Category: Finance

MIL-OSI: Aterian Reports Fourth Quarter & Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Introduces Annual Guidance for 2025
Announces $3 Million Share Repurchase Program

SUMMIT, N.J., March 18, 2025 (GLOBE NEWSWIRE) — Aterian, Inc. (Nasdaq: ATER) (“Aterian” or the “Company”), a technology-enabled consumer products company, today announced financial results for the fourth quarter and full year ended December 31, 2024.

“Aterian’s results for 2024 reflect our team’s success in executing a strategy to focus, stabilize, and simplify our operations in preparation for a resumption of growth and improved operating performance, ” said Arturo Rodriguez, Chief Executive Officer.

“Our decision to rationalize SKUs and focus on the Company’s six foundational brands generated material improvements in gross margin and contribution margin, and narrowed our losses significantly compared to 2023,” continued Mr. Rodriguez. “We improved our cash flow and working capital profile, reduced debt by more than $4.0 million, and right sized our inventory to focus on Aterian’s most profitable products. These initiatives created a momentum that we believe will carry into 2025. Despite tariffs, we are confident that in 2025, especially with our experienced and tenacious team, we will be able to generate higher revenues, achieve greater operating efficiency, and further improve our profit profile. Our growth will be driven by new product introductions beginning in the second quarter of 2025 and access to a broader base of consumers through our sales channel initiatives.”

Fourth Quarter 2024 Highlights
All comparisons are to the fourth quarter ended December 31, 2023

Net revenue was $24.6 million compared to $32.8 million, primarily reflecting the previously announced SKU rationalization designed to focus on the Company’s most profitable products, lower liquidation levels of high-cost inventory, and initial contributions from new product introductions.
Gross margin improved to 63.4% from 51.0%, reflecting the success of the above-referenced SKU rationalization and improved inventory profile.
Contribution margin improved to 19.4% from (0.8%).
Operating loss narrowed to ($1.6) million from an operating loss of ($8.2) million. Fourth quarter 2024 operating loss included ($1.1) million of non-cash stock compensation, while fourth quarter 2023 operating loss included ($1.6) million of non-cash stock compensation, a non-cash loss on impairment of an intangible of ($0.3) million and a reserve for barter credits of ($0.3).
Net loss improved to ($1.3) million from ($7.7) million. Fourth quarter 2024 net loss included ($1.1) million of non-cash stock compensation and a gain on fair value of warrant liability of $0.2 million, while fourth quarter 2023 net loss included a reserve for barter credits of ($0.3) million, ($1.6) million of non-cash stock compensation, a non-cash loss on impairment of an intangible of ($0.3) million.
Adjusted EBITDA loss improved to ($0.1) million from a loss of ($5.6) million.
Total cash balance at December 31, 2024 was $18.0 million, up from $16.1 million at September 30, 2024.
Cash flow from operations improved to break-even from cash used in operations of ($4.9) million for the three months ended December 31, 2023.

Full Year 2024 Highlights
All comparisons are to the full year ended December 31, 2023

Net revenue declined to $99.0 million from $142.6 million, reflecting the success of the SKU rationalization, improved inventory profile, and new product introductions.
Gross margin improved to 62.1% compared to 49.3% in 2023, primarily reflecting the success of the above-referenced SKU rationalization and improved inventory profile.
Contribution margin rose to 17.1% from 1.2% in 2023.
Operating loss improved to ($11.8) million from ($76.2) million in 2023. Full year 2024 operating loss included ($7.5) million of non-cash stock compensation, and restructuring costs of ($0.6) million, while full year 2023 operating loss included ($8.3) million of non-cash stock compensation, a non-cash loss on impairment of intangibles of ($39.7) million, restructuring costs of ($1.6) million and a reserve for barter credits of ($0.3).
Net loss narrowed to ($11.9) million from ($74.6) million in 2023. Full year 2024 net loss includes ($7.5) million of non-cash stock compensation, restructuring costs of ($0.6) million, and a gain on fair value of warrant liability of $0.9 million, while full year 2023 net loss included ($8.3) million of non-cash stock compensation, a non-cash loss on impairment of intangibles of ($39.7) million, restructuring costs of ($1.6) million, a gain on fair value of warrant liability of $2.4 million, and a reserve on barter credits of ($0.3) million.
Adjusted EBITDA loss improved to ($2.1) million from a loss of ($22.3) million in 2023.
Total cash balance at December 31, 2024 was $18.0 million, down from $20.0 million at December 31, 2023.
Cash flow from operations improved to $2.2 million from cash used in operations of ($13.4) million for the year ended December 31, 2023.

2025 Outlook

For fiscal year 2025, taking into account the current global environment and impact of recently announced tariffs, the Company believes that net revenue will be between $104 million and $106 million, an increase of between 5% and 7% from net revenue of $99.0 million 2024. When considering approximately $4 million of net sales in 2024 related to discontinued SKUs, net revenue in 2025 is expected to increase on a pro forma basis by 9% to 12%.

The Company expects 2025 annual Adjusted EBITDA to be essentially break-even compared to an Adjusted EBITDA loss of $(2.1) million in 2024, reflecting the success of the Company’s business improvement initiatives, offset by the impacts of recently announced tariffs.

Josh Feldman, Chief Financial Officer commented, “We continue to monitor the tariff situation and its potential impact on our operations and outlook. We have already taken steps that we believe will mitigate the negative effects of tariffs in 2025, and are prepared to take further action as necessary. With the support of an exceptional team, an inherent agility, and strong balance sheet, we remain confident in our ability to successfully and proactively navigate these challenges while remaining focused on long-term growth and profitability.”

Share Repurchase Plan
As announced earlier today, the Company’s Board of Directors has authorized a share repurchase program of up to $3.0 million of the Company’s common stock for a period of two years ending March 18, 2027.

Non-GAAP Financial Measures
For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the “Non-GAAP Financial Measures” section below. The most directly comparable GAAP financial measure for EBITDA and adjusted EBITDA is net loss and we expect to report a net loss for the years ending December 31, 2024 and December 31, 2025 due primarily to our operating losses, which includes stock-based compensation expense, and interest expense. We are unable to reconcile the forward-looking statements of EBITDA and adjusted EBITDA in this press release to their nearest GAAP measures because the nearest GAAP financial measures are not accessible on a forward-looking basis and reconciling information is not available without unreasonable effort.

Webcast and Conference Call Information
Aterian will host a live conference call to discuss financial results today, March 18, 2025, at 5:00 p.m. Eastern Time, which will be accessible by telephone and the internet. To access the call, participants from within the U.S. should dial (800) 715-9871 and participants from outside the U.S. should dial (646) 307-1963 and ask to be joined into the Aterian, Inc. call or use conference ID 3432648. Participants may also access the call through a live webcast at https://ir.aterian.io. The archived online replay will be available for a limited time after the call in the investors section of the Aterian corporate website.

About Aterian, Inc.
Aterian, Inc. (Nasdaq: ATER) is a technology-enabled consumer products company that builds and acquires leading e-commerce brands with top selling consumer products, in multiple categories, including home and kitchen appliances, health and wellness and air quality devices. The Company sells across the world’s largest online marketplaces with a focus on Amazon, Walmart and Target in the U.S. and on its own direct to consumer websites. Our primary brands include Squatty Potty, hOmeLabs, Mueller Living, Pursteam, Healing Solutions and Photo Paper Direct.

Forward Looking Statements
All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements regarding our projected net revenue and adjusted EBITDA for 2025, our guidance for 2025 and the current global environment and inflation. These forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties and other factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to our ability to continue as a going concern, our ability to meet financial covenants with our lenders, our ability to maintain and to grow market share in existing and new product categories; our ability to continue to profitably sell the SKUs we operate; our ability to maintain Amazon’s Prime badge on our seller accounts or reinstate the Prime badge in the event of any removal of such badge by Amazon; our ability to create operating leverage and efficiency when integrating companies that we acquire, including through the use of our team’s expertise, the economies of scale of our supply chain and automation driven by our platform; those related to our ability to grow internationally and through the launch of products under our brands and the acquisition of additional brands; those related to consumer demand, our cash flows, financial condition, forecasting and revenue growth rate; our supply chain including sourcing, manufacturing, warehousing and fulfillment; our ability to manage expenses, working capital and capital expenditures efficiently; our business model and our technology platform; our ability to disrupt the consumer products industry; our ability to generate profitability and stockholder value; international tariffs and trade measures; inventory management, product liability claims, recalls or other safety and regulatory concerns; reliance on third party online marketplaces; seasonal and quarterly variations in our revenue; acquisitions of other companies and technologies and our ability to integrate such companies and technologies with our business; our ability to continue to access debt and equity capital (including on terms advantageous to the Company) and the extent of our leverage; and other factors discussed in the “Risk Factors” section of our most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), all of which you may obtain for free on the SEC’s website at www.sec.gov.

Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Investor Contact:

The Equity Group

Devin Sullivan
Managing Director
dsullivan@equityny.com

Conor Rodriguez
Associate
crodriguez@equityny.com


ATERIAN, INC. Consolidated Balance Sheets (in thousands, except share and per share data)

	December 31, 2023			December 31, 2024
ASSETS
Current assets:
Cash	$	20,023		$	17,998
Accounts receivable, net		4,225			3,782
Inventory		20,390			13,749
Prepaid and other current assets		4,998			3,190
Total current assets		49,636			38,719
Property and equipment, net		775			685
Intangibles, net		11,320			9,757
Other non-current assets		138			381
Total assets	$	61,869		$	49,542
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Credit facility	$	11,098		$	6,948
Accounts payable		4,190			3,080
Seller notes		1,049			466
Accrued and other current liabilities		9,110			8,804
Total current liabilities		25,447			19,298
Other liabilities		391			227
Total liabilities		25,838			19,525
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.0001 par value, 500,000,000 shares authorized and 7,508,246 and 8,750,741 shares outstanding at December 31, 2023 and December 31, 2024, respectively(*)		9			9
Additional paid-in capital		736,675			742,591
Accumulated deficit		(699,815	)		(711,677	)
Accumulated other comprehensive loss		(838	)		(906	)
Total stockholders’ equity		36,031			30,017
Total liabilities and stockholders’ equity	$	61,869		$	49,542

^{(*) The number of shares and per share amounts have been retroactively restated to reflect the one for twelve (1 for 12) reverse stock split, which was effective on March 22, 2024.}


ATERIAN, INC. Consolidated Statements of Operations *(in thousands, except share and per share data)*

	Three Months Ended December 31,						Year Ended December 31,
	2023			2024			2023			2024
Net revenue	$	32,754		$	24,607		$	142,566		$	99,045
Cost of goods sold		16,045			9,000			72,281			37,550
Gross profit		16,709			15,607			70,285			61,495
Operating expenses:
Sales and distribution		20,207			13,692			81,911			55,979
Research and development		808			—			4,616			—
General and administrative		3,654			3,527			20,220			17,339
Impairment loss on intangibles		283			—			39,728			—
Total operating expenses		24,952			17,219			146,475			73,318
Operating loss		(8,243	)		(1,612	)		(76,190	)		(11,823	)
Interest expense, net		345			209			1,421			949
Change in fair value of warrant liabilities		(30	)		(194	)		(2,440	)		(924	)
Other expense, net		158			(215	)		260			61
Loss before income taxes		(8,716	)		(1,412	)		(75,431	)		(11,909	)
Benefit for income taxes		(1,009	)		(113	)		(867	)		(47	)
Net loss	$	(7,707	)	$	(1,299	)	$	(74,564	)	$	(11,862	)
Net loss per share, basic and diluted	$	(1.16	)	$	(0.18	)	$	(11.43	)	$	(1.68	)
Weighted-average number of shares outstanding, basic and diluted(*)		6,622,540			7,343,880			6,524,589			7,069,404

(*) The number of shares and per share amounts have been retroactively restated to reflect the one-for-twelve (1-for-12) reverse stock split, which was effective on March 22, 2024.


ATERIAN, INC. Consolidated Statement of Cash Flows *(in thousands, except share and per share data)*

	Year Ended December 31,
	2023			2024
OPERATING ACTIVITIES:
Net loss	$	(74,564	)	$	(11,862	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		3,886			1,689
(Recovery) provision for sales returns		(413	)		57
Amortization of deferred financing cost and debt discounts		429			198
Stock-based compensation		8,336			7,510
Change in deferred tax expense		(1,153	)		(5	)
Change in inventory provisions		(3,149	)		(2,738	)
Change in fair value of warrant liabilities		(2,440	)		(924	)
Impairment loss on intangibles		39,728			—
Provision for barter credits		323			—
Allowance for credit losses		85			16
Changes in assets and liabilities:
Accounts receivable		205			427
Inventory		26,426			9,378
Prepaid and other current assets		2,597			762
Accounts payable, accrued and other liabilities		(13,684	)		(2,343	)
Cash (used in) provided by operating activities		(13,388	)		2,165
INVESTING ACTIVITIES:
Purchase of fixed assets		(119	)		(42	)
Purchase of Step and Go assets		(125	)		—
Purchase of minority equity investment		—			(200	)
Cash used in investing activities		(244	)		(242	)
FINANCING ACTIVITIES:
Repayments on seller notes		(668	)		(633	)
Borrowings from MidCap credit facilities		79,806			60,866
Repayments for MidCap credit facilities		(90,190	)		(65,165	)
Insurance obligation payments		(1,042	)		(682	)
Insurance financing proceeds		986			700
Cash used in financing activities		(11,108	)		(4,914	)
Foreign currency effect on cash, cash equivalents, and restricted cash		306			(61	)
Net change in cash and restricted cash for the year		(24,434	)		(3,052	)
Cash and restricted cash at beginning of year		46,629			22,195
Cash and restricted cash at end of year	$	22,195		$	19,143
RECONCILIATION OF CASH AND RESTRICTED CASH:
Cash		20,023			17,998
Restricted cash—Prepaid and other current assets		2,043			1,015
Restricted cash—Other non-current assets		129			130
TOTAL CASH AND RESTRICTED CASH	$	22,195		$	19,143

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	$	1,718		$	1,141
Cash paid for taxes	$	94		$	152
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Non-cash consideration paid to contractors	$	321		$	620
Non-cash minority equity investment	$	—		$	50

Non-GAAP Financial Measures
We believe that our financial statements and the other financial data included in this press release have been prepared in a manner that complies, in all material respects, with generally accepted accounting principles in the U.S. (“GAAP”). However, for the reasons discussed below, we have presented certain non-GAAP measures herein.

We have presented the following non-GAAP measures to assist investors in understanding our core net operating results on an on-going basis: (i) Contribution Margin; (ii) Contribution margin as a percentage of net revenue; (iii) EBITDA (iv) Adjusted EBITDA; and (v) Adjusted EBITDA as a percentage of net revenue. These non-GAAP financial measures may also assist investors in making comparisons of our core operating results with those of other companies.

As used herein, Contribution margin represents gross profit less amortization of inventory step-up from acquisitions (included in cost of goods sold), reserve on barter credits and e-commerce platform commissions, online advertising, selling and logistics expenses (included in sales and distribution expenses). As used herein, Contribution margin as a percentage of net revenue represents Contribution margin divided by net revenue. As used herein, EBITDA represents net loss plus depreciation and amortization, interest expense, net and provision for income taxes. As used herein, Adjusted EBITDA represents EBITDA plus stock-based compensation expense, changes in fair-market value of warrant liability, impairment on intangibles, restructuring expenses, reserve on barter credits, and other expenses, net. As used herein, Adjusted EBITDA as a percentage of net revenue represents Adjusted EBITDA divided by net revenue. Contribution margin, EBITDA and Adjusted EBITDA do not represent and should not be considered as alternatives to loss from operations or net loss, as determined under GAAP.

We present Contribution margin and Contribution margin as a percentage of net revenue, as we believe each of these measures provides an additional metric to evaluate our operations and, when considered with both our GAAP results and the reconciliation to gross profit, provides useful supplemental information for investors. Specifically, Contribution margin and Contribution margin as a percentage of net revenue are two of our key metrics in running our business. All product decisions made by us, from the approval of launching a new product and to the liquidation of a product at the end of its life cycle, are measured primarily from Contribution margin and/or Contribution margin as a percentage of net revenue. Further, we believe these measures provide improved transparency to our stockholders to determine the performance of our products prior to fixed costs as opposed to referencing gross profit alone.

In the reconciliation to calculate contribution margin, we add e-commerce platform commissions, online advertising, selling and logistics expenses (“sales and distribution variable expense”), and the reserve for barter credits to gross profit to inform users of our financial statements of what our product profitability is at each period prior to fixed costs (such as sales and distribution expenses such as salaries as well as research and development expenses and general administrative expenses). By excluding these fixed costs, we believe this allows users of our financial statements to understand our products performance and allows them to measure our products performance over time.

We present EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue because we believe each of these measures provides an additional metric to evaluate our operations and, when considered with both our GAAP results and the reconciliation to net loss, provide useful supplemental information for investors. We use these measures with financial measures prepared in accordance with GAAP, such as sales and gross margins, to assess our historical and prospective operating performance, to provide meaningful comparisons of operating performance across periods, to enhance our understanding of our operating performance and to compare our performance to that of our peers and competitors. We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue are useful to investors in assessing the operating performance of our business without the effect of non-cash items.

Contribution margin, Contribution margin as a percentage of net revenue, EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue should not be considered in isolation or as alternatives to net loss, loss from operations or any other measure of financial performance calculated and prescribed in accordance with GAAP. Neither EBITDA, Adjusted EBITDA or Adjusted EBITDA as a percentage of net revenue should be considered a measure of discretionary cash available to us to invest in the growth of our business. Our Contribution margin, Contribution margin as a percentage of net revenue, EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue may not be comparable to similar titled measures in other organizations because other organizations may not calculate Contribution margin, Contribution margin as a percentage of net revenue, EBITDA, Adjusted EBITDA or Adjusted EBITDA as a percentage of net revenue in the same manner as we do. Our presentation of Contribution margin and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by the expenses that are excluded from such terms or by unusual or non-recurring items.

We recognize that EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue, have limitations as analytical financial measures. For example, neither EBITDA nor Adjusted EBITDA reflects:

our capital expenditures or future requirements for capital expenditures or mergers and acquisitions;
the interest expense or the cash requirements necessary to service interest expense or principal payments, associated with indebtedness;
depreciation and amortization, which are non-cash charges, although the assets being depreciated and amortized will likely have to be replaced in the future, or any cash requirements for the replacement of assets;
changes in cash requirements for our working capital needs; or
changes in fair value of warrant liabilities

Additionally, Adjusted EBITDA excludes non-cash expense for stock-based compensation, which is and is expected to remain a key element of our overall long-term incentive compensation package.

We also recognize that Contribution margin and Contribution margin as a percentage of net revenue have limitations as analytical financial measures. For example, Contribution margin does not reflect:

general and administrative expense necessary to operate our business;
research and development expenses necessary for the development, operation and support of our software platform;
the fixed costs portion of our sales and distribution expenses including stock-based compensation expense; or
changes in fair value warrant liabilities

Contribution Margin

The following table provides a reconciliation of Contribution margin to gross profit and Contribution margin as a percentage of net revenue to gross profit as a percentage of net revenue, which are the most directly comparable financial measures presented in accordance with GAAP.

	Three Months Ended December 31,								Year Ended December 31.
	2023				2024				2023				2024
	(in thousands, except percentages)
Gross Profit	$	16,709			$	15,607			$	70,285			$	61,495
Less:
Reserve on barter credits		323				—				323				—
E-commerce platform commissions, online advertising, selling and logistics expenses		(17,293	)			(10,844	)			(68,864	)			(44,553	)
Contribution margin	$	(261	)		$	4,763			$	1,744			$	16,942
Gross Profit as a percentage of net revenue		51.0		%		63.4		%		49.3		%		62.1		%
Contribution margin as a percentage of net revenue		(0.8	)	%		19.4		%		1.2		%		17.1		%

Adjusted EBITDA

	Three Months Ended December 31,								Year Ended December 31,
	2023				2024				2023				2024
	(in thousands, except percentages)
Net loss	$	(7,707	)		$	(1,299	)		$	(74,564	)		$	(11,862	)
Add:
Benefit for income taxes		(1,009	)			(113	)			(867	)			(47	)
Interest expense, net		345				209				1,421				949
Depreciation and amortization		469				410				3,886				1,689
EBITDA		(7,902	)			(793	)			(70,124	)			(9,271	)
Other expense, net		158				(215	)			260				61
Impairment loss on intangibles		283				—				39,728				—
Change in fair market value of warrant liabilities		(30	)			(194	)			(2,440	)			(924	)
Reserve on barter credits		323				—				323				—
Restructuring expense		—				—				1,633				565
Stock-based compensation expense		1,564				1,116				8,336				7,510
Adjusted EBITDA	$	(5,604	)		$	(86	)		$	(22,284	)		$	(2,059	)
Net loss as a percentage of net revenue		(23.5	)	%		(5.3	)	%		(52.3	)	%		(12.0	)	%
Adjusted EBITDA as a percentage of net revenue		(17.1	)	%		(0.3	)	%		(15.6	)	%		(2.1	)	%

Each of our products typically goes through the Launch phase and depending on its level of success is moved to one of the other phases as further described below:

i. Launch phase: During this phase, we leverage our technology to target opportunities identified using AIMEE (Artificial Intelligence Marketplace e-Commerce Engine) and other sources. This phase also includes revenue from new product variations and relaunches. During this period of time, due to the combination of discounts and investment in marketing, our net margin for a product could be as low as approximately negative 35%. Net margin is calculated by taking net revenue less the cost of goods sold, less fulfillment, online advertising and selling expenses. These primarily reflect the estimated variable costs related to the sale of a product.

ii Sustain phase: Our goal is for every product we launch to enter the sustain phase and become profitable, with a target of positive 15% net margin for most products, within approximately three months of launch on average. Net margin primarily reflects a combination of manual and automated adjustments in price and marketing spend.

iii. Liquidate phase: If a product does not enter the sustain phase or if the customer satisfaction of the product (i.e., ratings) is not satisfactory, then it will go to the liquidate phase and we will sell through the remaining inventory. Products can also be liquidated as part of inventory normalization especially when steep discounts are required.

The following tables break out our fourth quarter and full year 2023 and 2024 results of operations by our product phases (in thousands):

	Three months ended December 31, 2023
	Sustain		Launch		Liquidation/ Other		Fixed Costs		Stock Based Compensation		Total
Net revenue	$	25,175	$	390	$	7,189	$	—	$	—	$	32,754
Cost of goods sold		10,457		114		5,474		—		—		16,045
Gross profit		14,718		276		1,715		—		—		16,709
Operating expenses:
Sales and distribution expenses		12,973		263		4,056		2,567		348		20,207
Research and development		—		—		—		528		280		808
General and administrative		—		—		—		2,717		937		3,654
Impairment loss on intangibles		—		—		—		283		—		283

	Three months ended December 31, 2024
	Sustain		Launch		Liquidation/ Other		Fixed Costs		Stock Based Compensation		Total
Net revenue	$	23,332	$	347	$	928	$	—	$	—	$	24,607
Cost of goods sold		8,536		143		321		—		—		9,000
Gross profit		14,796		204		607		—		—		15,607
Operating expenses:
Sales and distribution expenses		9,965		309		570		2,767		81		13,692
General and administrative		—		—		—		2,492		1,035		3,527

	Year-ended December 31, 2023
	Sustain		Launch		Liquidation/ Other		Fixed Costs		Stock Based Compensation		Total
Net revenue	$	114,919	$	959	$	26,688	$	—	$	—	$	142,566
Cost of goods sold		53,139		455		18,687		—		—		72,281
Gross profit		61,780		504		8,001		—		—		70,285
Operating expenses:
Sales and distribution expenses		53,442		603		14,820		10,607		2,439		81,911
Research and development		—		—		—		3,202		1,414		4,616
General and administrative		—		—		—		15,737		4,483		20,220
Impairment loss on intangibles		—		—		—		39,728		—		39,728

	Year-ended December 31, 2024
	Sustain		Launch		Liquidation/ Other		Fixed Costs		Stock Based Compensation		Total
Net revenue	$	92,542	$	1,829	$	4,674	$	—	$	—	$	99,045
Cost of goods sold		35,012		651		1,887		—		—		37,550
Gross profit		57,530		1,178		2,787		—		—		61,495
Operating expenses:
Sales and distribution expenses		40,353		1,087		3,113		9,643		1,783		55,979
General and administrative		—		—		—		11,612		5,727		17,339

The MIL Network –

March 19, 2025

MIL-OSI: HUMBL, Inc. Secures $500,000 in Strategic Investment From Quail Hollow Capital, LLC

Source: GlobeNewswire (MIL-OSI)

San Diego, CA, March 18, 2025 (GLOBE NEWSWIRE) — HUMBL, Inc. (OTC: HMBL) (the “Company”) is pleased to announce a strategic investment from Quail Hollow Capital, LLC, marking a key step in the Company’s efforts to strengthen its financial position and drive future growth.

Quail Hollow Capital has invested $500,000 in the Company through the purchase of a Convertible Promissory Note, providing capital to support key business initiatives and operations.

This investment reflects strong confidence in the Company’s strategic direction as it continues to expand its holding company activities in the North American and Latin American markets.

“Quail Hollow’s investment will support critical public company operating costs, including audits, accounting, legal, and compliance,” said Thiago Moura, CEO of HUMBL, Inc. “Additionally, this capital allows for strategic growth and sales expansion between our North American and Latin American operations.”

The Company has significantly lowered its burn rate, reduced debt and remains highly focused on driving revenues, achieving profitability, and uplisting to a senior exchange. The Company is committed to responsible financial management and long-term shareholder value creation.

About HUMBL, Inc.

HUMBL, Inc. has transformed into a strategic holding company, operating with a business model centered on high-value joint ventures, mergers, acquisitions, and sales distribution agreements.

The company is focused on bridging North American and Latin American markets, leveraging its access to physical assets and distribution networks to create immediate economic opportunities.

Following the divestiture of its technology assets, HUMBL, Inc. has shifted to a shareholder value-driven approach under the leadership of CEO Thiago Moura, principal of Ybyra Capital, a Brazilian holding company with diversified investments in real estate, commodities and mining.

By leveraging Ybyra Capital’s established presence in Latin America, HUMBL, Inc. is uniquely positioned to provide strategic partners with direct market access and growth opportunities.

About Quail Hollow Capital, LLC

Quail Hollow Capital is a Texas-based investment firm specializing in strategic growth investments across various industries. The firm partners with high-potential companies to provide capital and expertise that drive long-term value creation.

HUMBL, Inc. (OTC: HMBL)
Investor Relations: ir@humbl.com
Media Contact: media@humbl.com

The MIL Network –

March 19, 2025

MIL-OSI: Waldencast Reports Q4 2024 and Fiscal Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Q4 Net Revenue of $72.1 million, 29.4% Comparable Net Revenue Growth and $11.2 million of Adjusted EBITDA, doubling from Q4 2023

FY 2024 Net Revenue of $273.9 million, 27.5% Comparable Net Revenue Growth and $40.3 million of Adjusted EBITDA

Obagi Medical is the fastest growing professional skincare brand¹ in the US in 2024

Milk Makeup expands its distribution to Ulta Beauty

Waldencast secures a new $205 million credit facility, replacing the current one, enhancing flexibility and extending debt maturity

LONDON, March 18, 2025 (GLOBE NEWSWIRE) — Waldencast plc (NASDAQ: WALD) (“Waldencast” or the “Company”), a global multi-brand beauty and wellness platform, today reported operating results for the three months ended December 31, 2024 (“Q4 2024”) and the year ended December 31, 2024 (the “Year Ended 2024”) on Form 6-K to the U.S. Securities and Exchange Commission (the “SEC”), which are also available on our investor relations site at http://ir.waldencast.com/.

Michel Brousset, Waldencast Founder and CEO, said: “We closed a transformative year for the Group, achieving outstanding growth, expanding our brands’ communities, and making significant progress on our strategic priorities. Our business model is driven by a powerful flywheel effect of growth and profitability. This begins with the unique strength of our brands, which is amplified by our ability to enhance operational efficiency. As a result, we can effectively increase investments in sales and marketing to drive profitable growth. In 2024, we achieved a 27.5% increase in Comparable Net Revenue and a 65.1% rise in Adjusted EBITDA, demonstrating our proven ability to expand gross margins and optimize our cost base as we grow.”

“Our proven ability to innovate significantly contributed to our brands’ growth. This year, Milk Makeup introduced several exciting new products, including the viral and award-winning Cooling Water Jelly Tint Blush + Lip Stain. Obagi Medical also launched a range of successful innovations aimed at both consumers and the professional skincare medical community, most notably the ELASTIderm Lift Up & Sculpt Facial Moisturizer and Elastiderm Advanced Filler Concentrate.”

“Building on our momentum, we are excited to announce that Milk Makeup will launch in over 600 Ulta Beauty locations this spring, further highlighting the growing demand for our cult-favorite brand. Additionally, Obagi Medical expanded the Suzan Obagi MD® collection with groundbreaking new products, including the Super Antioxidant Serum and the Moisture Restore Hydration Replenishing Cream.”

____________________________________

¹ Among the top 10 brands. Kline & Company. (2024). 2024 Kline Professional Skincare: United States market analysis and opportunities.

“Overall, we are excited about the year ahead and expect another year of significant milestones toward achieving our ambition to build a global best-in-class beauty and wellness multi-brand platform by creating, acquiring, accelerating, and scaling the next generation of high-growth, purpose-driven brands,” concluded Mr. Brousset.

Q4 2024 Results Overview

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

For the three months ended December 31, 2024 compared to the three months ended December 31, 2023:

Net Revenue increased 30.8% to $72.1 million, a 29.4% increase in Comparable Net Revenue Growth that was attributable to Milk Makeup channel expansion, Obagi Medical accelerated growth in the Physician Dispense channel, and continued success in Obagi Medical e-commerce channels.

Gross Profit was $49.4 million. Adjusted Gross Profit was $52.6 million, or 73.0% of net revenue, compared to $40.3 million in Q4 2023.

Net Loss improved from $32.7 million in Q4 2023 to $22.6 million in Q4 2024, driven by operational growth and a reduction in non-recurring costs associated with the restatement and SEC investigation.

Adjusted EBITDA doubled to $11.2 million (15.5% of net revenue), reflecting a 530 basis point expansion from Q4 2023. This growth was driven by strong top-line performance and operational leverage, as both Obagi Medical and Milk Makeup continued to scale and reinvest in business drivers while maintaining G&A discipline.

Liquidity: The business maintained strong cash conversion in Q4 2024, driven by effective working capital management and minimal capital expenditure thanks to our asset-light business model. While the Company continues to incur significant non-recurring legal and advisory costs, the level of expenditures has been gradually reducing. As of December 31, 2024, the Company had $14.8 million in cash and cash equivalents and $154.2 million of Net Debt.

New Credit Facility: Waldencast has entered into a new $205 million five-year credit facility, comprising a $175 million Term Loan and a $30 million RCF, that replaces its existing facility. This agreement supports the Company’s strategic priorities by enhancing financial flexibility and extending its debt maturity profile well ahead of the current facilities expiration in July 2026.

Outstanding Shares: As of February 28, 2025, we had 122,720,911 ordinary shares outstanding, consisting of 112,054,383 Class A shares and 10,666,528 Class B shares. As of December 31, 2024, we had 122,692,968 ordinary shares outstanding, consisting of 112,026,440 Class A shares and 10,666,528 Class B shares.

(In $ millions, except for percentages)	Q4 2024	% Sales	% Growth	% Comparable Net Revenue Growth	Q4 2023	% Sales
Waldencast
Net Revenue	72.1	100.0%	30.8%	29.4%	55.1	100.0%
Adjusted Gross Profit	52.6	73.0%	30.7%		40.3	73.1%
Adjusted EBITDA	11.2	15.5%	99.3%		5.6	10.2%

Obagi Medical
Net Revenue	42.2	100.0%	30.0%	27.7%	32.5	100.0%
Adjusted Gross Profit	33.2	78.7%	28.0%		26.0	80.0%
Adjusted EBITDA	9.8	23.3%	23.7%		8.0	24.5%

Milk Makeup
Net Revenue	29.9	100.0%	31.9%		22.6	100.0%
Adjusted Gross Profit	19.4	64.9%	35.6%		14.3	63.1%
Adjusted EBITDA	4.8	16.1%	248.0%		1.4	6.1%

Fourth Quarter 2024 Brand Highlights:

Obagi Medical:

Net Revenue reached $42.2 million, from $32.5 million in Q4 2023 with Comparable Net Revenue Growth of 27.7%.
Obagi Medical’s strong net revenue growth continued to be driven by increased brand awareness, stronger selling and marketing investments, and continued innovation. The brand continued expanding its international footprint and growing e-commerce sales through its direct website and the move to a first party model with its main e-commerce distributor, implemented in late 2023, with benefits tapering off by Q1 2025.
Notably, Obagi Medical was the fastest-growing professional skin care brand among the top 10 in the US in 2024¹. This historic achievement underscores the strength of our enhanced go-to-market strategy which successfully balances growth in the Physician Dispense channel, our historic stronghold, with the acceleration of our digital channels.
Adjusted Gross Margin of 78.7% contracted 130 basis points from Q4 2023 due to a higher weight of inventory liquidations.
Adjusted EBITDA was $9.8 million, an increase of 23.7% from Q4 2023 with an Adjusted EBITDA margin of 23.3%, a decline of 120 basis points from Q4 2023 reflecting the brands continued strategic investment in marketing to drive top-line growth and improved leverage of fixed costs.

Milk Makeup:

Net Revenue reached $29.9 million, up 31.9% from $22.6 million in Q4 2023.
Milk Makeup’s Q4 2024 growth reflected the initial shipments to Ulta Beauty in support of the brand’s spring 2025 launch along with increased demand driven by our growing awareness, the continued delivery of sought-after innovation, and international expansion.
Adjusted Gross Margin increased by 180 basis points versus Q4 2023, primarily reflecting the positive impact of channel and product mix, as well as margin accretive innovation.
Adjusted EBITDA was $4.8 million an increase of $3.4 million from Adjusted EBITDA of $1.4 million in Q4 2023. Adjusted EBITDA Margin improved 1,000 basis points to 16.1% versus 6.1% in Q4 2023 as robust sales growth and gross margin expansion drove significant operational leverage despite increased brand investment.

Year Ended 2024 Results Overview

For the year ended December 31, 2024 compared to the year ended December 31, 2023:

Net Revenue was $273.9 million, a 27.5% increase in Comparable Net Revenue Growth.

Gross Profit was $191.7 million. Adjusted Gross Profit was $203.6 million, or 74.3% of net revenue, a margin improvement of 530 basis points versus 2023.

Net Loss was $48.6 million, down from $106.0 million in the Year Ended 2023. The improvement was primarily driven by strong operational growth in the business, a fair value adjustment of the warrants, and reduced non-recurring costs.

Adjusted EBITDA was $40.3 million, an Adjusted EBITDA Margin of 14.7%, compared to 11.2% in the Year Ended 2023.

Fiscal 2025 Outlook:

We expect to deliver mid-teens Net Revenue growth and further expansion of Adjusted EBITDA Margin into the mid-to-high teens.

Net revenue growth is expected to accelerate throughout the year, starting with relatively flat growth in Q1 due to the anniversary of the highly successful Milk Makeup “Jellies” launch from Q1 2024, as well as inventory adjustment in some of our retail partners.

Growth is expected to accelerate progressively in the following quarters, driven by our innovation pipeline and the continued expansion of our distribution footprint in the U.S. and internationally, including the launch of Milk Makeup at Ulta Beauty in March 2025.

Year Ended 2024 Highlights

(In $ millions, except for percentages)	Year Ended 2024	% Sales	% Growth	% Comparable Net Revenue Growth	Year Ended 2023	% Sales
Waldencast
Net Revenue	273.9	100.0%	25.5%	27.5%	218.1	100.0%
Adjusted Gross Profit	203.6	74.3%	35.3%		150.4	69.0%
Adjusted EBITDA	40.3	14.7%	65.1%		24.4	11.2%

Obagi Medical
Net Revenue	149.3	100.0%	26.9%	30.7%	117.7	100.0%
Adjusted Gross Profit	118.6	79.4%	41.6%		83.7	71.2%
Adjusted EBITDA	30.5	20.4%	46.4%		20.8	17.7%

Milk Makeup
Net Revenue	124.6	100.0%	24.0%		100.5	100.0%
Adjusted Gross Profit	85.0	68.2%	27.4%		66.7	66.4%
Adjusted EBITDA	29.1	23.3%	58.0%		18.4	18.3%

Conference Call and Webcast Information

Waldencast will host a conference call to discuss its year-end and fourth quarter results on Wednesday, March 19, 2025, at 8:30 AM EDT for the period ended December 31, 2024. Those interested in participating in the conference call are invited to dial (877) 704-4453. International callers may dial (201) 389-0920. A live webcast of the conference call will include a slide presentation and will be available online at https://ir.waldencast.com/. A replay of the webcast will remain available on the website until our next conference call. The information accessible on, or through, our website is not incorporated by reference into this release.

Non-GAAP Financial Measures

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

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

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

Comparable Net Revenue is defined as Net Revenue excluding sales related to the former Obagi Medical China business (the “Obagi Medical China Business”), which was not acquired by Waldencast at the time of the business combination with Obagi Medical and Milk Makeup (the “Business Combination”) as was presented in previous earnings releases. The sales to the Obagi Medical China Business have a below market sales price for a defined period of time after the acquisition of Obagi Medical pursuant to the Business Combination. As a result of the Business Combination, a below market contract liability was recognized and is amortized based on sales. This adjustment is shown in the Adjusted EBITDA and Adjusted Gross Profit reconciliations. Management of the Company believes that this non-GAAP measure provides perspective on how Waldencast’s management evaluates and monitors the performance of the business. See reconciliation to U.S. GAAP Net Revenue in the Appendix.

Comparable Net Revenue Growth is defined as the growth in Comparable Net Revenue period over period expressed as a percentage.

Adjusted Gross Profit is defined as GAAP gross profit excluding the impact of inventory fair value adjustments, amortization of the supply agreement and formulation intangible assets, discontinued product write-off, and the amortization of the fair value of the related party liability from the Obagi Medical China Business. The Adjusted Gross Profit reconciliation by Segment for each period is included in the Appendix.

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

Adjusted EBITDA is defined as GAAP net income (loss) before interest income or expense, income tax (benefit) expense, depreciation and amortization, and further adjusted for the items as described in the reconciliation below. We believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business. Adjusted EBITDA excludes certain expenses that are required to be presented in accordance with GAAP because management believes they are non-core to our regular business. These include non-cash expenses, such as depreciation and amortization, stock-based compensation, inventory fair value adjustments, the amortization and release of fair value of the related party liability to the Obagi Medical China Business, change in fair value of financial instruments, loss on impairment of goodwill and leases, and foreign currency translation loss (gain). In addition, adjustments include expenses that are not related to our underlying business performance including (1) legal, advisory and consultant fees related to the financial restatement of previously issued financial statements and associated regulatory investigation, and the Business Combination; (2) costs to recover and the value of the inventory recovered from the acquisition of the SA distributor, and the associated discontinued products; and (3) other non-recurring costs, primarily legal settlement costs and restructuring costs. The Adjusted EBITDA by Segment for each period is included in the Appendix.

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

(In thousands, except for percentages)	Three Months Ended December 31, 2024			Three Months Ended December 31, 2023			Year ended December 31, 2024			Year ended December 31, 2023
Net Loss	$	(22,597	)	$	(32,731	)	$	(48,648	)	$	(105,968	)
Adjusted For:
Depreciation and amortization		15,013			14,863			60,015			60,498
Interest expense, net		4,088			4,276			17,155			18,888
Income tax expense (benefit)		4,113			(976	)		110			(6,975	)
Stock-based compensation expense		2,993			1,677			9,392			9,235
Legal and advisory non-recurring costs⁽¹⁾		3,029			12,949			21,493			32,783
Change in fair value of warrants and interest rate collar		443			2,473			(23,679	)		10,443
Amortization and release of related party liability⁽²⁾		(4,169	)		—			(5,678	)		(4,058	)
Loss on impairment of goodwill		5,031			—			5,031			—
Other costs⁽³⁾		3,241			3,083			5,093			9,549
Adjusted EBITDA	$	11,185		$	5,613		$	40,284		$	24,395
Net Revenue	$	72,083		$	55,117		$	273,868		$	218,138
Net Loss % of Net Revenue		(31.3	)%		(59.4	)%		(17.8	)%		(48.6	)%
Adjusted EBITDA Margin		15.5	%		10.2	%		14.7	%		11.2	%

⁽¹⁾	Includes mainly legal, advisory and consultant fees related to the financial restatement 2020-2022 periods and associated regulatory investigation, and the Business Combination.
⁽²⁾	Relates to the fair value of the related party liability for the unfavorable discount to the Obagi Medical China Business as part of the Business Combination.
⁽³⁾	Other costs include legal settlements, foreign currency translation losses, product discontinuation costs related to advanced purchases for the SA Distributor, the write-down and subsequent recovery of inventory from the SA Distributor, restructuring costs, amortization of the fair value step-up as a result of the business combination, lease impairments, restructuring and contract termination fees.

Net Debt Position is defined as the principal outstanding for the 2022 Term Loan and 2022 Revolving Credit Facility minus the cash and cash equivalents as of December 31, 2024.

(In thousands)	Reconciliation of Net Carrying Amount of debt to Net Debt
Current portion of long-term debt	$	29,479
Long-term debt		137,137
Net carrying amount of debt		166,616
Adjustments:
Add: Unamortized debt issuance costs		2,339
Less: Cash & cash equivalents		(14,802	)
Net Debt	$	154,153

About Waldencast plc

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

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

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

Cautionary Statement Regarding Forward-Looking Statements

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

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of our control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements, including, among others: (i) the impact of the material weaknesses in our internal control over financial reporting, including associated investigations, our efforts to remediate such material weakness and the timing of remediation and resolution of associated investigations; (ii) our ability to recognize the anticipated benefits from any acquired business, including the Business Combination; (iii) our ability to successfully implement our management’s plans and strategies; (iv) the overall economic and market conditions, sales forecasts and other information about our possible or assumed future results of operations or our performance; (v) the general impact of geopolitical events, including the impact of current wars, conflicts or other hostilities; (vi) the potential for delisting, legal proceedings or existing or new government investigation or enforcement actions, including those relating to the restatement or the subject of the Audit Committee of our Board of Directors’ review further described in our annual report filed on Form 20-F for the year ended December 31, 2022, (vii) our ability to manage expenses, our liquidity and our investments in working capital; (viii) any failure to obtain governmental and regulatory approvals related to our business and products; (ix) the impact of any international trade or foreign exchange restrictions, increased tariffs, foreign currency exchange fluctuations; (x) our ability to raise additional capital or complete desired acquisitions; (xi) our ability to comply with financial covenants imposed by the new 2025 credit agreement we entered into referenced in the section entitled “New Credit Facility” above and the impact of debt service obligations and restricted debt covenants; (xii) volatility of Waldencast’s securities due to a variety of factors, including Waldencast’s inability to implement its business plans or meet or exceed its financial projections and changes; (xiii) the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; (xiv) the ability of Waldencast to implement its strategic initiatives and continue to innovate Obagi Medical’s and Milk Makeup’s existing products and anticipate and respond to market trends and changes in consumer preferences, (xv) any shifts in the preferences of consumers as to where and how they shop; (xvi) the impact of any unfavorable publicity on our business or products; (xvii) changes in future exchange or interest rates or credit ratings; (xviii) changes in, and uncertainty with respect to, laws, regulations, and policies, including as a result of the change in the U.S. administration; and (xix) social, political and economic conditions. These and other risks, assumptions and uncertainties are more fully described in the Risk Factors section of our 2023 20-F (File No. 01-40207), filed with the SEC on April 30, 2024, and in our other documents that we file or furnish with the SEC, which you are encouraged to read.

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

Contacts:

Investors
ICR
Allison Malkin
waldencastir@icrinc.com

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

Appendix

Comparable Net Revenue Growth

	Group										Obagi Medical
(In thousands, except for percentages)	Three months ended December 31, 2024			Three months ended December 31, 2023		Year ended December 31, 2024			Year ended December 31, 2023		Three months ended December 31, 2024			Three months ended December 31, 2023		Year ended December 31, 2024			Year ended December 31, 2023
Net Revenue	$	72,083		$	55,117	$	273,868		$	218,138	$	42,211		$	32,470	$	149,266		$	117,651
Obagi Medical China Business		735			—		2,804			5,619		735			—		2,804			5,619
Comparable Net Revenue	$	71,348		$	55,117	$	271,064		$	212,519	$	41,476		$	32,470	$	146,462		$	112,032
Comparable Growth		29.4	%				27.5	%				27.7	%				30.7	%

Adjusted Gross Profit

	Group
(In thousands, except for percentages)	Three months ended December 31, 2024			Three months ended December 31, 2023			Year ended December 31, 2024			Year ended December 31, 2023
Net Revenue	$	72,083		$	55,117		$	273,868		$	218,138
Gross Profit		49,450			37,476			191,744			141,577
Gross Profit Margin		68.6	%		68.0	%		70.0	%		64.9	%
Gross Margin Adjustments:
Amortization of the fair value of the related party liability⁽¹⁾		(750	)		—			(2,260	)		(4,058	)
Amortization of the inventory fair value adjustment⁽²⁾		—			—			—			1,691
Discontinued product write-off⁽³⁾		1,139			—			2,864			—
Amortization impact of intangible assets⁽⁴⁾		2,801			2,801			11,205			11,205
Adjusted Gross Profit	$	52,639		$	40,277		$	203,553		$	150,415
Adjusted Gross Margin %		73.0	%		73.1	%		74.3	%		69.0	%

⁽¹⁾	Relates to the fair value of the related party liability for the unfavorable discount to the Obagi Medical China Business as part of the Business Combination.
⁽²⁾	Relates to the amortization of the inventory fair value step-up as a result of the Business Combination.
⁽³⁾	Relates to the advance purchase of specific products for the market in Vietnam sold through the SA Distributor that became obsolete when the distribution contract was terminated.
⁽⁴⁾	The Supply Agreement and Formulations intangible assets are amortized to cost of goods sold.

	Obagi Medical												Milk Makeup
(In thousands, except for percentages)	Three months ended December 31, 2024			Three months ended December 31, 2023			Year ended December 31, 2024			Year ended December 31, 2023			Three months ended December 31, 2024			Three months ended December 31, 2023			Year ended December 31, 2024			Year ended December 31, 2023
Net Revenue	$	42,211		$	32,470		$	149,266		$	117,651		$	29,872		$	22,647		$	124,602		$	100,487
Gross Profit		30,050			23,175			106,760			76,582			19,395			14,301			84,984			64,995
Gross Profit Margin		71.2	%		71.4	%		71.5	%		65.1	%		64.9	%		63.1	%		68.2	%		64.7	%
Gross Margin Adjustments:
Amortization of the fair value of the related party liability		(750	)		—			(2,260	)		(4,058	)		—			—			—			—
Amortization of the inventory fair value adjustment		—			—			—			—			—			—			—			1,691
Discontinued product write-off		1,139			—			2,864			—			—			—			—			—
Amortization impact of intangible assets		2,801			2,801			11,205			11,205			—			—			—			—
Adjusted Gross Profit	$	33,239		$	25,976		$	118,569		$	83,729		$	19,395		$	14,301		$	84,984		$	66,686
Adjusted Gross Margin %		78.7	%		80.0	%		79.4	%		71.2	%		64.9	%		63.1	%		68.2	%		66.4	%

Adjusted EBITDA Margin by Segment

	Obagi Medical												Milk Makeup
(In thousands, except for percentages)	Three months ended December 31, 2024			Three months ended December 31, 2023			Year ended December 31, 2024			Year ended December 31, 2023			Three months ended December 31, 2024			Three months ended December 31, 2023			Year ended December 31, 2024			Year ended December 31, 2023
Net Loss	$	(12,114	)	$	(8,305	)	$	(31,524	)	$	(32,214	)	$	230		$	(3,959	)	$	8,803		$	(5,655	)
Adjusted For:
Depreciation and amortization		10,397			10,425			41,591			41,984			4,616			4,457			18,424			18,514
Interest expense, net		3,068			3,341			12,391			12,644			(3	)		4			(1	)		590
Income tax expense (benefit)		3,933			(990	)		(141	)		(6,997	)		25			9			32			10
Stock-based compensation expense		465			(317	)		(328	)		726			(338	)		444			1,167			2,352
Legal and advisory non-recurring costs		1,061			1,119			5,054			1,702			—			—			—			27
Amortization and release of related party liability		(4,169	)		—			(5,678	)		(4,058	)		—			—			—			—
Loss on impairment of goodwill		5,031			—			5,031			—			—			—			—			—
Other costs		2,166			2,682			4,120			7,027			285			428			639			2,566
Adjusted EBITDA	$	9,838		$	7,956		$	30,516		$	20,814		$	4,814		$	1,383		$	29,064		$	18,404
Net Revenue	$	42,211		$	32,470		$	149,266		$	117,651		$	29,872		$	22,647		$	124,602		$	100,487
Net Loss % of Net Revenue		(28.7	)%		(25.6	)%		(21.1	)%		(27.4	)%		0.8	%		(17.5	)%		7.1	%		(5.6	)%
Adjusted EBITDA Margin		23.3	%		24.5	%		20.4	%		17.7	%		16.1	%		6.1	%		23.3	%		18.3	%

	Central costs
(In thousands, except for percentages)	Three months ended December 31, 2024			Three months ended December 31, 2023			Year ended December 31, 2024			Year ended December 31, 2023
Net Loss	$	(10,714	)	$	(20,467	)	$	(25,927	)	$	(68,099	)
Adjusted For:
Depreciation and amortization		—			(20	)		—			—
Interest expense, net		1,024			931			4,765			5,654
Income tax expense		155			4			219			12
Stock-based compensation expense		2,866			1,549			8,553			6,157
Legal and advisory non-recurring costs		1,968			11,830			16,439			31,054
Change in fair value of warrants and interest rate collar		443			2,473			(23,679	)		10,443
Other costs		789			(26	)		334			(44	)
Adjusted EBITDA	$	(3,468	)	$	(3,727	)	$	(19,296	)	$	(14,823	)
Net Revenue	$	—		$	—		$	—		$	—
Net Loss % of Net Revenue		N/A			N/A			N/A			N/A
Adjusted EBITDA Margin		N/A			N/A			N/A			N/A

The MIL Network –

March 19, 2025

MIL-OSI USA: Markey Joins Padilla, Durbin in Push to Save Task Force Combating Threats to Election Officials

US Senate News:

Source: United States Senator for Massachusetts Ed Markey
Senators to Attorney General: “In this challenging environment for election officials, it is essential to our democracy that they can continue to rely on [DOJ] to uphold the law”
Washington (March 18, 2025) – Senator Edward J. Markey (D-Mass.) yesterday joined Senators Alex Padilla (D-Calif.), Ranking Member of the Senate Committee on Rules and Administration, and Democratic Whip Dick Durbin (D-Ill.), Ranking Member of the Senate Judiciary Committee, along with 28 Democratic Senators in urging Attorney General Pam Bondi to continue the essential work of the Department of Justice’s (DOJ) Election Threats Task Force, which directs the Department’s efforts to protect election officials from rising threats and acts of violence.
The Senators’ letter comes as the Trump administration has significantly rolled back the federal government’s capacity to fight against foreign and domestic election security threats. On Attorney General Bondi’s first day in office, she disbanded the Federal Bureau of Investigation’s (FBI) Foreign Influence Task Force, hindering efforts to address secret influence campaigns waged by China, Russia, and other foreign adversaries. Additionally, the administration has fired or put on leave dozens of officials responsible for combating foreign election interference at the Cybersecurity and Infrastructure Security Agency (CISA) and has reportedly frozen all of CISA’s ongoing election security work. The Administration has also defunded CISA’s nationwide program to train local officials and monitor threats through the Elections Infrastructure Information Sharing and Analysis Center.
“Given the recent disturbing personnel and policy decisions at the Department and the lack of transparency about the future of the Task Force, we request an immediate update on the status and activities of the Task Force, as well as what resources will be provided to ensure its important work continues so that election officials of both parties can safely administer our elections,” wrote the Senators.
“Recent surveys have found that one in three election officials reported facing threats, harassment, and abuse. Similarly, 48 percent of local election officials know of someone who has left their job because of fear for their safety—a troubling loss of institutional knowledge needed for the smooth running of elections. Election workers continue to fear for their safety, so it is critical that the work of the Task Force continues to deter and counter these threats. In this challenging environment for election officials, it is essential to our democracy that they can continue to rely on the Department to uphold the law,” continued the Senators.
The letter was also signed by Senator Amy Klobuchar (D-Minn.), Senate Democratic Leader Chuck Schumer (D-N.Y.), and Senators Angela Alsobrooks (D-Md.), Michael Bennet (D-Colo.), Richard Blumenthal (D-Conn.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Maria Cantwell (D-Wash.), Chris Coons (D-Del.), Ruben Gallego (D-Ariz.), Mazie Hirono (D-Hawaii), Mark Kelly (D-Ariz.), Andy Kim (D-N.J.), Angus King (I-Maine), Ben Ray Luján (D-N.M.), Jeff Merkley (D-Ore.), Jon Ossoff (D-Ga.), Bernie Sanders (I-Vt.), Brian Schatz (D-Hawaii), Adam Schiff (D-Calif.), Jeanne Shaheen (D-N.H.), Chris Van Hollen (D-Md.), Mark Warner (D-Va.), Raphael Warnock (D-Ga.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.), and Ron Wyden (D-Ore.).
Full text of the letter is available HERE:

MIL OSI USA News –

March 19, 2025
MIL-OSI Asia-Pac: OPERATIONAL GUIDELINES OF PMFBY

Source: Government of India (2)

Posted On: 18 MAR 2025 6:00PM by PIB Delhi

All the major work like selection of insurance model, selection of Insurance Companies through transparent bidding process, enrollment of farmers, assessment of crop yield/crop loss for calculation of admissible claims are being performed by the concerned State Government or Joint Committee of State Government officials and concerned insurance company. Further, all the data relating to payment of claims was available with the States/UTs, therefore, they were advised to impose penalties on insurance companies themselves. The roles and responsibilities of each stakeholder are defined in the Operational Guidelines of the scheme for the proper execution of the scheme.

Majority of the claims are settled within the stipulated timelines under the Operational Guidelines of the scheme by the insurance companies. However, during the implementation of PMFBY, some complaints were received in the past about non-payment, delayed payment or under payment of claims on account of incorrect/delayed submission of insurance proposals by banks; discrepancy in yield data & consequent disputes between State Government and insurance companies, delay in providing State Government share of funds, non-deployment of sufficient personnel by insurance companies etc., which were suitably addressed as per provisions of the scheme.

In order to rigorously monitor claim disbursal process, a dedicated module namely ‘Digiclaim Module’ has been operationalized for payment of claims from Kharif 2022 onwards. This modules gives GOI visibility of claims payable, claims paid and pending. This is used for monitoring of claims, which was not possible earlier. It involves integration of National Crop Insurance Portal (NCIP) with Public Finance Management System (PFMS) and accounting system of Insurance Companies to provide timely & transparent processing of all claims. W.e.f. Kharif 2024, in case payment is not made timely by Insurance Company, penalty of 12% is auto-calculated and levied through NCIP. This is the first season for implementation of auto calculated penalty on NCIP and Department is taking all necessary steps for its enforcement.

This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur in a written reply in Lok Sabha today.

******

MG/KSR

(Release ID: 2112395) Visitor Counter : 49

MIL OSI Asia Pacific News –

March 19, 2025
MIL-OSI Asia-Pac: India and New Zealand working on a comprehensive, mutually beneficial Free Trade Agreement: Shri Piyush Goyal

Source: Government of India

India and New Zealand working on a comprehensive, mutually beneficial Free Trade Agreement: Shri Piyush Goyal

New Zealand Prime Minister and Commerce and Industry Minister Piyush Goyal address CEOs of India and New Zealand

I feel incredibly optimistic about the future of both the countries and India for us is a game changer:The Right Honourable Christopher Luxon, PM of New Zealand

Posted On: 18 MAR 2025 5:41PM by PIB Delhi

India and New Zealand are working to finalize a comprehensive and mutually beneficial Free Trade Agreement. Union Minister of Commerce & Industry, Shri Piyush Goyal, said this while addressing the CEOs of India and New Zealand in New Delhi today. The two countries had announced the launch of negotiations for an FTA earlier this week. The event today was attended by the Right Honourable Christopher Luxon, Prime Minister of New Zealand, Hon’ble Mr. Todd McClay, New Zealand’s Minister for Trade and Investment, Agriculture and Forestry, business leaders and senior officers of the two countries.

Addressing the business leaders, Shri Goyal emphasized the immense potential for collaboration between the two countries. He articulated an ambitious vision for the India-New Zealand partnership, targeting 10x growth in bilateral trade over the next decade.

Prime Minister of New Zealand, The Right Honourable Christopher Luxon, while addressing the forum, stated that businesses play a critical role in both economies and in strengthening bilateral relations. The Prime Minister further emphasized the need to explore new frontiers and sectors where New Zealand holds a competitive advantage. “I feel incredibly optimistic about the future of both India and New Zealand. India for us is a game changer. As a smaller country in the world, India is a really consequential relationship for us. We all recognize that there is a lot more that these two countries should be doing together. When we look at the trading relationship today at $3 billion, there’s a huge opportunity for us here,” he added.

The Commerce Minister called on business leaders from both countries to contribute towards achieving this goal. “There are hardly any areas where we compete with each other, and the few areas of sensitivity can be navigated with mutual respect. Given our different levels of development, there are limitless possibilities for cooperation in agri-tech, dairy, food processing, pharmaceuticals, renewable energy, critical minerals, forestry, horticulture, tourism, and sports,” he said.

Discussing global challenges, Shri Goyal emphasized the importance of trusted partnerships. “The world is going through a lot of problems. A defining partnership between our two nations can serve as a model for how trusted partners work together. It’s not about the size of an economy; it’s about collaboration and shared values,” he said. He noted that India’s economy, currently at $4 trillion, is poised to grow to $30-35 trillion in the next 22-25 years, presenting immense opportunities for collaboration.

Shri Goyal highlighted the role of tourism in fostering stronger relations between India and New Zealand. He praised the Prime Minister of New Zealand for his commitment to enhancing ties between the two nations and noted that their partnership could create significant economic opportunities. “Together, we can make a significant difference to our economies. Both countries will emerge as winners through this partnership,” he stated.

Drawing a parallel with cricket, Shri Goyal described the partnership as “aggressive yet graceful, passionate but well-composed, and creating a strong innings.” He expressed confidence that India and New Zealand are ready to step up for a brighter future.

The Minister underscored the importance of working with democracies where the rule of law prevails and businesses get fair opportunities. He mentioned the strong people-to-people linkages between India and New Zealand, citing Papatoetoe in Auckland as “Little India.” He expressed optimism about Free Trade Agreement (FTA) negotiations, stating that they would be vibrant and add more depth to the relationship.

He also stressed the importance of education and research in bringing people closer, highlighting the potential of New Zealand’s innovation to reach the world through India. He suggested that manufacturing in India for global markets at competitive prices could take the partnership to greater heights.

Speaking on connectivity, Shri Goyal reaffirmed India’s commitment to strengthening financial and digital linkages, as well as facilitating swift mobility of manpower and technical talent. He noted that India produces the highest number of STEM graduates annually, with 43% of them being women, showcasing the diversity and strength of India’s workforce.

“Our two countries have decisive leaders, and India’s young, aspirational population of 1.4 billion, combined with New Zealand’s innovative spirit, will create a potent partnership that the world will look up to. Walking into the future while respecting the past—this perfectly captures the essence of our collaboration,” he concluded.

***

Abhishek Dayal/ Abijith Narayanan/ Ishita Biswas

(Release ID: 2112372) Visitor Counter : 61

MIL OSI Asia Pacific News –

March 19, 2025
MIL-OSI USA: Welch Convenes International Business Leaders near Northern Border to Discuss Impacts of Trump’s Trade War

US Senate News:

Source: United States Senator Peter Welch (D-Vermont)
Welch: “I’m very disturbed about what is happening…how it’s affecting our families here in Vermont, how it’s affecting our businesses here in Vermont, and how it’s affecting the mutual cooperation that we had the blessing of enjoying for generations—between us and Canada. I am opposed to tariffs against our Canadian allies.”
NEWPORT, VT — Today, U.S. Senator Peter Welch (D-Vt.), a member of the Senate Finance Committee, convened Vermont and Canadian business leaders for a roundtable in Newport, Vermont —near the U.S.-Canada border—to discuss President Trump’s Trade War and how the Trump Administration’s reckless tariffs are hurting workers, families, and farmers.
Senator Welch’s remarks from the beginning of the roundtable are included in-full below:
“We in Vermont really value both our friendship with Canadians, and our economic partnerships with Canada. I believe what’s happening here with the rhetoric from the Trump Administration and from these tariffs is very destructive—for you and for us.
“I don’t want to be a part of it. I want to be a part of doing everything we can to maintain the very cordial, friendly, economically mutually-beneficial relationships that we have. I can understand an appropriate place for a tariff, and Canada can make its own decisions about where it would be appropriate for you to have a tariff. I cannot think of why we would be having a tariff or trade war with our best neighbor. Your environmental standards — your labor standards — match or exceed ours, and that’s really important to you and it’s important to us.
“What I’m seeing with the tariffs is that they’re being imposed in a very arbitrary way. Not to mention that they’re on again, they’re off again.
“Every time I speak to any anybody in business on our side (and it’s really nice that we’re going to hear from the Canadian side of the border) one of the things that’s really essential is stability. No business, and frankly no family, can deal with, ‘yes, we’re on no, we’re off.’ Nobody can do that. And it is not, in my view, good for international relationships. It’s not good for business relationships. And it’s not even good for family, where there’s constant instability. You don’t know what the rules are—they keep changing.
“I’m very disturbed about what is happening from [the Trump] Administration and I’m disturbed from the perspective of how it’s affecting our families here in Vermont, how it’s affecting our businesses here in Vermont and how it’s affecting the mutual cooperation that we had the blessing of enjoying for generations, between us and Canada. I am opposed to tariffs against our Canadian allies.
“That’s just to set the stage of where I’m coming from, and it’s why I am so grateful that we have this joint meeting where we can talk about the real problems that are caused as a result of these tariffs. And mobilize as much support as we can to renewing that friendship, that business relationship, that economic relationship that we’ve had. So, thank you all for coming and [the Hon. Marie-Claude] Bibeau, I’m so, so delighted that you’re here. I want to turn it over to you after I expressed my gratitude for all the work you’ve done and your willingness to be here deep in the south reaches of Newport, Vermont.”
Photos of the event are included below:
Senator Welch was joined by the Hon. Marie-Claude Bibeau, Member of Parliament for Compton-Stanstead, and Vermont and Canadian business owners. Attendees included representatives from Newport Downtown Development; Built By Newport; Columbia Forest Products; Kingdom Brewing; Morrison Custom Feeds, Inc.; Kingdom Trails Association; Hill Farmstead Brewery; Vermont Brewers Association; Vermont Agency of Commerce and Community Development; Northeastern Vermont Development Association; Caledonia Spirits; Vermont Maple Sugar Makers Association; Judd’s Wayeeses Farm; Khrome Product-Transport; Weidmann Electrical Technology; TRACK, Inc.; Larue; Motrec International; UTV Internationale; Ville de Sherbrooke; and the Sherbrooke Chamber of Commerce.
Nearly half of all U.S. imports—more than $1.3 trillion—come from Canada, China, and Mexico. Canada is the largest trading partner for 34 U.S. states, including Vermont. In 2024 alone, trade with Canada accounted for 35% of Vermont exports, 67% of our imports, and 56% of its total trade. One in four businesses in Vermont relies on trade with Canada.
In many cases, Vermont manufacturers buy imports from Canada to manufacture into products. Tariffs on Canada threaten business closures and job layoffs, higher homebuilding costs, increased costs of grain for farmers, and more expensive equipment for maple producers—among other costs that will get passed on to working families.
Senator Welch has blasted Trump’s tariffs and trade war, and shared stories from constituents about how President Trump’s economic policies have impacted their businesses, farms, and communities. This event follows a roundtable Senator Welch held in St. Albans in January and virtually in February where he heard from businesses and state and local leaders about the President’s threats to reignite a trade war.
Vermonters are invited to share how these tariffs will impact their lives and businesses by sharing their story on Senator Welch’s website.

MIL OSI USA News –

March 19, 2025
MIL-OSI USA: Governor Newsom continues supporting Los Angeles business, fire recovery workers with funding, educational workplace safety outreach
Source: US State of California 2
Mar 18, 2025

What you need to know: Governor Newsom and Los Angeles community-based organizations (CBOs) today announced $25 million to advance educational outreach to workers and businesses about vital health, safety, and workplace protections.

LOS ANGELES — As rebuilding in the Los Angeles area continues at record speed, Governor Gavin Newsom announced the state is awarding $25 million and strengthening partnerships with local communities to ensure fire recovery workers and businesses have access to additional workplace safety information through a California Workplace Outreach Project (CWOP).

“We’re helping ensure that brave fire recovery workers and businesses have vital workplace safety information.”

Governor Gavin Newsom
California Labor & Workforce Development Agency (LWDA), Department of Industrial Relations (DIR), California Division of Occupational Safety and Health (Cal/OSHA), California State Labor Commissioner, and representatives from Los Angeles Community Based Organizations (CBOs) will issue $25 million in funding for the CWOP to support 89 community-based organizations across the state.

CWOP is a DIR partnership with CBOs to provide critical information about workplace protections, labor rights, and health and safety measures for workers in high-risk industries. The outreach work will help notify workers and businesses about vital health and safety protections, hazard prevention, and other worker protections for people and businesses helping Los Angeles cleanup and rebuild.

Today’s actions build on multiple efforts across the state to support workers and businesses who are helping the Los Angeles community recover and rebuild.

And California has worked with local communities and federal and local providers to help businesses and workers in many ways, including:

Supporting workers and employers: The Employment Development Department (EDD) supports workers with unemployment, disability insurance, or Paid Family Leave benefits, including Disaster Unemployment Assistance (DUA) for those who do not qualify for regular unemployment benefits. The Governor took action to extend payroll tax deadlines and reporting requirements—a move that has helped thousands of businesses in the Los Angeles area. Employers can request a 60-day extension on payroll reports and taxes, or participate in the Work Sharing program.

On-the-ground advisors for small businesses: Over 200 business advisors from Small Business Support Centers help answer questions about economic recovery, loan application processes, insurance, employee and workforce support, and business planning.

Providing resources for recovery: CalOSBA launched a Resource Guide for small businesses impacted by the wildfires through its Outsmart Disaster website.

Financial assistance for businesses: The California Infrastructure and Economic Development Bank (IBank) loan programs help businesses from one to 750 employees affected by the LA wildfires. Disaster Relief Loan Guarantee Program (DRLGP) issues loan guarantees up to 95%.

Expediting contractor licensing: The Contractor State Licensing Board (CSLB) is rapidly processing licensing applications to continue expediting efforts to rebuild homes and businesses.

Helping fire survivors rebuild safely: CSLB is also partnering with state agencies to promote California-licensed contractors for repairs or to rebuild their homes or businesses. CSLB’s Disaster Hotline 1-800-962-1125 and online Disaster Help Center also provided valuable support to survivors.

Protecting against unlicensed contractors: Investigation teams notified the public that it is a felony to contract without a license in a California disaster area, urged consumers to always check licenses before hiring a contractor, and recommended reporting any unlicensed activity immediately by filing complaints at www2.cslb.ca.gov.

Helping licensees rebuild their businesses: The Board of Barbering and Cosmetology, the Board of Accountancy, and other DCA boards rescheduled licensing examinations at no charge and are issuing duplicate licenses for original licenses lost in the fires.

Governor Newsom also issued multiple executive orders to help speed rebuilding and recovery, create more temporary housing, and protect survivors.
Press Releases, Recent News
Recent news

Mar 18, 2025

News What you need to know: With the release of a new draft working report by leading artificial intelligence experts, California continues to lead in advocating for the responsible use of emerging AI technology and the study of its impacts and opportunities. SAN…

Mar 17, 2025

News SACRAMENTO – Governor Gavin Newsom issued the following statement regarding the death of San Bernardino County Sheriff’s Deputy Hector Cuevas Jr.:“Jennifer and I are deeply saddened by the tragic loss of Deputy Cuevas. Our heartfelt condolences go out to his…

Mar 17, 2025

News Lo que necesita saber: California tiene un nuevo compañero en Sonora, México para impulsar el desarrollo de recursos energéticos renovables, la resiliencia de la cadena de suministro y el transporte limpio. To read this release in English, click here. Sacramento,…

MIL OSI USA News –
March 19, 2025
MIL-OSI USA: Cherokee County man 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 Timothy Jared Vise, 45, of Cowpens, S.C., on six charges connected to the sexual exploitation of minors. Internet Crimes Against Children (ICAC) Task Force investigators with the Cherokee County Sheriff’s Office made the arrest. Investigators with the Attorney General’s Office, also a member of the state’s ICAC Task Force, assisted with the investigation.

Investigators state Vise possessed files of child sexual abuse material.

Vise was arrested on March 13, 2025. He is charged with six 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.

This case 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 –

March 19, 2025
MIL-OSI USA: Berkeley County man 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 John Joseph Techman, 31, of Moncks Corner, S.C., on five charges connected to the sexual exploitation of a minor. Internet Crimes Against Children (ICAC) Task Force investigators with the Attorney General’s Office made the arrest. Investigators with the Berkeley County Sheriff’s Office, Charleston County Sheriff’s Office, Homeland Security Investigations, and U.S. Secret Service, all also members of the state’s ICAC Task Force, assisted with this investigation.

Investigators state Techman distributed files of child sexual abuse material.

Techman was arrested on March 12, 2025. He is charged with five 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.

The case 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 –

March 19, 2025
MIL-OSI Asia-Pac: India-Malaysia MoS Level Bilateral Meeting held in New Delhi

Source: Government of India (2)

Posted On: 18 MAR 2025 6:53PM by PIB Delhi

The Union Minister of State for Commerce & Industry and Electronics & Information Technology, Shri Jitin Prasada had a bilateral meeting with Mr. Liew Chin Tong, Malaysian Deputy Minister of Investment, Trade, and Industry on 18^th March 2025, in Vanijya Bhawan, New Delhi. Malaysian Diplomats and Senior Govt. Officials from the Ministry of Investment, Trade and Industry, Malaysia and from the Ministry of Commerce & Industry, Ministry of Electronics & Information Technology, Ministry of External Affairs and Bureau of Indian Standards from Govt of India were also present during the meeting.

Malaysia is one of the ten-member countries of ASEAN and is the ASEAN Chair for the year 2025.The meeting discussed the ongoing review of ASEAN India Trade in Goods Agreement (AITIGA) and both sides agreed to take necessary steps for speeding up the AITIGA review for its substantial conclusion by 2025.

Both sides also discussed the bilateral trade issues, Market Access issues, Collaboration in Semiconductor Industry, Cooperation in Service Sector and the issues related to Foreign Manufacturers Certification Scheme (FMCS) of Bureau of Indian Standard (BIS). The two sides hoped that the meeting will help in speeding up the resolution of bilateral trade issues and growing bilateral trade between the two Countries.

Malaysia is India’s 3rd largest trading partner of India in ASEAN with total trade of USD 20.02 Bn during 2023-24 accounting for around 17 % of India’s total trade with ASEAN.

***

Abhishek Dayal/Abhijith Narayanan

(Release ID: 2112446) Visitor Counter : 77

MIL OSI Asia Pacific News –

March 19, 2025
MIL-OSI Asia-Pac: WAVEX 2025: A Game-Changer for Media & Entertainment Startups

Source: Government of India (2)

WAVEX 2025: A Game-Changer for Media & Entertainment Startups

Startups to Pitch Ideas to Venture Capitalists/Angel Investors at WAVEX 2025

WAVEX 2025 Opens Doors for Startups to Secure Investment & Visibility

Posted On: 18 MAR 2025 6:11PM by PIB Mumbai

Mumbai, 18^th March 2025

Union Ministry of Information & Broadcasting (MIB) has launched WAVEX 2025, a pioneering initiative aimed at funding and providing national exposure to startups in the media and entertainment sector. Organised in collaboration with the Internet and Mobile Association of India (IAMAI), WAVEX 2025 will take place at Jio World Convention Centre, Mumbai, as part of the World Audio-Visual Entertainment Summit (WAVES) which is scheduled to be held from 01^st to 04^th May, 2025 in Mumbai.

WAVEX 2025 will act as a catalyst for Indian startups to lead this transformation, ensuring they receive the right exposure, and investment, to scale their businesses. Startups will have the chance to pitch their ideas to venture capitalists and celebrity angel investors in dedicated sessions, with extensive national television coverage ensuring maximum visibility.

WAVEX 2025 focuses on gaming, animation, extended reality (XR), metaverse, generative AI, and next-generation content platforms. Beyond funding, the event offers mentorship, investor networking, and collaboration opportunities with major media and technology firms. The event will bring together entrepreneurs, venture capitalists, angel investors, and industry leaders. This exposure will not only help secure direct funding but also create broader business and collaboration opportunities. The fusion of entertainment and technology transforms how content is created, distributed, and consumed.

WAVEX 2025 will feature two modes of investment pitching sessions. In one session, startups will pitch to venture capitalists and angel investors, while in the other, select startups will present their ideas to a pool of celebrity angel investors. The event will be extensively covered on national television, ensuring wide outreach and maximizing investment avenues for participating startups.

Applications for WAVEX 2025 are now open, and the event will follow a multi-stage selection process culminating in a high-stakes televised finale, where the most promising startups will pitch directly to top celebrity angel investors and VCs. Selected startups may benefit from structured mentorship programs featuring industry experts, investor networking opportunities, and potential collaborations with major media and technology firms.

WAVEX aims to strengthen India’s position as a global hub for media-tech entrepreneurship, leveraging innovation in AI-driven content, digital media, and emerging entertainment technologies. Nodal officer for WAVES from the Ministry of Information & Broadcasting highlighted that this initiative is a strategic step toward positioning India as a leader in media-tech innovation.

As India continues to solidify its position as a global leader in digital content and technology, WAVEX 2025 presents a transformative opportunity for startups to establish themselves in the industry. Entrepreneurs seeking national exposure, funding, and top-tier mentorship can apply now at https://wavex.wavesbazaar.com/

About WAVES

The first World Audio Visual & Entertainment Summit (WAVES), a milestone event for the Media & Entertainment (M&E) sector, will be hosted by the Government of India in Mumbai, Maharashtra, from May 1 to 4, 2025.

Whether you’re an industry professional, investor, creator, or innovator, the Summit offers the ultimate global platform to connect, collaborate, innovate and contribute to the M&E landscape.

WAVES is set to magnify India’s creative strength, amplifying its position as a hub for content creation, intellectual property, and technological innovation. Industries and sectors in focus include Broadcasting, Print Media, Television, Radio, Films, Animation, Visual Effects, Gaming, Comics, Sound and Music, Advertising, Digital Media, Social Media Platforms, Generative AI, Augmented Reality (AR), Virtual Reality (VR), and Extended Reality (XR).

Have questions? Find answers here

Come, Sail with us! Register for WAVES now (Coming soon!).

PIB TEAM WAVES 2025 | Dhanlakshmi/ Preeti Malandkar | 071

Follow us on social media: @PIBMumbai /PIBMumbai /pibmumbai pibmumbai[at]gmail[dot]com /PIBMumbai /pibmumbai

(Release ID: 2112412) Visitor Counter : 14

MIL OSI Asia Pacific News –

March 19, 2025
MIL-OSI Europe: CEB and EIB sign agreement to facilitate co-financing and boost investment impact

Source: European Investment Bank

The Council of Europe Development Bank (CEB) and the European Investment Bank (EIB) deepened their long-standing partnership by signing a Mutual Reliance Agreement today to strengthen co-operation, facilitate co-financing and enhance the impact of public sector projects in countries of operation outside of the European Union.

A key element of this approach is the mutual recognition of each institution’s procurement policies and procedures, thus reducing transaction costs and administrative burden. By streamlining project preparation and implementation, the agreement will allow both the CEB and the EIB to focus on delivering tangible benefits for their member countries.

The agreement also aligns with the recommendations of the G20 Roadmap for Better, Bigger, and More Effective Multilateral Development Banks (MDBs), which calls on MDBs to enhance country-level coordination and co-financing, including through mutual reliance agreements for greater development financing efficiency.

“As Chair of the Heads of MDBs Group this year, the CEB is committed to fostering stronger collaboration among multilateral development banks to increase our collective impact. This CEB-EIB agreement is a concrete example of how MDBs are working together more effectively as a system, to deliver financing where it is most needed. By tightening our cooperation, we can accelerate support for sustainable development, social cohesion and economic resilience in our countries of operation to benefit the communities we serve,” said CEB Governor Carlo Monticelli.

EIB Group President Nadia Calviño said: “ It is more important than ever that we join forces in mobilising investment and supporting a strong European voice in the world. The agreement we signed today with the Council of Europe Development Bank reflects our strong partnership, financing projects that build stronger communities and improve lives across the European Union and beyond.”

The CEB and EIB have a strong track record of co-financing projects that drive social and economic development across Europe. Recent examples of collaboration include financing vital water irrigation investments in Greece; jointly supporting a landmark cultural, social and educational hub in Cyprus; and investing in water and wastewater facilities in Serbia. Projects in the healthcare sector are also being jointly appraised in the Western Balkans region.

The agreement will enable both institutions to co-finance larger and more complex projects that no single lender could undertake alone, leveraging their collective financial strength and expertise to maximise the impact of strategic investments.

Background information

EIB  

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

About the CEB

The Council of Europe Development Bank (CEB) is a multilateral development bank, whose unique mission is to promote social cohesion in its 43 member states across Europe. The CEB finances investment in social sectors, including education, health and affordable housing, with a focus on the needs of vulnerable people. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. As a multilateral bank with an excellent credit rating, the CEB funds itself on the international capital markets. It approves projects according to strict social, environmental and governance criteria, and provides technical assistance. In addition, the CEB receives funds from donors to complement its activities.

MIL OSI Europe News –

March 19, 2025
MIL-OSI Security: New Haven Gang Member Sentenced to 22 Years in Federal Prison for Murders, Additional Shootings

Source: Office of United States Attorneys

TYJON PRESTON, also known as “TJ,” 22, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 264 months of imprisonment, followed by five years of supervised release, for his involvement in a violent New Haven street gang, including two murders and additional shootings.

Today’s announcement was made by Marc H. Silverman, Acting United States Attorney for the District of Connecticut; John P. Doyle, Jr., State’s Attorney for the New Haven Judicial District; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Anish Shukla, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England; and New Haven Police Chief Karl Jacobson.

According to court documents and statements made in court, in an effort to address violence in New Haven, the ATF, FBI, DEA and New Haven Police Department, working closely with the U.S. Attorney’s Office and New Haven State’s Attorney’s Office, have been investigating a gang war between members and associates of the Exit 8 street gang and rival gangs in the Hill section and other areas of the city. The Exit 8 gang is named after the geographic area accessed by exiting Interstate 91 at Exit 8 in New Haven. Recently, younger members of Exit 8 are identifying themselves with the word “Honcho,” which is derived from the street name of an Exit 8 member who was murdered on Quinnipiac Avenue in February 2020.

The investigation revealed that Preston and other members of the Exit 8 gang engaged in drug trafficking, used and shared firearms, and, since June 2018, have committed at least three murders and 16 attempted murders. Exit 8 members and associates also stole vehicles, at times from outside of the state, and used those stolen vehicles when committing acts of violence. Gang members also promoted, coordinated, facilitated, and celebrated their narcotics distribution and acts of violence through text messaging and the use of social media applications and websites including Facebook, Instagram, Snapchat, and YouTube.

On April 24, 2024, Preston pleaded guilty to conspiracy to engage in a pattern of racketeering activity, and specifically admitted that on April 27, 2021, he and other Exit 8 members attempted to kill a rival gang member and shot him in the leg; on May 19, 2021, he and other Exit 8 members conspired to kill rival gang members, and shot and killed an associate of a rival gang; on May 20, 2021, he and other Exit 8 members shot and attempted to kill rival gang members; and on July 5, 2021, he and another Exit 8 member shot and killed a 22-year-old woman after she made a rap song containing derogatory comments about Exit 8.

Preston has been detained since September 9, 2021.

This investigation has been conducted by the ATF, the FBI, the DEA, the New Haven Police Department, the Hamden Police Department, and the New Haven State’s Attorney’s Office, with the assistance of the Connecticut State Police and the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorney Jocelyn C. Kaoutzanis.

This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.

PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.

Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.

OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

MIL Security OSI –

March 19, 2025
MIL-OSI Security: New Orleans Man Sentenced for Being Felon in Possession of Ammunition

Source: Office of United States Attorneys

NEW ORLEANS, LOUISIANA – Acting U.S. Attorney Michael M. Simpson announced that on March 12, 2025, WILLIE SYLVESTER (“SYLVESTER”), age 29, a resident of New Orleans, was sentenced to 24 months imprisonment, after previously pleading guilty to being a felon in possession of ammunition, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2), by Chief U.S. District Judge Nannette Jolivette Brown. Following his imprisonment, SYLVESTER will be placed in supervised release for 3 years. SYLVESTER was also ordered to pay a mandatory special assessment fee of $100.00.

According to filed court documents, between April and September of 2020, Jefferson Parish Sheriff’s Office detectives (JPSO) investigated SYLVESTER for an April 2020 shooting. In so doing, JPSO observed SYLVESTER post several social media messages with weapons. SYLVESTER also acknowledged, in a separate message, that he fired a gun during the April 2020 shooting, before sustaining a gunshot wound to his own hand.

Federal law prohibits convicted felons, such as SYLVESTER, from possessing ammunition. On May 1, 2013, SYLVESTER was convicted of simple robbery, a felony offense, in Orleans Parish Criminal District Court and, on November 6, 2014, SYLVESTER was convicted of being a felon in possession of a firearm, possession of a firearm and controlled dangerous substances, and possession of a stolen firearm, all felony offenses in the 24th Judicial District Court of the State of Louisiana.

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

The case was investigated by the Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime Unit.

MIL Security OSI –

March 19, 2025
MIL-OSI USA: Shapiro Administration Highlights Multimillion Dollar Investments Improving Care for Older Pennsylvanians

Source: US State of Pennsylvania

March 18, 2025 – York, PA

Shapiro Administration Highlights Multimillion Dollar Investments Improving Care for Older Pennsylvanians

Shapiro Administration officials from the Departments of Health (DOH), and Aging (PDA) visited Country Meadows of York-West to highlight the success of investments that helped optimize its workforce and improve resident safety.

Governor Josh Shapiro’s 2025-2026 budget proposal includes $7.5 million to invest in more quality investment projects (QIP) for long-term care facilities.

“Residents at nearly 100 long-term care facilities across the Commonwealth positively benefitted from participating in quality investment pilot projects over the past two years,” said Secretary of Health Dr. Debra Bogen. “Continuing to invest in these efforts benefit both the residents living in the facilities and the health care professionals who are dedicated to delivering the care older adults rightfully deserve.”

Speakers Include:
Amy Wagaman, Senior Vice President of Operations for Country Meadows
Dr. Debra Bogen, DOH Secretary
Gabrielle Szymanski, Special Assistant to the Secretary of Aging

MIL OSI USA News –

March 19, 2025
MIL-OSI USA: Risch, Lankford Introduce Bill to Protect American Farmland from Bad Actors
US Senate News:
Source: United States Senator for Idaho James E Risch

WASHINGTON – U.S. Senators Jim Risch (R-Idaho), James Lankford (R-Okla.), Thom Tillis (R-N.C.), and Michael Bennet (D-Colo.) today introduced the Security and Oversight of International Landholdings (SOIL) Act to enhance oversight and transparency over foreign purchases of American agricultural land that threaten national security.

“America has some of the best farmland in the world, and it would be a grave mistake to allow Communist China to take ownership of this valuable resource,” said Risch. “The SOIL Act will provide strict guidance and oversight to prevent bad actors, like China and Russia, from purchasing our agricultural land—particularly land near U.S. military installations.”

“China continues to buy up American farm land, steal our patents, and expand their authoritarian world view. America will demonstrate to the world our values and maintain our economic and military strength to assure the globe has the best opportunity for freedom. No one in China should doubt America’s resolve and commitment to liberty,” said Lankford.

The SOIL Act deters criminal investment in US agriculture by:
- Requiring the Committee on Foreign Investment in the United States (CFIUS) to review agriculture real estate purchases by certain foreign entities;
- Banning federal assistance for certain foreign-held real estate holdings; and
- Broadening disclosure requirements for land purchases made by foreign entities.
MIL OSI USA News –
March 19, 2025
MIL-OSI Security: Wagoner County Resident Sentenced for Two Counts of Second-Degree Murder

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

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nicholas Lapez Scarborough, age 32, of Redbird, Oklahoma, was sentenced to 405 months in prison for two counts of Second Degree Murder in Indian Country.

The charges arose from an investigation by the Wagoner County Sheriff’s Office and the Federal Bureau of Investigation.

On May 6, 2024, Scarborough pleaded guilty to two counts of Murder in Indian Country—Second Degree. According to investigators, on October 24, 2023, Scarborough intentionally stabbed two individuals with a steak knife. One victim died after completing an emergency call for help. A second victim died two weeks later from injuries sustained in the attack. The crimes occurred in Wagoner County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.

The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Scarborough will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

Assistant U.S. Attorney Michael E. Robinson represented the United States.

MIL Security OSI –

March 19, 2025
MIL-OSI Security: Washington State Resident Sentenced for Receiving Child Sexual Exploitation Material

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

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christopher Dean Robinson-Holm, age 26, of Lynnwood, Washington, was sentenced to 70 months in prison for one count of Receipt of Certain Material Involving the Sexual Exploitation of a Minor. This term of imprisonment will be followed by 10 years of supervised release.

The charge arose from an investigation by Homeland Security Investigations.

On August 26, 2024, Robinson-Holm pleaded guilty to the charge. According to investigators, in June 2022, Robinson-Holm knowingly received a visual depiction of a minor engaging in sexually explicit conduct. The subject of that image resided in the Eastern District of Oklahoma.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report through the National Center for Missing & Exploited Children (NCMEC) at 1-800-843-5678 or online at www.cybertipline.com, through the FBI at 1-800-CALL-FBI (1-800-225-5324), or through Homeland Security Investigations at 1-877-4-HSI TIP.

The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Robinson-Holm will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

Assistant U.S. Attorney Caila M. Cleary represented the United States.

MIL Security OSI –

March 19, 2025
MIL-OSI Security: Tulsa Resident Pleads Guilty to Robbery

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

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Wilmer Medardo Guerrero, age 24, of Tulsa, Oklahoma, entered a guilty plea to one count of Robbery in Indian Country.

The Indictment alleged that on December 18, 2020, Guerrero took and attempted to take items of value from the person and presence of another by force, violence, and intimidation.

The crime occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.

The charge arose from an investigation by the Federal Bureau of Investigation, the Ada Police Department, and the District 22 Task Force.

The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Guerrero will remain in the custody of the United States Marshals Service pending sentencing.

Assistant U.S. Attorneys Michael E. Robinson and T. Cameron McEwen represented the United States.

MIL Security OSI –

March 19, 2025
MIL-OSI Security: Former Long Island Business Owner Charged with Orchestrating $22 Million Health Care Fraud, Kickback and Money Laundering Scheme

Source: Office of United States Attorneys

Defendant Took Advantage of Elderly Immigrants from the Former Soviet Union to Solicit Bribes from Health Care Providers and Defraud Medicare of Millions of Dollars

Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging Oleg Beretsky with conspiring to commit health care fraud, violating the federal Anti-Kickback Statute, conspiring to violate the Anti-Kickback Statute and money laundering conspiracy. Beretsky was arrested this morning in Naples, Florida. He will be arraigned in the Eastern District of New York at a later date.

John J. Durham, United States Attorney for the Eastern District of New York, Naomi Gruchacz, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Michael Alfonso, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI New York), and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the arrest and charges.

“As alleged, elderly individuals trusted the defendant to help them with their health care decisions. Rather than look out for the interests of some of the most vulnerable members of our community, he sold access to those who trusted him to the highest bidder,” stated United States Attorney Durham. “The defendant compounded his crimes by encouraging doctors and health care providers who became part of his scheme to cheat Medicare by billing for work that was not needed or never performed. My Office is committed to protecting both patients and taxpayers from this terrible form of greed.”

Mr. Durham expressed his appreciation to HSI’s Fort Myers, Florida, office and the New York City Police Department for their assistance on the case.

“Violations of the Anti-Kickback Statute can divert much-needed federal health care program funds and corrupt the medical decision-making process,” stated HHS-OIG Special Agent in Charge Gruchacz. “HHS-OIG works diligently with our law enforcement partners to investigate allegations that owners and other providers engage in fraud schemes that prioritize greed over the provision of appropriate health care services to patients.”

“The defendant and his co-conspirators are accused of pocketing more than $12 million while exploiting the unknowing, innocent public, including victims from immigrant communities,” stated HSI New York Special Agent in Charge Alfonso. “As alleged, he took advantage of people with whom he had forged relationships — only to manipulate them into using certain doctors and services for his lucrative benefit. HSI New York’s El Dorado Task Force is unmatched in its ability to draw from the strengths and equities of all partners involved, with one unified goal being the safety and security of Americans. I commend our partners, including HHS-OIG, IRS-CI, NYPD and HSI’s Fort Meyer’s personnel, for placing the wellbeing of the public above all else.”

“Millions of dollars were stolen from the American benefits system, and Oleg Beretsky is charged with the crime. He’s accused of taking advantage of a vulnerable population and funneling stolen Medicare money into his and his co-conspirators’ pockets. IRS-CI is charged with securing trust in the American financial system and actively investigates anyone looking to make a quick buck by stealing from the American public,” stated IRS-CI Special Agent in Charge Chavis.

As alleged in court filings, from January 2017 to April 2024, Beretsky and co-conspirators engaged in a health care fraud, kickback and money laundering scheme. Beretsky was the owner of Obest, Inc., a company in Plainview, New York, that purported to provide health care professionals with billing, consulting and support services. In reality, Obest’s principal business consisted of referring elderly Medicare patients to doctors and other health care professionals in exchange for kickbacks and bribes. Many of these patients were immigrants from the former Soviet Union, who Beretsky identified through an employee of a nonprofit social service agency that provided housing and other services to senior citizens in Brooklyn and Queens. Beretsky cultivated relationships with many of these patients, which he used to gain control over decisions regarding their health care providers. Beretsky then used that control to ensure that only doctors and other providers—including social workers, pain specialists and diagnostic companies—who were willing to pay him would have access to the patients. On at least one occasion, Beretsky threatened a patient who wanted to continue seeing a provider who had stopped paying illegal kickbacks to the defendant.

The fee charged by Beretsky was typically based either on how many patients Beretsky referred to the provider or how much Medicare reimbursed the provider for services purportedly rendered to the patients. To generate more fees for himself and his co-conspirators, Beretsky often encouraged or directed providers to bill Medicare for patients who did not need the services those providers rendered, and in some cases, services that were not rendered at all. In total, doctors and providers who participated in Beretsky’s scheme billed more than $22 million in false and fraudulent claims to Medicare. Of that more than $22 million, Medicare paid more than $12.4 million in claims, which was distributed to Beretsky and his co-conspirators. To hide the illegal source of funds Beretsky received from the conspiracy, Beretsky frequently directed co-conspirators to pay his relatives in cash and transferred money to multiple accounts held in the names of his family members.

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Beretsky faces up to up to 20 years in prison on the money laundering conspiracy count; up to 10 years each on the health care fraud conspiracy and kickback counts; and up to five years on the kickback conspiracy count.

The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Joshua B. Dugan is in charge of the prosecution with the assistance of Paralegal Specialists Liam McNett and Timothy Migliaro.

The Defendant:

OLEG BERETSKY
Age: 67
Naples, Florida

E.D.N.Y. Docket No. 25-CR-91 (RPK)

MIL Security OSI –

March 19, 2025
MIL-OSI Security: Illegal alien indicted in multi-year smuggling conspiracy

Source: Office of United States Attorneys

LAREDO, Texas – A 26-year-old Mexican national illegally residing in Laredo has been charged with conspiracy to smuggle and harbor illegal aliens, announced U.S. Attorney Nicholas J. Ganjei.

Originally charged by criminal complaint, Giovana Lozano Hernandez is expected to appear for her arraignment before a U.S. magistrate judge in the near future.

The charges allege she was an alien smuggler in an ongoing conspiracy. Law enforcement took her into custody Feb. 19.

Hernandez allegedly used multiple cellular devices to facilitate the smuggling conspiracy. One such failed event allegedly occurred Oct. 28, 2024. Authorities identified numerous digital images of paper ledgers and illegal aliens in relation to that event on the devices, according to the charges. There were also numerous voice messages allegedly exchanged between Hernandez and coconspirators detailing the human smuggling activity including numerous illegal aliens who had already been transported and housed for whom there needed to be financial accountability. Law enforcement also found video messages depicting the transportation of illegal aliens, according to the allegations.

If convicted, Hernandez faces up to 10 years in prison and a $250,000 maximum possible fine on each of the two counts in the indictment.

Immigration and Customs Enforcement – Homeland Security Investigations, FBI, Border Patrol and Texas Department of Public Safety conducted the investigation with the assistance of the Laredo Police Department and Immigration and Customs Enforcement – Enforcement and Removal Operations. Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case.

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

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

MIL Security OSI –

March 19, 2025
MIL-OSI Security: Colorado Woman Found Guilty After Using Deceased Person’s Identity to Cash Counterfeit Checks

Source: Office of United States Attorneys

TULSA, Okla. – A federal jury today convicted Sarai Jamila Nyasha Freeman, 41, of Aurora, Colorado today for two counts of Passing and Uttering Counterfeit Obligations and Securities, two counts of Aggravated Identity Theft, and Failure to Appear.

According to court documents, Freeman was provided an airline ticket to appear for trial in December 2024. The day trial was set to begin, Freeman failed to appear resulting in a warrant being issued for her arrest.

Evidence presented at trial shows that in January 2020, Freeman fraudulently used a deceased person’s identity to cash two counterfeit U.S. Treasury Checks.

Evidence showed that in 2023, Freeman pled guilty to four counts of uttering forged documents in 2019 in Tulsa County. In the state case, court documents further showed that two bench warrants were issued for her appearance.

Freeman was taken into custody where she will await sentencing at a later date.

The U.S. Department of the Treasury Office of Inspector General, the Treasury Inspector General for Tax Administration,
and Wal-Mart Global Investigations investigated the case, and the U.S. Marshals Service assisted in the arrest.

Assistant U.S. Attorneys David D. Whipple and Charles Greenough prosecuted the case.

MIL Security OSI –

March 19, 2025
MIL-OSI USA: Former Principals of Aerospace Start-Up Charged with Fraud and Tax Crimes

Source: US State of North Dakota

An indictment was unsealed today charging five former principals of Theia Group Inc., a Washington, D.C.-based aerospace start-up company, with conspiracy and fraud.

According to the indictment, Erlend Olson, John Gallagher, Stephen Buscher, Joseph Fargnoli, and Jamil Swati held various executive positions at the company, including chief executive officer, executive vice president, chief financial officer, chief technology officer, and head of strategic investment, respectively. They allegedly perpetrated a multi-year scheme to defraud investors and lenders out of $250 million, and Olson evaded more than $3.9 million in personal federal income taxes.

According to the indictment, Theia planned to launch 112 satellites starting in 2022 at a cost of $10 billion to $15 billion. Theia’s principals allegedly originally planned to raise the requisite funds from various nation-states by promising perpetual data and analytics for an upfront payment of $2 billion. However, from Theia’s founding in 2015 through its placement into receivership in 2021, Theia was allegedly unsuccessful in obtaining any funding except for approximately $250 million in loans and investments received from institutional and individual investors and lenders. To secure the funding, Olson, Gallagher, Buscher, Fargnoli, and Swati’s fraud scheme allegedly included making materially false statements about revenue from non-existent government contracts, providing multiple false financial statements, including a fake $6 billion escrow account statement, and making false representations about Theia’s technical capabilities.

The indictment further alleges that the IRS assessed over a million dollars in taxes, penalties, and interest against Olson for tax years 2009 through 2011, which Olson acknowledged in 2018. Instead of paying the outstanding debt to the IRS, which he acknowledged he owed, Olson allegedly directed his compensation from Theia to a nominee entity. Olson then allegedly used the nominee entity to pay personal expenses such as a private jet membership, $64,500 annual rent payments for his home, a new Land Rover, personal debts, and a pair of condominiums in Las Vegas. Olson now allegedly owes $1.6 million to the IRS related to those years. In addition, Olson allegedly also used the nominee entity to conceal his income from the IRS for 2018 through 2020.

Olson, Gallagher, Buscher, Fargnoli, and Swati are each charged with one count of conspiracy to commit wire and mail fraud for the overall scheme, and additionally charged with multiple wire or mail fraud counts arising from their various misrepresentations to investors. Olson is also charged with four counts of attempted tax evasion.

If convicted, they each face a maximum penalty of 20 years in prison for conspiracy and for each wire fraud or mail fraud count. Olson would face a maximum penalty of five years in prison for each tax evasion count. Each would also face a period of supervised release, restitution, monetary penalties, and forfeiture. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Interim U.S. Attorney Edward R. Martin Jr. for the District of Columbia made the announcement.

IRS Criminal Investigation and the FDIC Office of Inspector General are investigating the case.

Senior Litigation Counsel Nanette Davis and Trial Attorney Alexis Hughes of the Tax Division, and Assistant U.S. Attorneys Rebecca Ross and Joshua Gold for the District of Columbia are prosecuting the case.

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

MIL OSI USA News –

March 19, 2025
MIL-OSI Security: Texas Man Indicted for Violation of the Federal Controlled Substances Act

Source: Office of United States Attorneys

NEW ORLEANS, LOUISIANA – Acting United States Attorney Michael M. Simpson announced that EDDIE MARTINEZ (“MARTINEZ”), age 44, of Texas, was indicted on March 13, 2025 for Possession with Intent to Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).

According to the filed indictment, MARTINEZ allegedly possessed with intent to distribute five hundred (500) grams or more of a mixture and substance containing a detectable amount of cocaine. If convicted, MARTINEZ faces a mandatory minimum term of imprisonment of five years and up to a maximum term of imprisonment of 40 years, a fine of up to $5,000,000.00, and at least four years of supervised release following any term of imprisonment.

The defendant also faces payment of a $100 mandatory special assessment fee.

Acting U.S. Attorney Simpson reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.

The case was investigated by Homeland Security Investigations and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney Briana Williams of the Narcotics Unit.

MIL Security OSI –

March 19, 2025
MIL-OSI Security: Former Principals of Aerospace Start-Up Charged with Fraud and Tax Crimes

Source: United States Attorneys General

An indictment was unsealed today charging five former principals of Theia Group Inc., a Washington, D.C.-based aerospace start-up company, with conspiracy and fraud.

According to the indictment, Erlend Olson, John Gallagher, Stephen Buscher, Joseph Fargnoli, and Jamil Swati held various executive positions at the company, including chief executive officer, executive vice president, chief financial officer, chief technology officer, and head of strategic investment, respectively. They allegedly perpetrated a multi-year scheme to defraud investors and lenders out of $250 million, and Olson evaded more than $3.9 million in personal federal income taxes.

According to the indictment, Theia planned to launch 112 satellites starting in 2022 at a cost of $10 billion to $15 billion. Theia’s principals allegedly originally planned to raise the requisite funds from various nation-states by promising perpetual data and analytics for an upfront payment of $2 billion. However, from Theia’s founding in 2015 through its placement into receivership in 2021, Theia was allegedly unsuccessful in obtaining any funding except for approximately $250 million in loans and investments received from institutional and individual investors and lenders. To secure the funding, Olson, Gallagher, Buscher, Fargnoli, and Swati’s fraud scheme allegedly included making materially false statements about revenue from non-existent government contracts, providing multiple false financial statements, including a fake $6 billion escrow account statement, and making false representations about Theia’s technical capabilities.

The indictment further alleges that the IRS assessed over a million dollars in taxes, penalties, and interest against Olson for tax years 2009 through 2011, which Olson acknowledged in 2018. Instead of paying the outstanding debt to the IRS, which he acknowledged he owed, Olson allegedly directed his compensation from Theia to a nominee entity. Olson then allegedly used the nominee entity to pay personal expenses such as a private jet membership, $64,500 annual rent payments for his home, a new Land Rover, personal debts, and a pair of condominiums in Las Vegas. Olson now allegedly owes $1.6 million to the IRS related to those years. In addition, Olson allegedly also used the nominee entity to conceal his income from the IRS for 2018 through 2020.

Olson, Gallagher, Buscher, Fargnoli, and Swati are each charged with one count of conspiracy to commit wire and mail fraud for the overall scheme, and additionally charged with multiple wire or mail fraud counts arising from their various misrepresentations to investors. Olson is also charged with four counts of attempted tax evasion.

If convicted, they each face a maximum penalty of 20 years in prison for conspiracy and for each wire fraud or mail fraud count. Olson would face a maximum penalty of five years in prison for each tax evasion count. Each would also face a period of supervised release, restitution, monetary penalties, and forfeiture. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Interim U.S. Attorney Edward R. Martin Jr. for the District of Columbia made the announcement.

IRS Criminal Investigation and the FDIC Office of Inspector General are investigating the case.

Senior Litigation Counsel Nanette Davis and Trial Attorney Alexis Hughes of the Tax Division, and Assistant U.S. Attorneys Rebecca Ross and Joshua Gold for the District of Columbia are prosecuting the case.

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

MIL Security OSI –

March 19, 2025
MIL-OSI USA: Rosen Introduces Bipartisan Bill to Bring More Doctors to Nevada

US Senate News:

Source: United States Senator Jacky Rosen (D-NV)

Every County In Nevada Is Experiencing A Shortage Of Medical Professionals
WASHINGTON, DC – U.S. Senators Jacky Rosen (D-NV) and John Boozman (R-AR) introduced a bipartisan bill to bring more doctors to areas currently facing severe shortages, like Nevada. The bipartisan Physicians for Underserved Areas Act would revise the graduate medical education process to increase the likelihood of areas with physician shortages getting more medical residency slots after hospital closures take place elsewhere in the country. Every county in Nevada is experiencing a shortage of medical professionals, and in 2024, Nevada was ranked 45th in the nation with regard to the availability of physicians per 100,000 residents.
“The dire shortage of doctors in our state is hurting Nevadans’ ability to get quality medical care,” said Senator Rosen. “We know that when more doctors train in our communities, they are more likely to stay here. That’s why I’m working across the aisle to bring more doctors to Nevada by increasing medical residency slots. I’ll keep working on commonsense solutions to ensure families can access affordable, quality health care.”
“Rural communities in Arkansas and across the country continue to face health care challenges starting with a lack of available medical providers,” said Senator Boozman. “I’m proud to help lead this bipartisan solution to ensure more medical school graduates practice in the communities that desperately need them so all Americans, no matter where they live, get the care they need.”
“At the Kirk Kerkorian School of Medicine at UNLV, we recognize the critical need to expand Graduate Medical Education (GME) opportunities to address physician shortages in underserved areas,” said Marc J. Kahn, Dean of the Kirk Kerkorian School of Medicine at the University of Nevada, Las Vegas. “The Physicians for Underserved Areas Act is a crucial step toward ensuring that residency slots are redistributed in a way that prioritizes communities with the greatest need. By streamlining the process and expediting the timeline for GME slot reallocation, this legislation will help fill gaps in healthcare access and strengthen our medical workforce. We fully support this bipartisan effort led by Senator Rosen and Senator Boozman and appreciate their commitment to improving healthcare for all.”
“Nevada continues to struggle with expanding residency positions to address enduring physician workforce shortages,” said Dr. John Packham, Associate Dean of the University of Nevada, Reno’s School of Medicine. “This important legislation will support efforts by medical schools and teaching hospitals across the state to expand graduate medical education opportunities to prepare and retain tomorrow’s doctors in Nevada.”
“It is critically important for a clear and immediate pathway to exist from medical school to residency in areas with physician shortages or that are otherwise underserved,” said Dr. Renee Coffman, Co-Founder and President of Roseman University. “Without adequate GME spots, future doctors have no practical ability to stay in communities that need them most. Roseman University thanks Senators Rosen and Boozman for the Physicians for Underserved Areas Act and for their continued efforts in supporting the growth of the health care workforce.”
“The Nevada Primary Care Association, representing the state’s Community Health Centers, is grateful to Senator Rosen for re-introducing this important legislation,” said Nancy Bowen, CEO of the Nevada Primary Care Association. “Nevada has been blessed with rapid population growth throughout its modern history, but this has come at a cost of persistent and profound health provider shortages. The Physicians for Underserved Areas Act is an important step to increasing the number of providers who are trained in the state and stay to deliver health care to our residents.”
“The National Rural Health Association strongly supports the Physicians for Underserved Areas Act as a critical step in addressing physician shortages in rural communities,” said Alan Morgan, CEO of the National Rural Health Association. “By ensuring that unused residency slots are swiftly redistributed to hospitals that need them most, this bill will help strengthen the rural health workforce and expand access to care in underserved areas. We applaud Senators Rosen and Boozman for their leadership in advancing policies that prioritize rural patients and providers, and we urge Congress to move quickly on this important legislation.”
Senator Rosen is working to address Nevada’s health care professional shortage and improve medical care access in the state. Last week, she introduced the bipartisan REDI Act to increase the number of doctors and dentists in underserved areas by allowing them to defer student loan payments without interest until the completion of their residency or internship programs. Last month, she introduced the bipartisan Train More Nurses Act to address the nursing shortage affecting communities across the nation. Rosen’s bipartisan Maximizing Health Outcomes through Better Investments in Lifesaving Equipment for (MOBILE) Health Care Act was signed into law in 2022 to allow community health centers to use federal funds to establish new mobile health care units to increase access to health care services in rural and underserved communities.

MIL OSI USA News –

March 19, 2025
MIL-OSI USA: Senator Reverend Warnock Rebukes Deputy Treasury Secretary Nominee’s Perception of Georgians on Medicaid, Opposes Nomination

US Senate News:

Source: United States Senator Reverend Raphael Warnock – Georgia

Senator Reverend Warnock Rebukes Deputy Treasury Secretary Nominee’s Perception of Georgians on Medicaid, Opposes Nomination

Following Dr. Michael Faulkender’s previous statements that Georgians on Medicaid need to be “self-sufficient,” Senator Reverend Warnock highlighted the range of Georgians who rely on Medicaid, including children, working people, seniors in nursing homes, and one in 10 veterans

Faulkender is nominated by the Trump Administration to be the Deputy Treasury Secretary

Senator Reverend Warnock highlighted how Medicaid recipients receive more scrutiny than Elon Musk, who has received $38 billion in government grants, loans, and subsidies

Earlier this year, Senator Reverend Warnock also opposed Scott Bessent’s nomination to become Treasury Secretary, due to Bessent’s steadfast commitment to protecting tax cuts for the nation’s wealthiest

Senator Reverend Warnock during the hearing: “Who does he [Dr. Michael Faulkender] think should be self-sufficient? Should children and seniors in nursing homes, veterans? One in 10 veterans are enrolled in Medicaid. People with mental illness or substance [use] Who is he talking about?”

Washington, D.C. – Today, U.S. Senator Reverend Raphael Warnock (D-GA) pushed back against the misperception of Medicaid recipients during a Senate Finance Executive Session before opposing Dr. Michael Faulkender’s nomination to become the Deputy Treasury Secretary in the Trump Administration. Senator Warnock cited several issues with Faulkender’s nomination, most notably Faulkender’s perception of Americans that are on Medicaid. Last week, Faulkender suggested Georgia Medicaid recipients, including children, veterans, seniors in nursing homes, people struggling with addiction, and people working full time simply needed to become “self-sufficient.”

“I am disappointed that Dr. Faulkender does not seem understand or care about the concerns of hard-working Georgia families, the people I know,” said Senator Reverend Warnock. “When we talked about Washington Republicans plans to cut Medicaid, and I asked the nominee his thoughts, he suggested that people just need to “Be self-sufficient” and just get better jobs with better benefits.”

After defending the many Georgians and millions of hardworking Americans on Medicaid, Senator Warnock highlighted that Elon Musk, the leader in slashing government spending, accepted over $38 billion in government contracts, loans, subsidies and tax credits.

“These folks have jobs and responsibilities, they are construction workers, restaurant workers, home caregivers, farmhands, and they are doing exactly want the nominee wants them to do, but he and Washington Republicans want to kick them off of Medicaid anyway,” continued Senator Warnock. “Who else does this nominee think should be self-sufficient? I wonder if he thinks Elon Musk should be self-sufficient? He has received $38 billion in government contracts, government loans, government subsidies and tax credits.”

Earlier this year, Senator Warnock also opposed now Treasury Secretary Scott Bessent’s nomination. During the hearing Senator Warnock grilled Bessent on his glaring commitment to tax cuts for exclusively the nation’s wealthiest. Bessent indicated there wasn’t any high level of income which he wouldn’t continue to provide tax cuts for, including Americans making upwards to $1 billion.

Senator Warnock has always been a champion for tax cuts, credits, and programs that support working families and fought to make sure the nation’s wealthiest pay their fair share. Senator Warnock fought to secure the Expanded Child Tax Credit as part of the American Rescue Plan and has advocated to make the Expanded CTC permanent in the effort to slash child poverty in Georgia and across America.

Watch the Senator’s full remarks HERE.

See below a transcript of Senator Warnock’s remarks on his vote opposing Michael Faulkender’s nomination:

Senator Reverend Warnock (SRW): “A week like this in Washington a reminds me of why I return every week to my pulpit. Spending time with people in my church and all across my community. They are the folks who keep me grounded. These are the folk who are seeing their paychecks buy less and less, while the rich get richer and the poor get poorer. These are ordinary people who I am thinking about when I consider whether Congress should spend trillions of dollars on a huge tax cut that overwhelmingly benefits millionaires and billionaires while the entire half of working families pick up the tab through cuts to their health care. In addition to that, blow a $4.5 trillion hole in the debt.”

“I am disappointed that Dr. Faulkender does not seem understand or care about the concerns of hard-working Georgia families, the people I know. When we talked about Washington Republicans plans to cut Medicaid, and I asked the nominee his thoughts, he suggested that people just need to “Be self-sufficient” and just get better jobs with better benefits.”

“I was raised by a dad who poured into me a serious work ethic, so I believe in self-sufficiency. Almost all of the adults on Medicaid are either working, or in school, or they are caregivers. If they can work, they do work. These folks have jobs and responsibilities, they are construction workers, restaurant servers, home caregivers, farmhands, and they are doing exactly want this nominee wants them to do, but he and Washington Republicans want to kick them off of Medicaid anyway. Who else does this nominee think should be self-sufficient? I wonder if he thinks Elon Musk should be self-sufficient?”

“He has received $38 billion in government contracts, government loans, government subsidies and tax credits. Who does he think should be self-sufficient? Should children? And seniors in nursing homes, veterans? One in 10 veterans are enrolled in Medicaid. People with mental illness or substance [use]? Who is he talking about?”

“Let’s be clear. If folks want to have a serious, bipartisan conversation about reducing our debt, I am all in on the conversation. I am deeply worried about the debt that we will leave our children and our grandchildren, as the father of two young children myself. If you want to have a conversation about that, I am ready. If you want to have a conversation about lowering health care costs, I am ready to do it in a bipartisan way. But, I am unwilling to give a hand out to the wealthiest people in our country while blowing a huge hole in the debt.”

MIL OSI USA News –

March 19, 2025

MIL-OSI USA: Murray, DeLauro, Baldwin Demand Detailed Answers on Trump Admin’s Sweeping Mass Firings at Department of Education

US Senate News:

Source: United States Senator for Washington State Patty Murray

Top appropriators press McMahon on how the Department will carry out requirements of federal law and its critical responsibilities despite far-reaching, illegal firings of approximately 50% of staff

Washington, D.C. — Today, Senator Patty Murray (D-WA), Senate Appropriations Committee Vice Chair, Congresswoman Rosa DeLauro (D-CT-03), Ranking Member of the House Appropriations Committee and the Labor, Health and Human Services, and Education Subcommittee, and Senator Tammy Baldwin (D-WI), Ranking Member of the Senate Appropriations Labor, Health and Human Services, and Education Subcommittee, sent a letter to the Department of Education (ED) demanding detailed answers about the mass firings it has conducted and how it is carrying out requirements of federal law and its critical responsibilities despite the sweeping reductions in force.

“We write to request your immediate response to questions we have raised about actions taken by the Department of Education and additional questions related to the massive reduction in force announced on March 11,” write the lawmakers. Citing the wide scope of responsibilities the Department is required by bipartisan laws to undertake to help students learn and thrive, the top appropriators in the Senate and House add: “Recent actions of the Department appear to undermine the Department’s obligation under these laws.”

“The staff at the Department provide real services that impact the daily lives of students and their families from enforcing students’ civil rights and providing transparent information on how our schools are doing to processing critical aid such as Pell Grants to helping low-income students all over our nation attend college and further their careers,” Murray, DeLauro, and Baldwin write. “Firing the people that ensure states, school districts, and institutions of higher education live up to their legal obligations is neither efficient nor accountable.”

In the letter, the lawmakers note that the Department’s staffing levels have largely remained flat in recent years despite significant growth in the programs it administers and the responsibilities it carries out. They write that the mass layoffs and other detrimental actions risk major reductions in support for and oversight of our nation’s K-12 schools and institutions of higher education and threaten vital support for students with disabilities, access to Pell Grants and other financial aid, oversight of student loan servicers, scrutiny of for-profit colleges, and more.

The letter follows an earlier March 6 letter the lawmakers sent alongside colleagues demanding answers about the chaotic, harmful actions taken by ED since January—which the Department has yet to respond to.

“Given the profound change to staff, budgets, and agency operations promised by this administration, it is critical that we receive additional information on these staffing reductions and changes to agency operations,” conclude Murray, DeLauro, and Baldwin before posing a series of detailed questions. “The President’s disregard for appropriations and other laws and the need for stability and productivity in government creates an imperative for the Department to provide accurate, timely responses on its use and planned use of taxpayer resources provided by the laws passed by Congress.”

Full text of the letter is available HERE and below:

The Honorable Linda McMahon Secretary U.S. Department of Education 400 Maryland Avenue, SW Washington, DC 20202

Dr. Matthew Soldner Acting Director Institute of Education Sciences 550 12th Street, SW Washington, DC 20024

Dear Secretary McMahon and Acting Director Soldner:

We write to request your immediate response to questions we have raised about actions taken by the Department of Education (“the Department”) and additional questions related to the massive reduction in force announced on March 11, 2025. We believe the Department plays a critical role in fulfilling the purpose of our Constitution to “promote the general welfare of the United States” and strongly support the purposes Congress established for the Department to ensure equal access to educational opportunity, including by administering education programs and carrying out important functions established in law and funded each year by Congress. However, recent actions of the Department appear to undermine the Department’s obligation under these laws, despite your statement on March 11th that “Today’s reduction in force reflects the Department of Education’s commitment to ensuring efficiency, accountability, and ensuring that resources are directed where they matter most: students, parents and teachers.”^[1]

According to the Department’s most recent Congressional justifications and prior to this administration’s personnel actions, staffing levels at the Department were largely unchanged from 2016 despite the fact that the discretionary budget for the Department’s programs increased by 16.5 percent and the federal student loan portfolio grew by more than 30 percent between 2016 and 2024.^[2] Further, the Department has the smallest staff of the 15 cabinet agencies despite representing the government’s third largest discretionary budget after the Department of Defense and the Department of Health and Human Services.^[3] The Department also said that it had been tasked with “addressing some of the greatest challenges facing public education today: academic acceleration, students’ well-being and mental health, chronic absenteeism, school safety, and emerging and changing pathways from high school to college and career,” and, “modernizing and improving the entire student aid process to better help students and families, as well as implementing major legislation, including the FAFSA Simplification Act and FUTURE Act.”^[4] The staff at the Department provide real services that impact the daily lives of students and their families from enforcing students’ civil rights and providing transparent information on how our schools are doing to processing critical aid such as Pell Grants to helping low-income students all over our nation attend college and further their careers. Firing the people that ensure states, school districts, and institutions of higher education live up to their legal obligations is neither efficient nor accountable.

We are very concerned that the Department’s staffing reductions will result in significant reductions in the support and oversight of critical Elementary and Secondary Education Act (ESEA) requirements for state and local educational agencies (SEAs/LEAs) to provide school report cards on the achievement of students, qualifications of teachers, and per-pupil spending in understandable and uniform formats. This is critical information parents, families, and communities need to have about their public schools and public school options that might be available. The ESEA also requires states to use a portion of Title I-A for grants to implement school support and improvement activities in the lowest performing schools and in schools with historically underserved student subgroups performing significantly lower than other subgroups of students, including through evidence-based interventions. However, the Department’s recent elimination of federally supported assistance used by SEAs and LEAs to effectively implement these requirements and limited state capacity will likely prevent effective implementation in many states and schools .^[5]^[6]^[7]^[8] When combined with these massive staffing reductions, we are concerned that the Department’s ability to monitor or support implementation of the law will be nearly non-existent, leaving students and families with the long-term consequences for the Department’s short-sighted actions.

We are concerned that students with disabilities will also be harmed by the Department’s actions. The Department is required under the Individuals with Disabilities Education Act (IDEA) to monitor and support effective implementation of IDEA requirements. This includes the evaluation of results and outcomes for infants, toddlers, children and youth with disabilities through the State Performance Plan and Annual Performance Report processes intended to improve results and outcomes for more than seven million children with disabilities.^[9] It is not clear to us how effective oversight will be conducted at the significantly lower staffing levels created by the Department’s recent actions.

The Department is also required by law to operate federal student aid programs and conduct oversight and enforcement of colleges and universities to ensure access to postsecondary education for our nation’s students and to help make college more affordable for American families.^[10] Some of these responsibilities include ensuring students can apply for Pell grants and other financial aid to go to college, ensuring colleges and universities have the information and resources they need to disburse such aid to students, ensuring colleges and universities protect students’ civil rights, certifying universities compliance with administrative and fiscal rules to ensure low-quality colleges and universities cannot participate in Title IV aid programs, overseeing and approving accreditors, and protecting students and taxpayers from fraudulent universities that leave students with worthless degrees and debt. The vast reduction in force across the office of Federal Student Aid (FSA), the Office of General Counsel (OGC), and other offices puts all of this work in jeopardy.

However, your stated commitment to ensuring that resources are directed where they matter most rings hollow to us. Our actions should absolutely start with supporting students, just as we have directed through our federal education laws. The guiding purpose is to direct federal resources so all students have access to a high-quality education and schools close achievement gaps. For example, our laws include maintenance of effort requirements that generally prohibit SEAs and LEAs from reducing their support for education after receiving federal funds and only use federal funds to supplement, not supplant other funds.^[11] It’s the Department’s statutorily required job to enforce these responsibilities.^[12]^[13] Moreover, ESEA requires school districts receiving Title I-A funds to reserve a sufficient amount of these funds to identify and meet the needs of students experiencing homelessness. The Department has taken important steps in recent years to increase oversight of this provision and planned additional monitoring and technical assistance in fiscal year (FY) 2025.^[14] Without the effective oversight and support of Department staff, we are concerned that students may not benefit from the additional federal resources Congress requires to be made available to identify and meet their needs.

The Office for Civil Rights (OCR) enforces the nation’s civil rights laws in federally-funded education programs. Disability discrimination is typically the most frequent complaint received by OCR.^[15] While OCR received the highest number of complaints in its history last year—and nearly three times the level in 2009—its staffing declined from 629 to 588 during this period.^[16] Reporting also indicates that a change in priorities at OCR since January 20, 2025, has stalled work on investigations of disability complaints, preventing timely consideration of such complaints and appropriate remedies.^[17] We are greatly concerned that the Department’s personnel actions will only add to delays in remedies that would provide students with disabilities the access to free appropriate education in the least restrict environment as required by federal law.

Given the profound change to staff, budgets, and agency operations promised by this administration, it is critical that we receive additional information on these staffing reductions and changes to agency operations.^[18] The President’s disregard for appropriations and other laws and the need for stability and productivity in government creates an imperative for the Department to provide accurate, timely responses on its use and planned use of taxpayer resources provided by the laws passed by Congress. Finally, we expect all of the questions below are ones the Department itself would have already considered before making significant staffing reductions. We request you provide written answers to the following questions as soon as possible, but not later than, March 21, 2025:

For each program office^[19] and in total by appropriation, please provide the number of staff terminated as a result of the March 11, 2025 reduction in force.
1. What are total expected savings in salaries and benefits in FY2025?
2. What share of the Department’s FY2024 budget do these savings represent?
3. How many remaining staff at the Department were assigned additional duties as a result of staffing reductions since January 20, 2025?
4. What is the average number of new duties assigned to remaining staff?
5. Please provide a complete list of office teams terminated as a result of the March 11, 2025 staffing reductions and other staffing reductions and the specific responsibilities of those terminated teams transferred to other office teams.

Please explain how the reduction in force announced on March 11, 2025 reflects a commitment to each of the following as claimed in Secretary McMahon’s statement accompanying the announcement:
1. How will these staff reductions ensure “that resources are directed where they matter most: to students, parents, and teachers”? Please provide three examples and the analysis supporting the expected changes.
2. How do these reductions reflect the Department’s “commitment to… accountability”? Please provide three examples and the analysis supporting the expected changes.
3. How do these reductions reflect the Department’s “commitment to efficiency”? Please provide three examples and the analysis supporting the expected changes. Further, please explain how the Department’s decisions to cancel evaluation contracts that help us understand what is working and terminate Department grants and contracts that support the development and implementation of evidence-based solutions to challenges identified by state and local education leaders promotes efficiency.

For the Office for Civil Rights, please provide the number of investigative staff on board after all of the Department’s personnel actions taken since January 20, 2025, including the March 11, 2025 reduction.
1. Please provide the number of such staff in total and for each region for the immediately preceding pay period to the date including January 20, 2025.
2. Please provide the average caseload for such staff for the immediately preceding pay period to the date including January 20, 2025 and after all of the Department’s personnel actions taken since January 20, 2025, including the March 11, 2025 reductions.
3. Please provide the number of complaints pending investigation as of March 11, 2025.
4. Please provide the number of resolution agreements requiring monitoring for implementation of corrective actions as of March 11, 2025 and September 30, 2024. What is the average caseload for such work as of September 30, 2024 and after implementation of staffing reductions?
5. Please describe any changes planned to OCR’s current Case Processing Manual and explain how each change would improve civil right protections for students attending federally-funded educational institutions.
6. Please describe any organizational changes planned and explain how each change would improve civil right protections for students attending federally-funded educational institutions.

In FY2024, the Department was directed to increase its monitoring efforts in order to ensure compliance with the ESEA. However, it appears, as of today, the Department has only completed three consolidated monitoring reports conducted in FY2024 and none in FY2025.^[20]
1. How many ESEA consolidated monitoring visits did the Department complete in FY2024? When can we expect to see those consolidated monitoring reports made public in order to understand compliance with the law?
2. How many ESEA consolidated monitoring visits is the Department conducting in FY2025? When can we expect to see those consolidated monitoring reports made public in order to understand compliance with the law?
3. How many ESEA consolidated monitoring visits is the Department planning to conduct in FY2026? When can we expect to see those consolidated monitoring reports made public in order to understand compliance with the law?
4. How many ESEA targeted monitoring visits is the Department conducting in FY2025? On what specific requirements of ESEA is the Department conducting this monitoring, and in how many states? If no such monitoring is planned, please explain why the Department is not conducting targeting monitoring necessary to understand compliance with the law?
5. How many ESEA targeted monitoring visits is the Department planning to conduct in FY2026? On what specific requirements of ESEA is the Department planning to conduct this monitoring, and in how many states? If no such monitoring is planned, please explain why the Department is not conducting targeting monitoring necessary to understand compliance with the law?
6. Please update the monitoring findings in the August 29, 2024 Report to Congress on school improvement^[21] to include the status of implementation of each of the actions required and recommendations in the report.

For the last five years, the Department has conducted an annual review in January of each state’s website to check whether the state has posted state and local report cards, reviewed a subset of ESEA requirements, and followed up with states on noncompliance with requirements. This information is essential to help parents and families understand the resources available at each school, the quality of the school’s educator workforce, and performance of their school.
1. Has the Department completed this review of each state’s website this year as it has for each of the past five years? If not, why not? If so, which subset of requirements was the focus of its review?
2. How many states has the Department identified the need for corrective actions and engaged states on its findings and plans to remedy noncompliance? If none, please explain why.
3. What is the expected timeline for redress of each instance of noncompliance?

The reauthorization of the Elementary and Secondary Education Act requires states that receive ESEA Title I funding to participate in state National Assessment of Educational Progress (NAEP) assessments in reading and mathematics at grades 4 and 8 every two years. This is important information for parents, families, state and local education policymakers, and federal policymakers on performance of students. In fact, has been cited by this administration as it argues the low NAEP test results are a result of Democrats diverting attention from American students.^[22^]

Please provide copies of all documents, electronic communications, records, and meeting notes of Department staff from January 20, 2025 through the date of this letter that relate to NAEP.
Please provide an assurance that none of the Department’s actions since January 20, 2025 were inconsistent with the requirements of National Assessment of Educational Progress Authorization Act.
Please provide an assurance that no federal funds will be used in contravention of the requirements of the National Assessment of Educational Progress Authorization Act.
Please provide an assurance that none of the Department’s actions since January 20, 2025 will alter the validity or reliability of NAEP assessments on the currently approved schedule, including the national assessment required under section 303 of the National Assessment of Educational Progress Authorization Act.
Please explain the unprecedented decision made earlier this year to cancel the scheduled long-term trend assessment outside of a period of a national emergency.

The Department has critical oversight, support, and technical assistance obligations under the IDEA.
1. Please provide the number of staff on-board whose job includes responsibilities for Results Driven Accountability activities as of the pay period including January 1, 2025 and the number of such staff upon full implementation of the Department’s March 11, 2025 staffing reductions.
2. Please identify the timeline for completion of the 2025 and 2026 determinations under IDEA.

The Foundations for Evidence-Based Policymaking Act of 2018 ushered in critical changes about the effective use of data and timely development and use of relevant evidence in federal policymaking. We have consistently supported the Department’s work, which has been recognized for its progress and achievement in this area.^[23]
1. Please provide the number of staff in the Grants Policy Office of the Office of Planning, Evaluation and Policy Development as of September 30, 2024 and after the staffing reductions announced on March 11, 2025. Please describe the specific actions supported by the revised staffing level to undertake work required to advance evidence based policy making, the inclusion of priorities for evidence in discretionary grant programs, support for the use of evidence in formula grant programs, and building of staff capacity to support a culture of evidence at the Department.
2. Please identify any changes to the staffing, policies, and work of the Evidence Leadership Group as compared to September 30, 2024. Please share analysis, as applicable, related to the Department’s belief that these changes will better promote the development and use of evidence in the Department’s policymaking and formula and discretionary grant programs.

In 2020, Congress passed the FAFSA Simplification Act to modernize and streamline the FAFSA to make it easier for students and their families to apply for federal financial aid to attend postsecondary education. Initial implementation of the law was flawed and led to a chaotic launch of the 2024-2025 FAFSA. Due to a lot of hard work by dedicated Department staff, the roll out of the 2025-2026 FAFSA went more smoothly, yet more remains to be done to ensure the effective implementation of the FAFSA Simplification Act and the FUTURE Act. Your staff indicated that the March 11^th reduction in force would not impact the ability of students to apply for financial aid,^[24] but in reality, it took very little time to show how cuts to Department staff could hurt the functionality of the FAFSA. On March 12^th, the FAFSA form had an unscheduled outage of approximately five hours and fired staff had limited access to their computers or phones to help get FAFSA back online.^[25] The Department stated the cause of the outage was ”Planned Maintenance,” but when the entire team responsible for systems supporting the FAFSA form^[26] was subject to the reduction in force, it calls into question whether that is an accurate representation of what happened to the FAFSA on March 12. Additionally, former Department staff have noted that among those fired on March 11^th was a team that worked on FAFSA completion workshops, among other responsibilities, also calling into question whether critical work to boost FAFSA completion rates under the previous administration will continue.^[27]
1. Please describe how the staff reductions will impact the ability of students to apply for financial aid or limit the full functionality of the FAFSA form, including FAFSA processing, school receipt of processed FAFSAs, processing of paper FAFSAs, and FAFSA correction functionality for applicants, institutions of higher education, and states.
2. Given the substantial cuts to Department staff who manage vendors that implement critical parts of the FAFSA, please describe how remaining Department staff will adequately manage, coordinate across, and oversee these vendors so that functionality for the FAFSA and its data center is maintained.
3. Please describe how the Department will continue developing the 2026-2027 FAFSA and ensure an October 1^st launch as required by Congress.
4. Please describe how the Department will engage in communication efforts with students and their families to ensure they know federal financial aid is available to them and the FAFSA form is available to fill out.
5. Please describe how you will continue to report on important FAFSA submission and completion data and maintain monthly briefings for Congress.
6. Given the large cuts to FSA in this week’s reduction in force, please provide a staffing plan that details which staff will be reassigned to cover the work of those employees who are departing and involved in implementation of the FAFSA to ensure that student aid will continue to be disbursed without interruption.
7. Please describe how any changes in availability of the call center, including weekend and evening hours, will be sufficient to answer questions from FAFSA applicants and students with questions about their student loans.
8. Please describe how the Department will meet its statutory requirements to support applicants in the most common languages spoken in the United States?

In FY24, FSA oversaw the disbursement of more than $120 billion in federal financial aid to more than 9 million students across the country and managed $1.6 trillion in student loans held by approximately 45 million borrowers.^[28] To help implement the FAFSA and provide student loan services, the Department contracts with vendors and is responsible for ensuring the quality of the work those contractors provide.
1. According to public reporting, many of the Department staff who oversee these contractors were terminated through the reduction in force.^[29] How does the Department plan to oversee the vendors and contractors who are providing these services to student borrowers?
2. Please describe how the Department will work to uphold strong loan servicing standards across the agency’s vendors.
3. Reports also indicate that Department staff have met with staff from the Treasury Department to discuss moving the student loan portfolio to the Treasury Department,^[30] a change that only Congress can make.^[31] Please describe organizational changes being contemplated as they relate to the student loan portfolio and how they comply with current statutory requirements.

Reports indicate that the Ombudsman Group, which helps resolve discrepancies with student loans, helps students identify the right loan repayment option for them, and helps settle disputes between student loan borrowers and their servicers, among other issues,^[32] was deeply affected by the March 11^th reduction in force.^[33] In the last year, over 130,000 complaints^[34] were submitted to FSA and the Student Loan Ombudsman.
1. What are the Department’s plans to ensure that student loan borrowers are still able to get the support they need when with the wide variety of issues the Ombudsman Group handled?
2. Will the Department maintain the online portal for student borrowers to submit complaints regarding their student loans and if so, which office at the Department will be tasked with responding to those complaints?

The Borrower Defense to Repayment unit also appears to have been severely impacted by the March 11^th reduction in force.^[35] As you know, these Department staff review student loan relief applications from student borrowers who were misled or defrauded by the school. Borrower Defense to Repayment is a protection that has been authorized by Congress in the Higher Education Act^[36] and provides student borrowers relief from their federal student loans that were taken out under fraudulent, misleading, or illegal acts of their schools. As of 2023, approximately 770,000 student borrowers applied for Borrower Defense to Repayment.^[37]
1. What is the Department’s plan to ensure that it will carry out the statutory requirement to adjudicate the current remaining Borrower Defense to Repayment claims?
2. With such severe cuts to the people who worked in the Borrower Defense to Repayment unit, please describe how the Department will ensure that current and future student borrowers will be able to submit claims and have them adjudicated in a timely fashion going forward.
3. What proportion of the remaining staff will be responsible for fulfilling the Sweet settlement, and how will the Department ensure borrowers not included in the settlement are also able to file claims and have them resolved accordingly?

The Higher Education Act requires the Department to carry out numerous oversight responsibilities over the thousands of institutions of higher education that seek to participate in the Title IV program, including eligibility and certification requirements, program reviews, and enforcement of program participation agreements. These requirements help ensure institutions of higher education are on sound financial footing and abide by all requirements of Title IV.
1. Please describe how the Department will continue to carry out the work of the School Eligibility and Oversight Service Group (SEOSG), including ensuring institutions of higher education can submit initial and updated applications, recertifications, letters of credit, and documents related to program reviews.
2. Please describe how the reductions in the SEOSG will impact the caseloads of remaining staff at the Department conducting this important oversight work and not lead to increased waste, fraud, and abuse in the Title IV program.
3. How many program reviews does the Department estimate remaining staff will be able to conduct in FY2025, given the staffing cuts?

For the Office of Institutions of Higher Education Oversight & Enforcement, please provide the number of staff on board after all of the Department’s personnel actions taken since January 20, 2025, including the March 11, 2025 reduction.
1. Please provide the number of such staff in total and for each work unit under the Office of Enforcement and the Office of Partner Participation and Oversight for the immediately preceding pay period to the date including January 20, 2025.
2. Please describe any changes planned to investigations and oversight responsibilities under the Investigations Group, the Administrative Actions and Appeals Service Group, and the Resolutions and Referral Management Group, and explain how each change would protect students and taxpayers from misconduct by institutions.

The Office of Student Service is responsible for administering the TRIO, GEAR UP, and other discretionary grant programs. TRIO and GEAR UP implementation takes a significant amount of work due to the large number of grantees nationwide.
1. Please provide the number of staff on board for the Office of Student Service after all of the Department’s personnel actions taken since January 20, 2025, including the March 11, 2025 reduction.
2. Please provide the number of such staff in total and for each work unit under the Office of Student Service for the immediately preceding pay period to the date including January 20, 2025.

The Department enforces an ESEA requirement that must be met by a State, SEA, or LEA that receives ESEA funds to prevent an SEA, LEA, school, or individual acting on behalf of one of those entities from assisting an employee, contractor, or agent who has engaged in sexual misconduct with a minor or student in violation of the law in obtaining new employment. As directed in the Department’s 2024 appropriation, the Department has taken initial steps to improve compliance with this provision of law.^[38] More must be done.
1. How many staff are actively working on the 2024 directive after all personnel actions taken through March 11, 2025?
2. Please provide a description of actions planned and the associated timeline for meeting this directive and assuring compliance with section 8546 of the ESEA.

The FY2025 Major Management Challenges report issued by Education’s Office of Inspector General found the Department has “established progress” in improving monitoring and oversight of its grantees.^[39] The report further noted “the Department developed plans to address this Management Challenge that included improving its training and technical assistance and broadening consolidated monitoring efforts. These activities have been substantially implemented.”
1. Please provide the number of staff with responsibilities for implementing grantee monitoring and oversight as of September 30, 2024 and after all personnel actions taken through March 11, 2025.

Thank you for your attention to this urgent matter. We look forward to your prompt response.

Sincerely,

MIL OSI USA News –

March 19, 2025

MIL-OSI USA: Dome Manufacturer to Create 72 New Jobs, Invest $4.6 Million in Fayetteville for Manufacturing Facility

Source: US State of North Carolina

Headline: Dome Manufacturer to Create 72 New Jobs, Invest $4.6 Million in Fayetteville for Manufacturing Facility

Dome Manufacturer to Create 72 New Jobs, Invest $4.6 Million in Fayetteville for Manufacturing Facility
lsaito
Tue, 03/18/2025 – 15:02

Raleigh, NC

Today, Governor Josh Stein announced Yeadon Fabric Domes, LLC, a manufacturer of air supported structures, will create 72 new jobs in Cumberland County. The company will invest $4.6 million to build a manufacturing facility in Fayetteville.

“We are delighted to welcome Yeadon Fabric Domes to Cumberland County,” said Governor Stein. “Our manufacturing leadership and textile legacy woven with our strategic location and excellent quality of life will continue to attract innovative, global companies to our great state.”

Yeadon Fabric Domes is a leading designer and manufacturer of climate-controlled domed structures. From professional sports to swimming pools, the company’s air-supported facilities provide large, open spaces for a variety of sporting venues and applications. Yeadon Fabric Domes have been installed in more than 30 countries for customers including several professional football teams, University of Pennsylvania and Marquette University. Headquartered in Minnesota, Yeadon will build its own 72-foot-tall domed structure in a 50,000-square-foot space production site at the Fayetteville Regional Airport, adding more manufacturing capacity and service space for its operations.

“Yeadon Domes is thrilled to be expanding our operations to Fayetteville,” said Matt Mejia, CEO of Yeadon Fabric Domes. “Throughout the process, it has become clear that Fayetteville is the perfect place to build our manufacturing facility, and to continue producing world-class air-supported domes. We’re grateful for the support of Governor Stein, and our many partners throughout North Carolina. We look forward to joining the community and expanding Yeadon’s 55-year legacy in Cumberland County.”

“North Carolina is one of the fastest growing states in the nation as it continues to be recognized as the top state to do business in America,” said N.C. Commerce Secretary Lee Lilley. “Yeadon Fabric Domes will benefit from a friendly business environment, a world-class workforce, and a rewarding lifestyle in Cumberland County, and we believe they will find great success here.”

While salaries for the new positions will vary, the average annual salary will be $47,734, exceeding the Cumberland County average of $47,175. These new jobs could create a potential annual payroll impact of more than $3.4 million.

A performance-based grant of $225,000 from the One North Carolina Fund will help the company locate to Cumberland County. The OneNC Fund provides financial assistance to local governments to help attract economic investment and to create jobs. Companies receive no money upfront and must meet job creation and capital investment targets to qualify for payment. All OneNC grants require a matching participation from local governments and any award is contingent upon that condition being met.

“We welcome Yeadon Fabric Domes and its investment to our region,” said N.C. Senator Val Applewhite. “They will greatly benefit from our transitioning military families which offer a uniquely skilled and prepared workforce that a company of this impact will need.”

“This is a great win for Cumberland County and the entire state,” said N.C. Representative Diane Wheatley. “We extend our sincere appreciation to the partnership of state and local officials and the economic development professionals that supported Yeadon Fabric Domes in making its next home in Fayetteville.”

In addition to the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in this project include the North Carolina General Assembly, North Carolina Community College System, Cumberland County, the City of Fayetteville, and the Fayetteville Cumberland County Economic Development Corporation.

Mar 18, 2025

MIL OSI USA News –

March 19, 2025

Category: Finance

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