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  • MIL-OSI USA: Rep. Dan Goldman Joins Councilmembers Erik Bottcher, Lynn Schulman, and Community Advocates to Introduce Legislation Strengthening Medicaid for People Living With Serious Mental Illness

    Source: US Congressman Dan Goldman (NY-10)

     

     ‘Strengthening Medicaid for Serious Mental Illness Act’ Incentivizes State Support for Those with Serious Mental Illness 

     

    Over One-Third of Individuals with Serious Mental Illness Do Not Receive Any Form of Mental Health Treatment 

     

    Read Bill Text Here 

     

    See Pictures and Video from Press Conference Here 

    New York, NY – Congressman Dan Goldman (NY-10) was joined by Council Members Erik Bottcher,  Health Committee Chair Lynn Schulman, and mental health advocates in reintroducing the ‘Strengthening Medicaid for Serious Mental Illness Act’ today, which would support individuals living with serious mental illnesses (SMI) such as schizophrenia, bipolar illness, and major depressive disorder. Council Member Erik Bottcher will introduce a Council Resolution in support of the federal bill putting on record the New York City Council’s support for its passage.  

    “The mental health crisis in America demands urgent action, resources, and federal support to ensure every American can access the care they need,” Congressman Dan Goldman said. “Mental health care has been overlooked and underfunded for decades, and this legislation takes a critical step forward by providing millions of Americans living with severe mental illness access to lifesaving treatment and support by expanding Medicaid services for our most vulnerable. We have an obligation to guarantee adequate care for every one of our neighbors.’ 

    Council Member Erik Bottcher said, “The Strengthening Medicaid for Serious Mental Illness Act is a critical step in tackling the nationwide mental health crisis. This legislation expands Medicaid to cover much-needed community-based mental health services and incentivizes states to meet higher standards of care. As we mark Mental Health Awareness Month, there is no better time to ensure these life-saving services are affordable and accessible to everyone who needs them. I’m proud to sponsor a City Council resolution supporting this bill, and I thank Congressman Dan Goldman for his leadership on this critical issue.” 

    Council Member Lynn Schulman, Chair of the Committee on Health, said, “Access to quality mental health care is a fundamental right, and we must do everything we can to support those living with serious mental illness. Strengthening Medicaid to ensure comprehensive care is essential for our communities, especially for the most vulnerable among us. I am proud to support Congressman Dan Goldman and Senator Gillibrand’s legislation, as well as Council Member Bottcher’s efforts to advance this critical initiative at the city level. I am committed to working alongside my colleagues to ensure that all New Yorkers have access to the mental health services they need and deserve.” 

    Council Member Linda Lee, Chair of the Committee on Mental Health, Disabilities, and Addiction, said, “The mental health crisis continues to impact families throughout our city, state, and nation, with an estimated 15.4 million Americans living with serious mental illness. Now more than ever – especially amid ongoing uncertainty at the federal level – it is critical that individuals in need have access to life-saving resources and a full continuum of care. I’m proud to co-prime this resolution with Council Member Bottcher in support of federal legislation introduced by Representative Goldman and Senator Gillibrand to expand Medicaid coverage for those with severe mental illness. Medicaid is a vital healthcare lifeline for low-income individuals, and strengthening it to address the mental health needs of our most vulnerable will help us build healthier, more resilient communities.” 

    Douglas C. Brooks, LCSW-R, the President and CEO of Community Counseling & Meditation (CCM) said, “With our 40 years of experience in providing mental health services to New York City’s most vulnerable and marginalized communities, Community Counseling & Meditation proudly stands in support of The Strengthening Medicaid for Serious Mental Illness Act.”  

    Amy Harclerode, Executive Director of the Hetrick-Martin Institute for LGBTQIA+ Youth (HMI), said, “Our community faces a mental health crisis. Since 1979, HMI has delivered intensive, life-saving care to some of our community’s most vulnerable youth. But we do this fully at the generosity of grants and contributions —because Medicaid, as it stands, does not recognize or reimburse the kinds of community-centered, integrated services that actually work. I rise in strong support of the reintroduction of the Strengthening Medicaid for Serious Mental Illness Act, which affirms what we at HMI have always known – that recovery should be possible outside hospital walls, and that Medicaid should support care that reflects the lives, identities, and realities of the people it serves.” 

    Eric Rosenbaum, CEO of Project Renewal, said, “Project Renewal is proud to support Congressman Goldman and Council Member Bottcher’s efforts through the Strengthening Medicaid for Serious Mental Illness Act to provide a new level of care aimed specifically for individuals with serious mental illness. At Project Renewal, where our multi-disciplinary team of clinicians provide medical care and psychiatric treatment to over 6,000 individuals, we know that proper diagnosis and treatment of serious mental illness is critical to helping individuals break the cycle of homelessness. Yet, our current systems are fragmented and under-resourced—leaving people to cycle between shelters, emergency rooms, jails, and the streets. This legislation will make it possible to offer a package of comprehensive and flexible services that integrate mental health treatment, housing assistance, substance use services, peer support, and supported employment.”  

    Jody Rudin, president and CEO, Institute for Community Living (ICL), said, “We know that the proper support can help people with the most serious mental health challenges build stability and stop the expensive and inhumane cycle of institutionalization, incarceration, and street homelessness. We have – and are building out – a continuum to provide mobile support and wrap around whole health services, but we need the funding to reach all those who need it. The Strengthening Medicaid for Serious Mental Illness Act would provide the support community based organizations like ICL need to help more people get better. We are grateful to Congressman Goldman for introducing this bill and Council Member Bottcher for supporting it though a resolution.”  

    Evette Maduro CEO, Betances Health Center, said, “At Betances Health Center, we witness daily the urgent need for comprehensive mental health services—especially for those living with serious mental illness. The Strengthening Medicaid for Serious Mental Illness Act is a pivotal step toward ensuring no individual is left behind due to gaps in care. We are proud to stand with Congressman Goldman and Council Member Bottcher in supporting legislation that prioritizes equity, dignity, and access for our most vulnerable community members.” 

    Brooke Montes, Alliance’s Senior Vice President of Communications, said “As a NYC-based multiservice organization with 34 years of experience delivering community-based health services, Alliance for Positive Change applauds Congressman Goldman and NYC Council Member Bottcher for calling on the US Congress to pass the Strengthening Medicaid for Serious Mental Illness Act. Investing in meaningful community-based services for people with serious mental health challenges is a common-sense, cost-effective way to reduce emergency hospitalizations, mental health crises, fatal overdoses, chronic homelessness, and justice system involvement. Alliance’s three decades of work has shown that combining multidisciplinary care teams, peer-based support, and interagency partnerships yields benefits far greater than the sum of the parts—for individuals, families, and communities. This legislation is an urgently needed investment.” 

    Daniel Pichinson, President & CEO of Ryan Health, said “Access to mental health services where people live and work is key to getting them the care that they deserve and need. Ryan Health has a long history of providing impactful mental health services in our Emotional Wellness Centers and primary care locations. We support the Strengthening Medicaid for Serious Mental Illness Act to increase availability of treatment to improve the lives of New Yorkers living with mental illness.” 

    Noeline Maldonado, Executive Director of The Healing Center, said, “Restricting equitable access to Medicaid removes a key pathway to comprehensive care for individuals with mental illness and is antithetical to the proposed goals of any credible mental health policy.”  

     

    Ken Zimmerman, CEO of Fountain House, said, “We applaud Representative Goldman for his leadership on the introduction of the ‘Strengthening Medicaid for Serious Mental Illness Act’ and thank both him and Councilmember Erik Bottcher for recognizing community-based programs like Fountain House and the clubhouse model as integral in the continuum of mental health care. The clubhouse model is not only highly effective, but also a responsible way to ensure a return on investment while promoting recovery and thriving — Medicaid costs for Fountain House members were 21% lower compared to the highest risk population, research shows. Our nation must support and recognize the more than 14 million people living with serious mental illness, especially at this critical time, by prioritizing dignity, agency, and community as fundamental building blocks. This bill is a significant step toward a more person-centered, holistic, and proven approach to mental healthcare in the U.S. by focusing on and investing in targeted supports that help people with serious mental illness thrive.” 

    Over 15 million adults in the United States are currently living with a serious mental illness, while over one-third of these individuals receive zero mental health treatment. This legislation creates a new package of services under Medicaid that specifically aims to provide care to individuals living with SMI, sets a national standard for SMI care, and incentivizes states to provide intensive community-based services to treat SMI. 

    The bill is endorsed by the Bazelon Center for Mental Health Law and the National Health Law Program.

    To better support those living with SMI, the Strengthening Medicaid for Serious Mental Illness Act would:  

    Create a new waiver program granting Medicaid authority to provide states with an option to offer a package of services targeted specifically to individuals with SMI. The package would include: 

    1. Assertive community treatment, an evidence-based, highly individualized team-based service designed to support adults with the most intensive mental health needs; 

    2. Supported employment to help individuals get and keep a job; 

    3. Peer support services from individuals who have lived or living experiences with mental health conditions; 

    4. Mobile crisis intervention teams that can help de-escalate situations and link individuals to other community-based services; 

    5. Intensive case management; and 

    6. Housing-related activities and services to support individuals with transitioning to and maintaining housing. 

    Require states to adhere to certain standards, like tracking disparities in treatment, to ensure services are delivered with care to all in need. 

    Create a tiered Federal Medical Assistance Percentage (FMAP) increase to incentivize states to provide intensive community-based services to individuals with SMI. This means that states could receive an increase up to 25 percent in funds allocated by the federal government for their Medicaid programs. 

    Congressman Dan Goldman has worked tirelessly to expand mental health care for people across the country. 

    Last year, Congressman Goldman introduced the ‘Michelle Alyssa Go Act’ to increase the number of federal Medicaid-eligible in-patient psychiatric beds for individuals who are seeking treatment for both mental health and substance use disorders. 
    Last Congress, Congressman Goldman joined colleagues in introducing the ‘Expanding Access to Mental Health Services in Schools Act’ to address the urgent need for mental health professionals in schools. The bill would increase the number of mental health service providers in schools, particularly in high-need areas, by providing competitive grants to local educational agencies for recruitment, hiring, retention, and diversification of mental health service providers. 
    In 2023, Congressman Goldman joined Congresswoman Grace Meng (NY-06) in introducing the ‘Mental Health Workforce and Language Access Act’ to establish a grant program administered by the Department of Health and Human Services to provide federal funds to community health centers to help them hire qualified mental health professionals who are fluent in a language other than English.   

    Congressman Goldman is a member of the Congressional Mental Health Caucus 

    ### 

    MIL OSI USA News –

  • MIL-OSI New Zealand: Housing market – NZ housing market conditions tip in favour of first home buyers – QV

    Source: Quality Valuation (QV)

    Lower home values and easing interest rates are creating a rare opportunity for first-home buyers to enter the New Zealand housing market, particularly in hard to access main centres like Auckland and Wellington.

    Our latest QV House Price Index shows home values rose 0.10% in the three months to April to a new national average value of $914,504, which is -1.33% lower than the same time last year.

    Across New Zealand’s main urban areas: the Auckland region continues to soften, with home values down 2.89% year on year, and 0.08% over the past 3-months; the Wellington region dropped 4.11% year on year, and 0.50% over the quarter to April; Dunedin was down 0.04% year on year and -0.73% over the past three months; while Christchurch bucked the trend, rising 1.35% year on year and 0.88% in the April quarter; as did Hamilton up 0.36% year on year and 0.12% over the past 3-months.
     
    QV Operations Manager James Wilson said while headline values remain soft, early signs suggest a shift in sentiment, with some main urban centres showing a positive monthly trend.

    “After five years of significant volatility, the market appears to have stabilised,” he said. “We’re not seeing big swings anymore—home values are holding steady as we head into winter.”

    “Although interest rates are trending down, demand is tempered by cautious buyer sentiment and a large supply of properties. Still, signs of a turnaround are emerging, especially in the main centres.”

    “For first home buyers, particularly in parts of Auckland where standalone homes are now selling in the $700,000s in some areas—something we didn’t see a year ago—now is the time to act,” said Mr Wilson.

    “Investors remain more active than first home buyers, taking advantage of lower competition compared to previous peaks. However, many are still taking a ‘wait and see’ approach.”

    Northland

    Northland home values have experienced modest recovery momentum rising 1.30% in the three months to April 2025. Whangarei was the top performer in the region with values up 3.19%; value growth in the Far North slowed to just 0.17%; while the Kaipara District was down -2.05% over 3 months, reversing the gains it made earlier in the year.

    The annual trend remains negative at -2.79%, but growth signs suggest renewed buyer activity, particularly in Whangarei among investors and first home buyers. The average home value across the region now sits at $731,090, up from $721,626 in January.

    Auckland

    Across the Auckland region values are down -0.08% over the past three months and 2.89% year on year. The current average value is now $1,244,996.

    Manukau (0.53%), Papakura (0.40%) and Franklin (0.81%) all posted 3-month gains, while in the local council areas previously known as Auckland City values softened (-0.28%); North Shore was down the most (-1.19%); Waitakere also dipped (-0.33%); and Rodney (-0.06%) also eased slightly over the same period.

    Local QV registered valuer, Hugh Robson said, “Overall, market conditions remain similar to three months ago, we continue to see the strongest demand from first home buyers who are often purchasing more affordable townhouse developments.”

    “Annual growth remains in decline at -2.89%, pointing to a patchy recovery across the super city. In areas where supply levels are beginning to be absorbed and owner occupier interest remains stronger, we are starting to see some early positive signals,” he said.

    Bay of Plenty

    Home values were down in Tauranga -0.23% over the past three months. The city’s average home value $1,014,726, which is -1.48% less than the same time last year.

    Meanwhile, the Bay of Plenty region saw values rise slightly by 0.28% over the past 3-months but were down -1.30% year on year. Kawerau values saw the greatest increase, jumping 7.16% over the quarter to April and 1.59% year on year. Western Bay of Plenty district also saw values rise 2.96% over the past three months; Gisborne was also up 2.78%; as was Rotorua up 0.14%; while Opotiki values dropped -2.21%.  

    Waikato

    The latest QV House Price Index shows Hamilton’s average home value is now $792,221, rising 0.12% over the past three months and 0.36% year on year.

    Local QV registered valuer Marshall Wu said, “While we are seeing demand levels beginning to return in mid-price brackets where investor and first home buyers competition meet, a significant volume of unsold inventory continues to linger on the market. So, although April’s upturn in Hamilton’s home values is a positive sign, it remains premature to declare a market recovery,” he said.

    The Waikato region demonstrated slight improvement in the April quarter with a 3-month gain of 0.60% and 0.03% year on year. The average home value across the region now stands at $817,310. Waitomo District surged 5.41% over the past 3 months, making it the standout performer.

    Taranaki

    Home values in New Plymouth have risen 1.24% over the past three months and are 1.27% higher than the same time last year. The average home value is now $729,739. Meanwhile, the average home value in South Taranaki dipped 0.64% over the quarter to April to $443,886 while Stratford values also dipped 1.35% over the past three months and the average home there is worth $478,051.

    QV property consultant, Danny Grace said “New Plymouth district is more stable with improved levels of activity and interest over the recent months, with more interest from buyers and agents feeling more confident. Stratford and South Taranaki are also stabilising, but not to the same level as New Plymouth. The quarterly gain in New Plymouth of 1.24% shows improved sentiment fueled mostly by the strength of first home buyer demand.”

    Hawke’s Bay

    Napier City home values rose 0.97% over the past 3 months and were up 0.15% in the year to April. The average value in the city is now $760,444. Hastings values were also up 0.29% over the past three months but were down 2.24% year on year.

    The average value in Hastings is now $773,595. Wairoa saw values rise 2.21% in the three months to April and 9.83% year on year to a new average value of $414,919. While it was a different story in the Central Hawke’s Bay District, which saw the greatest decrease down -4.25% over 3 months and -7.02% year on year with an average value of $540,303.

    Palmerston North

    Home values in Palmerston North dipped 0.68% over the past three months to a new average value of $634,094 which is 1.61% lower than this time last year.

    QV registered valuer, Olivia Betts said, “We are currently seeing increased sales activity however prices remain stable. Homes with older, outdated features are struggling to attract buyers and are often listed on the market for longer periods. In contrast, there’s been a growing demand for homes recently renovated, reflecting a preference for modern amenities, according to industry experts.”

    Wellington

    Residential property values have continued their downward trend most parts of Wellington this quarter. The latest QV House Price Index shows the region’s average home value decreased by 0.50% to $837,745 throughout the quarter to April and is 4.11% lower than the same time last year.

    Upper Hutt bucked the trend this quarter with average growth of 0.69%. While, Wellington City (-0.69%), Kapiti Coast (-0.01%), Hutt City (-0.47%) and Porirua (-0.21%) all recorded small average home value losses.
     
    QV senior consultant, David Cornford said, “Stock levels remain at elevated levels and accordingly we have seen a slight overall softening in values in recent months in the region.”

    “There is adequate market activity, however the volume of stock on the market is making conditions challenging for vendors in some cases,” he said.

    “Buyers have plenty of options currently and are not afraid to walk away from a property. Economic and employment uncertainty continues and we are seeing this reflected in a relatively soft market where buyers are taking a cautious approach.”

    Tasman-Nelson-Marlborough

    These three regions fared relatively well in April, with Nelson City and Tasman District recording 3-month growth of 1.21% and 2.16%, respectively. Marlborough posted a slight increase of 0.82% over the 3 months to April. The average value in Nelson is now $799,144, Tasman is $829,427, and Marlborough is $703,836.

    QV Property Consultant, Craig Russel said “In the Tasman and Nelson markets, demand for homes within the $500,000 to $800,000 price range is still strong, with multiple offers being a common occurrence.”

    “Pricing remains a key determinate, with accurate pricing required to avoid properties languishing on the market for an extended period, and with multiple price reductions.”

    “Although we have seen modest growth over recent months we are still facing economic headwinds, and with the quieter winter period approaching, it is likely that values will remain flat over the next few months.”

    West Coast

    Our QV House Price Index for the April brought mixed results for the region with values down 2.60% over the past three months, indicating recent volatility. However, annual growth remains at 1.87% higher than the same time last year.

    Average home values in Westland rose 0.27% to $471,390 this quarter. While they decreased by 3.80% to $375,858 in Buller and by 3.55% to $445,433 in Grey.

    Canterbury

    The Christchurch city average home value rose slightly by 0.88% in the past three months to April to $776,636 and are now 1.35% higher than a year ago.

    Meanwhile home values in Hurunui rose 0.76% in the past three months to $645,875 but were down 0.89% year on year. While Waimakariri rose 0.52% over the past quarter to an $721,149 which is 0.47% higher than they were a year ago.

    QV registered valuer Olivia Brownie said, “In the three months to April we’ve seen more positive market movement for Christchurch City and the neighbouring districts. We have seen slightly more activity over the previous month which can be attributed to some more affordability and a slight reduction in the cost of borrowing.”

    “The market is currently seeing a balance in supply and demand, with buyers having a good range of options and sellers not expecting immediate price increases. Well-presented and located homes are transacting with buyers having the option to leave less appealing stock to the side or negotiating on price. Overall the market movement is minimal and we are seeing a somewhat steady property market.”

    Dunedin

    Our QV House Price Index for April 2025 shows values dipped slightly in Dunedin City overall by an average of -0.73% over the past quarter, with Dunedin’s average home value now $646,378, which is just 0.04% lower than the same time last year. Dunedin’s central suburbs saw the greatest quarterly increase up 1.40%.

    QV Property Consultant Robin Graham said, “Listing levels in Dunedin remain high when compared to the same period last year, with downsizing activity occurring within the owner occupier market. Demand levels remain firm for Mosgiel, followed by Maori Hill and Saint Clair, however agents continue to report that heightened levels of supply, mean vendor price points need to be realistic.”

    “Overall property values in the region are flatlining, with only minor growth in isolated areas and softening sentiment in Dunedin among first home buyers and investors when compared to earlier in the year.”

    Queenstown

    Residential property values are continuing their slight downward trend across the Queenstown Lakes District in this quarter.

    Our QV House Price Index for April 2025 shows the average home value reduced by 0.43% over the past three months to $1,818,422. Home values in Queenstown are now -0.45% lower on average than at the same time last year.

    Southland

    Invercargill values rose 0.21% over the past three months to top half a million with an average value of $501,322, which is 4.01% higher than the same time last year.

    While in Gore, values increased 3.15% over the quarter to $418,768 which is 0.22% higher than a year ago. And in Southland values rose were up 1.88% over the past three months to $535,303 which is 6.56% higher than a year ago.

    QV registered valuer Andrew Ronald said the region’s affordability and consistent performance underpin buyer interest. We are still experiencing strong demand from first home buyers seeking entry level properties, typically under $500,000.

    “Investor activity continues to increase, although not in any significant levels yet. There is still limited demand for upper price bracket properties,” he said.

    MIL OSI New Zealand News –

  • MIL-OSI USA: Chinese Company and Three Chinese Nationals Indicted for Unlawfully Importing Pill-Making Equipment Used to Manufacture Controlled Substances

    Source: US State of North Dakota

    A federal grand jury returned a 21-count indictment against a Chinese company and three Chinese nationals for their alleged role in the illegal importation of pill-making equipment, the Department of Justice announced.

    According to an indictment returned April 23 and unsealed today, CapsulCN International Co. Ltd. (CapsulCN) and Xiochuan “Ricky” Pan, 40, Tingyan “Monica” Yang, 37, and Xi “Inna” Chen, 30, all of the People’s Republic of China, were charged with smuggling, Controlled Substances Act, and money laundering offenses in connection with CapsulCN’s unlawful import and distribution of tableting machines (also known as “pill presses”), encapsulating machines, and counterfeit die molds capable of producing millions of potentially lethal fake pills. The indictment also charges Pan, CapsulCN’s principal officer and a shareholder, with leading a continuing criminal enterprise. Additionally, four internet domains used by CapsulCN to market and sell illicit pill-making equipment to U.S. customers were seized today in connection with this investigation.

    “This indictment and today’s domain seizures send an unmistakable message to criminals in the People’s Republic of China and across the world — the Department will use every weapon in its arsenal to combat those who facilitate the manufacture and distribution of deadly drugs in the United States,” said Deputy Attorney General Todd Blanche.

    “This U.S. Attorney’s Office is focused on bringing the full force of justice to anyone who conspires to poison our communities with fentanyl,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “Whether through the importation of pill presses and related materials, as alleged in this indictment, or through trafficking precursor chemicals and the drug itself, it is evident that bad actors are determined to harm Americans with fentanyl. Our federal prosecutors, through collaborative efforts with our law enforcement partners, are determined to stop them.”

    Many of the fake pills containing fentanyl and other controlled substances seized in the United States are manufactured using relatively inexpensive pill-making equipment — such as pill presses, encapsulating machines, and die molds — obtained from Chinese pharmaceutical equipment companies and imported into the United States. These fake pills often mimic the look, feel, and effect of legitimate pharmaceutical drugs and are particularly dangerous and misleading to U.S. consumers, who may falsely believe they are taking legitimate prescription medication that is safer and less addictive than the fentanyl and methamphetamine the pills really contain.

    According to court documents, between December 2011 and April 2025, Pan led CapsulCN, which advertised and sold pill-making equipment to U.S. customers on websites, popular e-commerce platforms, and various social media accounts. CapsulCN marketed and catered to customers seeking to make counterfeit pills that mimicked the look and effect of prescription drugs. In 2020, Pan and Yang created a new brand, “PillMolds,” to advertise, sell, and promote counterfeit die molds to the United States. Although the PillMolds brand was part of CapsulCN, thereafter, CapsulCN ceased marketing and selling die molds via its www.capsulcn.com website and instead did so using the website www.pillmold.com. Today, HSI seized both of these websites, along with two others (www.ipharmachine.com and huadapharma.com) that CapsulCN used to facilitate its unlawful sales and imports of pill-making equipment.

    The indictment alleges that, between December 2011 and April 2025, CapsulCN imported and distributed pill presses and encapsulating machines to customers in the United States, knowing or having reason to believe that those items would be used to manufacture controlled substances. CapsulCN also distributed counterfeit die molds, which can be used to compress inactive and active ingredients into pills that mimic the shape and imprinted markings of legitimate pharmaceutical drugs such as oxycodone, dextroamphetamine, hydrocodone, amphetamine, and alprazolam. Drug traffickers often replace these active ingredients in the legitimate pharmaceutical drugs with other controlled substances such as fentanyl and methamphetamine.    

    The indictment alleges that CapsulCN concealed the nature and purpose of the pill presses, encapsulating machines, and die molds from U.S. customs officials and law enforcement by using deceptive packaging and false manifests that undervalued and misidentified the contents. Some customers sought to avoid mandatory requirements to report the import and distribution of pill presses and encapsulating machines to the U.S. Drug Enforcement Administration (DEA). CapsulCN also allegedly helped conceal the nature of its shipments avoid detection by disassembling the machines and shipping the parts in separate packages, again with false manifests. CapsulCN employees then would direct customers to social media accounts maintained by CapsulCN that contained videos instructing customers on how to reassemble the machines once in the United States.

    According to court documents, Yang, Chen, and other CapsulCN sales representatives communicated extensively with potential customers in the United States over company emails and encrypted electronic messaging applications. In these communications with customers, Yang, Chen, and others agreed to smuggle pill-making equipment to U.S. customers and assisted customers in selecting die molds that best replicated identified pharmaceutical drugs. Yang, Chen, and other CapsulCN sales representatives also exchanged electronic messages and emails negotiating payment for CapsulCN products that were smuggled into the United States and imported and distributed for use in manufacturing controlled substances. CapsulCN maintained bank accounts in the People’s Republic of China and accounts with online payment services to facilitate the transfer of funds from the United States to China in furtherance of CapsulCN’s criminal activities.

    The HSI El Paso Field Office investigated the case with assistance from Customs and Border Protection, IRS Criminal Investigation’s El Paso Office, and the U.S. Postal Inspection Service.

    Trial Attorneys Colin W. Trundle, Cadesby Cooper, Kaitlin Sahni, Edward E. Emokpae, Scott B. Dahlquist, Assistant Director Katharine A. Wagner, Deputy Director of Criminal Litigation A.J. Nardozzi, and Director Amanda Liskamm of the Department of Justice’s Consumer Protection Branch, and Assistant U.S. Attorneys Laura Gregory and Donna Miller and OCDETF Chief Steven Spitzer of the U.S. Attorney’s Office for the Western District of Texas are handling the case.

    This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

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

    MIL OSI USA News –

  • MIL-OSI USA: WEDNESDAY: Governor Newsom to release revised budget plan in Sacramento

    Source: US State of California Governor

    May 12, 2025

    SACRAMENTO – Governor Gavin Newsom will release his revised 2025-26 state budget proposal on Wednesday in Sacramento.

    WHEN: Wednesday, May 14, 2025 at approximately 10:30 a.m.

    LIVESTREAM: Governor’s Twitter page, Governor’s Facebook page, and the Governor’s YouTube page. This event will also be available to TV stations on the LiveU Matrix under “California Governor.”

    **NOTE: This in-person press event will be open to credentialed media only. Media interested in attending must RSVP by clicking here no later than 10 p.m., May 13. Location information will be provided upon RSVP confirmation.

    Once the press conference begins, the Department of Finance will post a summary document of the May Revision at www.ebudget.ca.gov.

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  • MIL-OSI Security: Chinese Company and Three Chinese Nationals Indicted for Unlawfully Importing Pill-Making Equipment Used to Manufacture Controlled Substances

    Source: United States Attorneys General

    A federal grand jury returned a 21-count indictment against a Chinese company and three Chinese nationals for their alleged role in the illegal importation of pill-making equipment, the Department of Justice announced.

    According to an indictment returned April 23 and unsealed today, CapsulCN International Co. Ltd. (CapsulCN) and Xiochuan “Ricky” Pan, 40, Tingyan “Monica” Yang, 37, and Xi “Inna” Chen, 30, all of the People’s Republic of China, were charged with smuggling, Controlled Substances Act, and money laundering offenses in connection with CapsulCN’s unlawful import and distribution of tableting machines (also known as “pill presses”), encapsulating machines, and counterfeit die molds capable of producing millions of potentially lethal fake pills. The indictment also charges Pan, CapsulCN’s principal officer and a shareholder, with leading a continuing criminal enterprise. Additionally, four internet domains used by CapsulCN to market and sell illicit pill-making equipment to U.S. customers were seized today in connection with this investigation.

    “This indictment and today’s domain seizures send an unmistakable message to criminals in the People’s Republic of China and across the world — the Department will use every weapon in its arsenal to combat those who facilitate the manufacture and distribution of deadly drugs in the United States,” said Deputy Attorney General Todd Blanche.

    “This U.S. Attorney’s Office is focused on bringing the full force of justice to anyone who conspires to poison our communities with fentanyl,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “Whether through the importation of pill presses and related materials, as alleged in this indictment, or through trafficking precursor chemicals and the drug itself, it is evident that bad actors are determined to harm Americans with fentanyl. Our federal prosecutors, through collaborative efforts with our law enforcement partners, are determined to stop them.”

    Many of the fake pills containing fentanyl and other controlled substances seized in the United States are manufactured using relatively inexpensive pill-making equipment — such as pill presses, encapsulating machines, and die molds — obtained from Chinese pharmaceutical equipment companies and imported into the United States. These fake pills often mimic the look, feel, and effect of legitimate pharmaceutical drugs and are particularly dangerous and misleading to U.S. consumers, who may falsely believe they are taking legitimate prescription medication that is safer and less addictive than the fentanyl and methamphetamine the pills really contain.

    According to court documents, between December 2011 and April 2025, Pan led CapsulCN, which advertised and sold pill-making equipment to U.S. customers on websites, popular e-commerce platforms, and various social media accounts. CapsulCN marketed and catered to customers seeking to make counterfeit pills that mimicked the look and effect of prescription drugs. In 2020, Pan and Yang created a new brand, “PillMolds,” to advertise, sell, and promote counterfeit die molds to the United States. Although the PillMolds brand was part of CapsulCN, thereafter, CapsulCN ceased marketing and selling die molds via its www.capsulcn.com website and instead did so using the website www.pillmold.com. Today, HSI seized both of these websites, along with two others (www.ipharmachine.com and huadapharma.com) that CapsulCN used to facilitate its unlawful sales and imports of pill-making equipment.

    The indictment alleges that, between December 2011 and April 2025, CapsulCN imported and distributed pill presses and encapsulating machines to customers in the United States, knowing or having reason to believe that those items would be used to manufacture controlled substances. CapsulCN also distributed counterfeit die molds, which can be used to compress inactive and active ingredients into pills that mimic the shape and imprinted markings of legitimate pharmaceutical drugs such as oxycodone, dextroamphetamine, hydrocodone, amphetamine, and alprazolam. Drug traffickers often replace these active ingredients in the legitimate pharmaceutical drugs with other controlled substances such as fentanyl and methamphetamine.    

    The indictment alleges that CapsulCN concealed the nature and purpose of the pill presses, encapsulating machines, and die molds from U.S. customs officials and law enforcement by using deceptive packaging and false manifests that undervalued and misidentified the contents. Some customers sought to avoid mandatory requirements to report the import and distribution of pill presses and encapsulating machines to the U.S. Drug Enforcement Administration (DEA). CapsulCN also allegedly helped conceal the nature of its shipments avoid detection by disassembling the machines and shipping the parts in separate packages, again with false manifests. CapsulCN employees then would direct customers to social media accounts maintained by CapsulCN that contained videos instructing customers on how to reassemble the machines once in the United States.

    According to court documents, Yang, Chen, and other CapsulCN sales representatives communicated extensively with potential customers in the United States over company emails and encrypted electronic messaging applications. In these communications with customers, Yang, Chen, and others agreed to smuggle pill-making equipment to U.S. customers and assisted customers in selecting die molds that best replicated identified pharmaceutical drugs. Yang, Chen, and other CapsulCN sales representatives also exchanged electronic messages and emails negotiating payment for CapsulCN products that were smuggled into the United States and imported and distributed for use in manufacturing controlled substances. CapsulCN maintained bank accounts in the People’s Republic of China and accounts with online payment services to facilitate the transfer of funds from the United States to China in furtherance of CapsulCN’s criminal activities.

    The HSI El Paso Field Office investigated the case with assistance from Customs and Border Protection, IRS Criminal Investigation’s El Paso Office, and the U.S. Postal Inspection Service.

    Trial Attorneys Colin W. Trundle, Cadesby Cooper, Kaitlin Sahni, Edward E. Emokpae, Scott B. Dahlquist, Assistant Director Katharine A. Wagner, Deputy Director of Criminal Litigation A.J. Nardozzi, and Director Amanda Liskamm of the Department of Justice’s Consumer Protection Branch, and Assistant U.S. Attorneys Laura Gregory and Donna Miller and OCDETF Chief Steven Spitzer of the U.S. Attorney’s Office for the Western District of Texas are handling the case.

    This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

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

    MIL Security OSI –

  • MIL-OSI Security: Head of the Criminal Division, Matthew R. Galeotti Delivers Remarks at SIFMA’s Anti-Money Laundering and Financial Crimes Conference

    Source: United States Attorneys General

    Thank you, Bernard, for that kind introduction. And thank you to SIFMA for having me here at your annual AML and Financial Crimes Conference.

    Over the last several months, the Department has made clear that its mission is to protect hard-working Americans from the most serious threats.  In the Criminal Division, we are working relentlessly to eliminate cartels and transnational criminal organizations (TCOs), dismantle human smuggling operations, curb the flow of fentanyl and other dangerous drugs, and neutralize child predators and violent criminals, including by securing significant charges and prison sentences against the worst criminal actors. 

    White-collar crime also poses a significant threat to U.S. interests.  Unchecked fraud in U.S. markets and government programs robs hardworking Americans and harms the public fisc.  The deadly activities of cartels and TCOs are enabled by international money laundering organizations and other financial facilitators.  Illicit financial and logistical networks undermine our national security by facilitating sanctions evasion by hostile nation-states and terror regimes.

    Today, I’m here to discuss the role the Criminal Division plays in combating these crimes.

    The Criminal Division has always been a leader in white-collar enforcement and in the development of corporate enforcement policy.  Our work prevents the distortion of markets through unfair external forces based on fraud and deceit. 

    But recently, those efforts have come at too high a cost for businesses and American enterprise. Companies need clear guidance and certainty on the concrete benefits that each company, their shareholders, boards, and customers can earn through self-reporting, owning up to criminal conduct, remediating, and cooperating with the Department. Too often, businesses have been subject to unchecked and long-running investigations that can be costly—both to the Department and to the subjects and targets of its investigations—and can unduly interfere with day-to-day business operations. These costs and uncertainty have deterred companies from working with the Department and diverted the Department’s resources from tackling the most significant threats facing our country.

    In short, if companies continue to assume that the Department will be quick and heavy-handed with the stick, and stingy with the carrot, the system will continue to generate lengthy drawn-out investigations that are ultimately detrimental to companies and the Department.  This approach has deterred companies from cooperating and allowing the Department to more readily target the most culpable actors.   

    And so the Criminal Division is turning a new page on white-collar and corporate enforcement.

    We start from first principles: recognizing that law-abiding companies are key to a prosperous America.  As stated in the America First Investment Policy, “Economic security is national security.”  Through hard work and innovation, we can build a stronger economy that benefits Americans from Main Street to the C-suite.  We have created the safest and most secure financial system in the world, ensured an even playing field where—no matter your background—you can compete in our marketplace, and rooted out those who would prey on the vulnerable through scams and schemes.

    Most corporations and financial institutions want to play by the rules and provide value for their shareholders and their customers.  And that is what we want them to remain focused on. Excessive enforcement and unfocused corporate investigations stymie innovation, limits prosperity, and reduces efficiency.

    So that ends today.  Current Department leadership recognizes the critical role that American companies play—not just in growing our economy, but also in the fight against the most serious criminal actors.  Many of you, particularly those of you in an AML compliance role, are on the front lines defending your companies against criminal actors.  You work every day to implement systems to keep your companies, your customers, and your shareholders safe.  You follow the guidance from your regulators.  And you can provide critical information to ensure that the Department can prosecute the worst offenders, the individual fraudsters, those that shadow bank for hostile nation-states, cartel enablers, and other financial facilitators of transnational crime.  We are here to prosecute criminals, not law-abiding businesses.

    To that end, I am announcing the Criminal Division’s white-collar enforcement plan.  This plan will focus the Criminal Division’s efforts on the most egregious white-collar crime to make our nation safer and more prosperous, vindicate victims’ rights, maximize the use of the Department’s resources, and provide fairness and transparency to individuals and companies alike. As part of this plan, I am revising three of the key corporate enforcement policies of the Criminal Division to reflect these priorities.

    So, let me take a few minutes and walk you through the changes I am implementing at the Criminal Division under the new Administration.

    Effective white-collar prosecution requires focus, fairness and efficiency—three principles that will guide the work of Criminal Division prosecutors going forward.

    The Criminal Division is laser-focused on the most urgent threats to our country, our citizens, and our economy. I have instructed all of our prosecutors to focus their white-collar prosecution efforts on the key threats to America.

    Fraud perpetrated against Americans as individuals, as taxpayers, and as recipients of government services are core to this focus.  Millions of Americans are victimized by fraudsters every day, some losing their hard-earned life savings.  These schemes harm the public and weaken the integrity of our markets.

    Similarly, dishonest actors seek to take advantage of our government and enrich themselves through waste, fraud, and abuse.  Those that defraud Medicare, our defense infrastructure, and other public benefit programs and government agencies, steal not only from the government but divert much-needed support from the most vulnerable Americans.

    Criminals also seek to exploit our financial system, which is the safest in the world.  Just as Americans seek the security that the system provides, dangerous cartels, hostile nation states, and terrorists seek to exploit that system to further their heinous crimes and threaten our economy and our national security.

    You are the first line of defense against these schemes—companies and particularly financial institutions with well-functioning compliance programs have a unique role to play in this fight.

    We are here to work with you.  Our goal is practicality.  Root out criminal conduct in the most cost-effective ways. But make no mistake, the Criminal Division will hold accountable those that choose a different path, those that enable criminals. It is incumbent upon us as representatives of the American people to do so.   

    Today, the Criminal Division is releasing revised corporate enforcement policies that emphasize the role of and benefits for law-abiding companies and companies that are ready to acknowledge and learn from their mistakes.  Specifically, we are making clearer the benefits for companies that self- report. Companies that are ready to take responsibility should not be overburdened by enforcement.  The revised policies are aimed at incentivizing you to come forward, come clean, reform, and cooperate with the government in efficient investigations and prosecutions of the most culpable actors.

    Let me take a minute to outline the changes you’ll see in our policies.

    We have revised the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure Policy, or CEP.  The CEP is the Criminal Division’s primary guide to corporate enforcement and voluntary self-disclosure.  But it had gotten unwieldy and hard to navigate.  We want to be as transparent as we can to companies and their counsel about what to expect under our policies.  Therefore, under my direction, the Fraud Section and the Money Laundering and Asset Recovery Section have revised the CEP to simplify the policy and clarify the outcomes that companies can expect.

    What is the primary message I want you to take back to your companies about the new CEP?  Self-disclosure is key to receiving the most generous benefits the Criminal Division can offer. Why?  Because coming forward and coming clean lets the Department devote its resources to investigating and prosecuting individual wrongdoers and the most egregious criminal schemes.  Companies can avoid what we have all seen in the past: burdensome, years-long investigations that inevitably end in a resolution process in which the company feels it must accept the fate the Department has ultimately decided.

    Under the new CEP—with an easy-to-follow flow chart—companies that voluntarily self-disclose and meet other criteria will receive a declination, not just a presumption of a declination.  More precisely, those companies that meet our core requirements—voluntarily self-disclose to the Criminal Division, fully cooperate, timely and appropriately remediate, and have no aggravating circumstances—will not be required to enter into a criminal resolution.  This is a clear path to declination.

    For companies that are willing to meet all the voluntary self-disclosure, cooperation, and remediation requirements but may have concerns about coming forward because they have aggravating circumstances, the revised policy makes clear that you may still be eligible for a CEP declination based on weighing the severity of those aggravating circumstances and the company’s cooperation and remediation.

    And the changes aim to also provide enhanced clarity and benefits for companies who in good faith self-disclose either not quickly enough or after—unbeknownst to them—the Department has already become aware of the misconduct.  The CEP revisions put an end to the guessing game companies previously faced under these circumstances.

    Now, the CEP makes clear that those companies are still eligible to receive significant benefits—an NPA with a term of fewer than three years, 75% reduction of the criminal fine, and no monitor.

    As I said before—the key here is self-disclosure. Where a company does not self-disclose, it will not receive these benefits.  But, consistent with the high-level principles I’ve discussed, in those circumstances, Criminal Division prosecutors still have discretion to recommend a resolution of any form, with a three-year term, monitor and up to 50% reduction in the fine.

    I am also announcing revisions to our monitor selection policy.

    As with unchecked enforcement, unrestrained monitors can be a burden on businesses that are frequently making self-directed improvements and investing significant amounts in their own compliance programs to solve problems internally and proactively. Without appropriate oversight from the Criminal Division, monitors can create an adversarial relationship with the companies they monitor, impose significant expense, stray from their core mission, and unduly interfere with business.  At times, the money companies spend on their monitor could be better spent investing in their compliance programs or, if they haven’t already, making victims whole.

    In short, the value monitors add is often outweighed by the costs they impose, so you can expect to see fewer of them going forward. For pre-existing monitorships, the Criminal Division is reviewing each one in an effort to narrow their scope or, where appropriate, terminate a monitorship altogether, based on a totality of the circumstances review. 

    In limited circumstances, however, a narrowly-tailored monitorship that is right-sized to the conduct it seeks to remedy, can be an effective resource to provide independent oversight and review to companies that are struggling to implement effective compliance programs on their own.

    I have asked the experts in the Criminal Division to revise the Division’s policy on selection of monitors, consistent with these principles and concerns.  Our new policy clarifies the factors prosecutors must consider to impose a monitor and to narrowly scope and tailor the monitor’s mandate when a monitor is imposed.

    Let me walk you through some of the key changes. The top line value criterion is that the benefits of the monitor should outweigh its costs, both monetary costs, as well as burdens on the business’ operations.  A monitor’s costs must be proportionate to the severity of the underlying conduct, the profits of the company, and the company’s present size and risk profile.  Therefore, factors prosecutors will consider are:

    First, the nature and seriousness of the conduct and the risk that it will happen again.  In analyzing the nature and seriousness of the conduct, the Department will focus chiefly on harms to Americans and American business.

    Second, the availability of other effective independent government oversight—i.e., regulator oversight.

    Third, the efficacy of the company’s compliance program and culture of compliance at the time of resolution.

    Fourth, the maturity of the company’s controls and ability of the company to test and update its compliance program.

    And when a monitor is imposed, that monitor must understand that she or he serves the public by ensuring the company will not reoffend and has an appropriate compliance program. 

    The goal of the Department, the monitor, and the company should be aligned—to bring the company back into good standing and to prevent future misconduct.  In keeping with this public service, the Criminal Division will ensure that costs are proportionate with the underlying criminal conduct, the company’s profits, and the company’s size and risk profile. We will do that by requiring a fee cap, approving budgets for all workplans, and requiring biannual tripartite meetings between the Department, the monitor, and the company.

    And finally, we have made changes to our corporate whistleblower program to reflect our focus on the worst actors and most egregious crimes.

    To do this, I asked MLARS and Fraud to review the corporate whistleblower awards pilot program and recommend additional areas of focus reflecting the Administration’s priorities.

    Today, we have added the following priority areas for tips: procurement and federal program fraud; trade, tariff, and customs fraud; violations of federal immigration law; and violations involving sanctions, material support of foreign terrorist organizations, or those that facilitate cartels and TCOs, including money laundering, narcotics, and Controlled Substances Act violations.

    As with every other area in our program, these tips must result in forfeiture to be eligible for an award.

    What does all this mean for you, the compliance professional and particularly those of you in anti-money laundering and financial crime departments?  We want to hear from you and we want your companies to hear from you.  Now is the time to report, remediate, and strengthen compliance to ensure American prosperity.

    Never before have the benefits of self-reporting and cooperating been so clear.  And you are the eyes and the ears of your companies.  You have the opportunity to see something, report something, and make sure your company can work with the Department to root out individual misconduct and receive all the benefits we have to offer.

    Thank you, again, for having me today.

    MIL Security OSI –

  • MIL-OSI: Provident Financial Holdings Announces CFO Appointment

    Source: GlobeNewswire (MIL-OSI)

    RIVERSIDE, Calif., May 12, 2025 (GLOBE NEWSWIRE) — Provident Financial Holdings, Inc. (“Company” or “Provident”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank” or “Provident”), today announced that Peter C. Fan has been appointed Senior Vice President, Chief Financial Officer, and Corporate Secretary of the Company and the Bank, effective May 12, 2025. Mr. Fan most recently served as Senior Vice President – Director of Finance and Treasury at Royal Business Bank since February 2024 and prior to that, as Senior Vice President – Finance at Pacific Western Bank from April 2014 to February 2024.

    President and Chief Executive Officer Donavon P. Ternes commented, “I am pleased to announce the newest member of Provident’s senior management team and extend a warm welcome to Mr. Fan. Peter brings a wealth of financial leadership experience – acquired throughout his banking career particularly with strategic corporate initiatives, liquidity and capital planning, asset-liability management, budgeting, and forecasting.   Peter, together with his colleagues at Provident, will continue our community banking focus which has served our local customers and communities very well for many years.”

    Mr. Fan’s educational background includes a Master of Business Administration from the University of California at Los Angeles and a Bachelor of Science in Accounting from the University of Southern California.   Mr. Fan is also a Certified Public Accountant in California (Inactive).

    About Provident

    With over $1.3 billion in total assets and 13 retail banking centers, Provident is the largest independent community bank headquartered in Riverside County, California, and has been serving the financial needs of its community since 1956. Provident’s community banking operations primarily consist of accepting deposits from customers and businesses within the communities surrounding its full-service offices and investing those funds in single-family, multi-family, commercial real estate, construction, commercial business, consumer, and other loans.

    Safe-Harbor Statement

    Certain matters in this News Release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among others, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company’s mission and vision. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company’s actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide range of factors including, but not limited to, the general business environment, interest rates, the California real estate market, competitive conditions between banks and non-bank financial services providers, regulatory changes, and other risks detailed in the Company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

    Contacts:

    Donavon P. Ternes
    President and 
    Chief Executive Officer 

    Tam B. Nguyen
    Senior Vice President and
    Chief Financial Officer

    (951) 686-6060

    The MIL Network –

  • MIL-OSI USA: Gov. Kemp Signs Legislation to Make Georgia the Top State for Talent

    Source: US State of Georgia

    ATLANTA – Governor Brian P. Kemp, joined by Speaker Jon Burns and members of the Georgia General Assembly, today signed four important pieces of legislation into law that build on his administration’s commitment to strengthening Georgia’s workforce, expanding opportunity, and supporting hardworking students and families across the state.

    The bills signed today include HB 192, HB 38, HB 172, and SB 85. Together, they represent targeted investments in Georgia’s talent pipeline and critical updates to the tools and programs already helping Georgians succeed.

    “We’re proud Georgia has been recognized as the No. 1 state for business for an unprecedented 11 consecutive years,” said Governor Brian Kemp. “To build on that success, I announced at last year’s Workforce Summit that we would make Georgia not only the best state for business, but the Top State for Talent! Today, I am proud to sign the Top State for Talent Act, further aligning our education pipeline with the knowledge and skills that job creators are looking for.”

    Top State for Talent Act (HB 192)

    Sponsored by Representative Matthew Gambill and carried in the Senate by Senator Drew Echols, HB 192 codifies the Georgia MATCH program and reflects the work of the Governor’s Workforce Strategy Team in state law.

    College Completion Grant Extension (HB 38)

    Sponsored by Representative Chuck Martin and carried in the Senate by Senator Max Burns, HB 38 extends the sunset for the college completion grant program through 2029. The bill also lowers degree completion thresholds, increasing eligibility for students in both the University System of Georgia (USG) and Technical College System of Georgia (TCSG). These updates ensure more students can finish their degrees and enter the workforce job-ready.

    Rural Veterinary Loan Program Update (HB 172)

    Sponsored by Representative David Huddleston and carried in the Senate by Senator Matt Brass, HB 172 increases the loan purchase amount for veterinarians practicing food animal specialties in a rural part of the state from $80,000 over four years to $90,000 over three years.

    Georgia Foster Care Scholarship Program (SB 85)

    Sponsored by Senator Matt Brass and carried in the House by Representative Trey Kelley, SB 85 establishes the Georgia Foster Care Scholarship Program, which will provide up to $30,000 per year for eligible foster and former foster youth pursuing postsecondary education after all other federal or state grants, scholarships, or tuition waivers are applied.

    Governor Kemp expressed his gratitude to the bill sponsors and stakeholders who helped make these policies a reality, including:

    • HB 192: Rep. Matthew Gambill, Sen. Drew Echols, Rep. Chris Erwin, Sen. Max Burns, and members of the Workforce Strategy Team
    • HB 38: Rep. Chuck Martin, Sen. Max Burns, and Georgia Student Finance Commission (GSFC) Presidents Lynne Riley and Chris Green
    • HB 172: Rep. David Huddleston, Sen. Matt Brass, Rep. Chuck Martin, and Sen. Max Burns
    • SB 85: Sen. Matt Brass, Rep. Trey Kelley, LG Burt Jones, Speaker Jon Burns, Rep. Chuck Martin, and Sen. Max Burns

    MIL OSI USA News –

  • MIL-OSI USA: Columbia men arrested on Child Sexual Abuse Material* chargesRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson announced the arrest of Cecil Dewayne Keys, 58, and Jamal Rasheed Brown, 31, both of Columbia, S.C., on nine total charges connected to the sexual exploitation of a minor. Internet Crimes Against Children (ICAC) Task Force investigators with the South Carolina Attorney General’s Office made the arrests in these unrelated cases. Investigators with the Richland County Sheriff’s Office and Homeland Security Investigations, both also members of the state’s ICAC Task Force, assisted with these investigations.

     

    Investigators received CyberTipline reports from the National Center for Missing and Exploited Children (NCMEC), which led them to Brown. Investigators state Keys distributed and possessed files of child sexual abuse material, and Brown possessed files of child sexual abuse material.  

     

    Keys was arrested on May 7, 2025. He is charged with four counts of sexual exploitation of a minor, second degree (§16-15-405), a felony offense punishable by up to 10 years imprisonment on each count; and one count of sexual exploitation of a minor, third degree (§16-15-410), a felony offense punishable by up to 10 years imprisonment.

     

    Brown was arrested on May 6, 2025. He is charged with four counts of sexual exploitation of a minor, third degree (§16-15-410), a felony offense punishable by up to 10 years imprisonment on each count.

     

     

    These cases will be prosecuted by the Attorney General’s Office.

     

    Attorney General Wilson stressed all defendants are presumed innocent unless and until they are proven guilty in a court of law.

     

     

     

    * Child sexual abuse material, or CSAM, is a more accurate reflection of the material involved in these heinous and abusive crimes. “Pornography” can imply the child was a consenting participant.  Globally, the term child pornography is being replaced by CSAM for this reason.

    MIL OSI USA News –

  • MIL-OSI Security: Francis Creek Man Indicted on Federal Crimes Against Minors

    Source: Office of United States Attorneys

    Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on May 12, 2025, a federal indictment was unsealed alleging that Michael J. Kornely (age: 75) of Francis Creek, Wisconsin, transported two separate minor victims across state lines with the “intent to engage in criminal sexual activity,” in violation of Title 18, United States Code, Section 2423(a), in the years 2005 and 2006.

    Kornely is further alleged to have used a computer to attempt to “persuade, induce, and entice” a minor to engage in unlawful sexual activity contrary to Title 18, United States Code, Section 2422(b). That crime is alleged to have occurred in March of 2024.   

    If convicted of any of the three charges alleged in the indictment, Kornely faces a mandatory 10 years’ imprisonment and up to a lifetime of incarceration. He may also be fined up to $250,000 and would be required to register as a sexual offender under state and federal law.

    This case was investigated by the Manitowoc County Sheriff’s Office and the Federal Bureau of Investigation with the assistance of the Two Rivers Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble and Timothy W. Funnell.

    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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.

    An indictment is only a charge and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.     

    # # #

    For Additional Information Contact:

    Public Information Officer

    Kenneth.Gales@usdoj.gov

    414-297-1700

    Follow us on Twitter

    MIL Security OSI –

  • MIL-OSI Security: Fall River Woman Sentenced for Stealing Nearly $90,000 in Social Security Benefits Intended for Her Child

    Source: Office of United States Attorneys

    BOSTON – A Fall River woman was sentenced today in federal court in Boston for stealing her child’s Social Security benefits over a period of six years.    

    Nancy Taylor, 45, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 10 months in prison, to be followed by three years of supervised release. Taylor was also ordered to pay $86,994 in restitution. In February 2025, Taylor pleaded guilty to one count of theft of government money. Taylor was indicted by a federal grand jury in April 2024.

    From May 2016 through May 2022, Taylor embezzled approximately $86,994 in Social Security benefits that were intended for her minor child. In August 2014, when Taylor applied to receive benefits on behalf of her child as a representative payee, the Social Security Administration (SSA) informed her of her obligation to notify SSA if her child left her custody.  However, Taylor did not notify SSA when she lost custody of her child in May 2016. Instead, Taylor called SSA in October 2021 to update contact information for the child so that she could continue receiving her child’s benefits. Further, in June 2022, Taylor visited an SSA field office to reactivate her receipt of her child’s benefits and provided two fraudulent forms claiming that her child still lived with her and that she spent all the Social Security benefits she received for her child’s care. In reality, Taylor used the vast majority of the stolen funds to pay her own bills.

    United States Attorney Leah B. Foley and Amy Connelly, Special Agent-in-Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit prosecuted the case.

    MIL Security OSI –

  • MIL-OSI: Perimeter Acquisition Corp. I Announces Pricing of Upsized $210,000,000 Initial Public Offering

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, May 12, 2025 (GLOBE NEWSWIRE) — Perimeter Acquisition Corp. I (Nasdaq: PMTRU) (the “Company”), a special purpose acquisition company, today announced the pricing of its upsized initial public offering of 21,000,000 units at $10.00 per unit. The units are expected to be listed on the Nasdaq Global Market (“Nasdaq”) and trade under the ticker symbol “PMTRU” beginning May 13, 2025. Each unit consists of one ordinary share and one-half of one redeemable warrant. Once the securities comprising the units begin separate trading, the ordinary shares and warrants are expected to be listed on Nasdaq under the symbols “PMTR” and “PMTRW”, respectively.

    The offering is expected to close on May 14, 2025, subject to customary closing conditions.

    Citigroup Global Markets Inc. is serving as the sole book-running manager for the offering. The underwriter has been granted a 45-day option to purchase up to an additional 3,150,000 units offered by the Company to cover over-allotments, if any.

    A registration statement on Form S-1 relating to these securities has been filed with the Securities and Exchange Commission (“SEC”), and was declared effective on May 12, 2025. The offering is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone: 800-831-9146.

    This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About Perimeter Acquisition Corp. I

    Perimeter Acquisition Corp. I is a public acquisition vehicle and intends to target companies in the defense and national security sectors where its management has extensive investment and operational experience. In addition, the Company expects to evaluate opportunities relating to technology, including opportunities at the convergence of defense, technology, and national security. The Company believes that its management team is positioned to drive ongoing value creation post-business combination and is well suited to identify opportunities that have the potential to generate attractive risk-adjusted returns for its shareholders.

    Forward-Looking Statements

    This press release contains statements that constitute “forward-looking statements,” including with respect to the proposed initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the Company’s offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

    Investor and Media Contact

    Investor Contact:
    Josef Valdman
    jvaldman@perimeteracq.com
    (512) 200-2533

    Media Contact:
    Bernardo Soriano
    Gregory FCA for Perimeter Acquisition Corp. I 
    bernardo@gregoryfca.com
    (914) 656-3880

    The MIL Network –

  • MIL-OSI: 3D Systems Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    ROCK HILL, S.C., May 12, 2025 (GLOBE NEWSWIRE) — 3D Systems Corporation (NYSE:DDD) announced today its financial results for the first quarter ended March 31, 2025.

    • Revenue of $95 million as growth in new hardware systems and related services was offset by a decline in materials sales driven primarily by inventory management in the dental aligner market.
    • Previously announced $50 million cost savings initiative proceeding on schedule for completion by mid-2026. Reduction in operating expenses in Q1 continues to reflect the Company’s focus on cost and efficiency.
    • Company announcing an additional cost reduction initiative estimated to deliver $20 million incremental savings in 2025 to accelerate organizational alignment in response to potential macroeconomic and tariff risks.
    • Company withdrawing full year guidance due to risk of protracted weakness in customer capex spending. Top priority on delivering profitability at current scale. Strong new product portfolio spanning all metal and polymer platforms positions company well for accelerated growth and profitability when customer capex rebounds.
    • Balance sheet significantly strengthened as April sale of Geomagic portfolio provided over $100 million post-tax increase to Company cash reserves, which totaled approximately $250 million as of April 30, 2025.
    Unaudited Three Months Ended
    (in millions, except per share data) March 31, 2025   March 31, 2024
    Revenue $ 94.5     $ 102.9  
    Gross profit $ 32.7     $ 40.9  
    Gross profit margin   34.6 %     39.8 %
    Operating expense $ 69.5     $ 80.8  
    Operating loss $ (36.8 )   $ (39.9 )
    Net loss attributable to 3D Systems Corporation $ (37.0 )   $ (16.0 )
    Diluted loss per share $ (0.28 )   $ (0.12 )
           
    Non-GAAP measures for year-over-year comparisons    
    Non-GAAP gross profit margin   35.0 %     40.1 %
    Non-GAAP operating expense $ 61.6     $ 66.3  
    Adjusted EBITDA $ (23.9 )   $ (20.1 )
    Non-GAAP diluted loss per share $ (0.21 )   $ (0.17 )
                   

    Summary Comments on Results

    Dr. Jeffrey Graves, president and CEO of 3D Systems said, “Our first quarter revenues reflect a continuation of challenging top-line pressures as many customers are delaying their capital investments in order to get greater clarity around potential tariff impacts on their manufacturing and distribution strategies. This is in addition to the ongoing geopolitical and broader macroeconomic uncertainty that we have been experiencing for some time. We believe that these factors led to a noticeable dampening of our customers’ near-term capital spending, particularly in consumer-facing and service bureau related end markets. While we were pleased to see this growth in new printer sales for the second straight quarter, the rate was clearly impacted by these capital spending delays. Encouragingly, this growth in printer sales was driven predominantly by our newest hardware systems, as our strengthened technology portfolio delivered strategic wins for all three of our metal printing platforms, and steady growth broadly in Aerospace and Defense markets. These wins bode well for the future, particularly in the high-reliability Healthcare and Industrial markets, which include Aerospace and Defense, and AI infrastructure, areas that have been an increasing focus for us for some time. These trends were true not only in our US markets, but also in Europe, Asia and the Middle East. With regard to materials sales, the decline we experienced was primarily related to short-term inventory management in the dental orthodontics market. More broadly within our Healthcare segment, we delivered impressive results in spite of the broader economy, with 17% growth in our Personalized Healthcare business, and 18% in our manufacturing operations for FDA-approved parts – both crucial elements of our growth strategy moving forward.”

    Dr. Graves continued, “While margins remained under pressure given lower volumes and less favorable mix, we are focused intently on the items within our direct control. In this respect, our cost reduction plans that we announced last quarter are gaining momentum and contributed approximately $5 million of year-over-year improvement in operating expenses in Q1. While this is the progress we had anticipated, as we continue to assess the unpredictability of the current demand environment, we are taking a more conservative view with respect to revenue expectations for the remainder of 2025 and have announced additional, incremental actions to drive profitability improvements. These latest actions will ensure that our organizational capacity is aligned to our current demand environment. These new actions will be taken in the short term and are designed to deliver $20 million of in-year savings for 2025. Our deliberate preservation of R&D investments over the last few years has yielded a significant wave of new technology introduction across the entirety of our product portfolio, including both our polymer and metal platforms. While the short-term impact on profitability from these investments has been painful, based upon the strong customer interest we have received in these new products, we believe the strength of our offerings and the groundwork we have laid through our application specialists, will be a key competitive differentiator in the market as the headwinds on customer capex spending recede and new production inroads are expanded upon. This is particularly true in metal applications, where our new systems are increasingly preferred for high-quality/high-reliability component manufacturing, for applications within the human body, and in advanced industrial systems. With many of these new products now entering the critical phase of commercialization, our focus can expand to cost reduction activities, including significant footprint consolidations, simplification and modernization of our back-office activities, and a reorganization of our workforce to better align it with current market conditions. Given the scale of our company, we believe these actions can deliver profitability and the positive cash performance needed to sustain our development efforts and serve our customers’ production needs as they expand around the world. In addition, with the closing of our Geomagic asset sale in early April, we have strengthened our balance sheet by adding over $100 million of net proceeds, ending the most recent month with approximately $250 million of cash.”

    Dr. Graves concluded, “So, in short, we have followed a very deliberate strategy for the last three years of investing to be a technology leader in both metals and polymers, and one that has full control over all design, production and sourcing operations that are essential to the quality of our products, as the market for new production applications of 3D printing now opens in earnest. While the short term headwinds driven by tariff risks and other factors are painful and require us to implement significant cost savings initiatives, in the longer-term the new opportunities for localized manufacturing within the US, Europe, India and other nations is a significant driver for long-term value creation for all of our stakeholders.”

    First Quarter 2025 Results

    Revenue for the first quarter of 2025 decreased 8% to $94.5 million compared to the same period last year. The revenue decrease primarily reflects lower materials sales, partially offset by growth in services and hardware systems.

    Healthcare Solutions revenue decreased 9% to $41.3 million compared to the prior year period.

    Industrial Solutions revenue decreased 7% to $53.2 million compared to the prior year period.

    Gross profit margin for the first quarter of 2025 was 34.6% compared to 39.8% in the same period last year. Non-GAAP gross profit margin was 35.0% compared to 40.1% in the same period last year and decreased primarily due to lower volumes and unfavorable price and mix.

    Net loss attributable to 3D Systems Corporation increased by $21.0 million to a loss of $37.0 million in the first quarter of 2025 compared to the same period in the prior year.

    Adjusted EBITDA decreased by $3.8 million to a loss of $23.9 million in the first quarter of 2025 compared to the same period last year primarily driven by lower volumes and unfavorable price and mix, partially offset by an improvement in operating expenses as result of previously announced cost reduction actions.

    2025 Outlook

    Due to the risk of protracted weakness in customer capital investment spending, the Company is withdrawing full year guidance for 2025 as it continues to focus on delivering profitability at its current scale. The Company believes with its strong new product portfolio, spanning all metal and polymer platforms, it is well-positioned for accelerated growth and profitability when customer spending on capex rebounds.

    Financial Liquidity

    At March 31, 2025, cash and cash equivalents totaled $135.0 million and decreased $36.3 million since December 31, 2024. This decrease resulted primarily from cash used in operations of $33.8 million and capital expenditures of $2.8 million. At March 31, 2025, the company had total debt, net of deferred financing costs of $212.3 million.

    Q1 2025 Conference Call and Webcast

    The company will host a conference call and simultaneous webcast to discuss these results on May 13, 2025, which may be accessed as follows:

    Date: Tuesday, May 13, 2025
    Time: 8:30 a.m. Eastern Time
    Listen via webcast: www.3dsystems.com/investor
    Participate via telephone: 201-689-8345

    A replay of the webcast will be available approximately two hours after the live presentation at www.3dsystems.com/investor.

    Forward-Looking Statements

    Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. In many cases, forward looking statements can be identified by terms such as “believes,” “belief,” “expects,” “may,” “will,” “estimates,” “intends,” “anticipates” or “plans” or the negative of these terms or other comparable terminology. Forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to the company’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside the control of the company. The factors described under the headings “Forward-Looking Statements” and “Risk Factors” in the company’s periodic filings with the Securities and Exchange Commission, as well as other factors, could cause actual results to differ materially from those reflected or predicted in forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved. The forward-looking statements included are made only as the date of the statement. 3D Systems undertakes no obligation to update or revise any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise, except as required by law.

    About 3D Systems

    More than 35 years ago, Chuck Hull’s curiosity and desire to improve the way products were designed and manufactured gave birth to 3D printing, 3D Systems, and the additive manufacturing industry. Since then, that same spark continues to ignite the 3D Systems team as we work side-by-side with our customers to change the way industries innovate. As a full-service solutions partner, we deliver industry-leading 3D printing technologies, materials and software to high-value markets such as medical and dental; aerospace, space and defense; transportation and motorsports; AI infrastructure; and durable goods. Each application-specific solution is powered by the expertise and passion of our employees who endeavor to achieve our shared goal of Transforming Manufacturing for a Better Future. More information on the company is available at www.3dsystems.com.

     
    3D SYSTEMS CORPORATION
    Condensed Consolidated Balance Sheets
    (Unaudited)
     
    (in thousands, except par value) March 31, 2025   December 31, 2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 135,040     $ 171,324  
    Accounts receivable, net of reserves — $2,621 and $2,433   104,691       101,471  
    Inventories   120,045       118,530  
    Prepaid expenses and other current assets   39,172       34,329  
    Assets held for sale   2,936       3,176  
    Total current assets   401,884       428,830  
    Property and equipment, net   50,918       51,044  
    Intangible assets, net   17,874       18,020  
    Goodwill   15,102       14,879  
    Operating lease right-of-use assets   51,983       50,715  
    Finance lease right-of-use assets   8,504       8,726  
    Long-term deferred income tax assets   2,107       2,063  
    Other assets   34,983       34,569  
    Total assets $ 583,355     $ 608,846  
    LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY      
    Current liabilities:      
    Current operating lease liabilities $ 11,775     $ 9,514  
    Accounts payable   39,767       41,833  
    Accrued and other liabilities   44,310       45,488  
    Customer deposits   5,750       4,712  
    Deferred revenue   32,110       27,298  
    Liabilities held for sale   10,305       10,251  
    Total current liabilities   144,017       139,096  
    Long-term debt, net of deferred financing costs   212,310       211,995  
    Long-term operating lease liabilities   51,525       52,527  
    Long-term deferred income tax liabilities   2,001       2,076  
    Other liabilities   25,829       25,001  
    Total liabilities   435,682       430,695  
    Commitments and contingencies      
    Redeemable non-controlling interest   2,034       1,958  
    Stockholders’ equity:      
    Common stock, $0.001 par value, authorized 220,000 shares; shares issued 135,361 and 135,510 as of March 31, 2025 and December 31, 2024, respectively   135       136  
    Additional paid-in capital   1,596,747       1,593,366  
    Accumulated deficit   (1,399,229 )     (1,362,243 )
    Accumulated other comprehensive loss   (52,014 )     (55,066 )
    Total stockholders’ equity   145,639       176,193  
    Total liabilities, redeemable non-controlling interest and stockholders’ equity $ 583,355     $ 608,846  
                   
    3D SYSTEMS CORPORATION
    Condensed Consolidated Statements of Operations
    (Unaudited)
     
      Three Months Ended
    (in thousands, except per share amounts) March 31, 2025   March 31, 2024
    Revenue:      
    Products $ 54,723     $ 64,051  
    Services   39,817       38,854  
    Total revenue   94,540       102,905  
    Cost of sales:      
    Products   37,365       39,587  
    Services   24,486       22,396  
    Total cost of sales   61,851       61,983  
    Gross profit   32,689       40,922  
    Operating expenses:      
    Selling, general and administrative   49,769       57,304  
    Research and development   19,683       23,480  
    Asset impairment charges   —       —  
    Total operating expenses   69,452       80,784  
    Loss from operations   (36,763 )     (39,862 )
    Non-operating income (loss):      
    Foreign exchange gain, net   1,139       1,909  
    Interest income   953       2,798  
    Interest expense   (581 )     (714 )
    Other (loss) income, net   (160 )     21,386  
    Total non-operating income   1,351       25,379  
    Loss before income taxes   (35,412 )     (14,483 )
    Provision for income taxes   (671 )     (1,371 )
    Loss on equity method investment, net of income taxes   (903 )     (247 )
    Net loss before redeemable non-controlling interest   (36,986 )     (16,101 )
    Less: net loss attributable to redeemable non-controlling interest   —       (100 )
    Net loss attributable to 3D Systems Corporation $ (36,986 )   $ (16,001 )
           
    Net loss per common share:      
    Basic $ (0.28 )   $ (0.12 )
    Diluted $ (0.28 )   $ (0.12 )
           
    Weighted average shares outstanding:      
    Basic   132,462       130,820  
    Diluted   132,462       130,820  
                   

    3D SYSTEMS CORPORATION
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)

      Three Months Ended
    (in thousands) March 31, 2025   March 31, 2024
    OPERATING ACTIVITIES      
    Net loss before redeemable non-controlling interest $ (36,986 )   $ (16,101 )
    Adjustments to reconcile net loss to net cash used in operating activities:      
    Depreciation and amortization   5,712       7,272  
    Accretion of debt discount   316       434  
    Stock-based compensation   4,168       8,252  
    Non-cash operating lease expense   2,371       2,728  
    Provision for inventory obsolescence   1,311       4,259  
    Provision for bad debts   325       (71 )
    Loss on the disposition of businesses, property, equipment and other assets   128       155  
    Gain on debt extinguishment   —       (21,518 )
    Provision for deferred income taxes and reserve adjustments   1,652       714  
    Loss on equity method investment, net of taxes   903       247  
    Changes in operating accounts:      
    Accounts receivable   (1,231 )     (2,391 )
    Inventories   (1,870 )     30  
    Prepaid expenses and other current assets   (4,078 )     (3,277 )
    Accounts payable   (2,799 )     (8,708 )
    Deferred revenue and customer deposits   5,745       7,854  
    Accrued and other liabilities   (4,144 )     (1,017 )
    All other operating activities   (5,309 )     (4,407 )
    Net cash used in operating activities   (33,786 )     (25,545 )
    INVESTING ACTIVITIES      
    Purchases of property and equipment   (2,795 )     (3,190 )
    Proceeds from sale of assets and businesses, net of cash sold   —       3  
    Acquisitions and other investments, net of cash acquired   (550 )     —  
    Other investing activities   (67 )     —  
    Net cash used in investing activities   (3,412 )     (3,187 )
    FINANCING ACTIVITIES      
    Repayment of borrowings/long-term debt   —       (87,150 )
    Taxes paid related to net-share settlement of equity awards   (285 )     (1,710 )
    Other financing activities   (364 )     (327 )
    Net cash used in financing activities   (649 )     (89,187 )
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   1,178       (1,579 )
    Net decrease in cash, cash equivalents and restricted cash   (36,669 )     (119,498 )
    Cash, cash equivalents and restricted cash at the beginning of the year   172,883       333,111  
    Cash, cash equivalents and restricted cash at the end of the period $ 136,214     $ 213,613  
                   
    3D SYSTEMS CORPORATION
    Segment Information
    (Unaudited)
     
      Three Months Ended
    (in millions) March 31, 2025   March 31, 2024
    Revenue:      
    Healthcare Solutions $ 41.3     $ 45.4  
    Industrial Solutions $ 53.2     $ 57.5  
    Total $ 94.5     $ 102.9  
                   
    3D SYSTEMS CORPORATION
    Reconciliations of GAAP to Non-GAAP Measures
     

    Presentation of Information in this Press Release

    3D Systems reports its financial results in accordance with GAAP. Management also reviews and reports certain non-GAAP measures, including: non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP diluted income (loss) per share, non-GAAP Operating expense and Adjusted EBITDA. These non-GAAP measures exclude certain items that management does not view as part of 3D Systems’ core results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Management believes that the non-GAAP measures provide useful additional insight into underlying business trends and results and provide meaningful information regarding the comparison of period-over-period results. Additionally, management uses the non-GAAP measures for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets. 3D Systems’ non-GAAP measures are not calculated in accordance with or as required by GAAP and may not be calculated in the same manner as similarly titled measures used by other companies. These non-GAAP measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.

    To calculate the non-GAAP measures, 3D Systems excludes the impact of the following items:

    • amortization of intangible assets, a non-cash expense, as 3D Systems’ intangible assets were primarily acquired in connection with business combinations;
    • costs incurred in connection with acquisitions and divestitures, such as legal, consulting and advisory fees;
    • stock-based compensation expenses, a non-cash expense;
    • charges related to restructuring and cost optimization plans, impairment charges, including goodwill, and divestiture gains or losses;
    • certain compensation expense related to the 2021 Volumetric acquisition; and
    • costs, including legal fees, related to significant or unusual litigation matters.

    Amortization of intangibles and acquisition and divestiture-related costs are excluded from non-GAAP measures as the timing and magnitude of business combination transactions are not predictable, can vary significantly from period to period and the purchase price allocated to amortizable intangible assets and the related amortization period are unique to each acquisition. Amortization of intangible assets will recur in future periods until such intangible assets have been fully amortized. While intangible assets contribute to the company’s revenue generation, the amortization of intangible assets does not directly relate to the sale of the company’s products or services. Additionally, intangible assets amortization expense typically fluctuates based on the size and timing of the company’s acquisition activity. Accordingly, the company believes excluding the amortization of intangible assets enhances the company’s and investors’ ability to compare the company’s past financial performance with its current performance and to analyze underlying business performance and trends. Although stock-based compensation is a key incentive offered to certain of our employees, the expense is non-cash in nature, and we continue to evaluate our business performance excluding stock-based compensation; therefore, it is excluded from non-GAAP measures. Stock-based compensation expenses will recur in future periods. Charges related to restructuring and cost optimization plans, impairment charges, including goodwill, divestiture gains or losses, and the costs, including legal fees, related to significant or unusual litigation matters are excluded from non-GAAP measures as the frequency and magnitude of these activities may vary widely from period to period. Additionally, impairment charges, including goodwill, are non-cash. Furthermore, the company believes the costs, including legal fees, related to significant or unusual litigation matters are not indicative of our core business’ operations. Finally, 3D Systems excludes contingent consideration recorded as compensation expense related to the 2021 Volumetric acquisition from non-GAAP measures as management evaluates financial performance excluding this expense, which is viewed by management as similar to acquisition consideration.

    The matters discussed above are tax effected, as applicable, in calculating non-GAAP diluted income (loss) per share.

    Adjusted EBITDA, defined as net income, plus income tax (provision) benefit, interest and other income (expense), net, stock-based compensation expense, amortization of intangible assets, depreciation expense, and other non-GAAP adjustments, all as described above, is used by management to evaluate performance and helps measure financial performance period-over-period.

    A reconciliation of GAAP to non-GAAP financial measures is provided in the accompanying schedules.

    Certain columns may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in thousands.

    3D Systems does not provide forward-looking guidance for certain measures on a GAAP basis. The company is unable to provide a quantitative reconciliation of forward-looking non-GAAP gross profit margin, Adjusted EBITDA, and non-GAAP operating expense to the most directly comparable forward-looking GAAP measures without unreasonable effort because certain items, including litigation costs, acquisition expenses, stock-based compensation expense, intangible assets amortization expense, restructuring expenses, and goodwill impairment charges are difficult to predict and estimate. These items are inherently uncertain and depend on various factors, many of which are beyond the company’s control, and as such, any associated estimate and its impact on GAAP performance could vary materially.

    Non-GAAP Gross Profit and Gross Profit Margin (unaudited)

      Three Months Ended
    (in millions) March 31, 2025   March 31, 2024
      Gross Profit   Gross Profit Margin (1)   Gross Profit   Gross Profit Margin (1)
    Gross profit (GAAP) $ 32.7       34.6 %   $ 40.9       39.8 %
    Amortization expense   0.2       0.2 %     0.3       0.3 %
    Restructuring expense   0.2       0.2 %     —       — %
    Gross profit (Non-GAAP) $ 33.1       35.0 %   $ 41.2       40.1 %
                                   

    (1) Calculated as non-GAAP gross profit as a percentage of total revenue.

    Non-GAAP Operating Expense (unaudited)

      Three Months Ended
    (in millions) March 31, 2025   March 31, 2024
    Operating expense (GAAP) $ 69.5     $ 80.8  
    Amortization expense   (0.8 )     (2.0 )
    Stock-based compensation expense   (4.2 )     (8.2 )
    Acquisition and divestiture-related expense   (0.9 )     (0.1 )
    Legal and other expense   (1.1 )     (4.2 )
    Restructuring expense   (0.8 )     —  
    Non-GAAP operating expense $ 61.6     $ 66.3  
                   

    Net Loss Attributable to 3D Systems Corporation to Adjusted EBITDA (unaudited)

      Three Months Ended
    (in millions) March 31, 2025   March 31, 2024
    Net loss attributable to 3D Systems Corporation (GAAP) $ (37.0 )   $ (16.0 )
    Interest income, net   (0.4 )     (2.1 )
    Provision for income taxes   0.7       1.4  
    Depreciation expense   4.7       5.0  
    Amortization expense   1.0       2.3  
    EBITDA (Non-GAAP)   (31.0 )     (9.4 )
    Stock-based compensation expense   4.2       8.2  
    Acquisition and divestiture-related expense   0.9       0.1  
    Legal and other expense   1.1       4.2  
    Restructuring expense   1.0       —  
    Net loss attributable to redeemable non-controlling interest   —       (0.1 )
    Loss on equity method investment, net of tax   0.9       0.2  
    Gain on repurchase of debt   —       (21.5 )
    Other non-operating income   (1.0 )     (1.8 )
    Adjusted EBITDA (Non-GAAP) $ (23.9 )   $ (20.1 )
                   

    Diluted Loss per Share (unaudited)

      Three Months Ended
    (in dollars) March 31, 2025   March 31, 2024
    Diluted loss per share (GAAP) $ (0.28 )   $ (0.12 )
    Amortization expense   0.01       0.02  
    Stock-based compensation expense   0.03       0.06  
    Acquisition and divestiture-related expense   0.01       —  
    Legal and other expense   0.01       0.03  
    Restructuring expense   0.01       —  
    Gain on repurchase of debt   —       (0.16 )
    Loss on equity method investment and other   0.01       —  
    Non-GAAP diluted loss per share $ (0.21 )   $ (0.17 )
                   

    The MIL Network –

  • MIL-OSI: Constellation Software Inc. Announces Results for the First Quarter Ended March 31, 2025 and Declares Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 12, 2025 (GLOBE NEWSWIRE) — Constellation Software Inc. (TSX:CSU) (“Constellation” or the “Company”) today announced its financial results for the first quarter ended March 31, 2025 and declared a $1.00 per share dividend payable on July 11, 2025 to all common shareholders of record at close of business on June 20, 2025. This dividend has been designated as an eligible dividend for the purposes of the Income Tax Act (Canada). Please note that all dollar amounts referred to in this press release are in U.S. Dollars unless otherwise stated.

    The following press release should be read in conjunction with the Company’s Unaudited Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2025 and the accompanying notes, our Management Discussion and Analysis for the three months ended March 31, 2025 and with our annual Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (“IFRS”) and our annual Management’s Discussion and Analysis for the year ended December 31, 2024, which can be found on SEDAR+ at www.sedarplus.com and on the Company’s website www.csisoftware.com. Additional information about the Company is also available on SEDAR+ at www.sedarplus.com

    Q1 2025 Headlines:

    • Revenue increased 13% (0.3% organic growth, 2% after adjusting for changes in foreign exchange rates) to $2,654 million compared to $2,353 million in Q1 2024.
    • Net income attributable to common shareholders was $115 million for Q1 2025 ($5.44 on a diluted per share basis), compared to net income attributable to common shareholders of $105 million ($4.95 on a diluted per share basis) in Q1 2024.
    • A number of acquisitions were completed for aggregate cash consideration of $94 million (which includes acquired cash).   Deferred payments associated with these acquisitions have an estimated value of $39 million resulting in total consideration of $133 million.
    • On January 31, 2025, the Company purchased 8,300,029 shares in Asseco Poland S.A. (“Asseco”) representing approximately 9.99% of the issued shares in Asseco. The shares were acquired at a price of 85 PLN per share for total consideration of $174 million.   During the three months ended March 31, 2025, the Company recorded a gain of $157 million within other comprehensive income reduced by transaction costs of $2 million.
    • Cash flows from operations (“CFO”) were $827 million, an increase of 12%, or $90 million, compared to $737 million for the comparable period in 2024.
    • Free cash flow available to shareholders1 (“FCFA2S”) were $510 million, an increase of 14%, or $64 million, compared to $446 million for the comparable period in 2024.

    Total revenue for the quarter ended March 31, 2025 was $2,654 million, an increase of 13%, or $300 million, compared to $2,353 million for the comparable period in 2024. The increase is primarily attributable to growth from acquisitions as the Company experienced organic growth of 0.3% in the quarter, 2% after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. For acquired companies, organic growth is calculated as the difference between actual revenues achieved by each company in the financial period following acquisition compared to the estimated revenues they achieved in the corresponding financial period preceding the date of acquisition by Constellation. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.

    The net income attributable to common shareholders of CSI for the quarter ended March 31, 2025 was $115 million compared to $105 million for the same period in 2024. On a per share basis this translated into net income per basic and diluted share of $5.44 in the quarter ended March 31, 2025 compared to $4.95 for the same period in 2024.   There was no change in the number of shares outstanding.

    For the quarter ended March 31, 2025, CFO increased $90 million to $827 million compared to $737 million for the same period in 2024 representing an increase of 12%.

    For the quarter ended March 31, 2025, FCFA2S increased $64 million to $510 million compared to $446 million for the same period in 2024 representing an increase of 14%.

    1. See Non-IFRS measures.

    Forward Looking Statements

    Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Constellation or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Constellation assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.

    Non-IFRS Measures

    Free cash flow available to shareholders ‘‘FCFA2S’’ refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on debt, debt transaction costs, payments of lease obligations, the IRGA / TSS membership liability revaluation charge, and property and equipment purchased, and includes interest and dividends received, and the proceeds from sale of interest rate caps. The portion of this amount applicable to non-controlling interests is then deducted. We believe that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if we do not make any acquisitions, or investments, and do not repay any debts. While we could use the FCFA2S to pay dividends or repurchase shares, our objective is to invest all of our FCFA2S in acquisitions which meet our hurdle rate.

    FCFA2S is not a recognized measure under IFRS and, accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities.

    The following table reconciles FCFA2S to net cash flows from operating activities:

        Three months ended March 31,    
        2025   2024    
      ($ in millions)  
               
    Net cash flows from operating activities   827     737      
    Adjusted for:          
    Interest paid on lease obligations   (4 )   (3 )    
    Interest paid on debt   (62 )   (41 )    
    Proceeds from sale of interest rate cap   –     –      
    Debt transaction costs   (0 )   (11 )    
    Payments of lease obligations   (31 )   (29 )    
    IRGA / TSS membership liability revaluation charge   (94 )   (81 )    
    Property and equipment purchased   (15 )   (10 )    
    Interest and dividends received   11     6      
               
        631     568      
    Less amount attributable to          
    Non-controlling interests   (121 )   (122 )    
               
    Free cash flow available to shareholders   510     446      
               
    Due to rounding, certain totals may not foot.          
               

    About Constellation Software Inc.

    Constellation’s common shares are listed on the Toronto Stock Exchange under the symbol “CSU”. Constellation acquires, manages and builds vertical market software businesses.

    For further information:

    Jamal Baksh
    Chief Financial Officer
    (416) 861-9677
    info@csisoftware.com
    www.csisoftware.com

    SOURCE: CONSTELLATION SOFTWARE INC.

     
    CONSTELLATION SOFTWARE INC.
    Condensed Consolidated Interim Statements of Financial Position
    (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
             
    Unaudited      
        March 31, 2025     December 31, 2024     March 31, 2024  
             
    Assets      
             
    Current assets:      
      Cash $ 2,477     $ 1,980     $ 2,078  
      Accounts receivable   1,363       1,291       1,205  
      Unbilled revenue   406       369       361  
      Inventories   58       56       56  
      Other assets   637       596       575  
          4,942       4,293       4,276  
             
    Non-current assets:      
      Property and equipment   222       223       142  
      Right of use assets   346       328       322  
      Deferred income taxes   237       219       157  
      Equity securities   353       13       14  
      Other assets   318       316       291  
      Intangible assets   7,477       7,465       6,746  
          8,954       8,565       7,671  
             
    Total assets $ 13,896     $ 12,857     $ 11,946  
             
    Liabilities and Shareholders’ Equity      
             
    Current liabilities:      
      Debt with recourse to Constellation Software Inc. $ 419     $ 303     $ 276  
      Debt without recourse to Constellation Software Inc.   365       319       348  
      Accounts payable and accrued liabilities   1,449       1,590       1,304  
      Dividends payable   21       21       21  
      Deferred revenue   2,511       1,967       2,272  
      Provisions   23       22       8  
      Acquisition holdback payables   216       219       172  
      Lease obligations   119       115       115  
      Income taxes payable   130       111       135  
          5,254       4,667       4,653  
             
    Non-current liabilities:      
      Debt with recourse to Constellation Software Inc.   1,865       1,855       1,832  
      Debt without recourse to Constellation Software Inc.   1,687       1,689       1,470  
      Deferred income taxes   692       673       634  
      Acquisition holdback payables   145       133       105  
      Lease obligations   266       252       244  
      Other liabilities   346       300       257  
          5,001       4,903       4,542  
             
    Total liabilities   10,255       9,569       9,195  
             
             
    Shareholders’ equity:      
      Capital stock   99       99       99  
      Accumulated other comprehensive income (loss)   (63 )     (224 )     (145 )
      Retained earnings   3,010       2,919       2,358  
      Non-controlling interests   595       493       439  
          3,641       3,288       2,752  
             
             
             
    Total liabilities and shareholders’ equity $ 13,896     $ 12,857     $ 11,946  
             
     
    CONSTELLATION SOFTWARE INC.
    Condensed Consolidated Interim Statements of Income (loss)
    (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
             
           
    Unaudited      
        Three months ended March 31,
          2025       2024  
             
             
    Revenue      
    License $ 96     $ 88  
    Professional services   487       470  
    Hardware and other   74       59  
    Maintenance and other recurring   1,996       1,737  
          2,654       2,353  
             
    Expenses      
    Staff   1,412       1,293  
    Hardware   40       35  
    Third party license, maintenance and professional services   254       215  
    Occupancy   17       14  
    Travel, telecommunications, supplies, software and equipment   131       112  
    Professional fees   47       38  
    Other, net   53       50  
    Depreciation   46       44  
    Amortization of intangible assets   272       242  
          2,272       2,042  
             
             
    Foreign exchange loss (gain)   32       (18 )
    IRGA/TSS Membership liability revaluation charge   94       81  
    Finance and other expense (income)   (45 )     (9 )
    Bargain purchase gain   –       (2 )
    Impairment of intangible and other non-financial assets   3       10  
    Redeemable preferred securities expense (income)   –       58  
    Finance costs   71       67  
          154       186  
             
    Income (loss) before income taxes   227       125  
             
    Current income tax expense (recovery)   136       127  
    Deferred income tax expense (recovery)   (49 )     (75 )
    Income tax expense (recovery)   87       52  
             
    Net income (loss)   140       74  
             
    Net income (loss) attributable to:      
    Common shareholders of Constellation Software Inc.   115       105  
    Non-controlling interests   24       (31 )
    Net income (loss)   140       74  
             
    Earnings per common share of Constellation Software Inc.      
      Basic and diluted $ 5.44     $ 4.95  
             
             
     
    CONSTELLATION SOFTWARE INC.
    Condensed Consolidated Interim Statements of Income (loss)
    (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
             
             
    Unaudited        
      Three months ended March 31,
      2025   2024
             
    Net income (loss) $ 140     $ 74  
             
    Items that are or may be reclassified subsequently to net income (loss):        
             
    Foreign currency translation differences from foreign operations and other, net of tax   79       (48 )
             
    Items that will not be reclassified to net income (loss):        
             
    Changes in the fair value of equity investments at FVOCI   155       –  
             
    Other comprehensive income (loss), net of income tax   234       (48 )
             
    Total comprehensive income (loss) $ 374     $ 25  
             
    Total other comprehensive income (loss) attributable to:        
    Common shareholders of Constellation Software Inc.   161       (40 )
    Non-controlling interests   74       (8 )
    Total other comprehensive income (loss) $ 234     $ (48 )
             
    Total comprehensive income (loss) attributable to:        
    Common shareholders of Constellation Software Inc.   276       65  
    Non-controlling interests   98       (40 )
    Total comprehensive income (loss) $ 374     $ 25  
                   
     
    CONSTELLATION SOFTWARE INC.
    Condensed Consolidated Interim Statement of Changes in Equity
    (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
                   
    Unaudited            
    Three months ended March 31, 2025            
        Equity Attributable to Common Shareholders of CSI
    		      
        Capital
    stock
    		     Accumulated other comprehensive income (loss)
    		   Retained
    earnings
    		     Total
    		     Non-controlling
    interests
    		     Total
    equity
    		  
                   
    Balance at January 1, 2025 $ 99     $ (224 )   $ 2,919     $ 2,795     $ 493     $ 3,288  
                   
    Total comprehensive income (loss):            
                   
    Net income (loss)   –       –       115       115       24       140  
                   
    Other comprehensive income (loss)            
                   
    Foreign currency translation differences from            
      foreign operations and other, net of tax and            
      changes in the fair value of equity investments at FVOCI   –       161       –       161       74       234  
                   
                 
    Total other comprehensive income (loss)   –       161       –       161       74       234  
                   
    Total comprehensive income (loss)   –       161       115       276       98       374  
                   
    Transactions with owners, recorded directly in equity            
                   
    Other movements in non-controlling interests   –       –       (4 )     (4 )     4       (0 )
                   
    Dividends paid to non-controlling interests   –       –       –       –       (0 )     (0 )
                   
    Dividends to shareholders of the Company   –       –       (21 )     (21 )     –       (21 )
                   
    Balance at March 31, 2025 $ 99     $ (63 )   $ 3,010     $ 3,046     $ 595     $ 3,641  
                   
     
    CONSTELLATION SOFTWARE INC.
    Condensed Consolidated Interim Statement of Changes in Equity
    (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
                   
    Unaudited            
    Three months ended March 31, 2024            
                   
        Equity Attributable to Common Shareholders of CSI
    		      
        Capital
    stock
    		     Accumulated other comprehensive income (loss)
    		   Retained
    earnings
    		     Total
    		     Non-controlling interests
    		     Total
    equity
    		  
                   
    Balance at January 1, 2024 $ 99     $ (99 )   $ 1,876     $ 1,877     $ 85     $ 1,961  
                   
    Total comprehensive income (loss):            
                   
    Net income (loss)   –       –       105       105       (31 )     74  
                   
    Other comprehensive income (loss)            
                   
    Foreign currency translation differences from            
      foreign operations and other, net of tax   –       (40 )     –       (40 )     (8 )     (48 )
                   
    Total other comprehensive income (loss)   –       (40 )     –       (40 )     (8 )     (48 )
                   
    Total comprehensive income (loss)   –       (40 )     105       65       (40 )     25  
                   
    Transactions with owners, recorded directly in equity            
                   
    Non-controlling interests arising from business combinations   –       –       –       –       (0 )     (0 )
                   
    Conversion of Lumine Special Shares to subordinate voting shares of Lumine and settlement of accrued dividend on Lumine Special Shares through the issuance of subordinate voting shares of Lumine   –       –       –       –       872       872  
                   
    Conversion of Lumine Preferred Shares to subordinate voting shares of Lumine and settlement of accrued dividend on Lumine Preferred Shares through the issuance of subordinate voting shares of Lumine   –       (6 )     400       394       (394 )     –  
                   
    Other movements in non-controlling interests   –       –       (1 )     (1 )     1       0  
                   
    Dividends paid to non-controlling interests   –       –       –       –       (85 )     (85 )
                   
    Dividends to shareholders of the Company     –       (21 )     (21 )     –       (21 )
                   
    Balance at March 31, 2024 $ 99     $ (145 )   $ 2,358     $ 2,313     $ 439     $ 2,752  
                   
     
    CONSTELLATION SOFTWARE INC.
    Condensed Consolidated Interim Statements of Cash Flows
    (In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)
               
               
    Unaudited      
          Three months ended March 31,
            2025       2024  
               
    Cash flows from (used in) operating activities:      
      Net income (loss) $ 140     $ 74  
      Adjustments for:      
        Depreciation   46       44  
        Amortization of intangible assets   272       242  
        IRGA/TSS Membership liability revaluation charge   94       81  
        Finance and other expense (income)   (45 )     (9 )
        Bargain purchase (gain)   –       (2 )
        Impairment of intangible and other non-financial assets   3       10  
        Redeemable preferred securities expense (income)   –       58  
        Finance costs   71       67  
        Income tax expense (recovery)   87       52  
        Foreign exchange loss (gain)   32       (18 )
        Depreciation of third party costs   5       –  
      Change in non-cash operating assets and liabilities      
        exclusive of effects of business combinations   231       208  
      Transaction costs associated with equity securities classified as FVOCI   (2 )     –  
      Income taxes paid   (107 )     (68 )
      Net cash flows from (used in) operating activities   827       737  
               
    Cash flows from (used in) financing activities:      
      Interest paid on lease obligations   (4 )     (3 )
      Interest paid on debt   (62 )     (41 )
      Increase (decrease) in CSI facility   –       (578 )
      Increase (decrease) in Topicus revolving credit debt facility without recourse to CSI   31       114  
      Proceeds from issuance of Senior Notes   –       1,000  
      Proceeds from issuance of debt facilities without recourse to CSI   27       112  
      Repayments of debt facilities without recourse to CSI   (30 )     (18 )
      Other financing activities   (1 )     (2 )
      Dividends paid to non-controlling interests   (0 )     (85 )
      Debt transaction costs   (0 )     (11 )
      Payments of lease obligations, net of sublease receipts   (31 )     (29 )
      Distribution to the Joday Group   –       (64 )
      Principal repayments to the Joday Group pursuant to the Call Notice   –       (22 )
      Dividends paid to common shareholders of the Company   (21 )     (21 )
      Net cash flows from (used in) in financing activities   (91 )     351  
               
    Cash flows from (used in) investing activities:      
      Acquisition of businesses   (94 )     (223 )
      Cash obtained with acquired businesses   11       35  
      Post-acquisition settlement payments, net of receipts   (16 )     (76 )
      Purchases of investments and other assets   (175 )     (0 )
      Proceeds from sales of other investments and other assets   –       4  
      Decrease (increase) in restricted cash   7       (11 )
      Interest, dividends and other proceeds received   11       5  
      Property and equipment purchased   (15 )     (10 )
      Net cash flows from (used in) investing activities   (271 )     (277 )
               
    Effect of foreign currency on      
      cash   33       (17 )
               
    Increase (decrease) in cash   497       794  
               
    Cash, beginning of period $ 1,980     $ 1,284  
               
    Cash, end of period $ 2,477     $ 2,078  
               

    The MIL Network –

  • MIL-OSI USA: Cortez Masto, Colleagues Demand Answers from Department of Education on Mental Health Funding Cuts

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto
    Washington, D.C. – U.S. Senator Catherine Cortez Masto (D-Nev.) led 20 of her Senate colleagues in a letter to U.S. Department of Education Secretary Linda McMahon demanding answers on recent reports that the Department had cut approximately $1 billion in federal mental health grants to help schools hire more psychologists, counselors, and other mental health workers. The Senators also expressed concern about how these cuts will affect schools’ ability to support students and their behavioral health needs and questioned how the Department plans to address the youth mental health crisis.
    “This abrupt decision to cut critical funding that was enacted into law under the Bipartisan Safer Communities Act and annual appropriations acts and already planned to be used in states, communities, and schools is deeply troubling and not consistent with our intent of providing these funds to support the health and wellbeing of children across the nation,” wrote the Senators. “We are requesting more information on the Department of Education’s decision and the Department’s plan to re-envision and re-compete its mental health program funds.”
    Senator Cortez Masto has been a leader in fighting for critical mental health dollars for students in Nevada and across the country. In 2022, Senator Cortez Masto helped pass the Bipartisan Safer Communities Act, and fought to ensure the bill included $1 billion for the Mental Health Services Professional Demonstration Grant and the School-Based Mental Health Services Program.
    These grants have shown to be extremely effective at addressing the shortage of school mental health professionals and increasing access to comprehensive school mental health services. School-based mental health professionals have been proven to improve staff retention, help keep students in school, and promote learning environments where students feel safe, supported, and ready to learn.
    “The uncertainty that is being created by the Department of Education is jeopardizing the work that has been done to increase comprehensive youth mental and behavioral health services, and the availability of school-based mental health professionals across the country,” continued the Senators.
    Additional signatories include Senator Tammy Baldwin (D-Wis.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Chris Coons (D-Del.), Dick Durbin (D-Ill.), Ruben Gallego (D-Ariz.), Kirsten Gillibrand (D-N.Y.), Martin Heinrich (D-N.M.), Mazie Hirono (D-Hawaii), Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Jeff Merkley (D-Ore.), Alex Padilla (D-Calif.), Jack Reed (D-R.I.), Jacky Rosen (D-Nev.), Bernie Sanders (D-Vt.), Jeanne Shaheen (D-N.H.), Tina Smith (D-Minn.), Raphael Warnock (D-Ga.), and Ron Wyden (D-Ore.).
    Read the full letter here.
    Senator Cortez Masto has pushed multiple Departments under the Trump Administration for detailed, public information regarding the impacts of President Trump’s federal funding freeze, hiring freeze, and terminations on Nevada – including to the Department of the Interior, the U.S. Forest Service, the National Nuclear Security Administration, the Department of Veterans Affairs, Department of Agriculture, General Services Administration, Department of Health and Human Services, and Consumer Finance Protection Bureau.  

    MIL OSI USA News –

  • MIL-OSI: Altus Group Announces Q2 2025 Dividend Payment

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 12, 2025 (GLOBE NEWSWIRE) — Altus Group Limited (ʺAltus Group” or “the Company”) (TSX: AIF), a leading provider of commercial real estate (“CRE”) intelligence, announced today that its Board of Directors approved the payment of a cash dividend of $0.15 per common share for the second quarter ending June 30, 2025. Payment will be made on July 15, 2025 to common shareholders of record as at June 30, 2025.

    Altus Group’s Dividend Reinvestment Plan (“DRIP”) permits eligible shareholders to direct their cash dividends to be reinvested in additional common shares of the Company. For shareholders who wish to reinvest their dividends under the DRIP, Altus Group intends to issue common shares from treasury at a price equal to 96% of the weighted average closing price of the shares for the five trading days preceding the dividend payment date. Full details of the DRIP program are available on the Company’s website.

    Altus Group confirms that all dividends paid or deemed to be paid to its common shareholders qualify as ʺeligible dividendsʺ for purposes of subsection 89(14) of the Income Tax Act (Canada) and similar provincial and territorial legislation, unless indicated otherwise.

    About Altus Group

    Altus connects data, analytics, and expertise to deliver the intelligence necessary to drive optimal CRE performance.  The industry’s top leaders rely on our market-leading solutions and expertise to power performance and mitigate risk. Our global team of ~ 2,000 experts are making a lasting impact on an industry undergoing unprecedented change – helping shape the cities where we live, work, and build thriving communities. For more information about Altus (TSX: AIF) please visit www.altusgroup.com.

    FOR FURTHER INFORMATION PLEASE CONTACT:

    Martin Miasko
    Sr. Director, Investor Relations and Strategy, Altus Group
    (416) 204-5136
    martin.miasko@altusgroup.com

    The MIL Network –

  • MIL-OSI: KBRA Affirms Ratings for Heritage Commerce Corp

    Source: GlobeNewswire (MIL-OSI)

    SAN JOSE, Calif., May 12, 2025 (GLOBE NEWSWIRE) — Heritage Commerce Corp (NASDAQ: HTBK) (the “Company”), parent company of Heritage Bank of Commerce (the “Bank”), announced today that Kroll Bond Rating Agency, LLC (“KBRA”) affirmed the Company’s senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2. KBRA also affirmed deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for the Bank. They graded the outlook of the long-term ratings for both the Company and the Bank as stable on May 9, 2025.

    “I am pleased to see that KBRA’s latest ratings report highlights our disciplined and conservative approach to liquidity and capital management, as it shielded the Company during the more uncertain credit and liquidity environment in recent years,” said Clay Jones, President and Chief Executive Officer. “They also recognized our solid credit quality position due to our prudent underwriting and robust monitoring.”

    The complete KBRA press release on Heritage Commerce Corp is available on KBRA’s website, https://www.krollbondratings.com. The KBRA press release, credit ratings, and analysis constitute part of the information contained therein are, and must be construed solely as, statements of opinion of KBRA and not statements of fact or recommendations of KBRA or the Company to purchase, sell or hold any of the Company’s securities.

    Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com.

    Member FDIC

    For additional information, email:
    InvestorRelations@herbank.com

    The MIL Network –

  • MIL-OSI: Vital Energy Reports First-Quarter 2025 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    TULSA, OK, May 12, 2025 (GLOBE NEWSWIRE) — Vital Energy, Inc. (NYSE: VTLE) (“Vital Energy” or the “Company”) today reported first-quarter 2025 financial and operating results. Supplemental slides have been posted to the Company’s website and can be found at www.vitalenergy.com. A conference call to discuss results is planned for 7:30 a.m. CT, Tuesday, May 13, 2025. A webcast will be available through the Company’s website.

    First-Quarter 2025 Highlights

    • Reduced total and Net Debt1 by $145.0 million and $133.5 million, respectively, through free cash flow, net changes in working capital, and the sale of non-core assets
    • Reported a net loss of $18.8 million, Adjusted Net Income1 of $89.5 million and cash flow from operating activities of $351.0 million
    • Generated Consolidated EBITDAX1 of $359.7 million and Adjusted Free Cash Flow1 of $64.5 million
    • Reported in-line capital investments of $252.7 million, excluding non-budgeted acquisitions and leasehold expenditures
    • Reported lease operating expense (“LOE”) of $103.5 million or $8.20 per BOE, beating guidance
    • Produced 140.2 thousand barrels of oil equivalent per day (“MBOE/d”) and oil of 64.9 thousand barrels of oil per day (“MBO/d”), within guidance

    “Our first quarter performance highlights the quality of our inventory and the ongoing success of our optimization efforts,” said Jason Pigott, President and Chief Executive Officer. “Our team is focused on generating sustainable efficiency gains and lower costs across our business and delivering on our targets for Adjusted Free Cash Flow and debt reduction.”

    “Our hedge position for the remainder of the year has reduced our near-term price risks and today we have about 90% of our expected oil production swapped at around $71 per barrel WTI,” continued Pigott. “The quality of our assets and structure of our services contracts provide tremendous flexibility in how we choose to allocate future capital. We are closely monitoring commodity prices and services costs and have multiple options to quickly adjust our plans.”

    First-Quarter 2025 Financial and Operations Summary

    Financial Results. The Company had a net loss of $18.8 million, or $(0.50) per diluted share. Results were impacted by a non-cash pre-tax impairment loss on oil and gas properties of $158.2 million. Adjusted Net Income1 was $89.5 million, or $2.37 per adjusted diluted share. Cash flows from operating activities were $351.0 million and Consolidated EBITDAX1 was $359.7 million.

    _____________________
    1Non-GAAP financial measure; please see supplemental reconciliations of GAAP to non-GAAP financial measures at the end of this release.

    The impairment was the result of the full cost ceiling limitation, driven in part by the decline in the trailing 12-month oil price calculation, and excludes the value of $145.9 million for the Company’s commodity derivative positions and only includes the 185 proved undeveloped locations in the Company’s reserve report out of approximately 925 inventory locations.

    Non-core Divestiture. On March 6, 2025, Vital Energy closed on the sale of non-core assets in Reagan County for $20.5 million, including transaction expenses. The assets comprised approximately 9,100 net acres, production of 1,300 BOE/d (12% oil) and did not include any of the Company’s inventory locations. As a result of the sale, Vital Energy’s asset retirement obligation will be reduced by $8.4 million.

    Production. Vital Energy’s total and oil production averaged 140,159 BOE/d and 64,893 BO/d, respectively, with both exceeding the midpoint of guidance. Results were driven by accelerated TIL’s on wells drilled in the southern Delaware Basin.

    Capital Investments. Total capital investments, excluding non-budgeted acquisitions and leasehold expenditures, were $253 million, within guidance, and include drilling efficiencies that pulled forward capital into the quarter.

    Investments included $218 million in drilling and completions, $21 million in infrastructure investments, $8 million in other capitalized costs and $6 million in land, exploration and data-related costs.

    Operating Expenses. LOE was 12% below guidance midpoint at $103.5 million, or $8.20 per BOE. The beat was related to actual expenses on the Point Energy assets being lower than initial estimates in both the fourth quarter of 2024 and first-quarter 2025 and lower workover activity in the period.

    General and Administrative (“G&A”) Expenses. Total G&A expenses were below guidance at $22.7 million, or $1.80 per BOE.

    Liquidity. At March 31, 2025, the Company had $735 million outstanding on its $1.5 billion senior secured credit facility and cash and cash equivalents of $29 million.

    As of May 8, 2025, through its regular semi-annual redetermination process, the Company’s lenders have set the senior secured credit facility’s borrowing base and elected commitment at $1.4 billion, a $100 million reduction from the prior amount of $1.5 billion.

    2025 Outlook

    Vital Energy remains committed to maximizing cash flow and reducing debt. Cash flows are supported by its significant hedge position, with ~90% of expected oil production for the remainder of the year swapped at an average WTI price of $70.61 per barrel.

    While the Company today reiterated its full-year 2025 outlook, it is closely monitoring commodity prices and service costs and has significant flexibility to adjust its development plans, should market conditions warrant, with no rig or completions contracts extending beyond March 2026.

    For full-year 2025, the Company expects to generate approximately $265 million of Adjusted Free Cash Flow at current oil prices of ~$59 per barrel WTI, inclusive of hedging proceeds, and to reduce Net Debt by approximately $300 million, inclusive of proceeds from the non-core asset sale in March.

    Second-Quarter 2025 Guidance

    The table below reflects the Company’s guidance for production and capital investments.

       
      2Q-25E
    Total production (MBOE/d) 133.0 – 139.0
    Oil production (MBO/d) 61.0 – 65.0
    Capital investments, excluding non-budgeted acquisitions ($ MM) $215 – $245
       
       

    The table below reflects the Company’s guidance for select revenue and expense items.

       
      2Q-25E
    Average sales price realizations (excluding derivatives):  
    Oil (% of WTI) 101%
    NGL (% of WTI) 24%
    Natural gas (% of Henry Hub) 14%
       
    Net settlements received (paid) for matured commodity derivatives ($ MM):  
    Oil $69
    NGL $3
    Natural gas $21
       
    Selected average costs & expenses:  
    Lease operating expenses ($ MM) $112 – $118
    Production and ad valorem taxes (% of oil, NGL and natural gas sales revenues) 6.60%
    Oil transportation and marketing expenses ($ MM) $10.7 – $11.7
    Gas gathering, processing and transportation expenses ($ MM) $6.7 – $7.7
    General and administrative expenses (excluding LTIP and transaction expenses, $ MM) $21.0 – $22.5
    General and administrative expenses (LTIP cash, $ MM) $0.6 – $0.7
    General and administrative expenses (LTIP non-cash, $ MM) $3.0 – $3.5
    Depletion, depreciation and amortization ($ MM) $180 – $190
       

    Conference Call Details

    Vital Energy plans to host a conference call at 7:30 a.m. CT on Tuesday, May 13, 2025, to discuss its first-quarter 2025 financial and operating results. Supplemental slides will be posted to the Company’s website. Interested parties are invited to listen to the call via the Company’s website at www.vitalenergy.com, under the tab for “Investor Relations | News & Presentations | Upcoming Events.”

    About Vital Energy

    Vital Energy, Inc. is an independent energy company with headquarters in Tulsa, Oklahoma. Vital Energy’s business strategy is focused on the acquisition, exploration and development of oil and natural gas properties in the Permian Basin of West Texas.

    Additional information about Vital Energy may be found on its website at www.vitalenergy.com.

    Forward-Looking Statements
    This press release and any oral statements made regarding the contents of this release, including in the conference call referenced herein, contain forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, that address activities that Vital Energy assumes, plans, expects, believes, intends, projects, indicates, enables, transforms, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. Such statements are not guarantees of future performance and involve risks, assumptions and uncertainties.

    General risks relating to Vital Energy include, but are not limited to: the volatility of oil, NGL and natural gas prices, including the Company’s area of operation in the Permian Basin; changes, uncertainty and instability in domestic and global production, supply and demand for oil, NGL and natural gas, and actions by the Organization of the Petroleum Exporting Countries members and other oil exporting nations (“OPEC+”); changes in general economic, business or industry conditions and market volatility, including as a result of slowing growth, inflationary pressures, monetary policy, tariffs, trade barriers, price and exchange controls and other regulatory requirements, including such changes that may be implemented by the United States (“U.S.”) and foreign governments; the Company’s ability to execute its strategies, including its ability to successfully identify and consummate strategic acquisitions at purchase prices that are accretive to its financial results and to successfully integrate acquired businesses, assets and properties; the Company’s ability to optimize spacing, drilling and completions techniques in order to maximize its rate of return, cash flows from operations and stockholder value; the ongoing instability and uncertainty in the U.S. and international energy, financial and consumer markets that could adversely affect the liquidity available to the Company and its customers and the demand for commodities, including oil, NGL and natural gas; competition in the oil and gas industry; the Company’s ability to discover, estimate, develop and replace oil, NGL and natural gas reserves and inventory; insufficient transportation capacity in the Permian Basin and challenges associated with such constraint, and the availability and costs of sufficient gathering, processing, storage and export capacity; a decrease in production levels which may impair the Company’s ability to meet its contractual obligations and ability to retain its leases; risks associated with the uncertainty of potential drilling locations and plans to drill in the future; the inability of significant customers to meet their obligations; revisions to the Company’s reserve estimates as a result of changes in commodity prices, decline curves and other uncertainties; the availability and costs of drilling and production equipment, supplies, labor and oil and natural gas processing and other services; ongoing war and political instability in Ukraine, Israel and the Middle East and the effects of such conflicts on the global hydrocarbon market and supply chains; risks related to the geographic concentration of the Company’s assets; the Company’s ability to hedge commercial risk, including commodity price volatility, and regulations that affect the Company’s ability to hedge such risks; the Company’s ability to continue to maintain the borrowing capacity under its Senior Secured Credit Facility or access other means of obtaining capital and liquidity, especially during periods of sustained low commodity prices; the Company’s ability to comply with restrictions contained in its debt agreements, including its Senior Secured Credit Facility and the indentures governing its senior unsecured notes, as well as debt that could be incurred in the future; the Company’s ability to generate sufficient cash to service its indebtedness, fund its capital requirements and generate future profits; drilling and operating risks, including but not limited to, risks related to hydraulic fracturing, securing sufficient electricity to produce its wells without limitation, natural disasters and other matters beyond the Company’s control; U.S. and international economic conditions and legal, tax, political and administrative developments, including the effects of energy, trade and environmental policies and existing and future laws and government regulations; the Company’s ability to comply with federal, state and local regulatory requirements; the impact of repurchases, if any, of securities from time to time; the Company’s ability to maintain the health and safety of, as well as recruit and retain, qualified personnel, including senior management or other key personnel, necessary to operate its business; evolving cybersecurity risks such as those involving unauthorized access, denial-of-service attacks, third-party service provider failures, malicious software, data privacy breaches by employees, insiders or others with authorized access, cyber or phishing attacks, ransomware, social engineering, physical breaches or other actions; and the Company’s belief that the outcome of any current legal proceedings will not materially affect its financial results and operations, and other factors, including those and other risks described in its Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”), subsequent Quarterly Reports on Form 10-Q and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). These documents are available through Vital Energy’s website at www.vitalenergy.com under the tab “Investor Relations” or through the SEC’s Electronic Data Gathering and Analysis Retrieval System at www.sec.gov. Any of these factors could cause Vital Energy’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, Vital Energy can give no assurance that its future results will be as estimated. Any forward-looking statement speaks only as of the date on which such statement is made. Vital Energy does not intend to, and disclaims any obligation to, correct, update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

    This press release and any accompanying disclosures include financial measures that are not in accordance with generally accepted accounting principles (“GAAP”), such as Adjusted Free Cash Flow, Adjusted Net Income, Net Debt and Consolidated EBITDAX. While management believes that such measures are useful for investors, they should not be used as a replacement for financial measures that are in accordance with GAAP. For a reconciliation of such non-GAAP financial measures to the nearest comparable measure in accordance with GAAP, please see the supplemental financial information at the end of this press release.

    Unless otherwise specified, references to “average sales price” refer to average sales price excluding the effects of the Company’s derivative transactions.

    All amounts, dollars and percentages presented in this press release are rounded and therefore approximate.

       
     
       
       
       
     
       
    Vital Energy, Inc.
    Selected operating data
       
     
       
       
      Three months ended March 31,
        2025       2024
      (unaudited)
    Sales volumes:      
    Oil (MBbl)   5,840       5,327
    NGL (MBbl)   3,484       2,934
    Natural gas (MMcf)   19,742       18,534
    Oil equivalent (MBOE)(1)   12,614       11,349
    Average daily oil equivalent sales volumes (BOE/d)(1)   140,159       124,719
    Average daily oil sales volumes (Bbl/d)(1)   64,893       58,534
    Average sales prices(1):      
    Oil ($/Bbl)(2) $ 72.31     $ 78.06
    NGL ($/Bbl)(2) $ 17.72     $ 16.05
    Natural gas ($/Mcf)(2) $ 1.38     $ 0.98
    Average sales price ($/BOE)(2) $ 40.54     $ 42.39
    Oil, with commodity derivatives ($/Bbl)(3) $ 75.78     $ 74.95
    NGL, with commodity derivatives ($/Bbl)(3) $ 17.09     $ 15.92
    Natural gas, with commodity derivatives ($/Mcf)(3) $ 1.52     $ 1.41
    Average sales price, with commodity derivatives ($/BOE)(3) $ 42.18     $ 41.60
    Selected average costs and expenses per BOE sold(1):      
    Lease operating expenses $ 8.20     $ 9.32
    Production and ad valorem taxes   2.63       2.70
    Oil transportation and marketing expenses   0.80       0.87
    Gas gathering, processing and transportation expenses   0.54       0.21
    General and administrative (excluding LTIP and transaction expenses)   1.56       2.11
    Total selected operating expenses $ 13.73     $ 15.21
    General and administrative (LTIP):      
    LTIP cash $ (0.02 )   $ 0.17
    LTIP non-cash $ 0.26     $ 0.28
    General and administrative (transaction expenses) $ —     $ 0.03
    Depletion, depreciation and amortization $ 15.05     $ 14.64

    ____________________

    (1) The numbers presented are calculated based on actual amounts and may not recalculate using the rounded numbers presented in the table above.
    (2) Price reflects the average of actual sales prices received when control passes to the purchaser/customer adjusted for quality, certain transportation fees, geographical differentials, marketing bonuses or deductions and other factors affecting the price received at the delivery point.
    (3) Price reflects the after-effects of the Company’s commodity derivative transactions on its average sales prices. The Company’s calculation of such after-effects includes settlements of matured commodity derivatives during the respective periods.
       
             
    Vital Energy, Inc.
    Consolidated balance sheets
             
    (in thousands, except share data)   March 31,
    2025    		   December 31,
    2024
        (unaudited)
    Assets        
    Current assets:        
    Cash and cash equivalents   $ 28,649     $ 40,179  
    Accounts receivable, net     254,343       299,698  
    Derivatives     100,497       101,474  
    Other current assets     24,757       25,205  
    Total current assets     408,246       466,556  
    Property and equipment:        
    Oil and natural gas properties, full cost method:        
    Evaluated properties     13,842,969       13,587,040  
    Unevaluated properties not being depleted     213,610       242,792  
    Less: accumulated depletion and impairment     (9,308,110 )     (8,966,200 )
    Oil and natural gas properties, net     4,748,469       4,863,632  
    Midstream and other fixed assets, net     127,815       134,265  
    Property and equipment, net     4,876,284       4,997,897  
    Derivatives     53,211       34,564  
    Operating lease right-of-use assets     99,055       104,329  
    Deferred income taxes     241,698       239,685  
    Other noncurrent assets, net     32,999       35,915  
    Total assets   $ 5,711,493     $ 5,878,946  
    Liabilities and stockholders’ equity        
    Current liabilities:        
    Accounts payable and accrued liabilities   $ 163,362     $ 185,115  
    Accrued capital expenditures     115,626       95,593  
    Undistributed revenue and royalties     193,175       187,563  
    Operating lease liabilities     59,853       73,143  
    Other current liabilities     75,636       59,725  
    Total current liabilities     607,652       601,139  
    Long-term debt, net     2,310,268       2,454,242  
    Derivatives     —       5,814  
    Asset retirement obligations     74,999       82,941  
    Operating lease liabilities     30,760       26,733  
    Other noncurrent liabilities     5,309       7,506  
    Total liabilities     3,028,988       3,178,375  
    Commitments and contingencies        
    Stockholders’ equity:        
    Preferred stock, $0.01 par value, 50,000,000 shares authorized and zero issued as of March 31, 2025 and December 31, 2024     —       —  
    Common stock, $0.01 par value, 80,000,000 shares authorized, and 38,701,810 and 38,144,248 issued and outstanding as of March 31, 2025 and December 31, 2024, respectively     387       381  
    Additional paid-in capital     3,824,006       3,823,241  
    Accumulated deficit     (1,141,888 )     (1,123,051 )
    Total stockholders’ equity     2,682,505       2,700,571  
    Total liabilities and stockholders’ equity   $ 5,711,493     $ 5,878,946  
                     
         
    Vital Energy, Inc.
    Consolidated statements of operations
         
        Three months ended March 31,
    (in thousands, except per share data)     2025       2024  
        (unaudited)
    Revenues:        
    Oil sales   $ 422,332     $ 415,784  
    NGL sales     61,739       47,075  
    Natural gas sales     27,338       18,245  
    Other operating revenues     771       1,235  
    Total revenues     512,180       482,339  
    Costs and expenses:        
    Lease operating expenses     103,485       105,728  
    Production and ad valorem taxes     33,225       30,614  
    Oil transportation and marketing expenses     10,120       9,833  
    Gas gathering, processing and transportation expenses     6,756       2,376  
    General and administrative     22,680       29,356  
    Depletion, depreciation and amortization     189,900       166,107  
    Impairment expense     158,241       —  
    Other operating expenses, net     1,913       1,018  
    Total costs and expenses     526,320       345,032  
    Gain (loss) on disposal of assets, net     110       130  
    Operating income (loss)     (14,030 )     137,437  
    Non-operating income (expense):        
    Gain (loss) on derivatives, net     44,171       (152,147 )
    Interest expense     (50,380 )     (43,421 )
    Gain (loss) on extinguishment of debt, net     —       (25,814 )
    Other income (expense), net     353       2,065  
    Total non-operating income (expense), net     (5,856 )     (219,317 )
    Income (loss) before income taxes     (19,886 )     (81,880 )
    Income tax benefit (expense)     1,049       15,749  
    Net income (loss)     (18,837 )     (66,131 )
    Preferred stock dividends     —       (349 )
    Net income (loss) available to common stockholders   $ (18,837 )   $ (66,480 )
    Net income (loss) per common share:        
    Basic   $ (0.50 )   $ (1.87 )
    Diluted   $ (0.50 )   $ (1.87 )
    Weighted-average common shares outstanding:        
    Basic     37,577       35,566  
    Diluted     37,577       35,566  
                     
         
    Vital Energy, Inc.
    Consolidated statements of cash flows
         
        Three months ended March 31,
    (in thousands)     2025       2024  
        (unaudited)
    Cash flows from operating activities:        
    Net income (loss)   $ (18,837 )   $ (66,131 )
    Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:        
    Share-settled equity-based compensation, net     3,604       3,501  
    Depletion, depreciation and amortization     189,900       166,107  
    Impairment expense     158,241       —  
    Mark-to-market on derivatives:        
    (Gain) loss on derivatives, net     (44,171 )     152,147  
    Settlements received (paid) for matured derivatives, net     20,687       (9,000 )
    (Gain) loss on extinguishment of debt, net     —       25,814  
    Deferred income tax (benefit) expense     (1,811 )     (16,924 )
    Other, net     9,551       5,402  
    Changes in operating assets and liabilities:        
    Accounts receivable, net     45,355       (51,475 )
    Other current assets     10       (5,646 )
    Other noncurrent assets, net     (3,634 )     (357 )
    Accounts payable and accrued liabilities     (21,754 )     (9,064 )
    Undistributed revenue and royalties     5,612       (12,865 )
    Other current liabilities     16,099       (21,347 )
    Other noncurrent liabilities     (7,867 )     (1,572 )
    Net cash provided by (used in) operating activities     350,985       158,590  
    Cash flows from investing activities:        
    Acquisitions of oil and natural gas properties, net     (1,636 )     (4,380 )
    Capital expenditures:        
    Oil and natural gas properties     (229,612 )     (195,372 )
    Midstream and other fixed assets     (1,825 )     (5,085 )
    Proceeds from dispositions of capital assets, net of selling costs     21,044       125  
    Other investing activities     (93 )     (952 )
    Net cash provided by (used in) investing activities     (212,122 )     (205,664 )
    Cash flows from financing activities:        
    Borrowings on Senior Secured Credit Facility     150,000       130,000  
    Payments on Senior Secured Credit Facility     (295,000 )     —  
    Issuance of senior unsecured notes     —       800,000  
    Extinguishment of debt     —       (453,518 )
    Stock exchanged for tax withholding     (3,923 )     (3,411 )
    Payments for debt issuance costs     —       (15,721 )
    Other, net     (1,470 )     (1,012 )
    Net cash provided by (used in) financing activities     (150,393 )     456,338  
    Net increase (decrease) in cash and cash equivalents     (11,530 )     409,264  
    Cash and cash equivalents, beginning of period     40,179       14,061  
    Cash and cash equivalents, end of period   $ 28,649     $ 423,325  
                     

    Vital Energy, Inc.
    Supplemental reconciliations of GAAP to non-GAAP financial measures

    Non-GAAP financial measures

    The non-GAAP financial measures of Adjusted Free Cash Flow, Adjusted Net Income, Consolidated EBITDAX, Net Debt and Net Debt to Consolidated EBITDAX, as defined by the Company, may not be comparable to similarly titled measures used by other companies. Furthermore, these non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP measures of liquidity or financial performance, but rather should be considered in conjunction with GAAP measures, such as net income or loss, operating income or loss or cash flows from operating activities.

    Adjusted Free Cash Flow

    Adjusted Free Cash Flow is a non-GAAP financial measure that the Company defines as net cash provided by (used in) operating activities (GAAP) before net changes in operating assets and liabilities and transaction expenses related to non-budgeted acquisitions, less capital investments, excluding non-budgeted acquisition costs. Management believes Adjusted Free Cash Flow is useful to management and investors in evaluating operating trends in its business that are affected by production, commodity prices, operating costs and other related factors. There are significant limitations to the use of Adjusted Free Cash Flow as a measure of performance, including the lack of comparability due to the different methods of calculating Adjusted Free Cash Flow reported by different companies.

    This release also includes certain forward-looking non-GAAP measures. Due to the forward-looking nature of such measures, no reconciliations of these non-GAAP measures to their respective most directly comparable GAAP measure are available without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. Accordingly, such reconciliations are excluded from this release. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

    The following table presents a reconciliation of net cash provided by (used in) operating activities (GAAP) to Adjusted Free Cash Flow (non-GAAP) for the periods presented:

         
        Three months ended March 31,
    (in thousands)     2025     2024  
        (unaudited)
    Net cash provided by (used in) operating activities   $ 350,985   $ 158,590  
    Less:        
    Net changes in operating assets and liabilities     33,821     (102,326 )
    General and administrative (transaction expenses)     —     (332 )
    Cash flows from operating activities before net changes in operating assets and liabilities and transaction expenses related to non-budgeted acquisitions     317,164     261,248  
    Less capital investments, excluding non-budgeted acquisition costs:        
    Oil and natural gas properties(1)     251,264     213,265  
    Midstream and other fixed assets(1)     1,407     4,635  
    Total capital investments, excluding non-budgeted acquisition costs     252,671     217,900  
    Adjusted Free Cash Flow (non-GAAP)   $ 64,493   $ 43,348  

    ____________________

    (1) Includes capitalized share-settled equity-based compensation and asset retirement costs.
       

    Adjusted Net Income

    Adjusted Net Income is a non-GAAP financial measure that the Company defines as net income or loss (GAAP) plus adjustments for mark-to-market on derivatives, premiums paid or received for commodity derivatives that matured during the period, organizational restructuring expenses, impairment expense, gains or losses on disposal of assets, income taxes, other non-recurring income and expenses and adjusted income tax expense. Management believes Adjusted Net Income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors.

    The following table presents a reconciliation of net income (loss) (GAAP) to Adjusted Net Income (non-GAAP) for the periods presented:

         
        Three months ended March 31,
    (in thousands, except per share data)     2025       2024  
        (unaudited)
    Net income (loss)   $ (18,837 )   $ (66,131 )
    Plus:        
    Mark-to-market on derivatives:        
    (Gain) loss on derivatives, net     (44,171 )     152,147  
    Settlements received (paid) for matured derivatives, net     20,687       (9,000 )
    Impairment expense     158,241       —  
    (Gain) loss on disposal of assets, net     (110 )     (130 )
    (Gain) loss on extinguishment of debt, net     —       25,814  
    Income tax (benefit) expense     (1,049 )     (15,749 )
    General and administrative (transaction expenses)     —       332  
    Adjusted income before adjusted income tax expense     114,761       87,283  
    Adjusted income tax expense(1)     (25,247 )     (19,202 )
    Adjusted Net Income (non-GAAP)   $ 89,514     $ 68,081  
    Net income (loss) per common share:        
    Basic   $ (0.50 )   $ (1.87 )
    Diluted   $ (0.50 )   $ (1.87 )
    Adjusted Net Income per common share:        
    Basic   $ 2.38     $ 1.91  
    Diluted   $ 2.38     $ 1.91  
    Adjusted diluted   $ 2.37     $ 1.84  
    Weighted-average common shares outstanding:        
    Basic     37,577       35,566  
    Diluted     37,577       35,566  
    Adjusted diluted     37,736       36,922  

    _____________________

    (1) Adjusted income tax expense is calculated by applying a statutory tax rate of 22% for each of the periods ended March 31, 2025 and 2024.
       

    Consolidated EBITDAX

    Consolidated EBITDAX is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as net income or loss (GAAP) plus adjustments for share-settled equity-based compensation, depletion, depreciation and amortization, impairment expense, organizational restructuring expenses, gains or losses on disposal of assets, mark-to-market on derivatives, accretion expense, interest expense, income taxes and other non-recurring income and expenses. Consolidated EBITDAX provides no information regarding a company’s capital structure, borrowings, interest costs, capital expenditures, working capital movement or tax position. Consolidated EBITDAX does not represent funds available for future discretionary use because it excludes funds required for debt service, capital expenditures, working capital, income taxes, franchise taxes and other commitments and obligations. However, management believes Consolidated EBITDAX is useful to an investor because this measure:

    • is used by investors in the oil and natural gas industry to measure a company’s operating performance without regard to items that can vary substantially from company to company depending upon accounting methods, the book value of assets, capital structure and the method by which assets were acquired, among other factors;
    • helps investors to more meaningfully evaluate and compare the results of the Company’s operations from period to period by removing the effect of the Company’s capital structure from the Company’s operating structure; and
    • is used by management for various purposes, including (i) as a measure of operating performance, (ii) as a measure of compliance under the Senior Secured Credit Facility, (iii) in presentations to the board of directors and (iv) as a basis for strategic planning and forecasting.

    There are significant limitations to the use of Consolidated EBITDAX as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect the Company’s net income or loss and the lack of comparability of results of operations to different companies due to the different methods of calculating Consolidated EBITDAX, or similarly titled measures, reported by different companies. The Company is subject to financial covenants under the Senior Secured Credit Facility, one of which establishes a maximum permitted ratio of Net Debt, as defined in the Senior Secured Credit Facility, to Consolidated EBITDAX. See Note 7 in the 2025 Annual Report, to be filed with the SEC, for additional discussion of the financial covenants under the Senior Secured Credit Facility. Additional information on Consolidated EBITDAX can be found in the Company’s Eleventh Amendment to the Senior Secured Credit Facility, as filed with the SEC on September 13, 2023.

    The following table presents a reconciliation of net income (loss) (GAAP) to Consolidated EBITDAX (non-GAAP) for the periods presented:

         
        Three months ended March 31,
    (in thousands)     2025       2024  
        (unaudited)
    Net income (loss)   $ (18,837 )   $ (66,131 )
    Plus:        
    Share-settled equity-based compensation, net     3,604       3,501  
    Depletion, depreciation and amortization     189,900       166,107  
    Impairment expense     158,241       —  
    (Gain) loss on disposal of assets, net     (110 )     (130 )
    Mark-to-market on derivatives:        
    (Gain) loss on derivatives, net     (44,171 )     152,147  
    Settlements received (paid) for matured derivatives, net     20,687       (9,000 )
    Accretion expense     1,034       1,020  
    Interest expense     50,380       43,421  
    (Gain) loss extinguishment of debt, net     —       25,814  
    Income tax (benefit) expense     (1,049 )     (15,749 )
    General and administrative (transaction expenses)     —       332  
    Consolidated EBITDAX (non-GAAP)   $ 359,679     $ 301,332  
                     

    The following table presents a reconciliation of net cash provided by (used in) operating activities (GAAP) to Consolidated EBITDAX (non-GAAP) for the periods presented:

         
        Three months ended March 31,
    (in thousands)     2025       2024  
        (unaudited)
    Net cash provided by (used in) operating activities   $ 350,985     $ 158,590  
    Plus:        
    Interest expense     50,380       43,421  
    Current income tax (benefit) expense     762       1,175  
    Net changes in operating assets and liabilities     (33,821 )     102,326  
    General and administrative (transaction expenses)     —       332  
    Other, net     (8,627 )     (4,512 )
    Consolidated EBITDAX (non-GAAP)   $ 359,679     $ 301,332  
                     

    Net Debt

    Net Debt is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as the face value of long-term debt plus any outstanding letters of credit, less cash and cash equivalents, where cash and cash equivalents are capped at $100 million when there are borrowings on the Senior Secured Credit Facility. Management believes Net Debt is useful to management and investors in determining the Company’s leverage position since the Company has the ability, and may decide, to use a portion of its cash and cash equivalents to reduce debt.

             
    (in thousands)   March 31,
    2025    		   December 31,
    2024
        (unaudited)
    Total senior unsecured notes   $ 1,600,578   $ 1,600,578
    Senior Secured Credit Facility     735,000     880,000
    Total long-term debt   $ 2,335,578   $ 2,480,578
    Less: cash and cash equivalents     28,649     40,179
    Net Debt (non-GAAP)   $ 2,306,929   $ 2,440,399
                 

    Net Debt to Consolidated EBITDAX

    Net Debt to Consolidated EBITDAX is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as Net Debt divided by Consolidated EBITDAX for the previous four quarters, which requires various treatment of asset transaction impacts. Net Debt to Consolidated EBITDAX is used by the Company’s management for various purposes, including as a measure of operating performance, in presentations to its board of directors and as a basis for strategic planning and forecasting.

    Investor Contact:
    Ron Hagood
    918.858.5504
    ir@vitalenergy.com

    The MIL Network –

  • MIL-OSI: Oxbridge Re Highlights Growth in Tokenized Reinsurance, Strategic Partnerships, and Reports Q1 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    GRAND CAYMAN, Cayman Islands, May 12, 2025 (GLOBE NEWSWIRE) — Oxbridge Re Holdings Limited (NASDAQ: OXBR), (the “Company”), which together with its subsidiary SurancePlus is engaged in the business of tokenized Real-World Assets (“RWAs”), initially in the form of tokenized reinsurance securities, and reinsurance business solutions to property and casualty casualty – bridging the gap between the SEC, blockchain, and tokenization. The company today, reported its results for the three months ended March 31, 2025.

    “As the first Nasdaq-listed company to issue a tokenized security in reinsurance, Oxbridge Re, through SurancePlus, is transforming access to this asset class,” said Jay Madhu, Chairman and CEO of Oxbridge Re. “We are proud of our progress and remain focused on expanding SurancePlus, democratizing access to reinsurance with a commitment to transparency and compliance.”

    The Company recently signed a Memorandum of Understanding (MOU) with Plume, a blockchain platform managing over $4.5 billion in assets and serving 18 million unique addresses. This partnership represents a significant opportunity to enhance distribution, while Oxbridge Re continues to explore additional partnerships to further broaden its reach.

    SurancePlus is also highlighting its previously launched 2025–2026 tokenized reinsurance offerings, which provide a diverse range of investment opportunities. These offerings include a balanced-yield product targeting a 20% annual return, designed for investors seeking stable, attractive yields with moderate risk, and a high-yield option targeting a 42% annual return. These options broaden the investor base, offering both risk-averse and high-return-seeking investors a compliant, blockchain-powered pathway to participate in the reinsurance sector.

    The company actively participated in major global tokenization and blockchain events, including Consensus 2024 in Austin, Texas, Token2049 in Singapore, and Token2049 in Dubai. These forums provided an opportunity to showcase SurancePlus, strengthen industry relationships, and explore collaborative opportunities with leading blockchain platforms.

    “Supported by a strong balance sheet and a disciplined approach, we are well-positioned to capitalize on emerging opportunities in the RWA sector,” added Madhu. “Looking ahead, we remain committed to scaling SurancePlus with integrity, innovation, and a focus on long-term value creation.” 

    Financial Performance

    Net premiums earned for the quarter ended March 31, 2025 increased to $595,000 from $549,000 for the quarter ended March 31, 2024. The increase is due to the rates on contracts that were in force in the quarter ended March 31, 2025 when compared to the contracts in force in the prior period.

    For the three months ended March 31, 2025, the Company generated net loss of $139,000 or ($0.02) per basic and diluted loss per share compared to net loss of $905,000 or ($0.15) per basic and diluted earnings per share, for the quarter ended March 31, 2024. The decrease in net loss is primarily due to the positive change in the fair value of equity securities and sale of investments in Jet.AI during the quarter ended March 31, 2025 when compared with the prior period.

    For the three months ended March 31, 2025, total expenses, including policy acquisition costs and general and administrative expenses, increased to $570,000 from $548,000 for the quarter ended March 31, 2024. The increase is primarily due to the value stock-based compensation incurred during the three-month period ending March 31, 2025 as a result of higher share price on grant date.

    As of March 31, 2025, our restricted cash, and cash equivalents increased by $3.7 million, or 62.85%, to $9.6 million, from $5.9 million as of December 31, 2024. The increase is primarily due to premium deposits made during the three months ending March 31, 2025 as well the completion of a registered direct offering that generated $2.7 million net of expenses.

    Financial Ratios

    Loss Ratio. The loss ratio is the ratio of losses and loss adjustment expenses incurred to premiums earned and measures the underwriting profitability of our reinsurance business. The loss ratio remained consistent at 0% for the quarter end March 31, 2025 compared with the quarter ended March 31, 2024.

    Acquisition Cost Ratio. The acquisition cost ratio is the ratio of policy acquisition costs and other underwriting expenses to net premiums earned. The acquisition cost ratio measures our operational efficiency in producing, underwriting and administering our reinsurance business.

    The acquisition cost ratio remained consistent at 10.9% for the quarter end March 31, 2025 compared with the quarter ended March 31, 2024.

    Expense Ratio. The expense ratio is the ratio of policy acquisition costs and general and administrative expenses to net premiums earned. We use the expense ratio to measure our operating performance. The expense ratio decreased marginally from 99.8% for the three-month period ended March 31, 2024 to 95.8% for the three-month period ended March 31, 2025. The decrease is due to higher net premiums earned during the three-month period ended March 31, 2025, when compared with the prior period.

    Combined ratio. We use the combined ratio to measure our underwriting performance. The combined ratio is the sum of the loss ratio and the expense ratio. The combined ratio decreased marginally from 99.8% for the three-month period ended March 31, 2024 to 95.8% for the three-month period ended March 31, 2025. The decrease is due to higher net premiums earned during the three-month period ended March 31, 2025, when compared with the prior period.

    Conference Call

    Management will host a conference call later today to discuss these financial results, followed by a question and answer session. The Company’s President and Chief Executive Officer Jay Madhu and Chief Financial Officer Wrendon Timothy will host the call starting at 4:30 p.m. Eastern time. The live presentation can be accessed by dialing the number below.

    Date: May 12, 2025
    Time: 4.30 p.m. Eastern time
    Toll-free number: 877-524-8416
    International number: +1 412-902-1028

    Please call the conference telephone number 15 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact InComm Conferencing at +1-201-493-6280 or media@incommconferencing.com

    A replay of the call will be available by telephone after 4:30 p.m. Eastern time on the same day of the call until May 26, 2025.

    Toll-free replay number: 877-660-6853
    International replay number: +1-201-612-7415
    Conference ID: 13753764

    About Oxbridge Re Holdings Limited

    Oxbridge Re Holdings Limited (NASDAQ: OXBR, OXBRW) (“Oxbridge Re”) is headquartered in the Cayman Islands. The company offers tokenized Real-World Assets (“RWAs”) as tokenized reinsurance securities and reinsurance business solutions to property and casualty insurers, through its wholly owned subsidiaries Oxbridge Reinsurance Limited, Oxbridge Re NS, and SurancePlus Inc.

    Insurance businesses in the Gulf Coast region of the United States purchase property and casualty reinsurance through our licensed reinsurers Oxbridge Reinsurance Limited and Oxbridge Re NS.

    Our new Web3-focused subsidiary, SurancePlus Inc. (“SurancePlus”), has developed the first “on-chain” reinsurance RWA of its kind to be sponsored by a subsidiary of a publicly traded company. By digitizing interests in reinsurance contracts as on-chain RWAs, SurancePlus has democratized the availability of reinsurance as an alternative investment to both U.S. and non-U.S. investors.

    Forward-Looking Statements

    This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on 26th March 2025. The occurrence of any of these risks and uncertainties could have a material adverse effect on the Company’s business, financial condition and results of operations. Any forward-looking statements made in this press release speak only as of the date of this press release and, except as required by law, the Company undertakes no obligation to update any forward-looking statement contained in this press release, even if the Company’s expectations or any related events, conditions or circumstances change.

    Company Contact:

    Oxbridge Re Holdings Limited
    Jay Madhu, CEO
    345-749-7570
    jmadhu@oxbridgere.com

    OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
    Consolidated Balance Sheets
    (expressed in thousands of U.S. Dollars, except per share and share amounts)

        At March 31, 2025     At December 31, 2024  
                 
    Assets                
    Equity securities, at fair value (cost: $1,532 and $1,532)   $ 116       113  
    Cash and cash equivalents     4,963       2,135  
    Restricted cash and cash equivalents     4,634       3,758  
    Premiums receivable     223       1,059  
    Other Investments     –       48  
    Deferred policy acquisition costs     44       109  
    Operating lease right-of-use assets     122       148  
    Prepayment and other assets     160       94  
    Property and equipment, net     1       1  
    Total assets   $ 10,263       7,465  
                     
    Liabilities and Shareholders’ Equity                
    Liabilities:                
    Notes payable to noteholders     118       118  
    Unearned Premium Reserve     397       991  
    Operating lease liabilities     122       148  
    Accounts payable and other liabilities     432       366  
    Total liabilities     1,069       1,623  
                     
    Mezzanine Equity                
    Due to EpsilonCat Re / DeltaCat Re Tokenholders     1,979       1,732  
                     
    Shareholders’ equity:                
    Ordinary share capital, (par value $0.001, 50,000,000 shares authorized; 7,442,922 and 6,379,002 shares issued and outstanding)     6       6  
    Additional paid-in capital     37,335       34,105  
    Accumulated Deficit     (30,302 )     (30,163 )
    Total Oxbridge shareholders’ equity     7,039       3,948  
    Non-controlling interests     176       162  
    Total shareholders’ equity     7,215       4,110  
    Total liabilities and shareholders’ equity   $ 10,263       7,465  


    OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
    Consolidated Statements of Operations
    (Unaudited)
    (expressed in thousands of U.S. Dollars, except per share amounts)

        Three Months Ended March 31,  
        2025     2024  
                 
    Revenue                
    Net premiums earned     595       549  
    Net investment and other income     79       63  
    Net realized investment gain     –       –  
    Interest and gain on redemption of loan receivable     –       41  
    Unrealized gain on other investments     (20 )     (688 )
    Realized gain on other investments     35       –  
    Change in fair value of equity securities     3       (90 )
                     
    Total revenue     692       (125 )
                     
    Expenses                
    Policy acquisition costs and underwriting expenses     65       60  
    General and administrative expenses     505       488  
                     
    Total expenses     570       548  
                     
    Income (loss) before income attributable to tokenholders and non-controlling interests     122       (673 )
                     
    Income attributable to tokenholders     (247 )     (232 )
                     
    Loss before income attributable to non-controlling interests     (125 )     (905 )
                     
    Income attributable to non-controlling interests     (14 )     –  
    Net loss attributable to ordinary shareholders     (139 )     (905 )
                     
    Loss per share attributable to ordinary shareholders                
    Basic and Diluted     (0.02 )     (0.15 )
                     
    Weighted-average shares outstanding                
    Basic and Diluted     6,899,062       6,005,162  
                     
    Performance ratios to net premiums earned:                
    Loss ratio     0.0 %     0.0 %
    Acquisition cost ratio     10.9 %     10.9 %
    Expense ratio     95.8 %     99.8 %
    Combined ratio     95.8 %     99.8 %

    The MIL Network –

  • MIL-Evening Report: A looming workforce crisis in NZ tourism and hospitality threatens industry growth plans

    Source: The Conversation (Au and NZ) – By Anthony Brien, Associate Professor, Department of Global Value Chains and Trade, Lincoln University, New Zealand

    Getty Images

    Last week’s big tourism conference in Rotorua saw plenty of optimism about the industry’s potential, but also warnings that airline capacity is hampering post-COVID growth.

    The focus on bringing more foreign tourists to New Zealand is understandable, given the sector accounts for 7.5% of GDP and is our second highest export earner. But there is deeper problem, too. We already struggle to serve current visitor numbers – how will we handle more?

    International tourism injected NZ$16.9 billion into the economy in the year to March 2024. Total tourism expenditure (domestic and international) hit a record $44.4 billion, up nearly 15% from the previous year.

    The government has responded with a $13.5 million global marketing boost, and business leaders are celebrating. The big question is whether we will have the workforce to match the ambition.

    Because right now, the pipeline of skilled, engaged people willing to work, grow and lead in tourism and hospitality isn’t flowing.

    Without an industry-led, well-funded campaign to rebuild the perception of tourism and hospitality as credible, rewarding and sustainable career options, New Zealand has a crisis in the making.

    Who wants to work in tourism and hospo?

    Fewer New Zealanders are choosing tourism and hospitality as a career. With the number of locals studying tourism and hospitality collapsing, both sectors are increasingly dependent on foreign workers.

    Tourism education numbers for the past decade show:

    • 1,355 equivalent full-time students were enrolled in tourism-related courses in 2024, down from 3,750 in 2015 – a 63% drop

    • enrolments in bachelor’s degrees in tourism management fell from 45 in 2015 to 25 in 2024 – a 44% drop

    • postgraduate enrolments in tourism management are down 75%, with only 20 in 2024.

    The figures for hospitality education paint an even grimmer picture:

    • enrolments in hospitality courses fell from from 915 in 2015 to just 250 in 2024 – a 73% drop

    • cookery course enrolments fell from 4,125 to 1,140 – a 72% drop

    • food and beverage service training fell from 1,445 in 2015 to just 340 in 2024 – a 76% drop

    • hospitality management degree enrolments fell from 380 in 2015 to 210 in 2024 – a 45% drop.

    These figures do not include actual workplace training, but they still illustrate a clear trend.

    The looming workforce shortage

    Minister of Tourism and Hospitality Louise Upston recently said, “We need to grow tourism businesses. We need to grow the value from the tourism visitors we have.” She’s right. But without a viable workforce, none of this is possible.

    As to why more New Zealanders aren’t keen to work in the sector, Upston said, “I just don’t think the sector’s promoted it well enough.” This is despite many years of industry exhortations to “grow the domestic workforce”, “attract more young people” and “build career pathways”.

    COVID-19 certainly hurt the industry’s image as a place to work. But the challenges around neglected workforce development, career promotion and long-term planning predate the pandemic.

    Other industries and professions – including construction, agriculture and accounting – have invested heavily in scholarships, internships, mentoring and reputation building. Tourism and hospitality haven’t matched this and now risk losing young people to global demand.

    If the pattern continues, there will be a national shortage of qualified staff and competent managers, and greater reliance on short-term and migrant labour. That leads in turn to overworked staff, poorer service, and businesses forced to reduce hours or close altogether.

    Investment in the future

    In the 1970s and 80s, New Zealand had to import tourism and hospitality talent to grow the industries. Without real change, those days may return.

    Apart from what is offered by two major hotel chains, few formal internships exist. Such programmes are not simply part-time jobs, they’re investments in future talent, involving professional guidance and meaningful experience. They take effort, but they work.

    Meanwhile, degree-level programmes are already being dropped. If lower-level course enrolments continue to fall, these programmes may close too. The burden then falls on businesses to train and educate staff. But those same businesses say they can’t find enough staff today.

    This is more than a workforce problem, it’s a national economic risk. Spending millions on attracting visitors only to deliver a substandard experience is not a good use of taxpayer money.

    Without people, there is no hospitality. Without hospitality, there is no tourism. And without a sustainable tourism industry, New Zealand’s economy will suffer.

    Anthony Brien is a member of Tourism Industry Aotearoa.

    – ref. A looming workforce crisis in NZ tourism and hospitality threatens industry growth plans – https://theconversation.com/a-looming-workforce-crisis-in-nz-tourism-and-hospitality-threatens-industry-growth-plans-256212

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Security: St. Louis Felon Who Fatally Shot Man Sentenced to Nine Years in Prison

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

    ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Tuesday sentenced a St. Louis man who shot an acquaintance in 2023 to nine years in prison.

    Clayton Pierce Davis, 39, pleaded guilty in U.S. District Court in St. Louis in November to one count of being a felon in possession of ammunition.

    On July 4, 2023, Davis was celebrating with others in St. Louis. After a Fourth of July event, the group went to a shop on the corner of Gravois Avenue and Chippewa Street in south St. Louis. An argument started and Davis fired 12 shots from a handgun, fatally shooting a man and wounding his girlfriend. At least one of the victims was armed and the woman fired one shot.

    Davis is a felon and is thus barred from possessing firearms. He has prior convictions for robbery, riot in a penal institution, dog fighting, stealing and assault.

    The case was investigated by the St. Louis Metropolitan Police Department and the FBI. Assistant U.S. Attorney Torrie Schneider prosecuted the case.

    MIL Security OSI –

  • MIL-OSI: Natural Gas Services Group, Inc. Reports First Quarter 2025 Financial and Operating Results; Increases 2025 Guidance

    Source: GlobeNewswire (MIL-OSI)

    Midland, Texas, May 12, 2025 (GLOBE NEWSWIRE) — Natural Gas Services Group, Inc. (“NGS” or the “Company”) (NYSE:NGS), a leading provider of natural gas compression equipment, technology, and services to the energy industry, today announced financial results for the three months ended March 31, 2025. The Company also raised the high-end of its full-year 2025 Adjusted EBITDA guidance to $79 million, citing continued strength in its business and growing demand across its fleet.

    First Quarter 2025 Highlights

    • Rental revenue of $38.9 million for the first quarter of 2025 representing a 15% year-over-year increase and a 2% sequential increase compared to the period ended December 31, 2024.
    • Net income of $4.9 million or $0.38 per diluted share for the first quarter of 2025 compared to net income of $5.1 million or $0.41 per diluted share for the comparable period; net income up $2.0 million sequentially.
    • Leverage ratio at March 31, 2025, was 2.18x.
    • Adjusted EBITDA of $19.3 million for the first quarter of 2025, representing a 14% year-over-year increase; Adjusted EBITDA up 7% sequentially. See Non-GAAP Financial Measures – Adjusted EBITDA, below.

    Management Commentary and Outlook
    “We are pleased to report another quarter of strong execution and continued momentum across our business,” said Justin Jacobs, Chief Executive Officer. “We are taking market share, expanding our presence in key basins, and investing in our fleet, including the deployment of large-horsepower electric motor units. Our recent credit facility expansion, which also decreased our interest rate and provided more flexible covenants, further improves our ability to take advantage of organic and inorganic growth opportunities.”

    Jacobs continued, “While broader market uncertainty increased in recent weeks—driven primarily by tariff concerns, commodity price volatility, and macroeconomic factors—we are not seeing any meaningful direct impact on our operations. We will continue to monitor indirect effects closely, but we remain confident in our ability to deliver results consistent with our guidance.”

    “We increased our EBITDA outlook to reflect our first quarter outperformance relative to internal expectations and our confidence in the trajectory of the business. We remain excited about our prospects as we look to the remainder of 2025 and into 2026. Our team remains focused on disciplined capital allocation, operational excellence, and long-term value creation for our shareholders.”

    Corporate Guidance — 2025 Outlook

    The Company today provides updates to its previously announced guidance for the 2025 Fiscal Year. Based on a strong start to the year in the first quarter and its confidence for the remainder of the year, the Company today increased the high-end of its adjusted EBITDA guidance to $79 million. The Company now anticipates adjusted EBITDA for the 2025 Fiscal Year to be in the range of $74 – $79 million.

    The Company also reaffirms its outlook for 2025 growth capital expenditures of between $95 – $120 million, which are mostly  comprised of new units (essentially all of which are under contract). Once all these units are deployed, which is expected by early 2026, the Company expects its rented horsepower fleet to increase by approximately 90,000 horsepower, representing an increase of approximately 18% compared to year-end 2024. Customer deployments remain on schedule and the timing of deployments as previously noted is heavily weighted to the second half of 2025 and early 2026. Additionally, the Company anticipates 2025 maintenance expenditures of $10 – $13 million, consistent with its prior guidance and its target return on invested capital of 20% remains unchanged.

    The Company also reiterates the statement from the 2024 year end release that once all the 2025 growth capital expenditures are spent and the units are deployed, its “run rate” Adjusted EBITDA should increase at a rate (when compared to the fourth quarter of 2024) well in excess of (but less than double the rate of) the Company’s anticipated horsepower growth of 18%.

      Outlook
    NEW FY 2025 Adjusted EBITDA $74 million – $79 million
    FY 2025 Growth Capital Expenditures $95 million – $120 million
    FY 2025 Maintenance Capital Expenditures $10 million – $13 million
    Target Return on Invested Capital At least 20%

    Jacobs concluded, “We have multiple pathways to build on our industry-leading growth and drive shareholder value: fleet optimization, asset utilization (both unutilized units and non-cash assets), new rental units (both electric motor and natural gas engine), and accretive mergers and acquisitions. Given our strong balance sheet, low relative leverage, and recent increase in our borrowing capacity, we are well positioned to capitalize on opportunities for significant growth throughout the remainder of 2025.”

    2025 First Quarter Financial Results

    Revenue:  Total revenue for the three months ended March 31, 2025, increased 12% to $41.4 million from $36.9 million for the three months ended March 31, 2024. This increase was primarily due to higher rental revenues for the comparable periods. Rental revenue increased 15% to $38.9 million from $33.7 million in the first quarter of 2024 due to the addition of higher horsepower packages and pricing improvements. As of March 31, 2025, we had 492,679 rented horsepower (1,202 rented units) compared to 444,220 horsepower (1,245 rented units) as of March 31, 2024, reflecting an 11% increase in total utilized horsepower. Sequentially, total revenue increased 2% from $40.7 million primarily related to higher rental revenue for the current period.

    Gross Margins and Adjusted Gross Margins: Total gross margins, including depreciation expense increased to $15.7 million for the three months ended March 31, 2025, compared to $14.2 million for the same period in 2024 and increased on a sequential basis from $14.6 million for the three months ended December 31, 2024. Total adjusted gross margin, exclusive of depreciation expense, increased to $24.3 million for the three months ended March 31, 2025, compared to $21.1 million for the same period in 2024. On a sequential basis, total adjusted gross margin, exclusive of depreciation expense increased by $1.3 million compared to $23.0 million for the period ended December 31, 2024. For a reconciliation of Gross Margin, see Non-GAAP Financial Measures – Adjusted Gross Margin, below.

    Operating Income:  Operating income for the three months ended March 31, 2025, was $9.5 million compared to operating income of $9.3 million for the comparable 2024 period. On a sequential basis, operating income increased $3.5 million compared to $6.0 million for the period ended December 31, 2024.

    Net Income: Net income for the three months ended March 31, 2025, was $4.9 million, or $0.38 per diluted share compared to net income of $5.1 million or $0.41 per diluted share for the comparable 2024 period. On a sequential basis, net income increased $2.0 million when compared to net income of $2.9 million, or $0.23 per diluted share, in the fourth quarter of 2024. The modest year-over-year decline in net income was primarily related to an adjustment to inventory allowance, retirement of rental equipment, a gain on the sale of property and equipment, as well as an increase in depreciation and amortization. The sequential improvement in net income was primarily driven by higher rental revenue and rental gross margin.

    Cash Flows: At March 31, 2025, cash and cash equivalents were approximately $2.1 million, while working capital was $24.7 million. For the three months ended March 31, 2025, cash flows provided by operating activities were $21.3 million, while cash flows used in investing activities was $19.3 million. This compares to cash flows from operating activities of $5.6 million and cash flows used in investing activities of $10.9 million for the comparable three-month period in 2024. Cash flow used in investing activities during the first quarter 2025 included $19.3 million in capital expenditures.

    Adjusted EBITDA: Adjusted EBITDA increased 14% to $19.3 million for the three months ended March 31, 2025, from $16.9 million for the same period in 2024. The increase was primarily attributable to higher rental revenue and rental adjusted gross margin. Sequentially, Adjusted EBITDA increased 7% when compared to $18.0 million for the three months ended December 31, 2024.

    Debt:  Outstanding debt on our revolving credit facility as of March 31, 2025, was $168 million. Our leverage ratio at March 31, 2025, was 2.18x and our fixed charge coverage ratio was 2.98x. The Company is in compliance with all terms, conditions and covenants of the credit agreement.

    Selected data: The tables below show revenue by product line, gross margin and adjusted gross margin for the trailing five quarters.   Adjusted gross margin is the difference between revenue and cost of sales, exclusive of depreciation.

      Revenues
      Three months ended
      March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025
      ($ in 000)   ($ in 000)   ($ in 000)   ($ in 000)   ($ in 000)  
    Rentals $                  33,734   $                  34,926   $                  37,350   $                  38,226   $                  38,910  
    Sales                        2,503                          2,270                          1,843                             997                          1,927  
    Aftermarket services                           670                          1,295                          1,493                          1,435                             546  
    Total $                  36,907   $                  38,491   $                  40,686   $                  40,658   $                  41,383  
      Gross Margin
      Three months ended
      March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025
      ($ in 000)   ($ in 000)   ($ in 000)   ($ in 000)   ($ in 000)  
    Rentals $                  13,761                       13,211                       15,043                       14,865   $                  15,634  
    Sales                           253                             (50)                           (258)                           (531)                           (181)  
    Aftermarket services                           163                             269                             151                             296                             264  
    Total $                  14,177   $                  13,430   $                  14,936   $                  14,630   $                  15,717  
                         
      Adjusted Gross Margin (1)
      Three months ended
      March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025
      ($ in 000)   ($ in 000)   ($ in 000)   ($ in 000)   ($ in 000)  
    Rentals                     20,620                       20,698                       22,908                       23,107                       24,070  
    Sales                           323                               21                           (185)                           (449)                             (89)  
    Aftermarket services                           170                             283                             169                             321                             275  
    Total $                  21,113   $                  21,002   $                  22,892   $                  22,979   $                  24,256  
                         
        Adjusted Gross Margin %
        Three months ended
        March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025
    Rentals   61.1 %   59.3 %   61.3 %   60.4 %   61.9 %
    Sales   12.9 %   0.9 %   (10.0) %   (45.0) %   (4.6) %
    Aftermarket services   25.4 %   21.9 %   11.3  %   22.4 %   50.4 %
    Total   57.2 %   54.6 %   56.3 %   56.5 %   58.6 %
      Compression Units (at end of period):
      Three months ended
      March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025
    Horsepower Utilized 444,220   454,568   475,534   491,756   492,679
    Total Horsepower 542,256   552,599   579,699   598,840   603,391
    Horsepower Utilization 81.9 %   82.3 %   82.0 %   82.1 %   81.7 %
                       
    Units Utilized 1,245   1,242   1,229   1,208   1,202
    Total Units 1,894   1,899   1,909   1,912   1,916
    Unit Utilization 65.7 %   65.4 %   64.4 %   63.2 %   62.7 %

    (1) For a reconciliation of adjusted gross margin to its most directly comparable financial measure calculated and presented in accordance with GAAP, please read “Non-GAAP Financial Measures – Adjusted Gross Margin” below.

    Non-GAAP Financial Measure – Adjusted Gross Margin: “Adjusted Gross Margin” is defined as total revenue less costs of revenues (excluding depreciation and amortization expense). Adjusted Gross Margin is included as a supplemental disclosure because it is a primary measure used by our management as it represents the results of revenue and costs (excluding depreciation and amortization expense), which are key components of our operations. Adjusted Gross Margin differs from gross margin, in that gross margin includes depreciation and amortization expense. We believe Adjusted Gross Margin is important because it focuses on the current operating performance of our operations and excludes the impact of the prior historical costs of the assets acquired or constructed that are utilized in those operations. Depreciation and amortization expense does not accurately reflect the costs required to maintain and replenish the operational usage of our assets and therefore may not portray the costs from current operating activity. Rather, depreciation and amortization expense reflects the systematic allocation of historical property and equipment costs over their estimated useful lives.

    Adjusted Gross Margin has certain material limitations associated with its use as compared to gross margin. These limitations are primarily due to the exclusion of depreciation and amortization expense, which is material to our results of operations. Because we use capital assets, depreciation and amortization expense is a necessary element of our costs and our ability to generate revenue. In order to compensate for these limitations, management uses this non-GAAP measure as a supplemental measure to other GAAP results to provide a more complete understanding of our performance. As an indicator of our operating performance, Adjusted Gross Margin should not be considered an alternative to, or more meaningful than, gross margin as determined in accordance with GAAP. Our Adjusted Gross Margin may not be comparable to a similarly titled measure of another company because other entities may not calculate Adjusted Gross Margin in the same manner.

    The following table shows gross margin, the most directly comparable GAAP financial measure, and reconciles it to Adjusted Gross Margin:

      Three months ended
      March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025
      (in thousands)
    Total revenue $              36,907 $              38,491 $                    40,686 $                 40,658 $              41,383
    Costs of revenue, exclusive of depreciation                (15,794)                (17,489)                     (17,794)                   (17,679)                (17,127)
    Depreciation allocable to costs of revenue                  (6,936)                  (7,572)                       (7,956)                     (8,349)                  (8,539)
    Gross margin                  14,177                  13,430                       14,936                    14,630                  15,717
    Depreciation allocable to costs of revenue                    6,936                    7,572                         7,956                       8,349                    8,539
    Adjusted Gross Margin $              21,113 $              21,002 $                    22,892 $                 22,979 $              24,256

    Non-GAAP Financial Measures – Adjusted EBITDA: “Adjusted EBITDA” is a non-GAAP financial measure that we define as net income (loss) before interest, taxes, depreciation and amortization, as well as an increase in inventory allowance, impairments, retirement of rental equipment, nonrecurring restructuring charges including severance and non-cash equity-classified stock-based compensation expenses. This term, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, management believes Adjusted EBITDA is useful to an investor in evaluating our operating performance because: (i) it is widely used by investors in the energy industry to measure a company’s operating performance without regard to items excluded from the calculation of Adjusted EBITDA, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired, among other factors; (ii) it helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure and asset base from our operating structure; (iii) it is used by our management for various purposes, including as a measure of operating performance, in presentations to our Board of Directors, and as a basis for strategic planning and forecasting.

    Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows: (i) Adjusted EBITDA does not reflect all our cash expenditures, future requirements for capital expenditures, or contractual commitments; (ii) Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (iii) Adjusted EBITDA does not reflect the cash requirements necessary to service interest or principal payments on our debt and finance leases; and (iv) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any capital expenditures for such replacements.

    The following table reconciles our net income, the most directly comparable GAAP financial measure, to Adjusted EBITDA:

      Three months ended
      March 31, 2024   June 30, 2024   September 30, 2024   December 31, 2024   March 31, 2025
      (in thousands)
    Net income $               5,098                4,250   $                     5,014   $                    2,865   $                4,854
    Interest expense                  2,935                2,932                          3,045                         3,015                     3,170
    Income tax expense (benefit)                  1,479                1,294                          1,383                             283                     1,482
    Depreciation and amortization                  7,087                7,705                          8,086                         8,469                     8,636
    Impairments                        —                      —                             136                             705                           —
    Inventory allowance                        —                      —                                —                         1,863                           61
    Retirement of rental equipment                          5                      —                                —                               23                         728
    Severance and restructuring                        —                      33                                —                               —                           —
    Stock-based compensation                      274                    242                             522                             783                         359
    Adjusted EBITDA $             16,878   $         16,456   $                  18,186   $                  18,006   $              19,290

    Conference Call Details: The Company will host a conference call to review its fourth-quarter and year-end financial results on Tuesday, May 13, 2025 at 8:30 a.m. (EST), 7:30 a.m. (CST). To join the conference call, kindly access the Investor Relations section of our website at www.ngsgi.com or dial in at (800) 550-9745 and enter conference ID 167298 at least five minutes prior to the scheduled start time. Please note that using the provided dial-in number is necessary for participation in the Q&A section of the call. A recording of the conference will be made available on our Company’s website following its conclusion. Thank you for your interest in our Company’s updates.

    About Natural Gas Services Group, Inc. (NGS): Natural Gas Services Group is a leading provider of natural gas compression equipment, technology and services to the energy industry. The Company designs, rents, sells and maintains natural gas compressors for oil and natural gas production and plant facilities, primarily using equipment from third-party fabricators and OEM suppliers along with limited in-house assembly. The Company is headquartered in Midland, Texas, with a fabrication facility located in Tulsa, Oklahoma, and service facilities located in major oil and natural gas producing basins in the U.S. Additional information can be found at www.ngsgi.com.

    Forward-Looking Statements

    Certain statements herein (and oral statements made regarding the subjects of this release) constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend” or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. These forward-looking statements are based upon current estimates and assumptions.

    These forward–looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of the Company. Forward–looking information includes, but is not limited to statements regarding: guidance or estimates related to EBITDA growth, projected capital expenditures; returns on invested capital, fundamentals of the compression industry and related oil and gas industry, valuations, compressor demand assumptions and overall industry outlook, and the ability of the Company to capitalize on any potential opportunities.
    While the Company believes that the assumptions concerning future events are reasonable, investors are cautioned that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Some of these factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to:

    • conditions in the oil and gas industry, including the supply and demand for oil and gas and volatility in the prices of oil and gas;
    • changes in general economic and financial conditions, inflationary pressures, the potential for economic recession in the U.S., tariffs and trade restrictions, including the imposition of new and higher tariffs on imported goods and retaliatory tariffs implemented by other countries on U.S. goods, and the potential effects on our financial condition, results of operations and cash flows;
    • our reliance on major customers;
    • failure of projected organic growth due to adverse changes in the oil and gas industry, including depressed oil and gas prices, oppressive environmental regulations and competition;
    • our inability to achieve increased utilization of assets, including rental fleet utilization and monetizing other non-cash balance sheet assets;
    • failure of our customers to continue to rent equipment after expiration of the primary rental term;
    • our ability to economically develop and deploy new technologies and services, including technology to comply with health and environmental laws and regulations;
    • failure to achieve accretive financial results in connection with any acquisitions we may make;
    • fluctuations in interest rates;
    • changes in regulation or prohibition of new or current well completion techniques;
    • competition among the various providers of compression services and products;
    • changes in safety, health and environmental regulations;
    • changes in economic or political conditions in the markets in which we operate;
    • the inherent risks associated with our operations, such as equipment defects, malfunctions, natural disasters and adverse changes in customer, employee and supplier relationships;
    • our inability to comply with covenants in our debt agreements and the decreased financial flexibility associated with our debt;
    • inability to finance our future capital requirements and availability of financing;
    • capacity availability, costs and performance of our outsourced compressor fabrication providers and overall inflationary pressures;
    • impacts of world events, such as acts of terrorism and significant economic disruptions and adverse consequences resulting from possible long-term effects of potential pandemics and other public health crises; and
    • general economic conditions.

    In addition, these forward-looking statements are subject to other various risks and uncertainties, including without limitation those set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

    Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

    For More Information, Contact:
    Anna Delgado, Investor Relations
    (432) 262-2700
    IR@ngsgi.com
    www.ngsgi.com

     NATURAL GAS SERVICES GROUP, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except par value)
    (unaudited)
           
      March 31,
    2025    		   December 31, 2024
    ASSETS      
    Current Assets:      
    Cash and cash equivalents $                2,147   $                2,142
    Trade accounts receivable, net of provision for credit losses                 15,415                   15,626
    Inventory, net of allowance for obsolescence                 17,343                   18,051
    Federal income tax receivable                 11,263                   11,282
    Prepaid expenses and other                      992                     1,075
    Total current assets                 47,160                   48,176
    Long-term inventory, net of allowance for obsolescence                         —                           —
    Rental equipment, net of accumulated depreciation               424,856                 415,021
    Property and equipment, net of accumulated depreciation                 23,570                   22,989
    Other assets                   6,105                     6,342
    Total assets $           501,691   $           492,528
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current Liabilities:      
    Accounts payable $             14,977   $                9,670
    Accrued liabilities                   7,468                     7,688
    Total current liabilities                 22,445                   17,358
    Long-term debt               168,000                 170,000
    Deferred income taxes                 47,323                   45,873
    Other long-term liabilities                   3,659                     4,240
    Total liabilities               241,427                 237,471
    Commitments and contingencies      
    Stockholders’ Equity:      
    Preferred stock                         —                           —
    Common stock, 30,000 shares authorized, par value $0.01; 13,784 and 13,762 shares issued, respectively                      138                        138
    Additional paid-in capital               118,768                 118,415
    Retained earnings               156,362                 151,508
    Treasury shares, at cost, 1,310 shares for each of the dates presented, respectively               (15,004)                 (15,004)
    Total stockholders’ equity               260,264                 255,057
    Total liabilities and stockholders’ equity $           501,691   $           492,528
    NATURAL GAS SERVICES GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except earnings per share)
    (unaudited)
       
      Three months ended
      March 31,
      2025   2024
    Revenue:      
    Rental $             38,910   $             33,734
    Sales                   1,927                     2,503
    Aftermarket services                      546                        670
    Total revenue                 41,383                   36,907
    Cost of revenue (excluding depreciation and amortization):      
    Rental                 14,840                   13,114
    Sales                   2,016                     2,180
    Aftermarket services                      271                        500
    Total cost of revenues (excluding depreciation and amortization)                 17,127                   15,794
    Selling, general and administrative expense                   5,378                     4,702
    Depreciation and amortization                   8,636                     7,087
    Inventory allowance                         61                           —
    Retirement of rental equipment                      728                             5
    Gain on sale of assets, net                       (54)                           —
    Total operating costs and expenses                 31,876                   27,588
    Operating income                   9,507                     9,319
    Other income (expense):      
    Interest expense                 (3,170)                   (2,935)
    Other income (expense)                         (1)                        193
    Total other income (expense), net                 (3,171)                   (2,742)
    Income before income taxes                   6,336                     6,577
    Provision for income taxes                 (1,482)                   (1,479)
    Net income $                4,854   $                5,098
    Earnings per share:      
    Basic                     0.39                       0.41
    Diluted                     0.38                       0.41
    Weighted average shares outstanding:      
    Basic                 12,462                   12,380
    Diluted                 12,611                   12,465
    NATURAL GAS SERVICES GROUP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
    (unaudited)
      Three months ended
      March 31,
      2025   2024
    CASH FLOWS FROM OPERATING ACTIVITIES:      
    Net income $             4,854   $             5,098
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization                 8,636                   7,087
    Inventory allowance                      61                        —
    Retirement of rental equipment                    728                          5
    Gain on sale of assets, net                    (54)                        —
    Amortization of debt issuance costs                    212                      150
    Deferred income taxes                 1,450                   1,456
    Stock-based compensation                    359                      274
    Provision for credit losses                    208                      110
    Loss (gain) on company owned life insurance                      17                    (184)
    Changes in operating assets and liabilities:      
    Trade accounts receivables                        3                 (3,265)
    Inventory                    647                   2,650
    Prepaid expenses and prepaid income taxes                      64                      250
    Accounts payable and accrued liabilities                 4,617                 (8,380)
    Other                  (535)                      358
    NET CASH PROVIDED BY OPERATING ACTIVITIES              21,267                   5,609
    CASH FLOWS FROM INVESTING ACTIVITIES:      
    Purchase of rental equipment, property and other equipment             (19,256)               (10,932)
    Purchase of company owned life insurance                      —                         (9)
    NET CASH USED IN INVESTING ACTIVITIES             (19,256)               (10,941)
    CASH FLOWS FROM FINANCING ACTIVITIES:      
    Proceeds from credit facility borrowings                 6,000                   8,000
    Repayments of credit facility borrowings               (8,000)                        —
    Payments of other long-term liabilities                      —                    (175)
    Taxes paid related to net share settlement of equity awards                       (6)                        —
    NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES               (2,006)                   7,825
    NET CHANGE IN CASH AND CASH EQUIVALENTS                        5                   2,493
    CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                 2,142                   2,746
    CASH AND CASH EQUIVALENTS AT END OF PERIOD $             2,147   $             5,239
    SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:      
    Interest paid $             3,510   $             6,220
    Income taxes paid $                   16   $                   —
    NON-CASH TRANSACTIONS      
    Accrued purchases of property and equipment $                 524   $                   —
    Right of use asset acquired through an finance lease $                   —   $                 532

    The MIL Network –

  • MIL-OSI: Royalty Pharma Announces Shareholder Approval of its External Manager Acquisition

    Source: GlobeNewswire (MIL-OSI)

    • Received overwhelming shareholder approval with 99.9% of votes cast in favor
    • Simplified structure benefits shareholders through strengthened shareholder alignment, enhanced governance, significant cash savings and increased economic return on investments
    • Significant annual cash savings of greater than $100 million in 2026 growing to over $175 million in 2030, with cumulative savings of more than $1.6 billion over ten years
    • Royalty Pharma’s diversified royalty portfolio to be combined with intellectual capital and investment platform of the Manager to advance shareholder value creation

    NEW YORK, May 12, 2025 (GLOBE NEWSWIRE) — Royalty Pharma plc (Nasdaq: RPRX) today announced that shareholders overwhelmingly approved its previously announced external manager acquisition, with 99.9% voting in favor at Royalty Pharma’s 2025 Annual General Meeting and Special Meeting of Shareholders (the “Meeting”), marking a key milestone for the company.

    “We are pleased to announce shareholder approval of our manager internalization, an important step that strengthens our corporate governance, enhances transparency, and further aligns our leadership team with shareholder interests,” said Pablo Legorreta, founder and Chief Executive Officer of Royalty Pharma. “We are grateful for the strong support from our shareholders, and remain focused on delivering long-term value through our differentiated, innovation-focused business model.”

    With shareholder approval, Royalty Pharma will proceed with its transition from an external manager model to an integrated corporate structure, with the Royalty Pharma executive team and employees becoming direct employees of the company.

    Key Benefits to Shareholders

    The transaction is expected to result in multiple benefits for shareholders. On a financial basis, the acquisition is expected to reduce costs and enhance economic returns on investments. Specifically, the acquisition will generate cash savings of greater than $100 million in 2026 and greater than $175 million in 2030, and drive cumulative savings of greater than $1.6 billion over ten years. The acquisition also increases shareholder alignment, enhances corporate governance, ensures management continuity, maximizes employee retention as a result of the 5 to 9 year vesting of the shares received by management and simplifies Royalty Pharma’s corporate structure. Lastly, internalizing the Manager has the potential to expand Royalty Pharma’s shareholder base and further enhance the company’s valuation over time.

    Meeting Results

    At the Meeting held on May 12, 2025, 99.9% of votes cast were in favor of the internalization proposal.

    RP Management Internalization Transaction Terms

    Royalty Pharma will acquire the Manager for approximately 24.5 million shares of Royalty Pharma equity that will vest over 5 to 9 years, approximately $100 million in cash1, and the assumption of $380 million of existing Manager debt. The total transaction value of approximately $1.1 billion (based on the closing price of Royalty Pharma’s Class A ordinary shares of $26.20 on January 8, 2025), with the majority paid in long-term deferred equity, is expected to be more than offset by cumulative cash savings of greater than $1.6 billion over the next ten years. The equity component will represent approximately 4% of shares outstanding, assuming all shares vest.

    The closing of the internalization transaction will be subject to customary closing conditions, including required regulatory approvals. Royalty Pharma anticipates the transaction will close in May 2025.

    Background on the Manager

    Since its founding in 1996, Royalty Pharma had operated under an external management model, relying on a separate Manager, owned by Pablo Legorreta and other members of senior management, for all operations and personnel. The company paid quarterly fees to the Manager equal to 6.5% of Portfolio Receipts and 0.25% of the value of security investments. Following the internalization transaction, Royalty Pharma will no longer be externally managed, and all employees of the Manager will become employees of Royalty Pharma. Prior to 2024, Pablo Legorreta was the sole owner of the Manager. In early 2024, equity interests in the Manager were granted to 35 team members to support long-term succession planning and enhance alignment; these shares will vest over 10 years. Management (excluding Pablo Legorreta) will receive approximately 50% of the equity issued in the transaction, which will continue to vest through 2033. Pablo Legorreta agreed to have his equity vest over five years, despite no prior vesting requirement.

    About Royalty Pharma

    Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Novartis’ Promacta, Pfizer’s Nurtec ODT and Gilead’s Trodelvy, and 15 development-stage product candidates. For more information, visit www.royaltypharma.com.

    Forward-Looking Statements

    The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this document unless stated otherwise, and neither the delivery of this document at any time, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof. This document contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of Royalty Pharma’s strategies, financing plans, growth opportunities, market growth, and plans for capital deployment, plus the benefits of the internalization transaction, including cash savings, enhanced alignment with shareholders, increased investment returns, expectations regarding management continuity, transparency and governance, and the benefits of simplification to its structure. In some cases, you can identify such forward-looking statements by terminology such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “target,” “forecast,” “guidance,” “goal,” “predicts,” “project,” “potential” or “continue,” the negative of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the company. However, these forward-looking statements are not a guarantee of Royalty Pharma’s performance, and you should not place undue reliance on such statements, including because the internalization transaction is subject to shareholder approval. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of Royalty Pharma’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this document are made only as of the date hereof. Royalty Pharma does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except as required by law. For further information, please reference Royalty Pharma’s reports and documents filed with the U.S. Securities and Exchange Commission (“SEC”) by visiting EDGAR on the SEC’s website at www.sec.gov.

    Use of Non-GAAP Measures

    Adjusted EBITDA and Portfolio Cash Flow are non-GAAP liquidity measures that exclude the impact of certain items and therefore have not been calculated in accordance with GAAP.

    Management believes that Adjusted EBITDA and Portfolio Cash Flow are important non-GAAP measures used to analyze liquidity because they are key components of certain material covenants contained within Royalty Pharma’s credit agreement. Royalty Pharma cautions readers that amounts presented in accordance with the definitions of Adjusted EBITDA and Portfolio Cash Flow may not be the same as similar measures used by other companies or analysts. These non-GAAP liquidity measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for the analysis of Royalty Pharma’s results as reported under GAAP.

    The definitions of Adjusted EBITDA and Portfolio Cash Flow used by Royalty Pharma are the same as the definitions in the credit agreement. Noncompliance with the interest coverage ratio, leverage ratio and Portfolio Cash Flow ratio covenants under the credit agreement could result in lenders requiring the company to immediately repay all amounts borrowed. If Royalty Pharma cannot satisfy these covenants, it would be prohibited under the credit agreement from engaging in certain activities, such as incurring additional indebtedness, paying dividends, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA and Portfolio Cash Flow are critical to the assessment of Royalty Pharma’s liquidity.

    Adjusted EBITDA and Portfolio Cash Flow are used by management as key liquidity measures in the evaluation of the company’s ability to generate cash from operations. Management uses Adjusted EBITDA and Portfolio Cash Flow when considering available cash, including for decision-making purposes related to funding of acquisitions, debt repayments, dividends and other discretionary investments. Further, these non-GAAP liquidity measures help management, the audit committee and investors evaluate the company’s ability to generate liquidity from operating activities.

    Royalty Pharma Investor Relations and Communications

    +1 (212) 883-6637
    ir@royaltypharma.com

    1 The cash component of the consideration consists of $200 million in cash less the amount of the management fees paid to the Manager from January 1, 2025 through the closing of the transaction. The transaction is estimated to close during the second quarter of 2025 and the management fee paid through the closing is expected to be approximately $100 million.

    The MIL Network –

  • MIL-OSI USA: Department of Homeland Security Investigates State of California for Providing Federal Benefits to Illegal Aliens

    Source: US Federal Emergency Management Agency

    Headline: Department of Homeland Security Investigates State of California for Providing Federal Benefits to Illegal Aliens

    lass=”text-align-center”>Under Secretary Noem’s leadership, DHS will not allow U

    S

    taxpayer dollars to be squandered on illegal aliens 
    LOS ANGELES – Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Los Angeles Field Office issued a Title 8 subpoena to the State of California’s Cash Assistance Program for Immigrants (CAPI)

    This program provides benefits to aliens who are ineligible for Social Security benefits because of their immigration status

     The subpoena requests all records from the Los Angeles County Department of Public Social Services – who administers the state program – to determine if ineligible illegal aliens received Supplemental Security Income (SSI) from the Social Security Administration, between January 2021 to present

    HSI Los Angeles is subpoenaing the following records:

    Applicant’s Name and Date of Birth
    Copies of Applications
    Immigration Status
    Proof of Ineligibility for SSI from the Social Security Administration
    Affidavits in Support of the Application

    “Radical left politicians in California prioritize illegal aliens over our own citizens, including by giving illegal aliens access to cash benefits,” said Secretary Kristi Noem

    “The Trump Administration is working together to identify abuse and exploitation of public benefits and make sure those in this country illegally are not receiving federal benefits or other financial incentives to stay illegally

    If you are an illegal immigrant, you should leave now

    The gravy train is over

    While this subpoena focuses only on Los Angeles County – it is just the beginning

    ”On April 15, 2025, President Donald Trump signed the Memorandum Preventing Illegal Aliens from Obtaining Social Security Act Benefits to stop incentivizing illegal immigration and protect taxpayer dollars

    The Memorandum directs the Secretary of Homeland Security – in consultation with the Secretaries of Labor and Health and Human Services, the Commissioner of the Social Security Administration, and the Attorney General – to ensure ineligible illegal aliens do not receive funds from Social Security programs and prioritize civil or criminal enforcement against states or localities for potential violations of Title IV of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA)

    Under the previous administration, more than 2 million ineligible illegal aliens received a Social Security Number in fiscal year 2024 alone

    Under President Trump’s leadership, the Department of Homeland Security will work with its federal partners to deliver on his promise to put Americans, and their tax dollars, first

    ###

    MIL OSI USA News –

  • MIL-OSI USA: CARLISLE – Lt. Gov. Austin Davis to Highlight Shapiro-Davis Administration’s Investment in Cumberland County to Create More Jobs and Build Shovel-Ready Sites for Businesses

    Source: US State of Pennsylvania

    May 13, 2025 – Carlisle, PA

    ADVISORY – CARLISLE – Lt. Gov. Austin Davis to Highlight Shapiro-Davis Administration’s Investment in Cumberland County to Create More Jobs and Build Shovel-Ready Sites for Businesses

    Lt. Gov. Austin Davis will join state and local leaders and economic development officials for a news conference to highlight investments by the Shapiro-Davis Administration to create more jobs and build shovel-ready sites for businesses, Tuesday, May 13, at 10 a.m. at the former Frog, Switch & Manufacturing site, 600 E. High St., Carlisle.

    The Shapiro-Davis Administration is delivering a $10.2 million investment for this redevelopment project through the first round of the PA SITES (Pennsylvania Strategic Investments to Enhance Sites) program.

    WHO:
    Lt. Gov. Austin Davis
    State Sen. Greg Rothman
    Cumberland County Board of Commissioners Chair Kelly Neiderer,
    Carlisle Mayor Sean Shultz
    Representatives from the Real Estate Collaborative and Frog, Switch & Manufacturing

    WHAT: News conference to highlight investments by the Shapiro-Davis Administration to create more jobs and build shovel-ready sites for businesses

    WHEN:
    Tuesday, May 13, at 10 a.m.

    WHERE:
    Former Frog, Switch & Manufacturing site
    600 E. High St. Carlisle

    RSVP:
    Members of the news media who are interested in attending must RSVP to Kirstin Alvanitakis at kirstinalv@pa.go.

    MIL OSI USA News –

  • MIL-OSI Security: Environmental Crimes Bulletin – April 2025

    Source: United States Attorneys General

    View All Environmental Crimes Bulletins

    In This Issue:

    Cases by District/Circuit

    District/Circuit Case Name Conduct/Statute(s)
    District of Alaska United States v. Jason Christenson Tampering with a Monitoring Device/Clean Air Act
    United States v. Matanuska Diesel, LLC, et al. Tampering with a Monitoring Device/ Clean Air Act, Conspiracy
    Western District of Arkansas United States v. Redemption Repairs & Performance Tampering with a Monitoring Device/Clean Air Act
    Southern District of California United States v. Dumitru Cicai Pesticide Smuggling
    United States v. Sarmad Ghaled Dafer, et al. Monkey Smuggling/ Conspiracy
    Southern District of Florida United States v. Royce Gillham Biofuel Credits/Conspiracy, False Claims, Wire Fraud
    Southern District of Georgia United States v. Justin Taylor Tampering with a Monitoring Device/Conspiracy, Tax
    District of Maryland United States v. Idrissa Bagayoko Pesticide Sales/FIFRA, HMTA
    District of Massachusetts United States v. John D. Murphy Dog Fighting/Animal Welfare Act
    Eastern District of Michigan United States v. Tribar Technologies, Inc. Wastewater Discharges/Clean Water Act
    District of Montana United States v. Mold Wranglers, et al. Lead Paint Abatement/False Claims Act/Toxic Substances Control Act, Knowing Endangerment
    United States v. Melanie Ann Carlin Lead Paint Disclosures/Toxic Substances Control Act
    District of New Jersey United States v. Johnnie Lee Nelson, et al. Dog Fighting/Animal Fighting Venture, Conspiracy
    United States v. Antonio Pereira, et al. Scallop Harvesting/ Conspiracy, Obstruction
    Eastern District of New York United States v. Charles Limmer Butterfly Smuggling/ Conspiracy
    United States v. John Waldrop, et al. Bird Mounts/Conspiracy, Endangered Species Act
    Southern District of New York United States v. Jose Correa Asbestos Removal/Clean Air Act
    District of Oregon United States v. Chamness Dirt Works, Inc., et al. Asbestos Removal/Clean Air Act
    United States v. J.H. Baxter & Co., Inc. et al. Hazardous Waste Treatment and Emissions/Clean Air Act, Resource Conservation and Recovery Act, False Statement
    Middle District of Pennsylvania United States v. Ryan Spencer Tampering with a Monitoring Device/Clean Air Act, Conspiracy
    Western District of Pennsylvania United States v. Dale A. Smith Ginseng Sales/ Conspiracy, Lacey Act
    District of Rhode Island United States v. Onill Vasquez Lozada, et al. Cockfighting/Animal Welfare Act
    District of South Carolina United States v. Lauren DeLoach Sperm Whale Teeth and Bones/Lacey Act, Marine Mammal Protection Act
    Northern District of Texas United States v. Dlubak Glass Company Hazardous Waste Storage/False Statement
    Southern District of Texas United States v. Priscilla Sanchez Monkey Smuggling/Lacey Act
    Western District of Texas United States v. Aghorn Operating, Inc., et al. Employee Death/Clean Air Act, False Statement, Safe Drinking Water Act, Worker Safety
    Western District of Virginia United States v. Coby Brummett Ginseng Digging/ Unauthorized Removal Natural Product from Park
    Eastern District of Washington United States v. Pavel Ivanovich Turlak, et al. Tampering with a Monitoring Device/Clean Air Act, Conspiracy, False Claims, Wire Fraud
    Western District of Washington United States v. Joel David Ridley Eagle Killing/Bald and Golden Eagle Protection Act, Firearm
    Northern District of West Virginia United States v. Michael Kandis Reptile Trafficking/Lacey Act

    Recently Charged

    United States v. Ryan Spencer

    • No. 1:25-CR-00100 (Middle District of Pennsylvania)
    • ECS Senior Trial Attorneys RJ Powers and Ron Sarachan
    • AUSA David Williams

    On April 4, 2025, prosecutors filed an information charging Ryan Spencer with conspiring to impede the lawful functions of the Environmental Protection Agency (EPA) and to violate the Clean Air Act (CAA), as well as substantive CAA violations (18 U.S.C. § 371; 42 U.S.C. § 7413(c)(2)(C)).

    Between 2013 and March 2024, Spencer, a Service Manager at Pro Diesel Werks, LLC, along with Pro Diesel Werks owner Roy Ladell Weaver and others, disabled the hardware emissions control systems on the diesel vehicles of Pro Diesel Werks’ customers (a practice referred to as a “delete” or “deleting”), defeating the systems’ ability to reduce pollutant gases and particulate matter emitted into the atmosphere. The information further alleges that Spencer and his co-conspirators also tampered with the emissions diagnostic systems on the vehicles to prevent the diagnostic system software from monitoring the emission control system hardware deletes (a practice referred to as a “tune” or “tuning”).

    On February 19, 2025, a grand jury indicted Weaver and Pro Diesel Werks on similar charges.

    The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

    Related Press Release: Middle District of Pennsylvania | Dauphin County Man Charged With Violations of Clean Air Act and Conspiring to Defraud the United States and Violate the Clean Air Act | United States Department of Justice

    United States v. Joel David Ridley

    • No. 2:25-mj-00175 (Western District of Washington)
    • AUSA Celia Ann Lee

    On April 7, 2025, a court unsealed a complaint charging Joel David Ridley, a member of the Lummi Nation, with violating the Bald and Golden Eagle Protection Act and for illegally possessing a firearm (16 U.S.C. § 668(a); 18 U.S.C. 922(g)(1)).

    According to the complaint, on February 23, 2025, a witness on the Lummi Reservation heard a gunshot while walking his dog. As he walked home, the witness heard a second shot and saw a person pick up an eagle from the ground. As the witness was on the phone with police, he saw another eagle fall from a tree on his property. The eagle was badly injured. Police captured the surviving eagle and later transported it to the Humane Society.

    Shortly after meeting with the witness, police encountered an SUV in the area that matched the description provided by the reporting party.  A records check revealed the vehicle belonged to Ridley. When police responded to the residence, they observed a dead eagle in the back seat of Ridley’s vehicle.

    Police obtained a search warrant for Ridley’s vehicle and found a dead eagle and a .22 caliber Savage rifle concealed between the rear seats. Ridely is prohibited from possessing firearms due to a prior conviction.

    Both juvenile bald eagles were taken to the Washington State Humane Society and found to have suffered gunshot wounds. The surviving eagle had to be euthanized.

    While the Lummi Tribe is permitted to possess, distribute, and transport bald or golden eagles found dead within Indian Country, the permit does not authorize the taking of eagles by gunshot, poison, or trapping.

    The Lummi Nation Police Department and the Federal Bureau of Investigation conducted the investigation.

    Related Press Release: Western District of Washington | Member of Lummi Nation charged federally with illegal firearms possession and killing protected bald eagles | United States Department of Justice

    United States v. Dumitru Cicai

    • No. 3:25-mj-01628 (Southern District of California)
    • AUSA Emily Allen

    On April 8, 2025, prosecutors filed a complaint charging Dumitru Cicai with smuggling twenty-four one-liter bottles of “Taktic” pesticide into the United States (18 U.S.C. § 545).

    On March 31, 2025, Cicai drove into the United States at the San Ysidro Port of Entry. Cicai told the Customs and Border Patrol (CBP) primary inspection officer that he had nothing to declare. Upon inspecting the vehicle, the primary officer discovered multiple pieces of natural wood branches in the vehicle’s trunk and large bottles concealed in black bags.

    When questioned by the secondary CBP officer, Cicai said he only had wood to declare, nothing else. Upon closer inspection, officers found 24 bottles of pesticide labeled “Taktic.”

    “Taktic” contains the active ingredient amitraz at an emulsifiable concentration of 12.5 percent. Under U.S. Environmental Protection Agency regulations, amitraz in this form is a cancelled and unregistered pesticide in the United States.

    The U.S. Environmental Protection Agency Criminal Investigation Division and Homeland Security Investigations conducted the investigation. 

    United States v. Jason Christenson

    • No. 3:25-CR-00030 (District of Alaska)
    • AUSA Ainsley McNerney
    • RCEC Karla Perrin

    On April 25, 2025, prosecutors filed an information charging Jason Christenson with tampering with a Clean Air Act (CAA) monitoring device and CAA false statements (42 U.S.C. §§ 7413(c)(2)(C), (c)(2)(A)).

    Between October 2019 and March 2024, Christenson tampered with monitoring methods required to be maintained under the CAA by altering the emissions control equipment on approximately 170 diesel trucks. Christenson and his business, Elite Diesel Performance, also modified the onboard diagnostic systems of the vehicles to prevent them from detecting the fact that this equipment had been removed.

    On May 1, 2021, Christenson submitted a response to a Request for Information sent by the Environmental Protection Agency that contained false statements. Specifically, for the question asking whether he or his business had manufactured, sold, or installed any defeat devices, Christenson responded ‘no.’ In truth, he had installed more than 100 defeat devices on diesel trucks between January 2019 and January 2021.

    The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

    Guilty Pleas

    United States v. Priscilla Sanchez

    • No. 5:25-CR-00254 (Southern District of Texas)
    • AUSA Torie Sailor

    On April 1, 2025, Priscilla Sanchez pleaded guilty to violating the Lacey Act for attempting to import five spider monkeys, a protected species, into the United States from Mexico (16 U.S.C. §§ 3372(a)(2), 3373(d)(1)(A)). Sentencing is scheduled for July 1, 2025.

    On January 13, 2025, Sanchez attempted to enter the U.S. at the Port of Entry, near Laredo, Texas, driving an SUV. Customs and Border Protection officers referred her to secondary screening. Officers discovered a duffle bag with five monkeys wearing diapers concealed inside of it. Authorities confirmed they were spider monkeys, which are protected by the Convention on International Trade in Endangered Species. Sanchez admitted to keeping monkeys at her house and selling them for between $300 and $500 each. She also knew it was illegal to do so.

    The U.S. Fish and Wildlife Service Office of Law Enforcement, Homeland Security Investigations, and Customs and Border Protection conducted the investigation.

    Case photo of monkeys seized by CBP agents.

    United States v. Lauren DeLoach

    • No. 9:25-CR-00164 (District of South Carolina)
    • ECS Senior Trial Attorney Ryan Connors
    • AUSA Winston Holliday
    • AUSA Elle Klein

    On April 10, 2025, Lauren DeLoach pleaded guilty to violating the Marine Mammal Protection Act and Lacey Act trafficking for importing and selling sperm whale teeth and bones (16 U.S.C. §§ 1372(a)(4)(B), 3372(a)(1), 3373(b)(1)(B)).

    DeLoach operated a home decoration store in St. Helena Island, South Carolina. Between September 2021 and September 2024, he imported sperm whale parts to South Carolina, with at least 30 shipments coming from Australia, Latvia, Norway, and Ukraine. DeLoach instructed suppliers to label the items as “plastic” or “resin” so they would not be seized by U.S. Customs authorities. DeLoach acknowledged selling the teeth and bones from July 2022 through September 2024, in violation of the Lacey Act. He sold at least 85 items on eBay worth more than $18,000, and agents seized approximately $20,000 worth of sperm whale parts from DeLoach’s residence while executing a search warrant.

    Laboratory analysis confirmed the teeth and bones belonged to sperm whales, which are a protected species.

    The U.S. Fish and Wildlife Service Office of Law Enforcement and the National Oceanic and Atmospheric Administration conducted the investigation.

    Related Press Release: District of South Carolina | South Carolina Man Pleads Guilty for Illegally Importing and Selling Sperm Whale Teeth and Bones | United States Department of Justice

    United States v. Dale A. Smith

    • No. 1:21-CR-00031 (Western District of Pennsylvania)
    • AUSA Paul Sellers

    On April 21, 2025, Dale A. Smith pleaded guilty to conspiracy and to violating the Lacey Act for illegally purchasing American ginseng (18 U.S.C. § 371; 16 U.S.C. §§ 3372(a)(2)(B), 3373(d)(l)(B)).

    As the owner and operator of Alleghany Mountain Ginseng, Smith possessed licenses to deal wild American ginseng in Pennsylvania and New York. Between September 2018 and January 2020, he purchased wild ginseng in Pennsylvania from buyers who informed him that they harvested it from New York without required certifications. Smith then submitted falsified Ginseng Dealer Quarterly Reports stating he purchased legally harvested ginseng from Pennsylvania, when in fact the ginseng came from New York.

    The United States Fish and Wildlife Service Office of Law Enforcement conducted the investigation.

    United States v. Matanuska Diesel, LLC, et al.

    • No. 3:23-CR-00109 (District of Alaska)
    • AUSA Jennifer Ivers
    • RCEC Karla Perrin

    On April 23, 2025, Brendan Trevors entered into a pretrial diversion agreement, pleading guilty to conspiracy to violate the Clean Air Act (18 U.S.C. § 371). The charge will be dismissed in 18 months if Trevors complies with all the conditions in the agreement. This includes paying a $16,000 fine and restoring his vehicle back to original emission control parameters.

    Between July 2020 and June 2022, Matanuska Diesel, LLC, company owner Mackenzie Spurlock, and former co-owner Trevors, removed air pollution control equipment and tampered with federally mandated monitoring devices on diesel vehicles. The process of removing emissions control systems and reprogramming a vehicle’s onboard diagnostic system is known as “deleting” and “tuning.” These unlawful modifications result in a significant increase in pollutants emitted by the vehicle. The defendants tampered with approximately nine trucks, charging between $1,200 and $5,000 for those services.

    Matanuska and Spurlock are scheduled for trial to begin on October 20, 2025, for conspiring to violate the CAA and multiple substantive CAA violations (18 U.S.C. § 371; 42 U.S.C. § 7413(c)(2)(C)).

    The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

    United States v. Onill Vasquez Lozada, et al.

    • No. 1:24-CR-00075 (District of Rhode Island)
    • ECS Assistant Chief Stephen DaPonte
    • ECS Senior Trial Attorney Gary Donner
    • AUSA John McAdams

    On April 29, 2025, Onill Vasquez Lozada pleaded guilty to two counts of possessing, sponsoring, and exhibiting birds in an animal fighting venture in violation of the Animal Welfare Act (7 U.S.C. § 2156(a)(1), (b), (d); 18 U.S.C. § 49(a)). Sentencing is scheduled for July 29, 2025.

    Lozada is one of six defendants charged with violating the Animal Welfare Act in connection with a cockfighting operation. According to the indictment, on March 6, 2022, Miguel Delgado hosted a series of individual cockfights, known as “derbies,” at his Providence home. Delgado is also charged with sponsoring and exhibiting roosters in an animal fighting venture on multiple dates, buying and transporting sharp instruments, or “gaffs,” for use in the cockfights, and unlawfully possessing roosters for use in an animal fighting venture.

    Antonio Ledee Rivera and Lozada were charged with unlawfully possessing roosters in April 2021 for use in an animal fighting venture and for sponsoring and exhibiting roosters at a March 2022 derby at Delgado’ s home. Rivera was also charged in connection with an earlier derby at Delgado’ s home.

    Germidez Kingsley Jamie, Jose Rivera, and Luis Castillo are charged with sponsoring and exhibiting roosters at an animal fighting venture at the March 2022 derby. Jamie and Jose Rivera are also charged with one count of buying and transporting gaffs for use in an animal fighting venture.

    The Department of Agriculture Office of Inspector General, the Postal Inspection Service, the Food and Drug Administration Office of Criminal Investigation, and the Rhode Island Society for the Prevention of Cruelty to Animals conducted the investigation. The following agencies also assisted: the U.S. Marshals Service; the U.S. Fish and Wildlife Service Office of Law Enforcement; U.S. Customs and Border Protection; Rhode Island State Police; Massachusetts State Police; Animal Rescue League of Boston’s Law Enforcement Division; and Providence, Woonsocket, and Attleboro, MA, Police Departments.

    United States v. Michael Kandis

    • No. 5:25-CR-00005 (Northern District of West Virginia)
    • ECS Trial Attorney Lauren Steele
    • AUSA Max Nogay

    On April 30, 2025, Michael Kandis pleaded guilty to a Lacey Act Trafficking offense (16 U.S.C. §§ 3372(a)(2)(A), 3373(d)(2)).

    Kandis is a reptile dealer in Wheeling, West Virginia. Indiana Department of Natural Resources (IDNR) conservation officers became acquainted with Kandis through a long-term investigation in which they operated in a covert capacity at various reptile shows throughout the Midwest.

    During their investigation, the IDNR officers conducted several wildlife transactions involving Kandis. In October 2019, Kandis purchased 47 snakes from undercover officers, 25 of which were bullsnakes, for a total price of $1,415. The sale was conducted in Noblesville, Indiana. Bullsnakes are a native species in Indiana, and it is illegal to sell them under Indiana law. Kandis later transported the snakes from Indiana to West Virginia to sell.

    The U.S. Fish and Wildlife Service Office of Law Enforcement and the Indiana Department of Natural Resources conducted the investigation.

    Sentencings

    United States v. Pavel Ivanovich Turlak, et al.

    • No. 2:24-CR-00057 (Eastern District of Washington)
    • AUSA Dan Fruchter
    • AUSA Jacob Brooks
    • RCEC Gwendolyn Brooks

    On April 2, 2025, a court sentenced Pavel Ivanovich Turlak, and his Spokane-based trucking companies: PT Express, LLC; Spokane Truck Service, LLC; and Pauls Trans, LLC. They previously pleaded guilty to conspiring to illegally violate Clean Air Act (CAA) emissions controls and to fraudulently obtaining hundreds of thousands of dollars in COVID-19 relief funding (42 U.S.C. § 7413 (c)(2)(C);18 U.S.C. §§ 371, 1343, 287). All defendants will complete five-year terms of probation, with the companies subject to an environmental compliance plan. All defendants are jointly and severally responsible for $317,389 in restitution to the Small Business Administration.

    Between August 2017 and November 2023, Turlak purchased illegal “delete tune” packages from Ryan Hugh Milliken and his company, Hardaway Solutions, LLC. They designed this software to disable and defeat emissions controls and monitoring systems required under the CAA. Turlak loaded the delete tunes into the trucks used by his own businesses, as well as trucks of co-conspirators who were customers of Spokane Truck Service, LLC. Milliken created and sold custom software delete tunes to Turlak for vehicles based on specifications Turlak outlined. Turlak then charged as much as $3,500 to diesel truck owners to “delete” and “tune” their vehicles by tampering with their pollution monitoring devices.

    In addition to violating the CAA, Turlak fraudulently obtained hundreds of thousands of dollars in COVID-19 relief funding. Between March 2020 and August 2021, Turlak fraudulently applied for and received more than $300,000 in federal funding that was designated to go to eligible small businesses during the pandemic. Turlak and his businesses were not eligible to receive this funding due to their ongoing participation in this criminal conspiracy.

    Milliken and Hardaway Solutions pleaded guilty in November 2024 to conspiracy and to violating the CAA (18 U.S.C. § 371; 42 U.S.C. § 7413(c)(2)(C)). They were sentenced in January 2025 to complete five-year terms of probation, during which the company will be responsible for implementing an environmental compliance plan. Both defendants are jointly and severally responsible for paying a $75,000 fine.

    The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation with assistance from the EPA National Enforcement Investigations Center, the Small Business Administration Office of Inspector General, and the Spokane Police Department.

    United States v. Charles Limmer

    • No. 1:23-CR-00405 (Eastern District of New York)
    • AUSA Sean M. Sherman

    On April 3, 2025, a court sentenced Charles Limmer to two years of home detention. Limmer pleaded guilty to conspiracy after prosecutors charged him with Endangered Species Act, Lacey Act, and smuggling violations for trafficking in numerous specimens of butterflies (18 U.S.C. § 371). This protected species is known as “birdwings” due to their exceptional size, angular wings, and birdlike flight. As part of the plea, Limmer forfeited 1,600 specimens.

    Limmer obtained a license in 2016 to import and export wildlife.  After Limmer and his business violated numerous import/export regulations, the Fish and Wildlife Service suspended his license.

    Between October 2022 and September 2023, Limmer and others imported and exported at least 59 illegal shipments containing wildlife, valued at approximately $216,000. They falsely labelled the wildlife as “decorative wall coverings” or “origami paper creations.”

    The U.S. Fish and Wildlife Service Office of Law Enforcement conducted the investigation.

    United States v. Idrissa Bagayoko

    • No. 1:23-CR-00265 (District of Maryland)
    • AUSA Kimberly Phillips
    • RCEC Kertisha Dixon
    • RCEC David Lastra

    On April 3, 2025, a court sentenced Idrissa Bagayoko to time served, followed by one year of supervised release to include three months’ home confinement for transporting and selling unregistered pesticides. Bagayoko also will pay $5,640 in restitution to reimburse the Environmental Protection Agency (EPA) for the cost of destroying unregistered pesticides.

    A jury convicted Bagayoko in November 2024 on two counts for transporting and selling the unregistered pesticide Sniper DDVP. The jury found Bagayoko guilty of violating the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Hazardous Materials Transportation Act (HMTA) (7 U.S.C. §§ 136j(a)(1) (A), 136l(b)(1)(B); 49 U.S.C. § 5124).

    Bagayoko owned and operated Maliba Trading, LLC. According to evidence presented at trial, on September 29, 2021, Bagayoko drove from New York to Maryland and sold two boxes of Sniper DDVP to an individual in Maryland. Police later stopped Bagayoko in Elkton, Maryland, with 18 additional boxes of Sniper DDVP containing a total of 1,728 bottles.

    Samples taken from the bottles revealed the presence of dichlorvos. EPA has classified dichlorvos as a probable human carcinogen. In total, the defendant transported more than 330 pounds of dichlorvos (a reportable quantity) without requisite shipping papers.

    The U.S. Environmental Protection Agency Criminal Investigation Division, the U.S. Department of Transportation Office of Inspector General, and the Elkton Maryland Police Department conducted the investigation.

    Related Press Release: District of Maryland | New York Business Owner Sentenced for Illegally Transporting and Selling Probable Carcinogen | United States Department of Justice

    United States v. Redemption Repairs & Performance

    • No. 4:24-CR-40016 (Western District of Arkansas)
    • AUSA Sydney Stanley

    On April 3, 2025, a court sentenced Redemption Repairs & Performance (RRP) to pay a $50,000 fine and complete a three-year term of probation.

    RRP pleaded guilty to violating the Clean Air Act (CAA) for modifying and deleting the emissions control systems of diesel engines and tampering with and rendering inaccurate the vehicles’ onboard diagnostic (OBD) systems (42 U.S.C § 7413(c)(2)(C)).

    RRP is a truck repair shop specializing in diesel engine repairs and performance located in Texarkana, Arkansas. Between May 2020 and October 2022, the company falsified, tampered with, and rendered inaccurate monitoring devices required to be maintained and followed under the CAA. After removing or altering the emission control equipment on diesel trucks, RRP modified the diesel trucks’ OBD systems to prevent detection of the removal and disabling of the equipment. The company performed this service on approximately 50 vehicles, charging between $2,600-$2,700 per truck.

    The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation. 

    United States v. Chamness Dirt Works, Inc., et al.

    • No. 3:24-CR-00430 (District of Oregon)
    • AUSA Bryan Chinwuba
    • RCEC Karla Perrin

    On April 3, 2025, a court sentenced Ryan Richter, Ronald Chamness, Horseshoe Grove, LLC, and Chamness Dirt Works, Inc., for violations of the Clean Air Act (CAA).

    Property management company Horseshoe Grove pleaded guilty to violating the CAA National Emission Standards for Hazardous Air Pollutants (NESHAP) for asbestos work practice standards (42 U.S.C. §§ 7412(h),7413(c)(1)). Horseshoe Grove’s owner and operator Ryan Richter pleaded guilty to a CAA negligent endangerment violation (42 U.S.C. § 7413(c)(4)). Construction and demolition company Chamness Dirt Works pleaded guilty to violating the CAA NESHAP for asbestos, and company owner and president, Ronald Chamness, pleaded guilty to a CAA negligent endangerment violation (42 U.S.C. § 7413(c)(4)).

    Horseshoe Grove and Chamness Dirt Works were sentenced to complete three-year terms of probation. Richter and Ronald Chamness were each sentenced to five-year terms of probation and ordered to remediate the impacted site in accordance with stipulated conditions of probation. No fine was sought against the parties due to the cost of remediating the site to remove any remaining asbestos. The approximate cost of the remediation was $175,000.

    In November 2022, Horseshoe Grove acquired a property in The Dalles, Oregon, which included a mobile home park and two dilapidated apartment buildings. The previous owner provided the new buyers with an asbestos survey from December 2021, which identified more than 5,000 square feet of friable chrysotile asbestos within the two deteriorating buildings, with levels ranging from two percent to 25 percent. The survey also noted non-friable asbestos in various building materials, including siding and flooring, throughout the apartments. Despite these findings, Horseshoe Grove failed to implement the necessary precautions for asbestos removal.

    In March 2023, Chamness Dirt Works began demolishing the two asbestos-laden structures without following proper removal procedures. Chamness did not engage a certified asbestos abatement contractor, did not wet the asbestos-containing debris, and dumped the material in a regular landfill.

    Horseshoe Grove paid Chamness Dirt Works a total of $49,330 for the demolition, which did not meet the required safety standards.

    The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

    United States v. John Waldrop, et al.

    • No. 1:23-CR-00378 (Eastern District of New York)
    • ECS Senior Trial Attorney Ryan Connors
    • AUSA Anna Karamigios

    On April 9, 2025, the court sentenced Dr. John Waldrop and Toney Jones for their involvement in the largest seizure of bird mounts in U.S. Fish and Wildlife Service (USFWS) history. Waldrop pleaded guilty to conspiracy to smuggle wildlife and Endangered Species Act (ESA) violations. He was ordered to pay a $900,000 fine and will complete a three-year term of probation (18 U.S.C. § 371; 16 U.S.C. §§ 1538(e), 1540(b)(1)). This is one of the largest fines ever imposed in an ESA case. Jones was sentenced to complete a six-month term of probation for violating the ESA (16 U.S.C. §§ 1538(e), 1540(b)(1)).

    Over a period of five years, Waldrop illegally imported thousands of museum-quality taxidermy bird mounts and preserved eggs to build a personal collection. His collection of 1,401 taxidermy bird mounts and 2,594 eggs included:

    • Four eagles protected by the Bald and Golden Eagle Protection Act
    • 179 bird and 193 egg species listed in the Migratory Bird Treaty Act, and
    • 212 bird and 32 egg species protected by the Convention on International Trade in Endangered Species (CITES).

    This included extremely rare specimens such as three eggs from the Nordmann’s greenshank, an Asian shorebird with only 900 to 1,600 remaining birds in the wild.

    Between 2016 and 2020, Waldrop imported birds and eggs without the required declarations and permits. After USFWS inspectors at John F. Kennedy International Airport and elsewhere intercepted several shipments, Waldrop recruited Jones, who worked on his Georgia farm, to receive the packages. Jones also deposited approximately $525,000 in a bank account that Waldrop then used to pay for the imports and hide his involvement. Waldrop and Jones used online sales sites such as eBay and Etsy to buy birds and eggs from around the world, including Germany, Hungary, Iceland, Italy, Lithuania, Malta, Russia, South Africa, the United Kingdom, and Uruguay.

    In total, Waldrop spent more than $1.2 million to illegally build this collection. Pursuant to the plea agreement, Waldrop abandoned his collection, which was distributed to the USFWS forensic laboratory, the Smithsonian, and other museums and universities.

    The U.S. Fish and Wildlife Service Office of Law Enforcement conducted the investigation.

    Related Press Release: Office of Public Affairs | Two Men Sentenced in Largest-Ever Bird Mount Trafficking Case | United States Department of Justice

    United States v. John D. Murphy

    • No. 1:24-CR-10074 (District of Massachusetts)
    • ECS Senior Trial Attorney Matthew Morris
    • AUSA Danial Bennett
    • AUSA Kaitlin Brown
    • ECS Paralegal Jonah Fruchtman

    On April 9, 2025, a court sentenced John D. Murphy to nine months’ incarceration, and three months and one day of home confinement, followed by three years’ supervised release. Murphy was also ordered to pay a $10,000 fine. Murphy pleaded guilty to violating the Animal Welfare Act for possessing dogs to use in an animal fighting venture (7 U.S.C. § 2156(b)).

    Prosecutors charged Murphy after investigators identified him on recorded calls discussing dog fighting in a separate investigation. Subsequent court-authorized searches of his Facebook accounts revealed Murphy’s extensive involvement in dogfighting.

    On June 7, 2023, authorities executed a search warrant at Murphy’s residence and another home, seizing 13 pit bull-type dogs. Several dogs exhibited scarring consistent with animal fighting. Authorities also recovered equipment used in fights, including syringes, anabolic steroids, a skin stapler, forceps, and equipment and literature for training dogs.

    The investigation revealed that Murphy often communicated with other dogfighters via Facebook and posted dogfighting-related photos to his Facebook account. Additionally, Murphy posted videos depicting pit bull-type dogs tethered to treadmills commonly used to physically condition dogs for fighting.

    The U.S. Department of Agriculture Office of Inspector General conducted the investigation with assistance from the following agencies: Homeland Security Investigations; U.S. Customs and Border Protection; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Coast Guard Investigative Service; U.S. Marshals Service; Maine State Police; New Hampshire State Police; Massachusetts Office of the State Auditor; Rhode Island Society for the Prevention of Cruelty to Animals; and Police Departments in Hanson, Boston, and Acton, Massachusetts.

    Related Press Release: District of Massachusetts | Massachusetts Man Sentenced to More Than a Year in Prison for Dogfighting | United States Department of Justice

    United States v. Jose Correa

    • No. 1:24-CR-00685 (Southern District of New York)
    • AUSA Alexandra Rothman

    On April 10, 2025, a court sentenced Jose Correa to pay a $10,000 fine and complete a two-year term of probation. Correa pleaded guilty to violating the Clean Air Act for negligently releasing asbestos into the ambient air (42 U.S.C. § 7413(c)(4)).

    Between November and December 2022, Correa removed asbestos-containing floor tiles and mastic from a supermarket in Manhattan without hiring an asbestos abatement contractor. Instead, the material was removed by construction workers who were not provided with protective gear, thereby releasing asbestos into the ambient air and placing the workers in imminent danger of death and serious bodily injury.

    The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

    United States v. Coby Brummett

    • No. 1:24-PO-00040 (Western District of Virginia)
    • AUSA Corey Hall

    On April 11, 2025, a court sentenced Coby Brummett to 30 days’ incarceration with credit for time served. Brummett was also ordered to pay more than $6,200 in restitution for illegally digging and removing ginseng from within the boundaries of Cumberland Gap National Historical Park. Additionally, Brummett is banned from the Park for three years (36 C.F.R. § 2.1(c)(3)).

    An investigation by Park Service rangers determined that Brummett dug up more than 300 ginseng roots from within the confines of the park.

    The restitution will be paid to the National Park Service, which conducted the investigation.

    Related Press Release: Western District of Virginia | Virginia Man Sentenced for Ginseng Poaching at National Park | United States Department of Justice

    United States v. Royce Gillham

    • No. 2:24-CR-14046 (Southern District of Florida)
    • ECS Senior Trial Attorney Adam Cullman
    • AUSA Daniel Funk

    On April 11, 2025, a court ordered Royce Gillham to pay $2,857,029 in restitution to ACT Fuels.

    This is in addition to the court’s sentence of 37 months’ incarceration, followed by three years of supervised release, ordered on March 14, 2025. Gillham, the former general manager of a biofuel producer based in Fort Pierce, Florida, pleaded guilty to conspiring to commit wire fraud and conspiring to make false claims (18 U.S.C.§ 371).

    This biofuel company produced and sold renewable fuel and fuel credits and claimed to turn various feedstocks into biodiesel. When reporting the number of gallons produced to the Internal Revenue Service and the Environmental Protection Agency (EPA), Gillham and his employer vastly overstated their production volume in an effort to generate more credits. When auditors sought more information from the company, Gillham and his co-conspirators gave them false information about their fuel production and customers.

    The scheme generated more than $7 million in fraudulent EPA renewable fuels credits and sought over $6 million in fraudulent tax credits connected to the purported production of biodiesel.

    ACT Fuels purchased the fraudulent fuel credits in question and had to buy replacement credits when authorities found that Gillham’s company produced fraudulent renewable identification numbers or RINs.

    The U.S. Environmental Protection Agency Criminal Investigation Division and the Internal Revenue Service Criminal Investigations conducted the investigation.

    United States v. Mold Wranglers, et al.

    • No. 6:24-CR-00025 (District of Montana)
    • AUSA Ryan Weldon

    On April 14, 2025, a court sentenced Mold Wranglers, Inc., a Kalispell-based hazardous material mitigation company, to pay a $50,000 fine, and complete a two-year term of probation, to include an environmental compliance plan. The company also will pay $348,000 in restitution to the U.S. Department of Veterans Affairs (VA). Mold Wranglers pleaded guilty to a False Claims Act conspiracy for filing false claims with the VA for lead paint abatement work that was never performed (18 U.S.C. § 286).

    Between 2018 and 2019, Mold Wranglers claimed it performed lead abatement work at the Freedom’s Path Fort Harrison facility. The project consisted of converting residential units for low-income veterans and their families. Mold Wranglers submitted documentation to the VA for work including painting over lead-based paint with encapsulating paint. However, the company failed to comply with federal regulations governing lead work, as its employees were not certified to handle lead, and it did not notify the Environmental Protection Agency of the work as required.

    Additionally, Mold Wranglers applied the encapsulating paint in a manner inconsistent with the manufacturer’s specifications.

    The agreement the company made with the VA specified it was not performing an actual abatement but merely “aesthetically repairing the paint and finishing the homes.” Despite this agreement, the company submitted 11 false payment requests, claiming to have performed lead abatement work, and received a total of $456,000 in federal funds for work that did not meet the necessary standards for lead abatement.

    The U.S. Environmental Protection Agency Criminal Investigation Division and Office of Inspector General, The Department of Veterans Affairs, and the Department of Housing and Urban Development conducted the investigation.

    Related Press Release: District of Montana | Helena real estate agent convicted of felony and fined $150,000 for failing to provide lead-based paint disclosures for veterans residing in Fort Harrison rental housing | United States Department of Justice

    United States v. Melanie Ann Carlin

    • No. 6:24-CR-00024 (District of Montana)
    • AUSA Ryan Weldon

    On April 14, 2025, a court sentenced Melanie Ann Carlin to pay a $150,000 fine and complete a three-year term of probation. Carlin pleaded guilty to violating the knowing endangerment provision of the Toxic Substances Control Act for failing to provide required lead-based paint disclosures to veterans residing at Freedom’s Path Fort Harrison in Helena, Montana (15 U.S.C. § 2615(b)(2)(A)). Carlin’s actions led to the exposure of veterans and their families to dangerous levels of lead, a hazardous substance known to cause serious health issues, particularly for children.

    Carlin owns a property management company called 406 Properties, Inc. She was responsible for overseeing rental units at Freedom’s Path, a housing facility with units built prior to 1978. The facility provided affordable homes for veterans and their families. Between September 2019 and September 2021, Carlin knowingly failed to provide mandated lead disclosures. Carlin knew that the property was built before 1978, which meant that the presence of lead paint was likely.

    In 2019, after receiving an email from the Montana Department of Commerce about lead paint concerns, Carlin signed and submitted forms for the units, falsely indicating that they were either free of lead paint or built after 1978. Despite having first-hand knowledge that lead paint was present in the buildings, Carlin continued to neglect her duty to disclose this information to tenants.

    In September 2021, an 18-month-old child living in one of the units ingested lead paint chips.

    Subsequent medical tests revealed the child had dangerously high blood lead levels and required lead poisoning treatment. Carlin admitted to agents that she knew about the lead paint disclosure requirement but failed to give residents the required notice. Carlin’s failure to act placed veterans and their families at imminent risk of serious harm.

    The U.S. Environmental Protection Agency Criminal Investigation Division, The Department of Veterans Affairs Office of Inspector General, and the Department of Housing and Urban Development conducted the investigation.

    Related Press Release: District of Montana | Helena real estate agent convicted of felony and fined $150,000 for failing to provide lead-based paint disclosures for veterans residing in Fort Harrison rental housing | United States Department of Justice

    United States v. Aghorn Operating, Inc., et al.

    On April 15, 2025, Aghorn Operating, Inc., Trent Day, and Kodiak Roustabout, Inc., entered guilty pleas and were sentenced in relation to Worker Safety, Clean Air Act (CAA) and Safe Drinking Water Act (SDWA) violations. Day pleaded guilty to a CAA negligent endangerment charge and was sentenced to serve five months’ incarceration, followed by one year of supervised release (42 U.S.C. § 7413(c)(4)). Aghorn pleaded guilty to CAA negligent endangerment and an Occupational Safety and Health Act (OSHA) willful violation count for the death of an employee, Jacob Dean, and his wife, Natalee Dean (42 U.S.C. § 7413(c)(4); 29 U.S.C. § 666(e)). Aghorn was sentenced to pay a $1 million fine and complete a two-year term of probation. Kodiak pleaded guilty to making a materially false statement (18 U.S.C. §1001) regarding well integrity testing that is required under the SDWA and was sentenced to pay a $400,000 fine and complete a one-year term of probation.

    Aghorn owns and operates oil wells and leases in Texas. Kodiak performed oilfield support and maintenance services for Aghorn. Day was a vice president for both Aghorn and Kodiak. The CAA and OSHA charges stem from the defendants releasing hydrogen sulfide that caused the deaths of Aghorn employee, Jacob Dean, and his wife, Natalee Dean. Both victims were overcome by hydrogen sulfide at Aghorn’s facility in Odessa. Aghorn and Day later obstructed the investigation into the Deans’ deaths. The SDWA-related violation stems from false statements made by Kodiak regarding the mechanical integrity of Aghorn injection wells in forms and pressure charts filed with the State of Texas Railroad Commission. In addition to the fine, Aghorn will guarantee that at least 33 tests conducted for Aghorn wells during its year of probation are witnessed or conducted by a third party.

    The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation, with assistance from the Texas Railroad Commission, Ector County Environmental Enforcement, and the Odessa Fire Department.

    Related Press Release: Office of Public Affairs | Oilfield Company, Its Executive, and a Support Services Company Plead Guilty and Are Sentenced for Worker Safety, Clean Air Act, and Safe Drinking Water Act Violations Resulting in the Death of an Employee and His Spouse | United States Department of Justice

    United States v. Justin Taylor

    • No. 6:24-CR-00013 (Southern District of Georgia)
    • AUSA Darron J. Hubbard

    On April 15, 2025, a court sentenced Justin Taylor to complete a five-year term of probation and pay $279,642 in restitution to the Internal Revenue Service. Taylor pleaded guilty to conspiracy to tamper with a monitoring device and filing a fraudulent tax return (18 U.S.C. § 371; 26 U.S.C. § 7206(1)).

    Between January 2018 and January 2021, Taylor worked as a mechanic. Using a high-powered computer that supported diagnostic tools for heavy-duty logging equipment, Taylor performed emission-control “deletes” for more than 200 owners of diesel engines.

    The changes Taylor made to the emission controls on those machines disabled the electronic monitoring devices and methods required under the Clean Air Act. Taylor routinely charged $2,000 for this service, earning more than $1.2 million during this period while reporting only $166,853 in income.

    The U.S. Environmental Protection Agency Criminal Investigation Division and the Internal Revenue Service Criminal Investigations conducted the investigation.

    United States v. Johnnie Lee Nelson, et al.

    • No. 1:23-CR-00787 (District of New Jersey)
    • ECS Senior Trial Attorney Ethan Eddy
    • AUSA Michelle Goldman

    On April 16, 2025, a court sentenced Johnnie Lee Nelson to complete a two-year term of probation to include one year of home confinement. Nelson also will perform 100 hours of community service. Nelson pleaded guilty to conspiracy to possess, train, and transport dogs for an animal fighting venture and to sponsor and exhibit dogs in an animal fighting venture (18 U.S.C. § 371).

    On March 23, 2019, officers responded to an emergency call at an auto body garage in Upper Deerfield Township, New Jersey. They found a fighting pit in the garage, along with two pit bull-type dogs, still fighting, that had been placed into an inoperable car on a lift in the garage as the participants fled on foot. The dogs later died from injuries they sustained while fighting. Officers also found an uninjured pit bull-type dog in a car just outside the garage, along with a rudimentary veterinary suture and skin staple kit in a bag.

    Evidence revealed that Nelson’s co-defendant, Tommy Watson, organized the fight, and that their dog was scheduled for the next fight on deck. They jointly possessed and trained this dog for this particular fight, as shown by cell phone video evidence. Nelson and Watson participated in a dog fighting operation they called “From Da Bottom Kennels.” From Da Bottom Kennels and others live-streamed dog fight videos from that garage via the Telegram app. Watson is scheduled for trial to begin on June 4, 2025.

    The U.S. Department of Agriculture Office of Inspector General, the Federal Bureau of Investigation, and Homeland Security Investigations conducted the investigation.

    United States v. Sarmad Ghaled Dafer, et al.

    • Nos. 3:24-CR-00615, 23-CR-01879 (Southern District of California)
    • AUSA Sabrina L. Feve
    • AUSA Robert Miller
    • Former AUSA Melanie Pierson

    On April 18, 2025, a court sentenced Sarmad Ghaled Dafer to four months’ incarceration, followed by three years’ supervised release, to include 180 days of home confinement. Dafer also will pay $23,502 in restitution to the U.S. Fish and Wildlife Service to reimburse costs for quarantining three Mexican spider monkeys at the San Diego Zoo. Dafer is jointly and severally responsible along with co-defendant Sarkon Yonan Hanna for the restitution.

    On August 14, 2023, Customs and Border Protection (CBP) officers stopped a man and woman attempting to drive a van into the United States from Mexico. During an initial inspection, a CBP officer discovered an animal carrier hidden behind the rear seat that contained live monkeys. The CBP officer referred the occupants and vehicle for a secondary examination. Officers found three baby spider monkeys hidden in the van. The officers seized the monkeys and placed them in quarantine.

    A search of the co-conspirator’s phone led to evidence that Dafer purchased and coordinated the smuggling of monkeys across the border on three occasions, between June 2022 and August 2023.

    Baby Mexican spider monkeys continue to nurse throughout their first year and ordinarily are not fully weaned and independent until they turn two. Most baby Mexican spider monkeys will continue to stay close to their mothers until they are approximately four years old.

    Dafer’s Facebook messages and photos show that he intentionally sought baby monkeys to make the smuggling process easier. He even posted a photo of a baby spider monkey under a heat lamp in a small cage. This suggests that Dafer knew that the baby monkey he was selling had been prematurely separated from its mother.

    Mexican spider monkey mothers will not voluntarily relinquish their young and the entire troop of spider monkeys will try to defend the mother and baby from perceived threats. Consequently, to capture the babies, poachers will typically have to kill or harm the mother and entire troop. In this case, genetic analysis confirmed the three babies each had different mothers.

    Dafer pleaded guilty to conspiracy, and Hanna pleaded guilty to smuggling (18 U.S.C. §§ 371, 545.) Hanna was sentenced on March 14, 2025, to time served, followed by two years’ supervised release, along with the restitution. Hanna was in the car that attempted to smuggle the three monkeys into the United States from Mexico on August 14, 2023.

    Homeland Security Investigations, Customs and Border Protection, and the U.S. Fish and Wildlife Service Office of Law Enforcement conducted the investigation. 

    Case photo of two of the three monkeys rescued by CBP.

    Related Press Release: Southern District of California | Wildlife Trafficker Sentenced for Smuggling Baby Spider Monkeys | United States Department of Justice

    United States v. Antonio Pereira, et al.

    • Nos. 3:24-CR-00824, 3:25-CR-00001 (District of New Jersey)
    • ECS Trial Attorney Christopher Hale
    • AUSA Kelly Lyons

    On April 22, 2025, a court sentenced Antonio Periera to pay a $4,000 fine and complete a two-year term of probation. Periera and co-defendant Darren McClave pleaded guilty to conspiracy to obstruct justice (18 U.S.C. § 371). McClave is scheduled for sentencing on June 30, 2025.

    McClave, a captain of a clam vessel based out of New Jersey, participated in a scheme to illegally harvest and sell excess scallops, violating federal fishing regulations. While clam vessels are allowed to take a limited quantity of scallops as bycatch, McClave routinely exceeded these limits and sold the surplus to Pereira, a seafood dealer. To cover up the overfishing, McClave and Pereira worked together to falsify the Fishing Vessel Trip Reports and Dealer Reports required by the National Oceanic and Atmospheric Administration.

    The National Oceanic and Atmospheric Administration Office of Law Enforcement conducted the investigation.

    United States v. J.H. Baxter & Co., Inc. et al.

    • No. 6:24-CR-00441 (District of Oregon)
    • ECS Trial Attorney Stephen Foster
    • ECS Trial Attorney Rachel M. Roberts
    • AUSA William M. McLaren
    • RCEC Karla G. Perrin
    • ECS Law Clerk Maria Wallace

    On April 22, 2025, a court sentenced J.H. Baxter & Co., Inc., and J.H. Baxter & Co., a California Limited Partnership, collectively, to pay a total of $1.5 million in criminal fines. In addition, both companies were ordered to serve five-year terms of probation. The companies’ president, Georgia Baxter-Krause, was sentenced to 90 days’ incarceration, followed by one year of supervised release.

    The two companies (collectively J.H. Baxter) were responsible for a wood treatment facility in Eugene, Oregon. Both pleaded guilty to charges of illegally treating hazardous waste and knowingly violating the Clean Air Act (CAA) (42 U.S.C. § 6928(d)(2)(A); 42 U.S.C. § 7413(c)(1)). Baxter-Krause pleaded guilty to two counts of making false statements in violation of the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. § 6928 (d)(3)).

    J.H. Baxter used hazardous chemicals to treat and preserve wood at its Eugene facility. The wastewater from the wood preserving processes was hazardous waste. J.H. Baxter operated a wastewater treatment unit to treat and evaporate the waste. For years, however, when the facility accumulated too much water on site, employees transferred this water to a wood treatment retort to “boil it off,” greatly reducing the volume. J.H. Baxter would then remove the waste that remained, label it as hazardous waste, and ship it offsite for disposal.

    J.H. Baxter was never issued a RCRA permit to treat its waste in this manner. The facility was also subject to CAA emissions standards for hazardous air pollutants. However, employees were directed to open all vents on the retorts, allowing discharges to the surrounding air.

    State inspectors requested information about J.H. Baxter’s practice of boiling off hazardous wastewater. On two separate occasions, Baxter-Krause made false statements in response to these requests regarding the dates the practice took place, and which retorts were used. The investigation determined that Baxter-Krause knew J.H. Baxter maintained detailed daily production logs for each retort.

    J.H. Baxter boiled off hazardous process wastewater in its wood treatment retorts on 136 days. Baxter-Krause was also aware that during this time the company used four of its five retorts to boil off wastewater.

    The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation with assistance from the Oregon Department of Environmental Quality and the Oregon State Police. 

    Related Press Release: Environment and Natural Resources Division | United States v. J.H. Baxter & Co., Inc. et al. | United States Department of Justice

    United States v. Dlubak Glass Company

    • No. 3:24-CR-00533 (Northern District of Texas)
    • ECS Trial Attorney Lauren Steele
    • ECS Senior Trial Attorney Gary Donner

    On April 29, 2025, a court sentenced Dlubak Glass Company (DGC) to pay a $100,000 fine and complete a four-year term of probation. The company pleaded guilty to making a false statement regarding the storage of hazardous waste (18 U.S.C. § 1001(a)(2)).

    DGC is in the business of processing and recycling glass products, including CRT (cathode ray tube) glass. CRTs have three components: a panel, a funnel, and a neck. Both the panel and the funnel are made of glass. CRT funnel glass contains significant amounts of lead, while panel glass typically contains lead in much lower quantities. Because of the presence of lead, used CRTs that are transported, stored, or disposed of can be considered a characteristic hazardous waste under the Resource Conservation and Recovery Act.

    DGC operated facilities in several states, including locations in Arizona, Texas, and Oklahoma. Pursuant to a Consent Order, DGC agreed to ship all the CRT glass at its Arizona facility offsite for recycling or disposal as hazardous waste. DGC later shipped approximately 4,000 tons of CRT glass from Yuma, Arizona, to its Texas facility, telling regulators that it would recycle the material by incorporating it into commercial products.

    When Texas Commission of Environmental Quality (TCEQ) inspected DGC’s Texas facility they observed piles of CRT glass onsite. DGC’s plant manager told inspectors that the only CRT glass present at the location was “processed panel glass containing no lead.” Dlubak employees later repeated this assertion in a follow-up meeting with TCEQ. However, further investigation determined that the glass in question was composed of both panel and funnel glass, a fact which DGC was aware of when it made these statements to TCEQ.

    The U.S. Environmental Protection Agency Criminal Investigation Division conducted the investigation.

    United States v. Tribar Technologies, Inc.

    • No. 2:24-CR-20552 (Eastern District of Michigan)
    • ECS Senior Counsel Kris Dighe
    • AUSA Karen Reynolds
    • RCEC Sasha Reyes

    On April 29, 2025, a court sentenced Tribar Technologies, Inc. (Tribar), to pay a $200,000 fine, complete a five-year term of probation and enact an environmental compliance plan. Tribar also will pay $20,000 in restitution to the City of Ann Arbor, Michigan.

    The company pleaded guilty to negligently violating a pretreatment standard under the Clean Water Act (33 U.S.C. §§ 1317(d) and 1319(c)(1)(A)).

    Tribar manufactures automobile parts and presently operates five active plants in southeast Michigan. Plant 5 is a chrome plating facility located in Wixom, Michigan. It uses an electroplating process to apply chrome finishing to plastic automotive parts. Plant 5 generates wastewater that contains chromium compounds, including hexavalent chromium, a known carcinogen.

    On July 23, 2022, Plant 5 accumulated approximately 15,000 gallons of untreated wastewater containing high concentrations of hexavalent chromium. This wastewater had higher levels of pollutants than the wastewater typically generated from Plant 5 operations. During the week beginning July 25, 2022, Plant 5 employees attempted to treat this wastewater in a holding tank to reduce the amount of hexavalent chromium before putting it into the Plant 5 wastewater treatment system. By the end of the week, the wastewater still contained high concentrations of hexavalent chromium.

    On July 29, 2022, an employee discharged approximately 10,000 gallons of insufficiently treated wastewater from the holding tank into the Plant 5 wastewater treatment system. This discharge activated wastewater treatment system alarms, indicating that the wastewater required further treatment before it could be discharged to the Wixom sanitary sewer system. The employee disabled approximately 460 alarms and discharged the wastewater to the Wixom sanitary sewer system, and ultimately to the Wixom publicly owned treatment works, without completing the treatment necessary to remove chromium from the wastewater, as required by Tribar’s Industrial Pretreatment Program Permit.

    The U.S. Environmental Protection Agency Criminal Investigation Division, the Michigan Department of Environment, Great Lakes and Energy, and the Federal Bureau of Investigation conducted the investigation. 

    View All Environmental Crimes Bulletins

    MIL Security OSI –

  • MIL-OSI: CPS Announces First Quarter 2025 Earnings

    Source: GlobeNewswire (MIL-OSI)

    • Revenues of $106.9 million compared to $91.7 million in the prior year period
    • Net income of $4.7 million, or $0.19 per diluted share
    • Total portfolio balance of $3.615 billion, highest in company history
    • New contract purchases of $451.2 million

    LAS VEGAS, NV, May 12, 2025 (GLOBE NEWSWIRE) — Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the “Company”) today announced earnings of $4.7 million, or $0.19 per diluted share, for its first quarter ended March 31, 2025. This compares to a net income of $4.6 million, or $0.19 per diluted share, in the first quarter of 2024.

    Revenues for the first quarter of 2025 were $106.9 million, an increase of $15.2 million, or 16.6%, compared to $91.7 million for the first quarter of 2024.  Total operating expenses for the first quarter of 2025 were $100.1 million compared to $85.2 million for the 2024 period.  Pretax income for the first quarter of 2025 was $6.8 million compared to pretax income of $6.6 million in the first quarter of 2024.

    During the first quarter of 2025, CPS purchased $451.2 million of new contracts compared to $457.8 million during the fourth quarter of 2024, and $346.3 million during the first quarter of 2024. The Company’s receivables totaled $3.615 billion as of March 31, 2025, an increase from $3.491 billion as of December 31, 2024, and an increase from $3.021 billion as of March 31, 2024.

    Annualized net charge-offs for the first quarter of 2025 were 7.54% of the average portfolio as compared to 7.84% for the first quarter of 2024. Delinquencies greater than 30 days (including repossession inventory) were 12.35% of the total portfolio as of March 31, 2025, compared to 12.39% as of March 31, 2024.

    “We started off the year by posting the highest amount in new loan originations for any first quarter in company history,” said Charles E. Bradley, Chief Executive Officer. “This positions us well for the remainder of the year, as we remain focused on driving the company forward.”  

    Conference Call

    CPS announced that it will hold a conference call on May 13, 2025 at 1:00 p.m. ET to discuss its first quarter 2025 operating results. 

    Those wishing to participate can pre-register for the conference call at the following link https://register-conf.media-server.com/register/BIa727447d5fdf49d4b7da9c96f3d668b7. Registered participants will receive an email containing conference call details for dial-in options. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the schedule start time. A replay will be available beginning two hours after conclusion of the call for 12 months via the Company’s website at https://ir.consumerportfolio.com/investor-relations.

    About Consumer Portfolio Services, Inc.

    Consumer Portfolio Services, Inc. is an independent specialty finance company that provides indirect automobile financing to individuals with past credit problems or limited credit histories. We purchase retail installment sales contracts primarily from franchised automobile dealerships secured by late model used vehicles and, to a lesser extent, new vehicles. We fund these contract purchases on a long-term basis primarily through the securitization markets and service the contracts over their lives.

    Forward-looking statements in this news release include the Company’s recorded figures representing allowances for remaining expected lifetime credit losses, its estimates of fair value (most significantly for its receivables accounted for at fair value), its provision for credit losses, its entries offsetting the preceding, and figures derived from any of the preceding. In each case, such figures are forward-looking statements because they are dependent on the Company’s estimates of losses to be incurred in the future. The accuracy of such estimates may be adversely affected by various factors, which include the following: possible increased delinquencies; repossessions and losses on retail installment contracts; incorrect prepayment speed and/or discount rate assumptions; possible unavailability of qualified personnel, which could adversely affect the Company’s ability to service its portfolio; possible increases in the rate of consumer bankruptcy filings, which could adversely affect the Company’s rights to collect payments from its portfolio; other changes in government regulations affecting consumer credit; possible declines in the market price for used vehicles, which could adversely affect the Company’s realization upon repossessed vehicles; and economic conditions in geographic areas in which the Company’s business is concentrated. Any or all of such factors also may affect the Company’s future financial results, as to which there can be no assurance. Any implication that the results of the most recently completed quarter are indicative of future results is disclaimed, and the reader should draw no such inference. Factors such as those identified above in relation to losses to be incurred in the future may affect future performance.

    Investor Relations Contact

    Danny Bharwani, Chief Financial Officer

    949-753-6811

     
    Consumer Portfolio Services, Inc. and Subsidiaries
    Condensed Consolidated Statements of Operations
    (In thousands, except per share data)
    (Unaudited)
           
      Three months ended
      March 31,
        2025       2024  
    Revenues:      
    Interest income $ 101,933     $ 84,288  
    Mark to finance receivables measured at fair value   3,500       5,000  
    Other income   1,441       2,456  
        106,874       91,744  
    Expenses:      
    Employee costs   25,033       24,416  
    General and administrative   13,542       13,753  
    Interest   54,918       41,968  
    Provision for credit losses   (979 )     (1,635 )
    Other expenses   7,558       6,685  
        100,072       85,187  
    Income before income taxes   6,802       6,557  
    Income tax expense   2,108       1,967  
    Net income $ 4,694     $ 4,590  
           
    Earnings per share:      
    Basic $ 0.22     $ 0.22  
    Diluted $ 0.19     $ 0.19  
           
           
    Number of shares used in computing earnings per share:      
    Basic   21,444       21,143  
    Diluted   24,325       24,602  
                   
    Condensed Consolidated Balance Sheets
    (In thousands)
    (Unaudited)
           
           
      March 31,   December 31,
        2025       2024  
    Assets:      
    Cash and cash equivalents $ 29,841     $ 11,713  
    Restricted cash and equivalents   153,637       125,684  
    Finance receivables measured at fair value   3,449,106       3,313,767  
           
    Finance receivables   3,109       5,420  
    Allowance for finance credit losses   (249 )     (433 )
    Finance receivables, net   2,860       4,987  
           
           
    Deferred tax assets, net   826       1,010  
    Other assets   37,336       36,707  
      $ 3,673,606     $ 3,493,868  
           
    Liabilities and Shareholders’ Equity:      
    Accounts payable and accrued expenses $ 75,289     $ 70,151  
    Warehouse lines of credit   365,683       410,898  
    Residual interest financing   163,391       99,176  
    Securitization trust debt   2,743,269       2,594,384  
    Subordinated renewable notes   27,547       26,489  
        3,375,179       3,201,098  
           
    Shareholders’ equity   298,427       292,770  
      $ 3,673,606     $ 3,493,868  
                   
    Operating and Performance Data ($ in millions)        
         
        At and for the
        Three months ended
        March 31,
          2025       2024  
             
    Contracts purchased   $ 451.22     $ 346.30  
    Contracts securitized   $ 462.54     $ 300.61  
             
    Total portfolio balance (1)   $ 3,614.55     $ 3,021.19  
    Average portfolio balance (1)   $ 3,572.64     $ 2,993.82  
             
             
    Delinquencies (1)        
    31+ Days     9.75 %     9.98 %
    Repossession Inventory     2.60 %     2.41 %
    Total Delinquencies and Repo. Inventory     12.35 %     12.39 %
             
    Annualized Net Charge-offs as % of Average Portfolio (1)     7.54 %     7.84 %
             
    Recovery rates (1), (2)     27.7 %     33.3 %
                     
      For the
      Three months ended
      March 31,
      2025   2024
      $ (3)   % (4)   $ (3)   % (4)
    Interest income $ 101.93     11.4 %   $ 84.29     11.3 %
    Mark to finance receivables measured at fair value   3.50     0.4 %     5.00     0.7 %
    Other income   1.44     0.2 %     2.46     0.3 %
    Interest expense   (54.92 )   -6.1 %     (41.97 )   -5.6 %
    Net interest margin   51.96     5.8 %     49.78     6.7 %
    Provision for credit losses   0.98     0.1 %     1.64     0.2 %
    Risk adjusted margin   52.94     5.9 %     51.41     6.9 %
    Other operating expenses (5)   (46.13 )   -5.2 %     (44.85 )   -6.0 %
    Pre-tax income $ 6.80     0.8 %   $ 6.56     0.9 %
                               
    (1)  Excludes third party portfolios.
    (2)  Wholesale auction liquidation amounts (net of expenses) as a percentage of the account balance at the time of sale.
    (3)  Numbers may not add due to rounding.
    (4)  Annualized percentage of the average portfolio balance.  Percentages may not add due to rounding.  
    (5)  Total pre-tax expenses less provision for credit losses and interest expense.
                               

    The MIL Network –

  • MIL-OSI: HighPeak Energy, Inc. Announces First Quarter 2025 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    FORT WORTH, Texas, May 12, 2025 (GLOBE NEWSWIRE) — HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter ended March 31, 2025, provided an updated 2025 development outlook and increased production guidance.

    First Quarter 2025 Highlights

    • Sales volumes averaged approximately 53.1 thousand barrels of crude oil equivalent per day (“MBoe/d”), representing a 6% increase from the fourth quarter 2024.
    • Net income was $36.3 million, or $0.26 per diluted share and EBITDAX (a non-GAAP financial measure defined and reconciled below) was $197.3 million, or $1.40 per diluted share. First quarter 2025 adjusted net income (a non-GAAP financial measure defined and reconciled below) was $42.7 million, or $0.31 per diluted share.
    • Lease operating expenses averaged $6.61 per Boe, excluding workover expenses, representing a 3% decrease compared to the fourth quarter 2024.
    • Generated free cash flow (a non-GAAP financial measure defined and reconciled below) of $10.7 million, reduced long-term debt by $30 million and paid $0.04 per share in dividends.
    • Realized increased drilling and completion efficiency gains, which translated to drilling and completing four additional wells during the first quarter.

    Recent Events

    • Narrowed 2025 production guidance range and increased the midpoint.
    • On May 12, 2025, the Company’s Board of Directors declared a quarterly dividend of $0.04 per common share outstanding payable in June 2025.

    Statement from Jack Hightower, Chairman and CEO:

    In March, we discussed our four pillars of success for 2025 which include: 1) improving corporate efficiency, 2) maintaining capital discipline, 3) optimizing our capital structure, and 4) delivering shareholder value. I would like to take this opportunity to update our shareholders on where we stand and the progress we have made to date.

    Improving Corporate Efficiency
    HighPeak delivered another strong quarter of results, beating production guidance and consensus estimates, while also realizing higher levels of operating efficiencies in our development program. We drilled over 25% faster than our previous expectations, which translated to drilling and completing four additional wells during the first quarter. We are running smoother and more efficiently than ever before, while continuing to keep development costs in line with internal expectations.

    Maintaining Capital Discipline
    Due to the global economic uncertainty and its impact on oil prices, we have moderated our development program by laying down one rig for four months, May through August. Despite the pause, we remain on track to drill and complete the same number of wells in our 2025 guidance because of the gains made through operational efficiencies.

    As detailed on our March conference call, the majority of our 2025 infrastructure capex was first-quarter weighted. Factoring in drilling and completing four additional wells, we accomplished an outsized portion of our planned annual development activity during the first quarter. Going forward, we expect our quarterly capital expenditures to be materially lower and the total for the year to fall within our 2025 guided capex range. Although our operations are running much more efficiently, this is not the proper time to accelerate development activity from our original plan. Additionally, we have complete flexibility from a land and operations perspective to reduce the budget and leave a rig down for longer than the current plan if conditions warrant.

    Optimizing our Capital Structure
    We remain committed to optimizing our capital structure and remain poised to execute our plan once the market has stabilized. We are in a healthy financial position with no near-term debt maturities and are taking proactive steps to keep our balance sheet strong as we navigate this turbulent market.

    Shareholder Value
    Given the current global macro-economic backdrop, this is a time to remain nimble and prudent, which our high-quality asset base allows. As large owners of the Company, management is fully aligned with shareholders and has a long-term outlook on value creation. While markets may be volatile, it is important to remember the fundamental value of our asset base is still strong.

    First Quarter 2025 Operational Update

    HighPeak’s sales volumes during the first quarter of 2025 averaged 53.1 MBoe/d, a six percent increase over the fourth quarter 2024. First quarter sales volumes consisted of approximately 72% crude oil and 86% liquids.

    The Company averaged two drilling rigs and one frac crew during the first quarter, drilled 16 gross (16.0 net) horizontal wells and turned-in-line 13 gross (12.9 net) producing wells. On March 31, 2025, the Company had 28 gross (28.0 net) horizontal wells in various stages of drilling and completion.

    The Company updated its 2025 production guidance range to 48,000 – 50,500 Boe/d.

    HighPeak President, Michael Hollis, commented, “Our strong first quarter production is allowing us to narrow our guided range and increase the midpoint. This speaks to our strong well performance and the high quality of our long lived oily inventory. As seen in the last few commodity price cycles, HighPeak is realizing deflationary cost pressures on both the capex and opex fronts. With our increased operational efficiency, we are doing more with less and at a lower overall cost.”

    First Quarter 2025 Financial Results

    HighPeak reported net income of $36.3 million for the first quarter of 2025, or $0.26 per diluted share, and EBITDAX of $197.3 million, or $1.40 per diluted share. HighPeak reported adjusted net income of $42.7 million for the first quarter of 2025, or $0.31 per diluted share.

    First quarter average realized prices were $71.64 per Bbl of crude oil, $24.21 per Bbl of NGL and $2.34 per Mcf of natural gas, resulting in an overall realized price of $53.84 per Boe, or 75% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives. HighPeak’s cash costs for the first quarter were $11.94 per Boe, including lease operating expenses of $6.61 per Boe, workover expenses of $0.83 per Boe, production and ad valorem taxes of $3.17 per Boe and G&A expenses of $1.33 per Boe. As a result, the Company’s unhedged EBITDAX per Boe was $41.90 per Boe, or 78% of the overall realized price per Boe for the quarter, excluding the effects of derivatives.

    HighPeak’s first quarter 2025 capital expenditures to drill, complete, equip, provide facilities and for infrastructure were $179.8 million.

    Hedging

    Crude oil. As of March 31, 2025, HighPeak had the following outstanding crude oil derivative instruments and the weighted average crude oil prices and premiums payable per Bbl:

                          Swaps     Collars, Enhanced Collars
    & Deferred
    Premium Puts    		  
    Settlement
    Month    		   Settlement
    Year    		   Type of
    Contract    		   Bbls
    Per
    Day    		   Index   Price per
    Bbl    		     Floor or
    Strike
    Price per
    Bbl    		     Ceiling
    Price per
    Bbl    		     Deferred
    Premium
    Payable
    per Bbl    		  
    Crude Oil:                                                  
    Apr – Jun   2025   Swap     5,500   WTI Cushing   $ 76.37     $ —     $ —     $ —  
    Apr – Jun   2025   Collar     7,989   WTI Cushing   $ —     $ 64.38     $ 88.55     $ 2.00  
    Apr – Jun   2025   Put     9,000   WTI Cushing   $ —     $ 65.78     $ —     $ 5.00  
    Jul – Sep   2025   Swap     3,000   WTI Cushing   $ 75.85     $ —     $ —     $ —  
    Jul – Sep   2025   Collar     7,000   WTI Cushing   $ —     $ 65.00     $ 90.08     $ 2.28  
    Jul – Sep   2025   Put     9,000   WTI Cushing   $ —     $ 65.78     $ —     $ 5.00  
    Oct – Dec   2025   Collar     5,000   WTI Cushing   $ —     $ 60.00     $ 72.80     $ —  
    Jan – Mar   2026   Collar     5,000   WTI Cushing   $ —     $ 60.00     $ 72.80     $ —  
     

    The Company’s crude oil derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for West Texas Intermediate pricing.

    Natural gas. As of March 31, 2025, the Company had the following outstanding natural gas derivative instruments and the weighted average natural gas prices payable per MMBtu.

    Settlement Month   Settlement
    Year    		   Type of
    Contract    		   MMBtu
    Per Day    		   Index   Price per
    MMBtu    		  
    Natural Gas:                          
    Apr – Jun   2025   Swap     30,000   HH   $ 4.43  
    Jul – Sep   2025   Swap     30,000   HH   $ 4.43  
    Oct – Dec   2025   Swap     30,000   HH   $ 4.43  
    Jan – Mar   2026   Swap     19,667   HH   $ 4.43  
     

    HighPeak added the following natural gas swaps in April 2025.

    Settlement Month   Settlement
    Year    		   Type of
    Contract    		   MMBtu
    Per Day    		   Index   Price per
    MMBtu    		  
    Natural Gas:                          
    Jan – Mar   2026   Swap     10,333   HH   $ 4.30  
    Apr – Jun   2026   Swap     30,000   HH   $ 4.30  
    Jul – Sep   2026   Swap     30,000   HH   $ 4.30  
    Oct – Dec   2026   Swap     30,000   HH   $ 4.30  
    Jan – Mar   2027   Swap     19,667   HH   $ 4.30  
     

    Dividends

    During the first quarter of 2025, HighPeak’s Board of Directors approved a quarterly dividend of $0.04 per share, or $5.0 million in dividends paid to stockholders during the quarter. In addition, in May 2025, the Company’s Board of Directors declared a quarterly dividend of $0.04 per share, or approximately $5.0 million in dividends, to be paid on June 25, 2025, to stockholders of record on June 2, 2025. 

    Conference Call

    HighPeak will host a conference call and webcast on Tuesday, May 13, 2025, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the first quarter of 2025. Conference call participants may register for the call here. Access to the live audio-only webcast and replay of the earnings release conference call may be found here. A live broadcast of the earnings conference call will also be available on the HighPeak Energy website at www.highpeakenergy.com under the “Investors” section of the website. A replay will also be available on the website following the call.

    When available, a copy of the Company’s earnings release, investor presentation and Quarterly Report on Form 10-Q may be found on its website at www.highpeakenergy.com.

    About HighPeak Energy, Inc.

    HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com.

    Cautionary Note Regarding Forward-Looking Statements

    The information in this press release contains forward-looking statements that involve risks and uncertainties. When used in this document, the words “believes,” “plans,” “expects,” “anticipates,” “forecasts,” “intends,” “continue,” “may,” “will,” “could,” “should,” “future,” “potential,” “estimate” or the negative of such terms and similar expressions as they relate to HighPeak Energy, Inc. (“HighPeak Energy” or the “Company”) are intended to identify forward-looking statements, which are generally not historical in nature. The forward-looking statements are based on the Company’s current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond the Company’s control. For example, the Company’s review of strategic alternatives may not result in a sale of the Company, a recommendation that a transaction occur or result in a completed transaction, and any transaction that occurs may not increase shareholder value, in each case as a result of such risks and uncertainties.

    These risks and uncertainties include, among other things, the results of the strategic review being undertaken by the Company’s Board and the interest of prospective counterparties, the Company’s ability to realize the results contemplated by its 2025 guidance, volatility of commodity prices, political instability or armed conflicts in crude or natural gas producing regions such as the ongoing war between Russia and Ukraine or Israel and Hamas, product supply and demand, the impact of a widespread outbreak of an illness, such as the coronavirus disease pandemic, on global and U.S. economic activity, competition, OPEC+ policy decisions, potential new trade policies, such as tariffs, could adversely affect the Company’s operations, business and profitability, inflationary pressures on costs of oilfield goods, services and personnel, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company’s drilling and operating activities, access to and availability of transportation, processing, fractionation, refining and storage facilities, HighPeak Energy’s ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to any credit facility and derivative contracts entered into by HighPeak Energy, if any, and purchasers of HighPeak Energy’s oil, natural gas liquids and natural gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future, the assumptions underlying forecasts, including forecasts of production, expenses, cash flow from sales of oil and gas and tax rates, quality of technical data, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks and acts of war or terrorism. These and other risks are described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and other filings with the SEC. The Company undertakes no duty to publicly update these statements except as required by law.

    Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. Reserves estimates included herein may not be indicative of the level of reserves or PV-10 value of oil and natural gas production in the future. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact HighPeak’s strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

    Use of Projections

    The financial, operational, industry and market projections, estimates and targets in this press release and in the Company’s guidance (including production, operating expenses and capital expenditures in future periods) are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial, operational, industry and market projections, estimates and targets, including assumptions, risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above. These projections are speculative by their nature and, accordingly, are subject to significant risk of not being actually realized by the Company. Projected results of the Company for 2025 are particularly speculative and subject to change. Actual results may vary materially from the current projections, including for reasons beyond the Company’s control. The projections are based on current expectations and available information as of the date of this release. The Company undertakes no duty to publicly update these projections except as required by law.

    Drilling Locations

    The Company has estimated its drilling locations based on well spacing assumptions and upon the evaluation of its drilling results and those of other operators in its area, combined with its interpretation of available geologic and engineering data. The drilling locations actually drilled on the Company’s properties will depend on the availability of capital, regulatory approvals, commodity prices, costs, actual drilling results and other factors. Any drilling activities conducted on these identified locations may not be successful and may not result in additional proved reserves. Further, to the extent the drilling locations are associated with acreage that expires, the Company would lose its right to develop the related locations.

    HighPeak Energy, Inc.
    Unaudited Condensed Consolidated Balance Sheet Data
    (In thousands)
        March 31,
    2025    		   December 31,
    2024    		  
    Current assets:              
    Cash and cash equivalents   $ 51,619     $ 86,649    
    Accounts receivable     78,356       85,242    
    Inventory     8,706       10,952    
    Prepaid expenses     8,301       4,587    
    Derivative instruments     5,620       7,582    
    Total current assets     152,602       195,012    
    Crude oil and natural gas properties, using the successful efforts method of accounting:              
    Proved properties     4,140,881       3,959,545    
    Unproved properties     71,359       70,868    
    Accumulated depletion, depreciation and amortization     (1,293,949 )     (1,184,684 )  
    Total crude oil and natural gas properties, net     2,918,291       2,845,729    
    Other property and equipment, net     3,141       3,201    
    Other noncurrent assets     19,047       19,346    
    Total assets   $ 3,093,081     $ 3,063,288    
                   
    Current liabilities:              
    Current portion of long-term debt, net   $ 120,000     $ 120,000    
    Accounts payable – trade     66,473       74,011    
    Accrued capital expenditures     53,240       35,170    
    Revenues and royalties payable     27,993       26,838    
    Other accrued liabilities     22,065       22,196    
    Derivative instruments     8,275       5,380    
    Operating leases     821       719    
    Advances from joint interest owners     —       316    
    Total current liabilities     298,867       284,630    
    Noncurrent liabilities:              
    Long-term debt, net     902,844       928,384    
    Deferred income taxes     242,337       232,398    
    Asset retirement obligations     15,058       14,750    
    Operating leases     581       670    
    Commitments and contingencies              
                   
    Stockholders’ equity              
    Common stock     13       13    
    Additional paid-in capital     1,166,786       1,166,609    
    Retained earnings     466,595       435,834    
    Total stockholders’ equity     1,633,394       1,602,456    
    Total liabilities and stockholders’ equity   $ 3,093,081     $ 3,063,288    
     
    HighPeak Energy, Inc.
    Unaudited Condensed Consolidated Statements of Operations
    (in thousands)
        Quarter Ended March 31,
    		  
        2025   2024
    		  
    Operating revenues:            
    Crude oil sales   $ 246,424     $ 282,369    
    NGL and natural gas sales     11,024       5,395    
    Total operating revenues     257,448       287,764    
    Operating costs and expenses:            
    Crude oil and natural gas production     35,562       30,271    
    Production and ad valorem taxes     15,152       14,402    
    Exploration and abandonments     264       498    
    Depletion, depreciation and amortization     109,325       130,850    
    Accretion of discount     244       239    
    General and administrative     6,345       4,685    
    Stock-based compensation     177       3,798    
    Total operating costs and expenses     167,069       184,743    
    Other expense     —       1    
    Income from operations     90,379       103,020    
    Interest income     810       2,392    
    Interest expense     (36,988 )     (43,634 )  
    Loss on derivative instruments, net     (7,927 )     (53,043 )  
    Income before income taxes     46,274       8,735    
    Provision for income taxes     9,939       2,297    
    Net income   $ 36,335     $ 6,438    
                 
    Earnings per share:            
    Basic net income   $ 0.26     $ 0.05    
    Diluted net income   $ 0.26     $ 0.05    
                 
    Weighted average shares outstanding:            
    Basic     123,913       125,696    
    Diluted     127,213       129,641    
                 
    Dividends declared per share   $ 0.04     $ 0.04    
     
    HighPeak Energy, Inc.
    Unaudited Condensed Consolidated Statements of Cash Flows
    (in thousands)
        Quarter Ended March 31,
    		  
        2025
    		   2024
    		  
    CASH FLOWS FROM OPERATING ACTIVITIES:            
    Net income   $ 36,335     $ 6,438    
    Adjustments to reconcile net income to net cash provided by operations:            
    Provision for deferred income taxes     9,939       1,688    
    Loss on derivative instruments     7,927       53,043    
    Cash paid on settlement of derivative instruments     (3,071 )     (5,148 )  
    Amortization of debt issuance costs     2,034       2,053    
    Amortization of discounts on long-term debt     2,426       2,453    
    Stock-based compensation expense     177       3,798    
    Accretion expense     244       239    
    Depletion, depreciation and amortization     109,325       130,850    
    Exploration and abandonment expense     4       274    
    Changes in operating assets and liabilities:            
    Accounts receivable     6,886       (14,414 )  
    Prepaid expenses, inventory and other assets     (1,314 )     (4,722 )  
    Accounts payable, accrued liabilities and other current liabilities     (13,860 )     (5,113 )  
    Net cash provided by operating activities     157,052       171,439    
    CASH FLOWS FROM INVESTING ACTIVITIES:            
    Additions to crude oil and natural gas properties     (179,819 )     (147,698 )  
    Changes in working capital associated with crude oil and natural gas property additions     25,172       1,705    
    Acquisitions of crude oil and natural gas properties     (2,517 )     (2,171 )  
    Proceeds from sales of properties     570       —    
    Other property additions     —       (59 )  
    Net cash used in investing activities     (156,594 )     (148,223 )  
    CASH FLOWS FROM FINANCING ACTIVITIES:            
    Repayments under Term Loan Credit Agreement     (120,000 )     (30,000 )  
    Dividends paid     (4,957 )     (5,050 )  
    Dividend equivalents paid     (531 )     (530 )  
    Repurchased shares under buyback program     —       (8,764 )  
    Debt issuance costs     —       (7 )  
    Net cash used in financing activities     (35,488 )     (44,351 )  
    Net decrease in cash and cash equivalents     (35,030 )     (21,135 )  
    Cash and cash equivalents, beginning of period     86,649       194,515    
    Cash and cash equivalents, end of period   $ 51,619     $ 173,380    
     
    HighPeak Energy, Inc.
    Unaudited Summary Operating Highlights
        Quarter Ended March 31,  
        2025   2024  
    Average Daily Sales Volumes:              
    Crude oil (Bbls)     38,222       39,959    
    NGLs (Bbls)     7,724       5,147    
    Natural gas (Mcf)     43,096       27,733    
    Total (Boe)     53,128       49,729    
                   
    Average Realized Prices (excluding effects of derivatives):              
    Crude oil per Bbl   $ 71.64     $ 77.65    
    NGL per Bbl   $ 24.21     $ 24.94    
    Natural gas per Mcf   $ 2.34     $ 1.33    
    Total per Boe   $ 53.84     $ 63.59    
                   
    Margin Data ($ per Boe):              
    Average price, excluding effects of derivatives   $ 53.84     $ 63.59    
    Lease operating expenses     (6.61 )     (6.30 )  
    Expense workovers     (0.83 )     (0.39 )  
    Production and ad valorem taxes     (3.17 )     (3.18 )  
    General and administrative expenses     (1.33 )     (1.04 )  
        $ 41.90     $ 52.68    
     
    HighPeak Energy, Inc.
    Unaudited Earnings Per Share Details
        Quarter Ended March 31,  
        2025   2024  
    Net income as reported   $ 36,335     $ 6,438    
    Participating basic earnings     (3,542 )     (605 )  
    Basic earnings attributable to common shareholders     32,793       5,833    
    Reallocation of participating earnings     47       1    
    Diluted net income attributable to common shareholders   $ 32,840     $ 5,834    
                   
    Basic weighted average shares outstanding     123,913       125,696    
    Dilutive warrants and unvested stock options     1,146       1,786    
    Dilutive unvested restricted stock     2,154       2,159    
    Diluted weighted average shares outstanding     127,213       129,641    
                   
    Net income per share attributable to common shareholders:              
    Basic   $ 0.26     $ 0.05    
    Diluted   $ 0.26     $ 0.05    
     
    HighPeak Energy, Inc.
    Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations
    (in thousands)    		  
        Quarter Ended March 31,  
        2025   2024  
    Net income   $ 36,335     $ 6,438    
    Interest expense     36,988       43,634    
    Interest income     (810 )     (2,392 )  
    Income tax expense     9,939       2,297    
    Depletion, depreciation and amortization     109,325       130,850    
    Accretion of discount     244       239    
    Exploration and abandonment expense     264       498    
    Stock based compensation     177       3,798    
    Derivative related noncash activity     4,856       47,895    
    Other expense     —       1    
    EBITDAX     197,318       233,258    
    Cash interest expense     (32,528 )     (39,128 )  
    Other (a)     550       1,558    
    Discretionary cash flow     165,340       195,688    
    Changes in operating assets and liabilities     (8,288 )     (24,249 )  
    Net cash provided by operating activities   $ 157,052     $ 171,439    
    (a)     Includes interest income net of current tax expense, other expense and operating portion of exploration and abandonment expenses.
     
    HighPeak Energy, Inc.
    Unaudited Reconciliation of Net Cash Provided by Operations and Free Cash Flow
    (in thousands)
        Quarter Ended March 31,  
        2025   2024  
    Net cash provided by operating activities   $ 157,052     $ 171,439    
    Add back: net change in operating assets and liabilities     8,288       24,249    
    Operating cash flow before working capital changes     165,340       195,688    
    Additions to crude oil and natural gas properties     (179,819 )     (147,698 )  
    Changes in working capital associated with crude oil and natural gas property additions     25,172       1,705    
    Free cash flow   $ 10,693     $ 49,695    
     
    HighPeak Energy, Inc.
    Unaudited Reconciliation of Net Income to Adjusted Net Income
    (in thousands, except per share data)
        Quarter Ended
    March 31, 2025    		  
        Amounts   Amounts per Diluted Share  
    Net income   $ 36,335     $ 0.26    
    Derivative loss, net     7,927       0.06    
    Stock-based compensation     177       0.00    
    Income tax adjustment for above items *     (1,741 )     (0.01 )  
                       
    Adjusted net income   $ 42,698     $ 0.31    
                   
    * Assuming 21% statutory tax rate              
     

    Investor Contact:

    Ryan Hightower
    Vice President, Business Development
    817.850.9204
    rhightower@highpeakenergy.com

    Source: HighPeak Energy, Inc.

    The MIL Network –

  • MIL-OSI: MidCap Financial Investment Corporation Reports Financial Results for the Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    Results for the Quarter Ended March 31, 2025 and Other Recent Highlights:

    • Net investment income per share for the quarter was $0.37
    • Net asset value per share as of the end of the quarter was $14.93, compared to $14.98 as of December 31, 2024, a decrease of 0.3%
    • New investment commitments made during the quarter totaled $376 million(1)
    • Gross fundings, excluding revolver fundings(2), totaled $357 million for the quarter
    • Net fundings, including revolvers(2), totaled $170 million for the quarter
    • Net leverage(3)was 1.31x as of March 31, 2025
    • Repurchased 476,656 shares of common stock at a weighted average price per share of $12.75, inclusive of commissions, for an aggregate cost of $6.1 million during the quarter
    • Completed Collateralized Loan Obligation (“CLO”) transaction, MFIC Bethesda CLO 2 LLC, a $529.6 million CLO secured by middle market loans in February 2025
    • On May 7, 2025, the Board of Directors (the “Board”) declared a dividend of $0.38 per share payable on June 26, 2025 to stockholders of record as of June 10, 2025(4)

    NEW YORK, May 12, 2025 (GLOBE NEWSWIRE) — MidCap Financial Investment Corporation (NASDAQ: MFIC) or the “Company,” today announced financial results for the quarter ended March 31, 2025. The Company’s net investment income was $0.37 per share for the quarter ended March 31, 2025, compared to $0.40 per share for the quarter ended December 31, 2024. The Company’s net asset value (“NAV”) was $14.93 per share as of March 31, 2025, compared to $14.98 as of December 31, 2024.

    On May 7, 2025, the Board declared a dividend of $0.38 per share payable on June 26, 2025 to stockholders of record as of June 10, 2025.

    Mr. Tanner Powell, the Company’s Chief Executive Officer, stated, “We reported solid first quarter results including a healthy level of earnings, a reduction in non-accruals, and strong portfolio growth. We continued to deploy the investment capacity generated from our recent mergers into assets originated by MidCap Financial, although this was partially offset by ongoing sales and repayments of non-directly originated assets acquired through the mergers. Additionally, we repurchased some stock below NAV during the quarter.” Mr. Powell continued, “Looking ahead, despite the uncertainty surrounding the duration and trajectory of current market volatility, we believe the current environment may present opportunities that MidCap Financial and MFIC are well-equipped to capitalize on.”

    ___________________
    (1) Commitments made for the direct origination portfolio.
    (2) During the quarter ended March 31, 2025, direct origination revolver fundings totaled $33 million, direct origination revolver repayments totaled $30 million.
    (3) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
    (4) There can be no assurances that the Board will continue to declare a base dividend of $0.38 per share.

    FINANCIAL HIGHLIGHTS

    ($ in billions, except per share data) March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
    Total assets $ 3.36     $ 3.19     $ 3.22     $ 2.55     $ 2.45  
    Investment portfolio (fair value) $ 3.19     $ 3.01     $ 3.03     $ 2.44     $ 2.35  
    Debt outstanding $ 1.94     $ 1.75     $ 1.77     $ 1.51     $ 1.41  
    Net assets $ 1.39     $ 1.40     $ 1.42     $ 1.00     $ 1.01  
    Net asset value per share $ 14.93     $ 14.98     $ 15.10     $ 15.38     $ 15.42  
                                           
    Debt-to-equity ratio   1.39 x       1.25 x       1.25 x       1.51 x       1.40 x  
    Net leverage ratio (1)   1.31 x       1.16 x       1.16 x       1.45 x       1.35 x  

    ___________________
    (1) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.

    PORTFOLIO AND INVESTMENT ACTIVITY

        Three Months Ended March 31,  
    (in millions)*   2025     2024  
    Investments made in portfolio companies   $ 391.9     $ 152.8  
    Investments sold     (43.9 )      —  
    Net activity before repaid investments     348.0       152.8  
    Investments repaid     177.6       (136.9 )
    Net investment activity   $ 170.4     $ 15.9  
                     
    Portfolio companies, at beginning of period     233       152  
    Number of investments in new portfolio companies     20       7  
    Number of exited companies     (13 )     (5 )
    Portfolio companies at end of period     240       154  
                     
    Number of investments in existing portfolio companies     78       49  

    ___________________
    * Totals may not foot due to rounding.

    OPERATING RESULTS

        Three Months Ended March 31,  
    (in millions)*   2025     2024  
    Net investment income   $ 34.3     $ 28.5  
    Net realized and change in unrealized gains (losses)     (4.0 )     (3.1 )
    Net increase in net assets resulting from operations   $ 30.3     $ 25.5  
                     
    (per share)* (1)                
    Net investment income on per average share basis   $ 0.37     $ 0.44  
    Net realized and change in unrealized gain (loss) per share     (0.05 )     (0.05 )
    Earnings per share — basic   $ 0.32     $ 0.39  

    ___________________
    * Totals may not foot due to rounding.

    (1) Based on the weighted average number of shares outstanding for the period presented.

    SHARE REPURCHASE PROGRAM *

    During the three months ended March 31, 2025, the Company repurchased 476,656 shares at a weighted average price per share of $12.75, inclusive of commissions, for a total cost of $6.1 million. This represents a discount of approximately 14.72% of the average net asset value per share for the three months ended March 31, 2025.

    Since the inception of the share repurchase program and through May 12, 2025, the Company repurchased 16,069,776 shares at a weighted average price per share of $15.82, inclusive of commissions, for a total cost of $254.2 million, leaving a maximum of $20.8 million available for future purchases under the current Board authorization of $275 million.

    * Share figures have been adjusted for the 1-for-3 reverse stock split which was completed after market close on November 30, 2018.

    LIQUIDITY

    As of March 31, 2025, the Company’s outstanding debt obligations, excluding deferred financing cost and debt discount of $6.7 million, totaled $1.942 billion which was comprised of $125 million of Senior Unsecured Notes (the “2026 Notes”) which will mature on July 16, 2026, $80 million of Senior Unsecured Notes (the “2028 Notes”) which will mature on December 15, 2028, $232 million outstanding Class A-1 Notes in MFIC Bethesda CLO 1 LLC, $399 million outstanding secured debt in MFIC Bethesda CLO 2 LLC, and $1,106 million outstanding under the Company’s multi-currency revolving credit facility (the “Facility”). As of March 31, 2025, $6 million in standby letters of credit were issued through the Facility. The available remaining capacity under the Facility was $548 million as of March 31, 2025, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio.

    CONFERENCE CALL / WEBCAST AT 8:30 AM EDT ON MAY 13, 2025

    The Company will host a conference call on Tuesday, May 13, 2025, at 8:30 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (800) 225-9448 approximately 5-10 minutes prior to the call; international callers should dial (203) 518-9708. Participants should reference either MidCap Financial Investment Corporation Earnings or Conference ID: MFIC0513 when prompted. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Shareholders section of the Company’s website under Events at www.midcapfinancialic.com. Following the call, you may access a replay of the event either telephonically or via audio webcast. The telephonic replay will be available approximately two hours after the live call and through June 3, 2025, by dialing (800) 727-1367; international callers should dial (402) 220-2669. A replay of the audio webcast will also be available later that same day. To access the audio webcast please visit the Shareholders section of the Company’s website under Events in the Shareholders section of our website at www.midcapfinancialic.com.

    SUPPLEMENTAL INFORMATION

    The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the Shareholders section of the Company’s website under Presentations at www.midcapfinancialic.com.

    Our portfolio composition and weighted average yields as of March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024 were as follows:

      March 31,
    2025    		     December 31,
    2024    		 September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Portfolio composition, at fair value:                            
    First lien secured debt   93%     92%     91%     90%     90%
    Second lien secured debt   0%     1%     1%     1%     1%
    Total secured debt   93%     93%     92%     91%     91%
    Unsecured debt   0%     0%     —%     —%     —%
    Structured products and other   1%     1%     2%     1%     1%
    Preferred equity   1%     1%     1%     1%     1%
    Common equity/interests and warrants   5%     5%     5%     7%     7%
    Weighted average yields, at amortized cost (1):                            
    First lien secured debt (2)   10.5%     10.8%     11.1%     11.9%     12.0%
    Second lien secured debt (2)   13.8%     14.4%     14.0%     14.1%     14.1%
    Total secured debt (2)   10.5%     10.8%     11.1%     11.9%     12.0%
    Unsecured debt portfolio (2)   9.5%     9.5%     9.5%     —%     —%
    Total debt portfolio (2)   10.5%     10.8%     11.1%     11.9%     12.0%
    Total portfolio (3)   9.4%     9.5%     9.6%     9.9%     10.0%
    Interest rate type, at fair value (4):                            
    Fixed rate amount $ 0.0 billion   $ 0.0 billion   $ 0.0 billion   $ 0.0 billion   $ 0.0 billion
    Floating rate amount $ 2.9 billion   $ 2.7 billion   $ 2.7 billion   $ 2.1 billion   $ 2.0 billion
    Fixed rate, as percentage of total   1%     1%     1%     0%     0%
    Floating rate, as percentage of total   99%     99%     99%     100%     100%
    Interest rate type, at amortized cost (4):                            
    Fixed rate amount $ 0.0 billion   $ 0.0 billion   $ 0.0 billion   $ 0.0 billion   $ 0.0 billion
    Floating rate amount $ 2.9 billion   $ 2.7 billion   $ 2.7 billion   $ 2.1 billion   $ 2.0 billion
    Fixed rate, as percentage of total   1%     1%     1%     0%     0%
    Floating rate, as percentage of total   99%     99%     99%     100%     100%

    (1)  An investor’s yield may be lower than the portfolio yield due to sales loads and other expenses.
    (2)  Exclusive of investments on non-accrual status.
    (3)  Inclusive of all income generating investments, non-income generating investments and investments on non-accrual status.
    (4)  The interest rate type information is calculated using the Company’s corporate debt portfolio and excludes aviation and investments on non-accrual status.

     
    MIDCAP FINANCIAL INVESTMENT CORPORATION
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (In thousands, except share and per share data)
     
        March 31, 2025     December 31, 2024  
        (Unaudited)          
    Assets                
    Investments at fair value:                
    Non-controlled/non-affiliated investments (cost — $2,855,490 and $2,700,957, respectively)   $ 2,756,760     $ 2,605,329  
    Non-controlled/affiliated investments (cost — $176,063 and $142,686, respectively)     113,290       84,334  
    Controlled investments (cost — $326,224 and $333,754, respectively)     318,571       324,753  
    Cash and cash equivalents     83,703       74,357  
    Foreign currencies (cost — $1,367 and $1,487, respectively)     1,330       1,429  
    Receivable for investments sold     32,151       57,195  
    Interest receivable     25,346       19,289  
    Dividends receivable     459       709  
    Deferred financing costs     22,267       23,555  
    Unrealized appreciation on foreign currency forward contracts     33       —  
    Prepaid expenses and other assets     1,789       —  
    Total Assets   $ 3,355,699     $ 3,190,950  
                     
    Liabilities                
    Debt   $ 1,935,242     $ 1,751,621  
    Payable for investments purchased     2,091       4,190  
    Management fees payable     6,061       6,247  
    Performance-based incentive fees payable     6,433       5,336  
    Interest payable     9,403       12,813  
    Accrued administrative services expense     —       60  
    Unrealized depreciation on foreign currency forward contracts     —       —  
    Other liabilities and accrued expenses     3,209       6,037  
    Total Liabilities   $ 1,962,439     $ 1,786,304  
    Commitments and contingencies (Note 9)                
    Net Assets   $ 1,393,260     $ 1,404,646  
                     
    Net Assets                
    Common stock, $0.001 par value (130,000,000 shares authorized; 93,303,622 and 93,780,278 shares issued and outstanding, respectively)   $ 94     $ 94  
    Capital in excess of par value     2,652,015       2,658,090  
    Accumulated under-distributed (over-distributed) earnings     (1,258,849 )     (1,253,538 )
    Net Assets   $ 1,393,260     $ 1,404,646  
                     
    Net Asset Value Per Share   $ 14.93     $ 14.98  
     
    MIDCAP FINANCIAL INVESTMENT CORPORATION
    CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
    (In thousands, except per share data)
     
        Three Months Ended March 31,  
        2025     2024  
    Investment Income                
    Non-controlled/non-affiliated investments:                
    Interest income (excluding Payment-in-kind (“PIK”) interest income)   $ 69,302     $ 59,996  
    Dividend income     —       12  
    PIK interest income     3,170       1,995  
    Other income     324       1,708  
    Non-controlled/affiliated investments:                
    Interest income (excluding PIK interest income)     1,229       299  
    Dividend income     240       —  
    PIK interest income     351       34  
    Other income     —       —  
    Controlled investments:                
    Interest income (excluding PIK interest income)     4,072       4,287  
    Dividend income     —       —  
    PIK interest income     —       —  
    Other income     10       —  
    Total Investment Income   $ 78,698     $ 68,331  
    Expenses                
    Management fees   $ 6,061     $ 4,386  
    Performance-based incentive fees     6,433       6,038  
    Interest and other debt expenses     30,464       26,179  
    Administrative services expense     1,016       1,223  
    Other general and administrative expenses     1,248       2,129  
    Total expenses     45,222       39,955  
    Management and performance-based incentive fees waived     —       —  
    Performance-based incentive fee offset     —       —  
    Expense reimbursements     (806 )     (168 )
    Net Expenses   $ 44,416     $ 39,787  
    Net Investment Income   $ 34,282     $ 28,544  
    Net Realized and Change in Unrealized Gains (Losses)                
    Net realized gains (losses):                
    Non-controlled/non-affiliated investments   $ 3,588     $ (7,470 )
    Non-controlled/affiliated investments     (188 )     —  
    Controlled investments     —       —  
    Foreign currency transactions     (313 )     (618 )
    Net realized gains (losses)     3,087       (8,088 )
    Net change in unrealized gains (losses):                
    Non-controlled/non-affiliated investments     (6,088 )     4,983  
    Non-controlled/affiliated investments     (1,509 )     (2,341 )
    Controlled investments     1,348       1,613  
    Foreign currency forward contracts     24       —  
    Foreign currency translations     (814 )     778  
    Net change in unrealized gains (losses)     (7,039 )     5,033  
    Net Realized and Change in Unrealized Gains (Losses)   $ (3,952 )   $ (3,055 )
    Net Increase (Decrease) in Net Assets Resulting from Operations   $ 30,330     $ 25,489  
    Earnings (Loss) Per Share — Basic   $ 0.32     $ 0.39  
                     

    Important Information

    Investors are advised to carefully consider the investment objective, risks, charges and expenses of the Company before investing. The prospectus dated April 12, 2023, which has been filed with the Securities and Exchange Commission (“SEC”), contains this and other information about the Company and should be read carefully before investing. An effective shelf registration statement relating to certain securities of the Company is on file with the SEC. Any offering may be made only by means of a prospectus and any accompanying prospectus supplement. Before you invest, you should read the base prospectus in that registration statement, the prospectus and any documents incorporated by reference therein, which the issuer has filed with the SEC, for more complete information about the Company and an offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov.

    The information in the prospectus and in this announcement is not complete and may be changed. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

    Past performance is not indicative of, or a guarantee of, future performance. The performance and certain other portfolio information quoted herein represents information as of dates noted herein. Nothing herein shall be relied upon as a representation as to the future performance or portfolio holdings of the Company. Investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than their original cost. The Company’s performance is subject to change since the end of the period noted in this report and may be lower or higher than the performance data shown herein.

    About MidCap Financial Investment Corporation

    MidCap Financial Investment Corporation (NASDAQ: MFIC) is a closed-end, externally managed, diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940 (the “1940 Act”). For tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company is externally managed by the Investment Adviser, an affiliate of Apollo Global Management, Inc. and its consolidated subsidiaries (“Apollo”), a high-growth global alternative asset manager. The Company’s investment objective is to generate current income and, to a lesser extent, long-term capital appreciation. The Company primarily invests in directly originated and privately negotiated first lien senior secured loans to privately held U.S. middle-market companies, which the Company generally defines as companies with less than $75 million in earnings before interest, taxes, depreciation and amortization, as may be adjusted for market disruptions, mergers and acquisitions-related charges and synergies, and other items. To a lesser extent, the Company may invest in other types of securities including, first lien unitranche, second lien senior secured, unsecured, subordinated, and mezzanine loans, and equities in both private and public middle market companies. For more information, please visit www.midcapfinancialic.com

    Forward-Looking Statements

    Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: future operating results of MFIC and distribution projections; business prospects of MFIC, and the prospects of its portfolio companies, if applicable; and the impact of the investments that MFIC expects to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with: future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); changes in general economic conditions, including the impact of supply chain disruptions, tariffs and trade disputes with other countries, or changes in financial markets, and the risk of recession; changes in the interest rate environment and levels of general interest rates and the impact of inflation; the return on equity; the yield on investments; the ability to borrow to finance assets; new strategic initiatives; the ability to reposition the investment portfolio; the market outlook; future investment activity; and risks associated with changes in business conditions and the general economy. MFIC has based the forward-looking statements included in this press release on information available to it on the date hereof, and assumes no obligation to update any such forward-looking statements. Although MFIC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that MFIC in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

    Contact

    Elizabeth Besen
    Investor Relations Manager
    MidCap Financial Investment Corporation
    212.822.0625
    ebesen@apollo.com

    The MIL Network –

  • MIL-OSI: Hallador Energy Company Reports First Quarter 2025 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    – Q1 Total Revenue up 6% YoY to $117.8 Million –
    – Q1 Net Income up Materially YoY to $10.0 Million or $0.23 Earnings per Share –
    – Q1 Operating Cash Flow up ~2x YoY to $38.4 Million –
    – Q1 Adjusted EBITDA up ~3x YoY to $19.3 Million –

    TERRE HAUTE, Ind., May 12, 2025 (GLOBE NEWSWIRE) — Hallador Energy Company (Nasdaq: HNRG) (“Hallador” or the “Company”) today reported its financial results for the first quarter ended March 31, 2025.

    “We are pleased with our first quarter performance as we returned to top line growth and saw material improvements to our bottom line and cash flow generation, underscoring the strength of our strategic shift to a vertically integrated independent power producer (‘IPP’),” said Brent Bilsland, President and Chief Executive Officer. “January and February offered a strong backdrop as the combination of colder weather and higher pricing enabled us to benefit from increased dispatch volumes.”

    “We are making meaningful progress in our negotiations with a leading global data center developer for the long-term supply of capacity and energy from our facility. Our partner has demonstrated their commitment through significant investments, including securing land, transmission capacity and equipment, in addition to the previously announced exclusivity agreement with us that runs through early June 2025. Given the inherent complexity of these multi-party agreements, it is uncertain that we will finalize terms before the exclusivity expires. However, we remain confident that we will execute a strategic transaction that delivers long-term value for our shareholders.”

    Bilsland continued, “We continue to see rising demand for reliable power, particularly as grid volatility grows with the retirement of dispatchable generation. That demand, paired with supportive regulatory sentiment and Hallador’s ability to deliver dependable energy, positions us well for sustained growth. Our evaluation of dual-fuel capabilities and potential acquisitions of other dispatchable generation assets reflect our confidence in the long-term economics and viability of our platform. With a robust contracted sales book, strengthening fundamentals, and ongoing interest from high-demand end users, we believe we are well-positioned to materially strengthen our opportunities for growth and cash flow generation for many years to come.”

    First Quarter 2025 Highlights

    • Hallador returned to growth on both the top and bottom line.
      • Total revenue increased 6% year-over-year and 24% quarter-over-quarter to $117.8 million, driven by a strong increase in electric sales to $85.9 million. Electric sales are currently 73% of the Company’s revenue mix, underscoring Hallador’s commitment to emphasizing electric sales as an IPP.
      • Net income increased materially to $10.0 million, with adjusted EBITDA up ~3x year-over-year and 78% quarter-over-quarter to $19.3 million.
    • The Company generated $38.4 million in operating cash flow during the first quarter, which partially supported the repayment of debt and funding capex.
      • Total bank debt was reduced to $23.0 million at March 31, 2025, compared to $44.0 million at December 31, 2024, and $77.0 million at March 31, 2024.
      • Total liquidity was $69.0 million at March 31, 2025, compared to $37.8 million at December 31, 2024, and $39.5 million at March 31, 2024.
      • Capital expenditures in the first quarter were $11.7 million compared to $14.9 million in the year-ago period.
    • Hallador continues to focus on forward sales to secure its energy position.
      • At quarter-end, Hallador had total forward energy, capacity and coal sales to 3rd party customers of $1.1 billion through 2029.

    Financial Summary ($ in Millions and Unaudited)

        Q1 2024   Q4 2024   Q1 2025
    Electric Sales   $ 60.7     $ 69.7     $ 85.9  
    Coal Sales – 3rd Party   $ 49.6     $ 23.3     $ 30.2  
    Other Revenue   $ 1.3     $ 1.8     $ 1.7  
    Total Sales and Operating Revenue   $ 111.6     $ 94.8     $ 117.8  
    Net Income (Loss)   $ (1.7 )   $ (215.8 )   $ 10.0  
    Operating Cash Flow   $ 16.4     $ 32.5     $ 38.4  
    Adjusted EBITDA*   $ 6.8     $ 6.2     $ 19.3  
    ___________________________
    * Non-GAAP financial measure, defined as EBITDA plus effects of certain subsidiary and equity method investment activity, less other amortization, plus certain operating activities including stock-based compensation, asset retirement obligations accretion, less gain on disposal or abandonment of assets, plus other reclassifications such as special non-recurring project expenses.

    Adjusted EBITDA should not be considered an alternative to net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Our method of computing Adjusted EBITDA may not be the same method used to compute similar measures reported by other companies.

    Management believes the non-GAAP financial measure, Adjusted EBITDA, is an important measure in analyzing our liquidity and is a key component of certain material covenants contained within our Credit Agreement, specifically the minimum quarterly EBITDA. Noncompliance with the covenants could result in our lenders requiring the Company to immediately repay all amounts borrowed. If we cannot satisfy these financial covenants, we would be prohibited under our Credit Agreement from engaging in certain activities, such as incurring additional indebtedness, making certain payments, and acquiring and disposing of assets. Consequently, Adjusted EBITDA is critical to the assessment of our liquidity. The required amount of Adjusted EBITDA is a variable based on our debt outstanding and/or required debt payments at the time of the quarterly calculation based on a rolling prior 12-month period.

    Reconciliation of the non-GAAP financial measure, Adjusted EBITDA, to Income (Loss) before Income taxes, the most comparable GAAP measure, is as follows (in thousands) for the three months ended March 31, 2025 and 2024, respectively.

    Reconciliation of GAAP “Income (Loss) before Income Taxes” to non-GAAP “Adjusted EBITDA”
    (In $ Thousands and Unaudited)
     
        Three Months Ended
        March 31, 
        2025   2024
    NET INCOME (LOSS)   $ 9,979     $ (1,696 )
    Interest expense     3,723       3,937  
    Income tax expense (benefit)     —       (610 )
    Depreciation, depletion and amortization     14,977       15,443  
    EBITDA     28,679       17,074  
    Other operating revenue     —       7  
    Stock-based compensation     1,084       666  
    Asset retirement obligations accretion     427       399  
    Other amortization (1)     (11,334 )     (12,401 )
    (Gain) loss on disposal or abandonment of assets, net     (21 )     (24 )
    Loss on extinguishment of debt     —       853  
    Equity method investment (loss)     236       249  
    Other reclassifications     239       —  
    Adjusted EBITDA   $ 19,310     $ 6,823  
     
    (1) Other amortization relates to the non-cash amortization of the Hoosier PPA entered into in connection with the acquisition of the Merom Power Plant in 2022.


    Solid Forward Sales Position – Segment Basis, Before Intercompany Eliminations (unaudited):

        2025   2026   2027   2028   2029   Total
    Power                                                
    Energy                                                
    Contracted MWh (in millions)     3.04       3.36       1.78       1.09       0.27       9.54  
    Average contracted price per MWh   $ 37.20     $ 44.43     $ 54.66     $ 52.94     $ 51.33          
    Contracted revenue (in millions)   $ 113.09     $ 149.28     $ 97.29     $ 57.70     $ 13.86     $ 431.22  
                                                     
    Capacity                                                
    Average daily contracted capacity MW     784       733       623       454       100          
    Average contracted capacity price per MWd   $ 211     $ 230     $ 226     $ 225     $ 230          
    Contracted capacity revenue (in millions)   $ 45.45     $ 61.54     $ 51.40     $ 37.33     $ 3.47     $ 199.19  
                                                     
    Total Energy & Capacity Revenue                                                
                                                     
    Contracted Power revenue (in millions)   $ 158.54     $ 210.82     $ 148.69     $ 95.03     $ 17.33     $ 630.41  
                                                     
    Coal                                                
    Priced tons – 3rd party (in millions)     2.21       2.50       2.50       0.50       —       7.71  
    Avg price per ton – 3rd party   $ 50.95     $ 55.49     $ 56.74     $ 59.00     $ —          
    Contracted coal revenue – 3rd party (in millions)   $ 112.60     $ 138.73     $ 141.85     $ 29.50     $ —     $ 422.68  
                                                     
    TOTAL CONTRACTED REVENUE (IN MILLIONS) – CONSOLIDATED   $ 271.14     $ 349.55     $ 290.54     $ 124.53     $ 17.33     $ 1,053.09  
                                                     
    Priced tons – Intercompany (in millions)     1.82       2.30       2.30       2.30       —       8.72  
    Avg price per ton – Intercompany   $ 51.00     $ 51.00     $ 51.00     $ 51.00     $ —          
    Contracted coal revenue – Intercompany (in millions)   $ 92.82     $ 117.30     $ 117.30     $ 117.30     $ —     $ 444.72  
                                                     
    TOTAL CONTRACTED REVENUE (IN MILLIONS) – SEGMENT   $ 363.96     $ 466.85     $ 407.84     $ 241.83     $ 17.33     $ 1,497.81  


    Forward-Looking Statements

    This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act“), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act“). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as “expects,” “believes,” “intends,” “anticipates,” “plans,” “estimates,” “guidance,” “target,” “potential,” “possible,” or “probable” or statements that certain actions, events or results “may,” “will,” “should,” or “could” be taken, occur or be achieved. Forward-looking statements include, without limitation, those relating to our ability to execute definitive agreements with respect to the non-binding term sheet with a leading global data center developer, to execute a strategic transaction that delivers long-term value for our shareholders or to strengthen opportunities for growth and cash flow generation. Forward-looking statements are based on current expectations and assumptions and analyses made by Hallador and its management in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances that involve various risks and uncertainties that could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to, those set forth in Hallador’s annual report on Form 10-K for the year ended December 31, 2024, and other Securities and Exchange Commission filings. Hallador undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

    Conference Call and Webcast

    Hallador management will host a conference call today, May 12, 2025, at 5:00 p.m. Eastern time to discuss its financial and operational results, followed by a question-and-answer period.

    Date: Monday, May 12, 2025
    Time: 5:00 p.m. Eastern time
    Dial-in registration link: here
    Live webcast registration link: here

    The conference call will also be broadcast live and available for replay in the investor relations section of the Company’s website at www.halladorenergy.com.

    About Hallador Energy Company

    Hallador Energy Company (Nasdaq: HNRG) is a vertically-integrated Independent Power Producer (IPP) based in Terre Haute, Indiana. The Company has two core businesses: Hallador Power Company, LLC, which produces electricity and capacity at its one-Gigawatt (GW) Merom Generating Station, and Sunrise Coal, LLC, which produces and supplies fuel to the Merom Generating Station and other companies. To learn more about Hallador, visit the Company’s website at http://www.halladorenergy.com/.

    Company Contact

    Marjorie Hargrave
    Chief Financial Officer
    MHargrave@halladorenergy.com

    Investor Relations Contact

    Sean Mansouri, CFA
    Elevate IR
    (720) 330-2829
    HNRG@elevate-ir.com

    Hallador Energy Company
    Condensed Consolidated Balance Sheets
    (in thousands, except per share data)
    (unaudited)
     
        March 31,   December 31,
        2025   2024
    ASSETS            
    Current assets:            
    Cash and cash equivalents   $ 6,891     $ 7,232  
    Restricted cash     9,316       4,921  
    Accounts receivable     12,582       15,438  
    Inventory     36,318       36,685  
    Parts and supplies     40,137       39,104  
    Prepaid expenses     1,808       1,478  
    Total current assets     107,052       104,858  
    Property, plant and equipment:            
    Land and mineral rights     70,307       70,307  
    Buildings and equipment     435,329       429,857  
    Mine development     94,725       92,458  
    Finance lease right-of-use assets     13,034       13,034  
    Total property, plant and equipment     613,395       605,656  
    Less – accumulated depreciation, depletion and amortization     (360,624 )     (347,952 )
    Total property, plant and equipment, net     252,771       257,704  
    Equity method investments     2,370       2,607  
    Other assets     3,904       3,951  
    Total assets   $ 366,097     $ 369,120  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Current liabilities:            
    Current portion of bank debt, net   $ 16,965     $ 4,095  
    Accounts payable and accrued liabilities     45,652       44,298  
    Current portion of lease financing     7,067       6,912  
    Contract liabilities – current     107,368       97,598  
    Total current liabilities     177,052       152,903  
    Long-term liabilities:            
    Bank debt, net     4,000       37,394  
    Long-term lease financing     6,921       8,749  
    Asset retirement obligations     15,386       14,957  
    Contract liabilities – long-term     42,539       49,121  
    Other     4,851       1,711  
    Total long-term liabilities     73,697       111,932  
    Total liabilities     250,749       264,835  
    Commitments and contingencies (Note 16)            
    Stockholders’ equity:            
    Preferred stock, $.10 par value, 10,000 shares authorized; none issued     —       —  
    Common stock, $.01 par value, 100,000 shares authorized; 42,978 and 42,621 issued and outstanding, as of March 31, 2025 and December 31, 2024, respectively     430       426  
    Additional paid-in capital     190,378       189,298  
    Retained earnings (deficit)     (75,460 )     (85,439 )
    Total stockholders’ equity     115,348       104,285  
    Total liabilities and stockholders’ equity   $ 366,097     $ 369,120  
    Hallador Energy Company
    Condensed Consolidated Statements of Operations
    (in thousands, except per share data)
    (unaudited)
     
        Three Months Ended March 31,
        2025   2024
    SALES AND OPERATING REVENUES:            
    Electric sales   $ 85,943     $ 60,681  
    Coal sales     30,185       49,630  
    Other revenues     1,659       1,263  
    Total sales and operating revenues     117,787       111,574  
    EXPENSES:            
    Fuel     15,210       8,059  
    Other operating and maintenance costs     28,389       37,262  
    Cost of purchased power     6,840       1,926  
    Utilities     4,152       4,594  
    Labor     27,029       35,168  
    Depreciation, depletion and amortization     14,977       15,443  
    Asset retirement obligations accretion     427       399  
    Exploration costs     21       70  
    General and administrative     6,825       5,944  
    Gain on disposal or abandonment of assets, net     (21 )     (24 )
    Total operating expenses     103,849       108,841  
                 
    INCOME FROM OPERATIONS     13,938       2,733  
                 
    Interest expense (1)     (3,723 )     (3,937 )
    Loss on extinguishment of debt     —       (853 )
    Equity method investment (loss)     (236 )     (249 )
    NET INCOME (LOSS) BEFORE INCOME TAXES     9,979       (2,306 )
                 
    INCOME TAX EXPENSE (BENEFIT):            
    Current     —       —  
    Deferred     —       (610 )
    Total income tax expense (benefit)     —       (610 )
                 
    NET INCOME (LOSS)   $ 9,979     $ (1,696 )
                 
    NET INCOME (LOSS) PER SHARE:            
    Basic   $ 0.23     $ (0.05 )
    Diluted   $ 0.23     $ (0.05 )
                 
    WEIGHTED AVERAGE SHARES OUTSTANDING            
    Basic     42,619       34,816  
    Diluted     43,462       34,816  
    Hallador Energy Company
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
     
        Three Months Ended March 31,
        2025   2024
    CASH FLOWS FROM OPERATING ACTIVITIES:            
    Net income (loss)   $ 9,979     $ (1,696 )
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:            
    Deferred income tax (benefit)     —       (610 )
    Equity method investment loss     236       249  
    Depreciation, depletion and amortization     14,977       15,443  
    Loss on extinguishment of debt     —       853  
    Gain on disposal or abandonment of assets, net     (21 )     (24 )
    Amortization of debt issuance costs     497       404  
    Asset retirement obligations accretion     427       399  
    Cash paid on asset retirement obligation reclamation     (156 )     (639 )
    Stock-based compensation     1,084       666  
    Amortization of contract liabilities     (35,669 )     (24,529 )
    Accretion on contract liabilities     1,560       —  
    Change in current assets and liabilities:            
    Accounts receivable     2,856       5,709  
    Inventory     367       (6,613 )
    Parts and supplies     (1,033 )     (1,483 )
    Prepaid expenses     (330 )     (37 )
    Accounts payable and accrued liabilities     3,124       (8,015 )
    Contract liabilities     37,297       35,355  
    Other     3,224       937  
    Net cash provided by operating activities   $ 38,419     $ 16,369  
    Hallador Energy Company
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (continued)
    (unaudited)
     
        Three Months Ended March 31,
        2025   2024
    CASH FLOWS FROM INVESTING ACTIVITIES:            
    Capital expenditures   $ (11,693 )   $ (14,874 )
    Proceeds from sale of equipment     21       24  
    Net cash used in investing activities     (11,672 )     (14,850 )
                 
    CASH FLOWS FROM FINANCING ACTIVITIES:            
    Payments on bank debt     (33,000 )     (26,500 )
    Borrowings of bank debt     12,000       12,000  
    Payments on lease financing     (1,693 )     (1,238 )
    Proceeds from sale and leaseback arrangement     —       1,927  
    Issuance of related party notes payable     —       5,000  
    Debt issuance costs     —       (38 )
    ATM offering     —       6,580  
    Taxes paid on vesting of RSUs     —       (1 )
    Net cash used in financing activities     (22,693 )     (2,270 )
    Increase (decrease) in cash, cash equivalents, and restricted cash     4,054       (751 )
    Cash, cash equivalents, and restricted cash, beginning of period     12,153       7,123  
    Cash, cash equivalents, and restricted cash, end of period   $ 16,207     $ 6,372  
                 
    CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:            
    Cash and cash equivalents   $ 6,891     $ 1,635  
    Restricted cash     9,316       4,737  
        $ 16,207     $ 6,372  
                 
    SUPPLEMENTAL CASH FLOW INFORMATION:            
    Cash paid for interest   $ 1,830     $ 3,083  
                 
    SUPPLEMENTAL NON-CASH FLOW INFORMATION:            
    Change in capital expenditures included in accounts payable and prepaid expense   $ (1,649 )   $ (5,290 )
    Stock issued on redemption of convertible notes and interest   $ —     $ 9,721  

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