NewzIntel.com

Category: Taxation

  • MIL-OSI Security: Leader of Multi-Year “Operation Fox Hunt” Repatriation Campaign Directed by the People’s Republic of China Sentenced to 20 Months in Prison

    Source: Office of United States Attorneys

    Defendant Repeatedly Harassed U.S. Resident and His Family to Coerce Repatriation to the PRC

    BROOKLYN, NY – Earlier today, in federal court in Brooklyn, defendant Quanzhong An was sentenced by United States District Judge Kiyo A. Matsumoto to 20 months in prison for acting as an illegal agent of the government of the People’s Republic of China (the “PRC”), for his participation in a scheme to cause the coerced repatriation of a U.S. resident (the “U.S. Resident”) to the PRC as part of its international extralegal repatriation effort known as “Operation Fox Hunt.”  In addition to the term of imprisonment, Judge Matsumoto ordered An to pay a financial penalty of approximately $5 million, including approximately $1.3 million in restitution to the U.S. Resident and his family, as well as a $50,000 fine.  An pleaded guilty in May 2024 and was charged in October 2022.

    John J. Durham, United States Attorney for the Eastern District of New York, Sue Bai, Supervisory Official and head of the Justice Department’s National Security Division and Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (“FBI”) announced the sentences.

    “Quanzhong An acted at the direction of the PRC government to harass and intimidate individuals living on U.S. soil as part of a pernicious scheme to force their repatriation to the PRC,” stated United States Attorney Durham.  “Thanks to our collective efforts, the scheme failed, and the defendant has been brought to justice.  Our Office remains steadfast in its efforts to protect both U.S. national security interests and individuals living in our District from transnational repression schemes perpetrated by hostile foreign powers.”

    Mr. Durham expressed his appreciation to the Internal Revenue Service, Criminal Investigations for its work on the case.

    “For years, Quanzhong An threatened, harassed, and attempted to intimidate a U.S. resident and his family at the behest of the People’s Republic of China, with the ultimate goal of strong-arming the individual into leaving the United States and returning to China to face an unknown fate.  Today’s sentencing represents justice for this victim and his family, and demonstrates to others that the FBI is committed to protecting all victims of transnational repression,” stated FBI Acting Assistant Director in Charge Backschies.  “Threats, harassment, and intimidation – whether perpetrated by individuals or nation states – will not be tolerated in this country, and the FBI will continue to lead the charge to protect all individuals who are threatened and harassed on U.S. soil.”

    As set forth in the government’s sentencing memoranda and other court filings, An was a leading member of an international campaign to threaten, harass, and intimidate the U.S. Resident and his family members, with the goal of coercing the U.S. Resident to repatriate to the PRC.  An participated in the multi-year scheme to elevate his status within the PRC government as a means of furthering his own economic interests.

    An’s involvement in the repatriation scheme began in 2017, when he attempted to locate the U.S. Resident by visiting the home of the U.S. Resident’s adult son, without notice or invitation.  The following year, An sent his daughter, as well as two PRC government officials, to the home of the U.S. Resident’s son.  An subsequently met with the U.S. Resident’s son on numerous occasions, during which time An served as a mouthpiece for the PRC by conveying threatening messages on behalf of the PRC government.  For example, An said he did not want to pronounce “ruthless words” from the PRC government but stated that PRC officials would “keep pestering [the U.S. Resident’s son], [and] make [his] daily life uncomfortable” if the son was unable to convince his father to repatriate to the PRC.  An’s harassment continued unabated from 2017 until his arrest in 2022.  An’s conduct intimidated individuals living in the United States and their loved ones in the PRC – just as it was intended to do – for the benefit of the PRC government.

    At sentencing, Judge Matsumoto considered that An participated in additional criminal conduct.  Specifically, he perpetrated a bank fraud and money laundering scheme to defraud U.S. financial institutions so that he could enjoy continued access to U.S.-based bank accounts.  As part of this scheme, he moved millions of dollars from the PRC into the United States, deliberately deceiving U.S. financial institutions regarding the source and purpose of the funds.

    The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States.  If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.

    The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States  Attorneys Alexander Solomon, Meredith A. Arfa, and Antoinette N. Rangel are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.  Assistant United States Attorney Claire S. Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters and Assistant United States Attorneys Madeline O’Connor and Daniel Saavedra of the Office’s Financial Litigation Program are assisting with restitution matters.

    The Defendant:

    QUANZHONG AN
    Age: 58
    Roslyn Heights, New York

    E.D.N.Y. Docket No. 22-CR-460 (KAM)

    MIL Security OSI –

  • MIL-OSI: Wearable Devices Announces Full Year 2024 Financial Results and Provides Corporate Update

    Source: GlobeNewswire (MIL-OSI)

    YOKNE’AM ILLIT, Israel, March 19, 2025 (GLOBE NEWSWIRE) — Wearable Devices Ltd. (Nasdaq: WLDS, WLDSW) (“Wearable Devices” or the “Company”), a technology growth company specializing in artificial intelligence (“AI”)-powered touchless sensing wearables, today announced its financial results for the year ended December 31, 2024.

    Asher Dahan, Chief Executive Officer and Chairman of the Board of Directors of Wearable Devices, commented, “2024 was characterized by strategic capital allocation and the execution of our growth strategy as we delivered our Mudra Band for Apple Watch, and entered into several collaborations with companies and contractors at the forefront of their respective industries. With a strong focus on technological breakthroughs and innovation, we introduced the Mudra Link, a universal gesture control wearable wristband in September 2024. This launch marked a significant milestone in our neural interface technology, enabling seamless, touch-free interaction with a wide range of digital devices. The Mudra Link is open for orders, and we have started to ship the Mudra Link to customers in the first quarter of 2025. We invested significant resources in pursuit of these milestones, mainly due to strategic investments primarily in sales and marketing and research and development as we continue to innovate and showcase our technology, as well as an enhanced focus on business development on the business-to-business (“B2B”) side of our business.”

    “Collaborations represent a key part of our business, and we expect our B2B offerings to be a significant driver of revenue for us as we grow. At the beginning of 2024, we launched the B2B Mudra Developer Kit (“MDK”), providing our B2B customers with enhanced capabilities and additional features that improve our B2B offering. The MDK allows original equipment manufacturers (“OEMs”) to design new, customized gestures to create a user interface specifically tailored to their needs. At the beginning of 2024, we announced a collaboration agreement with Qualcomm Incorporated (“Qualcomm”), for the development of products using the Qualcomm Snapdragon Spaces XR Developer Platform. In October 2024, we announced an innovative collaboration with TCL-RayNeo™ (“RayNeo”), a leader in augmented reality (“AR”) technology, aiming at bringing mass-market neural interface wristband for AR glasses to life. We anticipate interest in our B2B product to grow as the market for wearable devices and AI-based technology expands, with more and more customers recognizing the value that our products can add to their operations.

    “Our business-to-customer (“B2C”) product, the Mudra Band, is an award-winning aftermarket band for the Apple Watch that enables touchless control of multiple Apple devices. In addition, we’re seeing considerable interest in the Mudra Link, and during the first quarter of 2025 we commenced shipment of our first manufacturing batch to Mudra Link customers. 2024 was characterized by strategic capital allocation and the execution of our growth strategy, with a focus on three key areas: technological breakthroughs and innovation, adoption trends and market outlook, and strategic positioning for future growth.

    First, we continued to lead in innovation with groundbreaking technologies that enable natural, touch-free interaction. Second, we are witnessing an increasing adoption trend in neural interface solutions, with growing interest from both consumers and business partners. Finally, we are well-positioned for future growth, supported by our marketing efforts, strong presence at leading trade shows such as CES and MWC, and the growing recognition of Mudra Link as a market-defining product. We continue to receive orders for the product and see significant growth potential as our technology and capabilities evolve.”

    Mr. Dahan concluded, “We have a comprehensive strategy with innovative B2B and B2C offerings to maximize our presence in what we believe to be a market that is poised for tremendous growth. We are very encouraged by the progress that we made in 2024 and believe that Wearable Devices is positioned for transformation in coming years, as we continue to invest in our operations, bring innovative products to market, and showcase the breadth and depth of our technology.”

    2024 and Recent Business Highlights:

    Strategic Collaborations & Expansion

    • Signed a collaboration agreement with Qualcomm to elevate extended reality (“XR”) experiences using Mudra neural technology.
    • Collaborated with RayNeo to lead the neural control revolution for AR glasses, positioning Mudra ahead of competitors like Meta.
    • Signed a reseller agreement to scale licensing efforts in South Korea and China.

    Product & Technology Innovations

    • Launched Mudra Link, the first AI Neural Interface Wristband for Android and beyond, expanding accessibility of neural gesture control.
    • Released the Mudra Developer Kit (MDK) for B2B customers, enabling OEMs to create tailored user interfaces.
    • Unveiled AI-powered Large MUAP Models to revolutionize gesture control with personalized neural interactions.
    • Showcased future AI-powered gesture personalization technology, advancing next-gen human-computer interaction.

    Market Recognition & Sales Expansion

    • Awarded the CES 2025 Innovation Award in XR Technologies and Accessories for Mudra Link.
    • Chosen as Best Wearable of CES 2024 by SlashGear.com.
    • Featured in Mashable, VentureBeat, and leading tech magazines.

    Strategic Deployments

    • Successfully completed the first-stage deployment testing for a leading XR glasses OEM, meeting key evaluation criteria.
    • Demonstrated Mudra technology integration with Qualcomm Snapdragon Spaces at CES 2025 and AWE 2024.
    • Showed positive results on Lenovo’s XR headset, validating Mudra’s neural technology for next-gen spatial computing.

    Intellectual Property & Regulatory Progress

    • Filed a patent application for touchless pinch-to-zoom technology for AR/VR (virtual reality) applications.
    • Secured a Chinese patent for its AI Gesture-Controlled Interface.
    • Expanded international IP portfolio with a neural wrist technology patent filing in South Korea.

    Full Year 2024 Financial Highlights:

    • Revenues: Revenues increased from $82 thousand in 2023 to $522 thousand in 2024, marking a significant step forward in the Company’s transition toward a commercially driven business. This growth was primarily driven by increased sales of the Mudra Band, demonstrating early market adoption and growing demand for neural interface technology. While revenues are still at an early stage, the upward trend reflects positive momentum and a foundation for future expansion.
    • Research and Development Expenses: Research and development expenses decreased by 11% to $3.0 million in the full year of 2024 compared to $3.3 million in the full year of 2023, reflecting the successful completion of key development phases, particularly Mudra Link, and a transition toward production and sales. The Company continued to focus on creating disruptive, industry leading technology that leverages AI and proprietary algorithms, software and hardware.
    • Sales and Marketing Expenses: Sales and marketing expenses increased by 4% to $2.1 million in the full year of 2024 compared to $2.0 million in the full year of 2023, related to the Company driving awareness of its technology and products across various channels including participation at multiple leading industry conferences.
    • General and administrative expenses: General and administrative expenses decreased by 1.3% to $2.8 million in the full year of 2024 compared to $2.9 million in the full year of 2023.
    • Net Loss: Net loss increased to $(7.9 million), or $(24.2) per diluted share, for the year ended December 31, 2024, as compared to a net loss of $(7.8 million), or $(38.4) per diluted share, for the year ended December 31, 2023.

      The per share information reflects the Company’s 1-for-20 reverse share split, which became effective on October 10, 2024, and an additional 1-for-4 reverse share split, which became effective on March 17, 2025.

    • Cash Position: Cash and deposits as of December 31, 2024 were $4.0 million.
    • Inventory: Inventory increased to $1.2 million at the end of 2024, as part of the completion of the transition phase from research and development to production and to serve our planned B2C and B2B initiatives in 2025.

    About Wearable Devices Ltd.

    Wearable Devices Ltd. is a growth company developing AI-based neural input interface technology for the B2C and B2B markets. The Company’s flagship product, the Mudra Band for Apple Watch, integrates innovative AI-based technology and algorithms into a functional, stylish wristband that utilizes proprietary sensors to identify subtle finger and wrist movements allowing the user to “touchlessly” interact with connected devices. The Company also markets a B2B product, which utilizes the same technology and functions as the Mudra Band and is available to businesses on a licensing basis. Wearable Devices Is committed to creating disruptive, industry leading technology that leverages AI and proprietary algorithms, software, and hardware to set the input standard for the Extended Reality, one of the most rapidly expanding landscapes in the tech industry. The Company’s ordinary shares and warrants trade on the Nasdaq market under the symbol “WLDS” and “WLDSW,” respectively.

    Forward-Looking Statement Disclaimer

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. For example, we are using forward-looking statements when we discuss the benefits, capabilities, advantages and expected demand, an increasing adoption trend in neural interface solutions, with growing interest from both consumers and business partners, momentum and growth of our products and technology, our expectation for the growth of the B2B market and that our B2B offerings will be a significant driver of revenue for us as we grow, our anticipation that interest in our B2B product will grow as the market for wearable devices and AI-based technology expands and our belief that Wearable Devices is positioned for transformation in coming years. All statements other than statements of historical facts included in this press release regarding our strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our use of proceeds from the offering; the trading of our ordinary shares or warrants and the development of a liquid trading market; our ability to successfully market our products and services; the acceptance of our products and services by customers; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other security and telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our success establishing and maintaining collaborative, strategic alliance agreements, licensing and supplier arrangements; our ability to comply with applicable regulations; and the other risks and uncertainties described in our annual report on Form 20-F for the year ended December 31, 2023, filed on March 15, 2024 and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

    Investor Contact:

    Michal Efraty
    IR@wearabledevices.co.il

    WEARABLE DEVICES LTD. AND ITS SUBSIDIARY
    CONSOLIDATED BALANCE SHEETS
     
        December 31  
        2024       2023  
        U.S. dollars
    in thousands    		  
    Assets      
    CURRENT ASSETS:            
    Cash and cash equivalents     3,089         810  
    Short-term bank deposits     862         4,045  
    Governmental grant receivable     17         108  
    Other receivables and prepaid expenses     322         757  
    Inventories     1,226         1,032  
    TOTAL CURRENT ASSETS     5,516         6,752  
                     
    NON-CURRENT ASSETS:                
    Long-term bank deposits     –         54  
    Right-of-use assets     330         592  
    Property and equipment, net     130         194  
    TOTAL NON-CURRENT ASSETS     460         840  
    TOTAL ASSETS     5,976         7,592  
                     
    Liabilities and Shareholders’ Equity                
    CURRENT LIABILITIES:                
    Accounts payable     157         410  
    Advance payments     83         312  
    Convertible promissory note     770         –  
    Accrued payroll and other employment related accruals     402         579  
    Accrued expenses     392         190  
    Lease liabilities     291         297  
    TOTAL CURRENT LIABILITIES     2,095         1,788  
    Lease liabilities     21         278  
    TOTAL LIABILITIES     2,116         2,066  
                     
    SHAREHOLDERS’ EQUITY:                
    Ordinary shares no par value : Authorized 50,000,000 as of December 31, 2024 and December 31, 2023; Issued and outstanding 707,463 shares as of December 31, 2024 and 254,843 shares as of December 31, 2023.     67         57  
    Additional paid-in capital     32,895         26,692  
    Accumulated losses     (29,102 )       (21,223)  
    TOTAL SHAREHOLDERS’ EQUITY     3,860         5,526  
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY     5,976         7,592  
    WEARABLE DEVICES LTD. AND ITS SUBSIDIARY
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
     
        Year ended December 31  
        2024       2023       2022    
        U.S. dollars in thousands (except per share amounts)  
                       
    Revenues     522         82         45    
    Cost of revenues     437         (62 )       (10 )  
    GROSS PROFIT     85         20         35    
    Research and development, net     (2,964 )       (3,316 )       (2,271 )  
    Sales and marketing expenses, net     (2,096 )       (2,008 )       (1,370 )  
    General and administrative
    expenses    		     (2,845 )       (2,882 )       (1,948 )  
    Initial public offering expenses     –         –         (904 )  
    OPERATING LOSS     (7,820 )       (8,186 )       (6,458 )  
    Financing income (expenses), net     (52 )       372         (38 )  
    LOSS BEFORE TAX EXPENSES     (7,872 )       (7,814 )       (6,496 )  
    Tax expenses     (7 )       –         –    
    NET LOSS AND TOTAL                           
    COMPREHENSIVE LOSS     (7,879 )       (7,814 )       (6,496 )  
                             
    Net loss per ordinary shares,                        
     basic and diluted *     (24.2 )       (38.4 )       (42.4 )  
    Weighted average number of                               
    ordinary shares and pre-
    funded warrants outstanding
    basic and diluted *    		     325,690         202,515         153,465    
      * The share and per share information in these financial statements reflects the 1-for-20 reverse share split became effective on October 10, 2024 and an additional 1-for-4 reverse share split of our issued and outstanding Ordinary Shares became effective on March 17, 2025.
    WEARABLE DEVICES LTD. AND ITS SUBSIDIARY
    CONSOLIDATED STATEMENTS OF CASH FLOWS
     
        Year ended December 31  
        2024       2023     2022    
        U.S. dollars in thousands  
    CASH FLOWS FROM OPERATING ACTIVITIES:                    
    Net loss     (7,879 )       (7,814)       (6,496)    
    Adjustments required to reconcile net loss to net cash used in                           
    operating activities                          
    Depreciation     107         68       23    
    Interest expenses on convertible promissory note     4         –       –    
    Accrued interest on deposits     (3 )       (45)       –    
    Share based compensation expenses     182         241       790    
    Unrealized gain from foreign currency derivative activities     68         (68)       –    
    Marketing expenses paid in ordinary shares     100         –       –    
    Provision for inventory write-off     75         –       –    
                               
    Changes in operating assets and liabilities items:                          
    Decrease in accounts receivable     –         –       8    
    Decrease (increase) in inventories     (269 )       (1,026)       5    
    Decrease (increase) in governmental grants receivables     91         (54)       8    
    Decrease (Increase) in other receivables and prepaid expenses     357         (136)       (496)    
    Increase (decrease) in advance payments     (228 )       (41)       79    
    Increase (decrease) in deferred revenues     –         (12)       (12)    
    Increase (decrease) in accounts payable     (253 )       254       84    
    Increase (decrease) in accrued payroll and other employment
    related accruals    		     (177 )       163       194    
    Increase in accrued expenses     212         36       99    
    Net cash used in operating activities     (7,613 )       (8,434)       (5,714)    
    CASH FLOWS FROM INVESTING ACTIVITIES:                          
    Purchase of property and equipment     (43 )       (194)       (48)    
    Decrease (Increase) in deposits, net     3,240         (4,054)       –    
    Prepayments of leasing     –         –       (18)    
    Net cash provided by (used in) investing activities     3,197         (4,248)       (66)    
    CASH FLOWS FROM FINANCING ACTIVITIES:                          
    Proceeds from issuance of shares issued in the public offering, net
    of issuance cost    		     1,578         1,670       –    
    Proceeds from issuance of units of ordinary shares and warrants in
    connection with the initial public offering, net of issuance
    expenses    		             –       14,319    
    Proceeds from issuance of SAFEs     –         –       500    
    Refund to SAFE investors     –         –       (100)    
    Proceeds from credit line     –         –       800    
    Repayment of credit line     –         –       (800)    
    Proceeds from issuance of ordinary shares as a result of exercise of
    warrants    		     –         1,449       160    
    Proceeds from issuance of ordinary shares associated with the
    SEPA    		     4,353         –       –    
    Proceeds from issuance of convertible promissory note     1,920         –       –    
    Repayment of convertible promissory note     (1,156 )                    
    Net cash provided by financing activities     6,695         3,119       14,879    
                               
    Net increase (decrease) in cash and cash equivalents     2,279         (9,563)       9,099    
    Cash and Cash Equivalents at the beginning of year     810         10,373       1,274    
    Cash and cash equivalents at the end of year     3,089         810       10,373    
    Supplemental Disclosure:                          
    Interest paid     49         –       40    
    Interest received     (144 )       (305)       –    
    Conversion of SAFEs to equity     –         –       400    
    Right-of-use asset recognized against lease liability     –         644       229    

    The MIL Network –

  • MIL-OSI Security: Federal Jury Finds Feeding Our Future Mastermind and Co-Defendant Guilty in $250 Million Pandemic Fraud Scheme

    Source: Office of United States Attorneys

    MINNEAPOLIS – Two individuals have been convicted by a federal jury for their roles in a $250 million fraud scheme that exploited a federally-funded child nutrition program, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    “Aimee Bock and Salim Said took advantage of the Covid-19 pandemic to carry out a massive fraud scheme that stole money meant to feed children,” said Acting U.S. Attorney Lisa D. Kirkpatrick.  “The defendants falsely claimed to have served 91 million meals, for which they fraudulently received nearly $250 million in federal funds.  That money did not go to feed kids.  Instead, it was used to fund their lavish lifestyles. Today’s verdict sends a message to the community that fraud against the government will not be tolerated.”

    “Stealing from the federal government is stealing from the American people – plain and simple. The egregious fraud uncovered in the Feeding our Future case represents the blatant betrayal of public trust. These criminals stole hundreds of millions in federal funding meant to feed hungry children during a crisis and instead funneled it into luxury homes, cars and lavish lifestyles while families struggled,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “The FBI will not allow criminals to rob federal programs and walk away unscathed. We will expose their schemes, dismantle their networks, and ensure they face the full weight of justice.”

    “Aimee Bock, Salim Said, and others took advantage of a global pandemic to rob food programs, aimed at serving those in need, of hundreds of millions of taxpayer dollars during a time when so many people were struggling,” said Ramsey Covington, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “Instead of overseeing the distribution of meals to low-income children, Bock’s organization enabled meal site operators to commit fraud. This verdict is the product of dedicated investigators and prosecutors to bring accountability to those who brazenly stole from the American public. IRS Criminal Investigation is deeply committed to working with our partner agencies to combat these types of fraud schemes and ensure our American tax dollars serve their intended purpose.”

    “Today’s verdict reaffirms how critical a role the U.S. Postal Inspection Service plays in protecting the American consumer from these types of fraudulent schemes and in ensuring that the nation’s U.S. mail stream is not used by criminals to prey upon our citizens and programs intended to aid those in need during difficult times.  The bold egregious nature in which these fraudsters victimized our children and programs intended to feed them during a world-wide pandemic illustrates their callous disregard for human decency and overall greed,” Bryan Musgrove, Inspector in Charge of the Denver Division stated. “This investigation is a tremendous example of how the U.S. Postal Inspection Service and our FBI law enforcement partners can work side by side in an effort to bring these fraudsters to justice.”

    Historically, the Federal Child Nutrition provided meals to children in school-based programs or activities. During the COVID-19 pandemic, the U.S. Department of Agriculture (USDA) waived some of the standard requirements for participation in the Federal Child Nutrition Program. Among other things, the USDA allowed for-profit restaurants to participate in the program, as well as allowed for off-site food distribution to children outside of educational programs. 
    As proven at trial, Aimee Bock, 44, was the founder and executive director of Feeding Our Future, a nonprofit organization that was a sponsor participating in the Federal Child Nutrition Program. Salim Said, 36, former co-owner of Safari Restaurant, was jointly tried with Bock. Together, they oversaw a massive fraud scheme carried out by sites under Feeding Our Future’s sponsorship. 

    As proven at trial, Feeding Our Future employees recruited individuals and entities to open Federal Child Nutrition Program sites throughout the state of Minnesota. These sites, created and operated by Bock, Said, and others, fraudulently claimed to be serving meals to thousands of children a day within just days or weeks of being formed. Bock and Said created and submitted false documentation, including fraudulent meal counts consisting of fake attendance rosters purporting to list the names and ages of the children receiving meals at the sites each day. Feeding Our Future submitted these fraudulent claims to the Minnesota Department of Education (MDE) and then disbursed the fraudulently obtained Federal Child Nutrition Program funds to their co-conspirators involved in the scheme.

    To accomplish their scheme, Bock and Said created dozens of shell companies to enroll in the program as food program sites, and to receive and launder the proceeds of their fraudulent scheme. In exchange for sponsoring these sites’ fraudulent participation in the program, Feeding Our Future received more than $18 million in administrative fees to which it was not entitled. In addition to the administrative fees, Feeding Our Future employees solicited and received bribes and kickbacks from individuals and companies sponsored by Feeding Our Future. Many of these kickbacks were paid in cash or disguised as “consulting fees” paid to shell companies created by Feeding Our Future employees to make them appear legitimate.

    As proven at trial, Said’s Safari Restaurant reported approximately $600,000 in annual revenue in each of the three years prior to the onset of the COVID-19 pandemic. In April 2020, Safari Restaurant enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. By July 2020, Said claimed to be serving meals to 5,000 children per day, seven days a week. In total, Said claimed to have served over 3.9 million meals to children from the Safari Restaurant food site between April 2020 and November 2021. Said also claimed that Safari Restaurant provided more than 2.2 million meals to other food sites involved in Feeding Our Future’s fraud scheme.

    In total, Feeding Our Future opened more than 250 Federal Child Nutrition Program sites throughout the state of Minnesota, and in doing so, went from receiving and disbursing approximately $3.4 million in federal funds in 2019 to nearly $200 million in 2021. Throughout the course of their scheme, Feeding Our Future fraudulently obtained and disbursed more than $240 million in Federal Child Nutrition Program funds. The defendants used the proceeds of their fraudulent scheme to purchase luxury vehicles, residential and commercial real estate in Minnesota as well as property in Ohio and Kentucky, real estate in Kenya and Turkey, and to fund international travel.

    After a six-week trial, Bock was convicted on four counts of wire fraud, one count of conspiracy to commit wire fraud, one count of bribery, and one count of conspiracy to commit federal programs bribery. Said was convicted on one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit federal programs bribery, eight counts of bribery, one count conspiracy to commit money laundering and five counts of money laundering. 

    The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

    Assistant U.S. Attorneys Joseph H. Thompson, Matthew S. Ebert, Harry M. Jacobs, and Daniel W. Bobier are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

    MIL Security OSI –

  • MIL-OSI Security: Armed Raleigh Man Sentenced to 16 Years for Trafficking Fentanyl

    Source: Office of United States Attorneys

    RALEIGH, N.C. – A Raleigh man was sentenced today to 16 years in prison for trafficking fentanyl pills. On November 12, 2024, Donnavin Mustafia Byrdsong pled guilty to Conspiracy to Distribute and Possess with the Intent to Distribute 400 grams or more of Fentanyl.

    According to court documents and other information presented in court, Byrdsong, 31, was part of a group that was trafficking fentanyl pills into the Raleigh, North Carolina area for distribution. Law enforcement determined that Byrdsong and other members of the drug trafficking organization would fly to California to purchase fentanyl pills and would ship the pills back to North Carolina. On January 16, 2024, Byrdsong mailed two packages from California to an address in Raleigh. Law enforcement ultimately seized the packages and discovered a total of 40,000 fentanyl pills, concealed in Lego boxes. During a search of Byrdsong’s residence, law enforcement found numerous additional Lego boxes. The investigation confirmed that Byrdsong had previously mailed similar packages from California to Raleigh.

    This investigation was 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.

    Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Raleigh Police Department, the United States Postal Inspection Service, and the Internal Revenue Service investigated the case and Assistant U.S. Attorney Casey L. Peaden  prosecuted the case.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-200.

    ###

    MIL Security OSI –

  • MIL-OSI Canada: Budget Delivers Record Revenue Sharing and Lowers Property Tax Rates

    Source: Government of Canada regional news

    Released on March 19, 2025

    All Saskatchewan communities and their residents share in the economic success of Saskatchewan through Municipal Revenue Sharing (MRS), which will be a record $361.8 million this year. This is an increase of $21.6 million, or 6.3 per cent, from the 2024-25 Budget.

    “Municipal Revenue Sharing remains a reliable and predictable tool for Saskatchewan municipalities to make investments they need to build strong and vibrant communities,” Government Relations Minister Eric Schmalz said. “Municipal Revenue Sharing can be used by those local governments to invest in services and programs that everyone in Saskatchewan relies on while keeping property taxes as low as possible.”

    MRS provides predictable, unconditional funding to Saskatchewan cities, towns, villages and rural municipalities based on three-quarters of one point of provincial sales tax revenue from two years prior. 

    At $361.8 million, the 2025-26 MRS program is 184 per cent higher than the revenue shared in the inaugural 2007-08 Budget at $127.3 million. More than $4.6 billion in provincial funding has been allocated to support municipalities through this program since 2007-08.

    The Government of Saskatchewan is also reducing the Education Property Tax (EPT) mill rates for all property classes to offset the impact of property revaluation. Total revenue to government will remain unchanged from the 2024-25 Budget, aside from base growth due to new construction in Saskatchewan.

    Property Class

    2024 Mill Rates

    2025 Mill Rates

    Agricultural

    1.42

    1.07

    Residential

    4.54

    4.27

    Commercial/Industrial

    6.86

    6.37

    Resource

    9.88

    7.49

    The reduction in all EPT mill rates is estimated to save Saskatchewan property owners more than $100.0 million annually. 

    For more information on the EPT mill rates, visit: https://www.saskatchewan.ca/residents/taxes-and-investments/property-taxes/education-property-tax-system.

    In addition to a record setting MRS investment, the 2025-26 Budget includes $172.0 million in municipal investments including:

    • $76.5 million for the provincial portion of the Investing in Canada Infrastructure Program (Government Relations);
    • $29.0 million in policing grants (Corrections, Policing and Public Safety);
    • $18.4 million for the Rural Integrated Roads for Growth (Highways);
    • $11.6 million grant to provincial Libraries (Education); and
    • $8.6 million for the Urban Connector Program (Highways).

    Residents can see MRS investment by community on the Saskatchewan dashboard under People and Community. Use the left-right toggle in the dashboard to see the historical investment for the province or by community. 

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    For more information, contact:

    MIL OSI Canada News –

  • MIL-OSI Canada: 2025-26 Budget: Delivering For You

    Source: Government of Canada regional news

    Released on March 19, 2025

    Saskatchewan’s 2025-26 Provincial Budget is delivering for the people of Saskatchewan.

    Deputy Premier and Finance Minister Jim Reiter tabled a budget today that delivers on the priorities of Saskatchewan people – affordability, health care, education, safer communities and responsible financial management – while addressing the challenges of a growing province.

    “We understand this budget is being delivered at a very volatile time, due to the constantly changing tariff threats from the United States,” Reiter said. “Right now, we do not know what tariffs the U.S. may impose or how long they may last. As a result, it was not possible to build the exact impact of tariffs into the budget.

    “However, we are not letting the tariff threat prevent us from following through on our commitments to the people of Saskatchewan. Our strong financial position means we are well-positioned to weather the impact of any tariffs that may be imposed on Canada and Saskatchewan.”

    As a signal of strong financial management, the Government of Saskatchewan is delivering a balanced budget in 2025-26, with a surplus of $12 million.

    Affordability

    In the 2025-26 Budget, the Government of Saskatchewan continues to take action to ensure the province remains the most affordable place in Canada to live, work, raise a family and start a business.

    The budget reduces income taxes for every resident, family and small business in the province. It also helps make life more affordable for seniors, families with children, persons with disabilities, caregivers, new graduates, first-time homebuyers and people renovating their homes.

    The taxation changes introduced in the 2025-26 Budget, including the initiatives in The Saskatchewan Affordability Act, provide over $250 million in tax savings this year. This is in addition to the more than $2 billion in affordability measures in each and every budget.

    The affordability measures in the 2025-26 Budget include those that help make life more affordable and those that support our growing province. Among the measures are:

    • Raising the basic personal exemption, spousal and equivalent-to-spousal exemption, dependent child exemption and the seniors supplement by $500 a year, for the next four years – over and above the impact of indexation – for the largest personal income tax reduction in the province since 2008;
    • Increasing monthly income assistance benefits by two per cent for Saskatchewan Income Support (SIS) and Saskatchewan Assured income for Disability (SAID) clients;
    • Increasing the Disability Tax Credit and Caregiver Tax Credit by 25 per cent;
    • Doubling the Active Families Benefit refundable tax credit from $150 to $300 per child and doubling the income threshold to qualify to $120,000 to make children’s sports, arts, cultural and recreational activities more affordable for more Saskatchewan families;
    • Reinstating the Home Renovation Tax Credit, which will allow homeowners to save up to $420 annually in home renovation expenses, while seniors undertaking home renovations can save up to $525; 
    • Increasing the Graduate Retention Program benefit by 20 per cent to a maximum of $24,000; and
    • Permanently maintaining the small business tax rate at one per cent, benefiting more than 35,000 small businesses in Saskatchewan and saving them over $50 million in corporate income taxes annually.

    Property owners will also receive relief in this year’s budget. All education property tax mill rates will be reduced to absorb the increase in property assessment values and ensure this assessment year is revenue neutral for the province in each property class. This change will save property owners in the province more than $100 million annually.

    This is in addition to the Government of Saskatchewan extending the carbon tax exemption on home heating, which is expected to save the average Saskatchewan family approximately $480 in 2025.

    Health Care

    The 2025-26 Budget delivers better patient access and safer, more responsive care for Saskatchewan residents.

    Over the last two years, the Government of Saskatchewan has invested $15.7 billion in health care in the province. In the 2025-26 Budget:

    • The Ministry of Health receives a record $8.1 billion, an increase of $485 million, or 6.4 per cent;
    • The Saskatchewan Health Authority receives an increase of $261 million, or 5.6 per cent, for a record $4.9 billion budget; and
    • The Saskatchewan Cancer Agency receives $279 million, an increase of $30 million, or 12.2 per cent.

    This funding will provide better access to acute care programs and services to improve patient outcomes, such as:

    • Reducing surgical wait times as part of an ambitious plan to perform 450,000 procedures over four years; and
    • Realigning services at Saskatoon City Hospital to address inpatient capacity pressures by opening more than 100 beds.

    Mental health and addictions programs and services receive $624 million – 7.7 per cent of the overall Health budget – to deliver critical support and investments in Saskatchewan, including an increase of $20 million for targeted initiatives. This includes continued progress on the multi-year Mental Health and Addictions Action Plan, and expanded access to mental health and addictions services and care by delivering on the commitment to add 500 addictions treatment spaces across the province, doubling the public health system’s capacity.

    To ensure the professionals are in place to provide health care services, this year’s budget accelerates the hiring of health care professionals through the Health Human Resources Action Plan.

    The 25-26 Budget also invests in steady and significant progress on multiple infrastructure projects.

    Due to the positive response to the Regina Urgent Care Centre, planning is underway for additional urgent care centres in Moose Jaw, Prince Albert and North Battleford, as well as second urgent care centres in Regina and Saskatoon. 

    The budget also provides new capital funding for the expansion of Complex Needs Emergency Shelters in new communities, building on the pilot projects in Regina and Saskatoon. 

    Overall, health capital funding will increase by $140 million, for a total of $657 million – the highest ever capital budget to deliver major health infrastructure projects.

    Education

    Kindergarten to Grade 12

    The 2025-26 Budget delivers increased opportunities and supports for kindergarten to Grade 12 students, parents and teachers across Saskatchewan. 

    Over the last two years, more than $5 billion has been invested in kindergarten to Grade 12 education. In this year’s budget, the Ministry of Education receives $3.5 billion, an increase of $184 million, or 5.5 per cent, over the previous year. That includes an increase of $186 million, or 8.4 per cent, in school operating funding for a total of $2.4 billion.

    The 2025-26 Budget also includes an increase of $130 million to fund the new teacher collective agreement and address growing student enrollment and the challenges facing today’s classrooms. 

    Building on the success of last year’s pilot project in eight Saskatchewan schools, the budget provides funding for 50 additional specialized support classrooms throughout the province. The specialized classrooms help reduce interruptions by providing additional supports to students who need them. 

    Student literacy is another area of emphasis in the 2025-26 Budget. Learning to read is one of the most valuable skills developed during childhood and sets the foundation for lifelong academic success. For this reason, this year’s budget provides additional funding to improve kindergarten to Grade 3 reading levels in Saskatchewan.

    The budget delivers on the challenges of student enrolment growth by investing in new schools with a $191 million school capital budget. This includes ongoing funding for the 21 new or consolidated schools and three major renovations underway across Saskatchewan, as well as funding to begin planning for one new replacement school and preplanning for four new schools in the Saskatoon area.

    Post-Secondary

    The 2025-26 Budget also supports students as they advance into post-secondary education. It provides opportunities that will allow students to pursue post-secondary education close to home while focusing on programs that meet the needs of Saskatchewan’s labour force and provincial economy.

    The Ministry of Advanced Education receives $788 million in this year’s budget, with $1.6 billion invested in post-secondary education over the past two years. As part of their budget, universities, technical schools, Indigenous institutions and regional colleges will receive $718 million in operating and capital funding.

    Health care training is a key priority as part of the province’s Health Human Resources Action Plan. New and expanded programs will help build a stronger health care workforce to meet the needs of Saskatchewan residents, including training seats in areas of critical need. This includes supporting:

    • 60 new training seats this year – more than 900 training seats overall – for nurse practitioners, registered psychiatric nurses and medical radiologic technologists; and
    • Four new training programs that will be ready to accept students in fall 2025 (physician assistant) and fall 2026 (speech-language pathology, occupational therapy, respiratory therapy).

    The 2025-26 Budget also delivers work on strategies to address veterinary services in rural and urban communities. This includes working toward an expansion of the Western College of Veterinary Medicine in the future.

    To help ensure predictable and stable funding for the province’s post-secondary institutions, the 2025-26 Budget extends the current multi-year funding agreement for an additional year. The extension will allow government and post-secondary institutions time to work through the potential impacts of the federal government’s reduction of foreign student visas, before engaging in another multi-year funding agreement.

    Community Safety

    The 2025-26 Budget delivers safer communities across the province by enhancing the presence of law enforcement in Saskatchewan. 

    Over the last two years, $2 billion has been invested into community safety. For the upcoming fiscal year, the Ministry of Corrections, Policing and Public Safety will receive $798 million, including $119 million for the Saskatchewan Public Safety Agency, while the Ministry of Justice and Attorney General will receive $271 million.

    Increases to the Municipal Police Grant Program will help frontline officers respond to more calls for service, while increased funding for the RCMP will support operations in the province and the RCMP First Nations Policing Program. The budget also includes funding for previous commitments for approximately 100 new municipal police officers, 14 new Safer Communities and Neighbourhoods personnel and funding for the Saskatchewan Police College to train more officers in the province.

    This enhanced law enforcement presence extends to the border with the United States. The Saskatchewan Border Security Plan was introduced in January 2025 to mobilize Provincial Protective Services officers to work in partnership with provincial policing services and federal agencies to boost law enforcement near the border.

    To complement the increased presence of law enforcement personnel, the 2025-26 Budget includes funding to improve safety for correctional staff, offenders and the public, as well as address capacity concerns at correctional facilities. 

    Additional investments will be made in interpersonal violence programs and services, including second-stage housing. The budget also delivers funding to create a more accessible court system for municipal bylaw offences and ensuring cases are complete and ready to move to trial more quickly. 

    Delivering More For You

    The 2025-26 Budget delivers on the priorities of affordability, health care, education, community safety and fiscal responsibility. However, it delivers more than that. Some of the other important initiatives in this year’s budget include:

    • A record $362 million in municipal revenue sharing, an increase of $22 million, or 6.3 per cent, from 2024-25.
    • New funding to start multi-year repair and renovation projects for 285 Saskatchewan Housing Corporation-owned units in Saskatoon, Regina and Prince Albert.
    • Funding for expanded homelessness services developed through the Provincial Approach to Homelessness. This includes investments in the Rental Development Program to partner with third-party organizations to develop new supportive housing units for people who need additional support to live independently.
    • Over the past two years, funding from the Ministry of Social Services has created 120 new emergency shelter spaces, 155 new supportive housing spaces, new street outreach services and an expanded income assistance mobile workforce serving clients on-site at more than 30 community-based organization locations.
    • A grant to the Food Banks of Saskatchewan to fulfill the Government of Saskatchewan’s two-year commitment to help families and food banks with high food costs.
    • A $20 million increase across government in funding for community-based organizations.
    • The creation of a new Saskatchewan Young Entrepreneur Bursary, which is an annual grant of $285,000 for a maximum of 57 bursaries distributed to support youth entrepreneurship in the province.
    • The creation of a new Small and Medium Enterprise Investment Tax Credit, a 45 per cent non-refundable tax credit for individuals or corporations that invest in the equity of an eligible Saskatchewan small and medium size enterprise.
    • Introduction of the Low Productivity and Reactivation Oil Well Program to encourage industry to make new capital investments in low-producing and inactive horizontal oil wells.
    • Investment in capital projects that will improve our provincial transportation system, including:
      • Passing lanes for Highway 10 between Fort Qu’Appelle and Melville, and Highway 17 north of Lloydminster;
      • Highway 39 twinning at Weyburn; 
      • Ongoing corridor improvements on Highway 5 east of Saskatoon; and 
      • Improvements of more than 1,000 kilometres of provincial highways.

    Fiscal Responsibility

    The surplus forecast for the 2025-26 Budget leaves Saskatchewan in one of the strongest financial positions among provinces.

    The surplus is driven by forecast revenues of $21.1 billion, an increase of $1.2 billion, or 6 per cent, compared to last year. Total expense is projected to be $21.0 billion, which is an increase of $909 million, or 4.5 per cent, from the 2024-25 Budget.

    Non-Renewable Resources revenue accounts for 12.8 per cent of total expense in this year’s budget. 

    Another sign of Saskatchewan’s strong financial position is the province’s net debt position, which remains the second lowest net debt-to-GDP ratio among Canadian provinces at 14.6 per cent. 

    The Government of Saskatchewan’s prudent financial management is also reflected in the province’s credit ratings. Saskatchewan currently maintains the second-best credit rating among the provinces when the ratings from the three major agencies – Moody’s Investors Service, Morningstar DBRS and S&P Global – are considered.

    Saskatchewan’s strong financial position in this year’s budget is buoyed by the provincial economy’s solid performance in 2024. Building upon this momentum, the Saskatchewan economy is expected to continue to grow in 2025 with real GDP projected to grow by 1.8 per cent according to the average private-sector forecast. 

    For more information on the 2025-26 Provincial Budget, please review the budget materials and ministry news releases on saskatchewan.ca/budget. 

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    For more information, contact:

    MIL OSI Canada News –

  • MIL-OSI Canada: 2025-26 Health Budget Delivers Record Funding for Better Patient Access, More Responsive Care

    Source: Government of Canada regional news

    Released on March 19, 2025

    The 2025-26 Budget delivers on key health care commitments including better access to acute and emergency care, team-based primary care and continuing care services. This year’s budget also supports progress on the Mental Health and Addictions Action Plan, accelerates health care workforce hiring and continues building on future infrastructure projects, including new hospitals, long-term care homes and additional urgent care centres. 

    The record Ministry of Health budget is $8.07 billion, an increase of $484.6 million, or 6.4 per cent, over the previous year. The Saskatchewan Health Authority will receive a $261.1 million increase, or 5.6 per cent, for a total record budget of $4.94 billion. 

    “This year’s budget delivers on key commitments to deliver more timely access to our health care system,” Health Minister Jeremy Cockrill said. “Our government will provide significant budget investments to increase access to acute care in Saskatoon, perform more surgeries, increase access to specialized diagnostic imaging and invest in programs that connect all Saskatchewan residents to a primary health care provider.

    “This budget also expands glucose monitoring coverage to vastly improve quality of life and ease financial impacts for nearly 10,000 Saskatchewan people with diabetes. We will open the highly anticipated Breast Health Centre in Regina to provide a full range of services and wraparound support for women experiencing a challenging diagnosis.”

    The 2025-26 Budget provides better access to acute health care services for safer, more responsive patient care with total investment increases of $88.1 million. 

    Plans to ramp up surgical volumes this year through a $15.1 million investment increase will kickstart ambitious plans to perform 450,000 procedures over four years and reduce surgical wait times. This investment will introduce the innovative robot-assisted surgery program at Pasqua Hospital in Regina and enhance other services to meet this aggressive four-year surgical target.

    Optimizing space and realigning services at Saskatoon City Hospital will help address capacity pressures in Saskatoon with a multi-phased approach to open more than 100 acute care beds. This $30.0 million investment will support physical space upgrades to expand acute care and convert outpatient and other spaces to inpatient units.

    Emergency Medical Services (EMS) will receive a $6.6 million increase for additional paramedics in the system and Diagnostic Imaging will receive a $6.0 million boost to increase specialized medical imaging volumes to continue gains made in patient wait times.

    Other 2025-26 acute care investment increases include: 

    • $7.6 million for enhanced and expanded pediatric care, including specialist recruitment in areas of endocrinology, rheumatology and other specialties. The budget will also support additional multidisciplinary staff and physicians in pediatric gastroenterology, allergy and immunology, and cardiology programs, as well as enhancements to physician staffing at the Neonatal Intensive Care Unit in Prince Albert;
    • $6.6 million for HealthLine 811’s Virtual ER Physician Program to expand support to a minimum of 25 small-to-medium rural Emergency Department locations;
    • $4.3 million to bolster the province’s kidney health programs to better meet patient demand for hemodialysis services closer to home;
    • $2.0 million for enhanced laboratory medicine services; 
    • $1.9 million to complete and fully staff the new Breast Health Centre in Regina; and
    • $1.9 million to support operational costs for the Regina Urgent Care Centre. 

    “Rural and northern Saskatchewan receive important focus in this budget with extensive kidney health enhancements and staffing for satellite hemodialysis services in rural locations, including Meadow Lake, North Battleford, Tisdale and Fort Qu’Appelle,” Rural and Remote Minister Lori Carr said. “A virtual ER physician program demonstrating great success will expand to more rural communities at risk of service disruptions this year, and increases to EMS will improve response times and stabilize services across the province.” 

    The 2025-26 Budget will deliver better and more prompt patient access to team-based primary care settings and preventative care initiatives to meet the health care needs of Saskatchewan people with a $42.4 million increased investment. 

    A $5.0 million increase will support primary care improvements, including the expansion of a new model of care called Patient Medical Homes to new communities following a successful pilot in Swift Current that demonstrated better access to primary care for patients. 

    In addition, a $7.1 million increase is provided for immunizations and program enhancements. Beginning April 1, 2025, nearly 10,000 Saskatchewan patients managing diabetes will benefit from a $23.0 million investment for a Glucose Monitoring Expansion Program for young adults aged 25-and-under and seniors aged 65-plus. 

    The 2025-26 Budget also includes new funding to support the transition to HPV self-screening for cervical cancer, make progress on a provincial lung cancer screening program, lower breast cancer screening eligibility to age 43 and support operations to add a second mobile mammography bus that will increase capacity for women in rural and northern Saskatchewan. 

    The 2025-26 Budget will further provincial commitments to accelerate the hiring and growth of the health care professional workforce in the third year of the ambitious, multi-year Health Human Resources Action Plan to recruit, train, incentivize and retain employees.

    The College of Medicine will add 10 more in-province physician training seats for family medicine, anesthesia, plastic surgery and other specialties, for a total of 150 provincial seats, as part of a $7.4 million increase. 

    Supports for 65 new and enhanced permanent full-time nursing positions in 30 rural and northern locations across Saskatchewan for improved nursing stability and reduced reliance on contract nurses will receive a $4.9 million increase.

    In addition, this year’s budget includes an additional $94.6 million increase for physician services to support the province’s efforts to recruit and retain doctors, including funding for negotiated Saskatchewan Medical Association fee increases, increased utilization of services and additional physicians. 

    This year’s budget will continue building momentum on strategic investments and successful programming within the multi-year Mental Health and Addictions Action Plan to improve patient access to professionals and services, delivering the help and support needed to overcome mental health and addictions challenges. This budget provides new capital funding to expand Complex Needs Emergency Shelters into new communities.

    Saskatchewan residents will see steady and significant progress throughout the province on multiple infrastructure projects, such as new hospital builds and long-term care facilities, with a total record capital investment of $656.9 million, a $140.1 million increase over last year.

    Major infrastructure investments include:

    • $322.4 million for Prince Albert Victoria Hospital construction;
    • $40.0 million for Regina Long-Term Care Specialized Beds construction;
    • $33.8 million for construction of the La Ronge Long-Term Care facility;
    • $24.4 million for Weyburn General Hospital construction; 
    • $10.0 million for Grenfell Long-Term Care project construction; and
    • $3.0 million to advance the Saskatoon Urgent Care Centre (UCC), in partnership with Ahtahkakoop Cree Developments.

    Due to the success of Regina’s UCC model in reducing emergency room pressures and providing access to thousands of patients, planning is underway for additional UCCs in Moose Jaw, Prince Albert and North Battleford, as well as second UCCs in Regina and Saskatoon. 

    Additional funding will continue to support ongoing projects, including the Yorkton Regional Health Centre, Rosthern Hospital, Royal University Hospital’s ICU Expansion, Saskatchewan Cancer Agency’s (SCA) Saskatoon Patient Lodge, Esterhazy Integrated Care Facility and long-term care projects in several communities including Regina, the Battlefords, Watson and Estevan.

    Other capital investments include leading-edge and upgraded technology, equipment and innovations to shape the future of health care.

    The 2025-26 Budget will ensure Saskatchewan people receive strengthened continuing care support to remain at home and within their communities for as long as possible. A $7.1 million increase will fund care for all ages – from children with complex medical needs to seniors – to support individuals of all ages and patients in the most appropriate community setting.

    The SCA will continue to deliver access to world-class care with additional funding toward oncology drugs, therapies and treatment options. The SCA will see an increase of $30.4 million, or 12.2 per cent, for a total record budget of $279.3 million. 

    The 2025-26 Budget also delivers on the Government of Saskatchewan’s commitment to provide a Fertility Treatment Tax Credit to improve affordability for individuals and couples to access fertility treatments.

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    For more information, contact:

    MIL OSI Canada News –

  • MIL-OSI New Zealand: Dairy and Business – Fonterra’s momentum delivers strong FY25 interim earnings and dividend

    Source: Fonterra

    • Operating profit: NZ $1,107 million, up 16%  
    • Profit after tax: NZ $729 million, up 8%  
    • Earnings per share: 44 cents per share, up 10% 
    • Return on capital: 10.2% down from 13.4%  
    • Interim dividend, fully imputed: 22 cents per share 
    • Forecast Farmgate Milk Price range narrows: NZ $9.70 – $10.30 per kgMS 
    • Forecast milk collections: 1,510 million kgMS, up 2.7%   
    • FY25 full year forecast earnings range: 55-75 cents per share.

    Fonterra Co-operative Group Ltd today announced a positive FY25 interim result as the Co-op continues to make good progress on implementing its strategy.

    Fonterra has reported a half year Profit after Tax of $729 million, earnings of 44 cents per share and a decision to pay an interim dividend of 22 cents per share, alongside a 2024/25 season forecast Farmgate Milk Price midpoint of $10.00 per kgMS.    

    Fonterra CEO Miles Hurrell says it’s pleasing to be able to deliver these results for farmer shareholders and unit holders.

    “We’re focusing on driving value which includes delivering strong financial performance while achieving the highest sustainable Farmgate Milk Price,” says Mr Hurrell.  

    “At the same time, we’re looking ahead as we implement our strategy and continue to invest for the future. We have commenced projects to unlock manufacturing production capacity for our Ingredients and Foodservice channels, with site works now underway at Studholme for high-value protein capacity and at Edendale for a new UHT cream plant.

    “We’re also continuing to invest to future proof our operations and supply chain network, with work underway on a new Whareroa coolstore and plans for decarbonisation projects at Clandeboye, Edendale, Edgecumbe and Whareroa to secure energy supply and reduce the Co-op’s emissions.

    “As we focus on delivering the strongest farmer offering, we have announced new funding for farmers with lower emissions milk and expanded the Fixed Milk Price programme that farmers can use to get more certainty around the Farmgate Milk Price,” says Mr Hurrell.  

    Farmgate Milk Price

    Fonterra is committed to delivering the highest sustainable Farmgate Milk Price to farmers. For the current season, the forecast Farmgate Milk Price range is narrowing from $9.50-$10.50 per kgMS to $9.70-$10.30, with the midpoint holding at $10.00 per kgMS.  

    “We’re seeing good demand for our quality products, and our teams have worked hard to optimise our product portfolio to capture value from the market conditions, leaving us well contracted for the season.  

    “We have also optimised the current season’s Advance Rate Schedule to get cash to farmers sooner, underpinned by our balance sheet strength.

    “In terms of milk flows, our forecast milk collections for the year are up 2.7% on this time last year to 1,510 million kgMS. This follows favourable pasture growth across most of New Zealand earlier in the season, noting many parts of the country are currently experiencing very dry conditions,” says Mr Hurrell.

    Business performance  

    Fonterra’s strong half year performance was underpinned by an optimised product mix, designed to capture value across the Co-op’s sales channels.  

    “Our robust first half performance saw earnings growing alongside the strong Farmgate Milk Price, reflecting the strength of our core business.  

    “Ingredients channel performance has been a highlight this half, with sales volume down 3.9% and operating profit up $229 million to $696 million, reflecting better margins and improved product mix.  

    “Our Foodservice channel has seen sales volume growth of 8.3% this half, with Q2 gross margins significantly up on Q1 as pricing adjusted to the higher milk price. Foodservice operating profit for the half was a healthy $230 million, compared to the record high of $342 million in FY24 when input costs were much lower.  

    “The Consumer channel saw good sales volumes, up 8.5%, and margin growth, despite the higher Farmgate Milk Price,with operating profit largely flat on prior period at $173 million.

    “Meanwhile, our IT & Digital transformation project, a once in a generation replacement of the Co-op’s Enterprise Resource Planning software, is progressing well and remains on budget. The project is expected to cost NZ $450-500 million across six years and annual expenditure reaches its peak in FY25 at $130 million. This spend is included in our previously announced earnings forecast and despite this spend, our FY25 results remain strong,” says Mr Hurrell.  

    Outlook

    We have recently increased Fonterra’s FY25 full year forecast earnings range to 55-75 cents per share*, which reflects the underlying strength of our core business as well as the resilience in our Consumer channel.  

    “The Co-op is in a great shape, with milk collections, the forecast Farmgate Milk Price and earnings performance all up on this time last year.  

    “As we look to the balance of the year ahead, we’re focused on maintaining this momentum in performance, while progressing delivery of our strategy, including the dual-track Consumer divestment process which is on track as planned,” says Mr Hurrell.  

    Note:  *This forecast earnings range reflects Fonterra’s underlying earnings before any deduction for forecast costs associated with the Consumer divestment. When the Fonterra Board considers the full year dividend for FY25, it will consider, amongst other factors, the nature of the underlying earnings and whether it is appropriate to include any costs associated with asset sales in the financial year.

    MIL OSI New Zealand News –

  • MIL-OSI Asia-Pac: Ministry of Railways Advances Infrastructure with Dedicated Freight Corridors, Modernization Initiatives, and Enhanced Freight Capacity

    Source: Government of India (2)

    Ministry of Railways Advances Infrastructure with Dedicated Freight Corridors, Modernization Initiatives, and Enhanced Freight Capacity

    Both the Corridors Near Completion: 96.4% of EDFC & WDFC Now Operational

    Posted On: 19 MAR 2025 5:01PM by PIB Delhi

    Ministry of Railways has taken up construction of two Dedicated   Freight   Corridors (DFC) viz.   Eastern   Dedicated    Freight Corridor (EDFC) from Ludhiana to Sonnagar (1337 Km) and the Western Dedicated Freight Corridor (WDFC) from Jawaharlal Nehru Port Terminal (JNPT) to Dadri (1506 Km). Out of total 2843 Km, 2741 Route Kilometers (96.4%) has been commissioned and operational. The work in balance section has been taken up.

    Ministry of Railways has undertaken the work of preparation of Detailed Project Reports (DPR) for following three (03) new Dedicated Freight Corridors (DFCs).

    (i) East-Coast Corridor: Kharagpur to Vijayawada

    (ii) East-West corridor:

    (a) Palghar-Bhusawal-Nagpur-Kharagpur-Dankuni

    (b) Rajkharsawan – Kalipahari – Andal

    (iii) North-South Sub-corridor: Vijayawada-Nagpur–Itarsi

    DPRs of above three corridors are under examination.

    None of the above three DFCs have been sanctioned yet. The DFC Projects are highly capital intensive and the final decision regarding the sanction of any DFC Project depends upon many factors such as technical feasibility, financial & economic viability, traffic demand and availability of funds & financial options etc.

    Dedicated Freight Corridor (DFC) Project will have positive impact on transportation and logistics sector as it will enable enhanced movement of Double Stack Container (DSC) trains, higher axle load trains, faster access of northern hinterland by Western Ports and development of new terminals/linkages with industries along the DFC. The Eastern DFC will mostly cater to mineral traffic from Eastern India. These developments will enable reduction in logistic cost.

    DFC has contributed to creating additional paths on the conventional network by diverting freight traffic to EDFC and WDFC. Traffic on DFC has increased from 247 average trains per day in 2023-24 to 352 average trains per day in 2024-25 (till Feb.2025). In Feb. 2025, 371 average trains per day were run. As a result, Railways have been able to run additional goods and coaching services over its network with better punctuality. Due to the increase in services, both freight and coaching, Indian Railways’ earnings from train services have gone up.

    Modernisation and upgradation of railway infrastructure is a need based and ongoing process subject to operational requirement, technical feasibility, commercial viability, resource availability, etc.

    A number of works have been taken up to modernize and upgrade railway infrastructure including rolling stock and signaling system. Some of them are as under:

    1. Rashtriya Rail Sanraksha Kosh (RRSK) has been introduced in 2017-18, for replacement/renewal/upgradation of critical safety assets, with a corpus of ₹1 lakh crore for five years. Currency of the Fund has been extended for another five-year term beyond 2021-22 with GBS support of ₹45,000 Cr. An outlay of ₹ 12800 Cr has been provided in RE 2024-25.
    2. Electrical/Electronic Interlocking Systems with centralized operation of points and signals have been provided at 6623 stations up to 28.02.2025.
    3. Interlocking of Level Crossing (LC) Gates has been provided at 11089 level Crossing Gates up to 28.02.2025 for enhancing safety at LC Gates.
    4. Block Proving Axle Counters (BPACs) systems have been provided on 6126 Block Sections up to 28.02.2025.
    5.  Automatic block Signaling (ABS) has been provided at 5221 Route Kms up to 28.02.2025.
    6. Indian Railway has also gone for implementation of advance technology system ‘Kavach’ as an Automatic Train Protection (ATP) system. Kavach is indigenously developed Automatic Train Protection (ATP) system which required safety certification of highest order. Kavach has also been adopted as a National ATP system in July 2020.
    7. Crew Video and Voice Recording System (CVVRS) has been provided in Locomotives for post event analysis
    8. Head on Generation (HOG) scheme has been implemented in passenger locomotives for feeding electric supply to LHB coaches for train lighting and air conditioning thereby reducing carbon emission, noise level and consumption of fossil fuels.
    9. Railways has taken long term plan to acquire new technology 12000 HP electric locomotives and 9000 HP electric locomotives for freight operation.  For manufacturing new technology based 9000

    High Horse Power Electric Freight Locomotives, a manufacturing unit, having modern World class manufacturing facilities, sanctioned at Dahod.

    1. With a view to increase throughput, RDSO has issued technical specification for modern wagons (Modern Open Wagon & Modern Brake Van). In the recent past, multi-purpose and higher carrying capacity wagons have been designed by RDSO. These wagons will help in better utilization of rolling assets and increased throughput per rake.
    2. Introduction of IGBT based 3-phase propulsion system with regenerative braking in Electrical Multiple Unit (EMU) trains, Mainline Electrical Multiple Unit (MEMU) trains, Kolkata Metro rakes and Electric Train Sets.
    3. Provision of 750 V external power supply at washing/sick lines for maintenance and testing of LHB coaches resulting in significant saving of diesel.
    4. In order to modernize and upgrade the track structure, the steps

    taken include laying of track structure consisting of 60 kg/90 Ultimate Tensile Strength (UTS) rails on Pre-stressed Reinforced Concrete (PSC) sleepers with elastic fastening, laying of 130 meter/260 meter longer rails to avoid welding of joints, adoption of better welding technology for rails i.e. Flash Butt Welding, use of thick web switches and Weldable Cast Manganese Steel (WCMS) crossings, using improved fittings, maintenance of track with the help of track machines, Ultrasonic Flaw Detection (USFD) testing of rails, etc.

    1. In order to facilitate easy movement of elderly, sick, differently abled passengers and for smooth access to platforms of railway stations and for ease of movement, Lifts and Escalators are provided depending on the relative priority of stations, availability of resources and techno-economic feasibility.

    The Average Annual Budget allocation for New Line, Gauge Conversion and Doubling Projects across Indian Railways is given below:

     

    Period

    Average Outlay

    Increase w.r.t. average allocation of 2009-14

    2009-14

    ₹ 11,527 crore/year

    –

    2024-25

    68,634 crores

    Nearly 6 times

     

    To increase the freight handling capacity in IR, ‘Gati Shakti Multi- Modal Cargo Terminal (GCT)’ policy has been launched on 15.12.2021 with the objective of increasing investment from industry in development of additional terminals for handling rail cargo. GCTs are also equipped with facility of mechanized loading / unloading which will, contribute in reduction of transit time and costs for business. So far, 97 GCTs have been commissioned which enable additional freight traffic for Railways. Further In-principle approval (IPAs) for 277 proposals for Gati Shakti Cargo Terminals have already been issued.

    Freight loading and revenue during the last five years: –

     

    Year

    Freight Loading
    (In million Tonnes)

    Revenue Earning from Goods

    (₹ in Crore)

    2019-2024

    6952.3

    7,02,372.29

     

    This information was given by the Union Minister of Railways, Information & Broadcasting and Electronics & Information Technology Shri Ashwini Vaishnaw in a written reply in Lok Sabha today.

    *****

     

    Dharmendra Tewari/Shatrunjay Kumar

    (Release ID: 2112843) Visitor Counter : 15

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: BCCL Achieves Historic Milestone with Successful Monetization of 2 MTPA Dugda Coal Washery Paving the Way for Energy Self-reliance

    Source: Government of India

    Posted On: 19 MAR 2025 4:47PM by PIB Delhi

    Under the guidance of Ministry of Coal, Bharat Coking Coal Limited (BCCL), a CIL subsidiary has achieved a historic milestone by successfully monetizing the 2 MTPA Dugda Coal Washery located in Bokaro, Jharkhand. This first-ever monetization of a coal washery in India marks a transformative step in coal sector reforms, reinforcing the country’s commitment to enhancing efficiency, asset optimization, and energy security.

    The monetization of the Dugda Coal Washery is expected to have a significant impact on energy sector in India. With improved coal washing capabilities and enhanced beneficiation processes, this initiative will contribute to higher efficiency in domestic coal utilization. More importantly, it will play a crucial role in reducing India’s dependence on imported coking coal, leading to foreign exchange savings and reinforcing the country’s vision of Atmanirbhar Bharat.

    Strategic Importance of the Monetization:

    •           Optimizing Underutilized Assets

    •           Encouraging Private Participation

    •           Enhancing Coal Beneficiation:

    •           Revenue Generation:

    This landmark achievement is part of the broader reforms initiated by the Ministry of Coal to modernize Coal sector in India and ensure the optimal utilization of its vast coal resources. By facilitating the participation of leading industry players, the Ministry is fostering a competitive and transparent ecosystem that encourages technological advancements, operational efficiency, and long-term sustainability in coal processing.

    The successful auction of BCCL’s Dugda Coal Washery represents a significant shift towards a more dynamic and efficient coal sector, aligning with the Government’s policy of asset monetization. By leveraging private sector expertise and investment, the Ministry of Coal aims to drive efficiency, reduce wastage, and maximize the value of coal sector infrastructure.

    Beyond its impact on the coal sector, the monetization of the Dugda Coal Washery is expected to generate significant economic benefits for the region. Involvement of private sector leaders will not only improve supply chain efficiency, enhance coal-washing capabilities but also create employment opportunities, and boost industrial growth in Jharkhand and adjoining areas.

    The Ministry of Coal remains committed to progressive reforms, ensuring India’s coal sector plays a key role in national energy security and sustainability. This historic achievement reaffirms dedication to innovation, efficiency, and sustainable growth. Moving forward, the Ministry will continue optimizing coal assets, expanding domestic coal washing capacity, and reducing import dependency. Coal sector in India is well-positioned to contribute significantly to the nation’s economic progress and energy self-sufficiency.

    ****

    Shuhaib T

    (Release ID: 2112823) Visitor Counter : 58

    MIL OSI Asia Pacific News –

  • MIL-OSI USA: ESA Previews Euclid Mission’s Deep View of ‘Dark Universe’

    Source: NASA

    With contributions from NASA, the mission is looking back into the universe’s history to understand how the universe’s expansion has changed. 
    The Euclid mission — led by ESA (European Space Agency) with contributions from NASA — aims to find out why our universe is expanding at an accelerating rate. Astronomers use the term “dark energy” to refer to the unknown cause of this phenomenon, and Euclid will take images of billions of galaxies to learn more about it. A portion of the mission’s data was released to the public by ESA released on Wednesday, March 19.
    This new data has been analyzed by mission scientists and provides a glimpse of Euclid’s progress. Deemed a “quick” data release, this batch focuses on select areas of the sky to demonstrate what can be expected in the larger data releases to come and to allow scientists to sharpen their data analysis tools in preparation.
    The data release contains observations of Euclid’s three “deep fields,” or areas of the sky where the space telescope will eventually make its farthest observations of the universe. Featuring one week’s worth of viewing, the Euclid images contain 26 million galaxies, the most distant being over 10.5 billion light-years away. Launched in July 2023, the space telescope is expected to observe more than 1.5 billion galaxies during its six-year prime mission.

    By the end of that prime mission, Euclid will have observed the deep fields for a total of about 40 weeks in order to gradually collect more light, revealing fainter and more distant galaxies. This approach is akin to keeping a camera shutter open to photograph a subject in low light.
    The first deep field observations, taken by NASA’s Hubble Space Telescope in 1995, famously revealed the existence of many more galaxies in the universe than expected. Euclid’s ultimate goal is not to discover new galaxies but to use observations of them to investigate how dark energy’s influence has changed over the course of the universe’s history.
    In particular, scientists want to know how much the rate of expansion has increased or slowed down over time. Whatever the answer, that information would provide new clues about the fundamental nature of this phenomenon. NASA’s Nancy Grace Roman Space Telescope, set to launch by 2027, will also observe large sections of the sky in order to study dark energy, complementing Euclid’s observations.

    Looking Back in Time
    To study dark energy’s effect throughout cosmic history, astronomers will use Euclid to create detailed, 3D maps of all the stuff in the universe. With those maps, they want to measure how quickly dark energy is causing galaxies and big clumps of matter to move away from one another. They also want to measure that rate of expansion at different points in the past. This is possible because light from distant objects takes time to travel across space. When astronomers look at distant galaxies, they see what those objects looked like in the past.
    For example, an object 100 light-years away looks the way it did 100 years ago. It’s like receiving a letter that took 100 years to be delivered and thus contains information from when it was written. By creating a map of objects at a range of distances, scientists can see how the universe has changed over time, including how dark energy’s influence may have varied.
    But stars, galaxies, and all the “normal” matter that emits and reflects light is only about one-fifth of all the matter in the universe. The rest is called “dark matter” — a material that neither emits nor reflects light. To measure dark energy’s influence on the universe, astronomers need to include dark matter in their maps.  
    Bending and Warping
    Although dark matter is invisible, its influence can be measured through something called gravitational lensing. The mass of both normal and dark matter creates curves in space, and light traveling toward Earth bends or warps as it encounters those curves. In fact, the light from a distant galaxy can bend so much that it forms an arc, a full circle (called an Einstein ring), or even multiple images of the same galaxy, almost as though the light has passed through a glass lens.
    In most cases, gravitational lensing warps the apparent shape of a galaxy so subtly that researchers need special tools and computer software to see it. Spotting those subtle changes across billions of galaxies enables scientists to do two things: create a detailed map of the presence of dark matter and observe how dark energy influenced it over cosmic history.
    It is only with a very large sample of galaxies that researchers can be confident they are seeing the effects of dark matter. The newly released Euclid data covers 63 square degrees of the sky, an area equivalent to an array of 300 full Moons. To date, Euclid has observed about 2,000 square degrees, which is approximately 14% of its total survey area of 14,000 square degrees. By the end of its mission, Euclid will have observed a third of the entire sky.
    The dataset released this month is described in several preprint papers available today. The mission’s first cosmology data will be released in October 2026. Data accumulated over additional, multiple passes of the deep field locations will also be included in the 2026 release.
    More About Euclid
    Euclid is a European mission, built and operated by ESA, with contributions from NASA. The Euclid Consortium — consisting of more than 2,000 scientists from 300 institutes in 15 European countries, the United States, Canada, and Japan — is responsible for providing the scientific instruments and scientific data analysis. ESA selected Thales Alenia Space as prime contractor for the construction of the satellite and its service module, with Airbus Defence and Space chosen to develop the payload module, including the telescope. Euclid is a medium-class mission in ESA’s Cosmic Vision Programme.
    Three NASA-supported science teams contribute to the Euclid mission. In addition to designing and fabricating the sensor-chip electronics for Euclid’s Near Infrared Spectrometer and Photometer (NISP) instrument, JPL led the procurement and delivery of the NISP detectors as well. Those detectors, along with the sensor chip electronics, were tested at NASA’s Detector Characterization Lab at Goddard Space Flight Center in Greenbelt, Maryland. The Euclid NASA Science Center at IPAC (ENSCI), at Caltech in Pasadena, California, supports U.S.-based science investigations, and science data is archived at the NASA / IPAC Infrared Science Archive (IRSA). JPL is a division of Caltech.
    For more information about Euclid go to:
    science.nasa.gov/mission/euclid/
    News Media Contact
    ESA Media Relationsmedia@esa.int
    Calla CofieldJet Propulsion Laboratory, Pasadena, Calif.626-808-2469calla.e.cofield@jpl.nasa.gov
    2025-039

    MIL OSI USA News –

  • MIL-OSI USA: Governor Newsom proclaims Developmental Disabilities Awareness Month

    Source: US State of California 2

    Mar 19, 2025

    Sacramento, California – Governor Gavin Newsom today issued a proclamation declaring March 2025, as Developmental Disabilities Awareness Month.

    The text of the proclamation and a copy can be found below:

    PROCLAMATION

    California is proud to join states around the country, raising awareness about the many ways in which people with intellectual and developmental disabilities contribute to strong, diverse communities across our state. This March, we shine a light on the work underway to drive the inclusion of people with intellectual and developmental disabilities and reaffirm our collective commitment to breaking down the barriers they face in connecting to the communities where they live.

    Over the last decade, California has worked to support people with intellectual and developmental disabilities such as Autism and Down Syndrome with the resources they need to live and thrive in the community. We are the only state that provides developmental services as an entitlement, and we prioritize home and community-based care – avoiding institutional settings. We’ve increased the rates for our direct service professionals to keep and attract the people who provide vital support. We’re also supporting strong career pathways for those with intellectual and developmental disabilities through investments in education, new laws encouraging earlier career planning, and ending sub-minimum wage as of this last January.

    This year, California’s Health and Human Services Agency (CalHHS) released a draft of the Master Plan for Developmental Services: A Community Driven Vision to leverage investments and strengthen quality, access, and sustainability for all consumers and families – no matter their demographic groups, geographic region, or socioeconomic status. The Master Plan recognizes that California’s developmental services system is deeply connected to other health and social systems. It seeks to create and strengthen bridges between critical systems across CalHHS and other systems and services, including education, housing, employment, transportation, and public safety.

    We are taking a whole-of-government approach, one driven by communities themselves and delivered in partnership with the private sector, to realize a more equitable, person-centered, and data-driven developmental services system. We’ll continue working across sectors and disciplines to ensure that all Californians with intellectual and developmental disabilities can thrive and contribute to all facets of life in their neighborhoods and communities. And this month, we also take the opportunity to celebrate the value and gifts that people with intellectual and developmental disabilities contribute to the Golden State.

    NOW THEREFORE I, GAVIN NEWSOM, Governor of the State of California, do hereby proclaim March 2025, as “Developmental Disabilities Awareness Month.”

    IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 17th day of March 2025.

    GAVIN NEWSOM
    Governor of California

    ATTEST:
    SHIRLEY N. WEBER, Ph.D.
    Secretary of State

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  • MIL-OSI USA: California seizes over 650,000 fentanyl pills so far in 2025

    Source: US State of California 2

    Mar 19, 2025

    What you need to know: In the first two months of 2025, California National Guard’s Counter Drug Task Force has seized 1,045 pounds of illicit fentanyl with a street valuation of $6.8 million.

    SACRAMENTO – Continuing an enhanced focus in 2025 to combat the scourge of illegal fentanyl trafficking, in January and February, the California National Guard (CalGuard) has seized 1,045 pounds and more than 650,000 pills containing fentanyl, with a street valuation of more than $6.8 million. 

    Through their Counter Drug Task Force operations, the Cal Guard Task Force members have been strategically deployed statewide, including at ports of entry, to combat transnational criminal organizations and trafficking illegal narcotics like fentanyl, in support of federal, state, and local law enforcement partners.

    “By disrupting the trafficking of the 1,045 pounds of fentanyl so far this year, Cal Guard’s Counter Drug Task Force continues to save countless lives across our state. I cannot thank them enough for their support in keeping deadly fentanyl out of our communities.”

    Governor Gavin Newsom

    Service members helped confiscate 488 pounds of powder-laced fentanyl and 331,069 pills of this dangerous drug in February, adding to the efforts in January. 

    In addition, Cal Guard service members continue to transform drug prevention in elementary, middle, and high schools statewide through the Task Force’s Drug Demand Reduction Outreach program. Since October 2024, servicemembers visited 112 schools across the state and engaged with 57,442 students. By conducting in-person outreach and understanding students’ beliefs about their own health using a Health Belief Model, Cal Guard is implementing an impactful initiative in the fight against opioid abuse.

    Latest laboratory testing from the federal Drug Enforcement Agency indicates five out of 10 pills tested in 2024 contain a potentially deadly dose of fentanyl, which is down from seven of 10 pills in 2023.

    How we got here

    In 2024, Governor Newsom doubled down on the deployment of the Cal Guard’s Counterdrug Task Force by more than doubling the number of service members supporting fentanyl interdiction, and seizing other drugs, at California ports of entry to nearly 400. Fentanyl is primarily smuggled into the country by U.S. citizens through ports of entry. 

    Cal Guard’s coordinated drug interdiction efforts in the state are funded in part by California’s $60 million investment over four years to expand Cal Guard’s work to prevent drug trafficking by transnational criminal organizations. This adds to the Governor’s efforts to address fentanyl within California, including by cracking down on fentanyl in communities across the state, including San Francisco.
     

    Addressing the opioid crisis

    The state has launched various initiatives in recent years to combat illicit opioids through the Governor’s Master Plan for Tackling the Fentanyl and Opioid Crisis, which provides a comprehensive framework to support overdose prevention efforts, hold the opioid pharmaceutical industry accountable, crack down on drug trafficking, and raise awareness about the dangers of opioids like fentanyl.

    Recently, through funding designated by the Governor in the 2022-23 budget to develop the Fentanyl Enforcement Program, the Department of Justice recently announced a significant fentanyl bust worth $55 million and leading to the arrest of three major fentanyl traffickers. 

    The Campus Opioid Act, signed by Governor Newsom in 2022, requires that every public college campus in California distribute a federally approved opioid overdose reversal medication like naloxone, and include information about opioid overdoses in their orientation process. Building on this effort, the Governor last year signed AB 2429, requiring that fentanyl education be included in high school health classes starting in the 2026-27 school year.

    Serving as a one-stop tool for Californians seeking resources for prevention and treatment, the website opioids.ca.gov provides information on how California is working to hold Big Pharma and drug traffickers accountable in this crisis.

    The public education campaign Facts Fight Fentanyl informs Californians about the dangers of fentanyl and how to prevent overdoses and deaths. This effort will provide critical information about fentanyl and life-saving tools such as naloxone. 

    Through the Naloxone Distribution Project (NDP), over-the-counter CalRx®-branded naloxone is now available across the state. The CalRx®-branded over-the-counter (OTC) naloxone HCL nasal spray, 4 mg, is available for free to eligible organizations through the state and for sale for $24 per twin-pack through Amneal. Since 2018, there have been over 334,000 reversals reported from NDP naloxone since 2018.

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    Mar 18, 2025

    News Sacramento, California – Governor Gavin Newsom today issued a proclamation declaring March 17, 2025 through March 23, 2025, as Women’s Military History Week. The text of the proclamation and a copy can be found below: PROCLAMATION From the Revolutionary War to…

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  • MIL-OSI USA: While other states chase Hollywood, California locks in record-breaking film slate

    Source: US State of California 2

    Mar 19, 2025

    What you need to know: 51 projects — including 46 independent features — will generate nearly $580 million in economic activity and employ over 6,490 cast and crew thanks to California’s Film & Television Tax Credit Program.

    HOLLYWOOD — Governor Newsom today announced the California Film Commission selected 51 film projects for the latest round of awards under the California Film & Television Tax Credit Program. This batch represents the most projects ever approved in one application window.

    While other states try to chase California’s on-screen success, everyone knows the Golden State is the entertainment capital of the world – built through decades of innovation and hard work. Today’s awards are vital to keeping production where it belongs – generating thousands of good-paying jobs ‘below the line,’ and supporting the local businesses that rely on a thriving film and television industry.

    Governor Gavin Newsom

    Why this matters

    Collectively, these productions are estimated to spend $346.9 million in wages, generate approximately $577.8 million in qualified expenditures statewide, and are expected to hire 6,490 cast and crew members, with 37,000 background performers hired (measured in days worked).

    This latest allocation round includes an impressive slate of 46 independent and 5 non-independent films, reflecting an unprecedented regional diversity and offering significant economic benefits across the state with 31 projects planning to film in various areas beyond Los Angeles. These projects plan to film more than 360 days in Contra Costa, Oakland, Ojai, Merced, and San Diego Counties, among others.

    “The devastating wildfires in Southern California have presented unprecedented challenges for our film and television community, disrupting more than a dozen productions within our Film & Television Tax Credit Program alone and impacting countless more,” said Colleen Bell, Director of the California Film Commission. “These disruptions have impacted employment for thousands of cast and crew members, affecting everything from production schedules and financing to housing and location access. Now more than ever, this program is a critical tool to help productions recover, keeping jobs and investment here in our state, all while ensuring that California remains the heart of the entertainment industry.”

    Highlights from this round of awards include:
    • Untitled Daniels/Wang Project (NBCUniversal), expected to receive $20.8 million in tax credits, generating estimated wages of $61.9 million and total qualified spending of $106.8 million.
    • Business Women (Twentieth Century Studios), securing $5.7 million in tax credits, estimated wages of $27.6 million, and total qualified spending of $49.4 million.
    • Behemoth! (Dialogue Industries Inc.), projected to bring $36.1 million in total qualified spending and generate $28.9 million in wages, securing $7.4 million in tax credits.
    • Cut Off (Warner Bros. Pictures), receiving $10 million in tax credits, with estimated wages of $28.3 million and total qualified spending of $49.4 million.
    • Untitled Drag Queen Movie (World of Wonder Productions), securing $1.7 million in tax credits, estimated wages of $4.4 million, and total qualified spending of $6.6 million.

    “We are LA filmmakers, with very dear LA friends, who happen to be some of the greatest creative talents we’ve worked with,” said The Daniels and Wang in a joint statement. “On ‘Everything Everywhere All At Once’ we received the California tax credit, and had we not, it would have been utterly impossible to make that film. We were also deeply moved by the CFC’s commitment to supporting local filmmakers and the broader community. We’re thrilled to have the opportunity to film our next project in Los Angeles, creating jobs and opportunities for countless Californians.”

    “Category is: there’s no place like home!” said producer RuPaul Charles. “As someone who’s produced a TV series in Los Angeles for 17 years, I’m thrilled that our feature film, ‘Untitled Drag Queen Movie,’ is receiving tax credits from the California Film Commission. These incentives have been instrumental in supporting our financing. And best of all, we’re getting people back to work in Hollywood.”

    Press Releases, Recent News

    Recent news

    Mar 19, 2025

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    MIL OSI USA News –

  • MIL-OSI Security: Three KC Men Indicted for Multi-State Business Burglary Conspiracy

    Source: Office of United States Attorneys

    KANSAS CITY, Mo. – Three Kansas City, Mo., men have been indicted by a federal grand jury for their roles in a conspiracy to burglarize beauty product and liquor stores across seven states.

    Gary Bailey, 24, Jermaine Threat, 25, and Dalvin Poindexter, 26, were charged in a nine-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Feb. 4, 2024. That indictment was unsealed and made public today following the arrest and initial court appearances of Bailey and Poindexter.

    The federal indictment alleges that Bailey, Threat, and Poindexter stole hundreds of thousands of dollars’ worth of merchandise during a series of business burglaries from March 2023 to January 2024.

    According to the indictment, the conspirators targeted beauty product and liquor stores in Missouri, Illinois, Iowa, Kansas, Nebraska, Indiana, and Texas. The conspirators smashed the storefront door or window glass to enter the stores afterhours and then stole fragrances, cosmetics, liquor, spirits, and other merchandise. The conspirators allegedly used posts on Facebook Marketplace and Facebook Stories, as well as group chat text messages, to sell the stolen goods and received payment in cash or through peer-to-peer payment services like CashApp. The indictment says they also kept some of the stolen items for themselves or gave it away to their friends and family.

    In addition to the conspiracy, Bailey, Threat, and Poindexter are charged together in seven counts of transporting stolen property across state lines.

    The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

    This case is being prosecuted by Assistant U.S. Attorney John Constance. It was investigated by IRS-Criminal Investigation and the Olathe, Kansas, Police Department, with assistance from the Missouri State Highway Patrol, the Platte County Sheriff’s Office and the police departments of Derby, KS, Belton, MO, Blue Springs, MO, Columbia, MO, Creve Coeur, MO, Edwardsville, KS, Fairview Heights, IL, Kansas City, MO, Kansas City, KS, Lawrence, KS, Leawood, KS, Lee’s Summit, MO, Lenexa, KS, Liberty, MO, Olathe, KS, Omaha, NE, Overland, Park, KS, Papillion, NE, Parkville, MO, Plainfield, IN, Plano, TX, Platte City, MO, Shawnee, KS, Springfield, MO, St. Joseph, MO, Terre Haute, IN, Topeka, KS, and West Des Moines, IA.

    MIL Security OSI –

  • MIL-OSI: TWFG Announces Fourth Quarter 2024 and Full Year Results

    Source: GlobeNewswire (MIL-OSI)

    – Total Revenues increased 30.8% for the quarter over the prior year period to $51.7 million –
    – Total Written Premium increased 20.0% for the quarter over the prior year period to $361.4 million –
    – Organic Revenue Growth Rate* of 20.5% for the quarter –
    – Diluted Earnings Per Share and Adjusted Diluted Earnings Per Share* of $0.11 and $0.19 for the quarter, respectively –
    – Adjusted EBITDA* increased 91.7% for the quarter over the prior year period to $13.8 million –

    THE WOODLANDS, Texas, March 19, 2025 (GLOBE NEWSWIRE) — TWFG, Inc. (“TWFG”, the “Company” or “we”) (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the fourth quarter and the full year ended December 31, 2024.

    Fourth Quarter 2024 Highlights

    • Total revenues for the quarter increased 30.8% to $51.7 million, compared to $39.6 million in the prior year period
    • Net income for the quarter was $8.2 million, compared to $5.2 million in the prior year period
    • Commission income for the quarter increased 20.7% to $43.7 million, compared to $36.2 million in the prior year period
    • Contingent income for the quarter increased 371.4% to $5.0 million, compared to $1.1 million in the prior year period
    • Total Written Premium for the quarter increased 20.0% to $361.4 million, compared to $301.4 million in the prior year period
    • Organic Revenue Growth Rate* for the quarter was 20.5%
    • Adjusted Net Income* for the quarter increased 57.0% from the prior year period to $10.5 million, and Adjusted Net Income Margin* for the quarter was 20.3%
    • Adjusted EBITDA* for the quarter increased 91.7% over the prior year period to $13.8 million, and Adjusted EBITDA Margin* for the quarter was to 26.8% compared to 18.3% in the prior year period
    • Cash flow from operating activities for the quarter was $11.6 million, compared to $6.1 million in the prior year period
    • Adjusted Free Cash Flow* for the quarter was $5.7 million, compared to $6.0 million in the same prior year period

    Full Year 2024 Highlights

    • Total revenues for the year increased 18.4% to $203.8 million, compared to $172.0 million in the prior year period
    • Net income for the year was $28.6 million, compared to $26.1 million in the prior year period
    • Commission income for the year increased 15.4% to $183.2 million, compared to $158.7 million in the prior year period
    • Contingent income for the year increased 113.5% to $8.7 million, compared to $4.1 million in the prior year period
    • Total Written Premium for the year increased 18.3% to $1.5 billion, compared to $1.2 billion in the prior year period
    • Organic Revenue Growth Rate* for the year was 14.5%
    • Adjusted Net Income* for the year increased 9.8% from the prior year period to $33.0 million, and Adjusted Net Income Margin* for the year was 16.2%
    • Adjusted EBITDA* for the year increased 44.7% over the prior year period to $45.3 million, and Adjusted EBITDA Margin* for the year was 22.3% compared to 18.2% in the prior year period
    • Cash flow from operating activities for the year was $40.5 million, compared to $30.2 million in the prior year period
    • Adjusted Free Cash Flow* for the year was $28.2 million, compared to $19.7 million in the prior year period

    *Organic Revenue Growth Rate, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Diluted Earnings Per Share are non-GAAP measures. Reconciliations of Organic Revenue Growth Rate to total revenue growth rate, Adjusted Net Income and Adjusted EBITDA to net income, Adjusted Diluted Earnings Per Share to diluted earnings per share, and Adjusted Free Cash Flow to cash flow from operating activities, the most directly comparable financial measures presented in accordance with GAAP, are outlined in the reconciliation table accompanying this release.

    Gordy Bunch, Founder, Chairman, and CEO said “Our fourth quarter results demonstrate the continued success of our agents, carriers, employees, and business model with total revenues increasing by 30.8% over the prior year period and Adjusted EBITDA increasing by 91.7%. We generated 20.5% of organic growth and increased our Adjusted EBITDA Margin to 26.8%.

    In addition, our fourth quarter recruiting efforts continued to outpace our historical growth trends. Our continued expansion throughout the US was fueled by both recruitment of start-up agencies and strategic acquisitions in the following states Colorado, Connecticut, Idaho, Indiana, Missouri, Nevada, New Mexico, Oregon, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington and Wyoming.

    Finally, I want to remind our fellow stockholders that experienced agents typically take between two to three years to become productive. We do not expect the 100-plus new branches we launched in 2024 to have a significant impact on revenues this year or next, but over the long term we expect the agents onboarded in 2024 to contribute meaningfully to our longer-term organic growth.”

    Fourth Quarter 2024 Results

    For the fourth quarter of 2024, Total Written Premium was $361.4 million, a 20.0% increase compared to the same period in the prior year. Revenues were $51.7 million, an increase of 30.8% compared to the same period in the prior year. Organic Revenues, a non-GAAP measure that excludes contingent income, fee income, and other income, for the fourth quarter of 2024 were $43.6 million compared to $34.8 million in the same period in the prior year. Organic Revenue Growth Rate in the fourth quarter was 20.5%, driven by strong new business growth, moderating retention levels, rate increases and an uptick in new business growth with one of our MGA programs.

    Total commission expense for the fourth quarter of 2024 was $28.9 million, a 11.2% increase from $26.0 million in the same period in the prior year. Commission expenses increased primarily due to the growth in the business, partially offset by the conversion of nine branches to corporate branches, which transitioned our non-employee commission-based colleagues to employees. Upon conversion, these corporate branch employees received salaries, employee benefits, and bonuses for services rendered instead of commissions. Salaries and employee benefits for the fourth quarter of 2024 were $7.7 million, up 97.8% from $3.9 million in the same period in the prior year. Approximately $1.0 million of the increase was due to equity compensation expense, while $3.0 million of the increase was due to the branch conversions and 2023 corporate branch acquisitions, along with the growth in the business. Other administrative expenses for the fourth quarter of 2024 were $5.0 million, a 69.9% increase compared to the same period in the prior year. The increase was due to growth in the business, increase in corporate branches and the absorption of public company costs.

    For the fourth quarter of 2024, net income was $8.2 million, and net income margin was 15.8%, compared to net income of $5.2 million and net income margin of 13.2%, in the same period in the prior year. Adjusted Net Income for the fourth quarter of 2024 was $10.5 million, compared to $6.7 million in the same period in the prior year. Adjusted Net Income Margin for the fourth quarter was 20.3%, compared to 16.9% in the same period in the prior year.

    Adjusted EBITDA for the fourth quarter was $13.8 million, an increase of 91.7% over the same period in the prior year. Our Adjusted EBITDA Margin was 26.8% in the fourth quarter of 2024 compared to 18.3% in the same period in the prior year.

    Cash flow from operating activities for the fourth quarter was $11.6 million, compared to $6.1 million in the same period in the prior year.

    Adjusted Free Cash Flow for the fourth quarter of 2024 was $5.7 million, compared to $6.0 million in the same period in the prior year.

    Liquidity and Capital Resources

    As of December 31, 2024, the Company had cash and cash equivalents of $195.8 million. We had $50.0 million unused capacity on our revolving credit facility of $50.0 million as of December 31, 2024. The total outstanding term notes payable balance was $5.9 million as of December 31, 2024.

    2025 Outlook

    Our guidance for the full year 2025 is as follows:

    • Organic Revenue Growth rate* for the full year 2025 is expected to be in the range of 11% to 16%
    • Adjusted EBITDA Margin* for the full year 2025 is expected to be in the range of 19% to 21%
    • Total revenues are expected to be between $235 million and $250 million

    The Company is unable to provide a reconciliation to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting the timing of items that have not yet occurred, as well as quantifying certain amounts that are necessary for such reconciliation.

    *For a definition of Organic Revenue Growth rate and Adjusted EBITDA Margin, see “Non-GAAP Financial Measures” below.

    2025 Acquisitions

    We began 2025 acquiring two new corporate locations in Ohio and Texas. The new locations are in line with our acquisition expectations for revenue and EBITDA. Our robust pipeline provides us many quality acquisition targets to achieve the remainder of our 2025 M&A goals. Our M&A models included beginning 2025 with acquiring $3 million of revenues and $0.7 million of EBITDA with an additional $20 million of revenue and $5 million of EBITDA being acquired with a mid-year convention.

    Conference Call Information

    TWFG will host a conference call and webcast tomorrow at 10:00 AM ET to discuss these results.

    To access the call by phone, participants should register at this link, where they will be provided with the dial in details. A live webcast of the conference call will also be available on TWFG’s investor relations website at investors.twfg.com. A webcast replay of the call will be available at investors.twfg.com for one year following the call.

    About TWFG

    TWFG (NASDAQ: TWFG) is a high-growth, independent distribution platform for personal and commercial insurance in the United States and represents hundreds of insurance carriers that underwrite personal lines and commercial lines risks. For more information, please visit twfg.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “outlook,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the captions entitled “Risk factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our prospectus (the “IPO Prospectus”) relating to our Registration Statement on Form S-1, as amended (Registration No. 333-280439), filed with the U.S. Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, and in our other filings with the SEC. You should specifically consider the numerous risks outlined under “Risk factors” in the IPO Prospectus.

    Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    Non-GAAP Financial Measures and Key Performance Indicators

    Non-GAAP Financial Measures

    Organic Revenue, Organic Revenue Growth, Adjusted Net Income, Adjusted Net Income Margin, Adjusted Diluted Earnings Per Share, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow included in this release are not measures of financial performance in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and should not be considered substitutes for GAAP measures, including revenues (for Organic Revenue and Organic Revenue Growth), net income (for Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin) diluted earnings per share (Adjusted Diluted Earnings Per Share), and cash flow from operating activities (for Adjusted Free Cash Flow) which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for revenues, net income, operating cash flow or other consolidated financial statement data prepared in accordance with GAAP. Other companies may calculate any or all of these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.

    Organic Revenue. Organic Revenue is total revenue (the most directly comparable GAAP measure) for the relevant period, excluding contingent income, fee income, other income and those revenues generated from acquired businesses with over $0.5 million in annualized revenue that have not reached the twelve-month owned milestone.

    Organic Revenue Growth. Organic Revenue Growth is the change in Organic Revenue period-to-period, with prior period results adjusted to include revenues that were excluded in the prior period because the relevant acquired businesses had not reached the twelve-month-owned milestone but have reached the twelve-month owned milestone in the current period. We believe Organic Revenue Growth is an appropriate measure of operating performance because it eliminates the impact of acquisitions, which affects the comparability of results from period to period.

    Adjusted Net Income. Adjusted Net Income is a supplemental measure of our performance and is defined as net income (the most directly comparable GAAP measure) before amortization, non-recurring or non-operating income and expenses, including equity-based compensation, adjusted to assume a single class of stock (Class A) and assuming noncontrolling interests do not exist. We believe Adjusted Net Income is a useful measure because it adjusts for the after-tax impact of significant one-time, non-recurring items and eliminates the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

    We are subject to U.S. federal income taxes, in addition to state, and local taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. Adjusted Net Income pre-IPO did not reflect adjustments for income taxes since TWFG Holding Company, LLC is a limited liability company and is classified as a partnership for U.S. federal income tax purposes. Post-IPO, the calculation incorporates the impact of federal and state statutory tax rates on 100% of our adjusted pre-tax income as if the Company owned 100% of TWFG Holding Company, LLC.

    Adjusted Net Income Margin. Adjusted Net Income Margin is Adjusted Net Income divided by total revenues. We believe that Adjusted Net Income Margin is a useful measurement of operating profitability for the same reasons we find Adjusted Net Income useful and also because it provides a period-to-period comparison of our after-tax operating performance.

    Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share is Adjusted Net Income divided by diluted shares outstanding after adjusting for the effect of (i) the exchange of 100% of the outstanding Class B common stock of the Company (the “Class B Common Stock”) and Class C common stock of the Company (the “Class C Common Stock”) (together with the related limited liability units in TWFG Holding Company, LLC (the “LLC Units”)) into shares of Class A common stock of the Company (“Class A Common Stock”) and (ii) the vesting of 100% of the unvested equity awards and exchange into shares of Class A Common Stock. This measure does not deduct earnings related to the noncontrolling interests in TWFG Holding Company, LLC for the period prior to July 19, 2024, when we did not own 100% of the business. The most directly comparable GAAP financial metric is diluted earnings per share. We believe Adjusted Diluted Earnings Per Share may be useful to an investor in evaluating our operating performance and efficiency because this measure is widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon acquisition activity and capital structure. This measure also eliminates the impact of expenses that do not relate to core business performance, among other factors.

    Adjusted EBITDA. Adjusted EBITDA is a supplemental measure of our performance and is defined as EBITDA adjusted to reflect items such as equity-based compensation, interest income, other non-operating and certain nonrecurring items. EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation, and amortization. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it adjusts for significant one-time, non-recurring items and eliminates the ongoing accounting effects of certain capital spending and acquisitions, such as depreciation and amortization, that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. Our measure of Adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

    Adjusted EBITDA Margin. Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenue. We believe that Adjusted EBITDA Margin is a useful measurement of operating profitability for the same reasons we find Adjusted EBITDA useful and also because it provides a period-to-period comparison of our operating performance.

    Adjusted Free Cash Flow. Adjusted Free Cash Flow is a supplemental measure of our performance. We define Adjusted Free Cash Flow as cash flow from operating activities (the most directly comparable GAAP measure) less cash payments for tax distributions, purchases of property, plant, and equipment and acquisition-related costs. We believe Adjusted Free Cash Flow is a useful measure of operating performance because it represents the cash flow from the business that is within our discretion to direct to activities including investments, debt repayment, and returning capital to stockholders.

    The reconciliation of the above non-GAAP measures to their most comparable GAAP financial measure is outlined in the reconciliation table accompanying this release.

    Key Performance Indicators

    Total Written Premium. Total Written Premium represents, for any reported period, the total amount of current premium (net of cancellation) placed with insurance carriers. We utilize Total Written Premium as a key performance indicator when planning, monitoring, and evaluating our performance. We believe Total Written Premium is a useful metric because it is the underlying driver of the majority of our revenue.

    Contacts
    Investor Contact:
    Gene Padgett, CAO for TWFG
    Email: gene.padgett@twfg.com

    PR Contact:
    Alex Bunch, CMO for TWFG
    Email: alex@twfg.com

    Consolidated Statements of Income (Unaudited)
    (Amounts in thousands, except share and per share data)

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023   2024   2023
    Revenues              
    Commission income(1) $ 43,711   $ 36,228     $ 183,158   $ 158,679  
    Contingent income   5,005     1,062       8,722     4,085  
    Fee income(2)   2,751     1,968       10,562     8,311  
    Other income   276     313       1,318     968  
    Total revenues   51,743     39,571       203,760     172,043  
    Expenses              
    Commission expense   28,915     25,994       118,086     116,847  
    Salaries and employee benefits   7,663     3,874       29,064     13,970  
    Other administrative expenses(3)   4,978     2,930       16,665     10,973  
    Depreciation and amortization   3,054     1,522       12,020     4,862  
    Total operating expenses   44,610     34,320       175,835     146,652  
    Operating income   7,133     5,251       27,925     25,391  
    Interest expense   98     450       2,223     1,003  
    Interest income   2,174     421       4,376     891  
    Other non-operating income (expense), net   1     (7 )     9     (17 )
    Income before tax   9,210     5,215       30,087     25,262  
    Income tax expense   1,057     —       1,495     —  
    Net income from continuing operations   8,153     5,215       28,592     25,262  
    Net income from discontinued operation, net of tax   —     —       —     834  
    Net income   8,153     5,215       28,592     26,096  
    Less: net income attributable to noncontrolling interests   6,561     5,215       25,847     26,096  
    Net income attributable to TWFG, Inc. $ 1,592   $ —     $ 2,745   $ —  
                   
    Weighted average shares of common stock outstanding:              
    Basic   14,811,874         14,772,115    
    Diluted   15,056,430         14,982,409    
    Earnings per share:              
    Basic $ 0.11       $ 0.19    
    Diluted $ 0.11       $ 0.19    
     

    (1) Commission income – related party of $3,562 and $1,139 for the three months ended and $9,609 and $4,203 for the twelve months ended December 31, 2024 and 2023, respectively
    (2) Fee income – related party of $905 and $335 for the three months ended and $2,704 and $1,593 for the twelve months ended December 31, 2024 and 2023, respectively
    (3) Other administrative expenses – related party of $326 and $145 for the three months ended and $1,478 and $415 for the twelve months ended December 31, 2024 and 2023, respectively

    Consolidated Balance Sheets (Unaudited)
    (Amounts in thousands, except share/unit data)

      December 31, 2024   December 31, 2023
    Assets
    		      
    Current assets
    		      
    Cash and cash equivalents $ 195,772   $ 39,297
    Restricted cash   9,551     7,171
    Commissions receivable, net   27,067     19,082
    Accounts receivable   7,839     5,982
    Deferred offering costs   —     2,025
    Other current assets   1,619     1,551
    Total current assets   241,848     75,108
    Non-current assets
    		      
    Intangible assets, net   72,978     36,436
    Property and equipment, net   3,499     597
    Lease right-of-use assets, net   4,493     2,459
    Other non-current assets   610     837
    Total assets $ 323,428   $ 115,437
           
    Liabilities and Equity
    		      
    Current liabilities
    		      
    Commissions payable $ 13,848   $ 12,487
    Carrier liabilities   12,392     8,731
    Operating lease liabilities, current   1,013     882
    Short-term bank debt   1,912     2,437
    Deferred acquisition payable, current   601     5,369
    Other current liabilities   9,851     5,006
    Total current liabilities   39,617     34,912
    Non-current liabilities
    		      
    Operating lease liabilities, net of current portion   3,372     1,518
    Long-term bank debt   4,007     46,919
    Deferred acquisition payable, non-current   1,122     1,037
    Other non-current liabilities   24     —
    Total liabilities   48,142     84,386
    Commitment and contingencies      
    Stockholders’/Members’ Equity
    		      
    Members’ Equity (631,750 common units issued and outstanding at December 31, 2023)   —     632
    Class A common stock ($0.01 par value per share – 300,000,000 authorized, 14,811,874 shares issued and outstanding at December 31, 2024)   148     —
    Class B common stock ($0.00001 par value per share – 100,000,000 authorized, 7,277,651 shares issued and outstanding at December 31, 2024)   —     —
    Class C common stock ($0.00001 par value per share – 100,000,000 authorized, 33,893,810 shares issued and outstanding at December 31, 2024)   —     —
    Additional paid-in capital   58,365     25,114
    Retained earnings   15,288     4,805
    Accumulated other comprehensive income   83     500
    Total stockholders’ equity attributable to TWFG, Inc. /members’ equity   73,884     31,051
    Noncontrolling interests   201,402     —
    Total stockholders’/members’ equity   275,286     31,051
      Total liabilities and equity $ 323,428   $ 115,437
             
     

    Non-GAAP Financial Measures

    A reconciliation of Organic Revenue and Organic Revenue Growth Rate to Total Revenue and Total Revenue Growth Rate, the most directly comparable GAAP measures, is as follows (in thousands):

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Total revenues $ 51,743     $ 39,571     $ 203,760     $ 172,043  
    Acquisition adjustments(1)   (105 )     (1,405 )     (3,687 )     (4,052 )
    Contingent income   (5,005 )     (1,062 )     (8,722 )     (4,085 )
    Fee income   (2,751 )     (1,968 )     (10,562 )     (8,311 )
    Other income   (276 )     (313 )     (1,318 )     (968 )
    Organic Revenue $ 43,606     $ 34,823     $ 179,471     $ 154,627  
    Organic Revenue Growth(2) $ 7,429     $ 2,527     $ 22,746     $ 15,514  
    Total Revenue Growth Rate(3)   30.8 %     7.3 %     18.4 %     11.8 %
    Organic Revenue Growth Rate(2)   20.5 %     7.8 %     14.5 %     11.2 %
                   
     

    (1) Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.
    (2) Organic Revenue for the three months ended December 31, 2023 and 2022, and for the twelve months ended December 31, 2023 and 2022, used to calculate Organic Revenue Growth for the three months ended December 31, 2024 and 2023, and for the twelve months ended December 31, 2024 and 2023, was $36.2 million, $32.3 million, $156.7 million and $139.1 million, respectively, which is adjusted to reflect revenues from acquired businesses with over $0.5 million in annualized revenue that reached the twelve-month owned mark during the year ended December 31, 2024 and 2023, respectively. Organic Revenue Growth Rate represents the period-to-period change in Organic Revenue divided by the total adjusted Organic Revenue in the prior period.
    (3) Represents the period-to-period change in total revenues divided by the total revenues in the prior period.

    Applying the use of enhanced data consistently throughout the prior periods, revenue growth rate for the three months ended and twelve months ended December 31, 2023 compared to the same period in 2022 would have been 9.9% and 14.9%, respectively, and Organic Revenue Growth Rate for the three months ended and twelve months ended December 31, 2023 compared to the same period in 2022 would have been 10.7% and 14.5%, respectively.

    A reconciliation of Adjusted Net Income and Adjusted Net Income Margin to Net Income and Net Income Margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):

    Revised Calculation Methodology Applied to Current Period
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Total revenues $ 51,743     $ 39,571     $ 203,760     $ 172,043  
    Net income $ 8,153     $ 5,215     $ 28,592     $ 26,096  
    Income tax expense   1,057       —       1,495       —  
    Acquisition-related expenses   20       36       20       204  
    Restructuring and related expenses   —       —       —       17  
    Discontinued operation income   —       —       —       (834 )
    Equity-based compensation   1,207       —       2,219       —  
    Other non-recurring items(1)   257       —       (1,220 )     —  
    Amortization expense   2,950       1,451       11,721       4,594  
    Adjusted income before income taxes   13,644       6,702       42,827       30,077  
    Adjusted income tax expense(2)   (3,123 )     —       (9,802 )     —  
    Adjusted Net Income $ 10,521     $ 6,702     $ 33,025     $ 30,077  
    Net Income Margin   15.8 %     13.2 %     14.0 %     15.2 %
    Adjusted Net Income Margin   20.3 %     16.9 %     16.2 %     17.5 %
                   
     
    Legacy Calculation Methodology Applied to Current Period
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Total revenues $ 51,743     $ 39,571     $ 203,760     $ 172,043  
    Net income $ 8,153     $ 5,215     $ 28,592     $ 26,096  
    Income tax expense   1,057       —       1,495       —  
    Acquisition-related expenses   20       36       20       204  
    Restructuring and related expenses   —       —       —       17  
    Discontinued operation income   —       —       —       (834 )
    Equity-based compensation   1,207       —       2,219       —  
    Other non-recurring items(1)   257       —       (1,220 )     —  
    Adjusted income before income taxes   10,694       5,251       31,106       25,483  
    Adjusted income tax expense(2)   (2,447 )     —       (7,119 )     —  
    Adjusted Net Income $ 8,247     $ 5,251     $ 23,987     $ 25,483  
    Net Income Margin   15.8 %     13.2 %     14.0 %     15.2 %
    Adjusted Net Income Margin   15.9 %     13.3 %     11.8 %     14.8 %
                   
     

    (1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.
    (2) Post-IPO, we are subject to United States federal income taxes, in addition to state, local, and foreign taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. For the three and twelve months ended December 31, 2024, the calculation of adjusted income tax expense is based on a federal statutory rate of 21% and a blended state income tax rate of 1.88% on 100% of our adjusted income before income taxes as if we owned 100% of the TWFG Holding Company, LLC.

    A reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to Net Income and Net Income Margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Total revenues $ 51,743     $ 39,571     $ 203,760     $ 172,043  
    Net income $ 8,153     $ 5,215     $ 28,592     $ 26,096  
    Interest expense   98       450       2,223       1,003  
    Interest income(2)   2,174       421       4,376       891  
    Depreciation and amortization   3,054       1,522       12,020       4,862  
    Income tax expense   1,057       —       1,495       —  
    EBITDA   10,188       6,766       39,954       31,070  
    Acquisition-related expenses   20       36       20       204  
    Restructuring and related expenses   —       —       —       17  
    Equity-based compensation   1,207       —       2,219       —  
    Interest income(2)   2,174       421       4,376       891  
    Discontinued operation income   —       —       —       (834 )
    Other non-recurring items(1)   257       —       (1,220 )     —  
    Adjusted EBITDA $ 13,846     $ 7,223     $ 45,349     $ 31,348  
    Net Income Margin   15.8 %     13.2 %     14.0 %     15.2 %
    Adjusted EBITDA Margin   26.8 %     18.3 %     22.3 %     18.2 %
                   
     

    (1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.
    (2) Interest income reflects interest and other earnings on cash balances held by the Company. This income is included in Adjusted EBITDA as we view our total interest and investment income as an integral part of our business model and earnings stream until deployed. 

    A reconciliation of Adjusted Free Cash Flow to Cash Flow from Operating Activities, the most directly comparable GAAP measure, for each of the periods indicated is as follows (in thousands):

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Cash Flow from Operating Activities $ 11,600     $ 6,051     $ 40,479     $ 30,154  
    Purchase of property and equipment   (2,921 )     (43 )     (3,201 )     (260 )
    Tax distribution to members(1)   (3,002 )     —       (9,106 )     (9,526 )
    Acquisition-related expenses   —       36       20       204  
    Net cash flow provided by operating activities from discontinued operation   —       —       —       (839 )
    Adjusted Free Cash Flow $ 5,677     $ 6,044     $ 28,192     $ 19,733  
                   
     

    (1) Tax distributions to members represents the amount distributed to the members of TWFG Holding Company, LLC in respect of their income tax liability related to the net income of TWFG Holding Company, LLC allocated to its members.

    A reconciliation of Adjusted Diluted Earnings Per Share to diluted earnings per share, the most directly comparable GAAP measure, is as follows:

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2024
    Earnings per share of common stock – diluted $ 0.11   $ 0.19
    Plus: Impact of all LLC Units exchanged for Class A Common Stock(1)   0.04     0.32
    Plus: Adjustments to Adjusted net income(2)   0.04     0.08
    Adjusted Diluted Earnings Per Share $ 0.19   $ 0.59
           
    Weighted average common stock outstanding – diluted   15,056,430     14,982,409
    Plus: Impact of all LLC Units exchanged for Class A Common Stock(1)   41,171,461     41,171,461
    Adjusted Diluted Earnings Per Share diluted share count   56,227,891     56,153,870
           
     

    (1) For comparability purposes, this calculation incorporates the net income that would be distributable if all shares of Class B Common Stock and Class C Common Stock, together with the related LLC Units, were exchanged for shares of Class A Common Stock. For the three months ended and twelve months ended December 31, 2024, this includes $6.6 million and $25.8 million of net income, respectively, on 56,227,891 and 56,153,870 weighted-average shares of common stock outstanding – diluted, for the three and twelve months ended December 31, 2024, respectively. For both the three months ended and twelve months ended December 31, 2024, 41,171,461 weighted average outstanding Class B Common Stock and Class C Common Stock were considered dilutive and included in the 56,227,891 and 56,153,870 weighted-average shares of common stock outstanding – diluted within diluted earnings per share calculation.

    (2) Adjustments to Adjusted Net Income are described in the footnotes of the reconciliation of Adjusted Net Income to Net Income in “Adjusted Net Income and Adjusted Net Income Margin”, which represent the difference between Net Income of $8.2 million and $28.6 million and Adjusted Net Income of $10.5 million and $33.0 million for the three and twelve months ended December 31, 2024, respectively. For the three and twelve months ended months ended December 31, 2024, Adjusted Diluted Earnings Per Share include adjustments of $2.3 million and $4.4 million to Adjusted Net Income, respectively, on 56,227,891 and 56,153,870 weighted-average shares of common stock outstanding – diluted for both periods presented, respectively.

    Key Performance Indicators

    The following presents the disaggregation of Total Written Premium by offerings, business mix and line of business (in thousands):

      Three Months Ended December 31,   Twelve Months Ended December 31,
        2024       2023       2024       2023  
      Amount   % of Total   Amount   % of Total   Amount   % of Total   Amount   % of Total
    Offerings:
    		                              
    Insurance Services                              
    Agency-in-a-Box $ 246,116   68 %   $ 237,678   79 %   $ 982,815   66 %   $ 998,938   80 %
    Corporate Branches   61,642   17       18,806   6       275,331   19       53,963   4  
    Total Insurance Services   307,758   85       256,484   85       1,258,146   85       1,052,901   84  
    TWFG MGA   53,602   15       44,961   15       218,214   15       195,194   16  
    Total written premium $ 361,360   100 %   $ 301,445   100 %   $ 1,476,360   100 %   $ 1,248,095   100 %
                                   
    Business Mix:
    		                              
    Insurance Services                              
    Renewal business $ 236,033   65 %   $ 203,338   67 %   $ 975,657   66 %   $ 827,112   66 %
    New business   71,725   20       53,146   18       282,489   19       225,789   18  
    Total Insurance Services   307,758   85       256,484   85       1,258,146   85       1,052,901   84  
    TWFG MGA                              
    Renewal business   37,741   10       37,797   13       163,105   11       165,348   13  
    New business   15,861   5       7,164   2       55,109   4       29,846   3  
    Total TWFG MGA   53,602   15       44,961   15       218,214   15       195,194   16  
      Total written premium $ 361,360   100 %   $ 301,445   100 %   $ 1,476,360   100 %   $ 1,248,095   100 %
                                   
    Written Premium Retention:
    		                              
    Insurance Services     92 %       92 %       93 %       95 %
    TWFG MGA     84         88         84         89  
    Consolidated     91         91         91         94  
                                   
    Line of Business:
    		                              
    Personal lines $ 292,750   81 %   $ 239,134   79 %   $ 1,197,122   81 %   $ 997,431   80 %
    Commercial lines   68,610   19       62,311   21       279,238   19       250,664   20  
    Total written premium $ 361,360   100 %   $ 301,445   100 %   $ 1,476,360   100 %   $ 1,248,095   100 %
                                     
     

    The MIL Network –

  • MIL-Evening Report: In 2000, Australia was defined by the Olympics, border politics and reconciliation. So what really has changed?

    Source: The Conversation (Au and NZ) – By Joshua Black, Visitor, School of History, Australian National University

    The world had its eyes on Sydney in 2000. A million people lined the harbour to ring in the new millennium (though some said it was actually the final year of the old one) on January 1.

    US television reporters called it “the biggest party in Australian history”. Bill Gates, chairman of Microsoft, whose corporation seemed to represent the coming age, was among those watching on.

    Sydney offered not only a world-leading party, but also a litmus test for the much-feared Y2K bug, which threatened to knock planes out of the sky and bring the global economy to a halt. Australia and New Zealand were said to be the “tripwire for the world’s computer systems”.

    It was fine in the end, although plenty of work had in fact been undertaken behind the scenes to make Australia’s systems more millennium-proof than they might have been.

    This was arguably the defining feature of Australia in the year 2000: a confident display for the world concealing a lot of angst and uncertainty. Australia was the “oldest continent on Earth”, the US broadcasters told their viewers, but it was “much more of an Asian nation”, and much closer to the rest of the world “thanks to technology”.

    Those confident claims would probably have surprised many Australians. Theirs was an old country trying to keep up with a new, interconnected world, and also a relatively young one trying to reconcile itself with the ancient cultures that its settler forebears had dispossessed.

    A curated Australia

    In September, the world’s sporting and political elite, followed by a train of journalists, arrived in Sydney for the 2000 Olympic Games. It had been years in the making, and every level of government was involved. There were no fewer than 47,000 volunteers.

    There was something for everyone in the well-curated opening ceremony. The event opened with the crack of a stockman’s whip and a fleet of flag-waving bushmen on horseback. There were highly sanitised displays of European arrival, pastoral settlement and a tribute to an armour-clad colonial Victorian bushranger that must have baffled those viewers watching from abroad who had not seen a Sidney Nolan painting before.

    Ancient stories and new cultural sensibilities were on display too. There were stylised performances of the Dreaming, striking First Nations dances and the distinctive sounds of the didgeridoo. A section entitled “Arrivals” recognised the importance of migration in the nation’s story.

    A young Aboriginal sprinter, Cathy Freeman, lit the cauldron in what became one of the iconic images of the year. The cauldron’s hydraulics unfortunately got stuck as it ascended, and the flame was mere seconds from snuffing out in what could have been a global embarrassment. But big ambitions incur big risks.

    This global performance of Australian-ness was arrestingly simple: that of a nation confident in its own diversity and capable of catering to everyone’s tastes.

    Even the musical selections seemed to reconcile the needs of the youth (with performances from a young Vanessa Amorosi and even younger Nikki Webster), and the more mature (represented by John Farnham and Olivia Newton-John).

    Australia’s athletes had their best ever showing with 58 medals, including Freeman’s own gold.

    Not quite comfortable, not quite relaxed

    The Olympics masked as much as they revealed.

    In 2000, many white Australians still weren’t sure if theirs was, or should be, a multicultural society.

    The reactionary Pauline Hanson was out of parliament for the time being, but her One Nation Party had won 7.5% of the vote in New South Wales in the March 1999 state election, and nearly 23% of the vote in Queensland the year before.

    Eight weeks before millennium day, Australians had roundly rejected two referendum proposals, one to become a republic, and for a Constitutional preamble that, among other things, recognised Indigenous Australians as “the nation’s first people”.

    But whether Hanson liked it or not, her lifetime had coincided with great demographic and social change.

    In 1976, roughly 1.8% of the population said they were born in Asia or the Middle East. In the 2001 census, 1.6% of the population were born in China or Vietnam alone, and many more were the descendants of migrants from these places.

    The Aboriginal and Torres Strait Islander population had more than doubled over the same period, while those identifying as Christian decreased from nearly 79% in 1976 to 56% in 2001.

    This increasingly diverse Australia claimed to be on a journey to “reconciliation”. That process had been sorely tested during the nasty debates about land rights and the Stolen Generations.

    Corroboree 2000, held on May 27 in Sydney, saw the Council for Aboriginal Reconciliation and the nation’s political leaders present their visions for the next phase of national healing. The leaders symbolically left their handprints on a “reconciliation canvas”.

    The following day, 250,000 Australians walked across the Sydney Harbour Bridge in a moving display of togetherness. John Howard, the prime minister, declined to participate.

    But his treasurer, Peter Costello, made a point of showing up for a similar event in Melbourne that December, leading Victorian Liberals and another 200,000 or so Australians.

    Their different approaches showed that the past was still a troubling present. Howard rebuffed suggestions of a treaty between Indigenous and settler Australians and maintained his refusal to apologise on behalf of the Commonwealth to the Stolen Generations, though all the states had done so by this time.

    The idea of such an apology was not as popular then as it seemed later on. The prime minister was sensitive to the fact that his was “an unpopular view with a lot of people”, but an opinion poll in The Australian newspaper showed a majority of voters were opposed to a national apology.

    Two survivors of the Stolen Generations, Peter Gunner and Lorna Cubillo, sued the Commonwealth for damages in 2000, giving their opponents the chance to challenge the legitimacy of their experiences. None of this looked like a nation that was as “comfortable and relaxed” as Howard had hoped it would be under his watch.

    Border politics

    Australian collective memory often gravitates toward 2001, the year of the Tampa affair and the September 11 terrorist attacks in New York.

    But Australia’s border was already highly politicised in 2000.

    In January, a boat arrived from Indonesia carrying 54 Christians fleeing religious conflict. They spent ten weeks at Port Hedland Immigration Detention facility, from which 39 went back to Indonesia and only 15 moved on to Adelaide to build new lives.

    Port Hedland and other detention centres made the news for all the wrong reasons. There were riots, hunger strikes and multiple breakouts. Authorities responded with upgraded security perimeters, character checks, and strip searches without warrants.

    Frustrated refugees set fire to South Australia’s Woomera facility, which former prime minister Malcolm Fraser publicly condemned as a “hell-hole”.

    In an end-of-year reflection for The Age newspaper, Gary Tippet said there had been a “touch of mean-spiritedness” about the handling of it all. Chris Wallace rightly suggests 2000 was a crucial moment in the “march towards an absolute offshore, extraterritorial approach” to refugees in Australia.

    In the intervening quarter-century, Australian officials have made mean-spiritedness an art form at the border and on the seas.

    First-rate democracy, third-rate economy

    Compared to the many legal challenges that came out of the US presidential contest in November 2000, Australia’s elections looked pretty smooth and sensible. The US seemed to have a backward democracy grafted onto its world-leading, information-age economy.

    Australia looked the opposite: a first-rate democracy with what looked increasingly like a “branch-office economy”.

    Reformers had tried for 20 years to make Australia efficient and competitive, but as one editorial in The Australian Financial Review explained, the country still suffered from its “old economy image”.

    The tech boom would soon become the tech wreck.
    Robert Cianflone/Getty Images

    Certainly, Australia still sold its minerals and farm products to the world in exchange for quality cars and cutting-edge computers.

    With global capitalists still enthralled by the global tech boom (though it was soon to become the “tech wreck”), they had little need for the Aussie dollar.

    The currency’s value declined through the year to just 50 US cents, and it would fall further in the following months. On its own, this mattered little, but a quarter of negative growth at the end of the year meant, as Paul Kelly later wrote, an “election-year recession” seemed a “real threat”.

    In the meantime, the much-debated Goods and Services Tax took effect around midnight on June 30 (a few hours later for businesses trading through the night).

    The 10% consumption tax was a big deal. Costello said in his memoir the “prices of three billion products were to change all at the same time”.

    The measure was politically brave, but soon became unpopular, helping raise petrol prices and alienate small business owners.

    The punters were pretty confident the Howard government was heading for defeat in 2001. They were wrong.

    Between the old and new

    The pace of social change accelerated from 2000.

    In the 2021 census, 2.6% of the population said they were born in India, and a further 3.2% in China and Vietnam. Aboriginal and Torres Strait Islander Australians had more than doubled over two decades, such that they made up 3.2% of the total population in 2021.

    People increasingly related to their economy differently, too. Half of the workforce had been unionised in the 1980s, but coverage fell to roughly a quarter in 2000 and just 12.5% in 2022.

    These and other changes make our politics look different from that of 25 years ago. Nailbiter elections are now more common than thumping majorities and attitudes toward the once-feared “minority government” have softened.

    For all that, many of the challenges of 2000 are still with us.

    Many Australians are less tolerant of overt racism than they once were, but the 2023 Voice referendum and our offshore detention regime remind us that race still matters in this country.

    Kevin Rudd apologised to the Stolen Generations in 2008, but Treaty and Truth-Telling are left unresolved.

    And for all our talk about human capital and the digital economy, resources make up a much higher share of our total export mix today than in 2000.

    A quarter-century on, Australia is still caught between the old and the new.

    Dr Joshua Black is a Postdoctoral Research Fellow at The Australia Institute.

    – ref. In 2000, Australia was defined by the Olympics, border politics and reconciliation. So what really has changed? – https://theconversation.com/in-2000-australia-was-defined-by-the-olympics-border-politics-and-reconciliation-so-what-really-has-changed-250791

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Cortez Masto, Wyden Demand Answers on DHS, DOGE Requests to Access Sensitive IRS Information

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto
    Washington, D.C. – U.S. Senator Catherine Cortez Masto (D-Nev.) and Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) led 15 of their Democratic Senate colleagues in a letter to Internal Revenue Service (IRS) Acting Commissioner Melanie Krause, IRS Acting Chief Counsel Andrew De Mello, and Department of Homeland Security (DHS) Secretary Kristi Noem demanding answers on reports that DHS and the “Department of Government Efficiency” have illegally requested sensitive taxpayer information from the IRS. The Senators also expressed concern at the abrupt replacement of previous Acting Chief Counsel William Paul.
    “We write about alarming reports that the Department of Homeland Security (DHS) has asked for unprecedented access to private taxpayer data from the Internal Revenue Service (IRS),” wrote the Senators. “Elon Musk and his associates at the so-called Department of Government Efficiency (DOGE) have also reportedly sought to cross-reference taxpayer data with sensitive personal data held by other agencies that provide public benefits.”
    According to a Washington Post report, DHS officials requested the IRS turn over home addresses, phone numbers, and email addresses of over 700,000 people in an apparent attempt to weaponize the tax system against those suspected of being undocumented immigrants. This unlawful move would target people paying taxes and contributing to American communities and is the latest attempt from the Trump Administration to target immigrant communities. It was also reported that DOGE sought access to sensitive personal tax records, the sharing of which would be illegal.
    “In addition to violating tax privacy laws, the wholesale sharing of tax return information with DHS or DOGE, as described in the press, would also penalize individuals for complying with federal tax law and undermine the IRS’s core mission of tax collection by reducing voluntary tax compliance,” continued the Senators. “According to official government data, millions of taxpayers who do not have a social security number file their taxes with the IRS each year using an individual taxpayer identification number (ITIN), including many undocumented individuals. Such voluntary tax compliance depends on trust that the IRS will keep taxpayer data confidential.”
    Additional signatories to the letter include Senators Richard Blumenthal (D-Conn.), Dick Durbin (D-Ill.), Martin Heinrich (D-N.M.), Ben Ray Luján (D-N.M.), Ed Markey (D-Mass.), Jeff Merkley (D-Ore.), Alex Padilla (D-Calif.), Jacky Rosen (D-Nev.), Bernie Sanders (D-Vt.), Adam Schiff (D-Calif.), Chris Van Hollen (D-Md.), Raphael Warnock (D-Ga.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), and Sheldon Whitehouse (D-R.I.).
    Read the full letter here.
    Senator Cortez Masto has pushed multiple Departments under the Trump Administration for detailed, public information regarding the impacts of President Trump’s federal funding freeze, hiring freeze, and terminations on Nevada – including to the Department of the Interior, the U.S. Forest Service, the National Nuclear Security Administration, the Department of Veterans Affairs, Department of Agriculture, and General Services Administration.

    MIL OSI USA News –

  • MIL-OSI USA: Filing a return could net thousands in tax credits for low-income families

    Source: US State of Oregon

    regon’s newest refundable personal income tax credit put more than $39 million into the pockets of low-income families in its first year in 2024.

    The Oregon Kids Credit, created by the Legislature in 2023, is a refundable credit for low-income people with young dependent children. For those with a modified adjusted gross income (MAGI) of $25,750 or less, the full credit is $1,000 per child for up to five dependent children under the age of six at the end of the tax year—a maximum benefit of $5,000. A partial credit is available for individuals and families with an MAGI up to $30,750.

    So far in 2025, more than 22,000 taxpayers have claimed $25 million in benefits from the Oregon Kids Credit.

    When combined with the federal Earned Income Tax Credit and the Oregon Earned Income Credit, it could help boost the tax refund for the lowest income families by a total of $13,770.

    The EITC is for people with an adjusted gross income of up to $66,818 in 2024. Families may be eligible for a maximum refundable credit of $7,830 on their federal tax return, and a maximum Oregon EIC of $940 on their state tax return.

    All three credits are fully refundable, meaning the portion of the credit that is larger than what a taxpayer owes can be refunded. Taxpayers may even be able to claim the credits and receive a tax refund if they don’t normally file a tax return.

    To claim the credits, taxpayers must file a return. To assist taxpayers, Oregon offers several free filing options, including free fillable forms and the new Direct File Oregon. Taxpayers who need help filing their taxes can also find free assistance options on the agency website.

    Families who are eligible for the Oregon Kids Credit are also likely eligible for the refundable Working Family Household and Dependent Care Credit (WFHDC), which helps low- to moderate-income families pay for the care of their dependents while they’re working, looking for work, or attending school.

    For more information about the federal EITC, the Oregon EIC, the Oregon Kids Credit and other similar credits, go to the Tax benefits for families page.

    Taxpayers filing their own 2024 income tax returns can get free assistance using the new combination of IRS Direct File and Direct File Oregon when Oregon Department of Revenue volunteers visit libraries across the state this tax season.

    The department offers special computer kiosks in four of its regional offices where taxpayers who don’t have access to computers can file their return using the free fillable forms and Direct File Oregon e-file options.

    The kiosks are available in the DOR regional offices in:

    • Bend, 951 SW Simpson Ave, Suite 100
    • Monday – Friday 8 a.m. – 5 p.m. (closed 12:30 p.m. – 1:30 p.m.)
    • Eugene, 1600 Valley River Drive, Suite 310
    • Monday – Friday 8 a.m. – 5 p.m. (closed 12:30 p.m. – 1:30 p.m.)
    • Gresham, 1550 NW Eastman Parkway, Suite 220
    • Monday – Friday 8 a.m. – 5 p.m. (closed 12:30 p.m. – 1:30 p.m.)
    • Portland, 800 NE Oregon St, Suite 505
      Monday – Friday, 8 a.m.-5 p.m. (closed 12 – 12:30 p.m.)

    Taxpayers can visit the Oregon Department of Revenue website to find free tax preparation sites by using the department’s interactive map.

    To get tax forms, check the status of their refund, or make payments, visit the Revenue website or email questions.dor@dor.oregon.gov.

    Taxpayers can also call 800-356-4222 toll-free from an Oregon prefix (English or Spanish) or 503-378-4988 in Salem and outside Oregon. For TTY (hearing or speech impaired), the department accepts all relay calls.

    MIL OSI USA News –

  • MIL-OSI: Hybrid Software Group PLC reports 2024 results with €51.50 million revenue and €12 million EBITDA

    Source: GlobeNewswire (MIL-OSI)

    PRESS RELEASE – REGULATED INFORMATION

    HYBRID SOFTWARE GROUP PLC REPORTS 2024 RESULTS WITH €51.50 MILLION REVENUE AND €12 MILLION EBITDA

    Cambridge (UK), 19 March 2025 (19:00 CET): Hybrid Software Group PLC (Euronext: HYSG) announces that it has published its annual report and financial statements for the financial year ended 31 December 2024.

    The full document is available to download from the financial reports section of the Company’s web site at:  https://www.hybridsoftware.group/investors/financial-reports.

    CEO Mike Rottenborn comments, “2024 was a successful year for Hybrid Software Group, with healthy growth in all business units despite difficult market conditions. We expect similar conditions in 2025, yet we are still very positive about the outlook for Hybrid Software and our customers.

    “Synergies in the business plan aren’t always realised in the market, so it’s very encouraging to see the tandem growth in both our OEM and end-user businesses, with an overall revenue growth of 7% over the previous year. In last year’s letter, I promised to focus on improving the profitability of Hybrid Software, so it’s gratifying to report that we delivered a 286% improvement in our adjusted operating result over 2023, as well as a 64% increase in our EBITDA, despite heavy marketing spending on the Drupa trade fair. We expect to deliver further improvements in the coming year.

    “2024 also saw the launch of a new business unit, Hybrid Software BrandZ, to serve brands and manufacturers of consumer packaged goods with software solutions for artwork management which facilitate downstream print production, opening a market that is potentially much larger than the print providers themselves.”

    Executive Chairman Guido Van der Schueren adds, “We enter 2025 in similar business conditions to 2024 but as a much stronger company, with revenue growth across all our business segments and an even more significant improvement in profitability.  We achieved this through careful cost management while continuing to fully fund our engineering teams and software development programs.

    “In late 2024 we instituted a share buyback program, committing €1 million to buy back and cancel shares as a sort of tax-free dividend to all shareholders. There are strict limits to the number of shares we can buy and the price we can pay for shares, but the impact on our share price has been significant already and we plan to continue this initiative throughout 2025.”

    Financial highlights

    For the year ended 31 December
    In thousands of euros 2024 2023
    Continuing operations    
    Revenue 51,501 48,043
    Operating loss (3,090) (1,161)
    Loss before tax (3,361) (1,667)
    Tax credit 653 2,986
    (Loss)/Profit from continuing operations (2,708) 1,319
    Loss on sale of discontinued operation, net of tax (120) –
    (Loss)/Profit for the period (2,828) 1,319
         
    EBITDA – continuing operations 11,989 7,306
         
    Adjusted operating profit – continuing operations 7,204 2,517
    Adjusted net profit – continuing operations 6,952 1,676
         
    Basic earnings per share (euro) – continuing operations (0.09) 0.04
    Adjusted net basic earnings per share (euro) – continuing operations 0.21 0.05
         
    Cash and cash equivalents 9,513 7,079
    Loans & borrowings (6,500) (7,800)
    Net cash/(debt) 3,013 (721)

    The consolidated pre-tax result for continuing operations was a loss of €3.36 million compared with a loss of €1.67 million in 2023. The increase in the loss of €1.69 million is due to:

    • an increase in revenue of €3.46 million;
    • a decrease in cost of sales of €0.59 million;
    • a decrease in selling, general and administrative expenses of €0.58 million
    • an increase of €6.28 million impairment charge on goodwill;
    • an increase in research and development expenses of €0.17 million;
    • an increase in other operating expenses of €0.06 million;
    • a decrease in other income of €0.05 million;
    • an increase in net finance expenses of €0.02 million; and
    • a decrease in foreign exchange losses of €0.26 million.

    Revenue for the Printing Software Segment was €16.67 million for the year (2023: €14.94 million). During 2024 new contracts were agreed with two existing customers which resulted in €4.3 million of revenue being recognised. In 2023 a new contract was agreed with an existing customer which resulted in €2.6 million of revenue being recognised in that year.

    Revenue for the Printhead Solutions segment was €11.59 million for the year (2023: €11.30 million). In 2022 revenue in this segment had been severely impacted by the shortage of its most commonly used chip. In 2023 it recovered significantly throughout the year which continued into 2024 although at a slower pace.

    Revenue for the Enterprise Software segment was €23.24 million for the year (2023: €21.81 million). In 2023 the segment experienced unfavourable business conditions in its two most important markets, the United States and Germany, which improved in 2024. For the segment year-over-year license royalty income increased by €0.8 million, maintenance and after-sale support services income €0.4 million and services income by €0.2 million.

    Gross profit for the period decreased to 84% of revenue (2023: 82%), primarily due to the lower mix of printing electronics related sales during the year, which have a lower level of gross margin than software because of their manufacturing costs.

    Included in selling, general and administrative expenses is amortisation of €0.90 million (2023: €0.97 million) related to intangible assets recognised as a result of acquisitions.

    In 2024 the Group recorded a goodwill impairment charge of €6.28 million (2023: €nil) in aggregate.

    Research and development expenses includes the capitalisation and amortisation of internally generated intangible assets and the amortisation of certain intangible assets recognised as a result of acquisitions. During the period there was a net capitalisation of development expenditure of €0.53 million (2023: €1.39 million) and amortisation of acquired intangible assets of €4.57 million (2023: €4.76 million).

    The net capitalisation of development expenditure was comprised of €3.45 million (2023: €3.82 million) of capitalised expenditure less €2.92 million (2023: €2.43 million) of amortisation.

    Total operating expenses increased by €5.93 million, or 14.56% compared to the same period in the prior year. Making abstraction of the goodwill impairment of €6.28 million, total operating expenses decreased by €0.35 million, or 0.86% compared to the same period in the prior year.

    Foreign exchange gains and losses are primarily due to the revaluation of currency balances held at the balance sheet date and the change in exchange rates during the year.

    The Company presents EBITDA (earnings before interest, tax, depreciation and amortisation) and adjusted profit when reporting its financial results to provide investors with an additional tool to evaluate the Group’s results in a manner that focuses on what the Group believes to be its underlying business operations.  The Group’s management believes that the inclusion of adjusted financial results provides consistency and comparability with past reports.

    Additional commentary and analysis of the Company’s consolidated results for the year ending 31 December 2024 can be found in the annual report and financial statements.

    Should you wish to receive a printed copy of the annual report, please send an e-mail to investor-relations@hybridsoftware.group or make your request in writing, for the attention of the Company’s Chief Financial Officer, to 2030 Cambourne Business Park, Cambourne, Cambridge, CB23 6DW, UK.

    Annual General Meeting
    The Company will hold its annual general meeting on Thursday 15 May 2025.  The official notice of the meeting will be available on the Company’s website at: https://www.hybridsoftware.group/investors/shareholders-annual-general-meeting.

    About Hybrid Software Group
    Through its operating subsidiaries. Hybrid Software Group PLC (Euronext: HYSG) is a leading developer of enterprise software for industrial print manufacturing. Customers include press manufacturers such as HP, Canon, Durst, Roland, Hymmen, and hundreds of packaging printers, trade shops, and converters worldwide.

    Hybrid Software Group PLC is headquartered in Cambridge UK. Its subsidiary companies are colour technology experts ColorLogic, printing software developers Global Graphics Software, enterprise software developer HYBRID Software, 3D design and modelling software developers iC3D, the industrial printhead driver solutions specialists Meteor Inkjet, and pre-press workflow developer Xitron.

    Contacts

    Attachment

    The MIL Network –

  • MIL-OSI USA: Wisconsinites’ Years of Work Fighting Fentanyl

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    The Halt All Lethal Trafficking of Fentanyl (HALT) Act passed the Senate last week with an overwhelmingly bipartisan vote of 84-16. 

    The HALT Fentanyl Act incorporates the permanent scheduling of fentanyl-related substances, which I first introduced in 2017 in the Stopping Overdoses of Fentanyl Analogues Act (SOFA). It ensures law enforcement has the tools they need to stop fentanyl’s flow into our country. 

    SOFA served as the template for the Trump administration’s temporary scheduling rule in 2018, and it recognizes the admirable devotion of Wisconsinites Dr. Tim Westlake and Lauri Badura (pictured above). Ms. Badura, who founded Saving Others for Archie, made it her life’s mission to end the fentanyl crisis after tragically losing her son, Archie, to fentanyl poisoning. 

    WATCH: Video message from families (including Baduras) to pass the HALT Act

    WATCH: 2017 video with Lauri telling Archie’s story

    As a member of the U.S. Senate Committee on Finance, I met with President Trump last week and we discussed my plan to get spending back to pre-pandemic levels – saving a minimum of $700 billion.

    There is so much room for reducing the size of the federal government and balancing the budget is entirely doable. I look forward to working with the White House and getting spending under control.

    Thank you to Kevin O’Leary for highlighting my chart on Fox Business. This is an eminently reasonable approach to returning to a pre-pandemic level of spending. 

    WATCH: Sen. Johnson on Fox Business discusses his White House meeting 

    WATCH: Sen. Johnson on the Jesse Kelly podcast reviews his plan to balance budget

    • LISTEN: I joined the MAHA Alliance podcast for a powerful discussion on the MAHA movement, RFK Jr., and government corruption.
    • I was highly disappointed to hear that the nomination of Dr. David Weldon to lead the CDC has been withdrawn. Although we will never know exactly why his nomination was pulled, I suspect it had something to do with the fact he has had the courage to be skeptical of the consensus “narrative” surrounding the childhood vaccine schedule. Skepticism is the vital attribute of true science, and it is beyond unfortunate that someone with his background and integrity will not be able to help fix what is broken at the CDC. (I discussed this on Off the Record podcast with Emily Jashinsky.)
    • My X post on the news that Steak n’ Shake will soon be using Wisconsin butter instead of a “buttery blend”. 

    I helped introduce a bipartisan, bicameral bill to expand federal funding for bike and pedestrian safety. The bill is named for American diplomat and Wisconsin native Sarah Debbink Langenkamp, who was killed in 2022 while riding her bicycle in Bethesda. 

    The Sarah Debbink Langenkamp Active Safety Transportation Act will expand federal funding opportunities for local governments to improve roadway safety for bicyclists and pedestrians.  

    While honoring Sarah, this bill will protect Wisconsinites by investing in infrastructure to enhance road safety for pedestrians and cyclists. By using taxpayer dollars effectively, it will help prevent further deaths from preventable traffic accidents and ensure Americans feel safe when using our roads.

    Thank you to everyone who participated in my 114th telephone town hall last week. 

    We are now streaming our town halls on X, so you can listen to it here.
     
    Questions asked include:

    11:45    Introduction
    13:45    Protecting personal information from DOGE 
    16:27    Will there be cuts to Social Security and Medicare?
    18:40    Justice System transparency 
    20:20    Wasteful spending examples
    24:00    Is Social Security a legal Ponzi scheme?
    29:00    ICE and deportations
    31:31    Federal worker layoffs 
    35:04    How do we make the spending cuts permanent?
    40:55    Inspector Generals and oversight
    43:30    Support for Veterans and the VA
    46:08    COVID-19 vaccine requirements for citizenship
    48:04    Wisconsin manufacturing and tariffs
    51:35    Controlling crime and fentanyl 
    54:35    Taxing pensions
    56:45    Bipartisanship
    1:00:25 Federal voter ID and proof of citizenship 
    1:02:36 Balancing the budget

     
    To join future telephone town halls live, sign up here. There is also a link on that page to submit written questions during the live town halls.
     

    MIL OSI USA News –

  • MIL-OSI USA: Attorney General Bonta: Eligible Californians May Submit Taxes for Free

    Source: US State of California

    Wednesday, March 19, 2025

    Contact: (916) 210-6000, agpressoffice@doj.ca.gov

     Offers tips to Californians amid tax season 

    OAKLAND — California Attorney General Rob Bonta today issued a consumer alert urging Californians to learn about free or low-cost tax filing options. As Tax Day approaches, many Californians may seek out assistance with filing their state and federal tax returns. Through the IRS Direct File and CalFile programs, eligible California taxpayers can file their 2024 federal and state taxes for free.  

    “For many families, tax season brings an opportunity to get a catch up on bills, build some financial breathing room for emergencies, or finally take the car in for repairs,” said Attorney General Bonta. “Many consumers turn to third-party tax preparation services for help filing their tax returns and too often wind up paying when they could file for free. To keep more of their hard-earned money in their pockets, I encourage Californians to file early and find out if they qualify for free tax help.”

    IRS Direct File and CalFile allow eligible taxpayers to file federal and state tax returns, respectively, free of charge, quickly, and securely. By removing barriers to filing, these programs may allow consumers to get tax refunds and claim critical tax benefits like California’s Earned Income Tax Credit and Young Child Tax Credit. After completing their federal return with IRS Direct File, California taxpayers are provided a link to CalFile to complete their state tax return for free.

    • IRS Direct File is a free service that allows eligible taxpayers to electronically file their federal tax returns directly with the IRS. To see if you qualify, check here. 
    • Franchise Tax Board’s CalFile is California’s free e-filing service for state tax returns. The FTB’s CalFile program allows qualified individuals to quickly e-file their state tax return directly to the FTB, free of charge. To see if you qualify, check here.  

    MORE TAX PREPARATION RESOURCES: 

    • The IRS Volunteer Income Tax Assistance program provides free tax help to people who make $64,000 or less annually, persons with disabilities, and people who do not understand English well. The Tax Counseling for the Elderly program offers free tax help for all taxpayers, particularly those over 60, specializing in questions about pensions and retirement-related issues. More information on these programs is available here.
    • More Cash in your Pocket: You may qualify for cash back or a reduction of the tax you owe under the Earned Income Tax Credit and the California Earned Income Tax Credit programs.
    • Need more time to prepare? You can use IRS Free File to electronically request an automatic tax-filing extension, regardless of your income. You will then have until October 15 to file a return. More information on how to request an extension can be found on the IRS website.
    • Find a Reputable Tax Preparer: If you decide to hire a tax preparer, make sure your tax preparer is reputable and qualified to provide tax services. In California, only an attorney, certified public accountant (CPA), IRS-enrolled agent, or registered-tax preparer can prepare tax returns for a fee. To confirm whether a tax preparer is registered with the IRS, check here. 

    If you believe you have been the victim of a tax-related scam or other misconduct, you can file a complaint with our office at oag.ca.gov/report or with the IRS. 

    To learn about how to protect yourself and your loved ones against fraud, visit our website at https://oag.ca.gov/consumers/general/taxes. 

    # # #

    MIL OSI USA News –

  • MIL-OSI: EIB submits SEC Form 18-K/A Amendment n. 14 – Entry into force of change to EIB Statute

    Source: GlobeNewswire (MIL-OSI)

    For immediate release

    19 March 2025

    EIB submits SEC Form 18-K/A Amendment No. 14

    The European Investment Bank (EIB) has submitted its SEC Form 18-K/A Amendment No. 14.

    To view the document, please go to EDGAR Filing Documents for 0000950157-25-000239

    The 18-K/A has also been posted on the EIB website:

    Amendment to the Annual Report 2023 (Form 18-K/A Amendment No 14)

    ENDS

    The MIL Network –

  • MIL-OSI Security: Longtime Rollin’ 60s Crips Leader and Show Business Entrepreneur Charged in Federal Complaint Alleging Racketeering Crimes

    Source: Office of United States Attorneys

    LOS ANGELES – A longtime leader of the South Los Angeles-based Rollin’ 60s Neighborhood Crips street gang – who also is an entertainment entrepreneur and a self-proclaimed community activist – has been charged in a federal complaint alleging he ran a criminal enterprise that committed a series of racketeering crimes, including extortion, human trafficking, fraud, and the 2021 murder of an aspiring rap musician, the Justice Department announced today.

    Eugene Henley Jr., 58, a.k.a. “Big U,” of the Hyde Park neighborhood of South Los Angeles, is charged in the complaint with conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.

    Two other alleged members of the criminal enterprise – Sylvester Robinson, 59, a.k.a. “Vey,” of Northridge, and Mark Martin, 50, a.k.a. “Bear Claw,” of the Beverlywood area of Los Angeles – were arrested today on the same criminal complaint in which Henley is charged. 

    Robinson, and Martin are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles. Henley is considered a fugitive.

    “The allegations in the complaint unsealed today reveal a criminal enterprise that engaged in murder, extortion, human trafficking, and fraud – all led by a supposed anti-gang activist and purported music entrepreneur who was nothing more than a violent street criminal,” said Acting United States Attorney Joseph McNally. “Eliminating gangs and organized crime is the Department of Justice’s top priority. Today’s charges and arrests target the leadership of this criminal outfit and will make the neighborhoods of Los Angeles safer. I am grateful for the work of our prosecutors and law enforcement partners.”

    “The lead defendant and others in this case have for too long gotten away with violent acts and stealing money from taxpayers and well-intentioned donors whether they use intimidation tactics or wield influence as rehabilitated original gangsters,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners have worked for four years to bring justice in this case and will continue to rule out this kind of criminal behavior plaguing the streets of Los Angeles.”

    In total, law enforcement in the last 24 hours arrested 10 Rollin’ 60s members and associates who are charged with various federal crimes, including drug trafficking, racketeering conspiracy, and firearms offenses. Four defendants already were in custody. Law enforcement is seeking the whereabouts of five other defendants – three of whom are expected to be in custody shortly. Two defendants, including Henley, are considered fugitives.

    According to an affidavit filed with the criminal complaint filed Monday and unsealed today, from 2010 to the present, Henley’s criminal group – identified in court documents as the “Big U Enterprise” – operated as a mafia-like organization that utilized Henley’s stature and long-standing association with the Rollin’ 60s and other street gangs to intimidate businesses and individuals in Los Angeles. Henley is widely regarded as a leader within the Rollin’ 60s and rose to prominence in the street gang during the 1980s.

    While the Big U Enterprise at times partnered with the Rollin’s 60s and other criminal elements for mutual benefit, the Big U Enterprise is a distinct and independent criminal enterprise engaged in criminal activity including murder, extortion, robbery, trafficking and exploiting sex workers, fraud, and illegal gambling.

    For example, in January 2021, Henley murdered a victim – identified in the affidavit as “R.W.” – an aspiring musician signed to Uneek Music, Henley and Martin’s music label. Shortly before R.W.’s murder, Henley and Uneek Music paid for R.W. to travel to Las Vegas to record music at a Grammy Award-winning music producer’s studio.

    But R.W. did not record at the agreed-upon rate and instead recorded a defamatory song about Henley, causing Henley and Robinson to travel to Las Vegas to confront him. Henley allegedly drove R.W. to North Las Vegas, shot him in the head, and dragged the victim’s body off Interstate 15 into the desert and left it in a ditch. Henley returned to Los Angeles with Robinson and ordered studio workers to leave while his associate removed security surveillance footage from the studio. Henley allegedly later ordered witnesses to not speak with law enforcement about R.W.’s murder.  

    Not only did the enterprise expand its power through violence, fear, and intimidation, but it also used social media platforms, documentaries, podcasts, interviews, and Henley’s reputation and status as an “O.G.” (original gangster) to create fame for – and stoke fear of – the Big U Enterprise, its members, and its associates. 

    In furtherance of the enterprise, Henley allegedly submitted a fraudulent application for a COVID-19 pandemic relief loan in which he claimed that Uneek Music was operating at a $200,000 profit in 2019 despite operating at a $5,000 loss that year, which should have disqualified it from loan eligibility. 

    The enterprise also enriched itself by defrauding donors to nonprofit entities under the control of the Big U Enterprise, including Henley’s charity, Developing Options, a Hyde Park-based nonprofit. Henley marketed Developing Options as giving South Los Angeles youth alternative choices to gang violence, drugs, and other criminal activity. But the Big U Enterprise allegedly used it as a front for fraudulent purposes and to insulate its members from suspicion by law enforcement. 

    Henley allegedly embezzled large donations that celebrities and award-winning companies made to Developing Options, which Henley immediately converted to his personal bank account. According to the complaint, Developing Options is primarily funded through the City of Los Angeles’s Mayor’s Office through the Gang Reduction Youth Development (GRYD) Foundation, portions of which receive federal funding, but also receives donations from prominent sources, including NBA players. 

    “The RICO charges against Mr. Henley and his associates reflect a pattern of crimes that runs the gambit from extortion to tax evasion, all under the umbrella of a well-organized criminal organization led by Mr. Henley,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Additionally, Mr. Henley allegedly duped the County of Los Angeles by running a charitable organization that promoted anti-gang solutions while continuing criminal activity that was directly contrary to his charity. IRS-CI is proud to partner with fellow law enforcement organizations to investigate these criminal organizations to protect our communities from further harm.”

    “From day one, the Los Angeles Police Department has been proud to stand shoulder to shoulder with the FBI in this critical investigation,” said Los Angeles Police Chief Jim McDonnell. “The invaluable expertise provided by the Operations South Bureau FBI Task Force on the Rollin’ 60’s criminal street gang has played a pivotal role in securing these charges. This is a major step forward in our ongoing fight against gang violence, and it brings hope and relief to a community that has endured far too much. Together, we will continue to protect and serve, working tirelessly to ensure the safety of our neighborhoods.”

    Criminal complaints and indictments contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    If convicted, Henley would face a statutory maximum sentence of life in federal prison. If convicted, Robinson, and Martin would face a statutory maximum sentence of 20 years in federal prison. 

    The FBI’s Los Angeles Metropolitan Task Force on Violent Gangs; IRS Criminal Investigation; the United States Department of Justice Office of Inspector General; the Los Angeles Police Department; and the North Las Vegas Police Department are investigating this matter.

    Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section are prosecuting this case.

    MIL Security OSI –

  • MIL-OSI: Hidden Tax Challenges for Small Businesses: FreshBooks 2025 Tax Trend Report

    Source: GlobeNewswire (MIL-OSI)

    Toronto, CANADA, March 19, 2025 (GLOBE NEWSWIRE) — FreshBooks, a leader in cloud-based accounting software for small businesses and accountants, released its in-depth report on how small business owners are thinking about their taxes in 2025. The report uncovers trends among American small business owners on what’s going behind the scenes about their tax habits, fears, and what they do to procrastinate. 

    “At FreshBooks, we understand that tax season can be a source of stress for many small business owners. Our ‘2025 Small Business Tax Trends: Procrastinator or Planner’ report highlights that only 26% of small businesses feel confident about their tax submissions,” said Faye Pang, Chief Growth Officer at FreshBooks. “The data reveals a concerning trend: many small businesses, the backbone of our economy, are essentially ‘winging it’ when it comes to tax submissions. This may lead to costly penalties and unnecessary financial risk. It’s why having an accounting solution like FreshBooks is so important – we keep the hard parts of running a business, easy.”

    Key Takeaways 

    • Confidence gap: Only 26% of small business owners and freelancers feel completely confident about their taxes.
    • Tax preparation methods: Small business owners and freelancers primarily manage their taxes through software (35%) or by hiring accountants (33%).
    • Top challenges: The biggest tax-related headaches include organizing receipts (35%), understanding complex tax laws (33%), and identifying proper deductions (32%).
    • Procrastination trends: While 78% claim to start tax preparation early, 51% of Gen Z self-employed individuals wait until the last minute.
    • Tax compliance: Tax compliance is primarily motivated by fear, with 46% concerned about penalties and 37% worried about potential audits.

    Read the full report.

    Methodology: 
    FreshBooks designed and conducted an online survey of approximately 1,300 self-employed individuals, freelancers, and small business owners from the United States. Participants were sourced through an online panel representing a diverse range of small businesses across various industries, revenue levels, and employment sizes. The study examined tax preparation habits, challenges, and attitudes across demographic segments.

    The survey’s margin of error is +/- 2.7% at 95% confidence.

    About FreshBooks

    FreshBooks is a leading cloud-based SaaS accounting software platform built for small business owners and consistently ranks #1 for ease of use. With an emphasis on keeping things simple and stress-free wherever possible, FreshBooks makes the hard parts of running a business easier. With Freshbooks, small businesses can get paid faster and spend less time on administrative tasks and paperwork, so they can focus on what they do best — growing their businesses.

    The MIL Network –

  • MIL-OSI USA: Fact Sheet: President Donald J. Trump Removes DEI From the Foreign Service

    US Senate News:

    Source: The White House
    RESTORING THE VALUES OF INDIVIDUAL DIGNITY, HARD WORK, AND EXCELLENCE: Today, President Donald J. Trump signed a memorandum removing radical “Diversity, Equity, and Inclusion” (DEI) from the Foreign Service.
    The memorandum directs the Secretary of State to remove the “Diversity, Equity, Inclusion, and Accessibility” Core Precept from Foreign Service tenure and promotion criteria.
    It further directs that the U.S. government will not base Foreign Service recruitment, hiring, promotion, or retention decisions on an individual’s race, color, religion, sex, or national origin, nor embed discriminatory equity ideology within any element of the Foreign Service.
    Relevant agencies shall identify and take appropriate action regarding any Foreign Service Officer who knowingly and willfully engaged in illegal discrimination.
    PUTTING MERIT FIRST: President Trump believes that hiring in all parts of government should be based solely on merit.
    Under the previous administration, divisive and discriminatory policies were systematically embedded into every part of the State Department.
    Biden’s State Department conditioned eligibility for promotions on an employee’s ability to pass a DEI loyalty test.
    In 2023, Biden’s Chief Diversity and Inclusion Officer for the State Department, Gina Abercrombie-Winstanley, said: “We made the change that if you wanted to be considered for promotion at the Department of State, you must be able to document what you are doing to support diversity, equity and inclusion and accessibility. This is how you are judged for promotion.”

    Biden’s State Department published a “Five-Year Diversity, Equity, Inclusion, and Accessibility (DEIA) Strategic Plan” that included a department-wide “DEIA Climate Survey” and implemented a comprehensive recruitment plan to aggressively target so-called “underrepresented groups.”
    Foreign policy positions should be filled by the most qualified individuals, not by discriminatory quotas or ideological requirements.
    SERVING AMERICA, NOT IDEOLOGICAL AGENDAS: President Trump is restoring fairness and accountability in federal hiring, and terminating DEI across the federal government.
    In his first week in office, President Trump signed an Executive Order restoring merit-based hiring and promotions across the federal government.
    President Trump also signed an Executive Order ending radical and wasteful DEI programs and preferencing.
    President Trump: “We will terminate every diversity, equity, and inclusion program across the entire federal government.”

    MIL OSI USA News –

  • MIL-OSI USA: Governor Stein Announces 2025-2027 Budget Proposal to Keep North Carolina Strong

    Source: US State of North Carolina

    Headline: Governor Stein Announces 2025-2027 Budget Proposal to Keep North Carolina Strong

    Governor Stein Announces 2025-2027 Budget Proposal to Keep North Carolina Strong
    lsaito

    Raleigh, NC

    Today, Governor Josh Stein joined State Budget Director Kristin Walker to announce his 2025-2027 budget proposal to keep North Carolina strong. The Governor’s budget makes key investments in the economy, families, education, workforce, health care, and public safety to help ensure every North Carolinian has a shot at a brighter future.

    “North Carolina is strong because our people are strong, and we must work to maintain our strength so that future generations will continue to reap the benefits of our work,” said Governor Josh Stein. “My budget is balanced and puts kids and families – their job opportunities, their education, their wallets, their health and their safety – first.”

    Building A Strong Workforce

    Every North Carolinian deserves the opportunity to get a good-paying job or start a small business. The Governor’s budget expands job opportunities by investing in apprenticeship programs, providing free community college to students pursuing credentials in high-demand industries, and supporting people rejoining the workforce after incarceration. 

    Strengthening Families & Lowering Costs

    Too many North Carolinians are struggling to pay their bills as costs continue to climb, especially housing and child care. Governor Stein’s budget seeks to strengthen families and lower costs by expanding high-quality child care options and paying early childhood educators more, cutting taxes for middle class families, and building more homes. The budget’s targeted tax cuts will put more money back in people’s pockets and help offset the cost of child care and other basic necessities. 

    Improving Public Education

    Investing in North Carolina’s children is an investment in the state’s future. Governor Stein’s budget raises starting teacher pay to be the highest in the Southeast and rewards and retains teachers so that students have access to the best education. It also invests in student health by hiring more school nurses, counselors, and social workers and providing free breakfast in our public schools. It takes on school safety by upgrading school infrastructure and reduces the distraction of cell phones in classrooms. Finally, the Governor’s budget proposes a $4 billion bond to modernize old and outdated school buildings.

    Keeping North Carolinians Safe & Healthy

    Governor Stein is committed to keeping North Carolinians safe & healthy. The Governor’s budget addresses the shortage of law enforcement officers with raises for state law enforcement officers, particularly correctional officers and youth counselors. It also recommends investments that get deadly fentanyl off the street, solve cold sexual assault cases, and fund body cameras to produce objective evidence. Governor Stein’s budget strengthens the health of all North Carolinians by promoting affordable health care, supporting rural clinics, helping people who are struggling with substance use disorder, and ensuring people have clean air to breathe and clean water to drink.

    Promoting Fiscal Soundness & Operational Excellence

    Taxpayers deserve to know that their money is being well spent. The Governor’s budget establishes an IMPACT Center to improve efficiency and effectiveness of state programs so that we can achieve greater value for every tax dollar and ensure a simple, user-friendly experience for North Carolinians. It also recognizes that North Carolina’s needed investments are impossible with current pre-programmed tax breaks for corporations and wealthy individuals. Governor Stein’s budget proposes freezing current individual and corporate tax rates so that the state can keep up with its rapid population growth and avoid a fiscal cliff.

    Click here to read Governor Stein’s full budget proposal.  

    Mar 19, 2025

    MIL OSI USA News –

  • MIL-OSI Economics: Sanjay Malhotra: Transforming grievance redress – the AI advantage

    Source: Bank for International Settlements

    I am delighted to participate in this year’s Annual Conference of the RBI Ombudsmen. The Reserve Bank has been organising this conference on or around the World Consumer Rights Day, that is, 15th March. World Consumer Rights Day is celebrated every year with the aim of raising global awareness about consumer rights and needs. We organise this conference to reflect on our achievements with regard to consumer services and to deliberate on how to improve services and reduce grievances. We need to improve consumer services, not only because it is our duty to do so, but because it is in our selfish interest to do so. In this age of competition, we would not survive long if we do not provide quality service to our consumers.

    We have made tremendous strides in improving consumer services over the years. We have enabled internet banking and mobile banking. Most of the banking services, be it opening a deposit account, or taking a small loan have been digitised, adding to the convenience and speed. We are making record number of digital transactions through UPI and other means of digital payments. Many among the younger generation may have never visited a bank branch. We have even enabled opening of accounts using video KYC.

    While we have enhanced customer experience over the years, the high number of customer grievances continues to be a matter of serious concern. I am told that last year (2023-24), the 95 Scheduled Commercial Banks alone received over 10 million complaints from their customers. If we take into account the complaints received at other RBI-regulated entities (REs), the number would be even higher. One may argue that this amounts to only four complaints per thousand accounts per year as there are about 2.5 billion bank accounts. But, for us, even one complaint is a cause of concern. We have 10 million complaints and with the rapidly growing customer base and expanding suite of products, this may grow, if we do not get our act together.

    Customer satisfaction – a cornerstone for banking and other financial services

    Excellent customer service, in fact excellent customer experience is a sine qua non in any service industry. Our effort should be to enhance the total customer experience. The experience should be such that there is no cause for a grievance that requires a redress. Let me state a fundamental truth: every complaint is a test of trust. When a consumer files a grievance – whether for a disputed transaction, a lapse in service, inappropriate pricing or charges or an unfair practice – it is a signal that our system has fallen short. Left unresolved, such issues can erode consumer confidence and tarnish the entire ecosystem.

    I am reminded of a real story about customer service. Some of you, especially the management graduates, may have heard it but it is so appropriate for today’s theme that it is worth being retold. In the winter of 1975, in a town in Alaska, a man walked into a store and complained to the salesman present that the snow tyres that he bought some time ago were not holding. The salesman was a little puzzled. He said that he could not replace them but will check what he could do and went to the back of the store. Those of you, who have visited departmental stores in the USA, would know that refunds are processed at the back of the store. The salesman came back after some time and handed over some cash as refund and the customer left satisfied. Can anyone guess why this was unique, as no questions asked policy for refunds is fairly common in the USA? It is because the company in question is Nordstrom which does not even sell tyres. It sells apparel and shoes. But, for Nordstrom, customer comes first. Trusting him and winning his trust is more important than anything else.

    Some say that this is not a true story. How is this possible? How could a company offer refund for a product which it never sold? Nordstrom, however, insists that this incident did take place. Nordstrom had acquired three stores from another company that sold miscellaneous articles including tyres. The customer did not realise that the store had changed and walked in with his complaint. The key message is that Nordstrom saw itself being in the business of customer service, and not just selling goods. We too need to realise that we are in the business of providing unalloyed customer service and not just selling banking and other financial services.

    Top management to accord priority to customer service

    I am sure you will all agree that we are indeed in the business of customer service. However, I suspect that we are not spending enough time on customer service and grievance redressal as a result of which not only are there a large number of complaints being received by banks and NBFCs but in the absence of satisfactory resolution, a large number of them are getting escalated to RBI Ombudsmen.

    Let me give you some perspective. The number of complaints received under RBI’s Integrated Ombudsman Scheme increased at a compounded average growth rate of almost 50 per cent per year over last two years to 9.34 lakh in 2023-24. The number of complaints processed at the Office of RBI Ombudsman increased by 25 per cent from about 2,35,000 in 2022-23 to almost 2,94,000 in 2023-24. Not only are large number of complaints getting escalated, a large proportion of them – nearly 57 per cent of the maintainable complaints last year – required mediation or formal intervention by the RBI Ombudsmen. You would all agree that this is a highly unsatisfactory situation and needs our urgent attention.

    I would, therefore, strongly urge all the MD&CEOs, Zonal and Regional Managers and the Branch Managers to spend some time every week, if not every day on grievance redressal. This is a must. All great CEOs find time to do it. We too must keep some time in our diary for improving customer service and grievance redressal.

    Improving customer service systems

    Customer complaints aren’t a nuisance – they are in fact opportunities to improve, innovate, and build trust. Handling them well can define your success. Each unresolved grievance is a missed opportunity for regulated entities to reaffirm customer trust and loyalty. It is also a warning signal as repeat complaints are often signs of systemic flaws. Today, complaints often surface on social media even before reaching official channels, highlighting the need for proactive measures.

    The effort thus should be to not only resolve the complaints but also to ensure that the same type of complaint does not arise again. Many of the complaints like digital transaction disputes, unauthorized charges, or miscommunication frequently recur. These are clearcut symptoms of underlying issues in the overall customer service framework of the regulated entities. A thorough root cause analysis should be performed for each complaint so as to enable remedial action and avoid repetition of same type of complaint.

    In fact, I would go a step further. Best service is not one in which there is no occasion for grievance redressal but one in which there is no occasion for the customer service department to step in. Systems should work seamlessly and conveniently so that customers do not have to call the branch or the customer service centre or talk to anyone in the Bank or NBFC. Systems have to be so user-friendly that customers can rely on self-service rather than being dependent on anyone else.

    Improving internal grievance redressal systems

    While improving systems to reduce grievances is important, setting up a robust grievance redressal system is equally important for all regulated entities. I would urge you all to review the same. While the regulations do not make any prescription for the organisational structure for grievance redressal, my experience suggests that there should be at least two levels for grievance redressal in large REs, with unresolved grievances getting escalated from the lower to the higher level. The highest level should be at a fairly high rank. This to ensure that requests do not get rejected without having been examined by a senior functionary who is empowered to take decisions in consumer interest. This will help reduce grievances getting escalated to the Ombudsman. It must also be ensured that there are sufficient number of grievance redress officers at all levels including in the Internal Ombudsman office.

    I would also like to draw your attention to the misclassification of complaints as requests, queries, and disputes by the regulated entities. This results in the complainants’ grievances remaining unaddressed. Moreover, this is also a gross regulatory violation.

    Major areas of service improvement

    Let me now briefly allude to some of the major areas where we need to improve. These relate to KYC, digital frauds, mis-selling, and aggressive recovery practices.

    As for KYC, we need to ensure that once a customer has submitted documents to a financial institution, we do not insist on obtaining the same documents again. Once the customer has updated his details, for example, his residential address, with one regulated entity of any financial sector regulator, it gets updated in CKYCR and other REs are notified of the updation. PML Rules made by the Department of Revenue in the Ministry of Finance and RBI’s Master Directions on KYC mandate regulated entities to check the CKYCR system before seeking KYC documents for opening an account. However, most banks and NBFCs have not enabled the same in their branches/business outlets, causing avoidable inconvenience to customers. This may be facilitated early. This will be in the interest of all.

    Another important issue connected to customer protection is rising digital frauds. It is a matter of great concern that innocent customers continue to fall prey to scamsters. While this could be attributed to rise in digital transactions and innovative methods adopted by fraudsters, lack of customer awareness is also a major reason for the same. To mitigate this menace, REs not only need to put in place robust internal controls but also enhance digital financial literacy.

    The issues of mis-selling and aggressive recovery practices have been highlighted earlier too. In this context too, I would request you to keep consumer interest supreme.

    Embracing technology – the AI way

    Let me now come to the theme of this year’s conference: AI’s potential to revolutionize grievance redressal. We are entering an exciting era where technology, particularly artificial intelligence (AI), can drive remarkable improvements in speed, accuracy, and fairness of complaint resolution.

    AI can help categorize incoming complaints by urgency, complexity, or subject area, ensuring minimal delay in reaching the right people or the right team. AI can also help in optimising complaint routing. Further, it can assist in decision-making and reducing processing time.

    Secondly, AI can be used to pinpoint systemic gaps by analysing both structured and unstructured data such as emails, chat logs, and call transcripts. This will aid in identifying training needs and guiding necessary process reforms. Using data from millions of consumer branch visits, call centre logs, mobile apps, and social media, a unified, AI-driven view of all these interactions can help identify common pain points more efficiently. Leveraging data analytics, sentiment analysis, and predictive models, AI can be used to analyse large volumes of data to detect spikes in issues – such as ATM failures or erroneous charges – and alert REs pre-emptively.

    Lastly, in a linguistically diverse country like India, AI-driven chatbots and voice recognition tools can eliminate language barriers by operating in local languages. Moreover, the implementation of conversational AI in chatbots, voicebots, and advanced IVR systems can handle routine queries round the clock, thereby freeing people to focus on cases that require empathy and complex problem-solving.

    In short, integrating AI at every stage – from complaint lodging to closure – can result in a seamless, efficient, and data-driven grievance redressal system. Such a framework not only reduces processing times and addresses repetitive complaints but also fosters equitable outcomes by mitigating human biases. It is time that the banking industry explores and pioneers the integration of technology – including AI – to strengthen the grievance resolution mechanisms and make it best in class across the globe.

    Challenges and guardrails in AI driven grievance redressal system

    While AI presents unparalleled opportunities, we need to be cognizant of the challenges and risks that its adoption poses. There are concerns on data privacy, algorithmic bias and complexity in AI-driven models. As we embrace AI in grievance redressal or any other process, we must also remain mindful of ethical considerations. Human oversight, bias mitigation and data privacy must be integrated into the AI Systems to ensure transparent and consistent outcomes.

    Investing in human resources

    While technology in all its forms is a powerful enabler, I would like to emphasise that it is no substitute for integrity, empathy, and human judgment. In a world increasingly driven by data, algorithms, and automation, it is all too easy to lose sight of the human element. Every transaction represents not just a number in a ledger, but the hard-earned savings of a family, the dreams of a small entrepreneur, or the lifelong savings of a senior citizen. It is, therefore, critical that REs continue to invest in human resources dedicated for customer service and grievance redressal. It is essential to invest in training of staff, especially in behavioural aspects of customer service. Moreover, the staff needs to be empowered to take decisions based on their judgement to redress consumer grievances, enhance customer satisfaction and win consumer trust.

    RBI as a facilitator

    In the end, I would like to assure you that, while we exhort you to provide services efficiently to customers, we in the Reserve Bank shall also provide various services, approvals, clarifications, etc. to the regulated entities in a timely manner. We already have a citizen’s charter. We are in the process of reviewing the charter. We will make the charter comprehensive to include all services that we offer either to the REs or directly to citizens. Moreover, we are reviewing the timelines for each service. It will be our endeavour to provide all approvals, etc. within the timelines. We are also making mandatory the use of PRAVAAH, which is RBI’s secure and centralised web-based portal for any individual or entity to seek authorisation, license or regulatory approval on any reference made to the Reserve Bank in a timely manner. This will help us in expediting the disposal of applications received by the Reserve Bank.

    Conclusion

    We stand at a pivotal juncture as India looks to realise its dream of a more resilient and inclusive Viksit Bharat. With the financial sector touching the lives of almost the entire population, we have a critical role. To succeed in this role, we must continue to enhance customer service and customer protection.

    Thank you !

    MIL OSI Economics –

  • MIL-OSI: XBP Europe Holdings, Inc. Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Full Year 2024 Highlights

    • Revenue of $142.8 million, decrease of 8.0% year-over-year
    • Gross margin of 26.8%, a 110 bps increase year-over-year
    • Operating profit of $3.5 million, an increase of $2.4 million year-over-year
    • Approximately $25M of ACV in active ramp, resulting in an incremental step-up in margin contribution in the second half of 2024
    • Signed an exclusive, non-binding LOI to acquire Exela Technologies BPA, LLC, a potentially transformational deal that could expand XBP Europe’s revenue to ~$1 billion annually

    Fourth Quarter 2024 Highlights

    • Revenue of $35.6 million, decrease of 7.5% year-over-year and increase of 0.7% sequentially
    • Gross margin of 28.3%, a 480 bps increase year-over-year and 440 bps decrease sequentially
    • Operating profit of $1.0 million, an increase of $3.4 million year-over-year and a decrease of $1.5 million sequentially
    • Net loss of $2.7 million includes $0.5 million of FX losses, an improvement of $2.4 million year-over-year and $0.1 million sequentially

    LONDON and SANTA MONICA, Calif., March 19, 2025 (GLOBE NEWSWIRE) — XBP Europe Holdings, Inc. (“XBP Europe” or “the Company”) (NASDAQ: XBP), a pan-European integrator of bills, payments, and related solutions and services seeking to enable the digital transformation of its clients, announced today its financial results for the quarter and full year ended December 31, 2024.

    “We ended 2024 with growing momentum, as we continued to ramp our recently awarded contracts, leading to improving profitability and operating metrics. We are excited about our organic growth trajectory in 2025 and we continue to work towards a potential acquisition of Exela Technologies BPA, LLC in 2025 so that we can benefit from global scale,” said Andrej Jonovic, Chief Executive Officer of XBP Europe.

    Full Year Highlights

    • Revenue: Total Revenue for 2024 was $142.8 million, a decline of 8.0% year-over-year, primarily due to completion of projects, lower volumes, and client contract ends, offset by positive impact of newly won business.
      • Bills & Payments segment revenue was $101.9 million, a decline of 7.8% year-over-year, primarily attributable to completion of one-time projects, lower volumes, and client contract end, offset by the positive impact of newly won business.
      • Technology segment revenue was $40.9 million, a decrease of 8.5% year-over-year, largely due to a lower volume of licenses sold, offset by a drop in technology implementation and professional services revenue.
    • Operating Profit: Operating Profit was $3.5 million, an increase of $2.4 million compared to 2023. This improvement was driven primarily by higher gross margins coupled with SG&A cost optimizations. Our operating expenses include costs associated with accelerated migration to the cloud.
    • Net Loss: Net loss from continuing operations was $6.5 million, compared with a net loss from continuing operations of $5.6 million in 2023. The year-over-year increase was primarily driven by higher income tax expense and interest expense, offset by higher operating profit and lower related party interest expense.
    • Adjusted EBITDA(1): Adjusted EBITDA from Continuing Operations was $13.4 million, a decrease of $2.4 million or 15.1% compared to 2023. Adjusted EBITDA margin was 9.4%, a decrease of 80 basis points from 10.2% in 2023.
    • Capital Expenditures: Capital expenditures were 1.2% of revenue compared to 1.7% of revenue in 2023, with the decrease primarily due to lower purchases of PP&E.
    • Adequate Liquidity: The Company’s cash and cash equivalents totaled $12.1 million as of December 31, 2024.

    Other Highlights:

    • Pending Acquisition: As announced on March 4, 2025, XBP Europe has entered into an exclusive, non-binding letter of intent with Exela Technologies, Inc. to acquire Exela Technologies BPA, LLC (“BPA”), a leading provider of business process automation solutions. The closing of the acquisition will be subject to BPA completing a corporate reorganization which is expected to create a sustainable capital structure with a substantially deleveraged balance sheet. If completed, the acquisition will expand XBP Europe’s revenue to more than $1 billion from $145 million on a pro forma basis for the twelve months ending September 30, 2024. The parties have agreed to act in good faith to negotiate definitive agreements, complete due diligence, undertake necessary regulatory approvals, and seek any necessary approvals, including from XBP Europe’s shareholders. Accordingly, there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Readers are cautioned that those portions of the LOI that describe the proposed transaction are non-binding. XBP Europe only intends to announce additional details regarding the proposed transaction if and when a definitive agreement is executed.

    Segment Revenue and Profitability:

      Three months ended December 31, 2024
      Bills & Payments   Technology   Total
    Revenue, net $ 25,851   $ 9,794   $ 35,645
    Cost of revenue 20,460   5,108   25,568
    Segment Gross Profit 5,391   4,686   10,077
               
      Three months ended December 31, 2023
      Bills & Payments   Technology   Total
    Revenue, net $ 27,368   $ 11,165   $ 38,533
    Cost of revenue 24,203   5,270   29,472
    Segment Gross Profit 3,165   5,895   9,061
      Twelve months ended December 31, 2024
      Bills & Payments   Technology   Total
    Revenue, net $ 101,850   $ 40,922   $ 142,772
    Cost of revenue 85,454   19,059   104,513
    Segment Gross Profit 16,396   21,863   38,259
               
      Twelve months ended December 31, 2023
      Bills & Payments   Technology   Total
    Revenue, net $ 110,458   $ 44,719   $ 155,177
    Cost of revenue 95,572   19,738   115,310
    Segment Gross Profit 14,886   24,981   39,867
               

    Below is the note referenced above:

    (1)   Adjusted EBITDA is a non-GAAP measure. A reconciliation of Adjusted EBITDA is attached to this release.

    Supplemental Investor Presentation
    An investor presentation relating to our fourth quarter and full year 2024 performance is available at investors.xbpeurope.com. This information has also been furnished to the SEC in a current report on Form 8-K.

    About Non-GAAP Financial Measures
    This press release includes constant currency, EBITDA and Adjusted EBITDA, each of which is a financial measure that is not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). XBP Europe believes that the presentation of these non-GAAP financial measures will provide useful information to investors in assessing our financial performance, results of operations and liquidity and allows investors to better understand the trends in our business and to better understand and compare our results. XBP Europe’s board of directors and management use constant currency, EBITDA and Adjusted EBITDA to assess XBP Europe’s financial performance, because it allows them to compare XBP Europe’s operating performance on a consistent basis across periods by removing the effects of XBP Europe’s capital structure (such as varying levels of debt and interest expense, as well as transaction costs resulting from the combination with CF Acquisition Corp. VIII. on November 29, 2023). Adjusted EBITDA also seeks to remove the effects of restructuring and related expenses and other similar non-routine items, some of which are outside the control of our management team. Restructuring expenses are primarily related to the implementation of strategic actions and initiatives related to right sizing of the business. All of these costs are variable and dependent upon the nature of the actions being implemented and can vary significantly driven by business needs. Accordingly, due to that significant variability, we exclude these charges since we do not believe they truly reflect our past, current or future operating performance. The constant currency presentation excludes the impact of fluctuations in foreign currency exchange rates. We calculate constant currency revenue on a constant currency basis by converting our current-period local currency revenue using the exchange rates from the corresponding prior-period and compare these adjusted amounts to our corresponding prior period reported results. XBP Europe does not consider these non-GAAP measures in isolation or as an alternative to liquidity or financial measures determined in accordance with GAAP. A limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in XBP Europe’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures and therefore the basis of presentation for these measures may not be comparable to similarly-titled measures used by other companies. These non-GAAP financial measures are not required to be uniformly applied, are not audited and should not be considered in isolation or as substitutes for results prepared in accordance with GAAP. Net loss is the GAAP measure most directly comparable to the non-GAAP measures presented here. For reconciliation of the comparable GAAP measures to these non-GAAP financial measures, see the schedules attached to this release.

    Forward-Looking Statements
    This press release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act, including certain financial forecasts and projections. All statements other than statements of historical fact contained in this press release, including statements as to future results of operations and financial position, revenue and other metrics planned products and services, business strategy and plans, objectives of management for future operations of XBP Europe, market size and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by XBP Europe and its management, as the case may be, are inherently uncertain and many factors may cause the actual results to differ materially from current expectations which include, but are not limited to: (1) the outcome of any legal proceedings that may be instituted against XBP Europe or others and any definitive agreements with respect thereto; (2) the inability to meet the continued listing standards of Nasdaq or another securities exchange; (3) the risk that the business combination disrupts current plans and operations of XBP Europe and its subsidiaries; (4) the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of XBP Europe and its subsidiaries to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (5) costs related to the business combination; (6) changes in applicable laws or regulations; (7) the possibility that XBP Europe or any of its subsidiaries may be adversely affected by other economic, business and/or competitive factors; (8) risks related to XBP Europe’s potential inability to achieve or maintain profitability and generate cash; (9) the impact of the COVID-19 pandemic, including any mutations or variants thereof, and its effect on business and financial conditions; (10) volatility in the markets caused by geopolitical and economic factors; (11) the ability of XBP Europe to retain existing clients; (12) the potential inability of XBP Europe to manage growth effectively; (13) the ability to recruit, train and retain qualified personnel, and (14) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Annual Reports on Form 10-K filed on April 1, 2024 and, our subsequent quarterly reports on Form 10-Q and our current reports on Form 8-K as filed with the Securities and Exchange Commission (the “SEC”). These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. Readers should not place undue reliance on forward-looking statements, which speak only as of the date they are made. XBP Europe gives no assurance that either XBP Europe or any of its subsidiaries will achieve its expected results. XBP Europe undertakes no duty to update these forward-looking statements, except as otherwise required by law.

    About XBP Europe
    XBP Europe is a pan-European integrator of bills, payments and related solutions and services seeking to enable digital transformation of its more than 2,000 clients. The Company’s name – ‘XBP’ – stands for ‘exchange for bills and payments’ and reflects the Company’s strategy to connect buyers and suppliers, across industries, including banking, healthcare, insurance, utilities and the public sector, to optimize clients’ bills and payments and related digitization processes. The Company provides business process management solutions with proprietary software suites and deep domain expertise, serving as a technology and services partner for its clients. Its cloud-based structure enables it to deploy its solutions across the European market, along with the Middle East and Africa. The physical footprint of XBP Europe spans 15 countries and 32 locations and a team of approximately 1,500 individuals. XBP Europe believes its business ultimately advances digital transformation, improves market wide liquidity by expediting payments, and encourages sustainable business practices. For more information, please visit: www.xbpeurope.com.

    For more XBP Europe news, commentary, and industry perspectives, visit: https://www.xbpeurope.com/
    And please follow us on social:
    X: https://X.com/XBPEurope
    LinkedIn: https://www.linkedin.com/company/xbp-europe/

    The information posted on XBP Europe’s website and/or via its social media accounts may be deemed material to investors. Accordingly, investors, media and others interested in XBP Europe should monitor XBP Europe’s website and its social media accounts in addition to XBP Europe’s press releases, SEC filings and public conference calls and webcasts.

    Investor and/or Media Contacts:
    investors@xbpeurope.com

     
    XBP Europe Holdings, Inc.
    Consolidated Balance Sheets
    For the years ended December 31, 2024 and 2023
    (in thousands of United States dollars except share and per share amounts)
               
      December 31, 
      2024      2023
    ASSETS            
    Current assets            
    Cash and cash equivalents $ 12,099   $ 6,537
    Accounts receivable, net of allowance for credit losses of $1,198 and $1,183, respectively   19,810     30,238
    Inventories, net   3,823     4,045
    Prepaid expenses and other current assets   4,228     6,550
    Current assets held for sale   1,378     2,497
    Total current assets   41,338     49,867
    Property, plant and equipment, net of accumulated depreciation of $40,325 and $39,876, respectively   11,272     12,811
    Operating lease right-of-use assets, net   4,805     5,206
    Goodwill   21,666     22,823
    Intangible assets, net   1,121     1,498
    Deferred income tax assets   7,026     6,811
    Other noncurrent assets   817     705
    Noncurrent assets held for sale   —     3,018
    Total assets $ 88,045   $ 102,739
               
    LIABILITIES AND STOCKHOLDERS’ DEFICIT            
    LIABILITIES            
    Current liabilities            
    Accounts payable $ 12,553   $ 13,281
    Related party payables   5,443     13,012
    Accrued liabilities   17,993     23,850
    Accrued compensation and benefits   16,482     16,267
    Customer deposits   277     323
    Deferred revenue   6,870     6,004
    Current portion of finance lease liabilities   12     91
    Current portion of operating lease liabilities   1,734     1,562
    Current portion of long-term debts   4,958     3,863
    Current liabilities held for sale   2,443     3,818
    Total current liabilities   68,765     82,071
    Related party notes payable   1,451     1,542
    Long-term debt, net of current maturities   23,966     12,763
    Finance lease liabilities, net of current portion   —     23
    Pension liabilities   10,339     12,208
    Operating lease liabilities, net of current portion   3,271     3,785
    Other long-term liabilities   1,599     1,635
    Noncurrent liabilities held for sale   —     1,280
    Total liabilities $ 109,391   $ 115,307
                 
               
    STOCKHOLDERS’ DEFICIT            
    Preferred stock, par value of $0.0001 per share; 10,000,000 shares authorized; none issued and outstanding as of December 31, 2024 and December 31, 2023, respectively   —     —
    Common Stock, par value of $0.0001 per share; 200,000,000 shares authorized; 30,166,102 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively   30     30
    Additional paid in capital   1,611     —
    Accumulated deficit   (23,705)     (11,339)
    Accumulated other comprehensive loss:            
    Foreign currency translation adjustment   474     (1,416)
    Unrealized pension actuarial gains, net of tax   244     157
    Total accumulated other comprehensive loss   718     (1,259)
    Total stockholders’ deficit   (21,346)     (12,568)
    Total liabilities and stockholders’ deficit $ 88,045   $ 102,739
               
    XBP Europe Holdings, Inc.
    Consolidated Statements of Operations
    For the years ended December 31, 2024 and 2023
    (in thousands of United States dollars except share and per share amounts)
               
      Year ended December 31, 
      2024      2023
    Revenue, net $ 142,408   $ 154,943
    Related party revenue, net   364     234
    Cost of revenue (exclusive of depreciation and amortization)   104,467     115,234
    Related party cost of revenue   47     76
    Selling, general and administrative expenses (exclusive of depreciation and amortization)   26,525     31,173
    Related party expense   5,101     4,633
    Depreciation and amortization   3,160     2,944
    Operating profit   3,472     1,117
    Other expense (income), net            
    Interest expense, net   6,232     5,035
    Related party interest expense, net   90     1,971
    Foreign exchange losses, net   2,520     599
    Changes in fair value of warrant liability   (43)     (597)
    Pension income, net   (1,705)     (929)
    Net loss before income taxes   (3,622)     (4,962)
    Income tax expense   2,911     606
    Net loss from continuing operations   (6,533)     (5,568)
    Net loss from discontinued operations, net of income taxes   (5,833)     (5,479)
    Net loss $ (12,366)   $ (11,047)
    Loss per share:           
    Basic and diluted – continuing operations $ (0.22)   $ (0.25)
    Basic and diluted – discontinued operations   (0.19)     (0.24)
    Basic and diluted $ (0.41)   $ (0.49)
               
    XBP Europe Holdings, Inc.
    Consolidated Statements of Cash Flows
    For the years ended December 31, 2024 and 2023
    (in thousands of United States dollars)
               
      Years ended December 31, 
      2024      2023
    Cash flows from operating activities          
    Net loss $ (12,366)   $ (11,047)
    Adjustments to reconcile net loss to net cash used in operating activities:           
    Depreciation   2,965     3,467
    Amortization of intangible assets   750     384
    Debt issuance cost amortization   216     —
    Impairment of goodwill   87     —
    Credit loss expense   16     343
    Changes in fair value of warrant liability   (43)     (597)
    Stock-based compensation expense   1,611     —
    Unrealized foreign currency losses (gains)   2,428     (616)
    Change in deferred income taxes   (247)     (422)
               
    Change in operating assets and liabilities          
    Accounts receivable   9,568     5,990
    Inventories   240     (58)
    Prepaid expense and other assets   2,297     2,123
    Accounts payable   (365)     (2,417)
    Related party payables   (8,446)     (843)
    Accrued expenses and other liabilities   (4,848)     2,629
    Deferred revenue   1,099     67
    Customer deposits   (189)     (538)
    Net cash used in operating activities   (5,227)     (1,535)
               
    Cash flows from investing activities           
    Purchase of property, plant and equipment   (1,263)     (2,330)
    Cash paid for costs of fulfilling a contract   —     (339)
    Additions to internally developed software   (447)     —
    Net cash used in investing activities   (1,710)     (2,669)
               
    Cash flows from financing activities           
    Borrowings under secured borrowing facility   —     87,635
    Principal repayment on borrowings under secured borrowing facility   (79)     (91,662)
    Borrowings under 2024 Term Loan A Facility   3,834     —
    Borrowings under 2024 Term Loan B Facility   11,360     —
    Borrowings under 2024 Revolving Credit Facility   15,352     —
    Cash paid for debt issuance costs   (1,527)     —
    Principal payments on 2024 Term Loan A Facility   (383)     —
    Principal payments on 2024 Term Loan B Facility   (1,136)     —
    Principal payments on long-term obligations   (15,270)     (920)
    Proceeds from Secured Credit Facility   930     223
    Principal payments on finance leases   (635)     (786)
    Proceeds from Business Combination, net of transaction expenses   —     5,205
    Net cash provided by (used in) financing activities   12,446     (305)
    Effect of exchange rates on cash and cash equivalents     (308)     3,941
    Net increase (decrease) in cash and cash equivalents   5,201     (568)
               
    Cash and equivalents, beginning of period, including cash from discontinued operations   6,905     7,473
    Cash and equivalents, end of period, including cash from discontinued operations $ 12,106   $ 6,905
               
    Supplemental cash flow data:            
    Income tax payments, net of refunds received   567     1,059
    Interest paid         3,429     1,798
               
    XBP Europe Holdings, Inc.
    Schedule 1: Reconciliation of Adjusted EBITDA and constant currency revenues
         
    Reconciliation of Non-GAAP Financial Measures to GAAP Measures    
             
    Non-GAAP constant currency revenue reconciliation      
        Twelve Months ended December 31, 
    ($ in thousands)   2024   2023
    Revenues, as reported (GAAP)   142,772   155,177
    Foreign currency exchange impact (1)   (1,055)   – 
    Revenues, at constant currency (Non-GAAP)   141,717   155,177
             
    Reconciliation of Adjusted EBITDA from Continuing Operations             
        Year Ended December 31, 
    (dollars in thousands)   2024      2023
    Net loss from continuing operations   $ (6,533)   $ (5,568)
    Income tax expense     2,911     606
    Interest expense including related party interest expense, net     6,322     7,006
    Depreciation and amortization     3,160     2,944
    EBITDA from continuing operations     5,860     4,988
    Restructuring and related expenses (2)     1,879     5,053
    Employee litigation matter (3)     1,283     1,431
    Related party management fee and royalties (4)     —     1,330
    Foreign exchange losses, net     2,520     599
    Non-cash equity compensation (5)     1,611     —
    Changes in fair value of warrant liability     (43)     (597)
    Transaction Fees (6)     280     2,970
    Adjusted EBITDA from continuing operations   $ 13,390   $ 15,774
                 

    (1)   Constant currency excludes the impact of foreign currency fluctuations and is computed by applying the average exchange rates for the year ended December 31, 2023, to the revenues during the corresponding period in 2024.
    (2)   Adjustment represents costs associated with restructuring, including employee severance and vendor and lease termination costs.
    (3)   Represents litigation settlement and associated expenses incurred in connection with the Company subsidiary litigation.
    (4)   Primarily represents management fee incurred in exchange for services, which included provision of legal, human resources, corporate finance, and marketing support. The management services agreement was terminated in connection with the Business Combination and was replaced by the related party service fee pursuant to the Services Agreement which reduced the fee and modified the services provided.
    (5)   Represents the non-cash charges to restricted stock units and options.
    (6)   Represents transaction costs incurred as part of the Business Combination.

         
    Reconciliation of Adjusted EBITDA from Discontinued Operations    
        Year Ended December 31, 
    (dollars in thousands)   2024      2023
    Net loss from discontinued operations, net of income taxes   $ (5,833)   $ (5,479)
    Income tax expense     —     —
    Interest expense, net     145     189
    Depreciation and amortization     555     907
    EBITDA from discontinued operations     (5,133)     (4,383)
    Restructuring and related expenses (7)     38     187
    Related party service fees and royalties     —     25
    Impairment of goodwill     87     —
    Foreign exchange losses (gains), net     211     (5)
    Adjusted EBITDA from discontinued operations   $ (4,797)   $ (4,176)
                 

    (7)   Adjustment represents costs associated with restructuring related to employee severance.

    Source: XBP Europe Holdings, Inc.

    The MIL Network –

  • MIL-OSI: Kingsoft Cloud Announces Unaudited Fourth Quarter and Fiscal Year 2024 Financial Results; First Time Operating Margin Profitable with Accelerated Growing Revenue of AI Cloud

    Source: GlobeNewswire (MIL-OSI)

    BEIJING, March 19, 2025 (GLOBE NEWSWIRE) — Kingsoft Cloud Holdings Limited (“Kingsoft Cloud” or the “Company”) (NASDAQ: KC and HKEX: 3896), a leading cloud service provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2024.

    Fourth Quarter Financial Highlights

    • Total Revenues reached RMB2,232.1 million (US$305.8 million)1, increased by 29.6% year-over-year from RMB1,722.5 million in the same quarter of 2023. Our business has experienced accelerated and high-quality growth and our revenue structure is well-balanced.
    • Gross profit was RMB426.0 million (US$58.4 million), representing a significant increase of 68.3% from RMB253.1 million in the same quarter of 2023. Our profitability has been fundamentally improved.
    • Non–GAAP EBITDA2 was RMB359.7 million (US$49.3 million), compared with RMB-27.7 million in the same quarter of 2023. Non–GAAP EBITDA margin was 16. 1%, compared with -1.6% in the same quarter of 2023.
    • Operating loss was RMB43.5 million (US$6.0 million), compared with operating loss of RMB342.7 million in the same quarter of 2023.
    • Non–GAAP Operating profit (loss) turned profit for the first time, achieving RMB24.4 million (US$3.3 million), compared with RMB-187.6 million in the same quarter of 2023. Non–GAAP Operating profit (loss) margin was 1. 1%, compare with -10.9% in the same quarter of 2023.

    Mr. Tao Zou, Chief Executive Officer of Kingsoft Cloud, commented, “We are very pleased to close Fiscal Year 2024 with historically strong financial performance. This quarter, we recorded positive non–GAAP operating profit (loss)for the first time, demonstrating our unwavering execution of the ‘High- quality, Sustainable Development Strategy’. Driven by the growing popularity of AI applications, we firmly believe that AI will continue to penetrate into various verticals, improving the efficiency of daily life. This quarter the gross billing of AI business increased by triple-digit year-over-year to RMB474 million. Both our public cloud and enterprise cloud businesses are harnessing the vast potential of AI cloud computing. Meanwhile, we have seen strong growth in demand from our ecosystem. Revenue from Xiaomi and Kingsoft Group increased by 76% year-over-year. We are well on track to build cutting- edge cloud infrastructure and technology to support our ecosystem and expand into the broader AI industry.”

    Mr. Henry He, Chief Financial Officer of Kingsoft Cloud, added, “We are very pleased to highlight several significant achievements. First, we achieved profitability in non-GAAP operating profit for the first time since our inception in 2012, demonstrating our strong execution of our high-quality and sustainable development strategy in the past two years. Second, our revenue has been growing for three consecutive quarters year-over-year, and this quarter we achieved a high-speed growth rate of 30% in total revenue, reaching RMB2,232.1 million. Third, gross billing of our Al cloud business increased by around 500% year-over-year to RMB474 million, accounting for as high as 34% of our public cloud revenue. This marks a three-digit year-on-year growth or six consecutive quarters. Fourth, last December, our shareholders approved revenue from connected-party of Xiaomi and Kingsoft Group for next three years of RMB11.3 billion, around 10 times over the revenue of 2023, providing solid support for Company’s revenue and profit growth. We believe we are well on track to meet the ecosystem’s fast-growing demands and build a solid cloud infrastructure to support its AI development. Notably, in this quarter, we are thrilled to report that revenue from Xiaomi and Kingsoft Group increased by 76% year-over-year, validating the effectiveness of our ecosystem strategy.”

    Fourth Quarter 2024 Financial Results

    Total Revenues reached RMB2,232.1 million (US$305.8 million), increased by 29.6% year-over-year from RMB1,722.5 million in the same quarter of 2023 and increased by 18.4% quarter-over-quarter from RMB1,885.6 million in the third quarter of 2024. The year-over-year increase was mainly due to the expanded revenue from Xiaomi and Kingsoft Ecosystem and AI related customers, incremental demands and more projects delivered from enterprise cloud approaching year-end.

    • Revenues from public cloud services were RMB1,409.8 million (US$193.1 million), increased by 34.0% from RMB1,052.0 million in the same quarter of 2023 and increased by 19.9% from RMB1, 175.5 million last quarter. The year-over-year increase was mainly due to the growth of AI demands.

    ______________________
    1 This announcement contains translations of certain Renminbi (RMB) amounts into U.S. dollars (US$) at a specified rate solely for the convenience of the reader. Unless otherwise noted, the translation of RMB into US$ has been made at RMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024 as certified for customs purposes by the Federal Reserve Bank of New York.

    2 Non-GAAP EBITDA is defined as non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.

    • Revenues from enterprise cloud services were RMB822.3 million (US$112.7 million), representing an increase of 22.7% from RMB670.3 million in the same quarter of 2023 and an increase of 15.8% from RMB710.0 million last quarter. We keep focusing in selected verticals such as public services cloud, state-owned assets cloud, healthcare, financial services and private enterprise services, enhance our solutions with AI capabilities and take profitability and sustainability of the enterprise cloud projects as our priorities.
    • Other revenues were nil this quarter.

    Cost of revenues was RMB1,806.2 million (US$247.4 million), representing an increase of 22.9% from RMB1,469.3 million in the same quarter of 2023, which was in-line with our revenue expansion. IDC costs decreased by 2.6% year-over-year from RMB740.4 million to RMB721.5 million (US$98.8 million) this quarter. The decrease was in line with the scale down of our CDN services and our strict control over procurement costs. Depreciation and amortization costs increased from RMB146.9 million in the same quarter of 2023 to RMB343.1 million (US$47.0 million) this quarter. The increase was mainly due to the depreciation of newly acquired servers which were related to AI business. Solution development and services costs increased by 10.8% year-over-year from RMB502.9 million in the same quarter of 2023 to RMB557.0 million (US$76.3 million) this quarter. The increase was mainly due to the solution personnel expansion of Camelot. Fulfillment costs and other costs were RMB102.4 million (US$14.0 million) and RMB82.2 million (US$11.3 million) this quarter.

    Gross profit was RMB426.0 million (US$58.4 million), representing a significant increase of 68.3% from RMB253.1 million in the same quarter of 2023, demonstrating our improvements in revenue quality and structure, as well as strict cost control. Gross margin was 19. 1%, compared with 14.7% in the same period in 2023. Non–GAAP gross profit3 was RMB427.7 million (US$58.6 million), compared with RMB262.5 million in the same period in 2023. Non–GAAP gross margin3 was 19.2%, compared with 15.2% in the same period in 2023. The significant improvement of our gross profit and margin was mainly due to our strategic adjustment of revenue mix, expansion of AI revenues, optimized enterprise cloud project selection and efficient cost control measures.

    Total operating expenses were RMB469.5 million (US$64.3 million), decreased by 21.2% from RMB595.9 million in the same quarter last year and decreased by 67.6% from RBM1,447.1 million last quarter. Among which:

    Selling and marketing expenses were RMB115.8 million (US$15.9 million), decreased by 8.4% from RMB126.5 million in the same period in 2023 and decreased by 4.4% from RMB121.1 million last quarter, the decrease was due to the decrease of share-based compensation.

    General and administrative expenses were RMB179.5 million (US$24.6 million), decreased by 39.0% from RMB294.2 million in the same period in 2023 and slightly increased by 5.4% from RMB170.4 million last quarter. The year-over-year decrease was mainly due to the decrease of credit loss expense.

    Research and development expenses were RMB174.2 million (US$23.9 million), decreased by 0.6% from RMB175.2 million in the same period in 2023 and 26.2% from RMB235.9 million last quarter. The decrease was mainly due to the decrease of share-based compensation.

    Operating loss was RMB43.5 million (US$6.0 million), compared with operating loss of RMB342.7 million in the same quarter of 2023 and RMB1,143.8 million last quarter. The improvement was mainly due to the increase of gross profit and our strict expenses control. Non–GAAP operating profit (loss)4 was RMB24.4 million (US$3.3 million), compared with operating loss of RMB187.6 million in the same quarter last year and RMB140.2 million last quarter. Our non-GAAP operating profit (loss) turned breakeven for the first time and verified our high quality and sustainable development strategy.

    Net loss was RMB200.6 million (US$27.5 million), compared with net loss of RMB286.8 million in the same quarter of 2023 and RMB1,061.1 million last quarter. Non–GAAP net loss5 was RMB70.3 million (US$9.6 million), narrowed down compared with RMB250.4 million in the same quarter of 2023 and RMB236.7 million last quarter. The improvement was mainly due to the revenue quality increase, revenue mix adjustment, strict costs control and expenses control.
    ______________________
    3 Non-GAAP gross profit is defined as gross profit excluding share-based compensation allocated in the cost of revenues and we define Non-GAAP gross margin as Non-GAAP gross profit as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.

    4 Non-GAAP operating loss is defined as operating loss excluding share-based compensation, impairment of long-lived assets and amortization of intangible assets and we define Non-GAAP operating loss margin as Non-GAAP operating loss as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.

    5 Non-GAAP net loss is defined as net loss excluding share-based compensation, impairment of long-lived assets and foreign exchange (gain) loss, and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.

    Non–GAAP EBITDA6 was RMB359.7 million (US$49.3 million), compared with RMB-27.7 million in the same quarter of 2023 and RMB185.4 million last quarter. Non–GAAP EBITDA margin was 16. 1%, compared with -1.6% in the same quarter of 2023 and 9.8% last quarter. The increase was mainly due to the expansion in gross profit and our strict control over costs and expenses.

    Basic and diluted net loss per share was RMB0.05 (US$0.01), compared with RMB0.08 in the same quarter of 2023 and RMB0.29 last quarter.

    Cash and cash equivalents were RMB2,648.8 million (US$362.9 million) as of December 31, 2024, compared with RMB1,617.9 million as of September 30, 2024. The increase was mainly due to the increased cash receipts from operating activities and the increase in bank loan drawdowns.

    Fiscal Year 2024 Financial Results

    Total Revenues reached RMB7,785.2 million (US$1,066.6 million), representing an increase of 10.5% from RMB7,047.5 million in 2023. The increase was due to the strong demands from AI business and enterprise cloud projects increase, while partially offset by our proactive scale-down of CDN services within public cloud services.

    • Revenues from public cloud services were RMB5,007.3 million (US$686.0 million), representing an increase of 14.3% from RMB4,381.7 million in 2023.
    • Revenues from enterprise cloud services were RMB2,777.8 million (US$380.6 million), representing an increase of 4.3% from RMB2,664.0 million in 2023.
    • Other revenues were RMB0.1 million (US$0.02 million).

    ______________________
    6     Non-GAAP EBITDA is defined as Non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. See “Use of Non-GAAP Financial Measures” set forth at the end of this press release.

    Cost of revenues was RMB6,444.3 million (US$882.9 million), representing a slight increase of 4.0% from RMB6, 197.3 million in 2023. Among which:

    IDC costs decreased by 9.9% to RMB2,892.1 million (US$396.2 million) from RMB3,211.2 million in 2023. The decrease was in line with our cost control measures adjustment of CDN services. Depreciation and amortization costs were RMB1,090.1 million (US$149.3 million), compared with RMB774.0 million in 2023, mainly due to the depreciation of new acquired servers related to AI business. Fulfillment costs were RMB235.7 million (US$32.3 million), representing an increase of 2.7% from RMB229.5 million in 2023. The increase was in line with enterprise cloud projects increase. Solution development and services costs were RMB1,993.1 million (US$273.1 million) in 2024, compared with RMB1,804.8 million in 2023. The increase was mainly due to the revenue expansion of Camelot business.

    Gross profit increased by 57.7% to RMB1,340.9 million (US$183.7 million) in 2024, from RMB850.2 million in 2023. Gross margin increased to 17.2%, from 12. 1% in 2023. Non–GAAP gross profit increased to RMB1,357.8 million (US$186.0 million) in 2024, from RMB859.9 million in 2023. Non–GAAP gross margin increased to 17.4% in 2024 from 12.2% in 2023. Such increases were primarily because of the optimization of revenue mix and our effective cost controls.

    Selling and marketing expenses were RMB479.4 million (US$65.7 million), compared with RMB460.2 million in 2023. The increase was mainly due to the increase of share-based compensation.

    General and administrative expenses were RMB834.9 million (US$114.4 million), compared with RMB1,060.0 million in 2023. The decrease was mainly due to the decrease of credit loss expense.

    Research and development expenses were RMB846.0 million (US$115.9 million), compared with RMB784.8 million in 2023. The increase was mainly due to the rise in personnel-related expenses.

    Impairment of long–lived assets was RMB919.7 million (US$126.0 million), mainly attributable to impairment of long-lived assets dedicated to assets of low-margin services.

    Operating loss was RMB1,739.0 million (US$238.2 million), compared with RMB2, 108.6 million in 2023. Non–GAAP operating loss was RMB431.3 million (US$59.1 million), significantly narrowed compared with RMB1,092.8 million in 2023. Non–GAAP operating loss margin was 5.5%, significantly improved from 15.5% in 2023.

    Net loss was RMB1,979.0 million (US$271.1 million), significantly narrowed from net loss of RMB2, 183.6 million in 2023.

    Non–GAAP net loss was RMB825.3 million (US$113.1 million), compared with Non-GAAP net loss of RMB1,291.1 million in 2023.

    Non–GAAP EBITDA was RMB638.9 million (US$87.5 million), compared with RMB-265.1 million in 2023. Non–GAAP EBITDA margin was 8.2%, compared with -3.8% in 2023.

    Basic and diluted net loss per share was RMB0.54 (US$0.07), compared with RMB0.61 in 2023.

    Outstanding ordinary shares were 3,687,690,772 as of December 31, 2024, equivalent to about 245,846,051 ADSs.

    Conference Call Information

    Kingsoft Cloud’s management will host an earnings conference call on Wednesday, March 19, 2025 at 8:15 am, U.S. Eastern Time (8:15 pm, Beijing/Hong Kong Time on the same day).

    Participants can register for the conference call by navigating to https://register-conf.media-server.com/register/BIc315136cafe94825b98dca6b37795790. Once preregistration has been completed, participants will receive dial-in numbers, direct event passcode, and a unique access PIN.

    To join the conference, simply dial the number in the calendar invite you receive after preregistering, enter the passcode followed by your PIN, and you will join the conference instantly.

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

    Use of Non–GAAP Financial Measures

    The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In evaluating our business, we consider and use certain non-GAAP measures, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating loss, Non-GAAP operating loss margin, Non-GAAP EBITDA, Non-GAAP EBITDA margin, Non-GAAP net loss and Non-GAAP net loss margin, as supplemental measures to review and assess our operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We define Non- GAAP gross profit as gross profit excluding share-based compensation allocated in the cost of revenues, and we define Non-GAAP gross margin as Non-
    GAAP gross profit as a percentage of revenues. We define Non-GAAP operating loss as operating loss excluding share-based compensation, impairment of long-lived assets and amortization of intangible assets, and we define Non-GAAP operating loss margin as Non-GAAP operating loss as a percentage of revenues. We define Non-GAAP net loss as net loss excluding share-based compensation, foreign exchange (gain) loss and impairment of long-lived assets, and we define Non-GAAP net loss margin as Non-GAAP net loss as a percentage of revenues. We define Non-GAAP EBITDA as Non-GAAP net loss excluding interest income, interest expense, income tax expense (benefit) and depreciation and amortization, and we define Non-GAAP EBITDA margin as Non-GAAP EBITDA as a percentage of revenues. We present these non-GAAP financial measures because they are used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of these non-GAAP measures facilitates investors’ assessment of our operating performance.

    These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using these non-GAAP financial measures is that they do not reflect all items of income and expense that affect our operations. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

    We compensate for these limitations by reconciling these non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

    Exchange Rate Information

    This press release contains translations of certain RMB amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from RMB to U.S. dollars, in this press release, were made at a rate ofRMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024 as certified for customs purposes by the Federal Reserve Bank of New York.

    Safe Harbor Statement

    This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the Business Outlook, and quotations from management in this announcement, as well as Kingsoft Cloud’s strategic and operational plans, contain forward-looking statements. Kingsoft Cloud may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Kingsoft Cloud’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Kingsoft Cloud’s goals and strategies; Kingsoft Cloud’s future business development, results of operations and financial condition; relevant government policies and regulations relating to Kingsoft Cloud’s business and industry; the expected growth of the cloud service market in China; the expectation regarding the rate at which to gain customers, especially Premium Customers; Kingsoft Cloud’s ability to monetize the customer base; fluctuations in general economic and business conditions in China; and the economy in China and elsewhere generally; China’s political or social conditions and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Kingsoft Cloud’s filings with the SEC. All information provided in this press release and in the attachments is as ofthe date of this press release, and Kingsoft Cloud does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

    About Kingsoft Cloud Holdings Limited

    Kingsoft Cloud Holdings Limited (NASDAQ: KC and HKEX:3896) is a leading cloud service provider in China. With extensive cloud infrastructure, cutting-edge cloud-native products based on vigorous cloud technology research and development capabilities, well-architected industry-specific solutions and end-to-end fulfillment and deployment, Kingsoft Cloud offers comprehensive, reliable and trusted cloud service to customers in strategically selected verticals.

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

    For investor and media inquiries, please contact:
    Kingsoft Cloud Holdings Limited
    Nicole Shan
    Tel: +86 (10) 6292-7777 Ext. 6300
    Email: ksc–ir@kingsoft.com

    KINGSOFT CLOUD HOLDINGS LIMITED
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (All amounts in thousands)
      Dec 31,
    2023    		 Dec 31,
    2024    		 Dec 31,
    2024
      RMB RMB US$
    ASSETS      
    Current assets:      
    Cash and cash equivalents 2,255,287   2,648,764   362,879  
    Restricted cash 234,194   81,337   11,143  
    Accounts receivable, net 1,529,915   1,468,663   201,206  
    Short-term investments —   90,422   12,388  
    Prepayments and other assets 1,812,692   2,233,074   305,930  
    Amounts due from related parties 266,036   318,526   43,638  
    Total current assets 6,098,124   6,840,786   937,184  
    Non-current assets:      
    Property and equipment, net 2,186,145   4,630,052   634,315  
    Intangible assets, net 834,478   694,880   95,198  
    Goodwill 4,605,724   4,605,724   630,982  
    Prepayments and other assets 870,781   449,983   61,647  
    Equity investments 259,930   234,182   32,083  
    Amounts due from related parties 56,264   —   —  
    Operating lease right-of-use assets 158,832   137,047   18,775  
    Total non-current assets 8,972,154   10,751,868   1,473,000  
    Total assets 15,070,278   17,592,654   2,410,184  
           
    LIABILITIES, NON-CONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable 1,805,083   1,877,004   257,149  
    Accrued expenses and other current liabilities 2,838,085   3,341,990   457,851  
    Short-term borrowings 1,110,896   2,225,765   304,928  
    Income tax payable 63,961   69,219   9,483  
    Amounts due to related parties 931,906   1,584,199   217,034  
    Current operating lease liabilities 78,659   61,258   8,392  
    Total current liabilities 6,828,590   9,159,435   1,254,837  
    Non-current liabilities:      
    Long-term borrowings 100,000   1,660,584   227,499  
    Amounts due to related parties 40,069   309,612   42,417  
    Deferred tax liabilities 142,565   101,677   13,930  
    Other liabilities 634,803   790,271   108,267  
    Non-current operating lease liabilities 78,347   65,755   9,008  
    Total non-current liabilities 995,784   2,927,899   401,121  
    Total liabilities 7,824,374   12,087,334   1,655,958  
    Shareholders’ equity:      
    Ordinary shares 25,443   25,689   3,519  
    Treasury stock (208,385 ) (105,478 ) (14,450 )
    Additional paid-in capital 18,811,028   18,940,885   2,594,891  
    Statutory reserves funds 21,765   32,001   4,384  
    Accumulated deficit (12,315,041 ) (14,291,957 ) (1,957,990 )
    Accumulated other comprehensive income 555,342   566,900   77,665  
    Total Kingsoft Cloud Holdings Limited shareholders’ equity 6,890,152   5,168,040   708,019  
    Non-controlling interests 355,752   337,280   46,207  
    Total equity 7,245,904   5,505,320   754,226  
    Total liabilities, non-controlling interests and shareholders’ equity 15,070,278   17,592,654   2,410,184  
           
    KINGSOFT CLOUD HOLDINGS LIMITED
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (All amounts in thousands, except for share and per share data)
      Three Months Ended Twelve Months Ended
      Dec 31,
    2023    		 Mar 31,
    2024    		 Jun 30,
    2024    		 Sep 30,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2023    		 Dec 31,
    2024    		 Dec 31,
    2024
      RMB RMB RMB RMB RMB US$ RMB RMB US$
    Revenues:                  
    Public cloud services 1,051,966   1,187,370   1,234,542   1,175,535   1,409,804   193,142   4,381,741   5,007,251   685,991  
    Enterprise cloud services 670,331   588,162   657,238   710,039   822,338   112,660   2,663,993   2,777,777   380,554  
    Others 153   152   –   –   –   –   1,727   152   21  
    Total revenues 1,722,450   1,775,684   1,891,780   1,885,574   2,232,142   305,802   7,047,461   7,785,180   1,066,566  
    Cost of revenues (1,469,312 ) (1,482,431 ) (1,573,433 ) (1,582,220 ) (1,806,170 ) (247,444 ) (6,197,292 ) (6,444,254 ) (882,859 )
    Gross profit 253,138   293,253   318,347   303,354   425,972   58,358   850,169   1,340,926   183,707  
    Operating expenses:                  
    Selling and marketing expenses (126,477 ) (116,752 ) (125,708 ) (121,117 ) (115,792 ) (15,863 ) (460,221 ) (479,369 ) (65,673 )
    General and administrative expenses (294,240 ) (218,695 ) (266,249 ) (170,374 ) (179,536 ) (24,596 ) (1,060,022 ) (834,854 ) (114,375 )
    Research and development expenses (175,155 ) (231,963 ) (203,959 ) (235,912 ) (174,155 ) (23,859 ) (784,807 ) (845,989 ) (115,900 )
    Impairment of long-lived assets –   –   –   (919,724 ) –   –   (653,670 ) (919,724 ) (126,002 )
    Total operating expenses (595,872 ) (567,410 ) (595,916 ) (1,447,127 ) (469,483 ) (64,318 ) (2,958,720 ) (3,079,936 ) (421,950 )
    Operating loss (342,734 ) (274,157 ) (277,569 ) (1,143,773 ) (43,511 ) (5,960 ) (2,108,551 ) (1,739,010 ) (238,243 )
    Interest income 12,442   8,370   9,945   4,517   4,176   572   78,410   27,008   3,700  
    Interest expense (46,992 ) (51,066 ) (59,414 ) (57,404 ) (61,821 ) (8,469 ) (146,026 ) (229,705 ) (31,469 )
    Foreign exchange gain (loss) 74,011   (42,737 ) (6,999 ) 135,777   (105,572 ) (14,463 ) (57,211 ) (19,531 ) (2,676 )
    Other (loss) gain, net (16,741 ) (8,207 ) (7,829 ) 6,046   (2,956 ) (405 ) (32,673 ) (12,946 ) (1,774 )
    Other income (expense), net 33,776   (11,190 ) (4,961 ) 4,433   5,336   731   100,363   (6,382 ) (874 )
    Loss before income taxes (286,238 ) (378,987 ) (346,827 ) (1,050,404 ) (204,348 ) (27,994 ) (2,165,688 ) (1,980,566 ) (271,336 )
    Income tax (expense) benefit (598 ) 15,371   (6,891 ) (10,662 ) 3,706   508   (17,959 ) 1,524   209  
    Net loss (286,836 ) (363,616 ) (353,718 ) (1,061,066 ) (200,642 ) (27,486 ) (2,183,647 ) (1,979,042 ) (271,127 )
    Less: net loss attributable to non-controlling interests (2,688 ) (4,206 ) (542 ) (3,931 ) (3,683 ) (505 ) (7,307 ) (12,362 ) (1,694 )
    Net loss attributable to Kingsoft Cloud Holdings Limited (284,148 ) (359,410 ) (353,176 ) (1,057,135 ) (196,959 ) (26,981 ) (2,176,340 ) (1,966,680 ) (269,433 )
                       
    Net loss per share:                  
    Basic and diluted (0.08 ) (0.10 ) (0.10 ) (0.29 ) (0.05 ) (0.01 ) (0.61 ) (0.54 ) (0.07 )
    Shares used in the net loss per share computation:                  
    Basic and diluted 3,570,915,939   3,614,662,846   3,649,307,331   3,655,882,906   3,710,632,202   3,710,632,202   3,558,354,940   3,658,088,876   3,658,088,876  
    Other comprehensive (loss) income, net of tax of nil:                  
    Foreign currency translation adjustments (67,636 ) 20,704   (530 ) (112,296 ) 103,658   14,201   102,241   11,536   1,580  
    Comprehensive loss (354,472 ) (342,912 ) (354,248 ) (1,173,362 ) (96,984 ) (13,285 ) (2,081,406 ) (1,967,506 ) (269,547 )
    Less: Comprehensive loss attributable to non-controlling interests (2,662 ) (4,247 ) (570 ) (3,900 ) (3,667 ) (502 ) (7,334 ) (12,384 ) (1,697 )
    Comprehensive loss attributable to Kingsoft Cloud Holdings Limited shareholders (351,810 ) (338,665 ) (353,678 ) (1,169,462 ) (93,317 ) (12,783 ) (2,074,072 ) (1,955,122 ) (267,850 )
                       
    KINGSOFT CLOUD HOLDINGS LIMITED
    RECONCILIATION OF GAAP AND NON-GAAP RESULTS
    (All amounts in thousands, except for percentage)
      Three Months Ended Twelve Months Ended
      Dec 31,
    2023    		 Mar 31,
    2024    		 Jun 30,
    2024    		 Sep 30,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2023    		 Dec 31,
    2024    		 Dec 31,
    2024
      RMB RMB RMB RMB RMB US$ RMB RMB US$
    Gross profit 253,138 293,253 318,347 303,354 425,972 58,358 850,169 1,340,926 183,707
    Adjustments:                  
    – Share-based compensation expenses (allocated in cost of revenues) 9,330 5,814 5,076 4,252 1,726 236 9,757 16,868 2,311
    Adjusted gross profit (Non-GAAP Financial Measure) 262,468 299,067 323,423 307,606 427,698 58,594 859,926 1,357,794 186,018
                       
    KINGSOFT CLOUD HOLDINGS LIMITED
    RECONCILIATION OF GAAP AND NON-GAAP RESULTS
    (All amounts in thousands, except for percentage)
      Three Months Ended Twelve Months Ended
      Dec 31,
    2023    		 Mar 31,
    2024    		 Jun 30,
    2024    		 Sep 30,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2023    		 Dec 31,
    2024
    Gross margin 14.7 % 16.5 % 16.8 % 16.1 % 19.1 % 12.1 % 17.2 %
    Adjusted gross margin (Non-GAAP Financial Measure) 15.2 % 16.8 % 17.1 % 16.3 % 19.2 % 12.2 % 17.4 %
                   
    KINGSOFT CLOUD HOLDINGS LIMITED
    RECONCILIATION OF GAAP AND NON-GAAP RESULTS
    (All amounts in thousands, except for percentage)
      Three Months Ended Twelve Months Ended
      Dec 31,
    2023    		 Mar 31,
    2024    		 Jun 30,
    2024    		 Sep 30,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2023    		 Dec 31,
    2024    		 Dec 31,
    2024
      RMB RMB RMB RMB RMB US$ RMB RMB US$
    Net Loss (286,836 ) (363,616 ) (353,718 ) (1,061,066 ) (200,642 ) (27,486 ) (2,183,647 ) (1,979,042 ) (271,127 )
    Adjustments:                  
    – Share-based compensation expenses 110,437   103,595   45,649   40,423   24,774   3,394   181,645   214,441   29,378  
    – Foreign exchange (gain) loss (74,011 ) 42,737   6,999   (135,777 ) 105,572   14,463   57,211   19,531   2,676  
    – Impairment of long-lived assets –   –   –   919,724   –   –   653,670   919,724   126,002  
    Adjusted net loss (Non-GAAP Financial Measure) (250,410 ) (217,284 ) (301,070 ) (236,696 ) (70,296 ) (9,629 ) (1,291,121 ) (825,346 ) (113,071 )
    Adjustments:                  
    – Interest income (12,442 ) (8,370 ) (9,945 ) (4,517 ) (4,176 ) (572 ) (78,410 ) (27,008 ) (3,700 )
    – Interest expense 46,992   51,066   59,414   57,404   61,821   8,469   146,026   229,705   31,469  
    – Income tax expense (benefit) 598   (15,371 ) 6,891   10,662   (3,706 ) (508 ) 17,959   (1,524 ) (209 )
    – Depreciation and amortization 187,542   223,146   305,304   358,540   376,100   51,525   940,482   1,263,090   173,043  
    Adjusted EBITDA (Non-GAAP Financial Measure) (27,720 ) 33,187   60,594   185,393   359,743   49,285   (265,064 ) 638,917   87,532  
    – (Gain) loss on disposal of property and equipment –   (23,821 ) –   (10,667 ) (10,137 ) (1,389 ) 22,996   (44,625 ) (6,114 )
    Excluding loss or gain on disposal of property and equipment, normalized Adjusted EBITDA (27,720 ) 9,366   60,594   174,726   349,606   47,896   (242,068 ) 594,292   81,418  
                       
    KINGSOFT CLOUD HOLDINGS LIMITED
    RECONCILIATION OF GAAP AND NON-GAAP RESULTS
    (All amounts in thousands, except for percentage)
      Three Months Ended Twelve Months Ended
      Dec 31,
    2023    		 Mar 31,
    2024    		 Jun 30,
    2024    		 Sep 30,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2023    		 Dec 31,
    2024    		 Dec 31,
    2024
      RMB RMB RMB RMB RMB US$ RMB RMB US$
    Operating loss (342,734 ) (274,157 ) (277,569 ) (1,143,773 ) (43,511 ) (5,960 ) (2,108,551 ) (1,739,010 ) (238,243 )
    Adjustments:                  
    – Share-based compensation expenses 110,437   103,595   45,649   40,423   24,774   3,394   181,645   214,441   29,378  
    – Impairment of long-lived assets –   –   –   919,724   –   –   653,670   919,724   126,002  
    – Amortization of intangible assets 44,656   43,517   43,415   43,460   43,104   5,905   180,459   173,496   23,769  
    Adjusted operating (loss) profit (Non-GAAP Financial Measure) (187,641 ) (127,045 ) (188,505 ) (140,166 ) 24,367   3,339   (1,092,777 ) (431,349 ) (59,094 )
    – (Gain) loss on disposal of property and equipment –   (23,821 ) –   (10,667 ) (10,137 ) (1,389 ) 22,996   (44,625 ) (6,114 )
    Excluding loss or gain on disposal of property and equipment, normalized Adjusted operating (loss) profit (187,641 ) (150,866 ) (188,505 ) (150,833 ) 14,230   1,950   (1,069,781 ) (475,974 ) (65,208 )
                       
    KINGSOFT CLOUD HOLDINGS LIMITED
    RECONCILIATION OF GAAP AND NON-GAAP RESULTS
    (All amounts in thousands, except for percentage)
      Three Months Ended Twelve Months Ended
      Dec 31,
    2023    		 Mar 31,
    2024    		 Jun 30,
    2024    		 Sep 30,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2023    		 Dec 31,
    2024
    Net loss margin -16.7 % -20.5 % -18.7 % -56.3 % -9.0 % -31.0 % -25.4 %
    Adjusted net loss margin (Non-GAAP Financial Measure) -14.5 % -12.2 % -15.9 % -12.6 % -3.1 % -18.3 % -10.6 %
    Adjusted EBITDA margin (Non-GAAP Financial Measure) -1.6 % 1.9 % 3.2 % 9.8 % 16.1 % -3.8 % 8.2 %
    Normalized Adjusted EBITDA margin -1.6 % 0.5 % 3.2 % 9.3 % 15.7 % -3.4 % 7.6 %
    Adjusted operating (loss) profit margin (Non-GAAP Financial Measure) -10.9 % -7.2 % -10.0 % -7.4 % 1.1 % -15.5 % -5.5 %
    Normalized Adjusted operating (loss) profit margin -10.9 % -8.5 % -10.0 % -8.0 % 0.6 % -15.2 % -6.1 %
                   
    KINGSOFT CLOUD HOLDINGS LIMITED
    UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
    (All amounts in thousands)
      Three Months Ended Twelve Months Ended
      Dec 31,
    2023    		 Dec 31,
    2024    		 Dec 31,
    2024    		 Dec 31,
    2023    		 Dec 31,
    2024    		 Dec 31,
    2024
      RMB RMB US$ RMB RMB US$
    Net cash generated from (used in) operating activities 16,787   570,222   78,120   (169,070 ) 628,419   86,093  
    Net cash used in investing activities (1,414,761 ) (1,337,978 ) (183,302 ) (673,186 ) (3,620,445 ) (495,999 )
    Net cash generated from (used in) financing activities 1,154,815   1,802,762   246,977   (227,852 ) 3,255,418   445,990  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,013   (15,294 ) (2,095 ) 25,863   (22,772 ) (3,119 )
    Net (decrease) increase in cash, cash equivalents and restricted cash (242,146 ) 1,019,712   139,700   (1,044,245 ) 240,620   32,965  
    Cash, cash equivalents and restricted cash at beginning of period 2,731,627   1,710,389   234,322   3,533,726   2,489,481   341,057  
    Cash, cash equivalents and restricted cash at end of period 2,489,481   2,730,101   374,022   2,489,481   2,730,101   374,022  
                 

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