Category: Intelligence

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

Q1 2025 FINANCIAL AND OPERATIONAL HIGHLIGHTS

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

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

______________________________

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

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

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

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

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

DECLARATION OF Q2 2025 QUARTERLY DIVIDEND

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

EXTENSION OF CREDIT FACILITIES

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

ANNUAL MEETING OF SHAREHOLDERS

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

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

Q1 2025 UNAUDITED FINANCIAL AND OPERATIONAL SUMMARY

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

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

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

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

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

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

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

2025 GUIDANCE

Birchcliff is reaffirming its 2025 annual average production guidance of 76,000 to 79,000 boe/d and F&D capital expenditures guidance of $260 million to $300 million.
As a result of the continued volatility in commodity prices driven by the uncertainties surrounding tariffs, global trade tensions and OPEC+ production increases, Birchcliff has lowered its commodity price assumptions for the remainder of 2025 and revised its guidance for adjusted funds flow, free funds flow and total debt accordingly. In addition, the Corporation has lowered its royalty expense guidance for 2025, primarily due to lower oil prices forecasted for the remainder of the year.
Birchcliff expects to significantly strengthen its balance sheet in 2025, with free funds flow (after the payment of dividends) anticipated to be allocated primarily towards debt reduction. Based on its current commodity price assumptions, Birchcliff expects to exit 2025 with total debt of $365 million to $405 million, which represents a 28% reduction from its total debt at year end 2024 of $535.6 million.
The following tables set forth Birchcliff’s updated and previous guidance and commodity price assumptions for 2025, as well as its free funds flow sensitivity:

	Updated 2025 guidance and assumptions – May 14, 2025⁽¹⁾	Previous 2025 guidance and assumptions – March 12, 2025
Production
Annual average production (boe/d)	76,000 – 79,000	76,000 – 79,000
% Light oil	3%	3%
% Condensate	6%	6%
% NGLs	9%	9%
% Natural gas	82%	82%

Average Expenses ($/boe)
Royalty	$1.90 – $2.10	$2.10 – $2.30
Operating	$2.90 – $3.10	$2.90 – $3.10
Transportation and other⁽²⁾	$5.55 – $5.75	$5.55 – $5.75

Adjusted Funds Flow (millions)⁽³⁾	$480	$580

F&D Capital Expenditures (millions)	$260 – $300	$260 – $300

Free Funds Flow (millions)⁽³⁾	$180 – $220	$280 – $320

Total Debt at Year End (millions)⁽⁴⁾	$365 – $405	$265 – $305

Natural Gas Market Exposure
AECO exposure as a % of total natural gas production	23%	23%
Dawn exposure as a % of total natural gas production	41%	41%
NYMEX HH exposure as a % of total natural gas production	35%	35%
Alliance exposure as a % of total natural gas production	1%	1%

Commodity Prices
Average WTI price (US$/bbl)	$61.75⁽⁵⁾	$67.00
Average WTI-MSW differential (CDN$/bbl)	$5.60⁽⁵⁾	$8.80
Average AECO price (CDN$/GJ)	$2.30⁽⁵⁾	$2.20
Average Dawn price (US$/MMBtu)	$3.65⁽⁵⁾	$4.20
Average NYMEX HH price (US$/MMBtu)	$3.95⁽⁵⁾	$4.50
Exchange rate (CDN$ to US$1)	1.41⁽⁵⁾	1.44

Forward eight months’ free funds flow sensitivity⁽⁵⁾⁽⁶⁾	Estimated change to 2025 free funds flow (millions)
Change in WTI US$1.00/bbl	$2.6
Change in NYMEX HH US$0.10/MMBtu	$4.5
Change in Dawn US$0.10/MMBtu	$5.5
Change in AECO CDN$0.10/GJ	$2.4
Change in CDN/US exchange rate CDN$0.01	$3.5

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

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

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

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

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

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

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

Q1 2025 FINANCIAL AND OPERATIONAL RESULTS

Production

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

Adjusted Funds Flow and Cash Flow From Operating Activities

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

Net Income (Loss) to Common Shareholders

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

Capital Activities and Investment

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

Debt and Credit Facilities

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

Natural Gas Market Diversification

Birchcliff’s physical natural gas sales exposure primarily consists of the AECO, Dawn and Alliance markets. In addition, the Corporation has various financial instruments outstanding that provide it with exposure to NYMEX HH pricing.
The following table sets forth Birchcliff’s effective sales, production and average realized sales price for its natural gas and liquids for Q1 2025, after taking into account the Corporation’s financial instruments:

Three months ended March 31, 2025
	Effective sales (CDN$000s)	Percentage of total sales (%)	Effective production (per day)	Percentage of total natural gas production (%)	Percentage of total corporate production (%)	Effective average realized sales price (CDN$)
Market
AECO⁽¹⁾⁽²⁾	16,210	7	82,553 Mcf	22	18	2.18/Mcf
Dawn⁽³⁾	82,094	34	162,982 Mcf	43	35	5.60/Mcf
NYMEX HH⁽¹⁾⁽⁴⁾	69,988	29	136,689 Mcf	35	29	5.69/Mcf
Total natural gas⁽¹⁾	168,292	70	382,224 Mcf	100	82	4.89/Mcf
Light oil	15,391	6	1,795 bbls		2	95.27/bbl
Condensate	37,371	16	4,238 bbls		6	97.98/bbl
NGLs	19,183	8	7,626 bbls		10	27.95/bbl
Total liquids	17,945	30	13,659 bbls		18	58.52/bbl
Total corporate⁽¹⁾	240,237	100	77,363 boe		100	34.50/boe

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

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

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

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

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

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

The following table sets forth Birchcliff’s physical sales, production, average realized sales price, transportation costs and natural gas sales netback by natural gas market for the periods indicated, before taking into account the Corporation’s financial instruments:

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

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

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

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

OPERATIONAL UPDATE

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

Pouce Coupe

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

5-Well 04-05 Pad IP Rates

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

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

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

Gordondale

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

Elmworth

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

ABBREVIATIONS

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

NON-GAAP AND OTHER FINANCIAL MEASURES

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

Non-GAAP Financial Measures

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

Adjusted Funds Flow and Free Funds Flow

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

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

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

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

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

Transportation and Other Expense

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

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

Operating Netback

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

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

Total Capital Expenditures

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

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

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

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

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

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

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

Non-GAAP Ratios

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

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

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

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

Free Funds Flow Per Basic Common Share

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

Transportation and Other Expense Per Boe

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

Operating Netback Per Boe

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

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

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

Capital Management Measures

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

Total Debt

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

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

^{(1) Current liabilities less current assets.}

^{(2) Reflects the current portion only.}

ADVISORIES

Unaudited Information

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

Currency

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

Boe Conversions

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

MMBtu Pricing Conversions

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

Oil and Gas Metrics

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

Production

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

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

Initial Production Rates

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

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

Finding and Development (F&D) Capital Expenditures

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

Forward-Looking Statements

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

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

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

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

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

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

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

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

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

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

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

ABOUT BIRCHCLIFF:

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

For further information, please contact:

Birchcliff Energy Ltd.
Suite 1000, 600 – 3^rd Avenue S.W.
Calgary, Alberta T2P 0G5
Telephone: (403) 261-6401
Email: birinfo@birchcliffenergy.com
www.birchcliffenergy.com

Chris Carlsen – President and Chief Executive Officer

Bruno Geremia – Executive Vice President and Chief Financial Officer

The MIL Network –

May 15, 2025

MIL-OSI: Usio Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Record First Quarter Revenues of $22.0 million

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

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

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

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

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

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

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

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

Quarterly Processing and Transaction Volumes

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

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

First Quarter 2025 Revenue Detail

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

	Three Months Ended March 31,
	2025		2024		$ Change			% Change

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

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

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

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

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

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

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

Conference Call and Webcast

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

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

About Usio, Inc.

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

Comparisons

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

About Non-GAAP Financial Measures

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

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

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

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

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

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

FORWARD-LOOKING STATEMENTS DISCLAIMER

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

Contact:

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

USIO, INC. CONSOLIDATED BALANCE SHEETS

	March 31, 2025			December 31, 2024
	(Unaudited)
ASSETS
Cash and cash equivalents	$	8,718,247		$	8,056,891
Accounts receivable, net		4,569,616			5,053,639
Accounts receivable, tax credit		—			1,494,612
Settlement processing assets		62,151,877			47,104,006
Prepaid card load assets		14,553,939			25,648,688
Customer deposits		1,907,169			1,918,805
Inventory		348,493			403,796
Prepaid expenses and other		729,039			585,500
Current assets before merchant reserves		92,978,380			90,265,937
Merchant reserves		4,925,101			4,890,101
Total current assets		97,903,481			95,156,038

Property and equipment, net		3,230,300			3,194,818

Other assets:
Intangibles, net		663,349			881,346
Deferred tax asset, net		4,580,440			4,580,440
Operating lease right-of-use assets		2,884,691			3,037,928
Other assets		357,877			357,877
Total other assets		8,486,357			8,857,591

Total Assets	$	109,620,138		$	107,208,447

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	715,223		$	1,256,819
Accrued expenses		2,705,122			3,366,925
Operating lease liabilities, current portion		620,915			612,680
Equipment loan, current portion		150,085			147,581
Settlement processing obligations		62,151,877			47,104,006
Prepaid card load obligations		14,553,939			25,648,688
Customer deposits		1,907,169			1,918,805
Current liabilities before merchant reserve obligations		82,804,330			80,055,504
Merchant reserve obligations		4,925,101			4,890,101
Total current liabilities		87,729,431			84,945,605

Non-current liabilities:
Equipment loan, net of current portion		533,248			571,862
Operating lease liabilities, net of current portion		2,365,529			2,534,017
Total liabilities		90,628,208			88,051,484

Stockholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares outstanding at March 31, 2025 (unaudited) and December 31, 2024, respectively		—			—
Common stock, $0.001 par value, 200,000,000 shares authorized; 30,038,355 and 29,902,415 issued, and 26,527,906 and 26,609,651 outstanding at March 31, 2025 (unaudited) and December 31, 2024, respectively		30,038			198,317
Additional paid-in capital		99,992,655			99,676,457
Treasury stock, at cost; 3,510,449 and 3,292,764 shares at March 31, 2025 (unaudited) and December 31, 2024, respectively		(6,122,232	)		(5,770,592	)
Deferred compensation		(6,640,905	)		(6,914,563	)
Accumulated deficit		(68,267,626	)		(68,032,656	)
Total stockholders’ equity		18,991,930			19,156,963

Total Liabilities and Stockholders’ Equity	$	109,620,138		$	107,208,447

USIO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended March 31,
	2025			2024

Revenues	$	22,009,050		$	20,970,386
Cost of services		17,199,907			16,116,691
Gross profit		4,809,143			4,853,695

Selling, general and administrative expenses:
Stock-based compensation		410,062			499,273
Other SG&A		4,142,895			4,060,225
Depreciation and amortization		495,770			576,154
Total selling, general and administrative		5,048,727			5,135,652

Operating (loss)		(239,584	)		(281,957	)

Other income and (expense):
Interest income		79,011			115,354
Interest expense		(11,843	)		(13,585	)
Other income, net		67,168			101,769

(Loss) before income taxes		(172,416	)		(180,188	)

State income tax expense		62,554			70,000
Income tax expense		62,554			70,000

Net (loss)	$	(234,970	)	$	(250,188	)

(Loss) Per Share
Basic (loss) per common share:	$	(0.01	)	$	(0.01	)
Diluted (loss) per common share:	$	(0.01	)	$	(0.01	)
Weighted average common shares outstanding
Basic		26,615,947			26,375,762
Diluted		26,615,947			26,375,762

USIO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended March 31,
	2025			2024
Operating Activities
Net (loss)	$	(234,970	)	$	(250,188	)
Adjustments to reconcile net (loss) to net cash provided by operating activities:
Depreciation		277,773			358,187
Amortization		217,997			217,967
Employee stock-based compensation		410,062			499,273
Changes in operating assets and liabilities:
Accounts receivable		484,023			701,911
Accounts receivable, tax credit		1,494,612			—
Prepaid expenses and other		(143,539	)		(243,344	)
Operating lease right-of-use assets		153,237			102,394
Other assets		—			20,000
Inventory		55,303			(6,769
Accounts payable and accrued expenses		(1,203,399	)		(1,158,059	)
Operating lease liabilities		(160,253	)		(107,243	)
Merchant reserves		35,000			12,000
Customer deposits		(11,636	)		(57,468	)
Net cash provided by operating activities		1,374,210			88,661

Investing Activities
Purchases of property and equipment		(313,254	)		(176,750	)
Net cash (used in) investing activities		(313,254	)		(176,750	)

Financing Activities
Payments on equipment loan		(36,110	)		(14,431	)
Proceeds from issuance of common stock		11,515			—
Purchases of treasury stock		(351,640	)		(44,823	)
Assets held for customers		3,953,121			(6,748,838	)
Net cash provided by (used in) financing activities		3,576,886			(6,808,092	)

Change in cash, cash equivalents, settlement processing assets, prepaid card loads, customer deposits and merchant reserves		4,637,842			(6,896,181	)
Cash, cash equivalents, settlement processing assets, prepaid card loads, customer deposits and merchant reserves, beginning of year		87,618,491			90,810,089

Cash, Cash Equivalents, Settlement Processing Assets, Prepaid Card Loads, Customer Deposits and Merchant Reserves, End of Period	$	92,256,333		$	83,913,908

Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	11,843		$	13,585
Issuance of deferred stock compensation		—			—

USIO, INC. STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

	Common Stock					Additional Paid- In		Treasury			Deferred			Accumulated			Total Stockholders’
	Shares		Amount			Capital		Stock			Compensation			Deficit			Equity

Balance at December 31, 2024		29,902,415	$	198,317		$	99,676,457	$	(5,770,592	)	$	(6,914,563	)	$	(68,032,656	)	$	19,156,963

Adjustment to par value of common stock		—		(168,415	)		168,415		—			—			—			—
Issuance of common stock under equity incentive plan		128,053		128			136,276		—			—			—			136,404
Issuance of common stock under employee stock purchase plan		7,887		8			11,507		—			—			—			11,515
Deferred compensation amortization		—		—			—		—			273,658			—			273,658
Purchase of treasury stock costs		—		—			—		(351,640	)		—			—			(351,640	)
Net (loss) for the period		—		—			—		—			—			(234,970	)		(234,970	)

Balance at March 31, 2025		30,038,355	$	30,038		$	99,992,655	$	(6,122,232	)	$	(6,640,905	)	$	(68,267,626	)	$	18,991,930

Balance at December 31, 2023		28,671,606	$	197,087		$	97,479,830	$	(4,362,150	)	$	(6,907,775	)	$	(71,338,153	)	$	15,068,839

Issuance of common stock under equity incentive plan		107,600		107			153,118		—			—			—			153,225
Deferred compensation amortization		—		—			—		—			346,047			—			346,047
Purchase of treasury stock costs		—		—			—		(44,823	)		—			—			(44,823	)
Net (loss) for the period		—		—			—		—			—			(250,188	)		(250,188	)

Balance at March 31, 2024		28,779,206	$	197,194		$	97,632,948	$	(4,406,973	)	$	(6,561,728	)	$	(71,588,341	)	$	15,273,100

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)

	Three Months Ended March 31,
	2025			2024

Reconciliation from Operating (loss) to Adjusted EBITDA:
Operating (loss)	$	(239,584	)	$	(281,957	)
Depreciation and amortization		495,770			576,154
EBITDA		256,186			294,197
Non-cash stock-based compensation expense, net		410,062			499,273
Adjusted EBITDA	$	666,248		$	793,470


Calculation of Adjusted EBITDA margins:
Revenues	$	22,009,050		$	20,970,386
Adjusted EBITDA	$	666,248		$	793,470
Adjusted EBITDA margins		3.0	%		3.8	%

The MIL Network –

May 15, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

2025 First Quarter Financial Highlights

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

Conference Call

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

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

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

About Reliance Global Group, Inc.

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

Forward-Looking Statements

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

Contact:

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

INFORMATION REGARDING A NON-GAAP FINANCIAL MEASURE

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

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

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

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

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

AEBITDA	$	145,407		$	(73,654	)

The MIL Network –

May 15, 2025

MIL-OSI Security: Preston County Man Admits to Federal Child Exploitation Offenses

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

CLARKSBURG, WEST VIRGINIA – Steven David Seeger, 46, of Bruceton Mills, West Virginia, has admitted to the coercion and enticement of a minor for sex and production of child pornography.

According to court documents and statements made in court, Seeger was communicating with minor girls online. During those communications, he persuaded multiple victims to produce and send him sexually explicit images and videos.

Seeger faces 10 years to life in federal prison for the enticement charge and faces 15 to 30 years for the production of child pornography charge. If convicted, a federal district court judge will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant U.S. Attorney Kimberley Crockett is prosecuting the case on behalf of the government.

The Federal Bureau of Investigation, the West Virginia State Police, and the Preston County Sheriff’s Office investigated.

U.S. Magistrate Judge Michael John Aloi presided.

MIL Security OSI –

May 15, 2025
MIL-OSI Security: Richmond Man Sentenced to 25 Years for Child Pornography

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

KANSAS CITY, Mo. – A Richmond, Mo., man was sentenced in federal court today for receiving child pornography, after having a prior state conviction for possession of child pornography.

Derek Shain, 36, was sentenced by U.S. District Judge Roseann Ketchmark to 25 years in federal prison without parole. The court also ordered Shain to serve supervised release for Life following his incarceration.

On January 16, 2025, Shain pleaded guilty to one count of receiving child pornography, after having a prior state conviction for possession of child pornography. According to court documents, Shain communicated with a 15-year-old minor female on a social media platform. He requested and received an image of child pornography from the minor female. A background investigation of Shain confirmed that Shain was a registered sex offender at the time of this offense. Shain also has prior state convictions for attempted child molestation in the first degree and age misrepresentation with intent to solicit a minor.

This case was prosecuted by Assistant U.S. Attorney Maureen A. Brackett. It was investigated by the Federal Bureau of Investigation and the Sugar Creek, Missouri Police Department.

Project Safe Childhood

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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

MIL Security OSI –

May 15, 2025
MIL-OSI Security: Father and Son Sentenced for Role in International Market Manipulation Scheme Related to New Jersey Deli

Source: Office of United States Attorneys

CAMDEN, N.J. – A father and son were sentenced on May 13, 2025, for their roles in orchestrating a large-scale market manipulation scheme related to two publicly traded companies, U.S. Attorney Alina Habba announced.

Peter Coker, Sr., 82, of Chapel Hill, North Carolina, and Peter Coker, Jr., 56, formerly of Hong Kong, China, had pleaded guilty, on December 19, 2024, before U.S. District Judge Christine P. O’Hearn to securities fraud and conspiracy to commit securities fraud. Coker, Sr. was sentenced to six months’ imprisonment, three years’ supervised release, including six months’ home detention, and fines totaling $500,000. Coker, Jr. was sentenced to 40 months’ imprisonment, three years’ supervised release, and fines totaling $250,000.

James Patten, 65, of Winston-Salem, North Carolina also previously pleaded guilty to the same charges and is awaiting sentencing.

According to documents filed in this case and statements made in court:

From 2014 through September 2022, Peter Coker Sr., Peter Coker Jr., and Patten conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities.

As part of the securities fraud scheme, the defendants targeted two publicly traded companies—Hometown International Inc. and E-Waste Corp.—which both traded on the OTC Link Alternative Trading System, also known as the OTC Marketplace. The OTC Marketplace is an alternative trading system that contains three tiers of markets, which are largely based on the quality and quantity of the listed companies’ information and disclosures.

Coker Sr., Coker Jr., and Patten took steps to gain control of both entities’ management and stock with the ultimate intention of entering reverse mergers, a transaction through which an existing public company merges with a private operating company. A successful reverse merger would allow the defendants to sell shares of each entity at a significant profit.

In or around 2014, two New Jersey residents began the process of opening a local deli in Paulsboro, New Jersey. One of the individuals discussed his interest in opening the deli with Patten, a long-time friend, who suggested the creation of Hometown International, an umbrella corporation, under which the deli would operate as a wholly owned subsidiary. Unbeknownst to the deli owners, after Hometown International was formed, Patten and his associates began positioning Hometown International as a vehicle for a reverse merger that would yield substantial profit to them.

Around October 2019, Hometown International began selling shares on the OTC Marketplace. Patten, Coker Sr., and Coker Jr. furthered their scheme by gaining control of Hometown International’s management and its shares from the deli owners. Coker Sr., Coker Jr., and Patten took similar actions to gain control of E-Waste Corporation’s stock and management. The defendants also arranged for the transfer of millions of shares of stock to a number of nominee entities, including entities controlled by Coker Jr., in an effort to mask their control of the shares.

In addition, the defendants transferred shares to family members, friends, and associates and gained control over their trading accounts by obtaining their log-in information to conceal the defendants’ involvement. The defendants then used those accounts to commit a number of coordinated trading events, often referred to as match and wash trades, to trade in Hometown International and E-Waste Corp.’s stock on both sides of the transaction.

These tactics artificially inflated the price of Hometown International and E-Waste’s stock by giving the false impression that there was a genuine market interest in the stock. Their scheme had the ultimate impact of artificially inflating Hometown International’s stock by approximately 939 percent and E-Waste’s stock by approximately 19,900 percent.

U.S. Attorney Habba credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge Wayne A. Jacobs, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation. He also thanked special agents from FBI Charlotte, FBI Los Angeles, FBI San Francisco, FBI Denver, and FBI Knoxville, for their assistance.

The government is represented by Lauren E. Repole, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Aaron Webman of the Economic Crimes Unit.

###

Defense counsel:

Peter Coker, Sr.: John Azzarello, Esq. (Morristown, New Jersey), William McGovern, Esq. (New York, New York)

Peter Coker, Jr.: Zach Intrater and Marc Agnifilo (New York, New York)

MIL Security OSI –

May 15, 2025
MIL-OSI USA: Senators Peters and Blackburn Introduce Bipartisan Bill to Protect U.S. Nuclear Facilities from Drone Threats

US Senate News:

Source: United States Senator for Michigan Gary Peters
Published: 05.14.2025

WASHINGTON, DC – U.S. Senators Gary Peters (D-MI) and Marsha Blackburn (R-TN) introduced bipartisan legislation to protect our nation’s nuclear facilities from the growing threat of unmanned aircraft systems (UAS), or drones. The senators’ Nuclear Ecosystem Drone Defense (NEDD) Act would expand the Department of Energy’s (DOE) authority to counter drones presenting threats to U.S. nuclear facilities and assets, specifically to cover facilities that store and transport nuclear material as well as facilities used to research, design, or manufacture components for nuclear weapons. As drones become more advanced, this legislation would help to better secure America’s major nuclear sites as well as smaller facilities that are critical to national security.
“As drone technologies evolve and advance, we need to be taking every step necessary to protect our national security and keep America’s nuclear assets, and the communities near them, safe,” said Senator Peters. “This bill would give the Department of Energy the additional authority it needs to counter evolving drone threats and protect some of our nation’s most sensitive and critical infrastructure.”
“Unmanned aircraft systems are threatening our nuclear and national security,” said Senator Blackburn. “The NEDD Act would protect nuclear facilities from unauthorized drones, enhancing the Department of Energy’s ability to safeguard its assets, and counter threats to our national security.”
Between 2022 and 2024, the National Nuclear Security Administration (NNSA) reported six unauthorized drone sightings at the Nevada National Security Site (NNSS), one suspicious UAS overflight of the Pantex Plant (PTX), and five suspicious drone overflights of the Los Alamos National Labs (LANL) restricted airspace. These events have underscored the need for DOE to have expanded authorities and capabilities to combat evolving drone threats.
The NEDD Act would help address weaknesses in DOE’s current drone authorities to better counter nefariously operated drones. While current law focuses on protecting high-profile sites where special nuclear materials are stored, the U.S. is also home to other important facilities, such as those involved in research or production, that are not thoroughly covered. This bipartisan bill would help close those gaps and ensure that DOE can respond quickly to threats and implement comprehensive safeguards for all sites under its purview. Peters has been fighting to expand authorities to ensure our nation is prepared to address public safety threats from drones. Last year, he pressed his colleagues to pass long overdue, bipartisan legislation he authored that would provide state and law enforcement with tools to better detect and track drones so they can protect their communities. Peters’ legislation is supported by a wide range of stakeholders including the National Football League, airports and law enforcement organizations.

MIL OSI USA News –

May 15, 2025
MIL-OSI Security: 5 Defendants Federally Charged in Los Angeles, Orange Counties as Part of Nationwide Crackdown on Child Sexual Abuse Offenders
Source: Office of United States Attorneys

LOS ANGELES – Attorney General Pamela Bondi and FBI Director Kash Patel recently announced an unprecedented national initiative to protect the most vulnerable members of our communities. The FBI launched a coordinated effort with all field offices in a sweeping action to identify, track and arrest child sex predators.

Since the end of April, the FBI arrested 205 subjects across the country and rescued 115 children during Operation Restore Justice. These subjects are accused of various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. They include school leaders and registered sex offenders, among others.

In the Central District of California, a seven-county jurisdiction that includes Los Angeles and Orange counties, five defendants were charged with federal crimes as follows:
- Andrew Castillon, 47, of El Monte, was arrested May 1 on a federal criminal complaint charging him with possession of child pornography. A federal magistrate judge ordered him released on $5,000 bond. Castillon’s arraignment is scheduled for May 27 in United States District Court in Los Angeles. Assistant United States Attorney Thi H. Ho of the General Crimes Section is prosecuting this case.
- Jose Olvera, 34, of North Hollywood, was arrested May 1 on a federal indictment charging him with two counts of distribution of child pornography and five counts of possession of child pornography. He pleaded not guilty to all charges at his arraignment and a June 23 trial was scheduled in this case. A federal magistrate judge ordered him jailed without bond. Assistant United States Attorney Mikaela W. Gilbert-Lurie of the General Crimes Section is prosecuting this case.
- Steven Martin Nuss, 66, of San Juan Capistrano, was arrested May 9 on a two-count federal grand jury indictment charging him with distribution of child pornography and possession of child pornography. He pleaded not guilty to both charges and a federal magistrate judge ordered him jailed without bond. He is scheduled to go to trial on July 1. Assistant United States Attorney Melissa S. Rabbani of the Orange County Office is prosecuting this case.
- David Eugene Parker, 55, of La Palma, was arrested April 30 on federal grand jury indictment charging him with two counts of possession of child pornography. He pleaded not guilty to the charge and a federal magistrate judge ordered him released on $100,000 bond. A June 24 trial date is scheduled in this matter. Assistant United States Attorney Lauren E. Border of the General Crimes Section is prosecuting this case.
- Gregory Cole Jr., 30, of Lancaster, was arrested April 30 in Arizona after he failed to appear at his trial earlier last month in which a jury found him guilty in absentia of one count of production of child pornography, one count of enticement of a minor to engage in criminal sexual activity, and one count of receipt of child pornography. His sentencing hearing is scheduled for June 23, at which time he will face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of life in federal prison. Assistant United States Attorney Derek R. Flores of the Violent and Organized Crime Section is prosecuting this case.
Two additional individuals were arrested in Los Angeles for sexual exploitation of a child and charges of coercion and enticement, respectively; however, those cases are being prosecuted in separate districts.

“Sexual predators who target children leave emotional scars that can last a lifetime,” said United States Attorney Bill Essayli. “Along with our law enforcement partners, we seek to bring a measure of solace to victims and put criminals on notice that they risk lengthy prison sentences and severe penalties for harming children.”

“The amount of child predators arrested during Operation Restore Justice should shock the conscience of any law-abiding citizen and parents or guardians, in particular,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Each day, our agents are tackling criminal allegations involving children, whether it be online dangers such as ‘sextortion,’ emerging nihilist extremist networks such as ‘764,’ or children being groomed by someone close to them. We urge caretakers of all children to educate themselves about these constant threats targeting the most vulnerable members of our society.”

As the nation marked National Child Abuse Prevention month in April, the timing of this effort was a culmination of countless hours by hundreds of FBI agents. It further underscores the FBI’s unwavering commitment to protecting children and raising awareness about the dangers they face. While the Bureau works relentlessly to investigate these crimes every day, April serves as a powerful reminder of the importance of prevention and community education.

The FBI takes a proactive approach to identify unknown individuals involved in the sexual exploitation of children and the production of child sexual abuse material. We do that through our Child Exploitation and Human Trafficking Task Forces (CEHTTFs) located in each field office. This allows the FBI to combine resources with federal, state, and local law enforcement agencies. The FBI also partners with the nonprofit National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24-hour hotline at 1-800-THE-LOST and on missingkids.org.

In 2004, the FBI created the Endangered Child Alert Program (ECAP) to identify individuals involved in the sexual abuse of children and the production of child sexual abuse material. The program is a collaborative effort between the FBI and the NMCEC.

The FBI also offers resources for parents and caregivers to stay engaged with their children’s online and offline activities. The FBI’s Safe Online Surfing (SOS) program teaches students in grades 3 to 8 how to navigate the web safely.

The FBI urges the public to remain vigilant and report suspected exploitation of a child through our tiplines at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.

Other online resources:
- Electronic Press Kit:
MIL Security OSI –
May 15, 2025
MIL-OSI USA: ICE, FBI investigation reveals illegal alien from Guatemala fraudulently sponsored unaccompanied alien children

Source: US Immigration and Customs Enforcement

WASHINGTON — An illegal alien from Guatemala was charged in a criminal complaint filed in the District of New Jersey for allegedly submitting sponsorship applications with false statements to the U.S. government to gain custody of two unaccompanied alien children after they entered the United States illegally, following a U.S. Immigration and Customs Enforcement, FBI investigation.

“Attempting to exploit the sponsorship system to gain custody of unaccompanied alien children puts those minors at serious risk,” said ICE acting Director Todd Lyons. “ICE works alongside our law enforcement partners to prevent trafficking and exploitation by individuals falsely claiming to be family. ICE remains firmly committed to detecting deception, upholding the integrity of the immigration process, and, above all, protecting these at-risk children.”

According to the criminal complaint, Luciano Tinuar Quino, also known as “Luciano Tinuar Guino,” 57, who illegally entered the United States in 2016 and previously resided in the area of Orange, New Jersey, submitted multiple applications to the Department of Health and Human Services’ Office of Refugee Resettlement under penalties of perjury to sponsor and obtain custody of two UACs.

“Protecting children means holding individuals accountable when they use deception to exploit our systems. ORR acted swiftly to identify the fraud and share with our law enforcement counterparts who located the children and ensured justice was served,” said ORR acting Director Angie M. Salazar.

As alleged in the complaint, after a 15-year-old Guatemalan male (UAC-1) illegally entered the United States in April 2022, Tinuar Quino submitted applications to sponsor this UAC that falsely: (1) claimed to be his father; (2) claimed his own name was “A.S.T.” as listed on a Guatemala national identification card he submitted; and (3) provided his date of birth. To prove his relationship with UAC-1, Tinuar Quino submitted a photoshopped image, which he asserted was a photo of himself with UAC-1’s mother. As a result, the boy was transported from Texas to New Jersey to live with Tinuar Quino.

“The prior administration’s border policies created chaos and allowed bad actors to prey upon the most vulnerable among us,” said Attorney General Pamela Bondi. “This Department of Justice will always seek strong legal penalties to protect children from those who would do them harm.”

“This prosecution is an example of my office’s dedication to keeping children safe,” said U.S. Attorney Alina Habba for the District New Jersey. “We will continue to bring to justice those who take advantage of our country’s Unaccompanied Alien Children program and threaten the safety of our community.”

“This was a clear attempt from an individual unlawfully in the United States seeking to undermine our laws and target children, and the FBI will not tolerate it,” said FBI Director Kash Patel. “We remain laser-focused on ensuring people who come into the United States intending to wreak havoc and intentionally violate our rule of law will face serious consequences.”

Tinuar Quino is also charged with submitting false information in an attempt to obtain custody of another UAC. Specifically, the complaint charges that in June 2022, Tinuar Quino submitted an application to sponsor a 17-year-old Guatemalan male (UAC-2) who had entered the United States illegally. As alleged, Tinuar Quino falsely: (1) claimed to be UAC-2’s father; (2) stated that his name was “J.R.M.” as listed on a Guatemala national identification card he submitted; and (3) provided his date of birth. ORR did not approve this application.

Tinuar Quino is charged with two counts of making a false, fictitious, or fraudulent statement. If convicted, he faces a maximum penalty of five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

These charges are the result of the coordinated efforts of Joint Task Force Alpha. JTFA, a partnership with the Department of Homeland Security, has been elevated and expanded by the Attorney General with a mandate to target cartels and other transnational criminal organizations to eliminate human smuggling and trafficking networks operating in Mexico, Guatemala, El Salvador, Honduras, Panama, and Colombia that impact public safety and the security of our borders. JTFA currently comprises detailees from U.S. Attorneys’ Offices along the southwest border. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section and supported by the Money Laundering and Asset Recovery Section, the Office of Enforcement Operations, and the Office of International Affairs, among others. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in more than 365 domestic and international arrests of leaders, organizers, and significant facilitators of alien smuggling; more than 334 U.S. convictions; more than 281 significant jail sentences imposed; and forfeitures of substantial assets.

The ICE Homeland Security Investigations and FBI Newark field offices are jointly investigating with assistance from the FBI’s Legal Attaché team in Guatemala. Additionally, the DHS Center for Countering Human Trafficking in Washington, D.C. and ORR have provided valuable assistance.

Senior Trial Attorney Christian Levesque of HRSP, JTFA Trial Attorney Spencer M. Perry of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Rebecca Sussman of the District of New Jersey are prosecuting the case, with assistance from HRSP Analyst/Latin America Specialist Joanna Crandall.

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 other 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 Project Safe Neighborhoods.

As a federal criminal investigatory agency, ICE HSI’s role is to take swift action to investigate any criminal activity for which HSI has jurisdiction related to UAC. This includes investigating the exploitive smuggling networks that bring UAC to the United States as well as any criminals who may exploit these at-risk youths here in the United States.

Individuals across the world can report suspicious criminal activity to the ICE Tip Line 24 hours a day, seven days a week at 866-DHS-2-ICE. Highly trained specialists take reports from both the public and law enforcement agencies on more than 400 laws enforced by ICE.

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

MIL OSI USA News –

May 15, 2025
MIL-OSI Security: Somerset Man Charged with Receipt and Possession of Child Pornography

Source: Office of United States Attorneys

TRENTON N.J. – A Somerset man was charged with receipt and possession of child pornography, U.S. Attorney Alina Habba announced.

Elliott Souder, 51, was charged by complaint and appeared before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court on May 6, 2025.

According to documents filed in this case and statements made in court:

From at least September 20, 2021 through November 16, 2021, Souder, via his home computer, connected to an Internet-based peer-to-peer network and requested three videos depicting child sexual abuse. When members of law enforcement executed a search warrant at Souder’s Somerset residence in March 2022, they found over 1,000 images and videos of child pornography on Souder’s computer’s hard drive, including two of the aforementioned videos previously requested over the peer-to-peer network. Some of the images and videos depicted prepubescent children, toddlers and infants, and sadomasochism on children.

The charge of receipt of child pornography carries a mandatory minimum penalty of 5 years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Habba credited special agents of the Federal Bureau of Investigation, specifically the Violent Crimes Against Children Unit, under the direction of Acting Special Agent in Charge Terence G. Reilly, with the investigation. This investigation was conducted under FBI’s Operation Restore Justice.

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

The government is represented by Assistant U.S. Attorney Tracey Agnew of the Criminal Division in Trenton.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

###

Defense counsel: Steven D. Altman, Esq., New Brunswick, NJ

MIL Security OSI –

May 15, 2025
MIL-OSI Security: U.S. Attorney’s Office Forfeits $736,040 Associated with DoorDash Scam

Source: Office of United States Attorneys

David X. Sullivan, United States Attorney for the District of Connecticut, Anish Shukla, Acting Special Agent in Charge of the New Haven Division of the FBI, and Paul J. Ferencek, State’s Attorney for the Judicial District of Stamford/Norwalk today announced that the U.S. Attorney’s Office has forfeited $736,040 associated with a DoorDash scam.

As alleged in the forfeiture complaint, on January 5, 2023, Stamford Police responded to a Stamford apartment for a domestic violence incident. David Smith was taken into custody and a victim was transported to the hospital. Later that day, investigators searching the apartment for a firearm found a 9mm handgun with an extended magazine, and also found multiple safes containing a total of $736,040 in cash, and 118 credit and debit cards, almost all of which were in the names of other individuals. The investigation revealed that Smith was operating a scam in which he used multiple phones to place DoorDash orders for delivery. After the order was picked up, he would contact the drivers using a spoofed number and, using social engineering, convince the drivers to hand over their DoorDash account information. Using this information, Smith would steal the victim’s delivery money that had been pooled in their account. The cash that was seized and forfeited represents the proceeds from this scheme.

Smith, who was being prosecuted by the State of Connecticut, was murdered in New York on January 6, 2025.

The U.S. Attorney’s Office filed a civil forfeiture complaint against the seized money and, on April 30, 2025, the U.S. District Court granted the government’s motion for a Decree of Forfeiture.

Generally, the U.S. Attorney’s Office first forfeits the money, then returns it to the crime victims, so that the crime victims have clear title to the property without risk of further litigation.

If you believe that you were a victim of this scheme, please visit this web page or this FBI New Haven Facebook post. There, victims of this particular scheme will find the instructions to make a petition for remission. Should the Department of Justice’s Money Laundering Asset Recovery Unit approve your petition for remission, you may recoup some or all of your losses.

This case is being prosecuted by Assistant U.S. Attorney David C. Nelson.

MIL Security OSI –

May 15, 2025
MIL-OSI Security: FBI Honors Fallen Law Enforcement During National Police Week

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

On Tuesday, May 13, a candlelight vigil on the National Mall, organized by the National Law Enforcement Officers Memorial Fund, included a roll-call of officers who died on the job in 2024. The organization’s memorial—a short distance from the U.S. Capitol—features two curving, 304-foot marble walls engraved with the names of more than 22,600 officers who have died while performing their duty since 1791.

Police Week regularly draws 25,000 to 40,000 visitors to the nation’s capital. The observance comprises several events—including some that occur before Police Week officially starts.

These collective events include the Blue Mass at St. Patrick Catholic Church; a Police K-9 Memorial Service at the National Law Enforcement Officers Memorial; a 5K fundraising run; the arrival of the Police Unity Tour, where more than 2,000 bicycle riders simultaneously arrive in Washington, D.C.; the annual candlelight vigil; and the National Peace Officers Memorial Service on May 15 at the U.S. Capitol.

MIL Security OSI –

May 15, 2025

MIL-OSI USA: Sinaloa cartel leaders charged with narco-terrorism, material support of terrorism and drug trafficking in ICE, FBI investigation

Source: US Immigration and Customs Enforcement

SAN DIEGO – An indictment unsealed May 13 is the first in the nation to charge alleged leaders of the Sinaloa Cartel with narco-terrorism and material support of terrorism in connection with trafficking massive amounts of fentanyl, cocaine, methamphetamine and heroin into the United States. U.S. Immigration and Customs Enforcement and the FBI are investigating this case.

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

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

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

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

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

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

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

These indictments follow a notable tradition in the Southern District of California for targeting leadership and operations of powerful Mexican cartels – from the dismantling of the Arellano Felix Cartel to major strikes against today’s most dangerous, powerful and violent cartels, including the Sinaloa Cartel, Jalisco New Generation Cartel and now the Beltran Leyva Organization. It is the first indictment from the newly formed Narco-Terrorism Unit which was established upon the swearing in of U.S. Attorney Gordon on April 11, 2025.

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

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

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

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

This case is being prosecuted by Assistant U.S. Attorneys Joshua Mellor and Matthew Sutton.

Defendants for Case Number 25cr1505

Name	Age	Location
Pedro Inzunza Noriega \| aka “Sagitario,” aka “120,” aka “El De La Silla”	62	Los Mochis, Sinaloa, Mexico
Pedro Inzunza Coronel \| aka “Pichon,” Aka “Pajaro”, aka “Bird”	33	Los Mochis, Sinaloa, Mexico
David Alejandro Heredia Velazquez \| aka “Tano,” aka “Mr. Jordan”	50	Guadalajara, Jalisco, Mexico and Culiacan, Sinaloa, Mexico
Oscar Rene Gonzalez Menendez \| aka “Rubio”	45	Guatemala City, Guatemala
Elias Alberto Quiros Benavides	53	San Jose, Costa Rica
Daniel Eduardo Bojorquez \| aka “Chopper”	47	Nogales, Sonora, Mexico
Javier Alonso Vazquez Sanchez \| aka “Tito”, aka “Drilo”	31	Los Mochis, Sinaloa, Mexico

Summary of Charges

Title 21, U.S.C., Secs. 960a and 841 – Narco-Terrorism
Maximum penalty: Life in prison, mandatory minimum 20 years in prison; $20 million fine
Title 18, U.S.C. Sec. 2339B – Providing Material Support to Terrorism
Maximum penalty: Twenty years in prison and $250,000 fine
Title 21, U.S.C., Sec. 848(a) -Continuing Criminal Enterprise
Maximum penalty: Life in prison, mandatory minimum 20 years; $10 million fine
Title 21, U.S.C., Secs. 952, 959, 960, and 963 – International Conspiracy to Distribute Controlled Substances
Maximum penalty: Life in prison, mandatory minimum 10 years; $10 million fine
Title 21, U.S.C., Secs. 841(a)(1) and 846 – Conspiracy to Distribute Controlled Substances
Maximum penalty: Life in prison, mandatory minimum 10 years in prison; $10 million fine
Title 21, U.S.C., Secs. 952, 960 and 963 – Conspiracy to Import Controlled Substances
Maximum penalty: Life in prison, mandatory minimum 10 years; $10 million fine
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and a fine of the greater of $500,000 or twice the value of the monetary instrument or funds involved

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

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.

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

MIL OSI USA News –

May 15, 2025

MIL-OSI: Track Group Reports 2nd Quarter Fiscal 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

NAPERVILLE, Ill., May 14, 2025 (GLOBE NEWSWIRE) — Track Group, Inc. (OTCQB: TRCK), a global leader in offender tracking and monitoring services, today announced financial results for its fiscal quarter ended March 31, 2025 (“Q2 FY25”). In Q2 FY25, the Company posted (i) total revenue of $8.4 Million (“M”), a decrease of approximately 7% over total revenue of $9.0M for the quarter ended March 31, 2024 (“Q2 FY24”); (ii) Q2 FY25 gross profit of $4.1M representing an increase of approximately 4% over Q2 FY24 of $4.0M; (iii) Q2 FY25 operating income of $0.04M compared to Q2 FY24 operating loss of ($0.96M); and (iv) net loss attributable to common shareholders of ($0.5M) in Q2 FY25 compared to ($1.9M) in Q2 FY24.

FINANCIAL HIGHLIGHTS

Total Q2 FY25 revenue of $8.4M was down 7% compared to Q2 FY24 revenue of $9.0M. Revenue for the six months ended March 31, 2025 (“6M FY25’) of $17.0M was down approximately 5% compared to revenue of $18.0M for the six months ended March 31, 2024 (“6M FY24”). The decrease in monitoring revenues is driven principally by a decrease in people assigned to monitoring for clients in Virginia, and due to our recently sold Chilean subsidiary. This decrease was partially offset by revenue increases for clients in Illinois, Puerto Rico and the Bahamas who experienced increases in the number of people assigned to monitoring.
Gross Profit of $4.1M rose by 4% ($0.1M) in Q2 FY25 compared to Q2 FY24. Gross profit for 6M FY25 was $8.5M compared to gross profit of $8.2M for 6M FY24. This improvement stems from factors including reduced monitoring center costs, partly offset by a decrease in revenue.
Operating income in Q2 FY25 of $0.04M was up approximately 105% compared to an operating loss of ($0.96M) in Q2 FY24. Operating income for 6M FY25 of $0.2M was up approximately 115% compared to operating loss of ($1.1M) for 6M FY24. This rise in operating income is primarily due to a decrease in cost of revenue and a decrease in operating expense, partially offset by a decrease in revenue. Operating expenses were down $0.8M in Q2 FY25 compared to Q2 FY24, primarily due to a decrease in general and administrative payroll, benefits, and payroll taxes of $0.5M due to the sale of our Chilean subsidiary on November 1, 2024 and a settlement expense related to a contract dispute of $0.5M in Q2 FY24.
Adjusted EBITDA for Q2 FY25 was $1.3M compared to $0.8M for Q2 FY24. Adjusted EBITDA for 6M FY25 was $2.6M compared to Adjusted EBITDA for 6M FY24 of $1.9M primarily due to negative currency exchange rate movements of $0.6M in Q2 FY25 compared to Q2 FY24. Adjusted EBITDA in 6M FY25 as a percentage of revenue increased to 15.1%, compared to 10.3% for 6M FY24.
Cash balance of $3.4M at March 31, 2025 declined 4% compared to $3.6M at September 30, 2024. The modest decrease in cash position was due to increases in inventory purchases and payments to vendors, partially offset by an increase in accrued liabilities.
Net loss attributable to shareholders in Q2 FY25 was ($0.5M) compared to ($1.9M) in Q2 FY24, a decrease of $1.4M. Net loss attributable to shareholders in 6M FY25 was ($2.5M), compared to ($1.9M) for 6M FY24, a change principally attributable to negative currency exchange rate movements, partially offset by an increase in operating income.

“In the quarter ended March 31, 2025, we achieved strong gains in profitability, with both gross profit and operating income showing robust growth and Adjusted EBITDA surpassing Q2 FY24 results,” said Derek Cassell, Track Group’s CEO. “Gross profit rose by 4% year-over-year ($4.1M vs $4.0M in Q2 FY24), marking a clear indication of our operational resilience and focus on delivering higher-value, higher-margin business. Adjusted EBITDA also climbed to $1.3M in Q2 FY25, a 63% increase from $0.8M in Q2 FY24, reflecting our focus on cost management and strategic execution over the last six months.”

Business Outlook

Despite previous challenges from supply chain delays, the impact of the Coronavirus, and the phase-out of our 3G-based cellular devices in the U.S., Track Group stands resilient. The demonstrated financial growth evidenced in Q2 FY25 reinforces our confidence in the strategic reinvestment in technology and the implementation of new programs initiated in late FY24. These endeavors position us well for a sustained return to growth throughout FY25. Our outlook for FY25 is as follows:

	Actual						Outlook
	FY 2023			FY 2024			FY 2025
Revenue (in millions):	$	34.5	M	$	36.9	M	$34.5	–	35.5M

Adjusted EBITDA Margin:		11.1	%		14.6	%	13.5	–	16.5%

About Track Group, Inc.

Track Group designs, manufactures, and markets location tracking devices; as well as develops and sells a variety of related software, services, and accessories, networking solutions, and monitoring applications. The Company’s products and services are designed to empower professionals in security, law enforcement, corrections, and rehabilitation organizations worldwide with single-sourced offender management solutions that integrate reliable intervention technologies to support re-socialization and monitoring initiatives.

The Company currently trades under the ticker symbol “TRCK” on the OTCQB exchange. For more information, visit www.trackgrp.com.

Forward-Looking Statements

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “if”, “should” and “will” and similar expressions as they relate to Track Group, Inc., and subsidiaries (“Track Group”) are intended to identify such forward-looking statements. These statements are only predictions and reflect Track Group’s current beliefs and expectations with respect to future events and are based on assumptions and subject to risks and uncertainties and subject to change at any time. Track Group may from time-to-time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see “Risk Factors” in Track Group’s annual report on Form 10-K, its quarterly report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. New risks emerge from time to time. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

Non-GAAP Financial Measures

This release includes financial measures defined as “non-GAAP financial measures” by the Securities and Exchange Commission including non-GAAP EBITDA. These measures may be different from non- GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. Reconciliations of these non-GAAP financial measures are based on the financial figures for the respective period.

Non-GAAP Adjusted EBITDA excludes items included but not limited to interest, taxes, depreciation, amortization, impairment charges, gains and losses, currency effects, one-time charges or benefits that are not indicative of operations, charges to consolidate, integrate or consider recently acquired businesses, costs of closing facilities, stock based or other non-cash compensation or other stated cash and non-cash charges (the “Adjustments”).

The Company believes the non-GAAP measures provide useful information to both management and investors when factoring in the Adjustments. Specific disclosure regarding the Company’s financial results, including management’s analysis of results from operations and financial condition, are contained in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2023, and other reports filed with the Securities and Exchange Commission. Investors are encouraged to carefully read and consider such disclosure and analysis contained in the Company’s Form 10-K and other reports, including the risk factors contained in such Form 10-K.

James Berg
Chief Financial Officer
jim.berg@trackgrp.com

TRACK GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	March 31,			September 30,
	2025			2024
Assets
Current assets:
Cash	$	3,416,045		$	3,574,215
Accounts receivable, net of allowance for credit losses of $396,667 and $432,904, respectively		5,085,595			4,428,535
Prepaid expense and deposits		432,520			638,293
Inventory, net of reserves of $88,024 and $82,848, respectively		915,816			582,481
Assets held for sale		–			969,481
Total current assets		9,849,976			10,193,005
Property and equipment, net of accumulated depreciation of $300,052 and $430,003, respectively		392,423			317,206
Monitoring equipment, net of accumulated depreciation of $5,295,826 and $5,982,972, respectively		4,367,904			4,598,864
Intangible assets, net of accumulated amortization of $20,460,576 and $19,699,966, respectively		13,337,224			13,959,571
Goodwill		7,859,645			7,941,190
Other assets		1,160,885			660,170
Total assets	$	36,968,057		$	37,670,006

Liabilities and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable	$	2,398,228		$	3,082,467
Accrued liabilities		3,318,453			2,639,318
Liabilities held for sale		–			732,028
Total current liabilities		5,716,681			6,453,813
Long-term debt, net of current portion		42,680,070			42,639,197
Long-term liabilities		631,709			186,407
Total liabilities		49,028,460			49,279,417



Stockholders’ equity (deficit):
Common stock, $0.0001 par value: 30,000,000 shares authorized; 11,863,758 and 11,863,758 shares outstanding, respectively		1,186			1,186
Preferred stock, $0.0001 par value: 20,000,000 shares authorized; 0 shares outstanding		–			–
Series A Convertible Preferred stock, $0.0001 par value: 1,200,000 shares authorized; 0 shares outstanding		–			–
Paid in capital		302,600,546			302,600,546
Accumulated deficit		(315,791,294	)		(312,691,811	)
Accumulated other comprehensive income (loss)		1,129,159			(1,519,332	)
Total stockholders’ equity (deficit)		(12,060,403	)		(11,609,411	)
Total liabilities and stockholders’ equity (deficit)	$	36,968,057		$	37,670,006

TRACK GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) (Unaudited)

	Three Months Ended						Six Months Ended
	March 31,			March 31,			March 31,			March 31,
	2025			2024			2025			2024
Revenue:
Monitoring and other related services	$	7,867,975		$	8,758,650		$	16,309,282		$	17,433,136
Product sales and other		484,345			232,570			711,366			525,057
Total revenue		8,352,320			8,991,220			17,020,648			17,958,193

Cost of revenue:
Monitoring, products and other related services		3,515,023			4,230,498			7,023,784			8,204,487
Depreciation & amortization included in cost of revenue		723,331			793,887			1,458,556			1,583,351
Total cost of revenue		4,238,354			5,024,385			8,482,340			9,787,838

Gross profit		4,113,966			3,966,835			8,538,308			8,170,355

Operating expense:
General & administrative		2,127,145			3,173,866			4,558,263			5,931,753
Selling & marketing		964,743			810,441			1,865,932			1,516,972
Research & development		750,650			701,183			1,420,040			1,383,646
Depreciation & amortization		227,385			236,524			454,938			476,284
Loss on sale of subsidiary		–			–			(66,483	)		–
Total operating expense		4,069,923			4,922,014			8,365,656			9,308,655

Operating income (loss)		44,043			(955,179	)		172,652			(1,138,300	)

Other income (expense):
Interest expense, net		(565,844	)		(428,868	)		(1,134,804	)		(866,791	)
Currency exchange rate gain (loss)		34,830			(519,933	)		(1,464,432	)		19,013
Other income (expense), net		–			(3,443	)		–			(3,443	)
Total other income (expense)		(531,014	)		(952,244	)		(2,599,236	)		(851,221	)
Income (loss) before income taxes		(486,971	)		(1,907,423	)		(2,426,584	)		(1,989,521	)
Income tax expense (benefit)		30,145			(4,348	)		101,381			(86,907	)
Net income (loss) attributable to common shareholders		(517,116	)		(1,903,075	)		(2,527,965	)		(1,902,614	)
Release of cumulative translation adjustment for sale of subsidiary		–			–			1,390,913			–
Equity adjustment for sale of subsidiary		–			–			571,518			–
Foreign currency translation adjustments		(85,709	)		(36,754	)		686,060			(143,456	)
Comprehensive income (loss)	$	(602,825	)	$	(1,939,829	)	$	120,526		$	(2,046,070	)

Net income per share – basic
Net income per common share	$	(0.04	)	$	(0.16	)	$	(0.21	)	$	(0.17	)
Weighted average common shares outstanding		11,863,758			11,863,758			11,863,758			11,863,758
Net income per share – diluted
Net income per common share	$	(0.04	)	$	(0.16	)	$	(0.21	)	$	(0.17	)
Weighted average common shares outstanding		11,863,758			11,863,758			11,863,758			11,863,758

TRACK GROUP, INC. AND SUBSIDIARIES NON-GAAP ADJUSTED EBITDA MARCH 31 (Unaudited) (amounts in thousands, except share and per share data)

	Three Months Ended March 31,						Six Months Ended March 31,
	2025			2024			2025			2024
Non-GAAP Adjusted EBITDA
Net Income (loss) attributable to common shareholders	$	(517	)	$	(1,903	)	$	(2,528	)	$	(1,903	)
Interest expense, net		566			432			1,135			870
Depreciation and amortization		951			1,030			1,913			2,060
Income taxes (1)		30			(4	)		101			(87	)
Board compensation and stock-based compensation		75			50			150			103
Foreign exchange (gain)/loss		(35	)		520			1,464			(19	)
Loss on sale of subsidiary		–			–			66			–
Other charges, net (2)		249			663			267			826
Non-GAAP Adjusted EBITDA	$	1,319		$	788		$	2,568		$	1,850
Non-GAAP Adjusted EBITDA, percent of revenue		15.8	%		8.8	%		15.1	%		10.3	%
Weighted average common shares outstanding – basic		11,863,758			11,863,758			11,863,758			11,863,758
Non-GAAP earnings per share	$	0.11		$	0.07		$	0.22		$	0.16
Weighted average common shares outstanding – diluted		11,863,758			11,863,758			11,863,758			11,863,758
Non-GAAP earnings per share	$	0.11		$	0.07		$	0.22		$	0.16

(1	)	Currently, the Company has significant U.S. tax loss carryforwards that may be used to offset future taxable income, subject to IRS limitations. However, the Company is still subject to certain state, commonwealth, and other foreign based taxes.
(2	)	Other charges include expenses related to the board of directors, severance, a settlement related to a contract dispute, and other Chile monitoring center costs for our recently sold subsidiary.

The MIL Network –

May 15, 2025

MIL-OSI USA: Rep. Young Kim Delivers Opening Statement at East Asia and Pacific Subcommittee Hearing

Source: United States House of Representatives – Representative Young Kim (CA-39)

Washington, DC – Today, U.S. Representative Young Kim (CA-40), chairwoman of the House Foreign Affairs East Asia and Pacific Subcommittee, delivered an opening statement at today’s hearing titled, “National Economic Security: Advancing U.S. Interests Abroad.” 

Watch her remarks HERE or read her opening statement below.

Good morning and welcome to the East Asia and Pacific Subcommittee’s hearing on “National Economic Security: Advancing U.S. Interests Abroad.” 

In 2019, Ambassador William Burns, one of our most decorated diplomats and the former CIA Director, described the Department of State as “adrift.” 

Over the years, the Department has had trouble finding its purpose as functions and authorities have been stripped away or absorbed by the National Security Council, Department of Defense, and even agencies traditionally focused on domestic issues. 

For more than 170 years, economic statecraft was led by the Department of State. This changed in 1961 when President Kennedy sought to expand the administrative state, pulling functions and authorities out of the Department to create new agencies and organizations, including the United States Trade Representative which would be responsible for conducting all U.S. trade and investment diplomacy.  

The justification for pulling these trade and investment functions out of the Department was to improve the Government’s capacity to prioritize and support U.S. businesses, strengthen the export performance of U.S. industry, and assure fair international trade practices. 

However, it has effectively split our economic interests from our diplomatic priorities, which has resulted in several challenges: 

First, it has not helped increase the ability of U.S. businesses to access foreign markets.  

In practice, the Foreign Commercial Service (F-C-S) and Foreign Agricultural Service (F-A-S) officers are few in number and often positioned at U.S. embassies without alignment to our foreign policy priorities.   

When I travel abroad, I routinely meet with FCS personnel who explain that they spend most of their time engaged in trade shows and organizing events with minimal direct work on increasing and securing market access for American businesses.  

Because they are siloed off from our diplomatic efforts of the Department of State, they’re restricted in leveraging the other tools in our diplomatic toolkit to assist American companies.  

Second, the American market has been left susceptible to predatory foreign competition.  

Our ability to protect American businesses and workers has been severely hampered, leading to calls from across the country for the Executive to act and repatriate entire industries and sectors. 

 

President Trump, like his predecessors, has repeatedly said that “economic policy IS foreign policy.”   Unfortunately, we have not implemented the structural reforms needed to mobilize that sentiment.   

Even President Obama asked Congress for the authority to consolidate six agencies with trade and investment functions in 2012; this request was not supported by Congress. 

Bipartisan administrations have independently come to the same conclusion: the current alignment of functions and agencies charged with leading our economic statecraft effort is in need of structural reform. 

I agree that “economic security is national security”, and the key question we will be asking today is: what structural reforms are necessary to reflect this prioritization?  

We intend to answer that question in the Committee’s first comprehensive State Authorization legislation in more than 20 years.  

MIL OSI USA News –

May 15, 2025
MIL-OSI USA: ICE Los Angeles announces 239 illegal aliens were arrested during recent operation
Source: US Immigration and Customs Enforcement

LOS ANGELES – U.S. Immigration and Customs Enforcement arrested 239 illegal aliens during a weeklong operation from May 4 to May 10 focused on bolstering public safety in the greater Los Angeles area.

ICE Enforcement and Removal Operations and interagency partners, identified, detained and removed dangerous criminals throughout Los Angeles and surrounding cities. Criminal aliens in the U.S. illegally should utilize the CBP Home app to self-deport and avoid arrest by ICE.

Among the criminal aliens arrested during the operation included:
- Lan Pham, 49, of Vietnam, convicted involuntary manslaughter, assault with a deadly weapon, parole violations, drug violations and more.
- Manuel Angel Rodriguez Martinez, 40, of El Salvador, accused of aggravated rape of a minor or incapacitated individual in the category of continuing crime in his home country.
- Jorge Artero Meza-Rodriquez, 52, of Mexico, convicted of vehicle theft, assault with a deadly weapon and illegal reentry to the United States.
- Sung Park, 52, of Korea, convicted of voluntary manslaughter.
Several federal law enforcement agencies assisted ICE during the operation including the Drug Enforcement Administration, the FBI, the ATF, and the U.S. Marshals Service, along with state and local law enforcement partners.

Members of the public can report crime and suspicious activity by calling 866-347-2423 or completing the online tip form. Follow us on X at @ICEgov to learn more about ERO’s missions and operations.

Learn more about ICE Los Angeles’ mission to increase public safety in your community on X at @EROLosAngeles.

Download b-roll of an arrest made during the operation.

MIL OSI USA News –
May 15, 2025
MIL-OSI USA: AG Labrador Announces 12 Arrests in Statewide Crackdown on Child Exploitation

Source: US State of Idaho

Home Newsroom AG Labrador Announces 12 Arrests in Statewide Crackdown on Child Exploitation

BOISE — Attorney General Raúl Labrador announced the completion of Operation Unhinged, a statewide initiative led by the Idaho Internet Crimes Against Children (ICAC) Task Force in April 2025. The operation resulted in 12 arrests for internet crimes against children, doubling the 6 arrests made last April. Additional arrests may follow pending forensic reviews of seized devices.
Operation Unhinged involved the execution of 17 residential search warrants. Three cases were accepted for federal prosecution and the rest will be prosecuted in state court.
“Because of the structural changes we’ve made within the Attorney General’s Office—along with the dedication of our investigators and strong partnerships with law enforcement across the state—the ICAC Task Force is achieving results like never before,” stated Attorney General Labrador. “We are identifying more offenders, rescuing more victims, and sending a clear message: anyone who targets children in Idaho online will be found, and our office will use every tool available to prosecute them to the fullest extent of the law.”
The following individuals were arrested during Operation Unhinged:

Joseph Bingham, 25, Ada County
Alexander Buttle, 30, Ada County
William Strength, 43, Bannock County
Zachary Gilbert, 39, Bannock County
Connor Robinson, 28, Bonneville County
Luke Hughes, 38, Bonneville County
Alfred Brown, 61, Canyon County
Hector Martinez- Cabrerra, 34, Jerome County
Adam Tyler,34, Kootenai County
Shandon Singer, 33, Kootenai County
Dustin Angele, 21, Kootenai County
Jake Baptista, 25, Madison County

“We’re seeing incredible results with the number of arrests we are making across the state,” stated Nicholas Edwards, Chief Investigator in the Attorney General’s Office. “We are going to keep arresting those who commit these crimes, but we also need to focus on outreach, training, and education to protect Idaho’s children.”
Operation Unhinged resulted in a spike in public presentations and education. The Task Force conducted 53 community outreach events with approximately 1,390 attendees. The Task Force also had an opportunity to showcase its newest weapon in the fight against online sexual exploitation: Badger the ESD K9.
“It’s a privilege to serve as the first K9 officer in the Attorney General’s Office, and Badger has already proven himself an incredible asset to the Task Force,” stated Investigator Lauren Lane. “Badger is a triple threat: he helps us find electronic devices on search warrants, the public—especially kids—love seeing him at our presentations, and he supports the mental wellness of our officers and other staff who have to view terrible images and videos depicting the sexual abuse of children.”
Badger attended 7 public presentations and helped investigators find electronic storage devices on 8 search warrants during April’s Operation Unhinged.
The Task Force also trained 106 law enforcement professionals in April and will continue to direct substantial resources to training law enforcement throughout the state.
Operation Unhinged was Idaho’s contribution to the national Operation Safe Online Summer, a joint effort of all 61 ICAC Task Forces throughout the country to arrest those engaged in the online sexual exploitation of children.
The operation was supported by a coalition of agencies, including the Idaho State Police, Boise Police Department, Coeur d’Alene Police Department, Idaho Falls Police Department, Meridian Police Department, Post Falls Police Department, Pocatello Police Department, Nampa Police Department, Chubbuck Police Department, Rexburg Police Department, Bonners Ferry Police Department, Moscow Police Department, Fruitland Police Department, Spirit Lake Police Department, Homedale Police Department, Twin Falls Police Department, Sun Valley Police Department, Jerome Police Department, Wilder Police Department, Middleton Police Department, Rupert Police Department, Heyburn Police Department, Bonneville County Sheriff’s Office, Canyon County Sheriff’s Office, Ada County Sheriff’s Office, Minidoka County Sheriff’s Office, Benewah County Sheriff’s Office, Cassia County Sheriff’s Office, Clearwater County Sheriff’s Office, Canyon County Prosecutor’s Office, Kootenai County Prosecutor’s Office, Idaho Probation and Parole, Federal Bureau of Investigation (FBI), and Homeland Security Investigations (HSI).
The Idaho ICAC Task Force urges the public to report suspected online exploitation to local law enforcement, the ICAC Unit at 208-947-8700, or the National Center for Missing and Exploited Children at 1-800-843-5678 or www.cybertipline.com. For more information or to access resources, visit ICACIdaho.org.
To learn more about ESD K9 Badger or to request a demonstration, visit the Idaho ICAC Task Force’s website: https://www.icacidaho.org/esd-k9-badger/.
About the Idaho ICAC Task Force: The Idaho ICAC Task Force, led by the Idaho Attorney General’s Office, is a coalition of federal, state, and local law enforcement agencies dedicated to investigating and prosecuting internet crimes against children while promoting community education to prevent exploitation.
The charges listed above are merely accusations and the defendants are presumed innocent until and unless proven guilty.

MIL OSI USA News –

May 15, 2025
MIL-OSI Security: Jefferson County Man Admits to Role in Drug Trafficking Operation in Eastern Panhandle

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

MARTINSBURG, WEST VIRGINIA – Matthew David Viands, age 32, of Summit Point, West Virginia, has admitted to his role in a drug trafficking organization that distributed fentanyl and other illicit drugs in the Eastern Panhandle.

According to court documents, Viands was a distributor of fentanyl for the organization. Viands also admitted to failing to appear following his pretrial release in the case.

Viands faces up to 20 years in prison for the drug charge and faces up to 10 years for failing to appear. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Of the 82 defendants, 80 others have been convicted. Fifty-nine defendants have been sentenced. One defendant, Charles Delroy Singletary, age 44, of Baltimore, Maryland, remains a fugitive. More in a recent release here: https://www.justice.gov/usao-ndwv/pr/six-more-sentenced-eastern-panhandle-fentanyl-drug-trafficking-operation

Assistant U.S. Attorneys Lara Omps-Botteicher and Kyle Kane are prosecuting the case on behalf of the government.

U.S. Magistrate Judge Robert W. Trumble presided.

Investigative agencies include the Federal Bureau of Investigation (Pittsburgh Field Division and Baltimore Field Division); the Drug Enforcement Administration; the U.S. Department of Homeland Security Investigations; the United States Postal Inspection Service; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Marshals Service; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the West Virginia Air National Guard; the Jefferson County Sheriff’s Office; the Berkeley County Sheriff’s Office; Ranson Police Department; Martinsburg Police Department; Charles Town Police Department; the Berkeley County Prosecuting Attorney’s Office; Stafford County Sheriff’s Office (Virginia); Frederick County Sheriff’s Office (Maryland); Frederick County Sheriff’s Office (Virginia); Winchester Police Department; and the Clarke County Sheriff’s Office (Virginia).

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

MIL Security OSI –

May 15, 2025

MIL-OSI: COFACE SA: Combined Shareholders’ General Meeting of 14 May 2025 approved all the proposed resolutions

Source: GlobeNewswire (MIL-OSI)

COFACE SA: Combined Shareholders’ General Meeting of 14 May 2025 approved all the proposed resolutions

Paris, 14 May 2025 – 17.45

The Combined Shareholders’ General Meeting of COFACE SA was held on 14 May 2025 at the Company’s headquarters in Bois-Colombes, and it was chaired by Mr Bernardo Sanchez Incera, Chairman of the Board of Directors.

All the proposed resolutions were adopted by COFACE SA’s shareholders, including the payment of a dividend of €1.40 per share for the 2024 financial year with the coupon date set at 20 May 2025, and the payment date at 22 May 2025.

All documents related to this General Meeting are available on COFACE SA institutional website (www.coface.com) and more precisely under “Investors/General Assembly”.

The resolution voting results are online at:

https://www.coface.com/investors/regulated-information/documents-relating-to-the-general-assembly

CONTACTS

ANALYSTS / INVESTORS
Thomas JACQUET: +33 1 49 02 12 58 – thomas.jacquet@coface.com
Rina ANDRIAMIADANTSOA: +33 1 49 02 15 85 – rina.andriamiadantsoa@coface.com

MEDIA RELATIONS
Saphia GAOUAOUI: +33 1 49 02 14 91 – saphia.gaouaoui@coface.com
Adrien BILLET: +33 1 49 02 23 63 – adrien.billet@coface.com

FINANCIAL CALENDAR 2025
(subject to change)
H1-2025 results: 31 July 2025 (after market close)
9M-2025 results: 3 November 2025 (after market close)

FINANCIAL INFORMATION
This press release, as well as COFACE SA’s integral regulatory information, can be found on the Group’s website: http://www.coface.com/Investors

For regulated information on Alternative Performance Measures (APM), please refer to our Interim Financial Report for H1-2024 and our 2024 Universal Registration Document (see part 3.7 “Key financial performance indicators”).

Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technology by Wiztrust.
You can check the authenticity on the website www.wiztrust.com.

COFACE: FOR TRADE
As a global leading player in trade credit risk management for more than 75 years, Coface helps companies grow and navigate in an uncertain and volatile environment.
Whatever their size, location or sector, Coface provides 100,000 clients across some 200 markets with a full range of solutions: Trade Credit Insurance, Business Information, Debt Collection, Single Risk insurance, Surety Bonds, Factoring.
Every day, Coface leverages its unique expertise and cutting-edge technology to make trade happen, in both domestic and export markets.
In 2024, Coface employed ~5,236 people and registered a turnover of €1.84 billion.

www.coface.com

COFACE SA is quoted in Compartment A of Euronext Paris
Code ISIN: FR0010667147 / Ticker: COFA

DISCLAIMER – Certain declarations featured in this press release may contain forecasts that notably relate to future events, trends, projects or targets. By nature, these forecasts include identified or unidentified risks and uncertainties, and may be affected by many factors likely to give rise to a significant discrepancy between the real results and those stated in these declarations. Please refer to chapter 5 “Main risk factors and their management within the Group” of the Coface Group’s 2024 Universal Registration Document filed with AMF on 5 April 2024 under the number D.25-0227 in order to obtain a description of certain major factors, risks and uncertainties likely to influence the Coface Group’s businesses. The Coface Group disclaims any intention or obligation to publish an update of these forecasts, or provide new information on future events or any other circumstance.

Attachment

2025 05 14 COFACE SA – Combined General Meeting on 14 May 2025 – Voting results

The MIL Network –

May 15, 2025

MIL-OSI USA: East Asia and Pacific Subcommittee Chairwoman Kim Delivers Opening Remarks at Hearing on National Economic Security

Source: US House Committee on Foreign Affairs

Media Contact 202-321-9747

WASHINGTON, D.C. – Today, House Foreign Affairs East Asia and Pacific Subcommittee Chairwoman Young Kim delivered opening remarks at a full committee hearing titled, “National Economic Security, Advancing US Interests Abroad.”

Watch Here

-Remarks-

Good morning and welcome to the East Asia and the Pacific Subcommittees, national security, national economic security advancing U.S. interests abroad. In 2019, William Burns, one of our most decorated diplomats and former CIA director described the Department of State as adrift. Over the years, the department has had trouble finding its purpose as functions and authorities have been stripped away or absorbed by the National Security Council, Department of Defense, and even agencies traditionally focused on domestic issues.

For more than 170 years, economic statecraft was led by the Department of State. This changed in 1961 when President Kennedy sought to expand the administrative state, pulling functions and authorities out of the department to create new agencies and organizations, including the United States Trade Representative, which would be responsible for conducting all US trade and investment diplomacy. The justification for pulling these trade and investment functions out of the department was to improve the government’s capacity to prioritize and support US businesses, strengthen the export performance of U.S. industry and assure fair international trade practices. However, it has effectively split our economic interests from our diplomatic priorities, which has resulted in several challenges.

First challenge is that it has not helped to increase the ability of U.S. businesses to access foreign markets. In practice, the foreign commercial service and foreign agriculture service officers are few in number and often positioned at U.S. embassies without alignment to our foreign policy priorities. When I travel abroad, I routinely meet with FCS personnel who explain that they spend most of their time engaged in trade shows and organizing events with minimal direct work on increasing and securing market access for American businesses. Because they are siloed off from our diplomatic efforts of the Department of State, they are restricted in leveraging the other tools in our diplomatic toolkit to assist American companies.

Second challenge is that the American market has been left susceptible to predatory foreign competition. Our ability to protect American businesses and workers has been severely hampered, leading to calls from across the country for the executive to act and repatriate entire industries and sectors. President Trump, like his predecessors, has repeatedly said that economic security, economic policy is foreign policy. Unfortunately, we have not implemented the structural reforms needed to mobilize that sentiment.

Even President Obama asked Congress for the authority to consolidate six agencies with trade and investment functions in 2012. This request was not supported by Congress. Bipartisan administrations have independently come to the same conclusion. The current alignment of functions and agencies charged with leading our economic statecraft effort is in need of structural reform. I agree that economic security is national security, and the key question we’ll be asking today is what structural reforms are necessary to reflect this prioritization. So we intend to answer that question in our committee’s first comprehensive state authorization legislation that we will be doing in more than 20 years.

###

MIL OSI USA News –

May 15, 2025
MIL-OSI Security: Suffolk Man Sentenced to 25 Years in Prison for Sexually Exploiting Minors

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

NORFOLK, Va. – A Suffolk man was sentenced today to 25 years in prison for sexual exploitation of children.

According to court documents, Gary Owens Jr., 42, of Suffolk, engaged in a scheme to “catfish” teenage boys. Using images of a real, adult woman, including sexually explicit images, Owens pretended to be a minor female named “Jessica Lincon” on Instagram before enticing boys to Kik to obtain sexually explicit images and videos from them.

Owens exploited children over at least a five-year period from 2019 to 2023 and amassed a collection of at least 1,800 images and videos of child sexual abuse material and age questionable material. Law enforcement identified at least 35 minor victims in 2022 alone.

Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Sean Ryan, Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Division, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes. This case was investigated by the FBI Washington Field Office Child Exploitation and Human Trafficking Task Force. Significant assistance was provided by the FBI’s Norfolk Field Office.

Assistant U.S. Attorneys Laura D. Withers and Rebecca Gantt prosecuted the case.

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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-78.

MIL Security OSI –

May 15, 2025
MIL-OSI Security: Columbia Sex Offender Charged with Child Pornography Offense

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

JEFFERSON CITY, Mo. – A Columbia, Mo., man has been indicted in federal court for transportation and possession of child pornography.

Andrew Charles Nicholls, 38, previously charged by complaint, was indicted by a federal grand jury on May 13, 2025. The indictment alleges that Nicholls, who has a prior conviction for child molestation in the second degree, transported and possessed child pornography images and videos depicting pre-pubescent children engaging in sexually explicit conduct using TOR, a dark web browser intended to conceal one’s online activities.

The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

Under federal statutes, if convicted, Nicholls faces federal prison sentence of up to 40 years to be served without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Ashley Turner. It was investigated by the Boone County Sheriff’s Cyber Crime Task Force with assistance from the FBI.

Project Safe Childhood

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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

MIL Security OSI –

May 15, 2025
MIL-OSI USA: Rep. Gabe Vasquez Highlights How Republican SNAP Cuts Will Devastate New Mexico
Source: US Representative Gabe Vasquez’s (NM-02)

WASHINGTON, D.C. – Today, U.S. Representative Gabe Vasquez (NM-02) issued a forceful rebuke of Republican efforts to slash the Supplemental Nutrition Assistance Program (SNAP) as part of their proposed reconciliation framework, warning that the cuts would devastate working families, small businesses, and rural communities in New Mexico. The reconciliation bill would cut billions of dollars from SNAP, as well as critical health care programs, in order to give tax cuts to the ultra-wealthy.

“This committee has historically come together across party lines to support farmers and families. But today, I’m ashamed that we are throwing that legacy aside to gut SNAP, one of the most effective anti-hunger programs in our country,” Vasquez said during his opening remarks. “And I’m not just ashamed—I’m angry. Angry because some members of this committee are taking food off the table from the families I represent in southern New Mexico.”

WATCH: VASQUEZ OPENING REMARKS

This afternoon, Vasquez reached out to his constituents to hear how SNAP cuts could impact them:
- “My son and his partner depend on SNAP to get nutritious food. My son is a disabled veteran with medically based nutritional deficiencies. We have paid taxes all of our lives, and believe the most important priority is to provide for our veterans.” – Miriam, Quemado
- “I’m 63, disabled, and on food stamps because my $900 a month Social Security check barely covers my bills. Last month, my rent increased by 35%, and my auto insurance increased by 11%. If I lose food stamps, I won’t be able to afford to buy food. I live in a rural area where our food bank depends on the federal government. Their shelves are empty right now, and the government has cut out assistance to food banks.” – Michelle, Deming
- “Cuts to SNAP would have a devastating impact on my family by making it harder to afford basic groceries and forcing us to choose between food, rent, and other essentials. Reducing these benefits threatens our health, our children’s ability to focus and succeed in school, and our overall stability. It also harms local economies by pulling money out of grocery stores and small businesses. SNAP isn’t a handout, it’s a lifeline that allows families to survive with dignity, and cutting it will only increase hunger, poverty, and long-term hardship.” – Bernadine, Zuni
Vasquez also warned that the partisan attack on SNAP threatens to derail progress on a bipartisan Farm Bill, jeopardizing key programs for New Mexico’s farmers, ranchers, and conservation efforts.

***

PARA PUBLICACIÓN INMEDIATA

13 de mayo de 2025

Vásquez Destaca Cómo los Recortes a SNAP Devastarán a Nuevo México

WASHINGTON, D.C. – Hoy, el Congresista Gabe Vásquez (NM-02) condenó los esfuerzos republicanos de recortar el Programa de Asistencia Nutricional Suplementaria (SNAP) como parte de su propuesta de proyecto de reconciliación, advirtiendo que estos recortes devastarían a las familias trabajadoras, los pequeños negocios y las comunidades rurales de Nuevo México. El proyecto de reconciliación recortaría miles de millones de dólares de SNAP, así como programas críticos de atención médica, con el propósito de otorgar recortes fiscales a los ultra-ricos.

“Este comité, históricamente, ha trabajado de forma bipartidista para apoyar a nuestros agricultores y familias. Pero hoy, me avergüenza que estemos dejando de lado ese legado para desmantelar SNAP, uno de los programas contra el hambre más efectivos en nuestro país,” dijo Vásquez durante sus declaraciones iniciales. “Y no solo me siento avergonzado—estoy indignado. Indignado porque algunos miembros de este comité están quitándole la comida de la mesa a las familias que represento en el sur de Nuevo México.”

VEA: COMENTARIOS INICIALES DEL CONGRESISTA VÁSQUEZ

Esta tarde, el Congresista Vásquez se comunicó con sus constituyentes para escuchar cómo los recortes a SNAP podrían afectarlos:
- “Mi hijo y su pareja dependen de SNAP para obtener alimentos nutritivos. Mi hijo es un veterano discapacitado con deficiencias nutricionales médicas. Hemos pagado impuestos toda nuestra vida y creemos que la prioridad más importante es cuidar a nuestros veteranos.” – Miriam, Quemado
- “Tengo 63 años, estoy discapacitada y dependo de los cupones de alimentos porque mi cheque del Seguro Social de $900 al mes apenas cubre mis cuentas. El mes pasado, mi renta aumentó un 35 % y mi seguro de auto subió un 11 %. Si pierdo los cupones de alimentos, no podré comprar comida. Vivo en una zona rural donde el banco de alimentos depende del gobierno federal. Sus despensas están vacías en este momento, y el gobierno ha eliminado la asistencia para los bancos de alimentos.” – Michelle, Deming
- “Los recortes al Programa de Asistencia Nutricional Suplementaria (SNAP) tendrán un impacto devastador en mi familia al dificultar la compra de comestibles básicos y obligarnos a elegir entre comida, renta y otras necesidades esenciales. Reducir estos beneficios pone en riesgo nuestra salud, la capacidad de nuestros hijos para concentrarse y tener éxito en la escuela, y nuestra estabilidad general. También daña las economías locales al quitar dinero de los supermercados y pequeños negocios. SNAP no es una limosna, es una línea de vida que permite a las familias sobrevivir con dignidad, y recortarlo solo aumentará el hambre, la pobreza y las dificultades a largo plazo.” – Bernadine, Zuni
Vásquez también advirtió que este ataque partidista contra SNAP amenaza con descarrilar el progreso hacia una Ley Agrícola bipartidista, poniendo en riesgo programas clave para los agricultores, ganaderos y esfuerzos de conservación en Nuevo México.

###

MIL OSI USA News –
May 15, 2025
MIL-OSI USA: ICE removes Chinese national convicted of photographing military installations

Source: US Immigration and Customs Enforcement

PHILADELPHIA — U.S. Immigration and Customs Enforcement Philadelphia removed Fengyun Shi, a citizen of China with a final order of removal, to China on May 7. ICE’s Office of the Principal Legal Advisor designated Shi as a national security risk based on his conviction for use of an aircraft for the unlawful photographing of designated military installations.

“The removal of Fengyun Shi reflects ICE’s steadfast dedication to protecting the American people and upholding national security. His unlawful actions posed a significant risk to sensitive military installations, and his removal ensures that he is no longer a threat to the nation,” said acting ERO Philadelphia Field Office Director Brian McShane. “ICE will continue to enforce immigration laws with the highest priority placed on safeguarding the United States and its citizens.”

On Aug. 11, 2021, U.S. Customs and Border Protection admitted Shi to the United States at the San Francisco International Airport in San Francisco, California, as an F-1 nonimmigrant for the duration of his status as an agricultural engineering graduate student at the University of Minnesota.

The FBI arrested Shi in San Francisco on Jan. 18, 2024, for prohibited operation of an unmanned aircraft system, violation of national defense airspace, and photography of defense installations after an investigation revealed Shi utilized a commercial drone to take photographs of U.S. naval bases in the Norfolk, Virginia, area.

The U.S. Department of State terminated Shi’s F-1 nonimmigrant visa due to his pending criminal charges on Jan. 25, 2024, and on Feb. 7, 2024, the University of Minnesota terminated him from the Student and Exchange Visitor Program.

The U.S. District Court for the Eastern District of Virginia’s Newport News Division convicted Shi for use of an aircraft for the unlawful photographing of designated installation without authorization on Oct. 2, 2024. He was sentenced to six months of incarceration and one year of supervised release.

ERO Philadelphia encountered Shi at Federal Correctional Institution Allenwood in White Deer, Pennsylvania, and lodged an immigration detainer against him on Nov. 13, 2024.

On March 7, ERO Philadelphia arrested Shi upon his release from FCI-ALS and detained him at the Clinton County Correctional Facility in McElhatten, Pennsylvania. On the same date, ERO Philadelphia served him with a notice to appear charging removability pursuant to Section 237 of the Immigration and Nationality Act.

On March 24, an immigration judge in Elizabeth, New Jersey, ordered Shi removed from the United States to China.

Members of the public with information can report crimes or suspicious activity by dialing the ICE Tip Line at 866-DHS-2-ICE (866-347-2423) or by completing ICE’s online tip form.

Learn more about ICE Philadelphia’s mission to increase public safety in our Pennsylvania, Delaware and West Virginia communities on X at @EROPhiladelphia.

MIL OSI USA News –

May 15, 2025
MIL-OSI: XenDex Prepares to Reveal Full Platform Mockup Design as $XDX Presale Nears Final Countdown
Source: GlobeNewswire (MIL-OSI)

SYDNEY, May 14, 2025 (GLOBE NEWSWIRE) — XenDex, the first all-in-one decentralized exchange on the XRP Ledger, is proud to announce that its full platform is actively in development, and a first-look mockup design is set to be revealed in a few hours.

With all core features being built into a sleek, user-friendly interface, XenDex is delivering what no other XRPL-based project has offered to date: a unified DeFi experience that combines AI-powered copy trading, non-custodial lending and borrowing, staking, cross-chain trading, and DAO governance, all within a single platform.

Purchase $XDX At A low Price

XenDex Platform Preview Coming Soon

To demonstrate the depth of development underway, XenDex will release visual mockups of the upcoming platform, giving investors and community members an exclusive preview of how the platform will look, feel, and function.

From live trading interfaces to lending dashboards, staking portals, and AI copy trading modules, this upcoming design reveal will provide a clear glimpse into the future of decentralized finance on XRP.

Buy $XDX Now & Earn Rewards

Why You Should Join the $XDX Presale Before It’s Too Late

As development accelerates, the $XDX token presale is rapidly approaching sellout, and the current entry price will not last much longer.
- Current Rate: 1.25 XRP = 10 XDX
- Minimum Buy: 150 XRP
- Soft Cap: Reached
Buy Now Before Presale Ends: https://xendex.net/presale

Once sold out, the next chance to acquire $XDX will be on major centralized exchanges, at a significantly higher price.

$XDX: The Utility Token Powering XenDex

The $XDX token unlocks full access to all features on the XenDex platform, including:
- Governance voting
- Reduced trading & borrowing fees
- Staking rewards & liquidity incentives
- Copy trading integration
- Collateral for lending protocols
- Priority access to new features and airdrops
Buy XDX Before Listing On Exchange

XenDex Platform Key Features
- AI-Powered Copy Trading – Mirror professional traders to maximize gains
- Lending & Borrowing – Borrow and lend XRP and $XDX with smart contract security
- Cross-Chain Trading – Swap XRP with tokens across BNB Chain, Solana, and more
- Staking & Yield Farming – Earn while supporting platform liquidity
- DAO Governance – $XDX holders vote on upgrades, proposals, and token listings
With its clean, mobile-friendly design, XenDex is being built to onboard everyone, from DeFi beginners to institutional traders.

Join the XenDex Movement

Website: https://xendex.net
Presale: https://xendex.net/presale
Telegram: https://t.me/xendexcommunity
Twitter/X: https://x.com/xendex_xrp
Docs: https://xdxdocs.gitbook.io

Contact:
Frank Richards
Frank@xendex.net

Disclaimer: This is a paid post provided by XenDex. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. This content is for informational purposes only and should not be considered financial, investment, or trading advice. Investing in crypto and mining-related opportunities involves significant risks, including the potential loss of capital. It is possible to lose all your capital. These products may not be suitable for everyone, and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. However, due to the inherently speculative nature of the blockchain sector—including cryptocurrency, NFTs, and mining—complete accuracy cannot always be guaranteed.

Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release. In the event of any legal claims or charges against this article, we accept no liability or responsibility. Globenewswire does not endorse any content on this page.

Legal Disclaimer: This media platform provides the content of this article on an “as-is” basis, without any warranties or representations of any kind, express or implied. We assume no responsibility for any inaccuracies, errors, or omissions. We do not assume any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information presented herein. Any concerns, complaints, or copyright issues related to this article should be directed to the content provider mentioned above.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aefbc255-de35-4f03-a6ec-b8786296bf8d

The MIL Network –
May 15, 2025
MIL-OSI Security: Michigan Man Arrested and Charged with Attempting to Attack Military Base on Behalf of ISIS

Source: United States Attorneys General 1

A Melvindale man – and former member of the Michigan Army National Guard – was arrested today after he attempted to carry out a plan to conduct a mass-shooting at a U.S. military base in Warren, Michigan, on behalf of the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization.

Ammar Abdulmajid-Mohamed Said, 19, is charged in a criminal complaint with attempting to provide material support to a foreign terrorist organization and distributing information related to a destructive device.

“This defendant is charged with planning a deadly attack on a U.S. military base here at home for ISIS,” said Sue J. Bai, head of the Justice Department’s National Security Division. “Thanks to the tireless efforts of law enforcement, we foiled the attack before lives were lost. We will not hesitate to bring the full force of the Department to find and prosecute those who seek to harm our men and women in the military and to protect all Americans.”

“ISIS is a brutal terrorist organization which seeks to kill Americans. Helping ISIS or any other terrorist organization prepare or carry out acts of violence is not only a reprehensible crime – it is a threat to our entire nation and way of life,” said U.S. Attorney Jerome F. Gorgon Jr. for the Eastern District of Michigan. “Our office will not tolerate such crimes or threats, and we will use the full weight of the law against anyone who engages in terrorism.”

“The defendant allegedly tried to carry out an attack on a military facility in support of ISIS, which was disrupted thanks to the good work of the FBI and our partners,” said Assistant Director Donald M. Holstead of the FBI’s Counterterrorism Division. “The FBI is steadfast in our commitment to detect and stop terrorist plans aimed at the American homeland or at U.S. interests overseas.”

“The arrest of this former soldier is a sobering reminder of the importance of our counterintelligence efforts to identify and disrupt those who would seek to harm our nation,” said Brig. Gen. Rhett R. Cox, the commanding general of Army Counterintelligence Command. “I commend the tireless work of our special agents and FBI partners who worked together to investigate and apprehend this individual. We will continue to collaborate with our partners to prevent similar incidents in the future. We urge all soldiers to remain vigilant and report any suspicious activity to their chain of command, as the safety and security of our Army and our nation depends on our collective efforts to prevent insider threats.”

According to the complaint, Said informed two undercover law enforcement officers of a plan he had devised and formulated to conduct a mass-shooting at the U.S. Army’s Tank-Automotive & Armaments Command (TACOM) facility at the Detroit Arsenal in Warren, Michigan. In April 2025, the two undercover officers indicated they intended to carry out Said’s plan at the direction of ISIS. In response, Said provided material assistance to the attack plan, including providing armor-piercing ammunition and magazines for the attack, flying his drone over TACOM to conduct operational reconnaissance, training the undercover employees on firearms and the construction of Molotov cocktails for use during the attack, and planning numerous details of the attack including how to enter TACOM and which building to target.

On May 13 – the scheduled day of the attack – Said was arrested after he traveled to an area near TACOM and launched his drone in support of the attack plan. He will make his initial court appearance today in the Eastern District of Michigan. The U.S. Attorney’s Office will be asking the court to hold Said in pretrial detention because of his danger to the community and the risk that he will flee.

Based on the charges in the complaint, Said faces a maximum penalty of 20 years in prison for each count if convicted.

The FBI’s Joint Terrorism Task Force is investigating the case.

Assistant U.S. Attorney Douglas Salzenstein for the Eastern District of Michigan and Trial Attorneys John Cella and Charles Kovats of the National Security Division’s Counterterrorism Section are prosecuting the case.

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

MIL Security OSI –

May 15, 2025
MIL-OSI Security: Bakersfield, California, Man Pleads Guilty to Striking a Sheriff Helicopter with a Laser

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

Brett Curtis Hair, 23, of Bakersfield, pleaded guilty today to aiming the beam of a laser pointer at an aircraft, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, on Sept. 11, 2024, at approximately 12:17 a.m., Kern County Sheriff’s Office helicopter Air 1 was on routine patrol when the cockpit was struck by a bright green laser beam. The Tactical Flight Officer pinpointed the source of the laser emanating from a residence within the Federal Aviation Administration’s (FAA) Critical Flight Zone of Bakersfield’s Meadow Field Airport. At least 15 additional laser strikes appeared to be intentional as the light tracked and struck the helicopter. Once Air 1 arrived above the residence, Hair exited the garage and immediately began striking the helicopter’s cockpit again with the high-powered laser. During the laser strikes, the pilot and Tactical Flight Officer experienced visual interference as the laser repeatedly struck and illuminated the cockpit, making it difficult to see the aircraft’s instruments.

According to the FAA, aiming a laser at an aircraft is a serious safety risk, because many high-powered lasers can incapacitate pilots and interfere with the safe operation of their aircraft. In 2024, pilots reported 12,840 laser strikes to the FAA.

This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

Hair is scheduled for sentencing on Aug. 4, 2025. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

MIL Security OSI –

May 15, 2025
MIL-OSI Security: Pharmaceutical Manufacturer Assertio Therapeutics, Inc. to Pay $3.6 Million to Resolve Allegations That it Violated the False Claims Act in Connection with Marketing Its Fentanyl Product

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

The Justice Department announced on May 5, 2025, that Assertio Therapeutics, Inc., formerly known as Depomed, Inc., a pharmaceutical company headquartered in Lake Forest, Illinois, has agreed to pay $3.6 million to resolve claims that Assertio violated the False Claims Act by causing the submission of false claims for the transmucosal immediate-release fentanyl drug Lazanda for individuals who did not have breakthrough cancer pain.

The settlement was announced by U.S. Attorney Edward R. Martin, Jr., Acting Assistant Attorney General Yaakov Roth of the Justice Department’s Civil Division, Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General, and FBIActing Assistant Director Darren Cox of the Criminal Investigative Division.

Lazanda, a fentanyl nasal spray, is approved by the FDA solely for break-through cancer pain in patients who are already receiving and who are tolerant to opioid therapy for their underlying persistent cancer pain. The United States alleges that between 2013 and 2017, Assertio caused the submission of false claims to the Medicare and TRICARE programs by focusing its marketing on pain specialists who were prescribing high volumes of transmucosal immediate-release fentanyl, known as TIRF products, including those who were flagged for diversion or who were later indicted.

The United States further alleges that Assertio placed high-volume TIRF prescribers on its speakers’ bureau and advisory boards and developed its “Signature Support Program” to ensure that Lazanda prescriptions would be approved by insurance companies, including Medicare Part D plans. The United States contends that, as a result of Assertio’s marketing, prescribers wrote Lazanda prescriptions for Medicare and TRICARE beneficiaries who did not have breakthrough cancer pain and that Assertio therefore caused false claims to be submitted to Medicare and TRICARE from high-volume thirteen prescribers.

“This company took steps to boost its profits despite the risk of boosting the deadly opioid epidemic,” said U.S. Attorney Martin. “My office will continue to seek out violations like this that demonstrate a brazen disregard for the safety of the public.”

“The Department is committed to pursuing companies that contributed to the tragic opioid epidemic,” said Acting Assistant Attorney General Roth. “This resolution demonstrates that companies that recklessly marketed powerful opioids, like fentanyl, will be held accountable for their role in the opioid crisis, which continues to plague our country today.”

“As today’s settlement demonstrates, the FBI and our law enforcement partners remain committed to investigating violations of the False Claims Act,” said FBI Assistant Director in Charge Steven J. Jensen of the Washington Field Office. “We will continue holding companies accountable for fraudulent marketing that puts patients at risk.”

“Violations of the False Claims Act such as the illegal prescribing practices alleged in this settlement are especially egregious considering the opioid epidemic,” said Deputy Inspector General Schrank. “HHS-OIG will continue to work with our law enforcement partners to ensure health care providers and corporations involved in schemes that threaten patient safety are held accountable.”

The civil settlement includes the resolution of claims brought in 2017 under the qui tam, or whistleblower, provisions of the FCA by Noelle Webb and Nicole Novellino, who previously worked at Depomed as sales representatives. The FCA authorizes private parties to sue on behalf of the United States for false claims and share in any recovery. The qui tam case is captioned United States ex rel. Webb et al. v. Assertio Therapeutics, Inc., f/k/a Depomed, Inc., No. 1:17-02309 (D.D.C.). The relators’ share of these proceeds has not yet been determined.

The Justice Department’s Civil Division, Commercial Litigation Branch – Fraud Section, and the U.S. Attorney’s Office for the District of Columbia handled this matter. The FBI, led by its Washington Field Office; the FDA’s Office of Criminal Investigations; and the Department of Health and Human Services Office of Inspector General provided substantial assistance in the investigation and resolution.

Today’s settlement illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law.

This case is being handled by Assistant U.S. Attorney Darrell Valdez for the District of Columbia, Senior Trial Counsel Sarah Arni, Trial Attorney Matthew Arrow, and Assistant Director Natalie Waites of the Civil Division’s Fraud Section.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

MIL Security OSI –

May 15, 2025
MIL-OSI Security: Charleston Man Sentenced for Federal Tax Crime

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

CHARLESTON, W.Va. – Luther A. Hanson, 72, of Charleston, was sentenced today to three years of federal probation, including eight months on home detention, and fined $5,000 for willful failure to pay over taxes. The Court previously determined that Hanson owed $146,771.37 to the United States Department of the Treasury as a result of his criminal scheme. Hanson paid the entire $146,771.37 prior to today’s sentencing.

According to court documents and statements made in court, from at least 2015 to September 2020, Hanson willfully and intentionally did not withhold or pay over approximately $149,905.38 in employment taxes to the Internal Revenue Service (IRS) for two employees of his accounting services businesses. Hanson owns, manages, controls and operates The Estate Planning Group Inc. and L.A. Hanson Accounting Services, and the two employees provided accounting and account services for both.

Hanson admitted that some time prior to June 30, 2015, he and the two employees agreed that he would begin treating them as independent contractors. Hanson further admitted that he knew this arrangement would relieve him of paying the employer portion of the employment taxes to the IRA and of withholding the employee withholdings of the two employees.

As a result of this arrangement, Hanson paid gross wages by check to the two employees even though neither changed their job duties or responsibilities. Hanson admitted that he knew that neither was an independent contractor while he paid each by check throughout their continued employment. Hanson further admitted that he did not pay the trust fund taxes to the IRS that were owed and did not pay over the employer’s share of employment taxes for the two employees each quarter during the duration of this arrangement.

One of the employees paid a portion of the taxes owed, resulting in the adjusted figure of restitution owed by Hanson.

Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Internal Revenue Service-Criminal Investigations (IRS-CI) and the Federal Bureau of Investigation (FBI).

Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Erik S. Goes prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-119.

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MIL Security OSI –

May 15, 2025
MIL-OSI Security: Port Arthur woman sentenced to federal prison for trafficking fentanyl

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

BEAUMONT, Texas – A Port Arthur woman has been sentenced to federal prison for possessing fentanyl for distribution in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Kailynn Ina Hardy, 25, pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl and was sentenced to 57 months in federal prison by U.S. District Judge Marcia A. Crone on May 13, 2025.

According to information presented in court, in August 2023, law enforcement began investigating Hardy for suspicion of drug trafficking in Jefferson County. During the investigation, officers were able to obtain fentanyl-laced pills which Hardy had distributed. Hardy admitted to being involved in a drug trafficking conspiracy involving at least 400 grams of fentanyl.

This case was investigated by the U.S. Drug Enforcement Administration; Beaumont Police Department; Jefferson County Sheriff’s Office; Port Neches Police Department; FBI; Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Port Arthur Police Department. This case was prosecuted by Assistant U.S. Attorneys Jonathan C. Lee and Matt Quinn.

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MIL Security OSI –

May 15, 2025

Category: Intelligence

Defendants for Case Number 25cr1505

Summary of Charges

Vásquez Destaca Cómo los Recortes a SNAP Devastarán a Nuevo México