Category: Taxation

MIL-OSI USA: Markey, Warren, Wyden, Schumer, Lawmakers Seek IRS Watchdog Investigation Into Trump Administration’s Decision To Gut IRS

US Senate News:

Source: United States Senator for Massachusetts Ed Markey
Mass firings, office closures could delay taxpayers’ refunds, allow major abuses to go undetected or unaddressed
“Reducing IRS staff will have profound effects, hindering the agency’s ability to process … tax returns … potentially causing delays for taxpayers waiting for refunds, and inhibiting the agency’s ability to conduct audits to catch wealthy tax cheats.”
Text of Letter (PDF)
Washington (March 6, 2025) – Senator Edward J. Markey (D-Mass.) joined Senators Elizabeth Warren (D-Mass.) and Ron Wyden (D-Ore.), Ranking Member of the Senate Finance Committee, and their colleagues in sending a letter to the Acting Treasury Inspector General for Tax Administration (TIGTA), urging her to launch an investigation into the Trump Administration’s decision to fire nearly 7,000 Internal Revenue Service (IRS) employees and close over 100 Taxpayer Assistance Centers (TACs). The letter follows new reporting revealing that the IRS is preparing to gut half of its workforce, a decision that threatens to undermine the IRS’s ability to crack down on wealthy tax cheats and provide quality service for American taxpayers.
The following 15 senators signed on: Minority Leader Schumer (D-N.Y.) and Senators Merkley (D-Ore.), King (I-M.E.), Shaheen (D-N.H.), Booker (D-N.J.), Blumenthal (D-Conn.), Durbin (D-Ill.), Kim (D-N.J.), Murray (D-Wash.), Sanders (I-Vt.), Van Hollen (D-Md.), Welch (D-Vt.), Whitehouse (D-R.I.), Reed (D-R.I.), and Hirono (D-Hawaii)
“Given the implications these mass firings and office closures may have on the quality of service provided by the IRS, an evaluation by your office would be consistent with your mission of ‘conducting audits and investigations that improve IRS operations,’” explained the lawmakers.
Before President Biden signed the Inflation Reduction Act (IRA), which provided the IRS with $80 billion over the next 10 years, the agency suffered from chronic underfunding and understaffing. This major investment allowed the IRS to recover $1.3 billion from tax cheats, improve access to IRS services, and launch more digital tools to help Americans file their taxes.
“These investments made through the IRA will—if not rolled back by President Trump and Republicans in Congress—pay for themselves many times over… every dollar (spent) on the IRS’s enforcement activities results in $5 to $9 of revenue to fund investments in programs for the American people,” wrote the lawmakers.
Last month, the Trump Administration ordered the IRS to begin firing employees. The massive layoffs have already begun “shaking the foundations of the tax agency during filing season.” Reducing IRS staff and offices will profoundly affect Americans filing their taxes this season, slowing the agency’s ability to process the over 140 million expected individual tax returns and potentially causing delays for taxpayer refunds. The IRS also plans to close an additional 110 TACs around the country, which will harm Americans seeking to access critical taxpayer services.
The senators asked the Acting Inspector General to determine if the Trump Administration’s recent decisions undermine the IRS’s progress, and if the firings and closures impact the agency’s mission to “(p)rovide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.”

MIL-OSI USA: At Hearing, Trump’s Deputy Treasury Secretary Nominee Admits Republicans’ “Magic Math” Won’t Pay for Billionaire Tax Cuts

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren
March 06, 2025
Warren: “Congressional Republicans want to use ‘magic math’ to pass giant tax cuts, and then try to tell the American people those tax cuts cost nothing.”
Video of Exchange (YouTube)
Washington, D.C. – At a hearing of the Senate Finance Committee, U.S. Senator Elizabeth Warren (D-Mass.) questioned Dr. Michael Faulkender, President Trump’s nominee for Deputy Secretary of the Treasury, on Republicans’ “magic math” for their plans to cut taxes for the ultra-wealthy. Republican leaders are increasingly supportive of using a “current policy baseline” for their tax package to hide the true cost of their proposed $4.6 trillion tax package.
Congress’ independent scorekeepers have historically scored legislation using a “current law baseline,” which assumes that temporary tax cuts will expire and that extending those tax cuts will cost money. A current policy baseline, on the other hand, assumes that temporary tax cuts will not expire and that extending those tax cuts will cost $0. When pressed by Senator Warren on whether this gimmick actually produces additional revenue, Dr. Faulkender admitted, “I can’t imagine that it would.”
Last month, Senator Warren sent a letter to the nonpartisan Joint Committee on Taxation (JCT), which provides Members of Congress with revenue estimates for tax legislation. She pressed for answers on whether JCT has ever used a “current policy baseline” for official scoring purposes on the Senate floor, among other questions, to set the record straight on Republicans’ “magic math.”
Ahead of his nomination hearing before the Senate Finance Committee, Senator Warren also sent a 32-page letter to Dr. Faulkender, pressing him to explain his views on his potential Treasury responsibilities.
Transcript: Hearing to examine the nomination of Michael Faulkender, of Maryland, to be Deputy Secretary of the TreasurySenate Finance CommitteeMarch 6, 2025
Senator Elizabeth Warren: Thank you very much, Mr. Chairman. So, President Trump had exactly one big legislative accomplishment in his first term: a giant tax cut for millionaires, billionaires, and massive corporations. In fact, it was so giant that a big hunk of it lasted only eight years and still cost $2 trillion. Now, the eight years are up, so Republicans want to do another tax cut for the ultra-wealthy, which Congress’ non-partisan budget scorers say is going to cost $4.6 trillion this time. Now, Congressional Republicans say they care about the deficit, so they have a plan to fix things up: repeal math. Here’s their story: because they already had eight years of tax cuts that ran up the debt, Congressional Republicans claim that 10 more years of tax cuts will be free. They named this gimmick the ‘current policy baseline.’ They should have named it “magic math.” It is so nuts that when we need to figure out the cost of tax cuts, the Senate has never, never switched to it over using real math.
Now, Dr. Faulkender, if confirmed, you will play a role in whatever tax deal the Republicans put together. So let’s talk about math,“magic math” and real math. Dr. Faulkender, does renaming tax cuts produce any additional revenue?
Michael Faulkender, Deputy Secretary-Designate, U.S. Department of the Treasury: Does renaming them–
Senator Warren: Yes, calling them something different. Does that produce any additional revenue?
Dr. Faulkender: I don’t think renaming something changes—if it changes behavior, it has the potential to change revenues.
Senator Warren: Wait, so, are you saying renaming tax cuts produces additional revenue? Just renaming it?
Dr. Faulkender: I can’t imagine that it would, unless it causes people to behave differently.
Senator Warren: Okay, I’ll take that as no. Fair enough? Claiming that somehow losing $4.6 trillion in tax revenues is free is just plain nuts. Congressional Republicans are hoping they can fool people long enough to deliver giveaways to their wealthy donors before anyone figures it out. But at the end of the day, Republicans cannot repeal math. A bunch of tax cuts for billionaires will cost $4.6 trillion.
But congressional Republicans don’t like that answer. So, I’m wondering, if they love magic math so much, I want to ask the same question in reverse. If the Republicans’ idea of magically not counting the cost of tax cuts for billionaires makes sense, what about not counting the cost of tax cuts for ordinary people? That is, for extending the Child Tax Credit?
Dr. Faulkender, according to Republicans’ magic math, if extending the tax cuts is free, shouldn’t extending a temporary expansion of the Child Tax Credit also be free?
Dr. Faulkender: Thank you, Senator. The Tax Cuts and Jobs Act increased the child tax credit from $1,000 to $2,000, and so if we allow that tax cut to expire, it would mean that the child tax credit would go back to the $1,000.
Senator Warren: Right. So, the question I’m asking is, using Republican “magic math,” if it is free to extend tax cuts for billionaires, isn’t it also free to extend tax cuts for poor kids?
Dr. Faulkender: Senator, I’m not familiar with magic math, but what I do know is that the American people look at the current tax code, what they paid last year and what they paid this year as the current environment. So, the question is, when we talk about extending it, I would argue that extending the TCJA is making sure that the American people don’t incur a $4.5 trillion tax increase.
Senator Warren: So, you do think that renaming the tax cuts will produce $4.5 trillion in revenue?
Dr. Faulkender: No, Senator, I didn’t say that it had any impact on the bottom line deficit. I’m just saying when you ask me what a baseline is, to me, the baseline is what I’m currently doing.
Senator Warren: I’m not asking you that. I’m asking you what it costs to put in $4.5 trillion in tax cuts. Look, if Republican “magic math” works, then why not extend it to everything we spend money on? How about the money we spent last year on roads and bridges or child care subsidies and the workers who process Social Security checks? Of course not. No one is going to do that.
Congressional Republicans want to use “magic math” to pass giant tax cuts, and then try to tell the American people those tax cuts cost nothing. Hard-working Americans understand that $4.6 trillion for a billionaire tax cut is not free. Congressional Republicans are trying to sell magic math so they can help billionaires, and fortunately, the American people are just not buying that.

MIL-OSI Global: Money laundering plays a key role in every part of the illegal drugs industry – here’s how it works

Source: The Conversation – UK – By Mark Berry, Lecturer In Criminology, Bournemouth University

R Mendoza/Shutterstock

The global illicit drugs trade is estimated to be worth at least half a trillion US dollars each year. Drugs such as cocaine, methamphetamine and heroin generate large revenues all along their supply chains, from where the products (and precursor materials) are grown or made – principally Colombia and Bolivia, China, Afghanistan, and the “golden triangle” of Myanmar, Laos and Thailand – to wherever the finished drugs are consumed.

Earnings in the illicit drug trade are variable. Few people will make the kind of money that once put the Mexican former cartel boss Joaquín “El Chapo” Guzmán on the Forbes list of global billionaires. But while drug “kingpins” are the industry’s biggest individual earners, they do not hold the majority of the drug money that is generated throughout the global supply chain.

Despite their frequent glamorisation in film and TV portrayals, drug cartels are basically international logistics companies. They work with distributors in different countries who deliver the drugs to regional wholesalers, who in turn supply the local retailers (dealers) who sell drugs to individuals.

Everyone along the supply chain takes their cut, with most people making much more modest incomes than the millionaire drug traffickers of narcocorrido lore. In our interviews with illicit drug entrepreneurs in the US and UK, we routinely spoke to sellers whose incomes ranged from pocket money to providing a moderately comfortable life.

Illicit drug use is damaging large parts of the world socially, politically and environmentally. Patterns of supply and demand are changing rapidly. In our longform series Addicted, leading experts bring you the latest insights on drug use and production as we ask: is it time to declare a planetary emergency?

Around 70% to 80% of the overall revenue generated by illicit drugs is shared among the many wholesale and street-level dealers in destination countries such as the UK and US, where the price per gram is at its highest. How this money moves and is used to sustain the illicit drug trade should be an important part of any worthwhile counter-narcotics strategy. But it rarely is.

Professional money launderers

The people and organisations responsible for laundering drug revenues – that is, transforming them into untraceable money that can easily be spent, or into assets that can be held or sold – often exist under the radar of law enforcement and the media.

Yet the ways illicit drug money is laundered are hardly a mystery. Techniques include wire transfers to offshore bank accounts, investments in shell companies or deposits in cash businesses, and buying foreign currencies or (to a small extent) cryptocurrencies. In addition, the straightforward physical transportation of cash across national borders is an often-used method known as a “bulk cash transfer”.

The largest players in the illicit drugs industry, such as international cartels, national distributors and large-scale wholesalers, often use professional money launderers – some of whom have seemingly reputable jobs in the financial sector. In one recent case, US financial regulators fined TD Bank US$3 billion (£2.4 billion) – a record penalty for a bank – for facilitating the laundering of millions of dollars of drug cartel money.

Over six years, more than 90% of the bank’s transactions went unmonitored, enabling “three money laundering networks to collectively transfer more than US$670 million through TD Bank accounts”. Then-US attorney general Merrick Garland commented: “By making its services convenient for criminals, [TD Bank] became one.”

Video: CBC News.

Some money laundering networks are as global as the drug supply chains they service. In June 2024, the US Department of Justice’s (DoJ) multi-year “Operation Fortune Runner” investigation saw LA-based associates of Mexico’s Sinaloa drug cartel charged with conspiring with money-laundering groups linked to a Chinese underground banking network. According to the IRS’s head of criminal investigation, Guy Ficco:

Drug traffickers generate immense amounts of cash through their illicit operations. This case is a prime example of Chinese money launderers working hand-in-hand with drug traffickers to try to legitimise profits generated by drug activities.

According to the DoJ, “many wealthy Chinese nationals” barred from transferring large amounts to the US by the Chinese government’s capital flight restrictions seek informal alternatives to the conventional banking system – including via schemes to launder illicit drug money. The DoJ explained how this works:

The China-based investor contacts an individual who has US dollars available to sell in the United States. This seller of US dollars provides identifying information for a bank account in China, with instructions for the investor to deposit Chinese currency (renminbi) in that account. Once the owner of the account sees the deposit, an equivalent amount of US dollars is released to the buyer in the United States.

These arrangements are not unique to Chinese actors. Similar arrangements occur throughout the world, including schemes to leverage the black market peso exchange and the Hawala international money transfer system.

Professional launderers are both creating and exploiting vulnerabilities in the global financial system. Such corruption allows suspicious transactions to occur without proper checks or oversight. This not only reduces transparency in the financial system but erodes public trust in it.

How cartels launder their money

International drug cartels and national wholesalers have a smaller markup on their transactions, compared with retailers. But because they are responsible for moving enormous quantities of illicit drugs, they still generate millions of dollars worth of revenue.

The most prolific known drug distributors in US history, Margarito Flores Jr and his twin brother Pedro, delivered billions of dollars worth of cocaine, heroin and methamphetamines to their US and Canadian wholesale clients between 1998 and 2009. They were working for Guzmán and Ismeal “El Mayo” Zambada García, then leaders of the Sinaloa cartel, as well as the Mexican Beltrán Leyva brothers whose cartel bore their surname.

Today, Margarito Flores Jr trains law enforcement across the US in the methods he and his brother used to traffic drugs and run their business. In January 2015, both men were sentenced to 14 years for drug trafficking – Margarito Flores Jr would later reach out to one of this article’s authors (R.V. Gundur) after reading his book, Trying to Make It: The Enterprises, Gangs, and People of the American Drug Trade, which includes a comprehensive account of the Flores crew’s activities.

In a subsequent interview, he told us: “My brother and I estimate that, if we added up all of the money we sent back to Mexico over the decade we sold drugs, it was probably more than US$3.5 billion.”

The billions they remitted to Mexico were used by Guzmán, Zambada and the Beltrán Levya brothers not only to expand their drug businesses, but to corrupt powerful figures such as Mexico’s former secretary of public security, Genaro García Luna.

García Luna, who was Mexico’s highest-ranking law enforcement official from 2006 to 2012, was sentenced to nearly 40 years in prison in October 2024 after being found guilty of taking millions of dollars in bribes from the Sinaloa cartel, as well as enabling the trafficking of more than a million kilograms of cocaine into the US. Flores explained to us:

It’s important to understand that corruption impacts people at all levels of government. Our payoffs included local police and other people in the community, up to higher-positioned people in government. Lots of that money ended up funding the violent conflicts between cartels.

While there has been widespread coverage of cartel drug money being laundered through high-profile businesses and banks such as Wachovia and HSBC, Flores suggested that “the money involved in the drug trade is a lot more than anybody really can understand”. The reason for this, he said, is that it’s very hard to track the flow of hard cash via lorries, boats, planes and even drones. Flores told us:

It’s a misconception that everyone who makes a lot of money in drugs or other illegal business makes an effort to launder their money. My brother and I held much of what we earned in cash. We knew the government could eventually take everything [else].

The twins were right: in time, that’s exactly what the US government did.

‘Everyday’ money laundering

In our study of money laundering strategies used by people involved in the illicit drug trade in the UK and US, we found that street dealers do not typically undertake sophisticated laundering processes. Rather, they spend their cash on food and other routine living expenses. One independent UK drug dealer, whose experience was typical of many, used the money earned from his cocaine sales to buy groceries and pay bills for himself and his daughter.

Spending money, even small amounts, gained through illegal activities is a money laundering offence – albeit one that is seldom prosecuted. As a result, these everyday activities that return illicit drug money to the legal economy are not well accounted for – even though the street value of drugs drives global market value estimates.

Business-savvy street dealers can earn gross revenues that approach the earnings of high-paid white-collar workers. But they must disguise their earnings’ origins before they can spend them, of course, and various tactics are used to do this.

Some dealers solicit close friends or family members to act as “strawmen”. These are people willing to put assets paid for by illicit drug money – such as cars, properties or even businesses – in their names on behalf of the dealer. Idris Elba’s character Stringer Bell in HBO’s The Wire was an accurate portrayal of someone investing in legal enterprises using illicit drug money.

A guide to Stringer Bell’s character in The Wire. Video: Just an Observation.

These strategies occur wherever illegal enterprise exists, and have done for well over a century. In the US, we interviewed wholesalers who had used family members to own houses and other properties on their behalf. This is done to mitigate against the risk of asset forfeiture should they be convicted of a crime. If an illicit enterprise can create a plausible beneficial owner who is not involved in crime, then the asset is harder to seize. This is why the Donald Trump administration’s recent suspension of beneficial owner oversight is problematic from a drug enforcement perspective.

In liberal democracies, governments cannot investigate someone’s finances simply because they are related to criminals. The dirty money that is put into their accounts can also be disguised as legitimate income making it difficult to identify, although thorough investigations may uncover it.

In the UK, we also talked to successful drug retailers who had set up local businesses in their own names. The EU’s law enforcement agency, Europol, has reported similar activities throughout Europe.

Legal businesses are a common – and often hard-to-detect – vehicle to launder drug money. Bars, clubs, gyms, and hair, nail and tanning salons can be readily set up with drug money, as large cash infusions to establish a business are often not well scrutinised. These businesses are comparatively easy to run with significant cash flows, providing suitable cover for dirty money.

For example, a beauty salon, especially one that offers high-value boutique services, could easily incorporate drug revenue into its financial accounts by reporting sales that do not occur. Tanning salons can be set up with little expense since they require only sunbeds and the rental of a property.

Along with bars, clubs and salons, construction companies and restaurants stand out as other cash-intensive businesses with high volumes of transactions – characteristics that make good fronts for laundering money.

It’s hard to spot a ‘dirty’ business

There is no surefire way to tell whether a business is a laundering front. While some may look like enterprises struggling to stay afloat, others develop into viable operations that eventually no longer need dirty money to sustain them.

Some drug dealers incorporate laundering practices within their legitimate jobs. Tradespeople such as electricians or plumbers, for example, can launder money by generating invoices for fake jobs, then reporting the income on their tax returns.

In both the UK and US, tax authorities are not charged with evaluating the veracity of the funds reported, and are generally satisfied once tax is paid. In other words, they generally trust declared income as proof of legal business activity. Moreover, they, along with the police, lack the resources to investigate these businesses for money laundering.

Through their legal businesses, many drug dealers pay significant taxes on their illegal revenue, and thus contribute to the economy.

Paying income tax effectively renders this income laundered. It can be invested and used to set up other businesses, or to purchase cars and properties without suspicion. It can also bolster credit ratings, and improve access to legal financial services such as bank loans.

Many small-time drug dealers start legal businesses in order to exit the illicit drug trade. We interviewed one cocaine dealer who had used his drug money to set up a retail electronics store; once it was successful, he stopped dealing. Similarly, the person behind a semi-legitimate nitrous oxide enterprise used his proceeds to set up a legitimate alcohol delivery service.

Through self-laundering, these modest drug dealers transform their proceeds of crime into spendable cash – and may eventually leave criminality behind altogether.

The (losing) battle against laundered money

Across the world, anti-money laundering efforts against organised criminal gangs are notoriously ineffective.

The Financial Action Task Force (FATF) – an intergovernmental organisation formed in 1999 to combat money laundering and the financing of terrorism – assesses financial regulators’ anti-money laundering controls all over the world. Countries designated as a risk that require monitoring are placed on the task force’s “grey list”, while severe, high-risk countries go on its “black list”. Being put on these lists can result in a withdrawal of international investment and implementation of sanctions by other countries.

Although developing countries have often scored badly in their assessments, there has been some progress. While Kenya remained on the grey list in 2024, for example, it was found to have strengthened its measures to tackle both money laundering and terrorist financing. In the same year, though, Lebanon was added to the grey list over concerns on both counts.

The FATF’s evaluation processes are designed to provide an objective assessment of whether a country has implemented its anti-money laundering and counter-terrorist financing recommendations. However, the success of the FATF’s anti-money laundering controls remains unclear.

Video: The Financial Action Task Force.

Often lost in the criminal financing narrative is the role of bulk cash transfers. Even in a world that is moving to cashless transactions, cash generally remains the primary currency of both the illicit drug trade and corruption.

The biggest and most successful drug traffickers have significant cash reserves which are used to pay workers, replace drugs that are lost or seized, accrue assets, and bribe key officials.

Reflecting on his former illicit enterprise, Margarito Flores observed: “For every kilo of cocaine or heroin or methamphetamine we sold in the US, at least a kilo of cash went back to Mexico.” For deals in Europe, Flores said: “Given the markup the further away you trade, the amount of cash sent back could be even higher – I would estimate it to be a kilo and a half.”

Flores described the ineptitude of law enforcement in policing cash that was leaving the US:

No matter how careful we were, my brother and I lost a handful of loads of drugs heading north [from Mexico into the US]. Heading south was different: we just had the money put on tractor trailers and had it driven it across the border. We never lost a dollar. That’s where politicians don’t pay enough attention. That cash lets traffickers keep doing business.

Focus on the money as well as the drugs

So long as demand for illicit drugs exists, the industry will continue – and the revenue it generates will be laundered.

We believe that to curb the drugs trade, enforcement strategies need to go beyond simply capturing drugs and focus much more on capturing the money. Governments should go after reserves held not only by drug cartels but high-level distributors, such as those who replaced the Flores twins, and also wholesalers. People like these – comparatively high earners in destination countries – are the backbone of the illicit drugs trade.

Transnational law enforcement should prioritise detecting and seizing bulk cash transfers. These high-volume proceeds underwrite the wellbeing of drug trafficking organisations. Digital tools, such as machine learning and artificial intelligence, can be developed to create new techniques to track and trace suspicious transactions, although they alone won’t solve all laundering problems.

Corruption of officials also remains a problem. Governments need to ensure their officials are well paid and sufficiently monitored in their roles – be they working in government, border control, banks, police departments or prisons. Unfortunately, the US has shirked its leadership in global anti-corruption efforts with the recent halting of the enforcement of the Foreign Corrupt Practices Act, which bans the bribing of foreign officials.

Anti-money laundering efforts need to be consistently supported and required. Lamentably, the US has undermined its anti-money laundering toolkit by suspending the enforcement of beneficial ownership information reporting requirements. Establishing beneficial ownership helps financial institutions to identify parties that are hiding their financial interests, which can be an indication of money laundering or other criminal activity.

Similarly, foreign investment in producer countries can strengthen their capacity to counter laundering by supporting intelligence infrastructure and improved training. Recent cuts to USAid and the reduction of US State Department efforts in these areas is another indication that the US will no longer lead in these domains.

As cash businesses provide an easy mechanism for cleaning money, moving to a cashless society that uses digital transactions may help ensure that money is traceable. At the same time, cryptomarkets provide a minor, but potentially increasing, pathway to hiding dirty money digitally.

Ultimately, we should recognise the decades-long “war on drugs” for what it is: a policy costing trillions of dollars that combined mass incarceration with insufficient public health investment, and which has harmed the very communities the illicit drug trade affects the most. It is a difficult balance, but the pathway forward needs to reorient the objectives regarding drugs: invest in people, then go after the money that keeps the cartels, distributors and wholesalers afloat.

For you: more from our Insights series:

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Mark Berry received funding from the Dawes Trust for a prestigious PhD scholarship to undertake work that informs the contents of this article.

R.V. Gundur received funding from the Economic and Social Research Council to undertake work that informs the contents of this article. He is also a professional member of the International Compliance Association.

The authors wish to thank Margarito Flores Jr (kingpintoeducator.com) for his help with this article.

– ref. Money laundering plays a key role in every part of the illegal drugs industry – here’s how it works – https://theconversation.com/money-laundering-plays-a-key-role-in-every-part-of-the-illegal-drugs-industry-heres-how-it-works-251288

MIL OSI – Global Reports –

MIL-OSI USA: Michigan Businessman Found Guilty of Employment Tax Crimes

Source: US State of Vermont

A federal jury convicted a Michigan businessman yesterday for not paying employment taxes and not filing his own individual income tax returns.

According to court documents and evidence presented at trial, Dale Thrush, of Farwell, owned and operated several automotive repair service locations and a gas station. Thrush was responsible for withholding Social Security, Medicare and income taxes from his employees’ wages and paying those funds over to the IRS on behalf of his employees. From October 2014 through December 2016, Thrush withheld those funds from his employees’ wages but did not pay over the full amount of the withheld taxes to the IRS. Instead, Thrush used some of those funds to pay personal expenses, including the remodeling and construction costs for his wife’s business.

In addition, Thrush did not file his own individual income tax returns for 2013 through 2016 despite being legally obligated to do so.

Thrush was convicted of three counts of willful failure to pay payroll taxes and four counts of willful failure to file individual income tax returns. He was acquitted of seven counts of willful failure to pay payroll taxes.

Thrush is scheduled to be sentenced on July 17. He faces a maximum penalty of five years in prison for each count of not paying employment taxes and a maximum penalty of one year in prison for each count of not filing his individual income tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Mark McDonald and Evan Mulbry of the Tax Division are prosecuting the case.

MIL-OSI Security: Michigan Businessman Found Guilty of Employment Tax Crimes

Source: United States Attorneys General

A federal jury convicted a Michigan businessman yesterday for not paying employment taxes and not filing his own individual income tax returns.

According to court documents and evidence presented at trial, Dale Thrush, of Farwell, owned and operated several automotive repair service locations and a gas station. Thrush was responsible for withholding Social Security, Medicare and income taxes from his employees’ wages and paying those funds over to the IRS on behalf of his employees. From October 2014 through December 2016, Thrush withheld those funds from his employees’ wages but did not pay over the full amount of the withheld taxes to the IRS. Instead, Thrush used some of those funds to pay personal expenses, including the remodeling and construction costs for his wife’s business.

In addition, Thrush did not file his own individual income tax returns for 2013 through 2016 despite being legally obligated to do so.

Thrush was convicted of three counts of willful failure to pay payroll taxes and four counts of willful failure to file individual income tax returns. He was acquitted of seven counts of willful failure to pay payroll taxes.

Thrush is scheduled to be sentenced on July 17. He faces a maximum penalty of five years in prison for each count of not paying employment taxes and a maximum penalty of one year in prison for each count of not filing his individual income tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Mark McDonald and Evan Mulbry of the Tax Division are prosecuting the case.

MIL-OSI: Silvercrest Asset Management Group Inc. Reports Q4 and Year-End 2024 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, March 06, 2025 (GLOBE NEWSWIRE) — Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today reported the results of its operations for the quarter and year ended December 31, 2024.

Business Update

Silvercrest concluded 2024 with strong new client organic flows due to new strategic investments made over the past year that are already bearing fruit. The firm garnered $1.4 billion in Q4 and $1.5 billion during 2024 in new client assets under management (“AUM”) inflows, the best year for new organic client inflows since 2015. The fourth quarter was primarily bolstered by winning a successful seed investment in our new Global Value Equity strategy of $1.3 billion USD ($2.0 billion AUD) in partnership with CBUS, one of Australia’s largest superannuation funds. The increases during the quarter bode well for future revenue, and we remain highly optimistic about securing more significant organic net flows over the course of 2025 to increase our return on invested capital.

Total AUM as of year-end 2024 reached $36.5 billion as of December 31, 2024, up 9.6% from $33.3 billion at year-end 2023. Discretionary AUM, which drives revenue, rose 6.4% to $23.3 billion from $21.9 billion. Overall, total asset flows and market increases were a net positive for the firm and will drive an increase in future revenue. Revenue for the year increased 5.3% to $123.7 million from $117.4 million, with Q4 revenue up 12.0% over Q4 2023, to $32.0 million from $28.5 million.

Strategically, in addition to building the firm’s new Global Value Equity strategy, we have hired business development and market leads in Atlanta and Singapore. We have our full MAS license for doing business in Singapore. With significant European assets and growth opportunities, we will be pursuing more initiatives to better highlight Silvercrest in both the institutional and wealth markets. The firm also has invested in talent across the firm to drive new growth and successfully transition the business toward the next generation.

Silvercrest developed new and stronger institutional consulting relationships during 2024, with new investment opportunities to develop our strategies. Our pipeline remains robust. As a result, we are optimistic about securing significant new organic flows. Importantly, the firm’s pipeline does not yet include mandates for our new Global Value Equity strategy which has a high capacity for significant new assets. We have worked hard over the past year to build the infrastructure, team, and strategy while undertaking business development. As with our third-quarter call, we envision more positive AUM flows and resulting revenue increases.

As I have discussed throughout the past year, Silvercrest has never had more business opportunities. Those initiatives are beginning to bear results. We have made and will continue to make investments to drive future growth in the business. We expect to make more hires to complement our outstanding professional team to drive that future growth. Silvercrest continues to accrue a higher interim percentage of revenue for compensation for this purpose, and, as mentioned, we will continue to adjust compensation accruals to match these important investments in the business and will keep you informed of our plans and the progress of these investments.

Fourth Quarter 2024 Highlights

Total AUM of $36.5 billion, inclusive of discretionary AUM of $23.3 billion and non-discretionary AUM of $13.2 billion at December 31, 2024.
Revenue of $32.0 million.
U.S. Generally Accepted Accounting Principles (“GAAP”) consolidated net income and net income attributable to Silvercrest of $2.7 million and $1.6 million, respectively.
Basic and diluted net income per share of $0.17.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)¹ of $5.1 million.
Adjusted net income¹ of $2.9 million.
Adjusted basic and diluted earnings per share^1,2 of $0.21 and $0.20, respectively.

The table below presents a comparison of certain GAAP and non-GAAP (“Adjusted”) financial measures and AUM.

	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
(in thousands except as indicated)	2024			2023			2024			2023
Revenue	$	31,962		$	28,542		$	123,651		$	117,410
Income (loss) before other income (expense), net	$	1,957		$	(969	)	$	17,627		$	18,819
Net income (loss)	$	2,684		$	(642	)	$	15,709		$	15,183
Net income (loss) margin		8.4	%		(2.2	)%		12.7	%		12.9	%
Net income (loss) attributable to Silvercrest	$	1,618		$	(411	)	$	9,535		$	9,094
Net income (loss) per basic share	$	0.17		$	(0.05	)	$	1.00		$	0.96
Net income (loss) per diluted share	$	0.17		$	(0.04	)	$	1.00		$	0.96
Adjusted EBITDA¹	$	5,070		$	2,581		$	26,101		$	26,878
Adjusted EBITDA Margin¹		15.9	%		9.0	%		21.1	%		22.9	%
Adjusted net income¹	$	2,861		$	1,049		$	15,782		$	16,104
Adjusted basic earnings per share^{1, 2}	$	0.21		$	0.08		$	1.15		$	1.16
Adjusted diluted earnings per share^{1, 2}	$	0.20		$	0.07		$	1.10		$	1.12
Assets under management at period end (billions)	$	36.5		$	33.3		$	36.5		$	33.3
Average assets under management (billions)³	$	35.0		$	32.3		$	34.9		$	31.1
Discretionary assets under management (billions)	$	23.3		$	21.9		$	23.3		$	21.9

___________________
¹	Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in Exhibits 3 and 4.
²	Adjusted basic and diluted earnings per share measures for the three and twelve months ended December 31, 2024 are based on the number of shares of Class A common stock and Class B common stock outstanding as of December 31, 2024. Adjusted diluted earnings per share are further based on the addition of unvested restricted stock units and non-qualified stock options to the extent dilutive at the end of the reporting period.
³	We have computed average AUM by averaging AUM at the beginning of the applicable period and AUM at the end of the applicable period.

AUM at $36.5 Billion

Silvercrest’s discretionary assets under management increased by $1.4 billion, or 6.4%, to $23.3 billion at December 31, 2024, from $21.9 billion at December 31, 2023. The increase was attributable to market appreciation of $2.1 billion partially offset by net client outflows of $0.7 billion. Silvercrest’s total AUM increased by $3.2 billion, or 9.6%, to $36.5 billion at December 31, 2024, from $33.3 billion at December 31, 2023. The increase was attributable to market appreciation of $3.8 billion partially offset by net client outflows of $0.6 billion.

Silvercrest’s discretionary assets under management increased by $0.7 billion, or 3.1%, to $23.3 billion at December 31, 2024, from $22.6 billion at September 30, 2024. The increase was attributable to net client inflows of $0.9 billion partially offset by market depreciation of $0.2 billion. Silvercrest’s total AUM increased by $1.4 billion, or 4.0%, to $36.5 billion at December 31, 2024, from $35.1 billion at September 30, 2024. The increase was attributable to market appreciation of $0.5 billion and net client inflows of $0.9 billion.

Fourth Quarter 2024 vs. Fourth Quarter 2023

Revenue increased by $3.4 million, or 12.0%, to $32.0 million for the three months ended December 31, 2024, from $28.5 million for the three months ended December 31, 2023. This increase was driven by net client inflows in discretionary assets under management partially offset by market depreciation.

Total expenses increased by $0.5 million, or 1.7%, to $30.0 million for the three months ended December 31, 2024, from $29.5 million for the three months ended December 31, 2023. Compensation and benefits expense decreased by $0.8 million, or 3.4%, to $21.9 million for the three months ended December 31, 2024, from $22.7 million for the three months ended December 31, 2023. The decrease was primarily attributable to a decrease in bonuses of $1.7 million, partially offset by increases in salaries and benefits of $0.9 million primarily as a result of merit-based increases and newly hired staff. General and administrative expenses increased by $1.3 million, or 18.5%, to $8.1 million for the three months ended December 31, 2024, from $6.8 million for the three months ended December 31, 2023. This was primarily attributable to increases in portfolio and systems expense of $0.5 million, office expense of $0.2 million, recruiting costs of $0.1 million and professional fees of $0.5 million.

Consolidated net income was $2.7 million for the three months ended December 31, 2024, as compared to consolidated net loss of $0.6 million for the same period in the prior year. Net income attributable to Silvercrest was $1.6 million, or $0.17 per basic and diluted share, for the three months ended December 31, 2024. Our Adjusted Net Income¹ was $2.9 million, or $0.21 per adjusted basic share and $0.20 per adjusted diluted share,² for the three months ended December 31, 2024.

Adjusted EBITDA¹ was $5.1 million, or 15.9% of revenue, for the three months ended December 31, 2024, as compared to $2.6 million or 9.0% of revenue for the same period in the prior year.

Year Ended December 31, 2024 vs. Year Ended December 31, 2023

Revenue increased by $6.2 million, or 5.3%, to $123.7 million for the year ended December 31, 2024, from $117.4 million for the year ended December 31, 2023. This increase was driven by market appreciation in discretionary assets under management partially offset by net client outflows.

Total expenses increased by $7.4 million, or 7.5%, to $106.0 million for the year ended December 31, 2024, from $98.6 million for the year ended December 31, 2024. Compensation and benefits expense increased by $4.0 million, or 5.6%, to $76.7 million for the year ended December 31, 2024, from $72.6 million for the year ended December 31, 2023. The increase was primarily attributable to an increase in equity based compensation expense of $0.3 million due to an increase in the number of unvested restricted stock units and unvested non-qualified stock options outstanding, an increase in salaries and benefits expense of $2.5 million primarily as a result of merit-based increases and newly hired staff and an increase in the accrual for bonuses of $1.2 million. General and administrative expenses increased by $3.4 million, or 13.1%, to $29.4 million for the year ended December 31, 2024, from $26.0 million for the year ended December 31, 2023. The increase was primarily attributable to increases in professional fees of $1.1 million, portfolio and systems expenses of $0.8 million, occupancy and related costs of $0.3 million, trading errors of $0.3 million, recruiting expenses of $0.3 million, travel and entertainment expenses of $0.2 million, depreciation and amortization of $0.1 million, office expense of $0.1 million, publications and subscriptions costs of $0.1 million and sub-advisory and referral fees of $0.1 million.

Consolidated net income was $15.7 million, or 12.7% of revenue, for the year ended December 31, 2024, as compared to consolidated net income of $15.2 million, or 12.9% of revenue, for the same period in the prior year. Net income attributable to Silvercrest was $9.5 million, or $1.00 per basic and diluted share, for the year ended December 31, 2024. Our Adjusted Net Income¹ was $15.8 million, or $1.15 per adjusted basic share and $1.10 per adjusted diluted share,² for the year ended December 31, 2024.

Adjusted EBITDA¹ was $26.1 million, or 21.1% of revenue, for the year ended December 31, 2024, as compared to $26.9 million, or 22.9% of revenue, for the same period in the prior year.

Liquidity and Capital Resources

Cash and cash equivalents were $68.6 million at December 31, 2024, compared to $70.3 million at December 31, 2023. As of December 31, 2024, there was nothing outstanding under our term loan with City National Bank and nothing outstanding on our revolving credit facility with City National Bank.

Silvercrest Asset Management Group Inc.’s total equity was $80.7 million at December 31, 2024. We had 9,376,280 shares of Class A common stock outstanding and 4,373,315 shares of Class B common stock outstanding at December 31, 2024.

Non-GAAP Financial Measures

To provide investors with additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, we supplement our consolidated financial statements presented on a basis consistent with GAAP with Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share, which are non-GAAP financial measures of earnings. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

EBITDA represents net income before provision for income taxes, interest income, interest expense, depreciation and amortization.
We define Adjusted EBITDA as EBITDA without giving effect to the Delaware franchise tax, professional fees associated with acquisitions or financing transactions, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings of the Company, taking into account earnings attributable to both Class A and Class B stockholders.
Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenue. We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted EBITDA Margin, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring profitability of the Company, taking into account profitability attributable to both Class A and Class B stockholders.
Adjusted Net Income represents recurring net income without giving effect to professional fees associated with acquisitions or financing transactions, losses on forgiveness of notes receivable from our principals, gains on extinguishment of debt or other obligations related to acquisitions, impairment charges and losses on disposals or abandonment of assets and leaseholds, client reimbursements and fund redemption costs, severance and other similar expenses, but including partner incentive allocations, prior to our initial public offering, as an expense. Furthermore, Adjusted Net Income includes income tax expense assuming a blended corporate rate of 26%. We believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Net Income, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring income of the Company, taking into account income attributable to both Class A and Class B stockholders.
Adjusted Earnings Per Share represents Adjusted Net Income divided by the actual Class A and Class B shares outstanding as of the end of the reporting period for basic Adjusted Earnings Per Share, and to the extent dilutive, we add unvested restricted stock units and non-qualified stock options to the total shares outstanding to compute diluted Adjusted Earnings Per Share. As a result of our structure, which includes a non-controlling interest, we believe that it is important to management and investors to supplement our consolidated financial statements presented on a GAAP basis with Adjusted Earnings Per Share, a non-GAAP financial measure of earnings, as this measure provides a perspective of recurring earnings per share of the Company as a whole as opposed to being limited to our Class A common stock.

Conference Call

The Company will host a conference call on March 7, 2025, at 8:30 am (Eastern Time) to discuss these results. Hosting the call will be Richard R. Hough III, Chief Executive Officer and President, and Scott A. Gerard, Chief Financial Officer. Listeners may access the call by dialing 1-844-836-8743 or for international listeners the call may be accessed by dialing 1-412-317-5723. A live, listen-only webcast will also be available via the investor relations section of www.silvercrestgroup.com. An archived replay of the call will be available after the completion of the live call on the Investor Relations page of the Silvercrest website at http://ir.silvercrestgroup.com/.

Forward-Looking Statements

This release contains, and from time to time our management may make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and assumptions. These statements are only predictions based on our current expectations and projections about future events. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those indicated by such forward-looking statements include, but are not limited to: incurrence of net losses; fluctuations in quarterly and annual results; adverse economic or market conditions; our expectations with respect to future levels of assets under management, inflows and outflows; our ability to retain clients; our ability to maintain our fee structure; our particular choices with regard to investment strategies employed; our ability to hire and retain qualified investment professionals; the cost of complying with current and future regulation coupled with the cost of defending ourselves from related investigations or litigation; failure of our operational safeguards against breaches in data security, privacy, conflicts of interest or employee misconduct; our expected tax rate; our expectations with respect to deferred tax assets, adverse economic or market conditions; incurrence of net losses; adverse effects of management focusing on implementation of a growth strategy; failure to develop and maintain the Silvercrest brand; and other factors disclosed under “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2023, which is accessible on the U.S. Securities and Exchange Commission’s website at www.sec.gov. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

About Silvercrest

Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser. With offices in New York, Boston, Virginia, New Jersey, California and Wisconsin, Silvercrest provides traditional and alternative investment advisory and family office services to wealthy families and select institutional investors.

Silvercrest Asset Management Group Inc.

Contact: Richard Hough
212-649-0601
rhough@silvercrestgroup.com


Exhibit 1

Silvercrest Asset Management Group Inc. Condensed Consolidated Statements of Operations (Unaudited and in thousands, except share and per share amounts or as noted)

	Year Ended December 31,
	2024			2023
	(Unaudited)
Revenue
Management and advisory fees	$	119,316		$	112,794
Family office services		4,335			4,616
Total revenue		123,651			117,410
Expenses
Compensation and benefits		76,663			72,619
General and administrative		29,361			25,972
Total expenses		106,024			98,591
Income before other (expense) income, net		17,627			18,819
Other (expense) income, net
Other (expense) income, net		203			76
Interest income		1,432			946
Interest expense		(144	)		(421	)
Equity income from investments		1,154			73
Total other (expense) income, net		2,645			674
Income before provision for income taxes		20,272			19,493
Provision for income taxes		(4,563	)		(4,310	)
Net income		15,709			15,183
Less: net income attributable to non-controlling interests		(6,174	)		(6,089	)
Net income attributable to Silvercrest	$	9,535		$	9,094
Net income per share:
Basic	$	1.00		$	0.96
Diluted	$	1.00		$	0.96
Weighted average shares outstanding:
Basic		9,495,375			9,431,404
Diluted		9,532,525			9,464,339


Exhibit 2
Silvercrest Asset Management Group Inc. Condensed Consolidated Statements of Operations (Unaudited and in thousands, except share and per share amounts or as noted)

	For the Three Months Ended December 31,
	2024			2023
	(Unaudited)
Revenue
Management and advisory fees	$	30,871		$	27,349
Family office services		1,091			1,193
Total revenue		31,962			28,542
Expenses
Compensation and benefits		21,903			22,674
General and administrative		8,102			6,837
Total expenses		30,005			29,511
Income (loss) income before other income (expense), net		1,957			(969	)
Other income (expense), net
Other income (expense), net		178			45
Interest income		422			525
Interest expense		(49	)		(107	)
Equity income from investments		1,154			73
Total other income (expense), net		1,705			536
Income (loss) before provision for income taxes		3,662			(433	)
Provision for income taxes		(978	)		(209	)
Net income (loss)		2,684			(642	)
Less: net (income) loss attributable to non-controlling interests		(1,066	)		231
Net income (loss) attributable to Silvercrest	$	1,618		$	(411	)
Net income (loss) per share:
Basic	$	0.17		$	(0.05	)
Diluted	$	0.17		$	(0.04	)
Weighted average shares outstanding:
Basic		9,450,344			9,368,579
Diluted		9,487,453			9,368,579


Exhibit 3
Silvercrest Asset Management Group Inc. Reconciliation of GAAP to non-GAAP (“Adjusted”) Adjusted EBITDA Measure (Unaudited and in thousands, except share and per share amounts or as noted)

Adjusted EBITDA	For the Three Months Ended December 31,						For the Year Ended December 31,
	2024			2023			2024			2023
Reconciliation of non-GAAP financial measure:
Net (loss) income	$	2,684		$	(642	)	$	15,709		$	15,183
Provision for income taxes		978			209			4,563			4,310
Delaware Franchise Tax		50			50			200			200
Interest expense		49			107			144			421
Interest income		(422	)		(525	)		(1,432	)		(946	)
Depreciation and amortization		1,035			1,002			4,146			4,014
Equity-based compensation		542			580			1,916			1,627
Other adjustments (A)		154			1,800			855			2,069
Adjusted EBITDA	$	5,070		$	2,581		$	26,101		$	26,878
Adjusted EBITDA Margin		15.9	%		9.0	%		21.1	%		22.9	%

(A) Other adjustments consist of the following:

	Three Months Ended December 31,				Twelve Months Ended December 31,
	2024		2023		2024		2023
Acquisition costs (a)	$	—	$	—	$	—	$	5
Severance		140		52		393		71
Other (b)		14		1,748		462		1,993
Total other adjustments	$	154	$	1,800	$	855	$	2,069

(a)

For the twelve months ended December 31, 2023, represents professional fees of $5 related to the acquisition of Cortina.

(b)

For the three months ended December 31, 2024, represents a Tax Receivable Agreement adjustment of ($78), an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, software implementation costs of $4, professional fees related to a transfer pricing project of $27 and data conversion costs of $13. For the twelve months ended December 31, 2024, represents a fair value adjustment to the Neosho contingent purchase price consideration of $12, an ASC 842 rent adjustment of $192 related to the amortization of property lease incentives, a Tax Receivable Agreement adjustment of ($78), sign on bonuses paid to certain employees of $188, professional fees of $53 related to a transfer pricing project, legal fees of $46, data conversion costs of $27 and software implementation costs of $22. For the three months ended December 31, 2023, represents a variable compensation payment of $1,667 related to the difference between the number of non-qualified stock options granted to an existing Class B unit holder as determined using the Black-Scholes method inclusive and exclusive of the expected annual dividend yield input, a Tax Receivable Agreement adjustment of ($38), an ASC 842 rent adjustment of $48 related to the amortization of property lease incentives, software implementation costs of $7, a fair value adjustment to the Neosho contingent purchase price consideration of $24, professional fees related to a transfer pricing project of $37 and legal fees related to the startup of a fund of $2. For the twelve months ended December 31, 2023, represents a variable compensation payment of $1,667 related to the difference between the number of non-qualified stock options granted to an existing Class B unit holder as determined using the Black-Scholes method inclusive and exclusive of the expected annual dividend yield input, a Tax Receivable Agreement adjustment of $2, an ASC 842 rent adjustment of $192 related to the amortization of property lease incentives, moving costs of $35, software implementation costs of $35, professional fees related to a transfer pricing project of $37, legal fees related to the startup of a fund of $2, a fair value adjustment to the Neosho contingent purchase price consideration of $24 and a fair value adjustment to the Cortina contingent purchase price consideration of ($2).


Exhibit 4
Silvercrest Asset Management Group Inc. Reconciliation of GAAP to non-GAAP (“Adjusted”) Adjusted Net Income and Adjusted Earnings Per Share Measures (Unaudited and in thousands, except per share amounts or as noted)

Adjusted Net Income and Adjusted Earnings Per Share	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Reconciliation of non-GAAP financial measure:
Net income (loss)	$	2,684		$	(642	)	$	15,709		$	15,183
Consolidated GAAP Provision for income taxes		978			209			4,563			4,310
Delaware Franchise Tax		50			50			200			200
Other adjustments (A)		154			1,800			855			2,069
Adjusted earnings before provision for income taxes		3,866			1,417			21,327			21,762
Adjusted provision for income taxes:
Adjusted provision for income taxes (26% assumed tax rate)		(1,005	)		(368	)		(5,545	)		(5,658	)

Adjusted net income	$	2,861		$	1,049		$	15,782		$	16,104

GAAP net income (loss) per share (B):
Basic	$	0.17		$	(0.05	)	$	1.00		$	0.96
Diluted	$	0.17		$	(0.04	)	$	1.00		$	0.96

Adjusted earnings per share/unit (B):
Basic	$	0.21		$	0.08		$	1.15		$	1.16
Diluted	$	0.20		$	0.07		$	1.10		$	1.12

Shares/units outstanding:
Basic Class A shares outstanding		9,376			9,479			9,376			9,479
Basic Class B shares/units outstanding		4,373			4,431			4,373			4,431
Total basic shares/units outstanding		13,750			13,910			13,750			13,910

Diluted Class A shares outstanding (C)		9,413			9,515			9,413			9,515
Diluted Class B shares/units outstanding (D)		4,945			4,820			4,945			4,820
Total diluted shares/units outstanding		14,358			14,335			14,358			14,335

(A)	See A in Exhibit 3.
(B)	GAAP earnings per share is strictly attributable to Class A stockholders. Adjusted earnings per share takes into account earnings attributable to both Class A and Class B stockholders.
(C)	Includes 37,109 and 35,554 unvested restricted stock units at December 31, 2024 and 2023, respectively.
(D)	Includes 205,079 and 240,998 unvested restricted stock units at December 31, 2024 and 2023, respectively, and 366,293 and 147,506 unvested non-qualified options at December 31, 2024 and 2023, respectively.


Exhibit 5
Silvercrest Asset Management Group Inc. Condensed Consolidated Statements of Financial Condition (Unaudited and in thousands)

	December 31, 2024			December 31, 2023
Assets
Cash and cash equivalents	$	68,611		$	70,301
Investments		1,354			219
Receivables, net		12,225			9,526
Due from Silvercrest Funds		945			558
Furniture, equipment and leasehold improvements, net		7,387			7,422
Goodwill		63,675			63,675
Operating lease assets		16,032			19,612
Finance lease assets		254			330
Intangible assets, net		16,644			18,933
Deferred tax asset		4,220			5,034
Prepaid expenses and other assets		3,085			3,964
Total assets	$	194,432		$	199,574
Liabilities and Equity
Accounts payable and accrued expenses	$	1,953		$	1,990
Accrued compensation		39,865			37,371
Borrowings under credit facility		—			2,719
Operating lease liabilities		22,270			26,277
Finance lease liabilities		262			336
Deferred tax and other liabilities		10,389			9,071
Total liabilities		74,739			77,764
Commitments and Contingencies (Note 10)
Equity
Preferred Stock, par value $0.01, 10,000,000 shares authorized; none issued and outstanding		—			—
Class A Common Stock, par value $0.01, 50,000,000 shares authorized; 10,450,559 and 9,376,280 issued and outstanding, respectively, as of December 31, 2024; 10,287,452 and 9,478,997 issued and outstanding, respectively, as of December 31, 2023		104			103
Class B Common Stock, par value $0.01, 25,000,000 shares authorized; 4,373,315 and 4,431,105 issued and outstanding as of December 31, 2024 and 2023, respectively		42			43
Additional Paid-In Capital		56,369			55,809
Treasury stock, at cost, 1,074,279 and 808,455 shares as of December 31, 2024 and 2023, respectively		(19,728	)		(15,057	)
Accumulated other comprehensive income (loss)		(43	)		(12	)
Retained earnings		43,953			41,851
Total Silvercrest Asset Management Group Inc.’s equity		80,697			82,737
Non-controlling interests		38,996			39,073
Total equity		119,693			121,810
Total liabilities and equity	$	194,432		$	199,574


Exhibit 6
Silvercrest Asset Management Group Inc. Total Assets Under Management (Unaudited and in billions)

Total Assets Under Management:

	Three Months Ended December 31,						% Change from December 31,
	2024			2023			2023
Beginning assets under management	$	35.1		$	31.2			12.5	%

Gross client inflows		2.2			0.9			144.4	%
Gross client outflows		(1.3	)		(1.3	)		0.0	%
Net client flows		0.9			(0.4	)		325.0	%

Market appreciation		0.5			2.5			-80.0	%
Ending assets under management	$	36.5		$	33.3			9.6	%

	Year Ended December 31,						% Change from December 31,
	2024			2023			2023
Beginning assets under management	$	33.3		$	28.9			15.2	%

Gross client inflows		5.1			5.4			-5.6	%
Gross client outflows		(5.7	)		(4.8	)		18.8	%
Net client flows		(0.6	)		0.6			-200.0	%

Market appreciation		3.8			3.8			0.0	%
Ending assets under management	$	36.5		$	33.3			9.6	%


Exhibit 7
Silvercrest Asset Management Group Inc. Discretionary Assets Under Management (Unaudited and in billions)

Discretionary Assets Under Management:

	Three Months Ended December 31,						% Change from December 31,
	2024			2023			2023
Beginning assets under management	$	22.6		$	20.5			10.2	%

Gross client inflows		1.8			0.7			157.1	%
Gross client outflows		(0.9	)		(1.1	)		-18.2	%
Net client flows		0.9			(0.4	)		325.0	%

Market (depreciation) appreciation		(0.2	)		1.8			-111.1	%
Ending assets under management	$	23.3		$	21.9			6.4	%

	Twelve Months Ended December 31,						% Change from December 31,
	2024			2023			2023
Beginning assets under management	$	21.9		$	20.9			4.8	%

Gross client inflows		3.9			3.0			30.0	%
Gross client outflows		(4.6	)		(4.1	)		12.2	%
Net client flows		(0.7	)		(1.1	)		36.4	%

Market appreciation		2.1			2.1			0.0	%
Ending assets under management	$	23.3		$	21.9			6.4	%

Exhibit 8
Silvercrest Asset Management Group Inc. Non-Discretionary Assets Under Management (Unaudited and in billions)

Non-Discretionary Assets Under Management:

	Three Months Ended December 31,						% Change from December 31,
	2024			2023			2023
Beginning assets under management	$	12.5		$	10.7			16.8	%

Gross client inflows		0.4			0.2			100.0	%
Gross client outflows		(0.4	)		(0.2	)		100.0	%
Net client flows		—			—			0.0	%

Market appreciation		0.7			0.7			0.0	%
Ending assets under management	$	13.2		$	11.4			15.8	%

	Twelve Months Ended December 31,						% Change from December 31,
	2024			2023			2023
Beginning assets under management	$	11.4		$	8.0			42.5	%

Gross client inflows		1.2			2.4			-50.0	%
Gross client outflows		(1.1	)		(0.7	)		57.1	%
Net client flows		0.1			1.7			-94.1	%

Market appreciation		1.7			1.7			0.0	%
Ending assets under management	$	13.2		$	11.4			15.8	%


Exhibit 9
Silvercrest Asset Management Group Inc. Assets Under Management (Unaudited and in billions)

	Three Months Ended December 31,
	2024			2023
Total AUM as of September 30,	$	35.088		$	31.187
Discretionary AUM:
Total Discretionary AUM as of September 30,	$	22.639		$	20.462
New client accounts/assets (1)		1.370			0.188
Closed accounts (2)		(0.011	)		(0.103	)
Net cash inflow/(outflow) (3)		(0.458	)		(0.479	)
Non-discretionary to Discretionary AUM (4)		(0.012	)		(0.002	)
Market appreciation		(0.209	)		1.819
Change to Discretionary AUM		0.680			1.423
Total Discretionary AUM at December 31,		23.319			21.885
Change to Non-Discretionary AUM (5)		0.687			0.671
Total AUM as of December 31,	$	36.455		$	33.281

	Twelve Months Ended December 31,
	2024			2023
Total AUM as of January 1,	$	33.281		$	28.905
Discretionary AUM:
Total Discretionary AUM as of January 1,	$	21.885		$	20.851
New client accounts/assets (1)		1.549			0.339
Closed accounts (2)		(0.527	)		(0.202	)
Net cash inflow/(outflow) (3)		(1.714	)		(1.272	)
Non-discretionary to Discretionary AUM (4)		(0.018	)		(0.032	)
Market (depreciation)/appreciation		2.144			2.201
Change to Discretionary AUM		1.434			1.034
Total Discretionary AUM at December 31,		23.319			21.885
Change to Non-Discretionary AUM (5)		1.740			3.342
Total AUM as of December 31,	$	36.455		$	33.281

(1)	Represents new account flows from both new and existing client relationships.
(2)	Represents closed accounts of existing client relationships and those that terminated.
(3)	Represents periodic cash flows related to existing accounts.
(4)	Represents client assets that converted to Discretionary AUM from Non-Discretionary AUM.
(5)	Represents the net change to Non-Discretionary AUM.

Exhibit 10

Silvercrest Asset Management Group Inc.
Equity Investment Strategy Composite Performance^{1, 2}
As of December 31, 2024
(Unaudited)

PROPRIETARY EQUITY PERFORMANCE ^{1, 2}

ANNUALIZED PERFORMANCE

INCEPTION

1-YEAR

3-YEAR

5-YEAR

7-YEAR

INCEPTION

Large Cap Value Composite

4/1/02

16.3

5.1

10.8

10.6

9.7

Russell 1000 Value Index

14.4

5.6

8.7

8.4

7.9

Small Cap Value Composite

4/1/02

10.1

4.3

8.8

7.1

10.3

Russell 2000 Value Index

8.1

1.9

7.3

6.1

7.9

Smid Cap Value Composite

10/1/05

15.7

2.6

7.6

7.0

9.5

Russell 2500 Value Index

11.0

3.8

8.4

7.2

7.8

Multi Cap Value Composite

7/1/02

16.1

2.6

9.2

8.5

9.7

Russell 3000 Value Index

14.0

5.4

8.6

8.3

8.4

Equity Income Composite

12/1/03

10.4

3.1

6.7

7.4

10.8

Russell 3000 Value Index

14.0

5.4

8.6

8.3

8.5

Focused Value Composite

9/1/04

16.7

(0.2

)

5.6

5.4

9.4

Russell 3000 Value Index

14.0

5.4

8.6

8.3

Small Cap Opportunity Composite

7/1/04

14.9

4.5

10.3

10.1

11.0

Russell 2000 Index

11.5

1.2

7.4

6.9

8.1

Small Cap Growth Composite

7/1/04

13.6

(2.9

)

11.1

11.8

10.6

Russell 2000 Growth Index

15.2

0.2

6.9

7.2

8.5

Smid Cap Growth Composite

1/1/06

20.9

(3.2

)

12.6

14.2

11.1

Russell 2500 Growth Index

13.9

0.0

8.1

8.8

9.5

¹	Returns are based upon a time weighted rate of return of various fully discretionary equity portfolios with similar investment objectives, strategies and policies and other relevant criteria managed by Silvercrest Asset Management Group LLC (“SAMG LLC”), a subsidiary of Silvercrest. Performance results are gross of fees and net of commission charges. An investor’s actual return will be reduced by the advisory fees and any other expenses it may incur in the management of the investment advisory account. SAMG LLC’s standard advisory fees are described in Part 2 of its Form ADV. Actual fees and expenses will vary depending on a variety of factors, including the size of a particular account. Returns greater than one year are shown as annualized compounded returns and include gains and accrued income and reinvestment of distributions. Past performance is no guarantee of future results. This piece contains no recommendations to buy or sell securities or a solicitation of an offer to buy or sell securities or investment services or adopt any investment position. This piece is not intended to constitute investment advice and is based upon conditions in place during the period noted. Market and economic views are subject to change without notice and may be untimely when presented here. Readers are advised not to infer or assume that any securities, sectors or markets described were or will be profitable. SAMG LLC is an independent investment advisory and financial services firm created to meet the investment and administrative needs of individuals with substantial assets and select institutional investors. SAMG LLC claims compliance with the Global Investment Performance Standards (GIPS^®).
²	The market indices used to compare to the performance of Silvercrest’s strategies are as follows:
	The Russell 1000 Index is a capitalization-weighted, unmanaged index that measures the 1000 largest companies in the Russell 3000. The Russell 1000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 1000 Index companies with lower price-to-book ratios and lower expected growth values.
	The Russell 2000 Index is a capitalization-weighted, unmanaged index that measures the 2000 smallest companies in the Russell 3000. The Russell 2000 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
	The Russell 2500 Index is a capitalization-weighted, unmanaged index that measures the 2500 smallest companies in the Russell 3000. The Russell 2500 Value Index is a capitalization-weighted, unmanaged index that includes those Russell 2000 Index companies with lower price-to-book ratios and lower expected growth values.
	The Russell 3000 Value Index is a capitalization-weighted, unmanaged index that measures those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth.

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

Source: GlobeNewswire (MIL-OSI)

Reports Full Year 2024 Revenues of $119.8 million

Full Year 2024 Recurring Revenues Grew 15% from Prior Year

Recurring Revenues Grew to 96% of Total Revenues from 84% in the Prior Year

AUSTIN, Texas, March 06, 2025 (GLOBE NEWSWIRE) — Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

Revenue of $30.8 million, up 17% year over year, excluding ERTC revenue up 22% from prior year fourth quarter
Recurring revenue of $28.5 million, up 14% from prior year fourth quarter
Net loss of $3.2 million versus a net loss of $3.6 million during prior year fourth quarter
EBITDA (1) of $3.4 million versus $1.1 million from prior-year fourth quarter
Adjusted EBITDA (1) of $6.2 million, versus $2.8 million from prior-year fourth quarter
Gross profit of $20.9 million versus $17.8 million from prior-year fourth quarter
Non-GAAP gross profit (1) of $22.5 million (Non-GAAP gross margin (1) of 73%) versus $18.8 million (and 72% in prior-year fourth quarter)

Full Year 2024 Financial Highlights

Revenue of $119.8 million increased slightly year over year, excluding ERTC revenue up 17% from prior year
Recurring revenue of $114.5 million up 15% from prior year
Net loss of $11.8 million versus prior year net loss of $9.2 million
EBITDA (1) of $11.4 million versus $14.3 million in the prior year
Adjusted EBITDA (1) of $22.5 million versus $23.3 million in the prior year
Gross profit of $82.1 million versus $85.5 million in the prior year
Non-GAAP gross profit (1) of $88.2 million versus $90.3 million in the prior year

Recent Business Highlights

In January 2025 we signed a major multi-year agreement with an industry leader in audit, consulting, tax and advisory services to resell our Payroll and Payroll Tax Management solutions. The multi-year agreement will deliver comprehensive payroll and payroll tax management services for the firm’s clients enabling them to offer these services for the first time.
We announced the introduction of Luna, a groundbreaking AI agent designed to enhance payroll and HR management. Unlike traditional generative AI chatbots, Luna is an advanced AI agent that understands Asure’s suite of products, serves as an industry expert, and most importantly, can act on behalf of both employees through self-service and business owners and administrators.
Jay Whitehead joined Asure in January 2025 as Senior Vice President to lead our AsurePay™ Platinum VIP Banking card and Marketplace businesses. He is a seasoned entrepreneur, and HCM thought leader who we expect to drive innovation and foster strategic partnerships at Asure.

⁽¹⁾This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

Management Commentary

“We are pleased to report strong results for 2024, demonstrating the continued momentum of our business. Excluding the one-time impact of ERTC revenue, our fourth-quarter revenue grew 22% year-over-year, reaching $30.8 million—an impressive finish to the year. For the full year, total revenue increased modestly to $119.8 million, but when adjusted to exclude ERTC, our revenue growth was 17% year-over-year, underscoring the strength of our core business. Recurring revenue, the backbone of our model, grew 15% year-over-year and now represents 96% of total revenue, up from 84% in 2023. Additionally, our contracted revenue backlog continued to expand, providing further visibility into future growth,” said Asure Chairman and CEO Pat Goepel.

“Our performance in 2024 was particularly strong in key areas, including our Payroll Tax Management product, which drove several major multi-year agreements with enterprise clients. The success of this product, along with our growing backlog, reinforces the durability of our revenue streams and positions us well for the future.”

“We executed our strategy despite the anticipated headwind of replacing one-time ERTC revenue, and we are entering 2025 with a solid foundation for continued growth. Our plan for 2025 includes both organic and inorganic expansion, supported by the significant investments we’ve made in technology, operations, and new product development. With these improvements, we are confident in our ability to drive sustained, long-term growth.”

First Quarter 2025 and Full Year 2025 Revenue Guidance Ranges

The Company is providing the following guidance for the first quarter 2025 and full year 2025 based on the Company’s year-to-date results and recent business trends. The guidance for our first quarter 2025 and the full year 2025 excludes any contribution from future potential acquisitions.

Guidance for 2025

Guidance Range		Q1-2025		FY-2025
Revenue	$	33.0 M – 35.0 M	$	134.0 M -138.0 M
Adjusted EBITDA⁽¹⁾	$	6.0 M -7.0 M		23% -24%

⁽¹⁾This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does.

Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.

Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.

Management’s projections are based on management’s current beliefs and assumptions about the Company’s business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2025 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 5 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry.

Conference Call Details

Asure management will host a conference call on Thursday, March 6, 2025, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.

About Asure Software, Inc.

Asure (Nasdaq: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure’s suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company’s approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com.

Non-GAAP and Adjusted Financial Measures

This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.

Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.

Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.

Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.

Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.

EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.

Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.

Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.

Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.

Income Taxes. The Company excludes income taxes, both at the federal and state levels.

One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.

Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.

Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.

Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.

Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.

Use of Forward-Looking Statements

This press release contains certain statements made by management that may constitute “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP, non-U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of “forward-looking statements” include statements regarding our strategy, future operations, financial condition, results of operations, projected costs, revenue growth, earnings, and plans and objectives of management. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Additionally, we are under no obligation to update any of the forward-looking statements after the date of this press release or to confirm such statements to actual results.

The risks and uncertainties referred to above include—but are not limited to— risks associated with breaches of the Company’s security measures; risks related to material weaknesses; possible fluctuations in the Company’s financial and operating results; privacy concerns and laws and other regulations may limit the effectiveness of our applications; the financial and other impact of any previous and future acquisitions; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; risk of our software and solutions not functioning adequately; interruptions, delays or changes in the Company’s services or the Company’s Web hosting; may incur debt to meet future capital requirements; volatility and weakness in bank and capital markets; access to additional capital; significant costs as a result of operating as a public company; the expiration of Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims and the corresponding cash collections of existing receivables; the inability to continue to release timely updates for changes in laws; the inability to develop new and improved versions of the Company’s services and technological developments; customer’s nonrenewal of their agreements and other similar changes could negatively impact revenue, operating results and financial conditions; the exposure of market, interest, credit and liquidity risk on client funds held int rust; the Company’s operation in highlight competitive markets; risk that our clients could have insufficient funds that could result in limitations in the ability to transmit ACH transactions; impairment of intangible assets; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; various financial aspects of the Company’s Software-as-a-Service model; adverse effects to our business a result of claims, lawsuits, and other proceedings; issues in the use of artificial intelligence in our HCM products and services; adverse changes to financial accounting standards to the Company; inability to maintain third-party licensed software; evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet; factors affecting the Company’s deferred tax assets and ability to value and utilize them; the nature of the Company’s business model; inability to adopt new or correctly interpret existing money service and money transmitter business status; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; interruptions to supply chains and extended shut down of businesses; potential enactment of adverse tax laws, regulation, political, economic and social factors; potential sales of a substantial number of shares of our common stock along with its volatility; risks associate with potential equity-related transactions including dividends, rights under the stockholder plan to discourage certain actions and other impacts as a result of actions of our stockholders.

Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025.

The forward-looking statements, including the financial guidance and 2025 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based. © 2025 Asure Software, Inc. All rights reserved


ASURE SOFTWARE, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts)

	December 31, 2024			December 31, 2023

ASSETS
Current assets:
Cash and cash equivalents	$	21,425		$	30,317
Accounts receivable, net of allowance for credit losses of $6,328 and $4,787 at December 31, 2024 and December 31, 2023, respectively		18,154			14,202
Inventory		195			155
Prepaid expenses and other current assets		4,888			3,471
Total current assets before funds held for clients		44,662			48,145
Funds held for clients		192,615			219,075
Total current assets		237,277			267,220
Property and equipment, net		19,669			14,517
Goodwill		94,724			86,011
Intangible assets, net		69,114			62,082
Operating lease assets, net		4,041			4,991
Other assets, net		11,813			9,047
Total assets	$	436,638		$	443,868
LIABILITIES AND STOCKHOLDERS’EQUITY
Current liabilities:
Current portion of notes payable	$	7,008		$	27
Accounts payable		1,364			2,570
Accrued compensation and benefits		4,485			6,519
Operating lease liabilities, current		1,438			1,490
Other accrued liabilities		6,600			3,862
Deferred revenue		8,363			6,853
Total current liabilities before client fund obligations		29,258			21,321
Client fund obligations		194,378			220,019
Total current liabilities		223,636			241,340
Long-term liabilities:
Deferred revenue		3,430			16
Deferred tax liability		2,612			1,728
Notes payable, net of current portion		5,709			4,282
Operating lease liabilities, noncurrent		3,578			4,638
Other liabilities		358			209
Total long-term liabilities		15,687			10,873
Total liabilities		239,323			252,213
Stockholders’ equity:
Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding		—			—
Common stock, $0.01 par value; 44,000 shares authorized; 26,671 and 25,382 shares issued, 26,671 and 24,998 shares outstanding at December 31, 2024 and December 31, 2023, respectively		267			254
Treasury stock at cost, zero⁽¹⁾and 384 shares at December 31, 2024 and December 31, 2023, respectively		—			(5,017	)
Additional paid-in capital		504,849			487,973
Accumulated deficit		(307,226	)		(290,440	)
Accumulated other comprehensive loss		(575	)		(1,115	)
Total stockholders’ equity		197,315			191,655
Total liabilities and stockholders’ equity	$	436,638		$	443,868
(1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Consolidated Statement of Changes in Stockholders’ Equity for the impact of this transaction.


ASURE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands, except per share amounts)

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

Revenue:
Recurring	$	28,521		$	24,985		$	114,471		$	99,734
Professional services, hardware and other		2,271			1,279			5,321			19,348
Total revenue		30,792			26,264			119,792			119,082
Cost of sales		9,864			8,425			37,685			33,545
Gross profit		20,928			17,839			82,107			85,537
Operating expenses:
Sales and marketing		6,945			6,422			28,316			28,734
General and administrative		9,940			9,747			40,499			39,333
Research and development		2,103			1,739			7,807			6,846
Amortization of intangible assets		4,432			3,694			16,222			13,623
Total operating expenses		23,420			21,602			92,844			88,536
Loss from operations		(2,492	)		(3,763	)		(10,737	)		(2,999	)
Interest income		151			326			913			1,342
Interest expense		(362	)		(302	)		(1,024	)		(5,639	)
Loss on extinguishment of debt		—			—			—			(1,517	)
Other income (expense), net		(2	)		(1	)		8			(292	)
Loss from operations before income taxes		(2,705	)		(3,740	)		(10,840	)		(9,105	)
Income tax expense (benefit)		499			(158	)		933			109
Net loss		(3,204	)		(3,582	)		(11,773	)		(9,214	)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities		(565	)		1,581			540			1,368
Comprehensive loss	$	(3,769	)	$	(2,001	)	$	(11,233	)	$	(7,846	)

Basic and diluted loss per share
Basic	$	(0.12	)	$	(0.14	)	$	(0.45	)	$	(0.42	)
Diluted	$	(0.12	)	$	(0.14	)	$	(0.45	)	$	(0.42	)

Weighted average basic and diluted shares
Basic		26,602			24,907			26,054			22,138
Diluted		26,602			24,907			26,054			22,138


ASURE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)

	Year Ended December 31,
	2024			2023

Cash flows from operating activities:
Net loss	$	(11,773	)	$	(9,214	)
Adjustments to reconcile loss to net cash provided by operations:
Depreciation and amortization		22,142			19,135
Amortization of operating lease assets		1,386			1,481
Amortization of debt financing costs and discount		726			820
Non-cash interest expense		298			1,471
Net accretion of discounts and amortization of premiums on available-for-sale securities		(377	)		(119	)
Provision for expected losses		46			2,047
Provision for deferred income taxes		884			225
Loss on extinguishment of debt		—			990
Net realized gains on sales of available-for-sale securities		(2,609	)		(2,257	)
Share-based compensation		6,444			5,430
Loss on disposals of long-term assets		—			132
Change in fair value of contingent purchase consideration		—			175
Changes in operating assets and liabilities:
Accounts receivable		(3,998	)		(4,126	)
Inventory		(41	)		97
Prepaid expenses and other assets		(1,886	)		5,101
Operating lease right-of-use assets		—			546
Accounts payable		(1,206	)		376
Accrued expenses and other long-term obligations		(1,103	)		87
Operating lease liabilities		(1,555	)		(1,118	)
Deferred revenue		2,010			(2,379	)
Net cash provided by operating activities		9,388			18,900
Cash flows from investing activities:
Acquisition of intangible assets		(13,256	)		(7,651	)
Purchases of property and equipment		(692	)		(1,585	)
Software capitalization costs		(10,187	)		(7,027	)
Purchases of available-for-sale securities		(15,643	)		(27,647	)
Proceeds from sales and maturities of available-for-sale securities		20,522			14,385
Net cash used in investing activities		(19,256	)		(29,525	)
Cash flows from financing activities:
Proceeds from notes payable, net of issuance costs		4,995			—
Payments of notes payable		(420	)		(35,627	)
Debt extinguishment costs		—			(250	)
Net proceeds from issuance of common stock		1,370			46,800
Capital raise fees		(132	)		(338	)
Payments made on amounts due for the acquisition of intangibles		(1,513	)		(311	)
Net change in client fund obligations		(26,342	)		13,931
Net cash provided by (used in) financing activities		(22,042	)		24,205
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents		(31,910	)		13,580
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period		177,622			164,042
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period	$	145,712		$	177,622


ASURE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (in thousands)

	Year Ended December 31,
	2024		2023

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	$	21,425	$	30,317
Restricted cash and restricted cash equivalents included in funds held for clients		124,287		147,305
Total cash, cash equivalents, restricted cash, and restricted cash equivalents	$	145,712	$	177,622

Supplemental information:
Cash paid for interest	$	—	$	3,140
Cash paid for income taxes	$	18	$	432

Non-cash investing and financing activities:
Acquisition of intangible assets	$	5,338	$	357
Notes payable issued for acquisitions	$	3,107	$	1,209
Shares issued for acquisitions	$	9,125	$	2,543


ASURE SOFTWARE, INC. RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (unaudited)

(in thousands)	Q4-24			Q3-24			Q2-24			Q1-24			Q4-23			Q3-23			Q2-23			Q1-23
Revenue⁽¹⁾	$	30,792		$	29,304		$	28,044		$	31,652		$	26,264		$	29,334		$	30,420		$	33,064

Gross Profit to non-GAAP Gross Profit
Gross Profit	$	20,928		$	19,704		$	18,868		$	22,607		$	17,839		$	21,280		$	22,018		$	24,400
Gross Margin		68.0	%		67.2	%		67.3	%		71.4	%		67.9	%		72.5	%		72.4	%		73.8	%

Share-based Compensation		44			44			43			40			32			28			46			31
Depreciation		1,190			1,232			1,145			1,110			921			984			1,309			1,009
Amortization – intangibles		50			50			50			50			50			50			50			268
One-time expenses
Settlements, penalties & interest		25			2			3			—			(6	)		8			—			4
Acquisition and transaction costs		221			367			264			39			—			—			—			—
Other non-recurring expenses		84			—			—			—			—			—			—			—
Non-GAAP Gross Profit	$	22,542		$	21,399		$	20,373		$	23,846		$	18,836		$	22,350		$	23,423		$	25,712
Non-GAAP Gross Margin		73.2	%		73.0	%		72.6	%		75.3	%		71.7	%		76.2	%		77.0	%		77.8	%

Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
Sales and Marketing Expense	$	6,945		$	6,680		$	6,924		$	7,767		$	6,422		$	6,597		$	8,515		$	7,200

Share-based Compensation		251			269			237			243			180			210			149			124
Depreciation		—			1			—			1			1			—			—			—
One-time expenses
Settlements, penalties & interest		78			(5	)		5			18			6			30			4			11
Acquisition and transaction costs		9			68			37			11			—			—			—			—
Other non-recurring expenses		52			—			—			—			—			—			180			—
Non-GAAP Sales and Marketing Expense	$	6,555		$	6,347		$	6,645		$	7,494		$	6,235		$	6,357		$	8,182		$	7,065

General and Administrative Expense to non-GAAP General and Administrative Expense
General and Administrative Expense	$	9,940		$	10,378		$	10,118		$	10,063		$	9,747		$	9,294		$	10,336		$	9,956

Share-based Compensation		1,081			1,187			1,122			1,535			980			936			1,298			1,142
Depreciation		269			264			256			251			225			200			234			210
One-time expenses
Settlements, penalties & interest		142			377			304			98			284			101			432			102
Acquisition and transaction costs		282			371			245			57			51			—			—			—
Other non-recurring expenses		220			253			—			86			53			—			453			—
Non-GAAP General and Administrative Expense	$	7,946		$	7,926		$	8,191		$	8,036		$	8,154		$	8,057		$	7,919		$	8,502

Research and Development Expense to non-GAAP Research and Development Expense
Research and Development Expense	$	2,103		$	1,973		$	1,962		$	1,769		$	1,739		$	1,803		$	1,325		$	1,979

Share-based Compensation		87			90			86			85			69			76			89			40
One-time expenses
Settlements, penalties & interest		21			—			27			31			—			—			—			—
Acquisition and transaction costs		153			195			369			147			—			—			—			—
Other non-recurring expenses		29			—			—			—			—			—			—			—
Non-GAAP Research and Development Expense	$	1,813		$	1,688		$	1,480		$	1,506		$	1,670		$	1,727		$	1,236		$	1,939

⁽¹⁾Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.


ASURE SOFTWARE, INC. RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.) (unaudited)

(in thousands)	Q4-24			Q3-24			Q2-24			Q1-24			Q4-23			Q3-23			Q2-23			Q1-23
Revenue⁽¹⁾	$	30,792		$	29,304		$	28,044		$	31,652		$	26,264		$	29,334		$	30,420		$	33,064

GAAP Net (Loss) Income to Adjusted EBITDA
GAAP Net (Loss) Income	$	(3,204	)	$	(3,901	)	$	(4,360	)	$	(308	)	$	(3,582	)	$	(2,206	)	$	(3,765	)	$	339

Interest expense, net		211			109			(53	)		(156	)		(24	)		782			1,593			1,944
Income taxes		499			170			231			33			(158	)		(123	)		627			(237	)
Depreciation		1,460			1,497			1,402			1,361			1,148			1,185			1,542			1,219
Amortization – intangibles		4,482			4,345			4,096			3,499			3,743			3,384			3,343			3,570
EBITDA	$	3,448		$	2,220		$	1,316		$	4,429		$	1,127		$	3,022		$	3,340		$	6,835
EBITDA Margin		11.2	%		7.6	%		4.7	%		14.0	%		4.3	%		10.3	%		11.0	%		20.7	%

Share-based Compensation		1,463			1,591			1,488			1,902			1,260			1,251			1,582			1,337
One Time Expenses
Settlements, penalties & interest		266			375			339			147			283			140			436			117
Acquisition and transaction costs		665			1,001			914			254			51			—			—			—
Other non-recurring expenses		385			253			—			86			53			—			633			—
Other expense (income), net		2			—			—			(10	)		1			1,800			93			(83	)
Adjusted EBITDA	$	6,229		$	5,440		$	4,057		$	6,808		$	2,775		$	6,213		$	6,084		$	8,206
Adjusted EBITDA Margin		20.2	%		18.6	%		14.5	%		21.5	%		10.6	%		21.2	%		20.0	%		24.8	%

⁽¹⁾Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

Investor Relations Contact
Patrick McKillop
Vice President, Investor Relations
617-335-5058
patrick.mckillop@asuresoftware.com

MIL-OSI: Fidus Investment Corporation Announces Fourth Quarter and Full Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Board of Directors Declared Total Dividends of $0.54 per Share for First Quarter 2025

Base Dividend of $0.43 and Supplemental Dividend of $0.11 Per Share

EVANSTON, Ill, March 06, 2025 (GLOBE NEWSWIRE) — Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights

Total investment income of $37.5 million
Net investment income of $18.6 million, or $0.55 per share
Adjusted net investment income of $18.4 million, or $0.54 per share⁽¹⁾
Invested $120.3 million in debt and equity securities, including five new portfolio companies
Received proceeds from repayments and realizations of $122.8 million
Paid total dividends of $0.61 per share: regular quarterly dividend of $0.43 and supplemental dividend of $0.18 per share on December 27, 2024
Net asset value (“NAV”) of $655.7 million, or $19.33 per share, as of December 31, 2024

Full Year 2024 Financial Highlights

Total investment income of $146.1 million
Net investment income of $74.6 million, or $2.29 per share
Adjusted net investment income of $75.4 million, or $2.31 per share⁽¹⁾
Invested $394.5 million in debt and equity securities, including 16 new portfolio companies
Received proceeds from repayments and realizations of $276.9 million
Paid total dividends of $2.42 per share: regular quarterly dividends totaling $1.72 and supplemental dividends of $0.70 per share
Estimated spillover income (or taxable income in excess of distributions) as of December 31, 2024 of $45.6 million, or $1.34 per share

Management Commentary

“During the fourth quarter and fiscal year 2024, we extended our track record of growing our portfolio while maintaining sound credit quality overall by adhering to our proven strategy of investing in debt and equity investments,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation. “Originations for the year exceeded repayments and realizations resulting in a 13.8% increase in assets under management on a fair value basis. Our portfolio generated 11.6% higher adjusted net investment income and produced $11.6 million of net realized gains. In 2024, we distributed a total of $2.42 per share to our shareholders. For 2025, we remain committed to our strategy and our goals of growing net asset value over time, preserving capital and delivering attractive risk-adjusted returns to our shareholders.”

(1) Supplemental information regarding adjusted net investment income:

On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment adviser provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.

Fourth Quarter 2024 Financial Results

The following table provides a summary of our operating results for the three months ended December 31, 2024, as compared to the same period in 2023 (dollars in thousands, except per share data):


	Three Months Ended December 31,
	2024		2023		$ Change			% Change
Interest income	$	31,651	$	29,511	$	2,140			7.3	%
Payment-in-kind interest income		2,095		1,973		122			6.2	%
Dividend income		104		265		(161	)		(60.8	%)
Fee income		2,998		3,522		(524	)		(14.9	%)
Interest on idle funds		609		1,040		(431	)		(41.4	%)
Total investment income	$	37,457	$	36,311	$	1,146			3.2	%

Net investment income	$	18,648	$	16,939	$	1,709			10.1	%
Net investment income per share	$	0.55	$	0.58	$	(0.03	)		(5.2	%)

Adjusted net investment income⁽¹⁾	$	18,437	$	18,837	$	(400	)		(2.1	%)
Adjusted net investment income per share⁽¹⁾	$	0.54	$	0.65	$	(0.11	)		(16.9	%)

Net increase (decrease) in net assets resulting from operations	$	17,593	$	26,430	$	(8,837	)		(33.4	%)
Net increase (decrease) in net assets resulting from operations per share	$	0.52	$	0.91	$	(0.39	)		(42.9	%)

The $1.1 million increase in total investment income for the three months ended December 31, 2024, as compared to the same period in 2023 was primarily attributable to (i) a $2.3 million increase in total interest income (which includes payment-in-kind interest income) resulting from an increase in average debt investment balances outstanding, partially offset by a decrease in weighted average yield on debt investment balances outstanding, (ii) a $0.2 million decrease in dividend income due to decreased levels of distributions received from equity investments, (iii) a $0.5 million decrease in fee income resulting from a decrease in origination fees, partially offset by an increase in amendment and administrative fees, and (iv) a $0.4 million decrease in interest on idle funds due to a decrease in weighted average cash balances outstanding.

For the three months ended December 31, 2024, total expenses, including the base management fee waiver and income tax provision, were $18.8 million, a decrease of $0.6 million, or (2.9%) from the $19.4 million of total expenses, including the base management fee waiver and income tax provision, for the three months ended December 31, 2023. The decrease was primarily attributable to (i) a $0.3 million increase in interest and financing expenses, (ii) a $0.6 million net increase in base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $0.1 million decrease in the income incentive fee and a $2.1 million decrease in capital gains incentive fee accrued, (iv) a $0.1 million decrease in professional fees, and (v) a $0.8 million increase in income tax provision.

Net investment income increased by $1.7 million, or 10.1%, to $18.6 million during the three months ended December 31, 2024 as compared to the same period in 2023, as a result of the $1.1 million increase in total investment income and the $0.6 million decrease in total expenses, including base management fee waiver and income tax provision. Adjusted net investment income,⁽¹⁾ which excludes the capital gains incentive fee accrual, was $0.54 per share compared to $0.65 per share in the prior year.

For the three months ended December 31, 2024, the total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, was $(0.5) million, as compared to total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, of $19.7 million for the same period in 2023.

Full Year 2024 Financial Results
The following table provides a summary of our operating results for the year ended December 31, 2024 as compared to the same period in 2023 (dollars in thousands, except per share data):

	Years Ended December 31,
	2024		2023		$ Change			% Change
Interest income	$	123,153	$	109,947	$	13,206			12.0	%
Payment-in-kind interest income		7,840		6,634		1,206			18.2	%
Dividend income		2,242		1,215		1,027			84.5	%
Fee income		9,572		9,450		122			1.3	%
Interest on idle funds		3,347		2,864		483			17	%
Total investment income	$	146,154	$	130,110	$	16,044			12.3	%

Net investment income	$	74,636	$	65,106	$	9,530			14.6	%
Net investment income per share	$	2.29	$	2.47	$	(0.18	)		(7.3	%)

Adjusted net investment income⁽¹⁾	$	75,367	$	67,511	$	7,856			11.6	%
Adjusted net investment income per share⁽¹⁾	$	2.31	$	2.56	$	(0.25	)		(9.8	%)

Net increase in net assets resulting from operations	$	78,292	$	77,133	$	1,159			1.5	%
Net increase in net assets resulting from operations per share	$	2.40	$	2.93	$	(0.53	)		(18.1	%)

The $16.0 million increase in total investment income for the year ended December 31, 2024 as compared to the same period in 2023 was primarily attributable to (i) a $14.4 million increase in total interest income resulting from an increase in average debt investment balances outstanding, partially offset by lower weighted average yield on debt investment balances outstanding, (ii) a $1.0 million increase in dividend income due to increased levels of distributions received from equity investments, (iii) a $0.1 million increase in fee income resulting from an increase in amendment and administrative fees, partially offset by a decrease in origination, management, and prepayment fees, and (iv) a $0.5 million increase in interest on idle funds due to an increase in average cash balances outstanding.

For the year ended December 31, 2024, total expenses, including the base management waiver and income tax provision, were $71.5 million, an increase of $6.5 million or 10.0%, from the $65.0 million of total expenses, including income tax provision, for the year ended December 31, 2023. The increase was primarily attributable to (i) a $1.7 million increase in interest and financing expenses, (ii) a $2.6 million net increase in base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $2.0 million increase in income incentive fees, partially offset by a $1.7 million decrease in capital gains incentive fees, (iv) a $0.2 million increase in professional fees, and (v) a $1.4 million increase in income tax provision.

Net investment income increased by $9.5 million, or 14.6%, to $74.6 million during the year ended December 31, 2024 as compared to the same period in 2023, as a result of the $16.0 million increase in total investment income, partially offset by the $6.5 million increase in total expenses, including the base management fee waiver and income tax provision. Adjusted net investment income,⁽¹⁾ which excludes the capital gains incentive fee accrual, increased by $7.9 million, or 11.6%, to $75.4 million.

For the year ended December 31, 2024, the total net realized gain on investments, net of income tax provision on realized gains, was $10.1 million, as compared to total net realized gain on investments, net of income tax provision on realized gains, of $22.4 million for the same period in 2023.

Portfolio and Investment Activities

As of December 31, 2024, the fair value of our investment portfolio totaled $1.1 billion and consisted of 87 active portfolio companies and four portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 101.4% of the related cost basis as of December 31, 2024. As of December 31, 2024, the debt investments of 50 portfolio companies bore interest at a variable rate, which represented $704.0 million, or 74.5%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of December 31, 2024, our average active portfolio company investment at amortized cost was $12.4 million, which excludes investments in four portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 13.3% as of December 31, 2024. The weighted average yield was computed using the effective interest rates for debt investments at cost as of December 31, 2024, including the accretion of original issue discounts and loan origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing, if any.

Fourth quarter 2024 investment activity included the following new portfolio company investments:

Axis Medical Technologies LLC (dba MoveMedical), a leading provider of last-mile supply chain software solutions to medical device OEMs. Fidus invested $14.8 million in first lien debt and preferred equity and made additional commitments up to $0.8 million in first lien debt.
CP Communications, LLC, a provider of specialized technology solutions for live event broadcasters and premium video content producers. Fidus invested $8.4 million in first lien debt, subordinated debt and common equity.
Estex Manufacturing Company, LLC, a branded manufacturer of sewn products used in the utility, airline / aerospace, sports, and military end markets. Fidus invested $6.3 million in first lien debt and common equity.
Fumex, LLC, a leading provider of fume extraction and air filtration systems for industrial manufacturing applications. Fidus invested $7.4 million in first lien debt and common equity.
World Tours LLC, a travel tour operator focused on affinity groups in the United States. Fidus invested $7.0 million in first lien debt and preferred equity.

Liquidity and Capital Resources

As of December 31, 2024, we had $57.2 million in cash and cash equivalents and $95.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). In 2024, we received net proceeds of $66.3 million from the equity at-the-market program (the “ATM Program”). As of December 31, 2024, we had SBA debentures outstanding of $175.0 million, $125.0 million outstanding of our 4.75% notes due January 2026 (the “January 2026 Notes”) and $125.0 million outstanding of our 3.50% notes due November 2026 (the “November 2026 Notes” and collectively with the January 2026 Notes the “Notes”). As of December 31, 2024, the weighted average interest rate on total debt outstanding was 4.6%.

Subsequent Events

On January 6, 2025, we invested $15.0 million in first lien debt and $0.8 million in common equity of Customer Expressions Corp. (dba Case IQ), a leading of SaaS-based Governance, Risk and Compliance (GRC) solutions to mid-size and large enterprises.

On January 7, 2025, we invested $19.0 million in first lien debt, $0.4 million in common equity, and committed up to $2.3 million in a revolving loan to Onsight Industries, LLC, a leading provider of customized signs & displays, mailbox solutions, and site furnishings for the home builder and land developer industries.

On January 14, 2025, we exited our preferred equity investment in Healthfuse, LLC. We received a distribution on our preferred equity investment for a realized gain of approximately $3.2 million.

On January 24, 2025, we received a distribution on our equity investments in Medsurant Holdings, LLC, resulting in a net realized gain of approximately $8.2 million.

On February 5, 2025, we invested $14.0 million in first lien debt, $0.5 million in common equity, $0.1 million in preferred equity, and committed up to $2.0 million in a revolving loan to Fraser Steel LLC, a designer and manufacturer of steel tubular parts and assemblies for OEM customers used in a wide range of applications.

On February 6, 2025, we issued an additional $5.0 million in SBA debentures, which will bear interest at a fixed interim interest rate of 5.207% until the pooling date in March 2025.

On February 13, 2025, we issued an additional $14.5 million in SBA debentures, which will bear interest at a fixed interim interest rate of 5.217% until the pooling date in March 2025.

On February 27, 2025, we repaid $12.5 million of SBA debentures with a weighted average interest rate of 5.755% which would have matured on dates ranging from March 2032 to September 2033.

First Quarter 2025 Dividends Totaling $0.54 Per Share Declared

On February 18, 2025, our board of directors declared a base dividend of $0.43 per share and a supplemental dividend of $0.11 per share for the first quarter. The dividends will be payable on March 27, 2025, to stockholders of record as of March 20, 2025.

When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under GAAP due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2025 taxable income, as well as the tax attributes for 2025 dividends, will be made after the close of the 2025 tax year. The final tax attributes for 2025 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.

Fourth Quarter 2024 Financial Results Conference Call

Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, March 7, 2025. To participate in the conference call, please dial (844) 808-7136 approximately 10 minutes prior to the call. International callers should dial (412) 317-0534. Please ask to be joined into the Fidus Investment Corporation call.

A live webcast of the conference call will be available at http://investor.fdus.com/news-events/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.

ABOUT FIDUS INVESTMENT CORPORATION

Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and is licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC).

FORWARD-LOOKING STATEMENTS

This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain, including, but not limited to, statements about the future performance and financial condition of the Company, the prospects of our existing and prospective portfolio companies, the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives, and the timing, form and amount of any distributions or supplemental dividends in the future. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, such as changes in the financial and lending markets, the impact of the general economy (including an economic downturn or recession), and the impact of interest rate volatility and the impact of elevated levels of inflation on the Company’s business and its portfolio companies; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors related to changes in the markets in which the Company invests, changes in the financial, capital, and lending markets, and other factors described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.

FIDUS INVESTMENT CORPORATION Consolidated Statements of Assets and Liabilities (in thousands, except shares and per share data)

	December 31,		December 31,
	2024		2023
ASSETS
Investments, at fair value:
Control investments (cost: $6,832 and $6,832, respectively)	$	—	$	—
Affiliate investments (cost: $56,679 and $46,485, respectively)		102,024		83,876
Non-control/non-affiliate investments (cost: $1,011,646 and $883,312, respectively)		988,482		874,030
Total investments, at fair value (cost: $1,075,157 and $936,629, respectively)		1,090,506		957,906
Cash and cash equivalents		57,159		119,131
Interest receivable		15,119		11,965
Prepaid expenses and other assets		1,328		1,896
Total assets	$	1,164,112	$	1,090,898
LIABILITIES
SBA debentures, net of deferred financing costs	$	168,899	$	204,472
Notes, net of deferred financing costs		248,362		247,243
Borrowings under Credit Facility, net of deferred financing costs		43,954		(1,082	)
Secured borrowings		13,674		15,880
Accrued interest and fees payable		5,784		5,924
Base management fee payable, net of base management fee waiver – due to affiliate		4,805		4,151
Income incentive fee payable – due to affiliate		4,477		4,570
Capital gains incentive fee payable – due to affiliate		14,703		17,509
Administration fee payable and other, net – due to affiliate		919		789
Taxes payable		1,850		1,227
Accounts payable and other liabilities		1,019		741
Total liabilities	$	508,446	$	501,424
Commitments and contingencies
NET ASSETS
Common stock, $0.001 par value (100,000,000 shares authorized, 33,914,652 and 30,438,979 shares
issued and outstanding at December 31, 2024 and December 31, 2023, respectively)	$	34	$	31
Additional paid-in capital		567,159		504,087
Total distributable earnings		88,473		85,356
Total net assets		655,666		589,474
Total liabilities and net assets	$	1,164,112	$	1,090,898
Net asset value per common share	$	19.33	$	19.37

FIDUS INVESTMENT CORPORATION Consolidated Statements of Operations (unaudited) (in thousands, except shares and per share data)

	Three Months Ended						Years Ended
	December 31,						December 31,
	2024			2023			2024			2023
Investment Income:
Interest income
Control investments	$	—		$	—		$	—		$	—
Affiliate investments		930			858			3,533			4,026
Non-control/non-affiliate investments		30,721			28,653			119,620			105,921
Total interest income		31,651			29,511			123,153			109,947
Payment-in-kind interest income
Control investments		—			—			—			—
Affiliate investments		9			—			9			—
Non-control/non-affiliate investments		2,086			1,973			7,831			6,634
Total payment-in-kind interest income		2,095			1,973			7,840			6,634
Dividend income
Control investments		—			—			—			—
Affiliate investments		—			—			1,830			519
Non-control/non-affiliate investments		104			265			412			696
Total dividend income		104			265			2,242			1,215
Fee income
Control investments		—			—			—			—
Affiliate investments		168			5			183			65
Non-control/non-affiliate investments		2,830			3,517			9,389			9,385
Total fee income		2,998			3,522			9,572			9,450
Interest on idle funds		609			1,040			3,347			2,864
Total investment income		37,457			36,311			146,154			130,110
Expenses:
Interest and financing expenses		6,298			5,988			24,398			22,749
Base management fee		4,869			4,222			18,855			16,288
Incentive fee – income		4,477			4,570			18,549			16,529
Incentive fee (reversal) – capital gains		(211	)		1,898			731			2,405
Administrative service expenses		704			681			2,598			2,353
Professional fees		739			862			3,208			2,906
Other general and administrative expenses		239			258			1,003			1,031
Total expenses before base management fee waiver		17,115			18,479			69,342			64,261
Base management fee waiver		(64	)		(71	)		(264	)		(287	)
Total expenses, net of base management fee waiver		17,051			18,408			69,078			63,974
Net investment income before income taxes		20,406			17,903			77,076			66,136
Income tax provision (benefit)		1,758			964			2,440			1,030
Net investment income		18,648			16,939			74,636			65,106
Net realized and unrealized gains (losses) on investments:
Net realized gains (losses):
Control investments		—			—			—			(11,458	)
Affiliate investments		134			446			134			546
Non-control/non-affiliate investments		(710	)		19,358			11,451			34,983
Total net realized gain (loss) on investments		(576	)		19,804			11,585			24,071
Income tax (provision) benefit from realized gains on investments		43			(93	)		(1,480	)		(1,662	)
Net change in unrealized appreciation (depreciation):
Control investments		—			—			—			11,083
Affiliate investments		7,537			714			7,954			(8,395	)
Non-control/non-affiliate investments		(8,059	)		(10,934	)		(13,882	)		(13,047	)
Total net change in unrealized appreciation (depreciation) on investments		(522	)		(10,220	)		(5,928	)		(10,359	)
Net gain (loss) on investments		(1,055	)		9,491			4,177			12,050
Realized losses on extinguishment of debt		—			—			(521	)		(23	)
Net increase (decrease) in net assets resulting from operations	$	17,593		$	26,430		$	78,292		$	77,133
Per common share data:
Net investment income per share-basic and diluted	$	0.55		$	0.58		$	2.29		$	2.47
Net increase in net assets resulting from operations per share — basic and diluted	$	0.52		$	0.91		$	2.40		$	2.93
Dividends declared per share	$	0.61		$	0.80		$	2.42		$	2.88
Weighted average number of shares outstanding — basic and diluted		33,914,652			28,961,411			32,585,238			26,365,269

Schedule 1

Supplemental Information Regarding Adjusted Net Investment Income

On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three and twelve months ended December 31, 2024 and 2023.

	($ in thousands)					($ in thousands)
	Three Months Ended					Years Ended
	December 31,					December 31,
	(unaudited)					(unaudited)
	2024			2023		2024		2023
Net investment income	$	18,648		$	16,939	$	74,636	$	65,106
Capital gains incentive fee expense (reversal)		(211	)		1,898		731		2,405
Adjusted net investment income⁽¹⁾	$	18,437		$	18,837	$	75,367	$	67,511

	(Per share)					(Per share)
	Three Months Ended					Years Ended
	December 31,					December 31,
	(unaudited)					(unaudited)
	2024			2023		2024		2023
Net investment income	$	0.55		$	0.58	$	2.29	$	2.47
Capital gains incentive fee expense (reversal)		(0.01	)		0.07		0.02		0.09
Adjusted net investment income⁽¹⁾	$	0.54		$	0.65	$	2.31	$	2.56

(1)

Adjusted net investment income per share amounts are calculated as adjusted net investment income dividend by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.

Company Contact:	Investor Relations Contact:
Shelby E. Sherard	Jody Burfening
Chief Financial Officer	Alliance Advisors IR
(847) 859-3940	(212) 838-3777
ssherard@fidusinv.com	jburfening@allianceadvisors.com

MIL-OSI Security: Philadelphia Resident Who Led Large-Scale Drug Trafficking Organization Pleads Guilty to Narcotics Charges

Source: Office of United States Attorneys

JOHNSTOWN, Pa. – A resident of Philadelphia, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today.

Mikal Davis, 47, pleaded guilty before United States District Judge Marilyn J. Horan to Counts One, Three, and Four of the Superseding Indictment.

In connection with the guilty plea, the Court was advised that, from in and around April 2019 to July 2021, in the Western District of Pennsylvania, Davis conspired with others to distribute and possess with intent to distribute one kilogram or more of a mixture of heroin, five kilograms or more of a mixture of cocaine, 400 grams or more of a mixture of fentanyl, 50 grams or more of methamphetamine, 500 grams or more of a mixture of methamphetamine, and 28 grams or more of crack. Davis, who led the drug trafficking organization’s activity in Philadelphia and Johnstown, was one of the targets of a federal wiretap and was intercepted obtaining quantities of the drugs that he distributed to others. Accompanied by distributors below him, Davis frequently traveled between Philadelphia and Johnstown with drug shipments which were then stored and processed at “stash houses” throughout the Western District of Pennsylvania for distribution. During a meeting with a drug source in California for a resupply, Davis arranged for the drug parcels to be mailed to Johnstown for distribution. In the Philadelphia area, Davis met with drug sources and purchased over 2,000 grams of heroin and fentanyl and over 5,000 grams of cocaine from a source in New Jersey.

Judge Horan scheduled sentencing for June 26, 2025. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Davis. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies.

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

MIL-OSI USA: Padilla, Schiff Lead Entire California Delegation in Urging FEMA to Extend LA Fire Victims Assistance Deadline

US Senate News:

Source: United States Senator Alex Padilla (D-Calif.)

Padilla, Schiff Lead Entire California Delegation in Urging FEMA to Extend LA Fire Victims Assistance Deadline

WASHINGTON, D.C. — U.S. Senators Alex Padilla and Adam Schiff (both D-Calif.), along with the Chairs of the Republican and Democratic Congressional Delegations — Representatives Ken Calvert (R-Calif.-41) and Zoe Lofgren (D-Calif.-18) — led the entire bipartisan California Congressional delegation in urging the Federal Emergency Management Agency (FEMA) to extend the application deadline for federal disaster assistance for victims of the Los Angeles fires to May 9, 2025. Currently, the application deadline for most federal disaster assistance programs is March 10, 2025.

“Due to the massive scale of destruction caused by the January wildfires, many victims will not know the total sum of their losses or whether these losses exceed their insurance coverage before the end of the 60-day application period. The widespread damage to infrastructure has made access to many homes in the affected areas difficult or impossible,” wrote the lawmakers. “Additionally, many fire victims have lost computers, cell phones, and other technological devices, limiting their ability to submit applications and to receive messages transmitted by FEMA and other authorities pertaining to relief.”

“We urge you to swiftly extend the application deadlines so that Southern Californians impacted by the fires can evaluate their losses with ample time and apply for relief. Thank you for your attention to this matter and your commitment to delivering relief to those who lost their homes, businesses, and loved ones in this disaster,” continued the lawmakers.

According to the California Department of Forestry and Fire Protection, the Eaton, Palisades, and Hurst fires destroyed over 11,600 homes, displaced 22,600 households, and took at least 29 lives. These fires devastated homes, schools, businesses, places of worship, and entire neighborhoods. Initial estimates show that the economic losses resulting from these fires could make this one of the costliest natural disasters in U.S. history.

Senator Padilla has fought relentlessly to secure and protect Southern Californians’ access to desperately needed disaster relief aid. In the immediate aftermath of the Los Angeles fires, Padilla and Senator Schiff led 47 bipartisan members of the California Congressional delegation in successfully urging President Biden to grant Governor Gavin Newsom’s request for a major disaster declaration to expedite timely relief to Los Angeles County residents impacted by these disasters. Padilla also delivered remarks on the Senate floor urging his Republican colleagues and President Trump to provide essential disaster recovery aid to California without conditioning it on the passage of partisan legislation.

Last month, Padilla introduced bipartisan legislation to create a national Wildfire Intelligence Center to streamline federal response and create a whole-of-government approach to combat wildfires. He also announced a package of three bipartisan bills to bolster fire resilience and proactive mitigation efforts, including the Wildfire Emergency Act, the Fire-Safe Electrical Corridors Act, and the Disaster Mitigation and Tax Parity Act. In January, Padilla introduced another suite of bipartisan bills to strengthen wildfire recovery and resilience, including the Wildland Firefighter Paycheck Protection Act to protect firefighter pay.

Full text of the letter is available here and below:

Dear Acting Administrator Hamilton,

As members of the California delegation, we write to express our appreciation for Federal Emergency Management Agency’s (FEMA) assistance and support in response to the devastating wildfires in Los Angeles this past January. We also write to respectfully urge FEMA to approve Cal OES’s request to extend the application deadline for Individual Assistance (IA) to May 9, 2025, for victims under the January 8, 2025, California Wildfires and Straight-line Winds Major Disaster Declaration.

As you know, FEMA has the authority to extend these deadlines in extraordinary circumstances, such as this disaster. According to the California Department of Forestry and Fire Protection, the Eaton, Palisades, and Hurst fires destroyed over 11,600 homes, displaced 22,600 households, and took 29 lives. These fires devastated homes, schools, businesses, places of worship, and entire neighborhoods. Initial estimates find that the economic losses resulting from these fires could make this one of the costliest natural disasters in U.S. history.

Currently, the application deadline for Individual Assistance through FEMA is March 10, 2025, in line with the standard 60-day application period for most disaster declarations. Due to the massive scale of destruction caused by the January wildfires, many victims will not know the total sum of their losses or whether these losses exceed their insurance coverage before the end of the 60-day application period. The widespread damage to infrastructure has made access to many homes in the affected areas difficult or impossible. Additionally, many fire victims have lost computers, cell phones, and other technological devices, limiting their ability to submit applications and to receive messages transmitted by FEMA and other authorities pertaining to relief. For these reasons, it is imperative that FEMA grant California’s request to extend the IA application deadline to May 9, 2025.

We urge you to swiftly extend the application deadlines so that Southern Californians impacted by the fires can evaluate their losses with ample time and apply for relief. Thank you for your attention to this matter and your commitment to delivering relief to those who lost their homes, businesses, and loved ones in this disaster.

MIL-OSI USA: Crapo Statement at Deputy Treasury Secretary Nomination Hearing

US Senate News:

Source: United States Senator for Idaho Mike Crapo
Washington, D.C.—U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) delivered the following remarks at a hearing to consider the nomination of Michael Falkender to be Deputy Secretary of the Treasury.
As prepared for delivery:
“Today we will consider the nomination of Mike Faulkender to be Deputy Secretary of the Treasury.
“Mr. Faulkender, congratulations on your well-deserved nomination and thank you for your willingness to serve in this important position.
“The U.S. Treasury Department is responsible for overseeing several issues of importance to the U.S. economy. This includes economic policy and financial markets, managing the U.S. government’s finances and debt, the Social Security and Medicare trust funds and financial sanctions, to name just a few.
“The Deputy Treasury Secretary plays a primary role in the formulation and execution of Treasury policies and programs in all aspects of the Department’s activities. Along with Secretary Bessent, the Deputy Treasury Secretary will be thoroughly involved in Congress’s efforts to craft pro-growth tax policies that will benefit all Americans and allow U.S. businesses to compete on the global stage. If confirmed, I look forward to working with you to achieve these goals.
“Mr. Faulkender previously served as the Assistant Secretary for Economic Policy at the Treasury Department during the first Trump Administration. During that time, he played a key role in important policy discussions, like the CARES Act, among other critical initiatives. For his devoted service, he was awarded the Alexander Hamilton Award for Distinguished Leadership, the highest service award granted at Treasury.
“As a university professor and leading economist, Mr. Faulkender’s work has focused on an array of topics relevant to the position for which he has been nominated, including investment considerations for multinational corporations, the corporate capital structure, risk management, corporate liquidity and executive compensation.
“Mr. Faulkender, I have reviewed your background and responses to all questions we posed to you during our rigorous review process. Based upon your public and private sector experience, academic credentials and areas of focus and training, you are highly qualified to serve as Deputy Treasury Secretary in this Administration.
“As Ranking Member for the last four years, I have both supported and opposed nominees put forth by the Biden Administration, but I have never objected to a nomination hearing. The Finance Committee has an arduous nomination process and once the nominee completes all the steps, he or she deserves a public hearing, followed by a vote.
“I thank Mr. Faulkender for his cooperation and responsiveness during this exacting process. He has met with members and staff of this Committee, has gone through our rigorous review and has been open in answering all of our questions.
“My colleagues have sent several letters requesting information on Department of Government Efficiency-related work at Treasury and the IRS, and it is important that Treasury and the IRS be transparent about their actions.
“To date, meaningful information has been provided on both topics, and I expect this will continue.
“For example: on February 4, 2025, Treasury provided a letter outlining the review and access of Treasury’s IT infrastructure and payment systems, including Mr. Krause’s role; on February 12, Treasury provided a follow-up letter attaching detailed witness declarations of the four Treasury employees that are involved in pending legal cases related to the Administration’s government efficiency initiatives; and on February 26, Treasury provided the memorandum of agreement between OPM and IRS for an OPM detailee to the IRS.
“During the committee due diligence meetings, Mr. Faulkender stated that if he was confirmed, he would ensure the requested briefing would be provided to Congress on the Treasury payment systems, as well as be responsive to all questions put forward by Members of Congress, including this Committee.
“As a reminder, I and other Republicans sent several letters to Treasury and the IRS during the Biden Administration with questions on numerous issues including the Organization for Economic Co-operation and Development (OECD), safeguarding taxpayer information, the American Rescue Plan Act and reducing return inventory during tax season, to name a few. Many times, I did not receive a response for several months.
“Mr. Faulkender, I appreciate your commitment to respond to Members of this Committee, including as part of this hearing.
“Congratulations again on your nomination, and I look forward to working with you.”

MIL-OSI United Kingdom: Highland Council agrees a budget for investment and growth

Source: Scotland – Highland Council

The Highland Council has agreed a budget which will see over £4.5 million of revenue investments for 2025 – 2026, over £17 million additional reserves investment for major developments and the creation of over 100 jobs across the Highlands.

Members agreed a 7% increase in Council Tax, one of the lowest increases in Scotland, with 2% of this allocated to create capital investment fund for schools and roads as part of the Highland Investment Plan.

A package of an additional £14 million savings, efficiencies and income generation was agreed, without the need for use of Reserves to balance the budget. This will add to existing saving plans, resulting in a total of £36.7m to be delivered over 3 years. These new savings are described under the themes of improvements to our operating model, efficiencies and mechanisms to generate additional income for the council.

Leader of the Council Raymond Bremner said: “I am delighted that Members have today supported the creation of a Poverty and Equality Commission for the Highland area, underpinned by £870k, to focus on tackling poverty and inequality across Highland communities. This in addition to our planned investment programme will help to sustain our Highland communities, with affordable homes, better access to renewable energy, job opportunities and economic prosperity.”

Convener of the Council Bill Lobban said: “Long term financial planning has enabled us to be in the position today of being able to invest rather than cut. Our savings and income generation plans will mean we can focus a large proportion of our Reserves on investing in huge projects such as an £8m energy investment fund and a £6m transport expansion fund, which will benefit Highland people for many years to come.”

The full budget report can be found on the Council’s website.

6 Mar 2025

MIL OSI United Kingdom –

MIL-OSI Security: Addiction Treatment Center Supervisor Sentenced in Scheme to Defraud Federal, State, and Private Health Care Insurers

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

Insurers were billed for more full client sessions than could be provided in a 24-hour day

PROVIDENCE, RI – A clinical social worker nicknamed by her co-workers as the “Five Minute Queen” who, at times, substituted a one or two sentence conversation for a billed 45-minute therapy session for her addicted patients has been sentenced to three years of supervised release, the first three months to be served in home detention with electronic monitoring, announced Acting United States Attorney Sara Miron Bloom.

In pleading guilty in November 2023 to a charge of conspiracy to commit health care fraud, Mi Ok Song Bruining, 64, admitted that, while employed as a supervisor at Recovery Connections Centers of America, Inc. (RCCA) in Providence, she helped devise and execute a scheme that shortchanged Rhode Island and Massachusetts substance abuse disorder patients out of counseling and treatment services while, at the same time, defrauding Medicare, Medicaid, and other health insurers out of more than $3.5 million dollars.

Bruining, and others working at her direction, routinely submitted false and fraudulent claims for psychotherapy and counseling services that did not occur for the length of time billed, consistently billing for far more patients than was possible for RCCA staff to have seen during office hours. Bruining, known at RCCA as the “Five Minute Queen” for her speed in seeing patients for so-called counseling sessions, billed for 45-minute sessions when she actually saw patients for no more than 5-10 minutes, at times asking patients only one question before she ended a session.

According to information presented to the court, to facilitate this fraud, Ms. Bruining directed counselors and others at RCCA to record in their notes that they were providing counseling in 45-minute intervals, but without listing AM or PM for the start time. Ms. Bruining gave this instruction so that it was not clear that they were seeing more patients than possible within a single hour. She also instructed other counselors to copy and paste the last visit’s note into each entry to make the bill look complete. As a result, many of the patient notes for patients billed by RCCA were simply identical cut-and paste copies of the same note.

Bruining was sentenced today by U.S. District Court Mary S. McElroy to three years of supervised release, the first three months to be served in home detention with electronic monitoring, 100 hours of community service, and to pay restitution in the amount of $100,000.

The case was prosecuted by Assistant United States Attorneys Sara Miron Bloom and Kevin Love Hubbard.

The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. United States Attorney Cunha thanks the IRS, Customs and Border Protection, and the Rhode Island Office of the Attorney General for their assistance in the investigation.

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MIL-OSI: Viridien: Publication of the 2024 Universal Registration Document

Source: GlobeNewswire (MIL-OSI)

Publication of the 2024 Universal Registration Document

Paris, France – March 6, 2025

Viridien announces the publication of its 2024 Universal Registration Document, the original version of which was filed with the French Financial Markets Authority (Autorité des marchés financiers – AMF) on March 6, 2025.

The Universal Registration Document was submitted in European Single Electronic Format (ESEF), as established by Delegated Regulation (EU) 2019/815. It includes in particular:

• the 2024 annual financial report;

• the Board of Directors’ report on corporate governance;

• the description of the share buyback program;

• the reports from the statutory auditors;

• the management report including the information related to Sustainability ; and

• the certification report on information related to Sustainability and Taxonomy.

The 2024 Universal Registration Document is available to the public as per the applicable regulatory conditions. It is also available on Viridien’s website (www.viridiengroup.com/investors/regulated-information) and on the AMF’s website (amf-france.org).

About Viridien:

Viridien (www.viridiengroup.com) is an advanced technology, digital and Earth data company that pushes the boundaries of science for a more prosperous and sustainable future. With our ingenuity, drive and deep curiosity we discover new insights, innovations, and solutions that efficiently and responsibly resolve complex natural resource, digital, energy transition and infrastructure challenges. Viridien employs around 3,400 people worldwide and is listed as VIRI on the Euronext Paris SA (FR001400PVN6).

Contacts

Attachment

Communiqué MAD URD 2024 – ENG – vF

MIL-OSI USA: 2 Mexican nationals, defendants in ICE cases secured in Arizona

Source: US Immigration and Customs Enforcement

PHOENIX, Ariz. – Two Mexican nationals who are targets of an ongoing U.S. Immigration and Customs Enforcement investigation appeared for their initial appearances Feb. 28, after they were secured from Mexico the previous day.

Jose Bibiano Cabrera-Cabrera, 37 and Jesus Humberto Limon-Lopez, 43, were taken into U.S. custody after members of drug cartels were recently designated as Foreign Terrorist Organizations and Specially Designated Global Terrorists, such as the Sinaloa Cartel, Cártel de Jalisco Nueva Generación, Cártel del Noreste, La Nueva Familia Michoacana, and Cártel de Golfo.

These defendants are collectively alleged to have been responsible for the importation into the United States of massive quantities of poison, including cocaine, methamphetamine, fentanyl, and heroin, as well as associated acts of violence.

Limon-Lopez is charged with Continuing Criminal Enterprise; Conspiracy to Distribute Methamphetamine, Fentanyl, Heroin, and Cocaine; Conspiracy to Import Methamphetamine, Fentanyl, Heroin, and Cocaine; Distribution of Methamphetamine; Distribution of Fentanyl; Distribution of Heroin; Distribution of Cocaine; and Conspiracy to Unlawfully Export Firearms and Ammunition. He faces up to life imprisonment.

Cabrera-Cabrera is charged with Conspiracy to Distribute Methamphetamine, Fentanyl, Heroin, and Cocaine; Conspiracy to Import Methamphetamine, Fentanyl, Heroin, and Cocaine; and Conspiracy to Unlawfully Export Firearms and Ammunition. He faces up to life imprisonment.

An indictment is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

The OCDETF Arizona Strike Force is comprised of agents and officers from Customs and Border Protection, the Department of Homeland Security, ICE Homeland Security Investigations, the Drug Enforcement Administration, FBI, the Internal Revenue Service, Criminal Investigations, the United States Marshals Service, the United States Postal Service, United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Arizona Army National Guard, the Maricopa County Sheriff’s Office, the Pima County Sheriff’s Office, and the Scottsdale Police Department.

The prosecution is being handled by the United States Attorney Office for the District of Arizona.

MIL-Evening Report: DOGE threat: How government data would give an AI company extraordinary power

Source: The Conversation (Au and NZ) – By Allison Stanger, Distinguished Endowed Professor, Middlebury

Elon Musk has simultaneous control of DOGE and his AI company xAI. AP Photo/Jose Luis Magana

The Department of Government Efficiency, or DOGE, has secured unprecedented access to at least seven sensitive federal databases, including those of the Internal Revenue Service and Social Security Administration. This access has sparked fears about cybersecurity vulnerabilities and privacy violations. Another concern has received far less attention: the potential use of the data to train a private company’s artificial intelligence systems.

The White House press secretary said government data that DOGE has collected isn’t being used to train Musk’s AI models, despite Elon Musk’s control over DOGE. However, evidence has emerged that DOGE personnel simultaneously hold positions with at least one of Musk’s companies.

At the Federal Aviation Administration, SpaceX employees have government email addresses. This dual employment creates a conduit for federal data to potentially be siphoned to Musk-owned enterprises, including xAI. The company’s latest Grok AI chatbot model conspicuously refuses to give a clear denial about using such data.

As a political scientist and technologist who is intimately acquainted with public sources of government data, I believe this potential transmission of government data to private companies presents far greater privacy and power implications than most reporting identifies. A private entity with the capacity to develop artificial intelligence technologies could use government data to leapfrog its competitors and wield massive influence over society.

Value of government data for AI

For AI developers, government databases represent something akin to finding the Holy Grail. While companies such as OpenAI, Google and xAI currently rely on information scraped from the public internet, nonpublic government repositories offer something much more valuable: verified records of actual human behavior across entire populations.

This isn’t merely more data – it’s fundamentally different data. Social media posts and web browsing histories show curated or intended behaviors, but government databases capture real decisions and their consequences. For example, Medicare records reveal health care choices and outcomes. IRS and Treasury data reveal financial decisions and long-term impacts. And federal employment and education statistics reveal education paths and career trajectories.

What makes this data particularly valuable for AI training is its longitudinal nature and reliability. Unlike the disordered information available online, government records follow standardized protocols, undergo regular audits and must meet legal requirements for accuracy. Every Social Security payment, Medicare claim and federal grant creates a verified data point about real-world behavior. This data exists nowhere else with such breadth and authenticity in the U.S.

Most critically, government databases track entire populations over time, not just digitally active users. They include people who never use social media, don’t shop online, or actively avoid digital services. For an AI company, this would mean training systems on the actual diversity of human experience rather than just the digital reflections people cast online.

A security guard prevented U.S. Sen. Edward Markey, D-Mass., from entering an EPA building on Feb. 6, 2025, to see DOGE staff working there.
Al Drago/Getty Images

The technical advantage

Current AI systems face fundamental limitations that no amount of data scraped from the internet can overcome. When ChatGPT or Google’s Gemini make mistakes, it’s often because they’ve been trained on information that might be popular but isn’t necessarily true. They can tell you what people say about a policy’s effects, but they can’t track those effects across populations and years.

Government data could change this equation. Imagine training an AI system not just on opinions about health care but on actual treatment outcomes across millions of patients. Consider the difference between learning from social media discussions about economic policies and analyzing their real impacts across different communities and demographics over decades.

A large, state-of-the-art, or frontier, model trained on comprehensive government data could understand the actual relationships between policies and outcomes. It could track unintended consequences across different population segments, model complex societal systems with real-world validation and predict the impacts of proposed changes based on historical evidence. For companies seeking to build next-generation AI systems, access to this data would create an almost insurmountable advantage.

Control of critical systems

A company like xAI could do far more with models trained on government data than building better chatbots or content generators. Such systems could fundamentally transform – and potentially control – how people understand and manage complex societal systems. While some of these capabilities could be beneficial under the control of accountable public agencies, I believe they pose a threat in the hands of a single private company.

Medicare and Medicaid databases contain records of treatments, outcomes and costs across diverse populations over decades. A frontier model trained on new government data could identify treatment patterns that succeed where others fail, and so dominate the health care industry. Such a model could understand how different interventions affect various populations over time, accounting for factors such as geographic location, socioeconomic status and concurrent conditions.

A company wielding the model could influence health care policy by demonstrating superior predictive capabilities and market population-level insights to pharmaceutical companies and insurers.

Treasury data represents perhaps the most valuable prize. Government financial databases contain granular details about how money flows through the economy. This includes real-time transaction data across federal payment systems, complete records of tax payments and refunds, detailed patterns of benefit distributions, and government contractor payments with performance metrics.

An AI company with access to this data could develop extraordinary capabilities for economic forecasting and market prediction. It could model the cascading effects of regulatory changes, predict economic vulnerabilities before they become crises, and optimize investment strategies with precision impossible through traditional methods.

Elon Musk’s xAI company is well financed.

Infrastructure and urban systems

Government databases contain information about critical infrastructure usage patterns, maintenance histories, emergency response times and development impacts. Every federal grant, infrastructure inspection and emergency response creates a data point that could help train AI to better understand how cities and regions function.

The power lies in the potential interconnectedness of this data. An AI system trained on government infrastructure records would understand how transportation patterns affect energy use, how housing policies affect emergency response times, and how infrastructure investments influence economic development across regions.

A private company with exclusive access would gain unique insight into the physical and economic arteries of American society. This could allow the company to develop “smart city” systems that city governments would become dependent on, effectively privatizing aspects of urban governance. When combined with real-time data from private sources, the predictive capabilities would far exceed what any current system can achieve.

Absolute data corrupts absolutely

A company such as xAI, with Musk’s resources and preferential access through DOGE, could surmount technical and political obstacles far more easily than competitors. Recent advances in machine learning have also reduced the burdens of preparing data for the algorithms to process, making government data a veritable gold mine – one that rightfully belongs to the American people.

The threat of a private company accessing government data transcends individual privacy concerns. Even with personal identifiers removed, an AI system that analyzes patterns across millions of government records could enable surprising capabilities for making predictions and influencing behavior at the population level. The threat is AI systems that leverage government data to influence society, including electoral outcomes.

Since information is power, concentrating unprecedented data in the hands of a private entity with an explicit political agenda represents a profound challenge to the republic. I believe that the question is whether the American people can stand up to the potentially democracy-shattering corruption such a concentration would enable. If not, Americans should prepare to become digital subjects rather than human citizens.

Allison Stanger receives funding from the Berkman Klein Center for Internet and Society, Harvard University.

– ref. DOGE threat: How government data would give an AI company extraordinary power – https://theconversation.com/doge-threat-how-government-data-would-give-an-ai-company-extraordinary-power-250907

MIL OSI Analysis – EveningReport.nz –

MIL-OSI Security: Columbus Men Sentenced to Decades in Prison for Their Roles in Drug and Human Trafficking Rings, Overdose and Violent Deaths

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

COLUMBUS, Ohio – Two Columbus men were sentenced in U.S. District Court today to 25years and 23 years in prison for drug crimes, sex trafficking crimes and their roles in the deaths of a local man and woman. The defendants are two of nearly two dozen individuals charged in a case involving large-scale drug and human trafficking rings, the overdose death of at least one individual and the violent death of a second victim.

Dustin A. Speakman, 35, of Columbus, was sentenced to 276 months in prison. He pleaded guilty in March 2024 to conspiracy to distribute and possess with intent to distribute controlled substances within 1,000 of an elementary school. As part of his plea, Speakman admitted to his role in the violent death of one victim that occurred during the time he was operating a drug distribution house.

Tyler Bourdo, 31, of Columbus, was sentenced to 300 months in prison. He also pleaded guilty in March 2024 to conspiracy to distribute and possess with intent to distribute controlled substances within 1,000 of an elementary school, as well as distributing fentanyl and cocaine that resulted in death and conspiracy to commit sex trafficking.

Speakman and Bourdo are two of 23 defendants charged in a narcotics and human trafficking case that involves at least two deaths. Two of the defendants were found guilty following a jury trial last month. All 23 defendants have been convicted or pleaded guilty.

According to court documents, from 2008 until June 2022, lead defendants Patrick Saultz and Cordell Washington ran a large-scale drug trafficking organization in Columbus that included sex trafficking, labor trafficking and money laundering.

Court documents detail that the drug trafficking organization brought large quantities of fentanyl, heroin, cocaine, crack cocaine, methamphetamine, oxycodone, alprazolam and marijuana into Columbus. These drugs were sold or used to coerce individuals into sexual activity for some members of the drug ring and their profit.

Speakman joined the drug trafficking organization after being released from jail in 2022, where he was housed with Saultz. Speakman was a mid-level drug distributor for the group out of residences on South Ogden and South Warren.

As part of his guilty plea, Speakman admitted to severely beating one of his drug runners in May 2022 and then providing him with free drugs to make up for the attack. Witnesses said the male was beaten by Speakman and then given cocaine and fentanyl as compensation. Shortly after, the victim began to seize and foam at the mouth and did not respond to Narcan. The victim was driven to an alley near Grant Hospital where he was found unconscious by Columbus Fire Department personnel with severe trauma to the face and head. His cause of death was ultimately determined to be blunt force trauma caused by Speakman.

Bourdo supplied and oversaw the drug distribution at one of the stash houses on North Warren. He was providing the property’s owners approximately $100 in illegal narcotics per day for use of the residence.

According to Bourdo’s plea agreement, on Oct. 14, 2021, an individual was found deceased in an alley between Bourdo’s primary residence and a drug distribution house. The woman was found with a needle in her hand and another needle in her pocket and had been dead for approximately 18 hours.

Further investigation revealed that, on Oct. 10, 2021, the woman had overdosed on crack cocaine and fentanyl at one of the organization’s drug houses that Bourdo supplied on North Warren. Witnesses on site immediately placed the woman in a bathtub and soaked her in cold water. The witnesses provided multiple rounds of Narcan, CPR and chest compressions, eventually resuscitating her. The woman left and, over the next 48 hours, met up with Bourdo on more than one occasion to get and use more drugs.

Video surveillance of the alley shows Bourdo walking to the deceased woman’s body just moments before police personnel arrived to attempt (unsuccessfully) to obtain her phone to prevent further investigation into her death.

As part of his plea, Bourdo admitted to coercing adult drug-addicted females into performing commercial sex acts by using violence as well as providing and then withholding or threatening to withhold narcotics and lodging.

Acting U.S. Attorney Kelly A. Norris commended the investigation coordinated by Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission Central Ohio Human Trafficking Task Force, which includes Columbus Division of Police Chief Elaine Bryant; Jared Murphey , Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit; and Andrew Lawton, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA). Other agencies that have assisted the task force with the investigation include the Franklin County Sheriff’s Office, HIDTA Task Force, IRS-Criminal Investigation, FBI, Ohio Bureau of Criminal Investigations (BCI), Ohio National Guard Counter Drug Task Force, Pickerington Police Department, New Albany Police Department, and the Fairfield County Sheriff’s Office SWAT Team.

Assistant United States Attorneys Timothy Prichard and Emily Czerniejewski are representing the United States in this case.

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

# # #

MIL-OSI Africa: Sugary drinks are a killer: a 20% tax would save lives and rands in South Africa

Source: The Conversation – Africa – By Susan Goldstein, Associate Professor in the SAMRC Centre for Health Economics and Decision Science – PRICELESS SA (Priority Cost Effective Lessons in Systems Strengthening South Africa), University of the Witwatersrand

Non-communicable diseases such as diabetes, hypertension and cardiovascular conditions account for over 70% of global deaths annually.

In South Africa, non-communicable diseases cause more than half of all deaths. Diabetes ranks as the second leading cause after tuberculosis.

A major contributor to rising diabetes rates is the high consumption of sugar-sweetened beverages, including cooldrinks.

The World Health Organization recommends a tax of at least 20% on sugary drinks as an effective tool to help reduce consumption and curb related health risks.

South Africa introduced a tax on sugar-sweetened beverages, officially known as the Health Promotion Levy, in 2018.

The tax applies at R0.0221 ($0.0012) per gram of sugar beyond a 4g/100ml threshold, amounting to an 8% of final selling price. The tax has increased slightly since it was introduced, but not in line with inflation. The Health Promotion Levy therefore falls short of the original 20% target as industry pressure led to a watered-down version of it.

I lead the South African Medical Research Council/Wits Centre for Health Economics and Decision Science – PRICELESS SA, which has been studying various aspects of the levy for over 10 years.

PRICELESS SA is still in the process of measuring the health and financial impact of not implementing the Health Promotion Levy at the recommended 20%. A lack of recent data adds to this challenge. But it is worth noting that the World Obesity Report shows that obesity is still a severe problem in South Africa.

Without interventions, obesity in South Africa is projected to affect 30 million adults and 10 million children by 2035. In 2019 there were 55,238 deaths in South Africa from non-communicable diseases attributable to obesity, and with an annual increase of 2.3% in obesity, deaths are going to increase.

Taxing sugary beverages is effective

Despite the sugar industry’s claims that the Health Promotion Levy is ineffective, global evidence strongly suggests otherwise. Countries that have implemented such taxes have seen significant declines in sugar consumption.

Sugar-sweetened beverage taxes have been implemented in 103 countries and territories globally and have been shown to be effective in many countries.

In Ireland there was a 30.2% reduction in sugar intake through these beverages.

In California a study showed a decrease in overweight and obesity among young people living in cities where there was a sugary beverage tax.

In Mexico, a sugar-sweetened beverages tax at 1 peso ($0.05) per litre was introduced in 2014, and by 2016, sugary drinks sales had dropped by 37%.

Similarly, in the UK, a tax introduced in 2018 led to a 35.4% reduction in sugar consumption from taxed beverages.

The levy has had a positive impact in South Africa. Studies show decreased purchasing of these beverages. There were greater reductions in sales among lower socioeconomic groups and in sub-populations with higher sugary drink consumption.

Mean sugar from taxable beverage purchases fell from 16.25 g/capita per day from the pre-health promotion levy announcement to 10.63 g/capita per day in the year after implementation.

Lower-income households, which initially purchased more taxable sugary beverages than wealthier households, showed the most significant reductions in consumption after the tax was enforced.

This is particularly important as non-communicable diseases disproportionately affect poor and vulnerable populations.

Stronger taxation on sugary beverages not only decreases consumption but also encourages reformulation by manufacturers, leading to healthier products.

The levy does not cause job losses

Sugar-related industries often argue that the tax has led to massive job losses.

Our research contradicts these claims.

A recent study carried out by PRICELESS SA, funded by Bloomberg Philanthropies through the University of North Carolina and the South African Medical Research Council, showed no significant association between the levy and employment levels. It showed that the levy had not been associated with job creation or job losses in sugar-related industries. These include agriculture, beverage manufacturing and commercial enterprises that sell food and beverages.

The study suggests several factors that may explain this:

Firstly, firms may reallocate labour within their operations rather than cut jobs.

Secondly, many beverage producers have responded to the tax by reformulating their products, reducing the sugar content and using non-nutritive sweeteners rather than reducing production.

Thirdly, demand for taxed sugary drinks has not declined enough to affect employment.

Finally, consumers often switch to untaxed alternatives produced by the same companies, preventing financial losses to the industry.

Increasing the levy is beneficial to the public purse

The recent delay of South Africa’s budget speech, due to disagreements within the government over the proposed value added tax increase of two percentage points, highlights the urgent need for additional and alternative revenue sources.

South Africa’s health system is experiencing a massive financial burden due to overweight and obesity, costing R33 billion (US$1.78 billion) annually. This expense accounts for 15.38% of the government’s health expenditure and 0.67% of the country’s GDP. On a per-person basis, the annual cost of overweight and obesity is R2,769 (US$150).

On the other hand, the levy generated R5.8 billion (US$313m) in revenue over its first two fiscal years.

Beyond raising funds, a higher tax rate would provide public health benefits and savings for health services.

Based on our research, increasing the levy to 20% in South Africa could reduce obesity rates by 2.4 to 3.8 percentage points, prevent 85,000 strokes, and save 72,000 lives over two decades.

These improvements potentially save over R5 billion (US$270m) in medical costs.

Unlike other taxation measures, which affect all consumers equally, the levy primarily targets discretionary purchases, making it a fairer fiscal tool.

Therefore, government must act – raise the Health Promotion Levy to 20% and cut the sugar-fuelled health crisis at its root.

Raising the levy to 20% would be a smarter tax for a healthier nation.

Darshen Naidoo, Legal Researcher and Associate Lecturer at PRICELESS SA, University of the Witwatersrand, Johannesburg contributed to the article.

– Sugary drinks are a killer: a 20% tax would save lives and rands in South Africa
– https://theconversation.com/sugary-drinks-are-a-killer-a-20-tax-would-save-lives-and-rands-in-south-africa-251393

MIL OSI Africa –

MIL-OSI USA: $54 Million Renovation Creates 108 Affordable Homes

Source: US State of New York

overnor Kathy Hochul today announced the completion of “62 Main” in the village of Tarrytown, Westchester County — a $54 million development that transformed the former YMCA of Tarrytown into 108 affordable and energy-efficient apartments. In the past five years, New York State Homes and Community Renewal has financed more than 5,000 affordable homes in Westchester. 62 Main continues this effort and complements Governor Hochul’s $25 billion five-year Housing Plan which is on track to create or preserve 100,000 affordable homes statewide.

“My approach to tackling the housing crisis is simple: we need all types of housing options, especially in places like Westchester County,” Governor Hochul said. “Transforming this former YMCA into affordable housing will not only revitalize the building but also provide more than 100 much-needed homes. This project ensures that seniors can remain in the community they cherish, or move to this vibrant village with an essential public transit hub.”

The development is available to households earning up to 70 percent of the Area Median Income. Eighty-eight of the apartments are reserved for seniors aged 55 and older.

The project included a rehabilitation of the interior of the original YMCA facility, transforming it into modern apartments. Extensions to the facility in the rear of the property were demolished and replaced. The historic Main Street façade of the YMCA is intact, in accordance with a Memorandum of Agreement between the developer and the New York State Historic Preservation Office. The façade of the newly constructed portion of the building utilizes classic architectural themes prevalent throughout Tarrytown.

62 Main is fully-electric with energy-efficient features including geothermal heat and air conditioning, ENERGY STAR® appliances, a rooftop solar array, a green roof courtyard and electric car charging stations. The transit-oriented development is three blocks from the Metro North train station and is within walking distance to retail stores, schools, green spaces and medical facilities.

The project is supported by HCR’s Federal Low Income Housing Tax Credit Program that generated $19 million in equity, as well as its Housing Finance Agency, which provided $10.4 million in subsidy from its Senior Housing Program and $8.4 million in tax exempt bonds. Eight of the units will receive rental assistance through Section 8 Project-Based Vouchers issued by HCR. The New York State Energy Research and Development Authority’s New Construction – Housing Program provided $218,000.

The project is also supported by $10.1 million in loans from the Tarrytown Housing Fund – a fund of the Housing Action Council, $5 million from Westchester County’s New Homes Land Acquisition program, a $3 million permanent loan from Community Preservation Corporation Climate Capital to help finance energy efficiency improvements in the project, and $1.5 million in geothermal and solar federal tax credits. The project obtained a 30-year Payment In Lieu of Taxes Agreement with the town of Greenburgh and village of Tarrytown.

All 23 tenants who lived in the Single Room Occupancy units at the facility prior to the construction remained in the development and will continue to pay no greater than 30 percent of their household income towards their rent. The project’s developer is WBP Development, LLC. Tax credit equity was syndicated by Raymond James Affordable Housing Investments.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “This $54 million project is transforming the historic YMCA of Tarrytown site into safe, modern homes that seniors, individuals, and families can all afford. Thanks to our partners, this development epitomizes many of our top priorities and shows New Yorkers the different ways in which the State is boosting the supply of housing.”

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “Providing Westchester residents with the opportunity to live and enjoy clean, modern, and affordable living spaces like we see at 62 Main in Tarrytown will ensure more New Yorkers are benefitting from the State’s energy transition. NYSERDA is proud to support the development of all-electric housing that will help move communities across the state towards a healthier future.”

New York State Office of Parks, Recreation and Historic Preservation Commissioner Pro Tem Randy Simons said, “We are grateful to HCR for working with our office to preserve key historic features of the former YMCA of Tarrytown. The project is another great example of how the adaptive reuse of historic buildings can expand options for affordable housing, lift local economies, promote sustainability and preserve the heritage of our cities and towns.”

U.S. Senator Charles Schumer said, “Every family in Westchester deserves a safe and affordable place to call home. I’m proud that the federal Low-Income Housing Tax Credit that I worked hard to protect and expand has delivered $19 million to transform the former YMCA into 108 new homes at 62 Main in Tarrytown. These brand new homes will be fully-electric and offer the community a green roof courtyard and electric car charging. High housing costs are a key driver of inflation so we must build more housing for working people to bring down those high prices. I applaud Governor Hochul’s work increasing access to affordable housing in Westchester and across New York, and I will continue working to deliver federal resources to ensure that every New Yorker has a roof over their heads.”

State Senate Majority Leader Andrea Stewart-Cousins said, “The completion of 62 Main in Tarrytown provides safe, affordable, and sustainable housing for seniors and families, including the 23 former residents of the Single Room Occupancy units. I commend Wilder Balter Partners Development for their commitment to ensuring that these residents were not displaced, and can now enjoy modern, energy-efficient homes that they can afford. This project required the dedication and collaboration of numerous partners, from Wilder Balter Partners to Westchester County to HCR and NYSERDA, with nearly $53 million in critical funding secured through our State Legislature’s budget allocations. As Senate Majority Leader, it remains my priority to support housing solutions that serve residents of diverse economic backgrounds while enhancing both Westchester County and New York State.”

Westchester County Executive Ken Jenkins said, “Westchester County was proud to allocate $5 million in New Homes Land Acquisition funds for 62 Main in Tarrytown, a $54 million project that has led to the creation of 108 affordable, sustainable homes for our residents. 62 Main repurposed the former YMCA of Tarrytown into modern, transit-oriented apartments, and is the kind of investment our communities need to ensure access to high quality, affordable housing. I want to thank Governor Kathy Hochul for her leadership in bringing 62 Main to fruition.”

Assemblymember MaryJane Shimsky said, “When we talk about building inclusive communities, that includes the creation of residential options for older residents who seek to stay in the area after raising their families and winding down their careers. 62 Main offers the kind of affordable housing solution our seniors need — with cost-saving energy efficiencies, amenities that include social and fitness spaces, adaptive units for hearing and vision impairment, and walkable access to public transportation and a lively downtown. I am proud that New York State has been a partner in funding this worthy project and welcome 62 Main’s new residents to the neighborhood!”

Greenburgh Town Supervisor Paul Feiner said, “Our community and the entire region has a severe shortage of affordable housing. I am very pleased that 108 families will be able to benefit from a beautiful, new affordable housing complex. The families will be able to enjoy living in a great village—and can walk to the theater, great restaurants, shops, the train station, supermarkets.”

Housing Action Council Executive Director Rose Noonan said, “We are pleased to serve as the non-profit partner in partnership with WB Development and to contribute to the capital stack to make this much needed housing feasible. We are particularly excited about the opportunity it afforded the individuals who lived at the YMCA residence to remain and access quality affordable housing.”

Tarrytown Mayor Karen Brown said, “This development honors Tarrytown’s past while securing its future—providing high-quality, affordable housing for seniors, incorporating cutting-edge sustainability features, and seamlessly blending into the fabric of our historic downtown. The partnership between the Village, Wilder Balter Partners, LLC, and the many agencies that made this possible is a shining example of what can be achieved when a community comes together with a shared vision. We are thrilled to welcome the new residents of 62 Main and celebrate this incredible milestone for Tarrytown.”

Wilder Balter Partners Development President William Balter said, “This development was born out of a collaboration among community members, the local merchants association, Village, Town, County and State stakeholders and several financial partners. We could not be happier with the results. In addition to providing new, energy-efficient affordable housing for seniors, Tarrytown’s vibrant downtown business district has a new municipal parking garage, the original 1912 YMCA building in Tarrytown’s historic district has been repurposed and has a restored façade, and the prior SRO tenants are now living in brand new apartments. It’s a true win-win.”

The Community Preservation Corporation CEO Rafael E. Cestero said, “The work to revitalize 62 Main has breathed new life into this former YMCA building, returning it to the community once again as a hub of activity and as a vital resource of new affordable housing. We are proud to help finance the electrification and energy efficient upgrades to the property that will provide a host of benefits for both the owner and tenants. My thanks to our partners at WBP Development, to HCR, the Town of Greenburgh and Village of Tarrytown, and to NYSERDA for their dedication and collaboration.”

Raymond James Affordable Housing Investments Director of Acquisitions Darryl Seavey said,“Raymond James is very proud to have partnered with Wilder Balter Partners, Inc. as the equity investor in the 62 Main Apartments senior housing development. The newly completed 62 Main Apartments is an extraordinarily well-designed project that helps bring high quality affordable housing opportunities to residents of Tarrytown, while at the same time preserving critical components of the historic former Tarrytown YMCA structure. Accordingly, the historic facade of the YMCA building continues to adorn the streetscape of this busy commercial corridor. Raymond James would like to congratulate the team at Wilder Balter Partners, Inc. on the successful completion of this remarkable new housing community.”

Governor Hochul’s Housing Agenda
Governor Hochul is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives for Upstate communities, new incentives and relief from certain state-imposed restrictions to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on state-owned property, an additional $600 million in funding to support a variety of housing developments statewide and new protections for renters and homeowners. In addition, as part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. More than 55,000 homes have been created or preserved to date.

The FY25 Enacted Budget also strengthened the Pro-Housing Community Program which the Governor launched in 2023. Pro Housing Certification is now a requirement for localities to access up to $650 million in discretionary funding. Currently, 285 communities have been certified.