loss), excluding selected items.
       
    Evolution Petroleum Corporation

    Supplemental Information on Oil and Natural Gas Operations (Unaudited)

    (In thousands, except per unit and per BOE amounts)
                                           
      Three Months Ended   Nine Months Ended
      March 31,    December 31,   March 31, 
      2025   2024   2024   2025   2024
    Revenues:                                      
    Crude oil $ 11,769     $ 14,538     $ 11,763     $ 38,269     $ 38,913  
    Natural gas   7,790       5,860       5,793       17,868       17,943  
    Natural gas liquids   3,002       2,627       2,719       8,595       7,794  
    Total revenues $ 22,561     $ 23,025     $ 20,275     $ 64,732     $ 64,650  
                                           
    Lease operating costs:                                      
    Ad valorem and production taxes $ 1,473     $ 1,459     $ 1,441     $ 4,328     $ 4,009  
    Gathering, transportation, and other costs   2,913       2,527       2,889       8,592       6,926  
    Other lease operating costs   9,002       8,638       8,463       25,051       25,930  
    Total lease operating costs $ 13,388     $ 12,624     $ 12,793     $ 37,971     $ 36,865  
                                           
    Depletion of full cost proved oil and natural gas properties $ 4,607     $ 5,532     $ 5,024     $ 14,956     $ 13,680  
                                           
    Production:                                      
    Crude oil (MBBL)   172       199       179       555       519  
    Natural gas (MMCF)   2,011       2,115       2,125       6,364       6,091  
    Natural gas liquids (MBBL)   93       104       105       311       295  
    Equivalent (MBOE)(1)   600       656       638       1,927       1,829  
    Average daily production (BOEPD)(1)   6,667       7,209       6,935       7,033       6,651  
                                           
    Crude oil (BBL) $ 68.42     $ 73.06     $ 65.72     $ 68.95     $ 74.98  
    Natural gas (MCF)   3.87       2.77       2.73       2.81       2.95  
    Natural Gas Liquids (BBL)   32.28       25.26       25.90       27.64       26.42  
    Equivalent (BOE)(1) $ 37.60     $ 35.10     $ 31.78     $ 33.59     $ 35.35  
                                           
    Average cost per unit:                                      
    Ad valorem and production taxes $ 2.46     $ 2.22     $ 2.26     $ 2.25     $ 2.19  
    Gathering, transportation, and other costs   4.86       3.85       4.53       4.46       3.79  
    Other lease operating costs   15.00       13.17       13.26       13.00       14.18  
    Total lease operating costs $ 22.32     $ 19.24     $ 20.05     $ 19.71     $ 20.16  
                                           
    Depletion of full cost proved oil and natural gas properties $ 7.68     $ 8.43     $ 7.87     $ 7.76     $ 7.48  

    _____________________

    (1) Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio, which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.
    (2) Amounts exclude the impact of cash paid or received on the settlement of derivative contracts since we did not elect to apply hedge accounting.
       
    Evolution Petroleum Corporation

    Summary of Production Volumes and Average Sales Price (Unaudited)
       
      Three Months Ended
      March 31,    December 31,
      2025   2024   2024
      Volume   Price   Volume   Price   Volume   Price
    Production:                                              
    Crude oil (MBBL)                                              
    SCOOP/STACK   28     $ 71.36       30     $ 78.71       35     $ 70.52  
    Chaveroo Field   8       56.78       15       76.39       9       67.55  
    Jonah Field   7       67.69       8       72.25       7       64.54  
    Williston Basin   34       64.35       35       70.29       30       64.64  
    Barnett Shale   3       68.03       3       73.05       2       65.99  
    Hamilton Dome Field   34       58.88       35       61.21       35       57.53  
    Delhi Field   58       76.04       73       77.08       60       68.66  
    Other   —       —       —       —       1       71.61  
    Total   172     $ 68.42       199     $ 73.06       179     $ 65.72  
    Natural gas (MMCF)                                              
    SCOOP/STACK   317     $ 4.91       214     $ 2.11       314     $ 2.89  
    Chaveroo Field   —       —       7       2.29       —       —  
    Jonah Field   758       4.02       843       3.94       803       3.21  
    Williston Basin   32       3.89       20       1.36       18       1.41  
    Barnett Shale   904       3.39       1,031       1.98       990       2.31  
    Total   2,011     $ 3.87       2,115     $ 2.77       2,125     $ 2.73  
    Natural gas liquids (MBBL)                                              
    SCOOP/STACK   13     $ 27.84       10     $ 25.14       18     $ 21.34  
    Chaveroo Field   —       —       1       22.86       —       —  
    Jonah Field   8       32.14       9       31.93       9       30.08  
    Williston Basin   8       23.74       4       23.96       2       17.86  
    Barnett Shale   49       33.48       59       22.85       57       25.86  
    Delhi Field   15       37.20       20       30.48       19       29.13  
    Other   —       —       1       25.87       —       —  
    Total   93     $ 32.28       104     $ 25.26       105     $ 25.90  
                                                   
    Equivalent (MBOE)(1)                                              
    SCOOP/STACK   94     $ 41.90       76     $ 40.56       105     $ 35.48  
    Chaveroo Field   8       56.78       17       68.40       9       67.55  
    Jonah Field   141       26.63       158       26.72       150       22.14  
    Williston Basin   47       53.08       42       61.15       35       57.00  
    Barnett Shale   203       24.13       234       15.41       224       17.29  
    Hamilton Dome Field   34       58.88       35       61.21       35       57.53  
    Delhi Field   73       68.19       93       67.21       79       59.37  
    Other   —       —       1       25.87       1       71.61  
    Total   600     $ 37.60       656     $ 35.10       638     $ 31.78  
                                                   
    Average daily production (BOEPD)(1)                                              
    SCOOP/STACK   1,044               835               1,141          
    Chaveroo Field   89               187               98          
    Jonah Field   1,567               1,736               1,630          
    Williston Basin   522               462               380          
    Barnett Shale   2,256               2,571               2,435          
    Hamilton Dome Field   378               385               380          
    Delhi Field   811               1,022               859          
    Other   —               11               12          
    Total   6,667               7,209               6,935          

    _____________________

    (1) Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio, which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.
       
    Evolution Petroleum Corporation

    Summary of Average Production Costs (Unaudited)
       
      Three Months Ended
      March 31,    December 31,
      2025   2024   2024
      Amount   Price   Amount   Price   Amount   Price
    Production costs (in thousands, except per BOE):                                              
    Lease operating costs                                              
    SCOOP/STACK $ 1,106     $ 11.74     $ 619     $ 8.18     $ 1,050     $ 9.97  
    Chaveroo Field   128       15.77       161       9.12       122       12.92  
    Jonah Field   2,184       15.51       2,313       14.63       2,196       14.62  
    Williston Basin   1,476       31.45       1,413       33.69       1,190       34.12  
    Barnett Shale   3,739       18.47       3,767       16.07       4,030       18.03  
    Hamilton Dome Field   1,237       36.36       1,566       45.34       1,188       34.18  
    Delhi Field   3,518       48.04       2,785       30.19       3,017       38.15  
    Total $ 13,388     $ 22.32     $ 12,624     $ 19.24     $ 12,793     $ 20.05  
                                                   

    Evolution Petroleum Corporation

    Summary of Open Derivative Contracts (Unaudited)

    For more information on the Company’s hedging practices, see Note 7 to its financial statements included on Form 10-Q filed with the SEC for the quarter ended March 31, 2025.
    The Company had the following open crude oil and natural gas derivative contracts as of May 12, 2025:

                                           
                Volumes in     Swap Price per   Floor Price per   Ceiling Price per
    Period   Commodity   Instrument   MMBTU/BBL     MMBTU/BBL   MMBTU/BBL   MMBTU/BBL
    April 2025 – June 2025   Crude Oil   Fixed-Price Swap   25,571     $ 73.49                  
    April 2025 – June 2025   Crude Oil   Collar   41,601             $ 65.00     $ 84.00  
    April 2025 – December 2025   Crude Oil   Fixed-Price Swap   32,229       72.00                  
    July 2025 – December 2025   Crude Oil   Fixed-Price Swap   81,335       71.40                  
    January 2026 – March 2026   Crude Oil   Collar   43,493               60.00       75.80  
    April 2026 – June 2026   Crude Oil   Fixed-Price Swap   17,106       60.40                  
    April 2025 – December 2025   Natural Gas   Collar   681,271               4.00       4.95  
    April 2025 – December 2026   Natural Gas   Fixed-Price Swap   3,010,069       3.60                  
    January 2026 – March 2026   Natural Gas   Collar   375,481               3.60       5.00  
    January 2026 – March 2026   Natural Gas   Collar   213,251               4.00       5.39  
    April 2025 – December 2027   Natural Gas   Fixed-Price Swap   3,729,540       3.57                  
    April 2026 – October 2026   Natural Gas   Collar   433,428               3.50       4.55  
                                           

    This press release was published by a CLEAR® Verified individual.

    The MIL Network –

  • MIL-Evening Report: Using a blue inhaler alone is not enough to manage your asthma

    Source: The Conversation (Au and NZ) – By Stephen Hughes, Lecturer in Pharmacy Practice, University of Sydney

    New Africa/Shutterstock

    Inhalers have been key to asthma management since the 1950s. The most common, salbutamol, comes in a familiar blue-coloured inhaler (or “puffer”).

    This kind of “rescue inhaler” brings quick relief from asthma symptoms. You may know these inhalers by their brand names such as Ventolin, Asmol or Zempreon.

    But there is growing evidence that using this kind of inhaler without treating the underlying condition may not only be ineffective – it could actually increase the risk of an asthma attack.

    Next month, the National Asthma Council is releasing updated guidelines that reflect this shift. Here’s what’s changing and what you need to know.

    What is a bronchodilator?

    Bronchodilators such as salbutamol act by relaxing smooth muscle in the airways. While they don’t address inflammation, which is the key cause of asthma, bronchodilators are effective at quickly opening up constricted airways.

    This means for people experiencing typical asthma symptoms – such as tightness of the chest and shortness of breath – a puff of salbutamol brings relief within ten minutes. The effect can last up to six hours.

    Salbutamol relaxes the airway muscles that tighten due to asthma.
    BlueRingMedia/Shutterstock

    Salbutamol is used by people with asthma and other respiratory conditions, such as chronic obstructive pulmonary disease (which includes chronic bronchitis and/or emphysema). As part of a management plan made with a doctor, salbutamol is used to relieve shortness of breath when it occurs.

    In Australia, more than 60% of salbutamol is purchased over the counter (without a prescription) in pharmacies. Many of these purchases may be for people with infrequent asthma symptoms, meaning less than twice a month.

    However, we now know there are safer and more effective ways for people with infrequent asthma to manage it in the long term.

    So, what’s wrong with using salbutamol?

    Treating symptoms is only one part of asthma management. Salbutamol doesn’t address the root cause – why the airways of people who get asthma become constricted in the first place.

    It’s a bit like taking pain relief for a swollen elbow without treating the tendonitis causing the pain.

    In asthma, chronic inflammation is usually a result of genes and environment interacting.

    Some people have airways that overreact to triggers in the environment. These triggers include pollens, moulds and dust mites, or air that is cold or humid.

    Over the long term, chronic inflammation can lead to changes in the airways. The airway walls become thicker and produce more mucus, allowing less space for air to flow through them.

    Using short-acting treatments such as salbutamol without addressing chronic inflammation in the airways poses risks.

    Salbutamol can become less effective with regular use. This means people with shortness of breath don’t gain the relief they expect and need, and paradoxically, their airways may become more “twitchy” (sensitive to environmental triggers) and inflamed. One response to this is people use more salbutamol and the problem is compounded.

    Strong data links increased use of short-term inhalers such as salbutamol to higher risk of asthma flare-ups, hospital admissions and even death.

    Purchasing three or more salbutamol inhalers per year is considered overuse.

    According to asthma guidelines in Australia and globally, needing salbutamol for symptom relief on more than two days a week is an indicator of poorly controlled asthma, requiring review and possibly anti-inflammatory treatment.

    Using your blue inhaler more than two days a week may indicate poorly controlled asthma.
    Kotcha K/Shutterstock

    What do the new guidelines recommend?

    In 2019, the Global Initiative for Asthma, an independent not-for-profit organisation, radically changed its recommendations for salbutamol use. This is based on its committee of asthma experts reviewing the evidence.

    Australian asthma guidelines from the National Asthma Council are set to follow suit.

    The council’s 2025 Australian Asthma Handbook now states that salbutamol alone is inadequate treatment for asthma in adults or adolescents.

    Previously, the guidelines recommended people with infrequent symptoms to use salbutamol when needed and “alone” – that is, without an anti-inflammatory preventer.

    The new recommendations specifically warn against anyone with asthma using a short-acting bronchodilator such as salbutamol by itself, due to the increased health risks mentioned above.

    People with asthma who use salbutamol, for example, should also use an anti-inflammatory treatment that provides preventive cover, such as an inhaled corticosteroid.

    The 2025 Australian Asthma Handbook now recommends anti-inflammatory relievers from day one when it comes to asthma treatment in adults and adolescents.

    These inhalers contain, in a single dose (one puff), both a bronchodilator (to relieve symptoms) and a low-dose anti-inflammatory corticosteroid (to treat underlying inflammation).

    They are recommended instead of salbutamol-only inhalers for symptom relief, even for those whose symptoms are infrequent.

    When used in place of salbutamol-only inhalers, anti-inflammatory relievers have demonstrated improvements in quality of life for people with asthma, as well as lower risks of hospitalisations and death.

    In the case of children with asthma, global guidelines emphasise the use of anti-inflammatory inhalers and discourage over-reliance on bronchodilators.

    Will I need to change my inhaler?

    Currently, combination anti-inflammatory relievers are only available with a prescription from a doctor. These prescriptions with repeats can allow people with asthma up to 12 months of treatment.

    In Australia you can still buy salbutamol in a pharmacy without a prescription, after consultation with a pharmacist.

    However, if you have asthma and you’re concerned about the new guidance, you should speak to your pharmacist or doctor for advice.

    Stephen Hughes receives research grant funding from the Australian Government Department of Health and Aged Care Medical Research Future Fund, The Australian Research Council and Asthma Australia. He is a past Board Member of the National Asthma Council of Australia and current member of its Finance and Risk Management Committee.

    Bandana Saini has received funding from 1) Australian Government Department of Health Initiatives (via MRFFs or Community Pharmacy Agreement based investigator initiated grants, 2) National Health and Medical Research Council or from 3) organisations such as Asthma Australia.

    – ref. Using a blue inhaler alone is not enough to manage your asthma – https://theconversation.com/using-a-blue-inhaler-alone-is-not-enough-to-manage-your-asthma-250133

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Canada: Tribunal Initiates Inquiry—Steel Strapping from China, Türkiye, South Korea, and Vietnam

    Source: Government of Canada News (2)

    Ottawa, Ontario, May 13, 2025—The Canadian International Trade Tribunal today initiated a preliminary injury inquiry into a complaint by JEM Strapping Systems Inc., of Brantford, Ontario, that they have suffered injury as a result of the dumping of steel strapping from the People’s Republic of China, the Republic of Türkiye, the Republic of Korea, and the Socialist Republic of Vietnam and the subsidizing of steel strapping originating in or exported from the People’s Republic of China. The Tribunal’s inquiry is conducted pursuant to the Special Import Measures Act (SIMA) as a result of the initiation of dumping and subsidizing investigations by the Canada Border Services Agency (CBSA).

    On July 10, 2025, the Tribunal will determine whether there is a reasonable indication that the alleged dumping and subsidizing have caused injury or retardation, or are threatening to cause injury, as these words are defined in SIMA. If so, the CBSA will continue its investigations and, by August 8, 2025, will make preliminary determinations. If these preliminary determinations indicate that there has been dumping or subsidizing, the CBSA will then continue its investigations and, concurrently, the Tribunal will initiate a final injury inquiry.

    The Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.

    Any interested person, association or government that wishes to participate in the Tribunal’s inquiry may do so by filing a Form I – Notice of Participation.

    MIL OSI Canada News –

  • MIL-OSI Security: Sinaloa Cartel Leaders Charged with Narco-Terrorism, Material Support of Terrorism and Drug Trafficking

    Source: United States Attorneys General

    SAN DIEGO — An indictment unsealed today is the first in the nation to charge alleged leaders of the Sinaloa Cartel with narco-terrorism and material support of terrorism in connection with trafficking massive amounts of fentanyl, cocaine, methamphetamine and heroin into the United States.

    Pedro Inzunza Noriega and his son, Pedro Inzunza Coronel, are charged with narco-terrorism, drug trafficking and money laundering as key leaders of the Beltran Leyva Organization (BLO), a powerful and violent faction of the Sinaloa Cartel that is believed to be the world’s largest known fentanyl production network. Five other BLO leaders are charged with drug trafficking and money laundering. The indictment is a direct result of President Trump’s Executive Order 14157 which designated the Sinaloa Cartel as a Foreign Terrorist Organization and the Secretary of State’s subsequent designation of the same on February 20, 2025.

    “The Sinaloa Cartel is a complex, dangerous terrorist organization and dismantling them demands a novel, powerful legal response,” said Attorney General Pamela Bondi. “Their days of brutalizing the American people without consequence are over — we will seek life in prison for these terrorists.”

    “Operation Take Back America initiatives reflect the reality that narco-terrorists operate as a cancer within a state,” said U.S. Attorney Adam Gordon for the Southern District of California. “They metastasize violence, corruption and fear. If left unchecked, their growth would lead to the death of law and order. This indictment is what justice looks like when the full measure of the Department of Justice along with its law enforcement partners is brought to bear against the Sinaloa Cartel.”

    “These charges highlight the unwavering efforts of transnational criminal organizations like the Sinaloa Cartel to flood our communities with deadly drugs,” said Special Agent in Charge Shawn Gibson of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) San Diego. “HSI and our law enforcement partners will not allow cartel-driven drug trafficking to threaten the safety and stability of our neighborhoods. We are all lasered focused on a unified effort to dismantling these networks and their factions in bringing those responsible to justice.”

    “BLO, under the leadership of Inzunza Noriega, is allegedly responsible for some of the largest-ever drug seizures of fentanyl and cocaine destined for the United States,” said Acting Special Agent in Charge Houtan Moshrefi of the FBI San Diego Field Office. “Their drugs not only destroy lives and communities, but also threaten our national security. The law enforcement efforts against the Noriegas reaffirms our commitment to dismantling and disrupting this very dangerous narco-terrorist group and combating narco-trafficking.”

    According to court documents, since its inception the Beltran Leyva faction has been considered one of the most violent drug trafficking organizations to operate in Mexico, engaging in shootouts, murders, kidnappings, torture and violent collection of drug debts to sustain its operations. The Beltran Leyva faction controls numerous territories and plazas throughout Mexico – including Tijuana – and operates with violent impunity, trafficking in deadly drugs, threatening communities, and targeting key officials, all while making millions of dollars from their criminal activities.

    Pedro Inzunza Noriega works closely with his son, Pedro Inzunza Coronel, to produce and aggressively traffic fentanyl to the United States, the government has alleged. Court documents indicate that together the father and son lead one of the largest and most sophisticated fentanyl production networks in the world. Over the past several years, they have trafficked tens of thousands of kilograms of fentanyl into the United States. On Dec. 3, 2024, Mexican law enforcement raided multiple locations in Sinaloa that are controlled and managed by the father and son and seized 1,500 kilograms (more than 1.65 tons) of fentanyl – the largest seizure of fentanyl in the world.

    These indictments follow a notable tradition in the Southern District of California for targeting leadership and operations of powerful Mexican cartels – from the dismantling of the Arellano Felix Cartel to major strikes against today’s most dangerous, powerful and violent cartels, including the Sinaloa Cartel, Cartel de Jalisco Nueva Generación (CJNG), and now the Beltran Leyva Organization. It is the first indictment from the newly formed Narco-Terrorism Unit in the Southern District of California which was established upon the swearing in of U.S. Attorney Gordon on April 11.

    The indictment of Pedro Inzunza Noriega reflects the Southern District of California’s pursuit of the Sinaloa Cartel. Federal drug trafficking indictments are pending against all alleged leaders of its Beltran Leyva faction, including:

    • Fausto Isidro Meza Flores aka “Chapo Isidro,” case number: 19-CR-1272 in the Southern District of California and 12-116BAH in the District of Columbia
    • Oscar Manuel Gastelum Iribe aka “El Musico,” case number 19-CR-3736 in the Southern District of California; 09-CR-00672 in the Northern District of Illinois; 15-CR-00195 in the District of Columbia, and
    • Pedro Inzunza Noriega aka “Sagitario,” case number 25cr1505.

    The Southern District of California also has indictments pending against other leaders of the Sinaloa Cartel, including:

    • Ivan Archivaldo Guzman Salazar aka “El Chapito,” case number 14-cr-00658 in the Southern District of California and 09-CR-383 in the Northern District of Illinois
    • Ismael Zambada Sicairos aka “Mayito Flaco,” case number: 14-cr-00658 in the Southern District of California; and
    • Jose Gil Caro Quintero aka “El Chino,” case number 22-cr-00036 in the District of Columbia

    1,500 kilogram fentanyl seizure on December 5, 2024

    1,680 kilogram cocaine seizure in Mexico City

    Cocaie seizure with the “Incredibles” brand and “R” brand

    Rainbow colored fentanyl pills and fentanyl bricks with “Louis Vuitton” and “Rolls Royce” stamps

    Pedro Inzunza branded hat with Fausto Isidro Meza Flores, aka, “Chapo Isidro” and Oscar Manuel Gastelum Iribe aka, “El Musico” symbols

    This case is being prosecuted by Assistant U.S. Attorneys Joshua Mellor and Matthew Sutton for the Southern District of California.

    DEFENDANTS                                 Case Number: 25cr1505                                          

    Pedro Inzunza Noriega                                     Age: 62              Los Mochis, Sinaloa, Mexico

    aka “Sagitario,” aka “120,” aka “El De La Silla”

    Pedro Inzunza Coronel                                     Age: 33              Los Mochis, Sinaloa, Mexico

    Aka “Pichon,” Aka “Pajaro,”  Aka “Bird”

    David Alejandro Heredia Velazquez                Age: 50              Guadalajara, Jalisco,

    Aka “Tano,” Aka “Mr. Jordan”                                                     Mexico, and Culiacan,                                                                                                                                                           Sinaloa, Mexico          

    Oscar Rene Gonzalez Menendez                       Age: 45             Guatemala City, 

    Aka “Rubio”                                                                                         Guatemala

    Elias Alberto Quiros Benavides                        Age: 53              San Jose, Costa Rica

    Daniel Eduardo Bojorquez                                Age: 47              Nogales, Sonora, Mexico

    Aka “Chopper”

    Javier Alonso Vazquez Sanchez                       Age: 31               Los Mochis, Sinaloa, Mexico

    Aka “Tito”, Aka “Drilo”

    SUMMARY OF CHARGES

    Title 21, U.S.C., Secs. 960a and 841 – Narco-Terrorism

    Maximum penalty: Life in prison, mandatory minimum 20 years in prison; $20 million fine

    Title 18, U.S.C. Sec. 2339B – Providing Material Support to Terrorism

    Maximum penalty: Twenty years in prison and $250,000 fine

    Title 21, U.S.C., Sec. 848(a) -Continuing Criminal Enterprise

    Maximum penalty: Life in prison, mandatory minimum 20 years; $10 million fine

    Title 21, U.S.C., Secs. 952, 959, 960, and 963 – International Conspiracy to Distribute Controlled Substances

    Maximum penalty: Life in prison, mandatory minimum 10 years; $10 million fine

    Title 21, U.S.C., Secs. 841(a)(1) and 846 – Conspiracy to Distribute Controlled Substances

    Maximum penalty: Life in prison, mandatory minimum 10 years in prison; $10 million fine

    Title 21, U.S.C., Secs. 952, 960 and 963 – Conspiracy to Import Controlled Substances

    Maximum penalty: Life in prison, mandatory minimum 10 years; $10 million fine

    Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)

    Maximum penalty: Twenty years in prison and a fine of the greater of $500,000 or twice the value of the monetary instrument or funds involved

    INVESTIGATING AGENCIES

    HSI

    FBI

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

    This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

    The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Russia: IMF Executive Board Concludes 2025 Article IV Consultation with St. Kitts and Nevis

    Source: IMF – News in Russian

    May 13, 2025

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for St. Kitts and Nevis[1] The authorities have consented to the publication of the Staff Report prepared for this consultation.

    Following the post-pandemic rebound, the economy is facing challenges. Real GDP growth moderated to 1.5 percent in 2024, reflecting lower contributions from tourism and government services, while inflation eased to 1 percent. The fiscal deficit increased to 11 percent of GDP in 2024, mainly driven by a sharp decline in Citizenship-by-Investment (CBI) revenue amid recent reforms aimed at strengthening the CBI program. The current account deficit widened due to lower CBI inflows. Meanwhile, credit growth accelerated on the back of pent-up demand, especially in mortgage loans, amid increasing competition. Groundwork is ongoing for a potentially transformative geothermal project.

    In 2025, economic growth is projected to strengthen to 2 percent supported by expanding tourism, while inflation is expected to remain stable.[2] In the medium term, growth is forecast to rise to 2½ percent, benefiting from large energy projects. Nonetheless, fiscal deficits are forecasted to remain high in the medium term, driven by expectations of structurally lower CBI revenue, resulting in public debt exceeding 70 percent of GDP by 2030.

    Near-term risks to growth are tilted to the downside, but progress in fostering renewable energy provides upside potential over the medium term. The uncertainty and volatility of CBI revenue pose a significant two-sided risk, but a further decline in CBI revenue would pressure fiscal accounts. Downside risks include a slowdown in key source markets for tourism, global financial instability, and commodity price volatility. The economy is highly exposed to natural disasters. On the other hand, the energy projects could foster growth and fiscal revenue in the medium term.

    Executive Board Assessment[3]

    Executive Directors welcomed the authorities’ commitment to prudent policy reforms and stressed that the significant challenges the economy is facing require a multipronged approach to address low growth and fiscal sustainability, while safeguarding financial stability and the external position.

    Directors encouraged the authorities to implement a prompt and decisive fiscal consolidation to keep public debt below the regional debt ceiling and reduce reliance on the Citizenship‑by‑Investment Program (CBI). This would create space for capital expenditure, resilience against natural disasters, and contingent liabilities. Directors stressed that fiscal consolidation should be driven by tax revenue mobilization and reductions in current expenditures, anchored by fiscal rules. Greater diversification of funding sources would also help to lengthen debt maturities and lower financing costs. Directors supported the authorities’ plan to establish a Sovereign Wealth Fund to absorb upsides in CBI revenue and called for continuing improvements in the CBI framework, including its transparency. They also welcomed the authorities’ initiatives to implement reforms to improve the sustainability of the Social Security Fund.

    Directors underscored that further progress is needed to strengthen the financial sector, including to reduce NPLs and meet the ECCB’s prudential requirements. They emphasized the importance of continuing to strengthen the balance sheet of the systemic bank and to revitalize its business model. Directors also called for reforms of the Development Bank, building on the authorities’ work in this area. They stressed the need to monitor rapid credit growth and further strengthen the regulation and oversight of credit unions. It will also be important to make additional progress in strengthening the AML/CFT framework.

    Directors emphasized that structural reforms and improved preparedness for natural disasters are crucial to boost potential growth. They stressed that reforms are necessary to enhance the efficiency of government services, improve credit access, and better align labor skills with market demands. Directors noted that accelerating the energy transition would help increase competitiveness. Finally, they underscored the need to enhance the investment and the multi‑layered insurance frameworks to strengthen natural disaster preparedness.

    St. Kitts and Nevis: Selected Economic Indicators 2020-26 1/
       

    Est.

    Proj.

    2020

    2021

    2022

    2023

    2024

    2025

    2026

    (Annual percentage change, unless otherwise specified)

    National income and prices

    Real GDP (market prices) 2/

    -14.6

    -1.7

    10.5

    4.3

    1.5

    2.0

    2.2

    Real GDP (factor cost) 2/

    -13.4

    -1.0

    8.0

    5.0

    4.3

    0.7

    0.5

    Consumer prices, period average

    -1.2

    1.2

    2.7

    3.6

    1.0

    1.7

    2.0

    Real effective exchange rate appreciation (+) (end-of-period)

    -1.0

    -3.1

    -1.4

    -0.7

    -2.4

    …

    …

    Money and credit 3/

    Broad money

    -8.1

    8.9

    3.7

    -1.9

    2.5

    13.5

    8.9

    Change in net foreign assets

    -0.4

    9.1

    -7.0

    -6.4

    -12.8

    -2.3

    -2.0

    Net credit to general government

    -18.4

    -4.8

    4.9

    0.3

    9.3

    10.3

    6.6

    Credit to private sector

    -4.0

    7.7

    5.8

    5.2

    9.8

    8.1

    6.4

    (In percent of GDP)

    Public sector 4/

    Total revenue and grants

    33.5

    46.6

    45.2

    43.0

    31.1

    32.5

    33.2

      o/w Tax revenue

    18.8

    19.0

    18.4

    19.3

    18.7

    18.2

    19.0

      o/w CBI fees

    11.3

    23.4

    25.3

    21.7

    8.1

    9.0

    9.0

    Total expenditure and net lending

    36.5

    41.2

    49.4

    43.3

    41.7

    42.2

    39.8

    Overall balance

    -3.1

    5.4

    -4.2

    -0.3

    -10.6

    -9.8

    -6.6

    Total public debt (end-of-period)

    68.0

    69.1

    60.2

    55.9

    52.2

    61.4

    65.6

    General government deposits

    (percent of GDP) 5/

    21.6

    30.4

    21.6

    20.4

    10.4

    10.3

    9.9

    External sector

    External current account balance

    -10.8

    -3.4

    -11.4

    -11.6

    -15.1

    -13.1

    -12.8

    Trade balance

    -28.0

    -24.8

    -34.7

    -32.8

    -32.7

    -32.3

    -33.3

    Memorandum items

     

     

     

     

    Net international reserves, end-of-period

     

     

     

    (in millions of U.S. dollars)

    365.4

    312.8

    270.3

    262.4

    270.7

    269.0

    267.3

     

     

     

    Nominal GDP at market prices

    (in millions of EC$)

    2,387

    2,318

    2,650

    2,850

    3,017

    3,048

    3,171

    Sources: St. Kitts and Nevis authorities; ECCB; UNDP; World Bank; and IMF staff estimates and projections.

    1/ The staff report projections are based on the information available as of March 27, 2025. Therefore, they do not reflect the impact of trade tensions since April 2, 2025.

    2/ In June 2021, the National Statistics Office revised historical GDP series.

    3/ The series for monetary aggregates have been revised consistent with the 2016 Monetary and Financial Statistics Manual and Compilation Guide.

    4/ Consolidated general government balances. Primary and overall balances are based on above-the-line data.

    5/ Includes only central government deposits at the commercial banks.
                                 

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

    [2] Since the issuance of the Staff Report, economic growth has been marked down, reflecting the impact of trade tensions combined with their effects on global policy uncertainty and global financial conditions, primarily through tourism and FDI (see the Supplement).

    [3] At the conclusion of the discussion, the Managing Director, as Chair of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Rosa Hernandez Gomez

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

    https://www.imf.org/en/News/Articles/2025/05/12/pr-25139-st-kitts-and-nevis-imf-executive-board-concludes-2025-article-iv-consultation

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Security: Elementary Teacher Indicted in Austin for Alleged Possession of Child Sexual Abuse Material

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    AUSTIN, Texas – A federal grand jury in Austin returned an indictment today charging an Austin man, who was employed as a fifth grade teacher in the city, with two counts related to his alleged receipt and possession of child pornography.

    According to an affidavit filed in the court documents, Carl David Innmon, 50, allegedly downloaded multiple batches of downloads via BitTorrent between Dec. 29, 2024 and Jan. 15, 2025. The alleged downloads contained a total of 126 files that depict an image of a child engaging in sexual conduct or sexual performance. The children in three of the downloaded files, the affidavit alleges, include an infant and two girls between the ages of four and seven.

    Based on the investigation, a search warrant was conducted on Innmon’s residence, leading to the seizure of a smartphone, a laptop and a portable hard drive. A forensic analysis of these items cumulatively revealed 365,797 files of Child Sexual Abuse Material.

    Innmon is charged with one count of possession of child pornography and one count of receipt of child pornography. If convicted, he faces up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The affidavit also alleges that Innmon was in possession of artificial intelligence generated child pornography, and that his devices contained a large quantity of real images depicting students in a classroom. Some of those images were allegedly placed in an AI generator, de-clothing the students. With assistance from the Austin Independent School District and AISD Police, a Texas Department of Public Safety (TX DPS) Criminal Investigations Division (CID) Special Agent was able to positively identify the students depicted in the images and their ages. The children were allegedly identified as students of Innmon’s.

    Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.

    The FBI and TX DPS CID are investigating the case.

    Assistant U.S. Attorney Grant Sparks is prosecuting the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

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

    ###

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office Filed 176 Border-Related Cases

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    SAN DIEGO – Federal prosecutors in the Southern District of California filed 176 border-related cases this week, including charges of assault on a federal officer, bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.

    The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

    In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

    A sample of border-related arrests this week:

    • On May 8, Ismael Castro-Gonzalez, a Mexican national, was arrested and charged with Assault on a Federal Officer and Attempted Entry of a Removed Alien. According to a complaint, two Border Patrol agents were attacked by Castro and others when they attempted to rescue Castro, who was hanging from barbed wire on the border wall with a broken ladder nearby. The agents were pelted with rocks by other immigrants, including one who was sitting atop the wall. One agent grabbed Castro’s right hand and forced him to release the wire. Once he broke Castro’s grip, the agent was able to pull Castro from the wire and take him to the ground, where Castro continued to struggle and attempted to tackle the agent. As they fell to the ground, Castro started reaching for the agent’s gun and collapsible steel baton.  The two agents were able to subdue Castro and arrest him. Castro was previously deported to Mexico on June 29, 2022, through the San Ysidro Port of Entry.
    • On May 6, Rosa Cervantez, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Cervantez attempted to cross the border in the SENTRI lane at the Calexico West Port of Entry but a Customs and Border Protection officer discovered 36 plastic-wrapped packages hidden in a spare tire well of her car containing 85 pounds of fentanyl and more than 2 pounds of cocaine.
    • On May 7, Salvador Hernandez, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Hernandez attempted to smuggle three pounds of methamphetamine through the pedestrian lanes of the Otay Mesa Port of Entry. Customs and Border Protection officers found three packages concealed in Hernandez’s waistline secured with Saran Wrap.
    • On May 7, Jose Tomas Lopez-Navarro of Honduras was arrested and charged with Attempted Entry after Deportation. According to a complaint, Lopez-Navarro submitted a counterfeit passport to a Customs and Border Patrol officer when asking to be admitted to the U.S. at the San Ysidro Pedestrian East Port of Entry. Lopez-Navarro had been previously removed from the U.S. to Honduras on February 4, 2025.

    Also recently, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are a few of those cases:

    • On April 30, Abner Leon-Mote, a Mexican national who was previously convicted of felony Assault with a Deadly Weapon in April 2018, was found guilty by a jury of Attempted Reentry of Removed Alien for again entering the U.S. illegally. Sentencing is scheduled for July 29, 2025 and Leon-Mote faces a maximum sentence of 20 years in prison.
    • On May 5, Omar Laveaga-Flores, a Mexican national who was previously convicted of an illegal entry offense in Arizona in 2022, was sentenced in federal court to 60 days in custody for again entering the U.S illegally.
    • On May 8, Juan Melgoza-Soto and Santiago Alfredo Gonzalez Hara, previously removed Mexican nationals, were sentenced in federal court to 73 days in custody for bringing an undocumented alien into the United States from Mexico.
    • On May 9, Martin Josue Gutierrez, a U.S. citizen, was sentenced to six months in custody for Transportation of Certain Aliens. The defendant had seven undocumented individuals in a truck, including several under a tarp in the bed of the truck, and failed to yield during an attempted vehicle stop by law enforcement.

    Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

    The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

    Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: Former State Employee Pleads Guilty to Unemployment Insurance Fraud Scheme

    Source: Federal Bureau of Investigation (FBI) State Crime News

    DETROIT – A Southfield woman pleaded guilty to stealing over $250,000 as part of an extensive unemployment fraud and identity theft conspiracy while working for the State of Michigan Unemployment Insurance Agency, announced United States Attorney Jerome F. Gorgon Jr.

    Joining in the announcement were Joseph Cuffari, Inspector General, Department of Homeland Security—Office of Inspector General; Megan Howell, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor-Office of Inspector General; Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation; and Jason Palmer, Director of the State of Michigan Unemployment Insurance Agency

    Timeka Johnson, 43, pleaded guilty before United States District Judge Stephen J. Murphy, III.

    Johnson was an employee for the State of Michigan Unemployment Insurance Agency (MUIA). Her duties included reviewing, processing, and verifying the legitimacy of unemployment insurance claims.

    According to court records, Johnson used her insider access to fraudulently process claims in the names of third parties. As part of the scheme, Johnson personally:

    • accessed third-party unemployment insurance assistance claim information without authorization;
    • dismissed and improperly closed fraud prevention triggers and information requests relating to third-party unemployment insurance assistance;
    • uploaded false and fraudulent documentation to support illegitimate unemployment insurance assistance claims, including false and fraudulent personal identifying information in the names of third parties;
    • falsely and fraudulently certified the entitlement of third-party claims as being eligible to receive unemployment insurance assistance funds;
    • caused at least one other Michigan Unemployment Insurance Agency employee to fraudulently access and alter third-party unemployment insurance assistance claim information for Johnson’s benefit in exchange for financial compensation from Johnson;
    • caused unauthorized debit cards to be issued in the names of third-party unemployment insurance assistance claimants;
    • caused improper payments to be issued in connection with unemployment insurance assistance claims; and
    • conducted unauthorized cash withdrawals of unemployment insurance assistance issued in the name of a third party.

    As a result of the conspiracy, over $250,000 in fraudulent unemployment assistance payments were made by the State of Michigan.

    Sentencing is set for August 19, 2025 before Judge Murphy. Johnson faces a mandatory two-year sentence of imprisonment for having engaged in aggravated identity theft. She also faces up to 20 years in prison for having conspired to engage in wire fraud.

    “Timeka Johnson abused her position of trust to steal from hard-working American taxpayers. In doing so, she also made it more difficult for legitimate claimants to receive unemployment insurance assistance to which they are entitled. My office is committed to aggressively prosecuting government employees who use their positions to illicitly enrich themselves rather than serve the public,” stated U.S. Attorney Gorgon.

    “Former Michigan Unemployment Insurance Agency employee Timeka Johnson engaged in an unemployment insurance (UI) fraud scheme by facilitating the approval of UI claims filed in the names of identity theft victims who were not entitled to such benefits.  Johnson abused her position by misusing her access to sensitive employment information and state data systems for her own personal financial gain. We will continue to work with our law enforcement partners to investigate those who seek to exploit this critical benefit program, particularly when an insider threat is involved,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

    “The guilty plea of Timeka Johnson, a former employee of the State of Michigan’s Unemployment Insurance Agency, represents a serious betrayal of public trust,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI Detroit Field Office. “By abusing her position, she exploited a critical safety net relied upon by countless residents of Michigan. Let this serve as a warning: those who attempt to defraud public assistance programs will face a determined and coordinated response from law enforcement. I want to thank the FBI Detroit Area Public Corruption Task Force, our partners at the Department of Homeland Security Office of Inspector General, the Department of Labor Office of Inspector General, and the State of Michigan Unemployment Insurance Agency. The FBI is committed to protecting public resources and holding accountable those who undermine them.”

    “It is unacceptable when the person stealing taxpayer money is someone within UIA who is entrusted to faithfully safeguard taxpayer money meant for those who find themselves out of a job,” said Jason Palmer, Director of the Michigan Unemployment Insurance Agency. “UIA will aggressively pursue every fraudster, including insiders, who saw an opportunity to steal for their own financial gain. We work closely with our legal partners to make sure every fraudster faces the consequences of their shameful schemes.”

    The case is being prosecuted by Assistant United States Attorney Andrew J. Yahkind. The investigation is being conducted jointly by the Department of Homeland Security—Office of Inspector General, Department of Labor—Office of Inspector General, the Federal Bureau of Investigation, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity

    MIL Security OSI –

  • MIL-OSI Security: Detroit Man Sentenced to 15 Years in Prison for Sexual Exploitation of Children

    Source: Federal Bureau of Investigation (FBI) State Crime News

    DETROIT – A Farmington, Michigan man was sentenced this week to 15 years in prison for sexually exploiting multiple children, United States Attorney Jerome F. Gorgon Jr. announced today.

    Gorgon was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

    Evan Mercer, 31, of Farmington, Michigan, was sentenced by United States District Judge Terrence G. Berg. Mercer pleaded guilty to sexual exploitation of children after he chatted with multiple minors online and recorded images of them nude and in sexually explicit positions. The youngest victim appears to have been just seven years old. Mercer contacted her in September 2023 and recorded a video of her exposing herself to a web camera. He solicited nude images from at least two other minors. Mercer’s crimes came to light after a witness came forward to law enforcement after discovering the videos Mercer had produced. Authorities located and Mercer’s electronic devices, finding the evidence of his crimes.

    “This defendant solicited multiple children online and exploited their youth, naivete, and vulnerability to create sexual exploitative images of his victims. We are thankful to the brave witness who came forward to alert authorities of his crimes, and to the law enforcement who collected that evidence and ensured this offender was brought to justice,” U.S. Attorney Gorgon said.

    “Evan Mercer’s sentencing underscores the FBI’s steadfast commitment to seeking justice for victims of child exploitation and to protecting our most vulnerable population,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Mr. Mercer’s inexcusable actions against minors, as well as any other offenders, will not be tolerated. I commend the dedicated efforts of our Oakland County Resident Agency members, and our law enforcement partners at the Ferndale Police Department. I also want to thank the U.S. Attorney’s Office for the Eastern District of Michigan, whose contributions were vital in concluding this case. We remain fully committed to collaborating with our community and law enforcement allies to identify, investigate, and bring to justice those who pose a threat to our children.”

    “This case was investigated by special agents of the FBI Oakland County Resident Agency and was prosecuted by Assistant United States Attorneys Diane Princ, Nhan Ho, and Tara Hindelang.  

    MIL Security OSI –

  • MIL-OSI Security: Memphis Men Sentenced to Federal Imprisonment for Participation in 2021 Business Robbery

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Memphis, TN – Three Memphis men have been sentenced to a total of over 30 years in federal prison after being convicted of a business robbery that occurred in the fall of 2021. Joseph C. Murphy, Jr., Interim United States Attorney for the Western District of Tennessee, announced the sentences today.

    According to the information presented in court, Anthony Lewis, 36, Kyle Walker, 22, and Aramis Smith, 34, participated in an armed robbery in the early morning of November 10, 2021.  Walker and Lewis entered a gas station on Summer Avenue in Memphis, while Smith waited outside in the getaway car.  Walker and Lewis approached the lone clerk as she was stocking the shelves. Walker grabbed her and brandished a firearm as he made threats and pushed her to the registers.  Lewis moved to the doorway and stood as a lookout as Walker forced the clerk to empty the register.  The trio fled with approximately $100.  

    Unbeknownst to the robbers, a good Samaritan saw the robbery in progress, called 911 and provided a description of the getaway vehicle.  Dispatchers relayed the robbery in progress call to Memphis Police Department officers; and undercover officers with the Violent Crime Unit (VCU) observed the suspect vehicle fleeing the scene.  VCU officers followed the suspect vehicle on I-240 as they coordinated additional units to arrive and make a traffic stop. When marked units were in place, officers attempted to stop the suspect vehicle with lights and sirens; but the vehicle fled.  Ultimately, the suspect vehicle wrecked on the off-ramp immediately before the Hernando DeSoto Bridge; and officers engaged in a brief foot pursuit with two of the suspects before they were all taken into custody.

    All three men pled guilty to one count of business robbery. Walker and Lewis also pled guilty to one count of aiding and abetting the brandishing of a firearm during a crime of violence.   

    Senior United States District Court Judge John T. Fowlkes, Jr. sentenced Walker to 125 months of imprisonment on August 31, 2023, and Smith to 120 months of imprisonment on February 21, 2024.  Lewis was sentenced to 147 months on May 1, 2025 by United States Court of Appeals for the Sixth Circuit Judge Andre B. Mathis.  Additionally, on May 8, 2025, Judge Fowlkes sentenced Lewis to an additional 24 months in federal prison as a result of his Supervised Release Violation based on this case and a prior federal conviction.   There is no parole in the federal system.

    The Federal Bureau of Investigation’s Safe Streets Task Force and the Memphis Police Department investigated this case.

    Assistant United States Attorneys Greg Wagner and Lynn Crum prosecuted this case on behalf of the government.  Former Assistant United States Attorney Courtney Lewis also assisted in prosecuting this case on behalf of the United States.

    ###

    For more information, please contact the media relations team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.

    MIL Security OSI –

  • MIL-OSI USA: Sacramento breaks ground on project to transform underutilized state land into affordable housing community

    Source: US State of California 2

    May 13, 2025

    What you need to know: Sacramento’s Monarch housing project is the latest affordable housing site brought to fruition under Governor Newsom’s executive order to develop excess and underutilized state lands into affordable new homes.

    SACRAMENTO — Governor Gavin Newsom today announced the groundbreaking of Monarch in Sacramento – the city’s third affordable housing community created on excess state land. The Monarch community will transform a former state-owned storage warehouse into 241 homes for low- to extremely low-income Sacramentans and is made possible by Governor Newsom’s executive order to identify and prioritize underutilized state property for clean, innovative, and cost-effective housing.

    “Today’s groundbreaking in Sacramento illustrates the life-altering possibilities of converting excess and underutilized state lands into thriving local communities. With 32 housing developments currently awarded, California’s Excess Sites program provides the innovative boost needed to help alleviate the state’s affordable housing shortage.”

    Governor Gavin Newsom

    First-in-the-nation program

    Governor Newsom’s Excess Sites Program was the first housing initiative nationwide to release all state land identified as suitable and available for affordable housing development.

    The Department of General Services (DGS) and the California Department of Housing and Community Development (HCD) partner to administer the Excess Sites Program, identifying state-owned land available and suitable for housing, and making a public digital inventory of these properties. In February 2025, Governor Newsom revamped and streamlined the Excess Sites Program by announcing a Developer Interest Submission Portal, making it easier for developers to submit proposals on state excess sites projects – improving the speed and efficiency with which state land is leased for affordable housing.

    “Thanks to California’s Excess Sites Program, 20 previously under-utilized state properties will soon be transformed into 4,300 housing units, including the 241 homes at the Monarch,” said Business, Consumer Services and Housing Agency Secretary Tomiquia Moss. “Through continued investments in the Excess Sites program, the state is encouraging infill development, building affordable homes, and promoting healthier communities for future generations of Californians.”

    About the project

    Monarch will bring much-needed affordable housing to a vibrant and growing mixed-use neighborhood in close proximity to transit, parks, restaurants, and shopping. 20 units will be reserved for people exiting or at risk of homelessness, with supportive services provided by Lutheran Social Services. 

    Rendering of the Monarch housing development

    “Monarch will ensure a safe haven for hundreds of Sacramentans whose access to secure housing is especially needed,” said Government Operations Agency Secretary Nick Maduros. “A stable home and proximity to amenities will allow Monarch’s residents to thrive and contribute to the renaissance taking place in this area of downtown.”

    Monarch will include 3,428 square feet of retail space, 264 secured bicycle parking spaces, and 33 vehicle parking spots.

    “Projects like Monarch are helping to breathe new life into city centers,” said HCD Director Gustavo Velasquez. “It is extremely gratifying to help make the Governor’s vision for state lands a reality, as properties that are not needed for a government purpose can advance the greater good of making affordable housing available in high-resource areas that connect Californians to opportunity and community.” 

    Monarch received $10 million in funding from HCD’s Local Government Matching Grant program to match the $3.3 million in funding from the City of Sacramento, waived impact fees from the City and County of Sacramento, and an $8 million gap loan from CADA, one of the site’s developers. Another $4 million was contributed by the California Housing Finance Agency through its Mixed-Income Program. The community is expected to welcome residents in the Spring of 2027.

    “This is yet another significant partnership between DGS and CADA to create an affordable housing project here in Sacramento under the Governor’s Executive Order,” said DGS Director Ana M. Lasso. “It is so inspiring to see excess state-owned property repurposed to create living spaces that strengthen the local community here in the capital city.”

    Since Governor Newsom launched the Excess Sites Program through his executive order, 32 housing development projects have been awarded totaling 4,300 homes in various phases of development. This pipeline includes 234 homes that are already constructed and occupied with another 424 homes currently under construction. 

    Transforming underutilized state land

    In 2019, Governor Gavin Newsom issued an executive order calling on HCD and DGS to address the state’s affordable housing crisis by identifying underutilized state-owned sites for the development of affordable housing, taking into account factors such as proximity to job centers, amenities, and public transit. The order has since been utilized to create hundreds of affordable homes, including:

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    News Sacramento, California – Governor Gavin Newsom today issued a proclamation declaring May 2025 as “Older Californians Month.”The text of the proclamation and a copy can be found below: PROCLAMATIONCalifornia is home to nearly nine million older residents who…

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  • MIL-OSI Russia: IMF Executive Board Concludes 2025 Article IV Consultation with Costa Rica

    Source: IMF – News in Russian

    May 13, 2025

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for Costa Rica on May 12, 2025. [1]

    Costa Rica has achieved remarkable economic progress due to its very strong fundamentals, policies, and policy frameworks. GDP growth has averaged above 5 percent per year since 2021, inflation is rising toward the Banco Central de Costa Rica’s (BCCR) target of 3 percent, public debt has fallen steadily to below 60 percent of GDP, international reserves are at comfortable levels, and systemic financial stability risks are contained.

    Such factors are expected to support robust growth going forward notwithstanding external headwinds. This year, growth is expected to moderate to around potential (3½ percent) and the current account deficit is expected to increase slightly to 1.8 percent of GDP, while the primary surplus is expected to rise to 1¼ percent of GDP as fiscal consolidation continues. Inflation is expected to return to the BCCR’s target in 2026.

    Risks to the growth outlook have tilted to the downside while those for inflation are balanced. Weaker external demand, tighter global financial conditions, and increased policy uncertainty could reduce Costa Rica’s exports, foreign direct investment (FDI) inflows, and economic activity, but the country’s strategic location, high-value exports and economic diversification could drive continued strong growth momentum. Upside risks to inflation include strong credit growth and supply-side disruptions, but there are also downside risks, especially if inflation expectations soften.

    Executive Board Assessment[2]

    Executive Directors commended Costa Rica’s remarkable economic progress based on its very strong fundamentals, policies, and policy frameworks. Directors welcomed the authorities’ very strong implementation of macroeconomic policies, wide‑ranging reforms in the process of becoming an OECD member, the successful completion of IMF‑supported programs, and a strategic focus on exports and economic diversification. They praised the authorities’ commitment to continued prudent policies and structural reforms to maintain resilience amid heightened external uncertainty.

    Directors welcomed the sustained decline of public debt. They stressed that the medium‑term fiscal consolidation is appropriately paced but will require spending to be kept below the ceiling permitted by the fiscal rule. Directors concurred that tax reforms should aim to increase equity, efficiency, and the revenue‑to‑GDP ratio. They stressed the importance of full implementation of the public employment law by all public institutions without delay. The disputed claim by the social security system should also be resolved comprehensively, including by clarifying the central government budget’s responsibility, coupled with improvements in the registries of beneficiaries and the system’s governance and accountability. Directors also supported reforms to debt management to increase flexibility in issuing external debt.

    Directors commended BCCR’s forward‑looking data‑dependent approach to monetary policy, which has proven effective. They concurred that there is scope to cut the policy rate if the convergence of inflation to the BCCR’s target weakens in the coming months. They also underscored the importance of passing legislation to further improve the BCCR’s governance, transparency, and accountability, and to institutionalize its de facto autonomy. Directors recommended that the exchange rate should be allowed to flexibly adjust to market conditions, limiting foreign exchange intervention to addressing market volatility.

    Directors stressed that indicators of financial soundness remain comfortable, yet the resolution of small non‑bank financial institutions last year highlights the importance of a very strong supervisory and crisis management framework. They underscored the importance of passing the proposed amendments to the bank resolution and deposit insurance law. Directors also called for close monitoring of risks related to the rise in FX lending.

    Directors welcomed the authorities’ efforts to advance supply‑side reforms to help sustain Costa Rica’s impressive economic performance. Reducing skills mismatches, enhancing infrastructure quality, and implementing legislation on public‑private partnerships would further strengthen potential growth. Better integrating climate considerations into public investment decisions will make infrastructure more resilient against natural disasters.


    Costa Rica: Selected Economic Indicators

    Projections

    2022

    2023

    2024

    2025

    2026

    2027

    2028

    Output and Prices

    (Annual percentage change)

    Real GDP

    4.6

    5.1

    4.3

    3.4

    3.4

    3.5

    3.5

    GDP deflator

    6.3

    -0.1

    0.0

    3.0

    3.2

    3.2

    3.2

    Consumer prices (period average)

    8.3

    0.5

    -0.4

    2.2

    3.0

    3.0

    3.0

    Savings and Investment

    (In percent of GDP, unless otherwise indicated)

    Gross domestic saving

    14.4

    13.8

    14.3

    13.8

    13.5

    14.1

    14.4

    Gross domestic investment

    17.7

    15.3

    15.7

    15.6

    15.4

    15.7

    16.0

    External Sector

    Current account balance

    -3.3

    -1.4

    -1.4

    -1.8

    -1.9

    -1.6

    -1.5

    Trade balance

    -6.7

    -3.7

    -2.6

    -3.4

    -4.0

    -3.7

    -3.9

    Financial account balance

    -1.9

    -0.7

    -0.8

    -1.8

    -1.9

    -1.6

    -1.5

    Foreign direct investment, net

    -4.4

    -4.3

    -4.5

    -4.1

    -4.0

    -4.1

    -4.3

    Gross international reserves (millions of U.S. dollars)

    8,724

    13,261

    14,181

    14,932

    15,792

    16,485

    17,301

    External debt

    50.7

    43.3

    42.0

    42.1

    43.3

    44.0

    44.4

    Public Finances

    Central government primary balance

    2.1

    1.6

    1.1

    1.3

    1.5

    1.6

    1.6

    Central government overall balance

    -2.8

    -3.3

    -3.8

    -3.2

    -2.8

    -2.5

    -2.3

    Central government debt

    63.0

    61.1

    59.8

    59.7

    59.0

    57.9

    56.7

    Money and Credit

    Credit to the private sector (percent change)

    3.3

    1.9

    6.2

    6.4

    6.5

    6.6

    6.6

    Monetary base 1

    8.0

    7.9

    8.3

    8.3

    8.3

    8.2

    8.2

    Broad money

    47.5

    47.4

    51.3

    50.5

    50.9

    51.5

    52.3

    Memorandum Items

    Nominal GDP (billions of colones)

    44,810

    47,059

    49,116

    52,307

    55,830

    59,647

    63,720

    Output gap (as percent of potential GDP)

    -0.3

    1.0

    0.6

    0.4

    0.2

    0.1

    0.0

    GDP per capita (US$)

    13,240

    16,390

    17,909

    19,095

    20,036

    21,057

    22,138

    Unemployment rate

    11.7

    7.3

    6.9

    7.5

    8.0

    8.5

    8.5

    Sources: Central Bank of Costa Rica, and Fund staff estimates.

    1 Includes currency issued and required domestic reserves.

    [1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board .

    [2] At the conclusion of the discussion, the Managing Director, as Chair of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm .

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Meera Louis

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

    https://www.imf.org/en/News/Articles/2025/05/13/pr25142-costa-rica-imf-executive-board-concludes-2025-article-iv-consultation

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  • MIL-OSI Russia: IMF Staff Completes 2025 Post-Financing Assessment Mission to Angola

    Source: IMF – News in Russian

    May 13, 2025

    End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.

    • Angola’s economic growth for 2024 was strong, but the outlook has deteriorated posing risks.
    • Staff and authorities had a productive engagement on managing emerging risks and identifying mitigation measures.
    • Angola’s Post-Financing Assessment is expected to be discussed at the Executive Board of the International Monetary Fund (IMF) in July 2025.

    Luanda, Angola: An IMF team lead by Ms. Mika Saito visited Luanda between May 6-12 to conduct Angola’s 2025 post-financing assessment (PFA).[1] Angola’s economy experienced a robust recovery in 2024 driven both by stronger oil production and a rebound in the non-oil sector. Real GDP growth reached 4.4 percent, surpassing earlier projections. While inflation remains elevated, inflationary pressures also eased somewhat in the first few months of 2025. The outlook has, however, deteriorated significantly compared to the 2024 Article IV consultation, reflecting a fall in oil prices and tighter external financing conditions. As a result, the preliminary growth projection for 2025 has been revised down to 2.4 percent from 3 percent in the 2024 Article IV consultation, while inflation is expected to continue its gradual decline. This downward revision to the outlook also poses risks to fiscal performance. Staff was reassured by authorities’ strong resolve in containing emerging risks and in identifying mitigating measures critical to preserve macroeconomic stability and debt sustainability, while protecting the most vulnerable and growth momentum. The IMF team thanks the authorities for their productive engagement and hospitality. Angola’s 2025 PFA is expected to be discussed at the IMF Executive Board in July 2025.

    [1] A Post Financing Assessment (PFA)1 is expected for countries with outstanding credit above the absolute or quota-based thresholds that do not have an IMF-supported program or a staff-monitored program. It reports on the member’s policies, the consistency of the macroeconomic framework with the objective of medium-term viability and the implications for the member’s capacity to repay the Fund.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Tatiana Mossot

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

    https://www.imf.org/en/News/Articles/2025/05/13/pr-25143-angola-imf-staff-completes-2025-post-financing-assessment-mission

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  • MIL-OSI USA: ICYMI: Secretary Chavez-DeRemer joins Anheuser-Busch, McDonald’s to celebrate major investments in American workers

    Source: US Department of Labor

    COLUMBUS, OH – U.S. Secretary of Labor Lori Chavez-DeRemer visited Columbus Monday to highlight significant investments by Anheuser-Busch and McDonald’s aimed at bolstering manufacturing and workforce development in the United States. The announcements come as President Trump continues fighting to revitalize the economy by reducing America’s $1.2 trillion trade deficit and creating jobs in critical industries that have been left behind, including manufacturing.

    Anheuser-Busch

    During a press conference Monday morning, Anheuser-Busch announced a $300 million manufacturing investment through its “Brewing Futures” initiative. A key component of this investment is a new regional Technical Excellence Center in Columbus, expanding a successful program that has advanced skills training for more than 1,200 employees since 2022.

    “Anheuser-Busch is demonstrating exactly what it means to put American workers first,” Secretary Chavez-DeRemer said. “They have been a shining example of what ‘Made in America’ means, and their latest investment of $300 million builds on a longtime commitment to grow our workforce and expand U.S. manufacturing.”

    Learn more about the announcement on Anheuser-Busch’s website.

    McDonald’s

    The Secretary joined McDonald’s USA President Joe Erlinger to mark a milestone at a restaurant in Lewis Center, celebrating the 10-year anniversary of the company’s Archways to Opportunity educational program. Over the past decade, the program has created opportunities for over 90,000 restaurant crew members – helping them through high school, pay for college, and  more by providing over $240 million in tuition assistance.

    Additionally, McDonald’s and its franchisees announced a pledge to hire up to 375,000 workers for the summer, adding to their existing team of nearly 800,000. The company currently has more than 14,000 locations nationwide and touts a total GDP impact of $76 billion.

    “Investments and milestones like these add momentum to our job market and help create a more capable workforce,” Chavez-DeRemer said. “I would like to thank Joe and his entire team for empowering franchisees, supporting our workers, and investing in America. It’s an honor to celebrate an occasion that is sure to bring great success for our economy and the American worker.”

    Watch the full press conference. 

    Union Roundtable

    Secretary Chavez-DeRemer also stopped by Central Midwest Regional Council of Carpenters’ Columbus facility, where she met students and held a roundtable discussion with building trades and first responder unions. 

    The group talked about President Trump’s executive orders on artificial intelligence and apprenticeships, OSHA safety standards, deregulation to drive economic growth, and police recruitment. Central Midwest Carpenters have around 2,300 apprentices in Ohio and are involved in over 200 schools.

    MIL OSI USA News –

  • MIL-Evening Report: The pay equity puzzle: can we compare effort, skill and risk between different industries?

    Source: The Conversation (Au and NZ) – By Gemma Piercy, Lecturer, Sociology, Social Policy and Criminology, University of Waikato

    Getty Images

    Last week’s move by the government to amend pay equity laws, using parliamentary urgency to rush the reforms through, caught opposition parties and New Zealanders off guard.

    Protests against the Equal Pay Amendment Bill have continued into this week, driven to some extent by disappointment that an apparent political consensus on the issue has broken down.

    In 2017, the National-led government passed a forerunner to the current legislation for the health sector only, the Care and Support Workers (Pay Equity) Settlement Act. Later, in opposition, National also supported the Labour government’s Equal Pay Act in 2018, as well as the Equal Pay Amendment Act in 2020.

    That legislation was designed to extend a pay equity process to all occupations and create a clearer pathway for making pay equity claims. With both major parties seemingly aligned, some 33 pay equity claims were under way.

    Those claims – all halted now – involve the education, health and social services sectors. As such, the government would have to meet the costs of successful claims.

    This explains why one rationale for the law change has been that the claims were potentially too expensive. The other rationale (preferred by Finance Minister Nicola Willis and Workplace Relations Minister Brooke van Velden) is that the existing policy wasn’t sufficiently rigorous in determining the validity of some claims.

    In reality, both the cost and the policy framework allowing equity claims to proceed are interrelated: the more permissive the framework, the higher the potential cost to the government and employers.

    But while equal pay for equal work is the goal, it’s important to understand that equal pay and pay equity are not the same thing.

    Equal pay is about making sure men and women are paid at the same rate in a specific occupation.

    Pay equity, on the other hand, involves a more complex process. It aims to establish pay relativities between famale-dominated industries and other sectors using specific criteria. And herein lies the core of the argument.

    Comparing different work sectors

    According to van Velden, the framework for comparing different kinds of work was too loose, or simply not realistic:

    You have librarians who’ve been comparing themselves to transport engineers. We have admin and clerical staff […] comparing themselves to mechanical engineers. We don’t believe we have that setting right.

    On the surface, this may seem logical. And previous policy advice provided to the government suggests the recent law change will move New Zealand’s framework into line with other countries.

    But using a proxy method of comparison between types of work in different industries or sectors remains central to any pay equity claim.

    That’s because pay equity seeks to make visible and fix the deep, structural inequalities that have historically seen women’s work undervalued compared to men’s work. It’s about ensuring jobs that are different but of equal value are paid similarly, as a way to achieve gender equality.

    Women’s employment is still concentrated in lower-paying industries and occupations, so comparisons have to be made with other sectors.

    The factors used to measure that relativity are known as “comparators”. Rather than using tools developed and tested under the previous legislation, the new system will introduce “a hierarchy of comparators”, with a preference for comparators to be chosen within the same industry or occupation making the pay equity claim.

    Comparators are selected to help compare the nature of different kinds of work in male-dominated and female-dominated industries. This is based on an assessment of skills, experience and qualifications, level of responsibilities, types of working conditions and degree of effort.

    The assessment is completed through in-depth interviews with workers in comparison occupations. It uses resources such as Employment New Zealand’s skills recognition tool to evaluate the validity of those comparators.

    Different kinds of cost

    The subjective nature of valuing different kinds of work is part of the problem, of course. But New Zealand research shows only part of the gender pay gap can be attributed to objectively measurable pay differences within specific industries. Pay equity is about addressing both the objective and subjective elements contributing to that gap.

    We’ll need to carefully monitor the new system to see whether its narrower comparator requirements affect its capacity to close the gender pay gap.

    Treasury’s concerns also need to be considered. The former budget allocation of NZ$17 billion over four years suggests the costs of settling pay equity claims may be considerable.

    On the other hand, they may be bearable. Last year in the United Kingdom, for example, Birmingham City Council was effectively bankrupt and feared pay equity claims might be a final straw. In the end, the costs were not as high as initially anticipated.

    Finally, focusing exclusively on reducing fiscal cost risks other costs rising instead. Women who are paid less than they should be will struggle to put food on the table, pay back student loans, get onto the property ladder, contribute to Kiwisaver and afford their retirement.

    Without pay equity, in other words, there is less economic activity in general.

    Gemma Piercy received funding from the Pay Equity Unit (2004-2009), part of the former Department of Labour, now Ministry of Business, Innovation and Employment.

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

    – ref. The pay equity puzzle: can we compare effort, skill and risk between different industries? – https://theconversation.com/the-pay-equity-puzzle-can-we-compare-effort-skill-and-risk-between-different-industries-256464

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  • MIL-OSI USA: US Army specialist from Puerto Rico arrested for child exploitation

    Source: US Immigration and Customs Enforcement

    PONCE, Puerto Rico — A U.S. Army specialist from Ponce was arrested on criminal charges related to his alleged child exploitation conduct. Special agents with U.S. Immigration and Customs Enforcement arrested 24-year-old Derek Orengo Delgado May 8.

    A federal grand jury indicted Orengo Delgado May 7 with five counts for coercion and enticement of a minor, transportation of a minor to engage in criminal sexual activity, sexual exploitation of children, receipt of child exploitation material, and transfer of obscene material to a minor.

    According to court documents, on or about January 2025, Orengo Delgado used a cellphone, online instant messaging services and social media to knowingly persuade, induce, entice, and coerce a 15-year-old female minor to engage in sexual activity and to produce a visual depiction of such conduct.

    From Jan. 11 to Jan. 12, Orengo Delgado knowingly transported a 15-year-old female minor with the intent of engaging in sexual activity. During the same period, Orengo Delgado used his computer to produce and transmit the sexually explicit conduct and knowingly received child pornography. He also used an electronic device to transfer obscene material to an individual who had not attained the age of 16 years.

    “No child should be deceived by a public servant whose pledge is to defend and protect with honor and integrity,” said ICE Homeland Security Investigations San Juan Special Agent in Charge Rebecca González-Ramos. “This individual does not represent the honorable members of the U.S. Army. This case underscores the importance of zero-tolerance approach toward crimes against children. Our HSI agents are relentless and will continue to work with law enforcement partners to identify and prevent child exploitation in Puerto Rico.”

    Timothy Henwood, chief of the Criminal Division, and Assistant U.S. Attorney Jenifer Hernández-Vega, chief of the Crimes Against Children, Human Trafficking and Immigration Unit, are prosecuting the case.

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

    For more information about HSI’s efforts to protect children from sexual predators, visit Know2Protect.gov. To report suspicious activities, call 787-729-6969 or send an email to IntelHSISanJuan@hsi.dhs.gov.

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