NewzIntel.com

Category: Taxation

  • MIL-OSI Security: Athens Tax Preparer Sentenced to Prison for Filing Over $3.5 Million in False Returns

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

    Defendant Received a Portion of Proceeds from Clients’ Fraudulent Pandemic Benefit Claims

    MACON, Ga. – A tax preparer who admitted to filing more than $3.5 million in fraudulent tax returns tied to a multi-state investigation of a COVID-19 pandemic unemployment benefit scheme in which she received a percentage of the ill-gotten gains was sentenced to serve eight years in prison for her crime.

    Jessica Crawford, 34, of Athens, Georgia, was sentenced to serve 96 months in prison to be followed by five years of supervised release by U.S. District Judge Tilman E. “Tripp” Self, III on May 8. Crawford previously pleaded guilty to one count of wire fraud and one count of aiding and assisting in preparing and presenting false income tax returns on Nov. 22, 2024. There is no parole in the federal system.

    “Federal law enforcement uncovered a large-scale tax return scheme during the pandemic that was costing taxpayers while benefiting fraudsters,” said Acting U.S. Attorney C. Shanelle Booker. “Alongside our law enforcement partners, federal prosecutors will continue to uphold the law and pursue justice in these cases.”

    “Jessica Crawford used her position as a tax preparer to defraud the U.S. government through a CARES Act program intended for those unemployed because of the COVID-19 pandemic,” said Atlanta Field Office Assistant Special Agent in Charge Lisa Fontanette. “In addition, she continued her theft of taxpayers’ money by fraudulently filing tax returns on behalf of her clients. The sentencing Crawford received should serve notice to unscrupulous tax preparers that IRS Criminal Investigation special agents and our law enforcement partners will continue investigating and holding them accountable for their unethical conduct.”

    “Jessica Crawford lied and took advantage of funds designed to help those who were truly in need during the pandemic,” said Paul Brown, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners will continue to identify and hold accountable anyone who defrauds taxpayers.”

    According to court documents and statements made in court, FBI agents investigating a multi-state unemployment benefit scheme conducted during the COVID-19 pandemic discovered text messages between individuals involved in the scheme and Crawford, a tax preparer with Crawford Tax Services in Athens. Crawford filed for Pandemic Unemployment Assistance (PUA) benefits on behalf of those individuals who had created fake businesses or submitted false information to fraudulently obtain benefits. In return, Crawford received a percentage of the ill-gotten gains.

    Internal Revenue Service-Criminal Investigations (IRS-CI) agents executed an undercover operation at Crawford’s business in April 2022 as part of the continuing investigation. The undercover agent (UA) met Crawford to have taxes prepared, and Crawford asked if the UA did anything on the side. At first, the UA responded no, but Crawford said that expenses could be deducted if he did, and the UA said he mowed an aunt’s lawn sometimes, which Crawford said was good enough. The UA did not provide any income or expense amounts. Still, Crawford created a Schedule C business for landscaping on the UA’s federal income tax return based solely on that interaction. Crawford prepared a Form 1040 and filed electronically, including a fictitious Schedule C loss of $19,373, and claimed an Earned Income Tax Credit (EITC), a Child Tax Credit (CTC), and a Qualified Business Income (QBI) deduction, which were affected by the fraudulent Schedule C loss. As a result, the UA’s return claimed a fraudulent federal income tax refund of $12,359.

    The IRS completed a statistical review of 1,261 total tax returns filed by Crawford in tax years 2020 and 2021. Of those, the IRS determined that Crawford fraudulently filed tax returns on behalf of clients, resulting in losses to the IRS exceeding $3 million from falsely claimed Form 7202 credits for sick leave and family leave, tax credits and dependent care credits.

    The case was investigated by the FBI and the IRS-CI.

    Criminal Chief Leah E. McEwen prosecuted the case for the Government.

    MIL Security OSI –

  • MIL-OSI USA: Kennedy, Young, Hassan, colleagues champion bipartisan bill to support American innovation

    US Senate News:

    Source: United States Senator John Kennedy (Louisiana)

    WASHINGTON – Sen. John Kennedy (R-La.) joined Sens. Todd Young (R-Ind.) and Maggie Hassan (D-N.H.) in reintroducing the American Innovation and Jobs Act, which would strengthen American research and development (R&D).

    Companies and startups investing in R&D have long been able to either claim a tax credit or deduct their investments, which helps them to invest in developing innovative products. In 2017, Congress passed the Tax Cuts and Jobs Act, which included a provision allowing full expensing of R&D that expired in 2022.

    The bill would extend and make permanent that expired provision and allow businesses to retroactively take advantage of the deduction for the tax years during which full expensing had expired.

    “Americans deserve a tax code that looks like it was designed on purpose, and that includes extending tax policies that encourage innovation. I’m proud to help introduce the American Innovation and Jobs Act to help our small businesses and startups compete against China,” said Kennedy. 

    “The United States is locked in a competition to ensure we maintain our position as the global leader in scientific and technological innovation. Our legislation would incentivize job-creating R&D activity in the United States—particularly among start-ups—to drive our innovation future, strengthen international competitiveness, and protect our national security. Congress must pass this legislation,” said Young.

    “As many small businesses struggle with rising costs, this bipartisan legislation cuts taxes for small businesses that invest in innovation, which will also help the United States continue to outcompete our adversaries like China,” said Hassan.

    Sens. James Lankford (R-Okla.), Jeanne Shaheen (D-N.H.), Steve Daines (R-Mont.), Mark Warner (D-Va.), John Barrasso (R-Wyo.), Jacky Rosen (D-Nev.), Thom Tillis (R-N.C.), Gary Peters (D-Mich.), Roger Marshall (R-Kansas), Alex Padilla (D-Calif.), Tommy Tuberville (R-Ala.), Patty Murray (D-Wash.), Amy Klobuchar (D-Minn.), Pete Ricketts (R-Neb.), Mark Kelly (D-Ariz.), Katie Britt (R-Ala.), Tim Kaine (D-Va.), Shelley Moore Capito (R-W.Va.), Catherine Cortez Masto (D-Nev.), Deb Fischer (R-Neb.), Tammy Baldwin (D-Wis.), Jerry Moran (R-Kansas), Ben Ray Lujan (D-N.M.), Bill Hagerty (R-Tenn.), Chris Coons (D-Del.), Markwayne Mullin (R-Okla.), Elissa Slotkin (D-Mich.), Roger Wicker (R-Miss.), Angus King (I-Maine), Ted Budd (R-N.C.), Jon Ossoff (D-Ga.), Jon Husted (R-Ohio), and Martin Heinrich (D-N.M.) also cosponsored the bill.

    Full text of the American Innovation and Jobs Act can be found here.

    MIL OSI USA News –

  • MIL-OSI: ThreeD Capital Inc. Announces Joint Operating Agreement with Sheldon Inwentash to Monetize HyperCycle Digital Assets

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 09, 2025 (GLOBE NEWSWIRE) — ThreeD Capital Inc. (“ThreeD” or the “Company”) (CSE:IDK) (OTCQX:IDKFF), a Canadian-based venture capital firm focused on opportunistic investments in companies in the junior resources and disruptive technologies sectors, is pleased to announce that it has entered into a Joint Operating Agreement dated May 9, 2025 (the “Agreement”) with its Chief Executive Officer, Sheldon Inwentash, for the purpose of monetizing complementary digital assets held by each respective party.

    Under the terms of the Agreement, ThreeD will contribute 6,291,456 HyperCycle tokens (“Contributed Tokens”) and Mr. Inwentash will contribute 12 HyperCycle masternodes (“Nodes”) to a coordinated operation (“Joint Operation”). The total aggregate market value of the Contributed Tokens is approximately $550,000 USD, which is equal to the value of the Nodes contributed by Mr. Inwentash. The objective of the Joint Operation is to leverage the Nodes and Contributed tokens synergistically to generate income through participation in the HyperCycle decentralized AI computation ecosystem.

    Each party will retain beneficial ownership of their contributed assets. ThreeD will maintain control and custody of the Contributed Tokens, while Mr. Inwentash will retain beneficial ownership of the Nodes, though operational access and custody of the Nodes will temporarily be delegated to a digital wallet controlled by ThreeD for operational purposes.

    Revenues and expenses relating to the Joint Operation will be shared equally (50/50) between ThreeD and Mr. Inwentash. Either party may elect to withdraw their contributed assets upon 30 days’ notice, subject to orderly wind-down provisions. The agreement also includes an income cap of $2,000,000 CAD, at which point the Joint Operation will automatically terminate, and the contributed assets will be returned to their respective owners, net of outstanding obligations.

    The transaction constitutes a related party transaction under Multilateral Instrument 61-101 (“MI 61-101”) as Mr. Inwentash is both a director and officer of the Company. The Company is relying on the exemption from the formal valuation requirement set out in section 5.5(a) of MI 61-101 and the exemption from the minority approval requirement set out in section 5.7(1)(a) of MI 61-101, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, exceeds 25% of the Company’s market capitalization.

    The transaction remains subject to the approval of the Canadian Securities Exchange.

    About ThreeD Capital Inc.

    ThreeD is a publicly-traded Canadian-based venture capital firm focused on opportunistic investments in companies in the junior resources and disruptive technologies sectors. ThreeD’s investment strategy is to invest in multiple private and public companies across a variety of sectors globally. ThreeD seeks to invest in early stage, promising companies where it may be the lead investor and can additionally provide investees with advisory services and access to the Company’s ecosystem.

    For further information:

    Jakson Inwentash
    Vice President Investments jinwentash@threedcap.com Phone: 416-941-8900 ext 107

    The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.

    Forward-Looking Statements

    This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of Canadian securities laws including, without limitation, statements with respect to future investments by the Company. All statements other than statements of historical fact are forward-looking statements. Often, but not always, these forward looking statements can be identified by the use of words such as “believe”, “believes”, “estimate”, “estimates”, “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “upgraded”, “offset”, “limited”, “contained”, “reflecting”, “containing”, “remaining”, “to be”, “periodically”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.

    Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, there can be no assurance they will prove accurate. The forward-looking statements contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

    The MIL Network –

  • MIL-OSI: The Herzfeld Caribbean Basin Fund, Inc. Announces Distribution in Stock and Cash

    Source: GlobeNewswire (MIL-OSI)

    MIAMI BEACH, Fla., May 09, 2025 (GLOBE NEWSWIRE) — The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ: CUBA) (the “Fund”) today announced that the Fund will pay a distribution pursuant to the Fund’s managed distribution policy (the “Policy”) using a combination of shares of common stock and cash.

    Distribution in Stock and Cash:

    The Fund has announced a distribution to be paid as follows:

    Declaration Date Ex-Date Record Date Payment Date Per Share
    05/09/2025 05/23/2025 05/23/2025 06/30/2025 $0.2325
             

    The distribution for stockholders will be paid in cash or shares of our common stock at the election of stockholders. The total amount of cash distributed to all stockholders will be limited to 20% of the total distribution to be paid, excluding any cash paid for fractional shares. The remainder of the distribution (approximately 80%) will be paid in the form of shares of our common stock. The exact distribution of cash and stock to any given stockholder will be dependent upon his/her election as well as elections of other stockholders, subject to the pro-rata limitation.

    The number of shares of common stock to be issued to stockholders receiving all or a portion of the dividend in shares of common stock will be based on the volume weighted average price per share of common stock on the Nasdaq Capital Market on June 12, 13, and June 16, 2025.

    Management believes that the cash and stock distribution will allow the Fund to strengthen its balance sheet and to be in a position to capitalize on potential future investment opportunities.

    The schedule above applies to the distribution for stockholders of record on the close of business on the record date.

    The details of the distribution will be described in the election form and accompanying materials that will be mailed to stockholders in connection with the distribution not later than promptly following the record date. Election forms must be returned on or before 5:00 p.m. Eastern Time on June 16, 2025 to be effective.

    Stockholders who do not return a timely and properly completed election form before the election deadline will be deemed to have made an election to receive 100% of their distribution in stock.

    Participants in the Fund’s dividend reinvestment plan will also receive an election form. The investment feature of the dividend reinvestment plan will be suspended for the distribution and will be reinstated after the distribution has been completed.

    Stockholders who hold their shares through a bank, broker or nominee, or in “street name” will not receive an election form directly from the Company and should receive information regarding the election process from their bank, broker or nominee. Street name holders should contact their bank, broker or nominee for additional information.

    In determining whether to elect to receive distributions in the form of stock or cash, stockholders are reminded that the Fund has filed preliminary proxy materials (“Proxy Materials”) with the U.S. Securities and Exchange Commission in connection with a special meeting of stockholders to be held on June 17, 2025, for its stockholders to consider and vote on proposals necessary to approve the Fund’s conversion from its current investment strategy and redirect the Fund to focus on a “CLO Equity Strategy”. With this change, the Fund’s primary investment objective will change to a total return strategy with a secondary objective of generating high current income for stockholders. In accordance with the change in investment objective, the Fund will focus on investing in equity and junior debt tranches of collateralized loan obligations, or “CLOs”. CLOs are portfolios of collateralized loans consisting primarily of below investment grade U.S. senior secured loans with a large number of distinct underlying borrowers across various industry sectors. In addition, the Proxy Materials describe other changes to be implemented by the Fund, including a) revisions to the terms of the investment management agreement between the Fund and is investment adviser, Thomas J. Herzfeld Advisors, Inc., and b) changes to the fundamental policies applicable to the Fund. Stockholders can obtain the Proxy Materials (when available) free of charge from the SEC’s website at www.sec.gov. The definitive Proxy Statement for the Fund also will be posted (when available) on the Fund’s website at www.herzfeld.com/cuba. In addition, free copies (when it becomes available) of the definitive Proxy Statement and other documents filed with the SEC may also be obtained by directing a request to the Fund at (800) 854-3863.

    Stockholders should consider the matters discussed in the Proxy Materials when determining whether to make the election to receive stock or cash with respect to the distribution.

    The Fund expects that distributions under the Policy will exceed investment income and available capital gains and thus expects that distributions under the Policy will likely include returns of capital for the foreseeable future. A return of capital may occur, for example, when some or all of a stockholder’s investment is paid back to the stockholder. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’ Furthermore, a return of capital distribution is not a guarantee of future distributions or yield. Any such returns of capital will decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order to maintain the level of distributions called for under its Policy, the Fund may have to sell portfolio securities at a less than opportune time.

    The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized capital gains and return of capital. All amounts are expressed per common share.

      Current Distribution % Breakdown of the Current Distribution Total Cumulative Distributions for the Fiscal Year to Date % Breakdown of the Total Cumulative Distributions for the Fiscal Year to Date
    Net Investment Income $0.00 0% $0.00 0%
    Net Realized Short- Term Capital Gains $0.00 0% $0.00 0%
    Net Realized Long- Term Capital Gains $0.2122 91.25% $0.2122 45.6%
    Return of Capital $0.0203 8.75% $0.2528 54.4%
    Total (per common share) $0.2325 100% $0.4650 100%
             

    The primary purpose of the Policy is to provide stockholders with a constant, but not guaranteed, fixed minimum rate of distribution (currently set at the annual rate of 15% of the Fund’s net asset value as determined on June 30, 2024). The Board recently amended the Policy to maintain the 15% annual rate of distribution, but at quarterly, semi-annual or annual periods of distribution to be reviewed by the Board each quarter. The purpose of the modification is to allow the Fund to maintain its 15% annual distribution of NAV, but provide flexibility in determining the timing of those distributions in order to account for required year-end regulatory distributions of capital gains necessary to maintain the Fund’s tax-free status. The Fund cannot predict what effect, if any, the Policy will have on the market price of its shares or whether such market price will reflect a greater or lesser discount to net asset value as compared to prior to the adoption of the Policy.

    The amount distributed per share is subject to change at the discretion of the Board. The Policy is subject to ongoing review by the Board to determine whether it should be continued, modified or terminated. The Board may amend the terms of the Policy, suspend the Policy, or terminate the Policy at any time without prior notice to the Fund’s stockholders if it deems such actions to be in the best interest of the Fund or its stockholders. The amendment or termination of the Policy could have an adverse effect on the market price of the Fund’s shares. On May 9, 2024, the Board approved certain modifications to the Policy and extended the Policy through June 30, 2025.

    With each distribution that does not consist solely of net investment income, the Fund will issue a notice to stockholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to stockholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during its full fiscal year and may be subject to changes based on tax regulations. The Fund will send stockholders a Form 1099-DIV for the respective calendar year that will tell them how to report these distributions for federal income tax purposes. Stockholders should consult their tax advisor for proper tax treatment of the Fund’s distributions.

    Under the Policy, the Fund will distribute all available investment income to its stockholders, consistent with its investment objective and as required by the Internal Revenue Code of 1986, as amended (the “Code”). The amount distributed per share is subject to change at the discretion of the Fund’s Board of Directors (“Board”). If sufficient investment income is not available, the Fund will distribute long-term capital gains and/or return capital to its stockholders in order to maintain its managed distribution level. The Fund is currently not relying on any exemptive relief from Section 19(b) of the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund may make additional distributions from time to time, including additional capital gain distributions at the end of the taxable year, if required to meet requirements imposed by the Code and/or the 1940 Act.

    Future distributions by the Fund may be made in cash or using a combination of shares of common stock and cash, as shall be determined from time to time by the Board.

    About Thomas J. Herzfeld Advisors, Inc.

    Thomas J. Herzfeld Advisors, Inc., founded in 1984, is an SEC registered investment advisor, specializing in investment analysis and account management in closed-end funds. The Firm also specializes in investment in the Caribbean Basin. The HERZFELD/CUBA division of Thomas J. Herzfeld Advisors, Inc. serves as the investment advisor to The Herzfeld Caribbean Basin Fund, Inc. a publicly traded closed-end fund (NASDAQ: CUBA).

    More information about the advisor can be found at www.herzfeld.com.

    Past performance is no guarantee of future performance. An investment in the Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price which is more or less than the original purchase price or the net asset value. An investor should carefully consider the Fund’s investment objective, risks, charges and expenses. Please read the Fund’s disclosure documents before investing.

    Forward-Looking Statements

    This press release, and other statements that TJHA or the Fund may make regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to: management’s beliefs that the cash and stock distribution will allow the Fund to strengthen its balance sheet and to be in a position to capitalize on potential future investment opportunities, when there can be no assurance either will occur; the tax consequences of the distributions to stockholders; and other factors may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund’s or TJHA’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions. TJHA and the Fund caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and TJHA and the Fund assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. With respect to the Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, particularly with respect to Cuba and other Caribbean Basin countries, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Fund or in the Fund’s net asset value; (2) the relative and absolute investment performance of the Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or TJHA, as applicable; (8) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or TJHA or the Fund; (9) TJHA’s and the Fund’s ability to attract and retain highly talented professionals; (10) the impact of TJHA electing to provide support to its products from time to time; (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions; and (12) the effects of an epidemic, pandemic or public health emergency, including without limitation, COVID-19. Annual and Semi-Annual Reports and other regulatory filings of the Fund with the SEC are accessible on the SEC’s website at www.sec.gov and on TJHA’s website at www.herzfeld.com/cuba, and may discuss these or other factors that affect the Fund. The information contained on TJHA’s website is not a part of this press release.

    Contact:
    Tom Morgan
    Chief Compliance Officer
    Thomas J. Herzfeld Advisors, Inc.
    1-305-777-1660

    The MIL Network –

  • MIL-OSI USA: Garbarino Introduces Pro-Law Enforcement Bills Ahead of National Police Week

    Source: United States House of Representatives – Representative Andrew Garbarino (R-NY)

    WASHINGTON, D.C. – Ahead of National Police Week, Congressman Andrew R. Garbarino (R-NY-02) introduced two key pieces of legislation to support law enforcement officers and reaffirm his commitment to the men and women who serve and protect our communities. The bills—the Law Enforcement Officer Bill of Rights Resolution and the Law Enforcement Officers Equity Act—aim to strengthen protections for officers and ensure fair retirement benefits for federal law enforcement professionals.

    “As we approach Police Week, I’m proud to introduce legislation that supports law enforcement officers both in their service today and in their futures,” said Rep. Garbarino. “Whether it’s affirming their rights on the job or ensuring they receive the benefits they’ve earned, we must continue standing with the men and women who put themselves in harm’s way to keep us safe. Our officers deserve not only our gratitude, but real action—and that’s what these bills deliver.”

    The Law Enforcement Officer Bill of Rights Resolution reaffirms the rights of local law enforcement officers and condemns efforts to defund, dismantle, or disband police departments. The resolution outlines several core protections, including:

    • Local law enforcement officer’s right to self-defense against physical threats
    • Local law enforcement officer’s right to legal recourse if a civilian attempts to assault the local law enforcement officer
    • Local law enforcement officer’s right to be protected from physical harassment
    • Local law enforcement officer’s right to equipment necessary for personal protection
    • Local law enforcement officer’s right to counsel or a representative present at any interview conducted as part of an investigation

    This resolution is supported by the Fraternal Order of Police (FOP), the National Association of Police Organizations (NAPO), and the Sergeants Benevolent Association (SBA) and is cosponsored by Representatives Nicole Malliotakis (R-NY-11), Claudia Tenney (R-NY-24), Mike Lawler (R-NY-17), Nick Langworthy (R-NY-23), Nick LaLota (R-NY-01), Brian Fitzpatrick (R-PA-01), Pete Stauber (R-MN-08), Randy Weber (R-TX-14), Mario Diaz-Balart (R-FL-26), and Elise Stefanik (R-NY-21).

    The Law Enforcement Officers Equity Act, introduced alongside RepresentativesGerry Connolly (D-VA-11) and Brian Fitzpatrick (R-PA-01), seeks to expand the federal definition of a “law enforcement officer” under the Federal Employees Retirement System (FERS) and Civil Service Retirement System (CSRS). The bill would ensure that qualified federal employees—including IRS officers, VA police, Postal Inspectors, and seized-property specialists—receive the same retirement benefits currently afforded to other law enforcement personnel.

    Specifically, the Law Enforcement Officers’ Equity Act would:

    • Provide federal officers with 6(c) retirement benefits and the ability to retire after 20 years of service at the age of 50, or after 25 years of service at any age
    • Allow incumbent law enforcement officers federal service after the enactment of this Act to be considered service performed as a law enforcement officer for retirement purposes
    • Expand the definition of “law enforcement officer” for retirement benefits to include all GS-0083 officers. That change would grant law enforcement officer status to:
      • employees who are authorized to carry a firearm and whose duties include the investigation and/or apprehension of suspected criminals
      • employees of the Internal Revenue Service whose duties are primarily the collection of delinquent taxes and securing delinquent returns
      • employees of the U.S. Postal Inspection Service, and employees of the Department of Veterans Affairs who are department police officers

    Rep. Garbarino has consistently championed legislation that supports law enforcement and their families and has worked to ensure officers receive the resources, respect, and recognition they’ve earned.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Ahead of Mother’s Day, Senator Murray, King County Executive Braddock, Moms and Local Parents Slam Trump’s “Baby” Tax, Painful Unnecessary Price Hikes for Families

    US Senate News:

    Source: United States Senator for Washington State Patty Murray

    Washington Post: Trump’s tariffs hit baby industry hard, threatening parents with price hikes, shortages

    Axios: “Baby tax”: Trump tariffs send baby gear prices soaring

    *** B-ROLL AND PHOTOS HERE***

    Seattle, WA — Today, ahead of Mother’s Day, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, held a press conference at WestSide Baby in Seattle to highlight how President Trump’s chaotic trade war is raising costs on moms and families across the board. Trump’s sweeping tariffs are the highest in decades, and are estimated to cost American families more than $4,000 per year—the largest tax increase since 1968.

    Senator Murray was joined by King County Executive Shannon Braddock, Executive Director of WestSideBaby Allie Lindsay Johnson, Brittney Geleynse owner of Clover Toys, and local moms and parents who all outlined how Trump’s tariffs are already raising the cost of items moms need for their families, purchases that can’t be pushed off—from car seats and strollers, to high chairs, kids clothes, and cribs.

    The press conference comes as new reporting lays out how Trump’s tariffs are making it more expensive to raise kids, driving up prices on children’s products and threatening shortages of critical baby gear at a time when household budgets are already under strain.

    “The last thing any mom wants right now is higher costs for things like diapers, high chairs, and car seats—but that is exactly what Donald Trump is delivering with his nonsense trade war,” said Senator Murray. “His across-the-board tariffs are already raising prices for new moms and families. With all the costs new parents are going to have to pay for these goods, Trump has essentially announced a new ‘baby’ tax. If you are a billionaire, Republicans are getting ready to give you a massive tax break. But babies? Moms? Dads? Trump says you are out of luck. Yes, Trump’s ‘baby’ tax is going to mean fewer toys, smaller birthdays—but it is also going to mean parents struggling to buy high chairs or specialty formula, struggling to buy a safe bassinet, or a stroller, or a car seat.”

    “Well, my message to moms is: I got into politics to fight for moms like me—and I am never going to stop,” continued Senator Murray. “I know what you are going through, all the things you already have to worry about. You should not have to worry about Trump’s new baby tax driving up costs as well. Congress CAN reverse these tariffs—we could do it next week if Republicans chose to. So, I am going to be lifting up your voices, and using mine—to push for Congress to act and demand this administration reverse their incredibly damaging price hikes on families.”

    “Tariffs that drive up the cost of baby essentials like car seats, strollers and diapers aren’t just bad economics—they’re bad values,” said King County Executive Shannon Braddock. “Working families are the ones who pay the price. We need real leadership in Washington, D.C., and I’m grateful Senator Murray is standing with us in this fight.” 

    “Children should not be the casualties of a trade war. Items like car seats, strollers, and cribs aren’t luxuries—they’re critical for a child’s safety and development. At WestSide Baby, we regularly see parents forced to choose between paying rent or buying a car seat. For families facing poverty or sudden financial strain, even small price increases can mean going without or making unsafe compromises,” said Allie Lindsay Johnson, Executive Director of WestSide Baby.

    “As a parent, I want the best possible future for my children. I want to give them the tools and opportunities to get ahead in life, not put limits on what they can do. But Trump’s unnecessary tariffs are increasing prices on my baby’s basic needs like his formula, stroller, and car seat,” said Salia Gartrell, a public school teacher and mother of four from Kent, WA. “My family isn’t the only one feeling the financial squeeze from these bad tariffs. Even though my boys are active in their community, and my husband and I work hard to give them every opportunity, the rising costs of living that are due to bad policies like Trump’s Baby Tax leave me and my husband no other choice but to cut back on what our kids can do.”

    “Tariffs on imported toys present a significant operational challenge for Clover Toys, directly impacting our costs and forcing us to navigate complex pricing and inventory decisions,” said Brittney Geleynse owner of Clover Toys. “We are committed to our customers and the Seattle community, and we’re working hard to manage these pressures while continuing to offer the curated selection they expect from their local toy store.”

    Senator Murray has been a vocal opponent of Trump’s chaotic trade war from the very start and has been lifting up the voices of people in Washington state harmed by this administration’s approach to trade and calling on Republicans to end Trump’s trade war—which Congress has the power to do—and take back Congress’ Constitutionally-granted power to impose tariffs. Earlier last month, Senator Murray brought together leaders across Washington state who highlighted how Trump’s ongoing trade war is already a devastating hit to Washington state’s economy, businesses, and our agriculture sector. Senator Murray also took to the Senate floor to lay out how Trump’s chaotic trade war is seriously threatening our economy, American businesses, families’ retirement savings, and so much else.

    Murray has also been sounding the alarm on Trump’s tariffs across Washington state. Recently, Senator Murray held a roundtable discussion in Tacoma with local businesses and ports, met with farmers in Yakima to discuss the consequences of Trump’s tariffs, and held a roundtable discussion in Vancouver at a local metal fabrication company to highlight how Trump’s trade war is hurting businesses and our economy Washington state. Last month, Senator Murray met with small business owners in Seattle’s University District to hear how Trump’s tariffs and the broader economic uncertainty are affecting them, and later she met with farmers in Skagit County to discuss tariffs, and visited Blaine near the Canadian border to highlight the impacts of Trump’s trade war. Just last week, Senator Murray rallied her West Coast colleagues and ports from Washington state and California to sound the alarm on how Trump’s tariffs will mean bare shelves, higher prices, and painful layoffs.

    From Groundwork Collaborative – Trump’s Tariffs are increasing prices on everything:

    Car seats: UPPAbaby, a major manufacturer of car seats and strollers, announced increased prices across most of its products beginning May 5. Nuna has increased prices by $50, and Evenflo has increased prices by 10-40%.

    • This represents a major challenge for parents, as car seats – which can run over $400 – are required by law in all 50 states and should be bought new due to safety concerns.
    • New parents spend, on average, $1,000 on baby safety gear.

    Strollers: To put it in Trump’s words, prices are rising for “the thing that you carry the babies around in.” UPPAbaby’s popular Vista stroller just increased from $900 to $1,200. Or, for a cheaper option, Bombi’s flagship stroller now costs $225 instead of $199.

    • Few strollers are made in the U.S. Most are made in China, while others come from Italy, Taiwan, Hungary, and the Netherlands.

    Cribs: Since the average parent spends approximately $2,000 on a new nursery, it is terrible news that three-quarters of all baby furniture is made in China. The Consumer Product Safety Commission does not recommend buying used cribs, as unsafe sleep environments are the main cause of injuries and deaths with nursery products.

    • The popular smart bassinet SNOO is manufactured in China and might soon cost more than its current $1,695 price tag.

    High Chairs & Sippy Cups: The CEO of popular baby accessory brand Munchkin, Steve Dunn, said the company will increase prices on about 90% of products, likely by at least 20%. Their cheapest high chair is currently $170.

    Clothes: Carter’s has already raised prices on many items. Approximately 74% of its products are sourced from Cambodia, Vietnam, Bangladesh, and India, which now face the 10% universal tariff rate.

    Toys: About 80% of all toys imported to the U.S. come from China, according to the Toy Association. Mattel CFO Anthony DiSilvestro has warned of possible price hikes as 40% of Mattel toys come from China.

    Senator Murray’s remarks, as delivered, are below:

    “As families across the country get ready to celebrate Mother’s Day, the last thing any mom wants right now is higher costs for things like diapers, high chairs, and car seats—but that is exactly what Donald Trump is delivering with his all-out trade war. His across-the-board tariffs are ALREADY raising prices for new moms and families.

    “Because just about every single car seat sold in this country, just about every single stroller, just about every bassinet and changing table—is made somewhere else. And the vast majority of them are made in China—meaning Trump’s tariffs will jack up the cost by 145%. To say nothing of baby clothes made in other countries in the Pacific, or specialty baby formulas imported from Europe, or the materials and machinery we import—even for products made in America—like bamboo fibers in some diapers.

    “With all the costs new parents are going to have to pay for these goods, Trump has essentially announced a new “baby” tax. If you are a billionaire,  Republicans are getting ready to give you a massive tax break. But babies? Moms? Dads? Trump says you are out of luck.

    “Maybe this is hard for a billionaire who calls strollers “the thing that you carry babies around in” to understand—but most babies in America aren’t born with a golden spoon in their mouth. Parents are already struggling, the concern I hear from new parents almost more than anything else—is simply “how do we afford this?” After all, child care can cost more than college tuition and Trump’s trade war is just going to make that—and everything else—worse.

    “This isn’t about having to skimp on Christmas—though Trump has made it all too clear he’s eager to play Grinch, and toys are definitely going to get more expensive. Trump’s new taxes are making sure of that.


    “But every parent understands there is yet a bigger problem here. There are a lot of costs that are not really optional! You can’t just not buy diapers. You can’t just go without high chairs or sippy cups—even though manufactures are already warning about 20 percent price increases.

    “And—as much as they like to wriggle out of them—you can’t just go without baby clothes—even though three-quarters of them are made abroad and are about to get taxed out the wazoo. And those are just everyday necessities—don’t forget the big ticket items. No family should have to choose between cost and safety as they’re making decisions for their children.

    “Some companies have already raised stroller prices by hundreds of dollars. And then there’s cribs. The average parent already spends two thousand dollars on a crib—this is a critical item. And three-quarters of all baby furniture is made in China—meaning Trump wants to slap a 145% tax on it.

    “The same goes for car seats which are virtually all made in China. You absolutely cannot just go without a car seat, and safety experts emphasize you should not buy them used. But with Trump’s 145% tax—parents are wondering how they can even afford them at all. That’s what Trump’s trade war is doing to families! Trump’s baby tax is not just expensive for families and it is not just one more callous and careless policy from a billionaire without a clue—it is also dangerous.

    “Yes, it is going to mean fewer toys, smaller birthdays—but it is also going to mean parents struggling to buy high chairs or specialty formula, struggling to buy a safe bassinet, or a stroller, or a car seat.

    “Well my message to moms: I got into politics to fight for moms like me—and I am never going to stop. I know what you are going through, all the things you already have to worry about. You should not have to worry about Trump’s new baby tax driving up costs as well. Congress CAN reverse these tariffs—we could do it next week if Republicans chose to. So, I am going to be lifting up your voices, and using mine—to push for Congress to act and demand this administration reverse their incredibly damaging price hikes on families.”

    MIL OSI USA News –

  • MIL-OSI USA: New Jersey Woman Sentenced to Prison for Forced Labor and Other Federal Crimes

    Source: US State of California

    A New Jersey woman was sentenced on Wednesday to 45 months in prison for forced labor and other crimes related to her coercive scheme to compel two victims to perform domestic labor and childcare in her home.

    Bolaji Bolarinwa, 51, of Moorestown, previously was found guilty of two counts of forced labor, one count of alien harboring for financial gain and two counts of document servitude following a two-week trial before U.S. District Judge Karen M. Williams in Camden federal court. Judge Williams imposed the sentence today in Camden federal court.

    According to documents filed in this case and the evidence at trial, from December 2015 to October 2016, Bolarinwa — originally from Nigeria, but living in New Jersey as a U.S. citizen — recruited two victims to come to the United States and then coerced them to perform domestic labor and childcare services for her children through physical harm, threats of physical harm, isolation, constant surveillance and psychological abuse. The defendant engaged in this conduct knowing that one of the victims was out of lawful immigration status while working in her home.

    Once the first victim arrived in the United States in December 2015, Bolarinwa confiscated her passport and coerced her through threats of physical harm to her and her daughter, verbal abuse, isolation and constant surveillance to compel her to work every day, around-the-clock for nearly a year. Bolarinwa then recruited a second victim to come to the United States on a student visa. When the second victim arrived in the United States in April 2016, Bolarinwa similarly confiscated her passport and coerced her to perform household work and childcare but relied more heavily on physical abuse. The two victims lived and worked in Bolarinwa’s home until October 2016, when the second victim notified a professor at her college, who reported the information to the FBI.

    In addition to the prison term, Judge Williams sentenced Bolarinwa to three years of supervised release, imposed a $35,000 fine, and ordered Bolarinwa to pay $87,518.72 in restitution to the victims of her offenses.

    “The defendant exploited her relationship with the victims to lure them to the United States with false promises,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The defendant confiscated the victims’ immigration documents and subjected them to threats, physical force, and mental abuse to coerce them to work long hours for minimal pay. This prosecution should send a strong message that such forced labor will not be tolerated in our communities. The Justice Department is committed to fully enforcing our federal human trafficking statutes to vindicate the rights of survivors and hold human traffickers accountable for such shameful exploitation of vulnerable victims.”

    “Today’s sentence vindicates the rights of two vulnerable women who the defendant subjected to grueling hours and coercive abuse in her home,” said U.S. Attorney Alina Habba for District of New Jersey. “Forced labor and human trafficking are atrocious crimes that have no place in our society. My office and the entire Department of Justice is committed to standing up for vulnerable human trafficking victims and holding their traffickers accountable.”

    “Human nature is generally good. There are situations though that prove some people display more cruel and inhumane behavior,” said Acting Special Agent in Charge Terence G. Reilly of the FBI Newark Field Office. “Bolarinwa lured women with false promises, held them captive, and forced them clean her home and care for her children. Then took it a sickening step further by physically abusing them. Luckily, one of the victims had the courage to tell someone. We ask anyone who notices an odd situation, something that doesn’t look or feel right, to please call us so we can help victims that may be hiding in plain sight.”

    U.S. Attorney Alina Habba for the District of New Jersey credited special agents of the FBI, under the direction of Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to today’s sentence.

    This case was prosecuted as part of the U.S. Attorney’s Office for the District of New Jersey’s Human Trafficking Task Force, which was formed in 2025. The Task Force brings together federal and state agencies to collaborate and dedicate resources to combat human trafficking and prosecute human trafficking offenders who endanger the safety of the community. The Human Trafficking Task Force is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, U.S. Department of Homeland Security, Homeland Security Investigations, U.S. Department of Labor, U.S. Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service, and the New Jersey Office of Attorney General.

    The government is represented by Assistant U.S. Attorney Jeffrey Bender for the District of New Jersey and Trial Attorney Elizabeth Hutson of the Civil Rights Division’s Human Trafficking Prosecution Unit.

    MIL OSI USA News –

  • MIL-OSI USA: Former D.C.-Area Attorney Charged with Tax Crimes and Making False Statements to Federal Authorities

    Source: US State of California

    An indictment was unsealed today charging an attorney with evading taxes on approximately $1 million of income, as well as filing false tax returns and making false statements to federal authorities. Richard Graham Foote O’Donoghue previously lived in Washington, D.C., but currently lives in the United Kingdom. He was arrested on entering the United States on May 9, based on the criminal charges.

    The following is according to the indictment: from 2012 through 2015, O’Donoghue made substantial income first as an independent contractor for several non-U.S. businesses, including a defense contractor based out of Dubai, United Arab Emirates, and then as CEO of that contractor. While he was CEO, O’Donoghue also allegedly received significant bonuses and benefits including a car and driver and a rented luxury villa for his family.

    According to the indictment, O’Donoghue did not timely file tax returns for tax years 2012 through 2014. In 2016, however, O’Donoghue hired a return preparer to prepare tax returns for 2012 through  tax year 2015. O’Donoghue allegedly provided false information to his return preparer about his employment and income. For example, O’Donoghue allegedly told the return preparer that he was the general manager of the company, not the CEO, and concealed his bonuses and the expenses the company paid on his behalf. These lies allegedly caused the return preparer to prepare and file false tax returns for those years that underreported his income by approximately $1 million. Because O’Donoghue had previously made estimated payments, his false returns allegedly requested refunds from the IRS of more than $247,000 — much of which the IRS paid out.

    The indictment further alleges that in February 2023, O’Donoghue made false statements about his income and other matters to law enforcement agents and Department of Justice prosecutors.

    If convicted, O’Donoghue faces a maximum penalty of five years in prison for each tax evasion count, a maximum penalty of three years in prison for each count of subscribing to a false tax return, and a maximum penalty of five years in prison for the false statements count. O’Donoghue also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

    IRS Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case, with assistance from His Majesty’s Revenue & Customs of the United Kingdom. Assistance was also provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, the United Kingdom, and the United States.

    Assistant Chief Sarah Ranney and Trial Attorney Ezra Spiro of the Tax Division and Assistant U.S. Attorney Joshua Gold for the District of Columbia are prosecuting the case.

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

    MIL OSI USA News –

  • MIL-OSI Security: Former D.C.-Area Attorney Charged with Tax Crimes and Making False Statements to Federal Authorities

    Source: United States Attorneys General 13

    An indictment was unsealed today charging an attorney with evading taxes on approximately $1 million of income, as well as filing false tax returns and making false statements to federal authorities. Richard Graham Foote O’Donoghue previously lived in Washington, D.C., but currently lives in the United Kingdom. He was arrested on entering the United States on May 9, based on the criminal charges.

    The following is according to the indictment: from 2012 through 2015, O’Donoghue made substantial income first as an independent contractor for several non-U.S. businesses, including a defense contractor based out of Dubai, United Arab Emirates, and then as CEO of that contractor. While he was CEO, O’Donoghue also allegedly received significant bonuses and benefits including a car and driver and a rented luxury villa for his family.

    According to the indictment, O’Donoghue did not timely file tax returns for tax years 2012 through 2014. In 2016, however, O’Donoghue hired a return preparer to prepare tax returns for 2012 through  tax year 2015. O’Donoghue allegedly provided false information to his return preparer about his employment and income. For example, O’Donoghue allegedly told the return preparer that he was the general manager of the company, not the CEO, and concealed his bonuses and the expenses the company paid on his behalf. These lies allegedly caused the return preparer to prepare and file false tax returns for those years that underreported his income by approximately $1 million. Because O’Donoghue had previously made estimated payments, his false returns allegedly requested refunds from the IRS of more than $247,000 — much of which the IRS paid out.

    The indictment further alleges that in February 2023, O’Donoghue made false statements about his income and other matters to law enforcement agents and Department of Justice prosecutors.

    If convicted, O’Donoghue faces a maximum penalty of five years in prison for each tax evasion count, a maximum penalty of three years in prison for each count of subscribing to a false tax return, and a maximum penalty of five years in prison for the false statements count. O’Donoghue also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

    IRS Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case, with assistance from His Majesty’s Revenue & Customs of the United Kingdom. Assistance was also provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, the United Kingdom, and the United States.

    Assistant Chief Sarah Ranney and Trial Attorney Ezra Spiro of the Tax Division and Assistant U.S. Attorney Joshua Gold for the District of Columbia are prosecuting the case.

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

    MIL Security OSI –

  • MIL-OSI Russia: IMF Executive Board Completes First Review of the Extended Fund Facility Arrangement with Pakistan and Approves the Request for an Arrangement under the Resilience and Sustainability Facility

    Source: IMF – News in Russian

    May 9, 2025

    • The IMF Executive Board completed the first review under the Extended Fund Facility (EFF) Arrangement, allowing the authorities to draw the equivalent of about $1 billion. The authorities have demonstrated strong program implementation, which has contributed to improving financing and external conditions, and a continuing economic recovery.
    • Moving forward, policy priorities will include advancing reforms to strengthen competition, raise productivity and competitiveness, reform SOEs, improve public service provision and energy sector viability, and build climate resilience.
    • The Executive Board also approved the authorities request for an arrangement under the Resilience and Sustainability Facility (RSF), which will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters, with access of around $1.4 billion.

    Washington, DC: Today, the Executive Board of the International Monetary Fund (IMF) completed the first review of Pakistan’s economic reform program supported by the EFF Arrangement. This decision allows for an immediate disbursement of around $1 billion (SDR 760 million), bringing total disbursements under the arrangement to about $2.1 billion (SDR 1.52 billion). In addition, the IMF Executive Board approved the authorities’ request for an arrangement under the Resilience and Sustainability Facility (RSF), with access of about US$1.4 billion (SDR 1 billion).

    Pakistan’s 37-month EFF was approved on September 25, 2024, and aims to build resilience and enable sustainable growth. Key priorities include (i) entrenching macroeconomic sustainability through consistent implementation of sound macro policies, including rebuilding international reserve buffers and broadening of the tax base; (ii) advancing reforms to strengthen competition and raise productivity and competitiveness; (iii) reforming SOEs and improving public service provision and energy sector viability; and (iv) building climate resilience.

    Pakistan’s policy efforts under the EFF have already delivered significant progress in stabilizing the economy and rebuilding confidence, amidst a challenging global environment. Fiscal performance has been strong, with a primary surplus of 2.0 percent of GDP achieved in the first half of FY25, keeping Pakistan on track to meet the end-FY25 target of 2.1 percent of GDP. Inflation fell to a historic low of 0.3 percent in April, and progress on disinflation and steadier domestic and external conditions, have allowed the State Bank of Pakistan to cut the policy rate by a total of 1100 bps since June 2025. Gross reserves stood at $10.3 billion at end-April, up from $9.4 billion in August 2024, and are projected to reach $13.9 billion by end-June 2025 and continue to be rebuilt over the medium term.

    The RSF will support the authorities’ efforts to reduce vulnerabilities to natural disasters and to build economic and climate resilience. The authorities’ program: (i) prioritizes resilience to natural disasters and strengthen public investment processes at all levels of government; (ii) makes the use of scarce water resources more efficient, including through better pricing; (iii) strengthens coordination of natural disaster response and financing between federal and provincial governments; (iv) improves the information architecture, for and disclosure of, climate-related risks by banks and corporates; and (v) supports Pakistan’s efforts to meet its mitigation commitments and reduce related macro-critical risks.

    Following the Executive Board discussion, Nigel Clarke, Deputy Managing Director and Chair, made the following statement:

    “Pakistan has made important progress in restoring macroeconomic stability despite a challenging environment. Since the approval of the Extended Fund Facility, the economy continues to recover, with inflation sharply lower and external buffers notably stronger. Risks to the outlook remain elevated, however, particularly from global economic policy uncertainty, rising geopolitical tensions, and persistent domestic vulnerabilities. Against this backdrop, the authorities need to maintain sound macroeconomic policies and accelerate reforms to safeguard the macroeconomic gains and underpin stronger and sustainable, private sector-led medium-term growth.

    “The steadfast implementation of the FY2025 budget and the passage of key fiscal reforms, notably the Agricultural Income Tax, underpin the process of rebuilding policy making credibility. Continuing to mobilize greater revenue from undertaxed sectors and the noncompliant will make the tax system more equitable and efficient. This, combined with federal and provincial spending discipline, will strengthen sustainability, build resilience, and reduce the public sector’s crowding out of private credit.

    “Timely implementation of power tariff adjustments has helped reduce the stock and flow of circular debt. Meanwhile, cost-side reforms are showing early signs of success but need to be accelerated to safeguard the energy sector’s viability and improve Pakistan’s competitiveness.

    “The State Bank of Pakistan’s (SBP) tight monetary policy stance has been pivotal in reducing inflation to historic lows. Monetary policy should remain appropriately tight and data-dependent to ensure inflation is anchored within the SBP’s target range. A more flexible exchange rate will facilitate the adjustment to external and domestic shocks, aiding the rebuilding of reserves. Prompt action to address undercapitalized financial institutions and vigilance over the financial sector are necessary for financial stability. Strengthening of AML/CFT frameworks is also needed.

    “Accelerating structural reforms will unlock Pakistan’s competitiveness, creating conditions to attract high-impact private investment. Reform priorities include reducing trade and investment barriers, advancing SOE reforms, and decisively strengthening governance and anti-corruption institutions.

    “Reducing Pakistan’s vulnerability to extreme weather events will enhance macroeconomic stability and fiscal sustainability. The reforms under the Resilience and Sustainability Facility aim to build resilience to natural disasters by strengthening public investment processes, supporting efficient use of scarce water resources, strengthening coordination of natural disaster response and financing, improving the information on climate-related risks, and supporting Pakistan in meeting its international commitments.”

    Table 1. Pakistan: Selected Economic Indicators, FY2023–FY2025 1/

    Population: 236.0 million (2023/24)

    Per capita GDP: US$1,566.0 (2023/24)

    Quota: SDR 2,031 million

    Poverty rate: 21.9 percent

    Main exports: Textiles (US$16.3 billion, 2023/24)

    (national line; FY2019)

    Key export markets: European Union, United States, UAE

    FY2024

    FY2025

    FY2026

    Proj.

    Proj.

    Output and prices (% change)

    Real GDP at factor cost

    2.5

    2.6

    3.6

    Employment (%)

    Unemployment rate

    8.3

    8.0

    7.5

    Prices (%)

    Consumer prices, period average

    23.4

    5.1

    7.7

    Consumer prices, end of period

    12.6

    6.5

    6.6

    General government finances (% GDP)

    Revenue and grants

    12.6

    15.9

    15.2

    Expenditure

    19.4

    21.6

    20.3

    Budget balance, including grants

    -6.8

    -5.6

    -5.1

    Budget balance, excluding grants

    -6.8

    -5.7

    -5.1

    Primary balance, excluding grants

    0.9

    2.1

    1.6

    Underlying primary balance (excluding grants) 2/

    0.9

    1.0

    1.6

    Total general government debt excl. IMF obligations

    67.9

    71.2

    69.2

    External general government debt

    22.7

    24.0

    22.2

    Domestic general government debt

    45.2

    47.3

    47.0

    General government debt incl. IMF obligations

    70.1

    73.6

    71.9

    General government and government guaranteed debt incl. IMF

    74.1

    77.6

    75.6

    Monetary and credit (% change, unless otherwise indicated)

    Broad money

    16.0

    11.0

    14.6

    Private credit

    6.0

    11.0

    17.5

    Six-month treasury bill rate (%) 3/

    21.5

    …

    …

    Balance of Payments (% GDP, unless otherwise indicated)

    Current account balance

    -0.5

    -0.1

    -0.4

    Foreign direct investment

    0.6

    0.5

    0.6

    Gross reserves (millions of U.S. dollars) 4/

    9,390

    13,921

    17,682

    Months of next year’s imports of goods and services

    1.6

    2.3

    2.8

    Total external debt

    31.7

    33.1

    31.3

    Exchange rate (% change)

    Real effective exchange rate

    15.4

    …

    …

       Sources: Pakistani authorities; World Bank; and IMF staff estimates and projections.

       1/ Fiscal year ends June 30.

     

     

    		              

       2/ Excludes one-off transactions, including asset sales. In FY25 it excludes the projected windfall from exceptionally high SBP dividends.

     

       3/ Period average.

    		                

       4/ Excluding gold and foreign currency deposits of commercial banks held with the State Bank of Pakistan.

    		                
    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Mayada Ghazala

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/05/09/pr-25137-pakistan-imf-completes-1st-rev-of-eff-arrang-and-approves-req-for-arrang-under-rsf

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Security: New Jersey Woman Sentenced to Prison for Forced Labor and Other Federal Crimes

    Source: Office of United States Attorneys

    CAMDEN, N.J. – A Burlington County woman was sentenced to 45 months in prison for forced labor and other crimes related to her coercive scheme to compel two victims to perform domestic labor and childcare in her home, U.S. Attorney Alina Habba and Assistant Attorney General Harmeet Dhillon of the Justice Department’s Civil Rights Division announced.

    Bolaji Bolarinwa, 51, of Moorestown, previously was found guilty of two counts of forced labor, one count of alien harboring for financial gain and two counts of document servitude following a two-week trial before U.S. District Judge Karen M. Williams in Camden federal court. Judge Williams imposed the sentence in Camden federal court.

    “This sentence vindicates the rights of two vulnerable women who the defendant subjected to grueling hours and coercive abuse in her home.  Forced labor and human trafficking are atrocious crimes that have no place in our society.  My office and the entire Department of Justice is committed to standing up for vulnerable human trafficking victims and holding their traffickers accountable.”

    – U.S. Attorney Alina Habba

    “The defendant exploited her relationship with the victims to lure them to the United States with false promises,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The defendant confiscated the victims’ immigration documents and subjected them to threats, physical force, and mental abuse to coerce them to work long hours for minimal pay. This prosecution should send a strong message that such forced labor will not be tolerated in our communities. The Justice Department is committed to fully enforcing our federal human trafficking statutes to vindicate the rights of survivors and hold human traffickers accountable for such shameful exploitation of vulnerable victims.”

    “Human nature is generally good. There are situations though that prove some people display more cruel and inhumane behavior,” said Acting Special Agent in Charge Terence G. Reilly of the FBI Newark Field Office. “Bolarinwa lured women with false promises, held them captive, and forced them clean her home and care for her children. Then took it a sickening step further by physically abusing them. Luckily, one of the victims had the courage to tell someone. We ask anyone who notices an odd situation, something that doesn’t look or feel right, to please call us so we can help victims that may be hiding in plain sight.” 

    According to documents filed in this case and the evidence at trial:

    From December 2015 to October 2016, Bolarinwa – originally from Nigeria, but living in New Jersey as a U.S. citizen – recruited two victims to come to the United States and then coerced them to perform domestic labor and childcare services for her children through physical harm, threats of physical harm, isolation, constant surveillance and psychological abuse. The defendant engaged in this conduct knowing that one of the victims was out of lawful status while working in her home.

    Once the first victim arrived in the United States in December 2015, Bolarinwa confiscated her passport and coerced her through threats of physical harm to her and her daughter, verbal abuse, isolation and constant surveillance to compel her to work every day, around-the-clock for nearly a year.  Bolarinwa then recruited a second victim to come to the United States on a student visa. When the second victim arrived in the United States in April 2016, Bolarinwa similarly confiscated her passport and coerced her to perform household work and childcare but relied more heavily on physical abuse.  The two victims lived and worked in Bolarinwa’s home until October 2016, when the second victim notified a professor at her college, who reported the information to the FBI.

    In addition to the prison term, Judge Williams sentenced Bolarinwa to 3 years of supervised release, imposed a $35,000 fine, and ordered Bolarinwa to pay $87,518.72 in restitution to the victims of her offenses.

    U.S. Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to this sentence.

    This case was prosecuted as part of the U.S. Attorney’s Office for the District of New Jersey’s Human Trafficking Task Force, which was formed in 2025. The Task Force brings together federal and state agencies to collaborate and dedicate resources to combat human trafficking and prosecute human trafficking offenders who endanger the safety of the community. The Human Trafficking Task Force is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, U.S. Department of Homeland Security, Homeland Security Investigations, U.S. Department of Labor, U.S. Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service, and the New Jersey Office of Attorney General.

    The government is represented by Assistant U.S. Attorney Jeffrey Bender for the District of New Jersey and Trial Attorney Elizabeth Hutson of the Civil Rights Division’s Human Trafficking Prosecution Unit.

                                                               ###

    Defense counsel: Jeffrey Zucker, Esq. 

    MIL Security OSI –

  • MIL-OSI Security: New York tax preparer sentenced to two years in prison for submitting fraudulent pandemic relief applications

    Source: Office of United States Attorneys

    RICHMOND, Va. – A New York man was sentenced today to two years in prison for making false statements on loan applications he submitted on behalf of his clients through a pandemic relief program.

    According to court documents, Baltej Singh Brar, 42, of South Richmond Hill, New York, owned and operated Aspire Tax & Accounting Services Inc., a tax preparation, accounting, and consulting firm where Brar was an Internal Revenue Service (IRS) registered tax preparer. In 2021, Brar began filing loan applications on behalf of other individuals through the Paycheck Protection Program (PPP), a COVID-19 relief program intended to provide loans backed by the Small Business Administration (SBA) to certain businesses, nonprofit organizations, and others to help them remain afloat during the pandemic.

    Brar advertised, including on TikTok, that he would file PPP loan applications on behalf of clients in exchange for a flat up-front fee paired with 10% of the loan value after the loan was approved. Brar instructed prospective PPP applicants to provide him with their Social Security number, a copy of their driver’s license, email address, prior bank statements, 2019 tax return, and a void check to be used as supporting documentation on applications.

    Most of Brar’s clients were sole proprietors, including taxi drivers, truck drivers, and construction workers. Where clients’ prior year incomes fell below the threshold to receive the maximum PPP loan amount of $20,833, Brar falsely inflated the income amounts in the PPP applications to trigger the maximum loan amount. Brar generated and submitted false and fabricated IRS forms as supporting documentation. Brar certified on each application that the information provided in the applications and supporting documents and forms was “true and accurate in all material respects.”

    Many of Brar’s clients were eligible to receive PPP loans, though not in the inflated amounts of the PPP loan applications that Brar prepared. Others were not entitled to receive PPP loans at all. Across the hundreds of PPP loan applications that Brar falsified, Brar caused the SBA at least $550,000 in actual losses.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Field Office; Harry Chavis, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, New York Field Office; Edward Gallashaw, Acting Inspector in Charge of the United States Postal Inspection Service, New York Division; Brian Tucker, Special Agent in Charge of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau Office of Inspector General, Eastern Region; Patrick J. Freaney, Special Agent in Charge of the U.S. Secret Service, New York Field Office; and Amaleka McCall-Brathwaite, Eastern Region Special Agent in Charge for the Small Business Administration Office of Inspector General, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney Jr.

    Assistant U.S. Attorney Avi Panth prosecuted the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-148.

    MIL Security OSI –

  • MIL-OSI USA: Enacted Budget Cuts Taxes for Middle-Class New Yorkers

    Source: US State of New York

    overnor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget to put money back in the pockets of millions of New Yorkers. This includes tripling the size of New York’s Child Tax Credit, cutting taxes for middle class New Yorkers, sending inflation refund checks to millions of households and ensuring free school meals for students statewide. These initiatives help address the rising cost of living for families of all sizes and across the income spectrum. When accounting for their collective impact, these policies will deliver nearly $5,000 of relief for many families of five in New York over the coming year and beyond.

    “The cost of living is still too damn high, so I promised to put more money in your pockets — and we got it done,” Governor Hochul said. “Putting money back in the pockets of millions of families means helping New Yorkers afford the rising costs of groceries, raising kids, and just enjoying life. When I said your family is my fight, I mean it — and I’ll never stop fighting for you.”

    Expanding New York’s Child Tax Credit

    The FY 2026 Budget includes Governor Hochul’s plan to give 1.6 million New York families an annual tax credit of up to $1,000 per child under age four and up to $500 per child from four through sixteen. This is the largest expansion of New York’s child tax credit in its history — and it will benefit approximately 2.75 million children statewide. Governor Hochul’s expansion of the credit will double the size of the average credit going out to families from $472 to $943.

    This historic expansion of New York’s child tax credit will drive significant assistance to families with the youngest children and help families across the income spectrum. By eliminating a longstanding provision that restricted New York’s poorest families from accessing the credit while also delivering new relief to many middle-class families whose incomes were previously too high to qualify for the credit. As a result, more than 187,000 children will now be newly eligible for the credit.

    The revamped credit will be instrumental in helping to address child poverty in New York State, cutting poverty among children statewide by 8.2 percent, and when combined with other measures already advanced by Governor Hochul, including drastically expanding subsidized child care, reducing child poverty by 17.7 percent.

    For example, under New York’s newly expanded child tax credit, a family of four with a toddler and school-age child, and a household income up to $110,000, would receive a credit of $1,500 per year — representing nearly $1,000 more per year than what that family receives under the current program. Additionally, the expanded credit means that even a family of four with household income of $170,000 would receive over $500 per year. That family would not have qualified for any credit under the current program.

    Cutting Taxes for the Middle Class

    The FY 2026 Budget includes Governor Hochul’s plan to cut taxes for more than 75 percent of all tax filers in New York. This huge win will deliver nearly $1 billion annually in tax relief to 8.3 million New Yorkers. This will provide savings to taxpayers earning up to $323,000 for joint filers.

    Under this tax cut, nearly 80% of New Yorkers will start to see fewer state taxes taken out in your first payroll check of 2026.

    Once the rate change is fully phased in, the middle class tax cut will deliver hundreds of dollars in average savings to three out of every four taxpayers in the state. This will bring taxes for the middle class to their lowest level in 70 years.

    Sending Inflation Refund Checks to New Yorkers

    While inflation has driven prices higher, sapping the income of New Yorkers, it has also driven sharp increases in the State’s collection of sales tax. Governor Hochul believes that money belongs to hardworking New York families and should be returned to their pockets as an Inflation Refund.

    The FY 2026 Budget includes Governor Hochul’s plan to send New York’s first-ever inflation refund checks, which will put $2 billion back in the pockets of over 8 million New York taxpayers. Later this year, New York State will send direct payments to everyday New Yorkers.

    Joint tax filers with income up to $150,000 will receive a $400 check, and joint filers with income over $150,000 but no greater than $300,000 will receive a $300 check. Single tax filers with income up to $75,000 will receive a $200 check, and single filers with incomes over $75,000 but no greater than $150,000 will receive a $150 check.

    There are no age restrictions. Filers do not need to do anything to receive a refund. If you filed a tax return, are below the income (NYS AGI) thresholds, and no one else claimed you as a dependent, you will receive a refund.

    More details regarding the timing for sending inflation refund checks will be announced in the near future.

    Free School Meals for New York Students

    The FY 2026 Budget includes Governor Hochul’s plan to ensure all of New York’s over 2.7 million students can receive breakfast and lunch for free at school, including roughly 280,000 students who would not otherwise be eligible for free meals. This monumental program will help save parents money, address food insecurity among New York kids, and create more opportunities for students to succeed.

    By eliminating any financial requirements to receive this benefit, New York State will level the playing field and give parents back the money they would be spending. Free school meals are estimated to save families $165 per child in grocery spending each month and have been shown to support learning, boost test scores, and improve attendance as well as classroom behavior.

    MIL OSI USA News –

  • MIL-OSI USA: Expanding Access to Affordable Child Care

    Source: US State of New York

    overnor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget to support children and families, including investing $2.2 billion in affordable child care and providing new resources for low-income parents to help them raise healthy babies.

    “Parenthood is an incredible experience — but these days, it’s definitely not cheap,” Governor Hochul said. “By expanding access to affordable child care and providing resources to new parents, we’re helping to make New York an even better place to raise a family.”

    The FY26 Budget includes landmark new investments to help families in New York meet the cost of daily necessities and services like child care. These investments include:

    • Expanding access to child care by investing $2.2 billion statewide, including up to $350 million investment to save child care subsidies for tens of thousands of New York City families
    • Investing $110 million in child care capital funding to build new child care facilities and repair existing sites, as well as home-based programs
    • Advancing another nation-leading legislative proposal to improve maternal and infant health through the provision of a birth allowance — the New York State BABY Benefit
    • Investing $9 million to distribute free diapers and other postpartum supplies to low-income New York families
    • Securing a historic increase in New York’s Child Tax Credit that will provide eligible families with a $1,000 credit for kids younger than 4 years old and a $500 credit for kids ages 4-16, effectively doubling the credit for the average family
    • Providing $340 million to ensure free breakfast and lunch for every K-12 student in New York, over 2.7 million kids, saving families an average of $1,600 per child

    Expanding Access to Child Care and Saving Child Care Subsidies
    The FY26 Budget includes a $400 million investment to save child care subsidies for families statewide through the state’s Child Care Assistance Program (CCAP) with up to $350 million available for tens of thousands of New York City families. Since taking office, State funding for CCAP has more than doubled, bringing low-cost, affordable childcare to a record 150,000 families statewide. These investments in CCAP further build on Governor Hochul’s historic $7 billion investment to expand and improve child care accessibility and affordability for working families. This includes initiatives to help families by raising the eligibility threshold for child care assistance so families of four making up to $108,000 are eligible for child care that costs only $15 per week. The Governor also launched a new online portal last year to make the application process as easy as possible for eligible families.

    Providing Capital Grants for Child Care Providers
    The FY 26 Budget includes $100 million in capital grants for child care providers to renovate and build new child care centers, especially in child care deserts. This investment will help child care providers facilitate opening new seats and serve additional children. Further, $10 million will be made available to family child care providers to renovate and repair their home-based child care locations.

    Establish the Birth Allowance for Beginning Year (BABY) Benefit
    The FY 26 Budget includes $8.5 million to advance another nation-leading initiative to improve maternal and infant health through the provision of a birth allowance — the New York State BABY (Birth Allowance for Beginning Year) Benefit — to low-income parents on public assistance. As part of her agenda to make New York the best, most affordable place to start and raise a family, Governor Hochul will provide a one-time $1,800 benefit at birth for New Yorkers who receive public assistance when they have a new baby. The BABY Benefit will increase household income for thousands of New York’s most under-resourced families at a most crucial time in their lives, help defray birth-related expenses, and overall ease the financial stress that can come with caring for a new baby. This investment builds on Governor Hochul’s record of support for pregnant people, new parents and infants, ensuring a stronger and more stable foundation for both parent and child, uplifting working families by putting more money in their pockets, and continuing the State’s progress reducing child poverty.

    Free Diapers and Other Postpartum Supplies
    The FY26 Budget includes $9 million to provide an estimated 100,000 families with maternal health and newborn baby resources, educational materials, self-care products and diapers. This funding will be allocated pending approval from the federal government. Governor Hochul will partner with Baby2Baby — a national nonprofit that provides essential items to one million children living in poverty annually — to deliver maternal health and newborn supply boxes to expectant mothers enrolled in Medicaid and those reached through community-based organizations and hospitals serving lower-income areas. Additionally, New York State will distribute millions of diapers to low-income families, with the intent to grow that number each year. Governor Hochul will also expand maternal behavioral health services and will build upon previous investments through the co-location of mental health services into OBGYN practices in high-needs communities across New York State.

    Expanding New York’s Child Tax Credit
    The FY 2026 State Budget includes Governor Hochul’s plan to give 1.6 million New York families an annual tax credit of up to $1,000 per child under age four and up to $500 per child from four through sixteen. This is the largest expansion of New York’s child tax credit in its history — and it will benefit approximately 2.75 million children statewide. This historic expansion will assist families with young children and help families across the income spectrum.

    Governor Hochul’s expansion of the credit will double the size of the average credit going out to families from $472 to $943, providing relief to low-income and middle-income households. A family of four with a toddler and school-age child, earning up to $110,000, would receive a $1,500 annual credit, nearly $1,000 more than under the current program. Even a family of four with an income of $170,000, which was previously ineligible, would receive over $500 per year. Additionally, the Governor’s reforms eliminate a provision that restricted the poorest families from accessing the full credit. Over 187,000 children will now be eligible for the credit. This expansion and reform will help build on New York’s progress reducing child poverty. The credit alone is estimated to reduce child poverty by up to 8.2 percent.

    MIL OSI USA News –

  • MIL-OSI USA: Largest Investment in New York State’s Transportation History

    Source: US State of New York

    overnor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget to fully fund the Metropolitan Transportation Authority’s (MTA) $68.4 billion 2025-29 Capital Plan — a move that represents the largest investment in New York State’s transportation history. The plan will enable the MTA to make transformative investments that will include breaking ground on the new Interborough Express (IBX), rehabilitating the Grand Central Artery and improving the overall rider experience.

    “Public transit is the lifeblood of New York and our investments in this century-old system will ensure it can thrive for years to come,” Governor Hochul said. “For too long, leaders had ignored the needs of straphangers and underfunded public transit. When I took office we changed that approach — and now, we’re making long-overdue investments to keep this system strong.”

    MTA Chair and CEO Janno Lieber said, “The Governor and legislature have been great supporters of MTA riders and understand the importance of mass transit to New York’s economy. An extraordinary effort went into identifying what needs to be done to maintain the $1.5 trillion asset that is our region’s transportation network. The women and men of the MTA look forward to getting to work on important capital projects that deliver on the Governor’s vision and ensure that New Yorkers keep moving for decades to come.”

    The investment will enable the MTA to:

    • Start construction of the new Interborough Express (IBX) — a transformative new rapid transit service between Brooklyn and Queens
    • Rehabilitate the Grand Central Artery — a four-mile stretch that carries 98 percent of all Metro-North service
    • Purchase thousands of new subway and rail cars
    • Modernize signals to provide faster, more frequent and more reliable service
    • Upgrade maintenance facilities
    • Renew electric power systems to enhance reliability
    • Repair structurally deficient bridges and tunnels
    • Deliver full ADA-accessibility improvements at more than 65 subway and railroad stations
    • Make safety enhancements at stations and across infrastructure systems
    • Install modern fare gates at more than 150 stations to prevent fare evasion
    • Grow its zero-emissions bus fleet to stay on track for a fully-electric fleet by 2040
    • Increase resiliency against flooding and protect the Hudson Line against severe weather

    All of this will be achieved with a funding plan that also includes cuts to the regional Payroll Mobility Tax (PMT) for roughly 10,000 small businesses and an elimination of the PMT for self-employed individuals earning $150,000 or less. The plan will also fully eliminate the PMT for all local governments outside of New York City.

    Notably, the FY 2026 Budget also reallocates up to $1.2 billion from the Penn Station redevelopment project to be put towards priority capital projects such as the Interborough Express, safety initiatives, and efforts to reduce fare evasion.

    The MTA’s capital plan will also spend $6 billion on the Metro-North Railroad, including:

    • Rolling stock: Completing the replacement of 40-year-old railcars with new, fully accessible M9A trains for use on the Harlem and Hudson Lines
    • Station platforms and components: Replacing and rehabilitating deteriorating station platforms and other major station components
    • Climate and weather protection: Coordinating investments at the most vulnerable locations – including bridges, culverts, retaining walls, and shoreline structures – to reduce service disruptions and equipment damage caused by extreme weather

    Additionally, the MTA’s capital plan will spend $6 billion on the Long Island Railroad (LIRR) which would include:

    • Rolling stock: Purchasing new railcars to allow MTA to retire 1980s-era M3 cars and provide for more reliable new dual-mode locomotives
    • Power system improvements: Replacing or renewing 16 substations making the system more reliable
    • Accessibility: Achieving 98 percent accessibility by making four more stations accessible, including Bellerose, Douglaston, and Cold Spring Harbor

    Finally, the MTA capital plan includes $800 million to advance regional investments that help create additional capacity, connect with underserved communities, and respond to changing populations and land-use patterns. The plan supports projects to reduce conflicts at the nation’s busiest railway junction, electrification and capacity initiatives on the LIRR and MNR, and the evaluation and development of promising improvement and expansion projects.

    The funding plan includes a balanced and responsible mix of local, state, federal and MTA sources as well as new Payroll Mobility Tax (PMT) revenues from the region’s largest businesses. In addition to providing $8 billion in total operating aid for the MTA, the FY 2026 Budget will provide a $3 billion State capital appropriation to support the MTA capital plan. The modest change to the Payroll Mobility Tax (PMT) will cause the largest businesses in the region with payrolls of $10 million or more to pay less than one percent more in PMT.

    The FY 2026 Budget also requires the City of New York to provide $3 billion toward the MTA capital plan and requires the MTA to find $3 billion in efficiencies.

    MIL OSI USA News –

  • MIL-OSI Security: Two Women Sentenced for Running a More Than $1.5 Million COVID-19 Fraud Scheme

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

    WILMINGTON, N.C. – A Zebulon woman was sentenced Thursday to 8 years in prison for her role in a multi-million-dollar COVID-19 fraud scheme.  Loretta Clarice James, 49, had previously pled guilty to conspiracy to commit wire fraud on May 29, 2024.  One of James’ co-conspirators, Lakesha Bowles, 43, was sentenced on April 24, 2025, to 30 months imprisonment for her role in the conspiracy.  Both women were also ordered to repay over one million dollars in restitution.

    According to court documents and other information presented in court, James and Bowles conspired to commit wire fraud by fraudulently submitting loan applications to the federal Paycheck Protection Program(PPP), which was established by Congress through the CARES Act to support small businesses during the economic uncertainty and layoffs that accompanied the COVID-19 pandemic.

    The fraudulent claims on the PPP loan applications, guaranteed by the United States Small Business Association, inflated payroll numbers and asked for funding on behalf of dormant or non-existent businesses.  James and Bowles submitted loan applications in their own names, and on behalf of others whom they recruited.  James and Bowles were given a portion of the loan proceeds if the third-party loans were approved.

    In addition to PPP fraud, James also conspired to commit wire fraud by fraudulently submitting loan and grant applications to the Economic Injury Disaster Loan (EIDL) Program and the Restaurant Revitalization Fund (RRF) Program. These other programs were also created by the federal government as a lifeline to struggling small businesses affected by COVID-19. James submitted fraudulent EIDL loans applications in her name, her family members’ names, and in the names of other friends and associates.  James submitted EIDL applications for businesses that did not exist and for salaries of employees who were fictitious. James submitted several hundred fraudulent EIDL applications, leading to over $500,000 in fraudulent EIDL disbursements. 

    In all, James, Bowles and other co-conspirators facilitated the fraudulent disbursement of more than $1.5 million in COVID-19 Loans.  Darnell William King, who conspired with both women, pled guilty to PPP fraud and identity theft charges on March 11, 2025.

    In addition to this significant COVID-19 loan fraud conspiracy, Loretta James was involved in an identity theft scheme where she and others used stolen identities to obtain loans or personal lines of credit from private lenders. James’ main role in that scheme included obtaining Social Security Numbers of individuals with good credit, completing a loan application in that individual’s name, using forged documents and email accounts in furtherance of the loan applications.  James and her conspirators then hired “Mules” to physically obtain the funds from the bank or lender.  Equipped with fake identity documentation made by James or others, the Mule would physically sign the application and associated paperwork, claiming to be the true applicant and promising to pay the loan back. After securing the funds, the Mule would bring the money back to James and other members of the scheme, and they would give the Mule a cut of the loan, ranging from $100 to $2,000 per loan. James and her compatriots did this over and over again, with loans that ranged from $5,000 to $10,000, none of which was ever paid back.

    “This office is committed holding accountable those who exploited a national crisis and the hardships of others for their personal gain and greed. Public relief funds were created to support hardworking individuals and small businesses during times of crisis—not to line the pockets of criminals,” said Acting U.S. Attorney Daniel P. Bubar. “We will continue to work diligently with our many state and federal partners to peruse justice for those who choose to abuse public trust by lying, cheating, and stealing resources that are meant to support our community in its greatest time of need.”

    “This extensive investigation, known as Operation Overload, uncovered a sophisticated criminal enterprise that fraudulently utilized thousands of North Carolina licenses, resulting in financial crimes that impacted individuals across multiple states,” said Captain Vaughn of the North Carolina DMV License & Theft Bureau. “Bureau commends its inspectors, intelligence analysts, and all partner agencies for their hard work and collaboration. Their efforts underscore the importance of interagency cooperation in combating complex fraud schemes and safeguarding the identities of North Carolina residents.”

    “The defendants conspired to take advantage of critical aid programs intended to provide relief for businesses affected during the pandemic by fraudulently applying for and obtaining COVID-19 program funds,” said Special Agent in Charge Donald “Trey” Eakins, Charlotte Field Office, IRS Criminal Investigation. “IRS Criminal Investigation special agents will continue to work alongside our law enforcement partners to pursue individuals who try to exploit federal relief programs for their personal gain.”

    “This investigation began following several complaints from Wake County residents regarding identity theft and fraud. Over the course of nearly a year, a thorough investigation led to multiple arrests, supported by the NCDMV License and Theft, Clayton Police Department, U.S. Department of Homeland Security, and the IRS Criminal Investigations. The investigators involved demonstrated exceptional diligence in pursuing the suspects and uncovering a vast network of crimes. Their efforts resulted in identifying hundreds of victims, not only in Wake County, but across North Carolina, and uncovering hundreds of thousands of dollars in fraud. I would like to commend the investigators for their tireless work and unwavering commitment to serving the residents of our county and state,” Wake County Sheriff Willie Rowe said.

    Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Richard E. Myers II announced James’ sentence.  The Internal Revenue Service, Criminal Investigation investigated the case with the assistance of Homeland Security Investigations; the Wake County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the North Carolina Department of Motor Vehicle License & Theft Bureau. The Clayton Police Department and other local agencies also aided over the course of the investigation.  Assistant U.S. Attorneys David G. Beraka, Ashley H. Foxx, and Karen Haughton prosecuted the cases.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case Nos. 5:24-CR-00132 and 5:24-CR-00363.

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    MIL Security OSI –

  • MIL-OSI USA: $500M To Expand Families’ Access to Affordable Homes

    Source: US State of New York

    overnor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget that will make owning and renting a home more affordable. As part of the FY 2026 Enacted Budget, Governor Hochul announced more than $1.5 billion in new state funding for housing statewide, including investing $100 million for pro-housing communities to fund critical infrastructure projects to support housing development, $100 million to promote mixed income housing development, $50 million for the first year of the Housing Access Voucher Program to address households that are homelessness or at risk of imminent homelessness, and $50 million for building more affordable starter homes, among other housing initiatives.

    “New Yorkers deserve a fair chance at achieving the American dream, whether it is buying their first home or renting their first apartment, and this bold plan does just that,” Governor Hochul said. “As part of my FY 2026 Enacted Budget, I secured over $500 million in capital for housing to uplift local economies and level the playing field so families can have more access to safe and affordable homes.”

    Helping Families Achieve The Dream Of Owning Their Own Home

    Disincentivizing Institutional Investors from Buying Up One- and Two-Family Homes
    Nationally, private equity firms own more than 500,000 homes. According to some estimates, private equity firms are expected to own up to 40 percent of the single-family rental market by 2030. When large investors hold a disproportionate share of a local housing market it removes opportunities for homeownership, exacerbating the existing scarcity and driving up prices for remaining homes on the market. These consequences are felt most intensely by first-time and low- or moderate-income homebuyers.

    To help level the playing field and increase the opportunities for everyday individuals and families to purchase a home, Governor Hochul signed legislation to disincentivize large investment entities who own 10+ single- and two-family homes and act as a fiduciary for at least $30 million in assets under management from buying single- and two-family homes en masse, and will require a 90-day waiting period for institutional investors to make an offer on one- or two-family homes.

    The prohibition would also apply to an entity that receives funding from a covered institutional investor, other than in the form of a standard mortgage. Nonprofits, land banks, community land trusts, and foreclosure sales would be exempted. With the New York State Attorney General’s enforcement, covered entities that violate the waiting period would be subject to $250,000 penalties, and to $10,000 penalties for failing to provide required notices.

    Additionally, Governor Hochul signed legislation to prohibit institutional investors from claiming depreciation tax deductions for single- and two-family homes, or claiming interest deductions with respect to such homes, to disincentivize their accumulation of single- and two-family homes. The legislation also requires the New York Department of State (DOS) to provide notice when establishing a “cease and desist zone” in which homeowners who opt into coverage are prohibited from being solicited to sell their homes. The notice requirements will require information about the zone to be posted on DOS’ website when a zone is established and annually included in a local newspaper within the area of the zone.

    Provide Starter Home Innovation Funding
    Oftentimes, homes being built by the market today are larger and therefore less affordable than a traditional starter home. An undersupply of homes limits mobility within the market, preventing young families from becoming homeowners and older New Yorkers from downsizing. Governor Hochul’s budget will include $50 million in capital funding to incentivize the building of more starter homes, including innovative approaches to homebuilding such as the use of factory-built and modular development.

    $40 Million to Support the Homeowner Protection Program (HOPP)
    The Homeowner Protection Program is a state-wide network of housing counseling and legal services organizations serving every county in New York. The network provides critical services to at-risk homeowners struggling to maintain their housing and avoid foreclosure. HOPP is also a front line defense in gentrifying neighborhoods helping to prevent fraud and deed theft for vulnerable homeowners. This $40 million in funding will ensure that this network can continue to serve thousands of homeowners, preserving millions of dollars in equity and stabilizing communities.

    Expand and Strengthen the Resilient and Ready Programs
    Severe weather events are leaving New York homeowners in need of urgent repairs and long-term resilience measures. Governor Hochul secured $50 million in new funding for the Rapid Response Home Repair Program and Resilient Retrofits Program, which have provided vital assistance, helping over 1,300 homeowners to date recover and prepare for future disasters.

    Create an Affordable Homebuyer Tax Incentive
    Even when homes are developed for the express purpose of being sold to low- and moderate-income homebuyers, local property tax assessments value the homes at fair market value, presenting challenges to creating homes these homebuyers can afford to purchase. The Governor has secured agreement for an affordable homebuyer property tax incentive at local opt-in for homes built with assistance from governmental entities, nonprofits, land banks, or community land trusts, and sold to low- and moderate-income homebuyers. This will aid such homebuyers by making their dream of homeownership more attainable by bringing down costs and increasing the supply of these homes.

    Strengthen Laws and Policies To Combat Home Appraisal Discrimination
    For many New Yorkers, their largest investment and most valuable asset is their home. Homes provide families with a safe place to live and an opportunity to build generational wealth. For too long, pervasive appraisal bias throughout the housing industry has unjustly stripped families of color of this opportunity, widening racial homeownership and wealth gaps. Governor Hochul secured agreement on legislation that will make it a violation of the State’s Human Rights Law to discriminate when providing real estate appraisals or in making such services available. The law will further enable DOS to fine appraisers for violations, in addition to other existing remedies, with half of those fines going to a fund to support fair housing enforcement. Additionally, the budget includes $4 million in new state support for fair housing testing.

    Unlocking Local Development

    Create $100 Million New York State Pro-Housing Supply Fund
    Governor Hochul signed Executive Order 30 in July 2023 creating the Pro-Housing Communities Program, which recognizes and rewards municipalities actively working to unlock their housing potential and encourages others to follow suit. In the State Fiscal Year 2025 Enacted Budget, Governor Hochul made the “Pro-Housing Community” designation a requirement for accessing up to $650 million in State discretionary programs. So far, 300 localities have been certified, with more than 420 submitting letters of intent from all corners of New York State. To further support localities that are doing their part to address the housing crisis, Governor Hochul is creating a $100 million Pro-Housing Supply fund for certified Pro-Housing Communities to assist with critical infrastructure projects necessary to create new housing, such as sewer and water infrastructure upgrades.

    Provide Communities Technical Assistance to Become Pro-Housing
    Without resources, some communities may not have the ability to design and adopt pro-housing policies such as master plans, zoning text updates, and streamlined permitting procedures. To help ensure more localities that want to promote housing growth have the ability to do so, Governor Hochul will provide $5.25 million in new grant funding to offer technical assistance to communities seeking to foster housing growth and associated municipal development.

    $1 Billion in State Funding for New York City To Secure “City of Yes”
    As New York City confronts a generational housing crisis with a 1.4 percent rental vacancy rate, the citywide rezoning will enable the creation of 80,000 new homes over the next 15 years and invest $5 billion. As part of Governor Hochul’s FY26 Enacted Budget, the State is investing $1 billion towards the development and preservation of affordable housing throughout New York City.

    Strengthening Investment in Communities

    Launch New York State’s First Mixed-Income Revolving Loan Fund
    With major forthcoming economic investments in Upstate New York, such as Micron’s $100 billion investment in Clay, the state continues to need an all-of-the-above approach to the housing supply to address acute housing needs and accommodate job growth. Too often, however, communities do not have the tools to create mixed income rental housing, leaving many developments permit-ready but unable to secure financing. To bridge this gap and unlock more housing, Governor Hochul is launching the State’s first revolving loan fund to spur mixed-income rental development. With a $100 million State investment for upstate and New York City, the fund will fill construction financing gaps by providing a lower-cost and more flexible form of capital than is generally available in market financing. The funding will revolve and self-sustain over time through repayments once projects have converted to permanent financing after construction.

    Double New York State Low Income Housing Credits
    Modeled after the federal Low Income Housing Tax Credit Program, the New York State Low Income Housing Tax Credit Program (SLIHC) was signed into law in 2000 and has been critical to supporting the development of housing for low-and middle-income households. Governor Hochul will build on this success by proposing to double the amount of the tax credits available through the SLIHC program, making it the largest state low-income housing tax credit program in America. This action alone will generate upwards of $210 million in private investment in affordable housing per year.

    Unlock Historic Tax Credits by Decoupling and Expanding Eligibility
    Currently, New York State law requires Federal and State Historic Tax credits to be coupled together to the same investor and be available only in certain census tracts. These factors depress the economic value of both tax credits and needlessly turn investment away from housing projects, a problem felt especially acutely in upstate New York communities. Governor Hochul’s budget agreement will unlock the maximum value of the tax credits and eliminate the census tract eligibility requirement.

    Empower Communities to Redevelop Vacant Properties Into Housing
    Many municipalities struggle to acquire and redevelop vacant and abandoned buildings. Many of these properties are in a significant state of disrepair due to years of neglect and are located in neighborhoods that lack the local economic conditions necessary to incentivize redevelopment by the private sector. Consequently, the investment required to redevelop these properties can exceed their value and the resulting funding gap prevents the property from being rehabilitated. Governor Hochul will better equip communities to fight back against blight while creating more affordable housing opportunities, by securing agreement to authorize localities across the state to adopt a tax exemption to incentivize redevelopment of these properties into affordable homes. The budget also includes $50 million in total funding for Land Banks and $30 million for Infill development.

    Protecting Housing Affordability

    Housing Access Voucher Program Pilot
    As part of the FY26 Enacted Budget, Governor Hochul is investing $50 million for the first year of a four-year pilot program for state-funded vouchers for homeless families or families at imminent risk of losing their housing. Vouchers would be available to households making 50 percent of area median income. HCR will administer the program through local partners outside of New York City, with the NYC Housing Preservation and Development (HPD) and/or the New York City Housing Authority (NYCHA) administering the program within New York City. The vouchers will be a critical new tool to help New Yorkers escape or evade homelessness and housing insecurity.

    Reduce Shelter Rent Taxes for Mitchell-Lama Residents
    Mitchell-Lama Program supports 105,000 units of housing that are affordable to low- and middle-income families. Currently, Mitchell-Lama developments can receive a shelter rent tax abatement to reduce their share of local property taxes. However, the current tax abatement is often insufficient to address escalating increases in insurance, utility, and taxes that endanger building quality and the financial health of this critical supply of affordable housing. To provide much needed relief, Governor Hochul’s budget agreement includes legislation that will reduce Mitchell-Lama shelter rent taxes by at least half in New York City and allow for the same by local opt-in in the rest of the state.

    Preserving Public Housing Statewide
    As part of the budget, Governor Hochul has secured $225 million to fund capital improvements for the New York City Housing Authority (NYCHA), including $25 million for vacant NYCHA units, and $75 million public housing authorities outside New York City, providing vital support to this essential housing stock and critical quality of life improvements for the residents who call it home.

    Expand Capital to Maintain and Improve Supportive Housing
    The Homeless Housing and Assistance Program (HHAP) was among the first programs in the country more than four decades ago to dedicate significant capital resources to creating housing, including permanent affordable and supportive housing, specifically for homeless individuals. Tens of thousands of units have been built since its inception, and today, requests for funding exceed what is available. To meet the growing demand for supportive housing and maintain existing units that provide a safe place to live for many of the most housing insecure and vulnerable New Yorkers, Governor Hochul has secured an increase in funding for HHAP.

    Increase Funding for Supportive Housing
    Governor Hochul has made landmark investments to expand supportive housing across New York State, recognizing that stable housing is the foundation for stable health and a stable life. Providers of supportive housing utilize two key State-funded programs to provide vital services to tens of thousands of New Yorkers, such as people with serious mental illness and substance use disorders who would otherwise be homeless. The Empire State Supportive Housing Initiative (ESSHI) has financed the supportive services and operating costs of over 9,600 units of safe and permanent housing for individuals and families in need, and the New York State Supportive Housing Program (NYSSHP) supports over 20,000 people living safely and stably in affordable housing. However, providers of supportive housing have not been immune to the impact of rising costs, which threatens future housing acquisition and their ability to provide the supportive services that make these programs unique and successful in helping people to remain stably housed. To ensure that New York State’s supportive housing stock and services remain viable and accessible to those who need them most, Governor Hochul has secured increases to take steps to stabilize both programs.

    Extend Security Deposit Protections to Rent-Regulated Tenants
    In 2019, New York State provided market-rate tenants statewide with protections for security deposits, including requiring the return of remaining security deposits within 14 days of vacating the unit and allowing tenants to request an inspection to determine what needs to be remedied to receive a security deposit back in full. Rent-regulated tenants were erroneously left out from receiving these important protections. The Governor has secured agreement to grant rent-regulated tenants the same protections for their security deposits as all other tenants.

    Preserve Expiring Affordable Housing in New York City
    The FY26 Enacted Budget includes legislation that would allow for certain large 100+ unit rental buildings in New York City that currently include affordable units to partially convert to condominiums in order to preserve its expiring affordable units as permanently affordable or increase the amount of existing permanently affordable units in a building. The conversions would be subject to approval by HCR or NYC HPD and have ongoing regulatory oversight over the affordable units, which would be owned by separate nonprofits. The New York State Attorney General’s office would further have an oversight role in approving the conversions. The affordable units could subsequently convert to affordable homeownership units, as well. This legislation is meant to help preserve affordable housing supply that would otherwise be lost when tax breaks expire, or increase the supply of existing permanently affordable units, while also increasing
    omeownership opportunities.

    Help Affordable Housing Access Captive Insurance to Lower Costs
    Insurance costs for affordable housing have skyrocketed, with many owners reporting paying higher premiums for less coverage and renters bearing an increasing share of costs. In recent years, private insurance captives, which are similar to self-insurance and allow for tailored risk management, have been created specifically for affordable housing owners. However, these insurance captives often have eligibility standards for participation, which nonprofits may struggle to meet. Governor Hochul will provide assistance to nonprofit affordable housing owners to undertake repairs and other steps needed to be eligible for such captives.

    Additional Capital Investments
    In addition to advancing these critical policy actions, the FY 2026 Budget includes more than $1.525 billion in new capital funding to support housing statewide, including but not limited to:

    • $225 million for capital improvements of New York City Housing Authority developments.
    • $110 million for capital improvements for Mitchell-Lamas.
    • $75 million for capital improvements of public housing authorities outside of New York City.
    • $100 million for mixed income revolving loan funds; $50 million for upstate and $50 million for New York City.
    • $40 million for Land Banks to redevelop vacant or abandoned properties.
    • $40 million for capital awards to upgrade vacant rental units outside of New York City.
    • $30 million for Infill Housing to fund development of small homes within unused and underutilized lands with existing development patterns.
    • $20 million to preserve distressed affordable housing in New York City.
    • $10 million for capital improvements of rural housing subsidized by the Federal USDA 515 program.
    • $10 million for small multifamily rental developments (SRDI).

    MIL OSI USA News –

  • MIL-OSI USA: Creating Jobs and Opportunity Across the Empire State

    Source: US State of New York

    overnor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget that will support small businesses and grow New York’s economy. Governor Hochul’s economic development initiatives include helping small businesses grow through access to capital, new contracting opportunities, and disaster recovery support; doubling down on semiconductors and advanced manufacturing; supporting transformative, community-driven projects, and boosting the state’s creative economy.

    “We’re making New York the most business-friendly and worker-friendly state in the nation, creating jobs and economic opportunity in every corner of the Empire State,” Governor Hochul said. “By providing access to low-interest capital and investing in innovative industries like semiconductor manufacturing, we’re not just creating jobs, we’re positioning New York as a leader in the industries of tomorrow. These investments will ensure our businesses can thrive, attract new industries, and help communities grow across the state.”

    Helping Small Business Thrive in New York

    Support Small Businesses With Low Interest Capital
    High interest rates can incapacitate small businesses—which often pay higher borrowing rates due to their reduced collateral and higher risk profiles as compared to larger firms—preventing them from investing in expansion and creating new jobs. The successful Linked Deposit Program, which helps small businesses borrow at more affordable rates, has lowered the interest rate for nearly 6,000 businesses, resulting in $2 billion in bank lending, and leveraging over $4 billion in new capital investments by New York State businesses.

    In response to demand that far exceeds supply, Governor Hochul will launch the Low Interest Capital program (LINC), an expansion of the Linked Deposit Program, to help support hundreds of additional small businesses across the state. LINC will nearly double the funding available for linked deposits from $560 million to $1.1 billion.

    Increase Opportunities for MWBEs in State Procurement
    The FY26 Enacted Budget will eliminate barriers for minority and women-owned businesses to contract with state agencies and authorities by increasing the discretionary purchasing threshold from $750,000 to $1.5 million when buying from NYS Certified MWBEs. This builds on Governor Hochul’s commitment to expanding opportunities for MWBE firms while bringing the State’s threshold into alignment with those of the MTA and New York City.

    Help Small Businesses Recover After Natural Disasters
    As extreme weather events become more common, Governor Hochul is modernizing the Empire State Jobs Retention Program to provide a lifeline for businesses impacted by a natural disaster. The overhaul will allow small businesses to receive financial incentives through the Jobs Retention Program for the first time, while streamlining burdensome eligibility criteria and focusing assistance on the immediate aftermath of natural disasters when it is most impactful.

    Doubling Down on Semiconductors and Advanced Manufacturing

    Grow the Semiconductor Industry and Build the Semiconductor Supply Chain
    New York has emerged as a leader in the semiconductor industry through the Green CHIPS program, attracting over $120 billion in private sector investment. Much of that success is owed to New York’s Excelsior Jobs Tax Credit Program, which encourages businesses to locate or expand in New York by providing Excelsior tax credits after meeting job creation and investment thresholds. While New York State continues to lead in bringing semiconductor manufacturing home to our state, multiple states are vying to attract the related supply-chain companies that are looking to do business with those manufacturers.

    The FY26 Enacted Budget doubles down on Excelsior with a new, enhanced benefit tier for semiconductor supply chain companies; a new program to provide tax credits for large-scale semiconductor R&D investments of $100 million or more in qualified expenditures; a new semiconductor manufacturing workforce training incentive; and an overall 5-year extension of the Excelsior program.

    Promote Opportunity With Electric Readiness for Underdeveloped Properties
    New York State is attracting investment in new manufacturing and high-tech development faster than existing energy system planning and funding mechanisms can accommodate, and we need more power-ready sites — a key factor in where companies decide to locate. Indeed, lack of speedy connection to reliable power is often cited as a primary reason for advanced manufacturers taking their business, and jobs, towards other states or opportunities.

    Locating at a power-ready site can shave years off the timeline between site selection and a plant’s opening day. Extending transmission and electrical infrastructure to more sites around the State will help unlock equitable economic growth and supercharge our ability to connect New Yorkers with the advanced manufacturing jobs of the future.

    To help land more business and jobs in New York, Governor Hochul will launch a new $300 million program — Promote Opportunity with Electric Readiness for Underdeveloped Properties (POWER UP) — to fund the proactive development of electric capacity to create power-ready sites and attract new businesses to the state. Governor Hochul is seeding the fund with $100 million this year, which will allow for the proactive development of dozens of sites.

    POWER UP will not only alleviate bottlenecks to connect businesses to power but will help defray electrical costs for regional consumers, who under our current regulatory structure are often left to foot the bill for grid improvements prompted by one particular project within their region. POWER UP will defray those costs by interjecting state capital dollars into projects that provide overwhelming public and economic benefits.

    Empire State Development (ESD) will provide economic development expertise to ensure the fund helps prepare sites that are strongly positioned to host manufacturing operations that will create jobs in New York State.

    The Department of Public Service will provide expertise in utility capital planning and will identify opportunities for project sites that bundle clean energy resources together.

    Double Down on Shovel-Ready Sites for Modern Manufacturing
    While New York State is a leader in business attraction, large scale manufacturing and industrial firms can only continue to locate and expand here if sufficient shovel-ready space is available.

    Governor Hochul established the Focused Attraction of Shovel-Ready Tracts New York (FAST NY) program to build shovel-ready sites across New York and ensure the State is prepared to capitalize on high-value opportunities. Since its launch in 2022, FAST NY has committed over $175 million to 20 projects, transforming nearly 3,000 acres of previously underutilized land into future economic engines of the State.

    This year’s Enacted Budget includes $100 million to launch a new round of FAST NY that prioritizes semiconductor manufacturing and supply chain projects as well as cleantech and green economy projects. This new round of funding will include a focus on equipping sites with utility access, including renewable and clean energy.

    Strengthening Communities and Promoting Economic Growth

    Transform Regional Economic Development With High-Impact Projects
    The Regional Economic Development Councils (REDCs) have driven significant progress across New York, but their current funding limits make it difficult to support large-scale, game-changing projects. To address this, Governor Hochul will refocus the REDC initiative on transformative projects that serve as high-impact economic anchors such as cultural venues, waterfront revitalization efforts, and mixed-use development projects. This new approach will maximize the benefits that REDC awards deliver for local communities and regional economies, driving growth and revitalization in every corner of the state. Governor Hochul’s FY26 Enacted Budget includes $150 million to support the REDCs.

    Continue To Revitalize Our Downtowns and Rural Communities
    Governor Hochul is committed to supporting New York State’s downtowns, large and small, and recognizes that the strength of the State lies in its partnerships with local governments. By working together to create economically, socially, and environmentally healthy community centers through downtown revitalization, the State and local governments can make life better for New Yorkers and help secure the long-term well-being of the state. To further revitalize our communities, the Enacted Budget provides $100 million for another round of the Downtown Revitalization Initiative (DRI), which has been transforming downtown neighborhoods into vibrant communities where the next generation of New Yorkers will want to live, work, and raise families. Participating communities are nominated by the State’s 10 REDCs based on the downtown’s potential for transformation. Each winning community is awarded funding to develop a downtown strategic investment plan and implement key projects that advance the community’s vision for revitalization.

    To support New York’s rural communities, the State will continue its investment in the NY Forward program, designed to advance the renaissance of our smaller downtowns. New York’s hamlets and villages serve as commercial and social centers, and support our agricultural, recreational, and tourism economies. Recognizing the distinct needs of smaller communities and their niche historical and cultural assets, the Enacted Budget includes another round of $100 million in funding for rural and smaller communities. Like the DRI program, NY Forward communities are selected in partnership with the REDCs, and the Department of State (DOS) will lead the community through an abbreviated planning process to develop a slate of readily implementable projects. The State’s investment in projects that demonstrate their ability to accelerate revitalization will strengthen the competitiveness and improve the future trajectory of New York State’s small communities and larger urban centers.

    Renew Our Commitment to Our State’s Capital City
    This year’s Executive Budget launches the Championing Albany’s Potential (CAP) Initiative, an inclusive, State-led effort to invest $400 million to revitalize the downtown core of Albany—in partnership with local stakeholders and backed by significant State resources to catalyze change. The CAP Initiative includes $200 million to make real investments into tangible strategies and projects to revitalize Albany, such as: targeted strategies that address public safety and quality of life; revitalizing vacant or dated anchor institutions; reinvigorating commercial corridors; repurposing vacant and underutilized commercial buildings for housing and other new uses; leveraging open spaces and key public assets; coordinating with ongoing planning efforts related to the redevelopment of I-787 and the Livingston Avenue rail bridge; and creating new reasons to work, visit, or live in downtown Albany. This historic investment also includes up to $150 million to renovate the New York State Museum and upgrade the exhibits to be more inviting to visitors, including families, as well as funding for the State to temporarily supplement Albany’s public safety efforts by offering enhanced State Police resources to reduce crime and increase community policing in key corridors.

    Informed by conversations with local stakeholders, the CAP Initiative will play out through a comprehensive community engagement process with the public, elected representatives, and community leaders to identify key opportunities to promote business development, bolster public safety, build out community anchors, encourage housing, and enhance affordability.

    Fueling New York’s Creative Economy

    Investments in Arts and Culture
    The FY26 Enacted Budget builds on Governor Hochul’s record investments in the New York State Council on the Arts, which provides critical support for New York’s robust nonprofit creative sector. This includes more than $80 million in general operating support grants for nonprofit arts and culture organizations and individual artists; $80 million in capital funding to support critical renovation and expansion projects; and continued funding for two new programs established in the FY25 Budget to empower artists to take stage in the State’s continued economic growth – Cultivating Havens for the Arts through Regional Murals (CHARM NY), which will fund the design and installation of public murals in communities across New York; and the “State of the Arts” Fellowship Program, which will place artist fellows at State agencies to advance public policy goals through creative approaches.

    Cement New York’s Status as a Global Capital for Media Production
    The FY26 Enacted Budget strengthens and modernizes a range of programs to ensure that New York remains the premier destination for both traditional and new media production. This includes:

    • Enhancing the New York State Film Tax Credit Program to attract more high-value productions that create good paying jobs and inject millions of dollars into local communities. Modifications include a two-year extension, a new $100 million incentive track for independent studios, a new Production Plus benefit for studios that make significant long-term investments in New York, and other tweaks to speed up payments and bring more post-production and musical scoring work in-state.
    • Amending the Digital Gaming Media Production Tax Credit to align with new industry trends and strengthen the growth of this growing industry.
    • Extending the New York City Musical and Theatrical Production Tax Credit for two years to ensure the industry returns to pre-COVID levels and continues to drive the State’s $137+ billion tourism sector.
    • Amending the Newspaper and Broadcast Media Jobs Program to allow affiliate companies to apply individually and therefore support a wider range of print and broadcast outlets across the state.

    MIL OSI USA News –

  • MIL-OSI USA: Burlison Joins Push to Scrap Biden’s $1 Trillion Energy Scam

    Source: United States House of Representatives – Representative Eric Burlison (R-Missouri 7th District)

    WASHINGTON, D.C. — Today, U.S. Representative Eric Burlison (MO-07) joined fellow House Republicans in calling for the full repeal of the Inflation Reduction Act’s (IRA) costly green energy subsidies. In a letter sent to Ways and Means Committee Chairman Jason Smith, the lawmakers warned that keeping even a single subsidy undermines conservative energy principles and jeopardizes America’s return to energy dominance.

    “Republicans were elected on a promise to dismantle Biden’s Green New Scam,” said Rep. Burlison. “These subsidies are distorting the energy market, driving up costs, and threatening our grid. We must follow through—no half-measures, repeal it all.”

    The letter emphasizes that the IRA’s nearly $1 trillion in subsidies for solar, wind, EVs, hydrogen, and more are not only fiscally irresponsible but also weaken national security, destabilize the energy grid, and betray Republican commitments to free-market energy policy.

    Read the full letter below.

    Dear Chairman Smith:
    As fellow Members of the House Republican Conference, we write to underscore the urgent need to fully repeal the Inflation Reduction Act (IRA) and its green energy subsidies, which will cost taxpayers approximately $1 trillion over the next decade. We are deeply concerned that President Trump’s commitment to restoring American energy dominance and ending what he calls the “green new scam” is being undermined by parochial interests and short-sighted political calculations. 
     

    The IRA contains eight major energy subsidies, each of which burdens taxpayers, inflates energy costs, and threatens the reliability of our power grid. Each of these subsidies props up unreliable energy sources while displacing dependable, proven energy like coal and natural gas.

    Republicans ran—and won—on a promise to completely dismantle the IRA and end the left’s green welfare agenda. The first chapter of our 2024 platform reaffirms our commitment to “terminating the Socialist Green New Deal.” Despite our previously unified stance, some Members of our conference now feel compelled to defend wind and biofuel credits, advocate for carbon capture and hydrogen subsidies, or protect solar and electric vehicle giveaways. Keeping even one of these subsidies opens the door to retaining all eight. How do we retain some of these credits and not operate in hypocrisy? The longstanding Republican position has been to allow the market to determine energy production. If every faction continues to defend their favored subsidies, we risk preserving the entire IRA because no clearly defined principle will dictate what is kept and what is culled. 

    Leaving IRA subsidies intact will actively undermine America’s return to energy dominance and national security. In 2024 alone, solar represented 61% of all new electricity generation in our nation, with more expected this year. By the end of this year, wind generation in the U.S. is expected to increase 11% from 2023 because of these subsidies.These numbers do not reflect a natural market shift. They are the result of government subsidies that distort the U.S. energy sector, displace reliable coal and natural gas and the domestic jobs they produce, and put the stability and independence of our electric grid in jeopardy.

    To see the consequences of this path, we need only to look at Europe’s overreliance on renewables, which has left them vulnerable and reliant on Russian oil and gas. Meanwhile, China gladly sells us solar panels and electric vehicle components while expanding its own coal capacity to maintain grid stability and economic advantage. If we do not course correct, we will trade American energy
    dominance for dependence on hostile regimes.

    Our path forward is clear. We must fully repeal the IRA’s green subsidies. Doing so will:
     

    • Save Taxpayers $1 trillion. Estimates project the Inflation Reduction Act will cost
      between $825 billion—according to the Congressional Budget Office as of January 2025—
      and over $1 trillion, per analysts at Goldman Sachs, over the next decade.4 Eliminating
      these subsidies will allow us to rein in the debt and reallocate funds to genuine national
      priorities.
    • Ease inflation and spur economic growth. IRA subsidies exacerbate inflation and push
      up interest rates, making it harder for Americans to buy homes and cars and start
      businesses. Repealing them will provide immediate financial relief and create a stronger
      economic environment.
    • Restore energy affordability and security. IRA subsidies force utilities to overbuild
      solar and wind capacity, weakening grid reliability and increasing energy costs. Ending
      these subsidies will restore affordability and stability to our energy supply.

    This is our only opportunity for an IRA repeal. Without effectively fully repealing all IRA subsidies, as envisioned under the House reconciliation framework, we would jeopardize America’s return to energy dominance and passage of an extension of the expiring Tax Cuts and Jobs Act (TCJA) provisions, as well as the President’s other tax priorities. Failure to act undermines the mandate given to us by the American people.

    We urge our colleagues to stand firm in the upcoming reconciliation process. We must reject half-measures and deliver a full repeal of the IRA’s energy subsidies for the sake of American taxpayers and for the future of American energy. 

    MIL OSI USA News –

  • MIL-OSI: Procedure for the payment of AB Amber Grid dividends for 2024

    Source: GlobeNewswire (MIL-OSI)

    The general meeting of AB Amber Grid shareholders held on 30th April 2025 adopted a decision on the distribution of the company profit for 2024 and the payment of an EUR 0,0599 dividend per share.

    Dividends are paid out from 26th May 2025 in the following order: 

    •    to the shareholders, whose AB “Amber Grid” shares are accounted by a financial brokerage company or credit institutions, which provide securities accounting services, the dividend amount, after deduction of Personal or Corporate withholding income tax applicable by the laws of Lithuania, will be transferred to the shareholders’ accounts held with a respective financial brokerage company or credit institution;
    •    to the shareholders, whose AB Amber Grid shares on behalf of the company are accounted by the authorized custodian AB SEB bankas, the dividend amount, after deduction of Personal or Corporate withholding income tax applicable by the laws of Lithuania, will be transferred to the shareholders’ accounts with AB SEB bankas or the accounts (IBAN) with other bank or financial institution as indicated by the shareholders (requests with account indications should be submitted to any branch of AB SEB bankas).

    Dividends paid in 2025 will be taxed as follows: 

    •    dividends paid to natural persons–residents of the Republic of Lithuania and natural persons–residents of foreign countries are subject to withholding Personal income tax of 15 per cent;
    •    dividends paid to legal entities of the Republic of Lithuania and legal entities–residents of foreign countries are subject to withholding Corporate income tax of 16 per cent, unless otherwise provided for by the laws.
    Residents of the foreign countries, which have concluded agreements on Avoidance of Double Taxation with the Republic of Lithuania, could take advantage of reduced tariffs provided by such agreements by submitting Claim for Reduction or Exemption from the Anticipatory Tax Withheld at Source, form FR0021 (DAS-1). The form should be completed following the law requirements and presented to AB Amber Grid together with the broker’s confirmation by 19th May 2025.

    For additional information on pay out of the dividends please contact AB SEB bankas, phone number +370 5 268 28 00 (web page: www.seb.lt).

    More information:
    Laura Šebekienė
    Head of Communications  
    ph. +370 699 61 246
    e-mail: l.sebekiene@ambergrid.lt  

    The MIL Network –

  • MIL-OSI: AB Amber Grid Operating Results for the 1st Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    AB Amber Grid, legal entity code: 303090867. Address: Laisvės pr. 10, LT-04215 Vilnius, Lithuania.

    AB Amber Grid delivers results for the 1st quarter of 2025 prepared according to the International Financial Reporting Standards:
    • Revenue for the 1st quarter of 2025 EUR 20.8 million (the 1st quarter of 2024 EUR 20.6 million);
    • Net profit for the 1st quarter of 2025 EUR 4.2 million (the 1st quarter of 2024 EUR 4.0 million);
    • EBITDA (earnings before interest, taxes, depreciation and amortisation) for the 1st quarter of 2025 EUR 8.9 million (the 1st quarter of 2024 EUR 9.0 million);
    • Average return on equity (ROE) for the last 12 month as of 31 March 2025 4.6% (as of 31 March 2024 8.3%).

    AB Amber Grid adjusted financial indicators for the 1st quarter of 2025:
    • Adjusted net profit for the 1st quarter of 2025 EUR 3.8 million (the 1st quarter of 2024 EUR 3.4 million);
    • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) for the 1st quarter of 2025 EUR 8.3 million (the 1st quarter of 2024 EUR 8.2 million);
    • Average return on equity (ROE) for the last 12 months as of 31 March 2025 5.6% (as of 31 March 2024 4.7%).

    The adjustment of regulated income, costs and profitability indicators is carried out due to temporary regulatory difference from the regulated profitability approved by National Energy Regulatory Council (NERC). When calculating adjusted indicators, the correction of income is assessed due to previous periods, which is already approved by the decision of NERC in determining the regulated prices of transmission services for the reporting period. Also, the indicators are adjusted by the deviation of the NERC approved (regulated) and actual profitability of the reporting period, which NERC will evaluate when determining the transmission service prices for the coming period. Non-recurring (one-off) transactions are also eliminated.

    Attached:
    1. AB Amber Grid condensed interim financial statements for 3 months period ended 31 March 2025;
    2. Press release.

    More information:
    Laura Šebekienė, Head of Communications  
    ph. +370 699 61 246, e-mail: l.sebekiene@ambergrid.lt  

    Attachments

    The MIL Network –

  • MIL-OSI USA: King, Bipartisan Colleagues Collaborate to Expand Tax Credit for Small Businesses Investing in Research & Development

    US Senate News:

    Source: United States Senator for Maine Angus King
    WASHINGTON, D.C. – Today, U.S. Senator Angus King (I-ME), a member of the Senate Armed Services Committee (SASC), is cosponsoring bipartisan legislation to help the United States outcompete foreign adversaries like China that are significantly investing in research and development (R&D). The American Innovation and Jobs Act would help American small businesses expand and strengthen research and development (R&D) by extending and making permanent vital tax credits –allowing full expensing of R&D—previously included in the 2017 Tax Cuts and Jobs Act.
    Companies and startups investing in R&D have long been able to either claim a tax credit or deduct their investments, which helps them to invest in developing new, innovative products. The legislation would also permanently restore full expensing of R&D costs while allowing businesses to retroactively take advantage of the deduction for the tax years during which full expensing had expired.
    “’Made in America’ products are essential to demonstrating American superiority on the world stage – from maintaining access to critical supply chains to preserving control of sensitive intellectual property,” Senator King said. “The bipartisan American Innovation and Jobs Act will allow American small businesses to innovate and grow their footprints with the certainty of expanded, permanent tax credits that make this critical research more economically desirable. I want to thank my colleagues on both sides of the aisle for recognizing the importance of strengthening American industry to build jobs here at home, address national security challenges, and compete on the global stage.”
    More specifically, the American Innovation and Jobs Act would:
    Restore incentives for long-term R&D investment by ensuring that companies can continue to fully deduct R&D expenses each year by repealing the change made by the Tax Cuts and Jobs Act to section 174 of the tax code.
    Expand support for innovative startups by:
    Immediately doubling the cap on the refundable R&D tax credit from $250,000 to $500,000, and ultimately raising it to $750,000 over ten years.
    Expanding access to the R&D tax credit for startups by lowering certain threshold needed to qualify.
    Expand the number of startups eligible to use the refundable R&D credit by:
    Increasing the eligibility threshold from $5 million to $15 million in gross receipts.
    Increasing the period during which startups can claim the credit from 5 years to 8 years after beginning to generate at least $25,000 in revenue.
    In addition to King, cosponsors of the legislation include Senators Todd Young (R-IN), Maggie Hassan (D-NH), James Lankford (R-OK), Jeanne Shaheen (D-NH), Steve Daines (R-MT), Mark Warner (D-VA), John Barrasso (R-WY), Jacky Rosen (D-NV), Thom Tillis (R-NC), Gary Peters (D-MI), Roger Marshall (R-KS), Alex Padilla (D-CA), Tommy Tuberville (R-AL), Patty Murray (D-WA), John Kennedy (R-LA), Amy Klobuchar (D-MN), Pete Ricketts (R-NE), Mark Kelly (D-AZ), Katie Britt (R-AL), Tim Kaine (D-VA), Shelley Moore Capito (R-WV), Catherine Cortez Masto (D-NV), Deb Fischer (R-NE), Tammy Baldwin (D-WI), Jerry Moran (R-KS), Ben Ray Lujan (D-NM), Bill Hagerty (R-TN), Chris Coons (D-DE), Markwayne Mullin (R-OK), Elissa Slotkin (D-MI), Roger Wicker (R-MS), Ted Budd (R-NC), Jon Ossoff (D-GA), Jon Husted (R-OH), and Martin Heinrich (D-NM.).
    The legislation is endorsed by the R&D Coalition, which includes companies of all sizes and many trade associations including Business Roundtable, National Association of Manufacturers, Information Technology Industry Council, and the U.S. Chamber of Commerce.
    As a member of the Senate Armed Services Committee, Senate Select Committee on Intelligence, and Senate Energy & Natural Resources Committee, Senator King is committed to advancing American competitiveness in 21st century technologies and reducing America’s reliance on fossil fuels while improving national security and strengthening cyberdefenses. Senator King is the co-chair of the Senate Semiconductor Caucus, and has been one of the Senate’s leading advocates for improving battery technology and recycling as a way to strengthen national security and create good-paying American jobs. He was also a cosponsor of the Critical Minerals Security Act to direct the U.S. Department of the Interior to evaluate the global supply and ownership of critical minerals, establish a process to assist U.S. companies seeking to divest critical minerals operations in foreign countries, and develop a method for sharing intellectual property for clean mining and processing technologies with U.S. allies and partners.
    Full text of the legislation can be found here.

    MIL OSI USA News –

  • MIL-OSI Global: Can Trump strip Harvard of its charitable status? Scholars of nonprofit law and accounting describe the obstacles in his way

    Source: The Conversation – USA – By Philip Hackney, Professor of Law, University of Pittsburgh

    Getting into Harvard University is hard, and so is getting rid of its charitable status. Scott Eisen/Getty Images

    President Donald Trump has repeatedly threatened to revoke Harvard University’s tax-exempt status, and some media outlets have reported that the Internal Revenue Service is taking steps in that direction.

    Harvard President Alan Garber says this would be “highly illegal.” Several U.S. senators, all Democrats, have urged the IRS inspector general to see whether the IRS has begun auditing Harvard or any nonprofits in response to his administration’s requests or whether Trump has violated any laws with his pressure campaign.

    The Conversation U.S. asked Philip Hackney, a nonprofit law professor who previously worked in the office of the chief counsel of the IRS, and Brian Mittendorf, an expert on nonprofit accounting, to explain what it would take for the federal government to revoke a university’s tax-exempt status.

    Can Trump order the IRS to strip Harvard of its tax-exempt status?

    No.

    First, the IRS rarely revokes an organization’s charitable tax-exempt status for failure to operate for a charitable purpose.

    Before the IRS can do that, tax law requires that it first audit that charity. And it’s illegal for U.S. presidents or other officials to force the IRS to conduct an audit or stop one that’s already begun. Even doing either of those things indirectly is a crime. The punishment can include fines and imprisonment.

    Congress strengthened constraints on presidential power after Richard Nixon resigned in the midst of the Watergate investigations. At the time, evidence indicated that he had used the IRS as a weapon to punish his perceived political enemies.

    Worried that future presidents or officials might abuse the IRS, a Republican-led Congress later passed Section 7217 of the IRS Restructuring and Reform Act of 1998.

    That provision prohibits presidents and vice presidents, as well as other officials and their staff, from instructing, “directly or indirectly, any officer or employee of the Internal Revenue Service to conduct or terminate an audit or other investigation of any particular taxpayer with respect to the tax liability of such taxpayer.”

    President Richard M. Nixon holds a tax bill he signed into law in 1970, four years before he resigned. Part of his legacy is that it’s now more clearly illegal for presidents to use the IRS as a political weapon.
    Bettmann/Getty Images

    What does it take for a nonprofit’s tax-exempt status to be revoked?

    This can’t happen on a whim. The IRS first has to audit the nonprofit. If it obtains evidence of wrongdoing – and a court upholds that finding – the IRS can proceed.

    The government has to find that the nonprofit’s operations have a “substantial nonexempt purpose.” That’s because these tax exemptions are provided only to organizations that are organized and operated primarily for charitable purposes, such as education, religion or scientific research.

    Any audit of Harvard would involve a large team of IRS agents familiar with higher education, which would work on this probe for months. The process could take years.

    If, after completing that audit, that team were to determine that Harvard violated the rules, the IRS would have to send Harvard a proposed revocation letter. Harvard then would have 30 days to file an appeal with the IRS. Were the IRS to propose such a revocation, we would be shocked if Harvard didn’t take that step.

    If the IRS Office of Appeals were to uphold the revocation, the IRS would send a revocation letter to Harvard. But Harvard would have the right to challenge that official revocation in court under Section 7428 of the tax code.

    How often does this happen?

    Very rarely. Almost never for private schools. The only legal precedent the Trump administration could perhaps invoke is Bob Jones University v. United States.

    That litigation got underway in the 1970s after the IRS had, following years of civil rights litigation, stopped allowing private schools to have charitable status if they discriminated on the basis of race.

    That policy put the small Christian university on the spot because it barred the admission of Black students until 1971. At that point, it began to accept Black students but only if they were married to another Black person. The school justified this restriction by voicing its belief that the Bible forbids interracial marriage and dating. In 1970, the IRS had notified the university that it intended to cancel Bob Jones’ tax-exempt status.

    The IRS issued a final revocation in 1976 after determining that Bob Jones University continued to discriminate with the ban on interracial dating and marriage. And in 1983, the U.S. Supreme Court upheld the IRS’ action in an 8-1 decision.

    The court’s majority wrote that an institution should be denied charitable status “only where there can be no doubt that the activity involved is contrary to a fundamental public policy.”

    Harvard President Alan Garber responds to Trump’s threats in an interview with The Wall Street Journal.

    What’s the Trump administration’s rationale?

    Many signs indicate the Trump administration would try to use the fundamental policy limitation to revoke Harvard’s status. We’re unaware, though, of what alleged violation of a “fundamental public policy” the IRS might invoke if it were to carry through on Trump’s threat to strip Harvard of its charitable status. The Trump administration has signaled that it might rest its case on Harvard’s diversity, equity and inclusion programs.

    In a related case, a majority found in a 2023 ruling that affirmative action admissions programs violated the Constitution. The case, known as Students for Fair Admissions v. President and Fellows of Harvard College, also considered the University of North Carolina’s policies.

    Harvard subsequently enrolled fewer new Black students, indicating that it had changed its admissions policies. Regardless, there are many precedents finding elements of diversity, equity and inclusion to be activities that do further a charitable purpose.

    We believe the Trump administration would be unlikely to prevail in the courts with an anti-DEI argument should it try to use one to justify stripping Harvard of its tax-exempt status.

    What happens if a big nonprofit loses its charity status?

    Losing nonprofit status can do a lot of damage.

    An organization that loses its status, whether it’s a university like Harvard, a food bank, a homeless shelter or any other kind of charity, is suddenly subject to federal income tax. It also loses the ability to receive tax-deductible gifts from donors who are eligible to make them.

    Because many state and municipal tax breaks are tied to federal tax status, losing tax-exempt status can also lead to local tax penalties. One compelling local tax break afforded to many charities is an exemption from property tax. Universities with large amounts of buildings and land – as Harvard has – would especially feel the pain.

    Without charity status, organizations that rely on grants from local, state and federal government sources, as well as private sources such as other charities, will find many of those sources of funding largely cut off. This is because many grant providers require all recipients to have tax-exempt status.

    The Internal Revenue Manual, which guides IRS agents in carrying out their work, indicates a number of other problems that would arise after revocation. For instance, an agent is required to consider the impact on the organization’s deferred compensation plans and tax-exempt bonds.

    Does the government appear to have a strong case against Harvard?

    There’s been little concrete information about the basis for Harvard losing its status. Most of what we know comes from social media posts and media interviews.

    The Trump administration has attacked Harvard for its efforts to increase its diversity and its response to antisemitism on its campus. In response to concerns about these issues, Harvard has retooled its DEI office and begun to roll out reforms to combat both antisemitism and anti-Muslim bias.

    But it is hard to argue that these issues would be central to Harvard and its educational mission, let alone warrant it losing its tax-exempt status.

    What’s the impact then?

    Given the steep climb it would be to prove that the organization has strayed from its educational mission, and not just taken some actions the White House dislikes, we find it hard to imagine a viable path toward the IRS revoking Harvard’s charitable status.

    That doesn’t mean there will not be any consequences from the administration’s campaign against Harvard.

    The daily onslaught of public attacks coupled with the ongoing legal battles are a drain on Harvard officials’ time and energy.

    The administration has put Harvard and other universities on the defensive in many other ways too. It has cut federal funding for scientific research, sought to revoke international student visas, expressed an interest in reducing federally funded student loans and grants, and floated proposals to increase what is today a small tax on the income some higher education endowments earn.

    If there’s a silver lining for Harvard, we think it’s that Trump’s attacks could spur giving to the nation’s wealthiest university, at least in the short run. Harvard’s supporters stepped up their donations after the administration’s initial efforts to punish Harvard. And giving-as-activism has been a frequent theme in both of Trump’s terms.

    The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Can Trump strip Harvard of its charitable status? Scholars of nonprofit law and accounting describe the obstacles in his way – https://theconversation.com/can-trump-strip-harvard-of-its-charitable-status-scholars-of-nonprofit-law-and-accounting-describe-the-obstacles-in-his-way-255072

    MIL OSI – Global Reports –

  • MIL-OSI: Inuvo Posts Record Q1 2025 Revenue of $26.7M, up 57% Year-Over-Year

    Source: GlobeNewswire (MIL-OSI)

    LITTLE ROCK, Ark., May 09, 2025 (GLOBE NEWSWIRE) — Inuvo, Inc. (NYSE American: INUV), a leading provider of artificial intelligence AdTech solutions, today provided a business update and announced its financial results for the first quarter ended March 31, 2025.

    First Quarter 2025 Financial Highlights:

    • Revenue was a record $26.7 million; a 57% increase compared to $17.0 million in Q1. 2024; highest revenue in the Company’s history.
    • Gross profit increased 41% to $21.1 million, compared to $14.9 million in Q1 2024.
    • Net loss per share was $0.01 compared to $0.02 in the prior year.  
    • Adjusted EBITDA loss was $22 thousand, compared to a loss of $1.0 million for Q1 2024.

    First Quarter 2025 Operational Highlights:

    • The company launched the enhanced IntentKey Self-Serve Platform, an advanced AI agent for audience discovery and targeting.
    • The company added 20 new IntentKey clients and now has 15 self-service clients. 
    • The company introduced IntentKey zip code-level audience insights and targeting.
    • The company materially grew both Platform and the Agencies & Brands product lines. 

    Richard Howe, CEO of Inuvo, stated, “I’m thrilled to announce another record quarter, our second consecutive, with 57% year-over-year growth driven by both product lines. As Q1 is typically our weakest quarter, this strong performance sets a positive tone for the year ahead.” Mr. Howe added, “Our Platform product is benefiting from technology and service enhancements initiated in late 2023, while Agencies & Brands are thriving with enhanced capabilities that enable marketers to quickly identify and target virtually any audience they can conceive, in minutes.”

    Financial Results for the First Quarter Ended March 31,2025

    Net revenue for the first quarter of 2025 totaled $26.7 million, compared to $17.0 million for the same period last year. The increase in revenue for the three-month period ended March 31, 2025, compared to the same period in the prior year came from a 61% increase within Platforms and a 31% increase within Agencies & Brands.

    Cost of revenue for the first quarter of 2025 totaled $5.6 million, compared to $2.1 million for the same period last year. The increase in the cost of revenue for the three months ended March 31, 2025, as compared to the same period last year, was related to higher Platform revenue and the introduction of a new product.

    Gross profit for the three months ended March 31, 2025, totaled $21.1 million as compared to $14.9 million for the same period last year. Gross profit margin for the three months ended March 31, 2025, was 79% as compared to 87.7% for the same period last year. The lower gross margin was due to changes in product mix.

    Operating expenses for the three months ended March 31, 2025, totaled $22.9 million compared to $17 million for the same period last year. Operating expenses are composed of marketing costs, compensation and general & administrative expenses. For the three-months ended March 31, 2025, all three categories of operating expense increased year-over-year.

    Marketing costs increased due to the higher expenses associated with Platform revenue growth. Compensation expense was higher due primarily to a one-time accrual of an employee benefit of $335,000 and to higher incentive accrual. General and administrative expense was $1.1 million higher year-over-year primarily due to a reduction of the allowance for expected credit losses last year.

    Finance expense, net of interest income, for the three months ended March 31, 2025, was $28 thousand compared to $20 thousand in the same quarter last year. Finance expense this year included $77 thousand of interest income from the Internal Revenue Service (IRS) for a delayed employee retention credit.

    Other income was approximately $541 thousand for the three months ended March 31, 2025 in comparison with $0 for the same quarter in 2024. In March 2025, the Company received a payment from the IRS totaling $610 thousand in connection with an employee retention credit filed in 2023. Of the total payment, $533 thousand was recognized in other Income.

    Net loss for the first quarter of 2025 was $1.3 million, or $0.01 per basic and diluted share, as compared to net loss of $2.1 million, or $0.02 per basic and diluted share, for the same period last year.

    Adjusted EBITDA [see reconciliation table below] was near break-even at a loss of approximately $22 thousand in the first quarter of 2025 compared to a loss of approximately $1.0 million for the same period last year.

    Liquidity and Capital Resources:

    On March 31, 2025, Inuvo had $2.6 million in cash and cash equivalents, an unused working capital facility of $10.0 million and no debt.

    As of May 2, 2025, Inuvo had 144,253,434 common shares issued and outstanding.

    Conference Call Details: 

    Date: Friday, May 9, 2025
    Time: 8:30 a.m. Eastern Time
    Toll-free Dial-in Number: 1-800-717-1738
    International Dial-in Number: 1- 646-307-1865
    Conference ID: 11109974
    Webcast Link: HERE

    A telephone replay will be available through Friday, May 23, 2025. To access the replay, please dial 1- 844-512-2921 (domestic) or 1- 412-317-6671 (international). At the system prompt, please enter the code 11109974 followed by the # sign. You will then be prompted for your name, company, and phone number. Playback will then automatically begin.

    About Inuvo
    Inuvo®, Inc. (NYSE American: INUV) is a market leader in Artificial Intelligence built for advertising. Its IntentKey® AI solution is a first-of-its-kind proprietary and patented technology capable of identifying and actioning to the reasons why consumers are interested in products, services, or brands, not who those consumers are. To learn more, visit www.inuvo.com.

    Safe Harbor / Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Inuvo’s quarter-end financial close process and preparation of financial statements for the quarter that are subject to risks and uncertainties that could cause results to be materially different than expectations. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Inuvo, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed on February 27, 2025, and our other filings with the SEC.  Additionally, forward looking statements are subject to certain risks, trends, and uncertainties including the continued impact of Covid-19 on Inuvo’s business and operations. Inuvo cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Inuvo does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. Inuvo further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. The information which appears on our websites and our social media platforms is not part of this press release.

    Inuvo Company Contact:
    Wally Ruiz
    Chief Financial Officer
    Tel (501) 205-8397
    wallace.ruiz@inuvo.com 

    (Tables follow)

    INUVO, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
        Three Months Ended
        March 31   March 31
          2025       2024  
    Net revenue   $ 26,708,032     $ 17,023,777  
    Cost of revenue     5,620,941       2,099,042  
    Gross profit     21,087,091       14,924,735  
    Operating expenses:        
    Marketing costs     17,512,994       13,102,644  
    Compensation     3,599,321       3,224,859  
    General and administrative     1,744,563       688,510  
    Total operating expenses     22,856,878       17,016,013  
    Operating loss     (1,769,787 )     (2,091,278 )
    Interest expense, net     27,929       20,380  
    Other income     (540,571 )     –  
    Income tax expense     2,676       –  
    Net loss   $                (1,259,821 )   $                (2,111,658 )
    Other comprehensive income:        
    Unrealized gain (loss) on marketable securities     –       –  
    Comprehensive income (loss)   $                (1,259,821 )   $                (2,111,658 )
                 
    Net loss per share, basic and diluted   ($ 0.01 )   ($ 0.02 )
    Weighted average shares outstanding:        
    Basic     142,719,274       138,789,669  
    Diluted     142,719,274       138,789,669  
                     
    INUVO, INC.  
    CONDENSED CONSOLIDATED BALANCE SHEETS  
               
               
        March 31   December 31  
          2025     2024  
    Assets          
               
    Cash and cash equivalent   $ 2,561,993   $ 2,459,245  
    Accounts receivable, net     12,022,440     12,545,771  
    Prepaid expenses and other current assets     738,995     639,805  
    Total current assets     15,323,428     15,644,821  
               
    Property and equipment, net     1,793,966     1,792,903  
               
    Goodwill     9,853,342     9,853,342  
    Intangible assets, net of accumulated amortization     3,777,499     3,897,875  
    Other assets     943,956     1,006,990  
               
    Total assets   $ 31,692,191   $ 32,195,931  
               
    Liabilities and Stockholders’ Equity          
               
    Current liabilities          
    Accounts payable   $ 7,257,005   $ 8,422,351  
    Accrued expenses and other current liabilities     10,221,581     9,463,537  
    Total current liabilities     17,478,586     17,885,888  
               
    Long-term liabilities     766,891     835,271  
               
    Total stockholders’ equity     13,446,714     13,474,772  
    Total liabilities and stockholders’ equity   $ 31,692,191   $ 32,195,931  
    RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
    (unaudited)
             
        Three Months Ended
        March 31   March 31
          2025       2024  
    Net loss   $                              (1,259,821 )   $                              (2,111,658 )
    Interest expense, net     27,929       20,380  
    Income tax expense     2,676       –  
    Depreciation and amortization                                        568,042                                          673,203  
    EBITDA     (661,174 )     (1,418,075 )
    Stock-based compensation     304,284       396,312  
    Non recurring items:        
    Employee Benefit     335,000       –  
    Adjusted EBITDA   $                                    (21,890 )   $                              (1,021,763 )
                     

    Reconciliation of Net Loss to EBITDA and Adjusted EBITDA 

    We present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as Net loss plus (i) interest expense, (ii) depreciation, and (iii) amortization. We further define Adjusted EBITDA as EBITDA plus (iv) stock-based compensation and (v) certain identified expenses that are not expected to recur or be representative of future ongoing operation of the business. These adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

    The MIL Network –

  • MIL-OSI: NextNav Inc. Reports First Quarter 2025 Results and Operational Highlights

    Source: GlobeNewswire (MIL-OSI)

    FCC releases Notice of Inquiry (NOI) with bipartisan 4-0 vote

    NextNav Announces Appointment of Rear Admirals H. Wyman Howard and Lorin Selby to its Board of Directors

    RESTON, Va., May 09, 2025 (GLOBE NEWSWIRE) — NextNav Inc. (NASDAQ: NN) a leader in next generation positioning, navigation, and timing (PNT) and 3D geolocation, today reported its financial results and operational updates for the quarter ended March 31, 2025.

    “During the quarter we saw continued FCC momentum with a unanimous vote in March to further explore PNT solutions, specifically including NextNav’s,” said NextNav’s CEO, Mariam Sorond. “We remain focused on executing against our goals and addressing an urgent national security need for a terrestrial complement and backup to GPS. We look forward to working with the FCC and the rest of the industry to enable PNT resiliency.”

    Recent Operational Highlights

    • Announced Appointment of Two New Members to Board of Directors: On April 16, 2025, NextNav announced the appointment of Retired Rear Admirals H. Wyman Howard and Lorin Selby to its Board of Directors, effective May 1, 2025.
    • FCC Releases Notice of Inquiry (NOI): On March 27, 2025, the FCC unanimously voted to approve the NOI titled Promoting the Development of PNT Technologies and Solutions to explore how the Commission may foster GPS backups and alternatives, underscoring the FCC’s focus on this issue. On April 28, 2025, NextNav filed comments with the FCC emphasizing the importance of at least one future-proof solution that relies on market forces to deliver a terrestrial, widescale PNT solution that is broadly available to critical infrastructure, public safety, and consumers, and has a clear path to incorporation in end-user devices.

    Three Months Ended March 31, 2025 Financial Highlights

    • Revenue: was $1.5 million in the three months ended March 31, 2025, as compared to $1.0 million in the prior year period. The increase was driven by an increase in service revenue from technology and services contracts with government and commercial customers.
    • Operating Loss: was $17.0 million in the three months ended March 31, 2025, as compared to an operating loss of $16.2 million in the prior year period, primarily driven by higher professional fees and outside consulting expenses, partially offset by reductions in software license costs and payroll-related expenses.
    • Net Loss: was $58.6 million in the three months ended March 31, 2025, including a loss on change in the fair value of derivative liability of $24.5 million and debt extinguishment loss of $14.4 million, as compared to a net loss of $31.6 million in the prior year period, including a loss on the fair value of the warrants of $13.2 million.
    • Balance Sheet: as of March 31, 2025, the Company had $150.4 million in cash and cash equivalents and $38.0 million in short term investments.  Net long term debt of $213.1 million includes derivative liability of $56.5 million, and is net of unamortized discount of $33.4 million, with a face value of $190.0 million.

    Conference Call Information

    NextNav will host a conference call for analysts and investors at 9:00 am ET on Friday, May 9, 2025.

    Registration for the conference call can be completed by visiting the following website prior to, or on the day of, the conference call: https://registrations.events/direct/Q4I6293672417. After registering, each participant will be provided with call details and a registrant ID. Reminders will also be sent to registered participants via email. Alternatively, the conference call will be available via a live webcast.

    To access the live webcast or a replay, visit the Company’s investor relations website at https://ir.nextnav.com/.

    A replay will be available through March 16, 2025. To receive replay details, please register through the link above. After registering for replay details, each participant will be provided with call details and access codes to listen to the call playback.

    About NextNav Inc.

    NextNav Inc. (Nasdaq: NN) is a leader in next generation positioning, navigation and timing (PNT), enabling a whole new ecosystem of applications and services that rely upon 3D geolocation and PNT technology. Powered by low-band licensed spectrum, NextNav’s positioning and timing technologies deliver accurate, reliable, and resilient 3D PNT solutions for critical infrastructure, GPS resiliency and commercial use cases.

    For more information, please visit https://nextnav.com/ or follow NextNav on Twitter or LinkedIn.

    Source: NN-FIN

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to NextNav’s future prospects, developments and business strategies. In particular, such forward-looking statements include the achievement of certain FCC-related milestones and FCC approvals, the ability to realize the broader spectrum capacity and the advancement of NextNav’s terrestrial 3D PNT services, NextNav’s position to drive growth in its 3D geolocation business and expansion of its next generation terrestrial 3D PNT technologies, the business plans, objectives, expectations and intentions of NextNav, and NextNav’s estimated and future business strategies, competitive position, industry environment, potential growth opportunities, revenue, expenses, and profitability. These statements are based on NextNav’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events.

    Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside NextNav’s control that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to, those included in Part II, Item 1A, “Risk Factors” of the Company’s quarterly reports on Form 10-Q, and Part I, Item 1A, “Risk Factors” of the NextNav’s Annual Report on Form 10-K for the year ended December 31, 2024, as well as those otherwise described or updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”). You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and NextNav undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

    Contact:
    Sloane & Company
    nextnav@sloanepr.com

    NEXTNAV INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (IN THOUSANDS, EXCEPT SHARE DATA)
     
        March 31, 2025 (unaudited)     December 31, 2024  
    Assets            
    Current assets:            
    Cash and cash equivalents   $ 150,422     $ 39,330  
    Short term investments     37,986       40,785  
    Accounts receivable     1,645       3,301  
    Other current assets     3,413       2,629  
    Total current assets   $ 193,466     $ 86,045  
    Property and equipment, net of accumulated depreciation of $14,725 and $13,716 at March 31, 2025 and December 31, 2024, respectively     16,972       17,974  
    Operating lease right-of-use assets     17,329       17,368  
    Goodwill     17,641       16,966  
    Intangible assets     9,454       9,589  
    Other assets     13,744       13,798  
    Total assets   $ 268,606     $ 161,740  
                     
    Liabilities and stockholders’ equity                
    Current liabilities:                
    Accounts payable   $ 1,131     $ 858  
    Accrued expenses and other current liabilities     7,312       8,536  
    Operating lease current liabilities     2,795       2,462  
    Deferred revenue     310       288  
    Total current liabilities   $ 11,548     $ 12,144  
                     
    Warrants     21,425       28,707  
    Operating lease noncurrent liabilities     14,198       14,352  
    Other long-term liabilities     1,761       1,795  
    Long term debt, net     213,101       54,621  
    Total liabilities   $ 262,033     $ 111,619  
                     
    Stockholders’ equity:                
    Common stock, authorized 500,000,000 shares; 132,413,938 and 131,268,940 shares issued and 132,281,710 and 131,136,712 shares outstanding at March 31, 2025 and December 31, 2024, respectively     14       14  
    Additional paid-in capital     926,280       912,241  
    Accumulated other comprehensive income     1,657       665  
    Accumulated deficit     (920,685 )     (862,106 )
    Common stock in treasury, at cost; 132,228 shares at both March 31, 2025 and December 31, 2024     (693 )     (693 )
    Total stockholders’ equity   $ 6,573     $ 50,121  
    Total liabilities and stockholders’ equity   $ 268,606     $ 161,740  
     
    NEXTNAV INC.
    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (UNAUDITED)
    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
     
        Three Months Ended March 31,  
        2025     2024  
    Revenue   $ 1,539     $ 1,046  
    Operating expenses:                
    Cost of goods sold (exclusive of depreciation and amortization)     2,533       2,761  
    Research and development     4,038       4,670  
    Selling, general and administrative     10,520       8,446  
    Depreciation and amortization     1,452       1,319  
    Total operating expenses   $ 18,543     $ 17,196  
    Operating loss   $ (17,004 )   $ (16,150 )
    Other income (expense):                
    Interest expense, net     (2,738 )     (2,168 )
    Debt extinguishment loss     (14,434 )     —  
    Change in fair value of warrants     6,041       (13,176 )
    Change in fair value of derivative liability     (24,523 )     —  
    Other loss, net     (5,863 )     (72 )
    Loss before income taxes   $ (58,521 )   $ (31,566 )
    Provision for income taxes     58       44  
    Net loss   $ (58,579 )   $ (31,610 )
    Foreign currency translation adjustment     993       (522 )
    Comprehensive loss   $ (57,586 )   $ (32,132 )
    Net loss     (58,579 )     (31,610 )
    Net loss attributable to common stockholders   $ (58,579 )   $ (31,610 )
    Weighted average of shares outstanding – basic and diluted     131,104       111,061  
    Net loss attributable to common stockholders per share – basic and diluted   $ (0.45 )   $ (0.28 )
     
    NEXTNAV INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (IN THOUSANDS)
     
        Three Months Ended March 31,  
        2025     2024  
    Operating activities            
    Net loss   $ (58,579 )   $ (31,610 )
    Adjustments to reconcile net loss to net cash used in operating activities:                
    Depreciation and amortization     1,452       1,319  
    Equity-based compensation     4,324       4,244  
    Change in fair value of warrants     (6,041 )     13,176  
    Debt extinguishment loss     13,734       —  
    Issuance of common warrants     5,766       —  
    Change in fair value of derivative liability     24,523       —  
    Realized and unrealized gain on short term investments     (338 )     (50 )
    Equity method investment loss     39       40  
    Asset retirement obligation accretion     26       16  
    Amortization of debt discount     1,739       1,442  
    Changes in operating assets and liabilities:                
    Accounts receivable     1,656       836  
    Other current assets     (749 )     (434 )
    Other assets     16       (107 )
    Accounts payable     273       878  
    Deferred revenue     22       (10 )
    Accrued expenses and other liabilities     (254 )     3,022  
    Operating lease right-of-use assets and liabilities     212       253  
    Net cash used in operating activities   $ (12,179 )   $ (6,985 )
                     
    Investing activities                
    Purchases of network assets, property, and equipment     (30 )     (32 )
    Purchase of internal use software     (101 )     (163 )
    Purchase of marketable securities     (31,463 )     (5,918 )
    Sale and maturity of marketable securities     34,600       4,000  
    Net cash provided by (used in) investing activities   $ 3,006     $ (2,113 )
                     
    Financing activities                
    Proceeds from 2028 senior convertible notes     190,000       —  
    Repayment of 2026 senior secured notes     (70,000 )     —  
    Payments towards debt issuance cost     (550 )     —  
    Payments towards debt     (27 )     (28 )
    Proceeds from exercise of common warrants     517       —  
    Proceeds from exercise of common stock options     232       544  
    Net cash provided by financing activities   $ 120,172     $ 516  
    Effect of exchange rates on cash and cash equivalents     93       21  
    Net increase (decrease) in cash and cash equivalents     111,092       (8,561 )
    Cash and cash equivalents at beginning of period     39,330       81,878  
    Cash and cash equivalents at end of period   $ 150,422     $ 73,317  
                     
    Non-cash investing and financing information                
    Capital expenditure included in Accrued expenses and other current liabilities   $ 22     $ 278  
     

    The MIL Network –

  • MIL-OSI: illumin Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    First Quarter Revenue of $29.1 Million up 17% YoY
    Exchange Service Revenue up 148% YoY

    (All monetary figures are expressed in Canadian dollars unless otherwise stated)

    TORONTO, May 09, 2025 (GLOBE NEWSWIRE) — illumin Holdings Inc. (TSX: ILLM and OTCQB: ILLMF) (“illumin” or the “Company”), the advertising technology platform that enables you to win your next customer, today announced its financial results for the first quarter ended March 31, 2025.

    First Quarter 2025 Highlights

    • First quarter 2025 revenue rose 17% year-over-year to $29.1 million, driven by higher Exchange service revenue, partially offset by lower Managed service revenue.
    • Self-service revenue was $8.4 million, up slightly compared with the year ago period and represented 29% of total revenue.
    • The Company on-boarded 18 net new Self-service clients during the quarter, reflecting sales initiatives targeting higher-spend clients and positioning the Company for continued long-term Self service revenue growth.
    • Managed service revenue was $8.7 million compared to $11.8 million in the prior year, primarily reflecting more cautious marketing spend related to geo-political and macro-economic uncertainty.
    • Exchange service revenue increased by 148% from the prior year to $12.0 million, resulting from increased demand from new customers, an enhanced supplier network, and platform improvements.
    • Gross margin was 45% compared to 47% for the same period in 2024, reflecting the change in mix to service lines with lower margins, such as Exchange service.
    • Net revenue, or gross profit (revenue less media-related costs), was $13.1 million, up 13% compared with $11.6 million in the prior year period.
    • Adjusted EBITDA loss was $0.4 million, compared to $0.0 million in the prior year period, primarily attributable to higher operating costs due to higher sales, sales support functions, and marketing costs, partly offset by higher revenue.
    • Net loss was $(1.9) million, compared to $(1.1) million in Q1 2024. The increase in the net loss was primarily a result of higher operating costs due to increased sales and marketing costs and a lower net foreign exchange gain compared to the prior year period, partially offset by higher revenue.
    • On December 23, 2024, the Company commenced a new normal course issuer bid (“2024 NCIB”) for its common shares that will remain open until December 22, 2025, or such earlier time as the 2024 NCIB is completed or terminated at the option of the Company. Under the 2024 NCIB, the Company may purchase for cancellation up to 3,914,167 common shares, representing approximately 10% of the Company’s public float as of December 10, 2024. Daily purchases are limited to 12,518 common shares. For the three months ended March 31, 2025, the company purchased nil common shares pursuant to the 2024 NCIB.

    Simon Cairns, illumin’s Chief Executive Officer, commented, “Our first quarter revenue rose 17% even after a slower start to the period than we anticipated. We responded by adjusting our marketing tests week to week and made several advances in our selling process and sales team, which enabled us to exit the quarter with solid growth, led by a 148% rise in our Exchange service revenue and supported by solid performance in Self-service.”

    “In Exchange service, we continue to create and capture both new and recurring demand at surprising levels, as a result of product and selling investments that have given us some differentiation in a very crowded market. As for Self-service, we successfully added 18 new customers in the quarter, which is in line with our key goal of adding targeted, higher-spend clients in this growth area. Self-service revenue, while up slightly year-over-year, exhibited several solid underlying trends, such as increased customer adoption, spend performance and conversion.”

    “We continue to employ the more customer-centric portfolio platform approach that we launched in the second half of 2024, where customers can pick and choose how they want to be supported. Our efforts to market and sell more effectively continue to yield initial positive results, assisted by our ability to offer our clients a broad range of solutions that fit their needs. We continue to invest in our Self-service platform and Exchange service offering, while balancing this with a focus on maintaining liquidity and cost management across our organization.”

    “We remain focused on our plan – being aggressive in generating better marketing and sales performance, removing friction from our selling processes and furthering our product stickiness as a Self-first platform supported by complimentary Managed and Exchange services,” concluded Mr. Cairns.

    Elliot Muchnik, illumin’s Chief Financial Officer, commented, “For what is typically a seasonally slower quarter, our strong year-over-year increase in total revenue reflects exceptional growth in Exchange service due to our initiatives to drive increased demand in this area. Adjusted EBITDA declined slightly despite higher revenues as we continued to make strategic investments in sales and marketing to bolster our long-term growth. As we look ahead, operational discipline continues to be a priority as we aim to grow our Adjusted EBITDA while preserving our substantial net cash position.”

    The following table presents a reconciliation of Net loss to Adjusted EBITDA for the periods ended:

          Three months ended
          March 31, March 31,
            2025     2024  
    Net loss for the period     $ (1,854 ) $ (1,138 )
    Adjustments:        
    Finance income, net       (337 )   (506 )
    Foreign exchange gain       (311 )   (1,386 )
    Depreciation and amortization       1,382     1,365  
    Income tax expense (benefit)       (63 )   378  
    Share-based compensation       737     699  
    Severance expenses       34     90  
    Nasdaq-related costs1       –     423  
    Other non-recurring expenses       1     89  
    Total adjustments       1,443     1,152  
    Adjusted EBITDA     $ (411 ) $ 14  

    (1) Nasdaq-related costs are listing fees and directors’ and officers’ insurance specific to the Company’s Nasdaq listing and have been reclassed below Adjusted EBITDA as they are not recurring.

    Conference Call Details:

    Date: Friday, May 9, 2025
    Time: 8:30AM Eastern Time

    To register for the conference call webcast and presentation, please visit:

    https://events.illumin.com/q1-2025-earnings-call

    Please connect 15 minutes prior to the conference call to ensure time for any software download that may be needed to hear the webcast.

    A recording of the conference call webcast will be available after the call by visiting the Company’s website at https://illumin.com/investor-information/.

    Non-IFRS Measures

    This press release makes reference to certain non-IFRS Accounting Standard measures (“non-IFRS measures”). These measures are not recognized measures under IFRS Accounting Standards (“IFRS”), do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non-IFRS measures including “revenue less media-related costs”, “Gross margin”, and “Adjusted EBITDA” (as well as other measures discussed elsewhere in this press release).

    The term “Gross margin” refers to the amount that “revenue less media-related costs” represents as a percentage of total revenue for a given period. Gross margin is used for internal management purposes as an indicator of the performance of the Company’s solution in balancing the goals of delivering excellent results to advertisers while meeting the Company’s margin objectives and, accordingly, the Company believes it is useful supplemental information.

    “Adjusted EBITDA” refers to net income (loss) after adjusting for finance costs (income), impairment loss, fair value gain, income taxes, foreign exchange loss (gain), depreciation and amortization, share-based compensation, acquisition and related integration costs, severance expenses and adjustments to the carrying value of investment tax credits receivable. The Company believes that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by the Company’s main business activities before taking into consideration how those activities are financed and taxed and prior to taking into consideration depreciation of property and equipment and certain other items listed above. It is a key measure used by the Company’s management and board of directors to understand and evaluate the Company’s operating performance, to prepare annual budgets and to help develop operating plans.

    These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers, and that these non-IFRS measures are relevant to their analysis of the Company.

    About illumin:

    illumin is evolving the digital advertising landscape by empowering marketers to achieve transformative results through its customer-centric approach. Featuring a unified canvas built around the open web, illumin lets brands and agencies seamlessly plan, build, and execute campaigns across the entire marketing funnel—connecting programmatic channels, email, and social media within a single platform. Headquartered in Toronto, Canada, illumin serves clients across North America, Latin America, and Europe. For more information, visit illumin.com.

    Disclaimer with regard to forward looking statements

    Certain statements included herein constitute “forward-looking statements” within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward-looking statements. Except as required by law, the Company does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.

    For further information, please contact:

    Steve Hosein
    Investor Relations
    illumin Holdings Inc.
    416-218-9888 ext. 5313
    investors@illumin.com    		   David Hanover
    Investor Relations – U.S.
    KCSA Strategic Communications
    212-896-1220
    dhanover@kcsa.com


    Please note that the following financial information is an extract from the Company’s Consolidated Financial Statements for the three months ended March 31, 2025 and 2024 (the “Financial Statements”) provided for readers’ convenience and should be viewed in conjunction with the Notes to the Financial Statements, which are an integral part of the statements. The full Financial Statements and MD&A for the period may be found by accessing SEDAR+ at     www.sedarplus.com.

    illumin Holdings Inc.
    Consolidated Statements of Financial Position
    (Expressed in thousands of Canadian dollars)
    For the three months ended March 31, 2025 and 2024

        March 31,
    2025    		   December 31,
    2024
    Assets        
             
    Current assets        
    Cash and cash equivalents   $ 54,013   $ 55,952
    Accounts receivable     27,663     44,650
    Income tax receivable     417     613
    Prepaid expenses and other     3,439     2,864
             
          85,532     104,079
    Non-current assets        
    Other assets     117     115
    Property and equipment     7,102     7,406
    Intangible assets     11,099     9,352
    Goodwill     4,870     4,870
             
          108,720     125,822
             
    Liabilities        
             
    Current liabilities        
    Accounts payable and accrued liabilities     24,534     39,148
    Income tax payable     80     137
    Borrowings     15     48
    Lease obligations     1,212     1,513
             
          25,841     40,846
    Non-current liabilities        
    Deferred tax liability     661     1,241
    Lease obligations     4,553     4,702
             
          31,055     46,789
             
    Shareholders’ equity     77,283     79,033
             
          108,720     125,822
             

    illumin Holdings Inc.
    Consolidated Statements of Comprehensive Loss
    (Expressed in thousands of Canadian dollars, except share amounts)
    For the three months ended March 31, 2025 and 2024

            2025     2024  
             
    Revenue     $ 29,081   $ 24,952  
             
    Media-related costs       15,935     13,327  
             
    Gross profit       13,146     11,625  
             
    Operating expenses        
    Sales and marketing       7,348     5,753  
    Technology       4,338     4,086  
    General and administrative       1,906     2,374  
    Share-based compensation       737     699  
    Depreciation and amortization       1,382     1,365  
             
            15,711     14,277  
             
    Loss from operations       (2,565 )   (2,652 )
             
    Finance income, net       (337 )   (506 )
    Foreign exchange gain       (311 )   (1,386 )
             
            (648 )   (1,892 )
             
    Net loss before income taxes       (1,917 )   (760 )
             
    Income tax expense (benefit)       (63 )   378  
             
    Net loss for the period       (1,854 )   (1,138 )
             
             
    Basic and diluted net loss per share       (0.04 )   (0.02 )
             
    Other Comprehensive Loss        
             
    Items that may be subsequently reclassified to net loss:        
    Exchange loss on translating foreign operations       (389 )   (164 )
             
    Comprehensive loss for the period       (2,243 )   (1,302 )

    illumin Holdings Inc.
    Consolidated Statements of Cash Flows
    (Expressed in thousands of Canadian dollars)
    For the three months ended March 31, 2025 and 2024

          2025       2024  
    Cash provided by (used in)        
             
    Operating activities        
    Net loss for the period   $ (1,854 )   $ (1,138 )
    Adjustments to reconcile net loss to net cash flows        
    Depreciation and amortization     1,382       1,365  
    Finance income, net     (337 )     (506 )
    Share-based compensation     737       699  
    Foreign exchange gain     (311 )     (1,386 )
    Severance expense     34       90  
    Income tax expense (benefit)     (63 )     378  
    Change in non-cash operating working capital        
    Accounts receivable     16,769       10,447  
    Prepaid expenses and other     (522 )     427  
    Other assets     –       (1 )
    Accounts payable and accrued liabilities     (14,759 )     (6,151 )
    Income taxes paid, net     (349 )     (52 )
    Interest received     363       495  
             
          1,090       4,667  
             
    Investing activities        
    Additions to property and equipment     (47 )     (775 )
    Additions to intangible assets     (2,465 )     (1,761 )
             
          (2,512 )     (2,536 )
             
    Financing activities        
    Repayment of international loans     (33 )     (33 )
    Payment of leases     (533 )     (510 )
    Repurchase of common shares for cancellation     –       (1,912 )
    Proceeds from the exercise of stock options     138       4  
             
          (428 )     (2,451 )
             
    Decrease in cash and cash equivalents     (1,850 )     (320 )
             
    Impact of foreign exchange on cash and cash equivalents     (89 )     405  
             
    Cash and cash equivalents – beginning of period     55,952       55,455  
             
    Cash and cash equivalents – end of period     54,013       55,540  
             
    Supplemental disclosure of non-cash transactions        
    Unpaid additions (reversals) to property and equipment, net     313       (734 )
             

    The MIL Network –

  • MIL-OSI: Plains All American Reports First-Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, May 09, 2025 (GLOBE NEWSWIRE) — Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported first-quarter 2025 results and provided the following highlights:

    First-Quarter Results

    • Reported net income attributable to PAA of $443 million and net cash provided by operating activities of $639 million
    • Delivered Adjusted EBITDA attributable to PAA of $754 million
    • Exited the quarter with 3.3x leverage ratio, toward the low end of our target range of 3.25x – 3.75x (includes previously announced and closed transactions)
    • Paid a quarterly cash distribution of $0.38 per unit ($1.52 per unit annualized), representing a current distribution yield of ~9.0%

    Business Highlights

    • Plains acquired the remaining 50% interest in Cheyenne Pipeline, enhancing our integration from the Guernsey market to pipelines supplying Cushing, Oklahoma, which closed on February 28, 2025
    • Plains acquired Black Knight Midstream’s Permian Basin crude oil gathering business, for approximately $55 million, which closed effective May 1, 2025
    • Placed into service the 30 Mb/d Fort Saskatchewan fractionation complex debottleneck project enhancing our fee-based cash flow in Canada
    • Increased our 2025 C3+ spec product sales hedge profile to approximately 80% at approximately $0.70 per gallon level

    “Plains delivered another quarter of solid operational and financial performance,” said Willie Chiang, Chairman and CEO. “Substantial cash flow generation from our integrated Crude Oil and NGL footprints coupled with a strong balance sheet positions us well through a time of market volatility and uncertainty. Our focus on efficient growth remains consistent with the addition of two new bolt-on acquisitions and our Fort Saskatchewan fractionation complex debottleneck project now in service. Finally, our commitment to financial discipline and financial flexibility remains unchanged while continuing to return cash to unitholders through a strong distribution payout.”

    Plains All American Pipeline

    Summary Financial Information (unaudited)
    (in millions, except per unit data)

        Three Months Ended
    March 31,    		   %
    GAAP Results   2025
    		   2024
    		   Change
    Net income attributable to PAA (1)   $ 443     $ 266       67 %
    Diluted net income per common unit   $ 0.49     $ 0.29       69 %
    Diluted weighted average common units outstanding     704       701       — %
    Net cash provided by operating activities   $ 639     $ 419       53 %
    Distribution per common unit declared for the period   $ 0.3800     $ 0.3175       20 %
                             
        Three Months Ended
    March 31,    		   %
    Non-GAAP Results (2)   2025   2024   Change
    Adjusted net income attributable to PAA (1)   $ 375     $ 354       6 %
    Diluted adjusted net income per common unit   $ 0.39     $ 0.41     (5 )%
    Adjusted EBITDA   $ 881     $ 847       4 %
    Adjusted EBITDA attributable to PAA (1)   $ 754     $ 718       5 %
    Implied DCF per common unit and common unit equivalent   $ 0.66     $ 0.67     (1 )%
    Adjusted Free Cash Flow (3)   $ (308 )   $ 70     **
    Adjusted Free Cash Flow after Distributions (3)   $ (639 )   $ (217 )   **
    Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) (3)   $ (169 )   $ 262     **
    Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) (3)   $ (500 )   $ (25 )   **

    _____________________

    ** Indicates that variance as a percentage is not meaningful.
    (1) Excludes amounts attributable to noncontrolling interests in the Plains Oryx Permian Basin LLC (the “Permian JV”), Cactus II Pipeline LLC and Red River Pipeline LLC joint ventures.
    (2) See the section of this release entitled “Non-GAAP Financial Measures and Selected Items Impacting Comparability” and the tables attached hereto for information regarding our Non-GAAP financial measures, including their reconciliation to the most directly comparable measures as reported in accordance with GAAP, and certain selected items that PAA believes impact comparability of financial results between reporting periods.
    (3) The 2025 period includes the impact of a net cash outflow of $624 million for bolt-on acquisitions.
       

    Summary of Selected Financial Data by Segment (unaudited)
    (in millions)

      Segment Adjusted EBITDA
      Crude Oil   NGL
    Three Months Ended March 31, 2025 $ 559     $ 189  
    Three Months Ended March 31, 2024 $ 553     $ 159  
    Percentage change in Segment Adjusted EBITDA versus 2024 period   1 %     19 %
                   

    First-quarter 2025 Crude Oil Segment Adjusted EBITDA was in line with comparable 2024 results. Favorable results in the 2025 period from (i) higher tariff volumes on our pipelines, (ii) tariff escalations and (iii) contributions from recently completed bolt-on acquisitions were largely offset by (iv) higher operating expenses and (v) the impact to our assets from refinery downtime.

    First-quarter 2025 NGL Segment Adjusted EBITDA increased 19% versus comparable 2024 results primarily due to higher weighted average frac spreads and NGL sales volumes in the first quarter of 2025.

    Plains GP Holdings

    PAGP owns an indirect non-economic controlling interest in PAA’s general partner and an indirect limited partner interest in PAA. As the control entity of PAA, PAGP consolidates PAA’s results into its financial statements, which is reflected in the condensed consolidating balance sheet and income statement tables attached hereto.

    Conference Call and Webcast Instructions

    PAA and PAGP will hold a joint conference call at 9:00 a.m. CT on Friday, May 9, 2025 to discuss first-quarter performance and related items.

    To access the internet webcast, please go to https://edge.media-server.com/mmc/p/qqvgtyoa/

    Alternatively, the webcast can be accessed on our website at https://ir.plains.com/news-events/events-presentations. Following the live webcast, an audio replay will be available on our website and will be accessible for a period of 365 days. Slides will be posted prior to the call at the above referenced website.

    Non-GAAP Financial Measures and Selected Items Impacting Comparability

    To supplement our financial information presented in accordance with GAAP, management uses additional measures known as “non-GAAP financial measures” in its evaluation of past performance and prospects for the future and to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. The primary additional measures used by management are Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied Distributable Cash Flow (“DCF”), Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions.

    Our definition and calculation of certain non-GAAP financial measures may not be comparable to similarly-titled measures of other companies. Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied DCF and certain other non-GAAP financial performance measures are reconciled to Net Income, and Adjusted Free Cash Flow, Adjusted Free Cash Flow after Distributions and certain other non-GAAP financial liquidity measures are reconciled to Net Cash Provided by Operating Activities (the most directly comparable measures as reported in accordance with GAAP) for the historical periods presented in the tables attached to this release, and should be viewed in addition to, and not in lieu of, our Condensed Consolidated Financial Statements and accompanying notes. In addition, we encourage you to visit our website at www.plains.com (in particular the section under “Financial Information” entitled “Non-GAAP Reconciliations” within the Investor Relations tab), which presents a reconciliation of our commonly used non-GAAP and supplemental financial measures. We do not reconcile non-GAAP financial measures on a forward-looking basis as it is impractical to do so without unreasonable effort.

    Non-GAAP Financial Performance Measures

    Adjusted EBITDA is defined as earnings before (i) interest expense, (ii) income tax (expense)/benefit, (iii) depreciation and amortization (including our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, of unconsolidated entities), (iv) gains and losses on asset sales, asset impairments and other, net, (v) gains on investments in unconsolidated entities, net and (vi) interest income on promissory notes by and among PAA and certain Plains entities, and (vii) adjusted for certain selected items impacting comparability. Adjusted EBITDA attributable to PAA excludes the portion of Adjusted EBITDA that is attributable to noncontrolling interests.

    Management believes that the presentation of Adjusted EBITDA, Adjusted EBITDA attributable to PAA and Implied DCF provides useful information to investors regarding our performance and results of operations because these measures, when used to supplement related GAAP financial measures, (i) provide additional information about our core operating performance and ability to fund distributions to our unitholders through cash generated by our operations and (ii) provide investors with the same financial analytical framework upon which management bases financial, operational, compensation and planning/budgeting decisions. We also present these and additional non-GAAP financial measures, including adjusted net income attributable to PAA and basic and diluted adjusted net income per common unit, as they are measures that investors, rating agencies and debt holders have indicated are useful in assessing us and our results of operations. These non-GAAP financial performance measures may exclude, for example, (i) charges for obligations that are expected to be settled with the issuance of equity instruments, (ii) gains and losses on derivative instruments that are related to underlying activities in another period (or the reversal of such adjustments from a prior period), gains and losses on derivatives that are either related to investing activities (such as the purchase of linefill) or purchases of long-term inventory, and inventory valuation adjustments, as applicable, (iii) long-term inventory costing adjustments, (iv) items that are not indicative of our core operating results and/or (v) other items that we believe should be excluded in understanding our core operating performance. These measures may be further adjusted to include amounts related to deficiencies associated with minimum volume commitments whereby we have billed the counterparties for their deficiency obligation and such amounts are recognized as deferred revenue in “Other current liabilities” in our Condensed Consolidated Financial Statements. We also adjust for amounts billed by our equity method investees related to deficiencies under minimum volume commitments. Such amounts are presented net of applicable amounts subsequently recognized into revenue. Furthermore, the calculation of these measures contemplates tax effects as a separate reconciling item, where applicable. We have defined all such items as “selected items impacting comparability.” Due to the nature of the selected items, certain selected items impacting comparability may impact certain non-GAAP financial measures, referred to as adjusted results, but not impact other non-GAAP financial measures. We do not necessarily consider all of our selected items impacting comparability to be non-recurring, infrequent or unusual, but we believe that an understanding of these selected items impacting comparability is material to the evaluation of our operating results and prospects.

    Although we present selected items impacting comparability that management considers in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates, mechanical interruptions, acquisitions, divestitures, investment capital projects and numerous other factors. These types of variations may not be separately identified in this release, but will be discussed, as applicable, in management’s discussion and analysis of operating results in our Quarterly Report on Form 10-Q.

    Non-GAAP Financial Liquidity Measures

    Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. Adjusted Free Cash Flow is defined as Net Cash Provided by Operating Activities, less Net Cash Provided by/(Used in) Investing Activities, which primarily includes acquisition, investment and maintenance capital expenditures, investments in unconsolidated entities and the impact from the purchase and sale of linefill, net of proceeds from the sales of assets and further impacted by distributions to and contributions from noncontrolling interests and proceeds from the issuance of related party notes. Adjusted Free Cash Flow is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions.

    We also present these measures and additional non-GAAP financial liquidity measures as they are measures that investors have indicated are useful. We present the Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) for use in assessing our underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is defined as Adjusted Free Cash Flow excluding the impact of “Changes in assets and liabilities, net of acquisitions” on our Condensed Consolidated Statements of Cash Flows. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities).

       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in millions, except per unit data)
       
      Three Months Ended
    March 31,
        2025       2024  
    REVENUES $ 12,011     $ 11,995  
           
    COSTS AND EXPENSES      
    Purchases and related costs   10,761       10,917  
    Field operating costs   368       358  
    General and administrative expenses   100       96  
    Depreciation and amortization   262       254  
    Gain on asset sales, net   (13 )     —  
    Total costs and expenses   11,478       11,625  
           
    OPERATING INCOME   533       370  
           
    OTHER INCOME/(EXPENSE)      
    Equity earnings in unconsolidated entities   103       95  
    Gain on investments in unconsolidated entities, net   31       —  
    Interest expense, net (1)   (127 )     (95 )
    Other income/(expense), net (1)   26       (5 )
           
    INCOME BEFORE TAX   566       365  
    Current income tax expense   (46 )     (53 )
    Deferred income tax (expense)/benefit   (4 )     39  
           
    NET INCOME   516       351  
    Net income attributable to noncontrolling interests   (73 )     (85 )
    NET INCOME ATTRIBUTABLE TO PAA $ 443     $ 266  
           
    NET INCOME PER COMMON UNIT:      
    Net income allocated to common unitholders — Basic and Diluted $ 343     $ 203  
    Basic and diluted weighted average common units outstanding   704       701  
    Basic and diluted net income per common unit $ 0.49     $ 0.29  

    _____________________

    (1) PAA and certain Plains entities have issued promissory notes by and among such entities to facilitate financing. “Interest expense, net” and “Other income/(expense), net” each include $20 million for the three months ended March 31, 2025 related to interest on such related party promissory notes. These amounts offset and do not impact Net Income or Non-GAAP metrics such as Adjusted EBITDA, Implied DCF and Adjusted Free Cash Flow.
       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATED BALANCE SHEET DATA
    (in millions)
           
      March 31,
    2025    		   December 31,
    2024
    ASSETS      
    Current assets (including cash and cash equivalents of $427 and $348, respectively) $ 4,735     $ 4,802  
    Property and equipment, net   16,062       15,424  
    Investments in unconsolidated entities   2,745       2,811  
    Intangible assets, net   1,675       1,677  
    Linefill   988       968  
    Long-term operating lease right-of-use assets, net   321       332  
    Long-term inventory   289       280  
    Other long-term assets, net   244       268  
    Total assets $ 27,059     $ 26,562  
           
    LIABILITIES AND PARTNERS’ CAPITAL      
    Current liabilities $ 4,691     $ 4,950  
    Senior notes, net   8,131       7,141  
    Other long-term debt, net   73       72  
    Long-term operating lease liabilities   301       313  
    Other long-term liabilities and deferred credits   1,003       990  
    Total liabilities   14,199       13,466  
           
    Partners’ capital excluding noncontrolling interests   9,632       9,813  
    Noncontrolling interests   3,228       3,283  
    Total partners’ capital   12,860       13,096  
    Total liabilities and partners’ capital $ 27,059     $ 26,562  
                   

    DEBT CAPITALIZATION RATIOS
    (in millions)

      March 31,
    2025    		   December 31,
    2024
    Short-term debt $ 478     $ 408  
    Long-term debt   8,204       7,213  
    Total debt $ 8,682     $ 7,621  
           
    Long-term debt $ 8,204     $ 7,213  
    Partners’ capital excluding noncontrolling interests   9,632       9,813  
    Total book capitalization excluding noncontrolling interests (“Total book capitalization”) $ 17,836     $ 17,026  
    Total book capitalization, including short-term debt $ 18,314     $ 17,434  
           
    Long-term debt-to-total book capitalization   46 %     42 %
    Total debt-to-total book capitalization, including short-term debt   47 %     44 %
                   
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    COMPUTATION OF BASIC AND DILUTED NET INCOME PER COMMON UNIT (1)
    (in millions, except per unit data)
       
      Three Months Ended
    March 31,
      2025   2024
    Basic and Diluted Net Income per Common Unit      
    Net income attributable to PAA $ 443     $ 266  
    Distributions to Series A preferred unitholders   (39 )     (44 )
    Distributions to Series B preferred unitholders   (18 )     (19 )
    Amounts allocated to participating securities   (1 )     (1 )
    Impact from repurchase of Series A preferred units (2)   (43 )     —  
    Other   1       1  
    Net income allocated to common unitholders $ 343     $ 203  
           
    Basic and diluted weighted average common units outstanding (3) (4)   704       701  
           
    Basic and diluted net income per common unit $ 0.49     $ 0.29  

    _____________________

    (1) We calculate net income allocated to common unitholders based on the distributions pertaining to the current period’s net income. After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.
    (2) We repurchased approximately 12.7 million Series A preferred units on January 31, 2025. The difference between the cash we paid for the repurchase of such units and their carrying value on our balance sheet is considered a return to Series A preferred unitholders for the calculation of net income allocated to common unitholders.
    (3) The possible conversion of our Series A preferred units was excluded from the calculation of diluted net income per common unit for each of the three months ended March 31, 2025 and 2024 as the effect was antidilutive.
    (4) Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered potentially dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.
       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATED CASH FLOW DATA
    (in millions)
       
      Three Months Ended
    March 31,
      2025   2024
    CASH FLOWS FROM OPERATING ACTIVITIES      
    Net income $ 516     $ 351  
    Reconciliation of net income to net cash provided by operating activities:      
    Depreciation and amortization   262       254  
    Gain on asset sales, net   (13 )     —  
    Deferred income tax expense/(benefit)   4       (39 )
    Equity earnings in unconsolidated entities   (103 )     (95 )
    Distributions on earnings from unconsolidated entities   125       132  
    Other   (13 )     8  
    Changes in assets and liabilities, net of acquisitions   (139 )     (192 )
    Net cash provided by operating activities   639       419  
           
    CASH FLOWS FROM INVESTING ACTIVITIES      
    Net cash used in investing activities (1)(2)   (1,149 )     (261 )
           
    CASH FLOWS FROM FINANCING ACTIVITIES      
    Net cash provided by/(used in) financing activities (1)   590       (273 )
           
    Effect of translation adjustment   (1 )     (4 )
           
    Net increase/(decrease) in cash and cash equivalents and restricted cash   79       (119 )
           
    Cash and cash equivalents and restricted cash, beginning of period   348       450  
    Cash and cash equivalents and restricted cash, end of period $ 427     $ 331  

    _____________________

    (1) PAA and certain Plains entities have issued promissory notes by and among such entities to facilitate financing. For the three months ended March 31, 2025, “Net cash used in investing activities” includes a cash outflow of approximately $330 million associated with our investment in related party notes. An equal and offsetting cash inflow associated with our issuance of related party notes is included in “Net cash provided by/(used in) financing activities.”
    (2) The 2025 period includes a net cash outflow of $624 million for bolt-on acquisitions.
       

    CAPITAL EXPENDITURES
    (in millions)

      Net to PAA (1)   Consolidated
      Three Months Ended
    March 31,    		   Three Months Ended
    March 31,
      2025
    		   2024
    		   2025
    		   2024
    Investment capital expenditures:              
    Crude Oil $ 89     $ 65     $ 120     $ 90  
    NGL   41       14       41       14  
    Total Investment capital expenditures   130       79       161       104  
    Maintenance capital expenditures   38       53       41       57  
      $ 168     $ 132     $ 202     $ 161  

    _____________________

    (1) Excludes expenditures attributable to noncontrolling interests.
       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    NON-GAAP RECONCILIATIONS
    (in millions, except per unit and ratio data)
       
    Computation of Basic and Diluted Adjusted Net Income Per Common Unit (1):
       
      Three Months Ended
    March 31,
      2025   2024
    Basic and Diluted Adjusted Net Income per Common Unit      
    Net income attributable to PAA $ 443     $ 266  
    Selected items impacting comparability – Adjusted net income attributable to PAA (2)   (68 )     88  
    Adjusted net income attributable to PAA $ 375     $ 354  
    Distributions to Series A preferred unitholders   (39 )     (44 )
    Distributions to Series B preferred unitholders   (18 )     (19 )
    Amounts allocated to participating securities   (1 )     (2 )
    Impact from repurchase of Series A preferred units (3)   (43 )     —  
    Other   1       1  
    Adjusted net income allocated to common unitholders $ 275     $ 290  
           
    Basic and diluted weighted average common units outstanding (4) (5)   704       701  
           
    Basic and diluted adjusted net income per common unit $ 0.39     $ 0.41  

    _____________________

    (1) We calculate adjusted net income allocated to common unitholders based on the distributions pertaining to the current period’s net income. After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.
    (2) See the “Selected Items Impacting Comparability” table for additional information.
    (3) We repurchased approximately 12.7 million Series A preferred units on January 31, 2025. The difference between the cash we paid for the repurchase of such units and their carrying value on our balance sheet is considered a return to Series A preferred unitholders for the calculation of adjusted net income allocated to common unitholders.
    (4) The possible conversion of our Series A preferred units was excluded from the calculation of diluted adjusted net income per common unit for each of the three months ended March 31, 2025 and 2024 as the effect was antidilutive.
    (5) Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered potentially dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.
       

    Net Income Per Common Unit to Adjusted Net Income Per Common Unit Reconciliation:

      Three Months Ended
    March 31,
      2025   2024
    Basic and diluted net income per common unit $ 0.49     $ 0.29  
    Selected items impacting comparability per common unit (1)   (0.10 )     0.12  
    Basic and diluted adjusted net income per common unit $ 0.39     $ 0.41  

    _____________________

    (1)   See the “Selected Items Impacting Comparability” and the “Computation of Basic and Diluted Adjusted Net Income Per Common Unit” tables for additional information.
       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
       
    Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation:
       
      Three Months Ended
    March 31,
      2025   2024
    Net income $ 516     $ 351  
    Interest expense, net of certain items (1)   107       95  
    Income tax expense   50       14  
    Depreciation and amortization   262       254  
    Gain on asset sales, net   (13 )     —  
    Gain on investments in unconsolidated entities, net   (31 )     —  
    Depreciation and amortization of unconsolidated entities (2)   20       19  
    Selected items impacting comparability – Adjusted EBITDA (3)   (30 )     114  
    Adjusted EBITDA $ 881     $ 847  
    Adjusted EBITDA attributable to noncontrolling interests   (127 )     (129 )
    Adjusted EBITDA attributable to PAA $ 754     $ 718  
           
    Adjusted EBITDA $ 881     $ 847  
    Interest expense, net of certain non-cash and other items (4)   (104 )     (90 )
    Maintenance capital   (41 )     (57 )
    Investment capital of noncontrolling interests (5)   (30 )     (25 )
    Current income tax expense   (46 )     (53 )
    Distributions from unconsolidated entities in excess of/(less than) adjusted equity earnings (6)   (2 )     12  
    Distributions to noncontrolling interests (7)   (132 )     (100 )
    Implied DCF $ 526     $ 534  
    Preferred unit distributions paid (7)   (64 )     (64 )
    Implied DCF Available to Common Unitholders $ 462     $ 470  
           
    Weighted Average Common Units Outstanding   704       701  
    Weighted Average Common Units and Common Unit Equivalents   767       772  
           
    Implied DCF per Common Unit (8) $ 0.66     $ 0.67  
    Implied DCF per Common Unit and Common Unit Equivalent (9) $ 0.66     $ 0.67  
           
    Cash Distribution Paid per Common Unit $ 0.3800     $ 0.3175  
    Common Unit Cash Distributions (7) $ 267     $ 223  
    Common Unit Distribution Coverage Ratio 1.73x   2.11x
           
    Implied DCF Excess $ 195     $ 247  

    _____________________

    (1) Represents “Interest expense, net” as reported on our Condensed Consolidated Statements of Operations, net of interest income associated with promissory notes by and among PAA and certain Plains entities.
    (2) Adjustment to exclude our proportionate share of depreciation and amortization expense (including write-downs related to cancelled projects and impairments) of unconsolidated entities.
    (3) See the “Selected Items Impacting Comparability” table for additional information.
    (4) Amount excludes certain non-cash items impacting interest expense such as amortization of debt issuance costs and terminated interest rate swaps and is net of interest income associated with promissory notes by and among PAA and certain Plains entities.
    (5) Investment capital expenditures attributable to noncontrolling interests that reduce Implied DCF available to PAA common unitholders.
    (6) Comprised of cash distributions received from unconsolidated entities less equity earnings in unconsolidated entities (adjusted for our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, and selected items impacting comparability of unconsolidated entities).
    (7) Cash distributions paid during the period presented.
    (8) Implied DCF Available to Common Unitholders for the period divided by the weighted average common units outstanding for the period.
    (9) Implied DCF Available to Common Unitholders for the period, adjusted for Series A preferred unit cash distributions paid, divided by the weighted average common units and common unit equivalents outstanding for the period. Our Series A preferred units are convertible into common units, generally on a one-for-one basis and subject to customary anti-dilution adjustments, in whole or in part, subject to certain minimum conversion amounts.
       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
       
    Net Income Per Common Unit to Implied DCF Per Common Unit and Common Unit Equivalent Reconciliation:
       
      Three Months Ended
    March 31,
      2025
    		   2024
    Basic net income per common unit $ 0.49     $ 0.29  
    Reconciling items per common unit (1) (2)   0.17       0.38  
    Implied DCF per common unit $ 0.66     $ 0.67  
           
    Basic net income per common unit $ 0.49     $ 0.29  
    Reconciling items per common unit and common unit equivalent (1) (3)   0.17       0.38  
    Implied DCF per common unit and common unit equivalent $ 0.66     $ 0.67  

    _____________________

    (1)  Represents adjustments to Net Income to calculate Implied DCF Available to Common Unitholders. See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” table for additional information.
    (2)  Based on weighted average common units outstanding for the three months ended March 31, 2025 and 2024 of 704 million and 701 million, respectively.
    (3)  Based on weighted average common units outstanding for the period, as well as weighted average Series A preferred units outstanding for the three months ended March 31, 2025 and 2024 of 63 million and 71 million, respectively.
       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
       
    Net Cash Provided by Operating Activities to Non-GAAP Financial Liquidity Measures Reconciliation:
       
      Three Months Ended
    March 31,
        2025       2024  
    Net cash provided by operating activities $ 639     $ 419  
    Adjustments to reconcile Net cash provided by operating activities to Adjusted Free Cash Flow:      
    Net cash used in investing activities (1)(2)   (1,149 )     (261 )
    Cash contributions from noncontrolling interests   4       12  
    Cash distributions paid to noncontrolling interests (3)   (132 )     (100 )
    Proceeds from the issuance of related party notes (1)   330       —  
    Adjusted Free Cash Flow (4) $ (308 )   $ 70  
    Cash distributions (5)   (331 )     (287 )
    Adjusted Free Cash Flow after Distributions (4) (6) $ (639 )   $ (217 )
           
      Three Months Ended
    March 31,
        2025       2024  
    Adjusted Free Cash Flow (4) $ (308 )   $ 70  
    Changes in assets and liabilities, net of acquisitions (7)   139       192  
    Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) (8) $ (169 )   $ 262  
    Cash distributions (5)   (331 )     (287 )
    Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) (8) $ (500 )   $ (25 )

    _____________________

    (1) PAA and certain Plains entities have issued promissory notes by and among such entities to facilitate financing. “Proceeds from the issuance of related party notes” has an equal and offsetting cash outflow associated with our investment in related party notes, which is included as a component of “Net cash used in investing activities.”
    (2) The 2025 period includes a net cash outflow of $624 million for bolt-on acquisitions.
    (3) Cash distributions paid during the period presented.
    (4) Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. Adjusted Free Cash Flow after Distributions shortages, if any, may be funded from previously established reserves, cash on hand or from borrowings under our credit facilities or commercial paper program.
    (5) Cash distributions paid to preferred and common unitholders during the period.
    (6) Excess Adjusted Free Cash Flow after Distributions is retained to establish reserves for future distributions, capital expenditures, debt reduction and other partnership purposes. Adjusted Free Cash Flow after Distributions shortages may be funded from previously established reserves, cash on hand or from borrowings under our credit facilities or commercial paper program.
    (7) See the “Condensed Consolidated Cash Flow Data” table.
    (8) Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) and Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) to assess the underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period.
       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    SELECTED ITEMS IMPACTING COMPARABILITY
    (in millions)
       
      Three Months Ended
    March 31,
      2025   2024
    Selected Items Impacting Comparability: (1)      
    Derivative activities and inventory valuation adjustments (2) $ 34     $ (159 )
    Long-term inventory costing adjustments (3)   3       33  
    Deficiencies under minimum volume commitments, net (4)   7       12  
    Equity-indexed compensation expense (5)   (9 )     (9 )
    Foreign currency revaluation (6)   —       9  
    Transaction-related expenses (7)   (5 )     —  
    Selected items impacting comparability – Adjusted EBITDA $ 30     $ (114 )
    Gain on investments in unconsolidated entities, net   31       —  
    Gain on asset sales, net   13       —  
    Tax effect on selected items impacting comparability   (3 )     30  
    Aggregate selected items impacting noncontrolling interests   (3 )     (4 )
    Selected items impacting comparability – Adjusted net income attributable to PAA $ 68     $ (88 )

    _____________________

    (1) Certain of our non-GAAP financial measures may not be impacted by each of the selected items impacting comparability. See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” and “Computation of Basic and Diluted Adjusted Net Income Per Common Unit” tables for additional details on how these selected items impacting comparability affect such measures.
    (2) We use derivative instruments for risk management purposes and our related processes include specific identification of hedging instruments to an underlying hedged transaction. Although we identify an underlying transaction for each derivative instrument we enter into, there may not be an accounting hedge relationship between the instrument and the underlying transaction. In the course of evaluating our results, we identify differences in the timing of earnings from the derivative instruments and the underlying transactions and exclude the related gains and losses in determining adjusted results such that the earnings from the derivative instruments and the underlying transactions impact adjusted results in the same period. In addition, we exclude gains and losses on derivatives that are related to (i) investing activities, such as the purchase of linefill, and (ii) purchases of long-term inventory. We also exclude the impact of corresponding inventory valuation adjustments, as applicable. For applicable periods, we excluded gains and losses from the mark-to-market of the embedded derivative associated with the Preferred Distribution Rate Reset Option of our Series A preferred units.
    (3) We carry crude oil and NGL inventory that is comprised of minimum working inventory requirements in third-party assets and other working inventory that is needed for our commercial operations. We consider this inventory necessary to conduct our operations and we intend to carry this inventory for the foreseeable future. Therefore, we classify this inventory as long-term on our balance sheet and do not hedge the inventory with derivative instruments (similar to linefill in our own assets). We treat the impact of changes in the average cost of the long-term inventory (that result from fluctuations in market prices) and write-downs of such inventory that result from price declines as a selected item impacting comparability.
    (4) We, and certain of our equity method investees, have certain agreements that require counterparties to deliver, transport or throughput a minimum volume over an agreed upon period. Substantially all of such agreements were entered into with counterparties to economically support the return on capital expenditure necessary to construct the related asset. Some of these agreements include make-up rights if the minimum volume is not met. We record a receivable from the counterparty in the period that services are provided or when the transaction occurs, including amounts for deficiency obligations from counterparties associated with minimum volume commitments. If a counterparty has a make-up right associated with a deficiency, we defer the revenue attributable to the counterparty’s make-up right and subsequently recognize the revenue at the earlier of when the deficiency volume is delivered or shipped, when the make-up right expires or when it is determined that the counterparty’s ability to utilize the make-up right is remote. We include the impact of amounts billed to counterparties for their deficiency obligation, net of applicable amounts subsequently recognized into revenue or equity earnings, as a selected item impacting comparability. We believe the inclusion of the contractually committed revenues associated with that period is meaningful to investors as the related asset has been constructed, is standing ready to provide the committed service and the fixed operating costs are included in the current period results.
    (5) Our total equity-indexed compensation expense includes expense associated with awards that will be settled in units and awards that will be settled in cash. The awards that will be settled in units are included in our diluted net income per unit calculation when the applicable performance criteria have been met. We consider the compensation expense associated with these awards as a selected item impacting comparability as the dilutive impact of the outstanding awards is included in our diluted net income per unit calculation, as applicable. The portion of compensation expense associated with awards that will be settled in cash is not considered a selected item impacting comparability.
    (6) During the periods presented, there were fluctuations in the value of the Canadian dollar to the U.S. dollar, resulting in the realization of foreign exchange gains and losses on the settlement of foreign currency transactions as well as the revaluation of monetary assets and liabilities denominated in a foreign currency. The associated gains and losses are not integral to our results and were thus classified as a selected item impacting comparability.
    (7) Primarily related to acquisitions completed during the first quarter of 2025.
       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    SELECTED FINANCIAL DATA BY SEGMENT
    (in millions)
             
      Three Months Ended
    March 31, 2025    		     Three Months Ended
    March 31, 2024
      Crude Oil   NGL     Crude Oil   NGL
    Revenues (1) $ 11,439     $ 638       $ 11,582     $ 507  
    Purchases and related costs (1)   (10,488 )     (339 )       (10,665 )     (346 )
    Field operating costs (2)   (292 )     (76 )       (266 )     (92 )
    Segment general and administrative expenses (2) (3)   (79 )     (21 )       (73 )     (23 )
    Equity earnings in unconsolidated entities   103       —         95       —  
                     
    Other segment items: (4)                
    Depreciation and amortization of unconsolidated entities   20       —         19       —  
    Derivative activities and inventory valuation adjustments   (24 )     (10 )       37       122  
    Long-term inventory costing adjustments   —       (3 )       (28 )     (5 )
    Deficiencies under minimum volume commitments, net   (7 )     —         (12 )     —  
    Equity-indexed compensation expense   9       —         9       —  
    Foreign currency revaluation   —       —         (17 )     (4 )
    Transaction-related expenses   5       —         —       —  
    Segment amounts attributable to noncontrolling interests (5)   (127 )     —         (128 )     —  
    Segment Adjusted EBITDA $ 559     $ 189       $ 553     $ 159  
                     
    Maintenance capital expenditures $ 31     $ 10       $ 46     $ 11  

    _____________________

    (1)   Includes intersegment amounts.
    (2)   Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense.
    (3)   Segment general and administrative expenses reflect direct costs attributable to each segment and an allocation of other expenses to the segments. The proportional allocations by segment require judgment by management and are based on the business activities that exist during each period.
    (4)  Represents adjustments utilized by our CODM in the evaluation of segment results. Many of these adjustments are also considered selected items impacting comparability when calculating consolidated non-GAAP financial measures such as Adjusted EBITDA. See the “Selected Items Impacting Comparability” table for additional discussion.
    (5)  Reflects amounts attributable to noncontrolling interests in the Permian JV, Cactus II Pipeline LLC and Red River Pipeline LLC.
       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
       
    OPERATING DATA BY SEGMENT (1)
       
      Three Months Ended
    March 31,
      2025
    		   2024
    Crude Oil Segment Volumes              
    Crude oil pipeline tariff (by region)              
    Permian Basin (2)   6,869       6,428  
    South Texas / Eagle Ford (2)   492       378  
    Mid-Continent (2)   415       486  
    Gulf Coast (2)   214       202  
    Rocky Mountain (2)   495       499  
    Western   247       259  
    Canada   354       348  
    Total crude oil pipeline tariff (2)   9,086       8,600  
                   
    NGL Segment Volumes              
    NGL fractionation   157       128  
    NGL pipeline tariff   234       214  
    Propane and butane sales   147       128  

    _____________________

    (1) Average volumes in thousands of barrels per day calculated as the total volumes (attributable to our interest for assets owned by unconsolidated entities or through undivided joint interests) for the period divided by the number of days in the period. Volumes associated with assets acquired during the period represent total volumes for the number of days we actually owned the assets divided by the number of days in the period.
    (2) Includes volumes (attributable to our interest) from assets owned by unconsolidated entities.
       
    PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    NON-GAAP SEGMENT RECONCILIATIONS
    (in millions)
       
    Supplemental Adjusted EBITDA attributable to PAA Reconciliation:
       
      Three Months Ended
    March 31,
      2025
    		   2024
    Crude Oil Segment Adjusted EBITDA $ 559     $ 553  
    NGL Segment Adjusted EBITDA   189       159  
    Adjusted other income, net (1)   6       6  
    Adjusted EBITDA attributable to PAA (2) $ 754     $ 718  

    _____________________

    (1)    Represents “Other income/(expense), net” as reported on our Condensed Consolidated Statements of Operations, excluding interest income on promissory notes by and among PAA and certain Plains entities, as well as other income, net attributable to noncontrolling interests, adjusted for selected items impacting comparability. See the “Selected Items Impacting Comparability” table for additional information.
    (2)    See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” table for reconciliation to Net Income.
       
    PLAINS GP HOLDINGS AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
    (in millions, except per share data)
             
      Three Months Ended
    March 31, 2025    		     Three Months Ended
    March 31, 2024
          Consolidating             Consolidating    
      PAA   Adjustments (1)   PAGP     PAA   Adjustments (1)   PAGP
    REVENUES $ 12,011     $ —     $ 12,011       $ 11,995     $ —     $ 11,995  
                             
    COSTS AND EXPENSES                        
    Purchases and related costs   10,761       —       10,761         10,917       —       10,917  
    Field operating costs   368       —       368         358       —       358  
    General and administrative expenses   100       1       101         96       1       97  
    Depreciation and amortization   262       —       262         254       —       254  
    Gain on asset sales, net   (13 )     —       (13 )       —       —       —  
    Total costs and expenses   11,478       1       11,479         11,625       1       11,626  
                             
    OPERATING INCOME   533       (1 )     532         370       (1 )     369  
                             
    OTHER INCOME/(EXPENSE)                        
    Equity earnings in unconsolidated entities   103       —       103         95       —       95  
    Gain on investments in unconsolidated entities, net   31       —       31         —       —       —  
    Interest expense, net   (127 )     20       (107 )       (95 )     —       (95 )
    Other income/(expense), net   26       (20 )     6         (5 )     —       (5 )
                             
    INCOME BEFORE TAX   566       (1 )     565         365       (1 )     364  
    Current income tax expense   (46 )     —       (46 )       (53 )     —       (53 )
    Deferred income tax (expense)/benefit   (4 )     (23 )     (27 )       39       (14 )     25  
                             
    NET INCOME   516       (24 )     492         351       (15 )     336  
    Net income attributable to noncontrolling interests   (73 )     (335 )     (408 )       (85 )     (209 )     (294 )
    NET INCOME ATTRIBUTABLE TO PAGP $ 443     $ (359 )   $ 84       $ 266     $ (224 )   $ 42  
                             
    Basic and diluted weighted average Class A shares outstanding     198                 197  
                             
    Basic and diluted net income per Class A share   $ 0.42               $ 0.21  

    _____________________

    (1)  Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
       

     

    PLAINS GP HOLDINGS AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)
    CONDENSED CONSOLIDATING BALANCE SHEET DATA
    (in millions)
             
      March 31, 2025     December 31, 2024
          Consolidating             Consolidating    
      PAA   Adjustments (1)   PAGP     PAA   Adjustments (1)   PAGP
    ASSETS                        
    Current assets $ 4,735     $ (6 )   $ 4,729       $ 4,802     $ (26 )   $ 4,776  
    Property and equipment, net   16,062       —       16,062         15,424       —       15,424  
    Investments in unconsolidated entities   2,745       —       2,745         2,811       —       2,811  
    Intangible assets, net   1,675       —       1,675         1,677       —       1,677  
    Deferred tax asset   —       1,199       1,199         —       1,220       1,220  
    Linefill   988       —       988         968       —       968  
    Long-term operating lease right-of-use assets, net   321       —       321         332       —       332  
    Long-term inventory   289       —       289         280       —       280  
    Other long-term assets, net   244       —       244         268       —       268  
    Total assets $ 27,059     $ 1,193     $ 28,252       $ 26,562     $ 1,194     $ 27,756  
                             
    LIABILITIES AND PARTNERS’ CAPITAL                        
    Current liabilities $ 4,691     $ (7 )   $ 4,684       $ 4,950     $ (26 )   $ 4,924  
    Senior notes, net   8,131       —       8,131         7,141       —       7,141  
    Other long-term debt, net   73       —       73         72       —       72  
    Long-term operating lease liabilities   301       —       301         313       —       313  
    Other long-term liabilities and deferred credits   1,003       —       1,003         990       —       990  
    Total liabilities   14,199       (7 )     14,192         13,466       (26 )     13,440  
                             
    Partners’ capital excluding noncontrolling interests   9,632       (8,276 )     1,356         9,813       (8,462 )     1,351  
    Noncontrolling interests   3,228       9,476       12,704         3,283       9,682       12,965  
    Total partners’ capital   12,860       1,200       14,060         13,096       1,220       14,316  
    Total liabilities and partners’ capital $ 27,059     $ 1,193     $ 28,252       $ 26,562     $ 1,194     $ 27,756  

    _____________________

    (1)  Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
       
    PLAINS GP HOLDINGS AND SUBSIDIARIES
    FINANCIAL SUMMARY (unaudited)    		  
    COMPUTATION OF BASIC AND DILUTED NET INCOME PER CLASS A SHARE
    (in millions, except per share data)
       
      Three Months Ended
    March 31,
      2025
    		   2024
    Basic and Diluted Net Income per Class A Share      
    Net income attributable to PAGP $ 84     $ 42  
    Basic and diluted weighted average Class A shares outstanding   198       197  
           
    Basic and diluted net income per Class A share $ 0.42     $ 0.21  
                   

    Forward-Looking Statements

    Except for the historical information contained herein, the matters discussed in this release consist of forward-looking statements that involve certain risks and uncertainties that could cause actual results or outcomes to differ materially from results or outcomes anticipated in the forward-looking statements. These risks and uncertainties include, among other things, the following:

    • general economic, market or business conditions in the United States and elsewhere (including the potential for a recession or significant slowdown in economic activity levels, the risk of persistently high inflation and supply chain issues, the impact of global public health events, such as pandemics, on demand and growth, and the timing, pace and extent of economic recovery) that impact (i) demand for crude oil, drilling and production activities and therefore the demand for the midstream services we provide and (ii) commercial opportunities available to us;
    • declines in global crude oil demand and/or crude oil prices or other factors that correspondingly lead to a significant reduction of North American crude oil and NGL production (whether due to reduced producer cash flow to fund drilling activities or the inability of producers to access capital, or both, the unavailability of pipeline and/or storage capacity, the shutting-in of production by producers, government-mandated pro-ration orders, or other factors), which in turn could result in significant declines in the actual or expected volume of crude oil and NGL shipped, processed, purchased, stored, fractionated and/or gathered at or through the use of our assets and/or the reduction of the margins we can earn or the commercial opportunities that might otherwise be available to us;
    • fluctuations in refinery capacity and other factors affecting demand for various grades of crude oil and NGL and resulting changes in pricing conditions or transportation throughput requirements;
    • unanticipated changes in crude oil and NGL market structure, grade differentials and volatility (or lack thereof);
    • the effects of competition and capacity overbuild in areas where we operate, including downward pressure on rates, volumes and margins, contract renewal risk and the risk of loss of business to other midstream operators who are willing or under pressure to aggressively reduce transportation rates in order to capture or preserve customers;
    • the successful operation of joint ventures and joint operating arrangements we enter into from time to time, whether relating to assets operated by us or by third parties, and the successful integration and future performance of acquired assets or businesses;
    • the availability of, and our ability to consummate, acquisitions, divestitures, joint ventures or other strategic opportunities and realize benefits therefrom;
    • environmental liabilities, litigation or other events that are not covered by an indemnity, insurance or existing reserves;
    • negative societal sentiment regarding the hydrocarbon energy industry and the continued development and consumption of hydrocarbons, which could influence consumer preferences and governmental or regulatory actions that adversely impact our business;
    • the occurrence of a natural disaster, catastrophe, terrorist attack (including eco-terrorist attacks) or other event that materially impacts our operations, including cyber or other attacks on our or our service providers’ electronic and computer systems;
    • weather interference with business operations or project construction, including the impact of extreme weather events or conditions (including hurricanes, floods, wildfires and drought);
    • the impact of current and future laws, rulings, legislation, governmental regulations, executive orders, trade policies, trade tariffs, accounting standards and statements, and related interpretations that (i) prohibit, restrict or regulate the development of oil and gas resources and the related infrastructure on lands dedicated to or served by our pipelines or (ii) negatively impact our ability to develop, operate or repair midstream assets, or (iii) otherwise negatively impact our business or increase our exposure to risk;
    • negative impacts on production levels in the Permian Basin or elsewhere due to issues associated with (or laws, rules or regulations relating to) hydraulic fracturing and related activities (including wastewater injection or disposal), including earthquakes, subsidence, expansion or other issues;
    • the pace of development of natural gas or other infrastructure and its impact on expected crude oil production growth in the Permian Basin;
    • the refusal or inability of our customers or counterparties to perform their obligations under their contracts with us (including commercial contracts, asset sale agreements and other agreements), whether justified or not and whether due to financial constraints (such as reduced creditworthiness, liquidity issues or insolvency), market constraints, legal constraints (including governmental orders or guidance), the exercise of contractual or common law rights that allegedly excuse their performance (such as force majeure or similar claims) or other factors;
    • loss of key personnel and inability to attract and retain new talent;
    • disruptions to futures markets for crude oil, NGL and other petroleum products, which may impair our ability to execute our commercial or hedging strategies;
    • the effectiveness of our risk management activities;
    • shortages or cost increases of supplies, materials or labor;
    • maintenance of our credit ratings and ability to receive open credit from our suppliers and trade counterparties;
    • our inability to perform our obligations under our contracts, whether due to non-performance by third parties, including our customers or counterparties, market constraints, third-party constraints, supply chain issues, legal constraints (including governmental orders or guidance), or other factors or events;
    • the incurrence of costs and expenses related to unexpected or unplanned capital or maintenance expenditures, third-party claims or other factors;
    • failure to implement or capitalize, or delays in implementing or capitalizing, on investment capital projects, whether due to permitting delays, permitting withdrawals or other factors;
    • tightened capital markets or other factors that increase our cost of capital or limit our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, investment capital projects, working capital requirements and the repayment or refinancing of indebtedness;
    • the amplification of other risks caused by volatile or closed financial markets, capital constraints, liquidity concerns and inflation;
    • the use or availability of third-party assets upon which our operations depend and over which we have little or no control;
    • the currency exchange rate of the Canadian dollar to the United States dollar;
    • the deferral of current revenue recognition attributable to deficiency payments received from customers who fail to ship or move their minimum contracted volumes;
    • significant under-utilization of our assets and facilities;
    • increased costs, or lack of availability, of insurance;
    • fluctuations in the debt and equity markets, including the price of our units at the time of vesting under our long-term incentive plans;
    • risks related to the development and operation of our assets; and
    • other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of crude oil, as well as in the processing, transportation, fractionation, storage and marketing of NGL as discussed in the Partnerships’ filings with the Securities and Exchange Commission.

    About Plains:

    PAA is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids (“NGL”). PAA owns an extensive network of pipeline gathering and transportation systems, in addition to terminalling, storage, processing, fractionation and other infrastructure assets serving key producing basins, transportation corridors and major market hubs and export outlets in the United States and Canada. On average, PAA handles over 8 million barrels per day of crude oil and NGL.

    PAGP is a publicly traded entity that owns an indirect, non-economic controlling general partner interest in PAA and an indirect limited partner interest in PAA, one of the largest energy infrastructure and logistics companies in North America.

    PAA and PAGP are headquartered in Houston, Texas. For more information, please visit www.plains.com.

    Contacts:

    Blake Fernandez
    Vice President, Investor Relations
    (866) 809-1291

    Michael Gladstein
    Director, Investor Relations
    (866) 809-1291

    The MIL Network –

  • MIL-OSI: TeraWulf Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Commenced buildout of dedicated HPC data halls and remain on track to deliver 72.5 MW of gross HPC hosting infrastructure to Core42 in 2025.

    Initiated process to secure additional HPC customers; targeting 200–250 MW operational by year-end 2026.

    Energized Miner Building 5, bringing total capacity to 245 MW and increasing hashrate to 12.2 EH/s, up 52.5% year-over-year.

    Self-mining capacity increased 52.5% year-over-year to 12.2 EH/s.

    Held $219.6 million in cash and bitcoin holdings as of March 31, 2025.

    Repurchased $33 million of Common Stock to date in 2025.

    EASTON, Md., May 09, 2025 (GLOBE NEWSWIRE) — TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which owns and operates vertically integrated, next-generation digital infrastructure primarily powered by zero-carbon energy, today announced its financial results for the first quarter ended March 31, 2025.

    First Quarter 2025 GAAP Operational & Financial Highlights

    • Revenue was $34.4 million, compared to $42.4 million in Q1 2024.
    • Cost of revenue (excluding depreciation) was $24.6 million, compared to $14.4 million in Q1 2024.
    • Self-mining capacity grew 52.5% year-over-year to  12.2 EH/s.
    Key GAAP Metrics ($ in thousands) Three Months Ended Q1 2025 Three Months Ended Q1 2024
     Revenue $ 34,405   $ 42,433  
     Cost of revenue (exclusive of depreciation) $ 24,553   $ 14,408  
     Cost of revenue as % of revenue   71.4 %   34.0 %
                 

    First Quarter 2025 Non-GAAP Operational and Financial Highlights

    • Self-mined 372 bitcoin at the Lake Mariner Facility. As anticipated, the year-over-year change was primarily driven by the April 2024 halving and the strategic divestiture of the Nautilus Cryptomine facility in October 2024.
    • Total value of self-mined bitcoin1 was $34.4 million, compared to $56.5 million in Q1 2024.
    • Power cost per bitcoin was $66,084, compared to $15,501 in Q1 2024, reflecting the halving, rising network difficulty, and short-term power price volatility from the Polar Vortex.
    • Adjusted EBITDA was $(4.7) million, compared to $32.0 million in Q1 2024.
    Key Non-GAAP Metrics2 Three Months Ended Q1 2025 Three Months Ended Q1 2024
     Bitcoin Self-Mined3   372     1,051  
     Value per Bitcoin Self-Mined4 $ 92,600   $ 53,750  
     Power Cost per Bitcoin Self-Mined $ 66,084   $ 15,501  
     Avg. Operating Hash Rate (EH/s)5   7.3     8.0  
                 

    Management Commentary

    “TeraWulf continues to advance its strategy of developing scalable, sustainable infrastructure for both Bitcoin mining and high-performance computing. As outlined during our fourth quarter 2024 earnings call, our key priorities for 2025 include energizing Miner Building 5 and deploying our upgraded mining fleet, delivering Core42’s contracted 72.5 MW of HPC capacity on schedule, securing financing for our initial HPC data center buildout, and signing additional customers to reach between 200 and 250 megawatts of contracted HPC capacity by the end of 2026,” said Paul Prager, Chief Executive Officer of TeraWulf.

    “We’ve made meaningful progress on each of these fronts. In late Q1 and early Q2, we energized Miner Building 5, bringing total capacity at Lake Mariner to 245 MW. We remain on track to deliver the Core42 deployment this year and have initiated the financing process to support our next phase of HPC growth.”

    Prager added, “We continue to see robust medium- and long-term demand for high-density, energy-efficient digital infrastructure. In this environment, TeraWulf’s vertically integrated energy platform provides a distinct competitive advantage. We are focused on building a high-value, durable business that is designed to scale with demand and deliver long-term returns.”

    Patrick Fleury, Chief Financial Officer, commented, “With $219.6 million in cash and bitcoin holdings at quarter-end, we are well-capitalized to fund our near-term growth. HPC hosting revenue is expected to begin in the second quarter of 2025 as our data halls come online. We also returned $33 million to shareholders during the quarter through share repurchases, reflecting our continued commitment to disciplined capital allocation.”

    First Quarter 2025 GAAP Financial Results

    Revenue for the first quarter decreased 19% year-over-year to $34.4 million, reflecting anticipated headwinds from the April 2024 halving, increased network difficulty, and elevated power prices, partially offset by a higher average bitcoin price and expanded mining capacity.

    Cost of revenue, exclusive of depreciation, increased 70%  year-over-year to $24.6 million, driven by greater infrastructure utilization and temporary increases in power costs due to extreme winter weather in Upstate New York.

    Liquidity and Capital Resources

    As of March 31, 2025, the Company held $219.6 million in cash and cash equivalents and bitcoin. Total outstanding debt was approximately $500.0 million, consisting of the Company’s 2.75% convertible senior notes due 2030. As of May 7, 2025, TeraWulf had 384,584,010 shares of common stock outstanding.

    As part of the Company’s regular review of its capital management activities, our Board of Directors recently approved:

    • A new $200 million At-the-Market (ATM) common equity offering program, to replace the existing ATM facility.
    • A refreshed authorization for a $200 million common stock repurchase program, providing continued flexibility to return capital to shareholders when appropriate.

    These programs are intended to preserve flexibility in managing the Company’s capital structure and liquidity position.

    Investor Conference Call and Webcast

    As previously announced, TeraWulf will host its Q1 2025 earnings conference call today, Friday, May 9, 2025, commencing at 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time). The call will include prepared remarks followed by a live Q&A with management.

    The conference call will be broadcast live and will be available for replay via “Events & Presentations” under the “Investors” section of the Company’s website at https://investors.terawulf.com/events-and-presentations/.

    About TeraWulf

    TeraWulf develops, owns, and operates environmentally sustainable, next-generation data center infrastructure in the United States, specifically designed for bitcoin mining and hosting HPC workloads. Led by a team of seasoned energy entrepreneurs, the Company owns and operates the Lake Mariner facility situated on the expansive site of a now retired coal plant in Western New York. Currently, TeraWulf generates revenue primarily through bitcoin mining, leveraging predominantly zero-carbon energy sources, including hydroelectric and nuclear power. Committed to environmental, social, and governance (ESG) principles that align with its business objectives, TeraWulf aims to deliver industry-leading economics in mining and data center operations at an industrial scale.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “seek,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “strategy,” “opportunity,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) the ability to mine bitcoin profitably; (2) our ability to attract additional customers to lease our HPC data centers; (3) our ability to perform under our existing data center lease agreements (4) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates; (5) the ability to implement certain business objectives, including its bitcoin mining and HPC data center development, and to timely and cost-effectively execute related projects; (6) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to expansion or existing operations; (7) adverse geopolitical or economic conditions, including a high inflationary environment, the implementation of new tariffs and more restrictive trade regulations; (8) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (9) the availability and cost of power as well as electrical infrastructure equipment necessary to maintain and grow the business and operations of TeraWulf; and (10) other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.

    Non-GAAP Measures

    We have not provided reconciliations of preliminary and projected Adjusted EBITDA to the most comparable GAAP measure of net income/(loss). Providing net income/(loss) is potentially misleading and not practical given the difficulty of projecting event-driven transactional and other non-core operating items that are included in net income/(loss), including but not limited to asset impairments and income tax valuation adjustments. Reconciliations of this non-GAAP measure with the most comparable GAAP measure for historical periods is indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance. Please reference the “Non-GAAP financial information” accompanying our quarterly earnings conference call presentations on our website at www.terawulf.com/investors for our GAAP results and the reconciliations of these measures, where used, to the comparable GAAP measures.

    Investors: 
    Investors@terawulf.com

    Media: 
    media@terawulf.com

    CONSOLIDATED BALANCE SHEETS
    AS OF MARCH 31, 2025 AND DECEMBER 31, 2024
    (In thousands, except number of shares, per share amounts and par value)

      March 31,
    2025    		   December 31,
    2024
    ASSETS      
    CURRENT ASSETS:      
    Cash and cash equivalents $ 218,162     $ 274,065  
    Digital currency   1,400       476  
    Prepaid expenses   4,799       2,493  
    Other receivables   5,101       3,799  
    Other current assets   585       598  
    Total current assets   230,047       281,431  
    Property, plant and equipment, net   509,888       411,869  
    Operating lease right-of-use asset   85,299       85,898  
    Finance lease right-of-use asset   7,200       7,285  
    Other assets   8,728       1,028  
    TOTAL ASSETS   841,162       787,511  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    CURRENT LIABILITIES:      
    Accounts payable   54,901       24,382  
    Accrued construction liabilities   19,526       16,520  
    Accrued compensation   1,512       4,552  
    Accrued interest   5,997       2,559  
    Other accrued liabilities   6,432       2,414  
    Other amounts due to related parties   571       1,391  
    Current portion of deferred rent liability   31,960       —  
    Current portion of operating lease liability   26       25  
    Current portion of finance lease liability   2       2  
    Total current liabilities   120,927       51,845  
    Deferred rent liability, net of current portion   58,040       —  
    Operating lease liability, net of current portion   3,420       3,427  
    Finance lease liability, net of current portion   291       292  
    Convertible notes   488,109       487,502  
    TOTAL LIABILITIES   670,787       543,066  
           
    Commitments and Contingencies (See Note 10)      
           
    STOCKHOLDERS’ EQUITY:      
    Preferred stock, $0.001 par value, 100,000,000 authorized at March 31, 2025 and December 31, 2024; 9,566 issued and outstanding at March 31, 2025 and December 31, 2024; aggregate liquidation preference of $12,924 and $12,609 at March 31, 2025 and December 31, 2024, respectively   9,273       9,273  
    Common stock, $0.001 par value, 600,000,000 authorized at March 31, 2025 and December 31, 2024, respectively; 408,198,263 and 404,223,028 issued and outstanding at March 31, 2025 and December 31, 2024, respectively   408       404  
    Additional paid-in capital   705,897       685,261  
    Treasury stock at cost, 24,468,750 and 18,568,750 at March 31, 2025 and December 31, 2024, respectively   (151,509 )     (118,217 )
    Accumulated deficit   (393,694 )     (332,276 )
    Total stockholders’ equity   170,375       244,445  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 841,162     $ 787,511  
                   
                   

    CONSOLIDATED STATEMENTS OF OPERATIONS
    FOR THE THREE MONTHS ENDED MARCH 31, 2025, AND 2024
    (In thousands, except number of shares and loss per common share)

      Three Months Ended March 31,
      2025   2024
    Revenue $ 34,405     $ 42,433  
           
    Costs and expenses:      
    Cost of revenue (exclusive of depreciation shown below)   24,553       14,408  
    Operating expenses   1,144       785  
    Operating expenses – related party   1,748       888  
    Selling, general and administrative expenses   46,573       12,289  
    Selling, general and administrative expenses – related party   3,571       2,620  
    Depreciation   15,574       15,088  
    Loss (gain) on fair value of digital currency, net   870       (1,329 )
    Total costs and expenses   94,033       44,749  
           
    Operating loss   (59,628 )     (2,316 )
    Interest expense   (4,049 )     (11,045 )
    Loss on extinguishment of debt   —       (2,027 )
    Interest income   2,259       500  
    Loss before income tax and equity in net income of investee   (61,418 )     (14,888 )
    Income tax benefit   —       —  
    Equity in net income of investee, net of tax   —       5,275  
    Net loss $ (61,418 )   $ (9,613 )
           
    Loss per common share:      
    Basic and diluted $ (0.16 )   $ (0.03 )
           
    Weighted average common shares outstanding:      
    Basic and diluted   383,149,511       290,602,725  
                   
                   

    CONSOLIDATED STATEMENTS OF CASH FLOWS
    FOR THE THREE MONTHS ENDED MARCH 31, 2025, AND 2024
    (In thousands)

      Three Months Ended March 31,
      2025   2024
    CASH FLOWS FROM OPERATING ACTIVITIES:      
    Net loss $ (61,418 )   $ (9,613 )
    Adjustments to reconcile net loss to net cash provided by operating activities:      
    Amortization of debt issuance costs, commitment fees and accretion of debt discount   607       7,593  
    Stock-based compensation expense   38,674       6,931  
    Depreciation   15,574       15,088  
    Amortization of right-of-use asset   685       252  
    Revenue recognized from digital currency mined and hosting services   (34,417 )     (41,537 )
    Loss (gain) on fair value of digital currency, net   870       (1,329 )
    Proceeds from sale of digital currency   —       54,391  
    Loss on extinguishment of debt   —       2,027  
    Equity in net income of investee, net of tax   —       (5,275 )
    Changes in operating assets and liabilities:      
    (Increase) decrease in prepaid expenses   (2,306 )     567  
    Increase in other receivables   (1,302 )     (667 )
    Decrease (increase) in other current assets   13       (67 )
    (Increase) decrease in other assets   (7,700 )     22  
    Increase (decrease) in accounts payable   13,844       (1,686 )
    Increase (decrease) in other accrued liabilities   4,359       (3,906 )
    (Decrease) increase in other amounts due to related parties   (990 )     67  
    Increase in deferred rent liability   90,000       —  
    Decrease in operating lease liability   (6 )     (12 )
    Net cash provided by operating activities   56,487       22,846  
           
    CASH FLOWS FROM INVESTING ACTIVITIES:      
    Purchase of and deposits on plant and equipment   (93,687 )     (46,979 )
    Proceeds from sale of digital currency   32,623       —  
    Net cash used in investing activities   (61,064 )     (46,979 )
           
    CASH FLOWS FROM FINANCING ACTIVITIES:      
    Principal payments on long-term debt   —       (33,412 )
    Payments of prepayment fees associated with early extinguishment of long-term debt   —       (314 )
    Principal payments on insurance premium and property, plant and equipment financing   —       (827 )
    Proceeds from issuance of common stock, net of issuance costs paid of $0 and $0   —       50,722  
    Purchase of treasury stock   (33,292 )     —  
    Payments of tax withholding related to net share settlements of stock-based compensation awards   (18,034 )     (651 )
    Net cash (used in) provided by financing activities   (51,326 )     15,518  
           
    Net change in cash and cash equivalents   (55,903 )     (8,615 )
    Cash and cash equivalents at beginning of period   274,065       54,439  
    Cash and cash equivalents at end of period $ 218,162     $ 45,824  
           
    Cash paid during the period for:      
    Interest $ 5     $ 3,726  
    Income taxes $ —     $ —  
                   

    Non-GAAP Measure

    The Company presents Adjusted EBITDA, which is not a measurement of financial performance under generally accepted accounting principles in the United States (“U.S. GAAP”). The Company defines non-GAAP “Adjusted EBITDA” as net loss adjusted for: (i) impacts of interest, taxes, depreciation and amortization; (ii) stock-based compensation expense and amortization of right-of-use asset, which are non-cash items that the Company believes are not reflective of its general business performance, and for which the accounting requires management judgment, and the resulting expenses could vary significantly in comparison to other companies; (iii) equity in net income of investee, net of tax, related to Nautilus; (iv) interest income which management believes is not reflective of the Company’s ongoing operating activities; and (v) loss on extinguishment of debt, which is not reflective of the Company’s general business performance. The Company’s Adjusted EBITDA also included the impact of distributions from investee received in bitcoin related to a return on the Nautilus investment, which management believes, in conjunction with excluding the impact of equity in net income of investee, net of tax, is reflective of assets available for the Company’s use in its ongoing operations as a result of its investment in Nautilus.

    Management believes that providing this non-GAAP financial measure allows for meaningful comparisons between the Company’s core business operating results and those of other companies, and provides the Company with an important tool for financial and operational decision making and for evaluating its own core business operating results over different periods of time. In addition to management’s internal use of non-GAAP Adjusted EBITDA, management believes that adjusted EBITDA is also useful to investors and analysts in comparing the Company’s performance across reporting periods on a consistent basis. Management believes the foregoing to be the case even though some of the excluded items involve cash outlays and some of them recur on a regular basis (although management does not believe any of such items are normal operating expenses necessary to generate the Company’s bitcoin related revenues). For example, the Company expects that share-based compensation expense, which is excluded from Adjusted EBITDA, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers, directors and consultants. Additionally, management does not consider any of the excluded items to be expenses necessary to generate the Company’s bitcoin related revenue.

    The Company’s Adjusted EBITDA measure may not be directly comparable to similar measures provided by other companies in the Company’s industry, as other companies in the Company’s industry may calculate non-GAAP financial results differently. The Company’s Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP and should not be considered as an alternative to net loss or any other measure of performance derived in accordance with U.S. GAAP. Although management utilizes internally and presents Adjusted EBITDA, the Company only utilizes that measure supplementally and does not consider it to be a substitute for, or superior to, the information provided by U.S. GAAP financial results. Accordingly, Adjusted EBITDA is not meant to be considered in isolation of, and should be read in conjunction with, the information contained in the Company’s consolidated financial statements, which have been prepared in accordance with U.S. GAAP.

    The following table is a reconciliation of the Company’s non-GAAP Adjusted EBITDA to its most directly comparable U.S. GAAP measure (i.e., net loss) for the periods indicated (in thousands):

      Three Months Ended March 31,
      2025   2024
    Net loss $ (61,418 )   $ (9,613 )
    Adjustments to reconcile net loss to non-GAAP Adjusted EBITDA:      
    Equity in net (income) loss of investee, net of tax   —       (5,275 )
    Distributions from investee, related to Nautilus   —       12,022  
    Income tax benefit   —       —  
    Interest income   (2,259 )     (500 )
    Loss on extinguishment of debt   —       2,027  
    Interest expense   4,049       11,045  
    Depreciation   15,574       15,088  
    Amortization of right-of-use asset   685       252  
    Stock-based compensation expense   38,674       6,931  
    Non-GAAP Adjusted EBITDA $ (4,695 )   $ 31,977  

    1 Excludes bitcoin earned from profit sharing associated with a hosting agreement that expired in February 2024 at the Lake Mariner Facility and includes TeraWulf’s net share of bitcoin produced at the Nautilus Cryptomine Facility in Q1 2024.

    2 The Company’s share of the earnings or losses of operating results at the Nautilus Cryptomine Facility in Q1 2024 is reflected within “Equity in net income (loss) of investee, net of tax” in the condensed consolidated statements of operations. Accordingly, operating results of the Nautilus Cryptomine Facility are not reflected in revenue, cost of revenue or cost of operations lines in TeraWulf’s condensed consolidated statements of operations. The Company uses these metrics as indicators of operational progress and effectiveness and believes they are useful to investors for the same purposes and to provide comparisons to peer companies. All figures except Bitcoin Self-Mined are estimates.

    3 Excludes bitcoin earned from profit sharing associated with a bitcoin miner hosting agreement that expired in February 2024 at the Lake Mariner Facility and includes TeraWulf’s net share of bitcoin mined at the Nautilus Cryptomine Facility, based on the hashrate share attributed to the Company.

    4 Computed as the weighted-average opening price of bitcoin on each respective day the self-mined bitcoin is earned.

    5 While nameplate inventory for the Lake Mariner Facility was 12.2 EH/s and 8.0 EH/s as of Q1 2025 and Q1 2024, respectively, actual monthly hash rate performance depends on a variety of factors, including (but not limited to) performance tuning to increase efficiency and maximize margin, scheduled outages (scopes to improve reliability or performance), unscheduled outages, curtailment due to participation in various cash generating demand response programs, derate of ASICS due to adverse weather and ASIC maintenance and repair. Note the 8.0 EH/s in the table in Q1 2024 is nameplate capacity and average operating hashrate was 6.8 EH/s.

    The MIL Network –

  • MIL-OSI: Castellum, Inc. Reports First Year-Over-Year Organic Revenue Growth with Q1 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    VIENNA, Va., May 09, 2025 (GLOBE NEWSWIRE) — Castellum, Inc. (“Castellum” or the “Company”) (NYSE-American: CTM), a cybersecurity, electronic warfare, and software services company focused on the federal government, announces certain highlights of its operating results for its first quarter ended March 31, 2025.

    Revenue for the first quarter of 2025 was $11.7 million, an increase from $10.3 million in the fourth quarter of 2024 and up from $11.3 million in the first quarter of 2024. This marks the Company’s first year-over-year organic revenue growth as a listed company, signaling a significant turning point in its operational trajectory.

    The Company reported a smaller operating loss of $(1.1) million, including non-cash and non-recurring charges, compared to $(1.6) million in Q4 2024 and $(4.0) million in Q1 2024 – reflecting both improved cost discipline and enhanced operating leverage.

    In addition to the top-line growth, Castellum ended the quarter with a record cash balance of $13.3 million as of March 31, 2025, up from $12.3 million at December 31, 2024, reinforcing its commitment to financial strength and operational efficiency.

    “I’m very encouraged by the momentum in Q1,” said Glen Ives, President and Chief Executive Officer. “Posting our first year-over-year organic revenue growth is a milestone for Castellum. It reflects stronger execution, increased customer confidence, and a more focused approach to delivering results.”

    During the quarter, the Company began executing on the previously announced contract supporting the U.S. Navy’s PMA-290 program, a strategic win aligned with Castellum’s long-term growth objectives.

    “This five-year, $103 million contract win was a key achievement for our team and is already contributing to our 2025 performance,” said Ives. “It fortifies our rock-solid business base and underscores the strength and unmatched talents and professionalism of our people, our in-demand world-class capabilities, the trust our customers place in us, and the strong and steady progress we’re making in building a more resilient, opportunity-rich business for the long term.”

    Castellum’s full financial results for the three months ending March 31, 2025, are expected to be filed later today on Form 10-Q, which will be available at www.sec.gov.

    About Castellum, Inc. (NYSE-American: CTM):

    Castellum, Inc. (NYSE-American: CTM) is a cybersecurity, electronic warfare, and software engineering services company focused on the federal government – http://castellumus.com/

    Forward-Looking Statements:

    This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 2lE of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s expectations or beliefs concerning future events and can generally be identified by the use of statements that include words such as “estimate,” “project,” “believe,” “anticipate,” “shooting to,” “intend,” “in a position,” “looking to,” “pursue,” “positioned,” “will,” “likely,” “would,” or similar words or phrases. Forward-looking statements include, but are not limited to, statements regarding the Company’s expectations for revenue growth, new customer opportunities, improvements to cost structure, and profitability. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company’s control, that could cause actual results to differ (sometimes materially) from the results expressed or implied in the forward-looking statements, including, among others: the Company’s ability to compete against new and existing competitors; its ability to effectively integrate and grow its acquired companies; its ability to identify additional acquisition targets and close additional acquisitions; the impact on the Company’s revenue due to a delay in the U.S. Congress approving a federal budget; and the Company’s ability to maintain the listing of its common stock on the NYSE American LLC. For a more detailed description of these and other risk factors, please refer to the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (“SEC”) which can be viewed at www.sec.gov. All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or the future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. The Company expressly disclaims any intent or obligation to update any of the forward-looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company.

    Contact:

    Glen Ives
    President and Chief Executive Officer
    Phone: (703) 752-6157
    info@castellumus.com
    http://castellumus.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/565801af-f40f-4c42-8d0b-d2b74f7e74f6

    The MIL Network –

  • MIL-OSI: Outbrain Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, May 09, 2025 (GLOBE NEWSWIRE) — Outbrain Inc. (Nasdaq: OB), which is operating under the new Teads brand following Outbrain’s acquisition of Teads in February 2025, announced today financial results for the quarter ended March 31, 2025.

    First Quarter 2025 Key Financial Metrics1:

      Three Months Ended
    March 31,
    (in millions USD)   2025       2024     % Change
    Revenue $ 286.4     $ 217.0     32  %
    Gross profit   82.7       41.6     99  %
    Net loss   (54.8 )     (5.0 )   NM
    Net cash (used in) provided by operating activities   (1.0 )     8.6     (111 )%
               
    Non-GAAP Financial Data*          
    Ex-TAC gross profit   103.1       52.2     98  %
    Adjusted EBITDA   10.7       1.4     665  %
    Adjusted net loss   (15.3 )     (4.9 )   (211 )%
    Free cash flow   (6.6 )     4.6     (242 )%

    _____________________________

    1 Incorporates the results of operations for legacy Teads from February 3, 2025 through March 31, 2025
    * See non-GAAP reconciliations below
    NM Not meaningful

    “We are off to a strong start following the completion of the combination with Teads. In the first quarter, we delivered financial results above the mid-range of our guidance, while closing the acquisition, issuing five-year senior secured notes, and reaching many major milestones of integration and synergy realization. We are in the early days, but the feedback to our brandformance platform strategy from the hundreds of advertisers and media owners we have met has been highly encouraging,” said David Kostman, CEO of Teads.

    First Quarter 2025 Business Highlights:

    • Completed the acquisition of Teads, for total consideration of approximately $900 million, comprised of $625 million in cash and 43.75 million shares of Outbrain common stock. The combined company is operating under the name Teads.
    • Expect to realize approximately $65 million to $75 million of synergies in 2026 with further opportunities for expanded synergies. Of this amount, approximately $60 million relates to cost synergies, including approximately $45 million of compensation-related expenses, with approximately 90% of the estimated compensation-related synergies already actioned. For 2025, expect to realize a benefit from cost synergies of approximately $40 million, which represents an increase from initial expectations.
    • Initial cross-selling of legacy Outbrain performance solutions to legacy Teads enterprise brand customers launched in Q2 with several campaigns sold.
    • New strategic Joint Business Partnerships (JBPs) with Ferrero, Haleon, Philip Morris International, and Beiersdorf.
    • ~500 advertisers spending at least a half a million dollars on a rolling 12 month basis, with an average spend of over $2 million annually, which represents approximately 70% of total customer spend.
    • CTV experienced more than 100% year-over-year growth in Q1 2025, and now represents approximately 5% of total ad spend.
    • Continued strong adoption of Moments vertical video offering launched in Q3 2024 and is now live on over 70 publishers, including Axel Springer, Fox News, and Webedia.
    • Premium supply competitive wins include Godo (Spain) WWS (Japan), and renewals include Conde Nast and TMZ (US), Ansa (Italy), Webedia (France) and Sankei (Japan).

    First Quarter 2025 Financial Highlights:

    • Revenue of $286.4 million, an increase of $69.4 million, or 32%, compared to $217.0 million in the prior year period primarily due to the acquisition, including net unfavorable foreign currency effects of approximately $2.6 million.
    • Gross profit of $82.7 million, an increase of $41.1 million, or 99%, compared to $41.6 million in the prior year period. Gross margin increased to 28.9%, compared to 19.2% in the prior year period, reflecting the higher gross margin profile of the acquired business.
    • Ex-TAC gross profit of $103.1 million, an increase of $50.9 million, or 98%, compared to $52.2 million in the prior year period, primarily due to the acquisition. Our Ex-TAC gross margin increased to 36.0%, compared to 24.0% in the prior year period, reflecting the higher margin profile of the acquired business.
    • Net loss of $54.8 million, compared to net loss of $5.0 million in the prior year period. Net loss in the current period includes pre-tax acquisition-related costs of $16.4 million, impairment charges of $15.6 million primarily related to the discontinuance of the vi product offering, restructuring charges of $7.3 million related to our previously announced restructuring plan to streamline operations and reduce duplicative roles post-acquisition, and bridge facility related costs of $12.0 million.
    • Adjusted net loss of $15.3 million, compared to adjusted net loss of $4.9 million in the prior year period.
    • Adjusted EBITDA of $10.7 million, compared to Adjusted EBITDA of $1.4 million in the prior year period.
    • Net cash used in operating activities of $1.0 million, compared to net cash provided by operating activities of $8.6 million in the prior year period. Free cash flow was $(6.6) million, as compared to $4.6 million in the prior year period, primarily related to cash outflows related to transaction costs and restructuring charges of $16.2 million.
    • Cash, cash equivalents and investments in marketable securities were $155.9 million, comprised of cash and cash equivalents of $136.3 million and short-term investments in marketable securities of $19.6 million as of March 31, 2025.
    • Total debt obligations were $627.0 million, including the $610.8 million carrying value of the 10% senior secured notes due 2030 issued in February 2025 (principal amount of $637.5 million, net of unamortized discount and deferred financing costs) and $16.2 million outstanding under a short-term overdraft facility assumed in the acquisition.
    • Entered into a credit agreement with Goldman Sachs Bank, U.S. Bank Trust Company, and certain other lenders, which provided, among other things, for a new $100.0 million super senior secured revolving credit facility, which expires on February 3, 2030, which may be used for working capital and other general corporate purposes. The prior revolving credit facility with Silicon Valley Bank, a division of First Citizens Bank & Trust Company, dated as of November 2, 2021 was terminated.

    Second Quarter Guidance

    The following forward-looking statements reflect our expectations for the second quarter and full year of 2025.

    For the second quarter ending June 30, 2025, we expect:

    • Ex-TAC gross profit of $141 million to $150 million
    • Adjusted EBITDA of $26 million to $34 million

    For the full year ending December 31, 2025, we continue to expect:

    • Adjusted EBITDA of at least $180 million

    The above measures are forward-looking non-GAAP financial measures for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See “Non-GAAP Financial Measures” below. In addition, our guidance is subject to risks and uncertainties, as outlined below in this release.

    Conference Call and Webcast Information

    Outbrain will host an investor conference call this morning, Friday, May 9 at 8:30 am ET. Interested parties are invited to listen to the conference call which can be accessed live by phone by dialing 1-877-497-9071 or for international callers, 1-201-689-8727. A replay will be available two hours after the call and can be accessed by dialing 1-877-660-6853, or for international callers, 1-201-612-7415. The passcode for the live call and the replay is 13753068. The replay will be available until May 23, 2025. Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investors Relations section of the Company’s website at https://investors.outbrain.com. The online replay will be available for a limited time shortly following the call.

    Non-GAAP Financial Measures

    In addition to GAAP performance measures, we use the following supplemental non-GAAP financial measures to evaluate our business, measure our performance, identify trends, and allocate our resources: Ex-TAC gross profit, Ex-TAC gross margin, Adjusted EBITDA, free cash flow, adjusted net income (loss), and adjusted diluted EPS. These non-GAAP financial measures are defined and reconciled to the corresponding GAAP measures below. These non-GAAP financial measures are subject to significant limitations, including those we identify below. In addition, other companies in our industry may define these measures differently, which may reduce their usefulness as comparative measures. As a result, this information should be considered as supplemental in nature and is not meant as a substitute for revenue, gross profit, net income (loss), diluted EPS, or cash flows from operating activities presented in accordance with GAAP.

    Because we are a global company, the comparability of our operating results is affected by foreign exchange fluctuations. We calculate certain constant currency measures and foreign currency impacts by translating the current year’s reported amounts into comparable amounts using the prior year’s exchange rates. All constant currency financial information that may be presented is non-GAAP and should be used as a supplement to our reported operating results. We believe that this information is helpful to our management and investors to assess our operating performance on a comparable basis. However, these measures are not intended to replace amounts presented in accordance with GAAP and may be different from similar measures calculated by other companies.

    The Company is also providing second quarter and full year guidance. These forward-looking non-GAAP financial measures are calculated based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. The Company has not provided quantitative reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures because it is unable, without unreasonable effort, to predict with reasonable certainty the occurrence or amount of all excluded items that may arise during the forward-looking period, which can be dependent on future events that may not be reliably predicted. Such excluded items could be material to the reported results individually or in the aggregate.

    Ex-TAC Gross Profit

    Ex-TAC gross profit is a non-GAAP financial measure. Gross profit is the most comparable GAAP measure. In calculating Ex-TAC gross profit, we add back other cost of revenue to gross profit. Ex-TAC gross profit may fluctuate in the future due to various factors, including, but not limited to, seasonality and changes in the number of media partners and advertisers, advertiser demand or user engagements.

    We present Ex-TAC gross profit, Ex-TAC gross margin (calculated as Ex-TAC gross profit as a percentage of revenue), and Adjusted EBITDA as a percentage of Ex-TAC gross profit, because they are key profitability measures used by our management and board of directors to understand and evaluate our operating performance and trends, develop short-term and long-term operational plans, and make strategic decisions regarding the allocation of capital. Accordingly, we believe that these measures provide information to investors and the market in understanding and evaluating our operating results in the same manner as our management and board of directors. There are limitations on the use of Ex-TAC gross profit in that traffic acquisition cost is a significant component of our total cost of revenue but not the only component and, by definition, Ex-TAC gross profit presented for any period will be higher than gross profit for that period. A potential limitation of this non-GAAP financial measure is that other companies, including companies in our industry, which have a similar business, may define Ex-TAC gross profit differently, which may make comparisons difficult. As a result, this information should be considered as supplemental in nature and is not meant as a substitute for revenue or gross profit presented in accordance with GAAP.

    Adjusted EBITDA

    We define Adjusted EBITDA as net income (loss) before gain on convertible debt; interest expense; interest income and other income (expense), net; provision for income taxes; depreciation and amortization; stock-based compensation; and other income or expenses that we do not consider indicative of our core operating performance, including but not limited to, acquisition-related costs, restructuring, and impairment charges. We present Adjusted EBITDA as a supplemental performance measure because it is a key profitability measure used by our management and board of directors to understand and evaluate our operating performance and trends, develop short-term and long-term operational plans and make strategic decisions regarding the allocation of capital, and we believe it facilitates operating performance comparisons from period to period.

    We believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. However, our calculation of Adjusted EBITDA is not necessarily comparable to non-GAAP information of other companies. Adjusted EBITDA should be considered as a supplemental measure and should not be considered in isolation or as a substitute for any measures of our financial performance that are calculated and reported in accordance with GAAP.

    Adjusted Net Income (Loss) and Adjusted Diluted EPS

    Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss) excluding items that we do not consider indicative of our core operating performance, including but not limited to gain on convertible debt, merger and acquisition costs, regulatory matter costs, and severance costs related to our cost saving initiatives. Adjusted net income (loss), as defined above, is also presented on a per diluted share basis. We present adjusted net income (loss) and adjusted diluted EPS as supplemental performance measures because we believe they facilitate performance comparisons from period to period. However, adjusted net income (loss) or adjusted diluted EPS should not be considered in isolation or as a substitute for net income (loss) or diluted earnings per share reported in accordance with GAAP.

    Free Cash Flow

    Free cash flow is defined as cash flow provided by (used in) operating activities, less capital expenditures and capitalized software development costs. Free cash flow is a supplementary measure used by our management and board of directors to evaluate our ability to generate cash and we believe it allows for a more complete analysis of our available cash flows. Free cash flow should be considered as a supplemental measure and should not be considered in isolation or as a substitute for any measures of our financial performance that are calculated and reported in accordance with GAAP.

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements may include, without limitation, statements generally relating to possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives, and statements relating to our recently completed acquisition (the “Acquisition”) of TEADS, a private limited liability company (société anonyme) incorporated and existing under the laws of the Grand Duchy of Luxembourg (“Teads”). You can generally identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “guidance,” “outlook,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “foresee,” “potential” or “continue” or the negative of these terms or other similar expressions that concern our expectations, strategy, plans or intentions or are not statements of historical fact. We have based these forward- looking statements largely on our expectations and projections regarding future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors including, but not limited to: the ability of Outbrain to successfully integrate Teads or manage the combined business effectively; our ability to realize anticipated benefits and synergies of the Acquisition, including, among other things, operating efficiencies, revenue synergies and other cost savings; our due diligence investigation of Teads may be inadequate or risks related to Teads’ business may materialize; unexpected costs, charges or expenses resulting from the Acquisition; our ability to raise additional financing in the future to fund our operations, which may not be available to us on favorable terms or at all; our ability to attract and retain customers, management and other key personnel; the volatility of the market price of the Common Stock, $.001 par value per share (the “Common Stock”); overall advertising demand and traffic generated by our media partners; factors that affect advertising demand and spending, such as the continuation or worsening of unfavorable economic or business conditions or downturns, instability or volatility in financial markets, tariffs and trade wars and other events or factors outside of our control, such as U.S. and global recession concerns, geopolitical concerns, including the ongoing war between Ukraine-Russia and conditions in Israel and the Middle East, supply chain issues, inflationary pressures, labor market volatility, bank closures or disruptions, the impact of challenging economic conditions, political and policy changes or uncertainties in the U.S., and other factors that have and may further impact advertisers’ ability to pay; our ability to continue to innovate, and adoption by our advertisers and media partners of our expanding solutions; the potential impact of artificial intelligence (“AI”) on our industry and our need to invest in AI-based solutions; the success of our sales and marketing investments, which may require significant investments and may involve long sales cycles; our ability to grow our business and manage growth effectively; our ability to compete effectively against current and future competitors; the loss or decline of one or more of our large media partners, and our ability to expand our advertiser and media partner relationships; conditions in Israel, including the ongoing conflict between Israel and Hamas and any conflicts with other terrorist organizations or other countries; our ability to maintain our revenues or profitability despite quarterly fluctuations in our results, whether due to seasonality, large cyclical events, or other causes; the risk that our research and development efforts may not meet the demands of a rapidly evolving technology market; any failure of our recommendation engine to accurately predict attention or engagement, any deterioration in the quality of our recommendations or failure to present interesting content to users or other factors which may cause us to experience a decline in user engagement or loss of media partners; limits on our ability to collect, use and disclose data to deliver advertisements; our ability to extend our reach into evolving digital media platforms; our ability to maintain and scale our technology platform; our ability to meet demands on our infrastructure and resources due to future growth or otherwise; our failure or the failure of third parties to protect our sites, networks and systems against security breaches, or otherwise to protect the confidential information of us or our partners; outages or disruptions that impact us or our service providers, resulting from cyber incidents, or failures or loss of our infrastructure; significant fluctuations in currency exchange rates; political and regulatory risks in the various markets in which we operate; the challenges of compliance with differing and changing regulatory requirements, including with respect to privacy; the timing and execution of any cost-saving measures and the impact on our business or strategy; and the risks described in the section entitled “Risk Factors” and elsewhere in the Annual Report on Form 10-K filed for the year ended December 31, 2024. Accordingly, you should not rely upon forward-looking statements as an indication of future performance. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or will occur, and actual results, events, or circumstances could differ materially from those projected in the forward-looking statements. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation and do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events or otherwise, except as required by law.

    About The Combined Company

    Outbrain Inc. (Nasdaq: OB) and Teads combined on February 3, 2025 and are operating under the new Teads brand. The new Teads is the omnichannel outcomes platform for the open internet, driving full-funnel results for marketers across premium media. With a focus on meaningful business outcomes, the combined company ensures value is driven with every media dollar by leveraging predictive AI technology to connect quality media, beautiful brand creative, and context-driven addressability and measurement. One of the most scaled advertising platforms on the open internet, the new Teads is directly partnered with more than 10,000 publishers and 20,000 advertisers globally. The company is headquartered in New York, New York, with a global team of nearly 1,800 people in 36 countries.

    Media Contact
    press@outbrain.com

    Investor Relations Contact
    IR@outbrain.com
    (332) 205-8999

    OUTBRAIN INC.
    Condensed Consolidated Statements of Operations
    (In thousands, except for share and per share data)
     
        Three Months Ended
    March 31,
          2025       2024  
        (Unaudited)
    Revenue   $ 286,357     $ 216,964  
    Cost of revenue:        
    Traffic acquisition costs     183,235       164,810  
    Other cost of revenue     20,472       10,559  
    Total cost of revenue     203,707       175,369  
    Gross profit     82,650       41,595  
    Operating expenses:        
    Research and development     13,979       9,193  
    Sales and marketing     53,737       23,617  
    General and administrative     36,477       15,215  
    Impairment charges     15,614       —  
    Restructuring charges     7,279       167  
    Total operating expenses     127,086       48,192  
    Loss from operations     (44,436 )     (6,597 )
    Other (expense) income:        
    Interest expense     (23,124 )     (937 )
    Other (expense) income and interest income, net     (484 )     1,405  
    Total other (expense) income, net     (23,608 )     468  
    Loss before income taxes     (68,044 )     (6,129 )
    Benefit from income taxes     (13,201 )     (1,088 )
    Net loss   $ (54,843 )   $ (5,041 )
             
    Weighted average shares outstanding:        
    Basic     77,954,579       49,265,012  
    Diluted     77,954,579       49,265,012  
             
    Net loss per common share:        
    Basic   $ (0.70 )   $ (0.10 )
    Diluted   $ (0.70 )   $ (0.10 )
    OUTBRAIN INC.
    Condensed Consolidated Balance Sheets
    (In thousands, except for number of shares and par value)
     
      March 31,
    2025    		   December 31,
    2024
      (Unaudited)    
    ASSETS:      
    Current assets:      
    Cash and cash equivalents $ 136,312     $ 89,094  
    Short-term investments in marketable securities   19,567       77,035  
    Accounts receivable, net of allowances   328,386       149,167  
    Prepaid expenses and other current assets   49,817       27,835  
    Total current assets   534,082       343,131  
    Non-current assets:      
    Property, equipment and capitalized software, net   47,879       45,250  
    Operating lease right-of-use assets, net   26,874       15,047  
    Intangible assets, net   391,022       16,928  
    Goodwill   587,494       63,063  
    Deferred tax assets   49,957       40,825  
    Indemnification asset   26,556       —  
    Other assets   24,176       24,969  
    TOTAL ASSETS $ 1,688,040     $ 549,213  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY:      
    Current liabilities:      
    Accounts payable $ 274,060     $ 206,920  
    Accrued compensation and benefits   50,760       19,430  
    Deferred revenue   13,066       6,932  
    Short-term debt   16,202       —  
    Accrued and other current liabilities   118,457       56,189  
    Total current liabilities   472,545       289,471  
    Non-current liabilities:      
    Long-term debt   610,816       —  
    Operating lease liabilities, non-current   20,356       11,783  
    Deferred tax liabilities   62,099       1,554  
    Contingent tax liabilities   36,632       9,343  
    Other liabilities   10,927       5,719  
    TOTAL LIABILITIES $ 1,213,375     $ 317,870  
           
    STOCKHOLDERS’ EQUITY:      
    Common stock, par value of $0.001 per share − one billion shares authorized; 94,349,511 shares issued and 94,293,190 shares outstanding as of March 31, 2025; 63,503,274 shares issued and 50,090,114 shares outstanding as of December 31, 2024   94       64  
    Preferred stock, par value of $0.001 per share − 100,000,000 shares authorized, none issued and outstanding as of March 31, 2025 and December 31, 2024   —       —  
    Additional paid-in capital   674,442       484,541  
    Treasury stock, at cost − 56,321 shares as of March 31, 2025 and 13,413,160 shares as of December 31, 2024   (242 )     (74,289 )
    Accumulated other comprehensive income (loss)   24,707       (9,480 )
    Accumulated deficit   (224,336 )     (169,493 )
    TOTAL STOCKHOLDERS’ EQUITY   474,665       231,343  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,688,040     $ 549,213  
    OUTBRAIN INC.
    Condensed Consolidated Statements of Cash Flows
    (In thousands)
     
        Three Months Ended March 31,
          2025       2024  
        (Unaudited)
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net loss   $ (54,843 )   $ (5,041 )
    Adjustments to reconcile net loss to net cash (used in) provided by operating activities:        
    Depreciation and amortization of property and equipment     1,935       1,639  
    Amortization of capitalized software development costs     2,472       2,409  
    Amortization of intangible assets     8,466       852  
    Amortization of discount on marketable securities     (425 )     (642 )
    Stock-based compensation     2,941       2,927  
    Non-cash operating lease expense     2,307       1,195  
    Provision for credit losses     298       1,693  
    Amortization of debt issuance costs     12,843       —  
    Deferred income taxes     (17,786 )     (174 )
    Impairment of assets     15,614       —  
    Unrealized foreign currency transaction (gains) losses     1,688       312  
    Other     30       26  
    Changes in operating assets and liabilities:        
    Accounts receivable     37,605       30,398  
    Prepaid expenses and other current assets     5,901       7,262  
    Accounts payable and other current liabilities     (22,374 )     (31,875 )
    Operating lease liabilities     (2,614 )     (1,205 )
    Deferred revenue     (830 )     (1,471 )
    Other non-current assets and liabilities     5,806       300  
    Net cash (used in) provided by operating activities     (966 )     8,605  
             
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Acquisition of a business, net of cash acquired     (598,319 )     (181 )
    Purchases of property and equipment     (2,921 )     (1,335 )
    Capitalized software development costs     (2,699 )     (2,627 )
    Purchases of marketable securities     (16,602 )     (31,578 )
    Proceeds from sales and maturities of marketable securities     74,221       31,492  
    Net cash used in investing activities     (546,320 )     (4,229 )
             
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Proceeds from the Bridge Facility     625,000       —  
    Repayments of borrowings under the Bridge Facility     (625,000 )     —  
    Proceeds from senior secured notes     625,305       —  
    Payment of deferred financing costs     (28,155 )     —  
    Payment of stock issuance costs     (775 )     —  
    Treasury stock repurchases and share withholdings on vested awards     (355 )     (4,015 )
    Principal payments on finance lease obligations     —       (255 )
    Proceeds from bank overdrafts, net     74       —  
    Net cash provided by (used in) financing activities     596,094       (4,270 )
    Effect of exchange rate changes     (57 )     363  
    Net increase in cash, cash equivalents and restricted cash   $ 48,751     $ 469  
    Cash, cash equivalents and restricted cash — Beginning     89,725       71,079  
    Cash, cash equivalents and restricted cash — Ending   $ 138,476     $ 71,548  
    OUTBRAIN INC.
    Non-GAAP Reconciliations
    (In thousands)
    (Unaudited)
     
    The following table presents the reconciliation of Gross profit to Ex-TAC gross profit and Ex-TAC gross margin, for the periods presented:
     
    ​ Three Months Ended March 31,
    ​   2025       2024  
    Revenue $ 286,357     $ 216,964  
    Traffic acquisition costs   (183,235 )     (164,810 )
    Other cost of revenue   (20,472 )     (10,559 )
    Gross profit   82,650       41,595  
    Other cost of revenue   20,472       10,559  
    Ex-TAC gross profit $ 103,122     $ 52,154  
           
    Gross margin (gross profit as % of revenue)   28.9 %     19.2 %
    Ex-TAC gross margin (Ex-TAC gross profit as % of revenue)   36.0 %     24.0 %
     
    The following table presents the reconciliation of net loss to Adjusted EBITDA, for the periods presented:
     
    ​ Three Months Ended March 31,
    ​   2025       2024  
    Net loss $ (54,843 )   $ (5,041 )
    Interest expense   23,124       937  
    Other expense (income) and interest income, net   484       (1,405 )
    Benefit from income taxes   (13,201 )     (1,088 )
    Depreciation and amortization   12,873       4,900  
    Stock-based compensation   2,941       2,927  
    Acquisition-related costs   16,418       —  
    Restructuring charges   7,279       167  
    Impairment charges   15,614       —  
    Adjusted EBITDA $ 10,689     $ 1,397  
           
    Net loss as % of gross profit (66.4 )%   (12.1 )%
    Adjusted EBITDA as % of Ex-TAC Gross Profit   10.4  %     2.7  %
    OUTBRAIN INC.
    Non-GAAP Reconciliations
    (In thousands)
    (Unaudited)
     
    The following table presents the reconciliation of net loss and diluted EPS to adjusted net loss and adjusted diluted EPS, respectively, for the periods presented:
     
    ​ Three Months Ended March 31,
    ​   2024       2023  
    Net loss $ (54,843 )   $ (5,041 )
    Adjustments:      
    Acquisition-related costs   16,418       —  
    Restructuring charges   7,279       167  
    Impairment charges   15,614       —  
    Bridge facility costs   11,996       —  
    Total adjustments, before tax   51,307       167  
    Income tax effect   (11,759 )     (41 )
    Total adjustments, after tax   39,548       126  
    Adjusted net loss $ (15,295 )   $ (4,915 )
           
    Basic and diluted weighted-average shares   77,954,579       49,265,012  
           
    Diluted net loss per share – reported $ (0.70 )   $ (0.10 )
    Adjustments, after tax   0.50       —  
    Diluted loss per share – adjusted $ (0.20 )   $ (0.10 )
    The following table presents the reconciliation of net cash provided by (used in) operating activities to free cash flow, for the periods presented:
     
      Three Months Ended March 31,
        2025       2024  
    Net cash (used in) provided by operating activities $ (966 )   $ 8,605  
    Purchases of property and equipment   (2,921 )     (1,335 )
    Capitalized software development costs   (2,699 )     (2,627 )
    Free cash flow $ (6,586 )   $ 4,643  

    The MIL Network –