Category: Taxation

MIL-OSI Security: U.S. Attorney’s Office Secures Nearly $9 Million in Fraud and Money Laundering Proceeds from Fraudulently Obtained Paycheck Protection Program Loans

Source: Office of United States Attorneys

NEWARK, N.J. – On May 14, 2025, U.S. District Judge Michael E. Farbiarz entered a final judgment forfeiting to the United States approximately $7 million in fraud and money laundering proceeds, as well as a real property purchased with laundered fraud proceeds that has an estimated market value of nearly $2 million, United States Attorney Alina Habba announced.

On May 6, 2024, the U.S. Attorney’s Office filed a civil forfeiture complaint against approximately $7 million in seized and frozen U.S. currency, as well as a real property in Cresskill, New Jersey, that was purchased with nearly $1 million in laundered fraud proceeds, alleging that the assets were the proceeds of fraud and money laundering offenses. As alleged in the complaint, between April 2020 and August 2020, Jae H. Choi (“Choi”) fraudulently obtained Paycheck Protection Program (“PPP”) loans totaling approximately $8,971,457, and then laundered those fraud proceeds through various financial accounts held in the names of Choi’s nominees, including Choi’s relative and various corporate entities that Choi controlled. According to the civil forfeiture complaint, Choi then spent the laundered fraud proceeds on personal expenses and purchased the Cresskill real property.

United States Attorney Habba credited special agents of the Internal Revenue Service –Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, special agents of the Social Security Administration, Office of the Inspector General’s Boston New York Field Division, under the direction of Special Agent in Charge Amy Connelly, postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen, and special agents of the U.S. Small Business Administration, Office of Inspector General’s Eastern Region, under the direction of Special Agent in Charge Amaleka McCall-Braithwaite, with the investigation.

The government is represented by Assistant U.S. Attorney Peter A. Laserna of the Bank Integrity, Money Laundering, and Recovery Unit of the Criminal Division in Newark.

###

MIL Security OSI –

May 29, 2025

MIL-OSI: Quorum Announces Q1 2025 Results and Board Changes

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, May 28, 2025 (GLOBE NEWSWIRE) — Quorum Information Technologies Inc. (TSX-V: QIS) (“Quorum”), a North American SaaS Software and Services company providing essential enterprise solutions that automotive dealerships and Original Equipment Manufacturers (“OEMs”) rely on for their operations, released its results today for the first quarter of 2025, ended March 31, 2025. Financial references are expressed in Canadian dollars unless otherwise indicated. Please refer to the MD&A and Financial Statements posted onto SEDAR related to non-IFRS measures and risk factors.

“I am pleased to announce that in Q1 2025, Quorum achieved consistent revenue year over year, in a quarter where tariffs are starting to impact the automotive industry in North America,” stated Maury Marks, President and CEO. “Quorum continued to pursue a strategy of profitable growth which delivered an Adjusted EBITDA¹ margin of 15% in Q1 2025 and a Cash EBITDA² margin of 10%, along with 1% organic growth in recurring revenues. Quorum has implemented $1.3 million in annual savings that will be fully realized in Q3 2025 including a BDC gross margin improvement plan, office lease cost savings, third-party service provider savings and other cost improvements. We are also pleased to announce that during Q1 2025 we paid down $0.3 million on our BDC Capital Cash Flow Loan and an additional $0.5 million on May 8, 2025.”

“I would like to sincerely thank our employees, whose efforts were crucial in delivering our Q1 2025 plan and solid quarterly results,” said Mr. Marks. “Their efforts are complemented by our integrated suite of 13 essential software solutions and services. This product suite is fundamental to our profitable growth strategy, as it facilitates product cross-selling and plays a vital role in driving the success of our dealerships, thereby increasing value for both Quorum and its customers.”

Consolidated Results for Q1 2025

	Q1 2025	% Change	Q1 2024
Total Revenue	$10,154,768	1%	$10,062,791
SaaS Revenue	$7,232,390	1%	$7,196,236
BDC Revenue	$2,610,657	4%	$2,513,570
Recurring Revenue	$9,843,047	1%	$9,709,806
Gross Margin	$4,825,306	(5%)	$5,085,481
Gross Margin %	48%		51%
Net Income	$52,533	(95%)	$1,123,921
Net Income per Share	$0.001		$0.015
Adjusted EBITDA	$1,522,635	(29%)	$2,141,695
Adjusted EBITDA Margin	15%		21%
Cash EBITDA	$1,020,628	(27%)	$1,396,262
Cash EBITDA Margin	10%		14%

________________________
¹ Adjusted EBITDA (non-GAAP) – Net income before interest and financing costs, taxes, depreciation, amortization, stock-based compensation, impairment, gain on bargain purchase, one-time acquisition-related expenses and restructuring fees.
² Cash EBITDA (non-GAAP) – Adjusted EBITDA less stock-based compensation, one-time acquisition-related expense, repayment of lease liability, purchase of property and equipment and software development costs.

First Quarter Results

Total revenue increased by 1% to $10.2 million in Q1 2025 compared to Q1 2024.
SaaS revenue increased by 1% to $7.2 million in Q1 2025 compared to Q1 2024.
BDC revenue increased by 4% to $2.6 million in Q1 2025 compared to Q1 2024.
Gross margin decreased by 5% to $4.8 million in Q1 2025 compared to Q1 2024.
Adjusted EBITDA was $1.5 million in Q1 2025, a decrease of $0.6 million compared to Q1 2024.
Cash EBITDA was $1.0 million in Q1 2025, a decrease of $0.4 million compared to Q1 2024.

Board Changes

Quorum is also pleased to announce the appointment of Steve Hammond to the Board of Directors. Steve will be taking the place of Scot Eisenfelder who will not be standing for election at the upcoming AGM after serving on Quorum’s board for 16 years. Steve brings decades of experience as an operator of enterprise software businesses, primarily in the utilities and healthcare verticals.

“Since joining Quorum’s Board of Directors in 2009, Scot has provided invaluable strategic leadership and deep automotive expertise that have been instrumental in shaping Quorum’s success,” stated Mr. Marks. “His mentorship has also significantly influenced my growth as a leader. On behalf of myself and the Board of Directors, we would like to sincerely thank Scot for his contributions over the last 16 years.”

Quorum Q1 2025 Results Conference Call Details and Investor Presentation

Maury Marks, President and Chief Executive Officer and Marilyn Bown, Chief Financial Officer will present the Q1 2025 Results at a conference call with concurrent audio webcast, scheduled for:

An updated Investor Presentation, replay of the results conference call, and transcripts of the conference call, will also be available at www.QuorumInformationSystems.com.

About Quorum Information Technologies Inc.

Quorum is a North American SaaS Software and Services company providing essential enterprise solutions that automotive dealerships and Original Equipment Manufacturers (“OEMs”) rely on for their operations, including:

Quorum’s Dealership Management System (DMS), which automates, integrates, and streamlines key processes across departments in a dealership, and emphasizes revenue generation and customer satisfaction.
DealerMine CRM, a sales and service Customer Relationship Management (“CRM”) system and set of Business Development Centre services that drives revenue into the critical sales and service departments in a dealership.
Autovance, a modern retailing platform that helps dealerships attract more business through Digital Retailing, improve in-store profits and closing rates through its desking tool and maximize their efficiency and Customer Satisfaction Index through Autovance’s F&I menu solution.
Accessible Accessories, a digital retailing platform that allows franchised dealerships to efficiently increase their vehicle accessories revenue.
VINN Automotive, a premier automotive marketplace that streamlines the vehicle research and purchase process for vehicle shoppers while helping retailers sell more efficiently.

Contacts:

Maury Marks
President and Chief Executive Officer
403-777-0036
Maury.Marks@QuorumInfoTech.com

Marilyn Bown
Chief Financial Officer
403-777-0036
Marilyn.Bown@QuorumInfoTech.com

Forward-Looking Information

This press release may contain certain forward-looking statements and forward-looking information (“forward-looking information”) within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “expect”, “may”, “will”, “project”, “should” or similar words suggesting future outcomes. Quorum believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Quorum’s actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information.

Quorum has filed its Q1 2025 unaudited condensed interim consolidated financial statements and notes thereto as at and for the three months ended March 31, 2025, and accompanying management and discussion and analysis in accordance with National Instrument 51-102 – Continuous Disclosure Obligations adopted by the Canadian securities regulatory authorities.

Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS. For additional information please go to www.QuorumInformationSystems.com.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed this release and neither accepts responsibility for the adequacy or accuracy of this release.

PDF available: http://ml.globenewswire.com/Resource/Download/05b3f1e3-78f2-4e2b-9c8b-df995ca89b19

The MIL Network –

May 29, 2025

MIL-OSI: HP Inc. Reports Fiscal 2025 Second Quarter Results

Source: GlobeNewswire (MIL-OSI)

PALO ALTO, Calif., May 28, 2025 (GLOBE NEWSWIRE) — HP (NYSE: HPQ)

Second quarter GAAP diluted net earnings per share (“EPS”) of $0.42, down 31% from the prior year period
Second quarter non-GAAP diluted net EPS of $0.71, down 13% from the prior year period
Second quarter net revenue of $13.2 billion, up 3.3% from the prior-year period
Second quarter net cash provided by operating activities of $38 million, free cash flow of $(95) million
Second quarter returned $0.4 billion to shareholders in the form of dividend and share repurchases

*HP Inc.’s fiscal 2025 second quarter financial performance*
	Q2 FY25			Q2 FY24			Y/Y
GAAP net revenue ($B)	$	13.2		$	12.8		3.3	%
GAAP operating margin		4.9	%		7.4	%	(2.5	)pts
GAAP net earnings ($B)	$	0.4		$	0.6		(33	)%
GAAP diluted net EPS	$	0.42		$	0.61		(31	)%
Non-GAAP operating margin		7.3	%		8.8	%	(1.5	)pts
Non-GAAP net earnings ($B)	$	0.7		$	0.8		(17	)%
Non-GAAP diluted net EPS	$	0.71		$	0.82		(13	)%
Net cash provided by operating activities ($B)	$	0.0		$	0.6		(94	)%
Free cash flow ($B)	$	(0.1	)	$	0.5		(120	)%

^{Notes to table}
^{Information about HP Inc.’s use of non-GAAP financial information is provided under “Use of non-GAAP financial information” below.}

Net revenue and EPS results
HP Inc. and its subsidiaries (“HP”) announced fiscal 2025 second quarter net revenue of $13.2 billion, up 3.3% (up 4.5% in constant currency) from the prior-year period.

“In Q2, we delivered solid revenue growth, led by strong Commercial performance in Personal Systems and continued momentum behind our future of work strategy,” said Enrique Lores, President and CEO, HP Inc. “While results in the quarter were impacted by a dynamic regulatory environment, we responded quickly to accelerate the expansion of our manufacturing footprint and further reduce our cost structure. These decisive actions strengthen our foundation and position us to deliver long-term sustainable growth.”

“In light of the increased macroeconomic uncertainty, we have adjusted our outlook to reflect moderated demand and the net impact of trade-related costs,” said Karen Parkhill, CFO, HP Inc. “We are executing targeted mitigation strategies, and assuming current conditions remain, we expect to fully offset these costs by Q4.”

Second quarter GAAP diluted net EPS was $0.42, down from $0.61 in the prior-year period and below the previously provided outlook of $0.62 to $0.72. Second quarter non-GAAP diluted net EPS was $0.71, down from $0.82 in the prior-year period and below the previously provided outlook of $0.75 to $0.85. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS excludes after-tax adjustments of $272 million, or $0.29 per diluted share, related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation charges, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.

Asset management
HP’s net cash provided by operating activities in the second quarter of fiscal 2025 was $38 million. Accounts receivable ended the quarter at $4.3 billion, up 2 days quarter over quarter to 30 days. Inventory ended the quarter at $8.2 billion, down 2 days quarter over quarter to 70 days. Accounts payable ended the quarter at $15.2 billion, down 9 days quarter over quarter to 130 days.

HP generated $(95) million of free cash flow in the second quarter. Free cash flow includes net cash provided by operating activities of $38 million adjusted for net investments in leases from integrated financing of $50 million and net investments in property, plant, equipment and purchased intangible of $183 million.

HP’s dividend payment of $0.2894 per share in the second quarter resulted in cash usage of $273 million. HP also utilized $100 million of cash during the quarter to repurchase approximately 3.0 million shares of common stock in the open market. HP exited the quarter with $2.7 billion in gross cash, which includes cash and cash equivalents of $2.7 billion, restricted cash of $33 million and short-term investments of $3 million included in other current assets. Restricted cash is related to amounts collected and held on behalf of a third party for trade receivables previously sold.

Fiscal 2025 second quarter segment results

Personal Systems net revenue was $9.0 billion, up 7% year over year (up 8% in constant currency) with a 4.5% operating margin. Consumer PS net revenue was up 2% and Commercial PS net revenue was up 9%. Total units were up 6% with Consumer PS units down 2% and Commercial PS units up 11%.
Printing net revenue was $4.2 billion, down 4% year over year (down 3% in constant currency) with a 19.5% operating margin. Consumer Printing net revenue was down 3% and Commercial Printing net revenue was down 3%. Supplies net revenue was down 5% (down 3% in constant currency). Total hardware units were up 1%, with Consumer Printing units up 3% and Commercial Printing units down 2%.

Outlook
For the fiscal 2025 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.57 to $0.69 and non-GAAP diluted net EPS to be in the range of $0.68 to $0.80. Fiscal 2025 third quarter non-GAAP diluted net EPS estimates exclude $0.11 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation impacts, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items.

For fiscal 2025, HP estimates GAAP diluted net EPS to be in the range of $2.32 to $2.62 and non-GAAP diluted net EPS to be in the range of $3.00 to $3.30. Fiscal 2025 non-GAAP diluted net EPS estimates exclude $0.68 per diluted share, primarily related to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation impacts, non-operating retirement-related credits, tax adjustments, and the related tax impact on these items. For fiscal 2025, HP anticipates generating free cash flow in the range of $2.6 to $3.0 billion. HP’s outlook reflects the added cost driven by the current U.S. tariffs in place, and associated mitigations.

More information on HP’s earnings, including additional financial analysis and an earnings overview presentation, is available on HP’s Investor Relations website at investor.hp.com.

HP’s FY25 Q2 earnings conference call is accessible via audio webcast at www.hp.com/investor/2025Q2Webcast.

About HP Inc.
HP Inc. (NYSE: HPQ) is a global technology leader and creator of solutions that enable people to bring their ideas to life and connect to the things that matter most. Operating in more than 170 countries, HP delivers a wide range of innovative and sustainable devices, services and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming, and more. For more information, please visit http://www.hp.com.

Use of non-GAAP financial information
To supplement HP’s consolidated condensed financial statements presented on a generally accepted accounting principles (“GAAP”) basis, HP provides net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt) financial measures. HP also provides forecasts of non-GAAP diluted net EPS and free cash flow. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which HP’s management uses these non-GAAP measures to evaluate its business, the substance behind HP’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP’s management compensates for those limitations, and the substantive reasons why HP’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP financial measures” after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for net revenue, operating expense, operating profit, operating margin, other income and expenses, tax rate, net earnings, diluted net EPS, cash provided by operating activities or cash, cash equivalents, and restricted cash prepared in accordance with GAAP.

Forward-looking statements
This document contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, they could affect the business and results of operations of HP Inc. and its consolidated subsidiaries which may differ materially from those expressed or implied by such forward-looking statements and assumptions.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, projections of net revenue, margins, expenses, effective tax rates, net earnings, net earnings per share, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges, planned structural cost reductions and productivity initiatives; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our business model and transformation, our sustainability goals, our go-to-market strategy, the execution of restructuring plans and any resulting cost savings (including the fiscal 2023 plan), net revenue or profitability improvements or other financial impacts; any statements concerning the expected development, demand, performance, market share or competitive performance relating to products or services; any statements concerning potential supply constraints, component shortages, manufacturing disruptions or logistics challenges; any statements regarding current or future macroeconomic trends or events, including global trade policies, and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims, disputes or other litigation matters; any statements of expectation or belief as to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing. Forward-looking statements can also generally be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” and similar terms.

Risks, uncertainties and assumptions that could affect our business and results of operations include factors relating to HP’s ability to execute on its strategic plans, including the previously announced initiatives, business model changes and transformation; the development and transition of new products and services and the enhancement of existing products and services to meet evolving customer needs and respond to emerging technological trends, including artificial intelligence; the use of artificial intelligence; the impact of macroeconomic and geopolitical trends, changes and events, including global trade policies, the ongoing military conflict in Ukraine, continued instability in the Middle East or tensions in the Taiwan Strait and South China Sea and the regional and global ramifications of these events; volatility in global capital markets and foreign currency, increases in benchmark interest rates, the effects of inflation and instability of financial institutions; risks associated with HP’s international operations and the effects of business disruption events, including those resulting from climate change; the need to manage (and reliance on) third-party suppliers, including with respect to supply constraints and component shortages, and the need to manage HP’s global, multi-tier distribution network and potential misuse of pricing programs by HP’s channel partners, adapt to new or changing marketplaces and effectively deliver HP’s services; the execution and performance of contracts by HP and its suppliers, customers, clients and partners, including logistical challenges with respect to such execution and performance; the competitive pressures faced by HP’s businesses; the impact of third-party claims of IP infringement; successfully innovating, developing and executing HP’s go-to-market strategy, including online, omnichannel and contractual sales, in an evolving distribution, reseller and customer landscape; successfully competing and maintaining the value proposition of HP’s products, including supplies and services; challenges to HP’s ability to accurately forecast inventories, demand and pricing, which may be due to HP’s multi-tiered channel, sales of HP’s products to unauthorized resellers or unauthorized resale of HP’s products or our uneven sales cycle; the hiring and retention of key employees; the results of our restructuring plans (including the fiscal 2023 plan), including estimates and assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of our restructuring plans; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; disruptions in operations from system security risks, data protection breaches, or cyberattacks; HP’s ability to maintain its credit rating, satisfy its debt obligations and complete any contemplated share repurchases, other capital return programs or other strategic transactions; changes in estimates and assumptions HP makes in connection with the preparation of its financial statements; the impact of changes to federal, state, local and foreign laws and regulations, including environmental regulations and tax laws; integration and other risks associated with business combination and investment transactions; our aspirations related to environmental, social and governance matters; potential impacts, liabilities and costs from pending or potential investigations, claims and disputes; the effectiveness of our internal control over financial reporting; and other risks that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and HP’s other filings with the Securities and Exchange Commission (“SEC”). HP’s fiscal 2023 plan includes HP’s efforts to take advantage of future growth opportunities, including but not limited to, investments to drive growth, investments in our people, improving product mix, driving structural cost savings and other productivity measures. Structural cost savings represent gross reductions in costs driven by operational efficiency, digital transformation, and portfolio optimization. These initiatives include but are not limited to workforce reductions, platform simplification, programs consolidation and productivity measures undertaken by HP, which HP expects to be sustainable in the longer-term. These structural cost savings are net of any new recurring costs resulting from these initiatives and exclude one-time investments to generate such savings. HP’s expectations on the longer-term sustainability of such structural cost savings are based on its current business operations and market dynamics and could be significantly impacted by various factors, including but not limited to HP’s evolving business models, future investment decisions, market environment and technology landscape.

As in prior periods, the financial information set forth in this document, including any tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HP’s Annual Report on Form 10-K for the fiscal year ending October 31, 2025, Quarterly Report on Form 10-Q for the fiscal quarter ending July 31, 2025, and HP’s other filings with the SEC. The forward-looking statements in this document are made as of the date of this document and HP assumes no obligation and does not intend to update these forward-looking statements.

HP’s Investor Relations website at investor.hp.com contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated, and new information is posted. The content of HP’s website is not incorporated by reference into this document or in any other report or document HP files with the SEC, and any references to HP’s website are intended to be inactive textual references only.


HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts)

	Three months ended
	April 30, 2025			January 31, 2025			April 30, 2024
Net revenue:
Products	$	12,423		$	12,695		$	12,043
Services		797			809			757
Total net revenue		13,220			13,504			12,800
Cost of net revenue:
Products		10,007			10,194			9,324
Services		474			470			453
Total cost of net revenue		10,481			10,664			9,777
Gross profit		2,739			2,840			3,023
Research and development		401			397			436
Selling, general and administrative		1,480			1,459			1,462
Restructuring and other charges		122			70			71
Acquisition and divestiture charges		17			6			22
Amortization of intangible assets		65			63			80
Total operating expenses		2,085			1,995			2,071
Earnings from operations		654			845			952
Interest and other, net		(148	)		(141	)		(155	)
Earnings before taxes		506			704			797
Provision for taxes		(100	)		(139	)		(190	)
Net earnings	$	406		$	565		$	607

Net earnings per share:
Basic	$	0.43		$	0.60		$	0.62
Diluted	$	0.42		$	0.59		$	0.61

Cash dividends declared per share	$	—		$	0.58		$	—

Weighted-average shares used to compute net earnings per share:
Basic		950			948			984
Diluted		956			957			990

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts)

	Six months ended
	April 30, 2025			April 30, 2024
Net revenue:
Products	$	25,118		$	24,462
Services		1,606			1,523
Total net revenue		26,724			25,985
Cost of net revenue:
Products		20,201			19,195
Services		944			879
Total cost of net revenue		21,145			20,074
Gross profit		5,579			5,911
Research and development		798			835
Selling, general and administrative		2,939			2,845
Restructuring and other charges		192			134
Acquisition and divestiture charges		23			49
Amortization of intangible assets		128			161
Total operating expenses		4,080			4,024
Earnings from operations		1,499			1,887
Interest and other, net		(289	)		(297	)
Earnings before taxes		1,210			1,590
Provision for taxes		(239	)		(361	)
Net earnings	$	971		$	1,229

Net earnings per share:
Basic	$	1.02		$	1.24
Diluted	$	1.02		$	1.23

Cash dividends declared per share	$	0.58		$	0.55

Weighted-average shares used to compute net earnings per share:
Basic		949			990
Diluted		956			996

HP INC. AND SUBSIDIARIES ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)

	Three months ended
	April 30, 2025						January 31, 2025						April 30, 2024
	Amounts			Diluted net earnings per share			Amounts			Diluted net earnings per share			Amounts			Diluted net earnings per share
GAAP net earnings	$	406		$	0.42		$	565		$	0.59		$	607		$	0.61
Non-GAAP adjustments:
Restructuring and other charges		122			0.13			70			0.07			71			0.07
Acquisition and divestiture charges		17			0.01			6			0.01			22			0.02
Amortization of intangible assets		65			0.07			63			0.07			80			0.08
Certain litigation charges^(a)		103			0.11			—			—			—			—
Non-operating retirement-related credits		(6	)		(0.01	)		(5	)		(0.01	)		(3	)		—
Tax adjustments^(b)		(29	)		(0.02	)		5			0.01			35			0.04
Non-GAAP net earnings	$	678		$	0.71		$	704		$	0.74		$	812		$	0.82

GAAP earnings from operations	$	654					$	845					$	952
Non-GAAP adjustments:
Restructuring and other charges		122						70						71
Acquisition and divestiture charges		17						6						22
Amortization of intangible assets		65						63						80
Certain litigation charges^(a)		103						—						—
Non-GAAP earnings from operations	$	961					$	984					$	1,125

GAAP operating margin		4.9	%					6.3	%					7.4	%
Non-GAAP adjustments		2.4	%					1.0	%					1.4	%
Non-GAAP operating margin		7.3	%					7.3	%					8.8	%

^{(a) HP incurs settlement expenses from backward-looking claims that arise from certain existing or threatened Standard Essential Patent (“SEP”) litigation that are distinctive and substantial when compared to other intellectual property litigation that HP incurs in the ordinary course of business. HP excludes these SEP litigation expenses for purposes of calculating these non-GAAP measures. For the third and fourth quarters of fiscal year 2024, the SEP litigation expenses were $18 million and $40 million, respectively. Consequently, the revised non-GAAP diluted net earnings per share for the third and fourth quarters of fiscal year 2024 are $0.84 and $0.96, respectively.}
^{(b) Includes tax impact on non-GAAP adjustments.}

HP INC. AND SUBSIDIARIES ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)

	Six months ended
	April 30, 2025						April 30, 2024
	Amounts			Diluted net earnings per share			Amounts			Diluted net earnings per share
GAAP net earnings	$	971		$	1.02		$	1,229		$	1.23
Non-GAAP adjustments:
Restructuring and other charges		192			0.20			134			0.14
Acquisition and divestiture charges		23			0.03			49			0.05
Amortization of intangible assets		128			0.13			161			0.16
Certain litigation charges^(a)		103			0.11			—			—
Non-operating retirement-related credits		(11	)		(0.01	)		(5	)		(0.01	)
Tax adjustments^(b)		(24	)		(0.03	)		52			0.06
Non-GAAP net earnings	$	1,382		$	1.45		$	1,620		$	1.63

GAAP earnings from operations	$	1,499					$	1,887
Non-GAAP adjustments:
Restructuring and other charges		192						134
Acquisition and divestiture charges		23						49
Amortization of intangible assets		128						161
Certain litigation charges^(a)		103						—
Non-GAAP earnings from operations	$	1,945					$	2,231

GAAP operating margin		5.6	%					7.3	%
Non-GAAP adjustments		1.7	%					1.3	%
Non-GAAP operating margin		7.3	%					8.6	%

^{(a) HP incurs settlement expenses from backward-looking claims that arise from certain existing or threatened SEP litigation that are distinctive and substantial when compared to other intellectual property litigation that HP incurs in the ordinary course of business. HP excludes these SEP litigation expenses for purposes of calculating these non-GAAP measures. For the nine months ended fiscal year 2024 and fiscal year 2024, the SEP litigation expenses were $18 million and $58 million, respectively. Consequently, the revised non-GAAP diluted net earnings per share for the nine months ended fiscal year 2024 and fiscal year 2024 are $2.47 and $3.43, respectively.}
^{(b) Includes tax impact on non-GAAP adjustments.}

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (In millions)

	As of
	April 30, 2025			October 31, 2024
ASSETS
Current assets:
Cash, cash equivalents and restricted cash	$	2,730		$	3,253
Accounts receivable, net		4,336			5,117
Inventory		8,175			7,720
Other current assets		4,217			4,670
Total current assets		19,458			20,760
Property, plant and equipment, net		2,951			2,914
Goodwill		8,713			8,627
Other non-current assets		7,677			7,608
Total assets	$	38,799		$	39,909

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Notes payable and short-term borrowings	$	1,446		$	1,406
Accounts payable		15,195			16,903
Other current liabilities		9,915			10,378
Total current liabilities		26,556			28,687
Long-term debt		9,291			8,263
Other non-current liabilities		4,228			4,282
Stockholders’ deficit		(1,276	)		(1,323	)
Total liabilities and stockholders’ deficit	$	38,799		$	39,909

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)

	Three months ended
	April 30, 2025			April 30, 2024
Cash flows from operating activities:
Net earnings	$	406		$	607
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		205			209
Stock-based compensation expense		140			94
Restructuring and other charges		122			71
Deferred taxes on earnings		(60	)		5
Other, net		37			7
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(115	)		(552	)
Inventory		279			(631	)
Accounts payable		(1,302	)		1,104
Net investment in leases from integrated financing		(50	)		(19	)
Taxes on earnings		(133	)		(177	)
Restructuring and other		(75	)		(57	)
Other assets and liabilities		584			(80	)
Net cash provided by operating activities		38			581
Cash flows from investing activities:
Investment in property, plant, equipment and purchased intangible		(183	)		(119	)
Purchases of available-for-sale securities and other investments		(3	)		—
Maturities and sales of available-for-sale securities and other investments		9			—
Collateral (posted) returned for derivative instruments		(540	)		70
Payment made in connection with business acquisitions, net of cash acquired		(116	)		—
Net cash used in investing activities		(833	)		(49	)
Cash flows from financing activities:
Proceeds from short-term borrowings with original maturities less than 90 days, net		—			(100	)
Proceeds from debt, net of issuance costs		1,076			94
Payment of debt		(52	)		(53	)
Stock-based award activities and others		(26	)		(4	)
Repurchase of common stock		(100	)		(100	)
Cash dividends paid		(273	)		(269	)
Settlement of cash flow hedges		6			—
Net cash provided by (used in) financing activities		631			(432	)
(Decrease) increase in cash, cash equivalents and restricted cash		(164	)		100
Cash, cash equivalents and restricted cash at beginning of period		2,894			2,417
Cash, cash equivalents and restricted cash at end of period	$	2,730		$	2,517

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)

	Six months ended
	April 30, 2025			April 30, 2024
Cash flows from operating activities:
Net earnings	$	971		$	1,229
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		402			414
Stock-based compensation expense		332			271
Restructuring and other charges		192			134
Deferred taxes on earnings		(83	)		—
Other, net		72			(13	)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		851			(106	)
Inventory		(472	)		(678	)
Accounts payable		(1,699	)		360
Net investment in leases from integrated financing		(48	)		(81	)
Taxes on earnings		(121	)		(128	)
Restructuring and other		(149	)		(144	)
Other assets and liabilities		164			(556	)
Net cash provided by operating activities		412			702
Cash flows from investing activities:
Investment in property, plant, equipment and purchased intangible		(485	)		(277	)
Purchases of available-for-sale securities and other investments		(6	)		—
Maturities and sales of available-for-sale securities and other investments		14			—
Collateral posted for derivative instruments		(540	)		—
Payment made in connection with business acquisitions, net of cash acquired		(116	)		—
Net cash used in investing activities		(1,133	)		(277	)
Cash flows from financing activities:
Proceeds from debt, net of issuance costs		1,158			186
Payment of debt		(102	)		(102	)
Stock-based award activities and others		(118	)		(80	)
Repurchase of common stock		(200	)		(600	)
Cash dividends paid		(546	)		(544	)
Settlement of cash flow hedges		6			—
Net cash provided by (used in) financing activities		198			(1,140	)
Decrease in cash, cash equivalents and restricted cash		(523	)		(715	)
Cash, cash equivalents and restricted cash at beginning of period		3,253			3,232
Cash, cash equivalents and restricted cash at end of period	$	2,730		$	2,517

HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions)

	Three months ended									Change (%)
	April 30, 2025			January 31, 2025			April 30, 2024			Q/Q		Y/Y
Net revenue:
Commercial PS	$	6,786		$	6,645		$	6,242		2	%	9	%
Consumer PS		2,238			2,579			2,184		(13	)%	2	%
Personal Systems		9,024			9,224			8,426		(2	)%	7	%
Supplies		2,725			2,826			2,864		(4	)%	(5	)%
Commercial Printing		1,167			1,144			1,205		2	%	(3	)%
Consumer Printing		289			299			299		(3	)%	(3	)%
Printing		4,181			4,269			4,368		(2	)%	(4	)%
Corporate Investments^(a)		16			11			5		NM		NM
Total segment net revenue		13,221			13,504			12,799		(2	)%	3	%
Other^(a)		(1	)		—			1		NM		NM
Total net revenue	$	13,220		$	13,504		$	12,800		(2	)%	3	%

Earnings before taxes:
Personal Systems^(b)	$	409		$	507		$	508
Printing		814			810			829
Corporate Investments		(37	)		(27	)		(30	)
Total segment earnings from operations		1,186			1,290			1,307
Corporate and unallocated cost and other		(85	)		(114	)		(88	)
Stock-based compensation expense		(140	)		(192	)		(94	)
Restructuring and other charges		(122	)		(70	)		(71	)
Acquisition and divestiture charges		(17	)		(6	)		(22	)
Amortization of intangible assets		(65	)		(63	)		(80	)
Certain litigation charges^(b)		(103	)		—			—
Interest and other, net		(148	)		(141	)		(155	)
Total earnings before taxes	$	506		$	704		$	797

^{(a) “NM” represents not meaningful.}
^{(b) HP has reclassified certain litigation charges arising from SEP litigations from Personal Systems to Corporate.}

HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions)

	Six months ended						Change (%)
	April 30, 2025			April 30, 2024			Y/Y
Net revenue:
Commercial PS	$	13,431		$	12,287		9	%
Consumer PS		4,817			4,948		(3	)%
Personal Systems		18,248			17,235		6	%
Supplies		5,551			5,727		(3	)%
Commercial Printing		2,311			2,432		(5	)%
Consumer Printing		588			584		1	%
Printing		8,450			8,743		(3	)%
Corporate Investments^(a)		27			7		NM
Total segment net revenue		26,725			25,985		3	%
Other^(a)		(1	)		—		NM
Total net revenue	$	26,724		$	25,985		3	%

Earnings before taxes:
Personal Systems^(b)	$	916		$	1,045
Printing		1,624			1,701
Corporate Investments		(64	)		(67	)
Total segment earnings from operations		2,476			2,679
Corporate and unallocated cost and other		(199	)		(177	)
Stock-based compensation expense		(332	)		(271	)
Restructuring and other charges		(192	)		(134	)
Acquisition and divestiture charges		(23	)		(49	)
Amortization of intangible assets		(128	)		(161	)
Certain litigation charges^(b)		(103	)		—
Interest and other, net		(289	)		(297	)
Total earnings before taxes	$	1,210		$	1,590

^{(a) “NM” represents not meaningful.}
^{(b) HP has reclassified certain litigation charges arising from SEP litigations from Personal Systems to Corporate.}

HP INC. AND SUBSIDIARIES SEGMENT OPERATING MARGIN SUMMARY (Unaudited)

	Three months ended						Change (pts)
	April 30, 2025		January 31, 2025		April 30, 2024		Q/Q		Y/Y
Segment operating margin:
Personal Systems^(a)	4.5	%	5.5	%	6.0	%	(1.0	)pts	(1.5	)pts
Printing	19.5	%	19.0	%	19.0	%	0.5	pts	0.5	pts
Corporate Investments^(c)	NM		NM		NM		NM		NM
Total segment	9.0	%	9.6	%	10.2	%	(0.6	)pts	(1.2	)pts

	Six months ended				Change (pts)
	April 30, 2025		April 30, 2024		Y/Y
Segment operating margin:
Personal Systems^(b)	5.0	%	6.1	%	(1.1	)pts
Printing	19.2	%	19.5	%	(0.3	)pts
Corporate Investments^(c)	NM		NM		NM
Total segment	9.3	%	10.3	%	(1.0	)pts

^{(a) HP has reclassified certain litigation charges arising from SEP litigations from Personal Systems to Corporate. For the third and fourth quarters of fiscal year 2024, the SEP litigation expenses were $18 million and $40 million, respectively. Consequently, the revised Segment operating margin for Personal Systems for the third and fourth quarters of fiscal year 2024 are 6.6% and 6.2%, respectively and the revised Total segment operating margin for the third and fourth quarters of fiscal year 2024 are 9.6% and 10.2%, respectively.}
^{(b) HP has reclassified certain litigation charges arising from SEP litigations from Personal Systems to Corporate. For the nine months ended fiscal year 2024 and fiscal year 2024, the SEP litigation expenses were $18 million and $58 million, respectively. Consequently, the revised Segment operating margin for the nine months ended fiscal year 2024 and fiscal year 2024 are 6.2%, respectively and the revised Total segment operating margin for the nine months ended fiscal year 2024 and fiscal year 2024 are 10.1%, respectively.}
^{(c) “NM” represents not meaningful.}

HP INC. AND SUBSIDIARIES CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)

	Three months ended
	April 30, 2025		January 31, 2025		April 30, 2024
Numerator:
GAAP net earnings	$	406	$	565	$	607
Non-GAAP net earnings	$	678	$	704	$	812

Denominator:
Weighted-average shares used to compute basic net earnings per share		950		948		984
Dilutive effect of employee stock plans^(a)		6		9		6
Weighted-average shares used to compute diluted net earnings per share		956		957		990

GAAP diluted net earnings per share	$	0.42	$	0.59	$	0.61
Non-GAAP diluted net earnings per share	$	0.71	$	0.74	$	0.82

^{(a) Includes any dilutive effect of restricted stock units, stock options and performance-based awards.}

HP INC. AND SUBSIDIARIES CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)
	Six months ended
	April 30, 2025		April 30, 2024
Numerator:
GAAP net earnings	$	971	$	1,229
Non-GAAP net earnings	$	1,382	$	1,620

Denominator:
Weighted-average shares used to compute basic net earnings per share		949		990
Dilutive effect of employee stock plans^(a)		7		6
Weighted-average shares used to compute diluted net earnings per share		956		996

GAAP diluted net earnings per share	$	1.02	$	1.23
Non-GAAP diluted net earnings per share	$	1.45	$	1.63

^{(a) Includes any dilutive effect of restricted stock units, stock options and performance-based awards.}

Use of non-GAAP financial measures

To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt). HP also provides forecasts of non-GAAP diluted net EPS and free cash flow.

These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables above or elsewhere in the materials accompanying this news release.

Use and economic substance of non-GAAP financial measures

Net revenue on a constant currency basis excludes the effect of foreign currency exchange fluctuations calculated by translating current period revenues using monthly exchange rates from the comparative period and excluding any hedging impact recognized in the current period. Non-GAAP operating margin is defined to exclude the effects of any amounts relating to restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets and certain litigation charges. Non-GAAP net earnings and non-GAAP diluted net EPS consist of net earnings or diluted net EPS excluding those same charges, non-operating retirement related (credits)/charges, debt extinguishment costs (benefit), tax adjustments and the amount of additional taxes or tax benefits associated with each non-GAAP item.

HP’s management uses these non-GAAP financial measures for purposes of evaluating HP’s historical and prospective financial performance, as well as HP’s performance relative to its competitors. HP’s management also uses these non-GAAP measures to further its own understanding of HP’s segment operating performance. HP believes that excluding the items mentioned above for these non-GAAP financial measures allows HP’s management to better understand HP’s consolidated financial performance in relation to the operating results of HP’s segments, as HP’s management does not believe that the excluded items are reflective of ongoing operating results. More specifically, HP’s management excludes each of those items mentioned above for the following reasons:

Restructuring and other charges are (i) costs associated with a formal restructuring plan and are primarily related to employee separation from service and early retirement costs and related benefits, costs of real estate consolidation and other non-labor charges; and (ii) other charges, which includes non-recurring costs including those as a result of information technology rationalization efforts and transformation program management and are distinct from ongoing operational costs. HP excludes these restructuring and other charges (and any reversals of charges recorded in prior periods) for purposes of calculating these non-GAAP measures because HP believes that these costs do not reflect expected future operating expenses and excluding such expenses for purposes of calculating these non-GAAP measures is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
HP incurs cost related to its acquisitions and divestitures, which it would not have otherwise incurred as part of its operations. The charges are direct expenses such as third-party professional and legal fees, integration and divestiture-related costs, as well as non-cash adjustments to the fair value of certain acquired assets such as inventory and certain compensation charges related to cash settlement of restricted stock units and performance-based restricted stock units towards acquisitions. These charges related to acquisitions and divestitures are inconsistent in amount and frequency and are significantly impacted by the timing and nature of HP’s acquisitions or divestitures. HP believes that eliminating such expenses for purposes of calculating these non-GAAP measures is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
HP incurs charges relating to the amortization of intangible assets. Those charges are included in HP’s GAAP earnings, operating margin, net earnings and diluted net EPS. Such charges are significantly impacted by the timing and magnitude of HP’s acquisitions and any related impairment charges. Consequently, HP excludes these charges for purposes of calculating these non-GAAP measures because HP believes doing so is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
HP incurs settlement expenses from backward-looking claims that arise from certain existing or threatened SEP litigation that are distinctive and substantial when compared to other intellectual property litigation that HP incurs in the ordinary course of business. Consequently, HP excludes these SEP litigation expenses for purposes of calculating these non-GAAP measures because HP believes doing so is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
HP incurs debt extinguishment (benefit)/costs includes certain (gain)/loss related to repurchase of certain of its outstanding U.S. dollar global notes or termination of commitments under revolving credit facilities. These (gain)/loss resulting from debt redemption transactions are partially or more than offset by costs such as bond repurchase premiums, bank fees, unpaid accrued interests, etc. HP excludes these (benefit)/costs for the purposes of calculating these non-GAAP measures because HP believes doing so is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
Non-operating retirement-related (credits)/charges includes certain market-related factors such as interest cost, expected return on plan assets, amortized actuarial gains or losses, associated with HP’s defined benefit pension and post-retirement benefit plans. The market-driven retirement-related adjustments are primarily due to the changes in the value of pension plan assets and liabilities which are tied to financial market performance and HP considers these adjustments to be outside the operational performance of the business. Non-operating retirement-related (credits)/charges also include certain plan curtailments, settlements and special termination benefits related to HP’s defined benefit pension and post-retirement benefit plans. HP believes that eliminating such adjustments for purposes of calculating non-GAAP measures is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.
HP recorded tax adjustments including tax expenses and benefits from internal reorganizations, realizability of certain deferred tax assets, various tax rate and regulatory changes, and tax settlements across various jurisdictions. HP excludes these adjustments for the purposes of calculating these non-GAAP measures because HP believes doing so is useful to management and investors in evaluating HP’s current operating performance and comparing operating performance to other periods.

Free cash flow is a non-GAAP measure that is defined as cash flow provided by (used in) operating activities adjusted for net investment in leases from integrated financing and net investments in property, plant, equipment and purchased intangible. Gross cash is a non-GAAP measure that is defined as cash, cash equivalents and restricted cash plus short-term investments and certain long-term investments that may be liquidated within 90 days pursuant to the terms of existing put options or similar rights. HP’s management uses free cash flow and gross cash for the purpose of determining the amount of cash available for investment in HP’s businesses, repurchasing stock and other purposes. HP’s management also uses free cash flow and gross cash to evaluate HP’s historical and prospective liquidity. Because gross cash includes liquid assets that are not included in cash, cash equivalents and restricted cash, HP believes that gross cash provides a helpful assessment of HP’s liquidity. Because free cash flow includes net cash provided by (used in) operating activities adjusted for net investment in leases from integrated financing and net investments in property, plant, equipment and purchased intangible. HP believes that free cash flow provides a useful assessment of HP’s liquidity and capital resources. Net cash (debt) is defined as gross cash less gross debt after adjusting the effect of unamortized premium/discount on debt issuance, debt issuance costs and gains/losses on interest rate swaps.

Key Growth Areas
Key Growth Areas represent HP’s businesses which management expects to collectively grow at a rate faster than HP’s core business with accretive margins in the longer term. HP’s Key Growth Areas are comprised of:

Hybrid Systems: Video conferencing solutions, cameras, headsets, voice, and related software capabilities

Advanced Compute Solutions: Diverse portfolio encompassing high-performance computing, mobile and desktop workstations, retail workstations, retail solutions, and emerging technologies to address complex computational tasks, data-intensive applications, and evolving industry needs.

AI PC: PCs, excluding Workstations, equipped with dedicated hardware components like Neural Processing Units (NPUs), are designed to facilitate and enhance the execution of AI and machine learning tasks.

Workforce Solutions: Managed services (Managed Print Service and Device-as-a-Service), digital services and lifecycle services

Consumer Subscriptions: Instant Ink services, other consumer subscriptions and consumer digital services

Industrial Graphics: Large Format Industrial, Page Wide Press (PWP), Indigo and Page Wide Industrial packaging solutions and supplies

3D & Personalization: Portfolio of additive manufacturing solutions and supplies including end-to-end solutions such as moulded fiber, footwear and orthotics

Material limitations associated with use of non-GAAP financial measures
These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of HP’s results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:

Items such as amortization of intangible assets, though not directly affecting HP’s cash position, represent the loss in value of intangible assets over time. The expense associated with this change in value is not included in non-GAAP operating margin, non-GAAP net earnings and non-GAAP diluted net EPS, and therefore does not reflect the full economic effect of the change in value of those intangible assets.
Items such as restructuring and other charges, acquisition and divestiture charges, amortization of intangible assets, certain litigation charges are excluded from non-GAAP operating margin. In addition, non-operating retirement-related (credits)/charges, debt extinguishment costs (benefit) and tax adjustments are excluded from non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings and non-GAAP diluted net EPS. These items can have a material impact on the equivalent GAAP earnings measure and cash flows.
HP may not be able to immediately liquidate the short-term and certain long-term investments included in gross cash, which may limit the usefulness of gross cash as a liquidity measure.

Other companies may calculate the non-GAAP financial measures differently than HP, limiting the usefulness of those measures for comparative purposes.

Compensation for limitations associated with use of non-GAAP financial measures

HP accounts for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only supplementally. HP also provides reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and HP encourages investors to review those reconciliations carefully.

Usefulness of non-GAAP financial measures to investors

HP believes that providing net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP other income and expenses, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt) to investors in addition to the related GAAP financial measures provides investors with greater insight to the information used by HP’s management in its financial and operational decision making and allows investors to see HP’s results “through the eyes” of management. HP further believes that providing this information better enables HP’s investors to understand HP’s operating performance and financial condition and to evaluate the efficacy of the methodology and information used by HP’s management to evaluate and measure such performance and financial condition. Disclosure of these non-GAAP financial measures also facilitates comparisons of HP’s operating performance with the performance of other companies in HP’s industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.

Editorial contacts

HP Inc. Media Relations
MediaRelations@hp.com

HP Inc. Investor Relations
InvestorRelations@hp.com

The MIL Network –

May 29, 2025

MIL-OSI: NVIDIA Announces Financial Results for First Quarter Fiscal 2026

Source: GlobeNewswire (MIL-OSI)

Revenue of $44.1 billion, up 12% from Q4 and up 69% from a year ago
Data Center revenue of $39.1 billion, up 10% from Q4 and up 73% from a year ago

SANTA CLARA, Calif., May 28, 2025 (GLOBE NEWSWIRE) — NVIDIA (NASDAQ: NVDA) today reported revenue for the first quarter ended April 27, 2025, of $44.1 billion, up 12% from the previous quarter and up 69% from a year ago.

On April 9, 2025, NVIDIA was informed by the U.S. government that a license is required for exports of its H20 products into the China market. As a result of these new requirements, NVIDIA incurred a $4.5 billion charge in the first quarter of fiscal 2026 associated with H20 excess inventory and purchase obligations as the demand for H20 diminished. Sales of H20 products were $4.6 billion for the first quarter of fiscal 2026 prior to the new export licensing requirements. NVIDIA was unable to ship an additional $2.5 billion of H20 revenue in the first quarter.

For the quarter, GAAP and non-GAAP gross margins were 60.5% and 61.0%, respectively. Excluding the $4.5 billion charge, first quarter non-GAAP gross margin would have been 71.3%.

For the quarter, GAAP and non-GAAP earnings per diluted share were $0.76 and $0.81, respectively. Excluding the $4.5 billion charge and related tax impact, first quarter non-GAAP diluted earnings per share would have been $0.96.

“Our breakthrough Blackwell NVL72 AI supercomputer — a ‘thinking machine’ designed for reasoning— is now in full-scale production across system makers and cloud service providers,” said Jensen Huang, founder and CEO of NVIDIA. “Global demand for NVIDIA’s AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and NVIDIA stands at the center of this profound transformation.”

NVIDIA will pay its next quarterly cash dividend of $0.01 per share on July 3, 2025, to all shareholders of record on June 11, 2025.

Q1 Fiscal 2026 Summary

GAAP
($ in millions, except earnings per share)		Q1 FY26		Q4 FY25		Q1 FY25	Q/Q	Y/Y
Revenue	$44,062		$39,331		$26,044		12%	69%
Gross margin		60.5%		73.0%		78.4%	(12.5) pts	(17.9) pts
Operating expenses	$5,030		$4,689		$3,497		7%	44%
Operating income	$21,638		$24,034		$16,909		(10)%	28%
Net income	$18,775		$22,091		$14,881		(15)%	26%
Diluted earnings per share*	$0.76		$0.89		$0.60		(15)%	27%

Non-GAAP
($ in millions, except earnings per share)		Q1 FY26		Q4 FY25		Q1 FY25	Q/Q	Y/Y
Revenue	$44,062		$39,331		$26,044		12%	69%
Gross margin		61.0%		73.5%		78.9%	(12.5) pts	(17.9) pts
Gross margin excluding H20 charge		71.3%
Operating expenses	$3,583		$3,378		$2,501		6%	43%
Operating income	$23,275		$25,516		$18,059		(9)%	29%
Net income	$19,894		$22,066		$15,238		(10)%	31%
Diluted earnings per share*	$0.81		$0.89		$0.61		(9)%	33%
Diluted earnings per share excluding H20 charge and related tax impact	$0.96


*All per share amounts presented herein have been retroactively adjusted to reflect NVIDIA’s ten-for-one stock split, which was effective June 7, 2024.

Outlook
NVIDIA’s outlook for the second quarter of fiscal 2026 is as follows:

Revenue is expected to be $45.0 billion, plus or minus 2%. This outlook reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations.
GAAP and non-GAAP gross margins are expected to be 71.8% and 72.0%, respectively, plus or minus 50 basis points. The company is continuing to work toward achieving gross margins in the mid-70% range late this year.
GAAP and non-GAAP operating expenses are expected to be approximately $5.7 billion and $4.0 billion, respectively. Full year fiscal 2026 operating expense growth is expected to be in the mid-30% range.
GAAP and non-GAAP other income and expense are expected to be an income of approximately $450 million, excluding gains and losses from non-marketable and publicly-held equity securities.
GAAP and non-GAAP tax rates are expected to be 16.5%, plus or minus 1%, excluding any discrete items.

Highlights
NVIDIA achieved progress since its previous earnings announcement in these areas:

Data Center

First-quarter revenue was $39.1 billion, up 10% from the previous quarter and up 73% from a year ago.
Announced that NVIDIA is building factories in the U.S. and working with its partners to produce NVIDIA AI supercomputers in the U.S.
Introduced NVIDIA Blackwell Ultra and NVIDIA Dynamo for accelerating and scaling AI reasoning models.
Announced partnership with HUMAIN to build AI factories in the Kingdom of Saudi Arabia to drive the next wave of artificial intelligence development.
Unveiled Stargate UAE, a next-generation AI infrastructure cluster in Abu Dhabi, United Arab Emirates, alongside strategic partners G42, OpenAI, Oracle, SoftBank Group and Cisco.
Revealed plans to work with Foxconn and the Taiwan government to build an AI factory supercomputer.
Announced NVIDIA is speeding the IT infrastructure transition to enterprise AI factories with NVIDIA RTX PRO™ Servers.
Unveiled NVLink Fusion™ for industry to build semi-custom AI infrastructure with NVIDIA’s partner ecosystem.
Announced NVIDIA Spectrum-X™ and NVIDIA Quantum-X silicon photonics networking switches to scale AI factories to millions of GPUs.
Introduced the NVIDIA DGX SuperPOD™ built with NVIDIA Blackwell Ultra GPUs to provide AI factory supercomputing for agentic AI reasoning.
Announced joint initiatives with Alphabet and Google to advance agentic AI solutions, robotics and drug discovery.
Announced integration between NVIDIA accelerated computing and inference software with Oracle’s AI infrastructure.
Revealed that NVIDIA Blackwell cloud instances are now available on AWS, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure.
Announced that the NVIDIA Blackwell platform set records in the latest MLPerf inference results, delivering up to 30x higher throughput.
Announced NVIDIA DGX Cloud Lepton™ to connect developers to NVIDIA’s global compute ecosystem.
Launched the open Llama Nemotron family of models with reasoning capabilities, providing a foundation for creating advanced AI agents.
Introduced the NVIDIA AI Data Platform, a customizable reference design for AI inference workloads.
Announced the opening of a research center in Japan that hosts the world’s largest quantum research supercomputer.

Gaming and AI PC

First-quarter Gaming revenue was a record $3.8 billion, up 48% from the previous quarter and up 42% from a year ago.
Announced the NVIDIA GeForce RTX™ 5070 and RTX 5060, bringing Blackwell graphics to gamers at prices starting from $299 for desktops and $1,099 for laptops.
Unveiled NVIDIA DLSS 4 is now available in over 125 games, including Black Myth Wukong, DOOM: The Dark Ages, Indiana Jones and the Great Circle, Marvel Rivals and Star Wars Outlaws.
Announced the Nintendo Switch 2 is powered by an NVIDIA processor and AI-powered DLSS, delivering up to 4K gaming.
Launched the NVIDIA RTX Remix modding platform, attracting over 2 million gamers, alongside the release of the Half-Life 2 RTX demo.

Professional Visualization

First-quarter revenue was $509 million, flat with the previous quarter and up 19% from a year ago.
Announced the NVIDIA RTX PRO™ Blackwell series for workstations and servers.
Unveiled NVIDIA DGX Spark and DGX Station™ personal AI supercomputers powered by the NVIDIA Grace Blackwell platform.
Announced that leading industrial software and service providers Accenture, Ansys, Databricks, SAP, Schneider Electric with ETAP, and Siemens are integrating the NVIDIA Omniverse™ platform into their solutions to accelerate industrial digitalization with physical AI.

Automotive and Robotics

First-quarter Automotive revenue was $567 million, down 1% from the previous quarter and up 72% from a year ago.
Announced a collaboration with General Motors on next-generation vehicles, factories and robots using NVIDIA Omniverse, NVIDIA Cosmos™ and NVIDIA DRIVE AGX™.
Launched NVIDIA Halos, a unified safety system combining NVIDIA’s automotive hardware, software and advanced AV safety AI research.
Announced NVIDIA Isaac™ GR00T N1, the world’s first open humanoid robot foundation model, followed by NVIDIA Isaac™ GR00T N1.5; NVIDIA Isaac GR00T-Dreams, a blueprint for generating synthetic motion data; and NVIDIA Blackwell systems to accelerate humanoid robot development.
Released new NVIDIA Cosmos™ world foundation models and physical AI data tools.

CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com.

Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2026 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its second quarter of fiscal 2026.

Non-GAAP Measures
To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, other, gains/losses from non-marketable and publicly-held equity securities, net, interest expense related to amortization of debt discount, H20 excess inventory and purchase obligation charges, and the associated tax impact of these items where applicable. The inclusion of H20 excess inventory and purchase obligation charges in the reconciliations to adjust the related GAAP financial measures was a result of the U.S. government informing NVIDIA on April 9, 2025 that it requires a license for export to China of H20 products. H20 products were designed primarily for the China market. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases related to property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.


NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)


			Three Months Ended
			April 27,			April 28,
				2025			2024

Revenue			$	44,062		$	26,044
Cost of revenue				17,394			5,638
Gross profit				26,668			20,406

Operating expenses
	Research and development			3,989			2,720
	Sales, general and administrative			1,041			777
		Total operating expenses		5,030			3,497

Operating income				21,638			16,909
	Interest income			515			359
	Interest expense			(63	)		(64	)
	Other income (expense), net			(180	)		75
		Total other income (expense), net		272			370

Income before income tax				21,910			17,279
Income tax expense				3,135			2,398
Net income			$	18,775		$	14,881

Net income per share:
	Basic		$	0.77		$	0.60
	Diluted		$	0.76		$	0.60

Weighted average shares used in per share computation:
	Basic			24,441			24,620
	Diluted			24,611			24,890

NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)


			April 27,		January 26,
				2025		2025
ASSETS

Current assets:
	Cash, cash equivalents and marketable securities		$	53,691	$	43,210
	Accounts receivable, net			22,132		23,065
	Inventories			11,333		10,080
	Prepaid expenses and other current assets			2,779		3,771
		Total current assets		89,935		80,126

Property and equipment, net				7,136		6,283
Operating lease assets				1,810		1,793
Goodwill				5,498		5,188
Intangible assets, net				769		807
Deferred income tax assets				13,318		10,979
Other assets				6,788		6,425
		Total assets	$	125,254	$	111,601

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
	Accounts payable		$	7,331	$	6,310
	Accrued and other current liabilities			19,211		11,737
		Total current liabilities		26,542		18,047

Long-term debt				8,464		8,463
Long-term operating lease liabilities				1,521		1,519
Other long-term liabilities				4,884		4,245
		Total liabilities		41,411		32,274

Shareholders’ equity				83,843		79,327
		Total liabilities and shareholders’ equity	$	125,254	$	111,601

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)


		Three Months Ended
		April 27,			April 28,
			2025			2024

Cash flows from operating activities:
Net income		$	18,775		$	14,881
Adjustments to reconcile net income to net cash
provided by operating activities:
	Stock-based compensation expense		1,474			1,011
	Depreciation and amortization		611			410
	(Gains) losses on non-marketable equity securities and publicly-held equity securities, net		175			(69	)
	Deferred income taxes		(2,177	)		(1,577	)
	Other		(98	)		(145	)
Changes in operating assets and liabilities, net of acquisitions:
	Accounts receivable		933			(2,366	)
	Inventories		(1,258	)		(577	)
	Prepaid expenses and other assets		560			(726	)
	Accounts payable		941			(22	)
	Accrued and other current liabilities		7,128			4,202
	Other long-term liabilities		350			323
Net cash provided by operating activities			27,414			15,345

Cash flows from investing activities:
	Proceeds from maturities of marketable securities		3,122			4,004
	Proceeds from sales of marketable securities		467			149
	Proceeds from sales of non-marketable equity securities		–			55
	Purchases of marketable securities		(6,546	)		(9,303	)
	Purchase related to property and equipment and intangible assets		(1,227	)		(369	)
	Purchases of non-marketable equity securities		(649	)		(190	)
	Acquisitions, net of cash acquired		(383	)		(39	)
Net cash used in investing activities			(5,216	)		(5,693	)

Cash flows from financing activities:
	Proceeds related to employee stock plans		370			285
	Payments related to repurchases of common stock		(14,095	)		(7,740	)
	Payments related to employee stock plan taxes		(1,532	)		(1,752	)
	Dividends paid		(244	)		(98	)
	Principal payments on property and equipment and intangible assets		(52	)		(40	)
Net cash used in financing activities			(15,553	)		(9,345	)

Change in cash and cash equivalents			6,645			307
Cash and cash equivalents at beginning of period			8,589			7,280
Cash and cash equivalents at end of period		$	15,234		$	7,587

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)

		Three Months Ended
		April 27,			January 26,			April 28,
			2025			2025			2024

GAAP cost of revenue		$	17,394		$	10,608		$	5,638
GAAP gross profit		$	26,668		$	28,723		$	20,406
	GAAP gross margin		60.5%			73.0%			78.4%
	Acquisition-related and other costs (A)		123			118			119
	Stock-based compensation expense (B)		64			53			36
	Other		3			–			(1	)
Non-GAAP cost of revenue		$	17,204		$	10,437		$	5,484
Non-GAAP gross profit		$	26,858		$	28,894		$	20,560
	Non-GAAP gross margin		61.0%			73.5%			78.9%

GAAP operating expenses		$	5,030		$	4,689		$	3,497
	Stock-based compensation expense (B)		(1,410	)		(1,268	)		(975	)
	Acquisition-related and other costs (A)		(37	)		(43	)		(21	)
Non-GAAP operating expenses		$	3,583		$	3,378		$	2,501

GAAP operating income		$	21,638		$	24,034		$	16,909
	Total impact of non-GAAP adjustments to operating income		1,637			1,482			1,150
Non-GAAP operating income		$	23,275		$	25,516		$	18,059

GAAP total other income (expense), net		$	272		$	1,183		$	370
	(Gains) losses from non-marketable equity securities and publicly-held equity securities, net		175			(727	)		(69	)
	Interest expense related to amortization of debt discount		1			1			1
Non-GAAP total other income (expense), net		$	448		$	457		$	302

GAAP net income		$	18,775		$	22,091		$	14,881
	Total pre-tax impact of non-GAAP adjustments		1,813			756			1,082
	Income tax impact of non-GAAP adjustments (C)		(694	)		(781	)		(725	)
Non-GAAP net income		$	19,894		$	22,066		$	15,238

Diluted net income per share (D)
	GAAP	$	0.76		$	0.89		$	0.60
	Non-GAAP	$	0.81		$	0.89		$	0.61

Weighted average shares used in diluted net income per share computation (D)			24,611			24,706			24,890

GAAP net cash provided by operating activities		$	27,414		$	16,628		$	15,345
	Purchases related to property and equipment and intangible assets		(1,227	)		(1,077	)		(369	)
	Principal payments on property and equipment and intangible assets		(52	)		(32	)		(40	)
Free cash flow		$	26,135		$	15,519		$	14,936




(A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs, and certain compensation charges and are included in the following line items:
		Three Months Ended
		April 27,			January 26,			April 28,
			2025			2025			2024
	Cost of revenue	$	123		$	118		$	119
	Research and development	$	28		$	27		$	12
	Sales, general and administrative	$	9		$	16		$	8

(B) Stock-based compensation consists of the following:
		Three Months Ended
		April 27,			January 26,			April 28,
			2025			2025			2024
	Cost of revenue	$	64		$	53		$	36
	Research and development	$	1,063		$	955		$	727
	Sales, general and administrative	$	347		$	313		$	248

(C) Income tax impact of non-GAAP adjustments, including the recognition of excess tax benefits or deficiencies related to stock-based compensation under GAAP accounting standard (ASU 2016-09).

(D) Reflects a ten-for-one stock split on June 7, 2024.





								Three Months
								Ended
								April 27,
									2025
								($ in millions)
GAAP gross profit								$	26,668
GAAP gross margin									60.5%
	Stock-based compensation expense, acquisition-related costs, and other costs								190
	H20 excess inventory and purchase obligation charges								4,538
Non-GAAP gross profit (as adjusted to exclude H20 excess inventory and purchase obligation charges)								$	31,396
Non-GAAP gross margin (as adjusted to exclude H20 excess inventory and purchase obligation charges)									71.3%


GAAP net income								$	18,775
	Total pre-tax impact of non-GAAP adjustments and H20 excess inventory and purchase obligation charges								6,351
	Income tax impact of non-GAAP adjustments and H20 excess inventory and purchase obligation charges								(1,491	)
Non-GAAP net income (as adjusted to exclude H20 excess inventory and purchase obligation charges)								$	23,635

Diluted net income per share
	GAAP							$	0.76
	Non-GAAP (as adjusted to exclude H20 excess inventory and purchase obligation charges)							$	0.96

Weighted average shares used in diluted net income per share computation									24,611

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK


		Q2 FY2026 Outlook
		($ in millions)

GAAP gross margin			71.8%
	Impact of stock-based compensation expense, acquisition-related costs, and other costs		0.2%
Non-GAAP gross margin			72.0%

GAAP operating expenses		$	5,700
	Stock-based compensation expense, acquisition-related costs, and other costs		(1,700	)
Non-GAAP operating expenses		$	4,000

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in accelerated computing.

For further information, contact:

Certain statements in this press release including, but not limited to, statements as to: the impact of H20 export licensing requirements; global demand for NVIDIA’s AI infrastructure; the demand for AI computing accelerating; countries recognizing AI as essential infrastructure and NVIDIA’s role; AI factories fueling a new industrial revolution and their impact; expectations with respect to growth, performance and benefits of NVIDIA’s products, services and technologies, including Blackwell, and related trends and drivers; expectations with respect to supply and demand for NVIDIA’s products, services and technologies, including Blackwell, and related matters including inventory, production and distribution; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners; expectations with respect to technology developments and related trends and drivers; future NVIDIA cash dividends or other returns to stockholders; NVIDIA’s financial and business outlook for the second quarter of fiscal 2026 and beyond; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing product and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2025 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, DGX Cloud Lepton, DGX Station, GeForce RTX, NVIDIA Cosmos, NVIDIA DGX SuperPOD, NVIDIA Isaac, NVIDIA Omniverse, NVIDIA RTX PRO, NVIDIA Spectrum-X, and NVLink Fusion are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability and specifications are subject to change without notice.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aabe86db-ce89-4434-b83c-495082979801

The MIL Network –

May 29, 2025

MIL-OSI: Nutanix Reports Third Quarter Fiscal 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Delivers Outperformance Across All Guided Metrics

Reports 18% YoY ARR Growth and Strong Free Cash Flow

SAN JOSE, Calif., May 28, 2025 (GLOBE NEWSWIRE) — Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its third quarter ended April 30, 2025.

“We delivered solid third quarter results, above the high end of our guided ranges, driven by the strength of the Nutanix Cloud Platform and demand from businesses looking for a trusted long-term partner,” said Rajiv Ramaswami, President and CEO of Nutanix. “Our recent announcements around support for external storage, modern applications, and generative AI reflect our continued focus on driving innovation and broadening our partnerships to further enhance the value proposition of the Nutanix Cloud Platform.”

“Our third quarter results included 18% year-over-year ARR growth and strong year-to-date free cash flow generation,” said Rukmini Sivaraman, CFO of Nutanix. “We remain focused on delivering sustainable, profitable growth.”

Third Quarter Fiscal 2025 Financial Summary

	Q3 FY’25	Q3 FY’24	Y/Y Change
Annual Recurring Revenue (ARR)¹	$2.14 billion	$1.82 billion	18%
Average Contract Duration²	3.1 years	3.0 years	0.1 year
Revenue	$639.0 million	$524.6 million	22%
GAAP Gross Margin	87.0%	84.8%	220 bps
Non-GAAP Gross Margin	88.2%	86.5%	170 bps
GAAP Operating Expenses	$507.3 million	$456.5 million	11%
Non-GAAP Operating Expenses	$426.5 million	$380.4 million	12%
GAAP Operating Income (Loss)	$48.6 million	$(11.6) million	$60.2 million
Non-GAAP Operating Income	$137.1 million	$73.3 million	$63.8 million
GAAP Operating Margin	7.6%	(2.2)%	980 bps
Non-GAAP Operating Margin	21.5%	14.0%	750 bps
Net Cash Provided by Operating Activities	$218.5 million	$96.4 million	$122.1 million
Free Cash Flow	$203.4 million	$78.3 million	$125.1 million

Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.

Recent Company Highlights

Nutanix held its annual .NEXT conference in Washington, D.C. on May 7 – 9, and made the following announcements at the event:

Fourth Quarter Fiscal 2025 Outlook

Revenue	$635 – $645 million
Non-GAAP Operating Margin	15.5% to 16.5%
Weighted Average Shares Outstanding (Diluted)³	Approximately 297 million

Fiscal 2025 Outlook

Revenue	$2.52 – $2.53 billion
Non-GAAP Operating Margin	~20.5%
Free Cash Flow	$700 – $730 million

Supplementary materials to this press release, including our third quarter fiscal 2025 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.

Webcast and Conference Call Information

Nutanix executives will discuss the Company’s third quarter fiscal 2025 financial results on a conference call today at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.

Footnotes

¹Annual Recurring Revenue, or ARR, for any given period, is defined as the sum of ACV for all subscription contracts in effect as of the end of a specific period. For the purposes of this calculation, we assume that the contract term begins on the date a contract is booked, unless the terms of such contract prevent us from fulfilling our obligations until a later period, and irrespective of the periods in which we would recognize revenue for such contract. Excludes all life-of-device contracts. ACV is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract. Excludes amounts related to professional services and hardware.

²Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts, as well as our limited number of life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.

³Weighted average share count used in computing diluted non-GAAP net income per share.

Non-GAAP Financial Measures and Other Key Performance Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation and the related income tax impact, costs associated with our acquisitions (such as amortization of acquired intangible assets, income tax-related impact, and other acquisition-related costs), restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization and conversion of the debt discount and issuance costs related to debt, interest expense related to debt, inducement expense related to the repurchase of convertible senior notes, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after capital expenditures, and we define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the topline growth of our subscription business because it takes into account variability in term lengths. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income (loss), operating margin, and net cash provided by (used in) operating activities, respectively. There is no GAAP measure that is comparable to ARR or Average Contract Duration, so we have not reconciled the ARR or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures” and “Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our fourth quarter fiscal 2025 outlook and/or our fiscal 2025 outlook: non-GAAP operating margin and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.

Forward-Looking Statements

This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business momentum and prospects, including the strength of our platform, demand from businesses looking for a trusted long-term partner, and our continued focus on driving innovation and broadening our partnerships; our focus on delivering sustainable, profitable growth; our fourth quarter fiscal 2025 outlook; and our fiscal 2025 outlook.

These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; any failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, our business plans, strategies, initiatives, vision, objectives, momentum, prospects and outlook; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions, products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 19, 2024 and our subsequent Quarterly Reports on Form 10-Q filed with the SEC. Additional information will be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2025, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

About Nutanix

Nutanix is a global leader in cloud software, offering organizations a single platform for running applications and managing data, anywhere. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media @nutanix.

© 2025 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix.

Investor Contact:
Richard Valera
ir@nutanix.com

Media Contact:
Jennifer Massaro
pr@nutanix.com


NUTANIX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

	As of
	July 31, 2024			April 30, 2025
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	655,270		$	872,599
Short-term investments		339,072			1,009,870
Accounts receivable, net		229,796			270,232
Deferred commissions—current		159,849			147,361
Prepaid expenses and other current assets		97,307			110,981
Total current assets		1,481,294			2,411,043
Property and equipment, net		136,180			143,711
Operating lease right-of-use assets		109,133			142,200
Deferred commissions—non-current		198,962			180,111
Intangible assets, net		5,153			2,809
Goodwill		185,235			185,235
Other assets—non-current		27,961			31,521
Total assets	$	2,143,918		$	3,096,630
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	45,066		$	49,596
Accrued compensation and benefits		195,602			175,814
Accrued expenses and other current liabilities		24,967			22,463
Deferred revenue—current		954,543			1,008,731
Operating lease liabilities—current		24,163			24,951
Total current liabilities		1,244,341			1,281,555
Deferred revenue—non-current		918,163			1,020,467
Operating lease liabilities—non-current		90,359			120,351
Convertible senior notes, net		570,073			1,342,601
Other liabilities—non-current		49,130			43,090
Total liabilities		2,872,066			3,808,064
Stockholders’ deficit:
Common stock		7			7
Additional paid-in capital		4,118,898			4,179,565
Accumulated other comprehensive loss		146			3,391
Accumulated deficit		(4,847,199	)		(4,894,397	)
Total stockholders’ deficit		(728,148	)		(711,434	)
Total liabilities and stockholders’ deficit	$	2,143,918		$	3,096,630


NUTANIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended April 30,					Nine Months Ended April 30,
	2024			2025		2024			2025
	(in thousands, except per share data)
Revenue:
Product	$	255,465		$	345,479	$	802,047		$	1,001,585
Support, entitlements and other services		269,112			293,504		798,817			883,075
Total revenue		524,577			638,983		1,600,864			1,884,660
Cost of revenue:
Product ⁽¹⁾⁽²⁾		8,469			6,776		28,105			23,969
Support, entitlements and other services ⁽¹⁾		71,150			76,215		215,029			226,980
Total cost of revenue		79,619			82,991		243,134			250,949
Gross profit		444,958			555,992		1,357,730			1,633,711
Operating expenses:
Sales and marketing ⁽¹⁾⁽²⁾		245,901			260,402		717,926			775,185
Research and development ⁽¹⁾		159,220			186,413		471,596			543,157
General and administrative ⁽¹⁾		51,425			60,532		148,457			174,036
Total operating expenses		456,546			507,347		1,337,979			1,492,378
(Loss) income from operations		(11,588	)		48,645		19,751			141,333
Other income (expense), net		659			15,954		(2,520	)		25,172
(Loss) income before provision for income taxes		(10,929	)		64,599		17,231			166,505
Provision for income taxes		4,687			1,236		15,905			16,789
Net (loss) income	$	(15,616	)	$	63,363	$	1,326		$	149,716
Net (loss) income per share attributable to Class A common stockholders, basic	$	(0.06	)	$	0.24	$	0.01		$	0.56
Net (loss) income per share attributable to Class A common stockholders, diluted	$	(0.06	)	$	0.22	$	0.05		$	0.52
Weighted average shares used in computing net (loss) income per share attributable to Class A common stockholders, basic		245,766			267,566		243,688			267,081
Weighted average shares used in computing net (loss) income per share attributable to Class A common stockholders, diluted		245,766			296,804		297,055			292,942

________________
(1) Includes the following stock-based compensation expense:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2025		2024		2025
	(in thousands)
Product cost of revenue	$	1,576	$	401	$	5,201	$	2,425
Support, entitlements and other services cost of revenue		6,391		6,623		20,690		20,768
Sales and marketing		18,901		19,513		61,110		61,558
Research and development		38,719		42,162		117,664		132,489
General and administrative		16,705		15,543		47,594		49,179
Total stock-based compensation expense	$	82,292	$	84,242	$	252,259	$	266,419

________________
(2) Includes the following amortization of intangible assets:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2025		2024		2025
	(in thousands)
Product cost of revenue	$	766	$	546	$	2,626	$	2,080
Sales and marketing		99		89		218		265
Total amortization of intangible assets	$	865	$	635	$	2,844	$	2,345


NUTANIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months Ended April 30,
	2024			2025
	(in thousands)
Cash flows from operating activities:
Net income	$	1,326		$	149,716
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		54,986			54,451
Stock-based compensation		252,259			266,419
Amortization of debt discount and issuance costs		33,738			2,519
Inducement expense from partial repurchase of the 2027 Notes		—			11,347
Operating lease cost, net of accretion		24,009			21,355
Non-cash interest expense		15,143			—
Other		(14,117	)		(4,690	)
Changes in operating assets and liabilities:
Accounts receivable, net		(49,669	)		(14,084	)
Deferred commissions		5,199			31,339
Prepaid expenses and other assets		37,588			(10,589	)
Accounts payable		10,326			3,774
Accrued compensation and benefits		29,660			(10,528	)
Accrued expenses and other liabilities		(83,857	)		(5,601	)
Operating leases, net		(22,394	)		(23,640	)
Deferred revenue		134,037			130,139
Net cash provided by operating activities		428,234			601,927
Cash flows from investing activities:
Maturities of investments		625,519			272,846
Purchases of investments		(740,034	)		(941,406	)
Sales of investments		—			2,011
Payments for acquisitions, net of cash acquired		(4,500	)		—
Purchases of property and equipment		(54,813	)		(59,533	)
Net cash used in investing activities		(173,828	)		(726,082	)
Cash flows from financing activities:
Proceeds from sales of shares through employee equity incentive plans		50,660			68,525
Taxes paid related to net share settlement of equity awards		(111,620	)		(212,919	)
Proceeds from the issuance of convertible notes, net of issuance costs		—			848,010
Payment of third-party debt issuance costs		—			(3,448	)
Partial repurchase of the 2027 Notes		—			(95,453	)
Payment of revolver issuance costs		—			(2,794	)
Repurchases of common stock		(106,131	)		(257,859	)
Payment of finance lease obligations		(2,928	)		(2,943	)
Net cash (used in) provided by financing activities		(170,019	)		341,119
Net increase in cash, cash equivalents and restricted cash	$	84,387		$	216,964
Cash, cash equivalents and restricted cash—beginning of period		515,771			655,662
Cash, cash equivalents and restricted cash—end of period	$	600,158		$	872,626
Restricted cash ⁽¹⁾		2,131			27
Cash and cash equivalents—end of period	$	598,027		$	872,599
Supplemental disclosures of cash flow information:
Cash paid for income taxes	$	20,938		$	25,550
Supplemental disclosures of non-cash investing and financing information:
Purchases of property and equipment included in accounts payable and accrued and other liabilities	$	983		$	1,186
Unpaid taxes related to net share settlement of equity awards included in accrued expenses and other liabilities	$	—		$	2,554

________________
(1) Included within other assets—non-current in the condensed consolidated balance sheets.

Reconciliation of Revenue to Billings (Unaudited)

	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2025		2024		2025
	(in thousands)
Total revenue	$	524,577	$	638,983	$	1,600,864	$	1,884,660
Change in deferred revenue		32,708		8,062		134,037		130,139
Total billings	$	557,285	$	647,045	$	1,734,901	$	2,014,799

Disaggregation of Revenue and Billings (Unaudited)

	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2025		2024		2025
	(in thousands)
Disaggregation of revenue:
Subscription revenue	$	486,620	$	609,663	$	1,498,081	$	1,794,777
Professional services revenue		26,240		28,001		74,083		83,316
Other non-subscription product revenue		11,717		1,319		28,700		6,567
Total revenue	$	524,577	$	638,983	$	1,600,864	$	1,884,660
Disaggregation of billings:
Subscription billings	$	515,920	$	627,249	$	1,617,593	$	1,925,278
Professional services billings		29,648		18,477		88,608		82,954
Other non-subscription product billings		11,717		1,319		28,700		6,567
Total billings	$	557,285	$	647,045	$	1,734,901	$	2,014,799

Subscription revenue — Subscription revenue includes any performance obligation which has a defined term, and is generated from the sales of software entitlement and support subscriptions, subscription software licenses and cloud-based software-as-a-service, or SaaS, offerings.

Ratable — We recognize revenue from software entitlement and support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software entitlement and support subscriptions.
Upfront — Revenue from our subscription software licenses is generally recognized upfront upon transfer of control to the customer, which happens when we make the software available to the customer.

Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed.

Other non-subscription product revenue — Other non-subscription product revenue includes approximately $11.1 million and $26.3 million of non-portable software revenue for the three and nine months ended April 30, 2024, respectively, $0.5 million and $2.9 million of non-portable software revenue for the three and nine months ended April 30, 2025, respectively, $0.6 million and $2.4 million of hardware revenue for the three and nine months ended April 30, 2024, respectively, and $0.8 million and $3.7 million of hardware revenue for the three and nine months ended April 30, 2025, respectively.

Non-portable software revenue — Non-portable software revenue includes sales of our platform when delivered on a configured-to-order appliance by us or one of our OEM partners. The software licenses associated with these sales are typically non-portable and can be used over the life of the appliance on which the software is delivered. Revenue from our non-portable software products is generally recognized upon transfer of control to the customer.
Hardware revenue — In the infrequent transactions where the hardware appliance is purchased directly from Nutanix, we consider ourselves to be the principal in the transaction and we record revenue and costs of goods sold on a gross basis. We consider the amount allocated to hardware revenue to be equivalent to the cost of the hardware procured. Hardware revenue is generally recognized upon transfer of control to the customer.


Annual Recurring Revenue (Unaudited)

	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2025		2024		2025
	(in thousands)
Annual Recurring Revenue (ARR)	$	1,820,207	$	2,142,969	$	1,820,207	$	2,142,969


Reconciliation of GAAP to Non-GAAP Profit Measures (Unaudited)

	GAAP			Non-GAAP Adjustments																	Non-GAAP
	Three Months Ended April 30, 2025			(1)			(2)			(3)			(4)			(5)		(6)			Three Months Ended April 30, 2025
	(in thousands, except percentages and per share data)
Gross profit	$	555,992		$	7,024		$	546		$	—		$	—		$	—	$	—		$	563,562
Gross margin		87.0	%		1.1	%		0.1	%		—			—			—		—			88.2	%
Operating expenses:
Sales and marketing		260,402			(19,513	)		(89	)		—			—			—		—			240,800
Research and development		186,413			(42,162	)		—			—			—			—		—			144,251
General and administrative		60,532			(15,543	)		—			(3,545	)		—			—		—			41,444
Total operating expenses		507,347			(77,218	)		(89	)		(3,545	)		—			—		—			426,495
Income from operations		48,645			84,242			635			3,545			—			—		—			137,067
Operating margin		7.6	%		13.2	%		0.1	%		0.6	%		—			—		—			21.5	%
Net income	$	63,363		$	84,242		$	635		$	3,545		$	(80	)	$	2,950	$	(29,942	)	$	124,713
Weighted shares outstanding, basic		267,566																				267,566
Weighted shares outstanding, diluted ⁽⁷⁾		296,804																				296,804
Net income per share, basic	$	0.24		$	0.32		$	–		$	0.01		$	–		$	0.01	$	(0.11	)	$	0.47
Net income per share, diluted ⁽⁸⁾	$	0.22																			$	0.42

________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Legal fees
(4)   Other
(5)   Amortization of debt issuance costs and interest expense related to debt
(6)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we are using a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(7)   Includes 29,238 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(8)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,099 of interest expense related to the convertible senior notes

	GAAP			Non-GAAP Adjustments																			Non-GAAP
	Nine Months Ended April 30, 2025			(1)			(2)			(3)			(4)			(5)		(6)		(7)			Nine Months Ended April 30, 2025
	(in thousands, except percentages and per share data)
Gross profit	$	1,633,711		$	23,193		$	2,080		$	—		$	—		$	—	$	—	$	—		$	1,658,984
Gross margin		86.7	%		1.2	%		0.1	%		—			—			—		—		—			88.0	%
Operating expenses:
Sales and marketing		775,185			(61,558	)		(265	)		—			—			—		—		—			713,362
Research and development		543,157			(132,489	)		—			—			—			—		—		—			410,668
General and administrative		174,036			(49,179	)		—			(6,480	)		—			—		—		—			118,377
Total operating expenses		1,492,378			(243,226	)		(265	)		(6,480	)		—			—		—		—			1,242,407
Income from operations		141,333			266,419			2,345			6,480			—			—		—		—			416,577
Operating margin		7.5	%		14.2	%		0.1	%		0.3	%		—			—		—		—			22.1	%
Net income	$	149,716		$	266,419		$	2,345		$	6,480		$	(210	)	$	11,347	$	5,369	$	(74,862	)	$	366,604
Weighted shares outstanding, basic		267,081																						267,081
Weighted shares outstanding, diluted ⁽⁸⁾		292,942																						292,942
Net income per share, basic	$	0.56		$	1.00		$	0.01		$	0.02		$	–		$	0.04	$	0.02	$	(0.28	)	$	1.37
Net income per share, diluted ⁽⁹⁾	$	0.52																					$	1.25

________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Legal fees
(4)   Other
(5)   Inducement expense related to partial repurchase of the 2027 Notes
(6)   Amortization of debt issuance costs and interest expense related to debt
(7)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we are using a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(8)   Includes 25,861 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(9)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $2,074 of interest expense related to the convertible senior notes

	GAAP			Non-GAAP Adjustments																	Non-GAAP
	Three Months Ended April 30, 2024			(1)			(2)			(3)			(4)			(5)		(6)			Three Months Ended April 30, 2024
	(in thousands, except percentages and per share data)
Gross profit	$	444,958		$	7,967		$	766		$	—		$	—		$	—	$	—		$	453,691
Gross margin		84.8	%		1.6	%		0.1	%		—			—			—		—			86.5	%
Operating expenses:
Sales and marketing		245,901			(18,901	)		(99	)		—			—			—		—			226,901
Research and development		159,220			(38,719	)		—			—			—			—		—			120,501
General and administrative		51,425			(16,705	)		—			(1,707	)		—			—		—			33,013
Total operating expenses		456,546			(74,325	)		(99	)		(1,707	)		—			—		—			380,415
(Loss) income from operations		(11,588	)		82,292			865			1,707			—			—		—			73,276
Operating margin		(2.2	)%		15.7	%		0.2	%		0.3	%		—			—		—			14.0	%
Net (loss) income	$	(15,616	)	$	82,292		$	865		$	1,707		$	(110	)	$	16,876	$	(13,453	)	$	72,561
Weighted shares outstanding, basic		245,766																				245,766
Weighted shares outstanding, diluted ⁽⁷⁾		245,766																				301,860
Net (loss) income per share, basic	$	(0.06	)	$	0.33		$	–		$	0.01		$	–		$	0.07	$	(0.05	)	$	0.30
Net (loss) income per share, diluted	$	(0.06	)																		$	0.24

________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Legal fees
(4)   Other
(5)   Amortization of debt discount and issuance costs and interest expense related to convertible senior notes
(6)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we are using a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(7)   Includes 56,094 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans

	GAAP			Non-GAAP Adjustments																				Non-GAAP
	Nine Months Ended April 30, 2024			(1)			(2)			(3)			(4)			(5)			(6)		(7)			Nine Months Ended April 30, 2024
	(in thousands, except percentages and per share data)
Gross profit	$	1,357,730		$	25,891		$	2,626		$	—		$	—		$	—		$	—	$	—		$	1,386,247
Gross margin		84.8	%		1.6	%		0.2	%		—			—			—			—		—			86.6	%
Operating expenses:
Sales and marketing		717,926			(61,110	)		(218	)		194			—			—			—		—			656,792
Research and development		471,596			(117,664	)		—			—			—			—			—		—			353,932
General and administrative		148,457			(47,594	)		—			—			(1,755	)		(225	)		—		—			98,883
Total operating expenses		1,337,979			(226,368	)		(218	)		194			(1,755	)		(225	)		—		—			1,109,607
Income from operations		19,751			252,259			2,844			(194	)		1,755			225			—		—			276,640
Operating margin		1.2	%		15.8	%		0.2	%		—			0.1	%		—			—		—			17.3	%
Net income	$	1,326		$	252,259		$	2,844		$	(194	)	$	1,755		$	925		$	49,874	$	(49,034	)	$	259,755
Weighted shares outstanding, basic		243,688																							243,688
Weighted shares outstanding, diluted ⁽⁸⁾		297,055																							297,055
Net income per share, basic	$	0.01		$	1.04		$	0.01		$	–		$	0.01		$	–		$	0.20	$	(0.20	)	$	1.07
Net income per share, diluted ⁽⁹⁾	$	0.05																						$	0.87

________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Restructuring charges (reversals)
(4)   Legal fees
(5)   Other
(6)   Amortization of debt discount and issuance costs and interest expense related to convertible senior notes
(7)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we are using a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(8)   Includes 53,367 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(9)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $12,749 of interest expense related to the convertible senior notes


Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow (Unaudited)

	Three Months Ended April 30,						Nine Months Ended April 30,
	2024			2025			2024			2025
	(in thousands)
Net cash provided by operating activities	$	96,353		$	218,506		$	428,234		$	601,927
Purchases of property and equipment		(18,029	)		(15,095	)		(54,813	)		(59,533	)
Free cash flow	$	78,324		$	203,411		$	373,421		$	542,394

The MIL Network –

May 29, 2025

MIL-OSI: Silvaco To Present at the Rosenblatt 5th Annual Technology Summit

Source: GlobeNewswire (MIL-OSI)

SANTA CLARA, Calif., May 28, 2025 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO, “Silvaco”), a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and digital twin modeling through AI software and innovation, today announced that Silvaco’s Chief Executive Officer, Dr. Babak Taheri, Interim Chief Financial Officer, Keith Tainsky, and Chief Revenue Officer, Ian Chen, will participate in a fireside chat at the Rosenblatt 5th Annual Technology Summit on Wednesday, June 11, at 4 p.m. Eastern time.

A live webcast, as well as a replay, of the presentation will be available on the company’s investor relations website at https://investors.silvaco.com/.

About Silvaco
Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and AI through software and innovation. Silvaco’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

Safe Harbor Statement
This press release contains forward-looking statements based on Silvaco Group, Inc.’s current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco Group, Inc. are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco Group, Inc. and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

Investor Contact:
Greg McNiff
investors@silvaco.com

Media Contact:
Tiffany Behany
press@silvaco.com

The MIL Network –

May 29, 2025
MIL-OSI Security: California Man Sentenced to 64 Months in Prison for Online Car Sales Scam That Defrauded Hundreds of Victims Out of More Than $10 Million

Source: US FBI

COLUMBUS, Ohio – Leo Shimizu, 39, of San Francisco, was sentenced in U.S. District Court today to 64 months in prison and ordered to pay more than $10.6 million in restitution for leading a nationwide money laundering conspiracy involving the proceeds of fraudulent online vehicle sales.

The U.S. Attorney’s Office for the Southern District of Ohio previously prosecuted four other co-conspirators in this scheme, including a Columbus man who helped lead the conspiracy.

According to court documents, the online car sales scam cheated at least 850 victims around the country out of more than $10.6 million total. Co-conspirators were part of a network that attracted online customers through fraudulent postings for vehicle sales.

Shimizu, who is also known as “Lil Droppy,” posted and directed other individuals to post listings on websites like Craigslist and Cars.com for vehicles they were alleging to sell. In truth, the co-conspirators did not have the vehicles they claimed they were selling.

Shimizu and others communicated with victims through email and phone, posing as employees of eBay, and used third parties to open bank accounts in the names of shell corporations that appeared to be affiliated with eBay. They instructed victims to wire funds to various third-party bank accounts they set up. They claimed to be affiliated with eBay’s Buyer Protection Program, when in fact, no such relationship existed.

Shimizu pleaded guilty in November 2024 to conspiring to commit money laundering.

Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; and Karen Wingerd, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; announced the sentence imposed by U.S. District Court Judge Edmund A. Sargus, Jr. Assistant United States Attorney Noah R. Litton is representing the United States in this case.

Acting U.S. Attorney Norris recognized the assistance of United States Secret Service in Toledo, Ohio and Miami, Florida; the FBI’s Baltimore field office; United States Postal Inspection Service in Detroit; New York State Police; the Canton, Ohio, Butler Village, Ohio, Mayfield Heights, Ohio, Bloomfield Township, Michigan, Marlboro Township, New Jersey and Janesville, Wisconsin police departments; and the Walworth County, Wisconsin and Clarke County, Alabama sheriff’s offices.

# # #

MIL Security OSI –

May 29, 2025
MIL-OSI Security: 14 Arrested on Complaints Alleging More Than $25 Million in COVID-19 Relief and Small Business Loans Were Fraudulently Obtained
Source: Office of United States Attorneys

LOS ANGELES – Fourteen defendants – including San Fernando Valley and Glendale residents – were arrested on two federal criminal complaints alleging they fraudulently obtained more than $25 million in taxpayer-funded COVID-19 relief funds and federally-guaranteed small business loans.

The 18 total defendants named in the complaints – four defendants are believed to be in Armenia – are charged with conspiracy to defraud the government with respect to claims; false, fictitious, or fraudulent claims; wire fraud and attempted wire fraud; bank fraud and attempted bank fraud; money laundering conspiracy; laundering of monetary instruments; engaging in monetary transactions in property derived from specified unlawful activity; and/or structuring financial transactions to evade reporting requirements.

The defendants arrested today include:
- Vahe Margaryan, a.k.a. “William McGrayan,” 42, of Tujunga, who allegedly orchestrated a scheme to defraud numerous banks and the Small Business Administration’s (SBA) Preferred Lender Program, a program designed to help small businesses that otherwise might not obtain financing. McGrayan allegedly directed owners of sham corporations to open bank accounts, make false statements, and concoct documents, including phony resumes and financial statements, to support loan applications to buy other sham corporations. McGrayan allegedly paid for phony tax returns that falsely reported millions in revenue and tens of thousands in tax due and owing. McGrayan, whose alleged criminal activity lasted from 2018 until January 2025, then directed the laundering of millions in fraud proceeds through various bank accounts.
- Sarkis Gareginovich Sarkisyan, 37, a.k.a. “Samuel Shaw,” of Glendale, who allegedly, among other offenses, submitted a false application and bogus documents to obtain a loan under the Paycheck Protection Program (PPP), which provided low-interest, forgivable loans to help small businesses retain their workforce and cover expenses. Sarkisyan allegedly applied in April 2021 on behalf of a fake business that received more than $700,000 in PPP funds.
- Mery Babayan, 32, a.k.a. “Mery Diamondz,” of Van Nuys, together with co-defendants Margaryan and Hovannes Hovannisyan, 48, a.k.a. “John Harvard,” of Panorama City, in May 2021 allegedly defrauded a bank by representing the nonexistent sale of a sham business to another sham company to obtain an approximately $3 million federally guaranteed loan through the SBA’s Preferred Lending Program.
- Felix Parker, 77, of North Hollywood, who in January 2023 allegedly made false statements and submitted fraudulent documents, including fake tax returns that falsely reported that his shell company, Canmar Promo, earned millions of dollars annually and owed tens of thousands in federal income taxes. Parker allegedly obtained more than $2 million in government-guaranteed funds earmarked to help small businesses.
- Axsel Markaryan, 47, a.k.a. “Axel Mark,” of Pacoima, who in June 2023 allegedly fraudulently obtained more than $5 million in SBA loans via the submission of false statements and the submission of fake documents, including bogus tax returns. After the loans were obtained, Markaryan and his co-schemers in November 2023 laundered the money, including sending at least $100,000 to a co-schemer in Armenia.
As a result of today’s takedown, law enforcement seized approximately $20,000 in cash, two money-counting machines, paper cash bands or currency straps in denominations of $2,000 and $10,000, multiple cell phones, multiple laptops, two loaded semi-automatic 9mm handguns, and boxes of 9mm ammunition.

“Today’s enforcement action is intended to send a message to all criminals who take advantage of government programs designed to help those who need them most,” said United States Attorney Bill Essayli. “If you took COVID-19 or SBA money you weren’t entitled to, your door could be the next one we visit. Together with our law enforcement partners, my office will aggressively prosecute individuals who cheat the system meant to protect and support law-abiding citizens.”

“Scheming to fraudulently obtain federal funds that were meant to provide assistance to the nation’s small businesses is unacceptable,” said the U.S. Small Business Administration Office of Inspector General (SBA-OIG) Western Region Acting Special Agent in Charge Jonathan Huang. “OIG will continue to ardently investigate fraudulently obtained SBA program funds, including COVID-19 pandemic-related loans, to protect taxpayers from fraud, waste, and abuse. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

“This transnational criminal network sought to defraud the government of millions of dollars and almost succeeded,” said Homeland Security Investigations (HSI) Los Angeles Acting Special Agent in Charge John Pasciucco. “Through the diligent work of the El Camino Real Financial Crimes Task Force and our federal partners, HSI is continuing to identify these criminal groups looking to profit from the pandemic and will use all available resources to criminally prosecute or remove them from the country.”

“Today, 14 individuals were arrested in connection with a fraudulent loan scheme in which they allegedly obtained in excess of $25 million through the SBA Paycheck Protection Program, Economic Injury Disaster Loan programs, and other federal funding programs,” said IRS Criminal Investigation Special Agent in Charge Tyler Hatcher, Los Angeles Field Office. “These programs were established to assist individuals and businesses in need of financial assistance and instead were pilfered by the named defendants. IRS-CI is dedicated to identifying and dismantling criminal organizations that prey on assistance programs set up for the benefit of our law-abiding citizens.”

A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, each defendant would face a statutory maximum sentence of decades in federal prison.

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

On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of the three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.

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

SBA-OIG, IRS Criminal Investigation, and HSI are investigating these matters.

The cases announced today were investigated by the U.S. Department of Homeland Security’s Office of Inspector General and Homeland Security Investigations’ (HSI) El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California.

Assistant United States Attorneys Mark Aveis and Gregg Marmaro of the Major Frauds Section and Maxwell Coll of the Cyber and Intellectual Property Crimes Section are prosecuting these cases.

MIL Security OSI –
May 29, 2025
MIL-OSI Security: Orlando U.S. Postal Employee Sentenced In “Fenta-Pill” Conspiracy

Source: Office of United States Attorneys

Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced Orlando Rosa Rodriguez (59, Orlando) to 5 years and 10 months in federal prison for conspiracy to distribute fentanyl and money laundering. The court also ordered Rosa Rodriguez to forfeit two vehicles, both of which were traceable proceeds of the offense. Rosa Rodriguez pleaded guilty on February 24, 2025.

According to court documents, co-defendants Jayson Perez-Quinones (48, Orlando) and Jovan Rivera Rodriguez (36, Kissimmee) arranged to receive shipments of thousands of pills that were pressed to look like pharmaceuticals but contained fentanyl – (so-called “fenta-pills”). At their home in Orlando, Perez-Quinones and co-defendant Karen AltaGracia Perez (44, Orlando) packaged those pills into individual pill bags (pictured below) for street delivery.

Perez-Quinones and Perez then distributed those bags to mid-level distributors such as Rosa Rodriguez for resale. Rosa Rodriguez distributed those pills to customers, including in the parking of his workplace at the U.S. Postal Service. Rosa Rodriguez earned more than $300,000 in one 20-month period on top of his salary from the U.S. Postal Service and VA disability benefits. He used those proceeds to purchase sports cars, including a Corvette worth approximately $80,000, a Porsche 911 Carrera Coup worth approximately $92,000, and a Porsche 718 Cayman Coup worth approximately $120,000.

On June 13, 2023, AltaGracia Perez was sentenced to five years and six months in federal prison for her role in the conspiracy. On August 8, 2023, Perez-Quinones and Rivera Rodriguez were sentenced to 15 years’ and 5 years’ imprisonment, respectively, for their roles in the conspiracy.

This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation, with assistance from the Orlando Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.

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

MIL Security OSI –

May 29, 2025
MIL-OSI USA: FACT: One, Big, Beautiful Bill Cuts Spending, Fuels Growth

US Senate News:

Source: US Whitehouse
President Donald J. Trump’s One, Big, Beautiful Bill is a once-in-a-generation opportunity to cut spending, fuel growth, and level the fiscal footing of the American economy.
Stephen Miller, White House Deputy Chief of Staff, explains the bill’s historic nature:
“The Big Beautiful Bill is NOT an annual budget bill and does not fund the departments of government. It does not finance our agencies or federal programs. Instead, it includes the single largest welfare reform in American history. Along with the largest tax cut and reform in American history. The most aggressive energy exploration in American history. And the strongest border bill in American history. All while reducing the deficit.”
Miller goes on to explain how the legislation also reduces the deficit:
“The bill saves more than 1.6 TRILLION in mandatory spending, including the largest-ever welfare reform. A remarkable achievement. I’ve also seen claims the bill increases the deficit. This lie is based on a CBO accounting gimmick. Income tax rates from the 2017 tax cut are set to expire in September. They were always planned to be permanent. CBO says maintaining *current* rates adds to the deficit, but by definition leaving these income tax rates unchanged cannot add one penny to the deficit. The bill’s spending cuts REDUCE the deficit against the current law baseline, which is the only correct baseline to use.”
Meanwhile, Peter Navarro, Senior Counselor for Trade and Manufacturing, explains why so-called “forecasts” fail to account for the bill’s contributions to economic growth and debt reduction:
“In making its projections, the CBO [Congressional Budget Office] has refused to account for — or ‘score’ as they say in CBO lingo — any of the new revenues from the Trump reciprocal tariffs.
Remember here a key goal of Trump’s fair-trade policies is to shift the U.S. tax base from one primarily reliant on income taxes to one that, with the vision of the new External Revenue Service, is also supported by tariff revenues. Consider, then, the impacts on the CBO’s projected revenue shortfall of just the modest 10 percent global baseline tariff Trump recently put into effect.
Such a tariff, depending on consumer responses (as measured by demand elasticities) and enforcement efficacy (i.e., how much cheating occurs), should generate between $2.3 trillion and $3.3 trillion in additional revenue over the ten-year forecast period. When this revenue is layered onto the enhanced dynamic growth scenario, the projected budget impact from the One Big Beautiful Bill Act ranges from a modest $300 billion increase in the debt under the 2.2 percent growth assumption to as much as a $2 trillion surplus under the 2.7 percent growth assumption.”

MIL OSI USA News –

May 29, 2025
MIL-OSI Asia-Pac: Government welcomes passage of Air Passenger Departure Tax (Amendment) Bill 2025

Source: Hong Kong Government special administrative region

Government welcomes passage of Air Passenger Departure Tax (Amendment) Bill 2025Issued at HKT 19:54

The Government welcomed the passage of the Air Passenger Departure Tax (Amendment) Bill 2025 by the Legislative Council today (May 28) to implement the proposal in the 2025-26 Budget to increase the air passenger departure tax (APDT) from $120 to $200 per passenger. It is anticipated that government revenue will increase by about $1.6 billion per year. The new tax rate will be applicable to air tickets purchased on or after October 1, 2025.

A Government spokesperson said, “The Government has struck a balance between increasing revenue and minimising the impact on passengers when considering increasing the APDT. The impact of the increase on the overall cost of travelling for air passengers (including tourists) is minimal.”

The Bill also streamlines the Government’s financial arrangement for paying administrative fees to the airlines and helicopter company. It empowers the Financial Secretary to approve their retention of part of the APDT collected for offsetting the administration fees payable by the Government to them, and provides that the retained fees do not form part of the general revenue under the Public Finance Ordinance (Cap. 2).

The Bill passed will be gazetted on June 6.

Ends/Wednesday, May 28, 2025
Issued at HKT 19:54

MIL OSI Asia Pacific News –

May 29, 2025
MIL-OSI USA: 141-Unit Public Housing Development Completed in Troy

Source: US State of New York

overnor Kathy Hochul today announced the completion of the redeveloped John P. Taylor Apartments in the city of Troy. The new $67 million seven-story mixed-use building, developed by Pennrose, features 141 affordable apartments and ground floor retail space, replacing the complex’s two original towers which were demolished in 2022 after having been vacant for more than a decade. Under Governor Hochul’s leadership, New York State Homes and Community Renewal has financed more than 1,300 affordable homes in Rensselaer County. The redevelopment of the John P. Taylor Apartments 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.

“The completion of the John P. Taylor Apartments is another step forward in our ongoing mission to create and preserve affordable housing opportunities for New Yorkers,” Governor Hochul said. “This complex demonstrates how important our investments are for communities like Troy. This comprehensive project delivers 141 modern, energy-efficient affordable homes and significant infrastructure improvements that support the city’s continued efforts to revitalize its downtown waterfront.”

The redevelopment of the John P. Taylor Apartments was a priority of the Revitalize Riverside component of Troy’s $10 million Downtown Revitalization Initiative, which was awarded by the State in 2021. The Revitalize Riverside plan was designed to enhance Troy’s South Central neighborhood and is part of a comprehensive strategy to create commercial space, add new housing, restore Troy’s downtown street grid, and improve the Congress Street Bridge which serves as an important artery to several of the region’s major roadways.

All units are supported by Project-based Section 8 vouchers issued by the Troy Housing Authority. Residents of the original John P. Taylor Apartments were given a preference for placement in the new apartments.

The new building was constructed to meet EPA Energy Star Multifamily New Construction and Enterprise Green Communities PLUS criteria. The development utilizes advanced energy efficiency features including all-electric HVAC, increased insulation, and an energy recovery ventilation system.

The John P. Taylor Apartments will offer an array of modern amenities for residents, including free Wi-Fi, washers and dryers in every apartment, and common areas such as a fitness center, community room, and outdoor patio.

State financing includes Federal Low-Income Housing Tax Credits that generate $30 million in equity and $20 million in subsidy from New York State Homes and Community Renewal. The Department of State’s Downtown Revitalization Initiative provided $1.6 million in support. The Federal Home Loan Bank provided $1.4 million.

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Replacing aging public housing stock with modern homes and amenities is one of the most impactful ways to increase quality of life and make housing more affordable for families. This $67 million project, developed by Pennrose in partnership with the Troy Housing Authority, not only provides 141 new apartments but connects people to the city and further revitalizes Troy’s historic waterfront. Under Governor Hochul’s leadership, HCR is proud to work alongside state and local partners to support efforts that are delivering thousands of affordable homes and improving affordability across New York.”

New York Secretary of State Walter T. Mosley said, “The new Taylor Apartments are a major step towards Governor Hochul’s efforts to make New York more affordable and to create badly needed housing throughout our state. We are incredibly proud of how the Downtown Revitalization Initiative takes a holistic approach in creating opportunities for communities to thrive and for residents to have an affordable place to call home. Congratulations on this successful project completion.”

U.S. Senator Chuck Schumer said, “Every family in Troy 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 millions to build over 140 new homes at the John P. Taylor Apartments – a redeveloped waterfront building with energy-efficient air conditioning and ventilation systems. 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’m proud to have secured federal funding to raze the old, outdated and dilapidated Taylor towers, so that this wonderful new era at the Taylor Apartments could begin. I applaud Governor Hochul’s work increasing access to affordable housing in the Capital Region 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.”

Assemblymember John McDonald said, “The redevelopment of the John P. Taylor Apartments is a great example of what can be accomplished when state and local partners work together to meet the needs of our communities. This project not only provides high-quality, affordable housing for families in Troy, but it also strengthens the city’s economy through smart, community-focused investment. I’m proud to support initiatives like this that enhance quality of life and create new opportunities for Capital Region residents.”

Troy Mayor Carmella R. Mantello said, “The completion of the John P. Taylor Apartments marks a major milestone in our continued efforts to move Troy forward. This transformative redevelopment is made possible through the partnership of Pennrose, the Troy Housing Authority, and our city. It not only brings much-needed state of the art affordable housing to our downtown waterfront but also strengthens the connection between our neighborhoods and the Capital Region. Together, we are building a more vibrant, inclusive, and prosperous future for all who call Troy home.”

Troy City Council President Sue Steele said, “It was a great honor for me to serve as Chair of the Troy Housing Authority Board of Commissioners during the planning, demolition and construction of Taylor 1. This project transformed our city’s downtown while also providing new, modern housing for tenants of the THA. On behalf of the board I want to thank each and everyone involved in making this a reality. I’m grateful for the combined vision of local, state and federal partners and Pennrose to step up and address a critical housing need in our city.”

Troy Housing Authority Executive Director Deborah Witkowski said, “I want to thank Governor Hochul and our federal and state partners for their investment in the City of Troy and the new Taylor I building which provides 141 units of high-end affordable housing with modern-day amenities that encourage a healthy, sustainable environment for the residents we serve. The Taylor I building is only the beginning of the overall Taylor Apartments revitalization plan that will eventually include other mixed-use, mixed-income buildings with direct access to the riverfront, recreational areas, and a connection to Troy’s downtown district.”

Pennrose Regional Vice President Dylan Salmons said, “Today’s ribbon cutting is a significant milestone in the years-long effort to revitalize the historic downtown, and we look forward to continuing the momentum with phase II. We’d especially like to thank the local community, neighborhood stakeholders, and residents of Taylor Apartments for their time, feedback, continued trust, and collaboration throughout this process.”

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 FY 2025 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives, capital funding, and new protections for renters and homeowners. Building on this commitment, the FY 2026 Enacted Budget included more than $1.5 billion in new state funding for housing, a Housing Access Voucher pilot program, and new policies to improve affordability for tenants and homebuyers. In addition, as part of the FY 2023 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. Nearly 60,000 homes have been created or preserved to date.

The FY 2025 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 $750 million in discretionary funding. Currently, more than 300 communities have been certified, including Troy.

MIL OSI USA News –

May 29, 2025
MIL-OSI Security: Freight Forwarding Company Executive Arrested on Federal Indictment Alleging Massive Scheme to Avoid Customs Duties Payments

Source: Office of United States Attorneys

LOS ANGELES – The chief financial officer (CFO) at a Downtown Los Angeles-based shipping company has been arrested on a 22-count federal grand jury indictment charging him and the company’s CEO with using fraudulent documents, shell companies, bribes to public officials, and kickbacks to Mexican drug cartels to smuggle billions of dollars’ worth of goods from the United States into Mexico, repeatedly lying to U.S. customs officials and defrauding Mexico out of hundreds of millions of dollars’ worth of duties owed, the Justice Department announced today.

Ralph Olarte, 55, of Glendale, the CFO of Sport LA Inc., was arrested late last night at Los Angeles International Airport. He is expected to make his initial appearance and be arraigned this afternoon in United States District Court in downtown Los Angeles.

Also charged in the indictment is Humberto Lopez Belmonte, 53, of Mexico City, who was arrested and arraigned on Tuesday in Los Angeles federal court. Lopez pleaded not guilty to the charges against him and a July 21 trial date was scheduled. A federal magistrate judge ordered Lopez released on $100,000 bond.

Olarte and Lopez are charged with one count of conspiracy to smuggle goods from the United States. Both defendants and their company, Sport LA Inc., also are charged with one count of smuggling goods from the United States, three counts of knowingly submitting false and misleading export information, five counts of wire fraud for false information submitted to U.S. Customs and Border Protection (CBP), one count of conspiracy to commit wire fraud against Mexico, one count of conspiracy to commit money laundering, and seven counts of international promotional and concealment money laundering.

Sport LA is charged with three counts of making false statements to a government agency. The other defendant companies – H&R Logistics Inc. and Olarte Transport Service Inc. – are charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.

According to the indictment returned on April 30 and unsealed Tuesday, Olarte and Lopez, from at least 2013 to the present, operated a lucrative international shipping enterprise. Through shipping companies they controlled, Olarte and Lopez smuggled billions of dollars’ worth of goods from and through the United States into Mexico. Many times, they concealed the nature of the shipped goods, some of which contained contraband.

The companies allegedly submitted millions of false and misleading statements to U.S. customs officials, used shell companies in Mexico to shield their true customers, and created and presented false documents – including sham certificates for paid Mexican import taxes. They also bribed Mexican customs officials, paid kickbacks to drug cartels – including the Jalisco New Generation Cartel (CJNG) – to operate the scheme and smuggled bulk cash into the U.S. to avoid reporting requirements.

Olarte and Lopez then laundered the proceeds of their scheme back from the true Mexican customers, through the shell companies, and ultimately into the companies’ U.S. bank accounts.

As a result of the conspiracy, Olarte and Lopez personally received millions of dollars in illicit proceeds.

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

If convicted, Olarte and Lopez would face a statutory maximum sentence of 20 years in federal prison for each count of wire fraud- and money laundering-related count, up to five years in federal prison for each smuggling- and false statements-related count, and up to two years in federal prison for each count of knowingly submitting false and misleading export information.

Homeland Security Investigations (HSI), CBP, IRS Criminal Investigation, and the Drug Enforcement Administration are investigating this matter.

The cases announced today were investigated by HSI’s El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California.

The Transnational Organized Crime Section is prosecuting this case.

MIL Security OSI –

May 29, 2025
MIL-OSI Security: Independence Man Charged with Cocaine Trafficking, Illegal Firearms

Source: Office of United States Attorneys

KANSAS CITY, Mo. – An Independence, Mo., man has been charged in federal court with possessing over two kilograms of cocaine and illegally possessing three firearms.

Jacob N. Dodge, 26, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. on Tuesday, May 27. The complaint charges Dodge with participating in a conspiracy to distribute cocaine, possessing cocaine with the intent to distribute, and possessing firearms in furtherance of a drug trafficking crime.

The complaint alleges investigators attempted to arrest Dodge on May 23, 2025 after a controlled drug evidence purchase. Members of the Kansas City, Mo. Police Department Tactical Unit attempted to initiate a high-risk car stop utilizing a Vehicle Intervention Tactic, also known as a “VIT”. Dodge maneuvered his vehicle out of the VIT and fled at a high rate of speed. Three tactical vehicles attempted the VIT maneuver again, and Dodge purposely struck the occupied police vehicles with his vehicle. Police successfully disabled Dodge’s vehicle in the front yard of a residence and arrested Dodge. Investigators executed a federal search warrant on Dodge’s residence and searched Dodge and his vehicle after he was arrested.

Investigators found over 2 kilograms of cocaine, 290 kilograms of marijuana, 251 kilograms of THC wax, 852 kilograms of THC vapes, 125 kilograms of THC syrup, 44 kilograms of THC edibles, 24 kilograms of miscellaneous THC items, 35 kilograms of THC resin, 5 kilograms of psilocybin mushrooms, 250 kilograms of psilocybin mushroom bars, and 46 grams of LSD. Investigators also found $78,943 in cash and 6 firearms.

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

This case is being prosecuted by Special Assistant U.S. Attorney Jessica L. Jennings. It was investigated by the Kansas City, Missouri Police Department, the FBI, IRS-Criminal Investigations, the Independence, Missouri Police Department, and the Johnson County, Kansas Sheriff’s Office.

KC Metro Strike Force

This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces 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 against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.

MIL Security OSI –

May 29, 2025
MIL-OSI USA: ICYMI: Trump’s ‘One, Big, Beautiful Bill’ promises up to $11,600 wage boost, new jobs

US Senate News:

Source: US Whitehouse
From The National Desk:
“President Trump’s proposed tax cuts, encapsulated in the ‘One, Big, Beautiful Bill,’ aim to extend the pro-growth and pro-worker legacy of the 2017 Tax Cuts and Jobs Act (TCJA), the White House told exclusively to The National News Desk.
The TCJA previously cut taxes across the board for working families, allowing Americans to allocate more of their earnings toward family, community, and future investments.
This initiative, along with business tax provisions, spurred a blue-collar boom characterized by record-high income gains, record-low poverty, and significant wage increases, particularly for low-wage workers, according to the White House. […]
The ‘One, Big, Beautiful Bill,’ according to the White House, seeks to further this growth by creating incentives to expand America’s domestic manufacturing base and providing targeted relief to workers affected by high inflation and sectoral declines.
Some of the key provisions provided by the Trump administration include eliminating taxes on tips and overtime, saving workers approximately $1,675 and up to $1,750 per year.
The bill also proposes temporary full expensing for new factories and lower tax rates on domestic manufacturing to enhance the industrial base and boost economic opportunities.
According to the White House, Enhanced Opportunity Zone incentives are expected to drive over $100 billion in investment, create more than 1 million new jobs, and lead to the development of hundreds of thousands of new homes in distressed communities, particularly in rural areas.
The Joint Committee on Taxation reported that the percentage decline in federal taxes is smaller for the top 1 percent under the bill, resulting in them taking on a greater share of total federal taxes.
The White House says that if the bill fails to pass, it could result in a $4 trillion tax hike, potentially leading to recessionary challenges.”
Click here to read the full story.
Click here to read the report from the Council of Economic Advisers.

MIL OSI USA News –

May 29, 2025
MIL-OSI Security: Second Owner of Local Real Estate Investment Company Pleads Guilty to Role in Fraud Conspiracy

Source: US FBI

PORTLAND, Ore.—The owner of a local real estate investment company pleaded guilty today for his role in an $18 million fraud scheme, joining his business partner and co-owner of the company who pleaded guilty in March 2025.

Robert D. Christensen, 55, of Sherwood, Oregon, pleaded guilty to conspiracy to commit wire fraud and money laundering.

Previously, on March 11, 2025, Christensen’s partner and co-owner of the investment company, Anthony M. Matic, 55, of Damascus, Oregon, also pleaded guilty to conspiracy to commit wire fraud.

According to court documents, from approximately January 2019 through June 2023, Christensen and Matic devised and carried out a scheme wherein they convinced individual investors to fund the purchase and renovation of undervalued residential real estate properties. After renovating the properties, Christensen and Matic claimed they would rent the properties to generate income and then refinance them to extract their increased value from the renovations. The pair further misled investors into believing they would be repaid their full principal investment along with interest as high as eight to fifteen percent and a large lump sum payout, all within periods as short as 30 to 90 days.

Christensen and Matic’s scheme failed to generate the promised returns almost immediately and they began using new investments to repay earlier investors to keep their business afloat. When they were unable to raise enough money from new investors, Christensen and Matic devised a separate scheme to defraud commercial lenders. By December 2020, the pair began submitting loan applications with false financial information to different commercial lenders and, based on their misrepresentations, received millions of dollars in loans.

In total, Christensen and Matic’s two schemes defrauded individual investors out of more than $11 million and commercial lenders out of more than $7 million.

Conspiracy to commit wire fraud is punishable by up to 20 years in federal prison and three years’ supervised release. Money laundering in punishable by up to 10 years in federal prison and three years’ supervised release. Both charges may also result in fines of up to $250,000 or twice the gross gains or losses resulting from the offense.

Christensen and Matic will both be sentenced on October 14, 2025.

This case was investigated by the FBI and IRS Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Robert Trisotto.

MIL Security OSI –

May 29, 2025
MIL-OSI Security: Four Businessmen and Two Companies Charged in Nationwide Telemarketing Fraud Scheme

Source: US FBI

PHILADELPHIA – United States Attorney David Metcalf announced the unsealing today of a superseding indictment (“the indictment”) charging four businessmen and two companies with conspiracy and wire fraud offenses in connection with their execution of a nationwide telemarketing fraud scheme. The corporate defendants, Bene Market LLC and Seguro Medico LLC, doing business as Quick Health, Q Health, Benefits Now, Express Benefits, and YourBenefits4U (collectively, the “Bene Market Group”), operated a boiler room call center near Reading, Pennsylvania, which peddled discount health and dental plans to consumers through a series of false, misleading, and deceptive sales practices.

The businesses were controlled and managed by the principal architect of the alleged fraud scheme, defendant Alan Redmond, 42, of Wyomissing, Pa., who was supported by senior executives Arthur Walsh, 65, of West Lawn, Pa., and Jesus Barrera, 32, of Dillsburg, Pa., and head sales agent and manager Albert Groff, 44, of Wernersville, Pa.

The 44-page indictment returned by the federal grand jury alleges that, from at least January 2018 through December 2022, the defendants collected tens of millions of dollars in commissions by regularly and systematically deceiving and misleading consumers seeking health insurance through bait-and-switch sales tactics, which included tricking consumers into buying limited benefit plans that provided little or no coverage by falsely representing that the plans provided comprehensive health insurance coverage, also known as “major medical insurance,” or provided coverage equivalent to major medical insurance, when they did not.

As alleged in the indictment, the Bene Market Group paid lead generators for the transfer of live calls with consumers looking to purchase healthcare insurance. Once transferred over, the Bene Market Group employees falsely told consumers that the company was “the national enrollment center for health insurance” and worked as a third-party broker to search and compare health insurance products across the entire marketplace to find the best coverage at the lowest rate. The Bene Market Group also falsely claimed to “work with over 30 of the top A-rated insurance companies” and to sell comprehensive health insurance policies from well-known, blue-chip insurers. In reality, the Bene Market Group did not search the marketplace, did not work with the touted A-rated carriers, and did not even sell major medical insurance. Instead, the Bene Market Group peddled a limited set of discount plans that had lower and more restricted benefits than major medical insurance. In some instances, the limited benefit plans sold by the defendants were not even insurance.

The indictment charges further that, as a result of the defendants’ bait-and-switch scheme, tens of thousands of purchasing consumers were left without insurance coverage for the majority of their medical, dental, and prescription costs. For some consumers with serious health care needs, the lack of coverage from the limited benefit plans sold by the defendants caused financial hardship and left them in significant medical debt in the tens and hundreds of thousands of dollars.

According to the indictment, in order to keep the fraud scheme going, Redmond and the manager defendants used unlicensed sales employees to sell the limited benefit plans; bundled products together to mimic major medical insurance; trained the sales employees with misleading scripts and sales pitches to use on the phones; used a variety of trade names and aliases when selling plans; engaged in “churning” and “policy-flipping” by reselling and upselling existing consumers; omitted and downplayed material restrictions about the limited plans sold; overbilled and double-billed consumers; told consumers to ignore or disregard the verification disclaimers or disclosures; altered recorded sales calls after the fact to deceive regulators; withheld information about the limited benefit plans from sales employees; ignored complaints from consumers, carriers, and regulators; and refused or delayed refunds to consumers.

The indictment charges further that Redmond obscured his control of defendant Seguro Medico by using nominees, including his spouse, and used funds fraudulently obtained from victim purchasers to buy personal properties, commercial properties, jewelry, airline tickets, event tickets, private school tuition, and limousine services. The other manager defendants also received significant payments or distributions, as a result of the fraud scheme.

The indictment further alleges that, between 2019 and 2022, Redmond caused Bene Market and Seguro Medico to withhold over $1.2 million in trust fund taxes from the wages and paychecks of employees, but Redmond did not pay over these withheld amounts to the IRS on behalf of the employees, as required.

If convicted of the conspiracy, wire fraud, and tax offenses, defendant Alan Redmond faces a maximum possible sentence of 635 years’ imprisonment, a five-year period of supervised release, and a $6,750,000 fine, along with restitution and forfeiture of various properties and money. Defendants Arthur Walsh, Jesus Barrera, and Albert Groff each face 600 years’ imprisonment, a five-year period of supervised release, and a $5,000,000 fine, along with restitution and forfeiture.

The case was investigated by the FBI and IRS Criminal Investigation, with assistance from the Pennsylvania Attorney General’s Office, and is being prosecuted by Assistant United States Attorneys Samuel S. Dalke and Mary E. Crawley.

The charges and allegations contained in the indictment are merely accusations. Every defendant is presumed to be innocent unless and until proven guilty in court.

MIL Security OSI –

May 29, 2025
MIL-OSI Africa: No plans to reform SA’s mineral royalty regime – President Ramaphosa

Source: South Africa News Agency

Government remains committed to ensuring that South Africa continues to benefit equitably from its mineral wealth, while reaffirming that there are no current plans to reform the country’s mineral royalty regime.

Responding to oral questions in the National Assembly on Tuesday, President Cyril Ramaphosa addressed concerns raised by members regarding the country’s ability to fully capture the potential fiscal benefits of its mineral resources amid a global surge in demand for metals and minerals critical to the renewable energy transition.

“Any company that extracts a mineral resource in our country is required to pay the South African government a mineral royalty. This is because mineral resources are finite and cannot be replaced.

“While it is always good to review existing policies against national priorities, there is no intention at this stage to reform the current mineral royalty regime,” the President said.

On the issue of the resource rent taxes, the President said that such taxes aim to ensure that companies extracting minerals pay a larger share of their profits to government whenever profits are high.

He explained that South Africa’s mineral royalty regime incorporates an element of the principle underlying resource rent taxes.

The royalty rate is applied to the sales value of a mineral and is determined by a formula that varies according to profitability, as well as whether the mineral has been refined or is unrefined.

“There is a minimum rate to ensure that even if profitability is low, the country is still reimbursed for resources that are extracted. In this way, government collects more corporate tax revenue and mineral royalty revenue during commodity booms leading to a higher level of taxation,” the President said.

President Ramaphosa cited statistics from the South African Revenue Service which show that mineral royalties doubled from R14.2 billion to R28.5 billion between 2020/21 and 2021/22 because of the commodity boom.

They remained elevated in 2022/23 before dropping to almost R16 billion in 2023/24, indicating that companies were not as profitable in that year.

In addition to the payment of mineral royalties, mining companies contribute to national revenue through the payment of corporate income tax, capital gains tax on the disposal of assets, VAT and employees’ pay-as-you-earn tax contributions.

In the past financial year, the mining industry paid 14% of all corporate taxes in South Africa. Earlier this month, Cabinet adopted a Critical Minerals Strategy for the country, which places a sharper focus on domestic mineral value addition.

“The strategy itself aims to maximise the country’s potential particularly in the global market for critical minerals, particularly those crucial for the country’s just energy transition and the ones for which the country holds comparative advantage.

“This strategy aims to ensure that South Africa derives greater benefits from its mineral wealth through beneficiation, through localisation and the people who work for those companies,” President Ramaphosa said. – SAnews.gov.za

MIL OSI Africa –

May 29, 2025

MIL-OSI: STEALTHGAS INC. Reports First Quarter 2025 Financial and Operating Results

Source: GlobeNewswire (MIL-OSI)

ATHENS, Greece, May 28, 2025 (GLOBE NEWSWIRE) — STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the first quarter ended March 31, 2025.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

Strong profitability continued for the first quarter, with Net income of $14.1 million corresponding to a basic EPS of $0.38, similar to the previous quarter’s $14.2 million but reduced compared to the $17.7 million record at the time achieved in the first quarter of 2024.
Time Charter equivalent revenues decreased by 4.6% compared to the same period of last year to $36.9 million for the first quarter of 2025 as a result of a more muted market.
Preserved the high period coverage. About 70% of fleet days for 2025 are secured on period charters, with total fleet employment days for all subsequent periods generating over $165 million (excl. JV vessels) in contracted revenues.
Continued reducing leverage, making $34.4 million in debt repayments during the first quarter of 2025 and a further $19.2 million in the current quarter of 2025. Currently, all the vessels in the fully owned fleet except one are unencumbered.
Since the last quarterly announcement the Company has spent $1.8 million in share repurchases. Overall under the current program the Company has spent over $21.2 million in share repurchases since June 2023.
Maintaining ample cash and cash equivalents (incl. restricted cash) of $77.1 million as of March 31, 2025 enabling the Company to further reduce debt.

First Quarter 2025 Results¹:

Revenues for the three months ended March 31, 2025 amounted to $42.0 million compared to revenues of $41.6 million for the three months ended March 31, 2024, based on an average of 28.0 vessels and 27.0 vessels owned by the Company, respectively, as the vessels remaining in the fleet earned higher revenues due to better market conditions.
Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2025, were $5.1 million and $13.5 million, respectively, compared to $2.9 million and $11.5 million, respectively, for the three months ended March 31, 2024. The $2.2 million increase in voyage expenses was mainly due to an increase in port expenses and in bunkers costs as a result of the increase in spot market days for the fleet. The $2.0 million increase in vessels’ operating expenses was mainly due to increase in crew costs and maintenance expenses.
Drydocking costs for the three months ended March 31, 2025 and 2024 were $0.4 million and nil, respectively. Drydocking expenses during the first quarter of 2025 mainly relate to the commenced drydocking of one vessel, compared to no drydocking of vessels in the same period of last year.
General and administrative expenses remained stable at $2.2 million for both the three months ended March 31, 2025 and 2024.
Depreciation for the three months ended March 31, 2025 and 2024 was $6.7 million and $6.5 million, respectively, a $0.2 million increase is mainly related to the increase in average number of vessels owned by the Company and to the partial replacement of some of the older vessels with newer and larger ones which have a higher cost.
Impairment loss for the three months ended March 31, 2025 and 2024 was $0.5 million and nil, respectively. As a result of the agreed sale terms for the vessel Gas Cerberus, with delivery expected in the second quarter of 2025, a non-cash impairment loss of $0.5 million was recognized in the first quarter of 2025.
Interest and finance costs for the three months ended March 31, 2025 and 2024, were $1.4 million and $3.2 million, respectively. The $1.8 million decrease from the same period of last year is primarily due to continued debt prepayments.
Interest income for the three months ended March 31, 2025 and 2024, remained unchanged at $0.8 million.
Equity earnings in joint ventures for the three months ended March 31, 2025 and 2024 was a gain of $2.2 million and $2.6 million, respectively. The $0.4 million decrease was primarily due to decrease in number of vessels in joint ventures.
As a result of the above, for the three months ended March 31, 2025, the Company reported net income of $14.1 million, compared to net income of $17.7 million for the three months ended March 31, 2024. The weighted average number of shares outstanding, basic, for the three months ended March 31, 2025 and 2024 was 35.7 million and 35.1 million, respectively.
Earnings per share, basic, for the three months ended March 31, 2025 amounted to $0.38 compared to earnings per share, basic, of $0.49 for the same period of last year.
Adjusted net income was $16.1 million corresponding to an Adjusted EPS of $0.44 for the three months ended March 31, 2025 compared to Adjusted net income of $19.1 million corresponding to an Adjusted EPS of $0.53 for the same period of last year.
EBITDA for the three months ended March 31, 2025 amounted to $21.4 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
An average of 28.0 vessels were owned by the Company during the three months ended March 31, 2025 compared to 27.04 vessels for the same period of 2024.

¹ EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following chartering arrangements (of three or more months duration):

A twelve months time charter for its 2016 built LPG carrier Eco Dominator, until Mar 2026.
A twelve months time charter extension for its 2016 built LPG carrier Eco Nical, until May 2026.
A six months time charter extension for the 2012 built LPG carrier Gas Esco, until Sep 2025.

As of June 2025, the Company has total contracted revenues of approximately $165 million.

As of June 2025, for the remainder of the year, the Company has circa 70% of fleet days secured under period contracts and contracted revenues of approximately $72 million.

In April 2025, the Company entered into an agreement to sell the vessel Gas Cerberus to a third party, with delivery expected in the second quarter of 2025. The vessel is debt-free, and the full proceeds from the sale will contribute to the Company’s liquidity position.

The Company has agreed in principle to purchase back from one of its joint venture partners the remaining share (49.9%) which it does not already own in the two vessels Eco Lucidity and Gas Haralambos. The transaction is subject to entry into definitive documentation and customary conditions and is expected to take place within June 2025. Following this transaction, these two vessels will be consolidated within the fully owned fleet of the Company and only one vessel will remain in a JV.

Board Chairman Michael Jolliffe Commented

The results that were announced today point to a strong start to the year and underpin our confidence in sustaining the momentum we have built over the last years, throughout 2025. It is no doubt a period of uncertainty and in such periods, among other things, there is reluctance by charterers to commit longer term. With the latest developments, we expect trade flows to normalize and sentiment to improve as the fundamentals of LPG shipping continue to be positive. In this volatile environment StealthGas remains steadfast in its strategy and has all but eliminated its financial risk, being net debt free after having made over $50 million in debt repayments during this year and having 27 out of 28 vessels unencumbered. At the same time in order to return value to our shareholders, we have begun buying back shares, spending $1.8 million in share repurchases since March. Overall under the current program the Company has spent over $21.2 million in share repurchases since June 2023.

Conference Call details:

On May 28, 2025 at 10:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.

https://register-conf.media-server.com/register/BI2ab472844539410f8650314c8df8fdaf

Slides and audio webcast:
There will also be a live and then archived webcast of the conference call, through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About STEALTHGAS INC.

StealthGas Inc. is a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry. StealthGas Inc. has a fleet of 31 LPG carriers, including three Joint Venture vessels in the water. These LPG vessels have a total capacity of 349,170 cubic meters (cbm). StealthGas Inc.’s shares are listed on the Nasdaq Global Select Market and trade under the symbol “GASS.”
Visit our website at www.stealthgas.com

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, geopolitical conditions, including any trade disruptions resulting from tariffs and other protectionist measures imposed by the United States or other countries, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in STEALTHGAS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, the conflict in Israel and Gaza, potential disruption of shipping routes due to ongoing attacks by Houthis in the Red Sea and Gulf of Aden or accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission.

Fleet List
For information on our fleet and further information:
Visit our website at www.stealthgas.com

Fleet Data:
The following key indicators highlight the Company’s operating performance during the periods ended March 31, 2024 and 2025.

FLEET DATA	Q1 2024	Q1 2025
Average number of vessels (1)	27.04	28.00
Period end number of owned vessels in fleet	27	28
Total calendar days for fleet (2)	2,461	2,520
Total voyage days for fleet (3)	2,439	2,500
Fleet utilization (4)	99.1%	99.2%
Total charter days for fleet (5)	2,232	2,118
Total spot market days for fleet (6)	207	382
Fleet operational utilization (7)	97.7%	94.0%

1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.
2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.
3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.
4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days and is determined by dividing voyage days by fleet calendar days for the relevant period.
5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.
6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.
7) Fleet operational utilization is the percentage of time that our vessels generated revenue and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period.

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income before loss/gain on derivatives excluding swap interest paid/received, impairment loss, net gain/loss on sale of vessels and share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, impairment loss, net gain/loss on sale of vessels, share based compensation and loss/gain on derivatives.

Adjusted EPS represents Adjusted net income divided by the weighted average number of shares.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

(Expressed in United States Dollars, except number of shares)	Three Months Period Ended March 31st,
	2024		2025
Net Income – Adjusted Net Income
Net income	17,729,716		14,107,680
Less gain on derivatives	(99,286	)	—
Plus swap interest received	208,127		—
Less gain on sale of vessels, net	(46,384	)	—
Plus impairment loss	—		488,400
Plus share based compensation	1,345,409		1,540,402
Adjusted Net Income	19,137,582		16,136,482

Net income – EBITDA
Net income	17,729,716		14,107,680
Plus interest and finance costs	3,169,061		1,415,605
Less interest income	(753,396	)	(752,471	)
Plus depreciation	6,492,376		6,653,460
EBITDA	26,637,757		21,424,274

Net income – Adjusted EBITDA
Net income	17,729,716		14,107,680
Less gain on derivatives	(99,286	)	—
Less gain on sale of vessels, net	(46,384	)	—
Plus impairment loss	—		488,400
Plus share based compensation	1,345,409		1,540,402
Plus interest and finance costs	3,169,061		1,415,605
Less interest income	(753,396	)	(752,471	)
Plus depreciation	6,492,376		6,653,460
Adjusted EBITDA	27,837,496		23,453,076

EPS – Adjusted EPS
Net income	17,729,716		14,107,680
Adjusted net income	19,137,582		16,136,482
Weighted average number of shares, basic	35,119,500		35,725,720
EPS – Basic	0.49		0.38
Adjusted EPS – Basic	0.53		0.44

StealthGas Inc.
Unaudited Condensed Consolidated Statements of Income
(Expressed in United States Dollars, except for number of shares)

		Three Months Period Ended March 31,
		2024		2025

Revenues
	Revenues	41,563,908		42,025,987

Expenses
	Voyage expenses	2,345,200		4,573,956
	Voyage expenses – related party	513,247		518,440
	Vessels’ operating expenses	11,235,359		13,282,235
	Vessels’ operating expenses – related party	241,500		228,200
	Drydocking costs	–		412,620
	Management fees – related party	1,053,719		1,080,001
	General and administrative expenses	2,213,853		2,165,709
	Depreciation	6,492,376		6,653,460
	Impairment loss	–		488,400
	Net gain on sale of vessels	(46,384	)	–
Total expenses		24,048,870		29,403,021

Income from operations		17,515,038		12,622,966

Other (expenses)/income
	Interest and finance costs	(3,169,061	)	(1,415,605	)
	(Loss)/gain on derivatives	99,286		–
	Interest income	753,396		752,471
	Foreign exchange (loss)/gain	(49,044	)	(26,484	)
Other expenses, net		(2,365,423	)	(689,618	)

Income before equity in earnings of investees		15,149,615		11,933,348
Equity earnings in joint ventures		2,580,101		2,174,332
Net Income		17,729,716		14,107,680

Earnings per share
– Basic		0.49		0.38
– Diluted		0.49		0.39

Weighted average number of shares
– Basic		35,119,500		35,725,720
– Diluted		35,247,529		35,764,990

StealthGas Inc.
Unaudited Condensed Consolidated Balance Sheets
(Expressed in United States Dollars)

		December 31,	March 31,
		2024	2025

Assets
Current assets
	Cash and cash equivalents	80,653,398	74,392,306
	Trade and other receivables	6,156,300	7,253,738
	Other current assets	193,265	422,168
	Claims receivable	55,475	55,475
	Inventories	3,891,147	3,198,028
	Advances and prepayments	733,212	549,263
	Fair value of derivatives	387,608	280,577
Total current assets		92,070,405	86,151,555

Non current assets
	Operating lease right-of-use assets	—	202,362
	Vessels, net	608,214,416	601,072,556
	Other receivables	370,053	237,561
	Restricted cash	3,867,752	2,734,442
	Investments in joint ventures	27,717,238	27,257,570
Total non current assets		640,169,459	631,504,491
Total assets		732,239,864	717,656,046

Liabilities and Stockholders’ Equity
Current liabilities
	Payable to related parties	388,130	3,039,119
	Trade accounts payable	10,994,434	10,485,931
	Accrued liabilities	4,922,587	5,119,206
	Operating lease liabilities	—	120,938
	Deferred income	4,304,667	5,882,276
	Current portion of long-term debt	23,333,814	20,722,094
Total current liabilities		43,943,632	45,369,564

Non current liabilities
	Operating lease liabilities	—	81,424
	Deferred income	213,563	586,577
	Long-term debt	61,555,855	30,251,709
Total non current liabilities		61,769,418	30,919,710
Total liabilities		105,713,050	76,289,274

Commitments and contingencies

Stockholders’ equity
	Capital stock	370,414	371,664
	Treasury stock	—	(1,057,343	)
	Additional paid-in capital	409,912,934	411,808,336
	Retained earnings	215,855,858	229,963,538
	Accumulated other comprehensive income	387,608	280,577
Total stockholders’ equity		626,526,814	641,366,772
Total liabilities and stockholders’ equity		732,239,864	717,656,046

StealthGas Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Expressed in United States Dollars)

		Three Months Period Ended March 31,
		2024		2025

Cash flows from operating activities
	Net income for the period	17,729,716		14,107,680

Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation	6,492,376		6,653,460
	Amortization of deferred finance charges	258,295		508,464
	Amortization of operating lease right-of-use assets	24,745		29,194
	Share based compensation	1,345,409		1,540,402
	Change in fair value of derivatives	108,840		—
	Proceeds from disposal of interest rate swaps	1,018,000		—
	Equity earnings in joint ventures	(2,580,101	)	(2,174,332	)
	Dividends received from joint ventures	–		2,634,000
	Impairment loss	–		488,400
	Gain on sale of vessels	(46,384	)	—
Changes in operating assets and liabilities:
	(Increase)/decrease in
	Trade and other receivables	(35,143	)	(964,946	)
	Other current assets	129,193		(228,903	)
	Inventories	353,756		693,119
	Changes in operating lease liabilities	(24,745	)	(29,194	)
	Advances and prepayments	(159,743	)	183,949
	Increase/(decrease) in
	Balances with related parties	(1,390,625	)	2,650,989
	Trade accounts payable	(475,368	)	(508,503	)
	Accrued liabilities	240,202		196,619
	Deferred income	688,600		1,950,623
Net cash provided by operating activities		23,677,023		27,731,021

Cash flows from investing activities
	Proceeds from sale of vessels, net	34,679,584		—
	Acquisition and improvements of vessels	(96,413,470	)	—
	Advances to joint ventures	(1,705	)	—
Net cash used in investing activities		(61,735,591	)	—

Cash flows from financing activities
	Proceeds from exercise of stock options	356,250		356,250
	Stock repurchase	(338,176	)	(1,057,343	)
	Deferred finance charges paid	(22,167	)	—
	Advances to joint ventures	(11,848	)	—
	Loan repayments	(32,045,235	)	(34,424,330	)
	Proceeds from long-term debt	70,000,000		—
Net cash provided by/(used in) financing activities		37,938,824		(35,125,423	)

Net decrease in cash, cash equivalents and restricted cash		(119,744	)	(7,394,402	)
Cash, cash equivalents and restricted cash at beginning of period		83,755,701		84,521,150
Cash, cash equivalents and restricted cash at end of period		83,635,957		77,126,748
Cash breakdown
	Cash and cash equivalents	77,085,417		74,392,306
	Restricted cash, current	—		—
	Restricted cash, non current	6,550,540		2,734,442
Total cash, cash equivalents and restricted cash shown in the statements of cash flows		83,635,957		77,126,748

The MIL Network –

May 29, 2025

MIL-OSI Asia-Pac: Departure tax bill passed

Source: Hong Kong Information Services

The Government today welcomed the passage of a bill by the Legislative Council to increase the air passenger departure tax from $120 to $200 per passenger, which would apply to air tickets purchased from October 1 onwards.

It is anticipated that government revenue will increase by about $1.6 billion per year.

The Government said the new tax rate, which was proposed in the recent Budget, has struck a balance between raising revenue and minimising the impact on passengers when considering increasing the departure tax.

It added that the impact of the increase on the overall cost of travelling for air passengers is minimal.

The Air Passenger Departure Tax (Amendment) Bill 2025 will be published in a Gazette notice on June 6.

MIL OSI Asia Pacific News –

May 29, 2025
MIL-OSI: Signing Day Sports Progresses Transaction and Executes Definitive Agreement with BlockchAIn Digital Infrastructure, a Profitable Data Hosting Company

Source: GlobeNewswire (MIL-OSI)

Proposed business combination will create a public company engaged in Crypto Mining, Artificial Intelligence (“AI”), and High-Performance Computing (“HPC”) Data Hosting Markets

BlockchAIn Digital Infrastructure Generated Audited Revenue of $26.8 million and Net Income of $5.7 million in 2024

Includes an Earnout if BlockchAIn Digital Infrastructure achieves or exceeds EBITDA of $25 million for 2026

Transaction to be completed at a significant premium to SGN’s current stock price

SCOTTSDALE, AZ, May 28, 2025 (GLOBE NEWSWIRE) — Signing Day Sports, Inc. (“Signing Day Sports” or the “Company”) (NYSE American: SGN), the developer of the Signing Day Sports app and platform to aid high school athletes in the recruitment process, today announced the signing of a definitive business combination agreement (“Business Combination Agreement” or “BCA”) to acquire 100% of the issued and outstanding membership interest of One Blockchain LLC (“One Blockchain”) (the operating affiliate company of BlockchAIn Digital Infrastructure) (One Blockchain and BlockchAIn Digital Infrastructure collectively, “blockchAIn Digital Infrastructure” or “blockchAIn DI”) which will operate a crypto mining, AI and HPC data hosting company with plans for 200MW in total power capacity from facilities in South Carolina and Texas. The proposed transaction was previously announced on April 14, 2025 following the signing of a non-binding letter of intent.

The transaction will be effected through a holding company structure, whereby Signing Day Sports and One Blockchain will become subsidiaries of BlockchAIn Digital Infrastructure, Inc. (“PubCo”). The transaction between One Blockchain and Signing Day Sports is expected to result in the combined company being traded on the NYSE American. Signing Day Sports will not be required to make any cash payment to One Blockchain or its securityholders in connection with the transaction. One Blockchain will continue to operate under blockchAIn DI’s management team led by Chairman and CEO Jerry Tang.

In 2024, blockchAIn Digital Infrastructure generated audited revenue of approximately $26.8 million and net income of approximately $5.7 million.

The market for digital infrastructure—including crypto mining, HPC, and AI-related computing—is evolving rapidly as demand for energy-efficient processing power continues to grow. Amid increasing sustainability standards and renewed emphasis on domestic infrastructure, blockchAIn Digital Infrastructure is positioned to pursue opportunities across a wide range of compute-intensive applications.

blockchAIn Digital Infrastructure’s current operations include a 40 MW crypto mining hosting facility in South Carolina with expansion capability to 50 MW for third-party crypto miners in South Carolina, subject to utility approval. blockchAIn Digital Infrastructure anticipates transitioning to internally owning and mining crypto currency at their South Carolina facility in late 2025 or early 2026, to facilitate revenue and earnings growth. blockchAIn Digital Infrastructure is also in the process of commissioning a new 150MW crypto mining, AI and HPC data hosting facility in Texas with favorable economics with 34.5kV of interconnectivity to the grid for activation in late 2026. The Texas facility can be modularly built providing flexibility for crypto mining and/or AI and HPC data hosting activities. It is currently anticipated that the first 100MW will be initially focused on internally owned crypto mining operations and the remaining 50MW of capacity used for AI and HPC data hosting. This capital efficient and flexible modular business model will provide blockchAIn DI with optionality to pursue different revenue mixes as the crypto mining, AI and HPC markets continue to develop.

Signing Day Sports views the proposed transaction as a compelling opportunity to enhance its platform by combining with a technology-driven business with strong fundamentals and scalable infrastructure.

Danny Nelson, Chief Executive Officer of Signing Day Sports, stated, “This transaction marks an exciting new chapter for Signing Day Sports, which we are confident has potential to bring substantial value to the stakeholders of both parties. blockchAIn DI’s scalable, cash-flowing bitcoin mining and AI data center platform positions the combined company to capitalize on the fast-growing HPC hosting market. With a 40 MW mining site in South Carolina with 10 MW expansion capacity and the significant upside potential resulting from the planned commissioning of a new facility in Texas, blockchAIn Digital Infrastructure is strategically positioned to meet the growing HPC workload demands, and we could not be more thrilled to deliver this unique growth opportunity to our shareholders.”

Jerry Tang, Chief Executive Officer of One Blockchain, added, “We are excited about the proposed transaction between blockchAIn Digital Infrastructure and Signing Day Sports, and the significant potential for value creation for both parties. In only a few short years since our inception, blockchAIn Digital Infrastructure has experienced rapid growth scaling to approximately $26.8 million in revenue and approximately $5.7 million in net income in 2024. Supported by our cash flow generation, we are positioned to become a leader in providing and operating sustainable, blockchain computing infrastructure and progress our significant growth goals forward. In the near term, blockchAIn Digital Infrastructure will look to bring bitcoin mining in-house, expand our South Carolina facility to 50MW, and build out our proposed 150MW facility in Texas to support the large demand for hosting services driven by various AI and mining applications. The business combination with Signing Day Sports will enable us to accelerate our robust growth in the public markets, and we look forward to executing on our business plan to drive value for all shareholders.”

Terms of the Transaction

The business combination will be effectuated through a holding company structure, whereby Signing Day Sports and One Blockchain will become subsidiaries of PubCo through merger transactions. Under the BCA, the consideration to be paid at closing to the securityholders of One Blockchain will be comprised of PubCo common shares with a value of approximately $215.0 million, subject to an exchange ratio and other certain adjustments, at an implied diluted value per share for PubCo of $5.12 (including adjustment as applicable for exchange listing purposes). Upon the closing of the business combination, the stock held by the stockholders of Signing Day Sports immediately before the closing of the transaction will be converted into the right to receive approximately 8.5% of the outstanding common stock of the combined company, and the equity securities of One Blockchain held by One Blockchain’s equity securityholders immediately before the closing of the transaction will be converted into the right to receive approximately 91.5% of the outstanding common shares of the combined company before fees and commissions to third parties. The board of directors of PubCo post-transaction will be comprised of no less than five (5) and no greater than seven (7) directors. At least one director will be designated by Signing Day Sports, and One Blockchain will designate the remaining directors.

The BCA also includes an earnout, in which additional PubCo shares equaling 11.628% of the total number of shares of PubCo issued to One Blockchain’s securityholders at closing will be issued to such former One Blockchain securityholders (the “Earnout Shares”). The Earnout Shares will be issued if PubCo achieves or exceeds net income plus interest, taxes, depreciation and amortization (“EBITDA”) of $25 million for the fiscal year ending December 31, 2026.

The boards of both companies have unanimously approved the signing of the BCA. The proposed transaction is expected to close late in the second half of 2025, subject to satisfying certain customary closing conditions, including the receipt of approvals from Signing Day Sports’ shareholders and the listing of PubCo registered common shares on the NYSE American.

The Business Combination Agreement contains customary representations, warranties and covenants made by Signing Day Sports and One Blockchain, including covenants that both parties use their commercially reasonably efforts to cause the transactions contemplated by the agreement to be completed, regarding obtaining the requisite approval of Signing Day Sports’ shareholders, regarding indemnification of directors and officers, and regarding Signing Day Sports’ and One Blockchain’s conduct of their respective businesses between the date of signing of the BCA and the closing. The BCA also contains certain termination rights for both Signing Day Sports and One Blockchain.

The Signing Day Sports board of directors has recommended to Signing Day Sports shareholders that they vote to approve the BCA and the transaction. Signing Day Sports also received a fairness opinion in connection with the transaction.

A more complete description of the terms of and conditions of the proposed transaction and related matters will be included in a current report on Form 8-K to be filed by Signing Day Sports with the U.S. Securities and Exchange Commission (“SEC”). A copy of the BCA will be attached as an exhibit to Form 8-K. All parties desiring details regarding the terms and conditions of the proposed transaction are urged to review that Form 8-K, and the exhibits attached thereto, which will be available on the SEC’s website found at www.sec.gov.

Advisors

Advisors to the transaction include Maxim Group LLC, which is serving as exclusive financial advisor to blockchAIn Digital Infrastructure. Loeb & Loeb LLP is serving as counsel to blockchAIn Digital Infrastructure. Bevilacqua PLLC is serving as counsel to Signing Day Sports.

Signing Day Sports

Signing Day Sports’ mission is to help student-athletes achieve their goal of playing college sports. Signing Day Sports’ app allows student-athletes to build their Signing Day Sports’ recruitment profile, which includes information college coaches need to evaluate and verify them through video technology. For more information on Signing Day Sports, go to https://bit.ly/SigningDaySports.

Additional Information and Where to Find It

In connection with the proposed business combination, PubCo plans to file or cause to be filed relevant materials with the SEC, including a registration statement on Form S-4 (the “Registration Statement”) that will contain a proxy statement of Signing Day Sports and a prospectus for registration of shares of PubCo. The Registration Statement has not been filed with or declared effective by the SEC. Following and subject to the Registration Statement being declared effective by the SEC, its definitive proxy statement/prospectus would be mailed or otherwise disseminated to Signing Day Sports stockholders. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SECURITY HOLDERS OF SIGNING DAY SPORTS ARE URGED TO READ THESE MATERIALS CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT ONE BLOCKCHAIN, SIGNING DAY SPORTS, THE PROPOSED BUSINESS COMBINATION, AND RELATED MATTERS. The proxy statement/prospectus and other relevant materials (when they become available), and any other documents filed by PubCo and Signing Day Sports with the SEC, may be obtained free of charge at the SEC website at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Signing Day Sports by directing a written request to: Signing Day Sports, Inc., 8355 East Hartford Rd., Suite 100, Scottsdale, AZ 85255. Investors and security holders are urged to read the proxy statement/prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed business combination.

Participants in the Solicitation

Signing Day Sports, and its directors, executive officers and certain other members of management and employees may, under SEC rules, be deemed to be participants in the solicitation of proxies from the shareholders of Signing Day Sports with respect to the proposed business combination and related matters. Information about the directors and executive officers of Signing Day Sports, including their ownership of shares of Signing Day Sports common stock, is included in Signing Day Sports’ Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on April 11, 2025, and Signing Day Sports’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which was filed with the SEC on May 15, 2025. Additional information regarding the persons or entities who may be deemed participants in the solicitation of proxies from Signing Day Sports shareholders, including a description of their interests in the proposed business combination by security holdings or otherwise, will be included in the proxy statement/prospectus and other relevant documents to be filed with the SEC when they become available. The managers and officers of One Blockchain do not currently hold any interests, by security holdings or otherwise, in Signing Day Sports.

No Offer or Solicitation

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such other jurisdiction. No offering of securities in connection with the proposed business combination shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Forward-Looking Statements

This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, including without limitation, the parties’ ability to enter into definitive agreements and complete the transaction, the parties’ ability to integrate their respective businesses into a combined publicly listed company post-merger, the ability of the parties to obtain all necessary consents and approvals in connection with the transaction, obtain NYSE American clearance of a listing application in connection with the transaction, the parties’ ability to obtain their respective equity securityholders’ approval, obtain sufficient funding to maintain operations and develop additional services and offerings, market acceptance of the parties’ current products and services and planned offerings, competition from existing or new offerings that may emerge, impacts from strategic changes to the parties’ business on net sales, revenues, income from continuing operations, or other results of operations, the parties’ ability to attract new users and customers, the parties’ ability to retain or obtain intellectual property rights, the parties’ ability to adequately support future growth, the parties’ ability to comply with user data privacy laws and other current or anticipated legal requirements, and the parties’ ability to attract and retain key personnel to manage their business effectively. These risks, uncertainties and other factors are expected to be further described in a proxy statement/prospectus to be filed with the Securities and Exchange Commission relating to this transaction. See also the section titled “Risk Factors” in the Company’s periodic reports which are filed with the Securities and Exchange Commission. These risks, uncertainties and other factors are, in some cases, beyond the parties’ control and could materially affect results. If one or more of these risks, uncertainties or other factors become applicable, or if these underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. All subsequent written and oral forward-looking statements concerning Signing Day Sports, One Blockchain, or any of their affiliates, or other matters and attributable to Signing Day Sports, One Blockchain, any of their affiliates, or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

Investor Contacts:
Crescendo Communications, LLC
212-671-1020
SGN@crescendo-ir.com

The MIL Network –

May 29, 2025
MIL-OSI Asia-Pac: Toll changes set to be implemented

Source: Hong Kong Information Services

The Government will substantially reduce tolls when it takes over the Tai Lam Tunnel (TLT) at 0.00am on Saturday.

In addition, the HKeToll free-flow tolling service will begin from 5am on the same day.

Outlining the takeover arrangements today, the Transport Department said that the TLT will briefly cease operating for five minutes at 0.00am on May 31 to facilitate the updating of toll collection facilities. Thereafter, manual or Autotoll toll collections will be in operation until 3am.

From 3am to 5am, the tunnel will be fully closed for switchover works. It will reopen at 5am, when motorists can start using HKeToll without having to stop or queue to make payments.

As May 31 falls on a public holiday, fixed tolls will be applied throughout the day for private cars and motorcycles, of $18 and $7.2 respectively. The same fees also apply on Sundays.

Starting from June 2, tolls for private cars during the peak, normal and off-peak time slots from Monday to Saturday will be $45, $30 and $18 respectively.

For motorcycles, the toll for all time slots is set at 40% of the private car toll, which is between $7.2 and $18.

Taxis and other commercial vehicles, such as goods vehicles and buses, will continue to have a fixed toll on all days, set at $28 for taxis and $43 for other commercial vehicles.

The new tolls for all vehicle types will be lower than the existing tolls by between 22% and 80%, the department highlighted.

To facilitate the launch of HKeToll, temporary traffic and transport arrangements will take place in phases in the tunnel vicinity from 1am on May 31, with the tunnel and all slip road entrances being fully closed from 3am to 5am. Motorists should opt for Tuen Mun Road during the full closure.

During the tunnel’s temporary closure, the bus stops at the toll plaza will be suspended. As a result, three overnight bus routes – namely KMB Route Nos. N269 and N368, and Long Win Bus Route No. NA43 – will be diverted via Yuen Long Highway and Tuen Mun Road. Temporary bus stops will be set up at the “Tuen Mun Road Bus-Bus Interchange”.

MIL OSI Asia Pacific News –

May 28, 2025
MIL-OSI Asia-Pac: Anti-tax evasion bill passed

Source: Hong Kong Information Services

The Hong Kong Special Administrative Region Government today welcomed the Legislative Council’s passage of a bill which seeks to tackle tax evasion risks arising from the digitalisation of the economy.

The Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Bill 2024, formulated in accordance with the Base Erosion & Profit Shifting 2.0 (BEPS 2.0) package promulgated by the Organisation for Economic Co-operation & Development, introduces the global minimum tax (GMT) and the Hong Kong minimum top-up tax (HKMTT) starting January 1, 2025.

It is estimated that the new regimes will bring in an additional revenue of about $15 billion per year from 2027-28 to the Hong Kong SAR Government.

Secretary for Financial Services & the Treasury Christopher Hui said the implementation of the GMT and the HKMTT highlights Hong Kong’s staunch support to international co-operation in tackling cross-border tax evasion, and safeguards Hong Kong’s taxing rights.

“With the 15% GMT for in-scope multinational enterprise (MNE) groups in place, countries and regions can no longer compete for capital and investment by simply lowering their corporate income tax rates.

“With a fairer global taxation environment, our unique advantages such as ‘one country, two systems’, excellent connectivity, first-class infrastructure, mature financial markets, quality talent pools, East-meets-West vibes etc will become even more accentuated to showcase Hong Kong as a premier destination for doing business.”

Under BEPS 2.0, MNE groups with an annual consolidated revenue of 750 million euros or above in at least two of the four fiscal years immediately preceding the current fiscal year will need to pay a GMT of at least 15% on profits derived from every jurisdiction in which they operate.

By imposing the HKMTT, the Hong Kong SAR Government will have the first priority in collecting top-up tax from entities of an MNE group with an effective tax rate (ETR) in Hong Kong below 15%, in order to raise the ETR to 15%. Otherwise, the top-up tax may be collected by other BEPS 2.0-implementing jurisdictions in which the group also operates. Moreover, Hong Kong’s taxing rights would then be ceded to other jurisdictions.

The Hong Kong SAR Government added that the GMT and HKMTT regimes have incorporated a number of features to facilitate compliance by in-scope MNE groups.

The Inland Revenue Department has set up a dedicated team to provide technical support and answer enquiries about BEPS 2.0. The department will also publish online guidance addressing common concerns.

MIL OSI Asia Pacific News –

May 28, 2025
MIL-OSI Asia-Pac: Government welcomes passage of Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Bill 2024

Source: Hong Kong Government special administrative region

Government welcomes passage of Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Bill 2024
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, “The implementation of the GMT and the HKMTT highlights Hong Kong’s staunch support to international co-operation in tackling cross-border tax evasion, and safeguards Hong Kong’s taxing rights. With the 15 per cent GMT for in-scope multinational enterprise (MNE) groups in place, countries and regions can no longer compete for capital and investment by simply lowering their corporate income tax rates. With a fairer global taxation environment, our unique advantages such as the ‘one country, two systems’, excellent connectivity, first-class infrastructure, mature financial markets, quality talent pools, East-meets-West vibes, etc will become even more accentuated to showcase Hong Kong as a premier destination for doing business.”

Under BEPS 2.0, MNE groups with an annual consolidated revenue of 750 million euros or above in at least two of the four fiscal years immediately preceding the current fiscal year (in-scope MNE groups) will need to pay the GMT of at least 15 per cent on profits derived from every jurisdiction in which they operate. With the implementation of the HKMTT, the Government of the Hong Kong Special Administrative Region (HKSARG) will have the first priority in collecting top-up tax from entities of in-scope MNE groups with an effective tax rate (ETR) in Hong Kong below 15 per cent to raise it to 15 per cent. Otherwise, the relevant top-up tax may be collected by other BEPS 2.0-implementing jurisdictions in which the group also operates. Hong Kong’s taxing rights would then be ceded to other jurisdictions. It is estimated that the new regimes will bring in an additional revenue of about $15 billion per year from 2027-28 to the HKSARG.

To facilitate compliance by in-scope MNE groups, taking account of stakeholders’ views, the GMT and HKMTT regimes have incorporated various features, including:The Inland Revenue Department (IRD) has set up a dedicated team to provide technical support and answer enquiries with regard to BEPS 2.0. They will also publish online guidance addressing common concerns.

More details on the GMT and the HKMTT are available at the IRD’s dedicated webpage (www.ird.gov.hk/eng/tax/bus_beps.htmIssued at HKT 17:00

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CategoriesMIL-OSI

MIL OSI Asia Pacific News –

May 28, 2025
MIL-OSI United Kingdom: Husband-and-wife directors banned after taking payments for singing waiters when company was insolvent
Source: United Kingdom – Executive Government & Departments

Press release

Husband-and-wife directors banned after taking payments for singing waiters when company was insolvent

The company continued to take deposits and full payments when it was insolvent
Frederick and Claire Reeves hired people who would burst into song at social events such as weddings

The husband-and-wife allowed their company, Solfan1 Limited, to trade when they knew it was in serious financial trouble and on the verge of liquidation

Couples continued to pay deposits or payments in full when Frederick and Claire Reeves knew there was no reasonable expectation the company could provide the services it offered

A husband-and-wife team who ran a business which provided surprise singing waiters at weddings have been banned as directors after taking payments from customers when the company was insolvent.

Frederick Reeves, 49, also known as Jamie Reeves, and his wife Claire Reeves, 41, ran Solfan1 Limited, which traded as The Best Singing Waiters.

The company provided performers who would blend in at weddings by pretending to be waiters before bursting into song at an agreed time.

However, the couple continued to take deposits, or payments in full, from 43 customers across the UK when they knew their company was unable to pay the debts it owed.

The couple, of Dickens Place, Wigan, have now been banned as company directors for eight years.

Solfan1 went into liquidation with liabilities of more than £700,000 and assets of just over £168,000.

Rob Clarke, Chief Investigator at the Insolvency Service, said:

Couples were left heartbroken after finding out the singing waiters they had paid to perform at their weddings would not show up.

Several of the customers who lost out financially were even offered discounts by the company to make their payment in full at the time of the booking.

The serious misconduct that both Frederick and Claire Reeves displayed falls short of the standards we expect of company directors which is why they have both been disqualified until May 2033.

Solfan1 was incorporated in November 2015. Claire Reeves was appointed as director in April 2018.

Frederick Reeves was never officially listed as director of the company but did not dispute that he acted in the capacity of a director when accepting his disqualification following Insolvency Service investigations.

The company was in financial difficulties in early 2024, having been served a winding-up petition from HM Revenue and Customs for tax debts of more than £200,000 at the start of February.

Following discussions with a private insolvency practitioner, the couple agreed on 28 March that Solfan1 should be placed into liquidation.

However, from then until the company went into liquidation on 1 May 2024, they continued to take deposits and full payments from new customers.

Analysis by investigators revealed that an estimated 43 customers made payments totalling £43,590 to the company during that period.

The Secretary of State for Business and Trade accepted disqualification undertakings from Frederick and Claire Reeves, and their bans both started on Wednesday 28 May. 

The undertakings prevent them from being involved in the promotion, formation or management of a company, without the permission of the court.

Further information

Frederick Reeves, also known as Jamie Reeves, is of Dickens Place, Wigan. His date of birth is 29 August 1975

Claire Reeves is of the same address. Her date of birth is 12 October 1983

Solfan1 Limited (company number 09874560)

Individuals subject to a disqualification order or undertaking are bound by a range of restrictions 

Further information about the work of the Insolvency Service, and how to complain about financial misconduct.

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Published 28 May 2025
MIL OSI United Kingdom –
May 28, 2025

MIL-OSI: SQM Reports Earnings for the Three Months Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

Highlights

SQM reported total revenues for the three months ended March 31, 2025 of US$1,036.6 million compared to total revenues of US$1,084.5 million for the same period last year.

Net income for the three months ended March 31, 2025 of US$137.5 million or US$0.48 per share, compared to net loss⁽¹⁾ of US$(869.5) million or US$(3.04) per share for the same period last year.

Record-high iodine sales price

Record first-quarter lithium sales volumes reflect strong market demand

SQM will hold a conference call to discuss these results on Wednesday, May 28, 2025 at 12:00pm EDT (12:00pm Chile time).

Participant Call link: https://register-conf.media-server.com/register/BI6159b9c8909e448cb6684738c5d43086

Webcast: https://edge.media-server.com/mmc/p/kosehsfr

SANTIAGO, Chile, May 28, 2025 (GLOBE NEWSWIRE) — Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported today net income for the three months ended March 31, 2025, of US$137.5 million or US$0.48 per share, compared to a loss¹ of US$(869.5) million or US$(3.04) per share reported for the same period last year.

Gross profit⁽²⁾ reached US$304.7 million (29.4% of revenues) for the three months ended March 31, 2025, lower than US$368.5 million (34.0% of revenues) recorded for the three months ended March 31, 2024. Revenues totaled US$1,036.6 million for the three months ended March 31, 2025, representing a decrease of 4.4% compared to US$1,084.5 million reported for the three months ended March 31, 2024.

SQM’s Chief Executive Officer, Ricardo Ramos, stated, “We closed the first quarter with strong growth—approximately 27% year-on-year—in lithium sales volumes. This is a reflection of the strong demand growth seen during the past few months, driven by the electric vehicle market, particularly in China, along with new demand coming from energy storage systems. Despite the fact that average prices reported during the first quarter 2025 were similar to those reported at the end of last year, we have seen lower prices during the past few weeks, as consequence of a continuously oversupplied market. Therefore, we expect lower realized prices in the second quarter of 2025.”

He continued: “On the production side, things are evolving as expected. The commissioning of the Mount Holland refinery plant is on track to deliver first product in the upcoming months, meanwhile we are actively selling spodumene concentrate in the market. In Chile we continue working to reach a total capacity of 240,000 metric tons of lithium carbonate and 100,000 metric tons of lithium hydroxide. All of this while we continue to process lithium sulfate in China.”

Mr. Ramos added: “We are very pleased with the performance of our iodine business. We continue to see steady market growth, driven by strong demand that is putting upward pressure on prices. However, global supply remains limited, and we expect demand to grow by 1% to 2% annually. In this context, we anticipate maintaining stable sales volumes while prices remain at elevated levels. Construction of our seawater pipeline is moving full steam ahead and will be key to unlocking additional production capacity in the coming years, in the meantime, we are focused on improving operational efficiencies to better respond to market needs².”

___________________________
¹ Includes the net effect of accounting adjustments for payments related to the specific mining tax for lithium exploitation as of March 31, 2024, for a total amount of US$1,097.6 million. See more in section Income Tax Expenses, below in the document.
² To see full press release please visit our website: https://ir.sqm.com/

The MIL Network –

May 28, 2025

MIL-Evening Report: Australia has elected its youngest senator. With Gen Z wielding more political power, is it a sign of things to come?

Source: The Conversation (Au and NZ) – By Philippa Collin, Professor of Political Sociology, Institute for Culture and Society, Western Sydney University

James Dimas/Facebook

It’s been 30 years since Natasha Stott Despoja became the youngest woman ever elected to the Australian Parliament. A 25-year-old Sarah Hanson-Young beat that record slightly in 2007.

Just over a decade later, the Australian Electoral Commission has confirmed another record-breaking young woman will be entering parliament: 21-year-old Charlotte Walker, in sixth Senate spot for South Australia.

Walker’s election is remarkable because she’s young and she’s female. Both these characteristics run against long-standing trends in Australian politics.

It’s also a reminder of why young people’s representation, both inside and outside parliament, matters for the whole society.

The result of a ‘youth quake’?

In the 2025 election, Gen Z and Millennial voters outnumbered older generations.

While we cannot treat the “youth vote” as a homogeneous bloc, expert analysis of the lower house votes shows young people contributed to the shift away from the Liberals and minor parties in specific seats.

This groundswell helped create a landslide of support for Labor, despite a primary vote of less than 35%.

Amid these changes, Walker joins a select few very young people ever elected to federal parliament.

Wyatt Roy remains the youngest person to take up a federal political post. He was just 20 years old when he entered the lower house in 2010, representing the Queensland seat of Longman for the Liberals.

In 2017, 23-year-old Jordan Steele-John became the youngest senator in Australia’s history, representing the Greens for Western Australia.

According to the Inter-Parliamentary Union, this track record puts Australia fifth among the top-ranked democracies for parliamentarians under 30 years old in the upper chamber.

While this suggests Australia does well in having young people represented, only 20.1% of the upper house is under the age of 45. For comparison, the youngest parliament in the world is in Bhutan, with 70.8% of upper house members aged under 45.

So, while they make up more than 30% of the electorate, Millennial and Gen Z Australians are far from proportionately represented.

The growing power of women?

Previous electoral study data indicates young people and women tend to be more progressive and more likely to vote for the Greens and progressive minor parties and candidates.

This, in combination with preference flows, almost certainly contributed significantly to the Labor result in both houses.

Another consequence is the 48th parliament will have more female representation than any other, with women making up more than half of the Senate and occupying a record 66 seats in the House of Representatives.

For the first time in Australia’s history, there will be a female majority in the Cabinet.

This is despite women still being less likely to join the major political parties or see themselves running for public office.

But my research over two decades indicates there is a surge of girls and young women leading and participating in non-traditional volunteering, social enterprises and social movements.

For example, in the leadership of the student climate movement in Australia, we see mostly young women taking charge of political organising and action. They express strong visions for a better, more equitable and viable world.

To maintain this positive move in young, female representation, political parties and the networks supporting independents would be wise to start engaging seriously with them.

Youth visibility matters

Greater youth representation in formal institutions of government is urgently needed. Young people in Australia face unprecedented levels of economic difficulty and systemic inequality.

The costs of tertiary education is higher than ever. Australia currently collects more in student loan repayments (A$4.9 billion) than it does from the Petroleum Resource Rent Tax ($2.3 billion).

It takes graduates, on average, five to 12 years to pay off current levels of student debt.

With the high costs of living, many students are living in poverty. Some universities and their leaders are calling for urgent policy change to address these challenges.

The youth unemployment rate (9%) is twice the national average of 4%.

For those who can afford to buy a house, the average age of first home purchase is now 36 years – more than a decade older than in the early 2000s. People are taking on bigger loans for longer. They also dedicate a greater proportion of their income to repayments.

It’s no wonder the mental health of young Australians is worse than ever.

These pressures can be even more significant for First Nations young people, who receive less recognition and representation in Australian politics and policy-making. This is despite the fact they can show enormous leadership in researching, documenting and proposing policy recommendations for all levels of government.

Such issues, along with systematic challenges – such as a grossly unequal tax system – mean Walker and her fellow parliamentarians have some big opportunities to drive change in areas that matter to all young people.

Perhaps the election of Charlotte Walker is a sign of things to come: a parliament and Australian democracy more attuned, more representative and more responsive to the needs of this generation of young people and those to come.

Philippa Collin receives funding from the Australian Research Council, batyr, Telstra Foundation, Google AU/NZ, Academy Of The Social Sciences In Australia and the Centre for Resilient and Inclusive Societies.

– ref. Australia has elected its youngest senator. With Gen Z wielding more political power, is it a sign of things to come? – https://theconversation.com/australia-has-elected-its-youngest-senator-with-gen-z-wielding-more-political-power-is-it-a-sign-of-things-to-come-257711

MIL OSI Analysis – EveningReport.nz –

May 28, 2025
MIL-OSI Australia: Interview – ABC Adelaide

Source: Murray Darling Basin Authority

JULES SCHILLER: Well as you know, the Albanese government was overwhelmingly re-elected and Jason Clare has resumed his ministry. He is the Federal Education Minister. He joins us now. Jason Clare, welcome.

JASON CLARE, MINISTER FOR EDUCATION: G’day, guys. Good to be here.

SCHILLER: Congratulations on your re-election and becoming Federal Education Minister again. Of course, one of the big ticket promises of your Government was to reduce the debts of HECS students by 20 per cent. When will they see that extra money in their pockets?

CLARE: This year there’s two things that we’ve got to do: one, we’ve got to pass a law through the Parliament to make this happen. And then the second thing is the Tax Office have to lop this off everyone’s debt. You’re right – one of the biggest promises we made in the campaign was to cut everyone’s student debt by 20 per cent, and that’s 3 million Aussies that might have a debt from uni or TAFE or somewhere else. And it will be the first bill that we introduce into the Parliament when Parliament sits for the first time in the last week of July.

What that legislation will do is cut everyone’s debt by 20 per cent and backdate that cut to this coming Saturday. And that’s important because every 1st of June in every year HECS debts or student debts get indexed. That 20 per cent cut will come into effect before that indexation effectively happens this Saturday, to make sure that we honour the promise we made, and we cut everyone’s debt by 20 per cent. Legislation, once that’s passed, getting the Tax Office to cut everyone’s debt by 20 per cent.

RORY McLAREN: What is the cost to the budget of this decision, Minister?

CLARE: The cost to the budget over the forward estimates, or the next four years, is about $700 million dollars. The cost over the longer term is around about $16 billion. We’re reducing the debt that’s owed by Australians to the Commonwealth over the next few decades by about $16 billion dollars. Now, what it means –

McLAREN: That’s not small. That’s not a small change to the federal budget at all.

CLARE: No, it’s not small. It’s not small. But when you think about the 3 million Australians – many of them in their 20s and 30s, they’ve just finished uni, they’re just moving out of home, they’ve got their first job, they want to buy a home, and they’ve got this big HECS debt that they’ve got to pay off. I think everyone listening will know somebody in this situation and perhaps will know that HECS debts are bigger today than they were when I went to uni, when many of us went to university – that by cutting this debt by 20 per cent, it’s going to help a lot of people get a good start in life, make it easier to get out there and buy their first home. The average debt today is about $27,000 and so what this will mean for someone in that situation is that their debt will be cut by about $5,500.

SONYA FELDHOFF: And while I’m sure they will be thrilled about that, they will then get it indexed again. And a lot of people question how fair the indexation side of things is. Is there any option to look at that?

CLARE: We’ve done that. One of the things that we did last year, because of rampant inflation, when inflation was raging around the world. It hit Australia and it hit HECS debts here in Australia. We saw HECS debts go up by 7 per cent in 2023. That wasn’t fair. Everybody with a HECS debt told us that, and so we passed legislation last year that said that HECS debts or student debts can’t go up by either the lowest of either inflation or wages.

So that change happened last year, and it meant that in December last year, everyone with a HECS debt would have seen their debts drop. We cut HECS debts by about $3 billion dollars last year because of that. So that’s an important change. Indexation is important because it means that when the Australian taxpayer lends you a dollar, you get that dollar back in real terms. But we’ve changed the formula to make it fairer.

SCHILLER: Jason Clare, can I ask you about the Job-ready Graduates Scheme? Now this was introduced by Dan Tehan, your predecessor, under the Morrison Government. It increased the contributions, HECS debts of arts students, society and culture degrees by around about 113 per cent. Considering a lot of these students are women who overwhelmingly voted for you in the federal election, it is seen as punitive because, you know, they’re earnings aren’t necessarily as much as STEM graduates. Will you reverse this decision?

CLARE: It’s one of the things that we’re looking at right now. You’re right – it was introduced by the former Liberal Government and didn’t work. If the intention was to reduce the number of people doing arts degrees, then that hasn’t happened. There’re more people studying arts degrees today than when they implemented this reform. And that’s because people pick the courses that they love, that they’re passionate about, that they want to do, not based on the price tag attached to it.

Fixing it is complex. What we have announced is that we’ll establish something called the Australian Tertiary Education Commission to help to drive long-term reform of our universities and our tertiary education system. It starts work on the 1st of July, so in just over a month’s time. And one of the tasks that we’ve asked them to look at is exactly this – to look at that Job-ready Graduates program and what change can happen.

Can I mention just quickly two other things, because there’s been a lot of attention on the cut to HECS by 20 per cent, and that’s what that bill that I introduce will do. But the bill will do two other things as well: it will change the amount of money that you have to earn before you start paying your debt back. At the moment you have to start paying it back once you earn $54,000 a year. That will be increased to $67,000 a year. And it will also reduce your annual repayments. For somebody on an income of $70,000 a year it will reduce the amount that you have to repay back to the Government every year by about $1,300 a year. It means more money in your pocket. And they were recommendations by Bruce Chapman, the architect of HECS who designed it with John Dawkins back in the 80s.

FELDHOFF: Just before we move on from the HECS debt, Federal Education Minister, I’ve got a question on the text line. I think you mentioned June 1st was the date that that would be backdated to?

CLARE: Yep.

FELDHOFF: So, I don’t think that applies to this person. What about those that just finished paying their HECS debt back? Do they get a refund? I guess hypothetically, what happens if you choose to pay the HECS debt, you know sometime after June 1st? Will they get the refund?

CLARE: People that have got a HECS debt today and they have a HECS debt next week, they’ll see the benefit of this. Obviously if your HECS debt has already been paid off today then a 20 per cent cut to zero is still zero.

FELDHOFF: But if you paid that off on June 2nd, for instance, you might get a refund?

CLARE: I’ll have to have a look at that. But what we want to do is make sure that everybody that’s got a HECS debt, a student debt now, and there’s 3 million of them right across the country, get the benefit of this cut by 20 per cent.

McLAREN: Minister, ahead of the federal election you managed to get a new funding agreement in place with states and territories for schools. It comes at a time when the latest NAPLAN results show one in three Australian school students is performing below literacy and numeracy benchmarks. How quickly can you turn that performance around in this term of government?

CLARE: This agreement that we’ve struck not just with the South Australian Government but every Government across the country is crucial. It makes good on what Whitlam was talking about in the 50s about needs-based funding for schools and what Gonski built as a formula but has never been implemented before. It’s about funding our schools properly but also tying that funding to practical and real reforms that are going to address the sort of things you’re talking about.

What NAPLAN really tells us is this – and it’s a test for students at school in year 3, year 5, year 7 and year 9 – and it tells us that about one in 10 children are below what we used to call the minimum standard, but it’s one in three children from poor families, from our outer suburbs, from our regions, Indigenous kids, who are below that minimum standard. And even more concerningly, what really concerns me, because there’s always going to be children who fall behind, what NAPLAN tells us is that 80 per cent of the children who are below the minimum standard in year 3 are still below the minimum standard when they’re 15 in year 9 – in other words, they’re not catching up.

What this funding is tied to are things like phonics checks, literacy checks in year 1 that South Australia did first, and the rest of the nation has followed. But also, numeracy checks in year 1 to identify the maths skills of students when they first start school, and South Australia is going to roll that out next year along with Victoria and New South Wales. And then when you identify the children through those checks that are behind, investing in things like catch-up tutoring where, if a child needs more individualised support, they get it by being taken out of a classroom of 25 or 30 –

McLAREN: But this is all going to take time, Minister, with respect. So how quickly are you hoping to see improvements in the results, as a result of the agreements you reached, including with Queensland back in March?

CLARE: There’s two things I want to see improvements in. I want to see improvements in results through things like that catch-up tutoring. I want to stress this point, because it’s an example of the sort of practical reforms that I think are necessary. We know that if a child gets taken out of a big class into individualised support with one or two other children 40 minutes a day, four days a week, they can learn as much in six months as they’d normally learn in 12 months. In other words, they catch up, and the sooner a child who needs extra support gets it, the better chance they have of catching up occurs.

But the other thing that we need to do is increase had number of kids finishing high school. 10 years ago, 83 per cent of young people at public high schools finished high school. Today it’s 73 per cent. It’s gone in the absolute wrong direction in public schools. We’ve got to turn that around. It’s more important to finish school today than it was when we were kids and then go on to TAFE or go on to uni, get the sort of skills for the jobs that are being created now and will be created in the future.

If we get this right, if the funding is invested in the right things that help kids catch up, they’re more likely to finish school, particularly kids from poor backgrounds and from the outer suburbs. And so, this is all connected. It doesn’t mean that you can click your fingers, pass a bill and it all gets fixed straight away; that’s not the way this works. But you’ve got to invest now in the right things to see an impact in the years ahead.

SCHILLER: You’re listening to Jason Clare, Federal Education Minister. It is 891 ABC Radio Adelaide’s Sonya, Jules and Rory for Breakfast at 13 minutes to 9. Jason Clare, can I ask you about civics in schools? I think we spoke to some people who literally voted – their basis of voting was who gave them a how-to-vote card first.

FELDHOFF: Yeah.

SCHILLER: Now, that’s not all –

FELDHOFF: And we don’t learn civics in school to a great extent.

SCHILLER: Yeah. That’s not all people, but the understanding of how local government, state government and federal government works you would have to say is not great at the moment. Do you think this is a discipline that needs to be more prominent in our education?

CLARE: We do learn it at schools. One of the things that worries me is I often find that kids in primary school have got a better grasp on this than kids in high school. It’s a big part of the curriculum in year 5 and year 6, and when I visit primary schools and I ask children about the way the Parliament works, you get the right answers. If I go and see students in year 9 or year 10, they’ve sometimes forgotten it. It’s not just what you learn in the classroom, it’s the opportunity to visit Parliament House, whether it’s in Adelaide or whether it’s in Canberra as well. We’ve cut the cost of those visits to make it easier for people not just from Canberra to visit Parliament House but from South Australia as well. I think last year about 3,500 students visited Canberra, get to visit the War Memorial as well. People don’t just learn in the classroom. If you can see it with your own eyes, I think it has an impact. But all of the evidence we’re getting is that young people don’t understand the way that our system of Government works as well as you’d like them to. And it’s the sort of thing we need to look at.

FELDHOFF: Yeah. So that will be a priority. Any others that you have over the next three years, given that it’s the first time we’ve spoken to you since you’re re-in the role?

CLARE: A couple of things. Obviously top priority is doing what we promised, delivering on the things that we committed to. So that’s the legislation we’ve talked about this morning – cutting student debt by 20 per cent. In schools, it’s the rollout of this big agreement, the billion dollars in South Australia but $16.5 billion across the country and the reforms that are tied to it.

I’m also responsible for early education as well. And so that includes the rollout of the 15 per cent pay rise for our early educators and building more early education centres in places where they don’t exist. We know that most of the brain develops before you even get to school and children who miss out start behind. And so those investments there are just as important.

FELDHOFF: Thank you for your time today. The Federal Education Minister Jason Clare.

MIL OSI News –

May 28, 2025
MIL-OSI: Azerion publishes Interim Unaudited Financial Results Q1 2025
Source: GlobeNewswire (MIL-OSI)

Quarterly Report Q1 2025

..

4th consecutive Q1 Year-on-Year growth

Highlights of Q1

Throughout Q1 2025 we have continued our multi-year focus on efficiency and profitability; favouring long-term economic decisions over short-term opportunities. We have continued to invest in the platform and this is reflected in the performance outlined below, resulting in several record achievements since our listing early 2022:
- Total Revenue of € 128.0 million in Q1 2025, up 7% from € 119.7 million in Q1 2024 and the 4th consecutive Q1 YoY revenue increase, mainly driven by higher spend across the Platform Segment particularly in AAA Game Distribution and the integration of past acquisitions, including The Moneytizer, Goldbach Austria and Produpress.
- Adjusted EBITDA in Q1 2025 of € 11.7 million, an increase of 19% as compared to € 9.8 million in Q1 2024, another 4th Q1 YoY increase in as many years, largely driven by increased profitability in both our Premium Games and Platform segments.
- EBITDA performance significantly improved to € 7.9 million as compared to € 4.7 million in Q1 2024, up 68% year over year as a result of synergies from acquisitions and continued focus on efficiency and profitability. For a detailed reconciliation of net income to adjusted EBITDA, please refer to Other information.
A key driver of this performance is the consistent execution of our consolidation and integration plan initiated in 2023. By strengthening our core technical systems and team structures, we’ve built a foundation that enables us to regularly launch new features and onboard partners more efficiently.
- Significant progress in advancing our product and technology roadmap, including the consolidation of Azerion’s ID Graph into one DMP, new features and automation for our DSP and SSP interfaces and setting the foundations for Agentic AI developments.
- Signed 80 new publishers and connected 6 additional SSPs, 3 new DSPs and 1 supplementary Data source to expand our digital audiences across Europe and the Americas.
- In parallel, we have designated investment and development resources to create Azerion Intelligence, a powerful Multi-Cloud and AI platform offering European businesses affordable access to open-source AI models, scalable cloud hosting, and a marketplace of AI-driven apps and agents tailored for digital marketing and publishing which was announced in Q2 2025. We see AI as significant opportunity to drive rapid and scalable revenue growth over the coming months and years.
Attachment
- Azerion Group N.V. –Interim Financial Results Q1 2025
The MIL Network –
May 28, 2025
MIL-OSI New Zealand: R&D Tax Credit Software

Source: Press Release Service

Headline: R&D Tax Credit Software

TaxTrex is one of the most advanced AI language models platform developed by Swanson Reed, designed to assist New Zealand businesses in efficiently claiming the Research and Development Tax Incentive (RDTI).

The post R&D Tax Credit Software first appeared on PR.co.nz.

MIL OSI New Zealand News –

May 28, 2025

Category: Taxation

Husband-and-wife directors banned after taking payments for singing waiters when company was insolvent

Further information

Share this page

Updates to this page

The result of a ‘youth quake’?

The growing power of women?

Youth visibility matters