NewzIntel.com

Category: Natural Disasters

  • MIL-OSI: Arq Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Delivered 10% YoY growth in FY 2024 revenue driven by PAC business turnaround and 7thstraight quarter of double-digit YoY ASP growth

    Grew FY 2024 gross margins by approximately 410 bps YoY to 36.2% and achieved 3rdconsecutive quarter of positive Adjusted EBITDA, highlighting sustained foundational PAC business improvement

    Exited 2024 with a stronger financial position, successfully completing a $30 million ABL facility which lowers financing costs, increases capacity, and enhances liquidity

    Development of transformational GAC facility continues; first production anticipated prior to quarter end in line with ramp up to 25 million pounds nameplate capacity in H2 2025

    GREENWOOD VILLAGE, Colo., March 05, 2025 (GLOBE NEWSWIRE) — Arq, Inc. (NASDAQ: ARQ) (the “Company” or “Arq”), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced its financial and operating results for the quarter and year ended December 31, 2024.

    Financial Highlights

    • Generated revenue of $109.0 million in FY 2024 ($27.0 million in Q4 2024), up 10% over the prior year, driven largely by higher Average Sales Price (“ASP”), and positive changes in product mix
    • Increased ASP in Q4 2024 by approximately 14% over the prior year period, reflecting the 7th consecutive quarter of double-digit YoY percentage growth in ASP
    • All powder activated carbon (“PAC”) contracts are now net cash producers following the successful resolution of all negative margin agreements as of December 31, 2024
    • Improved FY 2024 gross margin to 36.2% in FY 2024, up approximately 410 basis points vs. FY 2023, driven by higher revenue, continued focus on profitability over volume, and ongoing operational cost management
    • Gross margin in Q4 2024 of 36.3% vs. 49.8% in Q4 2023 – prior quarter included a $4.7 million take-or-pay benefit and other non-recurring items vs. $1.6 million in Q4 2024. Q4 2024 was otherwise largely in-line with last year’s performance despite two brief but unplanned outages at the Red River plant
    • Reported Net loss of ($5.1) million in FY 2024, reflecting a significant improvement over the prior year period Net loss of ($12.2) million; Q4 2024 Net loss of ($1.3) million vs. Net income of $3.3 million in Q4 2023
    • Adjusted EBITDA of $7.7 million in FY 2024 vs. Adjusted EBITDA loss of ($2.6) million in the prior year(1); Adjusted EBITDA of $3.3 million in Q4 2024 vs. $7.2 million in the prior year period(1)
    • Announced successful closing of a $30 million asset backed lending (“ABL”) facility, enhancing financial flexibility and reducing our cost of capital
    • Exited 2024 with cash and restricted cash of $22.2 million, including $8.7 million restricted cash
    • Capital expenditures for FY 2024 totaled $85.2 million, including $80.0 million growth capital expenditures associated with Red River Phase I development

    (1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the paragraph titled “Non-GAAP Measures” for the definitions of non-GAAP financial measures and reconciliations to GAAP measures included in this press release.

    Recent Business Highlights

    • Construction at Red River facility complete with commissioning ongoing and first production of granular activated carbon (“GAC”) at Red River expected by end of Q1 2025; on target to achieve first deliveries in Q1 2025
    • Ramp up of Red River GAC production anticipated to run into H2 2025; expect to achieve full run rate capacity of 25 million pounds in H2 2025
    • Approximately 16 million pounds of our 25 million pound per year nameplate capacity contracted
    • In negotiations to contract remaining capacity at Red River. Multiple in-situ pilot tests are underway with customers, a required step before finalizing contracts, and in-line with the expected ramp-up schedule
    • Potential to increase Red River’s 25 million pound per year nameplate capacity by 10-20% still targeted; timing of upside production run-rate expected to be defined once nameplate capacity is achieved

    Management Commentary

    “These results reinforce the durability of our transformation within the foundational PAC business,” said Bob Rasmus, CEO of Arq. “Our 2024 results show a business which has been successfully turned around into a cash flow contributor. The annualized performance of the business has materially improved and is more profitable. With our third consecutive quarter of positive Adjusted EBITDA, the direction of travel is extremely positive. I also believe this is a business which can still be enhanced further.”

    Mr. Rasmus continued, “The capex overrun we experienced in Q4 was extremely frustrating, and while we actively look for ways to mitigate this increase, we remain confident that its impact on our long-term profitability and returns profile should be negligible.”

    “The imminent start of GAC production is of course a major milestone for us and will represent a huge achievement for the whole team,” added Mr. Rasmus. “While we want to remain cautious on the duration of our ramp-up to nameplate capacity, there should be no doubt we will be trying to get there as quickly as possible. By H2 2025 we believe we will have a solid, sustainably profitable PAC business being complimented by a high growth GAC business, representing our springboard to future growth.”

    Full Year 2024 Results

    Revenues totaled $109.0 million for full year 2024, compared to $99.2 million in the prior year. The revenue increase was primarily driven by improved ASP and product diversification into higher value end-markets.

    Cost of revenues totaled $69.5 million for full year 2024, compared to $67.3 million in the prior year. While total costs increased year over year, costs as a percentage of total revenue were down. This decrease in costs as a percentage of revenue was related to a decrease in the cost to manufacture our products, which primarily resulted from decreased variable production costs on lower production volumes during 2024.

    Gross margin was 36.2% for full year 2024, compared to 32.1% in the prior year. The increase was driven by higher revenue as detailed above, as well as cost reductions.

    Other operating expenses were $41.4 million for full year 2024, compared to $45.2 million in the prior year. The reduction was mainly driven by expenses incurred during 2023 relating to the acquisition of Arq Limited (“Legacy Arq”) (the “Arq Acquisition”) that did not occur in 2024.

    Operating loss totaled ($2.0) million for full year 2024, compared to an operating loss of ($13.3) million in the prior year. The reduction in loss was mainly driven by the factors referenced above.

    Interest expense was $3.3 million for full year 2024, compared to $3.0 million in the prior year. The increase was primarily driven by interest expenses related to the $10 million term loan with CF Global (the “CFG Loan”) of $2.3 million and $2.0 million in 2024 and 2023, respectively. The CFG Loan had a higher principal balance from the accrual of interest payable (PIK) upon the termination date of the CFG Loan, which was paid in December 2024.

    Income tax benefit was $0.2 million for full year 2024, compared to an income tax expense of $0.2 million in the prior year.

    Net loss was ($5.1) million, or ($0.14) per diluted share for full year 2024, compared to Net loss of ($12.2) million, or ($0.42) per diluted share in the prior year. The reduction in net loss was driven by higher revenues and a reduction in costs.

    Adjusted EBITDA was $7.7 million for full year 2024, compared to an Adjusted EBITDA loss of ($2.6) million in the prior year. The increase was mainly driven by our continued focus on increasing revenues while driving costs down. Additionally, an addback of Adjusted EBITDA during 2024 related to Loss on extinguishment of debt of $1.4 million, related to our repayment of the CFG Loan in December 2024 led to the increase. See the note below regarding the use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

    Fourth Quarter 2024 Results

    Revenue totaled $27.0 million for Q4 2024, reflecting a decrease of 4% compared to $28.1 million in the prior year period. The reduction was driven predominantly by the one-off benefits delivered in Q4 2023 as a result of take-or-pay enforcement totaling $4.7 million vs. $1.6 million in the fourth quarter of 2024. Excluding these one-off items, revenue was up YoY. ASP for the fourth quarter of 2024 were up approximately 14% compared to prior year period, marking the 7th consecutive quarter of double-digit year-over-year percentage growth in ASP.

    Costs of revenue totaled $17.2 million for the fourth quarter of 2024, an increase of approximately 22% compared to $14.1 million in the prior year period.

    Gross margin reduced to 36.3% for the fourth quarter of 2024, compared to 49.8% in the prior year period. The reduction in gross margin was driven by higher non-recurring revenues in Q4 2023 driven primarily by $3.1 million of additional take or pay enforcement in Q4 2023. Excluding this, Q4 2024 was largely in-line despite two brief but unplanned outages at our Red River plant.

    Selling, general and administrative expenses totaled $6.0 million in Q4 2024, compared to $6.5 million in the prior year period. The reduction of approximately $0.5 million or 8% was primarily driven by a reduction in payroll and benefits as well as legal and consulting fees as the Company incurred incremental fees related to the Arq Acquisition in 2023.

    Research and development costs totaled $0.7 million in Q4 2024, compared to $1.2 million in the prior year period. This reduction was primarily due to the Company performing product qualification testing in the prior year period with potential lead-adopters as part of its ongoing GAC contracting process in 2023.

    Operating income was $0.4 million for the fourth quarter of 2024, compared to an operating income of $3.1 million in the prior year period. The reduction was mainly driven by the factors referenced above.

    Net loss was ($1.3) million in the fourth quarter of 2024, or ($0.03) per diluted share, compared to a net income of $3.3 million, or $0.10 per diluted share, in the prior year period.

    Adjusted EBITDA was $3.3 million for the fourth quarter of 2024, compared to Adjusted EBITDA of $7.2 million in the prior year period. The reduction was primarily driven by the significant one-off items discussed above. See note below regarding the use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

    Capex and Balance Sheet

    Capital expenditures totaled $85.2 million for full year 2024, compared to $27.5 million in the prior year. The increase vs. the prior year was driven by the ongoing expansion of our Red River and Corbin facilities. The increase in total 2024 capex from previous guidance of $60 – $70 million was primarily driven by several factors, including $4 – $5 million related to contractor errors associated with small-bore piping needs, roughly $3 – $4 million related to maintaining a timely completion, and approximately $2 million related to the need for additional external professional services.

    The Company raised approximately $26.7 million of net equity proceeds in its September 2024 underwritten public offering of common stock, which, combined with approximately $15 million raised in a private placement of common stock in May 2024, resulted in year-to-date net equity proceeds raised through Q4 2024 of approximately $41.6 million.

    In December 2024, the Company closed a $30 million ABL credit facility (the “ABL Facility”) with MidCap Financial, a leading commercial finance company focused on middle market transactions. Total available borrowing capacity for the ABL Facility is determined by a borrowing base calculation based on a certain percentage of eligible accounts receivable and inventory.

    Initial drawdown from the ABL Facility ($13.8 million as of December 31, 2024) was utilized to refinance Arq’s outstanding CFG Loan. Going forward, the Company expects that proceeds from the ABL Facility will be used to finance ongoing working capital requirements and potential capital expenditures related to the Company’s strategic growth investment at its Red River plant, as well as to support general corporate purposes.

    Cash as of December 31, 2024, including $8.7 million of restricted cash, totaled $22.2 million, compared to $54.2 million as of December 31, 2023. The reduction was largely driven by increased expenditures relating to the Red River GAC expansion.

    Total debt, inclusive of financing leases, as of December 31, 2024, totaled $24.8 million compared to $20.9 million as of December 31, 2023. The increase was driven by closing the ABL Facility.

    Conference Call and Webcast Information

    Arq will host its Q4 2024 earnings conference call on March 6, 2025, at 8:30 a.m. ET. The live webcast can be accessed through the Investor Resources section of Arq’s website at www.arq.com. Interested parties may participate in the conference call by registering at https://www.webcast-eqs.com/arq20250306. Alternatively, the live conference call may be accessed by dialing (877) 407-0890 or (201) 389-0918 and referencing Arq. An investor presentation will also be available in the Investor Resources section before the call begins.

    A replay of the event will be made available shortly after the event and accessible via the same webcast link referenced above. Alternatively, the replay may be accessed by dialing (877) 660-6853 or (201) 612-7415 and entering Access ID 13751420. The dial-in replay will expire after March 13, 2025.

    About Arq

    Arq (NASDAQ: ARQ) is a diversified, environmental technology company with products that enable a cleaner and safer planet while actively reducing our environmental impact. As the only vertically integrated producer of activated carbon products in North America, we deliver a reliable domestic supply of innovative, hard-to-source, high-demand products. We apply our extensive expertise to develop groundbreaking solutions to remove harmful chemicals and pollutants from water, land and air. Learn more at: www.arq.com.

    Caution on Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a “safe harbor” for such statements in certain circumstances. When used in this press release, the words “can,” “will,” “may,” “intends,” “expects,” “continuing,” “believes,” similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. All statements that address activities, events or developments that the Company intends, expects or believes may occur in the future are forward-looking statements. These forward-looking statements include, but are not limited to, statements or expectations regarding: the anticipating timing of the completion of commissioning of the GAC Facility, ramp-up to full nameplate capacity at our Red River facility, and commercial production of our GAC products; the anticipated effects from fluctuations in the pricing of our AC products; expected supply and demand for our AC products and services, including our GAC products; the seasonal impact on our customers and their demand for our products; the ability to continue to successfully integrate Legacy Arq’s business and recognize the benefits and synergies from the Arq Acquisition; the ability to continue to develop and utilize Legacy Arq’s products and technology and the anticipated timing for bringing such products to market; our ability to access new markets for our GAC and other products; any future plant capacity expansions or site development projects and our ability to finance any such projects; the effectiveness of our technologies and the benefits they provide; the timing of awards of, and work and related testing under, our contracts and agreements and their value; probability of any loss occurring with respect to certain guarantees made by Tinuum Group; the timing and amounts of or changes in future revenue, funding for our business and projects, margins, expenses, earnings, tax rates, cash flows, royalty payment obligations, working capital, liquidity and other financial and accounting measures; the performance of obligations secured by our surety bonds; the amount and timing of future capital expenditures needed to fund our business plan; the impact of capital expenditure overruns on our business; awards of patents designed to protect our proprietary technologies both in the U.S. and other countries; the adoption and scope of regulations to control certain chemicals in drinking water and other environmental concerns and the impact of such regulations on our customers’ and our businesses, including any increase or decrease in sales of our AC products resulting from such regulations; the impact of adverse global macroeconomic conditions, including rising interest rates, recession fears and inflationary pressures, and geopolitical events or conflicts; opportunities to effectively provide solutions to our current and future customers to comply with regulations, improve efficiency, lower costs and maintain reliability; and the impact of prices of competing power generation sources such as natural gas and renewable energy on demand for our products. These forward-looking statements included in this press release involve risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, the timing and scope of new and pending regulations and any legal challenges to or extensions of compliance dates of them; the U.S. government’s failure to promulgate new regulations or enforce existing regulations that benefit our business; changes in laws and regulations, accounting rules, prices, economic conditions and market demand; availability, cost of and demand for alternative energy sources and other technologies and their impact on coal-fired power generation in the U.S.; technical, start up and operational difficulties; competition within the industries in which the Company operates; risks associated with our debt financing; our inability to effectively and efficiently commercialize new products, including our GAC products; our inability to effectively manage commissioning and startup of the GAC facility at our Red River plant; disruptions at any of our facilities, including by natural disasters or extreme weather; risks related to our information technology systems, including the risk of cyberattacks on our networks; failure to protect our intellectual property from infringement or claims that we have infringed on the intellectual property of others; our inability to obtain future financing or financing on terms that are favorable to us; our inability to ramp up our operations to effectively address recent and expected growth in our business; loss of key personnel; ongoing effects of the inflation and macroeconomic uncertainty, including from the new U.S. presidential administration, increased domestic and international tariffs, lingering effects of the pandemic and armed conflicts around the world, and such uncertainty’s effect on market demand and input costs; availability of materials and equipment for our business; intellectual property infringement claims from third parties; pending litigation; factors relating to our business strategy, goals and expectations concerning the Arq Acquisition; our ability to maintain relationships with customers, suppliers and others with whom the Company does business and meet supply requirements; our results of operations and business generally; risks related to diverting management’s attention from our ongoing business operations; costs related to the ongoing manufacturing of our products, including our GAC products; opportunities for additional sales of our AC products and end-market diversification; the timing and scope of new and pending regulations, executive orders and any legal challenges to or extensions of compliance dates of them; the rate of coal-fired power generation in the U.S.; the timing and cost of any future capital expenditures and the resultant impact to our liquidity and cash flows; and the other risk factors described in our filings with the SEC, including our most recent Annual Report on Form 10-K. You are cautioned not to place undue reliance on the forward-looking statements and to consult filings we have made and will make with the SEC for additional discussion concerning risks and uncertainties that may apply to our business and the ownership of our securities. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth in this press release. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise. The forward-looking statements speak only as to the date of this press release, and we disclaim any duty to update such statements unless required by law.

    Source: Arq, Inc.

    Investor Contact:
    Anthony Nathan, Arq
    Marc Silverberg, ICR
    investors@arq.com

     
    Arq, Inc. and Subsidiaries
    Consolidated Balance Sheets
     
        As of December 31,
    (in thousands, except share data)     2024       2023  
    ASSETS        
    Current assets:        
    Cash   $ 13,516     $ 45,361  
    Receivables, net     14,876       16,192  
    Inventories, net     19,314       19,693  
    Prepaid expenses and other current assets     4,650       5,215  
    Total current assets     52,356       86,461  
    Restricted cash, long-term     8,719       8,792  
    Property, plant and equipment, net of accumulated depreciation of $26,619 and $19,293, respectively     178,564       94,649  
    Other long-term assets, net     44,729       45,600  
    Total Assets   $ 284,368     $ 235,502  
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current liabilities:        
    Accounts payable and accrued expenses   $ 21,017     $ 14,603  
    Revolving credit facility     13,828       —  
    Current portion of long-term debt obligations     1,624       2,653  
    Other current liabilities     8,184       5,792  
    Total current liabilities     44,653       23,048  
    Long-term debt obligations, net of current portion     9,370       18,274  
    Other long-term liabilities     13,069       15,780  
    Total Liabilities     67,092       57,102  
    Commitments and contingencies        
    Stockholders’ equity:        
    Preferred stock: par value of $0.001 per share, 50,000,000 shares authorized, none issued or outstanding     —       —  
    Common stock: par value of $0.001 per share, 100,000,000 shares authorized, 46,639,930 and 37,791,084 shares issued and 42,021,784 and 33,172,938 shares outstanding at December 31, 2024 and 2023, respectively     47       38  
    Treasury stock, at cost: 4,618,146 and 4,618,146 shares as of December 31, 2024 and 2023, respectively     (47,692 )     (47,692 )
    Additional paid-in capital     198,487       154,511  
    Retained earnings     66,434       71,543  
    Total Stockholders’ Equity     217,276       178,400  
    Total Liabilities and Stockholders’ Equity   $ 284,368     $ 235,502  
     
    Arq, Inc. and Subsidiaries
    Consolidated Statements of Operations
     
        Three Months Ended December 31,   Years Ended December 31,
    (in thousands, except per share data)     2024       2023       2024       2023  
        (unaudited)        
    Revenue   $ 27,040     $ 28,104     $ 108,959     $ 99,183  
                     
    Cost of revenue, exclusive of depreciation and amortization     17,236       14,105       69,515       67,323  
                     
    Operating expenses:                
    Selling, general and administrative     5,960       6,495       28,695       34,069  
    Research and development     709       1,169       4,050       3,314  
    Depreciation, amortization, depletion and accretion     2,504       3,267       8,594       10,543  
    Loss (gain) on sale of assets     218       (36 )     64       (2,731 )
    Total operating expenses     9,391       10,895       41,403       45,195  
    Operating income (loss)     413       3,104       (1,959 )     (13,335 )
    Other (expense) income:                
    Earnings from equity method investments     —       111       127       1,623  
    Interest expense     (831 )     (859 )     (3,257 )     (3,014 )
    Loss on extinguishment of debt     (1,422 )     —       (1,422 )     —  
    Other     307       1,120       1,238       2,630  
    Total other (expense) income     (1,946 )     372       (3,314 )     1,239  
    (Loss) income before income taxes     (1,533 )     3,476       (5,273 )     (12,096 )
    Income tax (benefit) expense     (194 )     186       (164 )     153  
    Net (loss) income   $ (1,339 )   $ 3,290     $ (5,109 )   $ (12,249 )
    (Loss) income per common share:                
    Basic   $ (0.03 )   $ 0.10     $ (0.14 )   $ (0.42 )
    Diluted   $ (0.03 )   $ 0.10     $ (0.14 )   $ (0.42 )
    Weighted-average number of common shares outstanding:                
    Basic     41,275       32,367       36,051       29,104  
    Diluted     41,275       32,952       36,051       29,104  
     
    Arq, Inc. and Subsidiaries
    Consolidated Statements of Cash Flows
     
        Years Ended December 31,
    (in thousands)     2024       2023  
    Cash flows from operating activities        
    Net loss   $ (5,109 )   $ (12,249 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
    Depreciation, amortization, depletion and accretion     8,594       10,543  
    Stock-based compensation expense     2,715       2,648  
    Operating lease expense     2,004       2,757  
    Loss from extinguishment of debt     1,422       —  
    Amortization of debt discount and debt issuance costs     601       546  
    Loss (gain) on sale of assets     64       (2,731 )
    Earnings from equity method investments     (127 )     (1,623 )
    Other non-cash items, net     37       (75 )
    Changes in operating assets and liabilities:        
    Receivables and related party receivables     1,316       (2,264 )
    Prepaid expenses and other assets     1,166       4,777  
    Inventories, net     1,636       (2,571 )
    Other long-term assets, net     (2,166 )     (4,762 )
    Accounts payable and accrued expenses     216       (12,061 )
    Other current liabilities     1,144       (184 )
    Operating lease liabilities     (1,272 )     (168 )
    Other long-term liabilities     (1,764 )     764  
    Net cash provided by (used in) operating activities     10,477       (16,653 )
    Cash flows from investing activities        
    Acquisition of property, plant, equipment and intangible assets, net     (85,170 )     (27,516 )
    Acquisition of mine development costs     (181 )     (2,690 )
    Proceeds from sale of property and equipment     150       —  
    Distributions from equity method investees in excess of cumulative earnings     127       1,623  
    Cash and restricted cash acquired in business acquisition     —       2,225  
    Payment for disposal of Marshall Mine, LLC     —       (2,177 )
    Net cash used in investing activities   $ (85,074 )   $ (28,535 )
    Cash flows from financing activities        
    Net proceeds from common stock issued in public offering   $ 26,654     $ —  
    Net proceeds from common stock issued in private placement transactions     14,951       15,220  
    Borrowings on revolving credit facility     13,828       —  
    Net proceeds from common stock issued to related party     800       1,000  
    Principal payments on notes payable     (10,544 )     (473 )
    Repurchase of common stock to satisfy tax withholdings     (1,135 )     (230 )
    Principal payments on finance lease obligations     (1,022 )     (1,130 )
    Payment of debt issuance costs     (633 )     —  
    Payment of debt extinguishment costs     (220 )     —  
    Net proceeds from CFG Loan, related party, net of discount and issuance costs     —       8,522  
    Net cash provided by financing activities     42,679       22,909  
    Decrease in Cash and Restricted Cash     (31,918 )     (22,279 )
    Cash and Restricted Cash, beginning of year     54,153       76,432  
    Cash and Restricted Cash, end of year   $ 22,235     $ 54,153  
             
    Supplemental disclosure of cash flow information:        
    Cash paid for interest   $ 2,017     $ 1,727  
    Cash received for income taxes   $ (452 )   $ (1,697 )
    Supplemental disclosure of non-cash investing and financing activities:        
    Change in accrued purchases for property and equipment   $ 6,198     $ 914  
    Purchase of property and equipment through note payable   $ 1,004     $ —  
    Equity issued as consideration for acquisition of business   $ —     $ 31,206  
    Paid-in-kind dividend on Series A Preferred Stock   $ —     $ 157  


    Note on Non-GAAP Financial Measures

    To supplement our financial information presented in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”), we provide certain supplemental financial measures, including EBITDA and Adjusted EBITDA, which are measurements that are not calculated in accordance with U.S. GAAP. EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA reduced by the non-cash impact of equity earnings from equity method investments and other non-cash gains, increased by cash distributions from equity method investments, other non-cash losses and non-recurring costs and fees. EBITDA and Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) in accordance with U.S. GAAP as a measure of performance. See below for a reconciliation from net income (loss), the nearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.

    We believe that the EBITDA and Adjusted EBITDA measures are less susceptible to variances that affect our operating performance. We include these non-GAAP measures because management uses them in the evaluation of our operating performance, and believe they help to facilitate comparison of operating results between periods. We believe the non-GAAP measures provide useful information to both management and users of the financial statements by excluding certain expenses, gains, and losses which can vary widely across different industries or among companies within the same industry and may not be indicative of core operating results and business outlook.

    EBITDA and Adjusted EBITDA:

    The following table reconciles net income (loss), our most directly comparable as-reported financial measure calculated in accordance with U.S. GAAP, to EBITDA and Adjusted EBITDA (Adjusted EBITDA loss).

     
    Arq, Inc. and Subsidiaries
    Reconciliation of Net income (loss) to EBITDA and Adjusted EBITDA (Adjusted EBITDA loss)
    (Unaudited)
     
        Three Months Ended   Years Ended
        September 30,   December 31,   December 31,
    (in thousands)     2024       2024       2023       2024       2023  
    Net income (loss)   $ 1,617     $ (1,339 )   $ 3,290     $ (5,109 )   $ (12,249 )
    Depreciation, amortization, depletion and accretion     2,716       2,504       3,267       8,594       10,543  
    Amortization of Upfront Customer Consideration     127       127       127       508       508  
    Interest expense, net     600       516       346       2,154       1,168  
    Income tax (benefit) expense     —       (194 )     186       (164 )     153  
    EBITDA     5,060       1,614       7,216       5,983       123  
    Cash distributions from equity method investees     127       —       111       127       1,623  
    Equity earnings     (127 )     —       (111 )     (127 )     (1,623 )
    Loss on extinguishment of debt     —       1,422       —       1,422       —  
    (Gain) loss on sale of assets     (154 )     218       —       64       (2,695 )
    Gain on change in estimate, asset retirement obligation     —       —       (37 )     —       (37 )
    Financing costs     228       47       —       275       —  
    Adjusted EBITDA (Adjusted EBITDA loss)   $ 5,134     $ 3,301     $ 7,179     $ 7,744     $ (2,609 )

    The MIL Network –

  • MIL-OSI Security: Stratford Man Sentenced to 7 Years in Federal Prison for Trafficking Firearms

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that STEFAN BAGLEY, JR., 23, of Stratford, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 84 months of imprisonment, followed by three years of supervised release, for trafficking firearms.

    According to court documents and statements made in court, on July 26, 2023, Bagley was shot and wounded while traveling in his vehicle in Bridgeport.  Later that day, Bagley’s vehicle was used in another shooting incident in Bridgeport.  An investigation revealed that, between October 2022 and October 2023, Bagley purchased more than 20 handguns from licensed firearm dealers and sold the guns to a network of customers, several of whom Bagley knew were prohibited by law from possessing firearms.  Bagley typically scratched the serial numbers off of the firearms before providing them to his customers, making the guns more difficult to trace.

    To date, law enforcement has recovered only five of the firearms that were purchased and trafficked by Bagley.  One of the recovered firearms was used in a shooting in Stamford.

    Bagley was arrested on December 18, 2023.  On August 19, 2024, he pleaded guilty to firearm trafficking conspiracy.

    Bagley, who is released on a $100,000 bond, is required to report to prison on May 5.

    This matter was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Bridgeport Police Department, and the Connecticut State Police.  The case was prosecuted by Assistant U.S. Attorney Kenneth L. Gresham.

    This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.  For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.

    MIL Security OSI –

  • MIL-OSI Security: Men Admit Role in Fatal St. Louis Drug Robbery

    Source: Office of United States Attorneys

    ST. LOUIS – Two men have pleaded guilty to charges connected to the fatal robbery of a drug dealer in St. Louis, Missouri in 2022.

    Ralph Ruffin, 21, pleaded guilty Wednesday in U.S. District Court in St. Louis to two felony counts: conspiracy to distribute and possess with the intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime, resulting in death. Jamie Gore, 37, pleaded guilty in January to one count of conspiracy to distribute and possess with the intent to distribute a controlled substance and one count of possessing and brandishing a firearm in furtherance of a drug trafficking crime.

    Both men admitted that on Dec. 10, 2022, Gore contacted the victim seeking drugs and asked him to come to Gore’s mother’s house in the 5900 block of Romaine Place. Gore had recently purchased drugs from the victim, and told the victim that he could obtain two guns in exchange for more drugs. Ruffin and an associate were waiting inside the home and began firing at the victim when Gore led him inside. The victim, who fired shots as well, was fatally shot in the throat. Ruffin and his associate then stole the victim’s gun, cash and fentanyl.

    Gore admitted aiding Ruffin and others in “numerous” prior drug robberies. Ruffin would give some of the drugs to Gore and sell the rest.

    Ruffin is scheduled to be sentenced on June 4. Both sides have agreed to recommend 20 years in prison. Gore is scheduled to be sentenced on April 23. He faces at least seven years in prison.

    The Saint Louis Metropolitan Police Department and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Geoff Ogden is prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Reno Man Sentenced To 10 Years In Prison For Assaulting Federal Officer During Arrest

    Source: Office of United States Attorneys

    RENO – A Reno resident was sentenced today by United States District Judge Miranda M. Du to 10 years in prison to be followed by three years of supervised release for assaulting a federal officer with a deadly or dangerous weapon during the execution of his arrest warrant.

    According to evidence presented at trial, on February 16, 2022, Matthew John Nason, 39, fired a handgun in the direction of a Deputy United States Marshal while the Deputy was attempting to serve a valid arrest warrant for Nason and his girlfriend at Nason’s residence. Nason had an outstanding arrest warrant for drug and firearms violations out of the District of North Dakota. The 10-year sentence is to run consecutive to the sentence Nason received in the District of North Dakota.

    In November 2024, following the three-day trial, a jury convicted Nason of assault of a federal officer with a dangerous weapon.

    Acting United States Attorney Sue Fahami for the District of Nevada, Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Division, and Marshal Gary Schofield for the United States Marshals Service made the announcement.

    This case was investigated by the FBI, United States Marshals Service, and the Reno Police Department. Assistant United States Attorneys Megan Rachow and Randy St. Clair prosecuted the case.

    ###

     

     

    MIL Security OSI –

  • MIL-OSI USA: Researchers Connect Satellite and Soil Data to Refine Salt Marsh Carbon Storage Estimates

    Source: US Geological Survey

    Researchers Connect Satellite and Soil Data to Refine Salt Marsh Carbon Storage Estimates

    Salt marshes store vast amounts of carbon, and new research supported by the Northeast CASC provides the most precise estimates yet – offering insights into their climate benefits and vulnerabilities. 

    A new study supported by the Northeast CASC provides the most precise estimate to date of carbon storage in salt marshes along the U.S. Northeast coastline. It also provides the first 10-meter resolution map of “blue carbon” (carbon stored in marine and coastal ecosystems) in the region.  

    Salt marshes act as long-term carbon sinks, continuously accumulating carbon as tides and storms deposit sediment into dense marsh grasses. Unlike forests, which have storage limits, salt marshes can expand vertically, increasing their ability to trap carbon over time. In other words, they have no upper storage limit. However, the natural spatial variability within marshes makes it difficult to estimate how much total carbon is actually stored or ongoing sequestration rates. Traditional soil sampling methods are highly accurate but costly and time-consuming, while satellite methods cover more ground but measure indicators, like water depth and vegetation density, rather than carbon directly. Adding to this complexity, within a marsh, vegetation density and water depth also vary seasonally and with tidal cycles. 

    The researchers tackled these challenges by combining both approaches. They used soil samples from 15 sites across five states, spanning Long Island Sound to the Gulf of Maine, and the “Normalized Difference Water Index” (NDWI) from satellite images taken across seasons and tidal levels. After comparing soil carbon measurements to satellite estimates, they found that satellite images most accurately reflect soil properties when taken at high tide. This insight allowed them to select the most reliable satellite images to refine carbon estimates across larger coastlines – an important advance when extensive soil sampling is not feasible. The study also provides insights for soil formation and carbon storage in different types of marshes. 

    This study offers a scalable method for estimating blue carbon worldwide but also warns that environmental degradation of salt marshes could release massive amounts of stored carbon back into the atmosphere.  

    This research was supported by the Northeast CASC Project “Effects of Urban Coastal Armoring on Salt Marsh Sediment Supplies and Resilience to Climate Change.” 

    MIL OSI USA News –

  • MIL-OSI New Zealand: Auckland’s flood resilience pilot a success

    Source: Auckland Council

    Aucklanders have come together to build flood resilience, with a successful pilot programme proving the power of community action. Their efforts have paved the way for region-wide expansion in 2025, helping more neighbourhoods prepare for future storms.

    As part of Council’s Making Space for Water programme – a response to the 2023 extreme weather events – the pilot focused on promoting partnership, inclusivity, and local leadership to enhance Auckland’s flood resilience.

    Running from September 2023 to December 2024, the pilot:

    • engaged 1,424 volunteers in resilience-building activities, including clearing critical stream blockages

    • partnered with 11 organisations to amplify community leadership

    • delivered 72 community events to improve flood awareness and stormwater management

    • planted 2,512 native plants in the right places to absorb water and reduce erosion.

    Building on this success, 12 community environmental organisations have now been contracted to expand the programme regionwide in 2025 strengthening flood preparedness in at-risk communities by:

    • increasing public workshops to improve flood literacy and understanding of healthy catchments.

    • expanding stream restoration efforts to support stormwater management.

    • strengthening partnerships with mana whenua and local organisations to enhance resilience.

    “The 2023 storms showed that we needed to strengthen community connections and invest in community engagement to foster resilience,” says Tom Mansell, Auckland Council’s Head of Sustainable Partnerships.

    “This initiative ensures communities aren’t just preparing for floods—they’re actively reducing risk through education and local initiatives.”

    Alanah Mullin from EcoMatters is involved in the initiative and highlights the importance of collective action. 

    “Flooding is a growing challenge, but we can all be part of the solution. Restoring waterways and planting the right native plants in the right places can help absorb stormwater and reduce the impact of heavy rain on our communities,” she says.

    “When the city’s drainage system is overwhelmed, healthy streams can play a crucial role in moving excess water to the sea. By working together, we’re making Auckland more resilient—one neighbourhood at a time.”

    Tom Mansell agrees.

    “This initiative shows the power of community-led action. We’re not just responding to past events—we’re building a more resilient Auckland for the future.”

    For more information or to get involved, visit the Auckland Council website. 

    MIL OSI New Zealand News –

  • MIL-OSI Security: Update 279 – IAEA Director General Statement on Situation in Ukraine

    Source: International Atomic Energy Agency – IAEA

    The presence of the International Atomic Energy Agency (IAEA) at Ukraine’s nuclear power plants (NPPs) remains an “invaluable asset” for the international community and must be preserved, Director General Rafael Mariano Grossi told Member States after the completion of a delayed team rotation at the Zaporizhzhya Nuclear Power Plant (ZNPP).

    “Difficult conditions have in the past month complicated and delayed the latest rotation of experts, which was safely completed in recent days,” Director General Grossi said in his written introductory statement to the IAEA Board of Governors, which is holding its regular March meeting this week.

    In December, a drone attack severely damaged an official IAEA vehicle during a rotation, and in February intense military activity forced the cancellation of the most recent planned rotation, which was finally concluded earlier this month. The current team at the ZNPP is the 27th since Director General Grossi established a continued IAEA presence at the site, where nuclear safety and security remains precarious.

    Director General Grossi emphasized that “all the IAEA’s activities in Ukraine are being conducted in line with relevant resolutions of the UN General Assembly and of the IAEA policy-making organs”.

    At the ZNPP, the IAEA team has continued to hear explosions on most days over the past week, at varying distances.

    The IAEA team at the ZNPP was informed that scheduled maintenance of part of the safety system of reactor unit 1 had been completed and returned to service. At the same time, maintenance began at another part of the same reactor’s safety system.

    At the Chornobyl site, firefighters have made progress in extinguishing the fire on the roof of the New Safe Confinement (NSC) caused by a drone strike on 14 February. The IAEA team at the site was informed that no smouldering fires had been detected over the past two days. The site continues to use thermal imaging and surveillance drones to monitor the structure.

    The Chornobyl site has continued to perform frequent radiation monitoring and report the results to the IAEA team. The IAEA team has also undertaken its own independent monitoring. To date, all monitoring results have shown that there has not been any increase in the normal range of radiation levels measured at the site nor any abnormal readings detected.

    The IAEA team at the Chornobyl site also reported multiple air raid alarms during the past week. In addition, the IAEA was informed by the Ukrainian regulator that the site recorded drone flights in the area early on 1 March.

    Last week, a team of IAEA experts conducted another round of visits to seven electrical substations identified as critical for nuclear safety and security in Ukraine.

    As during the previous visits last year, the team observed the current status of the substations and collected relevant information to assess any potential impacts of attacks in recent months to the safe operation of Ukraine’s nuclear facilities and to identify any further technical assistance that could be provided by the IAEA.

    The IAEA teams at Ukraine’s operating NPPs – Khmelnytskyy, Rivne and South Ukraine – have continued to monitor the nuclear safety and security situation at these sites. The teams report hearing air raid alarms on most days, with the team at the Khmelnytskyy NPP having to shelter at the site on Monday. One reactor unit at the same plant last weekend began a planned outage for refuelling and maintenance.

    Separately, the IAEA has continued with its comprehensive programme of nuclear safety and security assistance to Ukraine, with three new deliveries of equipment bringing the total number since the start of the armed conflict to 111.

    The Hydrometeorological Centre and Hydrometeorological Organizations of the State Emergency Services of Ukraine received survey meters, the Centralised Spent Fuel Storage Facility of Energoatom received thermal imaging cameras and the medical unit of the Khmelnytskyy NPP received medical equipment and supplies. The deliveries were supported with funds provided by the European Union, Norway and the United States.

    “We are grateful to all 30 donor states and the European Union for their extrabudgetary contributions, and I encourage those who can, to support the delivery of the comprehensive assistance programme, for which EUR 22 million are still necessary,” Director General Grossi told the Board.

    MIL Security OSI –

  • MIL-OSI Security: Gang Member Sentenced to 12 Years in Prison for Kidnapping and Drug Conspiracy

    Source: Office of United States Attorneys

    BOSTON – A Lawrence, Mass. man was sentenced yesterday in federal court in Boston for conspiring to commit kidnapping, smuggling drugs into the Essex County Jail, distributing fentanyl and cocaine and unlawful possession of a firearm.

    Justin Suriel, 28, was sentenced by U.S. District Court Judge Indira Talwani to 12 years in prison, to be followed by five years of supervised release. In August 2024, Suriel pleaded guilty to being a felon in possession of a firearm and ammunition; conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and 500 grams or more of cocaine and Suboxone;, possession with intent to distribute 40 grams or more of fentanyl; distribution and possession with intent to distribute cocaine; and conspiracy to commit kidnapping.

    Suriel was charged in November 2021 along with 12 others in connection with a large drug conspiracy centering around the Gangster Disciples in Lawrence, Haverhill and Methuen, Mass. The investigation, which began in August 2020, intercepted communications between Gangster Disciples’ leaders, members and drug suppliers pertaining to their alleged distribution of fentanyl, cocaine, methamphetamine and Suboxone in Massachusetts, Maine and southern New Hampshire as well as into the Essex County Jail.

    Calls were intercepted between Suriel and other gang members, who conspired to kidnap and assault a marijuana supplier from Maine. Intercepted phone calls also uncovered Suriel’s cocaine and fentanyl distribution operation, wherein he used gang members to sell drugs throughout the Merrimack Valley area of Massachusetts. The calls also revealed that Suriel offered protection to his cocaine supplier, remarking that he would “shoot bullets” for anyone bothering his drug supplier. During a search of Suriel’s residence a loaded firearm was recovered.

    United States Attorney Leah B. Foley; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Colonel Geoffrey Noble made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration, New England Field Division; Homeland Security Investigations in Boston; Maine Drug Enforcement Agency; and the Andover, Haverhill, Lawrence, Chelmsford and Brockton Police Departments. Assistant U.S. Attorney Philip C. Cheng of the Organized Crime and Gang Unit is prosecuting the case.  

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

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

    MIL Security OSI –

  • MIL-OSI Security: Bristol Man Sentenced to More Than 15 Years in Federal Prison for Violent Robbery Spree in 2022

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that LONNY CROSS, 46, of Bristol, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 188 months of imprisonment, followed by three years of supervised released, for committing numerous violent robberies across Connecticut in September and October 2022.

    According to court documents and statements made in court, between September 5 and October 13, 2022, Cross committed 37 robberies and attempted robberies of gas station convenience stores, mini-markets, and liquor stores in North Branford, Waterbury, Wolcott, Plymouth, New Haven, North Haven, Orange, West Haven, Wethersfield, Bristol, Southington, Naugatuck, Watertown, Franklin, Norwich, Waterford, Groton City, Stonington, Ledyard, Darien, Norwalk, Stratford, and Seymour, Connecticut, and Port Chester, New York.  In total, Cross stole more than $58,000 in cash.  Several of the robberies occurred on the same day, only minutes apart.

    For many of the robberies, Cross traveled to the store with Rebecca Barbera, who would sometimes enter the store to determine the number of employees and customers in the store, exit the store, and then report that information to Cross.  Cross then entered the store, displayed a knife or facsimile firearm while threatening employees with statements including “I know where you work” and “if you call the police I’ll come back and blow your head off,” and stole cash and other items.

    Cross grabbed some victims and held a knife to them.  During a robbery in Wethersfield on September 24, 2022, Cross threatened the 12-year-old son of the store owner with a knife and robbed the register.  The boy was alone behind the counter while his father was in a back office when Cross entered the store.

    On October 14, 2022, investigators conducted court-authorized searches of Cross’s residence and a black 2014 Chevrolet Impala that Cross was known to drive.  The search of the residence revealed clothing consistent with clothing worn by Cross in several of the robberies, as well as quantities of heroin, crack cocaine, and narcotics paraphernalia.  A search of the car revealed 120 bags heroin, approximately 14 grams of crack, and a knit hat matching the description of one worn by Cross during a robbery the day before.  Cross, who was on state parole for prior robbery convictions, was arrested on state charges on that date.  The morning after his arrest, from jail, Cross directed Barbera and others to go to a storage unit and dispose of a weapon he had used in the robberies.

    Cross’s criminal history includes 18 convictions for robbery and other offenses.  He engaged in two previous robbery sprees and received state sentences of 10 years of incarceration and 15 years of incarceration, respectively.

    Cross has been detained since his arrest.  On May 21, 2024, he pleaded guilty to one count of conspiracy to commit Hobbs Act Robbery, and one count of Hobbs Act Robbery.

    Barbera pleaded guilty to a related charge and awaits sentencing.

    This investigation was conducted by the Federal Bureau of Investigation, Connecticut State Police, Orange Police Department, Port Chester (N.Y.) Police Department, and numerous other police departments from the municipalities where the robberies occurred, with the assistance of Connecticut State Parole.  The case was prosecuted by Assistant U.S. Attorney Robert S. Ruff.

    MIL Security OSI –

  • MIL-OSI Security: Clairton Resident Sentenced for Escape from Residential Reentry Center

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A former resident of Clairton, Pennsylvania, has been sentenced in federal court to time served of approximately seven months on his conviction of escape, Acting United States Attorney Troy Rivetti announced today.

    United States District Judge Cathy Bissoon imposed the sentence on Jamiel Green, 28.

    According to information presented to the Court, while serving the last portion of a 37-month term of imprisonment for his conviction for possessing a firearm as a convicted felon, Green was housed at a residential reentry center designed to assist defendants in their transitions back into society. In early November 2023, the center provided Green with a work release pass, but Green failed to return to the center when required, remaining a fugitive for several months until he was arrested by the U.S. Marshals Service.

    Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.

    Acting United States Attorney Rivetti commended the U.S. Marshals Service for the investigation leading to the successful prosecution of Green.

    MIL Security OSI –

  • MIL-OSI Security: St. Louis County Felon Who Triggered Standoff Sentenced to 40 Months in Prison

    Source: Office of United States Attorneys

    ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a convicted felon who triggered a law enforcement standoff in St. Louis County to 40 months in prison.

    Randy Wilkes, 43, pleaded guilty in November to one count of being a felon in possession of a firearm. He admitted being caught with a .45-caliber semiautomatic pistol on Oct. 5, 2022, by the U.S. Marshals Service and St. Louis County police.

    Deputy U.S. Marshals and police were at Wilkes’ home in the 10400 block of Gardo Court in Bellefontaine Neighbors to arrest him for outstanding felony warrants stemming from two violent domestic assaults, according to a sentencing memo filed by Assistant U.S. Attorney Matthew Martin. Wilkes refused officers’ commands to come to the door and instead hid in the basement, triggering a standoff that lasted more than two hours, the memo says. After escorting multiple children out of the house, law enforcement officers tried to safely locate Wilkes, using a K-9, a robot equipped with a camera and multiple nonlethal pepper balls and gas canisters to avoid approaching Wilkes in a way that would risk their safety, the memo says. Wilkes was arrested after officers forced entry into an exterior basement door.

    After his release from prison, Wilkes will be on supervised release for three years.

    The U.S. Marshals Service and St. Louis County Police Department investigated the case. Assistant U.S. Attorney Matthew Martin prosecuted the case.

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

    MIL Security OSI –

  • MIL-OSI USA: Kaine Statement on President Trump’s 2025 Address to Congress

    US Senate News:

    Source: United States Senator for Virginia Tim Kaine

    WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) released the following statement after President Trump’s joint address to Congress:

    “President Trump’s address showed that he and his Administration have no problem turning their backs on middle-class Americans. In his first few weeks in office, President Trump has imposed steep tariffs that will raise costs and hurt businesses, fired thousands of federal workers who provide critical services to millions of Americans, illegally stopped the flow of federal funds that support programs Americans rely on, and cozied up to dictators like Vladimir Putin while abandoning Ukraine and our democratic allies. If the President, his Administration, and Republicans in Congress continue to go down the current path they are on, they should expect that they will be met with fierce opposition as more and more Americans will feel the impacts of Trump’s terrible policies. I know many Virginians are worried about the state of our country, and they have my commitment that I’ll continue to stand up against any efforts that will harm Virginians, hurt our economy, or make Virginians less safe.”

    Kaine brought Fairfax resident and veteran Jason King as his guest. Jason was fired from his position in the Federal Aviation Administration’s safety division as a result of the Trump Administration’s mass firing of federal employees.

    MIL OSI USA News –

  • MIL-OSI USA: NEWS: Sanders, Scott, Schumer, Jeffries, Murray, Bipartisan Colleagues Introduce Legislation to Protect the Rights of American Workers

    US Senate News:

    Source: United States Senator for Vermont – Bernie Sanders

    WASHINGTON, March 5 – Sen. Bernie Sanders (I-Vt.), Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), and Rep. Bobby Scott (D-Va.), Ranking Member of the House Committee on Education and Workforce, alongside Senate Minority Leader Chuck Schumer (D-N.Y.), House Minority Leader Hakeem Jeffries (D-N.Y.), House Democratic Whip Katherine Clark (D-Mass.), Sen. Patty Murray (D-Wash.) and Congressional and labor leaders, today reintroduced the Richard L. Trumka Protecting the Right to Organize Act (PRO Act), comprehensive labor legislation to protect the rights of workers to stand together and bargain for fairer wages, better benefits and safer workplaces. The legislation was renamed in honor of former AFL-CIO President Richard L. Trumka.

    Joining Sanders, Scott, Schumer, Jeffries and Murray on the PRO Act are Sens. Angela Alsobrooks (D-Md.), Tammy Baldwin (D-Wis.), Michael Bennet (D-Colo.), Richard Blumenthal (D-Conn.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Maria Cantwell (D-Wash.), Chris Coons (D-Del.), Catherine Cortez Masto (D-Nev.), Tammy Duckworth (D-Ill.), Richard Durbin (D-Ill.), John Fetterman (D-Pa.), Ruben Gallego (D-Ariz.), Kirsten Gillibrand (D-N.Y.), Maggie Hassan (D-N.H.), Martin Heinrich (D-N.M.), John Hickenlooper (D-Colo.), Mazie Hirono (D-Hawaii), Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Andy Kim (D-N.J.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), Ben Ray Luján (D-N.M.), Ed Markey (D-Mass.), Jeff Merkley (D-Ore.), Chris Murphy (D-Conn.), Jon Ossoff (D-Ga.), Alex Padilla (D-Calif.), Gary Peters (D-Mich.), Jack Reed (D-R.I.), Jacky Rosen (D-Nev.), Brian Schatz (D-Hawaii), Adam Schiff (D-Calif.), Jeanne Shaheen (D-N.H.), Elissa Slotkin (D-Mich.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Raphael Warnock (D-Ga.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.) and Ron Wyden (D-Ore.), as well as 210 cosponsors in the House.

    “Never before in the history of our nation have income and wealth inequality been greater than today. Workers are falling further and further behind. In response, millions of Americans have expressed their desire to join a union,” said Sanders. “However, the billionaire class is fighting with all its might to put down attempts by workers to exercise their constitutional right to unionize. That includes the decision by President Trump to illegally fire National Labor Relations Board Member Gwynne Wilcox and effectively shut down the NLRB. Without a functioning NLRB, corporate bosses can illegally fire unionizing workers, flagrantly violate labor laws and render free and fair union elections near impossible. Supporting the immediate reinstatement of Member Wilcox and the swift passage of the PRO Act would be major steps toward building real worker power. The PRO Act is long overdue and I am proud to be introducing this bill in the Senate.”

    “Unions are essential for building a strong middle class and improving the lives of workers and families. Regrettably, for too long, workers have suffered from anti-union attacks and toothless labor laws that undermined their right to form a union,” said Scott. “As union approval remains at record highs, Congress has an urgent responsibility to ensure that workers can join a union and negotiate for higher pay, better benefits, and safer workplaces. The PRO Act is the most critical step Congress can take to uplift American workers. I urge my House and Senate colleagues on both sides of the aisle to join me in advancing the most significant update for workers’ labor organizing rights in over eighty years.”

    “As we speak Donald Trump and his billionaire buddies are stealing the American dream away from working families, rigging every lever of society in favor of the billionaire class,” said Schumer. “That’s why we need the PRO Act, to empower hardworking Americans to bargain for better wages, benefits, and safer working conditions. I’ve been involved in this fight for a very, very long time, and I will stay in this fight for as long as it takes – until every worker gets the wage they deserve, until the right to organize is protected and encouraged and secure, and until we finally make the PRO Act the law of the land.”

    “Right now, Donald Trump and Elon Musk are attacking workers, including mass firing people by the tens of thousands, left and right, regardless of how important that work is,” said Murray. “Reintroducing the PRO Act is more important now than ever. This is about making sure we are not just pushing back—but also pushing forward: charting a positive vision for workers and daring Republicans to make their actions match their words. Who do you stand with—the billionaires like Elon Musk and Donald Trump—whose favorite two words are ‘you’re fired?’ Or do you stand with hard working American women and men. People who just want fair pay, decent treatment, and a government that works to make their lives better, not worse? That should not be too much to ask! I’m going to keep fighting, come hell or high water, to make it easier for workers to join together and fight for the better pay and working conditions they deserve.”

    “When our unions are strong, the United States of America is strong,” said Jeffries. “While Republicans are focused on giving handouts to their billionaire donors, Democrats will continue to fight to make sure that every American worker can organize and thrive and fight for better wages, better pay, better safety conditions and better benefits. Thanks to the leadership of Ranking Member Bobby Scott, that is exactly what the PRO Act does and we will not rest until we get this legislation across the finish line.”

    “Billionaires know there’s no greater threat to their power than a union card,” said Clark. “That’s why they’re using miles of red tape to deny the American people their basic, constitutional right to organize. We can cut that red tape for good. The PRO Act is yet another chance for Republicans to show where they stand: with working people or their billionaire donors.”

    “The PRO Act will safeguard the fundamental right of American workers to collectively bargain and organize and will ensure workers receive fair treatment while holding their employers to just standards,” said Rep. Brian Fitzpatrick (R-Pa.). “I am proud to lead this bipartisan effort to strengthen the right of our nation’s hardest-working men and women to organize and negotiate for better wages, benefits, and conditions. A strong workforce is the foundation of a strong nation, and I look forward to working with my colleagues on both sides of the aisle to see this vital legislation through.”

    “Americans believe in the power of unions and tens of millions of working people would become union members tomorrow if they could. But American labor law is broken, weighted on the side of the bosses and against the workers. In too many workplaces, in too many industries across the country, big corporations and billionaire CEOs still retaliate against us for organizing. They refuse to negotiate our contracts, force us to sit through hours of anti-union propaganda, and engage in illegal union-busting every day. Now they have an unelected, unaccountable, union-buster trying to illegally fire tens of thousands of our fellow workers in federal jobs and an administration rolling back the workplace protections. The PRO Act is long overdue, and the American people agree. We urge elected leaders of both parties to move this critical legislation forward so that all workers have the chance to stand together and build better lives for themselves and their families,” said AFL-CIO President Liz Shuler.

    Large corporations and the wealthy continue to capture the rewards of a growing economy while working families and middle-class Americans are left behind. From 1979 to 2023, annual wages for the bottom 90% of households increased just 44 percent, while average incomes for the wealthiest 1% increased more than 180 percent.

    Unions are critical to increasing wages and creating a strong economy that rewards hardworking people. Through the power of collective bargaining, the typical union worker earns 16 percent more than the typical non-union worker.

    The American people’s support for unions is surging. According to a 2024 Gallup poll, 70 percent of Americans approve of labor unions — remaining at near record highs. Despite growing support for unions, billionaire- and special interest-funded attacks on the rights of workers, unions and labor laws have eroded union density and made it harder for workers to organize. The share of American workers who are union members has fallen from roughly one in three workers in 1956 to a new low of 9.9 percent in 2024. The PRO Act restores fairness to the economy by strengthening the federal law that protects the right of workers to join a union and bargain for higher pay, better benefits and safer workplaces.

    The PRO Act would protect the right to organize and collectively bargain by:

    • Bolstering remedies and punishing violations of the rights of workers through authorizing meaningful penalties for employers that violate their rights, strengthening support for workers who suffer retaliation for exercising their rights and authorizing a private right of action for violation of the rights of workers.
    • Strengthening the rights of workers to join together and negotiate for better working conditions by enhancing their right to support secondary boycotts, ensuring unions can collect “fair share” fees, modernizing the union election process and facilitating initial collective bargaining agreements.
    • Restoring fairness to an economy rigged against workers by closing loopholes that allow employers to misclassify their employees as supervisors and independent contractors and increasing transparency in labor-management relations.

    More than 18 organizations endorsed the PRO Act, including the AFL-CIO, Service Employees International Union (SEIU), United Autoworkers (UAW), United Steelworkers (USW), Communications Workers of America (CWA), National Nurses United (NNU), International Alliance of Theatrical Stage Employees (IATSE), Department for Professional Employees, AFL-CIO (DPE), National Postal Mail Handlers Union (NPMHU), American Federation of Teachers (AFT), International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART), the American Federation of Musicians, International Association of Machinists and Aerospace Workers (IAM), International Union of Bricklayers and Allied Craftworkers, Laborers’ International Union of North America (LiUNA), Transport Workers Union (TWU), International Brotherhood of Electrical Workers (IBEW) and the International Union of Painters and Allied Trades (IUPAT).

    Read the bill text here.

    Read a fact sheet here.

    Read a section-by-section summary here.

    MIL OSI USA News –

  • MIL-OSI USA: Kennedy explains how new natural disaster tax law could save Louisianians money this tax season

    US Senate News:

    Source: United States Senator John Kennedy (Louisiana)

    Watch Kennedy’s comments here.
    WASHINGTON – Sen. John Kennedy (R-La.) explained how changes to the tax code could affect how some Louisianians claim deductions related to damage from Hurricanes Laura, Delta, Ida and Francine in a speech on the Senate floor.
    Key excerpts of the speech are below:
    “I realize, Mr. President of the Senate, that you would probably prefer to be condemned to hearing O.J. jokes for the rest of eternity than to hear me talk about federal income tax filing, but it is important for Americans and my people back in Louisiana because we have a new deduction for people who have uninsured losses from natural disasters. It’s really important in my state because many of my people have suffered damages, for which they did not receive insurance payments, from Hurricanes Laura, Delta, Ida and Francine.
    “It is called the Federal Disaster Tax Relief Act. What it does is the following: It changes the law. It now says that if you are a victim of a natural disaster like a hurricane and you have a loss that is not paid for by your insurance, you can now deduct off your income tax—dollar for dollar—any uninsured property damage in excess of $500.”
    . . . 
    “I know folks are thinking, well, I already filed my income taxes for 2021 and 2022 and 2023. You can file an amended return. It is very simple to do. You just file an amended return that says: There has been a change in the law, and I am entitled to have this higher deduction, and therefore the federal government owes me money, and therefore please send me my check. So, I wanted to make sure that Americans knew about this new tax provision we passed.”
    Background: 
    In Dec. 2024, Congress passed the Federal Disaster Tax Relief Act, which allows Americans who suffered damage as a result of a federally declared disaster—including some hurricanes, tornados, and wildfires—to deduct from their taxes certain uninsured property damage in excess of $500.
    Louisianians who suffered uninsured property damage during Hurricanes Laura, Delta, Ida and Francine may be eligible for the new deduction. Those who already claimed losses from those storms between 2021 and 2023 may be able to amend their previously filed taxes to claim the new deduction.
    Individuals and couples that receive the standard tax deduction—which is 90% of Americans—will still receive the full standard deduction in addition to any deduction they may claim related to storm damage under this new law.
    Watch Kennedy’s full speech here.

    MIL OSI USA News –

  • MIL-OSI Canada: More tax relief on the way for Jasper

    Source: Government of Canada regional news (2)

    MIL OSI Canada News –

  • MIL-OSI Security: New Orleans Man Sentenced for Federal Gun Control Act Violaton

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA – Acting U.S. Attorney Michael M. Simpson announced today that CHRISTOPHER PERTUIT (“PERTUIT”), age 50, of New Orleans, was sentenced after previously pleading guilty to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).

    The Honorable Carl J. Barbier, U.S. District Court Judge, sentenced PERTUIT to 63 months imprisonment, three years supervised release and a $100.00 mandatory special assessment fee.

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

    Acting U.S. Attorney Simpson praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant U.S. Attorney M. Irene González of the General Crimes Unit is in charge of the prosecution. 

    MIL Security OSI –

  • MIL-OSI: Zscaler Reports Second Quarter Fiscal 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Second Quarter Highlights

    • Revenue grows 23% year-over-year to $647.9 million
    • Calculated billings grows 18% year-over-year to $742.7 million
    • Deferred revenue grows 25% year-over-year to $1,878.5 million
    • GAAP net loss of $7.7 million compared to GAAP net loss of $28.5 million on a year-over-year basis
    • Non-GAAP net income of $127.1 million compared to non-GAAP net income of $99.4 million on a year-over-year basis

    SAN JOSE, Calif., March 05, 2025 (GLOBE NEWSWIRE) — Zscaler, Inc. (Nasdaq: ZS), the leader in cloud security, today announced financial results for its second quarter of fiscal year 2025, ended January 31, 2025.

    “Growing adoption of Zero Trust and AI is driving strong demand for our platform, resulting in yet another strong quarter that exceeded our guidance on both top and bottom line. We are leading the industry towards Zero Trust Everywhere by transforming security from legacy appliance-based to a Zero Trust architecture,” said Jay Chaudhry, Chairman and CEO of Zscaler. “By combining AI with Zero Trust, we are delivering several key innovations to secure our customers’ use of AI applications, creating new avenues of growth.”

    Second Quarter Fiscal 2025 Financial Highlights

    • Revenue: $647.9 million, an increase of 23% year-over-year.
    • Income (loss) from operations: GAAP loss from operations was $40.1 million, or 6% of revenue, compared to $45.5 million, or 9% of revenue, in the second quarter of fiscal 2024. Non-GAAP income from operations was $140.5 million, or 22% of revenue, compared to $103.2 million, or 20% of revenue, in the second quarter of fiscal 2024.
    • Net income (loss): GAAP net loss was $7.7 million, compared to $28.5 million in the second quarter of fiscal 2024. Non-GAAP net income was $127.1 million, compared to $99.4 million in the second quarter of fiscal 2024.
    • Net income (loss) per share, diluted: GAAP net loss per share was $0.05, compared to $0.19 in the second quarter of fiscal 2024. Non-GAAP net income per share was $0.78, compared to $0.63 in the second quarter of fiscal 2024.
    • Cash flows: Cash provided by operations was $179.4 million, or 27% of revenue, compared to $142.1 million, or 27% of revenue, in the second quarter of fiscal 2024. Free cash flow was $143.4 million, or 22% of revenue, compared to $100.8 million, or 19% of revenue, in the second quarter of fiscal 2024.
    • Deferred revenue: $1,878.5 million as of January 31, 2025, an increase of 25% year-over-year.
    • Cash, cash equivalents and short-term investments: $2,880.2 million as of January 31, 2025, an increase of $470.6 million from July 31, 2024.

    Recent Business Highlights

    • Introduced the industry’s first Zero Trust Segmentation solution for branches and cloud environments. The new solution improves customers’ security posture by preventing lateral movement from ransomware attacks, while cutting firewall and infrastructure spend in half.
    • Started offering the Zero Trust Network Access (ZTNA) service natively integrated within RISE with SAP. Zscaler Private Access™ (ZPA™) for SAP helps enable SAP customers with on-premises ERP workloads to simplify and de-risk their cloud migration, without the complexity and risk associated with traditional VPNs.
    • Appointed Phil Tee as EVP of AI Innovations. Tee previously co-founded an enterprise AI-driven provider of intelligent monitoring solutions for DevOps and ITOps.
    • Achieved FedRAMP authorization for Zscaler Zero Trust Browser. The authorization assures agencies of compliance with rigorous security standards, facilitating cloud adoption and streamlining the procurement process.
    • Announced that Nokia, a multinational technology leader, is migrating from its traditional firewall-based security model to the Zscaler Zero Trust Exchange to enhance its security, improve operational efficiency, and strengthen cloud capabilities.

    Change in Non-GAAP Measures Presentation

    Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods in fiscal 2025 and beyond. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    Financial Outlook

    For the third quarter of fiscal 2025, we expect:

    • Revenue of $665 million to $667 million
    • Non-GAAP income from operations of $140 million to $142 million
    • Non-GAAP net income per share of approximately $0.75 to $0.76, assuming approximately 163 million fully diluted shares outstanding and a non-GAAP tax rate of 23%

    For the full year of fiscal 2025, we expect:

    • Revenue of approximately $2.640 billion to $2.654 billion
    • Calculated billings of $3.153 billion to $3.168 billion
    • Non-GAAP income from operations of $562 million to $572 million
    • Non-GAAP net income per share of $3.04 to $3.09, assuming approximately 163.5 million fully diluted shares outstanding and a non-GAAP tax rate of 23%

    These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

    Guidance for non-GAAP income from operations excludes stock-based compensation expense and related employer payroll taxes, amortization of debt issuance costs, and amortization expense of acquired intangible assets. We have not reconciled our expectations of non-GAAP income from operations and non-GAAP net income per share to their most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. For those reasons, we are also unable to address the probable significance of the unavailable information, the variability of which may have a significant impact on future results. Accordingly, a reconciliation for the guidance for non-GAAP income from operations and non-GAAP net income per share is not available without unreasonable effort.

    For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

    Conference Call and Webcast Information

    Zscaler will host a conference call for analysts and investors to discuss its second quarter of fiscal 2025 and outlook for its third quarter of fiscal 2025 and full year fiscal 2025 today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time).

    Date: Wednesday, March 5, 2025
    Time: 1:30 p.m. PT
    Webcast: https://ir.zscaler.com 
    Dial-in: To join by phone, register at the following link: (https://register.vevent.com/register/BI81201a44d72f48cab018ea30aa79b03b). After registering, you will be provided with a dial-in number and a personal PIN that you will need to join the call.
       

    Upcoming Conferences

    Third quarter of fiscal 2025 investor conference participation schedule:

    • Morgan Stanley Technology, Media and Telecom Conference in San Francisco
      Thursday, March 6, 2025
    • Susquehanna Travel, Tech + Gambling Forum (Virtual)
      Friday, March 7, 2025
    • Loop Capital Markets 2025 Investor Conference (Virtual)
      Monday, March 10, 2025
    • Stifel Technology 2025 Technology One-on-One Conference in New York City
      Tuesday, March 11, 2025
    • Cantor Global Technology Conference in New York City
      Wednesday, March 12, 2025

    Sessions which offer a webcast will be available on the Investor Relations section of the Zscaler website at https://ir.zscaler.com/

    Forward-Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding our future financial and operating performance, including our financial outlook for the third quarter of fiscal 2025 and full year fiscal 2025. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including but not limited to: macroeconomic influences and instability, geopolitical events, operations and financial results and the economy in general; risks related to the use of AI in our platform; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth, including fluctuations from period to period; our limited experience with new products and subscriptions and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscription and support; rapidly evolving technological developments in the market for network security products and subscription and support offerings and our ability to remain competitive; length of sales cycles; useful lives of our assets and other estimates; and general market, political, economic and business conditions.

    Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in our filings and reports with the Securities and Exchange Commission (“SEC”), including our Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2024 filed on December 5, 2024 and our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 filed on September 12, 2024, as well as future filings and reports by us, copies of which are available on our website at ir.zscaler.com and on the SEC’s website at www.sec.gov. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

    Use of Non-GAAP Financial Information

    We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

    About Zscaler

    Zscaler (Nasdaq: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 160 data centers globally, the SASE-based Zero Trust Exchange is the world’s largest in-line cloud security platform.

    Zscaler™ and the other trademarks listed at https://www.zscaler.com/legal/trademarks are either (i) registered trademarks or service marks or (ii) trademarks or service marks of Zscaler, Inc. in the United States and/or other countries. Any other trademarks are the properties of their respective owners.

    Investor Relations Contacts

    Ashwin Kesireddy
    VP, Investor Relations and Strategic Finance
    (415) 798-1475
    ir@zscaler.com

    Natalia Wodecki
    Media Relations Contact
    press@zscaler.com

     
    ZSCALER, INC.
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
    Cost of revenue(1) (2)   148,498       117,199       289,960       228,593  
    Gross profit   499,402       407,800       985,895       793,109  
    Operating expenses:              
    Sales and marketing(1) (2)   307,872       276,481       613,959       543,592  
    Research and development(1) (2)   170,860       122,181       325,114       235,720  
    General and administrative(1)   60,810       54,595       117,629       105,311  
    Total operating expenses   539,542       453,257       1,056,702       884,623  
    Loss from operations   (40,140 )     (45,457 )     (70,807 )     (91,514 )
    Interest income   30,878       28,385       60,926       54,327  
    Interest expense(3)   (2,339 )     (3,605 )     (5,482 )     (6,764 )
    Other income (expense), net   (4,936 )     172       (5,588 )     (1,040 )
    Loss before income taxes   (16,537 )     (20,505 )     (20,951 )     (44,991 )
    Provision for (benefit from) for income taxes(4)   (8,813 )     7,964       (1,176 )     16,961  
    Net loss $ (7,724 )   $ (28,469 )   $ (19,775 )   $ (61,952 )
    Net loss per share, basic and diluted $ (0.05 )   $ (0.19 )   $ (0.13 )   $ (0.42 )
    Weighted-average shares used in computing net loss per share, basic and diluted   153,672       148,951       153,114       148,287  
    (1) Includes stock-based compensation expense and related payroll taxes as follows:
    Cost of revenue $ 17,619     $ 13,434     $ 33,412     $ 26,389  
    Sales and marketing   69,979       65,855       134,845       124,523  
    Research and development   65,896       44,120       124,761       85,163  
    General and administrative   22,862       22,127       43,912       42,190  
    Total $ 176,356     $ 145,536     $ 336,930     $ 278,265  
    (2) Includes amortization expense of acquired intangible assets as follows:
    Cost of revenue $ 3,815     $ 2,717     $ 7,490     $ 5,434  
    Sales and marketing   425       226       850       452  
    Research and development   5       140       145       233  
    Total $ 4,245     $ 3,083     $ 8,485     $ 6,119  
    (3) Includes amortization of debt issuance costs $ 982     $ 978     $ 1,963     $ 1,955  
    (4) Benefit from a release of valuation allowance (*) $ 17,188     $ —     $ 17,188     $ —  
                                   

    (*) During the three months ended January 31, 2025, we recognized a tax benefit of $17.2 million attributable to the release of the valuation allowance on United Kingdom (U.K.) deferred tax assets.

     
    ZSCALER, INC.
    Condensed Consolidated Balance Sheets
    (in thousands)
    (unaudited)
      January 31,   July 31,
      2025   2024
    Assets      
    Current assets:      
    Cash and cash equivalents $ 1,758,506     $ 1,423,080  
    Short-term investments   1,121,734       986,574  
    Accounts receivable, net   514,314       736,529  
    Deferred contract acquisition costs   156,079       148,873  
    Prepaid expenses and other current assets   114,573       101,561  
    Total current assets   3,665,206       3,396,617  
    Property and equipment, net   422,315       383,121  
    Operating lease right-of-use assets   83,703       89,758  
    Deferred contract acquisition costs, noncurrent   284,286       296,525  
    Acquired intangible assets, net   55,658       63,835  
    Goodwill   417,730       417,029  
    Other noncurrent assets   77,070       58,083  
    Total assets $ 5,005,968     $ 4,704,968  
           
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 24,600     $ 23,309  
    Accrued expenses and other current liabilities   90,626       91,708  
    Accrued compensation   140,430       160,810  
    Deferred revenue   1,595,780       1,643,919  
    Convertible senior notes   1,147,513       1,142,275  
    Operating lease liabilities   49,917       50,866  
    Total current liabilities   3,048,866       3,112,887  
    Deferred revenue, noncurrent   282,725       251,055  
    Operating lease liabilities, noncurrent   40,912       44,824  
    Other noncurrent liabilities   26,119       22,100  
    Total liabilities   3,398,622       3,430,866  
    Stockholders’ Equity      
    Common stock   155       152  
    Additional paid-in capital   2,797,350       2,426,819  
    Accumulated other comprehensive loss   (22,304 )     (4,789 )
    Accumulated deficit   (1,167,855 )     (1,148,080 )
    Total stockholders’ equity   1,607,346       1,274,102  
    Total liabilities and stockholders’ equity $ 5,005,968     $ 4,704,968  
                   
     
    ZSCALER, INC.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
      Six Months Ended
      January 31,
      2025   2024
    Cash Flows from Operating Activities      
    Net loss $ (19,775 )   $ (61,952 )
    Adjustments to reconcile net loss to cash provided by operating activities:      
    Depreciation and amortization expense   45,911       29,361  
    Amortization expense of acquired intangible assets   8,485       6,119  
    Amortization of deferred contract acquisition costs   79,191       61,504  
    Amortization of debt issuance costs   1,963       1,955  
    Non-cash operating lease costs   31,565       21,633  
    Stock-based compensation expense   329,295       269,570  
    Accretion of investments purchased at a discount   (10,110 )     (9,582 )
    Unrealized losses on hedging transactions   3,036       2,841  
    Deferred income taxes   (17,359 )     (1,437 )
    Other   1,303       1,403  
    Changes in operating assets and liabilities, net of effects of business acquisitions:      
    Accounts receivable   222,043       102,374  
    Deferred contract acquisition costs   (74,158 )     (67,744 )
    Prepaid expenses, other current and noncurrent assets   (12,144 )     2,660  
    Accounts payable   98       (2,412 )
    Accrued expenses, other current and noncurrent liabilities   (11,481 )     6,020  
    Accrued compensation   (20,380 )     562  
    Deferred revenue   (16,469 )     62,477  
    Operating lease liabilities   (30,246 )     (22,477 )
    Net cash provided by operating activities   510,768       402,875  
    Cash Flows from Investing Activities      
    Purchases of property, equipment and other assets   (32,043 )     (59,553 )
    Capitalized internal-use software   (43,416 )     (17,816 )
    Payments for business acquisitions, net of cash acquired   (834 )     (4,377 )
    Purchase of strategic investments   (786 )     (2,000 )
    Purchases of short-term investments   (729,066 )     (761,796 )
    Proceeds from maturities of short-term investments   605,003       594,687  
    Proceeds from sale of short-term investments   —       2,105  
    Net cash used in investing activities   (201,142 )     (248,750 )
    Cash Flows from Financing Activities      
    Proceeds from issuance of common stock upon exercise of stock options   3,456       3,848  
    Proceeds from issuance of common stock under the employee stock purchase plan   22,344       18,407  
    Net cash provided by financing activities   25,800       22,255  
    Net increase in cash and cash equivalents   335,426       176,380  
    Cash and cash equivalents at beginning of period   1,423,080       1,262,206  
    Cash and cash equivalents at end of period $ 1,758,506     $ 1,438,586  
                   
     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except percentages)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
                   
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
                   
    Non-GAAP Gross Profit and Non-GAAP Gross Margin              
    GAAP gross profit $ 499,402     $ 407,800     $ 985,895     $ 793,109  
    Add: Stock-based compensation expense and related payroll taxes   17,619       13,434       33,412       26,389  
    Add: Amortization expense of acquired intangible assets   3,815       2,717       7,490       5,434  
    Non-GAAP gross profit $ 520,836     $ 423,951     $ 1,026,797     $ 824,932  
    GAAP gross margin   77 %     78 %     77 %     78 %
    Non-GAAP gross margin   80 %     81 %     80 %     81 %
                   
    Non-GAAP Income from Operations and Non-GAAP Operating Margin              
    GAAP loss from operations $ (40,140 )   $ (45,457 )   $ (70,807 )   $ (91,514 )
    Add: Stock-based compensation expense and related payroll taxes   176,356       145,536       336,930       278,265  
    Add: Amortization expense of acquired intangible assets   4,245       3,083       8,485       6,119  
    Non-GAAP income from operations $ 140,461     $ 103,162     $ 274,608     $ 192,870  
    GAAP operating margin (6 )%   (9 )%   (6 )%   (9 )%
    Non-GAAP operating margin   22 %     20 %     22 %     19 %
                                   
     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except per share amounts)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Non-GAAP Net Income per Share, Diluted              
    GAAP net loss $ (7,724 )   $ (28,469 )   $ (19,775 )   $ (61,952 )
    Add: GAAP provision for (benefit from) income taxes   (8,813 )     7,964       (1,176 )     16,961  
    GAAP loss before income taxes   (16,537 )     (20,505 )     (20,951 )     (44,991 )
    Add:              
    Stock-based compensation expense and related payroll taxes   176,356       145,536       336,930       278,265  
    Amortization expense of acquired intangible assets   4,245       3,083       8,485       6,119  
    Amortization of debt issuance costs   982       978       1,963       1,955  
    Non-GAAP net income before income taxes   165,046       129,092       326,427       241,348  
    Non-GAAP provision for income taxes(1)   37,965       29,691       75,083       55,510  
    Non-GAAP net income $ 127,081     $ 99,401     $ 251,344     $ 185,838  
                   
    GAAP provision for (benefit from) income taxes $ (8,813 )   $ 7,964     $ (1,176 )   $ 16,961  
    Add: Income tax and other tax adjustments(2)   46,778       21,727       76,259       38,549  
    Non-GAAP provision for income taxes(1) $ 37,965     $ 29,691     $ 75,083     $ 55,510  
    Non-GAAP effective tax rate(1)   23 %     23 %     23 %     23 %
                   
    Non-GAAP net income   127,081       99,401       251,344       185,838  
    Add: Non-GAAP interest expense, net of tax related to the convertible senior notes   276       276       552       552  
    Numerator used in computing non-GAAP net income per share, diluted $ 127,357     $ 99,677     $ 251,896     $ 186,390  
                   
    GAAP net loss per share, diluted $ (0.05 )   $ (0.19 )   $ (0.13 )   $ (0.42 )
    Stock-based compensation expense and related payroll taxes   1.09       0.91       2.08       1.75  
    Amortization expense of acquired intangible assets   0.03       0.02       0.05       0.04  
    Amortization of debt issuance costs   0.01       0.01       0.01       0.01  
    Income tax and other tax adjustments(2)   (0.29 )     (0.14 )     (0.47 )     (0.24 )
    Non-GAAP interest expense related to the convertible senior notes   —       —       —       —  
    Adjustment to total fully diluted earnings per share(3)   (0.01 )     0.02       0.01       0.03  
    Non-GAAP net income per share, diluted $ 0.78     $ 0.63     $ 1.55     $ 1.17  
                   
    Weighted-average shares used in computing GAAP net loss per share, diluted   153,672       148,951       153,114       148,287  
    Add: Outstanding potentially dilutive equity incentive awards   2,988       4,670       2,848       4,226  
    Add: Convertible senior notes   7,626       7,626       7,626       7,626  
    Less: Antidilutive impact of capped call transactions(4)   (1,769 )     (2,093 )     (1,505 )     (1,254 )
    Weighted-average shares used in computing non-GAAP net income per share, diluted   162,517       159,154       162,083       158,885  

    ___________

    (1) Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods in fiscal 2025 and beyond. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    (2) Consists of income tax adjustments related to our long-term non-GAAP effective tax rate of 23%. In the three months ended January 31, 2025, the adjustments exclude the tax benefit of $17.2 million attributable to the release of the valuation allowance on U.K. deferred tax assets.

    (3) The sum of the fully diluted earnings per share impact of individual reconciling items may not total to fully diluted non-GAAP net income per share due to the weighted-average shares used in computing the GAAP net loss per share differs from the weighted-average shares used in computing the non-GAAP net income per share, and due to rounding of the individual reconciling items. The GAAP net loss per share calculation uses a lower share count as it excludes potentially dilutive shares, which are included in calculating the non-GAAP net income per share.

    (4) We exclude the in-the-money portion of the convertible senior notes for non-GAAP weighted-average diluted shares as they are covered by our capped call transactions. Our outstanding capped call transactions are antidilutive under GAAP but are expected to mitigate the dilutive effect of the convertible senior notes and therefore are included in the calculation of non-GAAP diluted shares outstanding. The capped calls have an antidilutive impact when the average stock price of our common stock in a given period is higher than their exercise price.

     
    ZSCALER, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (in thousands, except percentages)
    (unaudited)
                   
      Three Months Ended   Six Months Ended
      January 31,   January 31,
      2025   2024   2025   2024
    Calculated Billings              
    Revenue $ 647,900     $ 524,999     $ 1,275,855     $ 1,021,702  
    Add: Total deferred revenue, end of period   1,878,505       1,502,175       1,878,505       1,502,175  
    Less: Total deferred revenue, beginning of period   (1,783,720 )     (1,399,544 )     (1,894,974 )     (1,439,676 )
    Calculated billings $ 742,685     $ 627,630     $ 1,259,386     $ 1,084,201  
                   
    Free Cash Flow              
    Net cash provided by operating activities $ 179,433     $ 142,069     $ 510,768     $ 402,875  
    Less: Purchases of property, equipment and other assets   (15,018 )     (30,894 )     (32,043 )     (59,553 )
    Less: Capitalized internal-use software   (20,987 )     (10,387 )     (43,416 )     (17,816 )
    Free cash flow $ 143,428     $ 100,788     $ 435,309     $ 325,506  
                   
    Free Cash Flow Margin              
    Net cash provided by operating activities, as a percentage of revenue   27 %     27 %     40 %     39 %
    Less: Purchases of property, equipment and other assets, as a percentage of revenue (2 )%   (6 )%   (3 )%   (6 )%
    Less: Capitalized internal-use software, as a percentage of revenue (3 )%   (2 )%   (3 )%   (2 )%
    Free cash flow margin   22 %     19 %     34 %     32 %
                                   
     
    ZSCALER, INC.
    Explanation of Non-GAAP Financial Measures
     

    In addition to our results determined in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, as it has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In particular, free cash flow is not a substitute for cash provided by operating activities. Additionally, the utility of free cash flow as a measure of our liquidity is further limited as it does not represent the total increase or decrease in our cash balance for a given period. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation of our historical non-GAAP financial measures to their most directly comparable financial measures stated in accordance with GAAP has been included in this press release. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Investors are encouraged to review these reconciliations, and not to rely on any single financial measure to evaluate our business.

    Expenses Excluded from Non-GAAP Measures

    Stock-based compensation expense is excluded primarily because it is a non-cash expense that management believes is not reflective of our ongoing operational performance. Employer payroll taxes related to stock-based compensation, which is a cash expense, are excluded because these are tied to the timing and size of the exercise or vesting of the underlying equity incentive awards and the price of our common stock at the time of vesting or exercise, which may vary from period to period independent of the operating performance of our business. Amortization expense of acquired intangible assets and amortization of debt issuance costs from the convertible senior notes are excluded because these are non-cash expenses and are not reflective of our ongoing operational performance.

    Effective August 1, 2024, the beginning of our fiscal year ending July 31, 2025, we are using a long-term projected non-GAAP tax rate of 23% for the purpose of determining our non-GAAP net income and non-GAAP net income per share to provide better consistency across interim reporting periods. Given the significant growth of our business and non-GAAP operating income, we believe this change is necessary to better reflect the performance of our business. We will continue to assess the appropriate non-GAAP tax rate on a regular basis, which could be subject to changes for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix, or other changes to our strategy or business operations. Prior period amounts have been recast to reflect this change.

    Non-GAAP Financial Measures

    Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define non-GAAP gross profit as GAAP gross profit excluding stock-based compensation expense and related employer payroll taxes and amortization expense of acquired intangible assets. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

    Non-GAAP Income from Operations and Non-GAAP Operating Margin. We define non-GAAP income from operations as GAAP loss from operations excluding stock-based compensation expense and related employer payroll taxes and amortization expense of acquired intangible assets. We define non-GAAP operating margin as non-GAAP income from operations as a percentage of revenue.

    Non-GAAP Net Income per Share, Diluted. We define non-GAAP net income as GAAP net loss excluding stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets, amortization of debt issuance costs, and the non-GAAP provision for income taxes adjustment. We define non-GAAP net income per share, diluted, as non-GAAP net income plus the non-GAAP interest expense related to the convertible senior notes divided by the weighted-average diluted shares outstanding, which includes the effect of potentially diluted common stock equivalents outstanding during the period and the anti-dilutive impact of the capped call transactions entered into in connection with the convertible senior notes.

    Calculated Billings. We define calculated billings as revenue plus the change in deferred revenue in a period. Calculated billings in any particular period aims to reflect amounts invoiced for subscriptions to access our cloud platform, together with related support services for our new and existing customers. We typically invoice our customers annually in advance, and to a lesser extent quarterly in advance, monthly in advance or multi-year in advance.

    Free Cash Flow and Free Cash Flow Margin. We define free cash flow as net cash provided by operating activities less purchases of property, equipment and other assets and capitalized internal-use software. We define free cash flow margin as free cash flow divided by revenue. We believe that free cash flow and free cash flow margin are useful indicators of liquidity that provide information to management and investors about the amount of cash generated from our operations that, after the investments in property, equipment and other assets and capitalized internal-use software, can be used for strategic initiatives.

    The MIL Network –

  • MIL-OSI United Nations: World News in Brief: Guterres convenes Cyprus summit, violence continues in southern Lebanon, UN aid hub in Chad expands

    Source: United Nations 2

    Humanitarian Aid

    The UN Secretary-General on Wednesday announced a fresh bid to end the decades-long division of Cyprus through informal talks scheduled to take place over two days from 17 March.

    UN Spokesperson Stéphane Dujarric told journalists at the regular daily briefing in New York that the leaders of both the Turkish Cypriot and Greek Cypriot communities would join UN chief António Guterres along with guarantors Greece, Türkiye and the United Kingdom, at the UN in Geneva.

    The Mediterranean island was divided between north and south in 1974 after years of hostilities. The UN has led negotiations towards a settlement, with the Security Council authorising a peacekeeping force in 1964, UNFICYP.

    In the absence of a lasting agreement, the force remains on the island to supervise ceasefire lines, a buffer zone and to support humanitarian activities.

    Previous talks

    Mr. Guterres attempted to bring the two sides together in 2017 at the Swiss Alpine resort of Crans-Montana but talks ultimately broke down. A further push was made in 2021.

    The meeting later this month will take place “in the context of the Secretary-General’s good offices’ efforts on the Cyprus issue,” in in line with his commitment to continue efforts made last October. 

    “The informal meeting will provide an opportunity for a meaningful discussion on the way forward on the Cyprus issue,” Mr Dujarric said.

    “The United Nations remains committed to supporting the Cypriot leaders and all Cypriots.”

    Lebanon: Fighting continues in peacekeepers’ area of operations

    The UN Interim Force in Lebanon (UNIFIL) reported more gunfire in their area of operations on Wednesday, as well as sporadic military activity by Israeli forces, the UN Spokesperson said on Wednesday.

    As of now, the Lebanese army have deployed to more than 100 locations in southern Lebanon – between the Litani River and the ‘Blue Line’ of separation between the two countries – with the support of UN peacekeepers.

    Unexploded ordnance

    The latest conflict has left south Lebanon, especially areas close to the Blue Line, heavily littered with unexploded ordnances, “posing very serious risks to civilians”.

    The UN Interim Force in Lebanon (UNIFIL) deminers continue to assist Lebanese authorities in finding and destroying these explosive remnants. 

    “Our peacekeepers have continued to discover caches of unauthorised weapons and ammunitions, including yesterday, a number of them in our Sector West, and all of them were duly reported to the Lebanese Armed Forces,” Mr. Dujarric explained.

    Between 21 October 2024 and 26 February, 44 unexploded ordnances and six improvised explosive devices were discovered and destroyed.

    Humanitarian work continues

    At the same time, UNIFIL continues to facilitate humanitarian missions in their areas of operation, with over 60 missions having taken place since the cessation of hostilities, facilitating the return of displaced people.

    Separately, the mission reports that 31 arrests have been made in connection with the attack on 14 February on a convoy near the Beirut airport. 

    Mr. Dujarric emphasised the importance that “those responsible for that attack are brought to justice”, with the attack targeting the then Deputy Force Commander of UNIFIL and a number of his companions.

    IOM expands humanitarian hub in Chad to aid 220,000 amid Sudan crisis

    The International Organization for Migration (IOM) and the International Humanitarian Partnership (IHP) have completed the expansion of a key aid hub in Chad, in a move that will enable aid teams to reach up to 220,000 more in need.

    The expanded operational capacity at the hub in Farchana will strengthen cross-border interagency humanitarian operations for Sudan – the world’s worst displacement crisis. 

    Since April 2023, more than 11.5 million people have been displaced within Sudan and an additional 3.5 million have fled across borders, including an estimated 930,000 who have crossed from Sudan into Chad.

    Nine million in need across Darfur

    According to recent figures, nearly nine million people in the Darfur region alone require immediate assistance.

    “With the strengthened cross-border operations, IOM has already reached over 82,000 people in Darfur with critical humanitarian aid, and with the expansion of the Farchana hub, we are poised to provide life-saving assistance to an additional 220,000 people in the coming months,” explained Pascal Reyntjens, IOM Chief of Mission in Chad.

    “The hub also enables greater collaboration between humanitarian actors, development agencies and the government, which is essential for a comprehensive and sustainable response,” he continued.

    The expansion includes office space, living quarters and other infrastructure that will help improve the effectiveness of aid work in hard-to-reach field locations in Sudan.

    These enhancements will also enable international and national NGOs and UN agencies to further scale up cross-border operations from Chad into Darfur, where humanitarian needs are rapidly escalating.

    MIL OSI United Nations News –

  • MIL-OSI Canada: Securing the Alberta-U.S. border

    [. Alberta’s government recognizes the need for swift and decisive action that will curb drug trafficking and illegal border crossings to strengthen the province’s border security.

    The team’s first cohort has been deployed and hiring will continue until all 51 positions are filled. The IPT is now operational, working closely with the RCMP and Canada Border Services Agency to identify and apprehend individuals suspected of drug smuggling, human trafficking and other illegal activities involving movement across the Canada-U.S. border. To date, 20 members of the Alberta Sheriffs have been assigned to the IPT to patrol between entry points, and to vehicle inspection stations along Alberta’s side of the border.

    Sheriffs Interdiction Patrol Team map

    “We are committed to strengthening security along Alberta’s southern border to put an end to the dangerous criminal activities that are destroying lives on both sides of the border. In addition to launching our new Interdiction Patrol Team, we are building three new vehicle inspection stations and increasing highway monitoring for suspicious activity. Our plan will ensure that Alberta’s southern border is secure.”

    Danielle Smith, Premier

    “Alberta’s government is increasing border security and has zero tolerance for illegal activities that threaten the well-being of Albertans or Alberta’s economy. The Alberta Sheriffs Interdiction Patrol Team puts more boots on the ground to identify where and when these activities are taking place, boosting security along our southern border and disrupting dangerous cross-border human, drugs and weapons trafficking in both directions. Let this be a message to all potential traffickers, especially those who traffic deadly fentanyl, you will get caught and you will go to jail.”

    Mike Ellis, Minister of Public Safety and Emergency Services

    Alberta’s government continues to acquire equipment that will enable the IPT to detect and apprehend individuals committing illegal activity, including drones, night-vision optics and patrol canines. This team will patrol to detect and intercept illicit drugs, illegal firearms and unlawful attempts at illegal international border crossing. The IPT will be fully operational in coming months.

    Through this process, Alberta has identified further significant concerns with the shared Canada-U.S. border. In response, Alberta’s government is advancing further measures to increase the security of the southern border.

    In addition to the IPT, Alberta Transportation and Economic Corridors is dedicating $15 million over two years for three new vehicle inspection stations near the border, if Budget 2025 passes. This will give Sheriffs dedicated facilities to inspect commercial vehicles, whether they’re crossing into the United States or coming into Canada. The stations will be located on Highway 1 at Dunmore, Highway 3 at Burmis and Highway 4 at Coutts. The stations will include enhanced parking lanes for inspections, and winter ready buildings for year-round inspections.

    Another measure undertaken by Alberta’s government is to train highway maintenance workers to identify and report suspicious activity during highway maintenance operations. Volker Stevin has a contract to maintain about 600 kilometres of highways in southern Alberta and by empowering their workers to identify and report suspicious activity, Alberta’s government is layering further security measures without adding additional costs.

    “Border security is a priority, and Alberta Transportation and Economic Corridors is doing its part to enhance security and surveillance through three new vehicle inspection stations and with the help of our highway maintenance contractors, who will be trained to detect and report suspicious activity, providing an extra pair of eyes along the border.”

    Devin Dreeshen, Minister of Transportation and Economic Corridors

    “The Interdiction Patrol Team will play a key role in eradicating crimes that seek to exploit the Alberta-Montana border in both directions. The Alberta Sheriffs are pleased to collaborate with the RCMP, Canada Border Services Agency and our counterparts in the United States as we work to keep our shared border safe and secure.”

    Bob Andrews, chief, Alberta Sheriffs

    Alberta’s government also amended the Critical Infrastructure Defence Regulation in January 2025 to add a two-kilometre-deep border zone north of the Alberta-United States border to the definition of essential infrastructure under the Critical Infrastructure Defence Act. The act gives peace officers the authority to arrest individuals caught trespassing on, interfering with or damaging essential infrastructure and who do not have a lawful right, to be on the essential infrastructure.

    “Amending the Critical Infrastructure Defence Regulation is a key piece of our efforts to strengthen security in the area near the international border. We have quickly taken action that will support law enforcement in improving public safety, and tackle cross-border crime, drugs, illegal migrants and human-trafficking.”

    Mickey Amery, Minister of Justice and Attorney General

    Quick facts:

    IPT will be supported by:

    • 51 uniformed officers equipped with carbine rifles (weapons for tactical operations)
    • 10 support staff, including dispatchers and analysts
    • four drug patrol dogs, critical to ensure reasonable suspicion to search vehicles
    • 10 cold weather surveillance drones that can operate in high winds with dedicated pilots
    • four narcotics analyzers to test for illicit drugs

    The IPT has already conducted more than 3,300 stops/contacts and has been successful in:

    • assisting with four Northbound unauthorized border crossings
    • executing 18 warrants and conducting two Judicial Interim Release hearings
    • conducting three arrests related to possession of cocaine for the purpose of trafficking

    Related news

    • A plan to secure Alberta’s southern border (Dec. 12, 2024)

    Multimedia

    • Watch the news conference

    MIL OSI Canada News –

  • MIL-OSI New Zealand: Auckland’s flood resilience pilot a success: community leadership drives expansion in 2025

    Source: Auckland Council

    Aucklanders have come together to build flood resilience, with a successful pilot programme proving the power of community action. Their efforts have paved the way for region-wide expansion in 2025, helping more neighbourhoods prepare for future storms.

    As part of Council’s Making Space for Water programme – a response to the 2023 extreme weather events – the pilot focused on promoting partnership, inclusivity, and local leadership to enhance Auckland’s flood resilience.

    Running from September 2023 to December 2024, the pilot:

    • engaged 1,424 volunteers in resilience-building activities, including clearing critical stream blockages
    • partnered with 11 organisations to amplify community leadership
    • delivered 72 community events to improve flood awareness and stormwater management
    • planted 2,512 native plants in the right places to absorb water and reduce erosion.

    Building on this success, 12 community environmental organisations have now been contracted to expand the programme regionwide in 2025 strengthening flood preparedness in at-risk communities by:

    • increasing public workshops to improve flood literacy and understanding of healthy catchments.
    • expanding stream restoration efforts to support stormwater management.
    • strengthening partnerships with mana whenua and local organisations to enhance resilience.

    “The 2023 storms showed that we needed to strengthen community connections and invest in community engagement to foster resilience,” says Tom Mansell, Auckland Council’s Head of Sustainable Partnerships.

    “This initiative ensures communities aren’t just preparing for floods—they’re actively reducing risk through education and local initiatives.”

    Alanah Mullin from EcoMatters is involved in the initiative and highlights the importance of collective action. 

    “Flooding is a growing challenge, but we can all be part of the solution. Restoring waterways and planting the right native plants in the right places can help absorb stormwater and reduce the impact of heavy rain on our communities,” she says.

    “When the city’s drainage system is overwhelmed, healthy streams can play a crucial role in moving excess water to the sea. By working together, we’re making Auckland more resilient—one neighbourhood at a time.”

    Tom Mansell agrees.

    “This initiative shows the power of community-led action. We’re not just responding to past events—we’re building a more resilient Auckland for the future.”

    For more information or to get involved, visit

    MIL OSI New Zealand News –

  • MIL-OSI Security: Lake County Man Pleads Guilty In Federal Firearms Trafficking Investigation

    Source: Office of United States Attorneys

    Ocala, Florida – Acting United States Attorney Sara C. Sweeney announces that Jose G. Medina (49, Leesburg) has pleaded guilty to three counts of knowingly making a materially false statement in connection with the acquisition of a firearm and three counts of causing a Federal Firearm Licensee (FFL) to maintain false information in its official records. Medina faces up to 10 years in federal prison for each false statement offense and up to 5 years’ imprisonment for each record-keeping offense. A sentencing date has not yet been set. 

    According to court records, between January 1 and December 31, 2023, Medina straw-purchased multiple firearms for other individuals. Some of these firearms were intercepted by the United States Custom and Border Patrol (CBP) as other individuals attempted to transport them across the border into Mexico.

    On May 27, 2023, an individual was encountered by CBP as he tried to make entry into Mexico at the Eagle Pass (Texas) Port of Entry. He was attempting to bring 10 handguns, 9 rifles, 7 shotguns, 20 ammunition magazines, and large amounts of assorted ammunition into Mexico. The individual stated that he was traveling from Orlando to San Diego de la Union, Guanajuato, Mexico. Medina had purchased one of these recovered firearms nine days earlier. 

    Firearms and ammunition seized at the U.S. border on May 27, 2023.

     

    On November 17, 2023, CBP officers stopped another individual at the Eagle Pass (Texas) Port of Entry who also was attempting to bring five firearms into Mexico. Medina had purchased two of these firearms less than two weeks earlier.  

    A record check by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) showed that between January 1 and December 31, 2023, Medina had purchased 82 firearms for a total of $42,085.61—an amount that exceeded his reported annual income. The investigation also revealed that another firearm purchased by an associate of Medina had recently been recovered and electronically traced by Mexican law enforcement using ATF’s e-Trace system.    

    This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Drug Enforcement Administration, the Eustis Police Department, and the Lake County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Hannah Nowalk Watson.

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

    MIL Security OSI –

  • MIL-OSI Security: New Haven Man Pleads Guilty to Possessing Gun While on Federal Supervised Release

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that ELBERT LLORRENS, 32, of New Haven, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to unlawful possession of a firearm by a felon.

    According to court documents and statements made in court, on March 1, 2024, Llorrens possessed a loaded Smith & Wesson, model SD40 VE, .40 caliber pistol.

    In March 2017, Llorrens was sentenced in Hartford federal court to 60 months of imprisonment and five years of supervised release for committing multiple carjackings and armed robberies, and he was on federal supervised release when he possessed the firearm.

    It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.

    Unlawful possession of a firearm carries a maximum term of imprisonment of 15 years.  Llorrens is scheduled to be sentenced on June 4.

    Llorrens has been detained since March 1, 2024.

    This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the New Haven Police Department, and the West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.

    This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.  For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.

    MIL Security OSI –

  • MIL-OSI USA: Booker’s Joint Address Guest, Cameron McKenzie, Fired Federal Worker of Blairstown, New Jersey

    US Senate News:

    Source: United States Senator for New Jersey Cory Booker
    WASHINGTON, D.C. – Today, U.S. Senator Cory Booker (D-NJ) will be joined by Cameron McKenzie at President Trump’s Joint Address to Congress this evening. Against the backdrop of increased and uncharacteristic forest fires in New Jersey, McKenzie abruptly lost his job in the United States Forest Service as part of wider DOGE purges across the federal government workforce. As a result of losing his job, Cameron is now planning to sell his home in Blairstown, New Jersey.
    “Cameron McKenzie believed deeply in the work he was doing with the United States Forest Service. He was taking care of our environment and serving as a steward to one of our nation’s most valued treasures. Unfortunately, Cameron’s post was part of Elon Musk’s wider effort to purge the federal workforce, and its impact extends beyond the void left in the Forest Service and every other federal agency. Cameron’s future is now uncertain, and he will have to sell his home in Blairstown. What Musk is doing is hemorrhaging our nation’s talented workforce and unduly harming people and communities nationwide, including New Jerseyans. It is my honor to be joined by Cameron this evening, and it is my hope that his courage and resilience are recognized for what they are: patriotic,” said Senator Booker.
    Cameron McKenzie is a graduate of Princeton University and Yale University and lives and works in Blairstown, New Jersey. Upon receiving his master’s degree in forestry, he successfully applied to the highly competitive and prestigious Presidential Management Fellowship Program (PMF), whereupon he was assigned to serve in the United States Forest Service as a Community Engagement Specialist. The position afforded him the opportunity to manage U.S. Forest Service outreach programs across more than twenty national forests in the midwestern and northeastern United States. Unfortunately, Cameron’s job with the Forest Service was terminated following wider DOGE purges across the federal government workforce. His story, and those of former federal workers, was featured in a February story in The New York Times.

    MIL OSI USA News –

  • MIL-OSI USA: Booker, Warren, Lawmakers to Trump: Fire Elon Musk, Reinstate Agency Leaders, and Federal Watchdogs

    US Senate News:

    Source: United States Senator for New Jersey Cory Booker
    WASHINGTON, D.C. – Today, U.S. Senator Cory Booker (D-NJ), along with Senator Elizabeth Warren (D-MA), and House Oversight Committee Ranking Member Gerry Connolly (D-VA) and House Judiciary Committee Ranking Member Jamie Raskin (D-MD), led 38 Members of Congress in a letter to President Donald Trump, raising concerns about his unlawful firings of dozens of independent agency heads and inspectors general (IGs), and calling attention to how many of these firings appear to benefit Elon Musk. The Members also demand that President Trump remove Musk from his government role unless he addresses his conflicts of interest, and immediately reinstate the illegally fired individuals. 
    “Nearly all of your decisions you made about who to fire appear to benefit Mr. Musk, and many target individuals and agencies that are currently investigating or prosecuting Mr. Musk or his companies for unlawful behavior,” wrote the lawmakers. “Many of these individuals have legal protections dictating why and how they can be removed from office.”
    Many of the firings appear to benefit Musk and his business interests. Musk and his companies were the subject of at least 20 recent government investigations or prosecutions, including for possible violations of federal safety and labor laws—until Musk dismantled those agencies. The lawmakers’ letter names several agency heads and watchdogs who were overseeing the investigations who and were improperly fired, including: NLRB Chair Gwynne Wilcox, FEC Chair Ellen Weintraub, EEOC Commissioners Jocelyn Samuels and Charlotte Burrow, and USDA Inspector General Phyllis Fong.
    “Altogether, these firings either directly benefit Mr. Musk and his companies or remove guardrails that would hold them accountable to the rule of law,” the lawmakers continued.
    Several of Trump’s orders violate the officials’ legal protections. For example, federal law requires the president to notify Congress 30 days before removing an inspector general, but Trump failed to do so before firing over a dozen IGs. He also didn’t provide the justification required to remove a leaders of independent agencies. 
    “The impacts are vast: in total, your removals of agency heads and career civil servants have affected at least eleven federal agencies with more than thirty-two ongoing investigations, complaints, or enforcement actions on Mr. Musk’s companies,” wrote the lawmakers.
    The lawmakers warned that failing to hold Musk accountable hurts American citizens and threatens the democratic system of checks and balances.
    “These firings have removed the exact individuals in our government who would hold Mr. Musk and his companies accountable for following the law and protect everyday Americans from threats to their health, welfare, safety, and economic well-being,” wrote the lawmakers.
    “We urge you to immediately reinstate the illegally fired individuals and remove Mr. Musk from his government role unless he addresses his massive and glaring conflicts of interest as required by law,” concluded the lawmakers.
    The letter is cosigned by U.S. Senators Richard Blumenthal (D-CT), Martin Heinrich (D-NM), Ed Markey (D-MA), Alex Padilla (D-CA), Bernie Sanders (I-VT), Adam Schiff (D-CA), and Chris Van Hollen (D-MD).
    In addition to co-leads House Oversight Committee Ranking Member Gerry Connolly (D-VA) and House Judiciary Committee Ranking Member Jamie Raskin (D-MD), the following Representatives signed on: Balint (D-VT), Beyer (D-VA), Brownley (D-CA), Clarke (D-NY), Cleaver (D-MO), Cohen (D-TN), Davis (D-IL), DeSaulnier (D-CA), García (D-IL), Garcia (D-CA), Grijalva (D-AZ), Johnson (D-GA), Kelly (D-IL), Khanna (D-CA), Lee (D-PA), Levin (D-CA), Matsui (D-CA), McIver (D-NJ), Moulton (D-MA), Norton (D-DC), Olszewski (D-MD), Ramirez (D-IL), Scanlon (D-PA), Schakowsky (D-IL), Stansbury (D-NM), Subramanyam (D-VA), Titus (D-NV), Tlaib (D-MI), Tokuda (D-HI), Tonko (D-NY), and Waters (D-CA).
    To read the full text of the letter, click here.

    MIL OSI USA News –

  • MIL-OSI Security: Southwest Nova — Southwest Nova District RCMP charge several people, seize drugs and weapons in multiple drug trafficking investigations

    Source: Royal Canadian Mounted Police

    Southwest Nova District RCMP seizes illicit drugs, including suspected fentanyl and 3 kgs of cocaine, and charges several people after executing four search warrants between February 26 and 28 as part of ongoing, individual drug trafficking investigations.

    “Our teams are continuing their strategic work to address drug trafficking in communities across Southwest Nova,” says Supt. Jason Popik, District Policing Officer, Southwest Nova District RCMP. “Whether it’s to address trafficking in illicit drugs and substances or the illegal sale of cannabis, we’re committed to enforcement that helps make our communities safer.”

    On February 26, the Southwest Nova Street Crime Enforcement Unit (SCEU), with assistance of Meteghan RCMP Detachment, executed a search warrant at a home on Hwy. 1 in Salmon River. RCMP officers seized pre-filled syringes containing suspected fentanyl and two firearms. Two men were safely arrested inside the residence.

    Jordan Louis Comeau, 26, of Salmon River, has been charged with Possession for the Purpose of Trafficking (fentanyl), and Kim Louis Comeau has been charged with Unsafe Storage of a Firearm, Unauthorized Possession of a Firearm and Possession of a Firearm Knowing its Possession is Unauthorized.

    On February 27, Digby RCMP Detachment, with assistance of RCMP Police Dog Services and Yarmouth Rural RCMP, executed a search warrant at two apartments on Prince William St. in Digby. Officers seized a quantity of crack cocaine and cash. Three men were safely arrested inside the apartments.

    Roy Charles McCullough, 51, and Brian Kelly Height, both of Digby, and Xander Jordan, 25, of Falmouth, have each been charged with Possession of the Purpose of Trafficking (cocaine) and Possession of Property Obtained by Crime. Height has also been charged with Failure to Comply with Order (two counts).

    On February 28, the Southwest Nova SCEU, with assistance of the RCMP/HRP Integrated Criminal Investigation Division, West Hants RCMP, East Hants District RCMP, RCMP Emergency Response Team, RCMP Police Dog Services and Forensic Identification Services, and RCMP Synthetic Drug Section, executed search warrants at a home in South Rawdon and a home in Bramber. Officers safely arrested a woman and man at the residence in South Rawdon.

    Officers seized a quantity of cocaine (approx. 3 kgs), methamphetamines, cannabis edibles, dried cannabis (approx. 1 kg), unstamped tobacco, and cash; imitation handgun; brass knuckles; and a travel trailer.

    Melissa Sharon Millett, 40, of South Rawdon, and Marshall Garwin Burgess, 32, of Lower Burlington, have each been charged with:

    · Possession for the Purpose of Trafficking (cocaine)

    · Possession for the Purpose of Trafficking (methamphetamine)

    · Possession of Property Obtained by Crime

    · Possession of Unstamped Tobacco

    · Unlawful Possession of Tobacco Products for Sale or Distribution

    Burgess has also been charged with Possession of Cannabis for the Purpose of Selling, Prohibited Possession of Cannabis for the Purpose of Distribution, and Possession of Prohibited Weapon.

    All accused have been released pending upcoming court appearances.

    Nova Scotians are encouraged to contact their nearest RCMP detachment or local police to report crime, including the illegal sale of drugs, in their communities. Anonymous tips can be made by calling Nova Scotia Crime Stoppers, toll-free, at 1-800-222-TIPS (8477), submitting a secure web tip at www.crimestoppers.ns.ca, or using the P3 Tips app.

    File #s: 2025-249648, 2024-996125, 2025-151939

    MIL Security OSI –

  • MIL-OSI Security: Truxtun Completes Intense At Sea Training Period

    Source: United States Navy (Fleet Command)

    13 February 2025

    NORFOLK, Va. —

     

    The Arleigh Burke-class guided-missile destroyer USS Truxtun (DDG 103) completed an intense at-sea training period, Feb. 7. Truxtun’s completion of a sustainment exercise (SUSTEX) provided opportunities for training, mentorship, and assessment of their tactical acumen operating within an integrated warfighting environment. 

    “It was a tremendous opportunity for CSG-4 to work with USS Truxtun,” said Rear Adm. Max McCoy, commander, Carrier Strike Group 4. “These training exercises allow my team to challenge a ship in the most complex training environment. Our ships complete training to be worldwide deployable, and prepared to face a wide range of capable threats in an ever-evolving operational environment.”

    Integrated phase training events led by Carrier Strike Group’s 4 and 15 respectively support the Navy’s delivery of combat ready forces that deliver options and flexibility to civilian leadership and combatant commanders to deter adversaries, underpin American security, support economic prosperity, and reassure Allies and partners.

    “This exercise was an outstanding opportunity for our crew to come together and to increase our tactical proficiency and confidence as a warfighting team,” said the ship’s Commanding Officer Cmdr. James Koffi. 

    “I am proud of our team’s performance, though I am more proud of their willingness to check egos at the door, maintain a learning mindset, and push themselves to be better Sailors each day.” 

    Truxtun’s mission is to be ready in all respects to conduct prompt and sustained combat operations at sea, and on order, to pursue excellence, attack every challenge, and vanquish every obstacle in their path.

    USS Truxtun (DDG 103) is a multi-mission guided-missile destroyer with air warfare (AW), anti-submarine warfare (ASW), naval surface fire support (NSFS), and surface warfare (SUW) capability. Its ship’s company includes approximately 300 Sailors, with an additional 40 embarked air wing personnel assigned to the “Vipers” of Helicopter Maritime Strike Squadron (HSM) 48.

    MIL Security OSI –

  • MIL-OSI Security: Repeat Gun Offender Sentenced for Unlawful Possession of a Firearm and Aggravated Assault While Armed

    Source: Office of United States Attorneys

                WASHINGTON – Traquon Demonte McCalip, 21, of Washington D.C., was sentenced today in U.S. District Court to 114 months in federal prison for unlawfully possessing a Canik T9SF Elite 9mm handgun and using it to shoot a victim in the middle of the day at a busy fast-food restaurant parking lot on the 3900 block of Minnesota Avenue NE.

                The sentence was announced by U.S. Attorney Edward R. Martin, Jr., FBI Special Agent in Charge Sean T. Ryan of the Washington Field Office’s Criminal and Cyber Division, and Chief Pamela Smith of the Metropolitan Police Department (MPD).

                McCalip pleaded guilty on August 23, 2024, to unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year and to aggravated assault while armed. In addition to the prison term, U.S. District Court Judge Amit P. Mehta ordered McCalip to serve five years of supervised release.

                According to court documents, on March 20, 2024, McCalip approached an individual standing in a fast-food parking lot on the 3900-block of Minnesota Avenue NE, and claimed that he wanted to buy cigarettes from him. After discussing cigarette prices, McCalip attempted to take the individual’s bag. McCalip then drew his loaded, concealed handgun and shot the individual in the abdomen. As a struggle ensued between McCalip and the victim, McCalip spotted a marked police vehicle that had arrived on scene. McCalip took his firearm’s magazine that had fallen out of his gun, and fled in a vehicle that he had parked in the lot with his firearm’s magazine but left behind his firearm. Police chased McCalip and ultimately arrested him near 1805 Bladensburg Road NE. Officers recovered the firearm magazine and ammunition on the driver’s seat of the car McCalip was driving.

                This case was investigated by the Metropolitan Police Department and the Federal Bureau of Investigation’s Washington Field Office. It was prosecuted by Trial Attorney Ethan Cantor of the Department of Justice.

    24cr161

    MIL Security OSI –

  • MIL-OSI Security: Ninedee Gang Member Sentenced to 35 Years in Prison for Murder of Former Federal Witness

    Source: Office of United States Attorneys

    Brooklyn Street Gang Plotted Retaliatory Murder of Shatavia Walls at the Pink Houses

    Earlier today, in federal court in Brooklyn, Quintin Green, also known as “Wild Child,” was sentenced by United States District Judge LaShann DeArcy Hall to 35 years’ imprisonment for the murder of former federal witness Shatavia Walls in July 2020.  Green, a member of the Ninedee Gang, a violent criminal enterprise operating out of the Louis H. Pink Houses in East New York, pleaded guilty in April 2024 to causing Walls’ death through use of firearms.  Green also pleaded guilty to attempted Hobbs Act robbery for attempting to steal televisions from a Target store in Staten Island in November 2020 and was sentenced to a concurrent term of five years in prison.

    John J. Durham, United States Attorney for the Eastern District of New York, Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the sentence.

    “The calculated murder of Shatavia Walls by members and associates of the Ninedee Gang arose from a twisted desire to murder her in retaliation for her federal testimony and perceived disrespect of the gang,” stated United States Attorney Durham.  “Quintin Green shot an unarmed woman in cold blood to make a name for himself in the gang, but he should be called out for what he truly is, a cowardly killer.  He deservedly will spend decades in a federal prison.  I commend the FBI special agents, the NYPD detectives and the prosecutors in my Office who worked tirelessly to dismantle this gang, achieve justice for Ms. Walls and make the Pink Houses and the surrounding area in East New York a safer place for the law-abiding residents of that community.”

    “Along with other Ninedee members, Quintin Green targeted and callously killed Shatavia Walls and then bragged across social media about his abhorrent crimes in an effort to bolster the gang’s dangerous reputation,” stated FBI Acting Assistant Director in Charge Backschies.  “This premeditated ambush was an unjust retributive attack against a former government witness trying to protect her community from further gang violence. May today’s sentencing reflect the FBI’s continued refusal to tolerate any attempts to intimidate those who speak out against gang violence.”

    “Today, we are bringing a cold-blooded murderer to justice,” stated NYPD Commissioner Tisch.  “Quintin Green and the Ninedee Gang terrorized their neighborhood, put children in danger, and viciously killed an unarmed woman. Let this serve as a clear message that we will go after violent gangs that break the law and cause widespread harm and fear. I thank the NYPD detectives and the prosecutors in this case for their tireless work to hold these perpetrators accountable.”

    As set forth in [the government’s sentencing memorandum and other court filings], Green and other members of the Ninedee Gang targeted Walls for murder because she testified against a Ninedee Gang member in federal court in Brooklyn in 2019, had a confrontation with Ninedee Gang members who were setting fireworks off near children on July 4, 2020 and her affiliation with the rival “7” and “8” Pink House apartment buildings.  For those reasons, she was considered by the gang to be a high-value target. The defendant became known as “Wild Child” due to his reputation for violence and, in order to earn status in the gang, boasted about his willingness to shoot rivals.  He was one of two shooters who gunned Walls down on July 7, 2020.

    Further, as proven at the trial of Green’s co-defendant, Ninedee Gang leader Maliek Miller, Ninedee Gang members were affiliated with the “5” and “6” Pink Houses apartment buildings and engaged in ongoing gang-related violence within and outside of the New York City Housing Authority complex.  Ninedee Gang protected its turf through violence and sought to silence anyone who they perceived to be working with law enforcement. 

    The murder of Walls was coordinated by Ninedee Gang members, including Green.  Prior to her court testimony, fliers had been posted around the Pink Houses stating, “Shatavia Been a Rat And She Still Ratting.” 

    On July 4, 2020, Walls and others were involved in a physical altercation with members of Ninedee for lighting fireworks around young children.  Miller went to the scene of the altercation, called Walls a “snitch,” fought with her and fired a gunshot.  Following the altercation, Miller planned with other Ninedee Gang members, including Green, to kill Walls.

    On July 7, 2020, Walls was spotted by Green and his co-defendant Joe Santana.  Green and Santana began shooting at her.  Green then chased Walls down a path at the Pink Houses, continuing to shoot her. Walls suffered numerous gunshot wounds and died of her injuries 10 days later. 

    Co-defendant Shakur Bey destroyed the clothing that Green and Santana wore during the shooting by throwing the items down an incinerator chute. Co-defendant Kevin Wint, who was not present at the murder, rented a hotel room at a Best Western Hotel near John F. Kennedy International Airport to provide a place where Green and others could hide out overnight.  In the days after the murder, Green and Wint posted to social media claiming credit to the Ninedee Gang for the killing.   

    Miller was convicted in June 2024 of murder in-aid of racketeering and faces a mandatory term of life in prison when he is sentenced.  Santana and Fernandez pleaded guilty to their roles in the murder. Santana was sentenced to 22 years in prison and Fernandez is awaiting sentencing.  Wint pleaded guilty in March 2023 and was sentenced to 110 months’ imprisonment. Bey pleaded guilty in December 2023 and was sentenced to 60 months’ imprisonment.  Ninedee leader Raquel Dunton is charged with acting as an accessory after-the-fact to Walls’ murder and obstruction of justice for assisting fellow gang members in concealing evidence of the crime.  Dunton is also charged with trafficking cocaine and is awaiting trial.

    In addition to the murder, Green pleaded guilty to attempting to commit a November 3, 2020 robbery of a Staten Island Target store. Green attempted to steal two flat- screen televisions and was stopped by a security guard. Green punched the security guard causing her to fall and attempted to flee with one of the two televisions. He was arrested by police after fleeing the scene.

    The government’s case is being handled by the Office’s Organized Crime and Gang Section.  Assistant United States  Attorneys Emily J. Dean, Margi Schierberl and Irisa Chen are in charge of the prosecution with the assistance of Paralegal Specialist Elizabeth Reed and Intelligence Analysts Eungee Hwang and Ashley Hinkson.

    The Defendant:

    QUINTIN GREEN (also known as “Wild Child”)
    Age: 24
    Brooklyn, New York

    E.D.N.Y. Docket No. 20-CR-331 (LDH)

    Defendant Convicted at Trial:

    MALIEK MILLER
    Age: 31
    Brooklyn, New York

    E.D.N.Y. Docket No. 20-CR-331 (LDH)

    Defendants Who Previously Pleaded Guilty:

    JOE SANTANA (also known as “Baby Joe”)
    Age: 20
    Brooklyn, New York

    CHAYANNE FERNANDEZ (also known as “White Boy”)
    Age: 24
    Brooklyn, New York

    KEVIN WINT (also known as “Kev G”)
    Age: 31
    Brooklyn, New York

    SHAKUR BEY (also known as “Speedy”)
    Age: 27
    Brooklyn, New York

    E.D.N.Y. Docket No. 20-CR-331 (LDH)

    Defendant Awaiting Trial:

    RAQUEL DUNTON (also known as “Rah”)
    Age: 38
    Brooklyn, New York

    E.D.N.Y. Docket No. 24-CR-344 (LDH)

    MIL Security OSI –

  • MIL-OSI USA: Preparing for Potential Ice Jam Flooding

    Source: US State of New York

    overnor Kathy Hochul today announced the week of March 9, 2025, as Flood Safety Awareness Week in New York State. The annual campaign, conducted in partnership with the National Weather Service, educates New Yorkers about flood dangers and how to prepare for any emergency involving flooding. The New York State Division of Homeland Security and Emergency Services works with local, state and federal partners year-round to address issues involving flooding, including recovering from past events, training first responders and preparing everyday New Yorkers to understand the risks and know what steps to take when there’s a flood.

    “New York is no stranger to extreme weather, and as we prepare for the potential for flood conditions starting today, it is important for New Yorkers to monitor their local forecast and take proper precaution to keep themselves and their families safe,” Governor Hochul said. “New York State is home to numerous bodies of water, including coastal areas, rivers, lakes and streams — and Flood Safety Awareness Week is a great opportunity for New Yorkers to understand the dangers of flooding and how to best prepare.”

    A widespread rain event today and tomorrow could cause localized flooding and elevated river flows, as well as increased potential for ice jams due to warm temperatures resulting in snowmelt and rainfall. Buffalo area creeks have the greatest risk for ice jams. Warm temperatures, snowmelt, ice on rivers and widespread rainfall could contribute to minor flooding throughout the State through tomorrow. Ice jam flooding is possible, especially on creeks and streams where blockages are reported and isolated minor river flooding is possible. Gusty winds are expected across western portions of the State with wind gusts between 40 and 45 mph through this afternoon. Flood Watches continue this afternoon into tomorrow for Western New York, the northern Finger Lakes, northern Central NY and the North Country’s Tug Hill Plateau with several locations seeing between a half inch to an inch of rain by Thursday morning.

    The risk of flooding across New York State and the rest of the country is increasing due to climate change. The warming atmosphere impacts the weather in several ways, including increased precipitation, tropical storms and hurricanes occurring with more frequency, and higher sea levels due to increasing ocean temperatures and melting of ice sheets. Across the United States, flooding causes billions of dollars in damage and is responsible for almost 100 deaths each year. Governor Hochul is joining DHSES and NWS in urging all New Yorkers to learn about the threats associated with flooding and know the actions they can take now to protect families, businesses and communities from flooding and other emergencies.

    Division of Homeland Security and Emergency Services Commissioner Jackie Bray said, “New Yorkers are no strangers to the devastating effects of flooding, but preparing in advance can help keep everyone safe. Build an emergency supply kit, develop a flood preparedness plan for your family and follow instructions from emergency officials.”

    The National Weather Service said, “In New York, flooding can happen any time of year. Thunderstorms, tropical storms and large winter storms can all produce enough rain to send streams over their banks. Rising rivers in the winter and spring can break up ice and lead to ice jam flooding. Everyone living along a stream or river should pay attention to weather and river forecasts and have a plan should rising water threaten their safety or livelihood.”

    Flooding can cause damage and injury with little warning, including power outages, disruptions to transportation and transit systems, building damage and catastrophic landslides. It is important for all New Yorkers to understand the severity of danger that flooding risks pose and what individuals and families can do to stay safe in a flooding emergency.

    Governor Hochul and Commissioner Bray encouraged individuals to sign-up for free emergency alerts such as weather warnings, road closures and other emergency information at https://alert.ny.gov/.

    Steps New Yorkers can take before and during a flood to stay safe:

    • Know your area’s type of flood risk — visit FEMA’s Flood Map Service Center.
    • Have a flood emergency plan in place for all members of your household including children and pets.
    • Check in with neighbors who may need assistance.
    • If you live in a flood-prone area, document your belongings and valuables. Keep important documents in a waterproof container. Create digital, password-protected copies of important documents, pictures and other items.
    • Obtain flood insurance coverage under the National Flood Insurance Program (NFIP). Homeowner’s policies do not cover flooding.
    • Monitor your local weather forecast and follow instructions from local officials.
    • If you live in an area that has evacuation zones, know your route and follow instructions from local officials.
    • Traveling during a flood can be extremely dangerous. One foot of moving water can sweep a vehicle away. Never walk, swim or drive through flood waters. If you have doubts, remember: “Turn Around, Don’t Drown!”
    • Consider those with access and functional needs to determine if they are prepared for a flood emergency where they live and work.

    For more preparedness information and safety tips from DHSES, visit dhses.ny.gov/safety. The National Weather Service website also includes Flood Safety Tips and Spring Safety Resources.

    About the Division of Homeland Security and Emergency Services

    The Division of Homeland Security and Emergency Services provides leadership, coordination and support to prevent, protect against, prepare for, respond to, recover from and mitigate disasters and other emergencies. For more information, find DHSES on Facebook, on X (formerly Twitter) or visit dhses.ny.gov.

    MIL OSI USA News –

  • MIL-OSI USA: Duckworth Reacts to Trump’s Joint Address to Congress

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth

    March 04, 2025

    [WASHINGTON, D.C.] – Today, U.S. Senator Tammy Duckworth (D-IL) issued the following statement in reaction to President Donald Trump’s Joint Address to Congress, in which he outlined his harmful agenda that would benefit already-wealthy billionaires at the expense of middle-class Americans:

    “Donald Trump promised he’d lower costs for middle-class Americans, but clearly that was a lie he sold to get elected. In reality, we’re continuing to watch Trump and Elon Musk take a chainsaw to programs and services that middle-class families rely on—the same families Trump swore he’d protect—all while doing nothing to address the rising cost of eggs and groceries. Since day one, Trump has already damaged lifelines like Head Start, gutted cancer research, fired more Veterans than any President in our nation’s history and is making our country less safe by surrendering to Putin while abandoning our democratic partners and allies. Make no mistake: Trump and Musk will continue to ram through cuts to health care and critical programs that middle-class Americans depend on so they can fund tax breaks for already-wealthy billionaires. They don’t care about making government work better for families, they only want to make government work better for themselves. If Republicans won’t stick up for the middle class, Democrats will.”

    As part of her ongoing efforts to push back against Trump’s illegal funding freeze that continues to inflict needless chaos, confusion and financial pain on Head Start programs and the middle-class families they serve throughout Illinois, Senator Duckworth invited Lauri Morrison-Frichtl, Executive Director of the Illinois Head Start Association, as her guest to Trump’s Joint Address to Congress.

    “Leaders like Lauri Morrison-Frichtl are on the frontlines of Trump’s needless chaos—which is continuing to cause irreversible damage and jeopardize Illinois Head Start’s ability to serve thousands of children and families,” said Duckworth. “I was proud to invite Lauri Morrison-Frichtl to the Joint Address to remind middle-class Americans and this Administration just how critical Head Start services are—not only for working parents trying to make ends meet, but also for the next generation of students. We cannot let Trump and Republicans tear down this lifeline for families in order to fund tax cuts for billionaires—full stop.”

    With over 37 years of experience with Head Start, Executive Director Morrison-Frichtl is a steadfast leader and advocate for the wellbeing of the thousands of children and families in our state who face the most significant barriers to achieving success in school and in life. Additionally, nearly 70% of Illinois Head Start and Early Head Start parents are in the workforce and rely on Head Start’s programs in order to go to their jobs—allowing them to support their families and contribute to our economy. An official portrait photo of Illinois Head Start Executive Director Lauri Morrison-Frichtl can be found on the Senator’s website.

    -30-

    MIL OSI USA News –