Category: Taxation

MIL-OSI Security: Six Defendants Sentenced for Their Roles in Drug Trafficking Organization
Source: Federal Bureau of Investigation (FBI) State Crime News

ATLANTA – Six members of a drug trafficking organization have been sentenced for their roles in distributing deadly fentanyl and methamphetamine throughout the metro-Atlanta area.
“These defendants distributed substantial amounts of fentanyl and methamphetamine with no regard for the grave public safety risk,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Our Office will continue to closely coordinate with our federal, state, and local law enforcement partners to prosecute drug traffickers and prevent dangerous narcotics from poisoning our communities.”

“These drug traffickers endangered countless lives by distributing large quantities of deadly fentanyl and methamphetamine,” Jae W. Chung, the Acting Special Agent in Charge of the DEA Atlanta Division commented on the case. “DEA will continue to aggressively pursue the criminals that contribute to the drug crisis.”

“This case highlights the critical role Homeland Security Investigations plays in dismantling transnational drug trafficking organizations operating in our communities,” said Steven N. Schrank, Special Agent in Charge of Homeland Security Investigations in Georgia and Alabama. “The defendants in this case were responsible for introducing massive quantities of deadly narcotics into the metro-Atlanta area—methamphetamine that was trafficked across borders, chemically altered, and distributed without regard for the devastating impact on public health and safety. Through the combined efforts of HSI and our federal, state, and local partners, we’ve disrupted a dangerous supply chain and brought key members of this organization to justice.”

According to Acting U.S. Attorney Moultrie, the charges, and other information presented in court: In 2022, federal special agents discovered that a drug trafficking organization (DTO) was distributing drugs obtained from a Mexico-based supplier throughout metro-Atlanta. These drugs included methamphetamine which arrived from Mexico in liquid form and was converted to crystal methamphetamine.

During an early phase of the investigation, defendant Erik Rosales-Lopez was arrested in December 2022 at a residence used to process liquid methamphetamine that had been mixed with paint. Rosales Lopez had distributed methamphetamine on three previous occasions, including to an undercover agent. During a search of his residence, investigators seized 11 kilograms of finished crystal methamphetamine.

In April 2023, agents surveilled defendants Brayan Garcia-Picasso and Bryan Pacheco-Carranza as they left a residence believed to be used as a methamphetamine lab. Local law enforcement then conducted a traffic stop of their vehicle. Police officers seized approximately 16 kilograms of methamphetamine during a search of the vehicle. Agents later searched the residence as well and, while doing so, confirmed that the location was a methamphetamine lab. The agents found approximately six kilograms of methamphetamine and methamphetamine conversion equipment on the premises.

Following the arrests of Garcia-Picasso and Pacheco-Carranza, agents continued to investigate the DTO. In June 2023, defendant Alex Chamorro-Valencia was arrested after a search of a vehicle he was driving was found to contain nearly a kilogram of methamphetamine. Investigators also searched the residence from which he was seen departing and discovered a second methamphetamine lab used by the DTO. Agents recovered 15 gallons of liquid methamphetamine and 135 kilograms of finished crystal methamphetamine in the residence. Defendant Hedgarciney Gameno-Cortez was encountered in the residence and arrested.

The following defendants were convicted and sentenced:
- Juventino Rodriguez was sentenced earlier today by U.S. District Judge Victoria M. Calvert to 54 months in prison followed by four years of supervised release. Rodriguez was convicted of conspiracy to possess with intent to distribute fentanyl after he pled guilty on December 19, 2024.
- Garcia-Picasso was sentenced by U.S. District Judge Michael L. Brown to 12-and-a-half years in prison followed by four years of supervised release. Garcia-Picasso was convicted of conspiracy to possess with intent to distribute methamphetamine after he pled guilty on November 7, 2023.
- Pacheco-Carranza was sentenced by Judge Brown to six years in prison followed by three years of supervised release. Pacheco-Carranza was convicted of conspiracy to possess with intent to distribute methamphetamine after he pled guilty on January 18, 2024.
- Chamorro-Valencia was sentenced by U.S. District Judge Eleanor L. Ross to eight years in prison followed by four years of supervised release. Chamorro-Valencia was convicted of conspiracy to possess with intent to distribute methamphetamine and cocaine after he pled guilty on October 16, 2023.
- Hedgarciney Gameno-Cortez was sentenced by Judge Ross to eight years in prison followed by four years of supervised release. Gameno-Cortez was convicted of conspiracy to possess with intent to distribute methamphetamine and cocaine after he pled guilty on February 28, 2024.
- Erik Josue Rosales-Lopez was sentenced by U.S. District Judge Steven D. Grimberg to seven years in prison followed by three years of supervised release. Rosales-Lopez was convicted of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine after he pled guilty on July 31, 2023.
The case was investigated by the Drug Enforcement Administration and Department of Homeland Security’s Homeland Security Investigations, with valuable assistance from the Clayton County Police Department, Henry County Police Department, Georgia State Patrol, DeKalb County Police Department, Fulton County Sheriff’s Office, and Cobb County Sheriff’s Office.

Assistant U.S. Attorneys Lauren E. Renaud and Sandra E. Strippoli, and former Assistant U.S. Attorney Zachary Howard, prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. The specific mission of the David G. Wilhelm Atlanta OCDETF Strike Force (Atlanta Strike Force) is to eliminate transnational organized crime syndicates and major drug trafficking and money laundering organizations in the Atlanta metropolitan area and the Northern District of Georgia. To accomplish this mission, the Atlanta Strike Force will target these organizations’ leaders, focusing on targets designated as Consolidated Priority Organization Targets, Regional Priority Organization Targets, and their associates. The Atlanta Strike Force is comprised of agents and officers from ATF, DEA, FBI, HSI, USMS, USPIS, and IRS, as well as numerous state and local agencies; and the prosecution is being led by the Office of the United States Attorney for the Northern District of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

MIL Security OSI –
May 14, 2025
MIL-OSI Security: Montgomery County, Ohio, Man Pleads Guilty to Defrauding Elderly Victims of Hundreds of Thousands of Dollars

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

CINCINNATI – Ronald Scott Daley, 53, of Miamisburg, pleaded guilty in U.S. District Court to wire fraud and tax evasion related to a scheme to defraud clients, including elderly victims.

According to his plea agreement, which includes a recommended sentence of up to 60 months in prison, Daley was employed by a life insurance brokerage firm and advised several elderly clients with respect to life insurance and annuity products.

From at least 2012 until 2020, Daley fraudulently convinced client victims to withdraw certain assets from the insurance brokerage firm and to deposit the funds into their own personal accounts. Daley then influenced the victims to make payments to a bank account for an entity that Daley controlled.

For example, Daley defrauded three victims of more than $707,000 in total.

Furthermore, Daley failed to file and pay taxes on the fraudulent income.

As part of his conviction, he will repay the approximately $707,000 in restitution.

Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Karen Wingerd, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigations; announced the guilty plea entered on May 5 before U.S. District Judge Matthew W. McFarland. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.

# # #

MIL Security OSI –

May 14, 2025
MIL-OSI USA: Governor Stein Announces Genentech Will Build New Manufacturing Plant in Wake County Creating 400 Jobs

Source: US State of North Carolina

Headline: Governor Stein Announces Genentech Will Build New Manufacturing Plant in Wake County Creating 400 Jobs

Governor Stein Announces Genentech Will Build New Manufacturing Plant in Wake County Creating 400 Jobs
lsaito
Tue, 05/13/2025 – 09:37

Raleigh, NC

Governor Josh Stein announced today that Genentech, one of the world’s premiere biotechnology companies, will invest $700 million to build a new manufacturing plant in Holly Springs, creating 400 jobs.

“World-class companies like Genentech recognize that North Carolina is a leading state for biotechnology,” said Governor Josh Stein. “These companies know that our life science workforce is ready to help them deliver their cutting-edge medicines to the world. We are proud to welcome Genetech to North Carolina.”

Genentech, with headquarters in South San Francisco, California, is a member of Switzerland’s Roche Group (SIX: RO, ROG; OTCQX: RHHBY) and is considered the original biotechnology pioneer. For more than 40 years the company has pursued groundbreaking science to discover and develop medicines for people with serious or life-threatening diseases. Genentech’s project in Holly Springs will establish a new 700,000 sq. ft. high-volume fill-finish operation to support its existing product portfolio as well as its future pipeline, allowing the company to meet growing demand for its medicines.

“Genentech would like to thank Governor Stein and Commerce Secretary Lilley for their support and for welcoming us to North Carolina. We are thrilled to establish this relationship with the city of Holly Springs, where we will create new manufacturing and construction jobs while making a broader positive impact on the local economy and community for many years to come,” said Genentech CEO Ashley Magargee. “Our new facility will serve as an important new setting within our manufacturing network to help deliver on the promise of our company’s life-changing science and industry-leading pipeline.”

“Genentech siting its first East Coast production facility in North Carolina is a gamechanger for our already strong biotechnology sector,” said North Carolina Commerce Secretary Lee Lilley. “Thanks to amazing state leadership from the North Carolina Biotechnology Center and continued investments in workforce and infrastructure, these kinds of successes breed great jobs and great therapies that make the world a healthier place.”

Although wages will vary depending on the position, the average salary for the new positions will be $119,833, compared with an average wage in Wake County of $76,643. The new positions will bring an annual payroll impact to the community of more than $50 million per year.

The company’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by more than $3 billion. Using a formula that takes into account the new tax revenues generated by the new jobs and the capital investment, the JDIG agreement authorizes the potential reimbursement to the company of up to $9,846,750, spread over 12 years and based on the creation of 420 jobs. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.

The project’s projected return on investment of public dollars is 230 per cent, meaning for every dollar of potential cost, the state receives $3.30 in state revenue. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.

Because Genentech chose to expand in Wake County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $3,282,250 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Wake, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.

“Our momentum in biotech is off the charts as these new jobs and new investment come to Holly Springs,” said N.C. Senator Lisa Grafstein. “Genentech is a renowned brand in the industry, and we welcome the company to our growing family of life science partners.”

“Economic development success takes teamwork, and I’m proud of the many local, regional, and state organizations that worked hard to bring Genentech to our community,” said N.C. Representative Ya Liu. “We look forward to seeing this innovative company put down roots and grow in Holly Springs, Wake County, and North Carolina.”

Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of N.C. on this project were the North Carolina General Assembly, the North Carolina Community College System, N.C. Commerce’s Division of Workforce Solutions, the North Carolina Biotechnology Center, N.C. State University, Duke Energy, Enbridge Gas North Carolina, Capital Area Workforce Development, Wake Tech, the Town of Holly Springs, Wake County, and Wake County Economic Development, a program of the Greater Raleigh Chamber.

May 12, 2025

MIL OSI USA News –

May 14, 2025
MIL-OSI: VEEA® Announces Acquisition of AI-Enabled Smart Spaces Provider Crowdkeep

Source: GlobeNewswire (MIL-OSI)

NEW YORK, May 13, 2025 (GLOBE NEWSWIRE) — Veea Inc. (NASDAQ: VEEA), a pioneer in edge computing and AI-driven solutions, announced today that it has acquired substantially all of the technology of Crowdkeep, Inc., a Delaware corporation (“Crowdkeep”) for shares of Veea’s common stock and other consideration.

Crowdkeep develops and sells a comprehensive enterprise Internet of Things (IoT) platform that disrupts the traditional ways that organizations operate with a technology platform that collects real-time data to help improve the speed and accuracy of critical workplace operations, including schools, hospitals, hotels, manufacturing centers, office towers, construction sites, and virtually any building or campus that need to make fast and informed data-driven decisions about people, assets, and environments.

Crowdkeep’s software platform will be integrated with Veea’s Edge Platform and utilize VeeaHub products, cameras and sensors with edge AI facilitating the tracking of valuable on-site assets, monitoring of equipment condition, eliminate manual processes associated with managing the workplace environment, while accounting for workers’ time, location, attendance and safety. With converged computing, communications, including 5G, AI inferencing and federated learning, distributed NVMe storage, real-time anomaly detection with ML toolchain, and scalable analytics with a serverless data warehouse platform, the combined solution provides for real-time management of the entire network with data privacy and enterprise-grade cybersecurity for both data-at-rest and data-in motion, as well as massive scalability for construction sites, hospitals, schools, smart buildings, hospitality, industrial warehouses and shipping yards, and many more market segments.

This strategic acquisition will strengthen Veea’s market position as a leader in hybrid edge-cloud computing and communications solutions by enhancing its ability to deliver a more comprehensive end-to-end solution with AI-driven cybersecurity and cloud-based data and analytics platform allowing users to store, manage, report and analyze large volumes of data with time-to-insights and event notification for Smart Spaces and a wide range of digital transformations at the edge, ultimately benefitting Veea’s current customers and expanding Veea’s global market presence.

Following the acquisition, Helder Antunes, the current CEO of Crowdkeep and a member of Veea’s board, will be joining Veea’s management team as an Executive Vice President and Chief Revenue Officer. Prior to Crowdkeep, Mr. Antunes was an executive of Cisco Systems for over twenty years, founder and first Chairman of the OpenFog Consortium. Mr. Antunes will drive the sales and marketing activities at Veea while overseeing a portfolio of strategic accounts with a focus on ensuring accurate and timely revenue recognition, aligning financial reporting with contractual obligations in close collaboration with the finance team.

“This is an important transaction for both Veea and Crowdkeep, marking the beginning of an exciting new chapter. This transformative acquisition underscores Veea’s mission to provide innovative solutions that unlock the full potential of edge computing and AI, bridging the gap to a more connected, secure, and intelligent world,” said Allen Salmasi, Chief Executive Officer. “Together, we are combining our strengths to accelerate product innovation, expand our capabilities and addressable markets, while delivering unique capabilities that we believe no other platform currently offers.”

“The need for massive data collection at the edge to safely, efficiently, and proactively manage today’s workplace is rapidly increasing,” said Helder Antunes, Chief Executive Officer of Crowdkeep. “The combined capabilities of Crowdkeep and Veea will provide users with real-time insights and actionable data at the edge that will enhance situational awareness, allow for quick decision-making, and enhance safety with AI-powered predictive intelligence.”

About Veea

Veea® has unified multi-tenant computing, multiaccess multiprotocol communications, edge storage and cybersecurity solutions through fully integrated cloud- and edge-managed products. Veea’s pioneering Multiaccess Edge Computing (MEC) product, developed from the ground up in several compact form factors, brings together the functionality typically provided for through any combination of servers, Network Attached Storage (NAS) devices, routers, firewalls, Wi-Fi Access Points (APs), IoT gateways, 4G or 5G wireless access, and cloud management by means of multiple hardware, software and systems integrated and maintained by IT/OT professionals. Veea Edge Platform offers application responsiveness, bolsters cybersecurity, data privacy and context awareness, and lowers data transport costs as well as total cost of ownership, while providing for easy installation, operations, monitoring and maintenance of edge networks.

With Software Defined Networking (SDN), Network Function Virtualization (NFV), and network slicing over LAN, VeeaWare full-stack platform software uniquely provides for cellular-like subscription-based network-managed Wi-Fi and IoT devices over a connectivity and computing mesh network. It also enables application environment for a range of third-party ARM-based, x86-based and CUDA-based products that may incorporate GPUs, TPUs, DPUs, and/or NPUs that are all edge-managed through VeeaCloud.

Veea was formed in 2014 and is headquartered in New York City with a rich history of major innovations in the development of advanced networking, wireless and computing technologies, along with over 122 granted and 25 pending patents in key aspects of hyperconverged edge computing technologies. For more information, visit veea.com and follow us on LinkedIn.

About Crowdkeep

Crowdkeep is an Internet of Things (IoT) platform that empowers users with real-time people and asset positioning to make fast, informed decisions about people, assets, and conditions throughout the workplace. Created out of a desire to introduce a comprehensive IoT platform that enables a safer and more efficient workplace, Crowdkeep looks to the future with agility and confidence to pioneer technologies that have staying power in the constantly evolving digital world.

Crowdkeep is proud to lead a wave of digital transformation technologies that are changing the way businesses and organizations operate and make decisions. Crowdkeep takes aim at the ineffective and obsolete ways of doing things and offers customers cost effective solutions that are less complex, easy to deploy, and lead to insights and intelligent analysis that help the workplace become more productive and run safer. For more information visit crowdkeep.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company’s strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: the Company’s business strategies, and the risk and uncertainties described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Cautionary Note on Forward-Looking Statements” and the additional risk described in Veea’s Form 10-K for the year ended December 31, 2024 and any subsequent filings which Veea makes with the U.S. Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the press release relate only to events or information as of the date on which the statements are made in the press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

The Equity Group

Devin Sullivan
Managing Director
dsullivan@equityny.com

Conor Rodriguez
Associate
crodriguez@equityny.com

The MIL Network –

May 14, 2025
MIL-OSI Economics: IPAA Supports “Tax Trifecta” Inclusion in Reconciliation Bill

Source: Independent Petroleum Association of America

Headline: IPAA Supports “Tax Trifecta” Inclusion in Reconciliation Bill

May 12, 2025 IPAA Supports “Tax Trifecta” Inclusion in Reconciliation Bill

Dear Speaker Johnson, Majority Leader Thune, Leader Jeffries, and Leader Schumer:

We, the undersigned organizations, representing thousands of businesses who collectively employ millions of Americans in all sectors of the U.S. economy, urge Congress to immediately enact three specific pro-growth tax relief proposals in the upcoming reconciliation bill authorized by H.Con.Res.14, the fiscal year 2025 budget resolution. …

We strongly urge Congress to bolster our economy and support American workers and families. Congress should restore immediate R&D expensing, a pro-growth interest deductibility standard, and full expensing for capital investments.

Continue Reading

MIL OSI Economics –

May 14, 2025
MIL-OSI: Ozop Energy Solutions, Inc. Issues a Shareholder Update

Source: GlobeNewswire (MIL-OSI)

Warwick, NY, May 13, 2025 (GLOBE NEWSWIRE) — Ozop Energy Solutions, Inc. (OTC: OZSC) (“Ozop” or the “Company”), a Company focused in the renewable energy sector, today provided an update to its shareholders on recent strategic milestones and upcoming initiatives. With a diverse portfolio of innovative energy solutions, Ozop remains focused on capturing a share of the rapidly growing renewable energy market.

Ozop’s wholly owned subsidiary, Automated Room Controls, Inc. (DBA ARC), has made substantial progress, achieving ETL certification on its first attempt. Since its launch, ARC has submitted $580,000 in bids and secured its first $40,000 in orders, including a recently fulfilled $10,000 shipment. The division continues to refine its technology through ongoing research, development, and internal testing. ARC is scheduled to showcase its latest innovations at Lightstock, a leading Lighting and Controls Expo, in Canandaigua, NY, on June 25th, 2025.

Empire Auto Protect, a trusted name in the automotive sector with a 17-year history of providing premium vehicle service protection plans, is expanding its portfolio to include Ozop Plus’s Electric Vehicle (EV) coverage. In collaboration with Ozop Plus, Empire has integrated the Fully Charged VSC, aligning backend quoting systems to offer a comprehensive suite of EV protection options. This partnership will enhance Empire’s ability to meet the growing demand for EV coverage.

Ozop Plus has successfully completed state approvals with F&I Sentinel, enabling its EV Warranty to be included in auto manufacturers’ financing nationwide. This milestone clears the path for the upcoming launch of Triple-EV.com, a cost-effective, monthly roadside assistance program designed specifically for the EV market. In partnership with Nation Safe Drivers, Triple-EV will offer exclusive services, including roadside charging, flatbed towing, and member-only benefits.

Strategic Growth and New Opportunities:

Ozop Energy Solutions is currently having discussions with a potential acquisition target that is expected to generate approximately $3 million in annual revenue if completed. This acquisition is part of the Company’s ongoing strategy to expand its product range and increase shareholder value.

CEO Statement

Brian Conway, CEO of Ozop Energy Solutions, Inc., commented, “With the changing economic landscape, we’ve learned to pivot effectively when one area faces challenges, like solar and energy storage. As we move beyond years of intensive R&D, we are focused on scaling our sales and marketing efforts to bring innovative solutions to market.”

About Ozop Energy Solutions.

Ozop Energy Solutions (Ozop Energy Solutions (http://ozopenergy.com/) is the flagship company that oversees a wide variety of products in various stages of development in the renewable energy sector. Our strategy focuses on capturing a significant share of the rapidly growing renewable energy market as a provider of assets and infrastructure needed to store energy.

About Empire Auto Protect

Empire Auto Protect is at the forefront of transforming the auto warranty landscape by integrating cutting-edge technology into every aspect of our services. Much like how Apple revolutionized consumer electronics and Tesla redefined automotive innovation, we are setting new standards in the warranty sector.

Our advanced digital platforms streamline the warranty process, making it more efficient and user-friendly for customers. By harnessing data analytics and seamless online tools, we empower consumers with tailored warranty solutions that meet their unique needs. This commitment to innovation not only enhances customer experience but also positions Empire Auto Protect as the leading technology provider in the automotive warranty industry, driving it into a new digital age.

https://empireautoprotect.com/

About Automated Room Controls, Inc.

Also known as ARC, Inc. its mission is to deliver cutting-edge technology that simplifies complex control needs, ensuring seamless integration and exceptional performance. We aim to lead the industry by continuously innovating and providing solutions that meet the evolving demands of our customers. Our vision is to make control systems smarter, more efficient, and more accessible to everyone.

www.ARControl.com

About Ozop Energy Systems, Inc.

Ozop Energy Systems is a manufacturer and distributor of Renewable Energy products in the Energy Storage, Solar, Microgrids, and EV charging Station space. We offer a broad portfolio of Renewable Energy products at competitive prices with a commitment to customer satisfaction from selection, to ordering, shipping, and delivery.

About Ozop Engineering and Design

Ozop Engineering and Design engineers’ energy efficient, easy to install and use, digital lighting controls solutions for commercial buildings, campuses, and sports complexes throughout North America. Products include relays panels, controllers, occupancy/vacancy sensors, daylight sensors and wall switch stations. Ozop has a dedicated design team that produces system drawings and a technical support group for product questions and onsite system commissioning. Our mission is to be recognized for our deep understanding of power management systems and ability to provide the right solution for each facility.

www.ozopengineering.com

About Ozop Capital Partners

Ozop Capital Partners, Inc. is a wholly owned subsidiary of the Company, and wholly owns EV Insurance Company, Inc. (“EVIC”). EVIC, DBA Ozop Plus is licensed as a captive insurer that reinsures. www.OzopPlus.com

https://twitter.com/OzopEnergy

https://www.facebook.com/OzopEnergy/

Safe Harbor Statement

“This press release contains or may contain, among other things, certain forward-looking statements. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the company’s plans, objectives, projections, expectations and intentions and other statements identified by words such as “projects,” “may,” “will,” “could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “potential” or similar expressions. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties, including those detailed in the company’s filings with the Securities and Exchange Commission. Actual results may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the company’s control). The company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.”

Investor Relations Contact – Ozop
The Waypoint Refinery, LLC
845-397-2956
Visit our Discord:
https://discord.gg/waypoint

The MIL Network –

May 14, 2025

MIL-OSI: VERB Beats All Analysts Q1 2025 Financial Performance Estimates

Source: GlobeNewswire (MIL-OSI)

Management Delivers Impressive 80% Revenue Growth Quarter-Over-Quarter

Beats All Revenue and EPS Estimates By A Wide Margin

Q1 2025 Revenue Exceeds Entire 2024 Annual Revenue

Closed $8.5 Million Acquisition Of AI Social Commerce Technology Platform Lyvecom

$5 Million Cash Added To Balance Sheet In Non-Dilutive, Non-Convertible, Preferred Stock Deal

Zero Debt – Strong Cash Position – Expected To Fund Operations Into 2028 And Beyond

Increased Growth Projected For Q2 2025

LAS VEGAS, May 13, 2025 (GLOBE NEWSWIRE) — Verb Technology Company, Inc. (Nasdaq: VERB) (“VERB” or the “Company”), Transforming the Landscape of Social Commerce, Social Telehealth and Social Crowdfunding with MARKET.live; VANITYPrescribed; GoodGirlRx; and the GO FUND YOURSELF TV Show, today filed its Form 10-Q reporting financial and operating results for the quarter ending March 31, 2025.

Q1 Highlights

For the Quarter Ended March 31, 2025

Total Q1 revenue – $1.305 million, an increase of $582 thousand, or 80% over Q4 2024; and an increase of $1.298 million, or 18,543%, over the prior year comparable quarter. Represents the greatest amount of revenue generated since the strategic sale of the Company’s direct sales SaaS business unit in June 2023
Q1 2025 Revenue Exceeds Entire 2024 Annual Revenue
Net loss reduced by $1.0 million, represents an improvement of 29% over the prior year comparable quarter
Operating loss reduced by $558 thousand, represents an improvement of 17% over the prior year comparable quarter
General and Administrative expenses slight increase of $0.4 million, represents an increase of 12% over prior year; indicates that the Company’s current enhanced financial performance is attributable to increases in revenue – not excessive cost cutting measures
ZERO DEBT – All Remaining Debt retired in Q1
Closed Acquisition of AI Social Commerce Technology Platform Lyvecom in deal valued at $8.5 Million
Opportunistically Added $5 Million in Cash to the Company’s balance sheet through non-dilutive, non-convertible, non-voting, preferred stock deal – replenished all the cash used in Lyvecom acquisition and more
Strong Cash Position – expected to fund operations into 2028 and beyond

Results of Operations

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

The following is a comparison of the results of our operations for the three months ended March 31, 2025 and 2024 (in thousands):

	Three Months Ended March 31,
	2025			2024			Change

Revenue	$	1,305		$	7		$	1,298

Costs and expenses
Cost of revenue, exclusive of depreciation and amortization shown separately below		347			5			342
Depreciation and amortization		286			256			30
General and administrative		3,331			2,963			368
Total costs and expenses		3,964			3,224			740

Operating loss from continuing operations		(2,659	)		(3,217	)		558

Other income (expense)
Interest income		121			–			121
Unrealized gain on short-term investments		83			–			83
Interest expense		(1	)		(225	)		224
Other income (expense), net		18			(3	)		21
Total other income (expense), net		221			(228	)		449

Net loss	$	(2,438	)	$	(3,445	)	$	1,007

Revenue

Revenue was $1,305 for the three months ended March 31, 2025, as compared to $7 for the three months ended March 31, 2024. The revenue increase of $1,298, representing an increase of 18,543%, is primarily attributable to revenue received from our MARKET.live business unit services packages and from our Go Fund Yourself business unit which began its operations in July 2024.

The table below sets forth our quarterly revenues beginning with the quarter ended September 30, 2023 (the first quarter following the sale of our SaaS business unit) through the quarter ended March 31, 2025, which reflects the trend of revenue over the past seven fiscal quarters:

	Q3 2023		Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025
MARKET.live	$	29	29	7	37	103	490	561
GO FUND YOURSELF	$	–	–	–	–	25	233	744
CONSOLIDATED	$	29	29	7	37	128	723	1,305

Operating Expenses

Depreciation and amortization expenses were $286 for the three months ended March 31, 2025, as compared to $256 for the three months ended March 31, 2024.

General and administrative expenses including stock compensation expense were $3,331 for the three months ended March 31, 2025, as compared to $2,963 for the three months ended March 31, 2024.

Other Income (Expense), net

Other income, net, for the three months ended March 31, 2025 was $221, which was primarily attributable to interest income attributable to our short-term highly liquid investments.

Three Months Ended March 31, 2025 Compared to Three Months Ended December 31, 2024

The following is a comparison of the results of our operations for the three months ended March 31, 2025 and December 31, 2024 (in thousands):

	March 31, 2025			December 31, 2024			Change

Revenue	$	1,305		$	723		$	582

Costs and expenses
Cost of revenue, exclusive of depreciation and amortization shown separately below		347			134			213
Depreciation and amortization		286			279			7
General and administrative		3,331			4,020			(689	)
Total costs and expenses		3,964			4,433			(469	)

Operating loss from continuing operations		(2,659	)		(3,710	)		1,051

Other income (expense)
Interest income		121			331			(210	)
Unrealized gain (loss) on short-term investments		83			(153	)		236
Interest expense		(1	)		(1	)		–
Other income (expense), net		18			164			(146	)
Total other income (expense), net		221			341			(120	)

Net loss	$	(2,438	)	$	(3,369	)	$	931

Revenue

Revenue was $1,305 for the quarter ended March 31, 2025, as compared to $723 for the quarter ended December 31, 2024. The revenue increase of $582, representing an increase of 80%, is primarily attributable to growth from our MARKET.live business unit services packages and from tremendous growth in our Go Fund Yourself business unit.

Operating Expenses

Depreciation and amortization expenses were $286 for the three months ended March 31, 2025, as compared to $279 for the three months ended December 31, 2024.

General and administrative expenses including stock compensation expense were $3,331 for the three months ended March 31, 2025, as compared to $4,020 for the three months ended December 31, 2024.

Use of Non-GAAP Measures – Modified EBITDA

In addition to our results under generally accepted accounting principles (“GAAP”), we present Modified EBITDA as a supplemental measure of our performance. However, Modified EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of liquidity. We define Modified EBITDA as net income (loss), plus depreciation and amortization, share-based compensation, unrealized (gain) loss on short-term investments, interest expense, financing costs, and other (income) expense, and other non-recurring charges.

Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Modified EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Modified EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.


	Three Months Ended March 31,
(in thousands)		2025			2024

Net loss	$	(2,438	)	$	(3,445	)

Adjustments
Depreciation and amortization		286			256
Share-based compensation		958			378
Unrealized gain on short-term investments		(83	)		–
Interest expense		1			225
Other (income) expense, net		(18	)		3
Other costs (a)		256			84

Total EBITDA adjustments		1,400			946
Modified EBITDA	$	(1,038	)	$	(2,499	)

(a) Represents a litigation accrual in 2024. Represents severance costs in addition to acquisition costs incurred for Lyvecom acquisition in 2025.

We present Modified EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Modified EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; and in making compensation decisions and in communications with our board of directors concerning our financial performance. Modified EBITDA has limitations as an analytical tool, which includes, among others, the following:

Modified EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;

Modified EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

Modified EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and

Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Modified EBITDA does not reflect any cash requirements for such replacements.

Liquidity and Capital Resources

Overview

As of March 31, 2025 and 2024, we had the following balances of cash, restricted cash, and highly liquid investments.

	March 31, 2025		December 31, 2024

Cash	$	6,275	$	7,617
Restricted Cash		880		878
Investments: Government-Backed Securities		3,884		3,731
Investments: Corporate Bonds		1,197		1,182
Total	$	12,236	$	13,408

Conference Call Information

VERB CEO, Rory J. Cutaia will hold a conference call today, May 13, 2025, at 1:00 p.m. Eastern time to discuss the first quarter 2025 results and strategic plans for the remainder of 2025 and beyond. A telephonic replay of the conference call is available from 4:00 p.m. Eastern time today through May 27, 2025.

VERB Q1 2025 Earnings Call
Date: Tuesday, May 13, 2025
Time: 1:00 p.m. Eastern time (10:00 a.m. Pacific time)

To access by phone: Please call the conference telephone number 10-15 minutes prior to the start time. An operator will register your name and organization.

Meeting Link: CLICK HERE
Toll Free: 1-877-407-4018
Toll/International: 1-201-689-8471
Telephonic Replay: Available after 5:00 p.m. Eastern time on the same day through May 27, 2025 at 11:59 PM ET

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13753877

About VERB
Verb Technology Company, Inc. (Nasdaq: VERB), is Transforming the Landscape of Social Commerce, Social Telehealth and Social Crowdfunding with MARKET.live; VANITYPrescribed; GoodGirlRx; and the GO FUND YOURSELF TV Show. The Company operates several business units, each of which leverages its social commerce technology and video marketing expertise. MARKET.live, together with recently acquired AI social commerce technology innovator Lyvecom, is a multi-vendor, livestream social shopping platform that allows brands and merchants to deliver a true omnichannel livestream shopping experience across their own websites, apps, and social platforms. Advanced AI capabilities power real-time user-generated-content creation, automated video content repurposing, and AI-powered virtual live shopping hosts that are virtually indistinguishable from human hosts, capable of real-time audience engagement. Brands utilize our proprietary AI model trained on tens of thousands of video commerce interactions to automate content creation and our intelligent tools designed to optimize merchandising strategies and increase conversion rates. GO FUND YOURSELF is a revolutionary interactive social crowd funding platform and TV show for public and private companies seeking broad-based exposure across social media channels for their crowd-funded Regulation CF and Regulation A offerings. The platform combines a ground-breaking interactive TV show with MARKET.live’s back-end capabilities allowing viewers to tap, scan or click on their screen to facilitate an investment, in real time, as they watch companies presenting before the show’s panel of “Titans”. Presenting companies that sell consumer products are able to offer their products directly to viewers during the show in real time through shoppable onscreen icons. VANITYPrescribed.com and GoodGirlRx.com are telehealth portals, intended to redefine telehealth by offering a seamless, digital-first experience that empowers individuals to take control of their healthcare needs. They were designed and developed to disrupt the traditional healthcare model by providing tailored healthcare solutions at affordable, fixed prices – without hidden fees, membership costs, or inflated pharmaceutical markups. GoodGirlRx.com, a partnership with Savannah Chrisley, a well-known lifestyle personality and advocate for health and wellness, offers customers access to convenient, no-hassle telehealth services and pharmaceuticals, including the new weight-loss drugs, with fixed pricing regardless of dosage, breaking away from the industry’s traditional model of excessive pricing and pharmaceutical gatekeeping.

The Company is headquartered in Las Vegas, NV and operates full-service production and creator studios in Los Alamitos, California.

For more information, please visit: www.verb.tech

Follow VERB and MARKET.live here:
VERB on Facebook: https://www.facebook.com/VerbTechCo
VERB on Twitter: https://twitter.com/VerbTech_Co
VERB on LinkedIn: https://www.linkedin.com/company/verb-tech
VERB on YouTube: https://www.youtube.com/channel/UC0eCb_fwQlwEG3ywHDJ4_KQ

FORWARD-LOOKING STATEMENTS
This communication contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance, or achievements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those identified in our filings with the Securities and Exchange Commission (the “SEC”), including our annual, quarterly and current reports filed with the SEC and the risk factors included in our annual report on Form 10-K filed with the SEC today. Any forward-looking statement made by us herein is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise.

Investor Relations Contact: investors@verb.tech

Media Contact: info@verb.tech

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2dafa316-c785-42b3-9d3c-7e43a0b4ce58

The MIL Network –

May 14, 2025

MIL-OSI: Bilibili Inc. Announces Repurchase Right Notification for 1.25% Convertible Senior Notes due 2027

Source: GlobeNewswire (MIL-OSI)

SHANGHAI, May 13, 2025 (GLOBE NEWSWIRE) — Bilibili Inc. (“Bilibili” or the “Company”) (Nasdaq: BILI and HKEX: 9626), an iconic brand and a leading video community for young generations in China, today announced that it is notifying holders of its 1.25% Convertible Senior Notes due 2027 (CUSIP No. 090040AD8) (the “Notes”) that, pursuant to the Indenture dated as of June 2, 2020 (the “Indenture”) relating to the Notes by and between the Company and Deutsche Bank Trust Company Americas, as trustee, each holder has the right, at the option of such holder, to require the Company to repurchase all of such holder’s Notes or any portion thereof that is an integral multiple of US$1,000 principal amount for cash on June 15, 2025 (the “2025 Repurchase Right”). Holders of the Notes may exercise the 2025 Repurchase Right from 12:01 a.m., New York City time, on Wednesday, May 14, 2025 (the “Repurchase Open Time”) until 5:00 p.m., New York City time, on Thursday, June 12, 2025 (the “Repurchase Expiration Time”).

Documents specifying the terms, conditions, and procedures for exercising the 2025 Repurchase Right, including the Company’s 2025 Repurchase Right Notice to holders dated May 13, 2025 (the “Repurchase Right Notice”) will be available through the Depository Trust Company (the “DTC”) and the paying agent, which is Deutsche Bank Trust Company Americas (the “Paying Agent”). None of the Company, its board of directors, or its employees has made or is making any representation or recommendation to any holder as to whether to exercise or refrain from exercising the 2025 Repurchase Right. Each holder of the Notes must make its own decision whether to exercise the 2025 Repurchase Right with respect to such holder’s Notes and, if so, the principal amount of Notes for which the 2025 Repurchase Right should be exercised.

The 2025 Repurchase Right entitles each holder of the Notes to require the Company to repurchase all of such holder’s Notes, or any portion thereof that is an integral multiple of US$1,000 principal amount. The repurchase price (the “Repurchase Price”) for such Notes will be an amount in cash equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, June 15, 2025, which is the date specified for repurchase in the Indenture (the “2025 Repurchase Date”), subject to the terms and conditions of the Indenture and the Notes. The 2025 Repurchase Date is an interest payment date under the terms of the Indenture and the Notes. As June 15, 2025 is not a Business Day (as defined in the Indenture), pursuant to the terms of the Indenture, any action to be taken on the 2025 Repurchase Date may be taken on Monday, June 16, 2025, being the next succeeding Business Day with the same force and effect as if taken on the 2025 Repurchase Date with no interest accrued in respect of such delay. Accordingly, on Monday, June 16, 2025, the Company will pay accrued and unpaid interest on all of the Notes through June 14, 2025 to all holders who were holders of record as of close of business on June 1, 2025, regardless of whether the 2025 Repurchase Right is exercised with respect to such Notes. As a result, on the 2025 Repurchase Date, there will be no accrued and unpaid interest on the Notes. As of May 13, 2025, there was US$92,000 in aggregate principal amount of the Notes outstanding. If all outstanding Notes are surrendered for repurchase through exercise of the 2025 Repurchase Right, the aggregate cash purchase price will be US$92,000.

In order to exercise the 2025 Repurchase Right, a holder must deliver the Notes through the transmittal procedures of the DTC between the Repurchase Open Time and the Repurchase Expiration Time, in the following manner:

Holders of the Notes that are held through a broker, dealer, commercial bank, trust company, or other nominee through DTC accounts must contact such nominee and instruct such nominee to exercise the 2025 Repurchase Right by surrendering the Notes on such holders’ behalf through DTC’s Automated Tender Offer Program (the “ATOP”) before the Repurchase Expiration Time.

Holders of the Notes who are DTC participants and hold the Notes directly through DTC accounts must surrender the Notes electronically through ATOP before the Repurchase Expiration Time, subject to the terms and procedures of ATOP.

While the Company does not expect any Notes being or to be issued to a holder other than DTC or its nominee in physical certificate, in the event that physical certificates evidencing the Notes are issued to such a holder, any such holder must complete and sign a 2025 Repurchase Notice in the form attached hereto as Annex A in accordance with the instructions set forth therein, have the signature thereon guaranteed and timely deliver such manually signed 2025 Repurchase Notice, together with the certificated evidencing the Notes to be repurchased and all necessary endorsements to the Paying Agent before the Repurchase Expiration Time.

HOLDERS THAT HOLD THE NOTES THROUGH DTC ACCOUNTS MAY ONLY EXERCISE THE REPURCHASE RIGHT BY COMPLYING WITH THE TRANSMITTAL PROCEDURES OF DTC AND SHOULD NOT SUBMIT A PHYSICAL REPURCHASE NOTICE.

A holder of the Notes may withdraw such holder’s exercise of the 2025 Repurchase Right with respect to any Notes pursuant to the terms of the 2025 Repurchase Right at any time prior to the Repurchase Expiration Time, which is the second Business Day immediately preceding the 2025 Repurchase Date. If a holder of the Notes has already delivered a Fundamental Change Repurchase Notice (as defined in the Indenture) or a repurchase notice with respect to a Note, such holder may not surrender that Note for conversion until the holder has withdrawn the applicable repurchase notice in accordance with the Indenture. The conversion of the Notes is subject to the provisions regarding conversion contained in the Indenture and the Notes.

This press release is for information only and is not an offer to purchase, a solicitation of an offer to purchase, or a solicitation of an offer to sell the Notes or any other securities of the Company. The offer to purchase the Notes will be only pursuant to, and the Notes may be surrendered only in accordance with, the Company’s Repurchase Right Notice dated May 13, 2025 and related documents.

Holders of the Notes should refer to the Indenture for a complete description of repurchase procedures and direct any questions concerning the mechanics of repurchase to the trustee by contacting Deutsche Bank Trust Company Americas. Holders of Notes may request the Company’s Repurchase Right Notice from the Paying Agent. The name and address for the Paying Agent as well as the Conversion Agent (as defined in the Indenture) are as follows:

Conversion Agent:
Deutsche Bank Trust Company Americas
c/o DB Services Americas, Inc
5022 Gate Parkway Suite 200
MS JCK01-218
Jacksonville, FL 32256
db.reorg@db.com
For information call 1-800-735-7777

Paying Agent:
Deutsche Bank Trust Company Americas
c/o DB Services Americas, Inc
5022 Gate Parkway Suite 200
MS JCK01-218
Jacksonville, FL 32256
db.reorg@db.com
For information call 1-800-735-7777

HOLDERS OF NOTES AND OTHER INTERESTED PARTIES ARE URGED TO READ THE COMPANY’S REPURCHASE RIGHT NOTICE BECAUSE IT CONTAINS IMPORTANT INFORMATION ABOUT BILIBILI INC. AND THE 2025 REPURCHASE RIGHT.

Materials filed with the SEC will be available electronically without charge at the SEC’s website, http://www.sec.gov. Documents filed with the SEC may also be obtained without charge at the Company’s investor relations website, http://ir.bilibili.com/.

About Bilibili Inc.

Bilibili is an iconic brand and a leading video community with a mission to enrich the everyday lives of young generations in China. Bilibili offers a wide array of video-based content with All the Videos You Like as its value proposition. Bilibili builds its community around aspiring users, high-quality content, talented content creators and the strong emotional bonds among them. Bilibili pioneered the “bullet chatting” feature, a live comment function that has transformed our users’ viewing experience by displaying the thoughts and feelings of audience members viewing the same video. The Company has now become the welcoming home of diverse interests among young generations in China and the frontier for promoting Chinese culture across the world.

For more information, please visit: http://ir.bilibili.com.

Safe Harbor Statement

For investor and media inquiries, please contact:

In China：

Bilibili Inc.
Juliet Yang
Tel: +86-21-2509-9255 Ext. 8523
E-mail: ir@bilibili.com

Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: bilibili@tpg-ir.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: bilibili@tpg-ir.com

Annex A

REPURCHASE NOTICE

To: Bilibili Inc.

DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee

The undersigned registered owner of this Note hereby acknowledges receipt of a notice from Bilibili Inc. (the “Company”) regarding the right of Holders to elect to require the Company to repurchase the entire principal amount of this Note, or the portion thereof (that is US$1,000 principal amount or an integral multiple thereof) below designated, in accordance with the applicable provisions of the Indenture referred to in this Note, at the Repurchase Price to the registered Holder hereof.

In the case of certificated Notes, the certificate numbers of the Notes to be purchased are as set forth below:

Certificate Number(s):
Dated:

				Signature(s)


				Social Security or Other Taxpayer Identification Number


				Principal amount to be repaid (if less than all): US$ ,000

				NOTICE: The above signature(s) of the Holder(s) hereof must correspond with the name as written upon the face of the Note in every particular without alteration or enlargement or any change whatever.

The MIL Network –

May 13, 2025

MIL-OSI: High Arctic Announces 2025 First Quarter Results

Source: GlobeNewswire (MIL-OSI)

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW

CALGARY, Alberta, May 13, 2025 (GLOBE NEWSWIRE) — High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its first quarter 2025 financial and operating results. The unaudited condensed interim consolidated financial statements, and the management discussion & analysis (“MD&A”), for the quarter ended March 31, 2025 will be available on SEDAR+ at www.sedarplus.ca, and on High Arctic’s website at www.haes.ca. All amounts are denominated in thousands of Canadian dollars (“CAD”), unless otherwise indicated.

Mike Maguire, Interim Chief Executive Officer commented:

“Our business has had a solid start to 2025, despite some pull back in well completion rates in Canada resulting from market uncertainty and customer consolidation events.

Our investment in and amalgamation of Delta Rental Services continues to deliver financial performance in line with our pre-transaction expectations and we anticipate consistent results through the coming months with significant upside potential as gas well completion rates increase in anticipation of first gas through the Coastal GasLink pipeline.

Decisive action by the management of Team Snubbing in Alaska has set a platform for improved value creation from our 42% holding of Team Snubbing.

High Arctic is well positioned to benefit from upstream energy service activity levels in the western Canadian oil and gas industry.”

In the following discussion, the three months ended March 31, 2025 may be referred to as the “quarter” or “Q1 2025” and the comparative three months ended March 31, 2024 may be referred to as “Q1 2024”. References to other quarters may be presented as “QX 20XX” with X/XX being the quarter/year to which the commentary relates.

2025 FIRST QUARTER HIGHLIGHTS

Revenue from continuing operations of $2,335, a decrease of 22% compared to Q1 2024.
Achieved an increase in oilfield services operating margin percentage for Q1 2025 of 53.1% compared to 49.4% in Q1 2024.
Realized adjusted EBITDA from continuing operations of $504 in the quarter, 22% of revenue.
Maintained operational excellence and safety, as evidenced by the continuation of recordable incident-free work.
Achieved expected reductions in general and administrative expenses, a reduction of 59% compared to Q1 2024.
Equity investment in Team Snubbing is essentially unchanged at $7.4 million as at March 31, 2025. Unaudited Team Snubbing financial results delivered a modest positive net income inclusion for the quarter, with key highlights being a sequential improvement in Alaskan results, and reduced debt.
Exited Q1 with positive working capital of $3,199, including cash of $3,183.

2025 Strategic Objectives
With the corporate restructuring and spinoff of the PNG business complete, the Corporation’s 2025 strategic objectives include:

Relentless focus on safety excellence and quality service delivery;
Grow the core businesses through selective and opportunistic investments;
Actively manage direct operating costs and general and administrative costs;
Steward capital to preserve balance sheet strength and financial flexibility; and
Execute on accretive acquisitions in Canada to drive shareholder value and optimize available tax loss carry-forwards.

RESULTS OVERVIEW

The following is a summary of select financial information of the Corporation:

	Three months ended March 31,
(thousands of Canadian Dollars, except per share amounts)	2025		2024
Operating results from continuing operations:
Revenue – continuing operations	2,335		2,988
Net income (loss) – continuing operations	(120	)	182
Per share (basic & diluted) ⁽¹⁾	(0.01	)	0.01
Oilfield services operating margin – continuing operations ⁽²⁾	1,187		1,431
Oilfield services operating margin as a % of revenue ⁽²⁾	53.1	%	49.4	%
EBITDA – continuing operations ⁽²⁾	459		232
Per share (basic & diluted) ^{(1) (4)}	0.04		0.02
Adjusted EBITDA – continuing operations ⁽²⁾	504		92
Per share (basic & diluted) ^{(1) (4)}	0.04		0.01
Operating loss – continuing operations ⁽²⁾	(128	)	(1,070	)
Per share (basic & diluted) ^{(1) (4)}	(0.01	)	(0.09	)
Cash flow from continuing operations:
Cash flow from continuing operating activities	31		271
Per share (basic & diluted) ^{(1) (4)}	0.00		0.02
Funds flow from continuing operating activities ⁽²⁾	495		197
Per share (basic & diluted) ^{(1) (4)}	0.04		0.02
Capital expenditures – continuing operations	382		308
			As at
(thousands of Canadian Dollars, except per share amounts and common shares outstanding)	Mar 31, 2025		Dec 31, 2024
Financial position:
Working capital ⁽²⁾	3,199		2,692
Cash and cash equivalents	3,183		3,123
Total assets	29,989		30,867
Long-term debt (non-current)	3,134		3,178
Shareholders’ equity	21,315		21,105
Per share ⁽⁵⁾	1.68		1.70
Common shares outstanding ⁽³⁾	12,696,959		12,448,166

^{(1)  The weighted average number of common shares used in calculating both basic and diluted net income (loss) per share, EBITDA (Earnings before interest, tax, depreciation and amortization) per share, Adjusted EBITDA per share, operating income (loss) per share, cash flow from operating activities per share, funds flow from operating activities per share, and shareholders’ equity per share is detailed in Note 13 of the Financial Statements.}
^{(2)  Readers are cautioned that oilfield services operating margin, EBITDA (earnings before interest, tax, depreciation, and amortization), Adjusted EBITDA, operating income (loss), funds flow from operating activities and working capital do not have standardized meanings prescribed by IFRS. See “Non-IFRS Measures” for additional details on the calculations of these measures.}
^{(3)  Pursuant to the de facto four-to-one consolidation of the Corporation’s outstanding common shares effective August 12, 2024, the number of common shares outstanding and all per-share amounts have been retroactively adjusted to effect the stock consolidation.}
^{(4)  The number of weighted average common shares used in per share basic calculations for the three months ended March 31, 2025, was 12,522,804 (13,023,166 diluted per share) and for the three months ended March 31, 2024, was 12,280,576 (12,624,412 diluted per share).}
^{(5)   Shareholders’ equity per share calculated based on common shares outstanding as at the relevant date.}

First Quarter 2025 Summary

Revenue from continuing operations for Q1 2025 was $2,335 compared to $2,988 in Q1 2024.
- Revenue was negatively impacted by softening demand driven primarily by deferral of some completions activity as customers have taken a cautious approach to the timing of the deployment of their 2025 capital budgets given the recent general economic uncertainty due to ongoing geopolitical events.
Oilfield services operating margin from continuing operations was $1,187 in the current year quarter compared to $1,431 in the prior year quarter.
- Operating margin percentage improved to 53.1% for Q1 2025 compared to 49.4% for Q1 2024 benefiting from a reduction in lower margin third-party rentals in the current year quarter which offset in part, the reduction in revenue.
Adjusted EBITDA from continuing operations was $504 in the current year quarter compared to $92 in the prior year quarter. EBITDA from continuing operations benefitted from the improvement in gross margin percentage combined with a significant reduction in general and administrative expenses.
Operating loss from continuing operations of $128 for Q1 2025 compared to $1,070 in Q1 2024. The decrease in operating loss is attributable to significantly reduced general and administrative expense. Prior year quarter general and administrative expenses were impacted by elevated corporate and professional fees related to the Arrangement and integration costs related to the acquisition of Delta.
Net loss from continuing operations was $120 in Q1 2025 compared to net income from continuing operations of $182 in Q1 2024. Net loss from continuing operations was also impacted by the same items impacting operating loss, as above, combined with reduced interest income, net higher non-cash accretion expense and reduced income from equity accounted investments.

Operating Results

Rental services segment

	Three months ended March 31,
(thousands of Canadian Dollars, unless otherwise noted)	2025		2024
Revenue	2,237		2,894
Expenses	(1,050	)	(1,463	)
Oilfield services operating margin ⁽¹⁾	1,187		1,431
Oilfield services operating margin (%) ⁽¹⁾	53.1	%	49.4	%

^{(1) See “Non-IFRS Measures”}

Liquidity and Capital Resources

	Three months ended Mar 31,
(thousands of Canadian Dollars)	2025		2024
Cash provided by (used in) continuing operations:
Operating activities	31		271
Investing activities	164		(308	)
Financing activities	(135	)	(131	)
Effect of exchange rate changes on cash	–		665
Increase in cash from continuing operations	60		497

(thousands of Canadian Dollars, unless otherwise noted)	As at Mar 31, 2025	As at Dec 31, 2024
Current assets	6,717	7,221
Working capital ⁽¹⁾	3,199	2,692
Working capital ratio ⁽¹⁾	1.9:1	1.6:1
Cash and cash equivalents	3,183	3,123

^{(1) See “Non-IFRS Measures”}

Operating activities

In Q1 2025, cash from operating activities from continuing operations was $31 compared to $271 for Q1 2024. Funds flow from operating activities from continuing operations totaled $495 in the quarter compared to $197 in the prior year comparative quarter (see “Non-IFRS Measures”). In Q1 2025, changes in non-cash operating working capital from continuing operations totaled an outflow of $464 compared to an inflow of $74 in Q1 2024.

Changes in cash from operating activities from continuing operations and funds from operating activities from continuing operations for Q1 2025 compared to Q1 2024, were largely the result of reduced general and administrative expenses combined with the impact of changes in non-cash working capital (as noted above).

Investing activities

During the first quarter, the Corporation’s net cash from investing activities from continuing operations totaled $164 compared to a usage of $308 in the prior year comparative quarter. The change in cash flows from investing activities from continuing operations is due to payments received related to notes receivable and the settlement of a portion of the contingent consideration payable utilizing common shares of the Corporation, resulting in a positive non-cash working capital change, both of which more than offset Q1 2025 property and equipment expenditures of $382. Investing cash outflows of $308 in the prior year quarter consisted solely of the purchase of property and equipment.

Financing activities

During the first quarter, the Corporation’s net cash used in financing activities from continuing operations of $135 was comparable to $131 in the prior year comparative quarter. Financing related cash flows relate to the normal course payments on the Corporation’s lease liabilities and long-term debt.

Working capital

As at March 31, 2025, the Corporation’s working capital balance was $3,199 compared to $2,692 as at December 31, 2024. The increase in working capital is largely due to positive EBITDA generated during Q1 2025 combined with a portion of the year one contingent consideration associated with the acquisition of Delta being settled in common shares during the first quarter.

Long-term debt

(thousands of Canadian Dollars)	As at Mar 31, 2025	As at Dec 31, 2024
Current	175	175
Non-current	3,134	3,178
Total	3,309	3,353

The Corporation has mortgage financing secured by lands and buildings owned by High Arctic located within Alberta, Canada. The mortgage has a remaining initial term of under two years with a fixed interest rate of 4.30%; payments occur monthly. The mortgage financing contains certain non-financial covenants requiring the lender’s consent, including changes to the underlying business. As at March 31, 2025, the Corporation was compliant with all covenants associated with the mortgage financing.

Outlook

The first quarter of 2025 has provided High Arctic with a solid start to the year. General and administrative expenses have taken a step change downward resulting in a reduced run rate. The significant and strategic importance of the equity investment in Team Snubbing has been reinforced through enhanced Board of Director and management oversight. The late 2023 acquisition of Delta Rental Services Ltd. (“Delta”) is fully integrated into High Arctic’s rental services business, positively contributing to improved profit margins. Rental services revenue, while at the lower end of expectations, led to capital preservation through modest growth in new equipment additions and insight as to the outlook for the remainder of 2025.

High Arctic’s business is driven by the underlying economics associated with its customers’ cash flows. These cash flows are driven by their oil and natural gas commodity price hedging and expectations. As customers embark on drilling new oil and natural gas wells, High Arctic’s business outlook is reliant on decisions on the subsequent activity to complete these wells for production. Therefore, High Arctic’s rental assets and investment in the snubbing industry are highly dependent on fundamentals associated with both drilling and hydraulic fracturing completion trends in the WCSB.

To this point, 2024/25 winter drilling rig activity in the WCSB has been resilient despite softening commodity price trends. As the industry enters the seasonal second quarter spring breakup period, activity remains comparable to 2024 levels. However, customer capital allocation decisions to complete wells are showing signs of deferral. Recent OPEC moves to increase oil supply, changes in global trade tariffs, and geopolitical risk have increased investment uncertainty.

This uncertainty is offset by positive developments specific to Canada. The completion of the Trans Mountain pipeline system expansion in 2024, and expectations for west coast LNG exports commencing in the second half of 2025, are positive infrastructure developments supporting improved long-term fundamentals for the upstream energy service business.

Based on these near-term headwinds and favourable long-term fundamentals, High Arctic will continue to prudently preserve capital while working with our customers to deliver service efficiency and productivity.

The outlook for 2025 is dependent on the financial performance of High Arctic’s investment in Team Snubbing. High Arctic is carrying total assets of $9.8 million related to its investment in Team Snubbing, comprised of a $7.4 million equity investment and a $2.4 million note receivable. Success will be defined by Team Snubbing’s ability to establish profitability in their international operations.

In summary, for 2025 the Corporation expects to continue to execute on the initial phases of its strategic objectives, with progress to date being evidenced by safety performance, balance sheet preservation, general and administrative expense reductions, selective capital expenditure investments, and oversight of equity investments.

Non-IFRS Measures
This Press Release contains references to certain financial measures that do not have a standardized meaning prescribed by IFRS and may not be comparable to the same or similar measures used by other companies. High Arctic uses these financial measures to assess performance and believes these measures provide useful supplemental information to shareholders and investors. These financial measures are computed on a consistent basis for each reporting period and include EBITDA (Earnings before interest, tax, depreciation and amortization), Adjusted EBITDA, oilfield services operating margin, operating income (loss), Funds flow from operating activities and working capital. These do not have standardized meanings.

These financial measures should not be considered as an alternative to, or more meaningful than, net income (loss), cash from operating activities, current assets or current liabilities, cash and/or other measures of financial performance as determined in accordance with IFRS.

For additional information regarding non-IFRS measures, including their use to management and investors and reconciliations to measures recognized by IFRS, please refer to the Corporation’s MD&A, which is available online at www.sedar.com and through High Arctic’s website at www.haes.ca.

Forward-Looking Statements
This Press Release contains forward-looking statements. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions are intended to identify forward-looking statements. Such statements reflect the Corporation’s current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. Many factors could cause the Corporation’s actual results, performance, or achievements to vary from those described in this Press Release.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Specific forward-looking statements in this Press Release include, among others, statements pertaining to the following: general economic and business conditions, which will include, among other things, the outlook for the energy industry inclusive of commodity prices, producer activity levels (inclusive of drilling and completions activity) and general energy supply and demand fundamentals that may impact the energy industry as a whole and more specifically as it relates to the Corporation’s customers in western Canada and Alaska, United States; expectations related to current and future LNG export projects; the impact (if any) of geo-political events, changes in government, changes to tariffs or related trade policies and the potential impact on the Corporation’s ability to execute its 2025 strategic objectives; fluctuations in commodity prices; and the performance of the Corporation’s investment in Team Snubbing.

With respect to forward-looking statements contained in this Press Release, the Corporation has made assumptions regarding, among other things, its ability to: maintain its ongoing relationship with major customers; successfully market its services to current and new customers; devise methods for, and achieve its primary objectives; source and obtain equipment from suppliers; successfully manage, operate, and thrive in an environment which is facing uncertainty; remain competitive in all its operations; attract and retain skilled employees; obtain equity and debt financing on satisfactory terms and manage its liquidity risk; raise capital and manage its debt finance agreements; manage general and administrative costs; maintain a strong balance sheet and related financial flexibility; scale the Canadian business; and seek and execute accretive acquisitions in a timely manner and achieve operational and financial benefits therefrom.

Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: economic and financial conditions, including volatility in commodity prices; volatility in interest and exchange rates and capital markets; the level of demand and financial performance of the energy industry; changes in customer demand; and developments and changes in laws and regulations, including in the energy industry.

The Corporation’s actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth above and elsewhere in this Press Release, along with the risk factors set out in the most recent AIF filed on SEDAR+ at www.sedarplus.ca.

The forward-looking statements contained in this Press Release are expressly qualified in their entirety by this cautionary statement. These statements are given only as of the date of this Press Release. The Corporation does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

About High Arctic Energy Services
High Arctic is an energy services provider. High Arctic provides pressure control equipment and equipment supporting the high-pressure stimulation of oil and gas wells and other oilfield equipment ‎on a rental basis to exploration and production companies, from its bases in Whitecourt and Red Deer, Alberta‎.

For further information contact:

Lonn Bate
Chief Financial Officer
P: 587-318-2218
P: +1 (800) 688 7143

High Arctic Energy Services Inc.
Suite 2350, 330 – 5th Ave SW
Calgary, Alberta, Canada T2P 0L4
website: www.haes.ca
Email: info@haes.ca

The MIL Network –

May 13, 2025

MIL-OSI United Kingdom: Parents of teens reminded to extend Child Benefit claim online
Source: United Kingdom – Executive Government & Departments

Press release

Parents of teens reminded to extend Child Benefit claim online

Parents of 16 to 19 year olds can go online to extend their Child Benefit claim to guarantee payments in September.
Parents of 16 to 19 year olds reminded to extend their Child Benefit claim by 31 August to continue payments

Last year, 870,000 parents extended their Child Benefit with the majority confirming online

Parents extending via the HMRC app or the digital service guarantee their payments quickly and easily

Parents of 16 to 19 year olds will receive reminders from HM Revenue and Customs (HMRC) to extend their Child Benefit claim by 31 August if their child is staying in education or training or payments will automatically stop.

Child Benefit will automatically stop on 31 August on or after a child’s 16th birthday if it’s not extended.

Between May and July, letters will be sent to parents reminding them to go online to confirm if their teenager is staying in full time education or approved training after they finish their GCSEs to continue receiving their Child Benefit.

Parents can extend their claim quickly and easily via the HMRC app or online on GOV.UK. The letters also contain a handy QR code which takes parents straight to the digital service on GOV.UK.

Child Benefit is currently worth £26.05 per week – or £1,354.60 a year – for the eldest or only child and £17.25 per week – or £897 a year – for each additional child. More than 870,000 parents extended their Child Benefit claim for their teen last year with the majority confirming online or via the HMRC app in minutes.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

Child Benefit is an important boost to families. As soon as you know what your teenager is planning to do, extend your claim in minutes to guarantee your payments continue in September. Simply go to GOV.UK or the HMRC app to confirm today.

Child Benefit can continue to be paid for young people who are studying full time in non-advanced education as well as unpaid approved training courses. Visit GOV.UK to check full eligibility.

If either the claimant or their partner has an individual income of between £60,000 and £80,000, the higher earner will be subject to the High Income Child Benefit Charge. For families who fall into this category, the online Child Benefit tax calculator provides an estimate of how much benefit they will receive, and what the charge may be.

From this summer, as part of the government’s Plan for Change, families will have the option to use a new digital service to pay the charge directly through their PAYE tax code instead of filing a Self Assessment tax return.

The new service will cut red tape for eligible employed parents who are liable to the High Income Child Benefit Charge but those who choose to pay the charge through their Self Assessment can continue to do so.

Families who have previously opted out of Child Benefit payments can opt back in and restart their payments quickly and easily online or via the HMRC app.

Teenagers turning 16 can take control of their Child Trust Fund savings account, which could be worth thousands of pounds, and can withdraw the money once they turn 18. Child Trust Funds were set up for every child born between 1 September 2002 and 2 January 2011.

If teenagers or their parents and guardians know who their Child Trust Fund provider is, they can contact them directly. If they don’t know where their account is, they can use the free online tool on GOV.UK to find out who their Child Trust Fund provider is.

Further Information

More information on Child Benefit for 16 to 19 year olds.

1.5 million letters will be sent to parents of 16 to 19 year olds reminding them to extend their Child Benefit claim for their teenager if they are staying in full time education or approved training.

Eligible customers no longer need to wait for the letter to extend their claim. The service will be open online or in the HMRC app for all eligible customers.

Customers can update their Child Benefit claim via the HMRC app and via GOV.UK. Claimants who are unable to use online services can call or write to us using the contact details in their renewal letter.

Parents cannot claim Child Benefit if their child is taking a course that is part of a job contract.

Parents can view and manage their claim quickly and easily online or on the HMRC app. This includes viewing payment information and proof of their claim, adding additional children and updating their details.

HMRC uses QR codes in letters and correspondence. The QR code will always take you to GOV.UK or the HMRC app. When you are logged into your HMRC account, we may use QR codes to redirect you to another page. If we’re using QR codes in communications you’ll be able to see them on the genuine HMRC contacts page. To help fight phishing scams, send any suspicious emails containing QR codes to phishing@hmrc.gov.uk then delete them.

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Updates to this page

Published 13 May 2025
MIL OSI United Kingdom –
May 13, 2025
MIL-OSI Economics: NOIA Urges Certainty on Offshore Energy Tax Credits

Source: National Ocean Industries Association – NOIA

Headline: NOIA Urges Certainty on Offshore Energy Tax Credits

For Immediate Release: Monday, May 12, 2025NOIA .org
NOIA Urges Certainty on Offshore Energy Tax Credits
Washington, D.C. – National Ocean Industries Association President Erik Milito issued the following statement in regards to the House Ways & Means Committee reconciliation package:
“NOIA continues to support efforts by Congress and the Administration to promote U.S. energy dominance. However, we caution against the premature repeal or phase-out of current tax credits, as such changes risk disrupting vital investments in American manufacturing, infrastructure, ports, shipbuilding, and offshore energy projects nationwide.
“Through a long-term lens—spanning a decade or more—American companies have made substantial investments in offshore energy based on the stability of the current tax framework. Sudden changes to the tax code could inject significant uncertainty, jeopardizing capital allocation, project planning, and job creation across the energy sector and the broader economy.
“As budget reconciliation discussions move forward, we urge a collaborative approach that maintains certainty for businesses that have made meaningful U.S. investments under the existing credit structure. These tax credits provide a meaningful boost to the U.S. in the global competition to meet surging AI-driven energy demand, secure critical mineral supply chains, and revitalize domestic shipbuilding—all while supporting affordability and reliability for American consumers.”
##
About NOIAThe National Ocean Industries Association (NOIA) represents and advances a dynamic and growing offshore energy industry, providing solutions that support communities and protect our workers, the public and our environment.

MIL OSI Economics –

May 13, 2025

MIL-OSI: JD.com Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

BEIJING, May 13, 2025 (GLOBE NEWSWIRE) — JD.com, Inc. (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter), the “Company” or “JD.com”), a leading supply chain-based technology and service provider, today announced its unaudited financial results for the three months ended March 31, 2025.

First Quarter 2025 Highlights

Net revenues were RMB301.1 billion (US$¹41.5 billion) for the first quarter of 2025, an increase of 15.8% from the first quarter of 2024.
Income from operations was RMB10.5 billion (US$1.5 billion) for the first quarter of 2025, compared to RMB7.7 billion for the first quarter of 2024. Operating margin was 3.5% for the first quarter of 2025, compared to 3.0% for the first quarter of 2024. Non-GAAP²income from operations was RMB11.7 billion (US$1.6 billion) for the first quarter of 2025, compared to RMB8.9 billion for the first quarter of 2024. Non-GAAP operating margin was 3.9% for the first quarter of 2025, compared to 3.4% for the first quarter of 2024. Operating margin of JD Retail before unallocated items was 4.9% for the first quarter of 2025, compared to 4.1% for the first quarter of 2024.
Net income attributable to the Company’s ordinary shareholders was RMB10.9 billion (US$1.5 billion) for the first quarter of 2025, compared to RMB7.1 billion for the first quarter of 2024. Net margin attributable to the Company’s ordinary shareholders was 3.6% for the first quarter of 2025, compared to 2.7% for the first quarter of 2024. Non-GAAP net income attributable to the Company’s ordinary shareholders was RMB12.8 billion (US$1.8 billion) for the first quarter of 2025, compared to RMB8.9 billion for the first quarter of 2024. Non-GAAP net margin attributable to the Company’s ordinary shareholders was 4.2% for the first quarter of 2025, compared to 3.4% for the first quarter of 2024.
Diluted net income per ADS was RMB7.19 (US$0.99) for the first quarter of 2025, compared to RMB4.53 for the first quarter of 2024. Non-GAAP diluted net income per ADS was RMB8.41 (US$1.16) for the first quarter of 2025, compared to RMB5.65 for the first quarter of 2024.

“We saw a strong start to the year, with solid results on both the top and bottom lines in Q1,” said Sandy Xu, Chief Executive Officer of JD.com. “Our performance was supported by improving consumer sentiment and continued enhancements to JD’s supply chain capabilities and user experience. User growth was particularly strong during the quarter, reflecting the increasing trust and mindshare JD has earned from consumers and further strengthening our ecosystem. We are also seeing encouraging signs from new initiatives, and we believe these emerging opportunities will further position us for long-term, high-quality growth.”

“In the first quarter, both our product and service revenues achieved double-digit growth year-on-year, further accelerating on a sequential basis, while bottom line also continued to expand steadily,” said Ian Su Shan, Chief Financial Officer of JD.com. “In particular, we maintained and further enhanced robust momentum of our core JD Retail business, while exploring exciting new opportunities for our long-term success. We also remained very committed to shareholder returns. We completed our annual dividend payout in April, and further executed upon our share repurchase program during the first quarter.”

Updates of Share Repurchase Program

Pursuant to the Company’s share repurchase program of up to US$5.0 billion adopted in August 2024 and effective through August 2027, the Company repurchased a total of approximately 80.7 million Class A ordinary shares (equivalent to 40.4 million ADSs) for a total of approximately US$1.5 billion from January 1, 2025 to the date of this announcement. The remaining amount under the share repurchase program was US$3.5 billion as of the date of this announcement.

The total number of shares repurchased by the Company from January 1, 2025 to the date of this announcement amounted to approximately 2.8% of its ordinary shares outstanding as of December 31, 2024³. All of these ordinary shares were repurchased from both Nasdaq and the Hong Kong Stock Exchange pursuant to the share repurchase program.

Business Highlights

JD Retail:In the first quarter, JD.com deepened its strategic partnerships with leading digital product manufacturers such as Xiaomi. The collaborations focus on product innovation, marketing initiatives, and other key areas, aiming to capture the emerging market opportunities driven by consumption support policies and the rise of AI large language models. Together with its partners, JD.com is committed to providing its users with more intelligent and diverse product offerings, along with enhanced purchasing and service experience.
In the first quarter, JD.com debuted a range of new products online from renowned fashion brands, such as La Prairie, Crocs, and Massimo Dutti. Leveraging its platform advantages and integrated supply chain capabilities, JD.com is dedicated to offering an enriched selection of fashionable products and superior shopping experience for a wide range of consumers.

In April, JD.com announced the launch of an export-to-domestic sales program. JD.com aims to procure no less than RMB200 billion worth of export-oriented goods for domestic sales. Through this initiative, JD.com will work with Chinese manufactures to strengthen their presence in the domestic market and provide consumers with more better and cheaper products.

New Business:In February 2025, JD.com officially launched its food delivery business. Starting from core retail, JD is expanding into on-demand retail and food delivery, meeting users’ demands in various scenarios. Rooted in the Company’s ecosystem, JD Food Delivery is not a stand-alone business. It operates in a market with big opportunities and demands, such as users’ demand for quality meals, merchants’ need for reasonable commissions, and riders’ desire for better protections. JD has the right strength, culture and advantage to address such opportunities and demands, particularly with its “better and cheaper” user mindshare, the “thirty-five cents” principle that insists on only reasonable profit margins, and its strong logistics operation and management capabilities. JD Food Delivery is set to generate synergetic effects with the Company’s existing businesses, including enriching location-based product supplies, upgrading last mile fulfillment network, and contributing to user growth and engagement. JD Food Delivery has achieved substantial progress in a very brief time, a proof of the great potentials of the food delivery industry and JD’s precise grasp of the industry demands and strong execution capabilities.

JD Health:In the first quarter, JD Health further strengthened its position as the first online marketplace for new and specialty medicine launches. It debuted several innovative medicines online during the quarter from pharmaceutical companies including Pfizer, Esteve, Innogen, and others, broadening treatment options for patients. In addition, JD Health also deepened its collaborations with leading healthcare product companies, including By-Health, Yan Palace, and LifeStyles, driving synergies in product innovation, digitalization of supply chain, and precision marketing.
In the first quarter, JD Health made significant progress in medical AI, continuously promoting the application of AI in healthcare services, specialized diagnosis and treatment, and health management. JD Health Online Hospital has seen over 80% of its medical consultation orders aided with AI services. Its AI nutritionist has also achieved a user satisfaction rate of 91%.

JD Logistics:In the first quarter, JD Logistics (“JDL”) continued to expand its global footprint. In January, JDL officially launched an international air cargo route between Shenzhen, China, and Bangkok, Thailand, enabling more efficient cross-border flow of goods. In March, JDL’s second warehouse in Warsaw, Poland commenced operations, offering integrated supply chain and logistics services to support both Chinese enterprises and local European businesses with streamlined and efficient logistics solutions.
On March 24, 2025, JDL officially launched its operations center in Hong Kong, marking a significant step-up in expanding the coverage of its express delivery network and boosting service efficiency in the region. Since upgrading its services in Hong Kong in October 2023, JDL has been persistently deepening its footprint in the market. It has been providing premium express delivery services to consumers, and at the same time, cultivating a mutually beneficial ecosystem in collaboration with local businesses.

Environment, Social and Governance

Starting from March 1, 2025, JD.com has begun to contribute the social insurances and the housing fund for its full-time food delivery riders, including both portions that are to be contributed by employers and individuals. In addition, JD.com will also provide accident and health insurances for its part-time food delivery riders. JD.com has become the first platform in China to provide such extensive social benefit coverage for full-time food delivery riders.
As a testament to JD.com’s unwavering commitment to creating more jobs and making contribution to the society, the total personnel under the JD Ecosystem⁴ was approximately 700,000 as of March 31, 2025, including the Company’s employees, part-time staff and interns, as well as the personnel of the Company’s affiliates in the JD Ecosystem. The total expenditure for such human resources, together with the expenditure for external personnel who work for the JD Ecosystem, amounted to RMB128.8 billion for the twelve months ended March 31, 2025.

First Quarter 2025 Financial Results

Net Revenues. Net revenues increased to RMB301.1 billion (US$41.5 billion) by 15.8% for the first quarter of 2025 from RMB260.0 billion for the first quarter of 2024. Net product revenues increased by 16.2%, while net service revenues increased by 14.0% for the first quarter of 2025, compared to the first quarter of 2024.

Cost of Revenues. Cost of revenues increased to RMB253.2 billion (US$34.9 billion) by 15.0% for the first quarter of 2025 from RMB220.3 billion for the first quarter of 2024.

Fulfillment Expenses. Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased to RMB19.7 billion (US$2.7 billion) by 17.4% for the first quarter of 2025 from RMB16.8 billion for the first quarter of 2024. Fulfillment expenses as a percentage of net revenues was 6.6% for the first quarter of 2025, compared to 6.5% for the first quarter of 2024.

Marketing Expenses. Marketing expenses increased to RMB10.5 billion (US$1.5 billion) by 13.9% for the first quarter of 2025 from RMB9.3 billion for the first quarter of 2024. Marketing expenses as a percentage of net revenues was 3.5% for the first quarter of 2025, compared to 3.6% for the first quarter of 2024.

Research and Development Expenses. Research and development expenses increased to RMB4.6 billion (US$0.6 billion) by 14.6% for the first quarter of 2025 from RMB4.0 billion for the first quarter of 2024. Research and development expenses as a percentage of net revenues was 1.5% for the first quarter of 2025, compared to 1.6% for the first quarter of 2024.

General and Administrative Expenses. General and administrative expenses increased to RMB2.4 billion (US$0.3 billion) by 22.2% for the first quarter of 2025 from RMB2.0 billion for the first quarter of 2024. General and administrative expenses as a percentage of net revenues remained stable at 0.8% for the first quarter of 2025 and 2024.

Income from Operations and Non-GAAP Income from Operations. Income from operations increased to RMB10.5 billion (US$1.5 billion) by 36.8% for the first quarter of 2025 from RMB7.7 billion for the first quarter of 2024. Operating margin was 3.5% for the first quarter of 2025, compared to 3.0% for the first quarter of 2024. Non-GAAP income from operations increased to RMB11.7 billion (US$1.6 billion) by 31.4% for the first quarter of 2025 from RMB8.9 billion for the first quarter of 2024. Non-GAAP operating margin was 3.9% for the first quarter of 2025, compared to 3.4% for the first quarter of 2024. Operating margin of JD Retail before unallocated items for the first quarter of 2025 was 4.9%, compared to 4.1% for the first quarter of 2024.

Non-GAAP EBITDA. Non-GAAP EBITDA increased to RMB13.7 billion (US$1.9 billion) by 27.0% for the first quarter of 2025 from RMB10.8 billion for the first quarter of 2024. Non-GAAP EBITDA margin was 4.6% for the first quarter of 2025, compared to 4.1% for the first quarter of 2024.

Net Income Attributable to the Company’s Ordinary Shareholders and Non-GAAP Net Income Attributable to the Company’s Ordinary Shareholders. Net income attributable to the Company’s ordinary shareholders increased to RMB10.9 billion (US$1.5 billion) by 52.7% for the first quarter of 2025 from RMB7.1 billion for the first quarter of 2024. Net margin attributable to the Company’s ordinary shareholders was 3.6% for the first quarter of 2025, compared to 2.7% for the first quarter of 2024. Non-GAAP net income attributable to the Company’s ordinary shareholders increased to RMB12.8 billion (US$1.8 billion) by 43.4% for the first quarter of 2025 from RMB8.9 billion for the first quarter of 2024. Non-GAAP net margin attributable to the Company’s ordinary shareholders was 4.2% for the first quarter of 2025, compared to 3.4% for the first quarter of 2024.

Diluted EPS and Non-GAAP Diluted EPS. Diluted net income per ADS increased to RMB7.19 (US$0.99) by 58.7% for the first quarter of 2025 from RMB4.53 for the first quarter of 2024. Non-GAAP diluted net income per ADS increased to RMB8.41 (US$1.16) by 48.8% for the first quarter of 2025 from RMB5.65 for the first quarter of 2024.

Cash Flow and Working Capital

As of March 31, 2025, the Company’s cash and cash equivalents, restricted cash and short-term investments totaled RMB203.4 billion (US$28.0 billion), compared to RMB241.4 billion as of December 31, 2024. For the first quarter of 2025, free cash flow of the Company was as follows:

	For the three months ended
	March 31, 2024		March 31, 2025		March 31, 2025
	RMB		RMB		US$
	(In millions)

Net cash used in operating activities	(11,315	)	(18,262	)	(2,517	)
Less: Impact from consumer financing receivables included in the operating cash flow	(1,281	)	(1,018	)	(140	)
Less: Capital expenditures, net of related sales proceeds	(2,880	)	(2,323	)	(320	)
Capital expenditures for development properties	(1,360	)	(915	)	(126	)
Other capital expenditures*	(1,520	)	(1,408	)	(194	)
Free cash flow	(15,476	)	(21,603	)	(2,977	)

* Including capital expenditures related to the Company’s headquarters in Beijing and all other CAPEX.

Net cash provided by investing activities was RMB16.2 billion (US$2.2 billion) for the first quarter of 2025, consisting primarily of net cash received from maturity of time deposits and wealth management products and cash received from disposal of equity investments and investment securities, partially offset by cash paid for capital expenditures.

Net cash used in financing activities was RMB7.3 billion (US$1.0 billion) for the first quarter of 2025, consisting primarily of net cash paid for repayment of borrowings and cash paid for repurchase of ordinary shares.

For the twelve months ended March 31, 2025, free cash flow of the Company was as follows:

	For the twelve months ended
	March 31, 2024		March 31, 2025		March 31, 2025
	RMB		RMB		US$
	(In millions)

Net cash provided by operating activities	69,813		51,148		7,048
(Less)/Add: Impact from consumer financing receivables included in the operating cash flow	(1,191	)	131		18
Less: Capital expenditures, net of related sales proceeds	(18,045	)	(13,666	)	(1,883	)
Capital expenditures for development properties	(11,332	)	(6,841	)	(943	)
Other capital expenditures	(6,713	)	(6,825	)	(940	)
Free cash flow	50,577		37,613		5,183

Supplemental Information

The Company reports three reportable segments, JD Retail, JD Logistics, and New businesses. JD Retail, including JD Health and JD Industrials, among other operating segments, mainly engages in online retail, online marketplace and marketing services in China. JD Logistics includes both internal and external logistics businesses. New Businesses mainly include Dada, JD Property, Jingxi and overseas businesses.

	For the three months ended
	March 31, 2024		March 31, 2025		March 31, 2025
	RMB		RMB		US$
	(In millions, except percentage data)
Net revenues:
JD Retail	226,835		263,845		36,359
JD Logistics	42,137		46,967		6,472
New Businesses	4,870		5,753		793
Inter-segment eliminations*	(13,793	)	(15,483	)	(2,134	)
Total consolidated net revenues	260,049		301,082		41,490
Less: cost of revenues:
JD Retail	(190,062	)	(219,395	)	(30,234	)
JD Logistics	(39,052	)	(43,785	)	(6,034	)
New Businesses	(4,031	)	(4,586	)	(632	)
Inter-segment eliminations*	12,892		14,539		2,004
Less: operating expenses:
JD Retail	(27,448	)	(31,604	)	(4,355	)
JD Logistics	(2,861	)	(3,037	)	(418	)
New Businesses	(1,509	)	(2,494	)	(344	)
Inter-segment eliminations*	901		944		130
Income/(loss) from operations:
JD Retail	9,325		12,846		1,770
JD Logistics	224		145		20
New Businesses	(670	)	(1,327	)	(183	)
Total segment income from operations	8,879		11,664		1,607
Unallocated items**	(1,179	)	(1,131	)	(156	)
Total consolidated income from operations	7,700		10,533		1,451
Share of results of equity investees	(730	)	1,330		183
Interest expense	(601	)	(600	)	(82	)
Others, net	2,696		2,079		287
Total consolidated income before tax	9,065		13,342		1,839

YoY% change of net revenues:
JD Retail	6.8	%	16.3	%
JD Logistics	14.7	%	11.5	%
New Businesses	(19.2	)%	18.1	%

Operating margin:
JD Retail	4.1	%	4.9	%
JD Logistics	0.5	%	0.3	%
New Businesses	(13.8	)%	(23.1	)%

* The inter-segment eliminations mainly consist of revenues from supply chain solutions and logistics services provided by JD Logistics to JD Retail, on-demand delivery and retail services provided by Dada to JD Retail and JD Logistics, and property leasing services provided by JD Property to JD Logistics.

** Unallocated items include share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements, and impairment of goodwill and intangible assets, which are not allocated to segments.

The table below sets forth the revenue information:

	For the three months ended
	March 31, 2024	March 31, 2025	March 31, 2025	YoY% Change
	RMB	RMB	US$
	(In millions, except percentage data)
Electronics and home appliances revenues	123,212	144,295	19,884	17.1	%
General merchandise revenues	85,296	98,014	13,507	14.9	%
Net product revenues	208,508	242,309	33,391	16.2	%
Marketplace and marketing revenues	19,289	22,320	3,076	15.7	%
Logistics and other service revenues	32,252	36,453	5,023	13.0	%
Net service revenues	51,541	58,773	8,099	14.0	%
Total net revenues	260,049	301,082	41,490	15.8	%

Conference Call

JD.com’s management will hold a conference call at 8:00 am, Eastern Time on May 13, 2025, (8:00 pm, Beijing/Hong Kong Time on May 13, 2025) to discuss the first quarter 2025 financial results.

Please register in advance of the conference using the link provided below and dial in 15 minutes prior to the call, using participant dial-in numbers, the Passcode and unique access PIN which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.

PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10046856-37hfgr.html

CONFERENCE ID: 10046856

A telephone replay will be available for one week until May 20, 2025. The dial-in details are as follows:

US:	+1-855-883-1031
International:	+61-7-3107-6325
Hong Kong:	800-930-639
Chinese Mainland:	400-120-9216
Passcode:	10046856

Additionally, a live and archived webcast of the conference call will also be available on the JD.com’s investor relations website at http://ir.jd.com.

About JD.com

JD.com is a leading supply chain-based technology and service provider. The Company’s cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The Company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries.

Non-GAAP Measures

In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders, non-GAAP net margin attributable to the Company’s ordinary shareholders, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA margin, non-GAAP net income/(loss) per share and non-GAAP net income/(loss) per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company defines non-GAAP income/(loss) from operations as income/(loss) from operations excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements, gain on sale of development properties and impairment of goodwill and long-lived assets. The Company defines non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders as net income/(loss) attributable to the Company’s ordinary shareholders excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements and non-compete agreements, gain/(loss) on disposals/deemed disposals of investments and others, reconciling items on the share of equity method investments, loss/(gain) from fair value change of long-term investments, impairment of goodwill, long-lived assets and investments, gain on sale of development properties and tax effects on non-GAAP adjustments. The Company defines free cash flow as operating cash flow adjusting the impact from consumer financing receivables included in the operating cash flow and capital expenditures, net of related sales proceeds. Capital expenditures include purchase of property, equipment and software, cash paid for construction in progress, purchase of intangible assets, land use rights and asset acquisitions. The Company defines non-GAAP EBITDA as non-GAAP income/(loss) from operations plus depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions. Non-GAAP basic net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effects of share-based awards as determined under the treasury stock method and convertible senior notes. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net income/(loss) per share multiplied by two.

The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. Non-GAAP income/(loss) from operations, non-GAAP net income/(loss) attributable to the Company’s ordinary shareholders and non-GAAP EBITDA reflect the Company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Free cash flow enables management to assess liquidity and cash flow while taking into account the impact from consumer financing receivables included in the operating cash flow and the demands that the expansion of fulfillment infrastructure and technology platform has placed on financial resources. The Company believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the Company’s current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the Company’s core operating results and business outlook.

The non-GAAP financial measures have limitations as analytical tools. The Company’s non-GAAP financial measures do not reflect all items of income and expense that affect the Company’s operations or not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company’s financial information in its entirety and not rely on a single financial measure.

CONTACTS:

Investor Relations
Sean Zhang
+86 (10) 8912-6804
IR@JD.com

Media Relations
+86 (10) 8911-6155
Press@JD.com

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as JD.com’s strategic and operational plans, contain forward-looking statements. JD.com may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in announcements made on the website of the Hong Kong Stock Exchange, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JD.com’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JD.com’s growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China’s e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; laws, regulations and governmental policies relating to the industries in which JD.com or its business partners operate; potential changes in laws, regulations and governmental policies or changes in the interpretation and implementation of laws, regulations and governmental policies that could adversely affect the industries in which JD.com or its business partners operate, including, among others, initiatives to enhance supervision of companies listed on an overseas exchange and tighten scrutiny over data privacy and data security; risks associated with JD.com’s acquisitions, investments and alliances, including fluctuation in the market value of JD.com’s investment portfolio; natural disasters and geopolitical events; change in tax rates and financial risks; intensity of competition; and general market and economic conditions in China and globally. Further information regarding these and other risks is included in JD.com’s filings with the SEC and the announcements on the website of the Hong Kong Stock Exchange. All information provided herein is as of the date of this announcement, and JD.com undertakes no obligation to update any forward-looking statement, except as required under applicable law.

JD.com, Inc.
Unaudited Interim Condensed Consolidated Balance Sheets
(In millions, except otherwise noted)

	As of
	December 31, 2024	March 31, 2025	March 31, 2025
	RMB	RMB	US$
ASSETS
Current assets
Cash and cash equivalents	108,350	96,778	13,336
Restricted cash	7,366	9,279	1,279
Short-term investments	125,645	97,385	13,420
Accounts receivable, net (including consumer financing receivables of RMB2.0 billion and RMB1.3 billion as of December 31, 2024 and March 31, 2025, respectively)⁽¹⁾	25,596	31,380	4,324
Advance to suppliers	7,619	6,140	846
Inventories, net	89,326	95,434	13,151
Prepayments and other current assets	15,951	15,712	2,165
Amount due from related parties	4,805	3,344	461
Assets held for sale	2,040	1,778	245
Total current assets	386,698	357,230	49,227
Non-current assets
Property, equipment and software, net	82,737	83,054	11,445
Construction in progress	6,164	7,039	970
Intangible assets, net	7,793	7,510	1,035
Land use rights, net	36,833	36,820	5,074
Operating lease right-of-use assets	24,532	25,621	3,531
Goodwill	25,709	25,709	3,543
Investment in equity investees	56,850	52,138	7,185
Marketable securities and other investments	59,370	71,755	9,888
Deferred tax assets	2,459	2,430	335
Other non-current assets	9,089	8,556	1,179
Total non-current assets	311,536	320,632	44,185
Total assets	698,234	677,862	93,412

JD.com, Inc.
Unaudited Interim Condensed Consolidated Balance Sheets
(In millions, except otherwise noted)

	As of
	December 31, 2024	March 31, 2025	March 31, 2025
	RMB	RMB	US$
LIABILITIES
Current liabilities
Short-term debts	7,581	4,230	583
Accounts payable	192,860	176,736	24,355
Advance from customers	32,437	34,055	4,693
Deferred revenues	2,097	2,166	299
Taxes payable	9,487	5,496	757
Amount due to related parties	1,367	2,954	407
Accrued expenses and other current liabilities	45,985	50,626	6,976
Operating lease liabilities	7,606	7,801	1,075
Liabilities held for sale	101	65	9
Total current liabilities	299,521	284,129	39,154
Non-current liabilities
Deferred revenues	502	424	58
Unsecured senior notes	24,770	24,758	3,412
Deferred tax liabilities	9,498	8,440	1,163
Long-term borrowings	31,705	31,492	4,340
Operating lease liabilities	18,106	19,151	2,639
Other non-current liabilities	835	797	110
Total non-current liabilities	85,416	85,062	11,722
Total liabilities	384,937	369,191	50,876

MEZZANINE EQUITY	484	263	36

SHAREHOLDERS’ EQUITY
Total JD.com, Inc. shareholders’ equity (US$0.00002 par value, 100,000 million shares authorized, 2,981 million shares issued and 2,883 million shares outstanding as of March 31, 2025)	239,347	234,322	32,291
Non-controlling interests	73,466	74,086	10,209
Total shareholders’ equity	312,813	308,408	42,500

Total liabilities, mezzanine equity and shareholders’ equity	698,234	677,862	93,412

(1) JD Technology performs credit risk assessment services for consumer financing receivables business and absorbs the credit risk of the underlying consumer financing receivables. Facilitated by JD Technology, the Company periodically securitizes consumer financing receivables through the transfer of those assets to securitization plans and derecognizes the related consumer financing receivables through sales type arrangements.

JD.com, Inc.
Unaudited Interim Condensed Consolidated Statements of Operations
(In millions, except per share data)

	For the three months ended
	March 31, 2024		March 31, 2025		March 31, 2025
	RMB		RMB		US$
Net revenues
Net product revenues	208,508		242,309		33,391
Net service revenues	51,541		58,773		8,099
Total net revenues	260,049		301,082		41,490
Cost of revenues	(220,279	)	(253,234	)	(34,897	)
Fulfillment	(16,806	)	(19,737	)	(2,720	)
Marketing	(9,254	)	(10,543	)	(1,453	)
Research and development	(4,034	)	(4,621	)	(637	)
General and administrative	(1,976	)	(2,414	)	(332	)
Income from operations⁽²⁾⁽³⁾	7,700		10,533		1,451
Other income/(expenses)
Share of results of equity investees	(730	)	1,330		183
Interest expense	(601	)	(600	)	(82	)
Others, net⁽⁴⁾	2,696		2,079		287
Income before tax	9,065		13,342		1,839
Income tax expenses	(1,700	)	(2,063	)	(285	)
Net income	7,365		11,279		1,554
Net income attributable to non-controlling interests shareholders	235		389		53
Net income attributable to the Company’s ordinary shareholders	7,130		10,890		1,501

Net income per share:
Basic	2.28		3.76		0.52
Diluted	2.27		3.59		0.50
Net income per ADS:
Basic	4.56		7.51		1.04
Diluted	4.53		7.19		0.99

JD.com, Inc.
Unaudited Interim Condensed Consolidated Statements of Operations
(In millions, except per share data)

	For the three months ended
	March 31, 2024			March 31, 2025			March 31, 2025
	RMB			RMB			US$

(2) Includes share-based compensation as follows:
Cost of revenues		(26	)		(7	)		(1	)
Fulfillment		(110	)		(71	)		(10	)
Marketing		(83	)		(62	)		(9	)
Research and development		(175	)		(217	)		(30	)
General and administrative		(365	)		(410	)		(56	)
Total		(759	)		(767	)		(106	)

(3) Includes amortization of business cooperation arrangement and intangible assets resulting from assets and business acquisitions as follows:
Fulfillment		(103	)		(49	)		(7	)
Marketing		(219	)		(279	)		(38	)
Research and development		(66	)		(36	)		(5	)
General and administrative		(32	)		—			—
Total		(420	)		(364	)		(50	)

(4) “Others, net” consists of interest income; gains/(losses) related to long-term investments without significant influence, including fair value changes, acquisitions or disposals gains/(losses), and impairments; government incentives; foreign exchange gains/(losses); and other non-operating income/(losses).

JD.com, Inc.
Unaudited Non-GAAP Net Income Per Share and Per ADS
(In millions, except per share data)

	For the three months ended
	March 31, 2024	March 31, 2025	March 31, 2025
	RMB	RMB	US$

Non-GAAP net income attributable to the Company’s ordinary shareholders	8,899	12,758	1,758

Non-GAAP net income per share:
Basic	2.85	4.40	0.61
Diluted	2.83	4.21	0.58

Non-GAAP net income per ADS:
Basic	5.69	8.80	1.21
Diluted	5.65	8.41	1.16

Weighted average number of shares:
Basic	3,126	2,898
Diluted	3,144	3,035

JD.com, Inc.
Unaudited Interim Condensed Consolidated Statements of Cash Flows and Free Cash Flow
(In millions)

	For the three months ended
	March 31, 2024		March 31, 2025		March 31, 2025
	RMB		RMB		US$

Net cash used in operating activities	(11,315	)	(18,262	)	(2,517	)
Net cash provided by investing activities	28,414		16,236		2,237
Net cash used in financing activities	(7,445	)	(7,288	)	(1,004	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(130	)	(345	)	(47	)
Net increase/(decrease) in cash, cash equivalents and restricted cash	9,524		(9,659	)	(1,331	)
Cash, cash equivalents, and restricted cash at beginning of period, including cash and cash equivalents classified within assets held for sale	79,451		115,716		15,946
Less: Cash, cash equivalents, and restricted cash classified within assets held for sale at beginning of period	(53	)	—*		—*
Cash, cash equivalents, and restricted cash at beginning of period	79,398		115,716		15,946
Cash, cash equivalents, and restricted cash at end of period, including cash and cash equivalents classified within assets held for sale	88,922		106,057		14,615
Less: Cash, cash equivalents, and restricted cash classified within assets held for sale at end of period	(3	)	—*		—*
Cash, cash equivalents and restricted cash at end of period	88,919		106,057		14,615


Net cash used in operating activities	(11,315	)	(18,262	)	(2,517	)
Less: Impact from consumer financing receivables included in the operating cash flow	(1,281	)	(1,018	)	(140	)
Less: Capital expenditures, net of related sales proceeds	(2,880	)	(2,323	)	(320	)
Capital expenditures for development properties	(1,360	)	(915	)	(126	)
Other capital expenditures	(1,520	)	(1,408	)	(194	)
Free cash flow	(15,476	)	(21,603	)	(2,977	)

*Absolute value is less than RMB1 million or US$1 million.

JD.com, Inc.
Supplemental Financial Information and Business Metrics (In RMB billions, except turnover days data)

	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025
Cash flow and turnover days
Operating cash flow – trailing twelve months (“TTM”)	69.8	74.0	52.8	58.1	51.1
Free cash flow – TTM	50.6	55.6	33.6	43.7	37.6
Inventory turnover days⁽⁵⁾ – TTM	29.0	29.8	30.4	31.5	32.8
Accounts payable turnover days⁽⁶⁾ – TTM	51.8	57.0	57.5	58.6	57.6
Accounts receivable turnover days⁽⁷⁾ – TTM	5.4	5.7	5.8	5.9	6.4

(5) TTM inventory turnover days are the quotient of average inventory over the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days.

(6) TTM accounts payable turnover days are the quotient of average accounts payable for retail business over the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days.

(7) TTM accounts receivable turnover days are the quotient of average accounts receivable over the immediately preceding five quarters, up to and including the last quarter of the period, to total net revenues for the last twelve months and then multiplied by 360 days. Presented are the accounts receivable turnover days excluding the impact from consumer financing receivables.

JD.com, Inc.
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In millions, except percentage data)

	For the three months ended
	March 31, 2024		March 31, 2025		March 31, 2025
	RMB		RMB		US$

Income from operations	7,700		10,533		1,451
Add: Share-based compensation	759		767		106
Add: Amortization of intangible assets resulting from assets and business acquisitions	309		252		35
Add: Effects of business cooperation arrangements	111		112		15
Non-GAAP income from operations	8,879		11,664		1,607
Add: Depreciation and other amortization	1,908		2,038		281
Non-GAAP EBITDA	10,787		13,702		1,888

Total net revenues	260,049		301,082		41,490

Non-GAAP operating margin	3.4	%	3.9	%

Non-GAAP EBITDA margin	4.1	%	4.6	%

JD.com, Inc.
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In millions, except percentage data)

	For the three months ended
	March 31, 2024		March 31, 2025		March 31, 2025
	RMB		RMB		US$

Net income attributable to the Company’s ordinary shareholders	7,130		10,890		1,501
Add: Share-based compensation	592		650		90
Add: Amortization of intangible assets resulting from assets and business acquisitions	143		186		26
Add: Reconciling items on the share of equity method investments⁽⁸⁾	370		964		133
Add: Impairment of goodwill, long-lived assets, and investments	558		437		60
(Reversal of)/Add: (Gain)/Loss from fair value change of long-term investments	(8	)	874		120
Reversal of: Gain on disposals/deemed disposals of investments and others	(22	)	(1,172	)	(162	)
Add: Effects of business cooperation arrangements	111		112		15
Add/(Reversal of): Tax effects on non-GAAP adjustments	25		(183	)	(25	)
Non-GAAP net income attributable to the Company’s ordinary shareholders	8,899		12,758		1,758

Total net revenues	260,049		301,082		41,490

Non-GAAP net margin attributable to the Company’s ordinary shareholders	3.4	%	4.2	%

(8) To exclude the GAAP to non-GAAP reconciling items on the share of equity method investments and share of amortization of intangibles not on their books.

__________________

1 The U.S. dollar (US$) amounts disclosed in this announcement, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this announcement is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of March 31, 2025, which was RMB7.2567 to US$1.00. The percentages stated in this announcement are calculated based on the RMB amounts.
2 See the sections entitled “Non-GAAP Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” for more information about the non-GAAP measures referred to in this announcement.
3 The number of ordinary shares outstanding as of December 31, 2024 was approximately 2,903 million shares.
4 JD Ecosystem is a closely integrated business network providing comprehensive service for customers and comprises the Company and certain affiliates who share the “JD” brand name, currently including Jingdong Technology Holding Co., Ltd. and Allianz Jingdong General Insurance Company Ltd..

The MIL Network –

May 13, 2025

MIL-OSI USA: Congressman Robert Aderholt Announces Over $1.9 Million in FAA Grants for Cullman and Albertville Airports
Source: United States House of Representatives – Congressman Robert Aderholt (AL-04)

Washington, D.C. – Congressman Robert Aderholt (AL-04) today announced that the Federal Aviation Administration (FAA) has awarded over $1.9 million in federal Airport Infrastructure Grants (AIG) to support critical improvements at two regional airports in Alabama’s 4th Congressional District.

“These federal investments in airport infrastructure are vital to supporting economic growth and public safety across North Alabama,” said Congressman Aderholt. “By upgrading and expanding our aviation facilities, we are ensuring they can continue to serve our communities for years to come. I’m pleased to see both Cullman and Albertville airports receiving these funds for important construction and modernization projects.”

Cullman Regional Airport – Folsom Field
- Grant Amount: $1,011,708
- Project: Construction of a new 600-foot Midfield Taxiway to accommodate increased aircraft activity. This grant funds Phase 2, which includes the construction phase of the project.
- Recipient: City and County of Cullman
- FAA Grant Number: 3-01-0022-037-2025
Albertville Regional Airport – Thomas J. Brumlik Field
- Grant Amount: $939,038
- Project: Reconstruction of runway and taxiway lighting on Runway 5/23 and Taxiway A, which have reached the end of their service life.
- Recipient: City of Albertville
- FAA Grant Number: 3-01-0004-038-2025
These grants are awarded under the Fiscal Year 2025 Airport Grant (AIG) program.

Ben Harrison, Director of Cullman Regional Airport, praised the funding and the collaborative effort behind the project:
“We are thankful for this grant and the opportunities it will provide to develop the airport for the next 10–15 years. After careful collaboration with the airport board, city council, county commission, ALDOT Aeronautics, the FAA, and our engineers, we have a good project that will help our entire community continue to advance forward and meet the ever-changing needs in aviation.”

“These grants will help ensure that local airports continue to meet modern safety standards and serve the needs of the community,” Aderholt added. “Airports like Cullman and Albertville are vital assets for rural areas, supporting both economic development and emergency services.”

###

MIL OSI USA News –
May 13, 2025
MIL-OSI USA: Congressman Robert Aderholt Announces Constituent Services Day in Blount County

Source: United States House of Representatives – Congressman Robert Aderholt (AL-04)

Oneonta, AL — Congressman Robert Aderholt is pleased to announce that James Manasco, Field Representative, will be available for Constituent Services Day in Oneonta to assist residents with issues involving federal agencies.

📍 Location: Blount County Courthouse
🗓️ Date: Wednesday, May 14, 2025
⏰ Time: 9:00 AM – 12:00 PM
📍 Address: 220 Second Avenue East, Oneonta, AL

“If you’re having trouble with a federal agency — whether it’s Social Security, Medicare, the VA, the IRS, or others — this is a great opportunity to get direct help from my office,” said Congressman Aderholt. “My staff is highly experienced and ready to assist anyone who needs help cutting through federal red tape.”

Please note: Congressman Aderholt’s office can only assist with matters involving federal agencies. We are not able to provide assistance with state or local government issues.

While walk-ins are welcome, appointments are preferred so we can better serve each person’s individual needs.

📞 To set up an appointment, please call 256-546-0201 or email james.manasco@mail.house.gov.

Helping constituents navigate federal services is a top priority for Congressman Aderholt and his team.

MIL OSI USA News –

May 13, 2025
MIL-OSI USA: Congressman Robert Aderholt Announces Constituent Services Day in Marshall County

Source: United States House of Representatives – Congressman Robert Aderholt (AL-04)

Guntersville, AL — Congressman Robert Aderholt is pleased to announce that James Manasco, Field Representative, will be available for Constituent Services Day in Guntersville to assist residents with issues involving federal agencies.

📍 Location: Marshall County Legislative Office
🗓️ Date: Monday, May 12, 2025
⏰ Time: 9:00 AM – 12:00 PM
📍 Address: 524 Gunter Avenue, Guntersville, AL

“If you’re having trouble with a federal agency — whether it’s Social Security, Medicare, the VA, the IRS, or others — this is a great opportunity to get direct help from my office,” said Congressman Aderholt. “My staff is highly experienced and ready to assist anyone who needs help cutting through federal red tape.”

Please note: Congressman Aderholt’s office can only assist with matters involving federal agencies. We are not able to provide assistance with state or local government issues.

While walk-ins are welcome, appointments are preferred so we can better serve each person’s individual needs.

📞 To set up an appointment, please call 256-546-0201 or email james.manasco@mail.house.gov.

Helping constituents navigate federal services is a top priority for Congressman Aderholt and his team.

MIL OSI USA News –

May 13, 2025
MIL-OSI USA: LEADER JEFFRIES: “DONALD TRUMP AND HOUSE REPUBLICANS ARE TRYING TO ENACT ONE OF THE LARGEST HEALTHCARE CUTS IN AMERICAN HISTORY”

Source: United States House of Representatives – Congressman Hakeem Jeffries (8th District of New York)

Today, Democratic Leader Hakeem Jeffries appeared on MSNBC’s The Weeknight where he emphasized that Democrats will continue pushing back on the reckless Republican scheme to rip away the healthcare and nutritional assistance of the American people.

ALICIA MENENDEZ: Joining us now, House Democratic Leader Hakeem Jeffries of New York.

SYMONE SANDERS-TOWNSEND: Well, sir, I know we’re going to get to the tariffs in a second, but first your reaction to what we’re seeing now from the bill that Republicans in the House of Representatives have put out from the Ways and Means Committee writ large. This is the bill, if you will, and there are lots of thoughts going around about it. But your reaction, sir. Is this what you expected from your Republican colleagues?

LEADER JEFFRIES: Well, good evening. Great to be with everyone. Donald Trump and House Republicans promised that they were going to lower the high cost of living in the United States of America. They, of course, have failed to do that. Costs aren’t going down. They’re going up. So that’s a broken promise. Instead, they are trying to enact one of the largest healthcare cuts in American history, if not the largest. At this point, it looks like $715 billion in cuts to Medicaid that will devastate children and families and seniors and everyday Americans with disabilities. Hospitals could close. Nursing homes could shut down. And the reality is, because of this House Republican bill, if it were to pass and become law, people will die. And this is all being done in service of trying to provide a massive tax break to MAGA billionaire donors like Elon Musk, and give almost nothing to everyday Americans that Donald Trump and House Republicans promised they would focus on when they lied repeatedly on the campaign trail last year.

MICHAEL STEELE: You know, Mr. Leader, on Saturday, the Committee for a Responsible Federal Budget noted the deficit impact of this bill is well above the Ways and Means allowable increase of 4 to 4.5 trillion, so lawmakers are going to need to make adjustments, including offsets and so forth. You have NBC news noting Speaker Johnson convened a video call on Monday with members of both the tax writing Ways and Means Committee and the SALT Caucus, group of blue state Republicans, to sort of address that. So you have the reality, sir, that they can’t control the numbers the way they like in order—because of the fact that, to your point, they’re going to have to make some steep cuts in areas that they’re saying they’re not going to make those cuts. And then you have unresolved other issues among the more middle of the road, conservative, moderate Republicans on SALT and other issues. How do you see this playing? How does this get shaped in the House ultimately? Particularly the Democrats decide to go, all right, you guys put your bill on the table and see what happens.

LEADER JEFFRIES: Well, there’s a great deal of uncertainty. You have House Republicans fighting with House Republicans, House Republicans fighting with Senate Republicans. They don’t know whether to take orders from Donald Trump or Elon Musk or both. The whole thing is in disarray. They’ve decided to go it alone with this one big ugly bill and try to jam these far-right extremist policies down the throats of the American people. And, you know, we’ll see what happens this week. We’re going to continue to press our case as Democrats that we are defending the healthcare of the American people. Republicans, of course, are trying to undermine it. And this is not inconsistent with what they’ve repeatedly tried to do, which is take away healthcare from the American people. What’s egregious about this situation is that it’s all being done in service of trying to reward the wealthy, the well-off and the well-connected. And then to make matters worse of course as you indicated, Michael, they are further adding to our nation’s debt and deficit. These people aren’t fiscally responsible. They’re fiscally irresponsible. They need to stop lying and pretending that the case is otherwise to the American people.

ALICIA MENENDEZ: So they released this sweeping tax plan today, except they’ve not actually dealt with, as Michael referenced there, the real friction point here, which is SALT. Let me read you just a little bit of the reporting. A legislative text currently calls for the SALT deduction cap to be hiked to $30,000, and applies only to those who make up to $400,000 a year. One House Republican close to the process told NBC News there would be enough GOP votes to sink the bill if that SALT figure remains in the final product. I want you to game this out with me. If those, you know, Republicans who say that SALT is a deal breaker because they represent districts where that is a deal breaker for their voters, let’s say they fold. Let’s say they decide not to hold the line, they vote with Trump on this tax plan, on this budget. Do you currently believe you can flip their seats?

LEADER JEFFRIES: Yes. And you know, these Republicans who have been, you know, allegedly advocating to address the situation with State and Local Tax Deduction are all phonies. Understand that in 2017, it was Republicans through the GOP Tax Scam that imposed the tax cap, the SALT cap, $10,000 on everyday Americans and as a result, have cost people in states across the country, in places like New York, in New Jersey, in Connecticut, in Illinois, Pennsylvania and California, amongst others, thousands of dollars a year in additional cost. That is because of what Republicans did in 2017. And so, if nothing were to happen with respect to the State and Local Tax Deduction provision this year, then the cap would go away, and it would provide thousands of dollars of additional income to everyday Americans. And so, the notion that Republicans are going to try to get away with a $30,000 per year cap—that’s not helping middle-class Americans across the country. And these so-called swing seat Republicans in these blue-leaning states will be held accountable next year, and many will lose.

SYMONE SANDERS-TOWNSEND: Before we get to the tariffs. Mr. Leader, there is reporting from March 31 in the Guardian that talks about how Republican districts were the ones that have benefited the most from these clean energy spending bills. This is from the bills that were passed in the Biden administration, the tax rates Republicans who now control Congress have to decide if they will eliminate, the IRA’s grants and, more crucially, the tax credits that have spurred a boom in clean energy activity in their own districts. A total of 78% of the spending has gone to Republican-held suburban and rural districts across the U.S. That’s according to data from Atlas Public Policy. In this current bill that we now know about, and scanning through it, there are reductions here that will hit those Republicans in those districts. There’s also a severe cut to Medicaid that the—and I’m just going to read here—the Congressional Budget Office on Sunday night said that 8.6 million people would go uninsured if the health portions of this package become law. Do you have four Republicans, five Republicans or any of the, you know, 12 Republicans, frankly, that have signed letters indicating that they are concerned about the deficit or the Republicans that have signed letters indicating that they’re concerned about cuts to Medicaid, who are willing to vote with you against this bill? What does your whip count tell you?

LEADER JEFFRIES: Well, you know, that remains to be seen, whether these Republicans who have taken all these public positions, because they are on the run in the communities they represent all across the country. The American people are unhappy with them and the failure of Republicans to be a check and balance on an out-of-control executive branch. They’re just functioning as a rubber stamp for Donald Trump’s extreme policies. But this is going to be the ultimate test. Now, with respect to the clean energy tax credits, and you correctly point out Symone, that many of the provisions in the Inflation Reduction Act, standing up a clean energy economy, creating clean energy jobs and also cheaper energy, have benefited red districts and red communities and red states across the country. So, to vote to repeal these things is a vote to undermine the very constituents that you represent. Now, there were 21 Republicans who signed a letter saying don’t touch the clean energy tax credits. Where are those 21 Republicans right now? All it takes is a fraction of them to actually keep their word as communicated to the people that they represent, and the bill will fail. And so, you’ve got challenges with respect to fiscal irresponsibility, challenges as it relates to Medicaid, challenges as it relates to State and Local Tax Deduction, challenges as it relates to the clean energy tax credits. All you need are three or four Republicans in either the House or the Senate to just keep their word to their constituents, and this bill will fall. We’re going to continue to strongly oppose these egregious provisions that don’t help the American people, they hurt the American people, and press our Republican colleagues to have some courage and some backbone for their constituents and do the same.

MICHAEL STEELE: So there’s an interesting—the politics here is very interesting, so I love Symone’s question because it really just kind of reframes some realities that I think Democrats are going to have to work through. And one of them, and what you’re starting to hear on the streets right now is that the Republicans are doing this little Artful Dodger kind of game where they’re, you know, they’re now talking about, oh, we’re going to increase taxes on the wealthiest Americans. And Trump is floating that out there. And, of course, you’ve got a whole lot of reminiscent playback to ‘read my lips, no new taxes’ from George Bush 41. But now, you have the president also on Monday issuing an executive order asking drug makers to voluntarily reduce the prices of key medicines in the United States, but the order cites no obvious legal authority to mandate lower prices with this executive order. Trump also opted not to propose measures that could have more teeth, such as calling for his administration to work with Congress on legislation or writing regulations to change how government health programs pay for some drugs. That’s not the point, right? The point is, hey, I’m cutting drug prices. So do you see politically, the Republicans, not so much legislatively doing anything with teeth, but rather framing political narratives that make it more difficult for Democrats, as Symone offered up a little bit before, to go after some of those seats that could be on the chopping block otherwise.

LEADER JEFFRIES: Well, they’re certainly going to try, but the reality is the core promise that Donald Trump and Republicans made to the American people was that they were going to improve the economy, and they inherited one that was moving in the right direction. The big challenge was the high cost of living in the United States of America. It’s a challenge that we need to tackle. They promised that costs would go down on day one, that they would address inflation. Costs haven’t gone down, they’re going up. Inflation is going up. And a lot of it has to do with Trump’s reckless mismanagement of the economy, particularly as it relates to the on-again, off-again tariffs and the mess that he has made with respect to the American economy. And so, fundamentally, no matter how much Republicans try to distract from that reality, they will be held accountable for their failure to keep their word, for their failure to lower the high cost of living and, in fact, to actually increase costs and make life more unaffordable for everyday Americans. And as you pointed out, with respect to this so-called executive order, it has no force of law. And so, it’s not a serious effort to lower costs. If there was a serious effort, we’d actually have seen up until this point, more than 100 days into this administration, a single bill that was actually designed to address the high cost of living in the United States of America. Instead, we get legislation to try to rename the Gulf of Mexico.

ALICIA MENENDEZ: Leader Jeffries, you referenced tariffs so I’ll allow this to be the last question. China took a tough stance on the threat of increased tariffs from the U.S. They managed to bring that threat down without any real concessions. If you are the Chinese, what have you learned about the Art of the Deal?

LEADER JEFFRIES: China punked the administration and the administration backed down. That’s no surprise because we’ve seen that happen over and over and over again.

ALICIA MENENDEZ: House Democratic Leader Hakeem Jeffries, thank you so much for being with us.

Full interview can be watched here.

###

MIL OSI USA News –

May 13, 2025
MIL-OSI USA: New Hampshire Congressional Delegation Celebrates Small Business Owners and Entrepreneurs at Small Business Administration’s Annual Awards

US Senate News:

Source: United States Senator for New Hampshire Jeanne Shaheen
**Annual National Small Business Week awards recognize achievements and contributions of SBA-assisted individuals and businesses**
(Manchester, NH) – U.S. Senators Jeanne Shaheen (D-NH) and Maggie Hassan (D-NH), along with U.S. Representatives Chris Pappas (NH-01) and Maggie Goodlander (NH-02), today celebrated Granite State small business owners and entrepreneurs at the Small Business Administration’s (SBA) annual National Small Business Week awards at the Manchester Historic Association’s Millyard Museum. The annual awards recognize the outstanding achievements and contributions of individuals and businesses that have been supported by the SBA. Click here to view photos from the event.
“I was glad to attend today’s ceremony to celebrate the extraordinary Granite State small businesses being recognized. At the same time, I’m very concerned by the Trump administration’s proposed budget which would eliminate so many of the programs that support these businesses dealing with tariffs and economic uncertainty,” said Senator Shaheen, a member of the U.S. Senate Committee on Small Business and Entrepreneurship. “We need to protect and fund SBA’s entrepreneurial development programs so that we can keep all of our small businesses robust in the state and ensure that we continue to grow and provide good jobs for the workers of New Hampshire.”
“I was grateful to join small business owners from across our state this morning to celebrate the incredible contribution that small businesses make to our communities,” said Senator Hassan. “As small businesses face rising costs and the chaos and uncertainty of ongoing tariffs, I will continue to work to support the SBA and its efforts to lower costs for New Hampshire small businesses. I applaud today’s award winners and am grateful for all of the small business owners who choose to work in New Hampshire and call our state home.”
“I want to share my heartfelt congratulations with this year’s award winners and honorees,” said Congressman Chris Pappas. “Small businesses are the backbone of our state’s economy, but they’re more than that. They make up the fabric of our state and the character of our communities. I know how challenging things can be, even in the best of times, and I will always do everything I can to support our small businesses and create an economic environment that will help our businesses grow and cut costs.”
“New Hampshire small businesses are the backbone of our communities and our economy,” said Congresswoman Goodlander, a member of the House Committee on Small Business. “This morning in Manchester, it was an honor to join the Small Business Awards Ceremony to celebrate the achievements, resilience, and innovation of incredible entrepreneurs across our state. I am proud to advocate for New Hampshire’s small businesses in Congress and to bring their voices to the Small Business Committee.”
The Granite State recipients of the 2025 Small Business Awards include:
New Hampshire Small Business Person of the Year: Dr. Tanya Lawson, Inbloom Health + Medispa, Londonderry
Veteran-Owned Small Business of the Year: Russ Collins, Home Innovations Corp., Derry
Woman-Owned Small Business of the Year: Karen Jenovese, Swim NH LLC , Concord
Financial Services Champion of the Year for NH and NE: Rick Dassatti, SCORE Granite Region, Manchester
Small Business Manufacturer of the Year: Josh Velasquez, Shire’s Naturals, Peterborough
Home-Based Business of the Year: Hailee Grisham Hampton, Hurry Slow Hat Co., Littleton
Young Entrepreneur: Sabrina MacDowell, Pampered Pup LLC, Candia
Micro-Enterprise: Bret Lincoln, Lincoln Fencing, Epping
Senator Shaheen is helping lead efforts in Congress to mitigate the harmful impacts of President Trump’s policies on small businesses and consumers. Just before President Trump took office, Shaheen introduced the Protecting Americans from Tax Hikes on Imported Goods Act which would limit the president’s ability to leverage sweeping tariffs that increase costs for consumers and families. In recent months, Shaheen has traveled across the Granite State to visit businesses including Chatila’s Bakery, C&J, DCI Furniture, Mount Cabot Maple, American Calan Inc. and NH Ball Bearings to hear directly from Granite Staters impacted by the administration’s trade war.

MIL OSI USA News –

May 13, 2025
MIL-OSI USA: Tuberville, Barrasso Push for Pro-Growth Tax Reductions, Lower Prices for Small Businesses

US Senate News:

Source: United States Senator Tommy Tuberville (Alabama)
WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) joined U.S. Senator John Barrasso in introducing The Growing America’s Small Businesses and Manufacturing Act. This legislation will boost investment in further developing America’s manufacturing capabilities and help small businesses, farmers, and producers purchase the equipment and supplies they need to build their operations and support their employees.
Specifically, this bill will reduce the tax burden for business owners purchasing equipment—including machinery, farming equipment, energy infrastructure, building upgrades, commercial vehicles, mining equipment, and more. This allows business owners to invest more into employee salaries, materials, and other critical business expenditures.
“I’ve said it many times—small businesses are the heart and soul of the American economy,” said Sen. Tuberville. “Enabling Alabama’s over 420,000 small businesses to thrive is one of my top priorities here in Washington. Small businesses face an uphill challenge with heightened regulation and insane prices. Reducing taxes for these business owners will go a long way in lifting the burden they often face when purchasing crucial equipment needed to keep their doors open.”
“Wyoming’s small businesses are what keeps our economy going strong. We want to make sure they have every opportunity to succeed,” said Sen. Barrasso. “Right now, they face an uphill battle with high prices and a mountain of new regulations. The Growing America’s Small Businesses and Manufacturing Act will go a long way in helping Wyoming’s farmers, ranchers and small businesses expand their operations, better compete and hire more workers.”
Sens. Tuberville and Barrasso are joined by Sens. Marsha Blackburn (R-TN), Katie Britt (R-AL), Shelley Moore Capito (R-WV), Ted Cruz (R-TX), Steve Daines (R-MT), John Hoeven (R-ND), James Lankford (R-OK), Pete Ricketts (R-NE), Tim Sheehy (R-MT), and Todd Young (R-IN) in cosponsoring the legislation.
National Association of Manufacturers, National Federation of Independent Business, Restore American Investment Now (RAIN) Coalition, Business Roundtable, USTelecom, American Forest & Paper Association, American Exploration & Production Council, National Restaurant Association, Equipment Leasing and Finance Association, National Railroad Construction and Maintenance Association, Small Business Investor Alliance, American Car Rental Association, National Tooling and Machining Association, Forging Industry Association, American Mold Builders Association, Independent Electrical Contractors, Industrial Fasteners Institute, Precision Machined Products Association, Non-Ferrous Founders’ Society, North American Die Casting Association, and Precision Metalforming Association endorsed the legislation.
Read full text of the legislation here.
BACKGROUND:
The Growing America’s Small Businesses and Manufacturing Actdelivers two pro-growth tax proposals that will boost investment in capital-intensive industries like manufacturing, energy production, and agriculture.
Expanded Business Interest Deduction:
The first reform addresses the additional limitation on business interest deductions that went into effect in 2022, restoring business flexibility and investment potential.
The bill revises the limitation from 30% of a business’s Earnings Before Interest and Taxes (EBIT), back to 30% of Earnings Before Interest, Taxes, Depreciation, Amortization, and depletion (EBITDA).
This protects businesses from being punished for investing in new machinery, capital equipment, mining, drilling, and research and development (R&D).
Enhanced Small Business Expensing:
The second provision expands Section 179, which allows taxpayers to deduct the cost of certain business assets in the year they are purchased rather than depreciating them over time.
Under the 2017 Tax Cuts and Jobs Act, the maximum deduction amount was increased to $1 million from $500,000, helping small businesses acquire the equipment needed to expand operations.
The bill builds on this success by lifting the deduction cap to $2.5 million, accelerating small businesses’ access to capital.
The provision covers a wide range of eligible expenses, including machinery, mining tools, farming implements, energy production equipment, commercial vehicles, building upgrades, and other critical investments.
MORE:
Tuberville, Colleagues Celebrate Small Businesses During Small Business Week
Tuberville, Crapo Introduce Legislation to Level Playing Field for Alabama Sporting Equipment Businesses
Tuberville Reintroduces Legislation to Repeal Corporate Transparence Act, Protect Small Businesses
Tuberville Fights to Give Small Businesses a Tax Break
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

MIL OSI USA News –

May 13, 2025
MIL-OSI USA: Fischer Applauds House Ways & Means Committee for Including Paid Family and Medical Leave Tax Credit in Tax Bill

US Senate News:

Source: United States Senator for Nebraska Deb Fischer
Fischer established the first-ever nationwide PFML in 2017 Tax Cuts & Jobs Act; bill builds upon 2017 law to better serve working familiesToday, U.S. Senator Deb Fischer (R-Neb.) released the following statement after the House Ways & Means Committee unveiled a tax bill which includes her Paid Family and Medical Leave Tax Credit Extension and Enhancement Act:“It is welcome news the House Ways and Means Committee has produced a tax bill that includes my Paid Family and Medical Leave tax credit, which helps businesses of all sizes offer PFML plans to their employees. Thank you to my House counterpart and Ways and Means Committee Member, Rep. Randy Feenstra, for working to get this provision inserted. I look forward to getting this important bill over the finish line to support America’s working families,” said Fischer.Fischer’s work on Paid Family and Medical Leave:Fischer and Senator Angus King (I-Maine) established the country’s first-ever nationwide PFML policy, which was included in the 2017 Tax Cuts and Jobs Act and implemented in 2018. Fischer and King reintroduced the bill in February, which builds upon the 2017 law to better serve working families. It also provides additional ways for businesses to qualify for the paid leave tax credit, such as paying for PFML insurance products, and requires greater outreach efforts to raise awareness about the credit.

MIL OSI USA News –

May 13, 2025
MIL-OSI Security: Rhode Island Business Owner Pleads Guilty to Money Laundering Conspiracy and Obstruction of Justice

Source: Office of United States Attorneys

Defendant used “virtual CFO” business to create shell companies and launder over $35 million

BOSTON – The owner of a “virtual CFO” business from Rhode Island pleaded guilty on May 8, 2025 in federal court in Boston to laundering tens of millions of dollars in proceeds from internet fraud schemes by creating shell companies and opening fraudulent business bank accounts.

Craig Clayton, 75, of Cranston, R.I., pleaded guilty to one count of money laundering conspiracy and one count of obstruction of justice. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 13, 2025. In February 2023, Clayton was arrested and charged by criminal complaint.

From 2019 to 2021, Clayton and others used his accounting and “virtual CFO” business, Rochart Consulting, as a front to launder the proceeds of internet fraud schemes. As part of the conspiracy, Clayton founded shell companies to open business bank accounts in Rhode Island and Massachusetts, through which he laundered the proceeds of internet fraud schemes on behalf of his foreign-based clients. In total, Clayton laundered more than $35 million.

In communications with one of his Rochart co-conspirators, Clayton stated that because they were “money mules complicit in [Rochart’s clients’] offenses” that “opens [them] up to charges.” Additionally, in encrypted communications with one of his client co-conspirators, Clayton expressed concern that his phone was “tapped” by law enforcement and sought to obtain “dirt” on a victim who had reported the fraud scheme in order to “distract the police.” In another exchange with a co-conspirator, Clayton proposed moving their electronic communications to Signal, noting that WhatsApp “can be tapped.”

When banks and law enforcement began to investigate Rochart, Clayton falsely told investigators and bank personnel that his shell companies were legitimate businesses, among other things. Further, during a recorded conversation with an undercover law enforcement agent posing as a potential client, Clayton noted that Rochart does not “deal with anyone who has law enforcement connections.” After he became aware that a federal grand jury was investigating him, Clayton attempted to obstruct the ongoing investigation by making several false statements to federal agents during an interview.

The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the proceeds, whichever is greater. The charge of obstruction of justice provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Leah B. Foley; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Jennifer De La O, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by the Internal Revenue Service, Criminal Investigation and the United States Postal Inspection Service. Assistant United States Attorneys Ian J. Stearns and Kaitlin R. O’Donnell of the Securities, Financial & Cyber Fraud Unit and Alexandra Amrhein of the Asset Recovery Unit are prosecuting the case.

MIL Security OSI –

May 13, 2025

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

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, May 12, 2025 (GLOBE NEWSWIRE) — HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced amended financial and operating results for the quarter ended March 31, 2025, provided an updated 2025 development outlook and increased production guidance. Please note that in the Unaudited Condensed Consolidated Statements of Cash Flows table, the amount of Repayments under Term Loan Credit Agreement for 2025 was amended from (120,000) to (30,000). The amended release follows:

First Quarter 2025 Highlights

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

Recent Events

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

Statement from Jack Hightower, Chairman and CEO:

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

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

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

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

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

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

First Quarter 2025 Operational Update

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

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

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

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

First Quarter 2025 Financial Results

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

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

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

Hedging

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

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

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

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

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

HighPeak added the following natural gas swaps in April 2025.

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

Dividends

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

Conference Call

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

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

About HighPeak Energy, Inc.

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

Cautionary Note Regarding Forward-Looking Statements

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

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

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

Use of Projections

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

Drilling Locations

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

HighPeak Energy, Inc. Unaudited Condensed Consolidated Balance Sheet Data (In thousands)
	March 31, 2025			December 31, 2024
Current assets:
Cash and cash equivalents	$	51,619		$	86,649
Accounts receivable		78,356			85,242
Inventory		8,706			10,952
Prepaid expenses		8,301			4,587
Derivative instruments		5,620			7,582
Total current assets		152,602			195,012
Crude oil and natural gas properties, using the successful efforts method of accounting:
Proved properties		4,140,881			3,959,545
Unproved properties		71,359			70,868
Accumulated depletion, depreciation and amortization		(1,293,949	)		(1,184,684	)
Total crude oil and natural gas properties, net		2,918,291			2,845,729
Other property and equipment, net		3,141			3,201
Other noncurrent assets		19,047			19,346
Total assets	$	3,093,081		$	3,063,288

Current liabilities:
Current portion of long-term debt, net	$	120,000		$	120,000
Accounts payable – trade		66,473			74,011
Accrued capital expenditures		53,240			35,170
Revenues and royalties payable		27,993			26,838
Other accrued liabilities		22,065			22,196
Derivative instruments		8,275			5,380
Operating leases		821			719
Advances from joint interest owners		—			316
Total current liabilities		298,867			284,630
Noncurrent liabilities:
Long-term debt, net		902,844			928,384
Deferred income taxes		242,337			232,398
Asset retirement obligations		15,058			14,750
Operating leases		581			670
Commitments and contingencies

Stockholders’ equity
Common stock		13			13
Additional paid-in capital		1,166,786			1,166,609
Retained earnings		466,595			435,834
Total stockholders’ equity		1,633,394			1,602,456
Total liabilities and stockholders’ equity	$	3,093,081		$	3,063,288

HighPeak Energy, Inc. Unaudited Condensed Consolidated Statements of Operations (in thousands)
	Quarter Ended March 31,
	2025			2024
Operating revenues:
Crude oil sales	$	246,424			$	282,369
NGL and natural gas sales		11,024				5,395
Total operating revenues		257,448				287,764
Operating costs and expenses:
Crude oil and natural gas production		35,562				30,271
Production and ad valorem taxes		15,152				14,402
Exploration and abandonments		264				498
Depletion, depreciation and amortization		109,325				130,850
Accretion of discount		244				239
General and administrative		6,345				4,685
Stock-based compensation		177				3,798
Total operating costs and expenses		167,069				184,743
Other expense		—				1
Income from operations		90,379				103,020
Interest income		810				2,392
Interest expense		(36,988	)			(43,634	)
Loss on derivative instruments, net		(7,927	)			(53,043	)
Income before income taxes		46,274				8,735
Provision for income taxes		9,939				2,297
Net income	$	36,335			$	6,438

Earnings per share:
Basic net income	$	0.26			$	0.05
Diluted net income	$	0.26			$	0.05

Weighted average shares outstanding:
Basic		123,913				125,696
Diluted		127,213				129,641

Dividends declared per share	$	0.04			$	0.04

HighPeak Energy, Inc. Unaudited Condensed Consolidated Statements of Cash Flows (in thousands)
	Quarter Ended March 31,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	36,335		$	6,438
Adjustments to reconcile net income to net cash provided by operations:
Provision for deferred income taxes		9,939			1,688
Loss on derivative instruments		7,927			53,043
Cash paid on settlement of derivative instruments		(3,071	)		(5,148	)
Amortization of debt issuance costs		2,034			2,053
Amortization of discounts on long-term debt		2,426			2,453
Stock-based compensation expense		177			3,798
Accretion expense		244			239
Depletion, depreciation and amortization		109,325			130,850
Exploration and abandonment expense		4			274
Changes in operating assets and liabilities:
Accounts receivable		6,886			(14,414	)
Prepaid expenses, inventory and other assets		(1,314	)		(4,722	)
Accounts payable, accrued liabilities and other current liabilities		(13,860	)		(5,113	)
Net cash provided by operating activities		157,052			171,439
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to crude oil and natural gas properties		(179,819	)		(147,698	)
Changes in working capital associated with crude oil and natural gas property additions		25,172			1,705
Acquisitions of crude oil and natural gas properties		(2,517	)		(2,171	)
Proceeds from sales of properties		570			—
Other property additions		—			(59	)
Net cash used in investing activities		(156,594	)		(148,223	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments under Term Loan Credit Agreement		(30,000	)		(30,000	)
Dividends paid		(4,957	)		(5,050	)
Dividend equivalents paid		(531	)		(530	)
Repurchased shares under buyback program		—			(8,764	)
Debt issuance costs		—			(7	)
Net cash used in financing activities		(35,488	)		(44,351	)
Net decrease in cash and cash equivalents		(35,030	)		(21,135	)
Cash and cash equivalents, beginning of period		86,649			194,515
Cash and cash equivalents, end of period	$	51,619		$	173,380

HighPeak Energy, Inc. Unaudited Summary Operating Highlights
	Quarter Ended March 31,
	2025			2024
Average Daily Sales Volumes:
Crude oil (Bbls)		38,222			39,959
NGLs (Bbls)		7,724			5,147
Natural gas (Mcf)		43,096			27,733
Total (Boe)		53,128			49,729

Average Realized Prices (excluding effects of derivatives):
Crude oil per Bbl	$	71.64		$	77.65
NGL per Bbl	$	24.21		$	24.94
Natural gas per Mcf	$	2.34		$	1.33
Total per Boe	$	53.84		$	63.59

Margin Data ($ per Boe):
Average price, excluding effects of derivatives	$	53.84		$	63.59
Lease operating expenses		(6.61	)		(6.30	)
Expense workovers		(0.83	)		(0.39	)
Production and ad valorem taxes		(3.17	)		(3.18	)
General and administrative expenses		(1.33	)		(1.04	)
	$	41.90		$	52.68

HighPeak Energy, Inc. Unaudited Earnings Per Share Details
	Quarter Ended March 31,
	2025			2024
Net income as reported	$	36,335		$	6,438
Participating basic earnings		(3,542	)		(605	)
Basic earnings attributable to common shareholders		32,793			5,833
Reallocation of participating earnings		47			1
Diluted net income attributable to common shareholders	$	32,840		$	5,834

Basic weighted average shares outstanding		123,913			125,696
Dilutive warrants and unvested stock options		1,146			1,786
Dilutive unvested restricted stock		2,154			2,159
Diluted weighted average shares outstanding		127,213			129,641

Net income per share attributable to common shareholders:
Basic	$	0.26		$	0.05
Diluted	$	0.26		$	0.05

HighPeak Energy, Inc. Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations (in thousands)
	Quarter Ended March 31,
	2025			2024
Net income	$	36,335		$	6,438
Interest expense		36,988			43,634
Interest income		(810	)		(2,392	)
Income tax expense		9,939			2,297
Depletion, depreciation and amortization		109,325			130,850
Accretion of discount		244			239
Exploration and abandonment expense		264			498
Stock based compensation		177			3,798
Derivative related noncash activity		4,856			47,895
Other expense		—			1
EBITDAX		197,318			233,258
Cash interest expense		(32,528	)		(39,128	)
Other (a)		550			1,558
Discretionary cash flow		165,340			195,688
Changes in operating assets and liabilities		(8,288	)		(24,249	)
Net cash provided by operating activities	$	157,052		$	171,439
(a) Includes interest income net of current tax expense, other expense and operating portion of exploration and abandonment expenses.

HighPeak Energy, Inc. Unaudited Reconciliation of Net Cash Provided by Operations and Free Cash Flow (in thousands)
	Quarter Ended March 31,
	2025			2024
Net cash provided by operating activities	$	157,052		$	171,439
Add back: net change in operating assets and liabilities		8,288			24,249
Operating cash flow before working capital changes		165,340			195,688
Additions to crude oil and natural gas properties		(179,819	)		(147,698	)
Changes in working capital associated with crude oil and natural gas property additions		25,172			1,705
Free cash flow	$	10,693		$	49,695

HighPeak Energy, Inc. Unaudited Reconciliation of Net Income to Adjusted Net Income (in thousands, except per share data)
	Quarter Ended March 31, 2025
	Amounts			Amounts per Diluted Share
Net income	$	36,335		$	0.26
Derivative loss, net		7,927			0.06
Stock-based compensation		177			0.00
Income tax adjustment for above items *		(1,741	)		(0.01	)

Adjusted net income	$	42,698		$	0.31

* Assuming 21% statutory tax rate

Investor Contact:

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

Source: HighPeak Energy, Inc.

The MIL Network –

May 13, 2025

MIL-OSI USA: Luján Statement on Congressional Republicans Pushing Largest Medicaid Cut In History, Kicking Millions Off SNAP and Nutrition Programs

US Senate News:

Source: United States Senator Ben Ray Luján (D-New Mexico)
Nonpartisan CBO Analysis Shows All Savings from Republican Bill Come from Benefit Cuts, Terminating Health Coverage, and Payment Cuts for Doctors, Hospitals, Nursing Homes, and Home Care Providers
House Committees Meeting This Week to Advance Tax Scam, Gut Medicaid and Nutrition Programs
Washington, D.C. – U.S. Senator Ben Ray Luján (D-N.M.) issued the following statement on Congressional Republicans advancing a reconciliation bill that would strip millions of Americans of their health insurance and access to vital nutrition programs:
“Congressional Republicans are moving forward this week with the Trump Tax Scam 2.0 – and in the process, they’re kicking millions off their health insurance, gutting vital nutrition assistance, and putting the health and well-being of the most vulnerable Americans at risk. All of this is being done to pass yet another tax scam for the wealthiest Americans and corporate interests.
“This plan raises costs for families and rips opportunities away. From seniors in nursing homes and children in school meal programs, to veterans needing care, these drastic cuts will leave Americans behind. This playbook isn’t new – and once again, it’s hardworking Americans who will pay the price. Democrats will fight back to protect Medicaid, SNAP, and the dignity that all Americans deserve.”

MIL OSI USA News –

May 13, 2025
MIL-OSI USA: Chinese Company and Three Chinese Nationals Indicted for Unlawfully Importing Pill-Making Equipment Used to Manufacture Controlled Substances

Source: US State of North Dakota

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

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

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

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

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

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

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

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

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

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

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

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

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

MIL OSI USA News –

May 13, 2025
MIL-OSI Security: Chinese Company and Three Chinese Nationals Indicted for Unlawfully Importing Pill-Making Equipment Used to Manufacture Controlled Substances

Source: United States Attorneys General

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

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

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

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

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

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

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

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

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

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

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

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

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

MIL Security OSI –

May 13, 2025
MIL-OSI USA: SCHUMER – WITH WESTERN NY RELIGIOUS LEADERS & FOOD BANKS – SOUNDS ALARM THAT UNDER GOP PLAN TO CUT SNAP – AMERICA’S LARGEST ANTI-HUNGER PROGRAM – THOUSANDS OF KIDS, SENIORS, & FAMILIES COULD GO…

US Senate News:

Source: United States Senator for New York Charles E Schumer
Already 8,000 Cases Of Food For FeedMore WNY Have Already Been Canceled Due To Trump’s Cruel USDA Cuts – Now GOP Wants To Steal Up To $230 Billion From SNAP To Fund Trump’s Tax Breaks For Corporations & Billionaires
Schumer, With Church Leaders & Advocates, Say This Double Whammy Could Hurtle Families To A Hunger Crisis, Impacting 208,000+ In WNY, Millions Nationwide; Demands GOP Block Cruel Cut To SNAP And Protect Anti-Hunger Programs
Schumer: No Child Should Go To Bed Hungry. This Is Not A Partisan Issue; This Is A Moral Issue
As Congressional Republicans look to advance the largest potential cut to the anti-hunger program SNAP in American history this week, U.S. Senator Chuck Schumer stood with Western NY religious leaders, food banks, & farmers to issue a stark warning and demand action against the devastating proposed $230 billion SNAP cut to fund Trump’s tax cuts for corporations & billionaires, that would leave thousands of seniors, families and children hungry. The senator joined with church leaders and hunger advocates to say how this is a moral issue that we should all unite to stop, and Schumer called on the administration to reverse its hunger program cuts and for the NY House Republicans to stand against stealing from SNAP, which over 208,000 in Western NY rely on for food.
“No child should ever go to bed hungry. But Trump’s slashing of anti-hunger programs at the USDA has already cancelled 8,000 cases of food for FeedMore Western NY. Now, House Republicans are trying to rush through the budget process and make the largest cut to SNAP in history. With food insecurity on the rise, this is a double whammy that could hurtle families to a hunger crisis,” said Senator Schumer. “Stealing from SNAP to pay for Trump’s tax breaks for corporations & billionaires is as backwards as it gets, and will result in thousands of kids, seniors, and families going hungry. It is not a partisan issue, it is a moral issue. That is why I am here to show what these cuts mean for the nuns, priests, and food banks on the frontlines of fighting against hunger. Together we are demanding a stop to this all-out assault on our federal anti-hunger programs and to protect SNAP for our children, veterans, seniors, and families.”
“We need to recognize that food insecurity is not just a problem for someone else—it’s our problem. Catholic Charities of Buffalo, alongside FeedMore WNY and others, is committed to addressing it. But we cannot do it alone and we are grateful for the efforts of Senator Schumer and those of his colleagues who truly understand this problem,” said Deacon Steve Schumer, president and CEO of Catholic Charities of Buffalo.
Schumer added, “It only takes a few NY House Republicans to join us to stop this cruel cut to SNAP. We need NY Republicans to show us which side they are on with their actions. For feeding corporate & billionaires’ greed or for feeding hungry families here in Western NY. We need them to join us in demanding the USDA reverse all of Trump’s cuts to our farmers, food banks, and anti-hunger programs and keep their hands off SNAP to fund Trump’s tax breaks.”
Schumer explained how Trump’s USDA has already cruelly canceled $1 billion in food assistance, hurting Western New York’s FeedMore WNY, and if these SNAP cuts move forward it would be a double whammy, hurtling us to a hunger crisis. The Supplemental Nutrition Assistance Program (SNAP) is a lifeline for nearly 3 million NY seniors, veterans and families who rely on the critical funding to purchase groceries. Schumer said that we should be investing more not less in anti-hunger programs, but under the Republican proposal, the average family would be reduced to just $5.00 per day per person. A breakdown of SNAP recipients in Western NY from the Center for American Progress can be found below:

County

SNAP Recipients

% of County on SNAP

Cattaraugus

10,959

14.4%

Chautauqua

23,926

19.1%

Erie

147,427

15.5%

Niagara

26,650

12.7%

TOTAL

208,962

Schumer explained the Republican proposal to cut up to $230 billion from SNAP would inevitably mean costs of feeding families shift to states, who simply do not have the capacity to absorb this massive increase in expenses, risking families going hungry. According to the Center on Budget and Policy Priorities, mandating New York State to cover even a modest share of SNAP benefits would shift astronomical costs to the state with even just 5% increasing New York State’s costs by nearly $3.5 billion from FY2026 to FY2034. The senator said it is impossible to cut this much from federal SNAP funding without ripping food away from hungry children, seniors, veterans, people with disabilities, and more.
These agonizing decisions would be amplified even further at the local level, with non-profits, many of whom have already had their funding cut, unable to fill in the gap. Counties could even be forced to shoulder the burden of increased costs in SNAP, using more local dollars to provide coverage because less federal funding will be coming in.
According to New York’s Office of Temporary and Disability Assistance, in New York’s 26th Congressional District – which represents parts of Erie and Niagara counties – nearly 77,000 households receive an estimated $337 million in annual benefits. 35% of SNAP recipients are children, 14% are elderly, and 10% are people with disabilities. In New York’s 23rd Congressional District over 51,000 households receive an estimated $200 million in annual benefits. 31% of SNAP recipients are children, 17% are elderly, and 12% are people with disabilities.
Schumer said, “SNAP is a lifeline that helps uplift everyone, from the NY farms who get direct assistance from the program to Western NY families’ kitchen tables. NY Republicans are tying themselves in knots to try to justify these SNAP cuts, but the math shows you cannot make the massive cuts the House’s tax bill proposes without risking the food security for thousands of families. I’m all for reducing any waste or fraud to make the program more efficient, but rushing to pass these massive damaging cuts with no plan while they slash our food banks is a recipe for disaster.”
The proposed SNAP cuts would be a blow to Western NY food banks which have already been hit hard by Trump’s funding freezes and canceled payments. Earlier this year, the USDA canceled $1 billion in food assistance for organizations to purchase locally grown food. USDA programs provide food banks, schools, and other organizations with federal support to purchase local food products from NY farms.
FeedMore WNY is facing a projected $3.5M loss in food for 2025, as 12 critical orders of protein, dairy, and produce scheduled for delivery between May and August have already been canceled, resulting in the loss of over 8,000 cases of food, including thousands of dozens of eggs. In 2024, TEFAP CCC purchases accounted for 13% of all food distributed by FeedMore WNY. This loss comes as hunger continues to surge across the region, with FeedMore experiencing a 46% increase in demand since 2021, serving tens of thousands of children, seniors, and working families each year.
Schumer said these proposed cuts will limit food banks’ ability to keep shelves stocked as more people have been forced to rely on food banks to feed their families. Food bank workers and religious leaders across Upstate New York are concerned about the impact of potential cuts to SNAP on the people they serve, and farmers are worried there will be nowhere to sell their food if SNAP funding levels drop.
“No matter which way you slice it, this Congressional Republican plan will screw Western New York families, food banks and farmers from farm to table. We need everyone to stand up to these cuts that would take away food from our neighbors in need,” added Schumer.
“Deeply embedded in many religious traditions is the call to care for the vulnerable, forgotten, and poor in our midst. Offering them as we do, not just charity, but also justice that upholds their dignity and worth as human beings. And what is more basic in providing human dignity and worth for people, than providing them with the food they need? For 16 years I have pastored in WNY, and during that time I have witnessed over and over again the injustices that exist around our food system. I have seen people who depend on programs like SNAP for their survival, especially the elderly and the children in my congregation, torn down and made to feel like they are unworthy because they cannot afford to eat. We cannot let the people we call our neighbors, our family, and our friends, go hungry in order to save those who already have more than what they need. That is why I am proud to stand with Senator Schumer, and other leaders in our community, to demand justice. To demand that our leaders uphold the dignity of all people, instead of choosing to take the food off their plates,” said Pastor Rebecca Mentzer, Prince of Peace Lutheran Church.
“As the director of Primera’s Food Pantry, I see firsthand how many of our neighbors have to make impossible choices—between paying bills or putting food on the table,” said Pastor Cesar Galarza, Community Church Jehovah Jireh. “In recent months, we have seen a 50% increase in individuals who come to our pantry because they can no longer afford groceries. We are grateful to Senator Schumer for being here today and hearing about the nutritional insecurity that many people in our community face, and we urge more lawmakers to follow his lead. Our communities are struggling—not in theory, but in real life—and they need meaningful support to access the basic nutrition every person deserves.”
“We hope for a day when we do not need millions of dollars in funding because the need in the community is lower – but that day is not today. Food insecurity remains a massive and growing problem across the country, including Western New York. Last year alone, more than 165,700 individuals relied on FeedMore WNY for food assistance, which was a 46 percent increase in just three years’ time. The federal government plays a critical role in alleviating food insecurity, and we appreciate the work Senator Chuck Schumer is doing to fight for this mission critical funding. In 2024, FeedMore WNY received more than $14.9 million in federal funding to purchase food for our food bank distribution network, offer community outreach with SNAP assistance, and provide prepared meals for our community dining sites and home-delivered meal clients. It is imperative that the federal government continue to fund and support food assistance programs including SNAP, TEFAP and Meals on Wheels. Any reduction or elimination of these vital funds would has a devastating effect on the charitable food assistance network and further exacerbate the already massive problem of hunger in WNY and throughout the nation,” said Collin Bishop, Chief Communications Officer FeedMore WNY.
Proposed rollbacks to the country’s most widely utilized nutrition assistance program would strain budgets for Western NY families. Schumer said decimating funding for SNAP right as costs at grocery stores across the country are skyrocketing will hit the Western NY hard. According to the New York State Community Action Association, more than 14% of people in Erie County live in poverty, including more than 20% of children. According to No Kid Hungry, over half of New Yorkers reported going into debt in the past year due to rising food costs, with over 60% of families with children.
SNAP not only supplements families’ food budgets, it has also generated great economic benefits for New York State and NY-26 specifically. According to the National Grocers Association, grocery stores across New York State sold over $2.1 billion in groceries to people using SNAP benefits, including $146.1 million in NY-26. This created more than 18,500 New York jobs in the grocery industry, including 1,288 in NY-26, and generated more than $820.8 million in grocery industry wages, including $356.9 million in NY-26.
Schumer has been a strong advocate for addressing food insecurity in Western New York. Schumer last year secured $3 million for FeedMore WNY to build a new, 197,700-square-foot facility in the fiscal year (FY) 2024 spending bill. The senator secured $2 million to expand FeedMore WNY’s facility in the omnibus end-of-year spending package for FY2023. Additionally, in November 2023, Schumer announced over $40 million for food organizations across the state through the USDA funded New York Food for New York Families program with Governor Hochul, including $2 million for FeedMore and millions more for other Western NY food organizations and school districts.

MIL OSI USA News –

May 13, 2025
MIL-OSI USA: Warren, DeLauro Push for Congressional Trade Transparency, Warn of Trump Admin Corruption

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren
May 12, 2025
Text of Letter (PDF)
Washington, D.C. – Today, Senator Elizabeth Warren (D-Mass.) and Representative Rosa DeLauro (D-Conn.) wrote to Secretary of Commerce Howard Lutnick, Secretary of Treasury Scott Bessent, and U.S. Trade Representative Ambassador Jamieson Greer, calling out the Trump administration for withholding information on its supposedly ongoing bilateral “negotiations” from Congress—who retains the Constitutional authority to “regulate commerce with foreign nations.”
“The Trump administration’s chaotic and opaque tariff policies are causing layoffs; uncertainty for workers, businesses, and consumers; and the most extreme stock market collapse and volatility since the early days of COVID-19,” wrote the lawmakers. “These policies, levied indiscriminately on nearly every country in the world, are an abuse of the president’s power and will severely damage the U.S. economy if left unchecked.”
Trump attempts to distract from this economic chaos by asserting that his on-and-off, indiscriminate tariffs were actually a bargaining chip meant to entice other countries to the negotiating table. However, the administration has provided almost no information on these trade talks, creating concern that the behind-closed-doors talks will only result in trade deals that line the pockets of Trump’s billionaire friends, leaving Americans to foot the bill for Trump’s “negotiating tactics.”
“The Trump administration has created additional economic uncertainty with these so-called negotiations: we do not know who the administration is negotiating with, what its strategic goals are, whether it will offer any concessions, and what it is specifically asking for,” wrote the lawmakers.
This concern is particularly acute in light of the fact that the administration has not provided any indication that it will obtain congressional approval of the resulting trade deals, despite Congress’s authority “to regulate Commerce with foreign Nations” and “lay and collect Taxes, Duties.” The lawmakers point out that this lack of transparency is a sharp deviation from historic practice. The lack of congressional oversight only increases the likelihood that Trump and his allies are using these trade talks for their own enrichment, as it allows the administration to actively engage with powerful industries, corporations, or sovereign states to seek quid-pro-quo deals, knowing that they are not being held back by Congress or the public. Already, there are reports that may be happening.
“Congress should end Trump’s disastrous reciprocal tariffs once and for all, but in the meantime, we must ensure that any negotiated trade deals do not result in additional economic chaos and corruption or further undermine Congress’s constitutional authority to regulate trade,” continued the lawmakers. “As the administration officials charged with leading these negotiations, we ask that you provide additional information on these talks.”
The lawmakers are demanding information, including the list of countries the administration is negotiating with, details of each meeting, clarification of the administration’s strategy, and assurances that the administration is bargaining on behalf of the American people, not Trump’s billionaire friends, from the administration officials by May 20, 2025.

MIL OSI USA News –

May 13, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

Revenue of $95 million as growth in new hardware systems and related services was offset by a decline in materials sales driven primarily by inventory management in the dental aligner market.
Previously announced $50 million cost savings initiative proceeding on schedule for completion by mid-2026. Reduction in operating expenses in Q1 continues to reflect the Company’s focus on cost and efficiency.
Company announcing an additional cost reduction initiative estimated to deliver $20 million incremental savings in 2025 to accelerate organizational alignment in response to potential macroeconomic and tariff risks.
Company withdrawing full year guidance due to risk of protracted weakness in customer capex spending. Top priority on delivering profitability at current scale. Strong new product portfolio spanning all metal and polymer platforms positions company well for accelerated growth and profitability when customer capex rebounds.
Balance sheet significantly strengthened as April sale of Geomagic portfolio provided over $100 million post-tax increase to Company cash reserves, which totaled approximately $250 million as of April 30, 2025.

Unaudited	Three Months Ended
*(in millions, except per share data)*	March 31, 2025			March 31, 2024
Revenue	$	94.5		$	102.9
Gross profit	$	32.7		$	40.9
Gross profit margin		34.6	%		39.8	%
Operating expense	$	69.5		$	80.8
Operating loss	$	(36.8	)	$	(39.9	)
Net loss attributable to 3D Systems Corporation	$	(37.0	)	$	(16.0	)
Diluted loss per share	$	(0.28	)	$	(0.12	)

Non-GAAP measures for year-over-year comparisons
Non-GAAP gross profit margin		35.0	%		40.1	%
Non-GAAP operating expense	$	61.6		$	66.3
Adjusted EBITDA	$	(23.9	)	$	(20.1	)
Non-GAAP diluted loss per share	$	(0.21	)	$	(0.17	)

Summary Comments on Results

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

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

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

First Quarter 2025 Results

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

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

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

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

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

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

2025 Outlook

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

Financial Liquidity

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

Q1 2025 Conference Call and Webcast

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

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

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

Forward-Looking Statements

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

About 3D Systems

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


3D SYSTEMS CORPORATION Condensed Consolidated Balance Sheets (Unaudited)

*(in thousands, except par value)*	March 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	135,040		$	171,324
Accounts receivable, net of reserves — $2,621 and $2,433		104,691			101,471
Inventories		120,045			118,530
Prepaid expenses and other current assets		39,172			34,329
Assets held for sale		2,936			3,176
Total current assets		401,884			428,830
Property and equipment, net		50,918			51,044
Intangible assets, net		17,874			18,020
Goodwill		15,102			14,879
Operating lease right-of-use assets		51,983			50,715
Finance lease right-of-use assets		8,504			8,726
Long-term deferred income tax assets		2,107			2,063
Other assets		34,983			34,569
Total assets	$	583,355		$	608,846
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY
Current liabilities:
Current operating lease liabilities	$	11,775		$	9,514
Accounts payable		39,767			41,833
Accrued and other liabilities		44,310			45,488
Customer deposits		5,750			4,712
Deferred revenue		32,110			27,298
Liabilities held for sale		10,305			10,251
Total current liabilities		144,017			139,096
Long-term debt, net of deferred financing costs		212,310			211,995
Long-term operating lease liabilities		51,525			52,527
Long-term deferred income tax liabilities		2,001			2,076
Other liabilities		25,829			25,001
Total liabilities		435,682			430,695
Commitments and contingencies
Redeemable non-controlling interest		2,034			1,958
Stockholders’ equity:
Common stock, $0.001 par value, authorized 220,000 shares; shares issued 135,361 and 135,510 as of March 31, 2025 and December 31, 2024, respectively		135			136
Additional paid-in capital		1,596,747			1,593,366
Accumulated deficit		(1,399,229	)		(1,362,243	)
Accumulated other comprehensive loss		(52,014	)		(55,066	)
Total stockholders’ equity		145,639			176,193
Total liabilities, redeemable non-controlling interest and stockholders’ equity	$	583,355		$	608,846

3D SYSTEMS CORPORATION Condensed Consolidated Statements of Operations (Unaudited)

	Three Months Ended
*(in thousands, except per share amounts)*	March 31, 2025			March 31, 2024
Revenue:
Products	$	54,723		$	64,051
Services		39,817			38,854
Total revenue		94,540			102,905
Cost of sales:
Products		37,365			39,587
Services		24,486			22,396
Total cost of sales		61,851			61,983
Gross profit		32,689			40,922
Operating expenses:
Selling, general and administrative		49,769			57,304
Research and development		19,683			23,480
Asset impairment charges		—			—
Total operating expenses		69,452			80,784
Loss from operations		(36,763	)		(39,862	)
Non-operating income (loss):
Foreign exchange gain, net		1,139			1,909
Interest income		953			2,798
Interest expense		(581	)		(714	)
Other (loss) income, net		(160	)		21,386
Total non-operating income		1,351			25,379
Loss before income taxes		(35,412	)		(14,483	)
Provision for income taxes		(671	)		(1,371	)
Loss on equity method investment, net of income taxes		(903	)		(247	)
Net loss before redeemable non-controlling interest		(36,986	)		(16,101	)
Less: net loss attributable to redeemable non-controlling interest		—			(100	)
Net loss attributable to 3D Systems Corporation	$	(36,986	)	$	(16,001	)

Net loss per common share:
Basic	$	(0.28	)	$	(0.12	)
Diluted	$	(0.28	)	$	(0.12	)

Weighted average shares outstanding:
Basic		132,462			130,820
Diluted		132,462			130,820

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

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

3D SYSTEMS CORPORATION Segment Information (Unaudited)

	Three Months Ended
*(in millions)*	March 31, 2025		March 31, 2024
Revenue:
Healthcare Solutions	$	41.3	$	45.4
Industrial Solutions	$	53.2	$	57.5
Total	$	94.5	$	102.9

3D SYSTEMS CORPORATION Reconciliations of GAAP to Non-GAAP Measures

Presentation of Information in this Press Release

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

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

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

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

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

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

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

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

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

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

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

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

Non-GAAP Operating Expense (unaudited)

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

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

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

Diluted Loss per Share (unaudited)

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

The MIL Network –

May 13, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

Q1 2025 Headlines:

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

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

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

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

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

1. See Non-IFRS measures.

Forward Looking Statements

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

Non-IFRS Measures

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

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

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

		Three months ended March 31,
		2025		2024
	($ in millions)

Net cash flows from operating activities		827		737
Adjusted for:
Interest paid on lease obligations		(4	)	(3	)
Interest paid on debt		(62	)	(41	)
Proceeds from sale of interest rate cap		–		–
Debt transaction costs		(0	)	(11	)
Payments of lease obligations		(31	)	(29	)
IRGA / TSS membership liability revaluation charge		(94	)	(81	)
Property and equipment purchased		(15	)	(10	)
Interest and dividends received		11		6

		631		568
Less amount attributable to
Non-controlling interests		(121	)	(122	)

Free cash flow available to shareholders		510		446

Due to rounding, certain totals may not foot.

About Constellation Software Inc.

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

For further information:

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

SOURCE: CONSTELLATION SOFTWARE INC.


CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Financial Position
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited
		March 31, 2025			December 31, 2024			March 31, 2024

Assets

Current assets:
	Cash	$	2,477		$	1,980		$	2,078
	Accounts receivable		1,363			1,291			1,205
	Unbilled revenue		406			369			361
	Inventories		58			56			56
	Other assets		637			596			575
			4,942			4,293			4,276

Non-current assets:
	Property and equipment		222			223			142
	Right of use assets		346			328			322
	Deferred income taxes		237			219			157
	Equity securities		353			13			14
	Other assets		318			316			291
	Intangible assets		7,477			7,465			6,746
			8,954			8,565			7,671

Total assets		$	13,896		$	12,857		$	11,946

Liabilities and Shareholders’ Equity

Current liabilities:
	Debt with recourse to Constellation Software Inc.	$	419		$	303		$	276
	Debt without recourse to Constellation Software Inc.		365			319			348
	Accounts payable and accrued liabilities		1,449			1,590			1,304
	Dividends payable		21			21			21
	Deferred revenue		2,511			1,967			2,272
	Provisions		23			22			8
	Acquisition holdback payables		216			219			172
	Lease obligations		119			115			115
	Income taxes payable		130			111			135
			5,254			4,667			4,653

Non-current liabilities:
	Debt with recourse to Constellation Software Inc.		1,865			1,855			1,832
	Debt without recourse to Constellation Software Inc.		1,687			1,689			1,470
	Deferred income taxes		692			673			634
	Acquisition holdback payables		145			133			105
	Lease obligations		266			252			244
	Other liabilities		346			300			257
			5,001			4,903			4,542

Total liabilities			10,255			9,569			9,195


Shareholders’ equity:
	Capital stock		99			99			99
	Accumulated other comprehensive income (loss)		(63	)		(224	)		(145	)
	Retained earnings		3,010			2,919			2,358
	Non-controlling interests		595			493			439
			3,641			3,288			2,752



Total liabilities and shareholders’ equity		$	13,896		$	12,857		$	11,946


CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Income (loss)
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)


Unaudited
		Three months ended March 31,
			2025			2024


Revenue
License		$	96		$	88
Professional services			487			470
Hardware and other			74			59
Maintenance and other recurring			1,996			1,737
			2,654			2,353

Expenses
Staff			1,412			1,293
Hardware			40			35
Third party license, maintenance and professional services			254			215
Occupancy			17			14
Travel, telecommunications, supplies, software and equipment			131			112
Professional fees			47			38
Other, net			53			50
Depreciation			46			44
Amortization of intangible assets			272			242
			2,272			2,042


Foreign exchange loss (gain)			32			(18	)
IRGA/TSS Membership liability revaluation charge			94			81
Finance and other expense (income)			(45	)		(9	)
Bargain purchase gain			–			(2	)
Impairment of intangible and other non-financial assets			3			10
Redeemable preferred securities expense (income)			–			58
Finance costs			71			67
			154			186

Income (loss) before income taxes			227			125

Current income tax expense (recovery)			136			127
Deferred income tax expense (recovery)			(49	)		(75	)
Income tax expense (recovery)			87			52

Net income (loss)			140			74

Net income (loss) attributable to:
Common shareholders of Constellation Software Inc.			115			105
Non-controlling interests			24			(31	)
Net income (loss)			140			74

Earnings per common share of Constellation Software Inc.
	Basic and diluted	$	5.44		$	4.95


CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Income (loss)
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)


Unaudited
	Three months ended March 31,
	2025		2024

Net income (loss)	$	140	$	74

Items that are or may be reclassified subsequently to net income (loss):

Foreign currency translation differences from foreign operations and other, net of tax		79		(48	)

Items that will not be reclassified to net income (loss):

Changes in the fair value of equity investments at FVOCI		155		–

Other comprehensive income (loss), net of income tax		234		(48	)

Total comprehensive income (loss)	$	374	$	25

Total other comprehensive income (loss) attributable to:
Common shareholders of Constellation Software Inc.		161		(40	)
Non-controlling interests		74		(8	)
Total other comprehensive income (loss)	$	234	$	(48	)

Total comprehensive income (loss) attributable to:
Common shareholders of Constellation Software Inc.		276		65
Non-controlling interests		98		(40	)
Total comprehensive income (loss)	$	374	$	25


CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statement of Changes in Equity
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited
Three months ended March 31, 2025
		Equity Attributable to Common Shareholders of CSI
		Capital stock		Accumulated other comprehensive income (loss)			Retained earnings			Total			Non-controlling interests			Total equity

Balance at January 1, 2025		$	99	$	(224	)	$	2,919		$	2,795		$	493		$	3,288

Total comprehensive income (loss):

Net income (loss)			–		–			115			115			24			140

Other comprehensive income (loss)

Foreign currency translation differences from
	foreign operations and other, net of tax and
	changes in the fair value of equity investments at FVOCI		–		161			–			161			74			234


Total other comprehensive income (loss)			–		161			–			161			74			234

Total comprehensive income (loss)			–		161			115			276			98			374

Transactions with owners, recorded directly in equity

Other movements in non-controlling interests			–		–			(4	)		(4	)		4			(0	)

Dividends paid to non-controlling interests			–		–			–			–			(0	)		(0	)

Dividends to shareholders of the Company			–		–			(21	)		(21	)		–			(21	)

Balance at March 31, 2025		$	99	$	(63	)	$	3,010		$	3,046		$	595		$	3,641


CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statement of Changes in Equity
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)

Unaudited
Three months ended March 31, 2024

		Equity Attributable to Common Shareholders of CSI
		Capital stock		Accumulated other comprehensive income (loss)			Retained earnings			Total			Non-controlling interests			Total equity

Balance at January 1, 2024		$	99	$	(99	)	$	1,876		$	1,877		$	85		$	1,961

Total comprehensive income (loss):

Net income (loss)			–		–			105			105			(31	)		74

Other comprehensive income (loss)

Foreign currency translation differences from
	foreign operations and other, net of tax		–		(40	)		–			(40	)		(8	)		(48	)

Total other comprehensive income (loss)			–		(40	)		–			(40	)		(8	)		(48	)

Total comprehensive income (loss)			–		(40	)		105			65			(40	)		25

Transactions with owners, recorded directly in equity

Non-controlling interests arising from business combinations			–		–			–			–			(0	)		(0	)

Conversion of Lumine Special Shares to subordinate voting shares of Lumine and settlement of accrued dividend on Lumine Special Shares through the issuance of subordinate voting shares of Lumine			–		–			–			–			872			872

Conversion of Lumine Preferred Shares to subordinate voting shares of Lumine and settlement of accrued dividend on Lumine Preferred Shares through the issuance of subordinate voting shares of Lumine			–		(6	)		400			394			(394	)		–

Other movements in non-controlling interests			–		–			(1	)		(1	)		1			0

Dividends paid to non-controlling interests			–		–			–			–			(85	)		(85	)

Dividends to shareholders of the Company					–			(21	)		(21	)		–			(21	)

Balance at March 31, 2024		$	99	$	(145	)	$	2,358		$	2,313		$	439		$	2,752


CONSTELLATION SOFTWARE INC.
Condensed Consolidated Interim Statements of Cash Flows
(In millions of U.S. dollars, except per share amounts. Due to rounding, numbers presented may not foot.)


Unaudited
			Three months ended March 31,
				2025			2024

Cash flows from (used in) operating activities:
	Net income (loss)		$	140		$	74
	Adjustments for:
		Depreciation		46			44
		Amortization of intangible assets		272			242
		IRGA/TSS Membership liability revaluation charge		94			81
		Finance and other expense (income)		(45	)		(9	)
		Bargain purchase (gain)		–			(2	)
		Impairment of intangible and other non-financial assets		3			10
		Redeemable preferred securities expense (income)		–			58
		Finance costs		71			67
		Income tax expense (recovery)		87			52
		Foreign exchange loss (gain)		32			(18	)
		Depreciation of third party costs		5			–
	Change in non-cash operating assets and liabilities
		exclusive of effects of business combinations		231			208
	Transaction costs associated with equity securities classified as FVOCI			(2	)		–
	Income taxes paid			(107	)		(68	)
	Net cash flows from (used in) operating activities			827			737

Cash flows from (used in) financing activities:
	Interest paid on lease obligations			(4	)		(3	)
	Interest paid on debt			(62	)		(41	)
	Increase (decrease) in CSI facility			–			(578	)
	Increase (decrease) in Topicus revolving credit debt facility without recourse to CSI			31			114
	Proceeds from issuance of Senior Notes			–			1,000
	Proceeds from issuance of debt facilities without recourse to CSI			27			112
	Repayments of debt facilities without recourse to CSI			(30	)		(18	)
	Other financing activities			(1	)		(2	)
	Dividends paid to non-controlling interests			(0	)		(85	)
	Debt transaction costs			(0	)		(11	)
	Payments of lease obligations, net of sublease receipts			(31	)		(29	)
	Distribution to the Joday Group			–			(64	)
	Principal repayments to the Joday Group pursuant to the Call Notice			–			(22	)
	Dividends paid to common shareholders of the Company			(21	)		(21	)
	Net cash flows from (used in) in financing activities			(91	)		351

Cash flows from (used in) investing activities:
	Acquisition of businesses			(94	)		(223	)
	Cash obtained with acquired businesses			11			35
	Post-acquisition settlement payments, net of receipts			(16	)		(76	)
	Purchases of investments and other assets			(175	)		(0	)
	Proceeds from sales of other investments and other assets			–			4
	Decrease (increase) in restricted cash			7			(11	)
	Interest, dividends and other proceeds received			11			5
	Property and equipment purchased			(15	)		(10	)
	Net cash flows from (used in) investing activities			(271	)		(277	)

Effect of foreign currency on
	cash			33			(17	)

Increase (decrease) in cash				497			794

Cash, beginning of period			$	1,980		$	1,284

Cash, end of period			$	2,477		$	2,078

The MIL Network –

May 13, 2025

MIL-OSI: iAnthus Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK and TORONTO, May 12, 2025 (GLOBE NEWSWIRE) — iAnthus Capital Holdings, Inc. (“iAnthus” or the “Company”) (CSE: IAN, OTCQB: ITHUF), which owns, operates, and partners with regulated cannabis operations across the United States, today reported its financial results for the first quarter ended March 31, 2025. The Company’s Quarterly Report on Form 10-Q (the “Quarterly Report”), which includes its unaudited interim condensed consolidated financial statements for the first quarter ended March 31, 2025 and the related management’s discussion and analysis of financial condition and results of operations, can be accessed on the Securities and Exchange Commission’s (“SEC’s”) website at www.sec.gov, on the System for Electronic Document Analysis and Retrieval’s (SEDAR+) website at www.sedarplus.com, and on the Company’s website at www.iAnthus.com. The Company’s financial statements are reported in accordance with U.S. generally accepted accounting principles (“GAAP”). All currency is expressed in U.S. dollars.

First Quarter 2025 Financial Highlights

Revenue of $38.1 million, a decrease of $4.6 million from Q4 2024 and a decrease of $3.4 million from the same quarter in the prior year.
Gross profit of $18.9 million, a decrease of $0.3 million from Q4 2024 and an increase $1.7 million from the same quarter in the prior year.
Gross margin of 50%, reflecting an increase of 472 bps when compared to Q4 2024 and an increase of 814 bps from the same quarter in the prior year.
Net income of $5.1 million, or a net income of less than $0.00 per share, compared to a net income of $27.8 million, or a net income of less than $0.00 per share in Q4 2024, and compared to a net loss of $14.0 million, or a net loss of $0.00 per share, in the same quarter in the prior year.
Adjusted EBITDA⁽¹⁾ of $3.2 million, a decrease from an Adjusted EBITDA of $6.4 million in Q4 2024, and remains consistent from the same quarter in the prior year. EBITDA and Adjusted EBITDA are non-GAAP measures. Reconciliation tables of EBITDA and Adjusted EBITDA as used in this press release to GAAP are included below.

Table 1: Financial Results
in thousands of US$, except per share amounts (unaudited)		Q1 2025			Q4 2024			Q1 2024
Revenue	$	38,121		$	42,718		$	41,564
Gross profit		18,878			19,139			17,201
Gross margin		49.5	%		44.8	%		41.4	%
Net income (loss)		5,150			27,793			(13,998	)
Net income (loss) per share		0.00			0.00			(0.00	)

Table 2: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA⁽¹⁾
in thousands of US$ (unaudited)		Q1 2025			Q4 2024			Q1 2024
Net income (loss)	$	5,150		$	27,793		$	(13,998	)
Depreciation and amortization		4,709			6,045			6,371
Interest expense, net		4,212			4,427			4,151
Income tax (benefit) expense⁽²⁾		4,009			(34,602	)		4,356
EBITDA (Non-GAAP)⁽¹⁾	$	18,080		$	3,663		$	880
Adjustments:
(Recoveries), write-downs and other charges, net		(149	)		(14	)		397
Inventory reserves and write-downs		110			247			–
Accretion expense		1,189			1,200			1,072
Share-based compensation		521			424			434
Losses (gains) from changes in fair value of financial instruments		4			18			(7	)
Loss on equity method investments		17			50			62
Non-recurring charges⁽³⁾		374			994			720
Loss on debt extinguishment⁽⁴⁾		–			–			114
(Gains) losses from deconsolidation of subsidiaries⁽⁵⁾		(12,085	)		–			–
Other income⁽⁶⁾		(4,047	)		(171	)		(427	)
Change in accounting estimate⁽⁷⁾		(811	)		–			–
Total Adjustments	$	(14,877	)	$	2,748		$	2,365
Adjusted EBITDA (Non-GAAP)⁽¹⁾	$	3,203		$	6,411		$	3,245

(1) See “Non-GAAP Financial Information” below for more information regarding the Company’s use of non-GAAP financial measures.

(2) Prior period amounts have been conformed to follow an accounting policy change made by the Company to aggregate interest and penalties related to accrued income taxes within “income tax expense” from within “selling, general and administrative expenses” in its unaudited interim condensed consolidated statement of operations.

(3) Includes one-time, non-recurring costs related to strategic review processes, ongoing legal disputes, severance and other non-recurring costs.

(4) Q1 2024 reflects a loss of $0.1 million on debt extinguishment related to the second amendment of the $11.0 million senior secured bridge notes issued by iAnthus New Jersey, LLC on February 16, 2024.

(5) Q1 2025 reflects a gain of $12.1 million from deconsolidation following the sale of Nevada and certain Arizona assets.

(6) Q1 2025 reflects $3.0 million of Employee Retention Tax Credits received during the quarter and $1.0 million of forgiven deferred professional fees. Q4 2024 reflects approximately $0.2 million of accounts payable write-offs and vendor credits. Q1 2024 reflects $0.4 million of insurance refunds and accounts payable write-offs and vendor credits.

(7) Effective January 2025, the Company implemented a change in accounting estimate with respect to inventory valuation from weighted average to standard costing.

Non-GAAP Financial Information

This press release includes certain non-GAAP financial measures as defined by the SEC and the Canadian Securities Administrators. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in the tables above. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.

In evaluating our business, we consider and use EBITDA and Adjusted EBITDA as supplemental measures of operating performance. We define EBITDA as earnings before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before share-based compensation, accretion expense, write-downs and impairments, gains and losses from changes in fair values of financial instruments, income or losses from equity-accounted investments, the effect of changes in accounting policy, non-recurring costs related to the Company’s Recapitalization Transaction, litigation costs related to ongoing legal proceedings, and other income. We present EBITDA because we believe it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance of other similarly situated companies in our industry, and we present Adjusted EBITDA because it removes non-recurring, irregular and one-time items that we believe may distort the comparability of EBITDA from period-to-period and with other industry participants.

EBITDA and Adjusted EBITDA are not standardized financial measures defined under GAAP, and are not a measure of operating income, operating performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA have limitations as an analytical tool, and when assessing the Company’s operating performance, investors should not consider EBITDA or Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with GAAP. Among other things, EBITDA and Adjusted EBITDA do not reflect the Company’s actual cash expenditures. Other companies may calculate similar measures differently than us, limiting their usefulness as comparative tools. We compensate for these limitations by relying on GAAP results and using EBITDA and Adjusted EBITDA only as supplemental information.

About iAnthus

iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States. For more information, visit www.iAnthus.com.

Forward Looking Statements

Statements in this press release contain forward-looking statements. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of management, are not guarantees of performance and are subject to significant risks and uncertainty. These forward-looking statements should, therefore, be considered in light of various important factors, including those set forth in the Company’s reports that it files from time to time with the SEC and the Canadian Securities Regulators, which you should review, including, but not limited to, the Annual Report filed with the SEC. When used in this press release, words such as “will,” “could,” “plan,” “estimate”, “expect”, “intend”, “may”, “potential”, “believe”, “should” and similar expressions identify forward-looking statements.

Forward-looking statements may include, without limitation, statements relating to the Company’s financial performance, business development and results of operations.

These forward-looking statements should not be relied upon as predictions of future events, and the Company cannot assure you that the events or circumstances discussed or reflected in these statements will be achieved or will occur. If such forward-looking statements prove to be inaccurate, the inaccuracy may be material. You should not regard these statements as a representation or warranty by the Company or any other person that the Company will achieve its objectives and plans in any specified time frame, or at all. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any obligation to publicly update or release any revisions to these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.

Neither the Canadian Securities Exchange nor the U.S. Securities and Exchange Commission has reviewed, approved or disapproved the content of this press release.

The MIL Network –

May 13, 2025

MIL-OSI: Altus Group Announces Q2 2025 Dividend Payment

Source: GlobeNewswire (MIL-OSI)

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

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

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

About Altus Group

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

FOR FURTHER INFORMATION PLEASE CONTACT:

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

The MIL Network –

May 13, 2025

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