NewzIntel.com

Category: Taxation

  • MIL-OSI USA: Performance Audit of UPMC’s Community HealthChoices Contract Finds Reporting Delays Cost Taxpayers More Than $120,000 in 2022

    Source: US State of Pennsylvania

    March 31, 2025 – Harrisburg, PA

    Performance Audit of UPMC’s Community HealthChoices Contract Finds Reporting Delays Cost Taxpayers More Than $120,000 in 2022

    On behalf of Auditor General Timothy L. DeFoor, Deputy Auditor General for Audits Gordon Denlinger today released the findings of a performance audit of UPMC’s Community HealthChoices contract with the Pennsylvania Department of Human Services (DHS) that found UPMC failed to update participant information, which cost taxpayers more than $350,000 in 2022– $120,000 of which DHS was unable to recover.

    “UPMC is required to report to DHS whether a person has died, went to jail or is no longer eligible to be part of the program,” Denlinger said. “DHS uses this as part of the data to set the rate it pays UPMC to provide care to people on Community HealthChoices. UPMC needs to make sure there is greater accountability in its management structure to ensure the required assessments are happening on time and regularly.”

    Speaker list:
    Deputy Auditor General for Audits Gordon Denlinger
    Leigh Ann Weaver, Performance Audit Senior Manager

    MIL OSI USA News –

  • MIL-OSI Security: Former Altamonte Springs Man Pleads Guilty To Stealing COVID Relief Funds

    Source: United States Department of Justice (National Center for Disaster Fraud)

    Orlando, FL – Acting United States Attorney Sara C. Sweeney announces that Joshua Robinson (32, Texas) has pleaded guilty to wire fraud. Robinson faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.

    According to the plea agreement, between July 2020 and August 2021, Robinson devised a scheme to defraud the Small Business Administration (SBA) by submitting false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loan applications. Specifically, Robinson submitted an EIDL application and a PPP application for businesses that he knew he did not own. Robinson obtained $13,100 from the EIDL application and $19,133 from the PPP application. Robinson then fraudulently obtained forgiveness of his PPP loan. 

    This case was investigated by the U.S. Department of Veterans Affairs – Office of Inspector General together with the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Stephanie A. McNeff.

    On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by contacting the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    MIL Security OSI –

  • MIL-OSI USA: Murphy, Connecticut Delegation Reintroduce Legislation To Improve Safety Net For Small Farmers

    US Senate News:

    Source: United States Senator for Connecticut – Chris Murphy
    WASHINGTON—U.S. Senators Chris Murphy (D-Conn.) and Richard Blumenthal (D-Conn.) joined U.S. Representatives John Larson (D-Conn.-01),  Joe Courtney (D-Conn.-02),  Rosa DeLauro (D-Conn.-03), Jim Himes (D-Conn.-04), and Jahana Hayes (D-Conn.-05) in reintroducing the Save Our Small (SOS) Farms Act of 2025. This legislation improves the farm safety net and expands federal crop insurance by allowing small farms to better access crop insurance policies often limited to large commercial farms to protect their business. 
    Extreme weather and other disasters can cause severe losses for farms lacking crop insurance, forcing them to depend on disaster relief. This disproportionately affects small farms, which often cannot access insurance. A recent survey by the Connecticut Department of Agriculture revealed that Connecticut farmers have lost over $50 million due to weather-related events in 2023 and 2024. The SOS Farms Act aims to provide a stronger safety net by expanding the number of farms eligible to purchase crop insurance, lower coverage costs for small farms, and directing the USDA to develop more responsive coverage options for farmers during extreme weather.
    According to the nationwide 2022 U.S. Department of Agriculture (USDA) Census of Agriculture, only 5% of Connecticut farms are enrolled in crop insurance, compared to 19% of farms nationally.
    “Small farmers in Connecticut work hard to keep their businesses running, but don’t have adequate insurance programs to protect them when extreme storms and droughts wipe out their crops. This legislation would make disaster assistance and insurance more affordable and effective, so local farmers aren’t left behind when disaster hits,” said Murphy.
    “Climate change has made it abundantly clear that we need a stronger safety net for farmers when floods, drought or other natural disasters strike. Our measure makes necessary reforms to programs that simply do not work for farmers by making coverage and assistance more accessible and affordable than before. Small farms are an essential part of Connecticut’s culture, environment, and economy—they deserve the best protection and support to recover from devastating storms,” said Blumenthal.
    “After the Connecticut River Valley was devastated by severe flooding during the summer of 2023, many small farms throughout the region lost hundreds of acres of crops,” said Larson. “The Save our Small Farms Act will better tailor our nation’s crop insurance programs to the unique needs of small to midsized farmers. Our bill will make crop insurance more affordable and accessible and reduce the paperwork burdens our farmers face to access support when disaster strikes. The entire Connecticut delegation will continue to stand together with our farmers, so they get the support they deserve and are not left on their own to pick up the pieces after a natural disaster.”
    “More and more farmers across Connecticut are facing the devastating impacts of extreme weather events. Unfortunately, the broken federal crop insurance system has let smaller farms fall through gaps in coverage and left them on the hook with major losses. The Save Our Small Farms Act reforms the crop insurance system and provides small farmers with the safety net they need to access assistance programs and recover from damages that come at no fault of their own. I look forward to once again working with my colleagues from Connecticut to ensure this issue receives the attention it deserves in Congress,” said Courtney.
    “As the backbone of our food system, small farms deserve fair access to the resources they need to thrive,” said DeLauro. “Each year, as the climate crisis intensifies, unforeseen and catastrophic weather events are becoming more and more common. This makes our efforts to protect our farmers crucial, which is why I am a strong supporter of The Save Our Small Farms Act, which will guarantee that federal programs serve all farmers, not just the largest operations. This legislation is necessary to address the gaps in our current farm safety net. I am proud to support this legislation aimed at bolstering our agricultural economy, safeguarding local producers, and creating a more resilient food supply.”
    “Each year seems to bring worse storms than the last, with Connecticut’s small farmers incurring ever-steeper crop losses because of increasingly common severe weather. The Save our Small Farms Act expands crop insurance options for small farmers and improves how the federal government provides disaster aid in times of crisis. This is a commonsense bill that brings federal agricultural policy in line with the realities of climate change and the hardships our nation’s small farmers face,” said Himes.
    “In the Fifth District, small farms help feed our communities and drive our economy. Although these farmers need assistance, our crop insurance and disaster programs too often leave them behind. And as we continue to see extreme weather patterns becoming more frequent, we must find new solutions to ensure small farm operators are protected before disasters strikes,” said Hayes. “The SOS Farms Act would expand coverage and assistance, lower costs for small farmers, and direct the USDA to develop more responsive coverage options. Small farms are an essential part of our culture, environment, and economy.”
    Specifically, the SOS Farms Act:
    Creates a streamlined application process to the Noninsured Crop Disaster Assistance Program (NAP), which offers farmers the opportunity to purchase coverage for losses due to natural disasters in areas where crop insurance is unavailable. The bill provides new authority to USDA to launch pilot projects to address emerging needs and to improve data collection to support the development of new crop insurance policies.
    Producers may not be able to find an insurance policy that covers any or all of their crops, or insurance premiums may be prohibitively expensive.
    Paperwork requirements, premiums, and service fees have often kept small farms from accessing NAP coverage.
    2. Directs the Farm Service Agency to create an on-ramp from NAP coverage to a true insurance policy under the Whole Farm Revenue Protection Program (WFRP), the most comprehensive crop insurance program for small and mid-sized farms. 
    3. Expands WFRP to allow smaller farms to better access crop insurance policies by:
    Reducing paperwork requirements for applicants.
    Allowing policies for farms that use crop-rotation.
    Modifies insurance plans to improve effectiveness for specialty crop and diversified farms.
    Increases response timeliness of insurance applications.
    Requires providers and the Risk Management Agency to account for different cultivation cycles for different crops when calculating premium discounts.
    Authorizing the Federal Crop Insurance Corporation to study WFRP participation by small farms that sell to local or regional markets.
    Expanding the network of insurance agents selling crop insurance policies to small farms through increased compensation
    4. Directs USDA to develop an index-based insurance policy that is responsive to crop and income losses due to extreme weather events.
    A weather index-based insurance policy uses extreme weather events as a proxy for agricultural income losses.
    This approach reduces paperwork while making the policy more responsive to losses from adverse weather conditions.
    Insurance would also be based on a farm’s income instead of the price of its crops, better aligning payouts with income losses associated with crop losses.
    Since payouts are automatically triggered by a weather event, producers would not have to fill out paperwork or wait months to receive support following a natural disaster.
    The SOS Farms Act is endorsed by the California Climate and Agriculture Network, California FarmLink, Coastal Enterprises, Inc., Community Alliance with Family Farmers, Community Farm Alliance, Dakota Rural Action, Environmental Working Group, Farm Action, Farm Aid, Farm to Table – New Mexico, Farmshare Austin, Friends of Family Farmers, HEAL (Health, Environment, Agriculture, Labor) Food Alliance, Illinois Stewardship Alliance, Institute for Agriculture and Trade Policy, Kiss the Ground, Land for Good, Land Stewardship Project, Maine Farmland Trust, Maine Organic Farmers and Gardeners Association, Marbleseed, Michael Fields Agricultural Institute, Michigan Food and Farming Systems, Midwest Farmers of Color Collective, Missouri Coalition for the Environment, National Sustainable Agriculture Coalition (NSAC), National Young Farmers Coalition, New Entry Sustainable Farming Project, Northeast Organic Farming Association of New Hampshire (NOFA-NH), Northwest Center for Alternatives to Pesticides, Ohio Ecological Food and Farm Association, Organic Farming Association, Pasa Sustainable Agriculture, Pesticide Action and Agroecology Network, Regenerate America, Renewing the Countryside, Rogue Farm Corps, Rural Advancement Foundation International, Rural Coalition, Sierra Club, Sustainable Food Center, and World Farmers.
    A one-pager of the legislation is available HERE, and the full bill text is available HERE.

    MIL OSI USA News –

  • MIL-OSI: 2024 Earnings Report

    Source: GlobeNewswire (MIL-OSI)

    Continued recovery of margins and strong improvement in cash generation

    Relevance of the selectivity strategy implemented in 2024, prioritizing margins

    • Another year of strong improvement in adjusted EBITDA margin: 7.5% in 2024, up 40 basis points compared to 2023
    • Slight increase in adjusted EBITDA to €75.1 million, despite the 5.8% decrease in revenue
    • Gradual recovery in net income, group share: -€15.8 million in 2024, compared with -€22.7 million in 2023
    • Net income, group share adjusted for amortization of customer relationships: -€6.0 million, compared with -€12.9 million in 2023

    Sustained momentum for the Group’s profitable growth drivers

    • Confirmation of Germany’s strong potential: +33.6% growth, accretive adjusted EBITDA margin for the Group
    • Expansion of the Energy business: +28.5% growth, including +52.0% in France, driven by accelerated development in solar

    Strong improvement in cash generation, solid financial position

    • Net free cash flow: €5.9 million, compared with -€17.0 million in 2023
    • Net bank debt: €0.8 million at the end of 2024
    • Bank debt successfully refinanced in November 2024 for €120 million

    On track to meet 2026 targets

    • Tripling of revenue in Germany compared to 2023
    • Tripling of revenue in Energy in France compared to 2023
    • Adjusted EBITDA margin above 10% in the Group’s three main geographies: Benelux, France and Germany

    Today, Solutions30 SE is announcing its consolidated earnings for the year ended December 31, 2024, prepared in accordance with IFRS. Solutions30’s 2024 consolidated financial statements as approved by the Management Board were examined by the Supervisory Board on March 31, 2025. The auditors, PKF Audit & Conseil, have completed their audit of the consolidated financial statements for the year ended December 31, 2024. The audit report relating to the certification of these statements as well as the Group’s consolidated financial statements for 2024 are available on the Solutions30 website (www.solutions30.com) under the “Investor Relations” section.

    Gianbeppi Fortis, Chief Executive Officer of Solutions30, stated: “In 2024, we made the strategic choice to prioritize margin improvement over revenue growth, adopting a more selective approach in certain mature markets. This choice has paid off as, this year, we were once again able to significantly improve our margins and we even achieved a slight increase in our adjusted EBITDA, despite a decline in revenue. The German market, where we are now firmly established, has confirmed its strong potential. Increased infrastructure investment in Germany should further expand the range of opportunities available to us. Energy services also confirmed their status as a solid growth driver, particularly in France, where they accounted for almost 30% of our Q4 revenue, with excellent prospects, especially in renewable energy.
    Following significant transformations in 2024, both in our organization and in our business portfolio, we are entering 2025 on a solid footing, with renewed confidence in the Group’s fundamentals. We have set a clear path for 2026, which we presented at our Capital Markets Day last September: tripling our revenue in Germany and in energy services in France, and achieving an adjusted EBITDA margin above 10% in our three main geographies. We are well on track to meet these ambitions.”

    Key figures – Consolidated data
    In millions of euros 2024 2023 Change
    Revenue 996.0 1,057.0 (5.8)%
    Adjusted EBITDA 75.1 74.6 0.7%
    As a % of revenue (EBITDA margin) 7.5% 7.1%  
    Adjusted EBIT 28.4 22.6 25.6%
    As a % of revenue 2.9% 2.1%  
    Operating income 0.6 (2.7) n.a.
    As a % of revenue 0.1% (0.3)%  
    Net income, group share (15.8) (22.7) n.a.
    Adjusted net income, group share * (6.0) (12.9) n.a.
    Free cash flow 40.2 13.4  
    Free cash flow net 5.9 (17.0)  
           
    Financial position figures
    In millions of euros    		 31.12.2024 31.12.2023 Change
    Equity 108.1 124.6 (16.5)
    Net debt 73.8 78.4 (4.7)
    Net bank debt 0.8 (5.7) 6.5

    * Adjusted for amortization of customer relationships (group share) net of the associated tax impact – charge relating to past acquisitions, purely accounting in nature, with no cash impact, and unrelated to tangible assets.

    Solutions30’s consolidated revenue for 2024 amounted to €996.0 million, down -5.8% compared to 2023. This includes an organic contraction of -6.4%, a +0.2% impact from acquisitions, and a +0.4% favorable exchange rate effect. It reflects the Group’s strategic orientations, aimed at giving greater priority to margins over revenue growth, in a context where it is currently operating in markets and business segments at different stages of maturity. Solutions30 chose to scale down its exposure to the telecommunications sector notably in France and in Spain, where certain contracts no longer met its profitability requirements. At the same time, the Group accelerated its development in its profitable growth drivers in Germany and in energy services.

    Adjusted EBITDA amounted to €75.1 million, up +0.7% on 2023, despite lower revenue, reflecting a further increase in adjusted EBITDA margin to 7.5% from 7.1% in 2023 (+40 basis points). This performance reflects the relevance of the selective strategy implemented by the Group in 2024.

    Free cash flow reached €40.2 million, a clear €26.8 million improvement compared to 2023 (€13.4 million). This reflects a favorable trend in working capital, in a context where Solutions30 is increasingly and continuously focusing on profitability and cash generation. Net free cash flow, after repayment of lease liabilities and interest paid on these liabilities, turned positive in 2024, at €5.9 million, compared with a negative -€17.0 million in 2023.

    As a result, the Group’s financial position remains very solid, with a cash position net of bank debt close to breakeven at the end of 2024 (-€0.8 million). In addition, all financing needs are fully covered by the successful refinancing of the Group’s bank debt in November 2024, for a total amount of €120 million.

    Analysis by geographical segment

      2024 2023 Change
    Benelux      
    Revenue 371.6 381.6 (2.6)%
    Adjusted EBITDA 37.1 43.6 (14.9)%
    Adjusted EBITDA margin % 10.0% 11.4% (140 bps)
    France      
    Revenue 360.8 403.3 (10.5)%
    Adjusted EBITDA 34.1 35.5 (3.9)%
    Adjusted EBITDA margin % 9.5% 8.8% +70bp
    Other Countries      
    Revenue 263.6 272.1 (3.1)%
    Adjusted EBITDA 16.3 5.5 +196.4%
    Adjusted EBITDA margin % 6.2% 2.0% ‘+420bp
    HQ* (12.4) (10.0) 24%
    Revenue 996.0 1,057.0 (5.8)%
    Adjusted EBITDA 75.1 74.6 +0.7%
    Adjusted EBITDA margin % 7.5% 7.1% +40 bps

       * Costs related to the Group’s centralized functions

    Benelux

    In the Benelux, the Group’s leading geography in terms of revenue, revenue amounted to €371.6 million in 2024, down slightly by -2.6% (-2.8% organic) from a very high comparison basis (+72% in 2023). This decline is due to the Connectivity business (2024 revenue of €282.2 million, down -7.2%), as the fiber-optic roll-out in Belgium has been slowed by negotiations between service providers aimed at streamlining their roll-out operations nationwide. In addition, the merger between Proximus and Fiberklaar is prompting the adaptation of the Group’s operational processes.

    Energy revenue reached €64.8 million, up +11.6%, driven by the roll-out of smart meters and strong momentum in energy transition support services, notably with the entry into production of the contract to modernize over 1,000 km of low-voltage electricity network in Flanders. In addition, the acquisition of Xperal in September 2024 opens up new prospects in the solar sector in Benelux.

    Lastly, Technology activities maintained their strong momentum, with revenue up by +27.6% to €24.5 million, driven notably by the launch of a new IT support contract in the fourth quarter.

    The Benelux’s adjusted EBITDA margin remained in double-digit territory throughout the year at 10.0%, demonstrating the Group’s ability to effectively adapt its processes and organization to the temporary slowdown in the Connectivity business. Adjusted EBITDA thus amounted to €37.1 million in 2024.

    France

    In France, revenue amounted to €360.8 million, down -10.5% (-11.0% organic). Revenue from the Connectivity business contracted by -26.9% to €208.8 million, reflecting the selective measures implemented since the second quarter to improve margins. This has led the Group to significantly reduce its exposure to certain contracts that were no longer meeting its profitability requirements, with an impact compounded by the slow-down in the fiber roll-out market since the beginning of the year.

    In 2024, Solutions30 successfully continued to expand its Energy business, achieving sustained growth of +52.0% to reach revenue of €78.4 million, or 22% of the total (almost 30% in the fourth quarter). In the photovoltaic sector, the Group benefits from a highly dynamic market and a leading position. The Energy business thus represents a strategic diversification lever for the Group in France, with the ambition of reaching €150 million in revenue from this segment by 2026.

    In the Technology business, revenue amounted to €73.6 million, up +11%, driven by a surge in activity linked to the 2024 Olympics and continued momentum in IT support services.

    France’s adjusted EBITDA margin stood at 9.5%, up 70 basis points compared to 2023. This increase results from the increased selectivity strategy implemented in the Connectivity business, which prioritizes margin improvement over revenue growth. It also reflects the ramp-up of the Energy business and the associated scale effects, as well as ongoing efforts to streamline the organization and central functions.

    Other Countries

    In Other Countries, revenue amounted to €263.6 million, down -3.1%. This trend includes an organic contraction of -4.5% partially offset by a positive currency effect of +1.4%, reflecting the appreciation of the zloty and the pound sterling against the euro during the period.

    With revenue up +33.6% to €84.4 million, Germany confirms in 2024 its status as a powerful growth driver and the Group’s future third pillar in Europe, alongside Benelux and France. Leveraging strong relationships with Germany’s six main telecom service providers, Solutions30 is successfully replicating its business model in this market whose exceptional potential continues to materialize, supported by the accelerated roll-out of fiber networks, and strong future investment momentum in infrastructure in general.

    In Poland, strong growth continues, reaching +18.0% in 2024. In Italy, the agreement reached with the main telecom client has effectively eliminated the associated risk, allowed business to return to normal as of the third quarter, with progressively improving economic conditions expected over the first half of 2025. Revenue was down -16.0% for the year, but returned to growth in the fourth quarter. In Spain, where revenue contracted by -34.2%, the Group has considerably reduced its exposure to the mature telecoms market, and is restructuring its Connectivity business while refocusing on the Energy and Technology businesses. Finally, in the United Kingdom, revenue was down -23.3%, reflecting increased selectivity and a refocusing on the fiber and energy services markets.

    Adjusted EBITDA in Other Countries stood at €16.3 million, three times its 2023 level (€5.5 million). The adjusted EBITDA margin was 6.2%, compared with 2.0% in 2023. This significant improvement reflects Germany’s solid performance. It also results from the return to breakeven in Italy, after the losses recorded in 2023, as well as the initial progress made in the United Kingdom.

    Consolidated earnings

    On the basis of adjusted EBITDA of €75.1 million for 2024, after accounting for depreciation and operational of €14.9 million (compared to €22.8 million in 2023), and after amortization of the right-of-use assets (IFRS 16) amounting to €31.8 million (€29.2 million in 2023), the Group’s adjusted EBIT stood at €28.4 million, up +25.6% compared to 2023, representing 2.9% of full-year revenue (2.1% in 2023).

    Operating income returned to positive territory in 2024, reaching €0.6 million, compared with a loss of -€2.7 million in 2023. It includes:

    • €13.4 million in net non-current operating expenses. These expenses mainly include restructuring costs, reflecting the measures taken by the Group to support the selective downsizing in certain markets and to optimize its organizational structure accordingly, particularly in Spain, the United Kingdom, and France.
    • €14.5 million in amortization of customer relationships, stable compared to 2023. This charge, relating to past acquisitions, is purely accounting in nature, with no impact on cash flow, and does not relate to tangible assets.

    Net financial income was -€14.7 million, compared with -€13.1 million in 2023. It includes a bank interest charge of -€7.2 million, compared with -€5.4 million in 2023, mainly reflecting a higher average drawdown in 2024, and interest on leases (IFRS 16) of -€3.2 million (-€1.7 million in 2023). It also includes, in 2024, non-cash income of €1.1 million, linked to the downward adjustment of earn-out liabilities from past acquisitions (compared with a -€0.8 million charge in 2023).

    After accounting for a net tax expense of -€1.4 million, the Group’s share of So-Tec’s income (equity-accounted) for €0.4 million, and deducting minority interests of €0.7 million, Net income group share amounted to -€15.8 million, a considerable improvement compared to 2023 (-€22.7 million). Adjusted for the amortization of customer relationships net of the related tax impact, Adjusted net income Group share – which strictly reflects the Group’s operating performance – amounted to -€6.0 million, compared with -€12.9 million in 2023.

    Cash flow

    The Group’s 2024 operating cash flow was €56.6 million. The change in working capital, restated for non-cash items, represents an inflow of €1.6 million, compared with an outflow of -€26.2 million in 2023. In addition to the impact from the decrease in revenue, this sharp improvement reflects the Group’s evolving business profile, as well as the enhanced focus on cash generation, with favorable trends in average customer payment terms and advance payment flows. The change in working capital includes a significant reduction in factoring of -€40.5 million, due to a lower volume of receivables in France as a result of the aforementioned decrease in activity, as well as favorable payment terms in Germany. As a result, net cash flow from operating activities rose sharply in 2024, to €58.2 million, compared to €34.1 million in 2023.

    Net investments amounted to €18.0 million, or -1.8% of revenue, in line with their normative levels of around 2%, and were mainly related to information systems and technical equipment. In particular, Solutions30 relies on its proprietary IT platform, Smartfix, as a strategic tool to efficiently manage its large-scale operations. This platform accounts for the bulk of the Group’s annual investments.

    Overall, free cash flow amounted to €40.2 million in 2024, a significant improvement over 2023 (€13.4 million). After repayment of lease liabilities and related interest (IFRS 16), amounting to -€34.3 million, net free cash flow turned positive in 2024, at €5.9 million, compared with -€17.0 million in 2023.

    Taking into account -€3.5 million in earn-outs paid on past acquisitions, -€0.1 million in acquisitions made during the period, -€6.9 million in interest paid, -€14.3 million in net reimbursements of loans, -€1.9 million in debt issuance costs and the -€1.1 million impact of exchange rate fluctuations, the change in cash position was -€22.0 million.

    Financial position

    Solutions30 maintains a solid financial position, combining strong liquidity with a net financial debt of almost zero. At December 31, 2024, the Group’s gross cash position stood at €96.3 million, compared with €118.2 million at the end of December 2023. Gross bank debt amounted to €97.0 million, compared with €112.5 million at December 31, 2023, due to the repayment of loans during the year. As a result, the Group’s net bank debt was nearly breakeven, at €0.8 million at December 31, 2024, compared with a net cash position of €5.7 million at December 31, 2023.

    This financial position is all the more solid given the significant reduction in receivables sold under the Group’s non-recourse factoring program, which amounted to €69 million as of December 31, 2024, compared to €109 million as of December 31, 2023. Factoring can finance working capital from recurring activities that have fully developed, at a very modest cost. This program, combined with a solid financial position, provides Solutions30 with the resources it needs to finance its growth strategy.

    Including €68.8 million in lease liabilities (IFRS 16) and €4.1 million in potential financial debt linked to future earnouts and put options, the Group’s total net debt stood at €73.8 million at December 31, 2024, down slightly from €78.4 million at December 31, 2023.

    In November 2024, Solutions30 completed the refinancing of its entire bank debt, for a total amount of €120 million, including an effective loan of €83 million and a loan commitment of €37 million to finance growth. This new facility, arranged with a syndicate of eight core relationship banks, strengthens the Group’s financial base and provides it with the resources needed to support its continued expansion, particularly in the energy sector. With a 7-year maturity, it also extends the debt maturity profile while maintaining a cost comparable to that of the previous debt.

    Outlook

    Following a year in which Solutions30’s selective strategy proved effective, the Group intends to continue prioritizing margins over volumes in its most mature markets, while allocating more resources to segments offering the strongest prospects for profitable growth, particularly in Germany and in energy services.

    Confident in its positioning and ability to seize the numerous opportunities within its markets, the Group is fully committed to achieving its 2026 objectives, as presented at the Capital Markets Day held on September 26, 2024. These include achieving an adjusted EBITDA margin in excess of 10% in each of its three main geographies: Benelux, France, and Germany.

    In the Benelux, the Group is confident it will be able to capitalize on its leading market position and return to growth during 2025.

    In France, Energy Solutions revenue is set to triple compared with 2023, reaching €150 million in 2026. For Connectivity Solutions, the Group is focused on stabilizing its activity levels while applying strict contract selectivity.

    In Germany, Solutions30 is targeting a first milestone in 2026, with revenue ranging between €150 million and €200 million. Germany should continue to grow faster than the rest of the Group, ultimately becoming one of its largest contributors. In the longer term, the country is set to benefit from strong investment momentum in infrastructure, which should translate into numerous growth opportunities for Solutions30, not only in fiber optics, but also in Energy (smart grids, solar power, energy storage, electric vehicle charging infrastructure, smart meters) and Technology (rail network signaling, Internet of Things) businesses.

    In the rest of Europe, Solutions30 has adopted a portfolio management approach, aiming at sustaining Poland’s profitable growth, further improving performance in the UK, and either restoring margin in Italy and Spain by 2026 or initiating a strategic review in these two countries.

    Webcast for Investors and Analysts

    Date: Monday, March 31, 2025
    6:30 PM (CET) – 5:30 PM (GMT)

    Speakers:
    Gianbeppi Fortis, Chief Executive Officer
    Amaury Boilot, Group General Secretary

    Connection details:

    Webcast in French or English : https://channel.royalcast.com/solutions30-fr/#!/solutions30-fr/20250331_1

    Upcoming Events

    2025 Q1 Revenue Report – April 29, 2025 (after market close)
    TPICAP Conference – Paris – May 15, 2025
    Annual General Meeting – June 17, 2025
    Portzamparc Mid & Small Caps Conference –  June 19, 2025
    2025 Half-year Results – September 17, 2025 (after market close)
    2025 Q3 Revenue Report – November 5, 2025 (after market close)        

    About Solutions30 SE

    Solutions30’s mission is to make the technological developments that are transforming our daily lives accessible to everyone, individuals and businesses alike, especially with regard to the digital transformation and the energy transition. With its network of more than 16,000 technicians, Solutions30 has completed over 65 million call-outs since its inception and led over 500 renewable energy projects with a combined maximum output surpassing 1800 MWp. Every day, Solutions30 is doing its part to build a more connected and sustainable world. Solutions30 has become an industry leader in Europe with operations in 10 countries: France, Italy, Germany, the Netherlands, Belgium, Luxembourg, Spain, Portugal, the United Kingdom, and Poland. The capital of Solutions30 SE consists of 107,127,984 shares, equal to the number of theoretical votes that can be exercised. Solutions30 SE is listed on the Euronext Paris exchange (ISIN FR0013379484- code S30). Indices : CAC Mid & Small | CAC Small | CAC Technology | Euro Stoxx Total Market Technology | Euronext Tech Croissance.
    Visit our website to learn more: www.solutions30.com

    Contact

    Individual Shareholders:
    actionnaires@solutions30.com – Tel: +33 1 86 86 00 63

    Analysts/Investors:
    investor.relations@solutions30.com

    Press – Image 7 :
    Charlotte Le Barbier – Tel: +33 6 78 37 27 60 – clebarbier@image7.fr

    The Group uses financial indicators not defined by IFRS:

    • Profitability indicators and their components are key operational performance indicators used by the Group to monitor and evaluate its overall operating earnings and earnings by country.
    • Cash flow indicators are used by the Group to implement its investment and resource allocation strategy.

    The non-IFRS financial indicators used are calculated as follows:

    Organic growth includes the organic growth of acquired companies after they are acquired, which Solutions30 assumes they would not have experienced had they remained independent. In 2024, the Group’s organic growth included only the internal growth of its long-standing subsidiaries.

    Adjusted EBITDA is the “operating margin” as reported in the Group’s financial statements.

    Free cash flow corresponds to the net cash flow from operating activities minus the acquisitions of intangible assets and property, plant and equipment net of disposals.

    Calculation of free cash flow:

    In millions of euros 31.12.2024 31.12.2023
    Net cash flow from operating activities         58.2                 34.1        
    Acquisition of fixed assets, net         (18.6)         (21.4)
    Disposal of non-current assets after tax         0.7                 0.7        
    Free cash flow         40.2                 13.4        

    Net free cash flow corresponds to free cash flow less “Repayment of lease liabilities” and “Interest paid on lease liabilities” as shown in the Group’s consolidated statement of cash flows.

    Calculation of net free cash flow:

    In millions of euros 31.12.2024 31.12.2023
    Free cash flow         40.2                 13.4        
    Repayment of lease liabilities         (31.1)         (28.7)
    Interest paid on lease liabilities         (3.2)         (1.7)
    Free cash flow net         5.9                 (17.0)

    Cash net of bank debt corresponds to “Cash and cash equivalents” as it appears in the Group’s financial statements from which is deducted “Loans from credit institutions, long-term” and “Short-term loans from credit institutions, lines of credit, and bank overdrafts” as they appear in note 10.2 of the Group’s annual financial statements.

    Adjusted EBIT corresponds to operating income as shown in the Group’s financial statements, to which “Customer relationship amortization” and “Other non-current operating expenses” are added and from which “Other non-current operating income” is deducted.

    Reconciliation between operating income and adjusted EBIT:

    In millions of euros 31.12.2024 31.12.2023
    Operating income         0.6                 (2.7)        
    Customer relationship amortization         14.5                 14.4        
    Other non-current operating income         (2.2)                 (0.4)        
    Other non-current operating expenses         15.5                 11.4        
    Adjusted EBIT         28.4                 22.6        
    As a % of revenue         2.9        %         2.1        %

    The adjusted group share of net income corresponds to the “Net income, group share” as shown in the group financial statements, to which is added “Amortization of customer relationships, group share” and from which is deducted the “Tax impact on amortization of customer relationships, group share.”

    In millions of euros 31.12.2024 31.12.2023
    Net income, group share         (15.8)         (22.7)
    Amortization of customer relationships, group share         13.2                 13.1        
    Tax impact on amortization of customer relationships, group share         (3.4)         (3.3)
    Adjusted group share of net income         (6.0)         (12.9)

    Net debt corresponds to “Debt, long-term,” “Debt, short-term,” and long- and short-term “Lease liabilities” as they appear in the Group’s financial statements from which “Cash and cash equivalents” as they appear in the Group’s financial statements are deducted.

    Net debt/EBITDA ratio corresponds to “net debt” divided by annualized EBITDA.

    Net debt-to-equity ratio corresponds to “net debt” divided by equity.

    Net debt:

    In millions of euros 31.12.2024 31.12.2023
    Bank debt         97.0                 112.5        
    Lease liabilities         68.8                 76.4        
    Future liabilities from earnouts and put options         4.1                 7.7        
    Cash and cash equivalents         (96.3)                 (118.2)        
    Net debt         73.8                 78.4        
         
    Operating margin (Adjusted EBITDA)         75.1                 74.6        
    Net debt ratio 0.98 1.05
         
    Equity         108.1                 124.6        
    % of net debt         68.2        %         62.9        %

    Net bank debt corresponds to “Long-term loans from credit institutions” and “Short-term loans from credit institutions, lines of credit, and bank overdrafts” as they appear in note 10.2 of the Group’s annual financial statements from which are deducted “Cash and cash equivalents” as they appear in the Group’s financial statements.

    Net bank debt:

    In millions of euros 31.12.2024 31.12.2023
    Loans from credit institutions, long-term         74.3                 75.6        
    Short-term loans from credit institutions and lines of credit         22.7                 37.0        
    Gross bank debt         97.0                 112.6        
    Cash and cash equivalents         (96.3)         (118.2)
    Net bank debt         0.8                 (5.7)
    Cash net of bank debt         (0.8)         5.7        

    Gross bank debt corresponds to “Loans from credit institutions, long-term” and “Short-term loans from credit institutions, lines of credit, and bank overdrafts” as they appear in note 10.2 of the Group’s annual financial statements.

    Working capital corresponds to “current assets” as reported in the Group’s financial statements (excluding “Cash and cash equivalents” and “Derivative financial instruments”) less “current liabilities” (excluding “Debt, short-term,” “Current provisions,” and “Lease liabilities”).

    Working capital:

    In millions of euros 31.12.2024 31.12.2023
    Inventory and work in progress         24.7                 25.7        
    Trade receivables and related accounts         219.5                 211.6        
    Current contract assets         0.9                 1.0        
    Other receivables         79.1                 66.5        
    Prepaid expenses         6.1                 3.1        
         
              (171.7)         (200.1)
    Trade payables         (143.4)         (120.8)
    Tax and social security liabilities         (21.0)         (15.0)
    Other current liabilities         (56.8)         (18.9)
    Working capital         (62.6)         (46.9)
         
    Change in working capital         (15.6)         17.7        
    Non-monetary items         14.0                 8.5        
    Change in working capital adjusted for non-monetary items         (1.6)         26.2        
         

    Net investments correspond to the sum of the lines “Acquisition of current assets,”
    “Acquisition of non-current financial assets,” and “Disposal of non-current assets after tax” as they appear in the consolidated statement of cash flows.
    Net investments:

    In millions of euros 31.12.2024 31.12.2023
    Acquisition of non-current assets         (18.2)         (21.6)
    Acquisition of non-current financial assets         (0.4)         0.2        
    Disposal of non-current assets after tax         0.7                 0.7        
    Net investments         (17.9)         (20.7)

    Operating costs correspond to costs incurred for the Group’s operations, included in the “operating margin” (excluding structural costs).

    Structural costs correspond to costs incurred by the Group’s head office functions in various countries, included in the “operating margin” (excluding operating costs).

    Expenses related to the Group’s centralized functions refer to costs incurred by the parent company’s headquarters functions and are included in the “operating margin.”

    Attachment

    The MIL Network –

  • MIL-OSI: Proactis SA 12 months revenue 31 January 2025

    Source: GlobeNewswire (MIL-OSI)

    Proactis SA Announces Financial Information for the year ended 31 January 2025

    Paris – March 31, 2025 – Proactis SA (Euronext: PROAC), a leading provider of comprehensive spend management and business process collaboration solutions, today announces financial information for the year ended 31 Janvier 2025, in accordance with the “European Transparency Obligations Directive” financial disclosure requirements.

    Financial data

    in € million     12 months – Year ended 31 Jan 2025   18 months – Year ended 31 Jan 2024     % Change
    2025/ 2023(*)
                     
    Consolidated Operational Revenue     5.5   11.3     (52) %
    SaaS (**)     5.0   9.4     (47) %
    Services     0.4   1.9     (76) %
                     
    Management fees     3.8   6.6     (42) %
                     
    Consolidated Revenue     9.3   17.9     (48) %
    (unaudited Figures)                
    (*) Percentages calculated on exact numbers, not the rounded numbers shown
    (**) SaaS is a model of delivering technology where a software solution is hosted (cloud computing) as a service for its customers.
    Clients do not buy the technology but pay a subscription fee to use it.
     

    The extended 18-month period in the previous financial year reflected a change to the Proactis Group year-end date to 31st January. The current fiscal year covers the period from February 1st, 2024, to January 31st, 2025.

    Because of the extended additional 6 months on previous fiscal year period, pertaining to the change of year end date, the decrease of the revenue looks higher; still, it is below the level of the prior period due principally to non-renewal of contracts in specific non-core product areas, and contract value decreases.

    For clarity purposes we present the FY25 figures compared to the last 12 months of FY23, and they are as below:

    in € million     12 months – Year ended 31 Jan 2025   12 months period ended 31 Jan 2024   % Change
    2025/ 2023(*)
    (12 months to 01-2024)
                   
    Consolidated Operational Revenue     5.5   6.9   (20) %
    SaaS (**)     5.0   6.1   (18) %
    Services     0.4   0.8   (42) %
                   
    Management fees     3.8   4.5   (15) %
                   
    Consolidated Revenue     9.3   11.4   (18) %
    (unaudited Figures)              
    (*) Percentages calculated on exact numbers, not the rounded numbers shown
    (**) SaaS is a model of delivering technology where a software solution is hosted (cloud computing) as a service for its customers.
    Clients do not buy the technology but pay a subscription fee to use it.    		    

    The change to Service revenues reflects a large implementation project in the FY23 comparative that has since been completed.

    The total consolidated revenue includes Group Management fees related to transfer pricing agreements.

    * * * *

    About Proactis SA (https://www.proactis.com/proactis-sa), a Proactis Company

    Proactis SA connects companies by providing business spend management and collaborative business process automation solutions for both goods and services, through The Business Network. Our solutions integrate with any ERP or procurement system, providing our customers with an easy-to-use solution which drives adoption, compliance and savings.

    Proactis SA has operations in France, Germany, USA and Manila.

    Listed in Compartment C on the Euronext Paris Eurolist.

    ISIN: FR0004052561, Euronext: PROAC, Reuters: HBWO.LN, Bloomberg: HBW.FP

    Contacts
    Tel: +33 (0)1 53 25 55 00
    E-mail: investorContact@proactis.com

    * * * *

    Attachment

    The MIL Network –

  • MIL-OSI USA News: ONDCP Recognizes Law Enforcement’s Work to Stop Drug Traffickers

    Source: The White House

    class=”wp-block-heading has-text-align-center”>National High Intensity Drug Trafficking Areas Awards Ceremony Recognizes Excellence Across 14 Key Categories

    Washington, D.C.—Last night, the White House Office of National Drug Control Policy (ONDCP) recognized individuals and initiatives of the High Intensity Drug Trafficking Areas (HIDTA) Program at the 2025 National HIDTA Awards Ceremony for their critical work to combat the national security threat posed by drug traffickers, including those who traffic deadly illicit fentanyl in the United States, killing tens of thousands of Americans each year.  

    The Trump Administration is taking the fight to the cartels and drug traffickers in order to save American lives. The HIDTA Program plays a key role in disrupting and dismantling drug trafficking organizations and provides assistance to federal, state, local, Tribal, and territorial law enforcement agencies operating in areas determined to be critical drug trafficking regions across all 50 states. Last year, the 33 HIDTAs seized 4.1 million pounds of fentanyl and other drugs and denied drug traffickers $17.7 billion in illicit profits. For every dollar invested in the HIDTA Program, the American people get $68.07 in benefits, making HIDTA an effective and efficient use of taxpayers’ money, and an important tool in the nation’s effort to stop drug traffickers and save American lives.  

    The following awards were presented March 27 to individuals and initiatives of the HIDTA Program for their efforts to reduce the supply and trafficking of dangerous drugs in communities across the country: 

    INVESTIGATIVE COLLABORATION

    Chicago HIDTA, Chicago HIDTA Counternarcotics and Cryptocurrency Task Force

    Created to identify, disrupt, and dismantle transnational criminal organizations (TCOs), the Chicago HIDTA Counternarcotics and Cryptocurrency Task Force (CNCTF) targeted one of the largest, fastest-growing dark net markets in the world – Nemesis Market. This marketplace facilitated drug trafficking, fraud, hacking, and other illicit activities responsible for more than $20 million in illicit transactions to more than 150,000 registered users around the world. Led by DEA and comprising an array of federal and local partners, CNCTF undertook Operation Keyboard Warrior, which received designation by the Organized Crime Drug Enforcement Task Forces (OCDETF). In March 2024, CNCTF, working with the Federal Bureau of Investigation (FBI) and the German Bundescriminalamt, disrupted Nemesis Market by executing simultaneous, multinational search and seizure warrants on critical technological infrastructure. The warrants resulted in nearly $1 million in frozen and seized cryptocurrency-related assets, twelve computer servers, various electronic devices, and terabytes of data containing financial records and personal information of more than 1,000 vendors trafficking in drugs and engaging in fraud, hacking, and forgeries on the marketplace. CNCTF leveraged this information to effect arrests and warrants in eight U.S. federal districts, and provided investigative leads to foreign law enforcement counterparts in multiple countries using international treaty-based disclosure agreements that were novel to cyber cases.

    PROSECUTION

    South Florida HIDTA, Assistant U.S. Attorneys Kevin Gerarde and Sean McLaughlin

    With the support of the South Florida HIDTA and assistance from the Drug Enforcement Administration (DEA), Assistant United States Attorneys (AUSAs) Kevin Gerarde and Sean McLaughlin secured a jury verdict against the Premier of the British Virgin Islands (BVI) for drug trafficking. Andrew Fahie, who was elected as the Premier in 2019, was accused of assisting the Sinaloa Cartel in transporting loads of cocaine weighing three metric tons from the coast of Colombia through the BVI en route to the United States for distribution. In exchange for his assistance, Fahie allegedly received a 12 percent cut of the proceeds when the cocaine was sold in the United States. After an extensive undercover operation conducted with the United Kingdom’s National Crime Agency and the Royal Virgin Islands Police Force, DEA arrested Fahie. In prosecuting Fahie, AUSAs Gerarde and McLaughlin overcame a variety of evidentiary challenges, including United Kingdom and BVI foreign law determinations regarding the applicability of U.S. money laundering statutes. On February 8, 2024, the jury returned a verdict finding Fahie guilty on all counts, and he was subsequently sentenced to 135 months imprisonment.

    PUBLIC HEALTH/PUBLIC SAFETY COLLABORATION

    Texoma HIDTA, Caprock Drug Initiative

    The Texoma HIDTA’s Caprock Initiative launched a program at the behest of local officials to address alarming increases in fentanyl overdoses in and around Lubbock, Texas. Since its inception, the program has reached nearly 26 thousand individuals from all walks of life. Undertaken with substantial support from the United States Attorney’s Office, the Texas Anti-Gang Center, and the Lubbock County District Attorney’s Office, the program has become the most requested fentanyl awareness presentation in the South Plains region. It has been presented to numerous local schools, including to the Texas Tech football team. The program provides candid, factual information from people in recovery, overdose survivors, and families of overdose victims. It is credited with raising public awareness and contributing to a reduction in overdoses in the region.

    HIDTA SUPPORT

    Atlanta Carolinas HIDTA, Lydia Sheffield

    Lydia Sheffield has served the Atlanta Carolinas HIDTA for two decades, providing continuity with her outstanding support to three executive directors. In addition to her myriad duties as the Executive Assistant, Ms. Sheffield is the primary Performance Management Process (PMP) Coordinator for the HIDTA, and has established herself as an expert user of PMP. In that role, she has generously provided training to PMP users from multiple other regional HIDTAs at the behest of the National HIDTA Assistance Center and to National HIDTA Program staff. Ms. Sheffield has drawn upon her own background and experience as a skilled trainer to develop curriculum materials to support trainings to both peer PMP coordinators and initiative commanders across the United States.

    INVESTIGATION INVOLVING INNOVATIVE APPROACHES

    Gulf Coast HIDTA, Mobile Baldwin Major Investigations Team

    In 2023, the Mobile Baldwin Major Investigations Team (MBMIT) began investigating a deactivated DEA confidential source who was coordinating large shipments of methamphetamine, fentanyl, and cocaine from Texas and Georgia into the Mobile, Alabama area. Because the former source was familiar with law enforcement communication and investigative techniques and was still being used by local law enforcement agencies, the source was emboldened to conduct illicit drug-related transactions via an end-to-end encrypted phone app. MBMIT agents successfully executed a search warrant to clone the source’s phone and initiated real-time Title III intercepts of the encrypted app. This was the first time an end-to-end encryption application was successfully intercepted in the New Orleans Division and only the third time this type of intercept had been conducted worldwide within DEA. The success of this investigative technique enabled 120 electronic and voice Title III intercepts resulting in 24 state and federal arrests, the seizure of 19 kilograms of cocaine and 20 kilograms of methamphetamine, and the seizure of over $500,000 in cash, jewelry, and vehicles. Additionally, these intercepts lead to the identification and follow-on investigation of regional drug traffickers in the United States with links to multiple Mexican TCOs.

    INTELLIGENCE AND INFORMATION SHARING

    Nevada HIDTA, Investigative Research Assistant Phillip Scichilone

    In early 2024, the Nevada Highway Patrol received a tip regarding a suspicious trucking company suspected of transporting illicit drugs from northern Nevada across the county, and subsequently passed the tip to Investigative Research Assistant Phillip Scichilone. Mr. Scichilone provided Northern Nevada Interdiction Task Force members with key intelligence related to the travel patterns of the vehicle involved, suspicious financial activity of the trucking company, and identification of the suspected owner and driver of the vehicle. The task force used this information to interdict the vehicle involved, resulting in the seizure of approximately $1 million and the identification of the driver and passenger, who were suspected of being linked to a known terrorist organization. After conducting follow-up analysis linking the suspects to out-of-state DEA and FBI investigations, Mr. Scichilone connected representatives of both agencies to deconflict and share information and then worked with both agencies to pass on key intelligence information.

    INTERDICTION

    New England HIDTA, Greater Boston HIDTA Task Force

    The Greater Boston HIDTA Task Force, co-led by the FBI and Homeland Security Investigations (HSI), initiated an investigation targeting a California-based drug trafficking organization (DTO) involved in large-scale illicit drug smuggling, distribution, and transportation from the Southwest Border to destinations throughout the United States and Canada. The initial phase of this ongoing investigation resulted in the disruption of a large-scale criminal enterprise with two arrests and the interdiction of 32 kilograms of methamphetamine and 490 kilograms of cocaine from a tractor trailer that traveled cross country to meet with undercover law enforcement agents in Massachusetts. The Massachusetts State Police have claimed this to be the largest seizure of narcotics from a tractor trailer in New England history, and the ongoing investigation has wide-ranging impact on DTO operations in the United States, Mexico, and Canada.

    INVESTIGATION INVOLVING A VIOLENT ORGANIZATION

    Texoma HIDTA, ATF Oklahoma City Violent Crime Initiative

    The ATF Oklahoma City Violent Crime Initiative led interagency Operation Sonic Boom that used information from the National Integrated Ballistic Information Network (NIBIN) to overlay maps of Oklahoma City with shooting incidents to identify critical, high gun violence areas to deploy additional resources. In a 60-day operation, ATF Confidential Sources and Undercover Agents conducted 117 undercover firearm purchases that led to the indictment of 64 defendants and the seizure of 110 firearms, 83 machinegun conversion devices (MCDs), 53 kilograms of methamphetamine, 5 kilograms of cocaine, and more than 1.5 kilograms of fentanyl tablets. Highlighting the critical links between the undercover operations in this case and the ongoing violent crime investigations in Oklahoma City, twelve of the firearms purchased by undercover agents had confirmed links in NIBIN to open shooting and homicide cases by violent criminal gangs in the greater Oklahoma City area. From a HIDTA perspective, the case was also a statistical success, with investigators identifying eight separate Drug Trafficking or Money Laundering Organizations and disrupting six of them during the course of the operation. 

    COMMUNITY IMPACT INVESTIGATION

    Northwest HIDTA, DEA Bellingham Regional HIDTA Task Force

    Over the past year, the DEA Bellingham Regional HIDTA Task Force (BRHTF) initiated an investigation that resulted in a substantial impact concerning public safety and health on the greater Lummi Nation Tribal Lands. Over a one-year period, BRHTF, along with partner agencies, seized over 850,000 fentanyl pills, seven kilograms of fentanyl powder, seven kilograms of cocaine, 29 illicit firearms, over $120,000 in U.S. currency, and disrupted a centralized DTO responsible for trafficking and distributing fentanyl and other drugs in the Lummi Nation within Whatcom County, WA. This investigation resulted in a notable decrease in both fentanyl availability and overdose deaths on Lummi Tribal Lands.

    OVERDOSE REDUCTION

    South Texas HIDTA, Laredo DEA HIDTA Task Force

    In 2023, the DEA Laredo District Office created a HIDTA Overdose Task Force initiative to address the dramatic rise in overdose deaths in Laredo, Texas, and its surrounding communities. The City of Laredo experienced 21 overdose deaths in 2021, rose to 41 overdose deaths in 2022, and was on pace to experience nearly 100 overdose deaths in 2023, when the task force was launched. Formed with multiple local and federal agencies and comprising six task force officers, the task force proved to be effective, with Laredo reporting 73 deaths in 2023, well short of the expected numbers. Throughout 2024, Laredo and its surrounding communities experienced 40 overdose deaths, and preliminary data indicate the city is on pace for a remarkable 45 percent decrease.

    INVESTIGATION

    Arizona HIDTA, Metro Intelligence Support and Technical Investigative Center (MISTIC)

    Throughout 2024, the Phoenix Police Department (PPD) Drug Enforcement Bureau’s (DEB) Conspiracy Squad and the DEA Phoenix Field Division’s Financial Investigations Group (FIG) conducted a long-term, complex investigation that targeted a TCO responsible for the trafficking and distribution of bulk quantities of illicit drugs, as well as for money laundering. Investigators conducted 2,000 hours of surveillance, utilized 225 court orders and search warrants, and initiated 35 wire intercepts targeting TCO members. Through the course of this investigation, detectives identified, disrupted, and dismantled the international drug trafficking activities of both foreign and United States-based sources of supply, load coordinators, couriers, stash house operators, and distribution coordinators, while also dismantling metropolitan Phoenix-based DTO operations.

    TASK FORCE OF THE YEAR

    Appalachia HIDTA, Appalachia HIDTA Diversion Task Force

    In response to an influx of counterfeit pharmaceuticals flooding southeastern Kentucky that were contributing to a rise in drug poisoning deaths, investigators with the Appalachia HIDTA Diversion Drug Task Force initiated an investigation into a dark net market distributor operating under the name GreenBeansUSA. This investigation was conducted jointly with the Appalachia HIDTA DEA London Task Force in coordination with the FBI, Internal Revenue Service, and U.S. Postal Inspection Service under the OCDETF Operation “Loyal Business.” Investigators identified GreenBeansUSA as a global supplier responsible for the sale and distribution of over 16 million counterfeit pharmaceutical pills, and the receipt of over $11 million in drug proceeds in the form of illicit cryptocurrency. In the course of the operation, investigators issued more than 200 grand jury subpoenas, 47 pen registers, 8 ping orders, Mutual Legal Assistance Treaty (MLAT) requests, IP analysis, blockchain and cluster analysis, 2703(d) orders, undercover purchases, undercover money laundering operations, pole cameras, and electronic search warrants to multiple telecommunications and technological entities. Their efforts resulted in federal indictments of six key members of the organization, the seizure of 11 kilograms of controlled pharmaceuticals (nitazene, benzodiazepine, and ketamine), six pill press machines, and approximately $1.2 million in assets.

    HIDTA AWARD FOR EXCELLENCE

    Ohio HIDTA, Sergeant Breck Williamson, Ohio State Highway Patrol

    Sergeant Breck Williamson has distinguished himself as both a prolific and successful interdictor of illicit drugs transiting the nation’s highways, and as an expert instructor and mentor to other officers conducting highway interdictions. Since October 2023, Sergeant Williamson has personally seized over 405 pounds of methamphetamines, 11 pounds of fentanyl, 141 pounds of cocaine, 3,203 pounds of marijuana, and $135,000 in U.S. currency. He also serves as an instructor for both the El Paso Intelligence Center (EPIC) and the Drug Interdiction Awareness Program (DIAP), sharing his expertise with hundreds of students throughout the past year. In addition to his day-to-day supervisory and highway interdiction duties, Sergeant Williamson is a DEA task force officer and is regularly called upon by DEA offices nationwide to advise on interdiction tactics and techniques.

    HIDTA OF THE YEAR

    SOUTH FLORIDA HIDTA

    The South Florida HIDTA has demonstrated an exemplary capacity for multidimensional vision and leadership. Through its Executive Director and Executive Board, it has targeted emerging threats, such as synthetic drugs, while remaining steadfastly committed to the interdiction of metric tons of cocaine destined for the United States from South America. It has inspired national efforts, like the launch of Crime Gun Intelligence Centers in HIDTA regions across the United States, without losing focus of the core HIDTA mission to disrupt and dismantle DTOs and while maintaining deep and sustaining partnerships at the local level. It has launched enterprising collaborations with law enforcement partners, such as partnering with the Federal Aviation Administration to access radar interdiction operability and records of straw registration of aircraft, while embracing public health initiatives focused on overdose reduction and drug use prevention.

    Among its many accomplishments, in 2023 South Florida HIDTA initiatives dismantled or disrupted 54 DTOs, of which 19 were international in scope and nearly 20 percent were OCDETF-designated or linked to consolidated or regional priority organization targets. Task forces seized illicit drugs with a total estimated value of $748 million, including 23 metric tons of cocaine, 248 kilograms of methamphetamine, and 224 kilograms of fentanyl. South Florida HIDTA initiatives also seized more than $105 million in cash and other assets, delivering a return on investment of $56.22 for every dollar financed by the National HIDTA Program. Finally, in pursuit of one of its most vital functions – ensuring officer safety – the South Florida HIDTA provided deconfliction services to all its partners, preventing more than 400 “blue on blue” incidents.

    MIL OSI USA News –

  • MIL-OSI: Dealership Adoption of Point Predictive’s BorrowerCheck™ Surges to Counter Rising Auto Fraud and Buybacks

    Source: GlobeNewswire (MIL-OSI)

    SAN DIEGO, March 31, 2025 (GLOBE NEWSWIRE) — Point Predictive reports record growth in adoption of its fraud detection technology across dealerships nationwide. BorrowerCheck™ is being rapidly implemented by major dealership groups and lenders to combat auto lending fraud, which increased to nearly $9.2 billion in 2024.

    The nationwide expansion includes partnerships with several prominent automotive retailers including Ken Garff Automotive Group, Bayway Auto Group, Napleton Automotive Group, Carriage Auto Group, Cavender Auto Family, along with hundreds of others. Point Predictive has also strengthened its integration with RouteOne®, enabling access to enhanced fraud detection capabilities for over 14,000 dealerships, and has established a partnership with OttoMoto® to provide a comprehensive suite of fraud detection, income, and employment validation solutions to dealerships nationwide.

    Dealers who have implemented BorrowerCheck report significant improvements in their operations and relationships with lenders:

    • Reduced Buybacks – Preventing 90% of buybacks that were previously missed using other solutions.
    • Enhanced Red Flags – Eliminating legacy red flags that were prone to false positives.
    • Faster Closing – Using One Time Passcode (OTP) validations which are 90% faster instead of historical question surveys that consumers find difficult to answer.

    “With Point Predictive’s unrivaled data accuracy, we now have a powerful ally in our fight against fraudulent misrepresentation at the point of sale,” said Preston Stewart, National Variable Operations Director at Napleton Automotive Group.

    “BorrowerCheck has been a game-changer for Carriage Auto Group,” said David Basha, Owner and Founder of Carriage Auto Group. “We run a BorrowerCheck report for every client, even those with high credit scores, because they are often victims of identity theft. When even some of the most stringent traditional checks fail to identify fraudulent applicants, BorrowerCheck has succeeded.”

    “I see BorrowerCheck as a game-changer for our group because it provides excellent visibility into the actual risk of a borrower early in the process,” noted Ben Stillwagon, Director of IT at Cavender Auto Family. “The tool allows us to quickly and easily determine if a borrower will create a compliance headache from the very start of the car buying experience, expediting the verification process for our legitimate buyers.”

    Point Predictive’s solution eliminates cumbersome knowledge-based questionnaires and replaces them with SMS-based verification that takes only 20 seconds, compared to the previous 5-15 minutes.

    The system draws from Point Predictive’s data repository, including intelligence from over 250 million loan applications, 93 million consumer identities, 23 million employers and 300 million reported incomes. This helps dealers identify sophisticated fraud schemes traditional tools miss.

    “Through BorrowerCheck, we’ve witnessed an incredible surge in dealer partnerships,” said Tim Grace, CEO of Point Predictive. “This momentum illustrates the effectiveness of our solutions for dealerships. We remain dedicated to empowering dealerships to get deals done faster, ensuring safe lending, and cultivating collaborative dealer and lender success across the industry.”

    To enable seamless adoption of this solution, BorrowerCheck, Point Predictive and Route One completed a full integration of BorrowerCheck at the end of 2024. This enabled access for the solution easily accessible to more than 14,000 dealerships.

    “We’re proud to bring dealers an elevated integration with Point Predictive and comprehensive fraud-fighting solutions,” added Jeff Belanger, Chief Revenue Officer at RouteOne. “By integrating advanced fraud detection directly into our platform, we’re giving dealers tools to validate customer information before fraud impacts their business.”

    For more information, contact info@pointpredictive.com

    About Point Predictive

    Point Predictive powers a new level of lending confidence and speed through artificial intelligence, powerful data insight from our proprietary data repository, and decades of risk management expertise. The company’s data and technology solutions quickly and accurately identify truthful and untruthful disclosures on loan applications. As a result, lenders can fund the majority of loans without requiring onerous documentation from consumers, such as pay stubs, utility bills, or bank statements, improving funding rates while reducing early payment default losses. Subsequently, borrowers get loans faster, and lenders realize a more profitable bottom line.

    The MIL Network –

  • MIL-OSI Global: Who really killed Canada’s carbon tax? Friends and foes alike

    Source: The Conversation – Canada – By Ryan M. Katz-Rosene, Associate Professor, School of Political Studies, with Cross-Appointment to Geography, Environment and Geomatics, L’Université d’Ottawa/University of Ottawa

    In his very first act as prime minister, Mark Carney did what critics had long demanded — he axed the federal carbon tax. Yet while Carney was the one who dealt the final blow, there were many who aided and abetted in its death.

    Since it was first proposed nearly a decade ago, the Liberal government’s keystone climate policy, the consumer carbon tax, became the target of both legal and political attacks. Nevertheless, these attacks were held at bay thanks in part to the 2021 Supreme Court ruling that upheld the constitutionality of carbon pricing and the Liberals’ success in maintaining power.

    The axing of the consumer carbon tax marks a major turning point in Canadian climate policy. It shifts the discussion from the effects of the fuel charge on household budgets to how to best compel large industrial emitters to reduce their climate impact in a swiftly evolving global trade context.



    Read more:
    The carbon tax needs fixing, not axing — Canada needs a progressive carbon tax

    The Liberals now propose instead a system of financial incentives for household-level purchases, while expanding the existing industrial pricing mechanism and potentially applying a carbon adjustment levy on imports from countries with lax environmental standards.

    The Conservatives, on the other hand, are vowing to do away with the industrial carbon pricing system, promoting clean tech innovation and manufacturing through financial incentives at the producer level, and offering greater autonomy to the provinces to set their own climate policies.

    Cost-effective, regressive

    The death of the consumer carbon tax serves as a predictable political tragedy in the Shakespearean sense of the word: widely regarded by scholars and other experts as a cost-effective and non-regressive tool to further reduce the carbon emissions, the tax ultimately fell to relentless populist attacks when its original proponents and supporters caved to this pressure.

    It’s useful to break down the various layers of support for — and opposition to — the tax to examine the role each played in its death.



    Read more:
    What the Supreme Court ruling on national carbon pricing means for the fight against climate change

    The most obvious contributors involved the political opponents of the Liberal Party and critics of former prime minister Justin Trudeau. This included not only the federal Conservative Party and provincial Conservative premiers, but also the rising anti-Trudeau populism that manifested early on, even before the tax’s introduction.

    These sentiments were seen in the Canadian Yellow Vests movement; “Wexit” and subsequently the so-called Freedom Convoy, which started as an anti-COVID-19 vaccine, anti-lockdown movement but morphed into a “carbon tax convoy” in the post-lockdown years.

    The role of inflation

    These populist movements were in part nourished by the Conservative Party under Pierre Poilievre after he became leader in 2022, and helped drive further support for the party in the years to follow.

    Circumstantial factors — such as the global inflation crisis — played a key role too. By 2023, Poilievre capitalized on the first annual carbon tax rate increase to associate it with ongoing inflation, launching the widely popular “Axe the Tax” campaign.

    This campaign, bolstered by a significant amount of misinformation, played a significant role in driving popular discontent with the policy.



    Read more:
    The Canada Carbon Rebate is still widely misunderstood — here’s why

    Former allies

    In responding to this rising popular discontent, some of the federal Liberals’ allies and original supporters of carbon pricing also played a role in further weakening the policy.

    For instance, sympathetic provincial premiers who in principle supported federal climate policy began to distance themselves from the carbon tax. In 2024, Manitoba’s NDP Premier Wab Kinew, British Columbia’s NDP Premier David Eby, Newfoundland and Labrador’s Liberal Premier Andrew Furey and New Brunswick’s Liberal Premier Susan Holt all made public comments seeking an end (or an alternative) to the carbon levy.

    Yet the most significant loss of support from a former ally came when NDP Leader Jagmeet Singh withdrew the federal NDP from the supply-and-confidence agreement it made with the Liberals, citing concerns that the carbon tax was placing a burden on everyday working Canadians.

    This withdrawal of support put the government on track for either a non-confidence vote or prorogation, which in turn fuelled an even further slide in voter support for the carbon tax.



    Read more:
    What does the end of the Liberal-NDP agreement mean for Canadians?

    Party leadership

    It was the Liberal Party’s own inside leadership circle that dealt the final blows to the tax.

    Chrystia Freeland’s surprise resignation late in 2024 hastened Trudeau’s political downfall earlier this year. Both leading candidates to replace Trudeau — including Freeland herself and the eventual winner, Carney — centred their campaigns around bringing an end to the tax, noting how the policy was too divisive.

    Yet the Liberal leadership also made several strategic missteps in recent years that contributed to the demise of the tax.

    For one, the party’s 2023 exemption for heating oil undermined the credibility of the policy and gave rise to charges of regional favouritism. Similarly, the party’s consistently poor communications around the carbon tax rebate — including difficulties in properly labelling the reimbursement cheques sent to Canadians — was yet another self-inflicted wound.

    Policy death

    Six years after its introduction, the federal consumer carbon tax was scrapped — ironically by the very party that had championed it for years.

    Yet the list of those who aided and abetted includes a secondary group of previous allies and other entities who in recent years publicly turned their backs on the carbon tax. That eroded public support for a policy that was already facing concerted attacks from Conservative political opponents and growing anti-Trudeau populism.

    While the tax could conceivably be replaced by an equally effective tool, its repeal increases uncertainty about Canada’s ability to meet its already faltering international commitments to support climate change mitigation.

    Ryan M. Katz-Rosene receives funding from the Social Sciences and Humanities Research Council of Canada.

    – ref. Who really killed Canada’s carbon tax? Friends and foes alike – https://theconversation.com/who-really-killed-canadas-carbon-tax-friends-and-foes-alike-252364

    MIL OSI – Global Reports –

  • MIL-OSI: Salad Disrupts AI Transcription Market: Highest Accuracy at the Lowest Cost

    Source: GlobeNewswire (MIL-OSI)

    SALT LAKE CITY, March 31, 2025 (GLOBE NEWSWIRE) — Salad Technologies, a leader in distributed cloud computing, today announced the launch of the upgraded Salad Transcription API, delivering the highest accuracy in the industry for AI batch transcription at the lowest cost.

    Ranking No.1 in an accuracy benchmark (95.1% accuracy rate), Salad’s API outperforms all major market alternatives, such as Deepgram, Assembly AI, Amazon Transcribe, Google Speech-to-Text, and OpenAI Whisper. The API is priced at just $0.16 per hour – at least 40% lower than competing APIs. 

    Designed for high-volume enterprise batch transcription, this launch sets a new industry standard – combining cutting-edge AI accuracy with unprecedented affordability. With asynchronous processing, the API can transcribe millions of hours of audio in parallel, making it genuinely built for scale.

    “There is an epidemic of overcharging in AI transcription today. Enterprises and startups have been forced to overpay for Transcription APIs as providers passed on the high cost of custom model research, large team sizes, and datacenter GPUs for inference to customers,” said Bob Miles, CEO of Salad Technologies. 

    “With Salad’s Transcription API, we’ve broken that cycle – delivering best-in-class accuracy while halving the cost to customers. Without training a proprietary model, Salad has taken an open source, multi-step, multimodal approach to ship the most powerful, cost-effective batch transcription API available today.”

    The API delivers transcription, translation, summarization, custom prompts, and custom vocabulary as a fully unified solution – no hidden fees, upcharges, or secondary API calls – just one all-inclusive rate for every advanced feature.

    Accuracy Benchmark Results

    Results from an accuracy benchmark over the CommonVoice5.1 dataset show the Salad Transcription API achieved the highest Word Accuracy Rate in English (95.1%), Spanish (96.8%), and German (96.3%) and the lowest Word Error Rate (WER).

    The benchmark processed over 1 million audio files, surpassing 4,500 hours of audio, and with new in-house optimizations, Salad Transcription API outperformed all six major API providers in accuracy across multiple languages.

    The API also shows industry-best accuracy for Russian (96.3%), Italian (93.3%), Portuguese (92%), and French (92%). 

    “With this API, our goal is to democratize the AI Transcription landscape and help companies realize massive cost savings at a price point that unlocks new use cases with the industry’s best accuracy,” said Bob Miles, CEO of Salad Technologies. 

    For more information, visit the website: https://salad.com/transcription

    About Salad Technologies

    Salad Technologies is a leader in distributed cloud computing, leveraging idle consumer and datacenter GPUs to deliver high-performance compute at industry-low costs. Our mission is to democratize cloud computing by utilizing latent consumer resources to power a sustainable, affordable, and environmentally friendly cloud for everyone.

    Media Contact:
    Prashanth Shankara
    prashanth.shankara@salad.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ccd7d05b-7ce3-42fd-82a0-aa7225d18f8a

    The MIL Network –

  • MIL-OSI: Security National Financial Corporation Reports Financial Results For the Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    SALT LAKE CITY, March 31, 2025 (GLOBE NEWSWIRE) — Security National Financial Corporation (SNFC) (NASDAQ symbol “SNFCA”) announced financial results for the year ended December 31, 2024.

    For the twelve months ended December 31, 2024, SNFC’s after-tax earnings from operations increased 83% from $14,495,000 in 2023 to $26,536,000 in 2024, on a 5% increase in revenues to $334,523,000.

    Scott Quist, Chairman of the Board, President, and Chief Executive Officer of SNFC, said, “2024 marked another year of solid progress for our Company. Our Life Insurance Segment had its best operational year ever, delivering a 25% improvement over 2023 which was its previous best year ever. We believe there is much opportunity for growth as we evaluate our competitive positions, improve the value propositions for our sales force, and increase premium rates where appropriate. We have spent much effort modernizing our commission systems with increased flexibility and capability to better reward our high performing sales professionals. 2024 was our Cemetery and Mortuary Segment’s best year ever improving 5% over 2023 which was its previous best year ever. We spent much time to better organize and train our staffs to provide the best care possible in the inherently sensitive situations within which we provide service. It is instructive to note that our Utah based Cemetery and Mortuary group has received the “Best in State” award for the last 7 consecutive years, a very significant recognition of the quality services we provide. In that same vein it should be noted that as a total Security National Financial organization we have received the “Top Workplace Award” for the last 9 consecutive years, which award highlights our commitment to our employees. Our Mortgage Segment delivered a solid performance, decreasing its loss by over $11 million dollars (64%) while increasing its revenue by over 8%. The mortgage industry as a whole continues to be profit challenged, with Q4 being Production Income negative according to the Mortgage Bankers Association.   Our talented management group continues to work on streamlining, rightsizing, adding quality personnel, and consolidating operations where possible, to provide consistently competitive rates and customer experience in a tough environment. Across all our Segments we have made very concerted efforts to provide all our sales forces the tools and accountability necessary to increase their incomes in this inflation-challenged economy by improving efficiency and increasing the value provided to our consumers.   Lastly I will say that any year that we as a total organization improve our before tax income by over 100%, is a very good year.”

    SNFC has three business segments. The following table shows the revenues and earnings before taxes for the twelve months ended December 31, 2024, as compared to 2023, for each business segment:

      Revenues   Earnings before Taxes
        2024     2023         2024       2023    
    Life Insurance $ 191,530,000   $ 185,176,000   3.4 %   $ 31,456,000     $ 25,272,000   24.5 %
                           
    Cemeteries/Mortuaries $ 33,022,000   $ 31,938,000   3.4 %   $ 8,861,000     $ 8,444,000   4.9 %
                           
    Mortgages $ 109,971,000   $ 101,383,000   8.5 %   $ (6,213,000 )   $ (17,416,000 ) 64.3 %
                           
    Total $ 334,523,000   $ 318,497,000   5.0 %   $ 34,104,000     $ 16,300,000   109.2 %
                           

    Net earnings per common share was $1.11 for the twelve months ended December 31, 2024, compared to net earnings of $.61 per share for the prior year, as adjusted for the effect of annual stock dividends. Book value per common share was $14.45 as of December 31, 2024, compared to $13.44 as of December 31, 2023.

    The Company has two classes of common stock outstanding, Class A and Class C. There were 23,451,432 Class A equivalent shares outstanding as of December 31, 2024.

    This press release contains statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Security National Financial Corporation and its business. The predictions in the statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.

    If there are any questions, please contact Mr. Garrett S. Sill or Mr. Scott Quist at:

    Security National Financial Corporation
    P.O. Box 57250
    Salt Lake City, Utah 84157
    Phone (801) 264-1060
    Fax (801) 265-9882

    The MIL Network –

  • MIL-OSI: High Arctic Announces 2024 Fourth Quarter and Year End Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

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

    CALGARY, Alberta, March 31, 2025 (GLOBE NEWSWIRE) — High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its’ fourth quarter and year-end results today. The audited consolidated financial statements, management discussion & analysis (“MD&A”), and annual information form for the year ended December 31, 2024 will be available on SEDAR at www.sedar.com, and on High Arctic’s website at www.haes.ca. All amounts are denominated in Canadian dollars (“CAD”), unless otherwise indicated.

    Mike Maguire, Interim Chief Executive Officer commented:

    “With 2024 complete High Arctic has effectively been reset and is now a Canadian focused platform characterized by minimal debt, investment holdings, and an established and viable high margin rental business.

    Our rental business footprint, while still small in scale, was bolstered by the Delta Acquisition completed in late 2023, an acquisition that is indicative of the type and structure of accretive investments High Arctic looks to pursue going forward.

    The Board of Directors is currently undergoing a process to recruit and appoint a new Chief Executive Officer to augment and lead High Arctic’s vision and strategic plan which is to grow its equipment rentals business and position itself to benefit from upstream energy service activity levels in the western Canadian oil and gas industry.”

    In the following discussion, the three months ended December 31, 2024 may be referred to as the “Quarter” or “Q4 2024”, and similarly the year ended December 31, 2023 may be referred to as “YTD 2023”. The comparative three months ended December 31, 2023 may be referred to as “Q4 2023” and similarly the year ended December 31, 2022 may be referred to as “YTD 2022”. References to other quarters may be presented as “QX 20XX” with X being the quarter/year to which the commentary relates.

    2024 Highlights

    • Successful integration of Delta Rental Services.
    • Completed the reorganization of High Arctic including the return of $37.8 million to shareholders.
    • Maintained operational excellence and safety as evidenced by the continuation of recordable incident free work.
    • Exited Q4 with net positive working capital of $2.7 million, including $3.1 million of cash.

    2025 Strategic Objectives

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

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

    2024 Strategic Objectives

    At the beginning of 2024, High Arctic established a set of strategic priorities. Our priorities and highlights of objectives met include:

    • Continued relentless focus on safety excellence and quality service delivery.
      • High Arctic’s Canadian business completed 2024 without any recordable incidents, contributing to the Corporation’s second calendar year running with a zero Total Recordable Incident Frequency Rate (“TRIF”) rate.
      • High Arctic extended its recordable incident free activity in PNG, with 7 years and 353 days of continuous recordable incident free work conducted to the date of the spin-out, representing over 4 million work hours.
    • The creation of appropriate capital and corporate structures for the current businesses, providing the opportunity to consider transactions which would create value for the Corporation’s shareholders.
      • The Arrangement was overwhelmingly supported by shareholders and resulted in separate public companies each focused upon their area of expertise.
    • A return of significant capital and spin out of the PNG Business to shareholders.
      • The Arrangement resulted in separate public companies while also delivering a tax efficient return of capital totaling $37.8 million to shareholders.
      • The Corporation retained its position on the main TSX (TSX: HWO); with High Arctic Overseas Holdings Corp. being listed on the TSX Venture Exchange (TSXV: HOH).
    • Grow the core businesses through selective and opportunistic investments.
      • The Corporation focused on the very successful integration and rebranding of its rentals business in 2024, following its acquisition and amalgamation of the Delta Acquisition at the end of 2023.
      • The middle of the year was dedicated to the business of the Arrangement and the resulting transitionary work, however later in the year, the Corporation commenced the examination of selective investment opportunities, with this work continuing into 2025.
    • Capital stewardship that preserves balance sheet strength and financial flexibility.
      • The Delta acquisition has provided incremental free cash flow and operational synergies.
      • The Corporation currently maintains low debt levels and associated leverage ratios.
      • Exited 2024 with a working capital ratio of 1.6:1
    • Building up the Canadian business with acquisitions that allow the Corporation to optimize its available tax loss carry-forwards.
      • The Delta acquisition creates a blueprint for accretive acquisitions that position the Corporation to improve its ability to utilize its significant tax loss carry-forwards.
      • The Corporation, under the stewardship of the Board, continues its strategic review of potential acquisition targets with strong underlying intrinsic value and that will be accretive for shareholders.

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

      Three months ended Dec 31,   Year ended Dec 31,  
    (thousands of Canadian Dollars, except per share amounts) 2024   2023   2024   2023  
    Operating results from continuing operations:        
    Revenue – continuing operations 2,443   1,037   10,470   3,384  
    Net loss – continuing operations (715 ) 219   (2,117 ) (989 )
    Per share (basic & diluted) (0.06 ) 0.02   (0.17 ) (0.08 )
    Oilfield services operating margin – continuing operations 1,143   664   5,207   2,058  
    Oilfield services operating margin as a % of revenue 46.8 % 64.0 % 49.7 % 60.8 %
    EBITDA – continuing operations 178   (918 ) (527 ) (2,311 )
    Adjusted EBITDA – continuing operations 133   (672 ) 795   (2,703 )
    Operating loss – continuing operations (533 ) (1,408 ) (2,965 ) (5,163 )
    Cash flow from continuing operations:        
    Cash flow from (used in) continuing operating activities 226   (874 ) 184   (515 )
    Per share (basic & diluted) 0.02   (0.07 ) 0.01   (0.04 )
    Funds flow from (used in) continuing operating activities 530   (335 ) 484   (1,292 )
    Per share (basic & diluted) 0.04   (0.03 ) 0.04   (0.11 )
    2024 return of capital / 2023 dividends –   –   37,842   2,190  
        As at December 31  
    (thousands of Canadian Dollars, except per share amounts)   2024   2023   2022  
    Financial position:              
    Working capital   2,692   62,985   59,461  
    Cash and cash equivalents   3,123   50,331   19,559  
    Total assets   30,867   123,137   133,957  
    Long-term debt   3,178   3,352   4,028  
    Shareholders’ equity   21,105   99,332   115,231  
    Per share (basic)   1.70   8.09   9.47  
    Common shares outstanding   12,448,166   12,280,568   12,172,958  


    Fourth Quarter 2024 Summary

    • Revenue from continuing operations increased 136% to $2,443 in the quarter compared to $1,037 in Q4 2023. The increase in revenue is primarily attributable to the Delta Acquisition in late Q4 2023.
    • Oilfield services operating margin from continuing operations was $1,143 in the current year quarter compared to $664 in the prior year quarter, an increase of $479 or 72%, driven by the Delta Acquisition as noted above.
    • EBITDA from continuing operations was $178 in the current year quarter compared to EBITDA loss of $918 in the prior year quarter. EBITDA from continuing operations benefitted from the acquisition of Delta Rental Services Ltd. (“Delta”) or (the “Delta Acquisition”) in late 2023.   
    • Operating loss from continuing operations of $553 in the quarter compared to $1,408 in Q4 2023. The decrease in operating loss is attributable to higher oilfield services operating margin and reduced general and administrative costs, offset in part, by an increase in depreciation and amortization expenses. The improvements in operating loss from continuing operations is directly related to the Delta Acquisition.
    • Net loss from continuing operations was $715 in Q4 2024 compared to net income from continuing operations of $219 in Q4 2023. Net loss from continuing operations was impacted by the same items impacting operating loss (as above) with a substantial contribution from the Delta Acquisition combined with reduced interest income, net higher non-cash accretion on contingent payments and notes receivable, fair value related adjustments, reduced income from equity accounted investment in Team Snubbing, and the positive change in foreign exchanges loss in Q4 2023 to gain in Q4 2024.

    Annual 2024 Summary:

    • Revenue from continuing operations increased 209% to $10,470 compared to revenue of $3,384 achieved in 2023. Consistent with the summary of the fourth quarter results, the increase in revenue is primarily attributable to the Delta Acquisition in late Q4 2023.
    • Oilfield services operating margin from continuing operations was $5,207 in the current year quarter compared to $2,058 in the prior year quarter, an increase of $3,149 or 153%, driven by the Delta Acquisition as noted above.
    • EBITDA loss from continuing operations was $527 in the current year compared to EBITDA loss of $2,311 in the prior year. EBITDA from continuing operations benefitted from the Delta Acquisition.
    • Operating loss from continuing operations improved to $2,965 in the year compared to $5,163 in 2023. The decrease in operating loss is attributable to higher oilfield services operating margin, offset in part, by an increase in depreciation and amortization expenses. The improvements in operating loss from continuing operations was directly related to the Delta Acquisition.
    • Net loss from continuing operations was $2,117 compared to $989 in FY 2023. The net loss, despite an improvement of $2,198 in operating income, is primarily due to the 2023 $615 gain on sale of the nitrogen business, a 2023 $915 deferred income tax recovery, $729 lower interest income from cash on guaranteed investment certificates (“GICs”) and term deposits in 2024 with the July 2024 distributed return of capital to shareholders, $1,493 lower equity investment income from Team Snubbing, and the net impact of higher non-cash accretion related expenses.
    • Production Service’s 42% equity investment share of Team Snubbing Services Inc. net loss was $690 for the year ended December 31, 2024, compared to net income of $803 in the comparative period in 2023. Weak international operating results in 2024 combined with costs incurred to restructure the international business in Alaska dragged down Team Snubbing’s results while the Canadian business performed in line with 2023.
    • Cash from operating activities from continuing operations was $184 for the year, an improvement of $699 as compared to the prior year use of $515, driven by strong operational performance from the Delta Acquisition, partially offset by the significant additional general and administrative expenses incurred in 2024 due to the Arrangement.

    Rental services segment

      Three months ended Dec 31,   Years ended Dec 31,  
    (thousands of Canadian Dollars, unless otherwise noted) 2024   2023   2024   2023  
    Revenue – continuing operations 2,443   1,037   10,470   3,384  
    Oilfield services expense – continuing operations (1,300 ) (373 ) (5,263 ) (1,326 )
    Oilfield services operating margin(1) 1,143   664   5,207   2,508  
    Operating margin (%) 46.8 % 64.0 % 49.7 % 60.8 %

    The Rental Services segment consists of High Arctic’s oilfield rental equipment in Canada, centred upon pressure control equipment and equipment supporting the high-pressure stimulation of oil and gas wells in the WCSB.

    The increase in revenue for the three and twelve month periods ended December 31, 2024, versus the comparable periods in 2023 is a direct result of the contribution from the Delta business that was acquired in late 2023. Specifically, Q4 2024 revenues increased by $1,406 or 136% compared to Q3 2023, with annual 2024 revenues increasing by $7,086 or 209% when compared to annual 2023. Operating margins of 46.8% and 49.7% for the three and twelve months ended December 31, 2024, respectively, are approximately 17 percent and 11 percent lower (on a gross basis) than the comparable periods in 2023, respectively. The reduction in operating margins is primarily a result of the Delta Acquisition, as Delta utilizes a combination of owned and third-party rental equipment in its operations, with third-party rental equipment resulting in higher operating expenses.

    Production Services segment
    The Production Services segment operations consist of High Arctic’s idled snubbing units in Colorado, U.S., and its equity investments in the Seh’ Chene Partnership and Team Snubbing Services Inc. in Canada. Though the Seh’ Chene Partnership has experienced limited business activity since the 2022 Canadian sales transactions, the partnership is still active and the Corporation together with its partner will look to reposition its customer offerings and explore other avenues for business activity.

    Team Snubbing Services Inc.
    High Arctic accounts for the results of its 42% equity interest in Team Snubbing using the equity method of accounting, with Team Snubbing’s net earnings recorded as income from equity investments in the respective reporting period. As reported in the Corporation’s 2024 Financial Statements (Note 12), Team Snubbing achieved gross revenues of $26,064 for 2024 versus gross revenues of $21,252 for the comparative period in 2023. This increase in revenues is primarily a result of the consolidation of the results of Team Snubbing International Inc. (“Team International”) for the first time following Team Snubbing’s April 1, 2024, acquisition of control of Team International.

    Team International’s operations experienced lower than anticipated activity levels in the Alaskan market in both Q4 2024, and for the year 2024. In addition, during Q2 2024, Team International incurred additional costs for restructuring management and operational teams. The restructuring initiative consolidated Team International’s workforce, “right sizing” it to the needs of the overall customer base and aligning the service delivery with Team Snubbing’s successful Canadian model. Team Snubbing’s domestic Canadian operations experienced similar activity levels in both Q4 2024 and year-to-date 2024, when compared to the same periods of 2023.

    High Arctic’s proportionate share of Team Snubbing’s net loss for 2024 was $690 compared to an income inclusion of $803 for the comparable period in 2023, representing a decrease in income from equity investment of $1,493. This year-over-year decline in income from equity investment realized in 2024 was primarily due to the results of Team International.

    Liquidity and capital resources

      Three months ended Dec 31,   Years ended Dec 31,  
    (thousands of Canadian Dollars) 2024   2023   2024   2023  
    Cash provided by (used in) continued operations:        
    Operating activities 226   (874 ) 184   (515 )
    Investing activities (310 ) (3,160 ) (997 ) 25,638  
    Financing activities (430 ) 45   (38,659 ) (2,967 )
    Effect of exchange rate changes on cash (469 ) (745 ) 717   (720 )
    Increase (decrease) in cash from continuing operations (983 ) (4,734 ) (38,755 ) 21,436  
    (thousands of Canadian Dollars, unless otherwise noted)     As at
    Dec 31, 2024    		   As at
    Dec 31, 2023    		  
    Current assets     7,221   79,438  
    Working capital(1)     2,692   62,985  
    Working capital ratio(1)     1.6:1   4.8:1  
    Cash and cash equivalents     3,123   50,331  
    Net cash(1)     (230 ) 46,804  


    Operating Activities
    In Q4 2024, cash from operating activities from continuing operations was $226, as compared with an outflow of $874 from operating activities from continuing operations in Q4 2023. Funds from operating activities from continuing operations totaled $530 in the quarter versus funds used of $335 for Q4 2023 (see “Non-IFRS Measures”). In Q4 2024, changes in non-cash operating working capital from continuing operations totaled an outflow of $304 compared to an outflow of $539 in Q4 2023.

    For the year ended 2024, cash from operating activities from continuing operations was $184 as compared to a use of cash of $515 of cash from operating activities from continuing operations in 2023. Funds from operating activities from continuing operations totaled $484 for the year ended 2024, versus a use of funds of $1,292 for 2023.

    Changes in cash from operating activities from continuing operations and funds from operating activities from continuing operations for both the three and twelve months ended December 31, 2024, when compared to the same periods in 2023, were largely the result of the positive impact on the business from the Delta Acquisition. In addition, operating related cash flows in the fourth quarter of 2024 benefitted from reduced G&A costs associated with the Arrangement transaction which was completed in the third quarter of 2024.

    Investing Activities
    During the fourth quarter, the Corporation’s net cash used in investing activities from continuing operations totaled $310 compared to $3,160 for the prior year comparative quarter. For the year ended 2024, net cash used in investing activities from continuing operations totaled $997 compared to an inflow of $25,638 in the prior year. For the fourth quarter of 2024 and YTD 2024, the majority of expenditures incurred related to sustaining and growth capital for the Rental Services Segment combined with investments in information technology and systems required to support the Corporation upon completion of the Arrangement transaction. YTD 2023 investing activities were impacted by proceeds received on the sale of assets (net of costs) of $29,569, offset in part by the Delta Acquisition in Q4 2023 for $3,430.

    Financing Activities
    During the fourth quarter, the Corporation’s net cash used in financing activities from continuing operations was $430 compared to an inflow of $45 in the prior year comparative quarter. For the year ended 2024, net cash used in financing activities from continuing operations was $38,659 compared to $2,967 in the prior year. Cash flow from financing activities for the year ended 2024 was impacted by a one-time $37,842 distribution to shareholders in accordance with the completion of the Arrangement transaction. Excluding the impact of the one-time distribution, cash flows related to finance activities were impacted by the normal course receipts and payments on the Corporation’s existing note receivables, lease liabilities and long-term debt.

    Working Capital
    As at December 31, 2024, the Corporation’s working capital balance was $2,692 compared to $62,985 as at December 31, 2023. The change in working capital is largely due to the spinout of the Corporation’s PNG business combined with the $37,842 return of capital distribution paid during 2024, both of which were completed in connection with the Arrangement transaction.

    Long-term Debt

    (thousands of Canadian Dollars)     As at
    Dec 31, 2024    		   As at
    Dec 31, 2023    		  
    Current     175   175  
    Non current     3,178   3,352  
    Total     3,353   3,527  

    The Corporation has mortgage financing secured by lands and buildings owned by High Arctic located within Alberta, Canada. The mortgage has a remaining initial term of under two years with a fixed interest rate of 4.30% with payments occurring monthly. The mortgage financing contains certain non-financial covenants requiring lenders’ consent including changes to the underlying business. As at December 31, 2024, the Corporation was compliant with all covenants associated with the mortgage financing.

    2025 Earn-Out Shares issued pursuant to the 2023 share purchase agreement with Delta Rental Services Ltd.
    Subsequent to December 31, 2024, the Corporation issued 248,793 shares as part of the settlement of the first-year contingent consideration payable pursuant to the Acquisition of Delta Rental Services Ltd.

    Outlook
    As a result of the successful execution of the Arrangement and corporate reorganization during 2024, High Arctic has transformed itself. After a decade of significant cash flow generation and cash dividends and distribution to shareholders in excess of $105 million, bold measures were taken to adjust for the decade ahead. The 2024 Arrangement provided shareholders with a separate investment holding and future flexibility through a new publicly traded entity containing the former PNG business (TSXV: HOH) plus a tax efficient cash distribution in the form of a $37.8 million return of capital. It also provided shareholders with a continuing investment in a refined, Canadian focused, and reset High Arctic publicly traded entity.

    High Arctic’s Canadian platform is characterized by minimal debt and its continuing operations now consist of:

    • A western Canadian high-margin equipment rental business – centred on pressure ‎control and well stimulation;
    • A minority 42% interest in Canada’s largest oilfield snubbing services business, Team Snubbing; and
    • Two industrial properties, located in Clairmont and Whitecourt, Alberta.

    High Arctic anticipates that its Rental Services segment will continue to generate funds flow from operations commensurate with oil and gas well completion fundamentals in western Canada. The rental business footprint, while still small in scale, was bolstered by the 2023 Delta Acquisition. This acquisition is indicative of the type and structure of accretive investment High Arctic will look to pursue going forward. For 2025, the Rental Services segment is expected to be at a stage whereby operating cash flow covers Corporate segment costs and yields modest funds for organic growth.

    High Arctic is at the early stages of a new chapter in its corporate history. The 2024 transformational developments provide a clean platform to enable a new strategic direction. The Board of Directors is currently undergoing a process to recruit and appoint a new Chief Executive Officer to augment and lead High Arctic’s vision and strategic plan. High Arctic’s current intent is to grow its equipment rentals business and position itself to benefit from upstream energy service activity levels in the western Canadian oil and gas industry. Complementary new service lines with high margin, low headcount and low fixed costs, are also being considered.

    In summary for 2025, the Corporation expects to continue to execute on the initial phases of its strategic business plan, with progress to date being evidenced by selective capital expenditure investments in its rental business throughout 2024. High Arctic continues to assess acquisition targets that are both complimentary and new to existing customer offerings. Potential benefits of an acquisition for High Arctic include enhancing the scope and scale of its operations; the ability to provide a broader customer service offering; and formalizing/augmenting the leadership team for the Corporation.

    Execution of the strategic plan remains opportunistic and is ongoing. The timing and ability to execute on certain underlying objectives, however, has become challenging due to recent divisive global geopolitical developments and resulting global economic uncertainties. These developments include changes and potential changes in global trade policies and tariffs, threats of additional or retaliatory tariffs, and policy shifts as a result of new government leadership in many jurisdictions around the world. The federal election in Canada, set for April 28, 2025, may have a significant impact on long term investment in Canada’s energy industry.

    Western Canadian oil and gas activity levels, despite volatility in underlying commodity prices, have benefited from resurgent Canadian upstream activity to meet, and then sustain, growing oil and natural gas export infrastructure capacity. This includes tidewater access off the west coast of Canada through the 2024 Trans Mountain pipeline expansion, expected 2025 LNG Canada pipeline commencement, and land pipeline expansion to the United States through completed projects such as the Line 3 expansion.

    NON – IFRS MEASURES
    This press release contains references to certain financial measures that do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS”) and may not be comparable to the same or similar measures used by other companies High Arctic uses these financial measures to assess performance and believes these measures provide useful supplemental information to shareholders and investors. These financial measures are computed on a consistent basis for each reporting period and include Oilfield services operating margin, EBITDA (Earnings before interest, tax, depreciation, and amortization), Adjusted EBITDA, Operating loss, Funds flow from operating activities, Working capital and Long-term financial liabilities. These do not have standardized meanings.

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

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

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

    Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Specific forward-looking statements in this press release include, among others, statements pertaining to the following: general economic and business conditions, which will include, among other things, the outlook for the energy industry inclusive of commodity prices, producer activity levels and general energy supply and demand fundamentals that may impact the energy industry as a whole; the impact (if any) of geo-political events, changes in government, changes to tariff’s or related trade policies and the potential impact on the Corporation’s ability to execute its 2025 strategic objectives; fluctuations in interest rates and commodity prices; expectations regarding the Corporation’s ability to manage its liquidity risk; raise capital and manage its debt finance agreements; projections of market prices and costs; factors upon which the Corporation will decide whether or not to undertake a specific course of operational action or expansion; the Corporation’s ongoing relationship with its major customers; the Corporation’s ability to seek and execute accretive acquisitions including the timing thereof and the potential operational and financial benefits; the ability to recruit and retain executive officers and other key personnel; management of general and administrative costs; the maintenance of a strong balance sheet and related financial flexibility; the performance of the Corporation’s investment in Team Snubbing; operational and financial performance of the Corporation’s Canadian rental equipment in 2025; scaling the Canadian business, execution on one or more corporate transactions; and estimated credit risks.

    With respect to forward-looking statements contained in this press release, the Corporation has made assumptions regarding, among other things, its ability to: maintain its ongoing relationship with major customers; successfully market its services to current and new customers; devise methods for, and achieve its primary objectives; source and obtain equipment from suppliers; successfully manage, operate, and thrive in an environment which is facing much uncertainty; remain competitive in all its operations; attract and retain skilled employees; obtain equity and debt financing on satisfactory terms and manage its liquidity risk.

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

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

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

    For further information contact:

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

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

    The MIL Network –

  • MIL-OSI: Data Storage Corporation Reports 2024 Fiscal Year Financial Results and Provides Business Update

    Source: GlobeNewswire (MIL-OSI)

    • Expanded CloudFirst platform in 2024 with 4 new Tier III data centers (UK & Chicago), totaling 10 globally to enhance multi-cloud and continuity services across North America and Europe
    • Completed Flagship Solutions Group integration into CloudFirst, boosting efficiency and cross-sell potential to clients; secured major 2024 contracts across motorsports, insurance, healthcare, and education sectors
    • Net income improved by approximately 71% for the 2024 fiscal year
      compared to 2023 fiscal year and achieved Adjusted EBITDA* of $2.37 million for 2024
    • Ends 2024 with $12.3 million in cash and marketable securities
      and no long-term debt
    • Conference Call to be held today at 11:00 am ET

    MELVILLE, N.Y., March 31, 2025 (GLOBE NEWSWIRE) — Data Storage Corporation (Nasdaq: DTST) (“DSC” and the “Company”), a leading provider of multi-cloud hosting, managed cloud services, disaster recovery, cybersecurity, and IT automation, with direct connection to AWS, Microsoft Azure, and Google Cloud, today provided a business update and reported financial results for the year ended December 31, 2024.

    “We made consistent progress in 2024 — both financially and strategically,” said Chuck Piluso, CEO of Data Storage Corporation. “To start, total revenue for the year increased to $25.4 million, a modest 2% gain from 2023, reflecting a shift from lower-margin, one-time equipment sales toward long term, recurring subscription revenue streams. This strategy builds on our already $39.2 million remaining contract value with disaster recovery and cloud hosting solutions. Importantly, we ended the year with an estimated $22 million Annual Recurring Revenue run rate, demonstrating the scalability and consistency of our subscription-based model with over 80% of our revenue recurring. Furthermore, net income rose approximately 71% to $513 thousand, while Adjusted EBITDA* increased to $2.37 million — both strong indicators of improved margins and greater operational efficiency. Finally, with $12.3 million in cash and marketable securities and no long-term debt, we remain well-positioned to invest in future growth.”

    “In 2024, we also took steps to expand our footprint. Internationally, we launched CloudFirst Europe Ltd. supported by three Tier III data centers in the UK through three strategic partnerships. This expansion positions us to provide our Power platform serving clients across the U.S., Canada, and the UK — we are one of the few single source global providers. To lead our European operations, we appointed Colin Freeman as Managing Director, and early traction in the region has been promising. Domestically, we added a Tier III data center in Chicago, bringing our total to ten global sites while enhancing redundancy and performance across North America.”

    “We also completed the full integration of our Flagship Solutions Group subsidiary into our CloudFirst Technologies subsidiary, which has streamlined operations and improved our ability to deliver integrated cloud and managed services to clients. Key new contracts in 2024 included engagements with a Canadian division of a major motorsports manufacturer, a billion-dollar insurance provider, and a U.S. medical center — each reflecting our strength in delivering compliant, mission-critical high processing infrastructure solutions.”

    “Overall, 2024 was a year of meaningful execution across all fronts. We advanced our shift to a high-margin, recurring revenue model, expanded into new international markets, strengthened our infrastructure, and delivered improved financial results. These accomplishments reinforce our long-term vision and position us to scale further in 2025 and beyond as demand for compliant, enterprise-grade cloud solutions continues to rise globally.”

    Conference Call

    The Company plans will host a conference call at 11:00 a.m. Eastern Time on Monday, March 31, 2025, to discuss the Company’s financial results for the 2024 fiscal year which ended December 31, 2024, as well as corporate progress and other developments.

    The conference call will be available via telephone by dialing toll-free 877-407-9219 for U.S. callers or for international callers +1-201-689-8852. A webcast of the call may be accessed at  DSC 2024 Fiscal Year Earnings Call or on the Company’s News & Events section of the website,  www.dtst.com/news-events.

    A webcast replay of the call will be available on the Company’s website (www.dtst.com/news-events) through September 30, 2025. A telephone replay of the call will be available approximately three hours following the call, through April 7, 2025, and can be accessed by dialing 877-660-6853 for U.S. callers or + 1-201-612-7415 for international callers and entering conference ID: 13751220. 

    About Data Storage Corporation

    Data Storage Corporation (Nasdaq: DTST) through its subsidiaries is a leading provider of multi-cloud hosting, fully managed cloud services, disaster recovery, cybersecurity, IT automation, and voice & data solutions. Recognizing that data migration is a critical step in transitioning from on-premises systems to the cloud, DSC provides comprehensive migration services to ensure seamless, secure, and efficient data transfer, minimizing downtime and optimizing performance.

    Through its owned and operated cloud platform, built on IBM Power Cloud infrastructure, DSC delivers high-performance, scalable, and secure cloud solutions with interoperability across its infrastructure partners, AWS, Microsoft Azure, and Google Cloud.

    With data centers supporting its CloudFirst platform deployments across the United States, Canada, and the United Kingdom, DSC provides mission-critical solutions to a diverse clientele, including Fortune 500 companies, government agencies, educational institutions, and healthcare organizations.

    As a leader in the multi-billion-dollar cloud hosting and business continuity market, DTST is recognized for its expertise in cloud infrastructure, IT modernization, and data migration, enabling clients to transition to the cloud with confidence and operational continuity.

    For more information, please visit www.dtst.com or follow us on X @DataStorageCorp.

    *Adjusted EBITDA is a non-GAAP measure. Please refer to the Company’s financial disclosures for a reconciliation to the most directly comparable GAAP measure.

    Safe Harbor Provision

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby. Forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and include statements regarding being well-positioned to invest in future growth, the Company’s Power platform serving clients across the U.S., Canada and the UK and the Company’s recent accomplishments positioning it to scale further in 2025 and beyond as demand for compliant, enterprise-grade cloud solutions continues to rise globally, and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, the Company’s ability to grow its presence in Europe, the Company being well-positioned to invest in future growth, the Company’s successful transition from on-premises systems to the cloud, and DSC delivering high-performance, scalable, and secure cloud solutions with interoperability across its infrastructure partners. These risks should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it was initially made. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or otherwise.

    Contact:
    Crescendo Communications, LLC
    212-671-1020
    DTST@crescendo-ir.com 

     DATA STORAGE CORPORATION AND SUBSIDIARIES  
    CONSOLIDATED BALANCE SHEETS
                     
        December 31, 2024   December 31, 2023
    ASSETS                
    Current Assets:                
    Cash   $ 1,070,097     $ 1,428,730  
    Accounts receivable (less allowance for credit losses of $31,472   and $7,915 in 2024 and 2023, respectively)     2,225,458       1,259,972  
    Marketable securities     11,261,006       11,318,196  
    Prepaid expenses and other current assets     859,502       513,175  
    Total Current Assets     15,416,063       14,520,073  
                     
    Property and Equipment:                
    Property and equipment     9,598,963       7,838,225  
    Less—Accumulated depreciation     (6,159,307 )     (5,105,451 )
    Net Property and Equipment     3,439,656       2,732,774  
                     
    Other Assets:                
     Goodwill     4,238,671       4,238,671  
     Operating lease right-of-use assets     575,380       62,981  
     Other assets     183,439       48,436  
     Intangible assets, net     1,427,006       1,698,084  
    Total Other Assets     6,424,496       6,048,172  
                     
    Total Assets   $ 25,280,215     $ 23,301,019  
                     
    LIABILITIES AND STOCKHOLDERS’ DEFICIT                
    Current Liabilities:                
    Accounts payable and accrued expenses   $ 3,183,379     $ 2,608,938  
    Deferred revenue     212,390       336,201  
    Finance leases payable     17,641       263,600  
    Finance leases payable related party     33,879       235,944  
    Operating lease liabilities short term     98,860       63,983  
    Total Current Liabilities     3,546,149       3,508,666  
                     
    Operating lease liabilities     523,070       —  
    Finance leases payable     —       17,641  
    Finance leases payable related party     —       20,297  
    Deferred Tax Liability      39,031       —  
    Total Long-Term Liabilities     562,101       37,938  
                     
    Total Liabilities     4,108,250       3,546,604  
                     
    Commitments and contingencies (Note 7)                
                     
    Stockholders’ Equity:                
    Preferred stock, par value $.001; 10,000,000 shares authorized; 1,401,786 designated as Series A Preferred Stock, par value $.001; 0 shares issued and outstanding on December 31, 2024 and 2023     —       —  
    Common stock, par value $.001; 250,000,000 shares authorized; 7,045,108 and 6,880,460 shares issued and outstanding on December 31, 2024 and 2023, respectively     7,045       6,881  
    Additional paid in capital     40,417,813       39,490,285  
    Accumulated deficit     (18,982,589 )     (19,505,803 )
    Accumulated other comprehensive loss     (23,214 )     —  
    Total Data Storage Corporation Stockholders’ Equity     21,419,055       19,991,363  
    Non-controlling interest in consolidated subsidiary     (247,090 )     (236,948 )
    Total Stockholders’ Equity     21,171,965       19,754,415  
    Total Liabilities and Stockholders’ Equity   $ 25,280,215     $ 23,301,019  
    DATA STORAGE CORPORATION AND SUBSIDIARIES  
    CONSOLIDATED STATEMENTS OF INCOME
                     
        Year Ended December 31,
        2024   2023
             
    Sales   $ 25,371,303     $ 24,959,576  
                     
    Cost of sales     14,267,936       15,383,251  
                     
    Gross Profit     11,103,367       9,576,325  
                     
    Selling, general and administrative     11,023,476       9,744,736  
                     
    Income (loss) from Operations     79,891       (168,411 )
                     
    Other Income (Expense)                
    Interest income     592,819       542,229  
    Interest expense     (119,008 )     (74,502 )
    Loss on disposal of equipment     (1,599 )     —  
    Total Other Income     472,212       467,727  
                     
    Income before provision for income taxes     552,103       299,316  
                     
    Provision for income taxes     (39,031 )     —  
                     
    Net Income     513,072       299,316  
                     
    Loss in Non-controlling interest in consolidated subsidiary     10,142       82,259  
                     
    Net Income Attributable to Common Stockholders   $ 523,214     $ 381,575  
                     
    Earnings per Share – Basic   $ 0.08     $ 0.06  
    Earnings per Share – Diluted   $ 0.07     $ 0.05  
    Weighted Average Number of Shares – Basic     6,931,399       6,841,094  
    Weighted Average Number of Shares – Diluted     7,347,779       7,424,228  
     DATA STORAGE CORPORATION AND SUBSIDIARIES  
    CONSOLIDATED STATEMENTS OF CASH FLOWS 
                     
        Year Ended December 31,
        2024   2023
    Cash Flows from Operating Activities:                
    Net income   $ 513,072     $ 299,316  
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization     1,350,238       1,301,594  
    Stock based compensation     794,687       506,205  
    Change in expected credit losses     45,394       119,524  
    Loss on disposal of equipment     1,599       —  
    Changes in Assets and Liabilities:                
    Accounts receivable     (1,010,880 )     2,123,340  
    Other assets     (135,003 )     —  
    Prepaid expenses and other current assets     (347,717 )     71,491  
    Right of use asset     135,559       163,520  
    Accounts payable and accrued expenses     567,930       (598,638 )
    Deferred revenue     (123,811 )     55,141  
    Deferred tax liability     39,031       —  
    Operating lease liability     (90,010 )     (168,446 )
    Net Cash Provided by Operating Activities     1,740,089       3,873,047  
    Cash Flows from Investing Activities:                
    Capital expenditures     (1,800,364 )     (1,545,017 )
    Purchase of marketable securities     (842,810 )     (2,307,228 )
    Sale of marketable securities     900,000       —  
    Net Cash Used in Investing Activities     (1,743,174 )     (3,852,245 )
    Cash Flows from Financing Activities:                
    Repayments of finance lease obligations related party     (222,362 )     (520,624 )
    Repayments of finance lease obligations     (263,600 )     (359,869 )
    Cash received for the exercise of stock options     133,005       1,699  
    Net Cash Used in Financing Activities     (352,957 )     (878,794 )
                     
    Effect of exchange rates on cash     (2,591 )     —  
                     
    Decrease in Cash     (358,633 )     (857,992 )
                     
    Cash, Beginning of Year     1,428,730       2,286,722  
                     
    Cash, End of Year   $ 1,070,097     $ 1,428,730  
    Supplemental Disclosures:                
    Cash paid for interest   $ 23,549     $ 65,057  
    Cash paid for income taxes   $ —     $ —  
    Non-cash investing and financing activities:                
    Assets acquired by operating lease   $ 647,958     $ —  
                     

    The following table shows the Company’s reconciliation of net income (loss) to adjusted EBITDA for the years ended December 31, 2024, and 2023:

    For the year ended December 31, 2024
                         
        CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
                         
    Net income (loss)   $ 3,562,622     $ (290,219 )   $ (93,514 )   $ (2,665,817 )   $ 513,072  
                                             
    Non-GAAP adjustments:                                        
    Depreciation and amortization     1,348,534       79       850       775       1,350,238  
    Sales tax settlement     142,021       —       —       —       142,021  
    Interest income     —       —       —       (592,819 )     (592,819 )
    Interest expense     119,008       —       —       —       119,008  
    Provision for income tax     —       —       —       39,031       39,031  
    Stock-based compensation     295,688       —       25,991       473,008       794,687  
                                             
    Adjusted EBITDA   $ 5,467,873     $ (290,140 )   $ (66,673 )   $ (2,745,822 )   $ 2,365,238  

      

    For the year ended December 31, 2023
                         
        CloudFirst Technologies   CloudFirst Europe Ltd.   Nexxis Inc.   Corporate   Total
                         
    Net income   $ 2,625,879     $ —     $ (229,377 )   $ (2,097,186 )   $ 299,316  
                                             
    Non-GAAP adjustments:                                        
    Depreciation and amortization     1,300,237       —       705       652       1,301,594  
    Interest income     —       —       —       (542,229 )     (542,229 )
    Interest expense     74,502       —       —       —       74,502  
    Stock-based compensation     162,004       —       17,603       326,598       506,205  
                                             
    Adjusted EBITDA   $ 4,162,622     $ —     $ (211,069 )   $ (2,312,165 )   $ 1,639,388  

    The MIL Network –

  • MIL-OSI: Investview, Inc. (“INVU”) Reports Full Year 2024 Financial Results, Operational Highlights and a Year-End Message from the CEO

    Source: GlobeNewswire (MIL-OSI)

    $55.4M in Gross Revenue | $8.3M in Net Cash Provided by Operating Activities | Strong Balance Sheet |Share Repurchase Program and Strategic Expansion- for the year ended December 31, 2024

    Haverford, PA, March 31, 2025 (GLOBE NEWSWIRE) — Investview, Inc. (OTCQB: INVU), a diversified financial technology services company that offers multiple business units across key sectors, including a financial education division offering tools, products and content through a global network of independent distributors; a manufacturing division focused on proprietary aesthetics, health, nutrition, & cognitive wellness products for wholesale and retail markets, with strategic plans for global expansion; an early-stage online trading platform that intends to offer self-directed retail brokerage services; and a business unit that owns and operates a sustainable blockchain business focused on bitcoin mining, today reported its full-year 2024 financial results and shared highlights of key operational progress, strategic milestones, and forward-focused initiatives.

    Summary Consolidated Financial Highlights:

    Results of Operations and Net Cash Provided by Operating Activities – Twelve Months Ended December 31, 2024 vs December 31, 2023

    • Gross Revenue (a Non-GAAP measure) decreased 24.0% to $55.4 million for the twelve months ended December 31, 2024, as compared to $72.9 million for the comparable prior year period.
    • Net Revenue decreased 22.9% to $52.4 million for the twelve months ended December 31, 2024, as compared to $67.9 million for the comparable prior year period.
    • Net income from operations decreased 63.2% to $1.7 million for the twelve months ended December 31, 2024, as compared to $4.6 million for the comparable prior year period.
    • Net cash provided by operating activities increased 36.9%, reaching $8.3 million for the twelve months ended December 31, 2024, as compared to $6.1 million for the comparable prior year period, reflecting the results of our disciplined business model.

    Balance Sheet Data-December 31, 2024, vs December 31, 2023

    • Cash and cash equivalents increased by 7.4%, reaching $22.5 million for twelve months ended December 31, 2024, an increase of $1.6 million from $20.9 million at December 31, 2023, even after having repurchased $3.4 million of common stock and $1.1 million for the acquisition of substantially all the assets of Renu Laboratories Inc. during 2024. Our cash balances provide us with working capital that we can direct towards our strategic initiatives and growth investments.
    • Total assets at December 31, 2024 were $31.6 million, a decrease of $2.1 million from $33.7 million of assets at December 31, 2023, mainly due to non-cash depreciation and impairment charges relating to our mining servers and a decrease in deposits with vendors, partially offset by an increase our cash balance, an increase in Bitcoin holdings and the addition of a goodwill balance related to the acquisition of substantially all the assets of Renu Laboratories Inc.
    • Working Capital Balance increased by 30.8% to $16.2 million at December 31, 2024, an increase of $3.8 million from December 31, 2023.
    • Current Ratio is strong, up 14.3%, reaching 2.32 at December 31, 2024, an increase of 0.29 from our previous current ratio of 2.03 at December 31, 2023, confirming our strong balance sheet position.
    • Outstanding debt decreased by 10.0%, to $3.2 million at December 31, 2024, a decrease of $0.4 million, from the $3.6 million of debt at December 31, 2023, with total liabilities also decreasing by $0.5 million during the comparative period.
    • Total stockholders’ equity at December 31, 2024 was $17.2 million, a decrease of $1.6 million or 8.5% from the $18.8 of stockholders’ equity at December 31, 2023, mainly due to the repurchase of common shares during 2024.
    • Common stock issued and outstanding decreased by approximately 20.3% to 1.859 billion shares at the end of December 31, 2024, a decrease of 474 million shares from 2.333 billion shares at December 31, 2023, primarily attributable to strategic stock repurchases aimed at further reducing outstanding share count in an effort to enhance shareholder value.

    Comments on our industry segments and business units

    Our Financial Education and Technology Segment

    iGenius recognized net revenue for the twelve months ending December 31, 2024, of $47.1 million. This reflects a decrease of 16.8% or $9.5 million less than the comparable prior year period. The decrease was largely attributable to a combination of shifts in consumer behavior and demand following the COVID-19 pandemic as individuals re-evaluated their spending priorities, lifestyle habits, and engagement preferences, as well as broader global macroeconomic changes that have caused a general slowdown in direct sales and home-based business. Despite the drop in revenue, we are hopeful that over time we can regain some of the ground that we have lost as we try to build our sales network organically and develop additional product and service offerings that we offer into our sales network. We firmly believe our direct selling model has broad scalable potential beyond financial education. As part of our strategic vision, we expect to be able to expand the product suite available through our sales network—particularly through the introduction of offerings from our myLife Wellness- health, beauty, and wellness division.

    Our Blockchain Technology and Crypto Mining Products and Services Segment

    SAFETek recognized net revenue for the twelve months ending December 31, 2024, of $5.2 million. This reflects a decrease of 54.2% or $6.2 million less than the comparable prior year period. The decrease in net revenue was the result of Bitcoin halving, which cut block rewards by 50%, an increase in network difficulty over 29%, and a government-mandated energy curtailment resulting from low hydroelectric reservoir levels in our host country.

    Despite the challenging environment in which we now operate, in 2024, SAFETek produced 85.92 Bitcoin, navigating industry-wide headwinds including the April halving event, a sharp rise in network difficulty, and a government energy curtailment. While these factors impacted output, they also helped reduce power costs, turning a challenge into a cost-management initiative that we expect will serve us well over time.

    Further, in 2024, we implemented strategic enhancements, including the retirement of older miners, deployment of next-gen ASICs, and consolidation of operations, significantly lowering our hash cost and strengthening our market position. As a result, we remain debt-free on all equipment purchases and maintain flexibility with our strong balance sheet, as we evaluate future expansion opportunities.

    Despite the challenging environment, our long-term view of BTC mining remains cautiously optimistic, and we are maintaining a disciplined and strategic posture while preparing for future expansion should the economic environment return to prior levels.

    Our Manufacturing and Development of Health, Beauty and Wellness Products Segment

    In October 2024, we entered the over-the-counter health, beauty, and wellness market when our subsidiary, myLife Wellness Company (“myLife Wellness”), acquired the business of Renu Laboratories, Inc. (“Renu Labs”), a contract developer and manufacturer, producing both proprietary and non-proprietary health, beauty, and wellness products for third-party clients. This move creates the potential for us to extend our platform into consumer verticals, with a focus on aesthetics, nutrition, and cognitive health. Since the acquisition, we’ve strategically accelerated investment in Renu Labs’ technology, equipment, and talent, resulting in measurable improvements in production and operational efficiency.

    myLife Wellness will serve as both the marketing and e-commerce platform engine for the products developed and manufactured by Renu Labs, with a focus on aesthetics, health, nutrition, and cognitive wellness. These products are expected to be distributed through both retail and wholesale channels. In addition to operating as a standalone platform, myLife Wellness also expects to be able to leverage retail, wholesale, and direct-to-consumer channels through collaboration with our affiliated business platform, iGenius, to promote and offer myLife wellness products to its global membership base and its customers, expanding reach and creating new revenue opportunities.

    We plan to further the development and growth of both Renu Labs and myLife Wellness in 2025, as well as establishing our presence in the health and wellness industry and supporting our broader global growth objectives.

    Our Financial Services Initiatives

    March 2024 marked a major milestone in our fintech initiatives with the acquisition of Opencash Securities LLC—an early-stage registered broker-dealer. Although it has not yet achieved commercial operations, it is our objective to develop Opencash as a modern, mobile-first platform for low-cost, and commission-free trading of stocks, ETFs, and options, targeting accessibility and simplicity for retail investors worldwide. Currently, Opencash is progressing through clearing integration, infrastructure buildout, and testing in preparation for launch.

    Our Opencash initiative is intended to complement our proprietary MPower Trading Systems- Prodigio trading engine, acquired in 2021, and once fully developed, may be expected to yield two synergistic platforms: Opencash for everyday users and OpencashPro for advanced traders. Together, they will offer a seamless, data-driven trading experience.

    Message from Investview’s CEO – Victor Oviedo

    2024 was a transformative year for Investview—one marked by strategic discipline and a focused commitment to delivering long-term shareholder value. Aligned with our capital allocation priorities, we successfully reduced our outstanding debt by 10%, or $0.4 million, bringing it to $3.2 million by year-end. Simultaneously, we advanced our shareholder-focused strategy through a significant reduction in common stock by repurchasing and retiring approximately 474 million shares, a 20.3% decrease in issued and outstanding shares, at a blended 53% discount to the market.

    These actions reflect our continued focus on building intrinsic value while enhancing capital structure efficiency. Importantly, even after executing these initiatives, we concluded the year with a strong cash position of $22.5 million, providing us with both the resilience and flexibility to pursue appropriate investment opportunities, should they arise, pursue strategic acquisitions, and fund the continued development of our platforms.

    Further, the Company recently announced in March 2025 the launch of a $1 million share repurchase program, reaffirming its confidence in the long-term value of its business. This initiative reflects management’s belief that the current market price of its common stock does not accurately reflect the Company’s underlying strength and growth potential.

    Despite a challenging macroeconomic environment and industry headwinds, Investview continues to demonstrate resilience, adaptability, and long-term vision across its dynamic portfolio of business units—including financial education, wellness product manufacturing, sustainable blockchain mining, and a soon-to-launch online trading platform.

    As we look to the future, our aspirations are clear: scale our highest-potential business segments, maintain financial strength, and unlock new sources of value across our ecosystem.

    Entering the Wellness Market with myLife Wellness and Renu Labs

    Our entry into the over-the-counter health, beauty, and wellness market reflects a strategic step in broadening our platform and aligning with growing consumer demand in key wellness categories. This expansion began when our subsidiary, myLife Wellness Company (“myLife Wellness”), acquired the business of Renu Laboratories, Inc. (“Renu Labs”), a contract developer and manufacturer of both proprietary and non-proprietary health, beauty, and wellness products for third-party clients.

    The acquisition provides a pathway for us to extend into consumer verticals with a focus on aesthetics, nutrition, and cognitive health areas that complement our broader long-term growth objectives.

    In addition to myLife Wellness operating as a standalone platform, myLife Wellness also expects to be able to leverage retail, wholesale, and direct-to-consumer channels through collaboration with our affiliated business platform, iGenius, to promote and offer myLife wellness products to its global membership base and its customers, expanding reach and creating new revenue opportunities.

    Since the acquisition, we have made targeted investments in Renu Labs’ technology, equipment, and team. These enhancements have already contributed to improved production capacity and operational efficiency, laying a solid foundation for continued growth and development in this space.

    Positioned for a Breakout Year in 2025 and Beyond

    As we move into 2025, Investview is looking to accelerate growth and drive innovation across all verticals. Our key priorities include:

    • Launching the Opencash trading platform
    • Expanding iGenius’ global distribution network
    • Investing in new products and technology
    • Pursuing strategic and synergistic acquisitions
    • Maintaining a strong cash position and balance sheet discipline
    • We remain cautiously optimistic as to the long-term value of Bitcoin mining, and we intend to take deliberate steps to stabilize operations until favorable conditions return to support the business expansion.

    We enter 2025 with a clear vision, and a strong sense of purpose. Our leadership team is aligned around innovation, execution, and long-term value creation. With $22.5 million in cash, reduced debt, and a motivated team, we are anxious to pursue new opportunities and unlock shareholder value.”

    At Investview, we are not just building for today—we are shaping a future defined by possibility. We believe the best is yet to come.

    About Investview, Inc.

    Investview, Inc., a Nevada corporation, operates a financial technology (FinTech) services company, offering several different lines of business, including a Financial Education and Technology business that delivers a series of products and services involving financial education, digital assets and related technology, through a network of independent distributors; and a Blockchain Technology and Crypto Mining Products and Services business, including leading-edge research, development and FinTech services involving the management of digital asset technologies with a focus on Bitcoin mining and the new generation of digital assets. In addition, we are planning to create a Brokerage and Financial Markets business within the investment management and brokerage industries by, among others, commercializing on a proprietary trading platform we acquired in September 2021. For more information on Investview, please visit: www.investview.com.

    About Opencash Securities LLC

    Brokerage services are provided by Opencash Securities LLC, a member of FINRA and SIPC. Options involve risk and are not suitable for all investors. Please review Characteristics and Risks of Standardized Options prior to engaging in options trading. Opencash Securities LLC does not provide investment advice. Please consult with investment, tax, or legal professionals before making any investment decisions. All investments involve risks, including the possible loss of capital. Check the background of this investment professional on BrokerCheck. Opencash Securities LLC is a wholly-owned subsidiary of Investview, Inc.

    Forward-Looking Statement

    All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies, and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. These forward-looking statements are based on Investview’s current beliefs and assumptions and information currently available to Investview and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Our forward-looking statements expect that we will ultimately be able to develop retail brokerage operations at Opencash, although it is currently in the pre-revenue and early stage of its operations. We plan to do this by, among others, investing the funds we believe are necessary to develop the infrastructure necessary to achieve retail operations. This includes, among others, the on-boarding of customer support personnel and software developers, the development and implementation of a marketing strategy, the securing of necessary securities clearing arrangements, and the continued development of the online Opencash trading platform and completing its integration with the proprietary algorithmic trading platform we acquired in September 2021. Despite our best efforts, there can be no assurance that we will be able to achieve these objectively on a timely basis, if at all, as the development of an early-stage securities brokerage business involves inherent regulatory and operational risks and uncertainties. Our forward-looking statements also assume that the curtailment in our hydroelectric energy supply will be addressed within the near term and will not continue to have a long-term negative impact on our Bitcoin mining operations, although we are unable to predict when our mining levels will return to pre-2024 levels. More information on potential factors that could affect Investview’s financial results is included from time to time in Investview’s public reports filed with the U.S. Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. The forward-looking statements made in this release speak only as of the date of this release, and Investview, Inc. assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.

    Investor Relations
    Contact: Ralph R. Valvano
    Phone Number: 732.889.4300
    Email: pr@investview.com

    Reconciliation of Gross Revenue to Net Revenue (unaudited)

    As used in this report, Gross Revenues are not a measure of financial performance under United States Generally Accepted Accounting Principles (“GAAP”). Gross Revenues are presented as they are used by management to understand the total revenue before certain items such as refunds, incentives, credits, chargebacks and amounts paid to third party providers. The non-GAAP Gross Revenue measure is a supplement to the GAAP financial information. A reconciliation between Gross Revenue (non-GAAP) and Net Revenue is presented in the table below.

    Gross Revenue (non-GAAP) to Net Revenue reconciliation for the twelve months ended December 31, 2024 is as follows:

        Membership
    revenue    		     Mining revenue     Health and wellness product sales     Other Revenue     Total  
    Gross billings/receipts   $ 50,086,839     $ 5,186,606     $ 110,856     $ 23,404     $ 55,407,705  
    Refunds, incentives, credits, and chargebacks     (3,025,549 )     –       (185 )     –       (3,025,734 )
    Net revenue   $ 47,061,290     $ 5,186,606     $ 110,671     $ 23,404     $ 52,381,971  

    Gross Revenue (non-GAAP) to Net Revenue reconciliation for the twelve months ended December 31, 2023 is as follows:

        Membership
    Revenue    		     Cryptocurrency Revenue     Mining Revenue     Miner Repair Revenue     Total  
    Gross billings/receipts   $ 60,516,836     $ 990,785     $ 11,348,156     $ 23,378     $ 72,879,156  
    Refunds, incentives, credits, and chargebacks     (4,480,784 )     –       –       –       (4,480,784 )
    Amounts paid to supplier     –       (477,500 )     –       –       (477,500 )
    Net revenue   $ 56,036,052     $ 513,285     $ 11,348,156     $ 23,378     $ 67,920,871  

    The MIL Network –

  • MIL-OSI: Tax Season Scams: Regula Unveils the Tax Fraud Awareness Guide to Help Americans Safeguard Their Identity

    Source: GlobeNewswire (MIL-OSI)

    RESTON, Va., March 31, 2025 (GLOBE NEWSWIRE) — Tax season is a prime time for criminals to exploit weak identity security and commit fraud. Millions of Americans still rely on their Social Security Number (SSN) to file taxes, leaving them vulnerable. To protect taxpayers, Regula has launched the Tax Fraud Awareness Guide.

    Image: Tax season is a prime opportunity for fraudsters, and it’s important to understand the risks a taxpayer faces.

    To help individuals and organizations stay ahead of evolving threats, Regula, global developer of identity verification solutions, has launched the Tax Fraud Awareness Guide – a comprehensive kit for recognizing scams, securing identities, and understanding why SSN verification alone is no longer enough.

    What can go wrong?

    U.S. residents have seen a notable rise in “smishing” scams – SMS text messages impersonating the IRS to steal personal and financial information. While this trend, which became particularly prominent in late 2020, continues to threaten taxpayers, it’s far from the only scam they face.

    The most common threats include:

    • Identity Theft – Scammers use stolen personal information to submit tax returns in someone else’s name. (Read more: Identity Theft & How to Prevent It)
    • Synthetic Identity Fraud – Criminals create fake identities using stolen SSNs, filing fraudulent tax returns and claiming refunds. (Read more: The Weakness of SSNs)
    • Account Takeover – Hackers gain control of IRS or tax software accounts to manipulate filings and reroute refunds. (Read more: How Account Takeovers Happen)

    Why SSNs are failing as a security measure

    The SSN was never designed as a secure identity verification method, yet it remains central to tax filings. This has led to increased fraud risks, including:

    • SSNs Are Easily Stolen – Data breaches have exposed millions of SSNs, making them readily available on the dark web.
    • SSNs Are Static – Unlike passwords, SSNs can’t be changed, meaning once they’re compromised, they remain a lifelong risk.
    • SSN-Based Verification is Outdated – Many tax-related services still rely on SSNs for authentication, making it easy for criminals to assume a stolen identity.

    Beyond SSNs: How Identity Verification (IDV) Strengthens Tax Security

    “With modern fraud tactics evolving rapidly, relying on SSNs alone is no longer enough to safeguard taxpayers,” said Henry Patishman, Executive Vice President, Identity Verification Solutions at Regula. “For example, recent SSA’s plans to strengthen identity proofing measures are a step in the right direction, but more needs to be done. Financial institutions, tax agencies, and businesses must embrace advanced identity verification solutions that go beyond static credentials.”

    Advanced Identity Verification (IDV) solutions offer a range of tools to safeguard personal and financial data. Biometric verification, including facial recognition or document authentication, confirms real identities. Multi-layered security combines ID document verification, biometric checks, and fraud detection to prevent identity misuse.

    Proactive Security for Taxpayers

    Regula’s Tax Fraud Awareness Guide is designed to help individuals and organizations recognize and prevent fraud, going beyond SSN-based security to offer actionable solutions. The guide includes:

    • An In-Depth Look at Tax Scams – How fraudsters use SSNs, fake tax documents, and phishing schemes to steal refunds.
    • Why SSN Verification is No Longer Enough – Data breaches have exposed millions of SSNs, making them readily available on the dark web. (Read more: The Weakness of SSNs)
    • What is the solution? – How modern identity verification (IDV) solutions provide stronger protection (Read more: How to Build an IDV System)
    • Interactive Tax Fraud Bingo – A fun, educational tool to help taxpayers recognize common scam tactics.

    Regula’s Tax Fraud Awareness Guide is available for free. Check the full Guide here.

    About Regula

    Regula is a global developer of forensic devices and identity verification solutions. With our 30+ years of experience in forensic research and the most comprehensive library of document templates in the world, we create breakthrough technologies for document and biometric verification. Our hardware and software solutions allow over 1,000 organizations and 80 border control authorities globally to provide top-notch client service without compromising safety, security, or speed. Regula has been repeatedly named a Representative Vendor in the Gartner® Market Guide for Identity Verification.

    Learn more at www.regulaforensics.com.

    Contact:
    Kristina – ks@regulaforensics.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/eba84af5-c9c4-46bf-be21-a805611eb9cf

    The MIL Network –

  • MIL-OSI: BOS Reports Financial Results for the Fourth Quarter and Full Year 2024

    Source: GlobeNewswire (MIL-OSI)

    Net Income Rises 14.7% Year-Over-Year on Increased Gross Margin, Efficient Operations

    Provides Initial 2025 Outlook for Further 10% Growth in Sales and Net Income

    RISHON LE ZION, Israel, March 31, 2025 (GLOBE NEWSWIRE) — BOS Better Online Solutions Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC) reported its financial results for the fourth quarter and full year 2024.

    Year 2024 Financial Highlights:

    • Revenues declined by 9.7% to $39.9 million from $44.2 million in 2023. Revenue results in 2023 benefitted from one-time post-COVID restocking activities at multiple customers.
    • Gross profit margin increased to 23.3% compared to 20.8% in the preceding year, demonstrating improved operating efficiency.
    • Operating profit decreased to $1.4 million from $2.5 million in 2023, due to $1.2 million non-cash impairment of goodwill and other intangible assets in 2024.
    • EBITDA increased to $3.25 million compared to $3.06 million in 2023.
    • Financial expenses decreased to $139,000 from $441,000 in the prior year.
    • Non cash income from taxes amounted to $1 million in year 2024.
    • Net income increased by 14.7% to $2.3 million, or $0.40 per basic share, compared to $2.0 million, or $0.35 per basic share, in the year 2023.

    Fourth Quarter 2024 Financial Highlights:

    • Revenues declined by 4.6% to $10.4 million from $10.9 million in the fourth quarter of 2023.
    • Gross profit margin increased to 22.9% compared to 19.2% in the comparable quarter last year.
    • Operating loss amounted to $616,000 compared to an operating income of $400,000 in the fourth quarter of 2023, due to a $1.2 million non-cash impairment of goodwill and other intangible assets included in the results of the fourth quarter of 2024.
    • EBITDA amounted to $715,000 compared to $562,000 in the fourth quarter of 2023.
    • Financial income amounted to $99,000 compared to financial expenses of $31,000 in the fourth quarter of 2023.
    • Non cash income from taxes in the amount of $1 million in the fourth quarter of 2024.
    • Net income amounted to $485,000 or $0.08 per basic share compared to $427,000 or $0.07 per basic share in the fourth quarter of 2023.

    Eyal Cohen, BOS’ CEO, stated: “BOS improved profitability on an operating basis across all of our business units in 2024, leveraging our favorable sales mix and lean cost structure to increase gross margin to 23.3% and net income to $2.3 million. That momentum has carried into 2025 as we continue to scale the business, manage costs effectively and drive operating leverage. We are starting the year with a 35% increase in backlog, at $27 million as of December 31, 2024, compared to $20 million as of December 31, 2023, plus significant new defense customer orders announced in the first quarter to date. As a result, our 2025 outlook calls for a 10% year-over-year increase in both sales and net income to $44 million of revenues and $2.5 million of net income.

    “BOS’ growth strategy remains focused on deepening our penetration in the defense sector, where we have strong customer relationships at both the primary and subcontractor levels. We expect robust ordering patterns across the strategic defense industry to continue in 2025, and we are progressing our sales strategy to enter new overseas markets by leveraging our relationships with Israeli defense customers that operate globally. We also continue to seek accretive strategic opportunities where we can deploy our strong balance sheet to expand BOS’ capabilities and reach in the growing global defense market.”

    Board Updates
     On March 19, 2025, BOS announced the appointment of Osnat Gur, an independent director since 2021, as Board Chair and the appointment of Avi Dadon as a new independent director.

    Ms. Gur brings extensive management and leadership experience to BOS, having served as CEO of a global B2B marketing agency, an RFID technology company, and a dietary supplements manufacturer over the course of her career. She also serves as a board director in multiple Israeli companies.

    Mr. Dadon brings decades of experience in military leadership, defense procurement, supply chain management and logistics to BOS. He served as Head of Procurement for the Israeli Ministry of Defense from 2017 to 2023 and is a retired Colonel in the Israeli Defense Forces (IDF), with 28 years of military service.

    “We are excited to congratulate Osnat in her new role as Board Chair, and look forward to working with her to plan BOS’s next chapter of growth and earnings as we continue to execute our growth strategy,” said Cohen. “We also welcome Avi to the board and look forward to leveraging his decades of experience with the IDF and Ministry of Defense procurement to support BOS’s continued success.” 

    About BOS Better Online Solutions Ltd.
    BOS integrates cutting-edge technologies to streamline and enhance supply chain operations across three specialized divisions:

    • Intelligent Robotics Division: Automates industrial and logistics inventory processes through advanced robotics technologies, improving efficiency and precision.
    • RFID Division: Optimizes inventory management with state-of-the-art solutions for marking and tracking, ensuring real-time visibility and control.
    • Supply Chain Division: Integrates franchised components directly into customer products, meeting their evolving needs for developing cutting-edge products.

    For additional information, contact:
    Matt Kreps, Managing Director
    Darrow Associates
    +1-214-597-8200
    mkreps@darrowir.com

    Eyal Cohen, CEO
    +972-542525925
    eyalc@boscom.com

    Use of Non-GAAP Financial Information
    BOS reports financial results in accordance with US GAAP and herein provides some non-GAAP measures. These non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. These non-GAAP measures are intended to supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measures presented to evaluate and manage the Company’s operations internally. The Company is also providing this information to assist investors in performing additional financial analysis that is consistent with financial models developed by research analysts who follow the Company. The reconciliation set forth below is provided in accordance with Regulation G and reconciles the non-GAAP financial measures with the most directly comparable GAAP financial measures.

    Safe Harbor Regarding Forward-Looking Statements
    The forward-looking statements contained herein reflect management’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of BOS. These risk factors and uncertainties include, amongst others, the dependency of sales being generated from one or few major customers, the uncertainty of BOS being able to maintain current gross profit margins, inability to keep up or ahead of technology and to succeed in a highly competitive industry, inability to maintain marketing and distribution arrangements and to expand our overseas markets, uncertainty with respect to the prospects of legal claims against BOS, the effect of exchange rate fluctuations, general worldwide economic conditions, the continued availability of financing for working capital purposes and to refinance outstanding indebtedness; and additional risks and uncertainties detailed in BOS’ periodic reports and registration statements filed with the US Securities and Exchange Commission, including risks related to Israel’s conflicts with Hamas and other parties in the region.
    BOS undertakes no obligation to publicly update or revise any forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

     
    CONSOLIDATED STATEMENTS OF OPERATIONS
    U.S. dollars in thousands
           
      Year ended
    December 31,    		   Three months ended
    December 31,
      2024
    		   2023     2024
    		   2023
      (Unaudited)
    		   (Audited)
    		     (Unaudited)
    		     (Audited)
    		  
           
    Revenues $ 39,949     $ 44,179     $ 10,388     $ 10,886  
    Cost of revenues 30,655     34,970     8,007     8,796  
    Gross profit 9,294     9,209     2,381     2,090  
    Operating costs and expenses:                      
    Research and development 175     158     50     44  
    Sales and marketing 4,394     4,891     1,118     1,278  
    General and administrative 2,113     1,762     656     420  
    Other income, net –     (52)     –     (52)  
    Impairment of intangible assets and Goodwill 1,173     –     1,173     –  
    Total operating costs and expenses 7,855     6,759     2,997     1,690  
                           
    Operating income (loss) 1,439     2,450     (616)     400  
    Financial income (expenses), net (139)     (441)     99     31  
    Income before taxes on income 1,300     2,009     (517)     431  
    Income taxes benefits (expenses) 1,000     (4)     1,002     (4)  
    Net income $ 2,300     $ 2,005     $ 485     $ 427  
                           
    Basic net income per share $ 0.40     $ 0.35     $ 0.08     $ 0.07  
    Diluted net income per share $ 0.39     $ 0.34     $ 0.08     $ 0.07  
    Weighted average number of shares used in computing basic net income per share 5,756     5,727     5,776     5,748  
    Weighted average number of shares used in computing diluted net income per share 5,887     5,905     5,975     5,856  
                         
    Number of outstanding shares as of December 31, 2024 and 2023 5,793     5,748     5,793     5,748  
    CONSOLIDATED BALANCE SHEETS
    (U.S. dollars in thousands)
           
      December 31, 2024
    		   December 31, 2023
      (Unaudited)
    		   (Audited)
    ASSETS      
               
    CURRENT ASSETS:      
    Cash and cash equivalents $ 3,368     $ 2,344  
    Restricted bank deposits 185     217  
    Trade receivables 11,787     12,424  
    Other accounts receivable and prepaid expenses 1,150     963  
    Inventories 7,870     6,070  
               
    Total current assets 24,360     22,018  
               
    LONG-TERM ASSETS 177     196  
               
    PROPERTY AND EQUIPMENT, NET 3,417     3,268  
               
    OPERATING LEASE RIGHT-OF-USE ASSETS, NET 779     1,026  
               
    DEFERRED TAX ASSETS 1,000     –  
               
    OTHER INTANGIBLE ASSETS, NET 422     1,078  
               
    GOODWILL 4,188     4,895  
               
    Total assets $ 34,343     $ 32,481  
    CONSOLIDATED BALANCE SHEETS
    (U.S. dollars in thousands)
           
      December 31,
    2024    		   December 31, 2023
      (Unaudited)   (Audited)
           
                    LIABILITIES AND SHAREHOLDERS’ EQUITY      
           
    CURRENT LIABILITIES:      
    Current maturities of long-term loans $ 439     $ 170  
    Operating lease liabilities, current   176       235  
    Trade payables   6,362       7,710  
    Employees and payroll accruals   1,087       980  
    Deferred revenues   2,003       600  
    Advances net of inventory in progress   –       137  
    Accrued expenses and other liabilities   598       1,072  
           
    Total current liabilities   10,665       10,904  
           
    LONG-TERM LIABILITIES:      
    Long-term loans, net of current maturities   980       1,150  
    Operating lease liabilities, non-current   576       759  
    Long-term deferred revenues   293       339  
    Accrued severance pay   498       490  
           
    Total long-term liabilities   2,347       2,738  
           
           
    TOTAL SHAREHOLDERS’ EQUITY   21,331       18,839  
           
           
    Total liabilities and shareholders’ equity $ 34,343     $ 32,481  
    CONDENSED CONSOLIDATED EBITDA
    (U.S. dollars in thousands)
           
      Year ended
    December 31,    		   Three months ended
    December 31,
      2024
    		   2023
    		   2024   2023
                   
    Operating income (loss) $ 1,439     $ 2,450     $ (616 )   $ 400  
    Add:              
    Impairment of Goodwill and other intangible assets   1,173       –       1,173       –  
    Amortization of intangible assets   190       168       47       48  
    Stock-based compensation   74       98       11       24  
    Depreciation   370       342       100       90  
    EBITDA $ 3,246     $ 3,058     $ 715     $ 562  
    SEGMENT INFORMATION
    (U.S. dollars in thousands)
                       
      RFID   Supply
    Chain Solutions    		   Intelligent 
    Robotics    		   Intercompany   Consolidated
      Year ended December 31,
      2024
                       
    Revenues $ 12,877   $ 25,829     1,410   (167)   $ 39,949
    Cost of revenues   9,344     19,763     1,079   (167)     30,019
    Allowance for slow inventory   –     636     –   –     636
    Gross profit   3,533     5,430     331         9,294
                       
    Allocated operating expenses   2,273     3,338     274         5,885
                       
    Impairment of goodwill and intangible assets   984     189     –         1,173
                       
    Unallocated operating expenses*       –     –         797
                       
    Operating income $ 276   $ 1,903   $ 57         1,439
                       
    Financial expenses and income tax benefits                   861
                       
    Net income                 $ 2,300
      RFID   Supply Chain
    Solutions    		   Intelligent
    Robotics
    		   Intercompany
    		   Consolidated
      Year ended December 31,
      2023
                       
    Revenues $ 13,713   $ 28,845     1,742   (121)   $ 44,179
    Cost of revenues 10,534   22,830     1,557   (121)   34,800
    Allowance for slow inventory –   170   –   –   170
    Gross profit 3,179   5,845     185       9,209
                       
    Allocated operating expenses 2,150   3,675     258       6,083
                       
    Unallocated operating expenses*     –   –       676
                       
    Operating income (loss) $ 1,029   $ 2,170   $ (73)       2,450
                       
    Financial expenses and tax on income                 (445)
                       
    Net income                 $ 2,005
                       

    *Unallocated operating expenses include costs not specific to a particular segment but are general to the group, such as expenses incurred for insurance of directors and officers, public company fees, legal fees, and other similar corporate costs.

    SEGMENT INFORMATION
    (U.S. dollars in thousands)
                       
      RFID   Supply
    Chain Solutions    		   Intelligent Robotics   Intercompany   Consolidated
        Three months ended December 31,
    2024
                       
    Revenues $          3,445   $         6,806   $         171   (34)   $         10,388
    Cost of revenues 2,294   5,170   127   (34)   7,557
    Allowance for slow inventory –   450   –   –   450
    Gross profit 1,151   1,186   44   –   2,381
                       
    Allocated operating expenses 605   883   84   –   1,572
                       
    Impairment of goodwill and intangible assets 984   189   –       1,173
                       
    Unallocated operating expenses*                 252
                       
    Operating income (loss) $         (438)   $         114   $         (40)       (616)
                       
    Financial income and income tax benefits                 1,101
                       
    Net income                 $         485
      RFID   Supply
    Chain Solutions    		   Intelligent Robotics   Intercompany   Consolidated
        Three months ended December 31,
    2023
                       
    Revenues $          3,622   $         7,017   $         279   (32)   $         10,886
    Cost of revenues 2,897   5,797   171   (32)   8,833
    Allowance for slow inventory –   (37)   –   –   (37)
    Gross profit 725   1,257   108   –   2,090
                       
    Allocated operating expenses 513   974   72   –   1,559
                       
    Unallocated operating expenses*                 131
                       
    Operating income $         212   $         283   $         36       400
                       
    Financial income and tax on income                 27
                       
    Net income                 $         427
                       

    *Unallocated operating expenses include costs not specific to a particular segment but are general to the group, such as expenses incurred for insurance of directors and officers, public company fees, legal fees, and other similar corporate costs.

    The MIL Network –

  • MIL-OSI: LM Funding America, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    – Fourth quarter and full-year 2024 total revenue of $2.0 million and $11.0 million, respectively.
    – Fourth quarter and full-year 2024 CORE EBITDA of $3.3 million and $3.9 million, respectively.
    – Held 165.8 Bitcoin on February 28, 2025 valued at approximately $14.4 million, as of March 26, 2025

    TAMPA, Fla., March 31, 2025 (GLOBE NEWSWIRE) — LM Funding America, Inc. (NASDAQ: LMFA) (“LM Funding” or the “Company”), a Bitcoin mining and technology-based specialty finance company, today reported financial results for the three months and full year ended December 31, 2024.

    Q4’24 Financial Highlights
    All variances are compared with prior year unless stated otherwise:

    • Mined 21.7 Bitcoin at an average price of approximately $83,000, generating total revenue of approximately $2.0 million. The year-over-year decrease in revenue primarily reflects the effects of the April 2024 Bitcoin Halving event and the transition of miners from storage into the new Oklahoma mining site.
    • Net income attributable to LM Funding shareholders was approximately $2.0 million compared with a net loss of approximately $1.6 million. The improvement in the net income was primarily driven by the new ASU Bitcoin standards that require mark-to-market valuation adjustment for our Bitcoin holdings.
    • Core EBITDA was approximately $3.3 million compared with $0.3 million1. The improvements in Core EBITDA were primarily due to gains on the fair value of Bitcoin in addition to lower digital mining costs and reduced compensation.
    • At year end, cash was approximately $3.4 million. Digital assets were $14.0 million based on 150.2 Bitcoin held at a price of approximately $93,000 as of December 31, 2024.
    • Net book value of equity was approximately $35.3 million as of December 31, 2024 or $7.21 per share2.
    • As of February 28, 2025, held 165.8 Bitcoin valued at approximately $14.4 million as of March 26, 2025 (based on Bitcoin price of approximately $87,000) or Bitcoin per share of $2.813.

    ________________________
    1 Core EBITDA is a non-GAAP financial measure, and a reconciliation of Core EBITDA to net income can be found below.
    2,3 Based on shares outstanding of 5,133,412 as of December 31, 2024.


    Q4’24 Operational Highlights

    • 15 MW site acquisition: The Company further executed its transition from an infrastructure-light strategy, mining at hosted facilities, to a fully vertically integrated strategy with low-cost electricity underpinning its operations. In addition to the low-cost energy, the strategy allows controlled uptime, which LM Funding believes will lead to more efficient mining and higher margins.
    • Mining fleet upgrade: In Q1 2025, the Company partnered with Luxor Technology Corporation to install their proprietary LuxOS firmware on its existing fleet, which could potentially boost the Company’s mining efficiency by 10-15%. This upgrade allows LM Funding to mine Bitcoin at a higher profitability without any additional capex investment.

    CEO Commentary

    Bruce Rodgers, Chairman and CEO of LM Funding, commented, “Using the halving as our pivot point of opportunity, we transitioned from an infrastructure-light hosted mining strategy  to a vertically integrated model—one where we manage the infrastructure ourselves, ensuring better margins and mitigating risks associated with third-party hosting arrangements.  With our Oklahoma facility, we secured low-cost power for our miners and now we own and totally control our mining infrastructure and costs. This vertical integration significantly reduces our fleet-wide energy costs and improves our operations for enhanced uptime and mining efficiency. Looking forward, our strong balance sheet and lean operations position us to grow our mining revenue by seeking to acquire new mining sites with similar size, prices, and terms.”

    CFO Commentary

    Richard Russell, CFO of LM Funding, stated, “Throughout our expansion last year, we remained disciplined in our spending. By actively maintaining a low-cost structure – from power sourcing and infrastructure investments to staffing and equipment – we were able to successfully navigate a challenging year for the industry and our first Bitcoin Halving event, which occurred in April 2024. This strategic cost control enabled us to achieve profitability in 2024 on a Core EBITDA basis, as well as grow our Bitcoin treasury, which is a significant piece of our long-term strategy. By retaining a portion of our Bitcoin mined, we not only capture potential upside for shareholders but also deepen our alignment with the broader Bitcoin industry.”

    Full Year 2024 Financial Highlights
    All variances are compared with prior year unless stated otherwise:

    • Mined 170.6 Bitcoin at an average price of approximately $61,000, generating total revenue of approximately $11.0 million. The year-over-year decrease in revenue primarily reflects the effects of the April 2024 Bitcoin halving event.
    • Net loss attributable to LM Funding shareholders for the year ended December 31, 2024, was approximately $7.3 million compared with a net loss of approximately $15.9 million in 2023.
    • Core EBITDA income for the twelve months ended December 31, 2024 was approximately $3.9 million, compared with a Core EBITDA loss of $0.2 million in 2023. The improvements in Core EBITDA were primarily due to gains on the fair value of Bitcoin in addition to lower digital mining costs and reduced compensation.

    Investor Conference Call

    LM Funding will host a conference call today, March 31, 2025, at 8:00 A.M. Eastern Time to discuss the Company’s financial results for the quarter and full year ended December 31, 2024, as well as the Company’s corporate progress and other developments. A copy of this earnings release and investor presentation are available on the Company’s Investor Relations website at https://www.lmfunding.com/investors.  

    Conference Call Details

    • Date: March 31, 2025 
    • Time: 8:00 AM EST 
    • Participant Call Links: 
      • Live Webcast: Link 
      • Participant Call Registration: Link 

    About LM Funding America

    LM Funding America, Inc. (Nasdaq: LMFA), operates as a Bitcoin mining and specialty finance company. The company was founded in 2008 and is based in Tampa, Florida. For more information, please visit https://www.lmfunding.com.

    Forward-Looking Statements

    This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. Some of these risks and uncertainties are identified in the Company’s most recent Annual Report on Form 10-K and its other filings with the SEC, which are available at www.sec.gov. These risks and uncertainties include, without limitation, the risks of operating in the cryptocurrency mining business, our limited operating history in the cryptocurrency mining business and our ability to grow that business, the capacity of our Bitcoin mining machines and our related ability to purchase power at reasonable prices, our ability to identify and acquire additional mining sites, the ability to finance our site acquisitions and cryptocurrency mining operations, our ability to acquire new accounts in our specialty finance business at appropriate prices, changes in governmental regulations that affect our ability to collected sufficient amounts on defaulted consumer receivables, changes in the credit or capital markets, changes in interest rates, and negative press regarding the debt collection industry. The occurrence of any of these risks and uncertainties could have a material adverse effect on our business, financial condition, and results of operations.

    For investor and media inquiries, please contact:

    Investor Relations
    Orange Group
    Yujia Zhai
    lmfundingIR@orangegroupadvisors.com

     

             
    LM Funding America, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited)
             
        December 31,   December 31,
          2024       2023  
             
    Assets        
    Cash   $ 3,378,152     $ 2,401,831  
    Digital assets – current (Note 4)     9,021,927       3,416,256  
    Finance receivables     21,051       19,221  
    Marketable securities (Note 7)     27,050       17,860  
    Receivable from sale of Symbiont assets (Note 7)     200,000       200,000  
    Prepaid expenses and other assets     827,237       4,067,212  
    Income tax receivable     31,187       31,187  
    Current assets     13,506,604       10,153,567  
             
    Fixed assets, net (Note 5)     18,376,948       24,519,610  
    Intangible assets, net (Note 5)     5,478,958       –  
    Deposits on mining equipment (Note 6)     467,172       20,837  
    Notes receivable from Seastar Medical Holding Corporation (Note 7)     –       1,440,498  
    Long-term investments – equity securities (Note 7)     4,255       156,992  
    Investment in Seastar Medical Holding Corporation (Note 7)     200,790       1,145,486  
    Digital assets – long-term (Note 4)     5,000,000       –  
    Operating lease – right of use assets (Note 9)     938,641       189,009  
    Other assets     73,857       86,798  
    Long-term assets     30,540,621       27,559,230  
    Total assets   $ 44,047,225     $ 37,712,797  
             
    Liabilities and stockholders’ equity        
    Accounts payable and accrued expenses     989,563       2,064,909  
    Note payable – short-term (Note 8)     386,312       567,586  
    Due to related parties (Note 11)     15,944       22,845  
    Current portion of lease liability (Note 9)     170,967       110,384  
    Total current liabilities     1,562,786       2,765,724  
             
    Note payable – long-term (Note 8)     6,365,345       –  
    Lease liability – net of current portion (Note 9)     776,535       85,775  
    Long-term liabilities     7,141,880       85,775  
    Total liabilities     8,704,666       2,851,499  
             
    Stockholders’ equity (Note 12)        
    Preferred stock, par value $.001; 150,000,000 shares authorized; no shares issued and outstanding as of December 31, 2024 and December 31, 2023     –       –  
    Common stock, par value $.001; 350,000,000 shares authorized; 5,133,412 shares issued and outstanding as of December 31, 2024 and 2,492,964 as of December 31, 2023     4,602       2,493  
    Additional paid-in capital     102,685,470       95,145,376  
    Accumulated deficit     (65,662,731 )     (58,961,461 )
    Total LM Funding America stockholders’ equity     37,027,341       36,186,408  
    Non-controlling interest     (1,684,782 )     (1,325,110 )
    Total stockholders’ equity     35,342,559       34,861,298  
    Total liabilities and stockholders’ equity   $ 44,047,225     $ 37,712,797  
             

      

    LM Funding America, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited)
                     
        Three Months Ended December 31,   Years Ended December 31,
          2024       2023       2024       2023  
    Revenues:                
    Digital mining revenues   $ 1,814,169     $ 3,946,485     $ 10,432,605     $ 12,289,131  
    Specialty finance revenue     140,377       75,901       443,599       550,445  
    Rental revenue     30,678       33,028       123,444       144,514  
    Total revenues     1,985,224       4,055,414       10,999,648       12,984,090  
    Operating costs and expenses:                
    Digital mining cost of revenues (exclusive of depreciation and amortization shown below)     1,248,083       2,668,770       6,990,856       9,406,940  
    Staff costs and payroll     907,883       1,121,796       4,556,781       5,858,736  
    Depreciation and amortization     658,757       1,495,614       7,774,161       4,983,480  
    Gain on fair value of Bitcoin, net     (4,254,031 )     (383,497 )     (7,350,805 )     –  
    Impairment loss on mining equipment     191,317       261,191       1,379,375       –  
    Impairment loss on mined digital assets     –       280,278       –       965,967  
    Realized gain on sale of mined digital assets     –       (999,717 )     –       (2,070,508 )
    Professional fees     434,251       634,535       2,057,165       1,863,038  
    Selling, general and administrative     234,366       168,632       817,041       851,806  
    Real estate management and disposal     70,483       19,105       159,913       146,716  
    Collection costs     4,647       12,342       41,043       29,875  
    Settlement costs with associations     –       –       –       10,000  
    Loss on disposal of assets     81,594       9,389       136,100       9,389  
    Other operating costs     232,168       542,105       899,569       999,959  
    Total operating costs and expenses     (190,482 )     5,830,543       17,461,199       23,055,398  
    Operating income (loss)     2,175,706       (1,775,129 )     (6,461,551 )     (10,071,308 )
    Unrealized gain on marketable securities     8,206       7,134       9,190       13,570  
    Impairment loss on prepaid machine deposits     –       –       (12,941 )     (36,691 )
    Impairment loss on prepaid hosting deposits     –       (184,236 )     –       (184,236 )
    Unrealized loss on investment and equity securities     (244,809 )     546,563       (1,097,433 )     (9,771,050 )
    Impairment loss on Symbiont assets     –       –       –       (750,678 )
    Gain on fair value of purchased Bitcoin, net     (18,729 )     –       39,197       –  
    Credit loss on Seastar note receivable     –       22,344       –       –  
    Realized gain on securities     –       2,632       –       4,420  
    Realized gain on sale of purchased digital assets     –       –       –       1,917  
    Gain on adjustment of note receivable allowance     –       –       –       1,052,542  
    Other income – coupon sales     –       –       4,490       639,472  
    Other income – financing revenue     –       –       –       37,660  
    Interest expense     (211,946 )     –       (443,700 )     –  
    Interest income     182,620       38,705       307,316       249,586  
    Income (loss) before income taxes     1,891,048       (1,341,987 )     (7,655,432 )     (18,814,796 )
    Income tax expense     –       (60,571 )     –       (60,571 )
    Net income (loss)   $ 1,891,048     $ (1,402,558 )   $ (7,655,432 )   $ (18,875,367 )
    Less: loss attributable to non-controlling interest     74,760       (189,208 )     340,056       2,931,113  
    Net income (loss) attributable to LM Funding America Inc.   $ 1,965,808     $ (1,591,766 )   $ (7,315,376 )   $ (15,944,254 )
    Less: deemed dividends (Note 12)     (5,090,619 )     –       (6,794,924 )     –  
    Net loss attributable to common shareholders   $ (3,124,811 )   $ (1,591,766 )   $ (14,110,300 )   $ (15,944,254 )
                     
    Basic loss per common share (Note 1)   $ (0.86 )   $ (0.67 )   $ (5.02 )   $ (6.98 )
    Diluted loss per common share (Note 1)   $ (0.86 )   $ (0.67 )   $ (5.02 )   $ (6.98 )
                     
    Weighted average number of common shares outstanding                
    Basic     3,650,624       2,362,964       2,808,064       2,283,836  
    Diluted     3,650,624       2,362,964       2,808,064       2,283,836  
                     

      

    LM Funding America, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited)
     
        Years Ended December 31,
          2024       2023  
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net loss   $ (7,655,432 )   $ (18,875,367 )
    Adjustments to reconcile net loss to net cash used in operating activities        
    Depreciation and amortization     7,774,161       4,983,480  
    Noncash lease expense     109,842       98,536  
    Amortization of debt issue costs     35,435       –  
    Stock compensation     76,322       1,095,705  
    Stock option expense     443,220       1,843,731  
    Professional fees paid in common shares     100,001       –  
    Accrued investment income     (197,104 )     (159,692 )
    Digital assets other income     (4,490 )     –  
    Gain on fair value of Bitcoin, net     (7,390,002 )     –  
    Impairment loss on mining machines     1,379,375       –  
    Impairment loss on digital assets     –       965,967  
    Impairment loss on mining machine deposits     12,941       36,691  
    Impairment loss on hosting deposits     –       184,236  
    Impairment loss on Symbiont assets     –       750,678  
    Unrealized gain on marketable securities     (9,190 )     (13,570 )
    Realized gain on securities     –       (4,420 )
    Unrealized loss on investment and equity securities     1,097,433       9,771,050  
    Loss on disposal of fixed assets     136,100       9,389  
    Allowance for loss on debt security     –       –  
    Proceeds from securities     –       744,036  
    Realized gain on sale of digital assets     –       (2,072,425 )
    Reversal of allowance loss on debt security     –       (1,052,542 )
    Investments in marketable securities     –       (739,616 )
    Change in operating assets and liabilities:        
    Prepaid expenses and other assets     3,781,133       189,407  
    Hosting deposits     (12,941 )     (36,691 )
    Repayments to related party     (6,901 )     (52,643 )
    Accounts payable and accrued expenses     (1,075,346 )     177,478  
    Mining of digital assets     (10,432,605 )     (12,289,131 )
    Proceeds from sale of digital assets     —       10,874,701  
    Lease liability payments     (108,131 )     (95,948 )
    Income tax receivable     —       262,279  
    Net cash used in operating activities     (11,946,179 )     (3,404,681 )
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Net collections of finance receivables – original product     1,059       (6,428 )
    Net collections of finance receivables – special product     (2,889 )     14,009  
    Capital expenditures     (1,732,472 )     (1,625,284 )
    Proceeds from sale of fixed assets     78,806       –  
    Acquisition of Tech Infrastructure JV I LLC assets     (3,642,870 )     –  
    Investment in note receivable     (3,587,195 )     (125,000 )
    Collection of note receivable     –       2,651,943  
    Collection of note receivable – related party     1,449,066       –  
    Investment in digital assets     (485,500 )     (35,157 )
    Proceeds from sale of digital assets     8,309,104       27,815  
    Proceeds from the sale of tether     11,928       –  
    Symbiont asset acquisition     –       1,800,000  
    Financing activities for Symbiont asset acquisition     –       (402,361 )
    Distribution to members     (19,616 )     –  
    Net cash provided by investing activities     379,421       2,299,537  
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Proceeds from borrowings     6,329,910       –  
    Insurance financing repayments     (709,491 )     (624,481 )
    Exercise of warrants     4,748,971      
    Exercise of options     25,000       –  
    Proceeds from equity offering     2,148,689       –  
    Issue costs for the issuance of common stock     —       (106,550 )
    Net cash provided by (used in) financing activities     12,543,079       (731,031 )
    NET INCREASE (DECREASE) IN CASH   $ 976,321     $ (1,836,175 )
    CASH – BEGINNING OF PERIOD     2,401,831       4,238,006  
    CASH – END OF PERIOD   $ 3,378,152     $ 2,401,831  
             

     

    NON-GAAP CORE EBITDA RECONCILIATION

    Our reported results are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We also disclose Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”) and Core Earnings before Interest, Tax, Depreciation and Amortization (“Core EBITDA”) which adjusts for unrealized loss on investment and equity securities, impairment loss on mined digital assets, impairment of long-lived assets, impairment of prepaid hosting deposits, contract termination costs and stock compensation expense and option expense, all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of Bitcoin miners.

    The following tables reconcile net loss, which we believe is the most comparable GAAP measure, to EBITDA and Core EBITDA:

                     
        Three Months Ended December 31,   Years Ended December 31,
          2024       2023       2024       2023  
                     
    Net loss   $ 1,891,048     $ (1,402,558 )   $ (7,655,432 )   $ (18,875,367 )
    Income tax expense     –       60,571       –       60,571  
    Interest expense     211,946       –       443,700       –  
    Depreciation and amortization     658,757       1,495,614       7,774,161       4,983,480  
    Income (loss) before interest, taxes & depreciation   $ 2,761,751     $ 153,627     $ 562,429     $ (13,831,316 )
    Unrealized loss on investment and equity securities     244,809       (546,563 )     1,097,433       9,771,050  
    Gain on adjustment of note receivable allowance     –       –       –       (1,052,542 )
    Impairment loss on mined digital assets     –       143,317       –       965,967  
    Impairment loss on prepaid machine deposits     12,941       –       12,941       36,691  
    Impairment loss on prepaid hosting deposits     –       184,236       –       184,236  
    Costs associated with At-the-Market Equity program     –       –       119,050       –  
    Contract termination costs     –       –       250,001       –  
    Impairment loss on Symbiont assets     –       –       –       750,678  
    Impairment loss on mining equipment     191,317       –       1,379,375       –  
    Stock compensation and option expense     110,805       410,584       519,542       2,939,436  
    Core income (loss) before interest, taxes & depreciation   $ 3,321,623     $ 345,201     $ 3,940,771     $ (235,800 )
                     

    The MIL Network –

  • MIL-OSI: RYVYL Reports Q4 2024 and Full Year 2024 Financial Results and Provides a Business Update

    Source: GlobeNewswire (MIL-OSI)

    – Reiterates 2025 guidance of $80 million to $90 million in revenue and mid-40s percentage gross margin – 

    SAN DIEGO, CA, March 31, 2025 (GLOBE NEWSWIRE) — RYVYL Inc. (NASDAQ: RVYL) (“RYVYL” or the “Company”), a leading innovator of payment transaction solutions leveraging electronic payment technology for the diverse international markets, reported its financial results for the quarter and year ended December 31, 2024.

    RYVYL Co-founder and CEO Fredi Nisan issued the following business update for investors.

    “We made significant progress in 2024 as our U.S. operations stabilized over the past several quarters, while our International segment maintained a strong growth trajectory. International revenue for 2024 reached $37.8 million, representing a remarkable 124% increase compared to 2023. With momentum building in both the U.S. and international markets, we are actively onboarding new clients across multiple jurisdictions, further strengthening our market presence and positioning us for a high-growth year in 2025.

    Our global pipeline is robust, and we are rapidly gaining traction with our Payments-as-a-Service offering from RYVYL EU. We are strategically positioned to capitalize on substantial opportunities as we continue to expand our market reach.

    “We are building on our core competitive strengths and foundation, and I’m excited to offer a summary of our progress and reiterate our 2025 guidance of $80 million to $90 million in revenue and mid-40s percentage gross margin.

    Business Overview and Competitive Position

    Our competitive strengths, unique value proposition, and strategic focus are what truly set us apart in the fintech space. We’re especially optimistic about our position in the market, as the global shift toward credit cards, mobile wallets, and real-time payment platforms continues to accelerate. Our solutions are purpose-built for this evolution, leveraging our longstanding investment in proprietary payment and banking technologies to stay ahead of the curve.

    As fintech innovators are rapidly disrupting the landscape with agile, cost-effective models, RYVYL is strongly positioned to lead the way. We are nimble, innovative, and well-prepared to capitalize on this favorable environment, driving forward as a leader in the next era of digital payments.

    We are committed to continuously evolving our product portfolio to anticipate and meet the ever-changing needs of businesses worldwide. At the heart of this effort is the enhancement of our dual-sided payment platform, which seamlessly supports both acquiring and disbursement services. This platform is purpose-built to accommodate emerging use cases in acquiring, disbursements, and embedded finance, delivering comprehensive, end-to-end financial solutions that empower our clients to stay ahead in a dynamic market.

    Technological innovation is transforming how consumers engage with their finances as multiple payment rails converge to offer greater flexibility and choice. RYVYL is at the forefront of this evolution with our next-generation payment technology. By integrating various payment systems and methods into a single, cohesive digital platform, we empower consumers and businesses to access multiple options—such as bank transfers, mobile payments, digital wallets, and more—all in one place. This innovative approach allows users to select the payment method that best meets their needs at any given moment, positioning RYVYL as a pioneer in the rapidly evolving financial landscape.

    We target high-margin segments, focusing on merchants and retail clients who are often overlooked by traditional processors or left out of the existing financial ecosystem. Currently, we serve nearly 1,500 business customers across 50 industries, leveraging a diversified foundation to establish ourselves as a global innovator in payment and banking solutions. By offering advanced banking and payment technologies, we’re able to capture 40% gross margins in these high-potential areas. With new offerings like Payments-as-a-Service (PaaS) on the horizon and greater operational efficiencies through scale, we are well-positioned to continue driving margin expansion.

    Our value proposition is distinct and forward-thinking. We deliver comprehensive banking and processing solutions that emphasize transparency, speed, and tailored processing capabilities designed for specific industries. Our customized, turnkey solutions are powered by cutting-edge technologies, such as AI, that set us apart. We leverage these advanced capabilities and tools to streamline operations, reduce errors, and enhance scalability, while AI-driven insights optimize decision-making and efficiency, creating a transformative approach to financial services.

    Compliance and onboarding agility are fundamental to our business model—serving as key competitive advantages in this rapidly evolving landscape. As regulatory scrutiny and antitrust initiatives reshape the payment ecosystem, legacy networks are being challenged, creating new opportunities for innovative players. While real-time systems like FedNow are making strides, credit cards still dominate, and adoption remains gradual. Meanwhile, advancements in AI are transforming fraud prevention, transaction security, and seamless banking integration. RYVYL is strategically positioned to navigate and capitalize on these changes, leveraging our expertise to stay ahead in this dynamic environment.

    We’re driven by our momentum and confident in our path forward. Recent wins, increased pipeline visibility, and an expanding presence across verticals are propelling us to new heights. We’re diversifying revenue streams and building stronger client relationships, positioning ourselves to meet the complex and evolving needs of our customers. Market demand remains robust, and we’re well-prepared to capitalize on opportunities, further solidifying our position as a frontrunner in the sector.

    Q4 2024 and Recent Highlights

    During Q4 and recently, we:

    • Completed two European software integrations in October, with these two European partners launching on the new platforms.
    • Expanded our global reach by launching Visa Direct services in more geographies, increasing our footprint to a total of 16 countries.
    • Launched co-branded debit cards in the EU.
    • Went live with our next-generation Charge Savvy (POS).
    • Implemented NEMS Core payments in the U.S.

    Balance Sheet Restructuring

    We completed key steps in our strategy to improve our capital structure, greatly reducing potential dilution and positioning us for profitable growth supported by increased financial flexibility.

    In January 2025, we:

    • Executed a Preferred Stock Repurchase and Note Repayment Agreement and paid the initial tranche of $13.0 million to a securityholder that:
      • Redeemed of all shares of the Company’s Series B Convertible Preferred Stock for which the liquidation value was $53.1 million; and
      • Partially repaid an 8% Senior Convertible Note, reducing the outstanding principal from $18.3 million to $4.0 million, which is due on or before April 30, 2025.
    • Entered into an agreement with a financing source for $15.0 million to fund the Preferred Stock Repurchase and Note Repayment Agreement transaction that was structured as a pre-funded asset sale with a 90-day closing period, which ends on April 23, 2025 and may be extended an additional 30 days to May 23, 2025, if the Company pays $500,000 for such extension. Shares in the Company’s RYVYL EU subsidiary were placed in escrow during the closing period. Although there are no guarantees, the Company intends to terminate the asset sale within the closing period by paying $16.5 million in consideration of such termination.

    We are pursuing a range of funding alternatives to raise capital to terminate the asset sale and anticipate completing this step in our financial strategy to further deleverage the balance sheet in Q2 2025. The Company has recently filed an S-1 registration statement to raise up to $24 million, including the overallotment, and intends to explore all fundraising options, including term debt, equity or some combination to fund the termination payment of $16.5 million.

    Payments-as-a-Service (PaaS)

    In March 2025, RYVYL EU landed two new Payments-as-a-Service (PaaS) contracts, which are anticipated to bring in close to one million new customer accounts over the next year. These partnerships mark a major step forward in expanding our presence across Europe and boosting our long-term growth potential. These partnerships are a strong endorsement of our ability to support fast-growing financial platforms and assist with their international growth. Our advanced payment technology enables quick and compliant onboarding, paired with the scalability today’s digital banks demand.

    • The first contract is with a prominent global money service provider and includes the provision of both virtual and physical payment cards through RYVYL’s platform and mobile application. So far, 1,000 accounts have already been activated, and an additional 50,000 are expected to follow in 2025.
    • The second agreement, with one of the world’s largest fully digital banks, is expected to add 900,000 new customer accounts within 12 months, beginning in Q2 2025. API integrations and system testing are already underway, with the onboarding phase set to launch in the near future.

    “We are poised for a strong growth year in 2025, with multiple initiative underway to leverage our technology and well-established customer infrastructure and market reputation, and I look forward to updating you on our progress,” concluded Nisan.

    Financial Summary for the Fourth Quarter Ended December 31, 2024

    • Revenue: Fourth quarter 2024 revenue totaled $14.1 million, driven largely by $11.4 million from RYVYL EU. This compares to $22.2 million in revenue during the same period in 2023, of which $5.6 million was generated by RYVYL EU.
    • Processing Volume: In the fourth quarter of 2024, processing volume rose 38.7% to $1.3 billion, compared to $0.9 billion in the fourth quarter of 2023. International operations accounted for $1.1 billion of the fourth quarter volume, a significant increase from the $591 million volume in the fourth quarter of 2023, fueled by strong growth across multiple verticals, particularly through our Independent Sales Organizations (“ISO”) and partnership network, as well as expanded offerings in global payments processing and banking-as-a-service. In North America, processing volume totaled $176 million, down from $356 million in the fourth quarter of 2023.
    • Cost of Revenue: Cost of revenue was $8.7 million in the fourth quarter of 2024, down from $14.5 million in the fourth quarter of 2023. This decrease was primarily due to reduced processing activity in North America, partially offset by higher processing volumes in the International segment.
    • Gross Margin: Gross margin for the fourth quarter of 2024 was 38.2%, up from 35.0% in the fourth quarter of 2023, reflecting higher margin product mix.
    • Operating Expenses: Operating expenses for the fourth quarter of 2024 were $11.4 million, compared to $10.6 million in the fourth quarter of 2023. This increase was primarily driven by a $3.0 million impairment charge in the fourth quarter of 2024 against intangible assets held in North America, partially offset by lower other operating expenses compared to the fourth quarter 2023.
    • Other Expense, net: Other expense, net, decreased 97% to $0.9 million in the fourth quarter of 2024, down from $27.0 million in the fourth quarter of 2023. The net decrease was primarily driven by the multiple restructurings of the Company’s convertible note during the fourth of 2023, with no comparable activity during the fourth quarter of 2024.
    • Adjusted EBITDA: Adjusted EBITDA for the fourth quarter of 2024 was negative $1.7 million, compared to a positive $0.1 million in the fourth quarter of 2023.

    Financial Summary Full Year Ended December 31, 2024

    • Revenue: 2024 revenue was $56.0 million, driven largely by $37.8 million from RYVYL EU. This compares to $65.9 million during the same period in 2023, of which $16.9 million was generated by RYVYL EU.
    • Cost of Revenue: Cost of revenue was $33.6 million, down $6.6 million, from $40.2 million during 2023, primarily due to reduced processing activity in North America, partially offset by higher processing volumes in the International segment.
    • Gross Margin: Gross margin was 40.0%, up from 39.0% in 2023.
    • Operating Expenses: 2024 operating expenses were $43.3 million compared to $38.0 million in 2023, due primarily to impairment charges recorded during 2024 of $6.7 million and $3.0 million for goodwill and intangible assets held in North America, respectively, with no comparable charges in 2023, partially offset by lower research and development expenses and professional fees.
    • Other Expense, net: Other expense, net, decreased to $4.8 million in 2024, down from $40.5 million in 2023. This decrease was mainly driven by a $28.8 million net decrease in other expenses associated with the Company’s multiple restructurings of its convertible note during 2023 with no comparable restructurings during 2024.
    • Adjusted EBITDA: Adjusted EBITDA for 2024 was a loss of $5.7 million, compared to a loss of $3.9 million in 2023.
    • Cash Balances: Cash and restricted cash as of December 31, 2024, was $92.0 million, with $89.4 million being restricted cash.

    The foregoing guidance is based on the Company’s continuation of the business, as currently conducted. On January 24, 2025, the Company entered into an agreement with a financing source that was structured as a pre-funded asset sale with a 90-day closing period, which ends on April 23, 2025 and may be extended an additional 30 days to May 23, 2025, if the Company pays $500,000 for such extension. Shares in the Company’s RYVYL EU subsidiary were placed in escrow during the closing period. Although there are no guarantees, the Company intends to terminate the asset sale within the closing period by paying $16.5 million in consideration of such termination. The Company’s financial guidance for 2025 is based on fully retaining its RYVYL EU subsidiary.

    About RYVYL

    RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging electronic payment technology for diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com

    Cautionary Note Regarding Forward-Looking Statements

    This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company’s current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding anticipated revenues and margins, timely payment of the second tranche, the benefit to stockholders from the repayment of the Note and repurchase of the Preferred Stock, and the timing and expectation of revenues from the license described herein and are charactered by future or conditional words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate” and “continue” or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee’s ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries – particularly industries with heightened cash reporting obligations and restrictions – as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These statements are also subject to any damages the Company could suffer as the result of previously announced litigation or actions of any governmental agencies. These and other risk factors affecting the Company are discussed in detail in the Company’s periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws.

    IR Contact:
    David Barnard, Alliance Advisors Investor Relations, 415-433-3777, ryvylinvestor@allianceadvisors.com

    RYVYL INC.
    CONSOLIDATED BALANCE SHEETS
    (In thousands, except share and per share data)

        December 31,  
        2024     2023  
    ASSETS            
    Current Assets:            
    Cash   $ 2,599     $ 12,180  
    Restricted cash     89,432       61,138  
    Accounts receivable, net of allowance for credit losses of $206 and $23, respectively     1,076       859  
    Cash due from gateways, net of allowance of $89 and $2,636, respectively     88       12,834  
    Prepaid and other current assets     2,189       2,854  
    Total current assets     95,384       89,865  
                     
    Non-current Assets:                
    Property and equipment, net     165       306  
    Goodwill     18,856       26,753  
    Intangible assets, net     1,802       5,059  
    Operating lease right-of-use assets, net     3,425       4,279  
    Other assets     2,644       2,403  
    Total non-current assets     26,892       38,800  
    Total assets   $ 122,276     $ 128,665  
                     
    LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT)                
                     
    Current Liabilities:                
    Accounts payable   $ 3,515     $ 1,819  
    Accrued liabilities     8,146       5,755  
    Payment processing liabilities, net     90,802       76,772  
    Current portion of operating lease liabilities     839       692  
    Other current liabilities     240       504  
    Total current liabilities     103,542       85,542  
    Long term debt, net of debt discount of $3,906 and $24,349, respectively     17,363       15,912  
    Operating lease liabilities, less current portion     2,863       3,720  
    Total liabilities     123,768       105,174  
                     
    Stockholders’ Equity/(Deficit):                
    Preferred stock, Series B, par value $0.01, 5,000,000 shares authorized; 53,499 and 55,000 shares issued and outstanding at December 31, 2024 and 2023, respectively     1       1  
    Common stock, par value $0.001, 100,000,000 shares authorized; 8,032,318 and 5,996,948 shares issued and outstanding at December 31, 2024 and 2023, respectively     8       6  
    Additional paid-in capital     179,157       175,664  
    Accumulated other comprehensive income     (1,251 )     401  
    Accumulated deficit     (179,407 )     (152,581 )
    Total stockholders’ (deficit)/equity     (1,492 )     23,491  
                     
    Total liabilities and stockholder’s (deficit)/equity   $ 122,276     $ 128,665  

    RYVYL INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
    (In thousands, except share and par value data)

        Three Months Ended December 31,     Twelve Months Ended December 31,  
        2024     2023     2024     2023  
                                     
    Revenue   $ 14,127     $ 22,249     $ 55,998     $ 65,869  
    Cost of revenue     8,730       14,455       33,572       40,157  
    Gross profit     5,397       7,794       22,426       25,712  
                                     
    Operating expenses:                                
    Advertising and marketing     20       (73 )     95       80  
    Research and development     821       1,323       3,848       5,757  
    General and administrative     1,826       1,968       6,933       8,678  
    Payroll and payroll taxes     4,167       3,785       13,836       12,017  
    Professional fees     1,016       1,425       4,372       7,076  
    Stock compensation expense     83       1,544       624       1,853  
    Depreciation and amortization     438       654       2,264       2,553  
    Impairment of goodwill     –       –       6,675       –  
    Impairment of intangible assets     3,028       –       3,028       –  
    Restructuring charges     –       –       1,636       –  
    Total operating expenses     11,399       10,626       43,311       38,014  
                                     
    Loss from operations     (6,002 )     (2,832 )     (20,885 )     (12,302 )
                                     
    Other income (expense):                                
    Interest expense     (400 )     (30 )     (862 )     (3,340 )
    Accretion of debt discount     (280 )     (3,508 )     (2,258 )     (13,134 )
    Changes in fair value of derivative liability     –       (35 )     14       6,544  
    Derecognition expense on conversion of convertible debt     (531 )     (23,516 )     (600 )     (25,035 )
    Legal settlement expense     (467 )     –       (2,064 )     (4,142 )
    Gain on sale of property and equipment     –       1,069       –       1,069  
    Other income (expense)     754       (999 )     970       (2,472 )
    Total other expense, net     (924 )     (27,020 )     (4,800 )     (40,510 )
                                     
    Loss before provision for income taxes     (6,926 )     (29,852 )     (25,685 )     (52,812 )
    Income tax provision     (75 )     151       1,140       289  
    Net loss   $ (6,851 )   $ (30,003 )   $ (26,825 )   $ (53,101 )
                                     
    Comprehensive income statement:                                
    Net loss     (6,851 )     (30,003 )     (26,825 )     (53,101 )
    Foreign currency translation (loss) gain     (2,371 )     433       (1,652 )      44  
    Total comprehensive loss   $ (9,222 )   $ (29,570 )   $ (28,477 )   $ (53,057 )
                                     
    Net loss per share:                                
    Basic and diluted   $ (0.91 )   $ (5.43 )   $ (4.01 )   $ (10.11 )
    Weighted average number of common shares outstanding:                                
    Basic and diluted     7,543,480       5,525,608       6,694,165       5,251,852  

    RYVYL INC.
    CONSOLIDATED STATEMENT OF CASH FLOWS
    (In thousands)

        Year Ended December 31,  
        2024     2023  
    Cash flows from operating activities:            
    Net loss   $ (26,825 )   $ (53,101 )
    Adjustments to reconcile net loss to net cash used in operating activities:                
    Depreciation and amortization expense     2,264       2,553  
    Noncash lease expense     143       350  
    Stock compensation expense     624       1,853  
    Restricted common stock issued for compensation     182       –  
    Accretion of debt discount     2,258       13,134  
    Derecognition expense on conversion of convertible debt     600       25,035  
    Changes in fair value of derivative liability     (14 )     (6,544 )
    Gain on sale of property and equipment     –       (1,069 )
    Impairment of goodwill     6,675       –  
    Impairment of intangible assets     3,028       –  
    Restructuring charges     1,636       –  
    Changes in assets and liabilities:                
    Accounts receivable, net     (155 )     297  
    Prepaid and other current assets     664       6,568  
    Cash due from gateways, net     12,684       (5,407 )
    Other assets     (160 )     (1,183 )
    Accounts payable     1,695       189  
    Accrued and other current liabilities     1,497       2,080  
    Accrued interest     366       546  
    Payment processing liabilities, net     14,029       47,860  
    Net cash provided by operating activities     21,191       33,161  
                     
    Cash flows from investing activities:                
    Purchases of property and equipment     (47 )     (108 )
    Logicquest Technology acquisition     –       (225 )
    Proceeds from sale of property and equipment     –       2,620  
    Capitalized software development costs     (1,647 )     –  
    Purchase of intangibles     (114 )     –  
    Net cash (used in) provided by investing activities     (1,808 )     2,287  
                     
    Cash flows from financing activities:                
    Treasury stock purchases     –       7  
    Repayments of convertible debt     –       (3,000 )
    Repayments on long-term debt     (12 )     (15 )
    Tax withholdings related to net settlement of equity awards     (229 )     –  
    Net cash used in financing activities     (241 )     (3,008 )
                     
    Effect of exchange rates in cash and restricted cash     (430 )     44  
    Net increase (decrease) in cash and restricted cash     18,712       32,484  
                     
    Cash and restricted cash – beginning of period     73,318       40,834  
                     
    Cash and restricted cash – end of period   $ 92,030     $ 73,318  
                     
    Supplemental disclosures of cash flow information                
    Cash paid during the period for:                
    Interest   $ 300     $ 2,709  
    Income taxes   $ 848     $ 199  
                     
    Non-cash financing and investing activities:                
    Convertible debt conversion to preferred stock   $ 900     $ 64,600  
    Convertible debt conversion to common stock   $ –     $ 1,650  
    Interest accrual from convertible debt converted to preferred stock   $ –     $ 1,703  
    Interest accrual from convertible debt converted to common stock   $ –     $ 4  

    Use of Non-GAAP Financial Information

    Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) is a non-GAAP measure that represents our net loss before interest expense, amortization of debt discount, income tax expense, depreciation and amortization, changes in the fair value of derivative liabilities, losses on the extinguishment and derecognition expenses on the conversion of convertible debt, non-cash stock-based compensation expense, acquisition-related expense, non-recurring provisions for credit losses on legacy matters, accounting fees related to the restatement of prior period financial statements, non-recurring costs related to the spin-off of a subsidiary, and legal costs and settlement fees incurred in connection with non-ordinary course litigation and other disputes.

    We exclude these items in calculating Adjusted EBITDA because we believe that the exclusion of these items will provide for more meaningful information about our financial performance, and do not consider the excluded items to be part of our ongoing results of operations. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are: (a) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (b) Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; (c) Adjusted EBITDA does not reflect the potentially dilutive impact of equity-based compensation; (d) Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and (e) other companies, including companies in our industry, may calculate Adjusted EBITDA or similarly titled measures differently, which reduces its usefulness as a comparative measure.

    Because of these and other limitations, you should consider Adjusted EBITDA alongside our other GAAP-based financial performance measures, net income (loss) and our other GAAP financial results. The following table presents a reconciliation of Adjusted EBITDA from net loss, the most directly comparable GAAP measure, for the periods indicated:

    Reconciliation of Net Loss attributable to RYVYL, Inc., to Adjusted EBITDA for the
    Three and Twelve Months Ended December 31, 2024 and 2023
    (In thousands, except share and per share data)

        Three Months Ended December 31,     Twelve Months Ended December 31,  
        2024     2023     2024     2023  
                                     
    Net loss   $ (6,851 )   $ (30,003 )   $ (26,825 )   $ (53,101 )
    Interest expense     400       30       862       3,340  
    Accretion of debt discount     280       3,508       2,259       13,134  
    Income tax provision     (75 )     151       1,140       289  
    Depreciation and amortization     438       654       2,264       2,553  
     EBITDA     (5,807 )     (25,660 )     (20,301 )     (33,785 )
                                     
    Other non-cash adjustments:                                
    Changes in fair value of derivative liability     –       35       (14 )     (6,544 )
    Derecognition expense on conversion of convertible debt     531       23,516       600       25,035  
    Stock compensation expense     83       1,544       624       1,853  
    Impairment of goodwill     –       –       6,675       –  
    Impairment of intangible assets     3,028       –       3,028       –  
    Restructuring charges     –       –       1,636       –  
                                     
    Special items:                                
    Non-recurring legal settlements and ongoing matters and related legal fees     467       –       2,064       5,308  
    Carryover effects of financial statement restatements in prior periods     –       691       –       1,913  
    Non-recurring provision for credit losses on legacy matters     –       –       –       1,994  
    Accounting fees related to the restatement of prior period financial statements     –       –       –       237  
    Non-recurring impairment of right of use asset     –       –       –       100  
    Non-recurring costs of spin-off     –       –       –       29  
    Adjusted EBITDA   $ (1,699 )   $ 126     $ (5,688 )   $ (3,860 )
                                     
    Loss from operations   $ (6,002 )   $ (2,832 )   $ (20,885 )   $ (12,302 )

    The MIL Network –

  • MIL-OSI: FTC Solar Announces Fourth Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    • Fourth quarter revenue of $13.2 million, at the high end of our prior target
    • Entered into 5-gigawatt supply arrangement with Recurrent Energy
    • Awarded 330+ megawatt project in Australia from GPG Naturgy
    • Awarded 280-megawatt project in U.S. from Rosendin
    • Appointed industry veteran Kent James as U.S. Chief Commercial Officer
    • Received additional $3.2 million earn-out on prior investment post quarter end
    • Announced upsizing of promissory note offering for up to additional $10-$15 mil. to close in Q2

    AUSTIN, Texas, March 31, 2025 (GLOBE NEWSWIRE) —  FTC Solar, Inc. (Nasdaq: FTCI), a leading provider of solar tracker systems, today announced financial results for the fourth quarter that ended December 31, 2024.

    “In addition to reporting favorable quarterly results relative to our targets, I’m pleased to say that we have had a number of recent wins and building momentum,” said Yann Brandt, President and Chief Executive Officer of FTC Solar. “Last quarter I highlighted a new 1-gigawatt supply agreement with Dunlieh Energy, a 500+ megawatt supply agreement with Strata Clean Energy, additional detail on a 1-gigawatt agreement with Sandhills Energy, a $15 million note placement and a $4.7 million cash earn-out on a prior investment. Building on those successes, today we announced several additional wins, including a new 5-gigawatt supply arrangement with Recurrent Energy, a 330+ megawatt project award from GPG Naturgy, a 280-megawatt project award from Rosendin, an additional earn-out payment, and an upsizing to our promissory note offering.

    “During the first six months of my tenure, we have been focused on shoring up our near-term backlog. In aggregate we have added multiples of our current annual revenue run rate to our backlog, signing several gigawatts of agreements with Tier 1 accounts along with other awards, added more than $30 million in additional liquidity to our balance sheet, strengthened our sales team with new hires including Kent James, further strengthened our product offering and capabilities and increased our commercial traction with bids on many gigawatts of future projects.

    “I believe that FTC Solar is in an incredibly fortunate situation in many respects with products that customers love, a business they enjoy working with, a cost structure that will enable strong margin growth and profitability, and a compelling 1P product set that opens up the 85% of the market that wasn’t available to us in the past. We believe our revenue bottomed in Q3, we saw growth in Q4, expect growth in Q1, and have been winning many new awards that we believe will help us ramp our revenue, achieve adjusted EBITDA breakeven, and become a strong and significant competitor in the industry.” 

    Summary Financial Performance: Q4 2024 compared to Q4 2023

        U.S. GAAP     Non-GAAP(c)  
        Three months ended December 31,  
    (in thousands, except per share data)   2024     2023     2024     2023  
    Revenue   $ 13,202     $ 23,201     $ 13,202     $ 23,201  
    Gross margin percentage     (29.1 %)     3.0 %     (25.6 %)     4.8 %
    Total operating expenses   $ 9,591     $ 12,428     $ 7,391     $ 10,848  
    Loss from operations(a)   $ (13,428 )   $ (11,736 )   $ (9,840 )   $ (10,050 )
    Net loss   $ (12,235 )   $ (11,177 )   $ (10,228 )   $ (9,657 )
    Diluted loss per share(b)   $ (0.96 )   $ (0.89 )   $ (0.80 )   $ (0.77 )


    (a)   Adjusted EBITDA for Non-GAAP
    (b)   Prior year amounts per share have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024
    (c)   See below for reconciliation of Non-GAAP financial measures to the nearest comparable GAAP measures

    Reflecting net purchase order additions and adjustments since November 12, 2024, the contracted portion of the company’s backlog1 now stands at approximately $502 million. 

    Fourth Quarter Results
    Total fourth-quarter revenue was $13.2 million, within our target range. This revenue level represents an increase of 30.2% compared to the prior quarter and a decrease of 43.1% compared to the year-earlier quarter due to lower product volumes.

    GAAP gross loss was $3.8 million, or 29.1% of revenue, compared to gross loss of $4.3 million, or 42.5% of revenue, in the prior quarter. Non-GAAP gross loss was $3.4 million or 25.6% of revenue. The result for this quarter compares to non-GAAP gross profit of $1.1 million in the prior-year period, with the difference driven primarily by the impact of lower current quarter revenues which were not sufficient to cover certain fixed indirect costs.

    GAAP operating expenses were $9.6 million. On a non-GAAP basis, operating expenses were $7.4 million. This result compares to non-GAAP operating expenses of $10.8 million in the year-ago quarter. 

    GAAP net loss was $12.2 million or $0.96 per diluted share, compared to a loss of $15.4 million or $1.21 per diluted share in the prior quarter (post-split) and a net loss of $11.2 million or $0.89 per diluted share (post-split) in the year-ago quarter. Adjusted EBITDA loss, which excludes an approximate $2.4 million net loss from stock-based compensation expense and other non-cash items, was $9.8 million, compared to losses of $12.2 million(2) in the prior quarter and $10.1 million in the year-ago quarter.

    Subsequent Events
    The company announced today a number of agreements, awards or other items which occurred subsequent to the end of the fourth quarter, including: 

    • A 5-gigawatt supply arrangement with Recurrent Energy. Recurrent is one of the world’s largest and most geographically diversified utility-scale solar developers. The projects are expected to be located in the U.S., Europe and Australia and utilize a combination of our 1P and 2P tracker technologies. It’s anticipated that the first project revenue under this arrangement will begin in the second half of 2025.
    • A 333-megawatt project award from GPG, the power generation subsidiary of multinational energy leader Naturgy, which operates in more than 20 countries with 16 million customers. The project, which is located in Australia, will utilize our 1P Pioneer tracker and is expected to begin tracker production in mid-2025.
    • A 280-megawatt project award from Rosendin, a top 5 EPC and the largest employee-owned electrical contractor in the U.S. The project, which is located on the U.S. West Coast, will also utilize our 1P Pioneer solution and is expected to begin tracker production in mid-2025. 
    • A $3.2 million earn-out on the company’s prior investment in Dimension Energy. The payment, which was received in the first quarter of 2025, brings the total escrow release and earn-outs received since 2021 to more than $15 million.
    • And finally, on March 4, 2024, the company entered into a binding term sheet to upsize the previously announced promissory note offering. Under the terms of the upsized agreement the company will issue to the Investor, in a private placement, senior secured promissory notes in an aggregate principal amount of up to an additional $10-$15 million dollars and common stock purchase warrants. The transaction is expected to close during the second quarter. This is in addition to the $15 million received in the fourth quarter of 2024.

    Outlook
    For the first quarter, we expect revenue at the midpoint of our guidance range to be up approximately 44% relative to the fourth quarter.

    (in millions) 4Q’24
    Guidance    		   4Q’24
    Actual    		   1Q’25
    Guidance(3)
    Revenue $10.0 – $14.0   $13.2    $18.0 – $20.0
    Non-GAAP Gross Loss $(4.2) – $(1.5)   $(3.4)   $(4.8) – $(2.3)
    Non-GAAP Gross Margin (42.2%) – (10.7%)   (25.6%)   (26.6%) – (11.7%)
    Non-GAAP operating expenses $8.2 – $9.0   $7.4    $7.7 – $8.4
    Non-GAAP adjusted EBITDA $(13.7) – $(9.9)   $(9.8)   $(13.3) – $(10.0)

    We continue to expect to achieve adjusted EBITDA breakeven on a quarterly basis within 2025.

    Fourth Quarter 2024 Earnings Conference Call
    FTC Solar’s senior management will host a conference call for members of the investment community at 8:30 a.m. E.T. today, during which the company will discuss its fourth quarter results, its outlook and other business items. This call will be webcast and can be accessed within the Investor Relations section of FTC Solar’s website at https://investor.ftcsolar.com. A replay of the conference call will also be available on the website for 30 days following the webcast.

    About FTC Solar Inc.
    Founded in 2017 by a group of renewable energy industry veterans, FTC Solar is a global provider of solar tracker systems, technology, software, and engineering services. Solar trackers significantly increase energy production at solar power installations by dynamically optimizing solar panel orientation to the sun. FTC Solar’s innovative tracker designs provide compelling performance and reliability, with an industry-leading installation cost-per-watt advantage.

    Footnotes
    1. The term ‘backlog’ or ‘contracted and awarded’ refers to the combination of our executed contracts (contracted) and awarded orders (awarded), which are orders that have been documented and signed through a contract, where we are in the process of documenting a contract but for which a contract has not yet been signed, or that have been awarded in writing or verbally with a mutual understanding that the order will be contracted in the future. In the case of certain projects, including those that are scheduled for delivery on later dates, we have not locked in binding pricing with customers, and we instead use estimated average selling price to calculate the revenue included in our contracted and awarded orders for such projects. Actual revenue for these projects could differ once contracts with binding pricing are executed, and there is also a risk that a contract may never be executed for an awarded but uncontracted project, or that a contract may be executed for an awarded but uncontracted project at a date that is later than anticipated, or that a contract once executed may be subsequently amended, supplemented, rescinded, cancelled or breached, including in a manner that impacts the timing and amounts of payments due thereunder, thus reducing anticipated revenues. Please refer to our SEC filings, including our Form 10-K, for more information on our contracted and awarded orders, including risk factors.
    2. A reconciliation of prior quarter Non-GAAP financial measures to the nearest comparable GAAP measures may be found in Exhibit 99.1 of our Form 8-K filed on November 12, 2024.
    3. We do not provide a quantitative reconciliation of our forward-looking non-GAAP guidance measures to the most directly comparable GAAP financial measures because certain information needed to reconcile those measures is not available without unreasonable efforts due to the inherent difficulty in forecasting and quantifying these measures as a result of changes in project schedules by our customers that may occur, which are outside of our control, and the impact, if any, of credit loss provisions, asset impairment charges, restructuring or changes in the timing and level of indirect or overhead spending, as well as other matters, that could occur which could significantly impact the related GAAP financial measures.

    Forward-Looking Statements
    This press release contains forward looking statements. These statements are not historical facts but rather are based on our current expectations and projections regarding our business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict, including, without limitation, the risks and uncertainties described in more detail above and in our filings with the U.S. Securities and Exchange Commission, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”), our Quarterly Reports on Form 10-Q, and other documents, including Current Reports on Form 8-K, that we have filed, or will file, with the SEC. You should not rely on our forward-looking statements as predictions of future events, as actual results may differ materially from those in the forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks and uncertainties described in more detail above and in our filings with the SEC, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our Annual Report on Form 10-K filed with the SEC, our Quarterly Reports on Form 10-Q, and other documents, including Current Reports on Form 8-K, that we have filed, or will file, with the SEC. Any forward-looking statements in this release speak only as of the date on which they are made. FTC Solar undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

    FTC Solar Investor Contact:
    Bill Michalek
    Vice President, Investor Relations
    FTC Solar
    T: (737) 241-8618
    E: IR@FTCSolar.com

     
    FTC Solar, Inc.
    Condensed Consolidated Statements of Comprehensive Loss
    (unaudited)
     
      Three months ended December 31,     Year ended December 31,  
    (in thousands, except shares and per share data) 2024     2023     2024     2023  
    Revenue:                      
    Product $ 10,428     $ 20,945     $ 37,520     $ 101,872  
    Service   2,774       2,256       9,835       25,130  
    Total revenue   13,202       23,201       47,355       127,002  
    Cost of revenue:                      
    Product   13,553       19,620       48,185       93,314  
    Service   3,486       2,889       11,764       25,381  
    Total cost of revenue   17,039       22,509       59,949       118,695  
    Gross profit (loss)   (3,837 )     692       (12,594 )     8,307  
    Operating expenses                      
    Research and development   1,474       1,450       5,915       7,166  
    Selling and marketing   2,051       4,924       8,881       14,811  
    General and administrative   6,066       6,054       25,440       37,107  
    Total operating expenses   9,591       12,428       40,236       59,084  
    Loss from operations   (13,428 )     (11,736 )     (52,830 )     (50,777 )
    Interest expense, net   (208 )     (59 )     (319 )     (253 )
    Gain from disposal of investment in unconsolidated subsidiary   4,722       421       8,807       1,319  
    Gain on sale of Atlas   906       —       906       —  
    Loss from change in fair value of warrant liability   (4,322 )     —       (4,322 )     —  
    Other income (expense), net   346       8       468       (257 )
    Loss from unconsolidated subsidiary   (319 )     (324 )     (1,086 )     (660 )
    Loss before income taxes   (12,303 )     (11,690 )     (48,376 )     (50,628 )
    (Provision for) benefit from income taxes   68       513       (230 )     338  
    Net loss   (12,235 )     (11,177 )     (48,606 )     (50,290 )
    Other comprehensive income (loss):                      
    Foreign currency translation adjustments   (311 )     219       (249 )     (232 )
    Comprehensive loss $ (12,546 )   $ (10,958 )   $ (48,855 )   $ (50,522 )
    Net loss per share:                      
    Basic and diluted (*) $ (0.96 )   $ (0.89 )   $ (3.83 )   $ (4.35 )
    Weighted-average common shares outstanding:                      
    Basic and diluted (*)   12,787,050       12,510,743       12,675,923       11,554,615  

    ___________

    (*) Prior year amounts per share and number of shares, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024.
    FTC Solar, Inc.
    Condensed Consolidated Balance Sheets
    (unaudited)
     
    (in thousands, except shares and per share data)   December 31, 2024     December 31, 2023  
    ASSETS            
    Current assets            
    Cash and cash equivalents   $ 11,247     $ 25,235  
    Accounts receivable, net of allowance for credit losses of $1,717 and $8,557 at December 31, 2024 and December 31, 2023, respectively     39,709       65,279  
    Inventories     10,144       3,905  
    Prepaid and other current assets     15,028       14,089  
    Total current assets     76,128       108,508  
    Operating lease right-of-use assets     1,149       1,819  
    Property and equipment, net     2,217       1,823  
    Intangible assets, net     —       542  
    Goodwill     7,139       7,353  
    Equity method investment     954       240  
    Other assets     2,341       2,785  
    Total assets   $ 89,928     $ 123,070  
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Current liabilities            
    Accounts payable   $ 12,995     $ 7,979  
    Accrued expenses     20,134       34,848  
    Income taxes payable     325       88  
    Deferred revenue     5,306       3,612  
    Other current liabilities     10,313       8,138  
    Total current liabilities     49,073       54,665  
    Long-term debt     9,466       —  
    Operating lease liability, net of current portion     411       1,124  
    Warrant liability     9,520       —  
    Other non-current liabilities     2,422       4,810  
    Total liabilities     70,892       60,599  
    Commitments and contingencies            
    Stockholders’ equity            
    Preferred stock par value of $0.0001 per share, 10,000,000 shares authorized; none issued as of December 31, 2024 and December 31, 2023     —       —  
    Common stock par value of $0.0001 per share, 850,000,000 shares authorized; 12,853,823 and 12,544,533 shares issued and outstanding as of December 31, 2024 and December 31, 2023(*)     1       1  
    Treasury stock, at cost; 1,076,257 shares as of December 31, 2024 and December 31, 2023     —       —  
    Additional paid-in capital(*)     367,318       361,898  
    Accumulated other comprehensive loss     (542 )     (293 )
    Accumulated deficit     (347,741 )     (299,135 )
    Total stockholders’ equity     19,036       62,471  
    Total liabilities and stockholders’ equity   $ 89,928     $ 123,070  

    ___________

    (*) Prior year shares and amounts, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024.
    FTC Solar, Inc.
    Condensed Consolidated Statements of Cash Flows
    (unaudited)
     
        Year ended December 31,  
    (in thousands)   2024     2023  
    Cash flows from operating activities            
    Net loss   $ (48,606 )   $ (50,290 )
    Adjustments to reconcile net loss to cash used in operating activities:            
    Stock-based compensation     5,412       8,295  
    Depreciation and amortization     1,671       1,375  
    Loss from change in fair value of warrant liability     4,322       —  
    Gain from sale of property and equipment     —       (2 )
    Amortization of debt discount and issue costs     296       709  
    Paid-in-kind non-cash interest     146       —  
    Provision for obsolete and slow-moving inventory     177       706  
    Loss from unconsolidated subsidiary     1,086       660  
    Gain from disposal of investment in unconsolidated subsidiary     (8,807 )     (1,319 )
    Gain on sale of Atlas     (906 )     —  
    Warranties issued and remediation added     7,204       4,310  
    Warranty recoverable from manufacturer     558       90  
    Credit loss provisions     2,072       7,373  
    Deferred income taxes     83       138  
    Lease expense and other     1,123       996  
    Impact on cash from changes in operating assets and liabilities:            
    Accounts receivable     23,498       (23,600 )
    Inventories     (6,416 )     10,338  
    Prepaid and other current assets     (934 )     (3,681 )
    Other assets     (376 )     383  
    Accounts payable     4,963       (7,960 )
    Accruals and other current liabilities     (19,292 )     10,582  
    Deferred revenue     1,754       (7,704 )
    Other non-current liabilities     (2,696 )     (3,083 )
    Lease payments and other, net     (1,031 )     (972 )
    Net cash used in operations     (34,699 )     (52,656 )
    Cash flows from investing activities:            
    Purchases of property and equipment     (1,645 )     (816 )
    Proceeds from sale of Atlas software platform     900       —  
    Equity method investment in Alpha Steel     (1,800 )     (900 )
    Proceeds from disposal of investment in unconsolidated subsidiary     8,807       1,319  
    Net cash provided by (used in) investing activities     6,262       (397 )
    Cash flows from financing activities:            
    Proceeds from borrowings     14,550       —  
    Sale of common stock     —       34,007  
    Stock offering costs paid     —       (283 )
    Financing costs paid     (60 )     —  
    Proceeds from stock option exercises     8       226  
    Net cash provided by financing activities     14,498       33,950  
    Effect of exchange rate changes on cash and cash equivalents     (49 )     (47 )
    Decrease in cash and cash equivalents     (13,988 )     (19,150 )
    Cash and cash equivalents at beginning of period     25,235       44,385  
    Cash and cash equivalents at end of period   $ 11,247     $ 25,235  


    Notes to Reconciliations of Non-GAAP Financial Measures to Nearest Comparable GAAP Measures

    We utilize Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS as supplemental measures of our performance. We define Adjusted EBITDA as net loss plus (i) provision for (benefit from) income taxes, (ii) interest expense, net, (iii) depreciation expense, (iv) amortization of intangibles, (v) stock-based compensation, (vi) loss from changes in fair value of our warrant liability, and (vii) Chief Executive Officer (“CEO”) transition costs, non-routine legal fees, costs associated with our reverse stock split, severance and certain other costs (credits). We also deduct the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary and gains from changes in fair value of our warrant liability from net loss in arriving at Adjusted EBITDA. We define Adjusted Net Loss as net loss plus (i) amortization of debt discount and issue costs and intangibles, (ii) stock-based compensation, (iii) loss from changes in fair value of our warrant liability, (iv) CEO transition costs, non-routine legal fees, costs associated with our reverse stock split, severance and certain other costs (credits), and (v) the income tax expense (benefit) of those adjustments, if any. We also deduct the contingent gains arising from earnout payments and project escrow releases relating to the disposal of our investment in an unconsolidated subsidiary and gains from change in fair value of our warrant liability from net loss in arriving at Adjusted Net Loss. Adjusted EPS is defined as Adjusted Net Loss on a per share basis using our weighted average diluted shares outstanding.

    Non-GAAP gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS are intended as supplemental measures of performance that are neither required by, nor presented in accordance with, U.S. generally accepted accounting principles (“GAAP”). We present these non-GAAP measures, many of which are commonly used by investors and analysts, because we believe they assist those investors and analysts in comparing our performance across reporting periods on an ongoing basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS to evaluate the effectiveness of our business strategies.

    Non-GAAP gross profit (loss), Non-GAAP operating expense, Adjusted EBITDA, Adjusted Net Loss and Adjusted EPS should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP, and you should not rely on any single financial measure to evaluate our business. These Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure as disclosed below.

    The following table reconciles Non-GAAP gross profit (loss) to the most closely related GAAP measure for the three and twelve months ended December 31, 2024 and 2023, respectively:

      Three months ended December 31,     Year ended December 31,  
    (in thousands, except percentages) 2024     2023     2024     2023  
    U.S. GAAP revenue $ 13,202     $ 23,201     $ 47,355     $ 127,002  
    U.S. GAAP gross profit (loss) $ (3,837 )   $ 692     $ (12,594 )   $ 8,307  
    Depreciation expense   182       139       716       478  
    Stock-based compensation   203       283       902       1,596  
    Severance costs   70       —       70       252  
    Non-GAAP gross profit (loss) $ (3,382 )   $ 1,114     $ (10,906 )   $ 10,633  
    Non-GAAP gross margin percentage   (25.6 %)     4.8 %     (23.0 %)     8.4 %

    The following table reconciles Non-GAAP operating expenses to the most closely related GAAP measure for the three and twelve months ended December 31, 2024 and 2023, respectively:

      Three months ended December 31,     Year ended December 31,  
    (in thousands) 2024     2023     2024     2023  
    U.S. GAAP operating expenses $ 9,591     $ 12,428     $ 40,236     $ 59,084  
    Depreciation expense   (126 )     (99 )     (420 )     (355 )
    Amortization expense   (134 )     (133 )     (535 )     (542 )
    Stock-based compensation   (966 )     1,032       (4,510 )     (6,699 )
    CEO transition   (194 )     —       (1,423 )     —  
    Non-routine legal fees   —       (33 )     (66 )     (214 )
    Reverse stock split   (212 )     —       (212 )     —  
    Severance costs   (568 )     (2,347 )     (568 )     (4,170 )
    Other (costs) credits   —       —       —       (3,241 )
    Non-GAAP operating expenses $ 7,391     $ 10,848     $ 32,502     $ 43,863  

    The following table reconciles Non-GAAP Adjusted EBITDA to the related GAAP measure of loss from operations for the three and twelve months ended December 31, 2024 and 2023, respectively:

      Three months ended December 31,     Year ended December 31,  
    (in thousands) 2024     2023     2024     2023  
    U.S. GAAP loss from operations $ (13,428 )   $ (11,736 )   $ (52,830 )   $ (50,777 )
    Depreciation expense   308       238       1,136       833  
    Amortization expense   134       133       535       542  
    Stock-based compensation   1,169       (749 )     5,412       8,295  
    CEO transition   194       —       1,423       —  
    Non-routine legal fees   —       33       66       214  
    Reverse stock split   212       —       212       —  
    Severance costs   638       2,347       638       4,422  
    Other costs   —       —       —       3,241  
    Other income (expense), net   346       8       468       (257 )
    Gain on sale of Atlas   906       —       906       —  
    Loss from unconsolidated subsidiary   (319 )     (324 )     (1,086 )     (660 )
    Adjusted EBITDA $ (9,840 )   $ (10,050 )   $ (43,120 )   $ (34,147 )

    The following table reconciles Non-GAAP Adjusted EBITDA and Adjusted Net Loss to the related GAAP measure of net loss for the three months ended December 31, 2024 and 2023, respectively:

      Three months ended December 31,  
      2024     2023  
    (in thousands, except shares and per share data) Adjusted EBITDA     Adjusted Net Loss     Adjusted EBITDA     Adjusted Net Loss  
    Net loss per U.S. GAAP $ (12,235 )   $ (12,235 )   $ (11,177 )   $ (11,177 )
    Reconciling items –                      
    Provision for (benefit from) income taxes   (68 )     —       (513 )     —  
    Interest (income) expense, net   208       —       59       —  
    Amortization of debt discount and issue costs in interest expense   —       60       —       177  
    Depreciation expense   308       —       238       —  
    Amortization of intangibles   134       134       133       133  
    Stock-based compensation   1,169       1,169       (749 )     (749 )
    Gain from disposal of investment in unconsolidated subsidiary(a)   (4,722 )     (4,722 )     (421 )     (421 )
    Loss from change in fair value of warrant liability(b)   4,322       4,322       —       —  
    CEO transition(c)   194       194       —       —  
    Non-routine legal fees(d)   —       —       33       33  
    Reverse stock split(e)   212       212       —       —  
    Severance costs(f)   638       638       2,347       2,347  
    Adjusted Non-GAAP amounts $ (9,840 )   $ (10,228 )   $ (10,050 )   $ (9,657 )
                           
    Adjusted Non-GAAP net loss per share (Adjusted EPS):                      
    Basic and diluted(g) N/A     $ (0.80 )   N/A     $ (0.77 )
                           
    Weighted-average common shares outstanding:                      
    Basic and diluted(g) N/A       12,787,050     N/A       12,510,743  
    (a) We exclude the gain from collections of contingent contractual amounts arising from the sale in 2021 of our investment in an unconsolidated subsidiary as these amounts are not considered part of our normal ongoing operations.
    (b) We exclude non-cash changes in the fair value of our outstanding warrants as we do not consider such changes to impact or reflect changes in our core operating performance.
    (c) In connection with hiring a new CEO in August 2024, we agreed to upfront and incremental sign-on bonuses (collectively, the “sign-on bonuses”), a portion of which was paid to our CEO in 2024, with clawback provisions during 2025 and 2026, and a portion of which will be paid in 2025 and 2026, all contingent upon continued employment as of the payment date. These sign-on bonuses will be expensed each period through October 1, 2026, to reflect the required service periods. We do not view these sign-on bonuses as being part of the normal on-going compensation arrangements for our CEO.
    (d) Non-routine legal fees represent legal fees and other costs incurred for specific matters that were not ordinary or routine to the operations of the business.
    (e) We incurred incremental legal and professional fees to implement a reverse stock split that was consummated effective November 29, 2024. We do not consider these fees to be part of our normal ongoing operations.
    (f) Severance costs were incurred during 2024 and 2023, due to restructuring changes involuntarily impacting a number of employees each period, to adjust our operations to reflect current market and activity levels and to take advantage of process efficiencies gained.
    (g) Prior year shares and amounts, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024.

    The following table reconciles Non-GAAP Adjusted EBITDA and Adjusted Net Loss to the related GAAP measure of net loss for the twelve months ended December 31, 2024 and 2023, respectively:

      Year ended December 31,  
      2024     2023  
    (in thousands, except shares and per share data) Adjusted EBITDA     Adjusted Net Loss     Adjusted EBITDA     Adjusted Net Loss  
    Net loss per U.S. GAAP $ (48,606 )   $ (48,606 )   $ (50,290 )   $ (50,290 )
    Reconciling items –                      
    Provision for (benefit from) income taxes   230       —       (338 )     —  
    Interest expense, net   319       —       253       —  
    Amortization of debt discount and issue costs in interest expense   —       296       —       709  
    Depreciation expense   1,136       —       833       —  
    Amortization of intangibles   535       535       542       542  
    Stock-based compensation   5,412       5,412       8,295       8,295  
    Gain from disposal of investment in unconsolidated subsidiary(a)   (8,807 )     (8,807 )     (1,319 )     (1,319 )
    Loss from change in fair value of warrant liability(b)   4,322       4,322       —       —  
    CEO transition(c)   1,423       1,423       —       —  
    Non-routine legal fees(d)   66       66       214       214  
    Reverse stock split(e)   212       212       —       —  
    Severance costs(f)   638       638       4,422       4,422  
    Other costs(g)   —       —       3,241       3,241  
    Adjusted Non-GAAP amounts $ (43,120 )   $ (44,509 )   $ (34,147 )   $ (34,186 )
                           
    Adjusted Non-GAAP net loss per share (Adjusted EPS):                      
    Basic and diluted(h) N/A     $ (3.51 )   N/A     $ (2.96 )
                           
    Weighted-average common shares outstanding:                      
    Basic and diluted(h) N/A       12,675,923     N/A       11,554,615  
    (a) We exclude the gain from collections of contingent contractual amounts arising from the sale in 2021 of our investment in an unconsolidated subsidiary as these amounts are not considered part of our normal ongoing operations.
    (b) We exclude non-cash changes in the fair value of our outstanding warrants as we do not consider such changes to impact or reflect changes in our core operating performance.
    (c) We incurred one-time incremental recruitment fees in connection with hiring a new CEO in August 2024. In addition, we agreed to upfront and incremental sign-on bonuses (collectively, the “sign-on bonuses”), a portion of which was paid to our CEO in 2024, with clawback provisions during 2025 and 2026, and a portion of which will be paid in 2025 and 2026, all contingent upon continued employment as of the payment date. These sign-on bonuses will be expensed each period through October 1, 2026, to reflect the required service periods. We do not view these sign-on bonuses as being part of the normal on-going compensation arrangements for our CEO.
    (d) Non-routine legal fees represent legal fees and other costs incurred for specific matters that were not ordinary or routine to the operations of the business.
    (e) We incurred incremental legal and professional fees to implement a reverse stock split that was consummated effective November 29, 2024. We do not consider these fees to be part of our normal ongoing operations.
    (f) Severance costs were incurred during 2024 and 2023, due to restructuring changes involuntarily impacting a number of employees each period, to adjust our operations to reflect current market and activity levels and to take advantage of process efficiencies gained.
    (g) Other costs in 2023 included the write-off of remaining prepaid costs resulting from termination of our consulting agreement with a related party.
    (h) Prior year shares and amounts, as applicable, have been revised to reflect the 1-for-10 reverse stock split, effective November 29, 2024.

    The MIL Network –

  • MIL-OSI: Maris-Tech Announces Full Year 2024 Financial Results and Reports Record 51% Revenue Growth for 2024 with Improved Profitability

    Source: GlobeNewswire (MIL-OSI)

    Revenues Increased by 51%, Gross Profit Increased by 82% and Net Loss Reduced by 54% for the Year Ended December 31, 2024

    Rehovot, Israel, March 31, 2025 (GLOBE NEWSWIRE) — Maris-Tech Ltd. (Nasdaq: MTEK, MTEKW) (“Maris-Tech” or the “Company”), a global leader in video and artificial intelligence (“AI”)- based edge computing technology, today announced its financial results for the full year ended December 31, 2024. The Company reported record revenues of approximately $6.1 million, an increase of 51% compared to approximately $4 million for the year ended December 31, 2023. Gross profit for the year ended December 31, 2024, grew by 82%, reaching approximately $3.5 million compared to approximately $1.9 million for the year ended December 31, 2023.

    Mr. Israel Bar, Chief Executive Officer of Maris-Tech, said, “In 2024, we focused on new developments, strategic partnerships and expanding our presence in key markets. We strengthened our position in the defense sector, particularly in the miniature drone and unmanned aerial vehicles industry, and in armored vehicles and tanks. Among our key achievements, we launched the Uranus Drones – a miniature codec tailored for the drone industry – and introduced the Diamond System, which is already deployed in the battlefield, providing comprehensive protection for thousands of vehicles. We also increased our investment in marketing and business development in the United States, which has contributed to our accelerated growth.”

    Financial Highlights

    ●    Revenues: Revenues for the year ended December 31, 2024, were approximately $6.1 million, an increase of 51% compared to approximately $4 million for the year ended December 31, 2023.

    ●    Gross Profit: Gross profit for the year ended December 31, 2024, was approximately $3.5 million, an increase of 82% compared to approximately $1.9 million for the year ended December 31, 2023.

    ●    Net Loss: Net loss for the year ended December 31, 2024, was approximately $1.2 million, a decrease of 54% compared to approximately $2.7 million for the year ended December 31, 2023.

    ●    Net Loss per Ordinary Share: Net loss per ordinary share for the year ended December 31, 2024, was approximately $0.16, a decrease of 53% compared to approximately $0.34 for the year ended December 31, 2023.

    ●    Cash, Cash Equivalents and Short-Term Bank Deposits: Cash and cash equivalents and short-term bank deposits as of December 31, 2024, were approximately $2.3 million, compared to approximately $5.2 million as of December 31, 2023.

    ●    Trade Receivables Balance: Increased to approximately $3.5 million as of December 31, 2024, compared to approximately $3.0 million as of December 31, 2023.

    We expect that our existing cash and cash equivalents as of December 31, 2024, along with anticipated revenue from existing customers pursuant to existing orders and the availability of a $4 million line of credit, will be sufficient to fund our operations and meet our obligations for the next twelve months.

    Year Ended 2024 Highlights

    We strengthened our position in the defense and homeland security (“HLS”) markets, and accelerated revenue growth:

    ●    In January 2024, we secured a new purchase order for approximately $590,000 for an AI-based HLS and Defense Surveillance Application based on the Jupiter AI platform;

    ●    In February 2024, we received a purchase order for approximately $190,000 for a miniature low-power solution to enhance gun sight capabilities in tactical applications;

    ●    In February 2024, we received a repeat purchase order for approximately $600,000 with an option to increase the purchase order to approximately $730,000 to provide armored and autonomous vehicles with enhanced situational awareness;

    ●    In April 2024, we secured a new purchase order for $415,800 for a defense solution based on our Jupiter Nano platform;

    ●    In April 2024, we received a new purchase order for approximately $110,000 for a novel miniature intelligence-gathering product based on the Maris platform technology;

    ●    In June 2024, we received a new purchase order for $225,000 from Aero Sol military drone manufacturer for our Uranus-Drones solution;

    ●    In June 2024, we secured a repeat purchase order for approximately $957,000 for our situational awareness solution for Armored Vehicles;

    ●    In August 2024, we secured a $700,000 purchase order for innovative AI-Based Video Distribution Solution; and

    ●    In December 2024, we secured a $1 million purchase order from a U.S. repeat customer in the HLS industry for our advanced Jupiter-based video solution.

    Strategic Partnerships

    ●    In March 2024, we entered into a collaboration agreement with Renesas Electronics Corporation, one of the world’s largest semiconductor manufacturers, and we were accepted into the Renesas’ Preferred Partner Program; and

    ●    In June 2024, we entered into a collaboration agreement with LightPath Technologies, Inc. (Nasdaq: LPTH) (“LightPath”) for AI-Ready Infrared Cameras, providing AI accelerated hardware, software and algorithms for LightPath’s infrared cameras.

    New Products & Developments

    ●    In February 2024, we launched Emerald, a Jupiter-based multiple-channel high-definition and standard-definition raw video recording platform especially designed for defense armored vehicles;

    ●    In July 2024, we unveiled Diamond – a revolutionary defense 360° 3D Situational Awareness Solution for armored fighting vehicles;

    ●    In September 2024, we announced that our Amethyst Edge Computing video solution now supports 5G, enabling ultra-speed and high data transfer;

    ●    In September 2024, we enhanced our Diamond platform ability to combat airborne threats with Diamond Ultra; and

    ●    In December 2024, we completed the development of Uranus-Drones technology, which is now available for large-scale delivery.

    Expanded Global Awareness

    Maris-Tech strengthened our presence in the U.S. with the engagement of new sales representatives and increased participation in international defense and technology exhibitions, showcasing the Company’s cutting-edge solutions to a global audience.

    Backlog and Outlook

    Our backlog as of January 1, 2025, was approximately $9.8 million, which represents an increase from our backlog as of January 1, 2024, of approximately $9.76 million. Our backlog, as of March 28, 2025, was approximately $9.9 million.

    We define backlog as the accumulation of all pending orders with a later fulfillment date for which revenue has not been recognized, and we consider valid. The backlog consists of executed purchase orders from new customers and existing customers with which we have had long standing relationships and from governmental agencies.

    Mr. Bar concluded, “We remain committed to driving long-term growth by focusing on strategic innovation, expanding our market presence, and strengthening our relationships with global defense and homeland security customers. We believe that our pipeline of opportunities and strong order backlog position us well for continued growth in 2025 and beyond.”

    About Maris-Tech Ltd.

    Maris-Tech is a global leader in video and AI-based edge computing technology, pioneering intelligent video transmission solutions that conquer complex encoding-decoding challenges. Our miniature, lightweight, and low-power products deliver high-performance capabilities, including raw data processing, seamless transfer, advanced image processing, and AI-driven analytics. Founded by Israeli technology sector veterans, Maris-Tech serves leading manufacturers worldwide in defense, aerospace, Intelligence gathering, homeland security (HLS), and communication industries. We’re pushing the boundaries of video transmission and edge computing, driving innovation in mission-critical applications across commercial and defense sectors.

    For more information, visit https://www.maris-tech.com/

    Forward-Looking Statement Disclaimer

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect”,” “may”, “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. For example, the Company is using forward-looking statements when it is discussing: its growth in 2025 and beyond; expanding its market presence; strengthening its relationships with global defense and homeland security customers; future pipeline and opportunities; its backlog and the anticipated fulfillment of that backlog; the demand for its defense and AI-powered solutions; expanding its  presence in key markets; and its position in the defense sector, particularly in the miniature drone and unmanned aerial vehicles industry, and in armored vehicles and tanks. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the Company’s ability to successfully market its products and services, including in the United States; the acceptance of its products and services by customers; its continued ability to pay operating costs and ability to meet demand for its products and services; the amount and nature of competition from other security and telecom products and services; the effects of changes in the cybersecurity and telecom markets; its ability to successfully develop new products and services; its success establishing and maintaining collaborative, strategic alliance agreements, licensing and supplier arrangements; its ability to comply with applicable regulations; and the other risks and uncertainties described in the Company’s Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on March 28, 2025, and its other filings with the SEC. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

    Investor Relations:

    Nir Bussy, CFO
    Tel: +972-72-2424022
    Nir@maris-tech.com

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia, March 31, 2025 (GLOBE NEWSWIRE) — Westport Fuel Systems Inc. (“Westport”) (TSX: WPRT / Nasdaq: WPRT) today reported financial results for the fourth quarter and year ended December 31, 2024, and provided an update on operations. All figures are in U.S. dollars unless otherwise stated.

    “The past year has been transformative for Westport as we sharpened our strategic focus, advanced our clean transportation technologies, and enhanced operational efficiencies. We have made significant strides in aligning our operations with our competitive strengths, improving margins, and reinforcing our commitment to delivering cost-effective solutions that drive decarbonization in the transportation sector. We have also transformed our culture to be one built on discipline and excellence, driving a high-performance mindset in everything we do.

    The launch of Cespira, our joint venture with Volvo Group, was a key milestone for us in 2024. Cespira is committed to accelerating the commercialization of HPDI™ technology with carbon-neutral fuels like hydrogen and renewable natural gas. This partnership underscores the industry’s recognition of HPDI as a leading solution to enable affordable, sustainable heavy transport.

    Additionally, we are taking bold steps to streamline our operations and strengthen our financial footing, allowing us to focus on areas with the highest growth potential. A prime example of this strategic realignment is our recently announced proposed divestiture of the Light-Duty business. This decision is expected to enable us to concentrate fully on providing affordable solutions for hard to decarbonize mobility applications like long haul and heavy-duty trucking that can take advantage of the unique, practical and affordable HPDI technology and our world class high-pressure components and systems technologies and scalable alternative fuel solutions, ensuring that we remain at the forefront of emissions-reducing innovations that are cost effective.

    Looking ahead, we are focused on scaling our alternative fuel-based solutions, including advancements in CNG, RNG, and hydrogen systems, while navigating a rapidly evolving transportation landscape. Hydrogen remains a critical component of the future but, in the meantime, we are delivering practical, commercially viable low-carbon solutions today such as natural gas and renewable natural gas solutions which, in some cases, can represent a lower total cost of ownership than incumbent technologies. Driven by these environmental and economic considerations we are seeing a global resurgence of interest in the heavy-duty transport sector towards utilizing natural gas as an alternative to diesel. While we will continue to invest in technology, we are positioned to take advantage of markets that are embracing products enabled by our years of investment in innovation as the world pivots to more practical and cost-effective solutions to decarbonize.  

    We are committed to providing sustainable, high-performance solutions that help our customers achieve their commercial and environmental goals, now and for years to come.”

    Dan Sceli, Chief Executive Officer

    2024 Highlights

    • Revenue was $302.3 million for 2024 and $75.1 million for the fourth quarter. Full year results were primarily driven by the transition of the Heavy-Duty OEM business into Cespira, partially offset by an increase in revenue in our Light-Duty segment. Cespira earned $22.8 million for the three months ended December 31, 2024 and $43.1 million for the period from June 3, 2024 through to December 31, 2024.
    • Net loss for the year ended December 31, 2024 was $21.8 million, or $1.27 loss per share, compared to net loss of $49.7 million for the prior year. Net loss for the fourth quarter in 2024 was $10.1 million, or $0.59 loss per share, compared to net loss of $13.9 million, or $0.81 loss per share, for the same period in 2023. For the year, the net positive change was primarily a result of improvements in gross margin, a $15.2 million gain on deconsolidation of the HPDI business in the formation of the joint venture with Volvo Group on June 3, 2024, reductions in operating expenditures and depreciation and amortization expense due to continuation of the HPDI business in Cespira, partially offset by higher income tax expense and foreign exchange losses in the year.
    • Adjusted EBITDA1 loss of $11.2 million, compared to a loss of $21.5 million in the prior year. Adjusted EBITDA for the fourth quarter was a loss of $1.8 million.
    • Cash and cash equivalents were $37.6 million for the year ended December 31, 2024. Cash provided by operating activities during the year was $7.2 million.
    • Announced the closing the HPDI joint venture, Cespira, with Volvo Group, working together to accelerate the commercialization and global adoption of the HPDI™ fuel system technology for long-haul and off-road applications.

    1 Adjusted earnings before interest, taxes and depreciation is a non-GAAP measure. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES in Westport’s Management Discussion and Analysis for the reconciliation.

    Consolidated Results            
    ($ in millions, except per share amounts)     Over / (Under)
    %    		     Over / (Under)
    %
      4Q24 4Q23 FY24 FY23
    Revenue $75.1 $87.2 (14)% $302.3 $331.8   (9)%  
    Gross Profit(2) 14.3 8.0 79% 57.6 48.9   18%  
    Gross Margin(2) 19% 9% — 19% 15%   —  
    Income (loss) from Investments Accounted for by the Equity Method(1) (2.0) 0.1 (2,100)% (5.4) 0.8   (775)%  
    Net Loss (10.1) (13.9) 27% (21.8) (49.7)   56%  
    Net Loss per Share – Basic (0.59) (0.81) 27% (1.27) (2.90)   56%  
    Net Loss per Share – Diluted (0.59) (0.81) 27% (1.27) (2.90)   56%  
    EBITDA (2) (6.1) (10.9) 44% (6.6) (35.9)   82%  
    Adjusted EBITDA (2) (1.8) (10.0) 82% (11.2) (21.5)   48%  

    (1)This includes income or loss primarily from our investments in Cespira and Minda Westport Technologies Limited
    (2)Gross margins, EBITDA and Adjusted EBITDA are non-GAAP measures. Please refer to GAAP and NON-GAAP FINANCIAL MEASURES for the reconciliation to equivalent GAAP measures and limitations on the use of such measures.

    Segment Information

    Light-Duty Segment

    Revenue for the three months and year ended December 31, 2024 was $68.0 million and $262.2 million, respectively, compared with $63.4 million and $263.6 million for the three months and year ended December 31, 2023.

    Light-Duty revenue increased by $4.6 million for the three months ended December 31, 2024 as compared to the prior year. This was primarily driven by a significant increase in sales of LPG fuel system solutions to a global Original Equipment Manufacturer (“OEM”) for their Euro 6 vehicle applications in our light-duty OEM business and an increase in delayed OEM business, partially offset by lower revenues in other business lines.

    Light-Duty revenue decreased by $1.4 million for the year ended December 31, 2024 compared to the prior year. This was primarily driven by a decrease in sales in our delayed OEM business in the first half of 2024, decrease in sales to customers in developing markets, and our fuel storage business. This was partially offset by the aforementioned increase in sales of LPG fuel system solutions in our light-duty OEM business.

    Gross profit increased by $2.0 million to $14.0 million, or 21% of revenue for the three months ended December 31, 2024, as compared to $12.0 million, or 19% of revenue, for the same prior year period. This was primarily driven by a change in sales mix with an increase in sales to European customers and a reduction in sales to developing regions along with an increase in sales volumes.

    Gross profit for the year ended December 31, 2024 increased by $6.3 million to $55.4 million, or 21% of revenue, compared to $49.1 million, or 19% of revenue, for the prior year. This was primarily driven by a change in sales mix with an increase in sales to European customers and a reduction in sales to developing regions. The segment’s manufacturing operations continues to implement operational improvement initiatives lowering its manufacturing overhead costs in the year. For the year ended December 31, 2024, Light-Duty recorded inventory write-downs of $2.1 million related to our restructuring activities in India for $0.9 million and $0.5 million related to components for markets that we have exited, and the remainder due to our periodic analysis of excess and obsolete inventory.

    Westport began supplying its Euro 6 LPG fuel system to its global OEM customer in early 2024. This production supply agreement has been instrumental in improving revenue and delivering higher margins, which more than offset the decline in revenue as a result of a key delayed OEM customer continuing to work through their inventory. Production for the Euro 7 LPG fuel system for the same global OEM customer is anticipated to begin mid-to-late 2025.

    High-Pressure Controls & Systems Segment

    Revenue for the three months and year ended December 31, 2024 was $1.4 million and $8.8 million, respectively, compared with $2.5 million and $12.0 million for the three months and year ended December 31, 2023. Revenue for the three months ended December 31, 2024 decreased by $1.1 million compared to the prior year period. Revenue for the year ended December 31, 2024 decreased $3.2 million compared to the prior year.

    The decrease in revenue for the three months and year ended December 31, 2024 compared to the prior year periods continues to be primarily driven by the general slowdown in hydrogen infrastructure development, leading to a slower adoption of automotive and industrial applications powered by hydrogen.

    Gross profit for the three months ended December 31, 2024 decreased by $0.4 million to nominal, or 0% of revenue, compared to $0.4 million, or 16% of revenue, for the same prior year period. This was primarily driven by lower sales volumes, increasing the per unit manufacturing costs in the quarter.

    Gross profit for the year ended December 31, 2024 decreased by $1.3 million to $1.5 million, or 17% of revenue, compared to $2.8 million, or 23% of revenue, for the prior year. This was primarily driven by decrease in sales volume for the year. The segment recorded $0.8 million in inventory write-downs in the year due to slow-moving inventory.

    Heavy-Duty OEM Segment

    Revenue for the three months and year ended December 31, 2024 includes revenue until the closing of the transaction to form Cespira, which occurred on June 3, 2024. Revenue for the three months and year ended December 31, 2024 was $5.7 million and $31.3 million, respectively, compared with $21.3 million and $56.2 million for the three months and year ended December 31, 2023.

    The decrease in revenue for the three months and year ended December 31, 2024 is a result of the continuation of the business in Cespira. Refer to the “Selected Cespira Financial Information” for more information on the performance of the business. Revenue earned in the three months ended December 31, 2024 reflects revenue earned from a transitional services agreement in place with Cespira that we expect to expire by the end of Q2 2026.

    Gross profit for the three months ended December 31, 2024 increased by $4.7 million to $0.3 million, or 5% of revenue, compared to negative $4.4 million or negative 21% of revenue, for the three months ended December 31, 2023. The Heavy-Duty OEM segment was impacted by a $4.5 million inventory write-down in the prior year period.

    Gross profit increased by $3.7 million to $0.7 million, or 2% of revenue, for the year ended December 31, 2024 compared to negative $3.0 million, or negative 5% of revenue, for the prior year. Heavy-Duty OEM recorded $0.4 million in inventory write-downs in the year. The segment was impacted by the aforementioned inventory write-down of $4.5 million in the prior year.

    Selected Cespira Financial Information

    We account for Cespira using the equity method of accounting. However, due to its significance to our long-term strategy and operating results, we disclose certain financial information from Cespira in notes 8 and 22 in our consolidated financial statements for the year ended December 31, 2024 and the period from June 3, 2024 to December 31, 2024.

    The following table sets forth a summary of the financial results of Cespira for the three months ended December 31, 2024 and the period between June 3, 2024 to December 31, 2024:

      (in millions of U.S. dollars)   Three months ended December 31,   Change   Year ended December 31,   Change
        2024   2023   $   %   2024   2023   $   %
    Revenue   $ 22.8     $ —     $ 22.8     — %   $ 43.1     $ —     $ 43.1     — %
    Gross profit     1.4       —       1.4     — %     0.5       —       0.5     — %
    Gross margin1     6 %     — %             1 %     — %        
    Operating loss     (4.8 )     —       (4.8 )   — %     (12.1 )     —       (12.1 )   — %
    Net loss attributable to the Company     (2.6 )     —       (2.6 )   — %     (6.7 )     —       (6.7 )   — %

    1Gross margin is non-GAAP financial measure. See the section ‘Non-GAAP Financial Measures’ for explanations and discussions of these non-GAAP financial measures or ratios.

    Cespira revenue was $22.8 million for the three months ended December 31, 2024. For the prior year period, the Heavy-Duty OEM segment, which included our HPDI business, earned $21.3 million. This was primarily driven by an increase in HPDI fuel systems sold in the period.

    Cespira gross profit was $1.4 million for the three months ended December 31, 2024. For the prior year period, the Heavy-Duty OEM segment had negative $4.4 million in gross profit primarily driven by the aforementioned $4.5 million inventory write-down in the prior year period.

    Cespira incurred operating losses of $4.8 million for the three months ended December 31, 2024. For the prior year quarter, the Heavy-Duty OEM had operating losses of $9.3 million. Aside from the aforementioned inventory write-down in the prior year period, the Heavy-Duty OEM had comparable operating losses compared to Cespira.

    As previously announced, Westport and Weichai are parties to a technology development and supply agreement which contains an obligation for Weichai to order, and Westport to supply, certain volumes of HPDI fuel system components prior to December 31, 2024. Significant orders for HPDI fuel system components against this agreement were not received prior to year-end. Westport and Cespira continue to collaborate with Weichai Power Co. Ltd (“Weichai Power”) on an HPDI fuel system equipped version of the Weichai Power engine platforms. The parties are currently discussing the next stages of this work and the obligations of each party going forward.

    Liquidity and Going Concern

    In addition, as disclosed in Westport Management Discussion & Analysis, for the year ended December 31, 2024, we continue to sustain operating losses and use cash to support our business activities. Cash provided by operating activities was $7.2 million for the year ended December 31, 2024 was primarily driven by reductions in working capital.

    As at December 31, 2024, we had cash and cash equivalents of $37.6 million and long-term debt of $33.7 million, of which $14.7 million was current. Based on our projected capital expenditures, debt servicing obligations and operating requirements under our current business plan, we are projecting that our cash and cash equivalents will not be sufficient to fund our operations through the next twelve months from the date of the issuance of this MD&A. These conditions raise substantial doubt about Westport’s ability continue as a going concern within one year after the date our December 31, 2024 Consolidated Financial Statements are issued.

    We plan to improve our liquidity position by selling certain subsidiaries in Europe and Argentina which comprise substantially all the assets and liabilities reported within the Light-Duty segment and continue our cost reduction initiatives. On March 30, 2025, we entered into a share purchase agreement (“SPA”) with a wholly-owned investment vehicle of Heliaca Investments Coöperatief U.A. (“Heliaca Investments”), a Netherlands based investment firm supported by Ramphastos Investment Management B.V. a prominent Dutch venture capital and private equity firm, to sell all of the issued and outstanding shares of Westport Fuel Systems Italia S.r.l for a base purchase price of $73.1 million (€67.7 million), subject to certain adjustments and potential earnouts of up to an estimated $6.5 million (€6.0 million) if certain conditions are achieved, in accordance with the terms of the Share Purchase Agreement. If we are successful in closing the sale, we will receive sufficient cash to fund our operations for the next twelve months and alleviate the risk of substantial doubt identified. As of the date of issuance of our December 31, 2024 financial statements, we are seeking shareholder approval of the plan to complete the sale of these businesses to the buyer. As such, there can be no assurances that Westport will be successful in obtaining sufficient funding. Accordingly, we concluded under the accounting standards that these plans do not alleviate the substantial doubt about Westport’s ability to continue as a going concern.

    Divestment of the Light-Duty Business and 2025 Outlook

    Westport recently announced the proposed divestment of its Light-Duty business, which includes the light-duty OEM, delayed OEM, and independent aftermarket businesses (the “Transaction”). The Transaction is designed to focus the Company’s strategy and streamline its operations allowing Westport to direct its energy on solution to address hard to decarbonize sectors like long-haul, heavy-duty trucking and off-road applications that can take advantage of Cespira and our High-Pressure Controls & Systems technology – where Westport sees the largest opportunities to grow and where the Company has a unique and differentiated offering generating interest with customers as the world transitions to a more practical and easier to adopt approach to decarbonization.

    Highlights of the Transaction include:

    • Provides immediate up front proceeds to alleviate liquidity concerns, strengthening the balance sheet and funds near-term growth in Cespira and the High-Pressure Controls & Systems business;
    • Brings forward more cash today than the Light-Duty business was projected to earn over 5-years on an undiscounted cash basis; and
    • Enables management to focus exclusively on the higher growth HPDI and high-pressure segments.

    In light of the evolving market and regulatory environment, over the long term, the Light-Duty business’ ability to grow LPG / CNG sales in developed markets is expected to continue facing increased competition from pure electrification or petrol – electrification hybrids.

    The base purchase price of the Transaction is $73.1 million (€67.7 million), subject to certain adjustments and potential earnouts of up to an additional $6.5 million (€6.0 million) if certain conditions are achieved, in accordance with the terms of the Share Purchase Agreement. The purchaser is a wholly-owned investment vehicle of Heliaca Investments Coöperatief U.A. (“Heliaca Investments”), a Netherlands based investment firm supported by Ramphastos Investment Management B.V. a prominent Dutch venture capital and private equity firm.

    Net proceeds from the transaction are to be used to bolster the balance sheet, fund organic growth opportunities through Cespira and High-Pressure Controls & Systems over the near term as well as opportunistic bolt on acquisitions. The Transaction ultimately eliminates future restructuring costs required by the Italian operations in the light-duty business.

    Westport is shifting to a smaller, more focused organization, that is positioned to provide solutions to decarbonize challenging segments of the mobility and industrial markets.​ Westport has 30 years of experience delivering component solutions and developing HPDI fuel technology​. We are focused on scaling our alternative fuel-based solutions, including advancements in CNG, RNG, and hydrogen systems, while navigating a rapidly evolving transportation landscape.

    The Company anticipates that the closing of the transaction will occur late in Q2 2025, subject to receiving shareholder approval.

    Conference call

    Westport has scheduled a conference call for Monday, March 31, 2025, at 10:30 am Pacific Time (1:30 pm Eastern Time) to discuss these results. To access the conference call please register at https://register.vevent.com/register/BI1ba7402b85a5491292e48354a2e80b90. 

    The live webcast of the conference call can be accessed through the Westport website at https://investors.wfsinc.com/. 

    Participants may register up to 60 minutes before the event by clicking on the call link and completing the online registration form. Upon registration, the user will receive dial-in info and a unique PIN, along with an email confirming the details.

    The webcast will be archived on Westport’s website at https://investors.wfsinc.com. 

    Financial Statements and Management’s Discussion and Analysis

    To view Westport full financials for the fourth quarter and year ended December 31, 2024, please visit https://investors.wfsinc.com/financials/. 

    About Westport Fuel Systems

    At Westport Fuel Systems, we are driving innovation to power a cleaner tomorrow. We are a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global transportation industry. Our technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America, and South America, we serve our customers in approximately 70 countries with leading global transportation brands. At Westport Fuel Systems, we think ahead. For more information, visit www.wfsinc.com.

    Cautionary Note Regarding Forward Looking Statements
    This press release contains forward-looking statements, including statements regarding future strategic initiatives and future growth, future of our development programs (including those relating to HPDI and Hydrogen) including testing to the HPDI fuel system, scaling our alternative fuel-based solutions, our expectations for 2025 and beyond, including the demand for our products, the future success of our business and technology strategies, shareholder approval of the Transaction, our ability to successfully close the Transaction and realize the benefits therefrom, including, potential earn-out payments, the Transaction alleviating liquidity concerns, our focus on providing affordable solutions to decarbonize long haul and heavy-duty trucking, our ability to bolster our balance sheet, fund organic growth as well as opportunistic bolt on acquisitions, a shift to operating as a smaller, more efficient organization. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward-looking statements. These risks, uncertainties and assumptions include those related to our revenue growth, operating results, industry and products, changes in business strategy, shifts in market demand, the general economy including impacts due to inflation, the effects of competition and pricing pressures, conditions of and access to the capital and debt markets, solvency, governmental policies, trade restrictions or other changes to international trade agreements, sanctions and regulation including the imposition of tariffs, technology innovations, fluctuations in foreign exchange rates, operating expenses, continued reduction in expenses, ability to successfully commercialize new products, the performance of our joint ventures, the availability and price of natural gas, new environmental regulations, the acceptance of and shift to natural gas and hydrogen vehicles, the relaxation or waiver of fuel emission standards, the inability of fleets to access capital or government funding to purchase natural gas vehicles, the development of competing technologies, our ability to adequately develop and deploy our technology, the actions and determinations of our joint venture and development partners, the effects and duration of the Russia-Ukraine conflict, supply chain disruptions as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward-looking statements except as required by National Instrument 51-102. The contents of any website, RSS feed or twitter account referenced in this press release are not incorporated by reference herein.

    Inquiries:
    Investor Relations
    T: +1 604-718-2046
    invest@wfsinc.com

    GAAP and Non-GAAP Financial Measures

    Our financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP“). These U.S. GAAP financial statements include non-cash charges and other charges and benefits that may be unusual or infrequent in nature or that we believe may make comparisons to our prior or future performance difficult. In addition to conventional measures prepared in accordance with U.S. GAAP, Westport and certain investors use EBITDA and Adjusted EBITDA as an indicator of our ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures. Management also uses these non-GAAP measures in its review and evaluation of the financial performance of Westport. EBITDA is also frequently used by investors and analysts for valuation purposes whereby EBITDA is multiplied by a factor or “EBITDA multiple” that is based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company. We believe that these non-GAAP financial measures also provide additional insight to investors and securities analysts as supplemental information to our U.S. GAAP results and as a basis to compare our financial performance period-over-period and to compare our financial performance with that of other companies. We believe that these non-GAAP financial measures facilitate comparisons of our core operating results from period to period and to other companies by, in the case of EBITDA, removing the effects of our capital structure (net interest income on cash deposits, interest expense on outstanding debt and debt facilities), asset base (depreciation and amortization) and tax consequences. Adjusted EBITDA provides this same indicator of Westports’ EBITDA from continuing operations and removing such effects of our capital structure, asset base and tax consequences, but additionally excludes any unrealized foreign exchange gains or losses, stock-based compensation charges and other one-time impairments and costs which are not expected to be repeated in order to provide greater insight into the cash flow being produced from our operating business, without the influence of extraneous events.

    Segment Information

    EBITDA and Adjusted EBITDA are intended to provide additional information to investors and analysts and do not have any standardized definition under U.S. GAAP, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with U.S. GAAP. EBITDA and Adjusted EBITDA exclude the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operations as determined under U.S. GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently.

    Segment earnings or losses before income taxes, interest, depreciation, and amortization (“Segment EBITDA”) is the measure of segment profitability used by the Company. The accounting policies of our reportable segments are the same as those applied in our consolidated financial statements. Management prepared the financial results of the Company’s reportable segments on basis that is consistent with the manner in which Management internally disaggregates financial information to assist in making internal operating decisions. Certain common costs and expenses, primarily corporate functions, among segments differently than we would for stand-alone financial information prepared in accordance with GAAP. These include certain costs and expenses of shared services, such as IT, human resources, legal, finance and supply chain management. Segment EBITDA is not defined under US GAAP and may not be comparable to similarly titled measures used by other companies and should not be considered a substitute for net earnings or other results reported in accordance with GAAP. Reconciliations of reportable segment information to consolidated statement of operations can be found in section “NON-GAAP FINANCIAL MEASURES & RECONCILIATIONS” within this press release.

      Year ended December 31, 2024
      Light-Duty   High-Pressure Controls & Systems   Heavy-Duty OEM   Cespira   Total Segment
    Revenue $ 262.2   $ 8.8     $ 31.3     $ 43.1     $ 345.4  
    Cost of revenue   206.8     7.3       30.6       42.6       287.3  
    Gross profit   55.4     1.5       0.7       0.5       58.1  
    Operating expenses:
    Research & development   13.0     4.4       4.2       4.7       26.3  
    General & administrative   19.2     1.0       3.1       5.6       28.9  
    Sales & marketing   9.9     0.7       0.9       1.0       12.5  
    Depreciation & amortization   2.6     0.3       0.1       1.7       4.7  
    Equity income   1.3     —       —       —       1.3  
    Add back: Depreciation & amortization1   6.4     0.5       1.4       3.8       12.1  
    Segment EBITDA $ 18.4   $ (4.4 )   $ (6.2 )   $ (8.7 )   $ (0.9 )
      Year ended December 31, 2023
      Light-Duty   High-Pressure Controls & Systems   Heavy-Duty OEM   Total Segment
    Revenue $ 263.6   $ 12.0     $ 56.2     $ 331.8  
    Cost of revenue   214.5     9.2       59.2       282.9  
    Gross profit   49.1     2.8       (3.0 )     48.9  
    Operating expenses:
    Research & development   13.1     3.6       9.3       26.0  
    General & administrative   21.6     1.3       6.4       29.4  
    Sales & marketing   10.6     0.7       2.9       14.1  
    Depreciation & amortization   3.2     0.2       0.4       3.8  
    Equity income   0.8     —       —       0.8  
    Add back: Depreciation & amortization1   6.7     0.4       4.9       11.9  
    Segment EBITDA $ 8.1   $ (2.6 )   $ (17.1 )   $ (11.6 )


    NON-GAAP FINANCIAL MEASURES RECONCILIATION

    Gross Profit   Years ended December 31,
    (expressed in millions of U.S. dollars)   2024   2023
    Revenue   $ 302.3   $ 331.8
    Less: Cost of revenue   $ 244.7   $ 282.9
    Gross Profit   $ 57.6   $ 48.9
    Gross Margin as a percentage of Revenue   Years ended December 31,
    (expressed in millions of U.S. dollars)     2024       2023  
    Revenue   $ 302.3     $ 331.8  
    Gross Margin   $ 57.6     $ 48.9  
    Gross Margin as a percentage of Revenue     19 %     15 %
      Year ended December 31, 2024
      Total Segment   Less: Cespira   Add: Corporate & unallocated   Total Consolidated
    Revenue $ 345.4   $ 43.1   $ —     $ 302.3  
    Cost of revenue   287.3     42.6     —       244.7  
    Gross profit   58.1     0.5     —       57.6  
    Operating expenses:
    Research & development   26.3     4.7     —       21.6  
    General & administrative   28.9     5.6     14.4       37.7  
    Sales & marketing   12.5     1.0     1.2       12.7  
    Depreciation & amortization   4.7     1.7     0.4       3.4  
    Equity income (loss)   1.3     —     (6.7 )     (5.4 )
      Year ended December 31, 2023
      Total Segment   Add: Corporate & unallocated   Total Consolidated
    Revenue $ 331.8   $ —   $ 331.8
    Cost of revenue   282.9     —     282.9
    Gross profit   48.9     —     48.9
    Operating expenses:
    Research & development   26.0     —     26.0
    General & administrative   29.4     14.8     44.2
    Sales & marketing   14.1     2.2     16.3
    Depreciation & amortization   3.8     0.5     4.3
    Equity income   0.8     —     0.8
    Reconciliation of Segment EBITDA to Loss before income taxes   Years ended December 31,
        2024       2023  
    Total Segment EBITDA   $ (0.9 )   $ (11.6 )
    Adjustments:
    Depreciation and amortization     8.7       12.5  
    Cespira’s Segment EBITDA     (8.7 )     —  
    Cespira’s equity loss     6.7       —  
    Corporate and unallocated operating expenses     15.6       17.0  
    Foreign exchange loss     6.2       4.0  
    Loss on sale of assets     0.7       —  
    Gain on deconsolidation     (15.2 )     —  
    Loss on sale of investment     0.4       —  
    Impairment of long-term investment     —       0.4  
    Loss on extinguishment of royalty payable     —       2.9  
    Interest on long-term debt and accretion of royalty payable     2.8       3.0  
    Interest and other income, net of bank charges     (1.2 )     (2.7 )
    Loss before income taxes   $ (16.9 )   $ (48.7 )
    EBITDA and Adjusted EBITDA                
    Three months ended   31-Mar-23   30-Jun-23   30-Sep-23   31-Dec-23   31-Mar-24   30-Jun-24   30-Sep-24   31-Dec-24
    Income (loss) before income taxes   $         (9.7 )   $         (13.0 )   $         (12.0 )   $         (14.0 )   $         (12.9 )   $         6.8             $         (2.5 )   $         (8.3 )
    Interest expense, net             0.4                       (0.1 )             0.2                       (0.2 )             0.5                       0.5                       0.4                       0.2          
    Depreciation and amortization             3.0                       3.0                       3.2                       3.3                       3.2                       1.7                       1.8                       2.0          
    EBITDA   $         (6.3 )   $         (10.1 )   $         (8.6 )   $         (10.9 )   $         (9.2 )   $         9.0             $         (0.3 )   $         (6.1 )
    Stock based compensation (recovery)   $         0.7             $         0.8             $         (0.3 )   $         1.4             $         0.3             $         1.2             $         (0.1 )   $         —          
    Unrealized foreign exchange (gain) loss   $         1.1             $         2.4             $         1.4             $         (0.9 )   $         1.8             $         0.1             $         (1.1 )   $         5.4          
    Loss on extinguishment of royalty payable   $         —             $         2.9             $         —             $         —             $         —             $         —             $         —             $         —          
    Severance costs   $         —             $         —             $         4.5             $         —             $         0.5             $         0.2             $         0.1             $         0.1          
    Gain on deconsolidation   $         —             $         —             $         —             $         —             $         —             $         (13.3 )   $         —             $         (1.9 )
    Loss on sale of investment   $         —             $         —             $         —             $         —             $         —             $         —             $         0.4             $         —          
    Restructuring costs   $         —             $         —             $         —             $         —             $         —             $         0.8             $         0.2             $         —          
    Loss on sale of assets   $         —             $         —             $         —             $         —             $         —             $         —             $         —             $         0.7          
    Impairment of long-term investment   $         —             $         —             $         —             $         0.4             $         —             $         —             $         —             $         —          
    Adjusted EBITDA   $         (4.5 )   $         (4.0 )   $         (3.0 )   $         (10.0 )   $         (6.6 )   $         (2.0 )   $         (0.8 )   $         (1.8 )
    WESTPORT FUEL SYSTEMS INC.
    Consolidated Balance Sheets
    (Expressed in thousands of United States dollars, except share amounts)
    December 31, 2024 and 2023
        December 31,
          2024       2023  
    Assets        
    Current assets:        
    Cash and cash equivalents (including restricted cash)   $ 37,646     $ 54,853  
    Accounts receivable     73,054       88,077  
    Inventories     53,526       67,530  
    Prepaid expenses     5,660       6,323  
    Total current assets     169,886       216,783  
    Long-term investments     39,732       4,792  
    Property, plant and equipment     41,956       69,489  
    Operating lease right-of-use assets     19,019       22,877  
    Intangible assets     5,277       6,822  
    Deferred income tax assets     9,695       11,554  
    Goodwill     2,876       3,066  
    Other long-term assets     3,180       20,365  
    Total assets   $ 291,621     $ 355,748  
    Liabilities and Shareholders’ Equity        
    Current liabilities:        
    Accounts payable and accrued liabilities   $ 88,123     $ 95,374  
    Current portion of operating lease liabilities     2,624       3,307  
    Short-term debt     —       15,156  
    Current portion of long-term debt     14,660       14,108  
    Current portion of warranty liability     3,861       6,892  
    Total current liabilities     109,268       134,837  
    Long-term operating lease liabilities     16,433       19,300  
    Long-term debt     19,067       30,957  
    Warranty liability     1,456       1,614  
    Deferred income tax liabilities     4,029       3,477  
    Other long-term liabilities     4,343       5,115  
    Total liabilities     154,596       195,300  
    Shareholders’ equity:        
    Share capital:        
    Unlimited common and preferred shares, no par value        
    17,282,934 (2023 – 17,174,502) common shares issued and outstanding     1,245,805       1,244,539  
    Other equity instruments     9,472       9,672  
    Additional paid-in-capital     11,516       11,516  
    Accumulated deficit     (1,096,275 )     (1,074,434 )
    Accumulated other comprehensive loss     (33,493 )     (30,845 )
    Total shareholders’ equity     137,025       160,448  
    Total liabilities and shareholders’ equity   $ 291,621     $ 355,748  
    WESTPORT FUEL SYSTEMS INC.  
    Consolidated Statements of Operations and Comprehensive Income (Loss)  
    (Expressed in thousands of United States dollars, except share and per share amounts)  
    Years ended December 31, 2024 and 2023  
        Years ended December 31,
          2024       2023  
    Revenue   $ 302,299     $ 331,799  
    Cost of revenue     244,708       282,862  
    Gross profit     57,591       48,937  
    Operating expenses:        
    Research and development     21,587       26,003  
    General and administrative     37,679       44,234  
    Sales and marketing     12,676       16,278  
    Foreign exchange loss     6,248       3,974  
    Depreciation and amortization     3,367       4,299  
    Loss on sale of assets     703       32  
          82,260       94,820  
    Loss from operations     (24,669 )     (45,883 )
             
    Income from investments accounted for by the equity method     (5,402 )     780  
    Gain on deconsolidation     15,198       —  
    Loss on sale of investment     (352 )     —  
    Loss on extinguishment of royalty payable     —       (2,909 )
    Interest on long-term debt and accretion of royalty payable     (2,797 )     (2,981 )
    Impairment of long-term investment     —       (413 )
    Interest and other income, net of bank charges     1,161       2,690  
    Loss before income taxes     (16,861 )     (48,716 )
    Income tax expense (recovery):        
    Current     3,183       1,786  
    Deferred     1,797       (784 )
          4,980       1,002  
    Net loss for the year     (21,841 )     (49,718 )
    Other comprehensive income (loss):        
    Cumulative translation adjustment     (2,535 )     4,473  
    Ownership share of equity method investments’ other comprehensive loss   $ (113 )   $ —  
        $ (2,648 )   $ 4,473  
    Comprehensive loss   $ (24,489 )   $ (45,245 )
    Loss per share:        
    Net loss per share – basic and diluted   $ (1.27 )   $ (2.90 )
    Weighted average common shares outstanding:        
    Basic and diluted     17,248,090       17,173,016  
    WESTPORT FUEL SYSTEMS INC.
    Consolidated Statements of Cash Flows
    (Expressed in thousands of United States dollars)
    Years ended December 31, 2024 and 2023
        Years ended December 31,
          2024       2023  
             
    Operating activities:        
    Net loss for the year   $ (21,841 )   $ (49,718 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
    Depreciation and amortization     8,661       12,490  
    Stock-based compensation expense     1,066       1,727  
    Unrealized foreign exchange loss     6,248       3,974  
    Deferred income tax expense (recovery)     1,797       (784 )
    Loss (income) from investments accounted for by the equity method     5,402       (780 )
    Interest on long-term debt and accretion of royalty payable     74       9  
    Impairment of long-term investment     —       413  
    Change in inventory write-downs to net realizable value     3,283       7,066  
    Gain on deconsolidation     (15,198 )     —  
    Loss on sale of investment     352       —  
    Net loss on sale of assets     627       32  
    Loss on extinguishment of royalty payable     —       2,909  
    Change in bad debt expense     282       56  
    Changes in operating assets and liabilities:        
    Accounts receivable     25,567       5,340  
    Inventories     (6,836 )     9,481  
    Prepaid expenses     (153 )     2,869  
    Accounts payable and accrued liabilities     2,233       (2,448 )
    Warranty liability     (4,380 )     (5,829 )
    Net cash provided by (used in) operating activities     7,184       (13,193 )
    Investing activities:        
    Purchase of property, plant and equipment     (16,923 )     (15,574 )
    Proceeds on sale of investments     29,994       —  
    Proceeds on sale of assets     998       161  
    Dividends received from investments accounted for by the equity method     297       —  
    Capital contributions to investments accounted for by the equity method     (9,900 )     —  
    Net cash provided by (used in) investing activities     4,466       (15,413 )
    Financing activities:        
    Drawings on operating lines of credit and long-term facilities     19,336       46,367  
    Repayment of operating lines of credit and long-term facilities     (44,546 )     (39,904 )
    Payment of royalty payable     —       (8,687 )
    Net cash used in financing activities     (25,210 )     (2,224 )
    Effect of foreign exchange on cash and cash equivalents     (3,647 )     (501 )
    Net decrease in cash and cash equivalents     (17,207 )     (31,331 )
    Cash and cash equivalents, beginning of year (including restricted cash)     54,853       86,184  
    Cash and cash equivalents, end of year (including restricted cash)     37,646       54,853  

    The MIL Network –

  • MIL-OSI Global: Ghana’s e-levy: 3 lessons from the abolished mobile money tax

    Source: The Conversation – Africa – By Max Gallien, Research Fellow, Institute of Development Studies

    The first budget speech of Ghana’s new government on 11 March painted a picture of an economy in crisis, facing high debt and fiscal mismanagement. The finance minister, Cassiel Ato Forson, acknowledged that key International Monetary Fund performance targets would be missed and announced drastic spending cuts.

    However, most Ghanaians just wanted to know whether the minister would announce the scrapping of the country’s electronic transfer levy (or e-tax), as he’d indicated he would.

    He did, a decision parliament endorsed unanimously the next day.

    The e-levy, a fee on mobile money transactions, was introduced in 2022. Ghanaians immediately united around the issue in fierce opposition, a sentiment that grew as the tax took effect.



    Read more:
    Ghana’s e-levy is unfair to the poor and misses its revenue target: a lesson in mobile money tax design

    Both major parties had campaigned for its removal in the run-up to elections held in December 2024.

    How did the e-levy become so unpopular, and what will repealing it mean?

    Over three years, researchers from the International Centre for Tax and Development worked with partners in Ghana to study the e-levy as part of our Digitax research programme. This study generated knowledge and evidence at the interface of digital financial services, digital identities and tax.

    The e-levy’s intense politicisation and complex design made it an interesting case of a wider trend of mobile money taxes in the region. We learned more about the e-levy’s impact on informal sector workers in Accra, knowledge and sentiments, registered merchant exemptions and mobile money usage.

    Based on this research, three key lessons emerge.

    Firstly, like other taxes on mobile money, the e-levy has come to be an important source of revenue in Ghana, even if it did not live up to initial optimistic estimates of its potential.

    Secondly, beyond the revenue it raised directly, the real potential of the e-levy – and loss if it is completely abolished – lay in the data it produced. It was enabling the Ghana Revenue Authority to uncover users with significant incomes who were not registered for income tax.

    Thirdly, the new consensus against the e-levy has arisen because important stakeholders such as mobile money providers and public opinion were not adequately managed from the start.

    A difficult birth

    Much like its departure, the e-levy was announced during a time of fiscal distress. Mobile money transactions had expanded rapidly, particularly after COVID-19, making it an attractive tax target, especially for the informal sector.

    Given this growth in the digital financial sector coupled with the need for revenue, the e-levy targeted the value of electronic financial transactions.

    Introduced in the 2022 budget at 1.75%, with a 100 cedi (US$10) daily exemption, it was met with strong resistance. The budget was rejected, protests erupted, and negotiations ensued. The government attempted to win public support through town hall meetings, eventually reducing the rate to 1.5% and adding exemptions.

    It went ahead with implementation in May 2022, however.

    Negative sentiment persisted, fuelled by confusion and concerns about its implementation.

    The government framed the tax as being essential for national development and investment attraction. But efforts to justify the necessity and benefit of the tax seemed to fall short.



    Read more:
    New data on the e-levy in Ghana: unpopular tax on mobile money transfers is hitting the poor hardest

    Several International Centre for Tax and Development studies, nationally representative and one focusing on informal markets, found an overwhelming sense of dissatisfaction among Ghanaians.

    The studies also showed the grievances had less to do with the tax and its rates per se and more to do with how people viewed government and its trustworthiness to collect and spend money.

    Did Ghana’s e-levy work?

    New taxes are often unpopular, but that alone should not determine their fate.

    Other key indicators of performance include:

    Revenue: The e-levy met only 12% of the initial revenue target of GH₵6.96 billion (US$380 million). But, based on our research, we have concluded that this reflects poor forecasting rather than implementation failure. It still contributed about 1% of total tax revenue, which equated to about US$129 million annually.

    Mobile money usage: Many critics feared negative effects on financial inclusion. However, one study of this impact shows that while transactions initially dropped, they soon rebounded and continued to grow. Another International Centre for Tax and Development study found that exempted payments values and volumes increased, with registered merchants who benefited from this exemption developing greater trust in government policies.

    Equity and distributional effects: Despite exemptions, an International Centre for Tax and Development study focusing on the intended target of the e-levy, the informal sector, found that the e-levy as a whole was highly regressive. While the poorest were somewhat protected by the 100 cedi daily threshold, low-income mobile money users still bore the greatest tax burden. Additionally, with the high rate of inflation in Ghana, the unchanged daily threshold became less effective with time.

    This result is striking given that in its design, the e-levy is potentially less regressive than most mobile money taxes in Africa.

    Will it be missed?

    Given public hostility, its removal may be widely celebrated. However, it leaves a revenue gap that must be addressed. Ghana’s fiscal history suggests this could lead to new, potentially unpopular taxes.

    The bigger loss may be the dismantling of systems built to administer the e-levy. These new advances in tax administration allowed the country’s revenue authorities to track high-volume users who were not registered for income tax, offering a path towards more efficient taxation.

    As governments face mounting revenue pressures in an era of high debt and declining aid, careful attention must be paid to the politics of tax reform. Perhaps the e-levy’s greatest flaw was the haste with which it was introduced, without adequate stakeholder engagement. Uganda faced similar backlash from rushed mobile money taxation in 2018.

    Evidence shows that perceptions affect how users respond to taxes, and first impressions can be hard to overcome. So, it is essential to make sure they are seen as fair and appropriate from the start, so that they are sustainable.

    Max Gallien is a Research Lead at the International Centre for Tax and Development (ICTD). Through the ICTD, the research described in this article has been supported by the UK Foreign, Commonwealth and Development Office, the Norwegian Agency for Development Cooperation and the Gates Foundation.

    Martin Hearson is a Research Director at the International Centre for Tax and Development (ICTD). Through the ICTD, the research described in this article has been supported by the UK Foreign, Commonwealth and Development Office, the Norwegian Agency for Development Cooperation and the Gates Foundation.

    Mary Abounabhan is a Researcher at the International Centre for Tax and Development (ICTD) Through the ICTD, the research described in this article has also been supported by the UK Foreign, Commonwealth and Development Office, the Norwegian Agency for Development Cooperation and the Gates Foundation.

    – ref. Ghana’s e-levy: 3 lessons from the abolished mobile money tax – https://theconversation.com/ghanas-e-levy-3-lessons-from-the-abolished-mobile-money-tax-253285

    MIL OSI – Global Reports –

  • MIL-OSI Asia-Pac: Public transport service arrangements for departures of Hong Kong Sevens (2)

    Source: Hong Kong Government special administrative region

    Attention duty announcers, radio and TV stations:

    Please broadcast the following special announcement immediately, and repeat it at frequent intervals:

         Spectators of the Hong Kong Sevens held at the Kai Tak Sports Park are gradually dispersing. The Transport Department (TD) today (March 30) said that the overall traffic conditions have mostly been smooth so far:

         MTR: Spectators are urged to take the MTR to leave the venue as far as possible. The service of the Tuen Ma Line has been further enhanced and spare trains will be deployed as needed. Services of the East Rail Line and the Kwun Tong Line will also be enhanced accordingly;

         Taxis: The Taxi Pick-up/Drop-off Area has maintained normal services. The waiting time will be longer amid the dispersal peak and your patience is appreciated. The TD has made all-out efforts with the taxi trade to mobilise more taxis for picking up passengers, including disseminating real-time information on passengers queuing to the trade directly. The Kai Tak Sports Park Limited has also mobilised taxis via instant messaging platform; and

         Special bus routes: A total of 10 special bus routes departing for Central via Causeway Bay and Wan Chai, Siu Sai Wan, Tsim Sha Tsui, Mong Kok, Tseung Kwan O (Hang Hau), Tseung Kwan O (LOHAS Park), Tsing Yi, Sheung Shui, Tuen Mun and Tin Shui Wai are ready and will operate subject to the passenger demand.

         Spectators are advised to take heed of the real-time information via on-site broadcast and the “Easy Leave” (QR code displayed on-site) as well as the latest traffic news through the “HKeMobility” mobile application, radio and television broadcasts.

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Public transport service arrangements for departures of Hong Kong Sevens (roundup)

    Source: Hong Kong Government special administrative region

         The Transport Department (TD) today (March 30) said that, following the dispersal of the Hong Kong Sevens spectators from the Kai Tak Sports Park, the overall traffic conditions have mostly been smooth.

         The MTR Tuen Ma Line service has been further enhanced during dispersal, which basically met the passenger demand. In response to the passenger queue for taxi service at the Sung Wong Toi Road Taxi Pick-up/Drop-off Area during the peak period, the TD has made all-out efforts to mobilise the taxi trade for picking up passengers and the passenger queue has largely dissipated. In addition, the 10 special bus routes provided services for the outflux of spectators departing for major districts across the territory in an orderly manner.

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Union Minister of State for Power and New & Renewable Energy Shri Shripad Yesso Naik chairs the 3rd meeting of Group of Ministers constituted for addressing issues related to viability of distribution utilities in the country

    Source: Government of India

    Union Minister of State for Power and New & Renewable Energy Shri Shripad Yesso Naik chairs the 3rd meeting of Group of Ministers constituted for addressing issues related to viability of distribution utilities in the country

    Inflation-indexed and cost-reflective power tariffs need of the hour

    Use of AI and digital innovations for financial viability of power sector

    Need to review Net-metering and RPO provisions

    Prudent O&M cost and reasonable Return on Equity (RoE) should be allowed in Annual Revenue Requirement

    Posted On: 30 MAR 2025 10:48AM by PIB Delhi

    Union Minister of State for Power and New & Renewable Energy, Shri Shripad Yesso Naik, chaired the third meeting of Group of Ministers constituted for addressing issues related to viability of electricity distribution utilities in Lucknow today.

    Shri A. K Sharma, Energy Minister, Uttar Pradesh, Shri Gottipati Ravi Kumar, Energy Minister, Andhra Pradesh, Shri Pradyuman Singh Tomar, Energy Minister, Madhya Pradesh, Smt. Meghana Sakore Bordikar, Minister of State for Energy, Maharashtra and Shri Somendra Tomar, Minister of State for Energy, Uttar Pradesh attended the meeting. The meeting was also attended by senior officials from Central Government, State Governments, State Power Utilities of Member States, Power Finance Corporation (PFC) Ltd and REC Ltd.

    In his opening remarks, Union Minister of State welcomed Energy Ministers from the Member States and thanked Energy Minister, Uttar Pradesh, for hosting the meeting. He highlighted about the discussions held during the first two meetings of the GoM and the collective efforts required from the member States for improvement of power distribution sector. He highlighted the need for designing a mechanism for financial restructuring of liabilities of distribution utilities, lowering interest burden on utilities, development of storage solutions, facilitating daytime power supply for agriculture to lower the overall power purchase costs and reduce subsidy burdens.

    The Minister also highlighted the need for implementing AI and digital innovations and need for ensuring cost-reflective tariffs for financial viability of power sector. He added that implementing these measures shall help utilities improve the financial sustainability. He also emphasized the need for a scheme similar to UDAY.

    In his address Energy Minister, Uttar Pradesh thanked the Union Minister of State for having the 3rd meeting of the Group of Ministers in Lucknow.  He highlighted the achievements of the State of Uttar Pradesh in the power sector including adoption of RE technologies. He commended that the measures taken by the Government of India will have far reaching impact on making country’s distribution sector stronger and healthier. He emphasised on the need for expeditious growth of renewable sources of energy coupled with energy storage solutions so as to meet the future challenges of energy transition and growing power demand. Hon’ble Minister mentioned about the importance of the Government of India’s role in aiding human resources development for achieving better outputs.

    Joint Secretary (Distribution), Ministry of Power, GoI made a presentation highlighting key areas of intervention identified during first two meetings of the GoM and proposed measures to be taken by the stakeholders (Central Govt., State Govts. and Regulatory Commissions) to address the viability concern for deliberation.

    TATA power distribution, Odisha, as a special invitee, shared the best practices adopted and their journey toward making their DISCOMs profitable.

    The member States actively participated in the meeting and presented the overview of State DISCOMs. They gave valuable suggestions for improving the financial condition of DISCOMs. States of Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Maharashtra and Tamil Nadu made presentations on the subject.

    The contours of the Action plan identifying the ways to reduce the outstanding debts and losses of the distribution utilities and the means to bring them into profits, were discussed in detail.

    Emphasis was placed on the need for review of regulators’ performance for determining tariffs. The support from Government of India for Privatisation initiatives by State was suggested. The need for regulators to adapt to the latest developments in the sector including the current levels of RE integration, the requirements of capacity building and O&M costs, while finalizing the tariff, was also discussed. It was discussed that delays in payment of Government department dues and subsidies are forcing DISCOMs to resort to working capital loans, which are not being passed on in tariff. There are also delays in passing on of Fuel and Power Purchase Cost Adjustments in tariffs thus creating need for working capital which are not considered in Annual Revenue Requirements of the Utilities. To avoid future tariff shocks, it was suggested to link tariffs to annual inflation-linked tariff hike.

    The Group of Ministers reiterated its commitment and expressed resolve to take necessary measures for improving the financial viability of DISCOMs.

    In his Closing remarks, the Hon’ble Union Minister of State emphasized on the need for States to demonstrate greater political will and determination to make the power sector viable and urged the member States to work upon the ideas that have emerged during the meeting. It was recommended to invite All India DISCOM Association (AIDA) to the next GoM meeting for their suggestions.

    It was also unanimously decided to have 4th meeting of GoM in Andhra Pradesh in the month of April.

    *******

    Navin Sreejith

    (Release ID: 2116705) Visitor Counter : 216

    Read this release in: Hindi

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Public transport service arrangements for departures of Hong Kong Sevens

    Source: Hong Kong Government special administrative region

    Attention duty announcers, radio and TV stations:

    Please broadcast the following special announcement immediately, and repeat it at frequent intervals:

         All matches of the Hong Kong Sevens held at the Kai Tak Sports Park are scheduled to conclude after 7pm today (March 30). As more spectators are expected to disperse at the same time, the Transport Department (TD) urges those leaving the venue to take the MTR as far as possible. The TD has been steering public transport service arrangements and the overall traffic conditions have mostly been smooth so far:

         MTR: The service headway of the Tuen Ma Line will be further enhanced to about 3.5 minutes and spare trains will be deployed as needed to expedite the dispersal. The service level of the East Rail Line and the Kwun Tong Line will also be enhanced accordingly. Passengers can travel directly from Kai Tak Station or Sung Wong Toi Station to East Tsim Sha Tsui Station within 15 minutes, and it only takes some 24 minutes to Central Station via interchanging at Hung Hom Station and Admiralty Station;

         Taxis: In view of an outflux of spectators, the waiting time is anticipated to be longer and your patience is appreciated. The TD has made all-out efforts with the taxi trade to mobilise more taxis for picking up passengers, including disseminating real-time information on passengers queuing to the trade directly. The Kai Tak Sports Park Limited has also mobilised taxis via instant messaging platform; and

         Special bus routes: The route departing for Central (Causeway Bay and Wan Chai) will be advanced to commence service from 6pm while the remaining special bus routes will operate after the tournaments conclude, subject to the passenger demand and traffic conditions on-site.

         Spectators are advised to take heed of the real-time information via on-site broadcast and the “Easy Leave” (QR code displayed on-site) as well as the latest traffic news through the “HKeMobility” mobile application, radio and television broadcasts.

    MIL OSI Asia Pacific News –

  • MIL-Evening Report: These 3 arguments are part of the long game in Trump’s trade wars

    Source: The Conversation (Au and NZ) – By Markus Wagner, Professor of Law and Director of the UOW Transnational Law and Policy Centre, University of Wollongong

    Since returning to office in January, US President Donald Trump has doubled down on using trade measures – mostly tariffs – to reshape global trade. He plans to impose reciprocal tariffs on what he has labelled “Liberation Day”, April 2.

    The Trump administration claims US producers face higher tariffs and more restrictions abroad than foreign producers when they export to the US.

    The administration also examined tax systems such as Europe’s Value Added Tax and Australia’s GST, import regulations and other factors. It believes – mostly wrongly – these unfairly disadvantage American businesses and contribute to the US trade deficit.

    As with many Trump initiatives, actual tariffs often change significantly between announcement and implementation, if they are implemented at all.

    His reciprocal tariffs have been narrowed to imports from the US’ largest trading partners instead of imports from all countries. There may also be tariffs on specific sectors. Last week, Trump announced 25% tariffs on cars from overseas. At the weekend said he “couldn’t care less” if this made cars more expensive for US consumers.

    Coercive control, revenue and re-shoring

    President Trump has raised a myriad of puzzling arguments in favour of tariffs. They largely fall into three categories:

    The first is the use of tariffs as a coercion tool against other countries. In the first Trump presidency, trading partners were pressured to renegotiate trade agreements such as the renamed but largely identical US-Mexico-Canada agreement.

    Similarly, the Trump administration used the threat of tariffs to gain market access, elicit better trade terms or as a form of weaponised trade to achieve unrelated foreign policy goals.

    Last week, Trump suggested he would consider a reduction in tariffs on China in exchange for a sale of TikTok by its Chinese owner.

    The second category is the use of tariffs as a source of revenue. The Trump administration envisions tariffs to be collected by a yet-to-be-created External Revenue Service. This would form the flip side of the powerful and much-maligned Internal Revenue Service.

    Trump claims tariffs will be paid by the exporting country. This would be in theory to finance future tax cuts. In practice, tariffs are almost always paid by the importer of goods and usually get passed on to consumers.

    There is a potential contradiction between these two rationales. It appears the Trump administration wants to make at least some tariffs permanent. But doing so would almost nullify the use of tariffs as a bargaining chip and coercion tool.

    The final category is to encourage companies to “re-shore” production to the US to avoid tariffs and to support US jobs.

    This would signal a reversal of what 1994 presidential candidate Ross Perot, speaking of the North American Free Trade Agreement, called the “giant sucking sound going south”. Some manufacturing may return to the US. But the high costs of building new factories, re-routing supply chains and uncompetitive US labour costs will hinder large-scale re-shoring efforts.

    A long-term plan?

    The Trump administration’s trade moves can be seen as part of a larger strategy to reshape the US domestic and the global economic system.

    In a recent speech, US Vice-President JD Vance argued for a structural reshaping of the US economy, to increase domestic innovation capacity.

    Vance warned “deindustrialisation poses risks both to our national security and our workforce”. Vance himself sums up this approach by characterising tariffs as a “necessary tool to protect our jobs and our industries”.

    This line of argument overlooks a number of critical factors. Tariffs lead to higher prices for consumers. Unless currencies adjust, the inflationary impact could disadvantage the very people that can least afford it.

    The same is true if other countries respond to US trade measures by responding in kind, as Canada and the European Union already have.

    American farmers and other export-oriented industries will be hard hit. From a strategic perspective, the US position as global leader has suffered a severe blow. Some countries are openly pivoting to its geopolitical and economic rival, China.

    If this scenario comes to pass, the US pullback – an outright withdrawal is unlikely – from the highly integrated international trading system might end up a more chaotic version of the UK’s pursuit of Brexit.

    A step back in time

    The world of liberalised trade that followed the end of the Cold War in 1990 is ending. Countries will turn inwards, prioritising their economic security and resilience. The costs of this turn away from multilateralism and international institutions, however, are not just economic.

    The close economic integration we have witnessed post-1990 has led to reduced uncertainty in international economic relations, increased international security and greater prosperity.

    A return of the “beggar thy neighbour” policies of the 1930s would be a dangerous path, with the world inching closer to the abyss. “Liberation Day” might push the world over the edge.



    Read more:
    What are non-tariff barriers – and why is agriculture so exposed?

    Markus Wagner does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. These 3 arguments are part of the long game in Trump’s trade wars – https://theconversation.com/these-3-arguments-are-part-of-the-long-game-in-trumps-trade-wars-252516

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI China: In pics: Ethnic charm of young dancer glows on stage of Pamir Plateau

    Source: China State Council Information Office 3

    Amangul Wapik (R) and her brother prepare milk tea for guests in Sarijilga Village of Taxkorgan Tajik Autonomous County, northwest China’s Xinjiang Uygur Autonomous Region, March 21, 2025.

    The cultural performance troupe of Taxkorgan Tajik Autonomous County is renowned for its efforts in preserving local culture, creating and performing art, and facilitating cultural exchange and cooperation. Aside from giving art performances during important festivals and conducting regular performances for tourists, the troupe also engages in artistic exchanges in rural areas and communities, enriching the cultural lives of local residents.

    Amangul Wapik, a 25-year-old dancer, joined the troupe in 2019. “Dancing is my passion. I particularly enjoy the joyful and carefree feelings on stage,” Amangul said.

    With assistance from the troupe, she has gradually developed her own performance style, blending modern and traditional dance elements through extensive training and practical performances.

    From March to October each year, the troupe primarily focuses on tourism-related performances due to the rapid development of the local tourism industry. Amangul and her colleagues always give passionate performances, showcasing the rich cultural traditions of their hometown. (Xinhua/Hu Huhu)

    MIL OSI China News –

  • MIL-OSI Australia: Is your practice ready for fringe benefits tax time?

    Source:

    It’s time to prepare your practice for fringe benefits tax (FBT) lodgments.

    Request an FBT client list through Practice mail in Online services for agents, to check your clients are listed and who needs to lodge.

    Add new clients to your FBT client list by 21 May 2025 to ensure they are covered by your lodgment program.

    The due date to both lodge and pay is:

    • 25 June 2025 if you lodge their FBT return electronically through the practitioner lodgment service (PLS)
    • 21 May 2025 if you lodge their FBT return by paper.

    If your clients don’t need to lodge an FBT return, notify us by submitting the FBT non-lodgment advice form. We recommend you submit the form as early as possible as processing may take up to 28 days around peak lodgment dates.

    We have a range of information that you can share with your clients to help them understand their obligations and how FBT works.

    MIL OSI News –

  • MIL-OSI Australia: Advice under development – income tax issues

    Source:

    [3957] Taxation privileges and immunities of international organisations and persons connected with them

    Title

    Final Taxation Ruling

    Income tax: income of international organisations and persons connected with them that is exempt from income tax

    Purpose

    The final Ruling will update the ATO view in Taxation Ruling TR 92/14 Income tax: taxation privileges and immunities of prescribed International Organisations and their staff (now withdrawn) following the High Court decisions in Macoun v Commissioner of Taxation [2015] HCA 44 and Commissioner of Taxation v Jayasinghe [2017] HCA 26.

    Expected completion

    To be advised

    Comments

    Draft Taxation Ruling TR 2019/D1 Income tax: income of international organisations and persons connected with them that is exempt from income tax published on 27 March 2019. Comments period closed 28 May 2019.

    Draft Taxation Ruling TR 2024/D2 Income tax: exempt income of international organisations and persons connected with them published on 22 May 2024, replacing TR 2019/D1. Comments period closed 21 June 2024.

    Contact

    Simon Weiss, Office of the Chief Tax Counsel

    Phone: (02) 6216 1943

    Simon.Weiss@ato.gov.au

    [4056] Decline in value of a depreciating asset

    Title

    Decision impact statement on Commissioner of Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2

    Purpose

    The Decision impact statement provides the ATO’s response to the Full Federal Court decision, which concerned whether the amount of the deduction available under section 40-25 of the Income Tax Assessment Act 1997 for the decline in value of a depreciating asset was the cost of that asset by virtue of the operation of section 40-80 of that Act.

    Comments

    The Decision impact statement on Commissioner of Taxation v Shell Energy Holdings Australia Limited [2022] FCAFC 2 published on 31 January 2023. Comments period closed on 3 March 2023.

    Contact

    Nitin Gulati, Office of the Chief Tax Counsel

    Phone: (02) 9285 1661

    Nitin.Gulati@ato.gov.au

    [4115] Personal services business and Part IVA

    Title

    Final Practical Compliance Guideline

    Personal services businesses and Part IVA of the Income Tax Assessment Act 1936

    Purpose

    This Guideline explains when we are more likely to apply resources to consider the potential application of Part IVA of the Income Tax Assessment Act 1936 (the general anti-avoidance provisions of the income tax law) to an alienation arrangement where personal services income of an individual is derived through a personal services entity that is conducting a personal services business.

    Expected completion

    To be advised

    Comments

    Draft Practical Compliance Guideline PCG 2024/D2 Personal services businesses and Part IVA of the Income Tax Assessment Act 1936 published on 28 August 2024. Comments period closed on 11 October 2024.

    Contact

    Sally Cummins, Small Business

    Phone: (07) 3213 3299

    SBPAGConsultation@ato.gov.au

    [4145] Application of section 109U to arrangements involving guarantees

    Title

    Final Taxation Determination

    Income tax: Division 7A – does section 109U of the Income Tax Assessment Act 1936 only apply to arrangements where a private company gives a guarantee to another private company?

    Purpose

    This Determination sets out the ATO view on whether section 109U of the Income Tax Assessment Act 1936 can apply to arrangements in which a private company gives a guarantee to an entity that is not a private company (for example, a public company financial institution).

    The Determination also references the ATO’s compliance approach to the application of section 109U.

    Expected completion

    To be advised

    Comments

    Draft Taxation Determination TR 2024/D3 Income tax: Division 7A – does section 109U of the Income Tax Assessment Act 1936 only apply to arrangements where a private company gives a guarantee to another private company? published on 11 December 2024. Comments period closed 31 January 2025.

    Contact

    Anthony Pulvirenti, Private Wealth

    Phone: (07) 3213 8538

    anthony.pulvirenti@ato.gov.au

    [4165] Disregarding private company loan repayments

    Title

    Final Taxation Determination

    Income tax: disregarding certain payments under section 109R of the Income Tax Assessment Act 1936 in determining how much of a loan has been repaid in situations where notional loans are involved

    Purpose

    This final Determination will set out the ATO’s view about the interaction of sections 109R and 109T of the Income Tax Assessment Act 1936, including whether section 109R of that Act can operate to disregard loan repayments in cases where there is a notional deemed loan because of sections 109T and 109W.

    Expected completion

    To be advised

    Comments

    Draft Taxation Determination TD 2025/D2 Income tax: disregarding certain payments under section 109R of the Income Tax Assessment Act 1936 in determining how much of a loan has been repaid in situations where notional loans are involved published on 5 March 2025. Comments period closes 17 April 2025.

    Contact

    Pri Wijesooriya, Private Wealth

    Phone: (03) 9285 1262

    Priyangi.Wijesooriya@ato.gov.au

    [4169] Part IVA held not to apply to a scheme involving use of intra-group debt to acquire an Australian subsidiary productive of tax benefits in Australia

    Title

    Decision impact statement on Mylan Australia Holding Pty Ltd v Commissioner of Taxation (No 2) [2024] FCA 253

    Purpose

    This Decision impact statement outlines the ATO’s response to this case. The court concluded that the general anti-avoidance provision in Part IVA of the Income Tax Assessment Act 1936 did not apply to a scheme under which the applicant claimed deductions in Australia for interest and carry forward losses incurred from intra-group debt taken on to acquire an Australian subsidiary as part of the acquisition of a pharmaceutical business.

    Comments

    The Decision impact statement on Mylan Australia Holding Pty Ltd v Commissioner of Taxation (No 2) [2024] FCA 253 was published on 28 February 2025. The comments period closed on 28 March 2025.

    Contact

    Simon Weiss, Office of the Chief Tax Counsel

    Phone: (02) 6216 1943

    Simon.Weiss@ato.gov.au

    [4194] Capital raised for the purpose of funding franked distributions

    Title

    Final Practical Compliance Guideline

    Capital raised for the purpose of funding franked distributions – ATO compliance approach

    Purpose

    This Guideline sets out the ATO’s compliance approach to the assessment of the level of risk that a distribution is unfrankable under section 207-159 of the Income Tax Assessment Act 1997.

    Expected completion

    To be advised

    Comments

    Draft Practical Compliance Guideline PCG 2024/D4 Capital raised for the purpose of funding franked distributions – ATO compliance approach published on 4 December 2024. Comments period closed on 31 January 2025.

    Contact

    Virginia Gogan, Public Groups

    Phone: (03) 8632 4643

    Virginia.Gogan@ato.gov.au

    [4201] Early stage innovation company schemes and Part IVA

    Title

    Final Taxation Determination

    Income tax: application of Part IVA of the Income Tax Assessment Act 1936 to certain early stage innovation company investment arrangements

    Purpose

    This final Determination will provide the Commissioner’s view on whether Part IVA of the Income Tax Assessment Act 1936 applies to early stage innovation company (ESIC) schemes as described in Taxpayer Alert TA 2024/1 Early stage investor tax offset claimed using circular financing arrangements.

    Expected completion

    To be advised

    Comments

    The ATO is currently looking at arrangements designed to inappropriately access the ESIC incentives and other tax benefits.

    Draft Taxation Determination TD 2025/D1 Income tax: application of Part IVA of the Income Tax Assessment Act 1936 to certain early stage innovation company investment arrangements published on 28 February 2025. Comments period closed 28 March 2025.

    Contact

    Kevin Hu, Office of the Chief Tax Counsel

    Phone (03) 9247 0703

    Kevin.Hu@ato.gov.au

    MIL OSI News –

  • MIL-OSI Australia: Advice under development – superannuation issues

    Source:

    [4166] Advice fees paid by superannuation funds

    Title

    Final Practical Compliance Guideline

    Fees for personal financial advice paid from member accounts by superannuation funds – apportioning the deduction and pay as you go withholding obligations

    Purpose

    This Guideline sets out a methodology that superannuation funds (other than self-managed superannuation funds (SMSFs)) can use to determine the extent to which payments of financial advice fees satisfy paragraph (d) of table item 5 of subsection 295-490(1) of the Income Tax Assessment Act 1997.

    It also outlines our compliance approach in relation to a superannuation fund’s obligation to withhold from payments for personal financial advice fees in the income years prior to 1 July 2019, including SMSFs.

    Expected completion

    To be advised

    Comments

    Draft Practical Compliance Guideline PCG 2025/D1 Fees for personal financial advice paid from member accounts by superannuation funds – apportioning the deduction and pay as you go withholding obligations published on 15 January 2025. Comments period closed on 14 February 2025.

    Contact

    Jay Gao, Public Groups

    Phone: (02) 9374 5168

    Jay.Gao@ato.gov.au

    For more information, see Consultation matter [202421].

    [4182] Expenditure incurred under a non-arm’s length arrangement and superannuation contributions [updated]

    Title

    Addendum to Law Companion Ruling

    Law Companion Ruling LCR 2021/2 Non-arm’s length income – expenditure incurred under a non-arm’s length arrangement

    Purpose

    LCR 2021/2 is being updated to include the Commissioner’s view as to how the amendments in explanations of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024 apply in respect of the non-arm’s length expenditure and non-arm’s length component provisions.

    Expected completion

    Mid 2025Comments

    Draft update LCR 2021/2DC1 published on 27 November 2024. Comments period closed on 24 January 2025. We are currently reviewing submissions.

    Contact

    Bonita Tsang, SEO

    PAGSPR@ato.gov.au

    Title

    Addendum to Taxation Ruling

    Taxation Ruling TR 2010/1DC Income tax: superannuation contributions

    Purpose

    TR 2010/1DC is being updated to include the Commissioner’s view about the amendments in explanations of the Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024. In addition to updates for the non-arm’s length expenditure amendments, TR 2010/1DC (which was previously issued for consultation on 28 July 2021) will also be updated with regard to issues such as in specie contributions, the maximum earnings test and the deductibility of contributions.

    Expected completion

    Mid 2025Comments

    The draft update to TR 2010/1DC2 published on 27 November 2024. Comments period closed on 24 January 2025.

    TR 2010/1DC was withdrawn on 27 November 2024.

    Contact

    Bonita Tsang, SEO

    PAGSPR@ato.gov.au

    [4200] Administration of penalties that apply where employers or superannuation funds fail to comply with event-based reporting obligations [updated]

    Title

    Draft Law Administration Practice Statement

    Administration of penalties that apply to employers who fail to comply with their Single Touch Payroll (STP) reporting obligations

    Purpose

    Event-based reporting regimes were introduced in 2018 for employers (STP) and for superannuation funds (member account transactions and attributes). The information reported through these reporting regimes has a range of applications across the tax and super systems, and their effectiveness can be reduced as a result of:

    • incorrect and incomplete reporting
    • reporting in an incorrect format (such as reporting in the original STP format rather than the STP Phase 2 format used since 2022)
    • failure to report at all.

    There is a need to provide guidance for ATO staff on the administration of penalties that may apply to employers or superannuation funds that fail to meet their reporting obligations.

    Expected completion

    April 2025

    Contact

    PAGSPR@ato.gov.au

    Title

    Draft Law Administration Practice Statement

    Administration of the false and misleading statement penalties on superannuation funds that do not report superannuation contribution information to the Commissioner accurately

    Purpose

    Event-based reporting regimes were introduced in 2018 for employers (STP) and for superannuation funds (member account transactions and attributes). The information reported through these reporting regimes has a range of applications across the tax and super systems, and their effectiveness can be reduced as a result of:

    • incorrect and incomplete reporting
    • reporting in an incorrect format (such as reporting in the original STP format rather than the STP Phase 2 format used since 2022)
    • failure to report at all.

    There is a need to provide guidance for ATO staff on the administration of penalties that may apply to employers or superannuation funds that fail to meet their reporting obligations.

    Expected completion

    April 2025

    Contact

    PAGSPR@ato.gov.au

    MIL OSI News –