Category: Taxation

MIL-Evening Report: This budget’s tax tinkering isn’t the same as meaningful tax reform. Here’s why

Source: The Conversation (Au and NZ) – By Kristen Sobeck, Research Fellow, Tax and Transfer Policy Institute, Crawford School of Public Policy, Australian National University

Miha Creative/Shutterstock

Labor’s tax changes this week do not tackle tax reform, or why we desperately need it. They only address the amount collected from personal income tax, which is the largest source of tax revenue.

Real tax reform would review taxes such as the GST, taxes on savings (including housing and super), and personal and corporate income tax – and ensure they are sustainable over the long term.

Tax cuts and tax revenue relate to the amount of tax the government collects. Reform needs to tackle both the amount of tax and how we collect it.

It involves redesigning how we collect tax revenue in a way that is efficient, equitable, simple and resilient, to improve the well-being of all Australians.

And the quantum – how much we collect as part of tax reform – depends on the demand for government services, which is growing, with structural budget deficits forecast for the next 10 years.

So how does the income tax system work?

When you earn a salary from your job, every dollar earned above A$18,200 is taxed. Income earned between $18,201 to $45,000 is taxed at 16 cents per dollar. Three higher tax brackets follow, as the table below shows. This is known as a progressive tax system, where the tax rate increases as your income rises.

Mathematically, this means that if a worker named Jane has a $130,000 salary, the first $18,200 of her income is tax free, the next $26,800 of her salary is taxed at 16 cents for each dollar and so on. Her total income tax bill is $29,788.

In the budget, the Labor government announced from July 1 2026, it would cut the 16 cents marginal income tax rate to 15 cents and from July 1 2027 to 14 cents. As the example above shows, the proposed reductions will affect all Australian income taxpayers, not just low income earners.

The legislation passed parliament late on Wednesday night, but the Coalition has said it will repeal the cuts if it wins the election.

What is bracket creep?

Workers generally receive an increase in their wage each financial year. But in recent years, the increase in wages received by some workers hasn’t been enough to keep up with inflation (changes in prices).

This is the case for our imaginary worker, Jane. Where she lives, prices have increased by 10%. Her employer has offered her a wage increase of 5%, so now she earns $136,500. However, everything where Jane lives is now 10% more expensive, so while her salary has increased, the purchasing power of her wage has declined.

Unfortunately for Jane, the income tax system completely disregards her decline in living standards. Since her salary has increased she owes more income tax.

This is what’s referred to as bracket creep. It’s also known as fiscal drag. It arises when our income tax bill goes up, our take-home pay (our disposable income) goes down as a result, and our standard of living declines.

Sometimes inflation can push a person into a higher income tax bracket. This is the case for Jane, who now pays 37 cents per dollar on $555 of her income. However it also applies if a taxpayer remains in the same income tax bracket (since their salary still goes up and they owe more income tax).

Is bracket creep a good or a bad thing?

For workers, bracket creep is bad news because it reduces their after-tax income while their standard of living declines.

However, for governments it can be a useful tool.

First, bracket creep allows governments to collect more revenue than they would in the absence of inflation. Higher inflation means more revenue. This approach enables governments to increase expenditure and/or offer tax cuts to offset bracket creep. The government is doing the latter even in a period of budget deficit.

Second, bracket creep can be useful for governments during periods of high inflation. Governments need to rein in spending to reduce high inflation and bracket creep is one way of achieving this goal.

Given these benefits, Australia is not alone among developed countries that opt to change their income tax thresholds on a discretionary basis. Just over half (55%) of OECD countries took this approach in 2022 for their personal income tax systems.

The remaining OECD countries (45%) applied automatic indexation in 2022. Indexation ensures that taxpayers’ income tax bills only increase (in real terms) when their wages increase by more than inflation.

But ensuring tax brackets keep pace with inflation is only one part of the tax picture. Neither side of politics is addressing the sort of major tax reforms needed to make the tax system more sustainable and match fit for the 21st century. But the Tax and Transfer Policy Institute is prepared with ideas when they are.

Kristen Sobeck 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. This budget’s tax tinkering isn’t the same as meaningful tax reform. Here’s why – https://theconversation.com/this-budgets-tax-tinkering-isnt-the-same-as-meaningful-tax-reform-heres-why-253121

MIL OSI Analysis – EveningReport.nz –

March 27, 2025
MIL-OSI Australia: Taskforce Morpheus – National Day of Action 2025

Source: New South Wales – News

Law enforcement agencies from across Australia and New Zealand have targeted the Hells Angels Outlaw Motorcycle Club (HAOMC) in a coordinated National Day of Action as part of Operation Morpheus.

The focus of the National Day of Action was to cause maximum disruption to the HAOMC through compliance and enforcement activities across Australia and New Zealand.

With a significant legacy of past national coordination and collaboration by law enforcement and partners in Australia and New Zealand, National Taskforce Operation Morpheus is a joint initiative. This includes all Australian state and territory police, New Zealand Police, Australian Federal Police, Australian Border Force, Australian Criminal Intelligence Commission, Australian Defence Force, AUSTRAC, Australian Taxation Office, and Services Australia collaboratively targeting the highest threat outlaw motorcycle gangs (OMCGs) impacting Australia and New Zealand.

The National Day of Action 2025 has resulted in law enforcement agencies around the country conducting compliance checks relating to bail, parole, firearms possession and other legislation. The agencies also seized firearms, weapons, various drugs, illicit cigarettes and tobacco products and in excess of $48,000 in cash resulting in the arrest of 23 people, involving 60 charges.

By proactively targeting OMCG’s throughout Australia and New Zealand in a day of action using a combination of enforcement, compliance and disruption techniques Operation Morpheus generates significant intelligence holdings. Shared intelligence relating gang to membership and associates, locations and gang related premises and criminal activities play a crucial role in national and international law enforcement awareness of links with OMCG’s like HAOMC and organised crime.

Other focuses of law enforcement were HAMC – OMCG members involved in family violence matters and those club members and associates already incarcerated within the prison populations.

The overrepresentation of OMCG members and associates linked with family and domestic violence perpetration is a significant community issue. As is violence and contraband within the prison systems, also well documented and a focus of this operation.

Operation Morpheus sends the message to members of OMCG members, “It doesn’t matter if you are at freedom or in custody you will be targeted for criminal related activity, be that personal or club related business. Put simply it doesn’t pay to be a member of an OMCG or any criminal gang.”

Australian Border Force have also identified HAMC members and associates attempting to enter Australia recently as well as targeting members and associates who may be subject to removal from Australia.

As national organised crime continues to move into the illegal tobacco and vape industry, including OMCG involvement with other crime groups law enforcement and partners are actively focused on this activity, including the extreme violence, firearms, extortion, arson, and money laundering activities.

Leveraging shared capability and technology, National Taskforce Morpheus also targets criminal assets and unexplained wealth of key OMCG members, protects vulnerable people and develops national strategies to deter gang recruitment, reduce membership and target recidivism and enablers to organised crime.

Agency Key Results:

South Australia Police –

Small quantities of illicit substances seized, firearms prohibition order compliance checks completed with in-custody cell searches conducted by Dept Correctional Services. Significant additional contemporary criminal intelligence was gathered relating to HAOMC in SA.

Victoria Police –

9 offenders charged with 8 offences, 1 search warrant executed, small quantities of illegal prescription drugs seized, firearms prohibition order compliance checks revealing quantities of firearm ammunition, $48,000 in cash seized and subject to further investigation. Significant additional contemporary criminal intelligence gathered relating to HAOMC in Victoria.

Western Australia Police –

2 offenders charged with 5 offences, 2 search warrants executed, small quantities of illicit substances seized and contemporary criminal intelligence gathered relating to HAOMC in WA.

New Zealand Police –

3 offenders charged with 4 offences, 3 search warrants executed and 3 vehicles seized. Small quantities of both prescription and illicit substances were seized. Contemporary criminal intelligence was gathered relating to HAOMC in New Zealand.

Australian Border Force –

2 VISA cancellations / refusals at point of entry, a further 3 identified as potential VISA cancellations and a single Unlawful Non-Citizen detained linked with OMCGs in Australia.

New South Wales –

3 offenders facing 12 charges, 2 search warrants executed, small quantities of illicit substances seized, firearms prohibition order compliance checks with an additional 9 ADVO compliance checks also conducted. In-custody cell searches were also activated for OMCG members in NSW prisons.

Queensland –

5 offenders facing 30 charges, 2 firearms seized, 25 bail breaches (non-compliance) discovered with a significant number of traffic breaches identified with both fines and prosecutions commenced for drug and drink driving.

Northern Territory –

Heavy focus on traffic compliance identifying both drink (3) and drug (3) drivers apprehended.

Tasmania –

1 offender charged with an offence with bail and firearms prohibition order compliance checks conducted.

Quotes attributed to: Taskforce Morpheus Chair Detective Superintendent Jason Kelly (VICPOL)

“National Taskforce Morpheus has been an extremely successful national and international operation coordinating multiple operations that have seen Outlaw Motorcycle Gangs (OMCGs) and their members disrupted, arrested, charged and held to account.

“Law enforcement and partner government agencies, through National Taskforce Morpheus, share the use of a variety of capabilities to proactively target OMCGs at a state, territory, national and international level. National Taskforce Morpheus will continue to be relentless in pursuing OMCGs and will not stop disrupting and holding OMCGs to account, no matter where they are located.

“OMCGs are motivated by profit and greed, they infiltrate communities, industry and businesses and have a negative impact on the communities. The social and economic impact of OMCGs in Australia and New Zealand is significant. OMCGs also have a culture of secrecy, that includes intimidation and propensity for extreme violence, often with public displays of violence that impacts the safety of the community. For these reasons Law Enforcement and partner Government agencies will continues to target OMCGs.”

Quotes attributed to: Officer in Charge Serious and Organised Crime Branch (SAPOL) Detective Superintendent Shane Addison

SAPOL recognises the risk and serious harm to the community caused by significant and violent criminal activity undertaken by and associated with Outlaw Motorcycle Gangs (OMCG) in South Australia. SAPOL is committed to reducing this threat to community safety and will relentlessly pursue members and associates of OMCGs who seek to profit from violence and all forms of illicit criminal activities. Today’s National Day of Action activities have focused on disrupting those OMCG members who pose the greatest risk to the community.

“In collaboration with our law enforcement and supporting agency partners, SAPOL will target anyone involved with OMCGs illicit criminal and violent behaviour. This includes targeting the confiscation of their criminal assets. The results from the Operation Morpheus Day of Action in this State reflects this commitment.”

MIL OSI News –

March 27, 2025
MIL-OSI USA: Delegation Hails AIDEA’s Coastal Plain Court Victory

US Senate News:

Source: United States Senator for Alaska Lisa Murkowski
03.26.25
Washington, DC— U.S. Senators Lisa Murkowski and Dan Sullivan and U.S. Representative Nick Begich (all R-Alaska) today issued the following statements after the U.S. District Court for the District of Alaska ruled that the Biden administration illegally canceled seven leases in the non-wilderness Coastal Plain of ANWR in 2023. The leases were bid on, won, and held by the Alaska Industrial Development and Export Authority (AIDEA), which filed the successful court challenge.
“As we wrote the Coastal Plain program in 2017, we adopted a legal framework substantially similar to the one in place for the NPR-A. After the first Trump administration developed a good program and AIDEA secured seven leases, the Biden administration spent four years attempting to turn the program on its head. From their initial pause and then the cancelation of these leases, to the arbitrary closure of 74 percent of the program area and a lease sale that was designed to fail, I can’t think of a single lawful thing the last administration did on the Coastal Plain,” Senator Murkowski said. “While we lost years of development to their willful intransigence, this decision is an important step to getting things back on track. I appreciate Judge Gleason’s clear-eyed reading of the law we wrote and congratulate AIDEA on their victory. I hope their leases are immediately reinstated and thank them for persevering in their effort to help develop our state’s abundant resources for the benefit of all Alaskans.”
“I’ve said for years that not only were President Biden’s 70 executive orders and actions shutting down Alaska harmful to our state and working families, but many of them were also illegal,” said Senator Dan Sullivan. “The District Court ruled yesterday that the administration’s cancellation of ANWR leases was a ‘serious’ error that violated ‘congressionally mandated procedures.’ That is an important rebuke, but I don’t believe that this was an honest mistake. President Biden’s lawyers likely knew this cancellation was illegal, but they did it anyway in order to have a chilling impact on future Coastal Plain lease sales and to kill hundreds, if not thousands of jobs for Alaskans. But it is a new day for our state. We now have an administration that is committed to unleashing our extraordinary resources, growing our economy and creating good-paying jobs for hardworking Alaskans.”
“The Biden Administration’s illegal cancellation of leases in ANWR was a reckless act of overreach that hurt Alaska families and threatened America’s path to energy security,” said Congressman Begich. “The law could not be more clear: the Tax Cuts and Jobs Act, passed by Congress in 2017 and signed into law by President Trump mandates the responsible development of ANWR. This ruling brings us one step closer to restoring the promise of ANWR and putting Alaska back on the map as a cornerstone of America’s energy dominance.”
In September 2023, the Department of the Interior canceled all seven of AIDEA’s leases on the Coastal Plain. AIDEA sued the Department the following month. In her opinion finding for AIDEA, U.S. District Court Judge Sharon Gleason wrote that, “Federal Defendants’ cancellation of AIDEA’s leases was not in accordance with law because it failed to seek a court order…The Court finds that vacatur is appropriate. DOI’s error is serious: DOI cancelled AIDEA’s leases without following the congressionally-mandated procedure for doing so… DOI’s Lease Cancellation Decision of AIDEA’s ANWR leases is VACATED.”
Judge Gleason has sent the matter back to the Department of the Interior for further action.

MIL OSI USA News –

March 27, 2025
MIL-OSI USA: Tillis, Warner Introduce Legislation to Update Performing Artist Tax Deduction

US Senate News:

Source: United States Senator for North Carolina Thom Tillis

WASHINGTON, D.C. – This week, Senators Thom Tillis (R-NC) and Mark Warner (D-VA) introduced the Performing Artist Tax Parity Act, bipartisan legislation that would update the Qualified Performing Artist (QPA) tax deduction, an above-the-line tax deduction which allows certain performing artists to deduct the cost of expenses incurred in the course of their employment.

“The arts play a vital role in North Carolina’s culture and economy, yet many artists struggle with financial burdens that make it difficult to sustain their careers,” said Senator Tillis. “By updating this outdated tax deduction, this commonsense legislation ensures that hardworking artists can deduct necessary expenses, just like other professionals. I’m proud to support this bipartisan effort to provide long-overdue tax relief to the creative community.”

“Middle class and up-and-coming artists have found their home in the Commonwealth making meaningful contributions to our rich culture,” said Senator Warner. “This legislation levels the playing field for more artists by treating them like the small businesspeople they are, enriching our society and spurring our commerce.”

“We commend Senators Warner and Tillis for championing tax fairness for our members and all entertainment professionals. Their bipartisan leadership ensures our members’ voices continue to be heard on this critical issue. It’s time to lower the cost of living for entertainment workers by including PATPA in tax legislation expected later this year, correcting an oversight that has taken money out of the pockets of middle-class IATSE members since 2017,” said Matthew D. Loeb, International President, International Alliance of Theatrical Stage Employees (IATSE).

“With just a few weeks until Tax Day, Senator Tillis and Senator Warner could not have better timed this critically important bipartisan bill that would mean actors, stage managers and other creative professionals won’t have to pay hundreds, and sometimes thousands of dollars more in taxes simply due to common business costs like their agents and managers fees and travel to auditions. I’m grateful for the leadership of Senator Tillis and Senator Warner and look forward to working with them as we fight to make this bill law,” said Brooke Shields, President, Actors’ Equity Association.

“Entertainment is one of the United States’ top industries, and the work of performing artists has made an immeasurable impact on our national identity. It’s time for the tax code to address the skyrocketing business costs of this highly risky profession and allow performers to deduct legitimate expenses such as agent and manager fees. This will enable working-class performers to continue supporting local economies that generate income from performers living and working in their communities. SAG-AFTRA enthusiastically supports the reintroduction of the bipartisan Performing Artist Tax Parity Act in the Senate and applauds Sens. Tillis and Warner for their work in addressing the financial challenges of those who dedicate their lives to human artistry,” said Fran Drescher, President, SAG-AFTRA.

“The Performing Artist Tax Parity Act (PATPA) is a critical step toward restoring financial fairness for performing artists across the country. For too long, we’ve been unfairly burdened by a tax system that fails to recognize the realities of our profession. This legislation paves the way for artists to be treated less like expendable contractors and more like the vital parts of an institution that we are. It’s an important step toward ensuring that performing artists are no longer penalized for the cost of doing our jobs and toward a future where we receive the same workplace protections and benefits as others who work within the companies we sustain,” said Ned Hanlon, President, American Guild of Musical Artists.

“Addressing the unique challenges artists and musicians face under the tax code is imperative to supporting the creative community’s impact on culture and the economy. RIAA appreciates Senators Warner and Tillis’ continued leadership driving the bipartisan, bicameral Performing Artist Tax Parity Act. This bill is designed to balance outdated burdens on performers now and enable the next generation to thrive,” said Mitch Glazier, Chairman and CEO, Recording Industry Association of America (RIAA).

“The Motion Picture Association thanks Sens. Thom Tillis and Mark Warner for re-introducing the Performing Artist Tax Parity Act (PATPA) – an important bipartisan effort to deliver essential economic relief to a creative community that includes more than 2.3 million jobs supported by the film, television, and streaming industry. The MPA is again proud to endorse this legislation and support the American creative economy,” said Charles Rivkin, Chairman and CEO, Motion Picture Association.

“The bipartisan and bicameral Performing Artist Tax Parity Act is commonsense legislation that benefits working musicians.  PATPA makes long overdue updates to restore the intention our tax code. We are grateful to Senators Tillis and Warner for championing fairness for all performing artists and arts workers,” said Tino Gagliardi, President, American Federation of Musicians.

“Supporting working artists through tax relief creates ripple effects that build more vibrant communities across the country. Beyond the arts and culture sector’s $1.1 trillion economic impact, one of the largest public opinion studies ever conducted on the arts in the U.S. found that 86% of Americans believe arts and culture improve their community’s quality of life and livability. By modernizing the tax code nationally, we can support artists and strengthen every community. We applaud Senators Warner and Tillis for introducing the Senate companion to the Performing Arts Tax Parity Act, alongside the House bill championed by Representatives Buchanan and Chu, to modernize an outdated tax code that hasn’t been updated since 1986,” said Erin Harkey, CEO, Americans for the Arts.

“Musicians nationwide are essential contributors to the U.S. workforce and the communities in which they perform,” said Simon Woods, President and CEO, League of American Orchestras. “We are grateful for the leadership of Senators Tillis and Warner in re-introducing this critical legislation to support tax fairness for performing artists.”

“The Performing Artist Tax Parity Act (PATPA) is a lifeline for the artists who bring independent stages to life. The Senate is taking an important step toward building a fairer, more sustainable live ecosystem that benefits independent stages, artists, audiences, and communities alike. We hope that Congress will move quickly to enact PATPA this year,” said Stephen Parker, Executive Director, National Independent Venue Association.

Background:

The Qualified Performing Artist tax deduction has not been updated since its inception in 1986 and is currently only available to those making less than $16,000 a year, meaning that very few artists qualify. This legislation would update and increase the income ceiling to $100,000 for individuals and $200,000 for married joint filers, allowing more lower- and middle-income performing artists to receive tax relief for work-related expenses. This bill also indexes the deduction for inflation so it automatically adjusts for increases in the cost of living in the future.

Companion legislation was introduced in the House of Representatives on January 24, 2025, by Representatives Vern Buchanan (R-FL) and Judy Chu (D-CA).

The Performing Artist Tax Parity Act is endorsed by numerous organizations advocating for the rights of emerging artists, including the Actors’ Equity Association, the International Alliance of Theatrical Stage Employees, and the Recording Academy/GRAMMYs.

Full text of the bill is available HERE.

MIL OSI USA News –

March 27, 2025
MIL-OSI New Zealand: Cuts to consultant, contractor spend exceed target

Source: New Zealand Government

The Government’s move to cut public sector spending on consultants and contractors is on track to save $800 million over two years – double the initial target, Public Service Minister Judith Collins says.

“We set a two-year target to cut $400 million in spending on consultants and contractors across the public sector by 2024/25,” Ms Collins says.

“The latest update anticipates savings will come in at more than $800 million by the end of June.

“That’s $800 million that can be spent on delivering core services to taxpayers, in areas such as healthcare, law enforcement and education.

“Taxpayers expect public servants to spend their money wisely, and I’m very happy to share with them just how much money is on track to be saved as a direct result of the Government’s efforts to rein in excessive spending while ensuring core government services continue to be delivered.”

Public Service Commission data released today shows the size of the core public service workforce decreased 4 percent in the 12 months to December 2024. At the end of December there were 62,968 public servants (FTEs), compared with 65,699 in December 2023.

“This reduction largely impacted back-office roles and has been offset by an increase in the number of frontline staff,” Ms Collins says.

“In the six years from 2017 to 2023, total salary costs for the core public service workforce grew a staggering 72 percent, to about $6.1 billion a year. We simply do not have sufficient taxpayers to support that kind of growth.

“The Government will continue to focus on the delivery of frontline services while keeping contractor and consultant spending and the overall size of the workforce in check.”

Note to editors:

The core Public Service are departments and departmental agencies only. It excludes the wider public sector, such as defence personnel, police, teachers and public healthcare workers

MIL OSI New Zealand News –

March 27, 2025
MIL-OSI Security: Behavioral Healthcare Company Executive Sentenced for Healthcare Fraud

Source: Office of United States Attorneys

BOSTON – The Chief Executive Officer of Dana Group Associates, who is also the former Chief Operating Officer of Prime Behavioral Health, was sentenced today in federal court in Boston for a scheme to defraud health care benefit programs by directing false billing for patient visits.

Miguel Saravia, 42, of Hanson, was sentenced by U.S. District Court Judge Allison D. Burroughs to three and a half months in prison, to be followed by one year of supervised release. Saravia was also ordered to pay $561,141.89 in restitution. In September 2024, Saravia pleaded guilty to six counts of health care fraud.

From approximately 2017 to 2022, Saravia directed a group of individuals with no billing or medical training to enter Current Procedural Terminology codes (CPT) for therapy services that were not provided and to upcode CPT codes used for psychotherapy visits. Saravia submitted, or directed the submission of, false claims for treatment that was not provided or for more complex and expensive treatment than was provided.

United States Attorney Leah B. Foley; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Insurance Fraud Bureau Executive Director Anthony DiPaolo; and Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Kelly B. Lawrence and Mackenzie A. Queenin of the Health Care Fraud Unit and Lindsey Ross and Steven Sharobem of the Affirmative Civil Enforcement Unit prosecuted the case.

MIL Security OSI –

March 27, 2025
MIL-OSI Canada: Saskatchewan Commercial Innovation Incentive Extended to 2027

Source: Government of Canada regional news

Released on March 26, 2025

Incentive Improvements Expand Eligibility Ensuring Saskatchewan Businesses Succeed

Today, the Government of Saskatchewan introduced legislation that will extend the Saskatchewan Commercial Innovation Incentive (SCII).

“By extending the SCII, we are reaffirming Saskatchewan’s commitment to innovation and ensuring our province remains one of the best places in Canada to invest and do business,” Trade and Export Development Minister Warren Kaeding said. “All of this means more opportunities, jobs and services the people of Saskatchewan need and deserve.”

The SCII is a growth-focused tax incentive designed to support businesses commercializing innovation by reducing the provincial Corporate Income Tax (CIT) rate to 6 per cent for a period of 10 consecutive years. Eligible companies can extend the CIT benefit period to 15 years, if 50 per cent or greater of the related research and development has been conducted in Saskatchewan.

Last year, the Government of Saskatchewan began an external review aimed at improving the program’s eligibility requirements and simplifying the application process. Based on this review, the SCII will be eliminating the economic eligibility criteria to further improve eligibility. These improvements will encourage commercialization and innovation in the province.

The new sunset date for SCII is June 30, 2027.

The SCII is also highlighted in Securing the Next Decade of Growth: Saskatchewan’s Investment Attraction Strategy, reinforcing the province’s dedication to fostering a thriving business environment.

Investment in the province continues to rise. Private capital investment in Saskatchewan increased last year by 17.3 per cent to $14.7 billion, ranking first among provinces for growth. Private capital investment is projected to reach $16.2 billion in 2025, an increase of 10.1 per cent over 2024. This is the second highest anticipated percentage increase among the provinces.

For more information on the SCII, please visit: saskatchewan.ca.

-30-

For more information, contact:

MIL OSI Canada News –

March 27, 2025
MIL-OSI USA: Delivering Relief to Middle Class Families
Source: US State of New York

strong>B-ROLL of the Governor during the visit can be found on YouTube here and in TV quality (h.264, mp4) format here.

PHOTOS: The Governor’s Flickr page has photos of the event here.

Earlier today, Governor Kathy Hochul visited a supermarket in Albany County to speak with shoppers about her 2025 State of the State Affordability Agenda.

“The cost of living is too high and my Budget takes meaningful steps to put money back in the pockets of New York families,” Governor Hochul said. “I’m proposing a common-sense agenda that delivers real relief and lifts up middle-class families.”

To make New York more affordable, Governor Hochul’s Executive Budget proposes:
- Nearly $1 billion in tax relief to more than 8.3 million New Yorkers through a middle-class tax cut
- New York’s first-ever Inflation Refund, delivering checks of up to $500 for families
- Increasing the Child Tax Credit to offer up to $1,000 for children ages 0-3 and $500 for children ages 4-16
This year’s proposals build on Governor Hochul’s strong focus on affordability. She worked to raise the minimum wage and index it to inflation, so New Yorkers get a raise when costs go up. The Governor also fought to implement the country’s first-ever statewide paid prenatal leave policy, giving pregnant women the opportunity to access vital medical care, and also banned co-pays for insulin on all State-regulated health care plans.

MIL OSI USA News –
March 27, 2025

MIL-OSI: 3D Systems Reports Fourth Quarter and Full Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

ROCK HILL, S.C., March 26, 2025 (GLOBE NEWSWIRE) — 3D Systems Corporation (NYSE:DDD) announced today its financial results for the fourth quarter and full year ended December 31, 2024.

Full-year 2024 revenue of $440 million, above lower end of guidance range, inclusive of a $9 million revenue reduction in Q4 driven by a change in accounting estimates for Regenerative Medicine program milestone recognition. This change in estimate is related to the now anticipated use of pre-clinical human decedent testing, successfully demonstrated by our partner, United Therapeutics, which led to refinement of the milestone technical criteria.
Continued reduction in operating expenses in Q4 reflecting the company’s focus on cost savings and efficiency improvements.
Announcement of a new cost reduction initiative expected to deliver over $50 million in incremental annualized savings related to actions taken throughout 2025 and the first-half 2026.
All regulatory approvals have been obtained for sale of Geomagic software platform, with a sale price of $123 million and targeted close in early April.
Balance sheet cash and cash equivalents of $171 million as of December 31, 2024. Proceeds from Geomagic sale to further strengthen balance sheet in Q2.
Normalizing for divestiture, 2025 full-year forecast reflects return to flat to modest top line organic growth with progressive cost reductions strengthening EBITDA performance throughout the year. Target is to exit 2025 at positive adjusted-EBITDA levels, with continuing momentum in 2026.

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
(in millions, expect per share data)	(unaudited)			(unaudited)
Revenue	$	111.0		$	114.8		$	440.1		$	488.1
Gross profit	$	34.4		$	44.0		$	164.2		$	196.4
Gross profit margin		31.0	%		38.3	%		37.3	%		40.2	%
Operating expense	$	64.8		$	371.3		$	441.6		$	602.4
Operating loss	$	(30.4	)	$	(327.3	)	$	(277.4	)	$	(406.0	)
Net loss attributable to 3D Systems Corporation	$	(33.7	)	$	(292.7	)	$	(255.6	)	$	(362.7	)
Diluted loss per share	$	(0.25	)	$	(2.25	)	$	(1.94	)	$	(2.79	)

Non-GAAP measures for year-over-year comparisons ⁽¹⁾
Non-GAAP gross profit margin		31.3	%		39.8	%		37.4	%		40.6	%
Non-GAAP operating expense	$	58.4		$	65.4		$	250.3		$	246.0
Adjusted EBITDA	$	(19.1	)	$	(14.0	)	$	(66.4	)	$	(26.3	)
Non-GAAP diluted loss per share	$	(0.19	)	$	(0.13	)	$	(0.62	)	$	(0.28	)

⁽¹⁾ See “Presentation of Information in this Press Release” below for a description, and the Appendix for the reconciliation of non-GAAP measurements to the most closely comparable GAAP measure.

Summary Comments on Results

“While 2024 was a challenging year for sales, reflecting weak customer capex spending on new manufacturing plant capacity through the first three quarters, we were pleased to see a healthy uptick in the sale of new industrial printer systems and global services in the fourth quarter,” said Dr. Jeffrey Graves, president & CEO of 3D Systems. “In addition, with the largest installed base in the additive manufacturing industry, we were pleased to see a return to healthy consumable sales across most markets, reflecting higher utilization rates for existing machines. These positive changes in our core business units were unfortunately masked by the impact of an accounting estimate change in our Regenerative Medicine program related to refinement of technical acceptance criteria associated with a potential change in testing methodology for printed human lungs, which are the focus of this program. This estimate change relates to the incorporation of in vivo human decedent testing protocols, which have recently been successfully demonstrated by our partner, United Therapeutics. While this accounting estimate change was not originally contemplated in our 2024 guidance, I am pleased that our core businesses still delivered within the full-year revenue range communicated in our prior forecast, and that the market showed signs of strengthening in the fourth quarter.”

Dr. Graves continued, “While sales were weak across our industry for the last year, for 3D Systems 2024 will be remembered as a historic year of innovation, one in which dozens of new products were launched in both our Healthcare and Industrial markets. This strength in new products was a direct reflection of the continuity in R&D investment that we maintained over this challenging period. Naming just a few key milestones, early in the year we announced the largest contract in the Company’s history, securing our leadership in the dental market for the straightening of teeth, while simultaneously building critical momentum in the even larger adjacent market for teeth replacement, culminating in the announcement of our jetted denture solution which was granted clearance by the FDA in September. In our Industrial business, our collaboration with Daimler Truck demonstrated the exceptional savings potential for integrating digital rights management with on-demand localized print capabilities using Oqton work-flow management for critical spare parts, a market that is expected to reach $8 billion for trucks by 2027. With the broadest range of metal and polymer additive manufacturing technology in the entire industry, and our application-first mindset, we believe our organic growth prospects will be a key differentiator in the path ahead.”

Dr. Graves concluded, “With our new products now gaining traction in the market, our focus is increasingly centered on driving gross margin expansion and operating expense improvements in the face of continuing uncertainty in the global markets. Given this potential demand profile, we believe it is prudent to undertake further significant actions to reduce costs and improve operating efficiencies to support our long-term mission of delivering growth with sustainable profitability. Our latest cost initiative, which began in Q1 of 2025, is targeted at delivering over $50 million of incremental annualized savings based on actions taken over the next six quarters. Importantly, while these efforts will not be fully completed until the middle of 2026, we anticipate significant improvements associated with them, in conjunction with those taken previously, leading us to expect break-even-or-better adjusted-EBITDA performance by the fourth quarter of 2025, despite essentially flat-to-modest revenue growth. From a balance sheet perspective, having previously retired over 50% of our Convertible Notes due November 2026, the remainder of which reaches maturity in Q4 of 2026, our cash balance at 2024 year-end of $171 million, supplemented by proceeds from the sale of our Geomagic software platform for $123 million in the coming weeks, positions us well to continue reducing our leverage while supporting the investments needed to deliver long-term growth and profitability.”

Summary of Fourth Quarter Results

Revenue for the fourth quarter of 2024 decreased 3% to $111.0 million compared to the same period last year and includes an $8.7 million reduction due to a change in accounting estimate related to refinement of milestone recognition criteria within our Regenerative Medicine program.

Healthcare Solutions revenue, which includes revenues from our Regenerative Medicine program, decreased 21% to $40.4 million compared to the prior year period.

Industrial Solutions revenue increased 11% to $70.7 million compared to the prior year period.

Gross profit margin for the fourth quarter of 2024 was 31.0% compared to 38.3% in the same period last year. Non-GAAP gross profit margin was 31.3% compared to 39.8% in the same period last year and decreased primarily due to the accounting estimate changes previously described for our Regenerative Medicine program. Excluding the impact of these accounting estimate changes, non-GAAP gross profit margins were 36.3% for Q4 and 38.7% for the full year 2024, offering a perspective on our core Healthcare and Industrial business performance.

Net loss attributable to 3D Systems Corporation improved by $259.0 million to a loss of $33.7 million in the fourth quarter of 2024 compared to the same period in the prior year. The improvement in net loss primarily reflects the year-over-year change in impairment of goodwill and other intangible assets taken during the prior year period.

Adjusted EBITDA decreased by $5.1 million to a loss of $19.1 million in the fourth quarter of 2024 compared to the same period last year primarily driven by lower revenue and margin due to a change in accounting estimate related to refinement of milestone recognition criteria in our Regenerative Medicine program.

Summary of Full-Year 2024 Results

Revenue for 2024 of $440.1 million decreased 10% compared to the prior year. The decline in revenue primarily reflects lower hardware systems sales due to macroeconomic factors that are negatively impacting demand.

Healthcare Solutions revenue decreased 11% to $189.7 million compared to the prior year.

Industrial Solutions revenue decreased 9% to $250.4 million compared to the prior year.

Gross profit margin for the full year 2024 was 37.3% compared to 40.2% in the prior year. Non-GAAP gross profit margin was 37.4% for the full year 2024 compared to 40.6% in the prior year. Gross profit margin decreased primarily due to the change in accounting estimate related to refinement of milestone recognition criteria within our Regenerative Medicine program and unfavorable manufacturing variances.

Net loss for the full year 2024 improved by $107.1 million to a loss of $255.6 million compared to the prior year. The improvement in net loss primarily reflects the year-over-year change in impairment of goodwill and other intangible assets taken during 2023.

Adjusted EBITDA decreased by $40.1 million to a loss of $66.4 million in 2024 compared to prior year primarily driven by lower revenues and increases in consulting and outside services expenses.

2025 Outlook

Assuming no material change in current macroeconomic conditions and the expected divestiture of the Geomagic business in early Q2 of 2025, the Company is providing the following for its full year 2025 outlook:

Revenue within the range of $420 million to $435 million, representing essentially flat to modest growth when excluding Geomagic revenue for the same periods in FY’24
Non-GAAP Gross Profit Margin within the range of 37% to 39%
Non-GAAP Operating Expense within the range of $200 million to $220 million
Adjusted EBITDA to be break even or better in Q4 2025

Financial Liquidity

At December 31, 2024, cash and cash equivalents totaled $171.3 million and decreased $160.2 million since December 31, 2023. This decrease resulted primarily from the repurchase of our Convertible Notes due November 2026 of $87.2 million, cash used in operations of $44.9 million, and capital expenditures of $16.1 million. At December 31, 2024, the company had total debt, net of deferred financing costs of $212.0 million.

Q4 and FY 2024 Conference Call and Webcast

The Company will host a conference call and simultaneous webcast to discuss these results on March 27 2025, which may be accessed as follows:

Date: Thursday, March 27, 2025
Time: 8:30 a.m. Eastern Time
Listen via webcast: www.3dsystems.com/investor
Participate via telephone: 201-689-8345

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

Forward-Looking Statements

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

Presentation of Information in this Press Release

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

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

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

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

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

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

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

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

About 3D Systems

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

Investor Contact:	investor.relations@3dsystems.com
Media Contact:	press@3dsystems.com

Tables Follow


3D Systems Corporation Consolidated Balance Sheets (in thousands, except par value)

	December 31, 2024			December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	171,324		$	331,525
Accounts receivable, net of reserves — $2,433 and $3,389		101,471			101,497
Inventories		118,530			152,188
Prepaid expenses and other current assets		34,329			42,612
Assets held for sale		3,176			—
Total current assets		428,830			627,822
Property and equipment, net		51,044			64,461
Intangible assets, net		18,020			62,724
Goodwill		14,879			116,082
Operating lease right-of-use assets		50,715			58,406
Finance lease right-of-use assets		8,726			12,174
Long-term deferred income tax assets		2,063			4,230
Other assets		34,569			44,761
Total assets	$	608,846		$	990,660
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY
Current liabilities:
Current operating lease liabilities	$	9,514		$	9,924
Accounts payable		41,833			49,757
Accrued and other liabilities		45,488			49,460
Customer deposits		4,712			7,599
Deferred revenue		27,298			30,448
Liabilities held for sale		10,251			—
Total current liabilities		139,096			147,188
Long-term debt, net of deferred financing costs		211,995			319,356
Long-term operating lease liabilities		52,527			56,795
Long-term deferred income tax liabilities		2,076			5,162
Other liabilities		25,001			33,400
Total liabilities		430,695			561,901
Commitments and contingencies
Redeemable non-controlling interest		1,958			2,006
Stockholders’ equity:
Common stock, $0.001 par value, authorized 220,000 shares; shares issued 135,510 and 133,619 as of December 31, 2024 and 2023, respectively		136			134
Additional paid-in capital		1,593,366			1,577,519
Accumulated deficit		(1,362,243	)		(1,106,650	)
Accumulated other comprehensive loss		(55,066	)		(44,250	)
Total stockholders’ equity		176,193			426,753
Total liabilities, redeemable non-controlling interest and stockholders’ equity	$	608,846		$	990,660


3D Systems Corporation Consolidated Statements of Operations (in thousands, except per share amounts)

	Three Months Ended						Year Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Revenue:	(unaudited)			(unaudited)
Products	$	70,426		$	74,763		$	279,178		$	328,731
Services		40,598			40,085			160,943			159,338
Total revenue		111,024			114,848			440,121			488,069
Cost of sales:
Products		46,288			49,816			175,859			203,258
Services		30,291			21,075			100,084			88,390
Total cost of sales		76,579			70,891			275,943			291,648
Gross profit		34,445			43,957			164,178			196,421
Operating expenses:
Selling, general and administrative		43,360			59,549			210,132			210,172
Research and development		20,219			22,513			86,479			89,466
Asset impairment charges		1,234			289,190			144,967			302,787
Total operating expenses		64,813			371,252			441,578			602,425
Loss from operations		(30,368	)		(327,295	)		(277,400	)		(406,004	)
Non-operating income (loss):
Foreign exchange gain (loss), net		3,226			(978	)		2,452			(4,825	)
Interest income		1,502			3,781			7,302			19,511
Interest expense		(620	)		(689	)		(2,564	)		(3,301	)
Other income (loss), net		(1,505	)		31,887			20,214			32,307
Total non-operating income (loss)		2,603			34,001			27,404			43,692
Loss before income taxes		(27,765	)		(293,294	)		(249,996	)		(362,312	)
(Provision) benefit for income taxes		(4,689	)		1,045			(2,193	)		641
Loss on equity method investment, net of income taxes		(1,001	)		(535	)		(3,404	)		(1,282	)
Net loss before redeemable non-controlling interest		(33,455	)		(292,784	)		(255,593	)		(362,953	)
Less: net loss attributable to redeemable non-controlling interest		252			(116	)		—			(265	)
Net loss attributable to 3D Systems Corporation	$	(33,707	)	$	(292,668	)	$	(255,593	)	$	(362,688	)

Net loss per common share:
Basic	$	(0.25	)	$	(2.25	)	$	(1.94	)	$	(2.79	)
Diluted	$	(0.25	)	$	(2.25	)	$	(1.94	)	$	(2.79	)

Weighted average shares outstanding:
Basic		132,576			130,431			131,861			129,944
Diluted		132,576			130,431			131,861			129,944


3D Systems Corporation Consolidated Statements of Cash Flows (in thousands)

	Year Ended December 31,
		2024			2023
Cash flows from operating activities:
Net loss before redeemable non-controlling interest	$	(255,593	)	$	(362,953	)
Adjustments to reconcile loss income to net cash used in operating activities:
Depreciation and amortization		33,310			33,413
Accretion of debt discount		1,378			2,640
Stock-based compensation		18,457			23,504
Loss on short-term investments		—			6
Non-cash operating lease expense		9,871			9,267
Provision for inventory obsolescence and revaluation		12,360			6,350
Provision for bad debts		506			595
Loss on the disposition of businesses, property, equipment and other assets		2,795			6
Gain on debt extinguishment		(21,518	)		(32,181	)
Benefit for deferred income taxes and reserve adjustments		(952	)		(2,412	)
Loss on equity method investment		3,404			1,282
Impairments of assets		144,967			304,698
Changes in operating accounts:
Accounts receivable		(6,376	)		(6,186	)
Inventories		15,766			(20,555	)
Prepaid expenses and other current assets		7,049			(7,961	)
Accounts payable		(5,812	)		(5,526	)
Deferred revenue and customer deposits		3,602			1,245
Accrued and other liabilities		(6,187	)		(12,933	)
All other operating activities		(1,914	)		(12,994	)
Net cash used in operating activities		(44,887	)		(80,695	)
Cash flows from investing activities:
Purchases of property and equipment		(16,121	)		(27,183	)
Purchases of short-term investments		—			—
Sales and maturities of short-term investments		—			180,925
Proceeds from sale of assets and businesses, net of cash sold		96			194
Acquisitions and other investments, net of cash acquired		(3,000	)		(29,152	)
Net cash (used in) provided by investing activities		(19,025	)		124,784
Cash flows from financing activities:
Repayment of borrowings/long-term debt		(87,218	)		(100,614	)
Purchase of non-controlling interests		—			—
Taxes paid related to net-share settlement of equity awards		(2,662	)		(5,211	)
Other financing activities		(1,385	)		(644	)
Net cash used in financing activities		(91,265	)		(106,469	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(5,053	)		3,516
Net decrease in cash, cash equivalents and restricted cash		(160,230	)		(58,864	)
Cash, cash equivalents and restricted cash at the beginning of the year ^a		333,111			391,975
Cash, cash equivalents and restricted cash at the end of the year ^a	$	172,881		$	333,111

(a) The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the total of such amounts reported in the condensed consolidated statements of cash flows.

	December 31, 2024		December 31, 2023		December 31, 2022
Cash and cash equivalents	$	171,324	$	331,525	$	388,134
Restricted cash included in prepaid expenses and other current assets		123		119		114
Restricted cash included in other assets		1,434		1,467		3,727
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$	172,881	$	333,111	$	391,975

Amounts included in restricted cash as of December 31, 2024 and December 31, 2023 primarily relate to guarantees in the form of a standby letter of credit as security for a long-term real estate lease. Amounts included in restricted cash as of December 31, 2022 primarily relate to $3,435 deposited into and held in an escrow account prior to its use as part of our initial investment in the National Additive Manufacturing Innovation (“NAMI”) joint venture. The remaining amounts in restricted cash in all periods presented relate to collateral for letters of credit and bank guarantees.


Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures

Segment Revenue ⁽¹⁾

	Three Months Ended December 31,
*(in millions)*		2024		2023	$ Change			% Change
Healthcare Solutions	$	40.4	$	51.2	$	(10.8	)		(21.1)	%
Industrial Solutions		70.7		63.7		7.0			11.0	%
Total revenue	$	111.0	$	114.8	$	(3.8	)		(3.3)	%

⁽¹⁾Amounts in table may not foot due to rounding

	Year Ended December 31,
*(in millions)*		2024		2023	$ Change			% Change
Healthcare Solutions	$	189.7	$	213.2	$	(23.5	)	(11.0)	%
Industrial Solutions		250.4		274.9		(24.5	)	(8.9)	%
Total revenue	$	440.1	$	488.1	$	(47.9	)	(9.8)	%

⁽¹⁾Amounts in table may not foot due to rounding

Gross Profit and Gross Profit Margin ⁽¹⁾

	Three Months Ended December 31,
*(in millions)*		2024					2023
	Gross Profit		Gross Profit Margin			Gross Profit		Gross Profit Margin
GAAP	$	34.4		31.0	%	$	44.0		38.3	%
Amortization expense included in Cost of sales		0.2					0.4
Severance accrual adjustment		0.1					1.4
Non-GAAP ⁽²⁾	$	34.7		31.3	%	$	45.8		39.8	%

⁽¹⁾Amounts in table may not foot due to rounding ⁽²⁾ Calculated as non-GAAP gross profit as a percentage of total revenue.


	Year Ended December 31,
*(in millions)*		2024						2023
	Gross Profit			Gross Profit Margin			Gross Profit		Gross Profit Margin
GAAP	$	164.2			37.3	%	$	196.4		40.2	%
Amortization expense included in Cost of sales		1.0						0.5
Severance accrual adjustment		(0.4	)					1.4
Non-GAAP ⁽²⁾	$	164.8			37.4	%	$	198.4		40.6	%

⁽¹⁾Amounts in table may not foot due to rounding ⁽²⁾ Calculated as non-GAAP gross profit as a percentage of total revenue.

Non-GAAP Operating Expense⁽¹⁾

	Three Months Ended December 31,						Year Ended December 31,
*(in millions)*		2024			2023			2024			2023
Operating expense	$	64.8		$	371.3		$	441.6		$	602.4
Amortization expense		(0.8	)		(2.0	)		(13.3	)		(11.6	)
Stock-based compensation expense		(1.1	)		(8.4	)		(18.4	)		(23.5	)
Acquisition and divestiture-related expense		(1.4	)		1.2			(2.2	)		1.1
Legal and other expense		(1.8	)		(3.2	)		(11.0	)		(8.1	)
Restructuring expense		(0.1	)		(3.3	)		(1.4	)		(10.1	)
Asset impairment charges		(1.2	)		(290.1	)		(145.0	)		(304.4	)
Non-GAAP operating expense	$	58.4		$	65.4		$	250.3		$	246.0

⁽¹⁾Amounts in table may not foot due to rounding


Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures

Net Loss to Adjusted EBITDA ⁽¹⁾

	Three Months Ended December 31,						Year Ended December 31,
*(in millions)*		2024			2023			2024			2023
Net loss attributable to 3D Systems Corporation	$	(33.7	)	$	(292.7	)	$	(255.6	)	$	(362.7	)
Interest (income) expense, net		(0.9	)		(3.1	)		(4.7	)		(16.2	)
Provision (benefit) for income taxes		4.7			(1.0	)		2.2			(0.6	)
Depreciation expense		4.5			5.7			19.0			21.3
Amortization expense		1.0			2.4			14.3			12.1
EBITDA		(24.4	)		(288.8	)		(224.8	)		(346.1	)
Stock-based compensation expense		1.1			8.4			18.4			23.5
Acquisition and divestiture-related expense		1.4			(1.2	)		2.2			(1.1	)
Legal and other related costs		2.2			3.2			11.4			8.1
Restructuring expense		(0.2	)		4.8			0.7			11.5
Net loss attributable to redeemable non-controlling interest		0.3			(0.1	)		0.1			(0.3	)
Loss on equity method investment, net of tax		1.0			0.5			3.4			1.3
Asset impairment charges		1.2			290.1			145.0			304.4
Gain on repurchase of debt		—			(32.2	)		(21.5	)		(32.2	)
Other non-operating (income) expense		(1.7	)		1.3			(1.2	)		4.7
Adjusted EBITDA	$	(19.1	)	$	(14.0	)	$	(66.4	)	$	(26.3	)

⁽¹⁾ Amounts in table may not foot due to rounding


Appendix 3D Systems Corporation Unaudited Reconciliations of GAAP to Non-GAAP Measures

Diluted Loss per Share ⁽¹⁾

	Three Months Ended December 31,						Year Ended December 31,
*(in dollars)*		2024			2023			2024			2023
Diluted loss per share	$	(0.25	)	$	(2.25	)	$	(1.94	)	$	(2.79	)
Amortization expense		0.01			0.02			0.11			0.09
Stock-based compensation expense		0.01			0.06			0.14			0.18
Acquisition and divestiture-related expense		0.01			(0.01	)		0.02			(0.01	)
Legal expense		0.02			0.03			0.09			0.06
Restructuring expense		—			0.04			0.01			0.09
Asset impairment charges		0.01			2.23			1.10			2.35
Gain on repurchase of debt		—			(0.25	)		(0.16	)		(0.25	)
Loss on equity method investment and other		0.01			—			0.03			—
Non-GAAP diluted loss per share	$	(0.19	)	$	(0.13	)	$	(0.62	)	$	(0.28	)

⁽¹⁾Amounts in table may not foot due to rounding

The MIL Network –

March 27, 2025

MIL-OSI: Snail, Inc. Reports Fourth Quarter & Full Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

CULVER CITY, Calif., March 26, 2025 (GLOBE NEWSWIRE) — Snail, Inc. (NASDAQ: SNAL) (“Snail” or “the Company”), a leading, global independent developer and publisher of interactive digital entertainment, today announced financial results for its fourth quarter and full year ended December 31, 2024.

Fourth Quarter & Full Year 2024 Highlights

ARK: Survival Ascended. On October 25, 2023, the Company launched its flagship remake of the ARK franchise leveraging Unreal Engine 5’s stunning graphics and introduced a game-altering cross-platform modding system, ushering in a new era of creativity.
- ARK: Survival Ascended was ranked the top #1 selling game on Steam on launch day.
- Since its launch, ARK: Survival Ascended sold 3.4 million units and has an average of 94,000 daily active users (“DAUs”) with a peak of 308,000 DAUs.
ARK: Survival Evolved. In the three months and year ended December 31, 2024, ARK: Survival Evolved averaged a total of 136,000 DAUs and 135,000 DAUs, respectively.
- ARK: Survival Evolved units sold were approximately 621,000 for the fourth quarter 2024 as compared to 745,000 units during the same period in 2023.
- Units sold for the year ended December 31, 2024 were approximately 2.3 million, as compared to 4.4 million units during the year ended December 31, 2023.
Product and Business Updates:
- Game portfolio expansion: In December 2024, we released the highly anticipated next-gen ARK mobile game, ARK Ultimate Mobile Edition on iOS and Android platforms. In the launch month, over 2 million users downloaded the mobile game across the two mobile platforms. In an effort to further broaden our game portfolio, we acquired eleven games through our gaming network and partners in 2024. We expect to release nine acquired games in 2025. A few notable titles include Honeycomb: The World Beyond – A sci-fi survival adventure where players assume the role of a bioengineer navigating the mysterious planet Sota7, Echoes of Elysium – an airship survival RPG set in a breathtaking procedural world of mystery and discovery, and Robots at Midnight – a retro-futuristic action-RPG aiming to captivate players with its dynamic gameplay and immersive storytelling.
- New Product Segment: To bring more entertainment to our users, we have soft launched a short film mobile application on iOS and Android platforms. The short film mobile application, SaltyTV, brings exclusive, original stories from heart-racing thrillers to jaw-dropping romances to our viewers. We have released thirty-one short film dramas to date and expect a consistent roll out of new short film dramas throughout 2025 and beyond.
- Growing Indie Portfolio: Snail Games showcased its expanding indie catalog at Steam Scream Fest, featuring a variety of immersive and genre-diverse titles that enhance player engagement and reinforce the company’s presence in the indie gaming space.

Net revenues for the three months ended December 31, 2024 was $26.2 million as compared to $28.6 million in the three months ended December 31, 2023. The decrease in revenues during the three months ended December 31, 2024 was due to a reduction in sales of ARK that was partially offset by the recognition of deferred revenues upon the release of ARK: Survival Ascended DLC’s.

Net revenues for the year ended December 31, 2024 was $84.5 million, an increase of $23.6 million, or 38.7%, compared to $60.9 million for the year ended December 31, 2023. The increase in net revenues was due to an increase in recognition of deferred revenues of $32.2 million related to the ARK franchise, an increase in Bellwright sales of $5.9 million, partially offset by a decrease in total ARK sales of $13.0 million, a decrease in ARK Mobile sales of $1.0 million and a decrease in the Company’s other titles of $0.7 million.

Net income for the three months ended December 31, 2024 was $1.1 million compared to a net income of $2.4 million for the three months ended December 31, 2023. The decrease in net income is a result of increased research and development costs of $3.0 million to support our future game releases partially offset by an increase in gross profit of $1.4 million, a decrease in advertising and marketing expenses of $0.9 million and an increase in expenses related to the revaluation of outstanding and exercised warrants of $1.5 million.

Net income was $1.8 million for the year ended December 31, 2024 as compared to a net loss of $9.1 million for the year ended December 31, 2023, representing an increase of $10.9 million. The increase was primarily due to an increase in net revenue of $23.6 million, decreased general and administrative expenses of $2.9 million, partially offset by increased research and development costs of $6.5 million, increased costs of revenues of $5.9 million, a decrease in income tax benefit of $3.0 million and an increase in expenses related to the revaluation of outstanding and exercised warrants of $1.2 million..

Bookings for the three months ended December 31, 2024 was $17.0 million as compared to $52.6 million for the three months ended December 31, 2023. The decrease was due to the strong release of ARK: Survival Ascended on the Steam, PlayStation and Xbox platforms in 2023.

Bookings for the year ended December 31, 2024 was $75.7 million as compared to $85.7 million in the year ended December 31, 2023. The decrease was due to increased sales at a higher average selling price (“ASP”) driven by the release of ARK: Survival Ascended in the fourth quarter of 2023. The releases of Bobs Tall Tales and Bellwright along with the ARK: Survival Ascended DLCs, Scorched Earth in April 2024, Aberration in September 2024 and Extinction in December 2024 partially offset the decrease in unit sales in 2024 but each product release was at a lower ASP than the initial release of ARK: Survival Ascended.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the three months ended December 31, 2024 decreased by $2.0 million, or 55.6%, as compared to the three months ended December 31, 2023. The decrease was primarily the result of a decrease in net income of $1.3 million, a decrease in interest expense and interest expense – related parties of $0.4 million, and a decrease in provision for income taxes of $0.3 million.

EBITDA for the year ended December 31, 2024 was $3.2 million as compared to a loss of $9.7 million in the prior year period. EBITDA increased by $12.9 million, or 133.4%, compared to the year ended December 31, 2023, primarily because of an increase in net income of $10.9 million and a decrease in the benefit from income taxes of $3.0 million, partially offset by a decrease in interest expense and interest expense – related parties of $0.8 million.

As of December 31, 2024, unrestricted cash was $7.3 million versus $15.2 million as of December 31, 2023.

Use of Non-GAAP Financial Measures

In addition to the financial results determined in accordance with U.S. generally accepted accounting principles, or GAAP, Snail believes Bookings and EBITDA, as non-GAAP measures, are useful in evaluating its operating performance. Bookings and EBITDA are non-GAAP financial measures that are presented as supplemental disclosures and should not be construed as alternatives to net income (loss) or revenue as indicators of operating performance, nor as alternatives to cash flow provided by operating activities as measures of liquidity, both as determined in accordance with GAAP. Snail supplementally presents Bookings and EBITDA because they are key operating measures used by management to assess financial performance. Bookings adjusts for the impact of deferrals and, Snail believes, provides a useful indicator of sales in a given period. EBITDA adjusts for items that Snail believes do not reflect the ongoing operating performance of its business, such as certain non-cash items, unusual or infrequent items or items that change from period to period without any material relevance to its operating performance. Management believes Bookings and EBITDA are useful to investors and analysts in highlighting trends in Snail’s operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which Snail operates and capital investments.

Bookings is defined as the net amount of products and services sold digitally or physically in the period. Bookings is equal to revenues, excluding the impact from deferrals. Below is a reconciliation of total net revenue to Bookings, the closest GAAP financial measure.

	Three Months Ended December 31,					Fiscal Year Ended December 31,
	2024			2023		2024			2023
	(in millions)
Total net revenue	$	26.2		$	28.6	$	84.5		$	60.9
Change in deferred net revenue		(9.2	)		24.0		(8.8	)		24.8
Bookings	$	17.0		$	52.6	$	75.7		$	85.7

We define EBITDA as net income (loss) before (i) interest expense, (ii) interest income, (iii) income tax provision (benefit from) and (iv) depreciation expense. The following table provides a reconciliation from net income (loss) to EBITDA:

	Three Months Ended December 31,					Fiscal Year Ended December 31,
	2024			2023		2024			2023
	(in millions)
Net income (loss)	$	1.1		$	2.4	$	1.8		$	(9.1	)
Interest income and interest income – related parties		(0.1	)		–		(0.3	)		(0.1	)
Interest expense and interest expense – related parties		0.1			0.5		0.7			1.5
Provision for (benefit from) income taxes		0.3			0.6		0.6			(2.4	)
Depreciation expense		0.2			0.1		0.4			0.4
EBITDA	$	1.6		$	3.6	$	3.2		$	(9.7	)

Webcast Details

The Company will host a webcast at 4:30 PM ET today to discuss the fourth quarter and full year 2024 financial results. Participants may access the live webcast and replay on the Company’s investor relations website at https://investor.snail.com/.

Forward-Looking Statements

This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “may,” “predict,” “continue,” “estimate” and “potential,” or the negative of these terms or other similar expressions. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding Snail’s intent, belief or current expectations. These forward-looking statements include information about possible or assumed future results of Snail’s business, financial condition, results of operations, liquidity, plans and objectives. The statements Snail makes regarding the following matters are forward-looking by their nature: growth prospects and strategies; launching new games and additional functionality to games that are commercially successful; expectations regarding significant drivers of future growth; its ability to retain and increase its player base and develop new video games and enhance existing games; competition from companies in a number of industries, including other casual game developers and publishers and both large and small, public and private Internet companies; its ability to attract and retain a qualified management team and other team members while controlling its labor costs; its relationships with third-party platforms such as Xbox Live and Game Pass, PlayStation Network, Steam, Epic Games Store, My Nintendo Store, the Apple App Store, the Google Play Store and the Amazon Appstore; the size of addressable markets, market share and market trends; its ability to successfully enter new markets and manage international expansion; protecting and developing its brand and intellectual property portfolio; costs associated with defending intellectual property infringement and other claims; future business development, results of operations and financial condition; the ongoing conflicts involving Russia and Ukraine, and Israel and Hamas, on its business and the global economy generally; rulings by courts or other governmental authorities; the Company’s current program to repurchase shares of its Class A common stock, including expectations regarding the timing and manner of repurchases made under this share repurchase program; its plans to pursue and successfully integrate strategic acquisitions; and assumptions underlying any of the foregoing.

Further information on risks, uncertainties and other factors that could affect Snail’s financial results are included in its filings with the Securities and Exchange Commission (the “SEC”) from time to time, including its annual reports on Form 10-K and quarterly reports on Form 10-Q filed, or to be filed, with the SEC. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those expressed or implied in the forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on management’s beliefs and assumptions and on information currently available to Snail, and Snail does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

About Snail, Inc.

Snail is a leading, global independent developer and publisher of interactive digital entertainment for consumers around the world, with a premier portfolio of premium games designed for use on a variety of platforms, including consoles, PCs and mobile devices.

For additional information, please contact: investors@snail.com


Snail, Inc. and Subsidiaries Consolidated Balance Sheets
	*December 31, 2024*			*December 31, 2023*

ASSETS

Current Assets:
Cash and cash equivalents	$	7,303,944		$	15,198,123
Accounts receivable, net of allowances for credit losses of $523,500 as of December 31, 2024 and 2023		9,814,822			25,134,808
Accounts receivable – related party		2,336,274			–
Loan and interest receivable – related party		105,759			103,753
Prepaid expenses – related party		2,521,291			6,044,404
Prepaid expenses and other current assets		1,846,024			639,693
Prepaid taxes		7,318,424			9,529,755
Total current assets		31,246,538			56,650,536

Restricted cash and cash equivalents		935,000			1,116,196
Accounts receivable – related party, net of current portion		1,500,592			7,500,592
Prepaid expenses – related party		9,378,594			7,784,062
Property, plant and equipment, net		4,378,352			4,682,066
Intangible assets, net		973,914			271,717
Deferred income taxes		10,817,112			10,247,500
Other noncurrent assets		1,683,932			164,170
Operating lease right-of-use assets, net		1,279,330			2,440,690
Total assets	$	62,193,364		$	90,857,529

LIABILITIES, NONCONTROLLING INTERESTS AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable	$	4,656,367		$	12,102,929
Accounts payable – related parties		15,383,171			23,094,436
Accrued expenses and other liabilities		4,499,280			2,887,193
Interest payable – related parties		527,770			527,770
Revolving loan		3,000,000			6,000,000
Notes payable		–			2,333,333
Convertible notes, net of discount		–			797,361
Current portion of long-term promissory note		2,722,548			2,811,923
Current portion of deferred revenue		3,947,559			19,252,628
Current portion of operating lease liabilities		1,444,385			1,505,034
Total current liabilities		36,181,080			71,312,607

Accrued expenses		265,251			254,731
Deferred revenue, net of current portion		21,519,888			15,064,078
Operating lease liabilities, net of current portion		57,983			1,425,494
Total liabilities		58,024,202			88,056,910

Commitments and contingencies

Stockholders’ Equity:
Class A common stock, $0.0001 par value, 500,000,000 shares authorized; 9,626,070 shares issued and 8,275,795 shares outstanding as of December 31, 2024, and 9,275,420 shares issued and 7,925,145 shares outstanding as of December 31, 2023		962			927
Class B common stock, $0.0001 par value, 100,000,000 shares authorized; 28,748,580 shares issued and outstanding as of December 31, 2024 and December 31, 2023.		2,875			2,875
Additional paid-in capital		25,738,082			26,171,575
Accumulated other comprehensive loss		(279,457	)		(254,383	)
Accumulated deficit		(12,117,385	)		(13,949,325	)
Treasury stock at cost (1,350,275 as of December 31, 2024 and 2023)		(3,671,806	)		(3,671,806	)
Total Snail, Inc. equity		9,673,271			8,299,863
Noncontrolling interests		(5,504,109	)		(5,499,244	)
Total stockholders’ equity		4,169,162			2,800,619
Total liabilities, noncontrolling interests and stockholders’ equity	$	62,193,364		$	90,857,529


Snail, Inc. and Subsidiaries Consolidated Statements of Operations and Comprehensive Income (Loss)

	Three months ended December 31,						Years Ended December 31,
	*2024*			*2023*			*2024*			*2023*

Revenues, net	$	26,214,296		$	28,570,222		$	84,467,047		$	60,902,098
Cost of revenues		14,866,526			18,646,615			54,236,342			48,306,403

Gross profit		11,347,770			9,923,607			30,230,705			12,595,695

Operating expenses:
General and administrative		3,943,985			3,900,961			12,867,210			15,816,088
Research and development		4,123,964			1,165,382			11,647,293			5,057,421
Advertising and marketing		192,235			1,094,146			1,523,398			1,582,464
Depreciation		68,420			86,222			303,714			432,306
Loss on disposal of fixed assets					427						427
Total operating expenses		8,328,604			6,247,138			26,341,615			22,888,706

Income (loss) from operations		3,019,166			3,676,469			3,889,090			(10,293,011	)

Other income (expense):
Interest income		35,451			31,443			260,679			129,854
Interest income – related parties		504			504			2,005			2,000
Interest expense		(88,776	)		(570,523	)		(723,038	)		(1,531,719	)
Other income (expense)		(1,527,706	)		(55,351	)		(981,223	)		265,980
Foreign currency transaction loss		43,741			(42,574	)		11,686			(68,180	)
Total other income (expense), net		(1,536,786	)		(636,501	)		(1,429,891	)		(1,202,065	)

Income (loss) before benefit from income taxes		1,482,380			3,039,968			2,459,199			(11,495,076	)

Provision for (benefit from) income taxes		362,623			643,728			632,124			(2,400,652	)

Net income (loss)		1,119,757			2,396,240			1,827,075			(9,094,424	)

Net loss attributable to non-controlling interests		(215	)		(1,128	)		(4,865	)		(8,349	)

Net income (loss) attributable to Snail, Inc.	$	1,119,972		$	2,397,368		$	1,831,940		$	(9,086,075	)

Comprehensive income (loss) statement:

Net income (loss)	$	1,119,757		$	2,396,240		$	1,827,075		$	(9,094,424	)

Other comprehensive income (loss) related to currency translation adjustments, net of tax		(48,600	)		33,302			(25,074	)		52,817

Total comprehensive income (loss)	$	1,071,157		$	2,429,542		$	1,802,001		$	(9,041,607	)

Net income (loss) attributable to Class A common stockholders:
Basic	$	248,176		$	516,955		$	400,576		$	(1,960,813	)
Diluted	$	248,176		$	516,955		$	400,576		$	(1,960,813	)

Net income (loss) attributable to Class B common stockholders:
Basic	$	871,796		$	1,880,413		$	1,431,364		$	(7,125,262	)
Diluted	$	871,796		$	1,880,413		$	1,431,364		$	(7,125,262	)

Net income (loss) per share attributable to Class A and B common stockholders:
Basic	$	0.03		$	0.07		$	0.05		$	(0.25	)
Diluted	$	0.03		$	0.07		$	0.05		$	(0.25	)

Weighted-average shares used to compute income (loss) per share attributable to Class A common stockholders:
Basic		8,183,918			7,914,564			8,045,469			7,909,715
Diluted		8,183,918			7,914,564			8,045,469			7,909,715

Weighted-average shares used to compute income (loss) per share attributable to Class B common stockholders:
Basic		28,748,580			28,748,580			28,748,580			28,748,580
Diluted		28,748,580			28,748,580			28,748,580			28,748,580


Snail, Inc. and Subsidiaries Consolidated Statements of Cash Flows

*For the years ended December 31,*	*2024*			*2023*

Cash flows from operating activities:
Net income (loss)	$	1,827,075		$	(9,094,424	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization – intangible assets, net		7,804			1,384,862
Amortization – loan origination fees and debt discounts		62,855			124,595
Accretion – convertible notes		222,628			306,664
Loss on change in fair value of warrant liabilities		1,332,815			32,883
Depreciation – property and equipment		303,714			432,306
Stock-based compensation expense		(890,208	)		848,035
Loss (gain) on disposal of fixed assets		–			427
Credit losses		–			581,498
Deferred taxes, net		(569,601	)		(2,644,964	)

Changes in assets and liabilities:
Accounts receivable		15,319,987			(18,939,465	)
Accounts receivable – related party		3,663,726			3,824,775
Prepaid expenses – related party		1,928,581			(8,245,966	)
Prepaid expenses and other current assets		(1,206,331	)		501,104
Prepaid taxes		2,211,331			–
Other noncurrent assets		(1,523,065	)		–
Accounts payable		(7,183,648	)		2,992,856
Accounts payable – related parties		(8,001,265	)		3,176,177
Accrued expenses and other liabilities		46,542			626,764
Interest receivable – related party		(2,005	)		(2,000	)
Lease liabilities		(266,800	)		(205,520	)
Deferred revenue		(8,849,259	)		24,765,261
Net cash provided by (used in) operating activities		(1,565,124	)		465,868

Cash flows from financing activities:
Repayments on promissory note		(89,374	)		(79,897	)
Repayments on notes payable		(2,333,333	)		(6,500,000	)
Repayments on convertible notes		(1,020,000	)		–
Repayments on revolving loan		(3,000,000	)		(3,000,000	)
Borrowings on notes payable		–			3,000,000
Cash proceeds from exercise of warrants		220,000			–
Proceeds from issuance of convertible notes		–			847,500
Refund of dividend withholding tax overpayment		–			1,886,600
Purchase of treasury stock		–			(257,093	)
Payments of offering costs in accounts payable		(262,914	)		(342,318	)
Release of restricted escrow deposit		–			1,003,804
Net cash used in financing activities		(6,485,621	)		(3,441,404	)

Effect of currency translation on cash and cash equivalents		(24,630	)		51,670

Net increase (decrease) in cash and cash equivalents, and restricted cash and cash equivalents		(8,075,375	)		(2,923,866	)

Cash and cash equivalents, and restricted cash and cash equivalents – beginning of period		16,314,319			19,238,185

Cash and cash equivalents, and restricted cash and cash equivalents – end of period	$	8,238,944		$	16,314,319

Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	467,188		$	934,523
Income taxes	$	(1,100,302	)	$	248,388
Noncash finance and investing activity during the period for:
Debt converted to equity	$	(60,000	)	$	–
Right-of-use assets obtained in exchange for a lease liability	$	(85,588	)
Liabilities converted to equity upon exercise of warrants	$	176,750
Acquisition of software in accounts payable – related parties	$	290,000		$	–
Acquisition of license rights in accrued expenses and other liabilities	$	420,000		$	–
Issuance of warrants in connection with equity line of credit	$	–		$	(105,411	)

The MIL Network –

March 27, 2025

MIL-OSI: Oxbridge Re Holdings Limited Reports Fiscal 2024 Results

Source: GlobeNewswire (MIL-OSI)

GRAND CAYMAN, Cayman Islands, March 26, 2025 (GLOBE NEWSWIRE) — Oxbridge Re Holdings Limited (NASDAQ: OXBR), (“Oxbridge Re” or the “Company”), which together with its subsidiaries, is engaged in the business of tokenized Real-World Assets (“RWAs”), initially in the form of tokenized reinsurance securities, and reinsurance business solutions to property and casualty insurers in the Gulf Coast region of the United States, today reported its results for the three months and year ended December 31, 2024.

“SurancePlus is entering its third year in the Real World Asset (RWA) space, leveraging blockchain technology to tokenize targeted reinsurance contracts. As a Nasdaq-listed company, Oxbridge Re, through its subsidiary SurancePlus Inc., became the first public company to issue a security token in reinsurance—bridging the gap between the SEC, blockchain, and tokenization. This innovation significantly lowers the barrier to entry for an asset class that traditionally required millions of dollars to access, enabling participation with as little as $5,000 while maintaining rigorous AML and accreditation checks—often completed in under four minutes,” said Jay Madhu, Chairman and Chief Executive Officer of Oxbridge Re. “We are proud of our success in this space and look forward to further expanding SurancePlus in the Security Token and RWA sector, effectively democratizing access to reinsurance while ensuring strict transparency and compliance. With the RWA tokenization market currently projected to reach as much as $30 trillion by 2030, SurancePlus is well positioned to capitalize on this substantial growth opportunity.”

Mr. Madhu continued “Subsequent to the year end, the Company completed a reverse direct offering raising gross proceeds of $3 million. These steps reflect our continued focus on strengthening the Company’s capital position while pursuing scalable growth opportunities in a rapidly evolving market. Looking ahead, we believe Oxbridge Re is well positioned to build on this momentum. Our subsidiary, SurancePlus Inc. has recently announced a strategic partnership with Plume, a blockchain platform supporting over $4.5 billion in assets and more than 18 million unique addresses. This collaboration marks a significant milestone in expanding distribution for our tokenized reinsurance offerings. As institutional and retail interest in real-world asset tokenization continues to accelerate, we remain focused on scaling our platform with discipline, transparency, and regulatory compliance. Furthermore, SurancePlus has launched its 2025–2026 tokenized reinsurance offerings, introducing a new balanced-yield security targeting a 20% annual return, while continuing its high-yield offering targeting a 42% annual return. By broadening our range of risk-return options, this year’s structure is designed to attract to a broader investor base, reinforcing our mission to make institutional-grade reinsurance accessible through compliant, blockchain-powered real-world assets.”

Financial Performance

Net premiums earned for the three months ended December 31, 2024, were $595,000 compared to $523,000 in the prior year. For the year ended December 31, 2024, net premiums earned increased to $2,303,000 from $1,255,000 in the prior year. This increase is primarily attributed to the higher rates on contracts as well as the prior period recognizing only seven months of premiums due to the acceleration of premiums on contracts in force during at December 31, 2022. In contrast, the current year ended December 31, 2024 accounted for a full twelve (12) months of premiums.

For the three months ended December 31, 2024, the Company generated net loss of $460,000 or $0.05 per basic and diluted loss per share compared to a net loss of $2.67 million or $0.46 per basic and diluted earnings per share in the fourth quarter of 2023. For the year ended December 31, 2024, the Company incurred a net loss of $2.7 million or $0.45 per basic and diluted loss per share compared to net loss of $9.9 million or $1.69 per basic and diluted earnings per share in the prior year. The decline in Q4 and fiscal 2024 is primarily due to a decrease in the negative change in the fair value of our investment in Jet.AI (which was sold subsequent to the year-end) as well as the company accounting for non-controlling interests’ portion of its income.

Total expenses, including losses and loss adjustment expenses, policy acquisition costs and general and administrative expenses, were $497,000 and $2.1 million for the three months and year ended December 31, 2024, respectively, compared to $535,000 and $2.3 million, respectively, for the same periods in the prior year. The decrease in 2024 is due to expense fluctuations along with efficiencies associated with SurancePlus offerings being recognized during the year, in addition to previous recognition of costs associated with Maxim equity distribution agreement in 2023.

At December 31, 2024, cash and cash equivalents, and restricted cash and cash equivalents were $5.8 million compared to $3.7 million at December 31, 2023.The increase is primarily due to new collateral deposits for treaty year ending May 31, 2025 more than offsetting funds being released from the underlying trusts for treaty year ending May 31, 2024.

Subsequent to year end, the Company completed a reverse direct offering raising gross proceeds of $3 million.

Financial Ratios

Loss Ratio. The loss ratio, which measures underwriting profitability, is the ratio of losses and loss adjustment expenses incurred to net premiums earned. The loss ratio remained consistent at 0% for the year ended December 31, 2024 and 2023.

Acquisition Cost Ratio. The acquisition cost ratio, which measures operational efficiency, compares policy acquisition costs with net premiums earned, decreased marginally to 11.0% for the year ended December 31, 2024 from 11.2% in the prior year.

Expense Ratio. The expense ratio, which measures operating performance, compares policy acquisition costs and general and administrative expenses with net premiums earned. The expense ratio decreased to 94.3% for the year ended December 31, 2024, from 185.2% for the prior year due to lower general and administrative expenses in 2024. The decrease is due to the higher levels of premium earned and lower general administrative expenses incurred during the year ended December 31, 2024.

Combined ratio. The combined ratio, which is used to measure underwriting performance, is the sum of the loss ratio and the expense ratio. The combined ratio decreased to 94.3% for the year ended December 31, 2024, from 185.2% for the prior year. The decrease is due to the higher levels of premium earned and lower general administrative expenses incurred during the year ended December 31, 2024.

Conference Call

Management will host a conference call later today to discuss these financial results, followed by a question and answer session. President and Chief Executive Officer Jay Madhu and Chief Financial Officer Wrendon Timothy will host the call starting at 4:30 p.m. Eastern time.

Date: March 26, 2025
Time: 4.30 p.m. Eastern Time
Toll-free number: – 877-524-8416
International number: +1 412-902-1028

Please call the conference telephone number 15 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact InComm Conferencing at +1-201-493-6280
media@incommconferencing.com

A replay of the call will be available by telephone replay after 7:30 p.m. Eastern Time on the same day of the call until April 09, 2025.

Toll-free replay number: 877-660-6853
International replay number: +1-201-612-7415
Conference ID: 13752504

About Oxbridge Re Holdings Limited

Oxbridge Re Holdings Limited (www.OxbridgeRe.com) (NASDAQ: OXBR, OXBRW) (“Oxbridge Re”) is headquartered in the Cayman Islands. The company offers tokenized Real-World Assets (“RWAs”) as tokenized reinsurance securities and reinsurance business solutions to property and casualty insurers, through its subsidiaries Oxbridge Re NS, SurancePlus Inc. and Oxbridge Reinsurance Limited.

Insurance businesses in the Gulf Coast region of the United States purchase property and casualty reinsurance through our licensed reinsurers Oxbridge Re NS and Oxbridge Reinsurance Limited.

Our Web3-focused subsidiary, SurancePlus Inc. (“SurancePlus”), has developed the first “on-chain” reinsurance RWA of its kind to be sponsored by a subsidiary of a publicly traded company. By digitizing interests in reinsurance contracts as on-chain RWAs, SurancePlus has democratized the availability of reinsurance as an alternative investment to both U.S. and non-U.S. investors.

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,” “estimate,” “expect,” “intend,” “plan,” “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. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on 26th March 2025. The occurrence of any of these risks and uncertainties could have a material adverse effect on the Company’s business, financial condition and results of operations. Any forward-looking statements made in this press release speak only as of the date of this press release and, except as required by law, the Company undertakes no obligation to update any forward-looking statement contained in this press release, even if the Company’s expectations or any related events, conditions or circumstances change.

Company Contact:
Oxbridge Re Holdings Limited
Jay Madhu, CEO
345-749-7570
jmadhu@oxbridgere.com

OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES

Consolidated Balance Sheets

(expressed in thousands of U.S. Dollars, except per share and share amounts)

	At December 31,
	2024			2023

Assets
Investments:
Equity securities, at fair value (cost : $1,532 and $1,926)		113			680
Cash and cash equivalents		2,135			495
Restricted cash and cash equivalents		3,758			3,250
Premiums receivable		1,059			977
Other investments		48			2,478
Loan Receivable		–			100
Due from related party		–			63
Deferred policy acquisition costs		109			101
Operating lease right-of-use assets		148			9
Prepayment and other assets		94			96
Property and equipment, net		1			4
Total assets	$	7,465			8,253

Liabilities and Shareholders’ Equity
Liabilities:
Notes payable to EpsilonCat Re and DeltaCat Re Token Holders		1,732			1,523
Notes payable to noteholders		118			118
Unearned premiums reserve		991			915
Operating lease liabilities		148			9
Accounts payable and other liabilities		366			356
Total liabilities		3,355			2,921

Shareholders’ equity:
Ordinary share capital, (par value $0.001, 50,000,000 shares authorized; 6,379,002 and 5,870,234 shares issued and outstanding)		6			6
Additional paid-in capital		34,105			32,740
Accumulated Deficit		(30,163	)		(27,414	)
Total Oxbridge shareholders’ equity		3,948			5,332
Non-controlling interests		162			–
Total shareholders’ equity		4,110			5,332
Total liabilities and shareholders’ equity		7,465			8,253

OXBRIDGE RE HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
(expressed in thousands of U.S. Dollars, except per share amounts)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023

Revenue
Assumed premiums		–			(26	)		2,379			2,170
Change in unearned premiums reserve		595			549			(76	)		(915	)

Net premiums earned		595			523			2,303			1,255
SurancePlus Management Fee Income		–			–			312			300
Net investment and other income		60			62			248			303
Interest and gain on redemption of Series A-1 Preferred Shares		47			–			47			–
Interest and gain on redemption of loan receivable		–			–			41			–
Unrealized loss on other investments		(208	)		(2,561	)		(2,145	)		(8,945	)
Change in fair value of equity securities		(72	)		71			(260	)		38

Total revenue	$	422			(1,905	)	$	546			(7,049	)

Expenses
Policy acquisition costs and underwriting expenses		66			61			254			141
General and administrative expenses		431			474			1,917			2,183

Total expenses	$	497			535		$	2,171			2,324

Loss before income attributable to tokenholders and non-controlling interests		(75	)		(2,440	)		(1,625	)		(9,373	)

Income attributable to tokenholders		(246	)		(232	)		(962	)		(542	)
Loss before income attributable to non-controlling interests		(321	)		(2,672	)		(2,587	)		(9,915	)

Income attributable to non-controlling interests		(139	)		–			(139	)		–

Net loss attributable to ordinary shareholders		(460	)		(2,672	)		(2,726	)		(9,915	)

Loss per share attributable to ordinary shareholders
Basic and Diluted		(0.05	)		(0.46	)		(0.45	)		(1.69	)

Weighted-average shares outstanding
Basic and Diluted		6,121,020			5,870,234			6,099,051			5,867,129

Performance ratios to net premiums earned:
Loss ratio		0.0	%		0.0	%		0.0	%		0.0	%
Acquisition cost ratio		11.1	%		11.7	%		11.0	%		11.2	%
Expense ratio		83.5	%		102.3	%		94.3	%		185.2	%
Combined ratio		83.5	%		102.3	%		94.3	%		185.2	%

The MIL Network –

March 27, 2025

MIL-OSI: Usio Announces Improved Profitability; Fourth Quarter GAAP Earnings of $0.02 per share and Full Year GAAP Earnings of $0.12 per share

Source: GlobeNewswire (MIL-OSI)

Full Year Revenues up in each of ACH & Complementary Services, Card and Output Solutions Business Units

Record Full Year 2024 Dollar Processing Volume of $7.1 Billion, a 33% Increase Compared to Fiscal 2023; Transactions Processed also up a Strong 26% Year-over-Year

Cash Position Increases to Record High of $8.1 Million

SAN ANTONIO, March 26, 2025 (GLOBE NEWSWIRE) — Usio, Inc: (Nasdaq: USIO), a leading FinTech company that operates a full stack of integrated, cloud-based electronic payment and embedded financial solutions, today announced financial results for the fourth quarter and year ended December 31, 2024.

Louis Hoch, Chairman and Chief Executive Officer of Usio, said, “We are delivering on our commitments as profitability improved, cash flow was strong, and revenue grew in each of our ACH & Complementary Services, Card and Output Solutions businesses in both the fourth quarter and full year 2024. We also delivered another year of positive Adjusted EBITDA¹. Results were driven across Usio by a 33% increase in total dollar processing volume, which rose to $7.1 billion from $5.3 billion in 2023, while transactions processed reached record levels on 26% year-over-year growth. We attribute this solid revenue performance to our innovative technology and complementary business strategy while the bottom line continues to improve as we implement our disciplined cost control and enhance our results through operating leverage that our business model provides.

“For the quarter, we reported top line growth as well as our third consecutive quarter of positive GAAP net income, approximately $0.6 million, or $0.02 per share. For both the quarter and the year, revenues were up in three of our business units, and in the fourth, prepaid revenues were up when excluding the COVID incentive programs that was essentially wound down in fiscal 2023. Cash flow remains strong, enabling us to bolster our balance sheet, which provides us with resources to support our growth initiatives. In addition, cash flow in 2024 was also used to repurchase $1.4 million of our stock. And, today, the Board reauthorized a new repurchase agreement of $4 million which further illustrates our confidence in the business’ long-term prospects. Together, this is a strong set up for what we believe will be another year of both top line and Adjusted EBITDA¹ growth in 2025.”

Momentum continues to accelerate in ACH and complementary services, with revenues up 17% in the quarter and 12% for the year, in large part reflecting success cross-selling ACH into existing Card and Prepaid accounts. Card revenue growth remains solid, up 6% for the quarter and 3% for the year, led by PayFac, where revenues were up 29% in the quarter, and 22% on the year. Output Solutions had a strong fourth quarter, growing revenues a healthy 13%, which drove the business to full year growth after facing headwinds in prior quarters during the year. Total dollars loaded on prepaid cards exceeded $111 million in the fourth quarter, the sixth consecutive quarter of over $100 million in prepaid card loads. Fiscal 2024 revenues comparisons in prepaid continue to reflect last year’s expiration of COVID incentive programs, but we believe that Prepaid should begin to benefit from the over 90 client agreements signed in 2024 and a more concerted focus on recurring revenue, ‘evergreen’ clients.”

Gross profits and margins were down modestly for both the quarter and the year, due primarily to product mix. Selling, general and administrative expenses were up just 3% for the year, reflecting continued strong expense control. The Company closed the 2024 fiscal year with $8.1 million cash on hand compared to year end cash of $7.2 million in 2023. The Company expects this trend of positive cash growth to continue in fiscal 2025.

Mr. Hoch concluded, “In 2024 our various growth initiatives enabled us to regain nearly all of the revenue lost with the planned expiration of large COVID related card programs while improving profitability and further strengthening our financial position. More importantly, we are fully embarking on our new One Usio strategy, better integrating all of our various product offerings so that we approach the market as a unified force with a portfolio of capabilities that can meet our customer’s various electronic payment and associated needs. Already, we are seeing success selling multiple, complementary Usio products to an increasing number of clients who benefit from the synergies and efficiencies that arise from consolidating their relationships. While this has always been one of our competitive advantages, in 2025 we are redoubling our efforts and organizing around this concept to better unlock the inherent value of this strategy. At the same time, we believe we have the infrastructure to support our growth initiatives such that we can expect to see continued improvement in our operating leverage. We believe 2025 will be another year of growth as we create value for our shareholders.”

Fiscal 2025 Guidance

The Company continues to expect strong 14 – 16% growth in revenue in 2025 while also anticipating Adjusted EBITDA¹ margins in the 5 – 7% range. Guidance is conditioned on no appreciable deterioration in economic conditions.

Fourth Quarter 2024 Financial Summary

Revenues were $20.6 million for the fourth quarter, up 2% compared to $20.1 million in the same period in 2023.

	Three Months Ended December 31,
	(in millions, except percentages)
	2024		2023		$ Change			% Change

ACH and complementary service revenue	$	4.6	$	3.9	$	0.7			17	%
Credit card revenue		7.2		6.9		0.4			6	%
Prepaid card services revenue		3.0		4.0		(1.0	)		(24	)%
Output Solutions revenue		5.1		4.6		0.6			13	%
Interest – ACH and complementary services		0.2		0.2		(0.1	)		(22	)%
Interest – Prepaid card services		0.3		0.5		(0.2	)		(41	)%
Interest – Output Solutions		0.0		0.0		0.0			73	%
Total Revenue	$	20.6	$	20.1	$	0.4			2	%

Revenue growth was primarily attributable to 17% growth in our ACH and complementary services revenue, alongside 13% growth in Output solutions, helping offset a 24% decrease in Prepaid revenues associated with the anticipated wind down of COVID incentive programs in 2024. Credit card revenues also saw a 6% increase, due to the success of our PayFac portfolio achieving 29% growth in the quarter, mitigating the continued attrition of our legacy credit card portfolios.

Gross profits were $5.1 million, down 4% from $5.3 million for the in 2023. Gross margins were 24.6% compared to 26.1% in the same period in 2023. Gross margins in the quarter primarily reflect a shift in revenue mix, and a decline in interest revenues versus the prior year period due to the lower interest rates in the period.

The Company had an operating loss of $0.6 million, compared to an operating loss of $0.0 million from the same period in 2023.

Adjusted EBITDA¹ was positive $0.5 million in the quarter, down $0.5 million from $1.1 million in the same period in 2023, due primarily to lower gross profit margins, and an 8% increase in SG&A expense.

For the quarter, the Company generated $0.5 million of interest revenue compared to $0.8 million in the year ago quarter.

Net income for the fourth quarter of 2024 was $0.6 million, or $0.02 per share, compared to net income of $0.03 million or $0.00 per share for the same period in 2023. Results in the current quarter primarily by the receipt and recognition of approximately $1.5 million in funds related to the employee retention tax credit made available through the CARES Act, and extended through the American Rescue Plan Act.

During the quarter, the Company repurchased 331,222 shares of its stock at an average price of $1.46 for a total cost of $482,426 as part of its share buyback program.

¹ See reconciliation of non-GAAP financial measures below.

Financial Results for Full Year 2024

Revenues for 2024 were $82.9 million, down 1% from $84.1 million for the same period in 2023.

	Year Ended December 31,
	(in millions, except percentages)
	2024		2023		$ Change			% Change

ACH and complementary service revenue	$	16.7	$	14.9	$	1.8			12	%
Credit card revenue	29.3			28.5		0.8			3	%
Prepaid card services revenue		14.1		18.7		(4.6	)		(25	)%
Output Solutions revenue		20.6		20.5		0.1			1	%
Interest – ACH and complementary services		0.8		0.5		0.3			59	%
Interest – Prepaid card services		1.3		0.9		0.4			44	%
Interest – Output Solutions		0.2		0.0		0.1			220	%
Total Revenue	$	82.9	$	84.1	$	(1.1	)		(1	)%

The Company experienced strong revenue growth in its ACH and complementary services business segment, seeing an $1.8 million, or 12% increase over 2023. This revenue growth, alongside a 55% increase in aggregate interest revenues, helped to offset the 25% decline in our prepaid card services, as we saw the anticipated wind down of revenues associated with COVID incentive programs in 2024. Strong net new customer and organic growth, specifically in our corporate and commercial card programs, generated over $7 million of revenues in 2024, greatly offsetting the revenues in 2023 associated with those COVID programs. Credit card revenues were also up 3%, with PayFac growing 22% in 2024, mitigating attrition in our legacy credit card lines of business. Revenues associated with our PayFac portfolio now exceed 50% of total credit card processing revenues, and performance associated with our PayFac model is anticipated to become more representative of overall credit card revenue growth. Output Solutions revenues were up 1%, as we fully implemented our new processing equipment through the year in order to position the business unit for continued growth in 2025 due to the increased capacity, efficiency, and speed our new equipment provides.

Gross profit for the year ended December 31, 2024 was $19.6 million, down 2% from $20.1 million in fiscal 2023. Gross margins were 23.7% for the year ended December 31, 2024 compared to 23.9% in fiscal 2023, generally reflecting a shift in business mix over the year.

The Company reported $2.9 million in Adjusted EBITDA¹ for the year ended December 31, 2024, a $1.0 million decline versus $3.9 million in 2023, due primarily to slightly lower revenues and gross margin, alongside a 3% increase in SG&A expense in 2024. The Company increased its cash balance by $0.9 million, while utilizing $1.4 million on share repurchases in 2024. The Company significantly improved its net income for the year by $3.8 million to $3.3 million compared to a loss of $0.5 million for fiscal 2023 due to the recognition of an approximate $3.1 million federal tax benefit. The Company reported earnings of $0.12 per share, a significant improvement compared to loss of $(0.02) per share, in fiscal 2023.

Conference Call and Webcast

Usio, Inc.’s management will host a conference call with a live webcast Wednesday, March 26, 2025 at 4:30 pm Eastern time to provide a business update. To listen to the conference call, interested parties within the U.S. should call +1-844-883-3890. International callers should call + 1-412-317-9246. All callers should ask for the Usio conference call. The conference call will also be available through a live webcast, which can be accessed via the company’s website at www.usio.com/invest.

A replay of the call will be available approximately one hour after the end of the call through April 10, 2025. The replay can be accessed via the Company’s website or by dialing +1-877-344-7529 (U.S.) or +1-412-317-0088 (international). The replay conference playback code is 2388192.

About Usio, Inc.

Usio, Inc. (Nasdaq: USIO), is a leading Fintech that operates a full stack of proprietary, cloud-based integrated payment and embedded financial solutions in a single ecosystem to a wide range of merchants, billers, banks, service bureaus and card issuers. The Company operates credit/debit and ACH payment processing platforms, as well as a turn-key card issuing platform to deliver convenient, world-class payment solutions and services to their clients. The company, through its Usio Output Solutions division offers services relating to electronic bill presentment, document composition, document decomposition and printing and mailing services. The strength of the Company lies in its ability to provide tailored solutions for card issuance, payment acceptance, and bill payments as well as its unique technology in the prepaid sector. Usio is headquartered in San Antonio, Texas, and has a development office in Austin, Texas.

Websites: www.usio.com, www.payfacinabox.com, www.akimbocard.com and www.usiooutput.com. Find us on Facebook® and Twitter.

About Non-GAAP Financial Measures

This press release includes non-GAAP financial measures, EBITDA, adjusted EBITDA, and adjusted EBITDA margins, as defined in Regulation G of the Securities and Exchange Act of 1934, as amended. The Company reports its financial results in compliance with GAAP, but believes that also discussing non-GAAP financial measures provides investors with financial measures it uses in the management of its business. The Company defines EBITDA as operating income (loss), before interest, taxes, depreciation and amortization of intangibles. The Company defines adjusted EBITDA as EBITDA, as defined above, plus non-cash stock option costs and certain non-recurring items, such as costs related to acquisitions. These measures may not be comparable to similarly titled measures reported by other companies. Management uses EBITDA, adjusted EBITDA, and adjusted EBITDA margins as indicators of the Company’s operating performance and ability to fund acquisitions, capital expenditures and other investments and, in the absence of refinancing options, to repay debt obligations.

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

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

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

¹ See reconciliation of non-GAAP financial measures below.

FORWARD-LOOKING STATEMENTS DISCLAIMER

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

Contact:

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

USIO, INC. CONSOLIDATED BALANCE SHEETS

	December 31, 2024			December 31, 2023
ASSETS
Cash and cash equivalents	$	8,056,891		$	7,155,687
Accounts receivable		5,053,639			5,564,138
Accounts receivable, tax credit		1,494,612			—
Settlement processing assets		47,104,006			44,899,603
Prepaid card load assets		25,648,688			31,578,973
Customer deposits		1,918,805			1,865,731
Inventory		403,796			422,808
Prepaid expenses and other		585,500			444,071
Current assets before merchant reserves		90,265,937			91,931,011
Merchant reserves		4,890,101			5,310,095
Total current assets		95,156,038			97,241,106

Property and equipment, net		3,194,818			3,660,092

Other assets:
Intangibles, net		881,346			1,753,333
Deferred tax asset		4,580,440			1,504,000
Operating lease right-of-use assets		3,037,928			2,420,782
Other assets		357,877			355,357
Total other assets		8,857,591			6,033,472

Total Assets	$	107,208,447		$	106,934,670

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	1,256,819		$	1,031,141
Accrued expenses		3,366,925			3,801,278
Operating lease liabilities, current portion		612,680			633,616
Equipment loan, current portion		147,581			107,270
Settlement processing obligations		47,104,006			44,899,603
Prepaid card load liabilities		25,648,688			31,578,973
Customer deposits		1,918,805			1,865,731
Current liabilities before merchant reserve obligations		80,055,504			83,917,612
Merchant reserve obligations		4,890,101			5,310,095
Total current liabilities		84,945,605			89,227,707

Non-current liabilities:
Equipment loan, non-current portion		571,862			718,980
Operating lease liabilities, non-current portion		2,534,017			1,919,144
Total liabilities		88,051,484			91,865,831

Commitments and Contingencies
Stockholders’ Equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized; -0- shares issued and outstanding in 2024 and 2023		—			—
Common stock, $0.001 par value, 200,000,000 shares authorized; 29,902,415 and 28,671,606 issued and 26,609,651 and 26,332,523 outstanding in 2024 and 2023 (see Note 12)		198,317			197,087
Additional paid-in capital		99,676,457			97,479,830
Treasury stock, at cost; 3,292,764 and 2,339,083 shares in 2024 and 2023 (see Note 12)		(5,770,592	)		(4,362,150	)
Deferred compensation		(6,914,563	)		(6,907,775	)
Accumulated deficit		(68,032,656	)		(71,338,153	)
Total stockholders’ equity		19,156,963			15,068,839

Total Liabilities and Stockholders’ Equity	$	107,208,447		$	106,934,670

USIO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended (unaudited)						Twelve Months Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Revenues	$	20,560,088		$	20,130,642		$	82,931,840		$	84,066,245
Cost of services		15,495,310			14,871,207			63,317,396			63,992,417
Gross profit		5,064,778			5,259,435			19,614,444			20,073,828

Selling, general and administrative:
Stock-based compensation		564,300			545,711			2,093,406			2,222,969
Other expenses		4,547,694			4,195,580			16,728,081			16,216,690
Depreciation and Amortization		555,581			521,932			2,263,302			2,081,533
Total operating expenses		5,667,575			5,263,223			21,084,789			20,521,192

Operating loss		(602,797	)		(3,788	)		(1,470,345	)		(447,364	)

Other income:
Interest income		116,558			103,337			464,746			219,986
Other income		1,476,272			—			1,737,685			50,000
Interest expense		(12,267	)		(3,614	)		(53,802	)		(5,202	)
Other income, net		1,580,563			99,723			2,148,629			264,784

Income (loss) before income taxes		977,766			95,935			678,284			(182,580	)

Federal income tax expense (benefit)		109,613			—			(3,076,440	)		—
State income tax expense		239,227			70,000			449,227			292,524
Income tax expense (benefit)		348,840			70,000			(2,627,213	)		292,524

Net Income (Loss)	$	628,926		$	25,935		$	3,305,497		$	(475,104	)

Earnings (Loss) Per Share
Basic income (loss) per common share:	$	0.02		$	0.00		$	0.12		$	(0.02	)
Diluted income (loss) per common share:	$	0.02		$	0.00		$	0.12		$	(0.02	)
Weighted average common shares outstanding
Basic		27,162,675			26,503,251			26,852,129			26,490,868
Diluted		27,162,675			26,503,251			26,852,129			26,490,868

USIO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS

	December 31, 2024			December 31, 2023
Operating Activities
Net income (loss)	$	3,305,497		$	(475,104	)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Depreciation		1,391,315			1,209,506
Amortization		871,987			872,027
Loss on disposal of equipment		18,340			—
Deferred federal income tax		(3,076,440	)		—
Employee stock-based compensation		2,093,406			2,190,369
Vendor stock-based compensation		—			32,600
Non-cash revenue from return of treasury stock		—			(156,162	)
Changes in operating assets and liabilities:
Accounts receivable		510,499			(1,192,498	)
Accounts receivable, tax credit		(1,494,612	)		—
Prepaid expenses and other		(141,429	)		6,318
Operating lease right-to-use assets		(617,146	)		374,701
Other assets		(2,520	)		—
Inventory		19,012			84,547
Accounts payable and accrued expenses		(208,675	)		252,689
Operating lease liabilities		593,937			(403,506	)
Merchant reserves		(419,994	)		400,594
Customer deposits		53,074			311,609
Net cash provided by operating activities		2,896,251			3,507,690

Investing Activities
Purchases of property and equipment		(991,881	)		(834,964	)
Sale of equipment		47,500			—
Net cash used by investing activities		(944,381	)		(834,964	)

Financing Activities
Payments on equipment loan		(106,807	)		(56,992	)
Proceeds from issuance of common stock		97,663			—
Purchases of treasury stock		(1,408,442	)		(456,961	)
Assets held for customers		(3,725,882	)		6,570,747
Net cash provided (used) by financing activities		(5,143,468	)		6,056,794

Change in cash, cash equivalents, customer deposits and merchant reserves		(3,191,598	)		8,729,520
Cash, cash equivalents, customer deposits and merchant reserves, beginning of year		90,810,089			82,080,569

Cash, Cash Equivalents, Settlement Processing Assets, Prepaid Card Load Assets, Customer Deposits and Merchant Reserves, End of Year	$	87,618,491		$	90,810,089

Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest	$	53,802		$	5,202
Income taxes		290,144			116,204
Non-cash operating activities:
Right of use assets obtained in exchange for operating lease liabilities	$	1,156,543		$	–
Non-cash investing and financing activities:
Issuance of deferred stock compensation	$	1,497,300		$	2,650,505
Non-cash transaction for acquisition of equipment in exchange for note payable		—			811,819

USIO, INC. STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

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

Balance at December 31, 2022		27,044,900		$	195,471		$	94,048,603		$	(3,749,027	)	$	(5,697,900	)	$	(70,863,049	)	$	13,934,098

Issuance of common stock under equity incentive plan		1,731,506			1,731			3,619,315			—			(2,650,505	)		—			970,541
Reversal of deferred compensation amortization that did not vest		(115,000	)		(115	)		(188,088	)		—			103,091			—			(85,112	)
Deferred compensation amortization		—			—			—			—			1,337,539			—			1,337,539
Non-cash return of treasury stock		—			—			—			(156,162	)		—			—			(156,162	)
Purchase of treasury stock		—			—			—			(456,961	)		—			—			(456,961	)
Net loss		—			—			—			—			—			(475,104	)		(475,104	)

Balance at December 31, 2023		28,661,406		$	197,087		$	97,479,830		$	(4,362,150	)	$	(6,907,775	)	$	(71,338,153	)	$	15,068,839

Issuance of common stock under equity incentive plan		1,189,050			1,178			2,130,336			—			(1,497,300	)		—			634,214
Issuance of common stock under employee stock purchase plan		66,959			67			97,596			—			—			—			97,663
Reversal of deferred compensation amortization that did not vest		(15,000	)		(15	)		(31,305	)		—			31,320			—			—
Deferred compensation amortization		—			—			—			—			1,459,192			—			1,459,192
Purchase of treasury stock		—			—			—			(1,408,442	)		—			—			(1,408,442	)
Net income		—			—			—			—			—			3,305,497			3,305,497

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

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

	Three Months Ended (unaudited)						Twelve Months Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023

Reconciliation from Operating Income/(Loss) to Adjusted EBITDA:
Operating income (loss)	$	(602,797	)	$	(3,788	)	$	(1,470,345	)	$	(447,364	)
Depreciation and amortization		555,581			521,932			2,263,302			2,081,533
EBITDA		(47,216	)		518,144			792,957			1,634,169
Non-cash stock-based compensation expense, net		564,300			545,711			2,093,406			2,222,969
Adjusted EBITDA	$	517,084		$	1,063,855		$	2,886,363		$	3,857,138


Calculation of Adjusted EBITDA margins:
Revenues	$	20,560,088		$	20,130,642		$	82,931,840		$	84,066,245
Adjusted EBITDA		517,084			1,063,855			2,886,363			3,857,138
Adjusted EBITDA margins		2.5	%		5.3	%		3.5	%		4.6	%

The MIL Network –

March 27, 2025

MIL-OSI USA: Alaska Businesswoman Sentenced for Tax Evasion Scheme

Source: US State Government of Utah

An Alaska woman was sentenced yesterday to 12 months in prison for evading taxes on income she earned from the business she operated.

According to court documents and statements made in court, Tina H. Yi, was the sole owner and operator of SJ Investment LLC, a hotel, bar, and liquor store in Nome, Alaska, that did business as Polaris HBL. Yi created the business in approximately April 2007 and operated it until approximately October 2017, when the property was destroyed in a fire.

From approximately 2014 to 2018, Yi maintained two sets of financial records relating to the business’s income and expenses, one of which accurately captured SJ Investment’s income and expenses, and one that understated the business’s income. Yi provided the false records to her accountant to prepare her tax returns. As a result, her 2014 through 2018 tax returns were false.

Yi caused a total tax loss to the IRS of over $550,000.

In addition to her prison sentence, U.S. District Judge Timothy M. Burgess for the District of Alaska ordered Yi to serve three years of supervised release. The court will determine restitution at a later date.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Michael J. Heyman for the District of Alaska made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorney John C. Gerardi of the Tax Division and Assistant U.S. Attorney Tom Bradley for the District of Alaska are prosecuting the case. Former Tax Division Trial Attorney Ahmed Almudallal assisted with the prosecution.

MIL OSI USA News –

March 27, 2025
MIL-OSI Security: Alaska Businesswoman Sentenced for Tax Evasion Scheme

Source: United States Attorneys General 1

An Alaska woman was sentenced yesterday to 12 months in prison for evading taxes on income she earned from the business she operated.

According to court documents and statements made in court, Tina H. Yi, was the sole owner and operator of SJ Investment LLC, a hotel, bar, and liquor store in Nome, Alaska, that did business as Polaris HBL. Yi created the business in approximately April 2007 and operated it until approximately October 2017, when the property was destroyed in a fire.

From approximately 2014 to 2018, Yi maintained two sets of financial records relating to the business’s income and expenses, one of which accurately captured SJ Investment’s income and expenses, and one that understated the business’s income. Yi provided the false records to her accountant to prepare her tax returns. As a result, her 2014 through 2018 tax returns were false.

Yi caused a total tax loss to the IRS of over $550,000.

In addition to her prison sentence, U.S. District Judge Timothy M. Burgess for the District of Alaska ordered Yi to serve three years of supervised release. The court will determine restitution at a later date.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Michael J. Heyman for the District of Alaska made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorney John C. Gerardi of the Tax Division and Assistant U.S. Attorney Tom Bradley for the District of Alaska are prosecuting the case. Former Tax Division Trial Attorney Ahmed Almudallal assisted with the prosecution.

MIL Security OSI –

March 27, 2025
MIL-OSI Security: HIGH SPRINGS MAN SENTENCED TO FEDERAL PRISON FOR WIRE FRAUD

Source: Office of United States Attorneys

GAINESVILLE, FLORIDA – Sean Walker, 34, of High Springs, Florida, was sentenced to 42 months in federal prison for wire fraud in connection with COVID-19 relief fraud. The sentence was announced by Michelle Spaven, Acting United States Attorney for the Northern District of Florida.

“Our office will continue to eliminate waste, fraud, and abuse of taxpayer money, including holding those accountable who conspired to falsely obtain government funds during the COVID‑19 pandemic,” said Acting United States Attorney Spaven.

Court documents reflect that Walker obtained over $20,000 in unemployment insurance benefits from the State of California, which were funded in part by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. These funds were intended to provide emergency financial assistance to the millions of Americans who were suffering from the economic effects caused by the COVID-19 pandemic. Walker’s benefits application contained materially false and fraudulent statements. Walker knew that he had never lived or worked in that state and was not entitled to unemployment insurance benefits from California.

In addition to his prison sentence, Walker was also ordered to pay $21,690 in restitution to California’s Employment Development Department. Walker’s imprisonment will also be followed by three years of supervised release.

Walker is one of nine defendants who were convicted of similar COVID-19 relief fraud as a result of a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorneys Adam Hapner and David P. Byron.

“While many were facing hardship and uncertainty, these defendants sought to exploit government programs intended to help those in need,” said Special Agent in Charge Ron Loecker, of the IRS-CI, Tampa Field Office. “Their actions were driven by greed and a blatant disregard for the law, undermining the purpose of critical relief efforts. We remain committed to holding accountable those who abuse these programs for personal gain and ensuring that justice is served.”

“The sentencing of Sean Walker conveys the important message that you cannot steal money from Americans without consequence,” said Kristin Rehler, Special Agent in Charge of the FBI Jacksonville Division. “The funds stolen by this defendant and other co-conspirators add to the massive amount of COVID-19 relief fraud that will ultimately be paid for by taxpayers. The FBI’s investigation into these schemes exemplifies our commitment to hold thieves accountable, and we will continue to work in coordination with our partners to protect the pocketbooks of hard-working Americans.”

The COVID-19 Fraud Enforcement Task Force marshals 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 relief funds can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

MIL Security OSI –

March 27, 2025
MIL-OSI Canada: Commercial importers provided 30-day extension to submit financial security before the end of CARM transition period

Source: Government of Canada News (2)

March 26, 2025
Ottawa, Ontario

When the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) system was launched externally on October 21, 2024, a 180-day transition period was introduced to grant commercial importers additional time to post their financial security electronically while benefitting from the Release Prior to Payment (RPP) Program. In response to feedback received from stakeholders, the CBSA will grant a 30-day extension to the transition period.

Importers will now have until 3 am EDT on May 20, 2025, to post their financial security in the CARM system. Importers who do not post financial security in CARM by May 20, 2025, will no longer be able to benefit from having their goods released electronically at the border prior to making payment of the duties and taxes. Without RPP, importers will have to pay all duties and taxes before goods can be released.

Once enrolled in the RPP Program, importers are not required to visit a commercial office to pay for the duties and taxes owed at time of release of their commercial shipment. Electronic enrollment also means that importers can avoid longer paper-based processing times. As such, all importers are strongly encouraged to make arrangements to post financial security well before the deadline of May 20, 2025.

MIL OSI Canada News –

March 27, 2025
MIL-OSI Security: Florida Man Pleads Guilty to Scheming to Defraud Maryland, California of More Than $2.3 Million in Covid-19 Unemployment Insurance Benefits

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

Baltimore, Maryland – David Godin, 34, aka “James St Patrick,” aka “David Wetty,” aka “Vic Pro,” of Miami, Florida, has pleaded guilty to wire fraud and aggravated identity theft, in connection with a scheme to defraud the Maryland Department of Labor (MD-DOL) and California Employment Development Department (CA-EDD). Godin attempted to defraud MD-DOL and CA-EDD of more than $2.3 million in unemployment insurance (UI) benefits during the COVID-19 pandemic.

Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Special Agent in Charge Troy W. Springer, National Capital Region, U.S. Department of Labor’s Office of Inspector General (DOL-OIG), and Special Agent in Charge Kareem A. Carter, Internal Revenue Service – Criminal Investigation (IRS-CI), Washington, D.C. Field Office.

According to the plea agreement, from June 2020 through November 2023, Godin engaged in a sophisticated scheme to defraud the MD-DOL and CA-EDD by using the personal identifiable information of identity theft victims, anonymous email addresses, virtual private networks, and proxy servers. This enabled Godin to file numerous fraudulent UI claims with multiple states from a single location; aggregate UI information in discrete accounts; and avoid fraud safeguards put in place by state insurance programs.

Godin submitted and caused the submission of at least 140 fraudulent UI claims to MD-DOL, CA-EDD, and other state workforce agencies, resulting in approximately $2,364,226 in UI benefits. He obtained $1,087,345.66 through the fraud scheme. As part of the plea agreement, Godin is required to pay restitution of $1,087,345.66. Additionally, Godin must forfeit money, property, and/or assets that he obtained through the scheme, including a money judgment of at least $1,087,345.66.

Godin faces a maximum sentence of 20 years in federal prison for the wire fraud scheme and a consecutive mandatory minimum sentence of two years in federal prison for using the personal identifiable information of identity theft victims during and in relation to the fraudulent activities. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Matthew J. Maddox has scheduled sentencing for June 30, at 10 a.m.

This case is part of the District of Maryland COVID-19 Strike Force, a Strike Force that is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

For more information about the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

U.S. Attorney Hayes commended DOL-OIG and IRS-CI for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Bijon A. Mostoufi and Jared M. Beim, who are prosecuting the federal case, and Joanna N. Huber, who is supporting the case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.

# # #

MIL Security OSI –

March 27, 2025
MIL-OSI USA: 03.26.2025 Sen. Cruz Introduces Bill to Block Federal Reserve from Issuing Central Bank Digital Currency

US Senate News:

Source: United States Senator for Texas Ted Cruz

WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) introduced the Anti-CBDC Surveillance State Act, legislation that prohibits the Federal Reserve from issuing a central bank digital currency (CBDC).
Upon introduction, Sen. Cruz said, “Cryptocurrency represents financial freedom, innovation, and privacy. A Central Bank Digital Currency (CBDC) would undermine these core values, erode privacy, and stifle innovation. I am proud to introduce this bill to restrict the implementation of a CBDC, and I call upon my colleagues to expeditiously take it up and advance it.”
This legislation was cosponsored by Sens. Ted Budd (R-N.C.), Kevin Cramer (R-N.D.), and Thom Tillis (R-N.C.).
Sen. Cramer said, “A central bank digital currency has the potential for financial monitoring and surveillance and could turn the Federal Reserve into a retail bank. Despite the previous administration’s push for this, Congress should not be circumvented and our bill ensures it!”
Sen. Tillis said, “This legislation is a crucial step in protecting Americans’ financial privacy and ensuring that the federal government does not have unchecked power over how we spend our money. A central bank digital currency, if misused, could become a surveillance tool that threatens individual freedoms and free market principles. I’m proud to support this bill and stand with my colleagues in defending the American people from government overreach.”
This bill is endorsed by America First Policy Institute, American Bankers Association, Americans for Tax Reform, America’s Credit Unions, Bank Policy Institute, Blockchain Association, Center for a Free Economy, Center for Freedom and Prosperity, Club for Growth, Consumer Bankers Association, Heritage Action, Independent Community Bankers of America, Project for Privacy & Surveillance Accountability, Restore the Fourth, Small Business & Entrepreneurship Council, Digital Chamber, Association of Mature American Citizens, and Crypto Council for Innovation.
David McIntosh, President of Club for Growth said, “Allowing the Federal Reserve to issue a digital currency would violate the separation of powers, expose Americans to unconstitutional financial surveillance, crowd out private investment and innovation, increase volatility in financial markets, and threaten persistent inflation. Club for Growth applauds WHIP Emmer and the House of Representatives for their effort to keep President Trump’s promise to protect Americans from the clear and present danger of the big government CBDC scheme.”
Rob Nichols, President & CEO of American Bankers Association said, “A central bank digital currency would fundamentally change the relationship between citizens and the Federal Reserve, and would undermine the essential role that banks play in extending credit and driving economic growth. The Anti-CBDC Surveillance State Act protects our financial system and our economy from these harms, and we applaud Sen. Cruz and his cosponsors for introducing it.”
Rebeca Romero Rainey, President & CEO of Independent Community Bankers of America said, “A Federal Reserve-issued central bank digital currency would disintermediate community banks, reduce credit availability, and undermine consumer privacy. ICBA and the nation’s community banks thank Senator Ted Cruz for introducing the CBDC Anti-Surveillance State Act to avoid the unnecessary risks a CBDC would pose to consumers and the economy.”
Read the bill text here.
Sen. Cruz has long been a champion of free markets and cryptocurrency.

Sen. Cruz passed a joint resolution of disapproval overturning the IRS’s Gross Proceeds Reporting rule for brokers handling digital asset sales. This rule would have harmed the digital asset industry by imposing burdensome reporting requirements on decentralized finance (DeFi) participants.
Sen. Cruz originally introduced this legislation in 2024 with the intention of halting the Biden administration’s efforts to issue a central bank digital currency.
Sen. Cruz previously introduced legislation in 2022 and 2023 to prohibit the Federal Reserve from developing a direct-to-consumer central bank digital currency, which could be used as a financial surveillance tool by the federal government.
Sen. Cruz authored the Adopting Cryptocurrency in Congress as an Exchange of Payment for Transactions Resolution, also known as the ACCEPT Resolution.
Sen. Cruz introduced an amendment to repeal a provision from the 2021 infrastructure package that created new reporting requirements for many cryptocurrency and blockchain companies in both the 117th and 118th Congresses.

MIL OSI USA News –

March 27, 2025
MIL-OSI USA: Burns library tax event will assist eligible taxpayers who may be able to claim thousands in valuable federal and state income tax credits
Source: US State of Oregon

ow-income Harney County taxpayers eligible to claim valuable federal and state tax credits can get assistance filing their tax returns when Oregon Department of Revenue volunteers visit Burns April 2.

Help using the combination of IRS Direct File and Direct File Oregon to file electronically for free will be available at the Harney County Library, located at 80 West D Street in Burns, 10 a.m. to 6 p.m., April 2.

According to IRS and state statistics, the federal Earned Income Tax Credit and the Oregon Earned Income Credit were claimed on more than 17 percent of returns in Harney County for tax year 2022. It’s likely, however, that more area families could claim the credits. The IRS estimates that, overall, 25 percent of Oregon taxpayers eligible don’t claim the credits.

The Department of Revenue believes that helping taxpayers file their own returns using direct file will help maximize the number of Oregonians who choose to use the new free option and make it possible for many who don’t have a filing requirement to file and claim significant federal and state tax credits for low-income families.

The Earned Income Tax Credit is a federal tax credit for people for making up to $66,819 in 2024. Families may be eligible for a maximum refundable credit of $7,830 on their federal tax return, and a maximum Oregon Earned Income Credit of $940 on their state tax return. Certain taxpayers without children may also be eligible for these credits.

Some taxpayers eligible for the Earned Income Tax Credit and the Oregon Earned Income Credit may also be able to claim the Oregon Kids Credit, which could total as much as $5,000.

All three are refundable credits meaning that eligible taxpayers can receive the Earned Income Tax Credit, the Oregon EIC, and Oregon Kids Credit, even if they are not otherwise required to file. To receive the refundable credits, however, they must file a federal and state tax return.

The IRS estimates that 1,000, or one out of every seven people in Harney County are eligible to use IRS Direct File and Direct File Oregon. Filing with both IRS Direct File and Direct File Oregon is free and available as a combination for filing both federal and state taxes for the first time this year.

Before arriving at the library, taxpayers should:

Videos are also available to show how to use IRS Direct File and Direct File Oregon and taxpayers can find more information on the department’s Free Direct File assistance at local libraries webpage.

Taxpayers should bring the following information with them to the library.

Identification documents
- Social security card or ITIN for everyone on your tax return
- Government picture ID for taxpayer and spouse if filing jointly (such as driver’s license or passport)
Common income and tax documents
- Forms W2 (wages from a job)
- Forms 1099 (other kinds of income)
- Forms SSA-1099 (Social security benefits)
Optional documents
- Canceled check or bank routing and account numbers for direct deposit
- Last year’s tax return
IRS Direct File does not support all return types. Specifically, taxpayers with dividends reported on Form 1099-DIV and capital gains or losses are not eligible to use IRS Direct File.

Taxpayers who aren’t eligible to use IRS Direct File can find other free options and free assistances sites on the agency’s website. Those who can’t use IRS Direct File to file their federal return can still use Direct File Oregon to file their state return.

MIL OSI USA News –
March 27, 2025
MIL-OSI: PIMCO Names Janet Yellen and Raghuram Rajan to its Global Advisory Board (GAB); Gordon Brown Becomes Chair
Source: GlobeNewswire (MIL-OSI)
- Janet Yellen served as Treasury Secretary in the Biden Administration and Chair of the Federal Reserve from 2014 to 2018
- Raghuram Rajan served as the Governor of the Reserve Bank of India and as Chief Economist at the International Monetary Fund
- Gordon Brown, former UK Prime Minister, becomes Chair of the GAB
- Ben Bernanke, former Chair of the Federal Reserve, retiring from role as Chair of PIMCO’s GAB after 10 years service
- Mark Carney, Canadian Prime Minister, also recently stepped down from GAB
NEWPORT BEACH, Calif., March 26, 2025 (GLOBE NEWSWIRE) — PIMCO, one of the world’s premier fixed income investment managers, announces the addition of Janet Yellen, former U.S. Secretary of the Treasury and Chair of the Federal Reserve, and Raghuram Rajan, former Governor of the Reserve Bank of India and Chief Economist at the International Monetary Fund, to its Global Advisory Board. The Board provides PIMCO with insights on global economic, political, and strategic developments and their relevance for financial markets.

In addition, Gordon Brown, former UK Prime Minister (2007-2010) and Chancellor of the Exchequer (1997-2007), becomes Chair of the Board. Mr. Brown, who has been a member of PIMCO’s GAB since its founding in 2015, replaces Ben Bernanke, who is retiring after serving 10 years as Chair of the GAB. Mark Carney, Prime Minister of Canada, previously announced his resignation from PIMCO’s GAB in January, when he announced his candidacy for political office. He had served on the Board since 2020.

Before serving as the 78^th U.S. Secretary of the Treasury from 2021-2025, Secretary Yellen was Chair of the Board of Governors of the Federal Reserve from 2014 to 2018 and Vice Chair 2010 to 2014. Secretary Yellen has also held positions at Harvard University, the London School of Economics, and the University of California, Berkeley, where she is now professor emeritus. Her extensive contributions to economic policy and research have established her as a leading figure in the field.

Dr. Raghuram Rajan’s career is distinguished by his influential roles in global economic institutions. He was the 23rd Governor of the Reserve Bank of India from 2013 to 2016 – where he implemented key reforms to stabilize the Indian economy – and was Chief Economist and Director of Research at the International Monetary Fund from 2003 to 2006. He is also a Professor of Finance at the University of Chicago Booth School of Business.

“Secretary Yellen and Dr. Rajan’s deep expertise in economic policy make them remarkable additions to our Global Advisory Board,” said Emmanuel Roman, PIMCO’s Chief Executive Officer. “Their insights will be crucial for us as we continue to navigate the complexities of the global economy and assess their potential impact on markets for our clients.”

“Understanding the complexities and impact of central bank policymaking, international governance and economic conditions on fast-moving markets are critical components of our investment strategy. Secretary Yellen and Dr. Rajan’s invaluable insights and experience, and Prime Minister Brown’s leadership as chair, will provide PIMCO clients with deep expertise and knowledge in assessing investment risk and opportunity,” said Dan Ivascyn, PIMCO’s Group Chief Investment Officer.

“We also want to thank Chair Ben Bernanke and Prime Minister Carney for their leadership and valued perspectives over many years on the Global Advisory Board during their constant presence at our investment forums and in guidance to our Investment Committee. We will miss their thoughtful insights and wish them well,” said Mr. Roman.

The Global Advisory Board consists of a diverse group of experts who provide strategic insights into global economic, political, and strategic developments. Secretary Yellen and Dr. Rajan will join Gordon Brown, Joshua Bolten, former White House Chief of Staff, and Michele Flournoy, U.S. defense policy advisor in two U.S. presidential administrations.

Janet Yellen
Janet L. Yellen served as 78^th Secretary of the Treasury from 2021 through 2025. Previously, she was a Distinguished Fellow in Residence at the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution. She also served as Chairman of the Board of Governors of the Federal Reserve System from 2014 through February 2018, Vice Chair of the Board of Governors from 2010 to 2014 and president and chief executive officer of the Federal Reserve Bank of San Francisco from 2004 to 2010. Dr. Yellen previously served as a member of the Board of Governors of the Federal Reserve System from August 1994 through February 1997, whereupon she was appointed by President Bill Clinton to serve as chair of the Council of Economic Advisers, a post she held until August 1999. Dr. Yellen has written on a wide variety of macroeconomic issues, specializing in the causes, mechanisms, and implications of unemployment. She began her career as an assistant professor at Harvard University and then served as an economist with the Federal Reserve’s Board of Governors before joining the faculty of the London School of Economics in 1978. In 1980 she joined the faculty of the University of California at Berkeley, where she was named the Eugene E. and Catherine M. Trefethen Professor of Business and Professor of Economics, and where she is currently a professor emeritus. Dr. Yellen graduated from Brown University in 1967 and received her PhD in economics from Yale University in 1971. She received the Wilbur Cross Medal from Yale in 1997, honorary degrees from Brown, Bard College, NYU, the London School of Economics and Political Science, the University of Warwick, Yale, the University of Michigan and the University of Pennsylvania. She is a member of the Council on Foreign Relations and the American Academy of Arts and Sciences and has served as President of the American Economic Association and the Western Economic Association and a fellow of the Yale Corporation. She is a Distinguished Fellow of the American Economic Association.

Raghuram Rajan

Raghuram Rajan is the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth. He was the 23rd Governor of the Reserve Bank of India between September 2013 and September 2016. Between 2003 and 2006, Dr. Rajan was the Chief Economist and Director of Research at the International Monetary Fund. Dr. Rajan’s research interests are in banking, corporate finance, and economic development. The books he has written include Breaking the Mold: Reimagining India’s Economic Future with Rohit Lamba, The Third Pillar: How the State and Markets hold the Community Behind 2019 which was a finalist for the Financial Times Business Book of the Year prize and Fault Lines: How Hidden Fractures Still Threaten the World Economy, for which he was awarded the Financial Times prize for Business Book of the Year in 2010. Dr. Rajan is a member of the Group of Thirty. He was the President of the American Finance Association in 2011 and is a member of the American Academy of Arts and Sciences. In January 2003, the American Finance Association awarded Dr. Rajan the inaugural Fischer Black Prize for the best finance researcher under the age of 40. The other awards he has received include the Infosys prize for the Economic Sciences in 2012, the Deutsche Bank Prize for Financial Economics in 2013, Euromoney Central Banker Governor of the Year 2014, and Banker Magazine (FT Group) Central Bank Governor of the Year 2016. Dr. Rajan is the Chairman of the Per Jacobsson Foundation, the senior economic advisor to BDT Capital, and a managing director at Andersen Tax.

About PIMCO
PIMCO is a global leader in active fixed income with deep expertise across public and private markets. We invest our clients’ capital across a range of fixed income and credit opportunities, drawing upon our decades of experience navigating complex debt markets. Our flexible capital base and deep relationships with issuers have helped us become one of the world’s largest providers of traditional and nontraditional solutions for companies that need financing and investors who seek strong risk-adjusted returns.

Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO’s sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

Contact:
Michael Reid
PIMCO – Media Relations
Ph. 212-597-1301
Email: Michael.Reid@pimco.com

The MIL Network –
March 27, 2025
MIL-OSI USA: Legislation considered under suspension of the Rules of the House of Representatives during the week of March 31, 2025
Source: US Congressional Budget Office

The Majority Leader of the House of Representatives announces bills that will be considered under suspension of the rules in that chamber. Under suspension, floor debate is limited, all floor amendments are prohibited, points of order against the bill are waived, and final passage requires a two-thirds majority vote.

At the request of the Majority Leader and the House Committee on the Budget, CBO estimates the effects of those bills on direct spending and revenues. CBO has limited time to review the legislation before consideration. Although it is possible in most cases to determine whether the legislation would affect direct spending or revenues, time may be insufficient to estimate the magnitude of those effects. If CBO has prepared estimates for similar or identical legislation, a more detailed assessment of budgetary effects, including effects on spending subject to appropriation, may be included.

CBO’s estimates of the bills that have been posted for possible consideration under suspension of the rules during the week of March 31, 2025, include:
- H.R. 517, Filing Relief for Natural Disasters Act, as amended
- H.R. 997, National Taxpayer Advocate Enhancement Act of 2025, as amended
- H.R. 998, Internal Revenue Service Math and Taxpayer Help Act, as amended
- H.R. 1152, Electronic Filing and Payment Fairness Act, as amended
- H.R. 1155, Recovery of Stolen Checks Act, as amended
- H.R. 1234, To direct the Librarian of Congress to promote the more cost-effective, efficient, and expanded availability of the Annotated Constitution and pocket-part supplements by replacing the hardbound versions with digital versions
- H.R. 1491, Disaster Related Extension of Deadlines Act, as amended
- H.R. 1550, Strengthening America’s Turning Point Act
MIL OSI USA News –
March 27, 2025
MIL-OSI Security: Former Controller of Shelton, Washington outdoor equipment manufacturer sentenced to 12 months and one day in prison for wire fraud

Source: Office of United States Attorneys

Seattle – The former Controller of a Shelton, Washington, outdoor equipment company was sentenced today to 12 months and one day in prison and three years of supervised release for his embezzlement scheme that stole more than $665,000 from the company, announced Acting U.S. Attorney Teal Luthy Miller. Jesse Arden Sherman, 63, of Elma, Washington illegally diverted company funds to his own accounts between 2012 and 2018. In addition, Sherman failed to pay taxes on his ill-gotten gain, resulting in a tax debt of $202,196. At the sentencing hearing U.S. District Judge Tiffany M. Cartwright emphasized the economic and non-economic losses experienced by the victim company and its employees.

According to records filed in the case, Sherman began working for Sims Vibration Laboratory Inc. in 2008. In his role as controller, he had complete access and control of the company accounting systems and banking functions. In 2012, he began abusing the trust the company had placed in him, by using a variety of schemes to steal from the company. Sherman made false representations to the company’s owner and President, he created false business records, and he created payroll checks and other checks that he deposited in his own accounts. In some instances, he noted in the company books that the check was “void” even though he had cashed it.

Sherman’s fraud resulted in a loss to the company of at least $665,840. As a Certified Public Accountant Sherman knew that he owed taxes on the money he obtained by fraud, but he failed to pay the $202,196 he owed on his taxes between 2013 and 2018.

In asking the court for an 18-month prison sentence, prosecutors noted that Sherman betrayed his employer’s trust month after month with each fraudulent check or entry in the company books. “Despite personal and professional privileges, Sherman elected to create a multi-faceted fraud scheme, which he deployed repeatedly over the years to unjustly enrich himself. Although he claims his gambling drove his behaviors, Sherman had the means and self-recognition to address this issue and instead of doing so he instead re-committed to his scheme over and over again to the detriment of SVL, SVL employees, SVL business partners, and Sherman’s family.”

Sherman has agreed to make restitution to the company of $665,840 and to the IRS of $202,196.

The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), the FBI and the Mason County Sheriff’s Office.

The case was prosecuted by Assistant United States Attorney Brian Wynne.

MIL Security OSI –

March 27, 2025

MIL-OSI: Sidetrade Annual Results for 2024: Operating Margin exceeds 15% of Revenue and Net Profit up 40%

Source: GlobeNewswire (MIL-OSI)

New record in year-over-year bookings (+13% in ACV)

Strong revenue growth: up 26% with SaaS subscriptions up 22%

Operating margin ⁽³⁾exceeds 15% of revenue (+45%)

Surge in net profit to €7.9 million, up 40%

Operating cash flow strongly supporting the acquisition of SHS Viveon

Recognized ESG commitment: Platinum by EthiFinance and Silver by EcoVadis

Sidetrade, the global leader in AI-powered Order-to-Cash applications, today announces a 26% increase in revenue for 2024, with a surge in operating margin ⁽³⁾of €8.4 million (+45%) and in net profit of €7.9 million (+40%).

Sidetrade (€m)	2024	2023	Change

Revenue	55.0 ⁽¹⁾	43.7	+26%
SaaS subscriptions	45.5 ⁽²⁾	36.6	+22%

Gross margin	43.1	35.3	+22%

Operating expenses (OPEX)	(34.6)	(29.4)	+18%

Operating margin ⁽³⁾	8.4	5.8	+45%
as a % of revenue	15%	13%
Net profit	7.9	5.6	+40%

2024 information is from consolidated, unaudited data.
(1) includes €4.4m in SHS Viveon revenue
(2) includes €3.0m in SHS Viveon recurring revenue
(3) Operating margin corresponds to operating profit based on 2024 accounting standards in France, including the French Research Tax Credit.

Olivier Novasque, CEO of Sidetrade commented:

“2024 once again illustrates the strength of Sidetrade’s business model, combining growth with profitability. Our 26% revenue increase was driven by a major breakthrough in the North American market, a leading-edge AI offering embraced by large enterprises, and the acquisition of SHS Viveon in Germany, which has further solidified our leadership in Order-to-Cash solutions across Europe. For the first time in our history, we have surpassed €8 million in operating profit, a significant 45% increase, highlighting the effectiveness and balance of our expansion strategy. But the real story goes beyond this impressive performance. We are witnessing an accelerated revolution in how businesses leverage artificial intelligence, marked by the emergence of specialized AI agents. Unlike traditional automation models that rely on rigid rule-based programming and constant human oversight, AI agents bring a new level of autonomous decision-making and real time operational optimization. These are no longer mere automation tools; they are intelligent entities capable of anticipating needs and acting independently within a company’s IT infrastructure, with minimal human intervention. Where traditional software simply organizes workflows using pre-defined rules, an AI agent trains, learns, adapts, and executes complex processes on its own. And this agentic revolution is only just beginning! At Sidetrade, Aimie represents the next generation of AI, evolving into an agentic AI that will orchestrate a network of AI agents, each managing a specific link in the Order-to-Cash cycle: risk, disputes, collections, cash application, and more. Aimie will direct, coordinate, and interconnect these high-specialized agents. Backed by the Sidetrade Data Lake, the most unique in the Order-to-Cash market and built on $7.2 trillion in B2B transactions spanning over 39.9 million businesses, Aimie is already powered by a one-of-a-kind training dataset in our field that will give its AI agents unmatched intelligence. Thanks to intensified R&D investments in 2024, we are set to launch our first next-gen AI agent in 2025, one that will redefine the boundaries of autonomy and capability. Companies that fail to embrace this paradigm shift will be rapidly outpaced by those that embed AI agents at the core of their operational excellence. With Aimie, Sidetrade is fully aligned with this AI agent revolution and is uniquely positioned to lead the race in its field.”

New record in year-over-year bookings (+13% in ACV)
Sidetrade maintained its growth trajectory in 2024 and set a new record with Annual Contract Value (ACV) reaching €12.73 million, up 13% compared to 2023. Annual Recurring Revenue (New ARR), increased by 6%, amounting to €6.53 million while Services bookings grew by 21%, totaling €6.2 million.

Bookings by new customers (“New Business”) accounted for 63% of total new bookings in 2024, while contract extensions (“Cross-sell”) and additional modules to existing customers (“Upsell”) contributed 18% and 19% of bookings, respectively.

Strong revenue growth in 2024: up 26% with SaaS subscriptions up 22%

In 2024, Sidetrade reported annual revenue of €55.0 million, marking a 26% increase compared to the previous year, and a 16% increase on a reported basis (excluding the acquisition of SHS Viveon finalized in June 2024). Several factors contributed to this strong performance:

Sustained organic growth: Overall revenue (excluding the acquisition of SHS Viveon) grew by 16%, while SaaS subscriptions increased by 15%. Meanwhile, Services showed impressive growth of 24%, driven by global implementation projects.
Strategic acquisition of SHS Viveon opening the DACH region: Since July 1, 2024, SHS Viveon has contributed €4.4 million to Sidetrade’s revenue, now accounting for 15% of total revenue in the second half of 2024.
Expanding international reach: The integration of SHS Viveon has increased the share of revenue generated outside of France to 65%. With 70% of its workforce now based internationally, Sidetrade demonstrates its ability to scale globally while maintaining strong local client relationships, key to building trust and driving operational efficiency.
Outstanding performance in North America: North America recorded the highest growth in 2024, with a 36% increase, bringing annual revenue to €16.6 million. This strategic market is central to Sidetrade’s ambitions.

Sidetrade continues to strengthen its position among multinationals, with a 44% increase in subscriptions from companies generating over €2.5 billion in revenue. These contracts now represent 50% of total subscriptions. More broadly, companies generating over €1 billion in revenue account for 79% of the portfolio, cementing Sidetrade’s status as a preferred partner for large enterprises.

Gross margin and operating margin: strongly accelerating performance

Strong growth in gross margin: +22% with an increase of €7.8 million

The sustained momentum in subscription growth continued to drive the expansion of the gross margin in 2024. On a like-for-like basis (excluding SHS Viveon), the gross margin rate for subscriptions remained particularly high at 92%, compared to 93% in 2023. SaaS subscriptions now represent 97% of the total gross margin.

Sidetrade’s overall gross margin rate on a like-for-like basis stood at 80%, versus 81% the previous year. Including the impact of SHS Viveon acquisition, the consolidated gross margin rate reached 78% of total revenue for the 2024 fiscal year.

In total, in 2024, Sidetrade delivered an incremental gross margin increase of €7.8 million compared to 2023, representing a +22% year-over-year growth.

Operating margin exceeding 15% of revenue (vs 13% in 2023)

Sidetrade’s operating margin showed a remarkable increase, reaching €8.4 million in 2024, up 45% from €5.8 million in 2023. This profitability is driven by sustained business growth, an excellent gross margin and disciplined cost management.

Thanks to this momentum, Sidetrade has continued its investment strategy, with an increase in expenditure of €5.2 million over 2023, and a particular focus on R&D (+€2.4 million), notably to accelerate the integration of generative AI into its core product offering.

The 2024 operating margin includes a French Research Tax Credit of €2.6 million (versus €2.4 million in 2023) as well as activation of €0.16 million in marginal R&D costs, i.e., 2% of R&D costs for the full year.

As a result, Sidetrade’s operating margin stands at 15% of revenue versus 13% in 2023, representing a 2-point gain year-over-year.

Surge in net profit to €7.9 million: up 40%

Sidetrade’s financial income, recorded as of December 31, 2024, stands at €0.7 million, up significantly from 2023 (€0.4 million). This performance is mostly due to interest earned on short-term investments during the year and the foreign exchange gains realized over the period.

Corporate income tax for 2024 is estimated at €1.1 million, versus €0.6 million in 2023.

All told, Sidetrade’s net profit for 2024 was €7.9 million, an increase of 40%, confirming the solid balance between growth and profitability.

Operating cash flow strongly supporting the acquisition of SHS Viveon

In 2024, Sidetrade generated a solid operating cash flow of €9.6 million, up €3.3 million (excluding the timing impact of the French Research Tax Credit refund). This level of cash generation enabled the Company to fully self-finance the acquisition of SHS Viveon, with a net cash outlay of €5.2 million (€6.6 million for the purchase of shares, offset by €1.4 million in available cash held by SHS Viveon).

As of December 31, 2024, Sidetrade reported €25.2 million in gross cash, up €1.3 million compared to year-end 2023.

In addition, Sidetrade held 85,437 of its own shares, valued at €19.1 million as of December 31, 2024.

Financial debt stood at €7.9 million, down €2.3 million year-over-year. Even after the SHS Viveon acquisition, Sidetrade retains substantial investment capacity, well-positioned to support its continued expansion strategy.

Recognized ESG commitment: Platinum by EthiFinance and Silver by EcoVadis

In 2024, Sidetrade accelerated its transition toward becoming a more responsible company and was awarded a Platinum medal from EthiFinance and a Silver medal from EcoVadis, with respective scores of 84/100 and 70/100. Now ranked among the top 15% of the most highly rated companies audited by EcoVadis, demonstrating its leadership in social responsibility.

These accolades confirm the relevance of Sidetrade’s strategy and its ability to anticipate the environmental and social challenges of tomorrow.

Sidetrade looks ahead to the fiscal year 2025 with confidence and a clear vision, and has the resources to fulfill its ambitions.

Next financial announcement
First Quarter Revenue for 2025: April 15, 2025, after the stock market closes.
Investor relations
Christelle Dhrif 00 33 6 10 46 72 00 cdhrif@sidetrade.com
Media relations @Sidetrade
Becca Parlby 00 44 7824 5055 84 bparlby@sidetrade.com

About Sidetrade (www.sidetrade.com)
Sidetrade (Euronext Growth: ALBFR.PA) provides a SaaS platform designed to revolutionize how cash flow is secured and accelerated. Leveraging its next-generation AI, nicknamed Aimie, Sidetrade analyzes $7.2 trillion worth of B2B payment transactions daily in its Cloud, thereby anticipating customer payment behavior and the attrition risk of 39.9 million buyers worldwide. Aimie recommends the best operational strategies, dematerializes and intelligently automates Order-to-Cash processes to enhance productivity, results and working capital across organizations.
Sidetrade has a global reach, with 400+ talented employees based in Europe, the United States and Canada, serving global businesses in more than 85 countries. Amongst them: Bidcorp, Biffa, Bunzl, Engie, Inmarsat, KPMG, Lafarge, Manpower, Page, Randstad, Saint-Gobain, Securitas, Tech Data, UGI, and Veolia.
Sidetrade is a participant of the United Nations Global Compact, adhering to its principles-based approach to responsible business.

For further information, visit us at www.sidetrade.com and follow @Sidetrade on LinkedIn.
In the event of any discrepancy between the French and English versions of this press release, only the French version is to be taken into account.

Attachment

Sidetrade Annual Results for 2024: Operating Margin exceeds 15% of Revenue and Net Profit up 40%

The MIL Network –

March 27, 2025

MIL-OSI: Quadient SA: FY 2024 results: Solid 1st year delivery of “Elevate to 2030” strategic plan, with Digital Solution achieving €267m in revenue and 61% EBITDA growth to €47m

Source: GlobeNewswire (MIL-OSI)

Quadient FY 2024 results:
Solid 1^st year delivery of “Elevate to 2030” strategic plan, with Digital Solution achieving €267m in revenue and 61% EBITDA growth to €47m

Key highlights

FY 2024 financial targets achieved
Two operating profitability milestones reached:
Digital EBITDA margin at 17.5%, up 5.7pts yoy, reflecting strong profitability improvement
All three solutions are EBITDA positive
Consolidated sales of €1,093 million, up +2.8% on a reported basis, including the contribution of the latest acquisitions
FY 2024 subscription-related revenue up +10.2% in Digital and up +11.5% in Lockers
FY 2024 subscription-related revenue of €777m, representing 71% of total revenue, up +€30m yoy,
vs. +€90m 2026 target
FY 2024 Group current EBIT of €146 million, up +2.2% organically
Proposed dividend of €0.70 per share, up by €0.05 for the fourth consecutive year
FY 2025 outlook: acceleration both in organic revenue growth and in current EBIT organic growth vs. 2024

Paris, 26 March 2025

Quadient S.A. (Euronext Paris: QDT), an Intelligent automation platform powering secure and sustainable business connections, today announces its 2024 fourth-quarter consolidated sales and full-year results (period ended on 31 January 2025). The full year 2024 results were approved by the Board of Directors during a meeting held on 25 March 2025.

Geoffrey Godet, Chief Executive Officer of Quadient S.A., stated: “We have delivered a solid first year of our Elevate to 2030 strategic plan.

Our Digital Automation platform has reached the record level of c.€270 million in revenue thanks to both the addition of 2,600+ new customers and the contribution from the increased usage and upsell from our existing 16,500 customer base. This strong revenue increase has been delivered together with a significant improvement in profitability with EBITDA rising by 61% to reach €47 million. We are now in a good position to exceed the 20% EBITDA margin ambition set for 2026.

2024 also saw the highest level of Digital cross-sold deals into our Mail customer base while at the same time our Mail business continues to outpace competition. In Lockers, investments made over the past couple of years are paying off, contributing to a strong performance in H2 with double digit growth in revenue thanks to increased usage of the locker base across all regions. In addition, Lockers have reached EBITDA breakeven over the full year and profitability will further improve as we continue to increase the size of our network, grow its usage and take advantage of the recent addition of Package Concierge in the US residential sector.

At Company level, this solid performance translates into a €30 million increase in annual recurring revenue, well on track to deliver the €90 million increase targeted by 2026. Based on this solid start to the strategic plan, we are confident in our ability to continue building a €1bn recurring revenue platform by 2030, generating €250 million current EBIT. Therefore, we are proposing to increase our dividend for the fourth consecutive year in a row, to €0.70.

While macro uncertainties have recently been growing, we are expecting an acceleration of organic growth in revenue and current EBIT in 2025 against 2024 levels.”

Comments on FY 2024 performance

Group sales came in at €1,093 million in FY 2024, a +2.8% increase on a reported basis, and +0.4% organic growth compared to FY 2023, in line with Quadient’s expectations. The reported growth includes a positive currency impact of €2 million and a positive scope effect of €24 million, which is related to the acquisitions of Daylight (September 2023), Frama (February 2024) and Package Concierge (December 2024).

In the fourth quarter of 2024, reported revenue growth stood at +4.1% and organic revenue growth was broadly flat, at -0.2%, compared to Q4 2023.

Subscription-related revenue reached €777 million in FY 2024, growing +1.6% organically, and representing 71% of total sales. This represents a €30 million increase year-on-year (compared to the +€90 million target by 2026), progressing toward the €1 billion subscription-related revenue target by 2030. Performance in the fourth quarter of 2024 was steady, up 2.1% organically against Q4 2023, driven by a double-digit organic increase in Digital and in Lockers. Non-recurring revenue declined by 2.4% organically in FY 2024, including a 5.1% decline in Q4 2024, essentially due to a high comparison basis in Mail hardware sales.

By geography, North America (58% of revenue) continued to outperform other regions with a +2.8% organic growth achieved in FY 2024.

Consolidated sales and EBITDA by Solution

FY 2024 consolidated sales

In € million	FY 2024	FY 2023	Change	Organic change
Digital	267	245	+9.1%	+7.7%
Mail	732	729	+0.4%	(2.5)%
Lockers	94	88	+5.7%	+4.3%
Group total	1,093	1,062	+2.8%	+0.4%

EBITDA and EBITDA margin

	FY 2024		FY 2023
In € million	EBITDA	EBITDA margin	EBITDA	EBITDA margin
Digital	47	17.5%	29	11.8%
Mail	200	27.4%	218	29.9%
Lockers	1	0.6%	(3)	(3.0)%
Group total	247	22.6%	244	23.0%

Digital

In FY 2024, revenue from Digital reached €267 million, up 7.7% organically (+10.1% in Q4 2024 vs. Q4 2023) and up 9.1% on a reported basis (including the contribution from Daylight) compared to FY 2023.

This solid performance was driven by a strong 10.2% organic growth in subscription-related revenue in FY 2024 (+10.5% in Q4 2024 vs. Q4 2023), including a good contribution from North America and continued positive commercial trends across the platform with further solid cross-selling and up-selling. In FY 2024, subscription-related revenue was representing 82% of Digital total sales, a further increase compared to 80% in FY 2023.

At the end of FY 2024, annual recurring revenue (ARR), which is a forward-looking indicator of future subscription-related revenue, reached €232 million, up from €206 million at the end of FY 2023, representing a 12.7% organic growth.

EBITDA for Digital was €47 million in FY 2024, up +61% year-on-year. EBITDA margin was at 17.5%, a strong improvement of 5.7 points compared to FY 2023. In H2 2024, EBITDA margin further improved, reaching 19.1%, after 15.7% in H1 2024. This positive evolution in profitability reflects the combination of subscription-related revenue growth and platform maturity. The Digital solution is well on track to reach its target of EBITDA margin greater than 20% in 2026.

As part of its customer acquisition strategy, Digital continues to demonstrate strong commercial momentum. Over
2,600 new customers were added in FY 2024 thanks in particular to robust cross-selling with Mail, especially in North America. Digital experienced a dynamic fourth quarter, with several key deals secured in the US. Additionally, a new partnership was established with Avaloq to deliver Customer Communications Management capabilities to the financial services industry.

As part of the customer expansion process, the focus continues to be on further increasing up-selling, notably in financial automation process. Several platform innovations have been made, to bring added value to customers, including the ramp-up and extension of Repay for direct supplier invoice payments in the US and Canada, and new electronic invoice formats (UBL, CII, Factur-X) to align with upcoming European e-invoicing regulation.

In Quadient’s core geographies, the addressable demand for its Digital automation platform is set to grow from
c.€6 billion in 2023 to c.€9 billion in 2027, representing a +10% CAGR, creating substantial growth opportunities in both communication and financial automation.

To capture this growth, Quadient is strongly positioned, leveraging on:

a sound base of highly predictable business, with over 16,500 customers, 82% subscription-based revenue,
and a churn rate well below 5%,
a highly recognized platform in financial & communication automation, and 84.5% of Saas customers,
across three regions,
a fully scalable and modulable platform, for small to large customers, driving new client acquisition (+2,600 in FY 2024) and record cross-sell of Digital solutions into Quadient Mail customers and increased upsell opportunities among existing customers,
an efficient go-to-market organisation that driving a 34% year-on-year increase in bookings in Q4 2024 and +12.7% growth of ARR at the end of the year.

Mail

Mail revenue reached €732 million in FY 2024, down 2.5% on an organic basis (-4.6% in Q4 2024 vs. Q4 2023). The reported growth stood at +0.4%, including the contribution of Frama.

Hardware sales recorded a minor -1.7% organic decline in FY 2024, despite a 7.3% drop registered in Q4 2024, mainly reflecting a high comparison basis related to deals signed in H2 2023.

Subscription-related revenue (68% of Mail sales) recorded a 2.9% organic decline in FY 2024.

EBITDA for Mail was €200 million for FY 2024. EBITDA margin reached 27.4%, down 2.5 points compared to FY 2023. Mail EBITDA margin was impacted by the dilutive effect of Frama acquisition, including integration costs. Frama’s performance is due to improve significantly from 2025 onward, with positive current EBIT already reached in FY 2024 and payback of the acquisition expected in FY 2025.

Thanks to its strong focus on customer acquisition, Quadient’s Mail business continues to outperform the market. In Q4 2024, commercial performance remained resilient in North America, particularly in highly regulated industries where secure mail communications are key.

As part of the customer expansion focus, outlook remains strong driven by a high customer satisfaction rate of 95.7% and robust cross-selling performance, especially in the US where a record-breaking performance in placement of Digital solutions was recorded in Q4 2024. Mail business also benefited from the positive impact of the ongoing US mailing systems decertification, though this impact is expected to conclude in Q1 2025. Lastly, Quadient aims at upgrading Frama’s installed base and initiating some cross-selling to promote its Digital offer to Frama’s customers.

At the end of January 2025, already 42.4% of Quadient installed base has been upgraded with its newest technology.

Lockers

Lockers revenue reached €94 million in FY 2024, a +4.3% increase on an organic basis, with strong momentum in the latter part of the year (+8.0% in Q4 2024 vs. Q4 2023, after a strong Q3 2024, up +14.3% year-on-year) and a +5.7% increase on a reported basis compared to FY 2023, including a marginal contribution from Package Concierge.

Subscription-related revenue was up 11.5% organically in FY 2024 (+19.6% in Q4 2024 vs. Q4 2023), benefiting from:

the continued strong volumes ramp up in the British and the French open networks;
the sustained strong momentum in the US, driven by higher monetization of usage fees;
a resilient performance in Japan, despite an unfavorable e-commerce environment.

Overall, subscription-related revenue stood at 64% of total revenue in FY 2024, up from 61% in FY 2023.

Non-recurring revenue (license & hardware sales and professional services) were down 6.8% organically in FY 2024. Hardware sales were still impacted by slower new installations in North America.

Quadient’s global locker installed base reached c.25,700 units at the end of FY 2024, including c. 3,000 units from Package Concierge, vs. c.20,200 units at the end of FY 2023. This is reflecting an acceleration in the pace of installation of new lockers, notably in the UK, fueled by the partnerships signed by Quadient to host parcel lockers in new suitable locations.

EBITDA for Lockers was above breakeven, at €1 million in FY 2024. EBITDA margin stood at 0.6%, up by 3.6 points compared to FY 2023. This significant profitability improvement, illustrated by a 6.7% EBITDA margin in H2 2024, was driven by growing recurring revenue and increased usage. Additionally, the revised commercial agreement with Yamato for the Japanese installed base was implemented at the beginning of H2 2023.

As part of the customer acquisition focus, Quadient is accelerating the pace of installation for new lockers in its open networks in Europe, mostly in France and the UK, with installed base up 145% year-on-year. This is supported by the additional deals signed for premium locations (including Morrisons Daily Stores and ScotRail…). Additionally, the trend for new installations in North America has turned positive in Q4, where market share leadership position in Residences and Universities remains robust.

As part of the customer expansion strategy, volumes from both pick-up and drop-off in European open networks saw a significant increase, growing sevenfold between Q4 2023 and Q4 2024. The momentum in North America for the locker network, particularly across the multifamily sector and higher education campuses was strong in Q4 2024. In Japan, macroeconomic conditions have impacted parcel volumes, but new initiatives, such as the new partnership with Japan Post, are aimed at driving volume growth and increasing adoption.

REVIEW OF 2024 FULL-YEAR RESULTS

Simplified P&L

In € million	FY 2024	FY 2023	Change
Sales	1,093	1,062	+2.8%
Gross profit	818	788	+3.7%
Gross margin	74.8%	74.2%
EBITDA	247	244	+1.2%
EBITDA margin	22.6%	23.0%
Current EBIT	146	147	(0.5)%
Current EBIT margin	13.4%	13.8%
Optimization expenses and other operating income & expenses	(23)	(15)	+58.0%
EBIT	123	132	(7.0)%
Financial income/(expense)	(39)	(31)	+24.8%
Income before tax	84	101	(16.8)%
Share of results of associated companies	1	(0)	n/a
Income taxes	(17)	(17)	+2.8%
Net income of continued operations	68	84	(19.4)%
Net income from discontinued operations	(0)	(14)	(98.7)%
Net attributable income	66	69	(3.4)%
Earnings per share	1.94	2.02
Diluted earnings per share	1.94	2.01

Gross margin stood at 74.8% in FY 2024 slightly up compared to FY 2023, due to lower cost of sales.

EBITDA⁽¹⁾ for the Group reached €247 million in FY 2024, up €3 million compared to FY 2023. EBITDA grew by 3.0% organically, driven by strong growth of 80% in Digital and improved profitability in Lockers, which more than compensated for the softer EBITDA performance in Mail. The EBITDA margin reached 22.6% in FY 2024. It was almost stable compared to FY 2023: despite the impact of the change in revenue mix and the dilutive effect of Frama acquisition, the Group EBITDA margin was supported by significant profitability gains in Digital and Lockers.

Depreciation and amortization stood at €101 million in FY 2024, compared to €98 million in FY 2023. This slightly higher depreciation mainly reflects the increase in Lockers’ asset base.

Current operating income (current EBIT) reached €146 million in FY 2024 compared to €147 million in FY 2023, up 2.2% on an organic basis. Current EBIT margin stood at 13.4% of sales in FY 2024 compared to 13.8% in FY 2023.

Optimization costs and other operating expenses stood at €23 million in FY 2024, versus €15 million in FY 2023. This increase mainly relates to the write-off of an IT project, additional office optimization and Frama restructuring costs.

Consequently, EBIT reached €123 million in FY 2024, versus €132 million recorded in FY 2023.

Net attributable income

Net cost of debt was up from €29 million in FY 2023 to €39 million in FY 2024, impacted by higher interest rates. The currency gains & losses and other financial items was broadly flat in FY 2024, compared to a loss of €2 in FY 2023. Overall, net financial result was a loss of €39 million in FY 2024 compared to a loss of €31 million in FY 2023.

Income tax expense was stable year-on-year at €17 million.

Net income from discontinued operations of the Mail Italian subsidiary was null in FY 2024, compared to a €14 million loss in FY 2023. This loss included exceptional charges related to the sale process for this subsidiary, which was sold to a local mail distribution company in October 2024.

Net attributable income after minority interests amounted to €66 million in FY 2024 compared to €69 million in FY 2023.

Earnings per share⁽²⁾ stood at €1.94 in FY 2024 compared to €2.02 in FY 2023. The fully diluted earnings per share⁽²⁾ was €1.94 in FY 2024 compared to €2.01 in FY 2023.

Cash flow generation

The change in working capital was a net cash inflow of €9 million in FY 2024 compared to a net cash outflow of €6 million in FY 2023, mostly reflecting the positive impact from timing on prepaid expenses and customers deposits.

The leasing portfolio and other financing services stood at €623 million as of 31 January 2025, compared to €598 million as of 31 January 2024, up on an organic basis (i.e. excluding currency impact of €18 million) for the first time in several years thanks to good hardware placements in Mail. While generating future subscription-related revenue, this increase in lease receivables resulting from the good performance in the placement of new equipment translates into a cash outflow of
€7 million in FY 2024. At the end of FY 2024, the default rate of the leasing portfolio stood at around 1.1% compared to c.1.3% at the end of FY 2023.

Interest and taxes paid increased to €67 million in FY 2024 versus the amount of €55 million paid in FY 2023. The difference was mostly explained by higher interest rates in FY 2024.

Capital expenditure reached €108 million in FY 2024, up €7 million compared to FY 2023, mostly due to UK locker open network deployment. Capex for Digital reached €24 million in FY 2024, slightly up compared to €22 million in FY 2023 and was mainly focused on R&D and platform development. Capex for Mail remained at fairly high level of €51 million
(vs. €53 million in FY 2023), due to continued high placement of machines related to the US decertification, which is expected to end in Q1 2025. Capex for Lockers increased from €26 million to €33 million to support the ramp-up of the deployment of the open network in the UK. The sale of Frama real estate in Switzerland generated €6 million in cash inflows in FY 2024.

All in all, cash flow after capital expenditure (free cash flow) reached €66 million in FY 2024, compared to €64 million in FY 2023.

Leverage and liquidity position

Net debt stood at €741 million as of 31 January 2025, a slight increase against €709 million as of 31 January 2024. In FY 2024, Quadient successfully raised approximately €325 million in new facilities, including the following transactions in H2 2024:

in October 2024, the Company secured EBRD financing, including a €25 million Schuldschein;
in December 2024, the Company secured a USD 50 million bank loan;
in January 2025, Quadient further strengthened its financial position with the issuance of a USD 100 million USPP.

These new facilities enabled Quadient to repay post-closing its €260 million bond due in February 2025 and settle the repayment of Schuldschein loans for €29 million, also due in early 2025. As a result of these transactions, the Company’s average debt maturity has been extended to four years as of the end of February 2025, compared to three years at the end of FY 2023.

The leverage ratio (net debt/EBITDA) remained broadly stable at 3.0x⁽³⁾ as of 31 January 2025 compared to 2.9x⁽³⁾ as of 31 January 2024. Excluding leasing, Quadient leverage ratio remained stable at 1.7x⁽³⁾ as of 31 January 2025, despite the acquisitions of Frama and Package Concierge in 2024, as well as the implementation of a share buyback programs.

As of 31 January 2025, the Group had a strong liquidity position of €667 million, split between €367 million in cash and a €300 million undrawn credit line, maturing in 2029.

Shareholders’ equity stood at €1,113 million as of 31 January 2025 compared to €1,069 million as of 31 January 2024. The gearing ratio⁽⁴⁾ stood at 66.6% as of 31 January 2025.

SHAREHOLDER’ RETURN

Proposed dividend for FY 2024 stands at €0.70 per share, representing an 8% increase against FY 2023, and a payout ratio of 36.1% of net income, higher than Quadient’s minimum 20% pay-out ratio of net income as per the Group’s dividend policy. This represents a €0.05 year-on-year increase, for the fourth consecutive year. The dividend is subject to approval by the Annual General Meeting, scheduled for 13 June 2025, and will be paid in cash in one instalment on 6 August 2025.

In addition, Quadient’s announced in September 2024 the launch of a share buyback program for a total consideration of up to €30 million. To date, €10 million worth of shares have been repurchased, with the program set to be executed over an
18-month⁽⁵⁾ period. This operation demonstrates Quadient’s confidence in the value creation potential of its “Elevate to 2030” strategic plan, its ability to reach its FY 2026 leverage ratio target⁽⁶⁾ and is in line with the capital allocation policy of the Company, while improving shareholders’ return.

OUTLOOK

The evolving dynamics within Quadient’s business portfolio, characterized by strong growth in Digital and Lockers revenue alongside a moderate decline in Mail revenue, will naturally drive a year-on-year acceleration in the Company’s total revenue growth.

As Digital and Lockers continue to expand their share of Quadient’s revenue and profit, while simultaneously improving their profitability, this shift is expected to contribute to a higher growth in current EBIT

As a result, Quadient targets an acceleration in organic revenue growth and in current EBIT organic growth in 2025 compared to 2024.

Quadient also confirms its 3-year guidance for the 2024-2026 period of minimum 1.5% organic revenue CAGR and minimum 3% organic current EBIT CAGR.

Q4 2024 BUSINESS HIGHLIGHTS

Avaloq and Quadient Partner to Elevate Client Communications for Financial Services
On 3 December 2024, Quadient and Avaloq announced today their partnership to offer unrivaled customer communications management (CCM) capabilities for the financial services industry. Avaloq has selected Quadient Inspire as its standard CCM solution, seamlessly integrating it into the Avaloq platform.

Quadient Launches SimplyMail in Europe to Help Small Businesses Leverage Digital Solutions to Enhance Efficiency in Mail Operations
On 11 December 2024, Quadient announced the launch in Europe of SimplyMail, a solution designed to address the growing needs for smaller businesses to automate and optimize their mail operations with ease.

Quadient Named a Worldwide Automated Document Generation and CCM Leader by IDC
On 12 December 2024, Quadient announced it has been named a Leader in the IDC MarketScape: Worldwide Automated Document Generation and Customer Communication Management 2024 Vendor Assessment.

Quadient Recognized in Two IDC MarketScape Reports for Accounts Receivable Automation Applications
On 16 December 2024, announced it has been named a Leader in the IDC MarketScape: Worldwide Accounts Receivable Automation Applications for Small and Midmarket 2024 Vendor Assessment. Additionally, Quadient has been recognized for the first time as a Major Player in the IDC MarketScape: Worldwide Accounts Receivable Automation Applications for the Enterprise 2024 Vendor Assessment.

Quadient Surpasses 25,000 Global Locker Installations with US Package Concierge Acquisition, Setting Sights on Exceeding €100M of Locker Revenue in 2025
On 18 December 2024, Quadient announced the acquisition of US-based parcel management solutions provider Package Concierge®, exceeding the 25,000-unit mark in its global installed base. Package Concierge provides innovative digital locker technology that addresses the growing challenges of package management in residential, commercial, retail and university campuses across the United States.

Quadient strengthens its financial position with a USD50 million bank loan from Bank of America
On 20 December 2024, announced a USD50 million bank loan from Bank of America. This new credit facility, which comes with a 3-year maturity at a variable rate, strengthens Quadient’s financial position ahead of debt maturities due in 2025.

Report by Leading Analyst Firm Shows Quadient Recorded the Fastest Growth in 2023 Among CCM Market Leaders
On 10 January 2025, Quadient announced that a newly released report by market research and consulting firm IDC shows Quadient rapidly closing the gap on the top position. Quadient’s 13.7% year-on-year revenue growth in 2023 has accelerated from its 11% growth in 2022. This is also the fastest growth among the major Customer Communications Management (CCM) vendors globally, outperforming the overall market growth.

Quadient Secures New c.$1.6 Million Contract to Enhance US Government Agency’s Mail Automation Capacity
On 14 January 2025, Quadient announced that it has been selected by a US government agency to modernize its mail automation infrastructure in a contract valued at c.$1.6 million. This follows a previous announcement in October 2024, where Quadient was awarded a contract worth nearly $1 million for a similar modernization project with another federal agency.

Leading Human Resources Technology Company Selects Quadient for Accessibility Compliance in Customer Communications
On 16 January 2025, Quadient announced that a leading US provider of integrated benefits, payroll, and human resources cloud solutions has selected customer communications management (CCM) platform Quadient Inspire to ensure accessibility compliance for its US federal agency client.

Quadient Partners with ScotRail to Introduce Parcel Lockers at Stations Across Scotland
On 21 January 2025, Quadient announced a partnership with ScotRail to deploy Parcel Pending by Quadient automated lockers across Scotland’s rail network. ScotRail, Scotland’s national rail operator, is enhancing its passenger experience and operational efficiency with the installation of parcel lockers in its stations.

Quadient strengthens its financial position through a USD100 million US Private Placement from MetLife
On 22 January 2025, Quadient announced that it has signed a new USD100 million US Private Placement (USPP) with MetLife Investment Management (“MIM”), reinforcing its financial position. This new USPP of USD 100 million senior notes has a
7-year average maturity and comes with an additional shelf facility allowing the issue of senior notes for a maximum aggregate principal amount of USD50 million.

Quadient Teams Up with Buzz Bingo to Bring Convenient Parcel Lockers to Bingo Clubs Across the UK
On 28 January 2025, Quadient announced a partnership with Buzz Bingo to deploy Parcel Pending by Quadient automated lockers in 35 of its 81 bingo clubs across the UK, with plans for further installations in the future. This collaboration enhances parcel collection, delivery, and return convenience while improving the customer experience at Buzz Bingo locations.

Leading US Law Firm Chooses Quadient in a Deal Over $1M to Streamline Mailing, Shipping, and Accounting Processes
On 30 January 2025, Quadient announced a new contract with one of the largest injury law firms in the US, transitioning the firm from its long-standing provider to Quadient. Under the new agreement, worth over 1 million dollars, the firm is rolling out nearly 100 Quadient iX-Series mailing systems at offices across the country, all seamlessly integrated with Quadient’s cloud-based S.M.A.R.T. accounting and shipping software.

Quadient Reports Strong Year-End Locker Usage Growth in Multifamily and Higher Education Campuses in North America
On 31 January 2025, Quadient announced strong year-end momentum in the adoption and usage of its Parcel Pending by Quadient locker network across multifamily and higher education campuses in North America.

POST-CLOSING EVENTS

Morrisons Partners with Quadient for Convenient Parcel Delivery at its Morrisons Daily Stores
On 18 February 2025, Quadient announced a new partnership with Morrisons. The partnership will see Parcel Pending by Quadient parcel lockers installed at 230 Morrisons Daily stores by spring 2025.

Quadient Enables New Shipping Service with Japan Post on its Open Locker Network, Driving Convenience and Increased Parcel Volume
On 3 March 2025, Quadient announced an expanded partnership between Japan Post and Packcity Japan, a joint venture between Quadient and Yamato Transport. Thanks to the extended partnership, consumers will not only receive Japan Post deliveries at Packcity Japan’s nationwide open network of automated parcel lockers, but they will also now be able to ship parcels from the lockers, called PUDO stations. Consumers using Japan Post’s Yu-Pack parcel service use a mobile app to ship from a PUDO station, eliminating the need to wait at delivery counters or manually handling shipping slips.

Quadient Maintains Leader Position on Aspire Leaderboard for Customer Communications and Interaction Experience Software
On 13 March 2025, Quadient announced it has maintained its leadership position on the Aspire Leaderboard. Produced by independent advisory firm Aspire CCS, the Aspire Leaderboard highlights and compares vendors in the customer communications management (CCM) and customer experience management software space. It is updated in real-time as vendors release enhancements and adjust strategies.

To know more about Quadient’s news flow, previous press releases are available on our website at the following address: https://invest.quadient.com/en/newsroom.

CONFERENCE CALL & WEBCAST

Quadient will host a conference call and webcast today at 6:00 pm Paris time (5:00 pm London time).

To join the webcast, click on the following link: Webcast.

To join the conference call, please use one of the following phone numbers:

▪ France: +33 (0) 1 70 37 71 66.
▪ United States: +1 786 697 3501.
▪ United Kingdom (standard international): +44 (0) 33 0551 0200.

Password: Quadient

A replay of the webcast will also be available on Quadient’s Investor Relations website for 12 months.

Calendar

3 June 2025: Q1 2025 sales release (after close of trading on the Euronext Paris regulated market)
13 June 2025: Annual General Meeting

About Quadient®

Quadient is a global automation platform provider powering secure and sustainable business connections through digital and physical channels. Quadient supports businesses of all sizes in their digital transformation and growth journey, unlocking operational efficiency and creating meaningful customer experiences. Listed in compartment B of Euronext Paris (QDT) and part of the CAC® Mid & Small and EnterNext® Tech 40 indices, Quadient shares are eligible for PEA-PME investing.

For more information about Quadient, visit https://invest.quadient.com/en/.

Contacts

APPENDIX

Digital: New name for Intelligent Communication Automation

Mail: New name for Mail-Related Solutions

Lockers: New name for Parcel Locker Solutions

FY 2024 and Q4 2024 consolidated sales

FY 2024 consolidated sales by geography

In € million	2024	2023	Change	Organic change
North America	632	607	+4.0%	+2.8%
Main European countries^(a)	369	354	+4.5%	(2.0)%
International^(b)	92	101	(9.7)%	(5.4)%
Group total	1,093	1,062	+2.8%	+0.4%
Including Austria, Benelux, France, Germany, Ireland, Italy (excluding Mail), Switzerland, and the United Kingdom International includes the activities of Digital, Mail and Lockers outside of North America and the Main European countries

Q4 2024 consolidated sales by Solution

In € million	Q4 2024	Q4 2023	Change	Organic change
Digital	73	65	+11.5%	+10.1%
Mail	196	196	(0.3)%	(4.6)%
Lockers	27	22	+20.2%	+8.0%
Group total	295	284	+4.1%	(0.2)%

Q4 2024 consolidated sales by geography

In € million	Q4 2024	Q4 2023	Change	Organic change
North America	171	160	+7.0%	+2.5%
Main European countries^(a)	100	97	+3.3%	(2.9)%
International^(b)	24	27	(10.7)%	(6.9)%
Group total	295	284	+4.1%	(0.2)%
Including Austria, Benelux, France, Germany, Ireland, Italy (excluding Mail), Switzerland, and the United Kingdom International includes the activities of Digital, Mail and Lockers outside of North America and the Main European countries

Financial statements – Full-year 2024

Consolidated income statement

In € million	FY 2024 (period ended on 31 January 2025)	FY 2023 (period ended on 31 January 2024)
Sales	1,093	1,062
Cost of sales	(275)	(274)
Gross margin	818	788
R&D expenses	(63)	(63)
Sales and marketing expenses	(287)	(275)
Administrative and general expenses	(187)	(176)
Service and support expenses	(116)	(109)
Employee profit-sharing, share-based payments and other expenses	(10)	(7)
M&A and strategic projects expenses	(8)	(11)
Current operating income	146	147
Optimization expenses and other operating income & expenses	(23)	(15)
Operating income	123	132
Financial income/(expense)	(39)	(31)
Income before taxes	84	101
Income taxes	(17)	(17)
Share of results of associated companies	1	(0)
Net income from continued operations	68	84
Net income of discontinued operations	(0)	(14)
Net income	67	70
Of which: Minority interests	1	1
Net attributable income	66	69

Simplified consolidated balance sheet

Assets In € million	FY 2024 (period ended on 31 January 2025)	FY 2023 (period ended on 31 January 2024)
Goodwill	1,131	1,082
Intangible fixed assets	119	121
Tangible fixed assets	170	156
Other non-current financial assets	65	65
Other non-current receivables	2	2
Leasing receivables	623	598
Deferred tax assets	38	17
Inventories	75	67
Receivables	240	228
Other current assets	79	84
Cash and cash equivalents	367	118
Current financial instruments	1	2
Assets held for sale	0	9
TOTAL ASSETS	2,910	2,550

Liabilities In € million	FY 2024 (period ended on 31 January 2025)	FY 2023 (period ended on 31 January 2024)
Shareholders’ equity	1,113	1,069
Non-current provisions	12	12
Non-current financial debt	722	715
Current financial debt	347	66
Lease obligations	38	46
Other non-current liabilities	3	2
Deferred tax liabilities	101	104
Financial instruments	5	5
Trade payables	104	79
Deferred income	223	212
Other current liabilities	242	225
Liabilities held for sale	0	15
TOTAL LIABILITIES	2,910	2,550

Simplified cash flow statement

In €millions	FY 2024 (period ended on 31 January 2025)	FY 2023 (period ended on 31 January 2024)
EBITDA	247	244
Other elements	(15)	(19)
Cash flow before net cost of debt and income tax	233	225
Change in the working capital requirement	9	(6)
Net change in leasing receivables	(7)	(0)
Cash flow from operating activities	235	219
Interest and tax paid	(67)	(55)
Net cash flow from operating activities	168	165
Capital expenditure	(108)	(101)
Disposal of assets	6	0
Net cash flow after investing activities	66	64
Impact of changes in scope	(37)	(5)
Net cash flow after acquisitions and divestments	29	59
Dividends paid	(22)	(21)
Change in debt and others	219	(39)
Net cash flow after financing activities	226	(1)
Cumulative translation adjustments on cash	(6)	(2)
Net cash from discontinued operations	(1)	(9)
Change in net cash position	219	(11)

^([1]) EBITDA = current operating income + provisions for depreciation of tangible and intangible fixed assets.
^([2]) For the FY 2024, the average compounded number of shares is 34,114,060. Diluted number of shares is 34,486,288.
([3]) Including IFRS 16
([4]) Net debt / shareholder’s equity
([5]) Subject to the renewal of the share buyback authorizations at the 2025 AGM
([6]) FY 2026 leverage ratio excluding leasing target of 1.5x

Attachment

The MIL Network –

March 27, 2025

MIL-OSI Security: Muncie Drug Trafficking Ring Dismantled, Six Sentenced to a Combined 87 Years in Federal Prison

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

INDIANAPOLIS— Five defendants have been sentenced to a total of 70 years in federal prison for their roles in a large methamphetamine, cocaine, and fentanyl trafficking conspiracy. The sentences were imposed by U.S. District Judge Richard L. Young. The defendants plead guilty and were sentenced as follows:

Defendant	Charge(s)	Sentence
Jamarr Hill, 30, Muncie	Conspiracy to possess with intent to distribute controlled substances, money laundering, and conspiracy to make a false statement in connection with purchasing a firearm	17 years’ imprisonment, 5 years supervised release.
Terry Hill, 49, Muncie	Conspiracy to possess with intent to distribute 500 grams or more of cocaine	5 years’ imprisonment, time served, 5 years’ supervised release.
Lance McGee, 32, Muncie	Conspiracy to possess with intent to distribute controlled substances	15 years’ imprisonment, 5 years supervised release.
Nakevius Shannon, 33, Muncie	Making a false statement in connection with purchasing a firearm	3 years’ probation

According to court documents, between May and November of 2022, Jamarr Hill, Lance McGee, Terry Hill, and others conspired together to distribute controlled substances including cocaine, methamphetamine, and fentanyl.

Jamarr Hill acted as the ringleader for the conspiracy, obtaining large quantities of drugs from Rodolfo Silva in San Diego, California for redistribution in Muncie. Terry Hill and Lance McGee served as distributors, dealing the drugs into communities in Muncie and elsewhere in central Indiana.

On November 12, 2022, Nakevius Shannon purchased two firearms from Rural King, a federally licensed firearms dealer, completing an ATF Form 4473 in connection with the purchase. At the time Shannon completed the Form 4473, he falsely stated on the form that he was the intended transferee/buyer of handguns, when in fact, he purchased the firearms for Jamar Hill in order to further Hill’s drug trafficking conspiracy.

In total, the defendants obtained and distributed no less than 2,004 grams of fentanyl, 10 kilograms of cocaine, and 203 pounds of methamphetamine.

As part of the investigation, two other defendants were charged and have been sentenced. Joseph Haskins, of Muncie, Indiana, was charged in August 2021 with possession with intent to distribute 50 grams or more of methamphetamine. After a two-day trial in December 2023, Haskins was sentenced as a career offender to 33 years’ imprisonment and 5 years of supervised release. Rodolfo Silva was charged in 2024 in the Southern District of California with conspiracy to distribute controlled substances. Silva plead guilty and was sentenced to 17 years’ and 6 months’ imprisonment.

“Drug traffickers like these defendants, responsible for pushing poison from across the country into our neighborhoods, must be held accountable for the suffering they cause in search of quick profits,” said John E. Childress, Acting United States Attorney for the Southern District of Indiana. This case is an outstanding example of the impact we can have with the help of our state and local law enforcement partners. I commend the efforts of the FBI, and the Muncie and Anderson Police Departments to make our communities safer by getting drugs and drug dealers off our streets.”

“This is a significant victory in the ongoing efforts to target and dismantle drug trafficking organizations that send a flow of illegal drugs into our communities and threaten public safety,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI will continue to work with our law enforcement partners to ensure every available resource is used to disrupt these criminal enterprises and hold those responsible accountable.”

The FBI, IRS, Muncie Police Department, Anderson Police Department, and Fishers Police Department investigated this case.

Acting U.S. Attorney Childress thanked Assistant U.S. Attorneys Lindsay Karwoski and Barry Glickman, who prosecuted this case.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

###

MIL Security OSI –

March 27, 2025

MIL-OSI United Kingdom: £8million funding secured towards new Heath Town heat network

Source: City of Wolverhampton

The Department for Energy Security and Net Zero (DSNEZ) has announced the funding as part of its Heat Network Efficiency Scheme.

It will contribute towards the critical £19.5million works, with the remainder coming from the council’s Housing Revenue Account Capital Programme.

All of the properties on the Heath Town estate are supplied with heat via the outdated district heating network that was first installed around 55 years ago and has undergone minor upgrades since.

The existing boiler house was designed to use coal and is no longer fit for purpose and the boiler house pre-cast reinforced concrete panelling has now reached the end of its life and is starting to fail.

The new system will improve efficiency through reduced primary energy consumption, network return temperature and pumping energy costs, following upgrades to the network’s control systems, replacement of pumps and pipework, and the installation of new heat interface units (HIUs) for residents.

Works on the new heat network are expected to start next month (April) and last for 2 years.

The council’s Deputy Leader and Cabinet Member for City Housing, Councillor Steve Evans, said: “The council’s transformative regeneration of Heath Town has seen extensive demolition of vacant buildings followed by 40 new council homes – the first developed on the estate since the 1960s.

“This is just the first phase of a total of more than 150 new council homes to be built on the estate over the coming years – and is in addition to existing residential blocks undergoing major improvements by Wolverhampton Homes. All new homes will be connected to the district heating system.

“It is important the right infrastructure is in place to support this rejuvenated neighbourhood and this funding from government will enable us to put in place a heat network that is fit for purpose and ultimately reduces energy costs for residents.”

MIL OSI United Kingdom –

March 27, 2025
MIL-OSI United Kingdom: Media Release – Pre-season update for Harbour Users Wednesday 26 March 2025

Source: Channel Islands – States of Alderney

Media Release

Date: 26^th March 2025

Pre-season update for Harbour Users

Spring is fast approaching and therefore it is time to update Harbour users with some useful dates and information regarding the introduction of seasonal infrastructure and Harbour services.

Pontoons

The inner sections of the Harbour Pontoon facility are scheduled for installation on Friday the 11^th of April, this will include the passenger landing pontoon and access bridge. The remaining sections will be introduced according to demand.

Water taxi

The Water taxi service will also commence operations on Friday the 11^th of April to coincide with the pontoon’s installation. Following a successful trial in 2024, the operating hours will continue be restricted to a weekend only service during the spring months.

Taxi Hours (Times in BST)

·       Weekends and Bank Holidays: 0800-0000

·       Monday-Thursday (April & May): No taxi available

·       Weekdays: June – August: 0800-0000

Taxi Mobile telephone: 07781 121 046 VHF Ch 73

Mooring maintenance

The servicing of all outer Harbour Moorings is due to commence on the 2nd of April. The diving and servicing work takes approximately 14 days to complete, during this time crane activity will be restricted to general cargo working and essential lifts to ensure that the project does not suffer unnecessary delays.

Any mooring holders who have not already recovered ropes and tackle from their allocated mooring buoy may contact the Harbour Office to arrange collection or make an enquiry.

Please note that the availability of some services and facilities may vary when weather conditions exceed safe working limits.

Harbour Office

The Harbour Office will be staffed at weekends and Bank Holidays from Friday the 18^th of April between the hours of0800 and 1700. During these times vessel safety traffic and passage reporting can be directed to Alderney Port Control on VHF Channel 74.

Maritime Emergencies can be reported to Alderney Coastguard on VHF Channel 16 or by dialling 999.

Please contact the Harbour Office on 01481 820070 or email harbour@alderney.gov.gg for enquiries or to report an issue or incident to the Duty Harbour Officer.

ENDS

MIL OSI United Kingdom –

March 27, 2025
MIL-OSI Banking: Sanjay Malhotra: Address – Private Sector Collaborative Forum of the Financial Action Task Force

Source: Bank for International Settlements

It is a pleasure to be here at the Private Sector Collaborative Forum (PSCF) 2025 of the Financial Action Task Force. I am happy to note that this is the first time that the forum is being held in India. I thank FATF for giving us this opportunity. In my previous role as the Secretary in the Department of Revenue, Ministry of Finance, Government of India, I had the opportunity of being closely associated with the FATF during our mutual evaluation last year.

About FATF

Financial Action Task Force (FATF), the standard setting body for illicit financing has come a long way since its establishment in 1989. Over the years, it has evolved from an organisation with only 16 members to a global forum with 40 members. Through the FATF-styled regional bodies¹, its reach is even wider. The standards developed by FATF are used by over 200 jurisdictions to combat money laundering (ML), terrorism financing (TF) and proliferation financing. The implementation of the standards has played an important role in strengthening the global financial system and making the world a safer place.

India’s Mutual Evaluation by FATF

India accords immense importance to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT). Last year, India underwent the mutual evaluation by the FATF. India was placed in the ‘regular follow-up’ category, a distinction shared by only a few other G20 countries². This is a recognition of our effective AML and CFT framework. It demonstrates our commitment to AML and CFT. This is a result of many years of building and continuously improving and strengthening the financial system of our country.

This was possible due to the collaborative efforts of all stakeholders, led by the Government of India including financial entities and designated non-financial businesses and professions in the private and public sector, regulators, and the state governments. The private sector plays a vital role in keeping the financial systems secure. Their role in implementing due diligence procedures, conducting robust risk assessments, monitoring transactions, and reporting suspicious activities is critical for preventing the abuse of the financial system. They identify suspicious activities and help government agencies in destroying illicit financial networks.

Strong public-private partnerships form the bedrock for safeguarding the integrity of the financial system. In India, we recognize the importance of close cooperation between public and private sector stakeholders in achieving these goals. Reserve Bank of India, as the regulator and supervisor of a large segment of the financial system in India has diligently and consistently worked towards building and ensuring implementation of a strong AML and CFT framework in this segment of the financial system, in line with FATF recommendations. The Reserve Bank has taken several initiatives to enhance cooperation and coordination with various stakeholders. Similarly, the Financial Intelligence Unit (FIU)-India has also set up FPAC³, a public-private cooperation forum for facilitating closer interaction and collaboration. It has also supported the setting up of ARIFAC⁴ – a cross sectoral forum for the private sector reporting entities to collaborate among themselves.

It is a result of these collaborative efforts that we have been able to build and demonstrate a robust and resilient AML and CFT framework. I compliment all the stakeholders, especially, the regulated entities in the financial sector as well as the designated non-financial businesses and professions for the successful mutual evaluation.

However, as all of you are aware, the threats from money laundering and terror financing to the national and global financial systems are continuously evolving and becoming more sophisticated. This is primarily due to technological advancements. In order to effectively counter these threats, we need to continue the close cooperation among various stakeholders – government agencies, financial entities in both the public and private sectors, civil society, and others.

The mutual evaluation process was rigorous and detailed. While providing us with valuable insights into our strengths, it has highlighted some areas of improvement in our AML-CFT framework. We are determined to further strengthen our financial system to deter and combat illicit financial activities taking into consideration the recommendations made during the evaluation. We will continue to strive for continuous improvement in this regard.

Some thoughts on the Agenda for PSCF 2025

I am told that yesterday’s sessions were very engaging and produced lively discussions. Looking at the agenda for today and tomorrow, I am confident that the deliberations on contemporary topics such as evolving AML-CFT landscape, financial inclusion & humanitarian channels, risk-based approach to supervision, digitalization & information sharing, beneficial ownership and countering of proliferation financing, will also be exciting. Let me outline some of my thoughts for the forum on these areas.

First, while we all continue to make our financial systems safe and secure against money laundering and terror financing, we as policy makers need to be mindful that our measures are not over-zealous and do not stifle legitimate activities and investments. You would appreciate that multiple laws and rules, each with their own level of granularity cast a high level of burden of compliance on the regulated financial service providers. This is relevant in the context of AML-CFT too. Therefore, we need to have laws and regulations which, with surgical precision, target only the illegitimate and illicit, rather than use them as blunt tools which unintentionally hurt even the honest.

Similarly, even while implementing the legal framework and regulations, we need to keep in mind the impact on persons and businesses. Risk-based approach is recommended in this regard. But let us keep in mind that this is only a step forward in reducing compliance burden. Let us appreciate that it is not the ultimate solution, as any risk-based approach is not perfect; it would have false positives and false negatives. We need to continuously refine and improve our risk assessment models to make them robust.

To make these improvements, we need to improve the quality of our data and harness emerging technologies. This will help improve screening of transactions and detection of suspicious activities thereby reducing false positives and false negatives. Considering the evolving landscape in the area of money laundering resulting from changing customer behaviour and evolving products and services, we need to continuously augment AML risk assessment framework and make appropriate system enhancements on a regular basis after assessing the impact of ML and other risks. The focus has to also be on understanding the latest trends and developments in the financial world that can be exploited by criminals and accordingly develop tools and enabling frameworks that will allow us to detect suspicious transactions and activities early and take pre-emptive action. With the adoption of new technological tools and models, I am sure that AML-CFT risk assessments can be further fine-tuned. I would urge you all to discuss and share best practices in identification, mitigation and supervision of AML-CFT risks. This will not only help to reduce compliance burden on the Regulated Entities but also result in optimal allocation of supervisory resources.

While India has made remarkable progress in financial inclusion, we need to ensure that we continue to widen and deepen it. The discussions on FATF standards to promote financial inclusion need to find answers to the challenge of aligning financial inclusion and financial integrity, especially for the developing economies. It must be ensured that regulations do not create unintended barriers to financial inclusion. We need to be mindful of customer rights and convenience while fulfilling the due diligence requirements. I am happy to note that the amendments to Recommendation 1 and its interpretive note under the Mexican presidency intend to foster and promote financial inclusion without compromising on financial integrity. Similar approach is needed to extend access of financial channels for supporting humanitarian aid.

In recent years, digitalisation has been increasingly applied to customer onboarding and customer due diligence (CDD) processes. India has made huge strides in this regard too. The digital KYC and video KYC are shining examples of this. The Central KYC Records Registry (CKYCR) with more than one billion records is another example, which has the potential of ushering in a new era of customer onboarding by making it easier and seamless not only for customers but also for regulated entities to perform customer identification and due diligence. I am told there is a separate session to deliberate on the state of play of technical solutions in customer due diligence area. The discussions could be helpful in further enhancing the capability and utility of CKYCR manifold.

Further, during the process of CDD, reporting entities collect a large amount of data from the customers. Moreover, there are requirements of sharing of information with Financial Intelligence Units, law enforcement agencies and data registries leading to concerns regarding data protection and sharing of information without consent. India has recently enacted a law for Digital Personal Data Protection. Exchange of experiences from different jurisdictions will help us in better implementing the law in our country.

Another important area which needs discussion is the travel rule. In today’s world, fast payment systems are revolutionizing financial access and deepening financial inclusion. Developing countries like India have made huge progress in making digital payments accessible, affordable, and convenient. While card networks have helped developed economies in improving payment systems, fast payment systems have assisted Emerging Market and Developing Economies (EMDEs) leapfrog in this area. We have also enabled cross border payments using fast payment systems with a few countries. We will continue to work towards fulfilling our commitment to the effective implementation of the next phase of G20 roadmap towards inclusive cross-border payments by 2027. In this context, the ongoing discussions on FATF Recommendation 16 (R.16), known as the travel rule, assume importance. To meet the G20 objective of making cross-border payments faster, cheaper, more transparent and more inclusive, while maintaining their safety and security, it would be desirable to make the travel rule technology-neutral.

Lastly, discussions regarding combating proliferation financing and sanctions evasion need to answer questions related to identification of products and services which are most vulnerable to exploitation and the mitigation of the risks related to such products. This forum can discuss the best practices as well as challenges in this regard.

Conclusion

To conclude, I would like to stress that through our collaborative efforts, we can safeguard the trust that underpins the global financial framework. Together, let us continue to collaborate and innovate in building a financial ecosystem that is not only safe and secure but also fast, convenient, accessible and affordable. Let us build financial systems that not only thwart the attempts of money laundering, terror financing and proliferation financing, but also support financial inclusion, encourage innovation, and facilitate economic growth. In the end, I wish the forum very fruitful and productive deliberations.

Thank you.

MIL OSI Global Banks –

March 27, 2025
MIL-OSI United Kingdom: Chancellor delivers security and national renewal in a new era of global change
Source: United Kingdom – Executive Government & Departments 3

Press release

Chancellor delivers security and national renewal in a new era of global change

Chancellor vows to bring about “new era of security and national renewal” as she delivered a Spring Statement to kickstart economic growth, protect working people and keep Britain safe.
People to be on average £500 a year better off by the end of this parliament compared to under the previous government, putting more money in people’s pockets.

OBR forecast concludes government’s landmark planning reforms will result in a £6.8 billion boost to the economy and housebuilding at its highest level in over 40 years by 2029-30.

Growth at the heart of Plan for Change as £13 billion of additional capital spend allocated alongside £2.2 billion defence funding boost next year.

People will be on average £500 a year better off from 2029, relative to OBR’s autumn forecast, helping to deliver the Plan for Change as the Chancellor today (Wednesday 26 March) announced a Spring Statement to grasp the opportunities in a changing world.

The OBR has also today concluded that the government’s landmark planning reforms will result in UK housebuilding reaching its highest level in over 40 years, bringing the UK one step closer to its Plan for Change mission to build 1.5 million homes.

The economy will be 0.2% larger in 2029-30 because of the reforms – worth around £6.8 billion in today’s money – growing to 0.4% over the next ten years. This represents the biggest positive growth effect it has ever forecasted for a policy that comes at zero-cost to taxpayers. The reforms will secure over 170,000 new homes for hard working families and leave borrowing £3.4 billion lower in 2029-30.

The Chancellor also set out how the government is protecting national security and maximising the growth potential of the UK defence sector by confirming a £2.2 billion increase in the defence budget in 2025-26 while ensuring UK defence is on the cutting-edge of technology and innovation.

But growth is still not where it should be, so at this Spring Statement, this government has gone further and faster to kickstart growth by training up to 60,000 young people to get Britain building again; increasing capital investment by £13 billion over this parliament; and fixing public services by tearing out waste from its roots.

Growth

Kickstarting economic growth is the number one mission of this government, putting more money in people’s pockets. The government has already made considerable progress; supporting a third runway at Heathrow; revitalising the Oxford Cambridge Growth Corridor, launching the National Wealth Fund and making the right choices on public investment to drive growth across the UK.

The actions of this government across the Autumn Budget and Spring Statement, if sustained, lead to a 0.6% rise in the level of real GDP by 2034-35, signalling the government’s growth plan is working.

The OBR concluded that the stability rule is met by £9.9 billion and the investment rule is met by £15.1 billion. Both rules are met two years early, meaning from 2027-28 the government is only borrowing for investment and net financial debt is falling.

The government is not satisfied with short-term growth figures, and is going further and fast today to improve this.

To go further and faster to get Britain building, the Chancellor has today announced a further £13 billion of capital investment over the Parliament to go further on growth, on top of the £100 billion uplift announced at Autumn Budget. This will deliver the projects needed to catalyse private investment, boost growth and drive forward the UK’s modern industrial strategy – unlocking the potential of the Oxford Cambridge Growth Corridor which could add up to £78 billion to the UK economy by 2035.

Taken together, this greater capital investment more than offsets the modest savings on day to day spending and means the total departmental spending will increase over the next five years, when compared with plans in the Autumn.

Over this Parliament, the government is funding a £625 million package to boost skills in the construction sector, which is expected to provide up to 60,000 more skilled construction workers to support the government’s plans to deliver 1.5 million homes in England over the parliament and progress vital infrastructure projects,

As part of this, the government is providing further support to scale up existing construction skills pathway over this Parliament through £100 million for 35,000 additional training places in construction-focused Skills Bootcamps, supporting trainees, ‘returners’, and existing employees to succeed in the sector. Building on the £40 million investment in the new Growth and Skills Levy at Autumn Budget 2024, the government is also providing a further £40 million to support up to 10,000 more young people to access new construction Foundation Apprenticeships, which will provide a key entry route into a thriving industry.

The government is ensuring there are enough skilled construction workers in the system, with £100 million to deliver 10 Technical Excellence Colleges specialised in construction across every region in England, and £165 million to increase funding for training providers delivering construction courses for 16-19-year-olds and adults.

The government is committed to supporting employers to unlock further investment in training to deliver more skilled construction workers, and is providing £100 million, alongside a £32 million contribution from the Construction Industry Training Board to deliver up to 40,000 industry placements in construction each year.

Supported by the construction skills package, the government confirmed this week that there will be a £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes. The new funding will only support developments on sites that will deliver in this Parliament, getting spades in the ground quickly to build homes in places such as Manchester and Liverpool.

Defence

The world is changing before our eyes, reshaped by global instability, including Russian aggression in Ukraine. Europe is facing a once-in-a-generation moment for its collective security, with conflicts overseas undermining security and prosperity at home.

A month ago, the PM announced the biggest sustained increase in defence spending since the Cold War as a result of the changing global picture, now reaching 2.5% of GDP by April 2027, and with an ambition to reach 3% in the next Parliament subject to economic and fiscal conditions.

We are going further and faster to protect our national security and maximise the economic growth potential of the UK defence sector.

Increasing the defence budget by £2.2 billion in 2025-26, taking additional spending on defence to over £5 billion since the Autumn Budget.

This raises spending on defence to 2.36% next year and will be invested in fitting Royal Navy ships with Directed Energy Weapons five years earlier than planned, providing better homes for military families and modernising His Majesty’s Naval Base Portsmouth.

Setting a minimum 10 percent ringfence for equipment spending on emerging technologies like drones and autonomous systems, dual-use technology, and AI-powered capabilities, so that British troops have the tools they need to fight and win in modern warfare.

Getting this new tech into the hands of our armed forces quicker by cutting away bureaucracy, with a new UK Defence Innovation unit within the Ministry of Defence spearheading efforts to identify promising technology and ensure these get to the frontline at speed, while also bolstering the UK tech sector and crowding in private investment.

Creating bespoke procurement processes for different types of military equipment, learning lessons from our rapid support for Ukraine to drive faster timescale targets for operationalising new tanks, aircraft and other essential tools for modern warfare.

This government is determined to transform the defence sector into an engine for growth by focusing this investment on where it boosts the productive capacity of the economy such as investment in innovation and novel technologies. As a result of the increase in defence spending to 2.5%, the government estimates this could lead to around 0.3% higher GDP in the long run, equivalent to around £11 billion of GDP in today’s money.

The government’s investment in defence will also support its number one mission to deliver economic growth. UK citizens will be protected from threats at home whilst creating a stable environment in which businesses can thrive, and supporting highly skilled jobs and apprenticeships across the whole of the UK.

Reform

The government is determined to make the public sector more productive and to improve services for working people. But the changing world means we need to go further and faster to ensure we can deliver the public services that working people care most about.

The government has shown its commitment to taking the difficult decisions required to drive efficiencies and reform the state – including announcing that the world’s largest quango, NHS England, will be brought back into the Department for Health and Social Care, reducing bureaucratic inefficiencies and duplication; and driving out wasteful government spend through cancelling thousands of government credit cards.

Getting more people into jobs is also central to the government’s growth mission. This broken welfare system that is letting people down by asking them to prove what they can’t do, rather than focusing on what they could do with the right support – trapping people due to fear of trying work, lack of support and poor financial incentives.

The social security system will always protect those who can never work, that is why this government is proposing an additional premium that will safeguard their incomes. And will end reassessments for people with the most severe, life-long conditions to give them dignity and security.

Helping more people into work is a central aim of these reforms and which is why the government is tackling incentives to be inactive by abolishing the WCA, rebalancing Universal Credit, and investing more into employment support.

We will always support those with long term health conditions through the Personal Independence Payment, which will remain an important non-means tested benefit for disabled people and people with long term health conditions. But these reforms will make the system more targeted and sustainable to ensure the safety net is there for those who need it most.

The OBR have now set out their final assessment of costings and confirmed this welfare package will reduce welfare spending by £4.8 billion in 2029-30.

The government will modernise the Civil Service into a more productive and agile organisation that can effectively deliver the Plan for Change, underpinned by a digital revolution, while cancelling thousands of government procurement cards. Today, the Chancellor has gone further.

The Chancellor has confirmed the creation of a £3.25 billion Transformation Fund to support the fundamental reform of public services, seize the opportunities of digital technology and Artificial Intelligence (AI), and transform frontline delivery to release savings for taxpayers over the long-term.

The Fund will invest in vital public services and accelerate the modernisation of the state by taking the next step to reform the children’s social care system through an additional £25 million for the fostering system. This will include funding the recruitment of a further 400 new fostering households, providing children with stability and addressing cost pressures on local government.

The fund will also support the managing offenders in the community, by providing £8 million for new technology so probation officers can focus on reducing reoffending, rather than filling out forms.

In addition, it will provide £42 million for three pioneering DSIT-led Frontier AI Exemplars. These Exemplars will test and deploy AI applications to make government operations more efficient and effective and improve outcomes for citizens by reducing unnecessary bureaucracy.

To create an agile and productive state we are also providing £150 million for government employee exit schemes. This will support a leaner and more efficient Civil Service, helping to reduce administration costs by 15% by the end of the decade.

The Chancellor also announced a package of measures to close the tax gap, raising £1 billion per year by 2029-30. The UK tax gap was estimated to be around £40 billion in 2022-23.

The Spring Statement earmarks around £80 million in new money for third party debt collectors to bring in £1.3 billion over the next five years – a return of around £16 for every pound spent for UK public services and investment projects. HMRC will also receive £4 million in new funding to pilot a new test and learn programme with the private sector to improve the tax collection agency’s approach to recouping older unpaid tax debt. Ministers will decide whether to proceed with a larger exercise later this year based on the results of this test.

An additional 600 staff will also be recruited into HMRC’s debt management teams. This means that for every £1 spent on these staff, over £13 of debt is expected to be recovered. The staff will work with the private sector to make collecting tax debt more efficient including through automating admin processes.

The Spring Statement also announces £100 million in new funding for HMRC to recruit a further 500 compliance officers from April 2025. This will raise £241 million in unpaid tax over the next five years.

Late payment penalties for VAT and Making Tax Digital for income tax Self Assessment will increase to incentivise taxpayers to pay on time. This will be from 2% to 3% at 15 days, 2% to 3% at 30 days, and 4% to 10% from day 31. This will take effect from April 2025.

As announced in the autumn, Making Tax Digital for income tax Self Assessment will be extended to sole traders and landlords with income over £20,000. The Spring Statement confirms that this additional group will join Making Tax Digital from April 2028. This will build on the existing plan which will see sole traders and landlords with income above £50,000 joining from April 2026, and those with income above £30,000 joining from April 2027. Around 4 million businesses have an income below the £20,000 threshold.

Looking Forward

This Spring Statement builds on the Autumn Budget and the decisions taken since required to deliver stability to the British economy and kickstart economic growth.

The government will set out its plans for spending and key public sector reforms at the Spending Review which will conclude on 11 June 2025.

This will not be a business-as-usual Spending Review. The government has fundamentally reformed the process to make it zero-based, collaborative, and data-led, in order to ensure a laser-like focus on the biggest opportunities to rewire the state and deliver the Plan for Change.

At the Spending Review, the Budget in the autumn and across the Parliament, the government will continue to prioritise growing the economy to deliver change.

More information

The OBR concludes planning reforms will bring housebuilding to its highest level in 40 years.

Government calculations for the long-run impacts of higher defence spending are based on estimates from Antolin-Diaz and Surico (2025), forthcoming in the American Economic Review (AER), of the GDP impact of higher defence spending on GDP. Their estimates of the GDP multiplier stabilise after ten years at around 1.6, which is assumed to reflect an appropriate long-run multiplier for potential output, as any demand-side effects are likely to have dissipated at the ten-year horizon.

Defence spending as a share of GDP is set to rise from 2.3% to 2.5%, an increase of 0.2 percentage points. Applying an elasticity of 1.6 to this change implies a long-run increase in the level of potential output of approximately 0.3%. A long-run increase to the level of potential output of 0.3% is equivalent to around £11 billion of GDP in the long run, in today’s prices.

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Published 26 March 2025
MIL OSI United Kingdom –
March 27, 2025
MIL-OSI: Zero Hash Secures Approval to Establish a Trust Company, Strengthening Its Custody Capabilities
Source: GlobeNewswire (MIL-OSI)

ASHEVILLE, N.C., March 26, 2025 (GLOBE NEWSWIRE) — Zero Hash, the leading crypto and stablecoin infrastructure platform, has been granted approval to establish a Trust Company in North Carolina, further reinforcing its position as the most comprehensive digital asset provider. This milestone deepens Zero Hash’s regulatory stack, unlocking new opportunities for institutional and brokerage clients.

With the addition of a chartered Trust Company, Zero Hash expands its regulatory footprint, ensuring the broadest regulatory coverage for crypto and stablecoin infrastructure. Specifically, the Trust:
- Aligns with the company’s commitment to compliance-forward innovation as the industry prepares for upcoming legislation, including the GENIUS Act, which are expected to add specific regulatory requirements for stablecoin custodians.
- Enables Zero Hash to enhance its service offerings. As a Qualified Custodian, the company can now custody tokenized assets on behalf of SEC-registered institutions, further broadening its appeal to enterprise clients.
- Allows Zero Hash to introduce new account types for brokerage customers, including retirement accounts and registered investment advisors.
“This approval is a testament to our unwavering commitment to being the most comprehensive and trusted partner in the crypto and stablecoin space,” said Stephen Gardner, CEO of Zero Hash Trust. “We are excited to continue to expand our offering for the partners we service including the leading payment groups such as Shift4 and Stripe and brokerage partners including Interactive Brokers and tastytrade.”

Concurrently, Zero Hash is announcing the appointment of two public board members appointed to the Trust. Mary Ruppert has over 20 years of experience as an attorney, compliance officer, and public policy professional, including at PayPal and the Department of Justice. David Hannigan is currently the CISO at NuBank, having previously led security at Spotify and Capital One.

About Zero Hash

Zero Hash is the leading crypto and stablecoin infrastructure provider that seamlessly connects fiat, crypto, and stablecoins in one platform, enabling a better way to move and transfer money and value globally.

Through its embeddable infrastructure, start-ups, enterprises, and Fortune 500 companies build a diverse range of use cases, including cross-border payments, commerce, trading, remittance, payroll, tokenization, wallets, and on/off-ramps.

Zero Hash Holdings is backed by investors, including Point72 Ventures, Bain Capital Ventures, and NYCA.

Zero Hash Trust Company LLC will be established in North Carolina and hold a non-depository trust charter issued by the North Carolina Commissioner of Banks.

Zero Hash LLC is a FinCen-registered Money Service Business and a regulated Money Transmitter that can operate in 51 U.S. jurisdictions. Zero Hash LLC and Zero Hash Liquidity Services LLC are licensed to engage in virtual currency business activity by the New York State Department of Financial Services. In Canada, Zero Hash LLC is registered as a Money Service Business with FINTRAC.

Zero Hash Australia Pty Ltd. is registered with AUSTRAC as a Digital Currency Exchange Provider, with DCE registered provider number DCE100804170-001. Zero Hash Australia Pty Ltd. is registered on the New Zealand register of financial service providers, with Financial Service Provider (FSP) number FSP1004503. Zero Hash Europe B.V. is registered as a Virtual Asset Services Provider (VASP) by the Dutch Central Bank (Relation number: R193684). Zero Hash Europe Sp. Zoo is registered as a VASP by the Tax Administration Chamber of Poland in Katowice (Registration number RDWW – 1212).

Media Contacts

Zero Hash

Shaun O’Keeffe

(855) 744-7333

media@zerohash.com

The MIL Network –
March 27, 2025

Category: Taxation

So how does the income tax system work?

What is bracket creep?

Is bracket creep a good or a bad thing?

About FATF

India’s Mutual Evaluation by FATF

Some thoughts on the Agenda for PSCF 2025

Conclusion

Chancellor delivers security and national renewal in a new era of global change

Growth

Defence

Reform

Looking Forward

More information

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