Category: Transport

MIL-OSI Security: Montgomery Man Sentenced to Eight Years in Prison Following Federal Drug and Gun Convictions

Source: Office of United States Attorneys

Montgomery, Ala. – Today, Acting United States Attorney Kevin Davidson announced the sentencing of a Montgomery, Alabama man following his convictions on federal drug and gun charges. On March 4, 2025, 23-year-old Arthur Varcea Colvin, received a sentence of 96 months in prison. Following his prison sentence, Colvin will serve three years of supervised release. There is no parole in the federal system.

According to his indictment and other court records, on February 1, 2023, officers with the Montgomery Police Department observed the driver of a vehicle commit a traffic violation and conducted a traffic stop. Occupants of the vehicle included Colvin in the front passenger’s seat, 28-year-old Le’Anthony Washington in the driver’s seat, and another passenger in the rear seat. Officers developed a suspicion that the vehicle contained illegal narcotics and requested the three occupants exit the vehicle. During a search, law enforcement found three firearms, including a .40 caliber handgun under the driver’s seat, an AR-15 pistol under the front passenger’s seat, and a 9mm handgun on the back floorboard. Investigators also found over 400 grams of marijuana in the trunk. In addition, officers found a handgun and a small amount of marijuana on Colvin’s person.

On October 28, 2024, Colvin pleaded guilty to possession of marijuana with the intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. Washington has a previous felony conviction and is prohibited from possessing a firearm or ammunition. In October of last year, Washington pleaded guilty to being a felon in possession of a firearm. Washington received a sentence of 35 months in federal prison on January 31, 2025.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Montgomery Police Department investigated this case, which Assistant United States Attorney Michelle R. Turner prosecuted.

MIL Security OSI –

March 6, 2025
MIL-OSI Security: Okmulgee Couple Sentenced For Child Abuse And Child Neglect

Source: Office of United States Attorneys

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that John Ray Collins Jr., age 49, and Tambara Lorene Collins, age 38, of Okmulgee, Oklahoma, appeared in United States District Court for sentencing.

John Ray Collins Jr. was sentenced to 240 months in prison for one count of Attempted Murder, and 360 months each on two counts of Child Abuse, and 360 months for one count of Child Neglect. The terms of imprisonment will run concurrently for a total of 30 years imprisonment, to be followed by a five year term of supervised release.

Tambara Lorene Collins, age 38, of Okmulgee, Oklahoma, was sentenced to 216 months in prison per count on two counts of Child Abuse, and 216 months in prison for one count of Child Neglect. The terms of imprisonment will run concurrently for a total of 18 years imprisonment, to be followed by a five year term of supervised release.

The charges arose from an investigation by the Federal Bureau of Investigation, the Okmulgee County Sheriff’s Office, and the Muscogee (Creek) Nation Lighthorse Police.

On November 17, 2023, a federal jury convicted John Collins at trial of all counts. On October 24, 2023, Tambara Collins entered a guilty plea to two counts of child abuse and one count of child neglect.

According to investigators, between January 1, 2023, and June 12, 2023, John and Tambara Collins repeatedly abused and failed to protect two children in their care. The children sustained bruising and abrasions to the face, ears, back, legs, and feet. In mid-June, John Collins escalated his abuse, beating one of the children with a pipe. The child was then denied food, water, medical care, and sanitary living conditions. The child suffered head lacerations, internal bleeding, a broken arm, broken fingers, and traumatic skeletal muscle deterioration before rescuers were able to remove the children from the Collins residence.

The crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation, within the Eastern District of Oklahoma.

“The suffering these innocent children endured at the hands of two people who were supposed to love and care for them is horrific and unconscionable,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater. “The FBI is proud to have been part of the investigative team that helped put John and Tambara Collins behind prison bars where they undoubtedly belong.”

“The defendants subjected children in their care to unthinkable abuse and neglect, and I am thankful for the collaborative work of county, tribal, and federal investigators and federal prosecutors in securing convictions and significant sentences in this case,” said United States Attorney Christopher J. Wilson.

The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. The defendants will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

Assistant U.S. Attorneys Caila M. Cleary and Sarah McAmis represented the United States.

MIL Security OSI –

March 6, 2025
MIL-OSI Security: Former U.S. Postal Service Employee Sentenced to Federal Prison for His Involvement in Drug Trafficking Conspiracy

Source: Office of United States Attorneys

MONROE, La. – Willie Shanderek Shavon Woodard, 23, of Monroe, Louisiana, has been sentenced for his role in a drug trafficking conspiracy, announced Acting United States Attorney Alexander C. Van Hook. Woodard, a former U.S. Postal Service employee, was sentenced by Chief United States District Judge Terry A. Doughty to 108 months (9 years) in prison, followed by 3 years of supervised release.

The charges in this case stem from an investigation by law enforcement agents with the U.S. Postal Inspection Service (“USPIS”) into suspicious packages being sent through the U.S. Mail to addresses in Monroe. On October 27, 2022, agents intercepted two suspicious packages that were destined for two residences in Monroe from California. Search warrants were obtained for both packages and agents recovered five one-pound packages in each parcel which was determined to be a total of ten pounds of methamphetamine. One of the packages was addressed to a residence in Monroe which was an abandoned house on Woodard’s mail route.

In August of 2023, USPIS agents intercepted another package destined for the same abandoned house in Monroe on Woodard’s mail route. A search warrant was obtained for the second package and inside was approximately 2.2 pounds of marijuana. Agents removed the controlled substance and placed the package back into the normal mail stream to the address. On August 28, 2023, agents observed Woodard meet one of his co-defendants and place the same package in the trunk of the vehicle being driven by his co-defendant. Soon after, a traffic stop was conducted of the vehicle and law enforcement officers found the package in the trunk of the vehicle, as well as a Glock 19 pistol under the driver’s seat. Woodard and his co-defendant were both subsequently arrested.

Through their investigation, agents found numerous messages between Woodard and other co-defendants notifying them of the address where the suspicious package had been sent in Monroe. In addition, there were numerous messages from Woodard to his co-defendants wherein he provided addresses of houses on his mail route. Agents learned that several packages had been sent from the same address in California to those addresses in Monroe on numerous occasions.

Woodard was charged and pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and admitted to his involvement in the conspiracy.

The case was investigated by the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Louisiana State Police, and was prosecuted by Assistant United States Attorney J. Aaron Crawford and Special Assistant United States Attorney Catherine Semmes.

# # #

MIL Security OSI –

March 6, 2025
MIL-OSI Security: Fort Hall Man Sentenced to 5 Years for Robbery at Knifepoint

Source: Office of United States Attorneys

POCATELLO – Malik Marin Ish, 23, of Fort Hall, was sentenced to 5 years in prison for robbery, Acting U.S. Attorney Justin Whatcott announced today. Chief U.S. District Court Judge David C. Nye sentenced Ish on March 3, 2025, to 54.5 months in federal prison in addition to the 8.5 months of tribal jail time, which Ish served leading up to his sentencing.

According to court records, on February 19, 2024, Ish approached a man getting gasoline in his Jeep Cherokee at a gas station in Fort Hall and demanded the man’s vehicle at knifepoint. The man and Ish struggled for a time and Ish tried to stab him. Ish took the Jeep and crashed it a short distance away. Fort Hall Police officers located Ish later that day and recognized Ish as the robbery suspect, based on the unique red clothing he was wearing. Police officers also obtained video surveillance from the gas station, which showed Ish as the robber.

Chief Judge Nye also ordered Ish to serve three years of supervised release following his prison sentence. Ish pleaded guilty to the charge in December 2024. Ish will also concurrently serve 21 months for a supervised release violation from an earlier conviction.

Acting U.S. Attorney Whatcott thanked the Federal Bureau of Investigation and the Fort Hall Police Department for their joint investigation in this case. Assistant U.S. Attorney Jack Haycock prosecuted this case.

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MIL Security OSI –

March 6, 2025
MIL-OSI Security: FUGITIVE FIREARMS TRAFFICKER CAPTURED IN MEXICO AS PART OF OPERATION RIPSAW

Source: Office of United States Attorneys

Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced the arrest of fugitive Roland Munoz (age: 44), who was wanted for trafficking firearms from the United States to a Mexican cartel.

On September 21, 2021, along with five other defendants, Munoz was charged in a 12-count indictment with violations of 18 U.S.C. §§ 371 (conspiracy to violate the laws of the United States), 554 (smuggling goods from the United States), 922(a)(6), and 924(a)(2) (straw purchasing firearms), and 22 U.S.C. §§ 2778(b)(2) and 2778(c) and 22 C.F.R. §§ 121.1 and 127.1 (violation of the Arms Export Control Act and the International Traffic in Arms Regulations). In turn, the indictment was the result of a yearslong investigation called “Operation Ripsaw”and led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI).

The indictment charges a complex conspiracy to smuggle high-powered firearms from the United States to Mexico. According to court filings, Munoz led this conspiracy by recruiting straw purchasers of firearms in Wisconsin and other states, organizing couriers to transport those firearms and money across the nation, and arranging for smugglers to take the firearms across the border in Texas and provide them to a cartel in Mexico. The conspirators purchased and attempted to smuggle over 25 firearms. According to court records, many of those firearms were later recovered in Mexico, including a .50 caliber rifle which was recovered on December 12, 2020, after Mexican law enforcement authorities engaged a group of armed members of Cártel de Jalisco Nueva Generación (CJNG), a Mexican transnational criminal organization.

Munoz’s arrest was made in coordination with officials in Mexico and is the result of collaboration between the United States Marshals Service, ATF, and HSI.

If convicted of these offenses, Munoz faces a maximum of 20 years in prison and up to a $1 million fine. The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

As noted above, ATF and HSI investigated the case. Assistant United States Attorneys Philip T. Kovoor and Christopher Ladwig will prosecute the case in the United States District Court in Green Bay.

An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.

###

For further information contact:

Public Information Officer

Kenneth.Gales@usdoj.gov

(414) 297-1700

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MIL Security OSI –

March 6, 2025
MIL-OSI: Tech Expert Warns: 2025 Will Be a Crossroads Year for America—A New Era of Disruption and Opportunity
Source: GlobeNewswire (MIL-OSI)

NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — Tech expert James Altucher is issuing a stark warning: 2025 will be a defining crossroads for America—one that could either unlock historic new opportunities or leave millions struggling to catch up.

Dubbed “The Great Gain”, Altucher believes that the U.S. is entering a rare moment in history where massive economic and technological shifts will converge at the same time, forcing industries, businesses, and individuals to either adapt or be left behind. “For the first time in US history… Two major Wealth Drivers are on a collision course.”

According to Altucher, these two forces—a political and economic realignment combined with a peak in the nation’s financial cycle—are setting the stage for rapid, unpredictable change. “The first 365 days of Trump’s presidency will be remembered as… The best time to get rich in American history.”

A Defining Moment in Economic History

Altucher has made a career out of identifying major turning points before they happen. He predicted the rise of video streaming in the late 1990s, saw the social media explosion before Facebook’s IPO, and has been ahead of the curve on disruptive technologies and financial trends.

Now, he sees 2025 as another major inflection point—one that could either create immense new opportunities or leave many behind. “Technology is evolving at an exponential rate, and industries are being reshaped overnight.”

Altucher compares this shift to previous economic revolutions—those rare moments when industries and wealth were completely transformed: “The Industrial Revolution created unprecedented business empires. The dot-com boom built some of today’s biggest companies.”

But, he argues, 2025 will be even bigger. “The Great Gain is the FINAL major wealth-building opportunity of our lifetimes.”

What This Means for Everyday Americans

Altucher is urging Americans to prepare now, as this shift will create both massive winners and losers. He believes that for those who take action early, this period could bring a rare second chance to reshape their future.

“In our nation’s history… There have been only a few times… Where regular Americans could quickly gain enough wealth… To radically improve their standard of living.”

About James Altucher

James Altucher is a renowned entrepreneur, investor, and thought leader known for spotting emerging economic trends and breakthrough technologies long before they reach the mainstream.

Over his career, Altucher has:
- Built and sold multiple companies across finance, tech, and media
- Advised Fortune 500 corporations on economic trends and disruptive innovation
- Authored over 20 books, including Choose Yourself, Skip the Line, and The Rich Employee
- Been featured in leading media outlets, including CNBC, Yahoo Finance, and The New York Times
His podcast, The James Altucher Show, has been downloaded over 40 million times, featuring in-depth interviews with some of the world’s most influential entrepreneurs, investors, and visionaries.

Media Contact:
Derek Warren
Public Relations Manager
Paradigm Press Group
Email: dwarren@paradigmpressgroup.com

The MIL Network –
March 6, 2025
MIL-OSI: James Altucher Declares 2025 as ‘The Great Gain’—A New Era of Opportunity for Americans
Source: GlobeNewswire (MIL-OSI)

NEW YORK, March 05, 2025 (GLOBE NEWSWIRE) — Renowned entrepreneur, best-selling author, and economic visionary James Altucher has identified 2025 as a pivotal year for American prosperity, calling it “The Great Gain”—a moment in history where major economic and technological forces are converging to create new opportunities unlike anything seen before. “The first 365 days of Trump’s presidency will be remembered as… The best time to get rich in American history.”

Altucher argues that two major economic forces are colliding for the first time in history to create an unprecedented wave of opportunity. “For the first time in US history… Two major Wealth Drivers are on a collision course.”

A Once-in-a-Generation Moment

Altucher, known for his ability to forecast major economic and technological shifts, believes that 2025 will be remembered as one of the most transformative years in modern history. He compares it to past eras of rapid progress, such as the Industrial Revolution, the rise of Silicon Valley, and the early internet boom of the 1990s.

“The Industrial Revolution created unprecedented business empires. The dot-com boom built some of today’s biggest companies.”

According to Altucher, this moment is different from previous cycles because of the convergence of two Wealth Drivers:
1. A Political and Economic Shift – A radical move in the first 100 days of the new administration is set to open new doors for growth.
2. A Historical Economic Cycle – A peak in the 4-year wealth cycle, which “last time… turned more than 80,000 people into new millionaires.”
A Call to Action for Americans

Altucher urges Americans to stay ahead of these changes by recognizing the emerging trends that could redefine the economy. From career opportunities and entrepreneurship to advancements in automation and artificial intelligence, the coming months will present once-in-a-lifetime chances to adapt, grow, and thrive. “In our nation’s history… There have been only a few times… Where regular Americans could quickly gain enough wealth… To radically improve their standard of living.”

About James Altucher

James Altucher is not only a tech expert, he’s a former hedge fund manager and best-selling author. Altucher has also launched and sold multiple businesses and advised Fortune 500 companies. His work has been featured on Fox Business, CNBC, Yahoo Finance, The New York Times, and Business Insider.

His podcast, The James Altucher Show, has been downloaded over 40 million times, featuring guests such as Mark Cuban, Richard Branson, and Peter Thiel.

Media Contact:
Derek Warren
Public Relations Manager
Paradigm Press Group
Email: dwarren@paradigmpressgroup.com

The MIL Network –
March 6, 2025

MIL-OSI: Ring Energy Announces Fourth Quarter and Full Year 2024 Results, Year-End 2024 Proved Reserves, and 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

THE WOODLANDS, Texas, March 05, 2025 (GLOBE NEWSWIRE) — Ring Energy, Inc. (NYSE American: REI) (“Ring” or the “Company”) today reported operational and financial results for the fourth quarter and full year 2024, year-end 2024 proved reserves and provided 2025 operational and financial guidance.

Fourth Quarter 2024 Highlights

Recorded net income of $5.7 million, or $0.03 per diluted share;
Reported Adjusted Net Income¹ of $12.3 million, or $0.06 per diluted share;
Sold 19,658 barrels of oil equivalent per day (“Boe/d”), exceeding midpoint of guidance and 12,916 barrels of oil per day (“Bo/d”);
Held all-in cash operating costs¹ (on a Boe basis) substantially flat with Q3 2024;
Reduced total capital expenditures by 12% to $37.6 million as compared to Q3 2024;
Recorded Adjusted Cash Flow from Operations¹ of $42.2 million and delivered Adjusted Free Cash Flow¹ of $4.7 million, remaining cash flow positive for 21 consecutive quarters; and
Strengthened balance sheet by an additional $7.0 million in debt reduction.

Full Year 2024 Highlights

Recorded net income of $67.5 million, or $0.34 per diluted share;
Reported Adjusted Net Income¹ of $69.5 million, or $0.35 per diluted share;
Grew sales volumes year-over-year (“Y-O-Y”) by 8% to a record 19,648 Boe/d and oil sales by 6% to a record 13,283 Bo/d;
Reduced Y-O-Y all-in cash operating costs¹ (on a Boe basis) by 2%;
Generated Adjusted EBITDA¹ of $233.3 million despite a 7% reduction in realized prices;
Maintained capital spending essentially flat at $151.9 million while improving capital efficiency on horizontal (“Hz”) wells by 11% to ~$492 per foot and vertical wells by ~3% on a per completed interval basis;
Generated a Cash Return on Capital Employed (“CROCE”)¹ of 15.9% despite lower commodity pricing, which is the third consecutive year that Ring has achieved a CROCE in excess of 15%;
Recorded Adjusted Cash Flow from Operations¹ of $195.3 million and delivered Adjusted Free Cash Flow¹ of $43.6 million, remaining cash flow positive for over 5 years;
Divested non-core vertical wells with high operating cost for $5.5 million;
Paid down $40.0 million in debt and $70.0 million since closing the Founders acquisition in August 2023;
Reaffirmed the borrowing base at $600 million, exited 2024 with ~$217 million of liquidity, borrowings of $385 million, and a Leverage Ratio¹ of 1.66x; and
Organically grew proved reserves by 4.4 MMBoe, or 3%, to 134.2 MMBoe.

2025 Outlook²

Average annual sales midpoint of 21,000 Boe/d and 13,900 Bo/d, a 7% and 5% increase, respectively;
Annual capital spending midpoint of $154 million, essentially flat with the prior year;
Total wells drilled, completed and online (midpoint) of ~49 wells; and
Assumes nine months of Lime Rock asset operations without the benefit of anticipated synergies and cost reductions.

Mr. Paul D. McKinney, Chairman of the Board and Chief Executive Officer, commented, “We finished 2024 delivering on our promises during the fourth quarter, in a year in which the Ring Team enhanced nearly every controllable metric. We grew our sales by 8% over the prior year to a record 19,648 Boe/d and our oil sales by 6% to a record 13,283 Bo/d. We reduced our all-in cash operating costs per Boe by 2% and drilled 13 more wells for slightly less capital than the previous year representing a substantial increase in capital efficiency for both our horizontal and vertical wells. We paid down debt by $40 million and exited the year with $385 million borrowings and approximately $217 million of liquidity. During the fourth quarter of 2024, we reduced our capital expenditures in anticipation of seeking and completing a meaningful acquisition of producing properties, while achieving the midpoint of our guidance on a Boe basis. As we have previously stated, we intend to maintain or slightly grow our production through our organic drilling program and grow through accretive, balance sheet enhancing acquisitions of assets that meet specific criteria. Our strategy retains the flexibility to respond to changing conditions to ensure we continue to make progress profitably growing the Company, achieving the size and scale to earn more attractive market metrics, and build long term shareholder value. Looking forward to 2025, we intend to continue a reduced capital spending program in the first quarter to help us achieve a satisfactory leverage ratio upon closing the Lime Rock transaction. The rest of the year will be consistent with our past. We will continue our focus on maximizing cash flow generation and intend to allocate a portion of our cash flow from operations to maintain production and liquidity and allocate the balance to paying down debt. With the potential added benefit of the proposed Lime Rock production beginning in the second quarter and our historically successful capital spending program, we anticipate ending 2025 stronger than ever.”

Mr. McKinney concluded, “I would like to thank the Ring Team for the hard work and dedication it took to deliver our 2024 results. I also want to express our gratitude for the continued support of our shareholders. Despite an environment of lower realized commodity prices, being a member of a market segment where investor interest has waned, and other market conditions beyond our control, our shareholders continued to support us as we pursue our value focused proven strategy to build long-term value.”

Summary Results

	Quarter							Year
	Q4 2024	Q3 2024	Q4 2024 to Q3 2024 % Change		Q4 2023	Q4 2024 to Q4 2023 % Change		FY 2024	FY 2023	FY % Change
Average Daily Sales Volumes (Boe/d)	19,658	20,108	(2	)%	19,397	1	%	19,648	18,119	8	%
Crude Oil (Bo/d)	12,916	13,204	(2	)%	13,637	(5	)%	13,283	12,548	6	%
Net Sales (MBoe)	1,808.5	1,849.9	(2	)%	1,784.5	1	%	7,191.1	6,613.3	9	%
Realized Price – All Products ($/Boe)	$46.14	$48.24	(4	)%	$56.01	(18	)%	$50.94	$54.60	(7	)%
Realized Price – Crude Oil ($/Bo)	$68.98	$74.43	(7	)%	$77.33	(11	)%	$74.87	$76.21	(2	)%
Revenues ($MM)	$83.4	$89.2	(7	)%	$99.9	(17	)%	$366.3	$361.1	1	%
Net Income/Loss ($MM)	$5.7	$33.9	(83	)%	$50.9	(89	)%	$67.5	$104.9	(36	)%
Adjusted Net Income¹ ($MM)	$12.3	$13.4	(8	)%	$21.2	(42	)%	$69.5	$100.5	(31	)%
Adjusted EBITDA¹ ($MM)	$50.9	$54.0	(6	)%	$65.4	(22	)%	$233.3	$236.0	(1	)%
Capital Expenditures ($MM)	$37.6	$42.7	(12	)%	$38.8	(3	)%	$151.9	$152.0	—	%
Adjusted Free Cash Flow¹ ($MM)	$4.7	$1.9	144	%	$16.3	(71	)%	$43.6	$45.3	(4	)%

Adjusted Net Income, Adjusted EBITDA, Adjusted Free Cash Flow, Adjusted Cash Flow from Operations, Cash Return on Capital Employed and PV-10 are non-GAAP financial measures, which are described in more detail and reconciled to the most comparable GAAP measures, in the tables shown later in this release under “Non-GAAP Financial Information.”

Sales Volumes, Prices and Revenues: Sales volumes for the fourth quarter of 2024 are shown in the table above.

For the fourth quarter of 2024, realized average sales prices were $68.98 per barrel of crude oil, $(0.96) per Mcf of natural gas and $9.08 per barrel of NGLs. The realized natural gas and NGL prices are impacted by a fee reduction to the value received. For the fourth quarter of 2024, the weighted average natural gas price per Mcf was $0.87 offset by a weighted average fee value per Mcf of $(1.83), and the weighted average NGL price per barrel was $20.96 partially offset by a weighted average fee of $(11.88) per barrel. The combined average realized sales price for the period was $46.14 per Boe, down 4% versus $48.24 per Boe for the third quarter of 2024, and down 18% from $56.01 per Boe in the fourth quarter of 2023. The average oil price differential the Company experienced from WTI NYMEX futures pricing in the fourth quarter of 2024 was a negative $1.42 per barrel of crude oil, while the average natural gas price differential from NYMEX futures pricing was a negative $3.83 per Mcf.

Revenues were $83.4 million for the fourth quarter of 2024 compared to $89.2 million for the third quarter of 2024 and $99.9 million for the fourth quarter of 2023. The 7% decrease in fourth quarter 2024 revenues from the third quarter was driven by a ($3.8MM) price variance and a ($2.0MM) volume variance.

Lease Operating Expense (“LOE”): LOE, which includes expensed workovers and facilities maintenance, was $20.3 million, or $11.24 per Boe, in the fourth quarter of 2024 versus $20.3 million, or $10.98 per Boe, in the third quarter of 2024 and $18.7 million, or $10.50 per Boe, for the fourth quarter of 2023. Fourth quarter 2024 LOE per Boe was within the Company’s guidance range, and the Company remains focused on further improving the efficiencies of its operations.

Gathering, Transportation and Processing (“GTP”) Costs: As previously disclosed, due to a contractual change effective May 1, 2022, the Company no longer maintains ownership and control of the majority of its natural gas through processing. As a result, GTP costs are now substantially reflected as a reduction to the natural gas sales price and not as an expense item. There remains only one contract in place with a natural gas processing entity where the point of control of gas dictates requiring the fees to be recorded as an expense.

Ad Valorem Taxes: Ad valorem taxes, inclusive of an accrual for methane taxes of $527,687, were $1.34 per Boe for the fourth quarter of 2024, compared to $1.17 per Boe in the third quarter of 2024 and $0.92 per Boe for the fourth quarter of 2023.

Production Taxes: Production taxes were $2.13 per Boe in the fourth quarter of 2024 compared to $2.27 per Boe in the third quarter of 2024 and $2.78 per Boe in fourth quarter of 2023. Production taxes ranged between 4.6% to 5.0% of revenue for all three periods.

Depreciation, Depletion and Amortization (“DD&A”) and Asset Retirement Obligation Accretion: DD&A was $13.57 per Boe in the fourth quarter of 2024 versus $13.87 per Boe for the third quarter of 2024 and $13.76 per Boe in the fourth quarter of 2023. Asset retirement obligation accretion was $0.18 per Boe in the fourth quarter of 2024 compared to $0.19 per Boe for the third quarter of 2024 and $0.20 per Boe in the fourth quarter of 2023.

General and Administrative Expenses (“G&A”): G&A was $8.0 million ($4.44 per Boe) for the fourth quarter of 2024 versus $6.4 million ($3.47 per Boe) for the third quarter of 2024 and $8.2 million ($4.58 per Boe) in the fourth quarter of 2023. G&A, excluding share-based compensation¹, was $6.4 million for the fourth quarter of 2024 ($3.52 per Boe) versus $6.4 million for the third quarter of 2024 ($3.45 per Boe) and $5.7 million in the fourth quarter of 2023 ($3.20 per Boe). The fourth quarter of 2024 included $21,017 of Transaction Costs. Excluding these costs and share-based compensation, G&A was $3.51 per Boe for the period.

Interest Expense: Interest expense was $10.1 million in the fourth quarter of 2024 versus $10.8 million for the third quarter of 2024 and $11.6 million for the fourth quarter of 2023.

Derivative (Loss) Gain: In the fourth quarter of 2024, Ring recorded a net loss of $6.3 million on its commodity derivative contracts, including a realized $0.7 million cash commodity derivative gain and an unrealized $7.0 million non-cash commodity derivative loss. This compared to a net gain of $24.7 million in the third quarter of 2024, including a realized $1.9 million cash commodity derivative loss and an unrealized $26.6 million non-cash commodity derivative gain, and a net gain of $29.3 million in the fourth quarter of 2023, including a realized $3.3 million cash commodity derivative loss and an unrealized $32.5 million non-cash commodity derivative gain.

A summary listing of the Company’s outstanding derivative positions at December 31, 2024 is included in the tables shown later in this release. A quarterly breakout is provided in the Company’s investor presentation.

For full year 2025, the Company currently has approximately 2.4 million barrels of oil (48% of oil sales guidance midpoint) hedged and 2.4 billion cubic feet of natural gas (33% of natural gas sales guidance midpoint) hedged.

Income Tax: The Company recorded a non-cash income tax provision of $1.8 million in the fourth quarter of 2024, $10.1 million in the third quarter of 2024, and $7.9 million for fourth quarter 2023.

Balance Sheet and Liquidity: Total liquidity at December 31, 2024 was $216.8 million, a 4% increase from September 30, 2024 and a 24% increase from December 31, 2023. Liquidity at December 31, 2024 consisted of cash and cash equivalents of $1.9 million and $215.0 million of availability under Ring’s revolving credit facility, which includes a reduction of $35 thousand for letters of credit. On December 31, 2024, the Company had $385.0 million in borrowings outstanding on its revolving credit facility that has a current borrowing base of $600.0 million. Ring paid down $7 million of debt during the fourth quarter of 2024 and $70.0 million since the closing of the Founders Transaction in August 2023. The Company is targeting further debt pay down during 2025 dependent on market conditions, the timing of capital spending, and other considerations.

During the fourth quarter of 2024, the Company’s borrowing base of $600 million under its revolving credit facility was reaffirmed. The next regularly scheduled bank redetermination is scheduled to occur during May 2025. Ring is currently in compliance with all applicable covenants under its revolving credit facility.

Capital Expenditures: During the fourth quarter of 2024, capital expenditures on an accrual basis were $37.6 million, which was near the midpoint of Ring’s guidance of $33 million to $41 million. The Company drilled five Hz and four vertical wells, and completed ten wells — with all drilling and completion activity occurring in the Central Basin Platform (“CBP”). Also included in fourth quarter 2024 capital spending were costs for capital workovers, infrastructure upgrades, recompletions, leasing costs, and ESG improvements.

For the year ended December 31, 2024, capital expenditures on an accrual basis were $151.9 million — substantially flat with full year 2023 despite more than a 40% increase in drilling and completion activity in 2024. Capital spending in 2024 included costs to drill, complete and place on production 21 Hz wells (five in the NWS and 16 in the CBP) and 22 vertical wells in the CBP, as well as costs for capital workovers, infrastructure upgrades, recompletions, leasing costs, and ESG improvements.

The table below sets forth Ring’s drilling and completions activities by quarter for 2024:

Quarter	Area	Wells Drilled	Wells Completed	Drilled Uncompleted (“DUC”) ⁽²⁾

1Q 2024	Northwest Shelf (Horizontal)	2	2	—
	Central Basin Platform (Horizontal)	3	3	—
	Central Basin Platform (Vertical)	6	6	—
	Total ⁽¹⁾	11	11	—

2Q 2024	Northwest Shelf (Horizontal)	—	—	—
	Central Basin Platform (Horizontal)	5	5	—
	Central Basin Platform (Vertical)	6	6	—
	Total	11	11	—

3Q 2024	Northwest Shelf (Horizontal)	3	3	—
	Central Basin Platform (Horizontal)	4	2	2
	Central Basin Platform (Vertical)	6	6	—
	Total	13	11	2

4Q 2024	Northwest Shelf (Horizontal)	—	—	—
	Central Basin Platform (Horizontal)	5	6	1
	Central Basin Platform (Vertical)	4	4	—
	Total	9	10	1

FY 2024	Northwest Shelf (Horizontal)	5	5	—
	Central Basin Platform (Horizontal)	17	16	1
	Central Basin Platform (Vertical)	22	22	—
	Total	44	43	1

⁽¹⁾ First quarter total and full year total do not include one salt water disposal (“SWD”) well completed in the Central Basin Platform
⁽²⁾ Note that the DUC wells represent period-end counts rather than period-to-date totals.

Full Year 2024 Summary Financial Review

The Company reported net income for full year 2024 of $67.5 million, or $0.34 per diluted share, and Adjusted Net Income of $69.5 million, or $0.35 per diluted share. For full year 2023, Ring reported net income of $104.9 million, or $0.54 per diluted share, and Adjusted Net Income of $100.5 million, or $0.51 per diluted share.

In full year 2024, the Company generated Adjusted EBITDA of $233.3 million, Adjusted Free Cash Flow of $43.6 million, and Adjusted Cash Flow from Operations of $195.3 million — representing a four percent or less decline in all three metrics from full year 2023, despite an almost seven percent decrease in overall realized commodity pricing.

Revenues totaled $366.3 million for 2024 compared to $361.1 million in 2023, with the increase driven by higher sales volumes partially offset by lower overall realized commodity prices.

Net sales for full year 2024 were a record 19,648 Boe/d, or 7,191,054 Boe, comprised of 4,861,628 Bbls of oil, 6,423,674 Mcf of natural gas, and 1,258,814 Bbls of NGLs. Full year 2023 net sales averaged 18,119 Boe/d, or 6,613,321 Boe, which included 4,579,942 Bbls of oil, 6,339,158 Mcf of natural gas, and 976,852 Bbls of NGLs. The increase in sales volumes was primarily associated with a full year of production from the Founders Acquisition that closed in August 2023, as well as strong organic growth from the Company’s targeted capital spending program.

For full year 2024, the Company’s realized crude oil sales price was $74.87 per barrel, the natural gas sales price was $(1.44) per Mcf, and the NGLs sales price was $9.23 per barrel. The combined average sales price for full year 2024 was $50.94 per Boe compared to $54.60 per Boe for full year 2023.

For the full year 2024, LOE was $78.3 million, or $10.89 per Boe (substantially at the midpoint of guidance of $10.70 to $11.00 per Boe). The increase in LOE on an absolute basis from full year 2023 was primarily due to the full year of expenses from the assets acquired with the Founders Acquisition (closed in August 2023) which contributed to the previously discussed 9% increase in production. Also affecting absolute LOE were higher activity levels, partially offset by the Company’s ongoing cost reduction and increased efficiency initiatives.

For the full year 2024, G&A was $29.6 million, or $4.12 per Boe, compared to $29.2 million, or $4.41 per Boe for full year 2023. G&A, excluding share-based compensation, was $24.1 million, or $3.36 per Boe, compared to $20.4 million, or $3.08 per Boe for full year 2023. Excluding Transaction Costs, full year 2024 G&A, net of share-based compensation, was $3.35 per Boe. The increase from full year 2023 was primarily associated with higher total compensation levels driven by higher activity levels in 2024 and a non-recurring employee retention tax credit in 2023, with the overall net increase partially offset by a $3.3 million year-over-year reduction in share-based compensation.

Recently Announced Proposed Accretive Bolt-On Acquisition

On February 25, 2025, the Company entered into an agreement to acquire Lime Rock’s CBP assets for $90 million in cash with $80 million due at closing and $10 million due on the nine month anniversary of closing, and approximately 7.4 million shares of our common stock. The purchase price is subject to customary purchase price adjustments. The transaction has an effective date of October 1, 2024, and is expected to close by the end of the first quarter of 2025.

Lime Rock’s CBP acreage is in Andrews County, Texas, where the majority of the acreage directly offsets Ring’s core Shafter Lake operations, and the remaining acreage is prospective for multiple horizontal targets and exposes the Company to new active plays. The transaction represents another opportunity for the Company to seamlessly integrate strategic, high-quality assets with Ring’s existing operations and create shareholder value through improved operations and synergy capture.

The Lime Rock position has been a key target for Ring as the Company has historically sought to consolidate producing assets in core counties in the CBP defined by shallow declines, high margin production and undeveloped inventory that immediately competes for capital. Additionally, these assets add significant near-term opportunities for field level optimization and cost savings that are core competencies of Ring’s operating team.

2025 Capital Investment, Sales Volumes, and Operating Expense Guidance

In January, the Company commenced its 2025 development program with one rig drilling horizontal wells followed by another rig drilling vertical wells. During the first quarter, this disciplined capital program is intended to achieve a satisfactory leverage ratio upon the closing of the Lime Rock transaction. The Company intends to utilize a phased (versus continuous) capital drilling program to maximize free cash flow and retain the flexibility to respond to changes in commodity prices and other market conditions.

For full year 2025, Ring expects total capital spending of $138 million to $170 million that includes a balanced and capital efficient combination of drilling, completing and placing on production 27 to 32 Hz and 15 to 22 vertical wells across the Company’s asset portfolio. Additionally, the full year capital spending program includes funds for the drilling of targeted well recompletions, capital workovers, infrastructure upgrades, reactivations, leasing costs, ESG improvements, and the drilling of approximately three SWD wells, in addition to the Company’s pro-rata capital spending for non-operated drilling, completion, and capital workover activities.

All projects and estimates are based on assumed WTI oil prices of $65 to $75 per barrel and Henry Hub prices of $2.00 to $4.00 per Mcf.

Based on the $154 million midpoint of spending guidance, the Company expects the following estimated allocation of capital investment:

73% for drilling, completion, and related infrastructure;
19% for recompletions and capital workovers;
5% for environmental and emission reducing facility upgrades; and
3% for land and non-operated capital.

The Company remains focused on continuing to generate Adjusted Free Cash Flow. All 2025 planned capital expenditures will be fully funded by cash on hand and cash from operations, and excess Adjusted Free Cash Flow is currently targeted for further debt reduction.

The Company currently forecasts full year 2025 oil sales volumes of 13,600 to 14,200 Bo/d compared with full year 2024 oil sales volumes of 13,283 Bo/d, with the midpoint of guidance reflecting almost a 5% increase from last year.

The guidance in the table below represents the Company’s current good faith estimate of the range of likely future results for the first quarter and full year of 2025 and assumes the closing of the Lime Rock transaction at the end of the first quarter of 2025. Guidance could be affected by the factors discussed below in the “Safe Harbor Statement” section. LOE per Boe assumes the full operating costs of the Lime Rock assets before anticipated synergies and cost reductions after the assets are integrated.

	Q1 2025	Q2 2025	Q3 2025	Q4 2025	FY 2025

Sales Volumes:
Total Oil (Bo/d)	11,700 – 12,000	13,700 – 14,700	14,000 – 15,000	14,400 – 15,400	13,600 – 14,200
Midpoint (Bo/d)	11,850	14,200	14,500	14,900	13,900
Total (Boe/d)	18,000-18,500	20,500 – 22,500	20,700 – 22,700	21,000 – 23,000	20,000 – 22,000
Midpoint (Boe/d)	18,250	21,500	21,700	22,000	21,000
Oil (%)	65%	66%	67%	68%	66%
NGLs (%)	19%	18%	18%	18%	18%
Gas (%)	16%	16%	15%	14%	16%

Capital Program:
Capital spending⁽¹⁾ (millions)	$26 – $34	$34 – $42	$46 – $54	$32 – $40	$138 – $170
Midpoint (millions)	$30	$38	$50	$36	$154
New Hz wells drilled	4 – 5	8 – 9	11 – 13	4 – 5	27 – 32
New Vertical wells drilled	3 – 4	3 – 5	4 – 6	5 – 7	15 – 22
Completion of DUC wells	0	1	0	0	1
Wells completed and online	7 – 9	12 – 15	15 – 19	9 – 12	43 – 55

Operating Expenses:
LOE (per Boe)	$11.75 – $12.25	$11.50 – $12.50	$11.25 – $12.25	$11.00 – $12.00	$11.25 – $12.25
Midpoint (per Boe)	$12.00	$12.00	$11.75	$11.50	$11.75

⁽¹⁾ In addition to Company-directed drilling and completion activities, the capital spending outlook includes funds for targeted well recompletions, capital workovers, infrastructure upgrades and well reactivations. Also included is anticipated spending for leasing acreage and non-operated drilling, completion, capital workovers, and ESG improvements.

Year-End 2024 Proved Reserves

The Company’s year-end 2024 SEC proved reserves were 134.2 MMBoe, up 3% compared to 129.8 MMBoe at year-end 2023. During 2024, Ring recorded reserve additions of 16.0 MMBoe for extensions, discoveries and improved recovery. Offsetting these additions were 1.2 MMBoe related to the sale of non-core assets, 7.2 MMBoe of production, and 3.2 MMBoe of revisions related to changes in pricing and performance.

The SEC twelve-month first day of the month average prices used for year-end 2024 were $71.96 per barrel of crude oil and $2.130 per MMBtu of natural gas, both before adjustment for quality, transportation, fees, energy content, and regional price differentials, while for year-end 2023 they were $74.70 per barrel of crude oil and $2.637 per MMBtu of natural gas — a decrease of four percent and two percent, respectively.

Year-end 2024 SEC proved reserves were comprised of approximately 60% crude oil, 19% natural gas, and 21% natural gas liquids. At year end, approximately 69% of 2024 proved reserves were classified as proved developed and 31% as proved undeveloped. This is compared to year-end 2023 when approximately 68% of proved reserves were classified as proved developed and 32% were classified as proved undeveloped. The Company’s year-end 2024 proved reserves were prepared by Cawley, Gillespie & Associates, Inc., and independent petroleum engineering firm.

The PV-10 value at year-end 2024 was $1,462.8 million versus $1,647.0 million at the end of 2023.

	Oil (Bbl)		Gas (Mcf)		Natural Gas Liquids (Bbl)		Net (Boe)		PV-10⁽¹⁾

Balance, December 31, 2023	82,141,277		146,396,322		23,218,564		129,759,229		$	1,647,031,127

Purchase of minerals in place	—		—		—		—
Extensions, discoveries and improved recovery	11,495,236		10,630,769		2,738,451		16,005,482
Sales of minerals in place	(1,140,568	)	(56,020	)	(16,361	)	(1,166,266	)
Production	(4,861,628	)	(6,423,674	)	(1,258,814	)	(7,191,054	)
Revisions of previous quantity estimates	(6,730,246	)	(730,235	)	3,621,245		(3,230,707	)

Balance, December 31, 2024	80,904,071		149,817,162		28,303,085		134,176,684		$	1,462,827,136

⁽¹⁾ PV-10 is a non-GAAP financial measure and is derived from the Standardized Measure of Discounted Futures Net Cash Flows, which is the most directly comparable generally accepted accounting principles (“GAAP”) measure.

In accordance with guidelines established by the SEC, estimated proved reserves as of December 31, 2024 were determined to be economically producible under existing economic conditions, which requires the use of the 12-month average commodity price for each product, calculated as the unweighted arithmetic average of the first-day-of-the-month price for the year ended December 31, 2024. The SEC average prices used for year-end 2024 were $71.96 per barrel of crude oil (WTI) and $2.130 per MMBtu of natural gas (Henry Hub), both before adjustment for quality, transportation, fees, energy content, and regional price differentials. Such prices were held constant throughout the estimated lives of the reserves. Future production and development costs are based on year-end costs with no escalations.

Standardized Measure of Discounted Future Net Cash Flows

Ring’s standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves and changes in the standardized measure as described below were prepared in accordance with GAAP.

*As of December 31,*		2024			2023

Future cash inflows	$	6,165,487,616		$	6,622,410,752
Future production costs		(2,432,555,200	)		(2,413,303,488	)
Future development costs ⁽¹⁾		(536,825,664	)		(562,063,424	)
Future income taxes		(465,768,645	)		(548,664,988	)
Future net cash flows		2,730,338,107			3,098,378,852
10% annual discount for estimated timing of cash flows		(1,497,401,764	)		(1,699,193,661	)

Standardized Measure of Discounted Future Net Cash Flows	$	1,232,936,343		$	1,399,185,191

(1) Future development costs include not only development costs but also future asset retirement costs.

Reconciliation of PV-10 to Standardized Measure

PV-10 is derived from the Standardized Measure of Discounted Future Net Cash Flows (“Standardized Measure”), which is the most directly comparable GAAP financial measure for proved reserves calculated using SEC pricing. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes, discounted at 10 percent. We believe that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to our estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas properties. Further, investors may utilize the measure as a basis for comparison of the relative size and value of our reserves to other companies without regard to the specific tax characteristics of such entities. Moreover, GAAP does not provide a measure of estimated future net cash flows for reserves other than proved reserves or for reserves calculated using prices other than SEC prices. We use this measure when assessing the potential return on investment related to our oil and natural gas properties. PV-10, however, is not a substitute for the Standardized Measure. Our PV-10 measure and the Standardized Measure do not purport to represent the fair value of our oil and natural gas reserves.

The following table reconciles the PV-10 value of the Company’s estimated proved reserves as of December 31, 2024 to the Standardized Measure:

SEC Pricing Proved Reserves
Standardized Measure Reconciliation
Present Value of Estimated Future Net Revenues (PV-10)	$	1,462,827,136
Future Income Taxes, Discounted at 10%		229,890,793
Standardized Measure of Discounted Future Net Cash Flows	$	1,232,936,343

Conference Call Information

Ring will hold a conference call on Thursday, March 6, 2025 at 11:00 a.m. ET (10:00 a.m. CT) to discuss its fourth quarter and full year 2024 operational and financial results. An updated investor presentation will be posted to the Company’s website prior to the conference call.

To participate in the conference call, interested parties should dial 833-953-2433 at least five minutes before the call is to begin. Please reference the “Ring Energy 2024 Earnings Conference Call”. International callers may participate by dialing 412-317-5762. The call will also be webcast and available on Ring’s website at www.ringenergy.com under “Investors” on the “News & Events” page. An audio replay will also be available on the Company’s website following the call.

About Ring Energy, Inc.

Ring Energy, Inc. is an oil and gas exploration, development, and production company with current operations focused on the development of its Permian Basin assets. For additional information, please visit www.ringenergy.com.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this release, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. Additionally, forward-looking statements include statements about the expected benefits to the Company and its shareholders from the proposed Lime Rock acquisition and the anticipated completion of the Lime Rock acquisition or the timing thereof. When used in this release, the words “could,” “may,” “will,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “guidance,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. However, whether actual results and developments will conform to expectations is subject to a number of material risks and uncertainties, including but not limited to: declines in oil, natural gas liquids or natural gas prices; the level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities; the timing of exploration and development expenditures; inaccuracies of reserve estimates or assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; impacts to financial statements as a result of impairment write-downs; risks related to level of indebtedness and periodic redeterminations of the borrowing base and interest rates under the Company’s credit facility; Ring’s ability to generate sufficient cash flows from operations to meet the internally funded portion of its capital expenditures budget; the impacts of hedging on results of operations; and Ring’s ability to replace oil and natural gas reserves. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2024, and its other filings with the SEC. Readers and investors are cautioned that the Company’s actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company’s ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company. Should one or more of the risks or uncertainties described in this release occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this release are expressly qualified in their entirety by this safe harbor statement. This safe harbor statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Ring undertakes no obligation to revise or update publicly any forward-looking statements except as required by law.

Contact Information

Al Petrie Advisors
Al Petrie, Senior Partner
Phone: 281-975-2146
Email: apetrie@ringenergy.com

RING ENERGY, INC. Condensed Statements of Operations

	(Unaudited)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Oil, Natural Gas, and Natural Gas Liquids Revenues	$	83,440,546		$	89,244,383		$	99,942,718		$	366,327,414		$	361,056,001

Costs and Operating Expenses
Lease operating expenses		20,326,216			20,315,282			18,732,082			78,310,949			70,158,227
Gathering, transportation and processing costs		130,230			102,420			464,558			506,333			457,573
Ad valorem taxes		2,421,595			2,164,562			1,637,722			8,069,064			6,757,841
Oil and natural gas production taxes		3,857,147			4,203,851			4,961,768			16,116,565			18,135,336
Depreciation, depletion and amortization		24,548,849			25,662,123			24,556,654			98,702,843			88,610,291
Asset retirement obligation accretion		323,085			354,195			351,786			1,380,298			1,425,686
Operating lease expense		175,090			175,091			175,090			700,362			541,801
General and administrative expense		8,035,977			6,421,567			8,164,799			29,640,300			29,188,755

Total Costs and Operating Expenses		59,818,189			59,399,091			59,044,459			233,426,714			215,275,510

Income from Operations		23,622,357			29,845,292			40,898,259			132,900,700			145,780,491

Other Income (Expense)
Interest income		124,765			143,704			96,984			491,946			257,155
Interest (expense)		(10,112,496	)		(10,754,243	)		(11,603,892	)		(43,311,810	)		(43,926,732	)
Gain (loss) on derivative contracts		(6,254,448	)		24,731,625			29,250,352			(2,365,917	)		2,767,162
Gain (loss) on disposal of assets		—			—			44,981			89,693			(87,128	)
Other income		80,970			—			72,725			106,656			198,935
Net Other Income (Expense)		(16,161,209	)		14,121,086			17,861,150			(44,989,432	)		(40,790,608	)

Income Before Provision for Income Taxes		7,461,148			43,966,378			58,759,409			87,911,268			104,989,883

Provision for Income Taxes		(1,803,629	)		(10,087,954	)		(7,862,930	)		(20,440,954	)		(125,242	)

Net Income	$	5,657,519		$	33,878,424		$	50,896,479		$	67,470,314		$	104,864,641

Basic Earnings per Share	$	0.03		$	0.17		$	0.26		$	0.34		$	0.55
Diluted Earnings per Share	$	0.03		$	0.17		$	0.26		$	0.34		$	0.54

Basic Weighted-Average Shares Outstanding		198,166,543			198,177,046			195,687,725			197,937,683			190,589,143
Diluted Weighted-Average Shares Outstanding		200,886,010			200,723,863			197,848,812			200,277,380			195,364,850

RING ENERGY, INC. Condensed Operating Data (Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
	2024		2024		2023		2024		2023

Net sales volumes:
Oil (Bbls)	1,188,272		1,214,788		1,254,619		4,861,628		4,579,942
Natural gas (Mcf)	1,683,793		1,705,027		1,613,102		6,423,674		6,339,158
Natural gas liquids (Bbls)	339,589		350,975		261,020		1,258,814		976,852
Total oil, natural gas and natural gas liquids (Boe)⁽¹⁾	1,808,493		1,849,934		1,784,490		7,191,054		6,613,321

% Oil	66	%	66	%	70	%	68	%	69	%
% Natural gas	15	%	15	%	15	%	15	%	16	%
% Natural gas liquids	19	%	19	%	15	%	17	%	15	%

Average daily sales volumes:
Oil (Bbls/d)	12,916		13,204		13,637		13,283		12,548
Natural gas (Mcf/d)	18,302		18,533		17,534		17,551		17,368
Natural gas liquids (Bbls/d)	3,691		3,815		2,837		3,439		2,676
Average daily equivalent sales (Boe/d)	19,658		20,108		19,397		19,648		18,119

Average realized sales prices:
Oil ($/Bbl)	68.98		74.43		77.33		74.87		76.21
Natural gas ($/Mcf)	(0.96	)	(2.26	)	(0.12	)	(1.44	)	0.05
Natural gas liquids ($/Bbls)	9.08		7.66		11.92		9.23		11.95
Barrel of oil equivalent ($/Boe)	46.14		48.24		56.01		50.94		54.60

Average costs and expenses per Boe ($/Boe):
Lease operating expenses	11.24		10.98		10.50		10.89		10.61
Gathering, transportation and processing costs	0.07		0.06		0.26		0.07		0.07
Ad valorem taxes	1.34		1.17		0.92		1.12		1.02
Oil and natural gas production taxes	2.13		2.27		2.78		2.24		2.74
Depreciation, depletion and amortization	13.57		13.87		13.76		13.73		13.40
Asset retirement obligation accretion	0.18		0.19		0.20		0.19		0.22
Operating lease expense	0.10		0.09		0.10		0.10		0.08
G&A (including share-based compensation)	4.44		3.47		4.58		4.12		4.41
G&A (excluding share-based compensation)	3.52		3.45		3.20		3.36		3.08
G&A (excluding share-based compensation and transaction costs)	3.51		3.45		3.00		3.35		3.01

(1) Boe is determined using the ratio of six Mcf of natural gas to one Bbl of oil (totals may not compute due to rounding.) The conversion ratio does not assume price equivalency and the price on an equivalent basis for oil, natural gas, and natural gas liquids may differ significantly.

RING ENERGY, INC. Condensed Balance Sheets

As of December 31,		2024			2023
ASSETS
Current Assets
Cash and cash equivalents	$	1,866,395		$	296,384
Accounts receivable		36,172,316			38,965,002
Joint interest billing receivables, net		1,083,164			2,422,274
Derivative assets		5,497,057			6,215,374
Inventory		4,047,819			6,136,935
Prepaid expenses and other assets		1,781,341			1,874,850
Total Current Assets		50,448,092			55,910,819
Properties and Equipment
Oil and natural gas properties, full cost method		1,809,309,848			1,663,548,249
Financing lease asset subject to depreciation		4,634,556			3,896,316
Fixed assets subject to depreciation		3,389,907			3,228,793
Total Properties and Equipment		1,817,334,311			1,670,673,358
Accumulated depreciation, depletion and amortization		(475,212,325	)		(377,252,572	)
Net Properties and Equipment		1,342,121,986			1,293,420,786
Operating lease asset		1,906,264			2,499,592
Derivative assets		5,473,375			11,634,714
Deferred financing costs		8,149,757			13,030,481
Total Assets	$	1,408,099,474		$	1,376,496,392

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	95,729,261		$	104,064,124
Income tax liability		328,985			—
Financing lease liability		906,119			956,254
Operating lease liability		648,204			568,176
Derivative liabilities		6,410,547			7,520,336
Notes payable		496,397			533,734
Asset retirement obligations		517,674			165,642
Total Current Liabilities		105,037,187			113,808,266

Non-current Liabilities
Deferred income taxes		28,591,802			8,552,045
Revolving line of credit		385,000,000			425,000,000
Financing lease liability, less current portion		647,078			906,330
Operating lease liability, less current portion		1,405,837			2,054,041
Derivative liabilities		2,912,745			11,510,368
Asset retirement obligations		25,864,843			28,082,442
Total Liabilities		549,459,492			589,913,492
Commitments and contingencies
Stockholders’ Equity
Preferred stock – $0.001 par value; 50,000,000 shares authorized; no shares issued or outstanding		—			—
Common stock – $0.001 par value; 450,000,000 shares authorized; 198,561,378 shares and 196,837,001 shares issued and outstanding, respectively		198,561			196,837
Additional paid-in capital		800,419,719			795,834,675
Retained earnings (Accumulated deficit)		58,021,702			(9,448,612	)
Total Stockholders’ Equity		858,639,982			786,582,900
Total Liabilities and Stockholders’ Equity	$	1,408,099,474		$	1,376,496,392

RING ENERGY, INC. Condensed Statements of Cash Flows

	(Unaudited)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Cash Flows From Operating Activities
Net income	$	5,657,519		$	33,878,424		$	50,896,479		$	67,470,314		$	104,864,641
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		24,548,849			25,662,123			24,556,654			98,702,843			88,610,291
Asset retirement obligation accretion		323,085			354,195			351,786			1,380,298			1,425,686
Amortization of deferred financing costs		1,299,078			1,226,881			1,221,479			4,969,174			4,920,714
Share-based compensation		1,672,320			32,087			2,458,682			5,506,017			8,833,425
Credit loss expense		(26,747	)		8,817			92,142			160,847			134,007
(Gain) loss on disposal of assets		—			—			—			(89,693	)		—
Deferred income tax expense (benefit)		1,723,338			10,005,502			7,735,437			19,935,413			(425,275	)
Excess tax expense (benefit) related to share-based compensation		9,011			7,553			319,541			104,344			478,304
(Gain) loss on derivative contracts		6,254,448			(24,731,625	)		(29,250,352	)		2,365,917			(2,767,162	)
Cash received (paid) for derivative settlements, net		745,104			(1,882,765	)		(3,255,192	)		(5,193,673	)		(9,084,920	)
Changes in operating assets and liabilities:
Accounts receivable		349,474			5,529,542			6,825,601			3,594,504			1,154,085
Inventory		580,161			1,148,418			(588,100	)		2,089,116			3,113,782
Prepaid expenses and other assets		295,555			545,529			158,163			93,509			226,688
Accounts payable		4,462,089			(225,196	)		(4,952,335	)		(5,076,738	)		(1,451,422	)
Asset retirement obligation		(613,603	)		(222,553	)		(836,778	)		(1,588,480	)		(1,862,385	)
Net Cash Provided by Operating Activities		47,279,681			51,336,932			55,733,207			194,423,712			198,170,459

Cash Flows From Investing Activities
Payments for the Stronghold Acquisition		—			—			—			—			(18,511,170	)
Payments for the Founders Acquisition		—			—			(12,324,388	)		—			(62,227,145	)
Payments to purchase oil and natural gas properties		(1,423,483	)		(164,481	)		(557,323	)		(2,210,826	)		(2,162,585	)
Payments to develop oil and natural gas properties		(36,386,055	)		(42,099,874	)		(39,563,282	)		(153,945,456	)		(152,559,314	)
Payments to acquire or improve fixed assets subject to depreciation		—			(33,938	)		(282,519	)		(185,524	)		(492,317	)
Proceeds from sale of fixed assets subject to depreciation		—			—			(1	)		10,605			332,229
Proceeds from divestiture of oil and natural gas properties		121,232			—			1,500,000			121,232			1,554,558
Proceeds from sale of Delaware properties		—			—			(7,993	)		—			7,600,699
Proceeds from sale of New Mexico properties		—			—			(420,745	)		(144,398	)		3,891,757
Proceeds from sale of CBP vertical wells		—			5,500,000			—			5,500,000			—
Net Cash Used in Investing Activities		(37,688,306	)		(36,798,293	)		(51,656,251	)		(150,854,367	)		(222,573,288	)

Cash Flows From Financing Activities
Proceeds from revolving line of credit		22,000,000			27,000,000			46,000,000			130,000,000			225,000,000
Payments on revolving line of credit		(29,000,000	)		(42,000,000	)		(49,000,000	)		(170,000,000	)		(215,000,000	)
Proceeds from issuance of common stock from warrant exercises		—			—			—			—			12,301,596
Payments for taxes withheld on vested restricted shares, net		—			(17,273	)		(225,788	)		(919,249	)		(520,153	)
Proceeds from notes payable		58,774			—			72,442			1,560,281			1,637,513
Payments on notes payable		(475,196	)		(442,976	)		(488,776	)		(1,597,618	)		(1,603,659	)
Payment of deferred financing costs		(42,746	)		—			(52,222	)		(88,450	)		(52,222	)
Reduction of financing lease liabilities		(265,812	)		(257,202	)		(224,809	)		(954,298	)		(776,388	)
Net Cash Provided by (Used in) Financing Activities		(7,724,980	)		(15,717,451	)		(3,919,153	)		(41,999,334	)		20,986,687

Net Increase (Decrease) in Cash		1,866,395			(1,178,812	)		157,803			1,570,011			(3,416,142	)
Cash at Beginning of Period		—			1,178,812			138,581			296,384			3,712,526
Cash at End of Period	$	1,866,395		$	—		$	296,384		$	1,866,395		$	296,384

RING ENERGY, INC.
Financial Commodity Derivative Positions
As of December 31, 2024

The following tables reflect the details of current derivative contracts as of December 31, 2024 (quantities are in barrels (Bbl) for the oil derivative contracts and in million British thermal units (MMBtu) for the natural gas derivative contracts):

	Oil Hedges (WTI)
	Q1 2025		Q2 2025		Q3 2025		Q4 2025		Q1 2026		Q2 2026		Q3 2026		Q4 2026

Swaps:
Hedged volume (Bbl)		193,397		151,763		351,917		141,755		477,350		457,101		59,400		423,000
Weighted average swap price	$	68.68	$	68.53	$	71.41	$	69.13	$	70.16	$	69.38	$	66.70	$	66.70

Two-way collars:
Hedged volume (Bbl)		474,750		464,100		225,400		404,800		—		—		379,685		—
Weighted average put price	$	57.06	$	60.00	$	65.00	$	60.00	$	—	$	—	$	60.00	$	—
Weighted average call price	$	75.82	$	69.85	$	78.91	$	75.68	$	—	$	—	$	72.50	$	—

	Gas Hedges (Henry Hub)
	Q1 2025		Q2 2025		Q3 2025		Q4 2025		Q1 2026		Q2 2026		Q3 2026		Q4 2026

NYMEX Swaps:
Hedged volume (MMBtu)		451,884		647,200		330,250		11,400		26,600		555,300		17,400		513,300
Weighted average swap price	$	3.77	$	3.46	$	3.72	$	3.74	$	3.74	$	3.39	$	3.74	$	3.74

Two-way collars:
Hedged volume (MMBtu)		22,016		27,300		308,200		598,000		553,500		—		515,728		—
Weighted average put price	$	3.00	$	3.00	$	3.00	$	3.00	$	3.50	$	—	$	3.00	$	—
Weighted average call price	$	4.40	$	4.15	$	4.75	$	4.15	$	5.03	$	—	$	3.93	$	—

	Oil Hedges (basis differential)
	Q1 2025		Q2 2025		Q3 2025		Q4 2025		Q1 2026		Q2 2026		Q3 2026		Q4 2026

Argus basis swaps:
Hedged volume (Bbl)		177,000		273,000		276,000		276,000		—		—		—		—
Weighted average spread price ⁽¹⁾	$	1.00	$	1.00	$	1.00	$	1.00	$	—	$	—	$	—	$	—

⁽¹⁾ The oil basis swap hedges are calculated as the fixed price (weighted average spread price above) less the difference between WTI Midland and WTI Cushing, in the issue of Argus Americas Crude.

RING ENERGY, INC.
Non-GAAP Financial Information

Certain financial information included in this release are not measures of financial performance recognized by accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures are “Adjusted Net Income”, “Adjusted EBITDA”, “Adjusted Free Cash Flow” or “AFCF,” “Adjusted Cash Flow from Operations” or “ACFFO,” “G&A Excluding Share-Based Compensation,” “G&A Excluding Share-Based Compensation and Transaction Costs,” “Leverage Ratio,” “Current Ratio,” “Cash Return on Capital Employed” or “CROCE,” “All-In Cash Operating Costs,” and “Cash Operating Margin.” Management uses these non-GAAP financial measures in its analysis of performance. In addition, Adjusted EBITDA is a key metric used to determine a portion of the Company’s incentive compensation awards. These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies.

Reconciliation of Net Income to Adjusted Net Income

“Adjusted Net Income” is calculated as net income minus the estimated after-tax impact of share-based compensation, ceiling test impairment, unrealized gains and losses on changes in the fair value of derivatives, and transaction costs for executed acquisitions and divestitures (A&D). Adjusted Net Income is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current period to prior periods. The Company believes that the presentation of Adjusted Net Income provides useful information to investors as it is one of the metrics management uses to assess the Company’s ongoing operating and financial performance, and also is a useful metric for investors to compare our results with our peers.

	(Unaudited for All Periods)
	Three Months Ended																		Twelve Months Ended
	December 31,						September 30,						December 31,						December 31,						December 31,
		2024						2024						2023						2024						2023
	Total			Per share – diluted			Total			Per share – diluted			Total			Per share – diluted			Total			Per share – diluted			Total			Per share – diluted
Net Income	$	5,657,519		$	0.03		$	33,878,424		$	0.17		$	50,896,479		$	0.26		$	67,470,314		$	0.34		$	104,864,641		$	0.54

Share-based compensation		1,672,320			0.01			32,087			—			2,458,682			0.01			5,506,017			0.03			8,833,425			0.05
Unrealized loss (gain) on change in fair value of derivatives		6,999,552			0.03			(26,614,390	)		(0.13	)		(32,505,544	)		(0.16	)		(2,827,756	)		(0.02	)		(11,852,082	)		(0.07	)
Transaction costs – executed A&D		21,017			—			—			—			354,616			—			24,556			—			417,166			—
Tax impact on adjusted items		(2,008,740	)		(0.01	)		6,132,537			0.03			(35,631	)		—			(628,405	)		—			(1,788,248	)		(0.01	)

Adjusted Net Income	$	12,341,668		$	0.06		$	13,428,658		$	0.07		$	21,168,602		$	0.11		$	69,544,726		$	0.35		$	100,474,902		$	0.51

Diluted Weighted-Average Shares Outstanding		200,886,010						200,723,863						197,848,812						200,277,380						195,364,850

Adjusted Net Income per Diluted Share	$	0.06					$	0.07					$	0.11					$	0.35					$	0.51

Reconciliation of Net Income to Adjusted EBITDA

The Company defines “Adjusted EBITDA” as net income plus net interest expense (including interest income and expense), unrealized loss (gain) on change in fair value of derivatives, ceiling test impairment, income tax (benefit) expense, depreciation, depletion and amortization, asset retirement obligation accretion, transaction costs for executed acquisitions and divestitures (A&D), share-based compensation, loss (gain) on disposal of assets, and backing out the effect of other income. Company management believes Adjusted EBITDA is relevant and useful because it helps investors understand Ring’s operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income, as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. Adjusted EBITDA, as Ring calculates it, may not be comparable to Adjusted EBITDA measures reported by other companies. In addition, Adjusted EBITDA does not represent funds available for discretionary use.

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Net Income	$	5,657,519		$	33,878,424		$	50,896,479		$	67,470,314		$	104,864,641

Interest expense, net		9,987,731			10,610,539			11,506,908			42,819,864			43,669,577
Unrealized loss (gain) on change in fair value of derivatives		6,999,552			(26,614,390	)		(32,505,544	)		(2,827,756	)		(11,852,082	)
Income tax (benefit) expense		1,803,629			10,087,954			7,862,930			20,440,954			125,242
Depreciation, depletion and amortization		24,548,849			25,662,123			24,556,654			98,702,843			88,610,291
Asset retirement obligation accretion		323,085			354,195			351,786			1,380,298			1,425,686
Transaction costs – executed A&D		21,017			—			354,616			24,556			417,166
Share-based compensation		1,672,320			32,087			2,458,682			5,506,017			8,833,425
Loss (gain) on disposal of assets		—			—			(44,981	)		(89,693	)		87,128
Other income		(80,970	)		—			(72,725	)		(106,656	)		(198,935	)

Adjusted EBITDA	$	50,932,732		$	54,010,932		$	65,364,805		$	233,320,741		$	235,982,139

Adjusted EBITDA Margin		61	%		61	%		65	%		64	%		65	%

Reconciliations of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow and Adjusted EBITDA to Adjusted Free Cash Flow

The Company defines “Adjusted Free Cash Flow” or “AFCF” as Net Cash Provided by Operating Activities less changes in operating assets and liabilities (as reflected on our Statements of Cash Flows), plus transaction costs for executed acquisitions and divestitures (A&D), current income tax expense (benefit), proceeds from divestitures of equipment for oil and natural gas properties, loss (gain) on disposal of assets, and less capital expenditures, credit loss expense, and other income. For this purpose, our definition of capital expenditures includes costs incurred related to oil and natural gas properties (such as drilling and infrastructure costs and lease maintenance costs) but excludes acquisition costs of oil and gas properties from third parties that are not included in our capital expenditures guidance provided to investors. Our management believes that Adjusted Free Cash Flow is an important financial performance measure for use in evaluating the performance and efficiency of our current operating activities after the impact of capital expenditures and net interest expense (including interest income and expense, excluding amortization of deferred financing costs) and without being impacted by items such as changes associated with working capital, which can vary substantially from one period to another. Other companies may use different definitions of Adjusted Free Cash Flow.

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Net Cash Provided by Operating Activities	$	47,279,681		$	51,336,932		$	55,733,207		$	194,423,712		$	198,170,459
Adjustments – Statements of Cash Flows
Changes in operating assets and liabilities		(5,073,676	)		(6,775,740	)		(606,551	)		888,089			(1,180,748	)
Transaction costs – executed A&D		21,017			—			354,616			24,556			417,166
Income tax expense (benefit) – current		71,280			74,899			(192,048	)		401,197			72,213
Capital expenditures		(37,633,168	)		(42,691,163	)		(38,817,080	)		(151,946,171	)		(151,969,735	)
Proceeds from divestiture of equipment for oil and natural gas properties		121,232			—			—			121,232			54,558
Credit loss expense		26,747			(8,817	)		(92,142	)		(160,847	)		(134,007	)
Loss (gain) on disposal of assets		—			—			(44,981	)		—			87,128
Other income		(80,970	)		—			(72,725	)		(106,656	)		(198,935	)

Adjusted Free Cash Flow	$	4,732,143		$	1,936,111		$	16,262,296		$	43,645,112		$	45,318,099

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023

Adjusted EBITDA	$	50,932,732		$	54,010,932		$	65,364,805		$	233,320,741		$	235,982,139

Net interest expense (excluding amortization of deferred financing costs)		(8,688,653	)		(9,383,658	)		(10,285,429	)		(37,850,690	)		(38,748,863	)
Capital expenditures		(37,633,168	)		(42,691,163	)		(38,817,080	)		(151,946,171	)		(151,969,735	)
Proceeds from divestiture of equipment for oil and natural gas properties		121,232			—			—			121,232			54,558

Adjusted Free Cash Flow	$	4,732,143		$	1,936,111		$	16,262,296		$	43,645,112		$	45,318,099

Reconciliation of Net Cash Provided by Operating Activities to Adjusted Cash Flow from Operations

The Company defines “Adjusted Cash Flow from Operations” or “ACFFO” as Net Cash Provided by Operating Activities, as reflected in our Statements of Cash Flows, less the changes in operating assets and liabilities, which includes accounts receivable, inventory, prepaid expenses and other assets, accounts payable, and settlement of asset retirement obligations, which are subject to variation due to the nature of the Company’s operations. Accordingly, the Company believes this non-GAAP measure is useful to investors because it is used often in its industry and allows investors to compare this metric to other companies in its peer group as well as the E&P sector.

	(Unaudited for All Periods)
	Three Months Ended									Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,		December 31,
		2024			2024			2023			2024		2023

Net Cash Provided by Operating Activities	$	47,279,681		$	51,336,932		$	55,733,207		$	194,423,712	$	198,170,459

Changes in operating assets and liabilities		(5,073,676	)		(6,775,740	)		(606,551	)		888,089		(1,180,748	)

Adjusted Cash Flow from Operations	$	42,206,005		$	44,561,192		$	55,126,656		$	195,311,801	$	196,989,711

Reconciliation of General and Administrative Expense (G&A) to G&A Excluding Share-Based Compensation and Transaction Costs

The following table presents a reconciliation of General and Administrative Expense (G&A), a GAAP measure, to G&A excluding share-based compensation, and G&A excluding share-based compensation and transaction costs for executed acquisitions and divestitures (A&D).

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2024		2024		2023		2024		2023

General and administrative expense (G&A)	$	8,035,977	$	6,421,567	$	8,164,799	$	29,640,300	$	29,188,755
Shared-based compensation		1,672,320		32,087		2,458,682		5,506,017		8,833,425
G&A excluding share-based compensation		6,363,657		6,389,480		5,706,117		24,134,283		20,355,330
Transaction costs – executed A&D		21,017		—		354,616		24,556		417,166
G&A excluding share-based compensation and transaction costs	$	6,342,640	$	6,389,480	$	5,351,501	$	24,109,727	$	19,938,164

Calculation of Leverage Ratio

“Leverage” or the “Leverage Ratio” is calculated under our existing senior revolving credit facility and means as of any date, the ratio of (i) our consolidated total debt as of such date to (ii) our Consolidated EBITDAX for the four consecutive fiscal quarters ending on or immediately prior to such date for which financial statements are required to have been delivered under our existing senior revolving credit facility.

The Company defines “Consolidated EBITDAX” in accordance with our existing senior revolving credit facility that means for any period an amount equal to the sum of (i) consolidated net income (loss) for such period plus (ii) to the extent deducted in determining consolidated net income for such period, and without duplication, (A) consolidated interest expense, (B) income tax expense determined on a consolidated basis in accordance with GAAP, (C) depreciation, depletion and amortization determined on a consolidated basis in accordance with GAAP, (D) exploration expenses determined on a consolidated basis in accordance with GAAP, and (E) all other non-cash charges acceptable to our senior revolving credit facility administrative agent determined on a consolidated basis in accordance with GAAP, in each case for such period minus (iii) all noncash income added to consolidated net income (loss) for such period; provided that, for purposes of calculating compliance with the financial covenants, to the extent that during such period we shall have consummated an acquisition permitted by the credit facility or any sale, transfer or other disposition of any property or assets permitted by the senior revolving credit facility, Consolidated EBITDAX will be calculated on a pro forma basis with respect to the property or assets so acquired or disposed of.

Also set forth in our existing senior revolving credit facility is the maximum permitted Leverage Ratio of 3.00. The following table shows the leverage ratio calculation for the Company’s most recent fiscal quarter.

	(Unaudited)
	Three Months Ended
	March 31,			June 30,			September 30,			December 31,		Last Four Quarters
		2024			2024			2024			2024	Last Four Quarters
Consolidated EBITDAX Calculation:
Net Income (Loss)	$	5,515,377		$	22,418,994		$	33,878,424		$	5,657,519	$	67,470,314
Plus: Consolidated interest expense		11,420,400			10,801,194			10,610,539			9,987,731		42,819,864
Plus: Income tax provision (benefit)		1,728,886			6,820,485			10,087,954			1,803,629		20,440,954
Plus: Depreciation, depletion and amortization		23,792,450			24,699,421			25,662,123			24,548,849		98,702,843
Plus: non-cash charges acceptable to Administrative Agent		19,627,646			1,664,064			(26,228,108	)		8,994,957		4,058,559
Consolidated EBITDAX	$	62,084,759		$	66,404,158		$	54,010,932		$	50,992,685	$	233,492,534
Plus: Pro Forma Acquired Consolidated EBITDAX	$	—		$	—		$	—		$	—	$	—
Less: Pro Forma Divested Consolidated EBITDAX		(124,084	)		(469,376	)		(600,460	)		77,819		(1,116,101	)
Pro Forma Consolidated EBITDAX	$	61,960,675		$	65,934,782		$	53,410,472		$	51,070,504	$	232,376,433

Non-cash charges acceptable to Administrative Agent:
Asset retirement obligation accretion	$	350,834		$	352,184		$	354,195		$	323,085
Unrealized loss (gain) on derivative assets		17,552,980			(765,898	)		(26,614,390	)		6,999,552
Share-based compensation		1,723,832			2,077,778			32,087			1,672,320
Total non-cash charges acceptable to Administrative Agent	$	19,627,646		$	1,664,064		$	(26,228,108	)	$	8,994,957

	As of
	December 31,
		2024
Leverage Ratio Covenant:
Revolving line of credit	$	385,000,000
Pro Forma Consolidated EBITDAX		232,376,433
Leverage Ratio		1.66
Maximum Allowed		≤ 3.00	x

Calculation of Current Ratio

The “Current Ratio” is calculated under our existing senior revolving credit facility and means as of any date, the ratio of (i) our Current Assets as of such date to (ii) our Current Liabilities as of such date. Based on its credit agreement, the Company defines Current Assets as all current assets, excluding non-cash assets under Accounting Standards Codification (“ASC”) 815, plus the unused line of credit. The Company’s non-cash current assets include the derivative asset marked to market value. Based on its credit agreement, the Company defines Current Liabilities as all liabilities, in accordance with GAAP, which are classified as current liabilities, including all indebtedness payable on demand or within one year, all accruals for federal or other taxes payable within such year, but excluding current portion of long-term debt required to be paid within one year, the aggregate outstanding principal balance and non-cash obligations under ASC 815.

Also set forth in our existing senior revolving credit facility is the minimum permitted Current Ratio of 1.00. The following table shows the current ratio calculation for the Company’s most recent fiscal quarter.

	As of
	December 31,
	2024
Current Assets	50,448,092
Less: Current derivative assets	5,497,057
Current Assets per Covenant	44,951,035
Revolver Availability (Facility less debt less LCs)	214,965,000
Current Assets per Covenant	259,916,035

Current Liabilities	105,037,187
Less: Current financing lease liability	906,119
Less: Current operating lease liability	648,204
Less: Current derivative liabilities	6,410,547
Current Liabilities per Covenant	97,072,317

Current Ratio	2.68
Minimum Allowed	> or = 1.00	x

Calculation of Cash Return on Capital Employed

The Company defines “Return on Capital Employed” or “CROCE” as Adjusted Cash Flow from Operations divided by average debt and shareholder equity for the period. Management believes that CROCE is useful to investors as a performance measure when comparing our profitability and the efficiency with which management has employed capital over time relative to other companies. CROCE is not considered to be an alternative to net income reported in accordance with GAAP.

CROCE (Cash Return on Capital Employed):	As of and for the
	twelve months ended
	December 31,			December 31,			December 31,
		2024			2023			2022

Total long term debt (i.e. revolving line of credit)	$	385,000,000		$	425,000,000		$	415,000,000
Total stockholders’ equity	$	858,639,982		$	786,582,900		$	661,103,391

Average debt	$	405,000,000		$	420,000,000		$	352,500,000
Average stockholders’ equity		822,611,441			723,843,146			480,863,799
Average debt and stockholders’ equity		1,227,611,441			1,143,843,146			833,363,799

Net Cash Provided by Operating Activities	$	194,423,712		$	198,170,459		$	196,976,729
Less change in WC (Working Capital)		(888,089	)		1,180,748			24,091,577
Adjusted Cash Flows From Operations (ACFFO)	$	195,311,801		$	196,989,711		$	172,885,152

CROCE (ACFFO)/(Average D+E)		15.9	%		17.2	%		20.7	%

All-In Cash Operating Costs

The Company defines All-In Cash Operating Costs, a non-GAAP financial measure, as “all in cash” costs which includes lease operating expenses, G&A costs excluding share-based compensation, net interest expense (including interest income and expense, excluding amortization of deferred financing costs), workovers and other operating expenses, production taxes, ad valorem taxes, and gathering/transportation costs. Management believes that this metric provides useful additional information to investors to assess the Company’s operating costs in comparison to its peers, which may vary from company to company.

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2024		2024		2023		2024		2023
All-In Cash Operating Costs:
Lease operating expenses (including workovers)		20,326,216		20,315,282		18,732,082		78,310,949		70,158,227
G&A excluding share-based compensation		6,363,657		6,389,480		5,706,117		24,134,283		20,355,330
Net interest expense (excluding amortization of deferred financing costs)		8,688,653		9,383,658		10,285,429		37,850,690		38,748,863
Operating lease expense		175,090		175,091		175,090		700,362		541,801
Oil and natural gas production taxes		3,857,147		4,203,851		4,961,768		16,116,565		18,135,336
Ad valorem taxes		2,421,595		2,164,562		1,637,722		8,069,064		6,757,841
Gathering, transportation and processing costs		130,230		102,420		464,558		506,333		457,573
All-in cash operating costs		41,962,588		42,734,344		41,962,766		165,688,246		155,154,971

Boe		1,808,493		1,849,934		1,784,490		7,191,054		6,613,321

All-in cash operating costs per Boe	$	23.20	$	23.10	$	23.52	$	23.04	$	23.46

Cash Operating Margin

The Company defines Cash Operating Margin, a non-GAAP financial measure, as realized revenues per Boe less “all-in cash” operating costs per Boe. Management believes that this metric provides useful additional information to investors to assess the Company’s operating margins in comparison to its peers, which may vary from company to company.

	(Unaudited for All Periods)
	Three Months Ended						Twelve Months Ended
	December 31,		September 30,		December 31,		December 31,		December 31,
		2024		2024		2023		2024		2023
Cash Operating Margin
Realized revenues per Boe	$	46.14	$	48.24	$	56.01	$	50.94	$	54.60
All-in cash operating costs per Boe	$	23.20	$	23.10	$	23.52	$	23.04	$	23.46
Cash Operating Margin per Boe	$	22.94	$	25.14	$	32.49	$	27.90	$	31.14

¹ Non-GAAP financial measure. Please see “Non-GAAP Information” at the end of this release for details and reconciliations of GAAP to Non-GAAP.
² 2025 outlook includes the assets to be acquired in the Lime Rock Acquisition, with an anticipated closing date before the end of Q1 2025.

The MIL Network –

March 6, 2025

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

Source: GlobeNewswire (MIL-OSI)

Delivered 10% YoY growth in FY 2024 revenue driven by PAC business turnaround and 7^thstraight quarter of double-digit YoY ASP growth

Grew FY 2024 gross margins by approximately 410 bps YoY to 36.2% and achieved 3^rdconsecutive quarter of positive Adjusted EBITDA, highlighting sustained foundational PAC business improvement

Exited 2024 with a stronger financial position, successfully completing a $30 million ABL facility which lowers financing costs, increases capacity, and enhances liquidity

Development of transformational GAC facility continues; first production anticipated prior to quarter end in line with ramp up to 25 million pounds nameplate capacity in H2 2025

GREENWOOD VILLAGE, Colo., March 05, 2025 (GLOBE NEWSWIRE) — Arq, Inc. (NASDAQ: ARQ) (the “Company” or “Arq”), a producer of activated carbon and other environmentally efficient carbon products for use in purification and sustainable materials, today announced its financial and operating results for the quarter and year ended December 31, 2024.

Financial Highlights

Generated revenue of $109.0 million in FY 2024 ($27.0 million in Q4 2024), up 10% over the prior year, driven largely by higher Average Sales Price (“ASP”), and positive changes in product mix
Increased ASP in Q4 2024 by approximately 14% over the prior year period, reflecting the 7^th consecutive quarter of double-digit YoY percentage growth in ASP
All powder activated carbon (“PAC”) contracts are now net cash producers following the successful resolution of all negative margin agreements as of December 31, 2024
Improved FY 2024 gross margin to 36.2% in FY 2024, up approximately 410 basis points vs. FY 2023, driven by higher revenue, continued focus on profitability over volume, and ongoing operational cost management
Gross margin in Q4 2024 of 36.3% vs. 49.8% in Q4 2023 – prior quarter included a $4.7 million take-or-pay benefit and other non-recurring items vs. $1.6 million in Q4 2024. Q4 2024 was otherwise largely in-line with last year’s performance despite two brief but unplanned outages at the Red River plant
Reported Net loss of ($5.1) million in FY 2024, reflecting a significant improvement over the prior year period Net loss of ($12.2) million; Q4 2024 Net loss of ($1.3) million vs. Net income of $3.3 million in Q4 2023
Adjusted EBITDA of $7.7 million in FY 2024 vs. Adjusted EBITDA loss of ($2.6) million in the prior year⁽¹⁾; Adjusted EBITDA of $3.3 million in Q4 2024 vs. $7.2 million in the prior year period⁽¹⁾
Announced successful closing of a $30 million asset backed lending (“ABL”) facility, enhancing financial flexibility and reducing our cost of capital
Exited 2024 with cash and restricted cash of $22.2 million, including $8.7 million restricted cash
Capital expenditures for FY 2024 totaled $85.2 million, including $80.0 million growth capital expenditures associated with Red River Phase I development

⁽¹⁾ Adjusted EBITDA is a non-GAAP financial measure. Please refer to the paragraph titled “Non-GAAP Measures” for the definitions of non-GAAP financial measures and reconciliations to GAAP measures included in this press release.

Recent Business Highlights

Construction at Red River facility complete with commissioning ongoing and first production of granular activated carbon (“GAC”) at Red River expected by end of Q1 2025; on target to achieve first deliveries in Q1 2025
Ramp up of Red River GAC production anticipated to run into H2 2025; expect to achieve full run rate capacity of 25 million pounds in H2 2025
Approximately 16 million pounds of our 25 million pound per year nameplate capacity contracted
In negotiations to contract remaining capacity at Red River. Multiple in-situ pilot tests are underway with customers, a required step before finalizing contracts, and in-line with the expected ramp-up schedule
Potential to increase Red River’s 25 million pound per year nameplate capacity by 10-20% still targeted; timing of upside production run-rate expected to be defined once nameplate capacity is achieved

Management Commentary

“These results reinforce the durability of our transformation within the foundational PAC business,” said Bob Rasmus, CEO of Arq. “Our 2024 results show a business which has been successfully turned around into a cash flow contributor. The annualized performance of the business has materially improved and is more profitable. With our third consecutive quarter of positive Adjusted EBITDA, the direction of travel is extremely positive. I also believe this is a business which can still be enhanced further.”

Mr. Rasmus continued, “The capex overrun we experienced in Q4 was extremely frustrating, and while we actively look for ways to mitigate this increase, we remain confident that its impact on our long-term profitability and returns profile should be negligible.”

“The imminent start of GAC production is of course a major milestone for us and will represent a huge achievement for the whole team,” added Mr. Rasmus. “While we want to remain cautious on the duration of our ramp-up to nameplate capacity, there should be no doubt we will be trying to get there as quickly as possible. By H2 2025 we believe we will have a solid, sustainably profitable PAC business being complimented by a high growth GAC business, representing our springboard to future growth.”

Full Year 2024 Results

Revenues totaled $109.0 million for full year 2024, compared to $99.2 million in the prior year. The revenue increase was primarily driven by improved ASP and product diversification into higher value end-markets.

Cost of revenues totaled $69.5 million for full year 2024, compared to $67.3 million in the prior year. While total costs increased year over year, costs as a percentage of total revenue were down. This decrease in costs as a percentage of revenue was related to a decrease in the cost to manufacture our products, which primarily resulted from decreased variable production costs on lower production volumes during 2024.

Gross margin was 36.2% for full year 2024, compared to 32.1% in the prior year. The increase was driven by higher revenue as detailed above, as well as cost reductions.

Other operating expenses were $41.4 million for full year 2024, compared to $45.2 million in the prior year. The reduction was mainly driven by expenses incurred during 2023 relating to the acquisition of Arq Limited (“Legacy Arq”) (the “Arq Acquisition”) that did not occur in 2024.

Operating loss totaled ($2.0) million for full year 2024, compared to an operating loss of ($13.3) million in the prior year. The reduction in loss was mainly driven by the factors referenced above.

Interest expense was $3.3 million for full year 2024, compared to $3.0 million in the prior year. The increase was primarily driven by interest expenses related to the $10 million term loan with CF Global (the “CFG Loan”) of $2.3 million and $2.0 million in 2024 and 2023, respectively. The CFG Loan had a higher principal balance from the accrual of interest payable (PIK) upon the termination date of the CFG Loan, which was paid in December 2024.

Income tax benefit was $0.2 million for full year 2024, compared to an income tax expense of $0.2 million in the prior year.

Net loss was ($5.1) million, or ($0.14) per diluted share for full year 2024, compared to Net loss of ($12.2) million, or ($0.42) per diluted share in the prior year. The reduction in net loss was driven by higher revenues and a reduction in costs.

Adjusted EBITDA was $7.7 million for full year 2024, compared to an Adjusted EBITDA loss of ($2.6) million in the prior year. The increase was mainly driven by our continued focus on increasing revenues while driving costs down. Additionally, an addback of Adjusted EBITDA during 2024 related to Loss on extinguishment of debt of $1.4 million, related to our repayment of the CFG Loan in December 2024 led to the increase. See the note below regarding the use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

Fourth Quarter 2024 Results

Revenue totaled $27.0 million for Q4 2024, reflecting a decrease of 4% compared to $28.1 million in the prior year period. The reduction was driven predominantly by the one-off benefits delivered in Q4 2023 as a result of take-or-pay enforcement totaling $4.7 million vs. $1.6 million in the fourth quarter of 2024. Excluding these one-off items, revenue was up YoY. ASP for the fourth quarter of 2024 were up approximately 14% compared to prior year period, marking the 7^th consecutive quarter of double-digit year-over-year percentage growth in ASP.

Costs of revenue totaled $17.2 million for the fourth quarter of 2024, an increase of approximately 22% compared to $14.1 million in the prior year period.

Gross margin reduced to 36.3% for the fourth quarter of 2024, compared to 49.8% in the prior year period. The reduction in gross margin was driven by higher non-recurring revenues in Q4 2023 driven primarily by $3.1 million of additional take or pay enforcement in Q4 2023. Excluding this, Q4 2024 was largely in-line despite two brief but unplanned outages at our Red River plant.

Selling, general and administrative expenses totaled $6.0 million in Q4 2024, compared to $6.5 million in the prior year period. The reduction of approximately $0.5 million or 8% was primarily driven by a reduction in payroll and benefits as well as legal and consulting fees as the Company incurred incremental fees related to the Arq Acquisition in 2023.

Research and development costs totaled $0.7 million in Q4 2024, compared to $1.2 million in the prior year period. This reduction was primarily due to the Company performing product qualification testing in the prior year period with potential lead-adopters as part of its ongoing GAC contracting process in 2023.

Operating income was $0.4 million for the fourth quarter of 2024, compared to an operating income of $3.1 million in the prior year period. The reduction was mainly driven by the factors referenced above.

Net loss was ($1.3) million in the fourth quarter of 2024, or ($0.03) per diluted share, compared to a net income of $3.3 million, or $0.10 per diluted share, in the prior year period.

Adjusted EBITDA was $3.3 million for the fourth quarter of 2024, compared to Adjusted EBITDA of $7.2 million in the prior year period. The reduction was primarily driven by the significant one-off items discussed above. See note below regarding the use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation to the most comparable GAAP financial measure.

Capex and Balance Sheet

Capital expenditures totaled $85.2 million for full year 2024, compared to $27.5 million in the prior year. The increase vs. the prior year was driven by the ongoing expansion of our Red River and Corbin facilities. The increase in total 2024 capex from previous guidance of $60 – $70 million was primarily driven by several factors, including $4 – $5 million related to contractor errors associated with small-bore piping needs, roughly $3 – $4 million related to maintaining a timely completion, and approximately $2 million related to the need for additional external professional services.

The Company raised approximately $26.7 million of net equity proceeds in its September 2024 underwritten public offering of common stock, which, combined with approximately $15 million raised in a private placement of common stock in May 2024, resulted in year-to-date net equity proceeds raised through Q4 2024 of approximately $41.6 million.

In December 2024, the Company closed a $30 million ABL credit facility (the “ABL Facility”) with MidCap Financial, a leading commercial finance company focused on middle market transactions. Total available borrowing capacity for the ABL Facility is determined by a borrowing base calculation based on a certain percentage of eligible accounts receivable and inventory.

Initial drawdown from the ABL Facility ($13.8 million as of December 31, 2024) was utilized to refinance Arq’s outstanding CFG Loan. Going forward, the Company expects that proceeds from the ABL Facility will be used to finance ongoing working capital requirements and potential capital expenditures related to the Company’s strategic growth investment at its Red River plant, as well as to support general corporate purposes.

Cash as of December 31, 2024, including $8.7 million of restricted cash, totaled $22.2 million, compared to $54.2 million as of December 31, 2023. The reduction was largely driven by increased expenditures relating to the Red River GAC expansion.

Total debt, inclusive of financing leases, as of December 31, 2024, totaled $24.8 million compared to $20.9 million as of December 31, 2023. The increase was driven by closing the ABL Facility.

Conference Call and Webcast Information

Arq will host its Q4 2024 earnings conference call on March 6, 2025, at 8:30 a.m. ET. The live webcast can be accessed through the Investor Resources section of Arq’s website at www.arq.com. Interested parties may participate in the conference call by registering at https://www.webcast-eqs.com/arq20250306. Alternatively, the live conference call may be accessed by dialing (877) 407-0890 or (201) 389-0918 and referencing Arq. An investor presentation will also be available in the Investor Resources section before the call begins.

A replay of the event will be made available shortly after the event and accessible via the same webcast link referenced above. Alternatively, the replay may be accessed by dialing (877) 660-6853 or (201) 612-7415 and entering Access ID 13751420. The dial-in replay will expire after March 13, 2025.

About Arq

Arq (NASDAQ: ARQ) is a diversified, environmental technology company with products that enable a cleaner and safer planet while actively reducing our environmental impact. As the only vertically integrated producer of activated carbon products in North America, we deliver a reliable domestic supply of innovative, hard-to-source, high-demand products. We apply our extensive expertise to develop groundbreaking solutions to remove harmful chemicals and pollutants from water, land and air. Learn more at: www.arq.com.

Caution on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a “safe harbor” for such statements in certain circumstances. When used in this press release, the words “can,” “will,” “may,” “intends,” “expects,” “continuing,” “believes,” similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. All statements that address activities, events or developments that the Company intends, expects or believes may occur in the future are forward-looking statements. These forward-looking statements include, but are not limited to, statements or expectations regarding: the anticipating timing of the completion of commissioning of the GAC Facility, ramp-up to full nameplate capacity at our Red River facility, and commercial production of our GAC products; the anticipated effects from fluctuations in the pricing of our AC products; expected supply and demand for our AC products and services, including our GAC products; the seasonal impact on our customers and their demand for our products; the ability to continue to successfully integrate Legacy Arq’s business and recognize the benefits and synergies from the Arq Acquisition; the ability to continue to develop and utilize Legacy Arq’s products and technology and the anticipated timing for bringing such products to market; our ability to access new markets for our GAC and other products; any future plant capacity expansions or site development projects and our ability to finance any such projects; the effectiveness of our technologies and the benefits they provide; the timing of awards of, and work and related testing under, our contracts and agreements and their value; probability of any loss occurring with respect to certain guarantees made by Tinuum Group; the timing and amounts of or changes in future revenue, funding for our business and projects, margins, expenses, earnings, tax rates, cash flows, royalty payment obligations, working capital, liquidity and other financial and accounting measures; the performance of obligations secured by our surety bonds; the amount and timing of future capital expenditures needed to fund our business plan; the impact of capital expenditure overruns on our business; awards of patents designed to protect our proprietary technologies both in the U.S. and other countries; the adoption and scope of regulations to control certain chemicals in drinking water and other environmental concerns and the impact of such regulations on our customers’ and our businesses, including any increase or decrease in sales of our AC products resulting from such regulations; the impact of adverse global macroeconomic conditions, including rising interest rates, recession fears and inflationary pressures, and geopolitical events or conflicts; opportunities to effectively provide solutions to our current and future customers to comply with regulations, improve efficiency, lower costs and maintain reliability; and the impact of prices of competing power generation sources such as natural gas and renewable energy on demand for our products. These forward-looking statements included in this press release involve risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, the timing and scope of new and pending regulations and any legal challenges to or extensions of compliance dates of them; the U.S. government’s failure to promulgate new regulations or enforce existing regulations that benefit our business; changes in laws and regulations, accounting rules, prices, economic conditions and market demand; availability, cost of and demand for alternative energy sources and other technologies and their impact on coal-fired power generation in the U.S.; technical, start up and operational difficulties; competition within the industries in which the Company operates; risks associated with our debt financing; our inability to effectively and efficiently commercialize new products, including our GAC products; our inability to effectively manage commissioning and startup of the GAC facility at our Red River plant; disruptions at any of our facilities, including by natural disasters or extreme weather; risks related to our information technology systems, including the risk of cyberattacks on our networks; failure to protect our intellectual property from infringement or claims that we have infringed on the intellectual property of others; our inability to obtain future financing or financing on terms that are favorable to us; our inability to ramp up our operations to effectively address recent and expected growth in our business; loss of key personnel; ongoing effects of the inflation and macroeconomic uncertainty, including from the new U.S. presidential administration, increased domestic and international tariffs, lingering effects of the pandemic and armed conflicts around the world, and such uncertainty’s effect on market demand and input costs; availability of materials and equipment for our business; intellectual property infringement claims from third parties; pending litigation; factors relating to our business strategy, goals and expectations concerning the Arq Acquisition; our ability to maintain relationships with customers, suppliers and others with whom the Company does business and meet supply requirements; our results of operations and business generally; risks related to diverting management’s attention from our ongoing business operations; costs related to the ongoing manufacturing of our products, including our GAC products; opportunities for additional sales of our AC products and end-market diversification; the timing and scope of new and pending regulations, executive orders and any legal challenges to or extensions of compliance dates of them; the rate of coal-fired power generation in the U.S.; the timing and cost of any future capital expenditures and the resultant impact to our liquidity and cash flows; and the other risk factors described in our filings with the SEC, including our most recent Annual Report on Form 10-K. You are cautioned not to place undue reliance on the forward-looking statements and to consult filings we have made and will make with the SEC for additional discussion concerning risks and uncertainties that may apply to our business and the ownership of our securities. In addition to causing our actual results to differ, the factors listed above may cause our intentions to change from those statements of intention set forth in this press release. Such changes in our intentions may also cause our results to differ. We may change our intentions, at any time and without notice, based upon changes in such factors, our assumptions, or otherwise. The forward-looking statements speak only as to the date of this press release, and we disclaim any duty to update such statements unless required by law.

Source: Arq, Inc.

Investor Contact:
Anthony Nathan, Arq
Marc Silverberg, ICR
investors@arq.com


Arq, Inc. and Subsidiaries Consolidated Balance Sheets

	As of December 31,
(in thousands, except share data)		2024			2023
ASSETS
Current assets:
Cash	$	13,516		$	45,361
Receivables, net		14,876			16,192
Inventories, net		19,314			19,693
Prepaid expenses and other current assets		4,650			5,215
Total current assets		52,356			86,461
Restricted cash, long-term		8,719			8,792
Property, plant and equipment, net of accumulated depreciation of $26,619 and $19,293, respectively		178,564			94,649
Other long-term assets, net		44,729			45,600
Total Assets	$	284,368		$	235,502
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	21,017		$	14,603
Revolving credit facility		13,828			—
Current portion of long-term debt obligations		1,624			2,653
Other current liabilities		8,184			5,792
Total current liabilities		44,653			23,048
Long-term debt obligations, net of current portion		9,370			18,274
Other long-term liabilities		13,069			15,780
Total Liabilities		67,092			57,102
Commitments and contingencies
Stockholders’ equity:
Preferred stock: par value of $0.001 per share, 50,000,000 shares authorized, none issued or outstanding		—			—
Common stock: par value of $0.001 per share, 100,000,000 shares authorized, 46,639,930 and 37,791,084 shares issued and 42,021,784 and 33,172,938 shares outstanding at December 31, 2024 and 2023, respectively		47			38
Treasury stock, at cost: 4,618,146 and 4,618,146 shares as of December 31, 2024 and 2023, respectively		(47,692	)		(47,692	)
Additional paid-in capital		198,487			154,511
Retained earnings		66,434			71,543
Total Stockholders’ Equity		217,276			178,400
Total Liabilities and Stockholders’ Equity	$	284,368		$	235,502


Arq, Inc. and Subsidiaries Consolidated Statements of Operations

	Three Months Ended December 31,						Years Ended December 31,
(in thousands, except per share data)		2024			2023			2024			2023
	(unaudited)
Revenue	$	27,040		$	28,104		$	108,959		$	99,183

Cost of revenue, exclusive of depreciation and amortization		17,236			14,105			69,515			67,323

Operating expenses:
Selling, general and administrative		5,960			6,495			28,695			34,069
Research and development		709			1,169			4,050			3,314
Depreciation, amortization, depletion and accretion		2,504			3,267			8,594			10,543
Loss (gain) on sale of assets		218			(36	)		64			(2,731	)
Total operating expenses		9,391			10,895			41,403			45,195
Operating income (loss)		413			3,104			(1,959	)		(13,335	)
Other (expense) income:
Earnings from equity method investments		—			111			127			1,623
Interest expense		(831	)		(859	)		(3,257	)		(3,014	)
Loss on extinguishment of debt		(1,422	)		—			(1,422	)		—
Other		307			1,120			1,238			2,630
Total other (expense) income		(1,946	)		372			(3,314	)		1,239
(Loss) income before income taxes		(1,533	)		3,476			(5,273	)		(12,096	)
Income tax (benefit) expense		(194	)		186			(164	)		153
Net (loss) income	$	(1,339	)	$	3,290		$	(5,109	)	$	(12,249	)
(Loss) income per common share:
Basic	$	(0.03	)	$	0.10		$	(0.14	)	$	(0.42	)
Diluted	$	(0.03	)	$	0.10		$	(0.14	)	$	(0.42	)
Weighted-average number of common shares outstanding:
Basic		41,275			32,367			36,051			29,104
Diluted		41,275			32,952			36,051			29,104


Arq, Inc. and Subsidiaries Consolidated Statements of Cash Flows

	Years Ended December 31,
(in thousands)		2024			2023
Cash flows from operating activities
Net loss	$	(5,109	)	$	(12,249	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, amortization, depletion and accretion		8,594			10,543
Stock-based compensation expense		2,715			2,648
Operating lease expense		2,004			2,757
Loss from extinguishment of debt		1,422			—
Amortization of debt discount and debt issuance costs		601			546
Loss (gain) on sale of assets		64			(2,731	)
Earnings from equity method investments		(127	)		(1,623	)
Other non-cash items, net		37			(75	)
Changes in operating assets and liabilities:
Receivables and related party receivables		1,316			(2,264	)
Prepaid expenses and other assets		1,166			4,777
Inventories, net		1,636			(2,571	)
Other long-term assets, net		(2,166	)		(4,762	)
Accounts payable and accrued expenses		216			(12,061	)
Other current liabilities		1,144			(184	)
Operating lease liabilities		(1,272	)		(168	)
Other long-term liabilities		(1,764	)		764
Net cash provided by (used in) operating activities		10,477			(16,653	)
Cash flows from investing activities
Acquisition of property, plant, equipment and intangible assets, net		(85,170	)		(27,516	)
Acquisition of mine development costs		(181	)		(2,690	)
Proceeds from sale of property and equipment		150			—
Distributions from equity method investees in excess of cumulative earnings		127			1,623
Cash and restricted cash acquired in business acquisition		—			2,225
Payment for disposal of Marshall Mine, LLC		—			(2,177	)
Net cash used in investing activities	$	(85,074	)	$	(28,535	)
Cash flows from financing activities
Net proceeds from common stock issued in public offering	$	26,654		$	—
Net proceeds from common stock issued in private placement transactions		14,951			15,220
Borrowings on revolving credit facility		13,828			—
Net proceeds from common stock issued to related party		800			1,000
Principal payments on notes payable		(10,544	)		(473	)
Repurchase of common stock to satisfy tax withholdings		(1,135	)		(230	)
Principal payments on finance lease obligations		(1,022	)		(1,130	)
Payment of debt issuance costs		(633	)		—
Payment of debt extinguishment costs		(220	)		—
Net proceeds from CFG Loan, related party, net of discount and issuance costs		—			8,522
Net cash provided by financing activities		42,679			22,909
Decrease in Cash and Restricted Cash		(31,918	)		(22,279	)
Cash and Restricted Cash, beginning of year		54,153			76,432
Cash and Restricted Cash, end of year	$	22,235		$	54,153

Supplemental disclosure of cash flow information:
Cash paid for interest	$	2,017		$	1,727
Cash received for income taxes	$	(452	)	$	(1,697	)
Supplemental disclosure of non-cash investing and financing activities:
Change in accrued purchases for property and equipment	$	6,198		$	914
Purchase of property and equipment through note payable	$	1,004		$	—
Equity issued as consideration for acquisition of business	$	—		$	31,206
Paid-in-kind dividend on Series A Preferred Stock	$	—		$	157

Note on Non-GAAP Financial Measures

To supplement our financial information presented in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”), we provide certain supplemental financial measures, including EBITDA and Adjusted EBITDA, which are measurements that are not calculated in accordance with U.S. GAAP. EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA reduced by the non-cash impact of equity earnings from equity method investments and other non-cash gains, increased by cash distributions from equity method investments, other non-cash losses and non-recurring costs and fees. EBITDA and Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income (loss) in accordance with U.S. GAAP as a measure of performance. See below for a reconciliation from net income (loss), the nearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.

We believe that the EBITDA and Adjusted EBITDA measures are less susceptible to variances that affect our operating performance. We include these non-GAAP measures because management uses them in the evaluation of our operating performance, and believe they help to facilitate comparison of operating results between periods. We believe the non-GAAP measures provide useful information to both management and users of the financial statements by excluding certain expenses, gains, and losses which can vary widely across different industries or among companies within the same industry and may not be indicative of core operating results and business outlook.

EBITDA and Adjusted EBITDA:

The following table reconciles net income (loss), our most directly comparable as-reported financial measure calculated in accordance with U.S. GAAP, to EBITDA and Adjusted EBITDA (Adjusted EBITDA loss).


Arq, Inc. and Subsidiaries Reconciliation of Net income (loss) to EBITDA and Adjusted EBITDA (Adjusted EBITDA loss) *(Unaudited)*

	Three Months Ended									Years Ended
	September 30,			December 31,						December 31,
(in thousands)		2024			2024			2023			2024			2023
Net income (loss)	$	1,617		$	(1,339	)	$	3,290		$	(5,109	)	$	(12,249	)
Depreciation, amortization, depletion and accretion		2,716			2,504			3,267			8,594			10,543
Amortization of Upfront Customer Consideration		127			127			127			508			508
Interest expense, net		600			516			346			2,154			1,168
Income tax (benefit) expense		—			(194	)		186			(164	)		153
EBITDA		5,060			1,614			7,216			5,983			123
Cash distributions from equity method investees		127			—			111			127			1,623
Equity earnings		(127	)		—			(111	)		(127	)		(1,623	)
Loss on extinguishment of debt		—			1,422			—			1,422			—
(Gain) loss on sale of assets		(154	)		218			—			64			(2,695	)
Gain on change in estimate, asset retirement obligation		—			—			(37	)		—			(37	)
Financing costs		228			47			—			275			—
Adjusted EBITDA (Adjusted EBITDA loss)	$	5,134		$	3,301		$	7,179		$	7,744		$	(2,609	)

The MIL Network –

March 6, 2025

MIL-OSI: ArrowMark Financial Corp. Announces Special Distribution of $0.10 and Regular Cash Distribution of $0.45 per Share for the First Quarter 2025

Source: GlobeNewswire (MIL-OSI)

DENVER, March 05, 2025 (GLOBE NEWSWIRE) — ArrowMark Financial Corp. (Nasdaq: BANX) (“ArrowMark Financial” or the “Company”), an SEC registered closed-end management investment company, today announced that its Board of Directors has declared a special cash distribution of $0.10 per share generated from excess income, and a regular cash distribution of $0.45 per share for the first quarter 2025. The total distribution of $0.55 per share will be payable on March 27, 2025 to shareholders of record on March 20, 2025.

“We are very pleased to announce a special distribution for Q1 2025 along with the regular quarterly distribution of $0.45. We believe this distribution reflects the Fund’s ability to consistently over-earn its declared quarterly distribution rate. ArrowMark Financial is committed to providing consistent risk-adjusted returns while maintaining focus on capital preservation and income generation for our shareholders,” said Chairman & CEO Sanjai Bhonsle.

About ArrowMark Financial Corp.

ArrowMark Financial Corp. is an SEC registered non-diversified, closed-end fund listed on the NASDAQ Global Select Market under the symbol “BANX.” Its investment objective is to provide shareholders with current income. The Fund pursues its objective by investing primarily in regulatory capital securities of financial institutions. ArrowMark Financial is managed by ArrowMark Asset Management, LLC. To learn more, visit ir.arrowmarkfinancialcorp.com or contact the Fund’s secondary market service agent at 877-855-3434.

Disclaimer and Risk Factors:

There is no assurance that ArrowMark Financial will achieve its investment objective. ArrowMark Financial is subject to numerous risks, including investment and market risks, management risk, income and interest rate risks, banking industry risks, preferred stock risk, convertible securities risk, debt securities risk, liquidity risk, valuation risk, leverage risk, non-diversification risk, credit and counterparty risks, market at a discount from net asset value risk and market disruption risk. Shares of closed-end investment companies may trade above (a premium) or below (a discount) their net asset value. Shares of ArrowMark Financial may not be appropriate for all investors. Investors should review and consider carefully ArrowMark Financial’s investment objective, risks, charges and expenses. Past performance does not guarantee future results.

The Annual Report, Semi-Annual Report and other regulatory filings of the Fund with the SEC are accessible on the SEC’s website at www.sec.gov and on the Fund’s website at ir.arrowmarkfinancialcorp.com.

Contact:

BANX@destracapital.com

Destra Capital Advisors LLC (877) 855-3434
Destra Capital Advisors LLC provides secondary market services for the Fund by agreement.

The MIL Network –

March 6, 2025
MIL-OSI USA: Welch Reintroduces the Digital Integrity in Democracy Act

US Senate News:

Source: United States Senator Peter Welch (D-Vermont)
Bill will increase accountability for election-related disinformation
WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.) led Senators Amy Klobuchar (D-Minn.), Jeff Merkley (D-Ore.), Ben Ray Luján (D-N.M.), and Mazie Hirono (D-Hawaii) this week in reintroducing the Digital Integrity in Democracy Act, legislation to increase accountability for social media platforms that knowingly host false election administration information. The bill aims to strengthen voting rights protections by carving out a narrow exception from existing legal immunity for social media platforms that intentionally or knowingly amplify election-related misinformation.
“Across the country, voting rights are under attack. We see that very clearly on social media, where carefully orchestrated campaigns target voters with false information in an effort to keep them from the ballot box. But social media platforms have been reluctant to intervene and remove this false information, letting these harmful lies live online. They need a reality check,” said Senator Welch. “Our bill seeks to hold social media platforms accountable for intentionally hosting false election administration information to ensure every voter can fairly participate in our democracy.”
“Free and fair elections are the cornerstone of our democracy. While election disinformation is not new, emerging technologies make it easier to deceive Americans about how to exercise their right to vote,” said Senator Klobuchar. “This legislation will combat efforts intended to disenfranchise voters by holding social media companies accountable for allowing false information on their platforms about voting like when and where to cast a ballot.”
“We must crack down on the spread of false information about our elections,” said Senator Merkley. “Preserving a government ‘of, by, and for the people’ depends on protecting voters from the quick, easy spread of misinformation on social media that can jeopardize voters’ ability to exercise their right to vote.”
“Falsehoods posted on social media about the time, place and manner of an election, and lies about voter eligibility requirements, are spread with the intent to suppress voter turnout,” said Senator Luján. “I’m proud to cosponsor the Digital Integrity in Democracy Act, legislation that would hold large-scale social media companies accountable for removing these types of election falsities. This is a reasonable, balanced approach to protecting voters and our democracy, while also protecting free speech online.”
“Disinformation about elections on social media platforms is a threat to our democracy and to the right of all Americans to make their voices heard in our elections,” said Senator Hirono. “I’m glad to join Senator Welch and our colleagues in introducing this legislation to hold social media companies accountable for election disinformation shared on their platforms.”
The Digital Integrity in Democracy Act is endorsed by Common Cause and Stand Up America.
“All voters deserve access to trusted information about our elections. However, when social media companies knowingly allow and amplify false election information on their platforms, voters are left in the dark,” said Ishan Mehta, Common Cause’s Media and Democracy Program Director. “Common Cause thanks Senator Welch for introducing the Digital Integrity in Democracy Act to ensure that voters can get trusted information about elections when making their voices heard, and we encourage Congress to quickly pass this legislation.”
“Recent decisions at Meta show that social media companies do not want to take responsibility for the content on their platforms. They don’t care if misinformation and disinformation flow rampantly – they’re profiting from it. Instead, they want to exploit users as unpaid labor to do the fact-checking without any real oversight (i.e. Community Notes on Twitter/X and Facebook),” said Dayanita Ramesh, Senior Social Media Director at Stand Up America. “The truth still matters, particularly when it comes to our elections and our freedom to vote. Senator Welch’s Digital Integrity in Democracy Act would finally hold social media companies accountable for spreading lies about election information and voting access. We applaud Senator Welch’s leadership in demanding accountability from these platforms and ensuring the American people have the accurate information they need to exercise their freedom to vote.”
Learn more about the Digital Integrity in Democracy Act.
Read a section-by-section summary and full text of the bill.

MIL OSI USA News –

March 6, 2025
MIL-OSI United Kingdom: £2.6m investment package for adult social care as Westminster City Council approves new budget plans | Westminster City Council
Source: City of Westminster

Budget approved for improvements to key areas such as adult social care and housing as the council launches its new Fairer Westminster delivery plan for the next three years.

Westminster City Council has today announced a major new investment of £2.6m to go into cushioning the cost of adult social care – meaning hundreds of adult social care users will now not pay for care, while hard working care assistants will earn more.

Approved at Full Council (Wednesday March 5), additional funding for adult social care includes £1.4m to increase the pay of the personal care assistants (over 400 staff) who provide care for Westminster residents through direct payments.

This will improve the quality of care for care receivers and help more people who use adult social care to employ the carer they want as they will now be able to pay a competitive salary.

Direct payment recipients will now be able to offer an additional £1.50- £2.00 an hour salary for their personal assistant, so those who opt to receive direct payments to pay for their care needs will see their monthly funds increase.

An additional £1.2m is also being invested to level up the threshold at which people start to pay for their social care costs so that it is the same for everyone regardless of age. This will help over 460 residents aged under 65 to keep more of their income before paying care bills.

Colin, a Westminster resident who receives direct payments to support with his care needs, said:

“At 59, I’ve been fortunate to receive direct payments since graduating from university at 21, enabling me to live independently in my own home and manage my care on my terms.

“While direct payments may not suit every disabled person due to the associated responsibilities, for those willing to take them on, they can be life-enhancing and transformative.

“I believe the additional £1.4 million that Westminster City Council is allocating to personal carers’ pay will make the carer role competitive in the labour market once again, making it easier to attract people to work with me.

“Many disabled people have found it challenging to recruit quality social care workers in recent years.

“The increased funding could help me, as an employer, attract candidates from companies like Amazon and McDonald’s, which traditionally offer higher wages.

“It may also help encourage young people to view social care as a viable career option that offers a respectable and ethical wage. Society’s general underappreciation of care work has made finding and retaining good carers difficult.”

The approval of the budget at Full Council coincides with the launch of the new Fairer Westminster delivery plan, which outlines the council’s ambitions for the future of the city, and what it wants to achieve to make Westminster a great place to live. Led by voices and priorities from the community, the new plan aims to create meaningful change by providing effective, value-for-money services and accessible opportunities for all, so every resident in the city can thrive.

Headline announcements in the approved budget to kick-start the Fairer Westminster delivery plan for 2025 include:
- An extra £1.2m to tackle rough sleeping and help people off the pavements and into safety.
- Help to relieve pressure on Westminster’s housing waiting list by investing an additional £140m into buying and expanding temporary accommodation.
- An extra £1m on cost of living support to turn short-term relief into long-term solutions – such as free school meals during school holidays, supermarket food vouchers, a hardship fund and supporting specialist advice centres.
- Investing £10m into high streets across Paddington and Bayswater to support local economies and make the areas more dynamic.
- Investing in new Community hubs such as Ernest Harris House opening this Spring and the Pimlico Community hub at site of the Old Pimlico Library opening in 2026.
- An additional £2m for anti-social and city management measures across the city, including the recruitment of eight new City Inspectors and doubling the number of CCTV cameras on the streets to 200, including 40 new cameras in the West End.
The Council will also deliver new savings of nearly £30m by 2028 through measures including greater efficiencies in contracts and the switch to an electric cleaning and waste fleet.

The budget sets out detailed spending plans for managing more than 20,000 local authority properties under what is called the Housing Revenue Account. The business plan includes total capital investment of £916m over the next 5 years and a total of £2.5bn over the full 30 years. The budget also sets out the business plan for funding the council’s fairer Westminster programme under its capital strategy. The Council is proposing a gross capital programme up to 2038/39 of £2.5bn, partially offset by nearly £1.2bn of income, giving a net budget of £1.3bn.

Despite the scale of new investment, the Council Tax rise equals just 48p a week for a Band D* property, which means Westminster still has one of the lowest Council Tax rates in the country. The Westminster City Council part of the Council Tax rises by 4.99 per cent overall – 2.99 per cent for council services and 2 per cent for the portion set aside for adult social care.
- Adults under 65 with disabilities will be able to keep at least £272.69 a week after they have paid their care bills – meaning 147 Westminster residents will now pay less for support and 315 will no longer pay anything at all.
- The eight City Inspectors are an additional resource to the creation of the street-based intervention team announced in January https://www.westminster.gov.uk/news/new-front-line-team-tackle-street-based-anti-social-behaviour-asb-westminster
- You can see full details of the approved Budget here: Full Council papers
- The Fairer Westminster delivery plan and the approved investment is split between; housing, temporary accommodation and rough sleeping; schools, children’s social care and youth services; waste, street cleansing, highways and public protection; public health and adult social care; and enabling services. Read the full Fairer Westminster delivery plan here: Delivering a Fairer Westminster
MIL OSI United Kingdom –
March 6, 2025
MIL-OSI Russia: Five best articles in Russian for 05.03.2025
MIL Analysis: Here are the top five Russian language articles published today. The analysis includes five key articles prioritized at the moment.

Long-term bank deposits are relevant in today’s analysis, but inflation is still high.

Social infrastructure is productive. The Moscow Metro is improving every year, and it is again celebrating its results for the last two years on the Great Ring Line. In addition, there is a new function on the portal “Recognize Moscow” to facilitate information about the city of Moscow.

Moscow is preparing for International Women’s Day, and you can already see decorations around the city in the form of posters and exhibitions dedicated to the women of Russia.

From March 1 to May 31, 2025, applications are accepted for the All-Russian contest called “Golden Names of Higher Education”. The contest is open to faculty members.

Below you can read one of the entries.

1. Term matters – Russians are shifting their savings to long deposits.

How did the bank deposit market change at the beginning of 2025?

Russians’ demand for long deposits started to grow in January 2025 – customers are trying to lock in a high rate for a long term. According to the data of the platform “Finuservices” for the first two months of the year:
- the share of deposits for 6 months decreased by 1.5 p.p., amounting to 54% of total deposits – the term is still the most popular;
- the share of deposits for 3 months decreased by 1.3 p.p. to 25.2%;
- the share of deposits for 3 months decreased by 1.5 p.p. to 25.2%. – to 25.2%;
- the share of 1-month deposits also decreased by 1.3 p.p. to 3.1%;
- the share of deposits for one year, on the contrary, increased by 3 p.p. to 13.7%;
- deposits with maturity over one year also show insignificant growth.
2. We invite GUU teachers to participate in the All-Russian contest “Golden Names of Higher Education”.

From March 1 to May 31, 2025 applications are accepted for participation in the All-Russian Contest “Golden Names of Higher School”. We invite the professorial and pedagogical staff of the State University of Management to participate in the Contest.

The contest “Golden Names of Higher School” is held by the Interregional Public Organization “League of Higher School Teachers” with the support of the Ministry of Science and Higher Education of the Russian Federation since 2017. It is aimed at identifying and supporting talented teachers and scientists who have made a significant contribution to the development of Russian higher education and science. Over 7 thousand teachers have participated in the Contest throughout its history.

3. Moscow Metro celebrates two years of through traffic on the Great Ring Line, having served more than 740 million passengers.

The Moscow Metro celebrates the second anniversary of the launch of through traffic on the Great Ring Line (BCL), a monumental achievement in the city’s transportation infrastructure. Since its full launch two years ago, the BCL has served more than 740 million passengers, changing the way Muscovites travel around the city.

4. Everything about your capital city: how the personal account of the “Learn Moscow” portal has been updated.

A new function has appeared in the user’s personal cabinet on the “Learn Moscow” portal. Now in the “Favorites” section you can create your own selections of online routes, articles about museums, monuments and buildings, as well as materials about people who have left their mark on the culture and history of the capital. This will make it easier for users to systematize information about the places they want to visit and find the content they like faster.

5. “Such different girls, girls, women”: Glavarkhiv invites to the exhibition for March 8.

The exhibition “Such Different Girls, Girls, Women” dedicated to International Women’s Day opened on Chistoprudny Boulevard and in Ekaterininsky Park. The exhibition includes photographs from the funds of the Moscow Glavarkhiv from the 1900s to the 1980s. The photos depict girls of different professions. The exhibition can be viewed until April 4.

Learn more about MIL’s content and data services by visiting milnz.co.nz.

Regards MIL!
MIL OSI Russia News –
March 6, 2025
MIL-OSI USA: Mandatory Spending Under the Jurisdiction of the House Committee on Energy and Commerce
Source: US Congressional Budget Office

In response to a request from Ranking Member Boyle and Ranking Member Pallone, CBO provides information about projections of mandatory spending for the 2025–2034 period for the list of programs, excluding Medicare, that the Members indicated are under the jurisdiction of the House Committee on Energy and Commerce.

In CBO’s January 2025 baseline budget projections, mandatory outlays for the accounts that the Members asked about total $8.8 trillion for the 2025–2034 period. Medicaid outlays account for $8.2 trillion, or 93 percent, of that amount (see Table 1 in the PDF).

The Members also asked for two subtotals of projected outlays in Table 1:
- Outlays other than for Medicaid total $581 billion through 2034.
- Outlays other than for Medicaid and CHIP total $381 billion over the 10‑year period.
Among the largest programs other than Medicaid and CHIP are the risk adjustment program, in which health insurers make payments to the government or receive payments from it according to the health of their enrollees ($158 billion), and the Universal Service Fund ($87 billion). The risk adjustment program, however, is budget neutral with revenues offsetting spending. Spending from the Universal Service Fund is derived from fees that are classified as revenues on certain telecommunication services. Outlays for all other programs total $135 billion, on net, over the period, encompassing spending for a variety of federal activities.

MIL OSI USA News –
March 6, 2025
MIL-OSI USA: Update on Alert: Infusion Pump Issue from Fresenius Kabi USA

Source: US Department of Health and Human Services – 3

This communication is part of the Communications Pilot to Enhance the Medical Device Recall Program. This recall involves removing certain devices from where they are used or sold. The FDA has identified this recall as the most serious type. This device may cause serious injury or death if you continue to use it. The affected products and recommendations for what to do with the devices below have not changed.
Affected Product

The FDA is aware that Fresenius Kabi USA has issued a letter to affected health care providers indicating a subset of Ivenix large-volume pumps are to be removed from use for repair.

Ivenix large-volume pump, LVP-0004
UDI 00811505030320

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What to Do

On December 5, 2024, Fresenius Kabi USA sent all affected customers a letter recommending the following actions to be taken until the affected LVPs are returned for pneumatic valve repair:

Review the list of affected Serial Numbers and post the list in a public place. If possible, remove and isolate all affected devices from circulation to prevent inadvertent use.
If removing all or some of the devices from active use is not feasible (that is, no alternative pumps are available and patient care would be compromised), proceed with caution as outlined below:

If the Ivenix LVP is being used to deliver life-sustaining medications, enhance clinical monitoring during use and ensure an additional LVP is available for situations where an interruption in infusion could be dangerous. If a problem is encountered, remove the pump from circulation, use the backup LVP to continue, and report the event to Fresenius Kabi.
For Pump Problem alarm during set up, use another LVP and report the issue to your institution’s biomedical engineers. Remove the pump from circulation and report the event to Fresenius Kabi.
For Pump Problem alarm during use, reprogram the infusion on another LVP and report the issue to your institution’s biomedical engineers. Remove the pump from circulation and report the event to Fresenius Kabi.
Post the steps above and the list of affected Serial Numbers at each nursing station.

Inform potential users of the product within your organization of this notification.

Reason for Alert
Fresenius Kabi USA reports that a subset of pneumatic valves installed in some Ivenix LVPs have an increased chance of issuing a non-recoverable pump problem alarm. All devices with the affected valves, should be removed from use, as described in the What to do section above, to be evaluated and returned to Fresenius Kabi’s facility for repair.

If the pneumatic valve fails, a Pump Problem alarm will be raised.
If this failure occurs during LVP setup, this could potentially delay therapy. (See Image 1 below)

If this failure occurs during an active infusion and flow is interrupted, this could lead to an underdose. (See Image 2 below)

Delay or interruption of a life-sustaining infusion may result in permanent disability or death.

The pump problem alarms are working as intended and will arise indicating when to act, if the malfunction occurs.
The firm has not reported any injuries or deaths associated with this issue.
Device Use
The Ivenix LVP is a large volume infusion pump designed to deliver fluids and medications from one of two inlet source containers to the patient through a single outlet. When loaded with an administration set, the LVP delivers infusion therapy to an individual patient.
Contact Information
Customers in the U.S. with adverse reactions, quality problems, or questions about this recall should contact Fresenius Kabi USA at Ivenix_support@fresenius-kabi.com or 1-855-354-6387.
Additional FDA Resources

Unique Device Identifier (UDI)
The unique device identifier (UDI) helps identify individual medical devices sold in the United States from distribution to use. The UDI allows for more accurate reporting, reviewing, and analyzing of adverse event reports so that devices can be identified more quickly, and as a result, problems potentially resolved more quickly.

How do I report a problem?
Health care professionals and consumers may report adverse reactions or quality problems they experienced using these devices to MedWatch: The FDA Safety Information and Adverse Event Reporting Program.

Content current as of:
03/05/2025

Regulated Product(s)

MIL OSI USA News –

March 6, 2025
MIL-OSI USA: Update on Alert: Endoscope Accessories Forceps/Irrigation Plug Issue from Olympus

Source: US Department of Health and Human Services – 3

This communication is part of the Communications Pilot to Enhance the Medical Device Recall Program. This recall involves removing certain devices from where they are used or sold. The FDA has identified this recall as the most serious type. This device may cause serious injury or death if you continue to use it. The affected products and recommendations for what to do with the devices below have not changed.
Affected Product

The FDA is aware that Olympus has issued a letter to affected health care providers recommending the forceps/irrigation plug accessory to certain endoscopes be removed from use:

MAJ-891 Forceps/Irrigation Plug (Isolated Type)
All lots
UDI: 04953170063114

Full Listing of Olympus Endoscopes compatible with the MAJ-891 and Compatible Alternative Devices to MAJ-891

Scope Series
Model Number
Model Name
Compatible with MAJ-2092
Compatible with BPS-Y

Cystoscope (CYF Series)
CYF-240
CYF-240 Flexible Video CystoNephroscope
No
Yes

Cystoscope (CYF Series)
CYF-5
CYF-5 CYSTOSCOPE EVOLUTIONTI
Yes
Yes

Cystoscope (CYF Series)
CYF-5A
N3627870 CYF-5A CYSTOSCOPE E
Yes
Yes

Cystoscope (CYF Series)
CYF-5R
CYF-5R Flex CystoNephro Fiberscope Rever
Yes
Yes

Cystoscope (CYF Series)
CYF-V2
CYF-V2 VISERA Cysto-Nephro v
Yes
Yes

Cystoscope (CYF Series)
CYF-V2R
CYF-V2R Flex CystoNephro Videoscope Rev
Yes
Yes

Cystoscope (CYF Series)
CYF-VA2
CYF-VA2 VISERA Cysto-Nephro Videoscope
Yes
Yes

Cystoscope (CYF Series)
CYF-VH
CYF-VH HD Flex CystoNephro Videoscope
Yes
Yes

Cystoscope (CYF Series)
CYF-VHA
CYF-VHA HD FlexCystoNephroVideoscope
Yes
Yes

Cystoscope (CYF Series)
CYF-VHR
CYF-VHR HD FlexCystoNephroVideoscope
Yes
Yes

Ureterscope (URF Series)
URF-P5
N3627930 OLA URF-P5 URF-P5 FLEXIBLE URET
Yes
Yes

Ureterscope (URF Series)
URF-P6
URF-P6 SUPER-SLIM FLEXIBLE FIBEROPTIC UR
Yes
Yes

Ureterscope (URF Series)
URF-P6R
URF-P6R SUPER-SLIM FLEXIBLE FIBEROPTIC U
Yes
Yes

Ureterscope (URF Series)
URF-P7
URF-P7 Flex Uretero Fiberscope
Yes
Yes

Ureterscope (URF Series)
URF-P7R
URF-P7R Flex Uretero Fiberscope
Yes
Yes

Ureterscope (URF Series)
URF-V
URF-V EndoEYE Flexible Ureteoscope
Yes
Yes

Ureterscope (URF Series)
URF-V2
URF-V2 SLIM FLEXIBLE VIDEO URETEROSCOPE
Yes
Yes

Ureterscope (URF Series)
URF-V2R
URF-V2R SLIM FLEX VID URETERO SCOPE, REV
Yes
Yes

Ureterscope (URF Series)
URF-V3
URF-V3 URETEROSCOPE, FLEX, VIDEO, STD
Yes
Yes

Ureterscope (URF Series)
URF-V3R
URF-V3R URETEROSCOPE, FLEX, VIDEO, REV
Yes
Yes

Choledochoscope (CHF Series)
CHF-P20Q
CHF-P20Q CHOLEDOCHOINEPHRO CYS TOFIBERSCOPE
No
No

Choledochoscope (CHF Series)
CHF-CB30L
CHF-CB30L TRANSLAPAROSCOPIC CHOLEDOCHOSCOPE
No
No

Choledochoscope (CHF Series)
CHF-BP30
CHF-BP30 OES CHOLEDOCHOFIBER
No
No

Choledochoscope (CHF Series)
CHF-P60
CHF-P60 OES CHOLEDOCHOSCOPE
No
No

Hysteroscope (HYF Series)
HYF-1T
OES HYSTEROFIBERSCOPE OLYMPUS HYF TYPE 1T
No
No

What to Do

On December 18, 2024, Olympus sent all affected customers an Urgent: Medical Device Advisory Notice recommending the following actions:

Due to the risk of infection that may result from improper MAJ-891 reprocessing, alternatives to the MAJ-891 should be used instead.
Available alternative devices to the MAJ-891 for Olympus cystoscopes (CYF series) and ureteroscopes (URF series) include:

Luer-Split model MAJ-2092 + Seal-Port

Adjustable Biopsy Port Seal Y-Adapter model BPS-Y
A full listing of Olympus Endoscopes compatible with the MAJ-891 and Compatible Alternative Devices to MAJ-891 is shown above.

There are currently no alternative Olympus irrigation plugs for use with CHF and HYF endoscopes. Use an alternative scope in those situations or a non-Olympus irrigation plug provided it has been validated for use with the Olympus scope by the plug manufacturer.
If no alternative for the MAJ-891 is available, it is important to closely follow the reprocessing instructions for both the endoscope(s) and the MAJ-891 Forceps/Irrigation Plug, especially detaching the MAJ-891 from the instrument channel port of the endoscope and disassembling before it is cleaned, disinfected or sterilized (see image provided under the “Affected Product” section). The reprocessing instructions for the MAJ-891 can be found in Chapters 5 through 7 of the MAJ-891 Instructions for Use (IFU).
Users should also inspect the biopsy valve (MAJ-579) (see image provided under the “Affected Product” section) for damage or deformation and replace the biopsy valve if damage is identified, as instructed in the IFU. A damaged or deformed biopsy valve may impact the reprocessing efficacy.

Reason for Alert
Patient infection as a result of exposure to a contaminated device can occur when reprocessing of the MAJ-891 Forceps/Irrigation Plug is improper and/or incomplete, such as not disconnecting the MAJ-891 from the endoscope and disassembling it before reprocessing. This exposure could result in patient injury including infection, urinary tract infection, or sepsis, and, in some cases, could result in death. These harms may require inpatient hospitalization/monitoring, and treatment with oral or intravenous antibiotics.
Olympus has reported 120 injuries and 1 report of death due to infection following procedures in which the MAJ-891 was used with a cystoscope (CYF scope).
Device Use
The MAJ-891 is endoscope accessory attached to the instrument channel port of certain Olympus endoscopes, including cystoscopes (CYF series), ureteroscopes (URF series), choledochoscopes (CHF series), and hysteroscopes (HYF series) to allow both irrigation and the use of endo-therapy accessories. The MAJ-891 was discontinued in 2022 from the US market.
Contact Information
Customers in the U.S. with adverse reactions, quality problems, or questions about this recall should contact Olympus’s Technical Assistance Center at 1-800-848-9024, option 1.
Additional FDA Resources

Unique Device Identifier (UDI)
The unique device identifier (UDI) helps identify individual medical devices sold in the United States from distribution to use. The UDI allows for more accurate reporting, reviewing, and analyzing of adverse event reports so that devices can be identified more quickly, and as a result, problems potentially resolved more quickly.

How do I report a problem?
Health care professionals and consumers may report adverse reactions or quality problems they experienced using these devices to MedWatch: The FDA Safety Information and Adverse Event Reporting Program.

Content current as of:
03/05/2025

Regulated Product(s)

MIL OSI USA News –

March 6, 2025
MIL-OSI USA: Update on Alert: Solution Set Issue from Baxter Healthcare Corporation

Source: US Department of Health and Human Services – 3

This communication was initially issued as part of the Communications Pilot to Enhance the Medical Device Recall Program. The FDA has since determined that this device may cause temporary or reversible health problems, or—though unlikely—serious health problems. This recall involves removing certain devices from where they are used or sold. The affected products and recommendations for what to do with the devices below have not changed.
Affected Product
The FDA is aware that Baxter Healthcare Corporation has issued a letter to affected health care providers recommending certain lots of Solution Sets with Duo-Vent Spikes be removed from use.

Baxter Product Code
Description
Lot Number
Expiration Date
UDI

2R8404
Solution Set with Duo-Vent Spike
DR24C22079
3/24/2026
00085412676630

2R8404
Solution Set with Duo-Vent Spike
DR24H23086
8/26/2026
00085412676630

2R8538
Clearlink System Solution Set with Duo-Vent Spike
DR24C15109
3/16/2026
00085412676647

UC8519
Continu-Flo Solution Set with Duo-Vent Spike, 2 Luer Activated Valves, Male Luer Lock Adapter with Retractable Collar
DR24B21017
2/28/2026
00085412486512

What to Do

On December 20, 2024, Baxter sent all affected customers an Urgent Medical Device Recall letter recommending the following actions:

Immediately check your stock for the affected product and lot numbers listed above and do not use. The product code and lot number can be found on the individual product and shipping carton.

Reason for Alert
Baxter reports that some Solution Sets with Duo-Vent Spikes were incorrectly assembled with inverted slide clamps. If a solution set with an inverted slide clamp is loaded on an infusion pump, the medication may not be delivered and the patient’s blood may backflow into the set and source container. Critical adverse health consequences may occur if the patient does not receive life-sustaining medication or if a significant amount of blood is removed from the patient, especially for high-risk populations, such as neonates or critically ill patients.

Baxter has not reported any injuries associated with this issue.
Device Use
These solution sets are used to administer fluids from a container to patients through a vascular access device, such as an infusion pump. The slide clamp is a feature of these solution sets designed to shut off fluid flow and interact with the infusion pump to load the set into the pump correctly.
Contact Information
Customers in the U.S. with adverse reactions, quality problems, or questions about this recall should contact Baxter Healthcare Center for Service at 888-229-0001 or corporate_product_complaints_round_lake@baxter.com.
Additional FDA Resources

Unique Device Identifier (UDI)
The unique device identifier (UDI) helps identify individual medical devices sold in the United States from distribution to use. The UDI allows for more accurate reporting, reviewing, and analyzing of adverse event reports so that devices can be identified more quickly, and as a result, problems potentially resolved more quickly.

How do I report a problem?
Health care professionals and consumers may report adverse reactions or quality problems they experienced using these devices to MedWatch: The FDA Safety Information and Adverse Event Reporting Program.

Content current as of:
03/05/2025

Regulated Product(s)

MIL OSI USA News –

March 6, 2025
MIL-OSI USA: Update on Alert: Infusion Pump Software Issue from Fresenius Kabi USA

Source: US Department of Health and Human Services – 3

This communication is part of the Communications Pilot to Enhance the Medical Device Recall Program. This recall involves correcting certain devices and does not involve removing them from where they are used or sold. The FDA has identified this recall as the most serious type. This device may cause serious injury or death if you continue to use it without correction. The affected products and recommendations for what to do with the devices below have not changed.
Affected Product

The FDA is aware that Fresenius Kabi USA has issued a letter to affected health care providers recommending certain software versions of the Ivenix Infusion System be updated:

Large Volume Pump (LVP) Software, version 5.9.2 and earlier
Product code: LVP-SW-0005
UDI: 00811505030122

This software is part of the Ivenix Infusion System and is embedded in the Ivenix Large-Volume Pump, LVP-0004 (Pump UDI: 00811505030320)

What to Do

On January 10, 2025, Fresenius Kabi USA began notifying affected customers recommending customers update the LVP software to version 5.10:

Install the new Ivenix Infusion Management System (IMS) software version (5.2) on your IMS server to facilitate the installation of the pump software, LVP SW 5.10.
To request installation of the software, LVP SW 5.10, contact your Fresenius Kabi representative (1-855-354-6387 or Ivenix_support@fresenius-kabi.com) to push the new software update to each of your pumps.

When the software update is received by the LVP, the Update Software prompt shown below appears before the LVP is shut down.

Select the Update Software button to initiate the LVP version 5.10 software update. Note that the LVP will not be available for use during a software update.

Use care to not select the “Cancel” or “Shut Down Pump” buttons on the prompt as the software update will then not occur. The pump will prompt you every time you try to shut down the pump until the accept/install update is selected.

If you are unsure of the software version on your pumps, both the “Systems Dashboard” and “Pump Info” screen found under “More Options” allow you to view the Version and date for your institution.

If you are unable to immediately install the software, then take the following actions until the infusion pump can be updated to software version 5.10:

When frequent alarming occurs, restart the Ivenix LVP when clinical treatment allows.
Prior to starting or restarting the secondary infusion, ensure the primary infusion has some volume remaining and has not reached zero.

Reason for Alert
Fresenius Kabi USA reports the following anomalies associated with software versions 5.9.2 and earlier. These anomalies have the potential to cause serious patient harm or death.
If during an alarm condition the Pause Audio option is repeated 70 times or more, it will result in the pump becoming nonfunctional, which may lead to the patient being underdosed or delay their therapy. Underdosage may lead to patient harm including temporary arrhythmias, hyperglycemia, hypo- or hypertension, undersedation, and clotting changes.
If a secondary infusion is started at the exact moment a primary infusion completes, then the pump will switch to primary once the secondary infusion completes and Volume to be Infused (VTBI) reaches 0. Then, the primary infusion will infuse at the previously programed primary rate and continue until the infusion is stopped or the bag is empty, which may lead to the patient being over infused. Over infusion may lead to patient harm including hyper- or hypoglycemia, hypo- or hypertension, electrolyte imbalance, oversedation, temporary arrhythmias, clotting changes, and unsuccessful resuscitation.
The firm has not reported any injuries or deaths associated with this issue.
Device Use
The Ivenix LVP software is the application embedded in the Ivenix Infusion System. The LVP software controls the functioning of the LVP and exchanges information with Infusion Management System (IMS) applications. When loaded with an administration set, the LVP delivers infusion therapy to an individual patient.
Contact Information
Customers in the U.S. with adverse reactions, quality problems, or questions about this recall should contact Fresenius Kabi USA at Ivenix_support@fresenius-kabi.com or 1-855-354-6387.
Additional FDA Resources

Unique Device Identifier (UDI)
The unique device identifier (UDI) helps identify individual medical devices sold in the United States from distribution to use. The UDI allows for more accurate reporting, reviewing, and analyzing of adverse event reports so that devices can be identified more quickly, and as a result, problems potentially resolved more quickly.

How do I report a problem?
Health care professionals and consumers may report adverse reactions or quality problems they experienced using these devices to MedWatch: The FDA Safety Information and Adverse Event Reporting Program.

Content current as of:
03/05/2025

MIL OSI USA News –

March 6, 2025
MIL-OSI Australia: Low-carbon liquid fuels of the Future Made In Australia

Source: Australia Government Ministerial Statements

The Albanese Government is delivering $250 million to accelerate the pace of Australia’s growing domestic Low Carbon Liquid Fuels (LCLF) industry.

This funding is part of the $1.7 billion Future Made in Australia Innovation Fund and will be provided as grants to support pre-commercial innovation, demonstration and deployment.

Low carbon liquid fuels can be produced sustainably from waste, biomass such as agricultural feedstocks, or renewable hydrogen.

Australia’s domestic LCLF industry will focus on supplying sustainable aviation fuel and renewable diesel in liquid fuel-reliant sectors, including transport (aviation, heavy vehicle, rail and maritime), mining, agriculture and construction.

The development of low carbon fuels will drive economic growth and jobs in regional areas, including supporting diversification in agriculture, making good use of excess feedstock from crops, sugarcane and waste products such as tallow.

CSIRO projects that a LCLF industry could contribute between AUD $6 billion to $12 billion annually in direct economic benefits, with greater gains from regional co-benefits including diversified income streams for farmers and regional communities.

LCLFs not only help decarbonise hard-to-abate sectors of the economy but provide Australia with sovereign capability and resilience at a time of increasing international uncertainty.

Alongside the $250 million for low carbon liquid fuels, the Future Made in Australia Innovation Fund is providing $500 million for clean energy technology manufacturing capabilities including electrolysers, batteries and wind towers.

The Fund – a key element of the Future Made in Australia plan – will ensure Australia can maximise the economic and industrial benefits of the international move to net zero and secure Australia’s place in a changing global and strategic landscape. Funding is administered by the Australian Renewable Energy Agency (ARENA).

The investment in a wider domestic LCLF industry builds on the momentum of the Sustainable Aviation Fuel Funding Initiative.

This Sustainable Aviation Fuel Funding Initiative has seen the Albanese Government invest in $33.5 million across five projects to date, including LCLF production facilities in Bundaberg and Townsville, and enabling the supply of sustainable aviation fuel at Brisbane Airport.

Funding from the Future Made in Australia Innovation Fund is subject to the legislated Future Made in Australia Community Benefits Principles. The Albanese Government established these principles to ensure public investment and the private investment it attracts, has a direct and tangible benefit for local workers and businesses.

Quotes attributable to Minister for Climate Change and Energy Chris Bowen:

“The Australian Government is backing clean, green low carbon liquid fuels as an important part of our move towards net zero and long-term fuel security.

“Australia has the know how and skills to meet the crucial task of decarbonising hard to abate sectors such as aviation, heavy transport and mining that rely on liquid fuels.

“Investing in a Future Made in Australia means delivering the industries that will provide high end jobs, many in the regions, for future generations.”

Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

“We know that industries vital to our national prosperity, like the transportation of people and goods across our vast land, are carbon intensive and hard to abate.

“That’s why we’re investing hundreds of millions of dollars to develop – right here in Australia – the low carbon liquid fuels of the future that will reduce their environmental impact without preventing their operation or expansion.

“We have all the ingredients in Australia to be a global clean energy superpower, and the Future Made in Australia fund will help bring that potential to reality.”

MIL OSI News –

March 6, 2025
MIL-OSI Security: Stratford Man Sentenced to 7 Years in Federal Prison for Trafficking Firearms

Source: Office of United States Attorneys

Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that STEFAN BAGLEY, JR., 23, of Stratford, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 84 months of imprisonment, followed by three years of supervised release, for trafficking firearms.

According to court documents and statements made in court, on July 26, 2023, Bagley was shot and wounded while traveling in his vehicle in Bridgeport. Later that day, Bagley’s vehicle was used in another shooting incident in Bridgeport. An investigation revealed that, between October 2022 and October 2023, Bagley purchased more than 20 handguns from licensed firearm dealers and sold the guns to a network of customers, several of whom Bagley knew were prohibited by law from possessing firearms. Bagley typically scratched the serial numbers off of the firearms before providing them to his customers, making the guns more difficult to trace.

To date, law enforcement has recovered only five of the firearms that were purchased and trafficked by Bagley. One of the recovered firearms was used in a shooting in Stamford.

Bagley was arrested on December 18, 2023. On August 19, 2024, he pleaded guilty to firearm trafficking conspiracy.

Bagley, who is released on a $100,000 bond, is required to report to prison on May 5.

This matter was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Bridgeport Police Department, and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Kenneth L. Gresham.

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.

MIL Security OSI –

March 6, 2025
MIL-OSI Security: Men Admit Role in Fatal St. Louis Drug Robbery

Source: Office of United States Attorneys

ST. LOUIS – Two men have pleaded guilty to charges connected to the fatal robbery of a drug dealer in St. Louis, Missouri in 2022.

Ralph Ruffin, 21, pleaded guilty Wednesday in U.S. District Court in St. Louis to two felony counts: conspiracy to distribute and possess with the intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime, resulting in death. Jamie Gore, 37, pleaded guilty in January to one count of conspiracy to distribute and possess with the intent to distribute a controlled substance and one count of possessing and brandishing a firearm in furtherance of a drug trafficking crime.

Both men admitted that on Dec. 10, 2022, Gore contacted the victim seeking drugs and asked him to come to Gore’s mother’s house in the 5900 block of Romaine Place. Gore had recently purchased drugs from the victim, and told the victim that he could obtain two guns in exchange for more drugs. Ruffin and an associate were waiting inside the home and began firing at the victim when Gore led him inside. The victim, who fired shots as well, was fatally shot in the throat. Ruffin and his associate then stole the victim’s gun, cash and fentanyl.

Gore admitted aiding Ruffin and others in “numerous” prior drug robberies. Ruffin would give some of the drugs to Gore and sell the rest.

Ruffin is scheduled to be sentenced on June 4. Both sides have agreed to recommend 20 years in prison. Gore is scheduled to be sentenced on April 23. He faces at least seven years in prison.

The Saint Louis Metropolitan Police Department and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Geoff Ogden is prosecuting the case.

MIL Security OSI –

March 6, 2025
MIL-OSI Security: Former executive of injured child benefit program sentenced to nine years in prison for stealing over $6.7M
Source: Office of United States Attorneys

RICHMOND, Va. – A Providence Forge man was sentenced today to nine years in prison for embezzling funds from his former employer, the Virginia Birth-Related Neurological Injury Compensation Program (Birth-Injury Program).

According to court documents, John Hunter Raines, 38, was the Chief Financial Officer and Deputy Director of the Birth-Injury Program. The Birth-Injury Program pays monetary compensation to families of infants who suffer from brain or spinal cord injuries resulting from the birth process that render the infant developmentally and/or cognitively disabled. Raines’ role required that he oversee the finances of the Birth-Injury Program, including approximately $650 million in investments in 2023.

From at least January 2022 through October 2023, Raines stole over $6.7 million from the Birth-Injury Program, including by using his access to the Birth-Injury Program bank account to initiate at least 59 separate wire transactions, sending funds to bank accounts in Raines’ own name. Raines also used the Birth-Injury Program debit card for personal gain. Raines spent embezzled Birth-Injury Program money on various personal expenses. For example:
- Raines purchased numerous vehicles, including eight luxury golf carts for over $160,000 and a 2023 Chevrolet Suburban;
- Raines spent over $100,000 on gambling, including at Rivers Casino in Portsmouth, Virginia, Colonial Downs Racetrack in New Kent, Virginia, and the Virginia Lottery;
- Raines paid at least $29,000 to an intimate partner and tens of thousands of dollars to a bank account in the name of Raines’ wife;
- Raines spent over $9,000 on private limousine services, including to chauffer Raines and his guests in a Mercedes limousine from Raines’ house to Virginia vineyards;
- Raines made numerous purchases of cryptocurrency, including Bitcoin and Dogecoin, and transferred funds to his brokerage accounts;
- Raines paid tens of thousands of dollars towards his student loan debt, his mortgage, and other loans;
- Raines paid over $125,000 for private jet travel for Raines’ friends and family. As an example, Raines paid over $34,000 to travel with his wife and his friends to Nashville, Tennessee, for three days in a private jet; and
- Raines spent over $19,000 to purchase eight separate 2022 1-oz American Gold Eagle Bullion coins and a 100-oz silver bar.
As a financial control on the Birth-Injury Program, Virginia Code § 38.2-5015(B) required an independent certified public accountant selected by the Birth-Injury Program’s board of directors to complete an audit of the program’s accounts each fiscal year. Raines deliberately impeded the statutorily mandated audit process by failing to timely provide the Birth-Injury Program’s files to auditors when requested. Due at least in part to Raines’ obstructive conduct, the Birth-Injury Program’s statutorily mandated audits continue to be delayed by over three years.

Raines pled guilty to mail fraud and money laundering offenses on Oct. 8, 2024.

Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Kareem A. Carter, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office; and Michael C. Westfall, State Inspector General for the Commonwealth of Virginia, made the announcement after Senior U.S. District Judge John A. Gibney Jr. accepted the plea.

Assistant U.S. Attorney Avi Panth and former Assistant U.S. Attorney Kashan K. Pathan prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-138.

MIL Security OSI –
March 6, 2025

MIL-OSI: Descartes Announces Fiscal 2025 Fourth Quarter and Annual Financial Results

Source: GlobeNewswire (MIL-OSI)

Record Income from Operations

WATERLOO, Ontario and ATLANTA, March 05, 2025 (GLOBE NEWSWIRE) — The Descartes Systems Group Inc. (TSX:DSG) (Nasdaq:DSGX) announced its financial results for its fiscal 2025 fourth quarter (Q4FY25) and year (FY25) ended January 31, 2025. All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with US Generally Accepted Accounting Principles (GAAP).

“Fiscal 2025 was another year of growth for Descartes, highlighted by the addition of numerous complementary services to the Global Logistics Network,” said Edward J. Ryan, Descartes’ CEO. “We believe these investments can help shippers, carriers, and logistics services providers manage the increased uncertainty and complexity that’s recently been introduced to the global trade environment. Our customers benefit from our diversity in international and domestic supply chains, our expertise with tariffs, sanctions and other global trade issues, and our expansive roster of connected trading partners as they navigate a quickly evolving trade landscape.”

FY25 Financial Results
As described in more detail below, key financial highlights for Descartes’ FY25 included:

Revenues of $651.0 million, up 14% from $572.9 million in the same period a year ago (FY24);
Revenues were comprised of services revenues of $590.2 million (91% of total revenues), professional services and other revenues of $55.1 million (8% of total revenues) and license revenues of $5.7 million (1% of total revenues). Services revenues were up 13% from $520.9 million in FY24;
Cash provided by operating activities of $219.3 million, up 6% from $207.7 million in FY24. Cash provided by operating activities was negatively impacted in FY25 by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition;
Income from operations of $181.1 million, up 27% from $142.8 million in FY24;
Net income of $143.3 million, up 24% from $115.9 million in FY24. Net income as a percentage of revenues was 22%, compared to 20% in FY24;
Earnings per share on a diluted basis of $1.64, up 22% from $1.34 in FY24; and
Adjusted EBITDA of $284.7 million, up 15% from $247.5 million in FY24. Adjusted EBITDA as a percentage of revenues was 44%, compared to 43% in FY24.

Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). These items are considered by management to be outside Descartes’ ongoing operational results. We define Adjusted EBITDA as a percentage of revenues as the quotient, expressed as a percentage, from dividing Adjusted EBITDA for a period by revenues for the corresponding period. A reconciliation of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income determined in accordance with GAAP is provided later in this release.

The following table summarizes Descartes’ results in the categories specified below over FY25 and FY24 (dollar amounts in millions):

	FY25		FY24
Revenues	651.0		572.9
Services revenues	590.2		520.9
Gross margin	76	%	76	%
Cash provided by operating activities*	219.3		207.7
Income from operations	181.1		142.8
Net income	143.3		115.9
Net income as a % of revenues	22	%	20	%
Earnings per diluted share	1.64		1.34
Adjusted EBITDA	284.7		247.5
Adjusted EBITDA as a % of revenues	44	%	43	%

(*) FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition

Q4FY25 Financial Results
As described in more detail below, key financial highlights for Q4FY25 included:

Revenues of $167.5 million, up 13% from $148.2 million in the fourth quarter of fiscal 2024 (Q4FY24) and down from $168.8 million in the previous quarter (Q3FY25);
Revenues were comprised of services revenues of $156.5 million (93% of total revenues), professional services and other revenues of $10.7 million (6% of total revenues) and license revenues of $0.3 million (1% of total revenues). Services revenues were up 15% from $135.7 million in Q4FY24 and up 5% from $149.7 million in Q3FY25;
Cash provided by operating activities of $60.7 million, up 19% from $50.8 million in Q4FY24 and up 1% from $60.1 million in Q3FY25;
Income from operations of $47.1 million, up 27% from $37.0 million in Q4FY24 and up 3% from $45.8 million in Q3FY25;
Net income of $37.4 million, up 18% from $31.8 million in Q4FY24 and up 2% from $36.6 million in Q3FY25. Net income as a percentage of revenues was 22%, compared to 21% in Q4FY24 and 22% in Q3FY25;
Earnings per share on a diluted basis of $0.43, up 16% from $0.37 in Q4FY24 and up 2% from $0.42 in Q3FY25; and
Adjusted EBITDA of $75.0 million, up 14% from $65.7 million in Q4FY24 and up 4% from $72.1 million in Q3FY25. Adjusted EBITDA as a percentage of revenues was 45%, compared to 44% in Q4FY24 and 43% in Q3FY25, respectively.

The following table summarizes Descartes’ results in the categories specified below over the past 5 fiscal quarters (unaudited; dollar amounts, other than per share amounts, in millions):

	Q4 FY25		Q3 FY25		Q2 FY25		Q1 FY25		Q4 FY24
Revenues	167.5		168.8		163.4		151.3		148.2
Services revenues	156.5		149.7		146.2		137.8		135.7
Gross margin	76	%	74	%	75	%	77	%	76	%
Cash provided by operating activities*	60.7		60.1		34.7		63.7		50.8
Income from operations	47.1		45.8		45.9		42.4		37.0
Net income	37.4		36.6		34.7		34.7		31.8
Net income as a % of revenues	22	%	22	%	21	%	23	%	21	%
Earnings per diluted share	0.43		0.42		0.40		0.40		0.37
Adjusted EBITDA	75.0		72.1		70.6		67.0		65.7
Adjusted EBITDA as a % of revenues	45	%	43	%	43	%	44	%	44	%

(*) Q2FY25 cash provided by operating activities was negatively impacted by the payment of $25.0 million in contingent acquisition consideration for previously completed deals, which was not accrued for at the time of acquisition but was paid due to post-acquisition performance exceeding expectations at the time of acquisition

Cash Position
At January 31, 2025, Descartes had $236.1 million in cash. Cash increased by $54.8 million in Q4FY25 and decreased by $84.9 million in FY25. The table set forth below provides a summary of cash flows for Q4FY25 and FY25 in millions of dollars:

	Q4FY25		FY25
Cash provided by operating activities	60.7		219.3
Additions to property and equipment	(2.1	)	(6.8	)
Acquisitions of subsidiaries, net of cash acquired	(3.7	)	(290.2	)
Payment of debt issuance costs			(0.1	)
Issuances of common shares, net of issuance costs	2.5		12.4
Payment of withholding taxes on net share settlements	–		(6.7	)
Payment of contingent consideration	–		(9.2	)
Effect of foreign exchange rate on cash	(2.6	)	(3.6	)
Net change in cash	54.8		(84.9	)
Cash, beginning of period	181.3		321.0
Cash, end of period	236.1		236.1

Conference Call
Descartes’ executive management team will hold a conference call to discuss the company’s financial results at 5:30 PM ET on Wednesday, March 5. Designated numbers are +1 289 514 5100 or +1 800 717 1738 for North America Toll-Free, using Passcode 45440#.

The company will simultaneously conduct an audio webcast on the Descartes website at https://www.descartes.com/who-we-are/investor-relations/financial-information. Phone conference dial-in or webcast login is required approximately 10 minutes beforehand.

Replays of the conference call will be available until March 12, 2025, by dialing +1 289 819 1325 or Toll-Free for North America using +1 888 660 6264 with Playback Passcode: 45440#. An archived replay of the webcast will be available at https://www.descartes.com/who-we-are/investor-relations/financial-information.

About Descartes

Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and X (Twitter).

Descartes Investor Contact
Laurie McCauley
(519) 746-2969
investor@descartes.com

Cautionary Statement Regarding Forward-Looking Statements

This release may contain forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relates to Descartes’ expectations concerning future revenues and earnings, and our projections for any future reductions in expenses or growth in margins and generation of cash; our assessment of the potential impact of geopolitical events, such as the ongoing conflict between Russia and Ukraine (the “Russia-Ukraine Conflict”), and between Israel and Hamas (“Israel-Hamas Conflict”), or other potentially catastrophic events, on our business, results of operations and financial condition; continued growth and acquisitions including our assessment of any increased opportunity for our products and services as a result of trends in the logistics and supply chain industries; rate of profitable growth and Adjusted EBITDA margin operating range; demand for Descartes’ solutions; growth of Descartes’ Global Logistics Network (“GLN”); customer buying patterns; customer expectations of Descartes; development of the GLN and the benefits thereof to customers; and other matters. These forward-looking statements are based on certain assumptions including the following: global shipment volumes continuing at levels generally consistent with those experienced historically; the Russia-Ukraine Conflict and Israel-Hamas Conflict not having a material negative impact on shipment volumes or on the demand for the products and services of Descartes by its customers and the ability of those customers to continue to pay for those products and services; countries continuing to implement and enforce existing and additional customs and security regulations relating to the provision of electronic information for imports and exports; countries continuing to implement and enforce existing and additional trade restrictions and sanctioned party lists with respect to doing business with certain countries, organizations, entities and individuals; Descartes’ continued operation of a secure and reliable business network; the stability of general economic and market conditions, currency exchange rates, and interest rates; equity and debt markets continuing to provide Descartes with access to capital; Descartes’ continued ability to identify and source attractive and executable business combination opportunities; Descartes’ ability to develop solutions that keep pace with the continuing changes in technology, and our continued compliance with third party intellectual property rights. These assumptions may prove to be inaccurate. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Descartes, or developments in Descartes’ business or industry, to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, Descartes’ ability to successfully identify and execute on acquisitions and to integrate acquired businesses and assets, and to predict expenses associated with and revenues from acquisitions; the impact of network failures, information security breaches or other cyber-security threats; disruptions in the movement of freight and a decline in shipment volumes including as a result of contagious illness outbreaks; a deterioration of general economic conditions or instability in the financial markets accompanied by a decrease in spending by our customers; the ability to attract and retain key personnel and the ability to manage the departure of key personnel and the transition of our executive management team; changes in trade or transportation regulations that currently require customers to use services such as those offered by Descartes; changes in customer behaviour and expectations; Descartes’ ability to successfully design and develop enhancements to our products and solutions; departures of key customers; the impact of foreign currency exchange rates; Descartes’ ability to retain or obtain sufficient capital in addition to its debt facility to execute on its business strategy, including its acquisition strategy; disruptions in the movement of freight; the potential for future goodwill or intangible asset impairment as a result of other-than-temporary decreases in Descartes’ market capitalization; and other factors and assumptions discussed in the section entitled, “Certain Factors That May Affect Future Results” in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada, including Descartes’ most recently filed Management’s Discussion and Analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues

We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with GAAP. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with GAAP. We believe that current shareholders and potential investors in our company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about our company and measuring our operational results.

The term “Adjusted EBITDA” refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes) and other charges (for which we include restructuring charges, acquisition-related expenses, and contingent consideration incurred due to better-than-expected performance from acquisitions). Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.

Management considers these non-operating expenses to be outside the scope of Descartes’ ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period. Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with GAAP or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. In particular, we have completed seven acquisitions since the beginning of fiscal 2024 and may complete additional acquisitions in the future that will result in acquisition-related expenses and restructuring charges. As these acquisition-related expenses and restructuring charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.

The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our audited Consolidated Statements of Operations for FY25 and FY24, which we believe is the most directly comparable GAAP measure.

(US dollars in millions)	FY25		FY24
Net income, as reported on Consolidated Statements of Operations	143.3		115.9
Adjustments to reconcile to Adjusted EBITDA:
Interest expense	1.0		1.4
Investment income	(11.5	)	(9.7	)
Income tax expense	48.3		35.2
Depreciation expense	5.6		5.5
Amortization of intangible assets	69.4		60.5
Stock-based compensation and related taxes	21.1		17.1
Other charges	7.5		21.6
Adjusted EBITDA	284.7		247.5

Revenues	651.0		572.9
Net income as % of revenues	22	%	20	%
Adjusted EBITDA as % of revenues	44	%	43	%

The table below reconciles Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to net income reported in our unaudited Consolidated Statements of Operations for Q4FY25, Q3FY25, Q2FY25, Q1FY25, and Q4FY24, which we believe is the most directly comparable GAAP measure.

(US dollars in millions)	Q4FY25		Q3FY25		Q2FY25		Q1FY25		Q4FY24
Net income, as reported on Consolidated Statements of Operations	37.4		36.6		34.7		34.7		31.8
Adjustments to reconcile to Adjusted EBITDA:
Interest expense	0.2		0.2		0.2		0.3		0.3
Investment income	(1.9	)	(2.9	)	(2.7	)	(4.1	)	(3.4	)
Income tax expense	11.4		11.9		13.6		11.5		8.3
Depreciation expense	1.5		1.4		1.4		1.4		1.4
Amortization of intangible assets	19.4		17.5		17.4		15.0		15.1
Stock-based compensation and related taxes	5.4		5.6		5.8		4.3		4.7
Other charges	1.6		1.8		0.2		3.9		7.5
Adjusted EBITDA	75.0		72.1		70.6		67.0		65.7

Revenues	167.5		168.8		163.4		151.3		148.2
Net income as % of revenues	22	%	22	%	21	%	23	%	21	%
Adjusted EBITDA as % of revenues	45	%	43	%	43	%	44	%	44	%

The Descartes Systems Group Inc.
Consolidated Balance Sheets
(US dollars in thousands; US GAAP)

	January 31,		January 31,
	2025		2024
ASSETS
CURRENT ASSETS
Cash	236,138		320,952
Accounts receivable (net)
Trade	53,953		51,569
Other	16,931		12,193
Prepaid expenses and other	45,544		33,468
	352,566		418,182
OTHER LONG-TERM ASSETS	24,887		24,737
PROPERTY AND EQUIPMENT, NET	12,481		11,552
RIGHT-OF-USE ASSETS	7,623		6,257
DEFERRED INCOME TAXES	3,802		2,097
INTANGIBLE ASSETS, NET	321,270		251,047
GOODWILL	924,755		760,413
	1,647,384		1,474,285
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	20,650		17,484
Accrued liabilities	79,656		91,824
Lease obligations	3,178		3,075
Income taxes payable	9,313		6,734
Deferred revenue	104,230		84,513
	217,027		203,630
LEASE OBLIGATIONS	4,718		3,903
DEFERRED REVENUE	978		1,464
INCOME TAXES PAYABLE	5,531		6,153
DEFERRED INCOME TAXES	34,127		21,101
	262,381		236,251

SHAREHOLDERS’ EQUITY
Common shares – unlimited shares authorized; Shares issued and outstanding totaled 85,605,969 at January 31, 2025 (January 31, 2024 – 85,183,455)	568,339		551,164
Additional paid-in capital	503,133		494,701
Accumulated other comprehensive loss	(50,497	)	(28,586	)
Retained earnings	364,028		220,755
	1,385,003		1,238,034
	1,647,384		1,474,285

The Descartes Systems Group Inc.
Consolidated Statements of Operations
(US dollars in thousands, except per share and weighted average share amounts; US GAAP)

	January 31,		January 31,		January 31,
Year Ended	2025		2024		2023

REVENUES	651,000		572,931		486,014
COST OF REVENUES	158,574		138,295		113,326
GROSS MARGIN	492,426		434,636		372,688
EXPENSES
Sales and marketing	73,692		68,161		56,573
Research and development	95,497		84,103		70,353
General and administrative	65,248		57,373		49,710
Other charges	7,466		21,649		5,441
Amortization of intangible assets	69,399		60,501		60,177
	311,302		291,787		242,254
INCOME FROM OPERATIONS	181,124		142,849		130,434
INTEREST EXPENSE	(1,004	)	(1,363	)	(1,167	)
INVESTMENT INCOME	11,513		9,666		4,461
INCOME BEFORE INCOME TAXES	191,633		151,152		133,728
INCOME TAX EXPENSE (RECOVERY)
Current	53,402		41,223		28,248
Deferred	(5,042	)	(5,978	)	3,244
	48,360		35,245		31,492
NET INCOME	143,273		115,907		102,236
EARNINGS PER SHARE
Basic	1.68		1.36		1.21
Diluted	1.64		1.34		1.18
WEIGHTED AVERAGE SHARES OUTSTANDING (thousands)
Basic	85,443		85,068		84,791
Diluted	87,323		86,818		86,451

The Descartes Systems Group Inc.
Consolidated Statements of Cash Flows
(US dollars in thousands; US GAAP)

Year Ended	January 31,		January 31,		January 31,
	2025		2024		2023
OPERATING ACTIVITIES
Net income	143,273		115,907		102,236
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	5,589		5,474		5,225
Amortization of intangible assets	69,399		60,501		60,177
Stock-based compensation expense	19,962		16,480		13,667
Other non-cash operating activities	23		114		53
Deferred tax expense (recovery)	(5,042	)	(5,978	)	3,244
Changes in operating assets and liabilities	(13,932	)	15,182		7,793
Cash provided by operating activities	219,272		207,680		192,395
INVESTING ACTIVITIES
Additions to property and equipment	(6,743	)	(5,563	)	(6,071	)
Acquisition of subsidiaries, net of cash acquired	(290,204	)	(142,700	)	(115,561	)
Cash used in investing activities	(296,947	)	(148,263	)	(121,632	)
FINANCING ACTIVITIES
Payment of debt issuance costs	(53	)	(43	)	(1,118	)
Issuance of common shares for cash, net of issuance costs	12,391		9,272		1,730
Payment of withholding taxes on net share settlements	(6,745	)	(4,886	)	–
Payment of contingent consideration	(9,223	)	(19,084	)	(5,215	)
Cash used in financing activities	(3,630	)	(14,741	)	(4,603	)
Effect of foreign exchange rate changes on cash	(3,509	)	(109	)	(3,212	)
Increase (decrease) in cash	(84,814	)	44,567		62,948
Cash, beginning of year	320,952		276,385		213,437
Cash, end of year	236,138		320,952		276,385

The MIL Network –

March 6, 2025

MIL-OSI: AGF Reports February 2025 Assets Under Management and Fee-Earning Assets

Source: GlobeNewswire (MIL-OSI)

TORONTO, March 05, 2025 (GLOBE NEWSWIRE) — AGF Management Limited reported total assets under management (AUM) and fee-earning assets¹ of $53.8 billion as at February 28, 2025.

AUM ($ billions)	February 28, 2025	January 31, 2025	% Change Month-Over-Month	February 29, 2024	% Change Year-Over-Year
Total Mutual Fund	$31.1	$31.4		$26.1
Exchange-traded funds + Separately managed accounts	$2.9	$2.7		$1.7
Segregated accounts and Sub-advisory	$6.6	$6.8		$7.3
AGF Private Wealth	$8.6	$8.6		$7.8
Subtotal (before AGF Capital Partners AUM and fee-earning assets¹)	$49.2	$49.5		$42.9
AGF Capital Partners	$2.5	$2.8		$0.1
Total AUM	$51.7	$52.3	-1.1%	$43.0	20.2%
AGF Capital Partners fee-earning assets¹	$2.1	$2.1		$2.0
Total AUM and fee-earning assets¹	$53.8	$54.4	-1.1%	$45.0	19.6%

Average Daily Mutual Fund AUM	$31.2	$30.8		$25.8
¹ Fee-earning assets represent assets in which AGF has carried interest ownership and earns recurring fees but does not have ownership interest in the managers.

Mutual Fund AUM by Category ($ billions)	February 28, 2025	January 31, 2025	February 29, 2024
Domestic Equity Funds	$4.5	$4.5	$4.2
U.S. and International Equity Funds	$19.3	$19.7	$15.2
Domestic Balanced Funds	$0.1	$0.1	$0.1
U.S. and International Balanced Funds	$1.7	$1.7	$1.6
Domestic Fixed Income Funds	$2.0	$1.9	$1.7
U.S. and International Fixed Income Funds	$3.2	$3.2	$3.1
Domestic Money Market	$0.3	$0.3	$0.2
Total Mutual Fund AUM	$31.1	$31.4	$26.1

AGF Capital Partners AUM and fee-earning assets ($ billions)	February 28, 2025	January 31, 2025	February 29, 2024
AGF Capital Partners AUM	$2.5	$2.8	$0.1
AGF Capital Partners fee-earning assets	$2.1	$2.1	$2.0
Total AGF Capital Partners AUM and fee-earning assets	$4.6	$4.9	$2.1

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With nearly $54 billion in total assets under management and fee-earning assets, AGF serves more than 815,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

AGF Management Limited shareholders, analysts and media, please contact:

Nick Smerek
VP, Financial Planning & Analysis
416-865-4337, InvestorRelations@agf.com

The MIL Network –

March 6, 2025

MIL-OSI Canada: Budget 2025: Investing in Alberta’s future | Budget 2025 : Investir dans l’avenir de l’Alberta
As Alberta continues work to address increasing domestic and international economic pressures, Budget 2025 works to strengthen Alberta’s economy. This budget helps build communities, secure Alberta’s southern border and boost investments in the province’s economic future.

“While we work closely with partners to find solutions to a possible trade conflict, we will continue our work to make sure Alberta’s economy is strong – in and outside of the energy sector – so that we can manage any turbulence that comes our way. Budget 2025 carves our path forward in the face of this uncertainty.”

Nate Horner, President of Treasury Board and Minister of Finance

Budget 2025: Supporting a strong workforce

Alberta’s workforce is the backbone of the provincial economy. Budget 2025 continues the commitment to training and developing a skilled and resilient labour force to further grow Alberta’s economy and help businesses succeed, including:
- $26.1 billion over three years from the Capital Plan, to support about 26,500 direct and 12,000 indirect jobs each year through 2027-28.
- $135 million for skilled trade programs such as apprenticeship and adult learning initiatives to help Albertans gain the skills and training needed for successful careers, and support access to job opportunities.
- $2 billion in 2025-26 to support and expand early learning and child-care system so parents and caregivers can participate in training, education or work opportunities.
Budget 2025: Securing our borders
- Alberta’s government is committed to being a good neighbour and trading partner, and part of this commitment involves taking measures to secure the Alberta-US border. Budget 2025 includes $29 million in 2025-26 for a new Interdiction Patrol Team within the Alberta Sheriffs to tackle illegal drug and gun smuggling, human trafficking, apprehension of persons attempting to cross the border illegally, and other illegal activities along Alberta’s international land border. Budget 2025 also includes a $15 million investment over two years for three new vehicle inspection stations located near borders to the USA.
Budget 2025: Investing in post-secondary education

Budget 2025 invests a total of $7.4 billion in post-secondary education, with an operating budget of $6.6 billion in 2025-26. This includes:
- $78 million per year over the next three years to create more seats in apprenticeship classes across the province to build skilled trades and apprenticeship education that will respond to the needs of industry, support the economy and connect Albertans with jobs.
- $113 million to support greater demand for scholarships and the Alberta Student Grant, with $60 million funded from the Alberta Heritage Scholarship Fund.
- $4 million to the First Nations Colleges Grant which is distributed equally across five colleges in rural and remote Indigenous communities.
“Our government is ensuring that Alberta students have the skills and training they need to meet the needs of today while preparing for the economy of the future. Budget 2025 makes foundational investments to meet the challenge of a rapidly growing population while supporting a sustainable post-secondary education system.”

Rajan Sawhney, Minister of Advanced Education

Budget 2025: Building communities

Alberta’s vibrant communities make Alberta the best place in Canada to live, work and raise a family. Budget 2025 invests in stronger communities across Alberta, including:
- $17.2 million to increase grants made to municipalities in lieu of property taxes on government-owned property to 75 per cent, up from the current 50 per cent. By next year, the province will cover 100 per cent of the amount that would be paid if the property was taxable.
- $820 million this year and $2.5 billion over three years in Local Government Fiscal Framework capital funding to help fund local infrastructure priorities.
Budget 2025: Supporting trade and diversification

Alberta continues to champion economic growth and policies that support productivity. Through Budget 2025, Alberta’s government will continue to build on current successes through:
- Attracting more investment through low corporate income taxes. At eight per cent, Alberta’s corporate income tax rate is 30 per cent lower than the next lowest province.
- Providing greater incentive for small- and medium-sized firms that increase their spending on research and development, with Alberta’s Innovation Employment Grant.
- Promoting Alberta as a reliable partner in supporting North American and global energy security to investors. The province will optimize new and existing infrastructure to access new markets for Alberta’s energy and mineral resources.
- Supporting Alberta’s agriculture producers and value-added processors, addressing barriers to trade by cultivating export markets, and working to increase market access for Alberta products.
- Reinforcing Alberta as a critical contributor to North American energy security by continuing to advocate for our remarkable energy sector across Canada, the U.S., Germany, Japan and the rest of the world.
Budget 2025: Investing in business and industry

Budget 2025 continues to find ways to help Alberta’s economy grow through investments in business and industry and help our economy grow, including:
- Support to attract investment in Alberta’s energy and mineral resource sector to accelerate opportunities in emerging resources.
- $45 million over three years for the Investment and Growth Fund to attract investment into Alberta’s economy.
- $1.8 million in Western Crop Innovations for industry-leading crop research.
- $780,000 to support small- and medium-sized meat processors.
- $3.1 million for the University of Calgary’s Faculty of Veterinary Medicine to expand toward a full-service veterinary diagnostic laboratory. This will give livestock producers and vets access to quicker, more affordable livestock diagnostics closer to home.
“Budget 2025 builds a stronger Alberta by growing industries, creating high-quality jobs and expanding opportunities for workers and families. With strategic investments in innovation, infrastructure and workforce development, Alberta is rising to the challenge, strengthening our province for many years to come.”

Matt Jones, Minister of Jobs, Economy and Trade

“We are advancing cutting-edge research in agriculture and supporting small and medium-sized businesses. Additionally, we are strengthening our agricultural infrastructure, ensuring quicker and more affordable services for livestock producers and veterinarians. We’re supporting innovation, attracting investment, and building a resilient economy for the future.”

RJ Sigurdson, Minister of Agriculture and Irrigation

Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.

Related information
- Budget 2025
Related news
- Budget 2025: Meeting the challenge (Feb 27, 2025)
- Budget 2025: Meeting the challenge in health and education (Feb 27, 2025)
Multimedia
- Watch the Budget address
- Watch the news conference
- Listen to the news conference
Le budget de 2025 relève le défi de l’incertitude en matière de commerce et de sécurité en mettant l’accent sur l’économie.

À mesure que l’Alberta continue de répondre aux pressions économiques intérieures et internationales, le budget de 2025 vise à renforcer l’économie albertaine. Il contribue à bâtir des communautés, à assurer la sécurité de la frontière au sud de la province et à renforcer les investissements dans notre avenir économique.

« Alors que nous travaillons en étroite collaboration avec des partenaires pour trouver des solutions à un différend commercial potentiel, nous poursuivons notre travail pour nous assurer que l’économie de l’Alberta est forte, dans le secteur de l’énergie et ailleurs, afin de pouvoir gérer toute perturbation. Le budget de 2025 trace la voie à suivre face à cette incertitude. »

Nate Horner, président du Conseil du Trésor et ministre des Finances

Budget 2025 : Soutenir une main-d’œuvre solide

La main-d’œuvre albertaine est l’épine dorsale de l’économie provinciale. Le budget de 2025 maintient l’engagement envers la formation et le perfectionnement d’une main-d’œuvre qualifiée et résiliente de sorte à faire croître l’économie et aider les entreprises à réussir :
- 26,1 milliards de dollars sur trois ans provenant du plan d’immobilisations afin d’appuyer environ 26 500 emplois directs et 12 000 emplois indirects chaque année jusqu’en 2027-2028.
- 135 millions de dollars pour des programmes de métiers spécialisés, comme des initiatives d’apprentissages et d’éducation des adultes de sorte à aider les Albertains à acquérir les compétences et à suivre la formation nécessaires pour mener des carrières fructueuses, ainsi qu’à soutenir l’accès aux possibilités d’emploi.
- 2 milliards de dollars en 2025-26 pour appuyer et élargir le système d’apprentissage et de garde des jeunes enfants afin que les parents et les gardiens tirent parti de possibilités de formation, d’éducation ou d’emploi.
Budget 2025 : Assurer la sécurité de nos frontières
- Le gouvernement de l’Alberta est résolu à être un bon voisin et un bon partenaire commercial, ce qui implique la prise de mesures pour assurer la sécurité de la frontière entre l’Alberta et les États-Unis. Le budget de 2025 prévoit 29 millions de dollars en 2025-26 pour une nouvelle équipe de « patrouille d’interdiction » (Interdiction Patrol Team) qui fait partie des shérifs de l’Alberta et sera chargée de lutter contre le trafic de drogue et d’armes et la traite de personnes, d’appréhender les personnes qui tentent de traverser la frontière illégalement et de surveiller d’autres activités illégales le long de la frontière internationale de la province. Le budget de 2025 comprend en outre un investissement de 15 millions de dollars sur deux ans pour trois nouveaux postes d’inspection de véhicules près de la frontière des États-Unis.
Budget 2025 : Investir dans l’enseignement postsecondaire

Le budget de 2025 investit en tout 7,4 milliards de dollars dans l’enseignement postsecondaire, le budget d’exploitation étant de 6,6 milliards de dollars en 2025-2026. Cette somme comprend :
- 78 millions de dollars par années sur trois ans pour créer un plus grand nombre de places dans les cours d’apprentissage de toute la province en vue de renforcer les métiers spécialisés et les formations en apprentissage qui répondront aux besoins de l’industrie, soutiendront l’économie et mettront les Albertains en rapport avec des emplois.
- 113 millions de dollars pour contribuer à satisfaire à la demande croissante de bourses et appuyer la bourse aux étudiants de l’Alberta (Alberta Student Grant), dont 60 millions de dollars provenant de l’Alberta Heritage Scholarship Fund.
- 4 millions de dollars pour la subvention aux collèges des Premières Nations (First Nations Colleges Grant), cette somme étant répartie également entre cinq collèges dans des communautés autochtones rurales et éloignées.
« Notre gouvernement veille à ce que les étudiants en Alberta possèdent les compétences et la formation nécessaires pour répondre aux besoins actuels, tout en se préparant à l’économie future. Le budget de 2025 réalise des investissements fondamentaux de sorte à relever les défis posés par une population en pleine croissance, tout en appuyant un système d’éducation postsecondaire durable. »

Rajan Sawhney, ministre de l’Enseignement postsecondaire

Budget 2025 : Bâtir des communautés

Les communautés dynamiques de notre province font de l’Alberta le meilleur endroit au Canada où vivre, travailler et élever une famille. Le budget de 2025 investit dans des communautés plus fortes partout en Alberta :
- 17,2 millions de dollars pour augmenter de 50 % à 75 % les subventions accordées aux municipalités en remplacement d’impôts fonciers à l’égard des propriétés qui appartiennent au gouvernement. D’ici l’année prochaine, la province couvrira 100 $ du montant qui serait versé si la propriété était imposable.
- 820 millions de dollars cette année et 2,5 milliards de dollars sur trois ans en dépenses en capital du cadre fiscal des administrations locales (Local Government Fiscal Framework) afin d’aider à financer les travaux d’infrastructures prioritaires.
Budget 2025 : Soutenir le commerce et la diversification

L’Alberta continue de favoriser la croissance économique et des politiques qui appuient la productivité. Par l’entremise du budget de 2025, le gouvernement de l’Alberta continuera de tirer parti des réussites actuelles en faisant ce qui suit :
- Attirer plus d’investissements grâce à un faible taux d’imposition sur le revenu des sociétés. En Alberta, le taux de 8 % est de 30 % inférieur à celui de la province qui se classe deuxième.
- Offrir de plus grands stimulants aux petites et moyennes entreprises qui augmentent leurs dépenses en recherche et développement, par l’entremise de la subvention pour l’emploi et l’innovation (Alberta’s Innovation Employment Grant).
- Promouvoir l’Alberta en tant que partenaire fiable pour soutenir la sécurité énergétique nord-américaine et mondiale auprès des investisseurs. La province optimisera les infrastructures nouvelles et existantes afin d’accéder à de nouveaux marchés pour les ressources énergétiques et minérales de l’Alberta.
- Soutenir les producteurs agricoles albertains et les transformateurs à valeur ajoutée de l’Alberta, s’attaquer aux obstacles au commerce en cultivant les marchés d’exportation et s’employer à améliorer l’accès au marché pour les produits de l’Alberta.
- Renforcer la position de l’Alberta en tant que contributrice essentielle à la sécurité énergétique de l’Amérique du Nord en continuant de promouvoir notre secteur énergétique remarquable au Canada, aux États-Unis, en Allemagne, au Japon et dans le reste du monde.
Budget 2025 : Investir dans les entreprises et les industries

Le budget de 2025 continue de trouver des moyens de favoriser la croissance de l’économie albertaine en investissant dans les entreprises et les industries :
- Soutien visant à attirer des investissements dans le secteur de l’énergie et des ressources minérales de sorte à accélérer les possibilités dans le domaine des ressources émergentes.
- 45 millions de dollars sur trois ans pour le fonds d’investissement et de croissance (Investment and Growth Fund) en vue d’attirer des investissements dans l’économie albertaine.
- 1,8 million de dollars versés à Western Crop Innovations au titre de la recherche de pointe sur les cultures.
- 780 000 $ pour appuyer les petites et moyennes entreprises de transformation de viande.
- 3,1 millions de dollars pour la Faculté de médecine vétérinaire de l’Université de Calgary en vue d’un agrandissement menant à un laboratoire de diagnostic vétérinaire complet. Les éleveurs de bétail et les vétérinaires auront alors accès à un diagnostic plus rapide, plus abordable et plus proche.
« Le budget de 2025 bâtit une Alberta plus forte en développant les industries, en créant des emplois de haute qualité et en élargissant les possibilités offertes aux travailleurs et aux familles. Grâce à des investissements stratégiques en innovation, infrastructure et perfectionnement de la main-d’œuvre, l’Alberta relève le défi pour être plus forte pendant de nombreuses années à venir. »

Matt Jones, ministre de l’Emploi, de l’Économie et du Commerce

« Nous faisons progresser la recherche de point en agriculture et nous appuyons les petites et moyennes entreprises. De plus, nous renforçons notre infrastructure agricole pour offrir des services plus rapides et plus abordables aux éleveurs de bétail et aux vétérinaires. Nous soutenons l’innovation, nous attirons les investissements et nous bâtissons une économie résiliente pour l’avenir. »

RJ Sigurdson, ministre de l’Agriculture et de l’Irrigation

Le budget de 2025 relève le défi auquel fait face l’Alberta grâce à des investissements continus dans l’éducation et la santé, une baisse des impôts pour les familles et un accent sur l’économie.

Renseignements connexes
- Budget 2025
Nouvelles connexes
- Budget 2025: Meeting the challenge | Budget 2025 : Relever le défi (27 février 2025)
- Budget 2025: Meeting the challenge in health and education | Budget 2025 : Relever le défi dans la santé et l’éducation (27 février 2025)
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MIL OSI Canada News –
March 6, 2025
MIL-OSI USA: Researchers Connect Satellite and Soil Data to Refine Salt Marsh Carbon Storage Estimates
Source: US Geological Survey
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News
Researchers Connect Satellite and Soil Data to Refine Salt Marsh Carbon Storage Estimates
Salt marshes store vast amounts of carbon, and new research supported by the Northeast CASC provides the most precise estimates yet – offering insights into their climate benefits and vulnerabilities.

A new study supported by the Northeast CASC provides the most precise estimate to date of carbon storage in salt marshes along the U.S. Northeast coastline. It also provides the first 10-meter resolution map of “blue carbon” (carbon stored in marine and coastal ecosystems) in the region.

Salt marshes act as long-term carbon sinks, continuously accumulating carbon as tides and storms deposit sediment into dense marsh grasses. Unlike forests, which have storage limits, salt marshes can expand vertically, increasing their ability to trap carbon over time. In other words, they have no upper storage limit. However, the natural spatial variability within marshes makes it difficult to estimate how much total carbon is actually stored or ongoing sequestration rates. Traditional soil sampling methods are highly accurate but costly and time-consuming, while satellite methods cover more ground but measure indicators, like water depth and vegetation density, rather than carbon directly. Adding to this complexity, within a marsh, vegetation density and water depth also vary seasonally and with tidal cycles.

The researchers tackled these challenges by combining both approaches. They used soil samples from 15 sites across five states, spanning Long Island Sound to the Gulf of Maine, and the “Normalized Difference Water Index” (NDWI) from satellite images taken across seasons and tidal levels. After comparing soil carbon measurements to satellite estimates, they found that satellite images most accurately reflect soil properties when taken at high tide. This insight allowed them to select the most reliable satellite images to refine carbon estimates across larger coastlines – an important advance when extensive soil sampling is not feasible. The study also provides insights for soil formation and carbon storage in different types of marshes.

This study offers a scalable method for estimating blue carbon worldwide but also warns that environmental degradation of salt marshes could release massive amounts of stored carbon back into the atmosphere.

This research was supported by the Northeast CASC Project “Effects of Urban Coastal Armoring on Salt Marsh Sediment Supplies and Resilience to Climate Change.”

MIL OSI USA News –
March 6, 2025
MIL-OSI USA: 25 Canadian nationals connected to nationwide multi-million dollar “grandparent scam” charged in Vermont
Source: US Immigration and Customs Enforcement

Burlington, Vt. – Canadian law enforcement provisionally arrested 23 Canadian nationals March 4 after they were indicted by federal grand jury in Vermont for participation in a “grandparent scam” uncovered by U.S. Immigration and Customs Enforcement. The scam allegedly defrauded elderly individuals in more than 40 states of over $21 million.

According to the indictment returned by the grand jury Feb. 20 and unsealed on March 4, between the summer of 2021 and June 4, 2024, the defendants engaged in a “grandparent scam” involving phone calls made from call centers in and around Montreal, Québec. During these phone calls, defendants falsely claimed to be an elderly victim’s relative, typically a grandchild, who had been arrested following a car crash and needed money for “bail.” Other defendants posed as an “attorney” representing the elderly victim’s relative. Elderly victims were often told that there was a “gag order” in place to prevent the elderly victim from telling anyone about their family member’s supposed arrest. Elderly victims were convinced to provide bail money to an individual falsely posing as a bail bondsman, who would come to the elderly victim’s home to collect the money. This money was later transmitted to Canada following cash deliveries and financial transactions, sometimes involving cryptocurrency, which, the indictment alleges, obscured the source of the money and the identities of defendants.

When Canadian law enforcement executed search warrants on June 4, 2024, at several call centers, many of the defendants were found in the act of placing phone calls to elderly victims in Virginia. The Indictment alleges the call centers were managed by Gareth West, Usman Khalid, Andrew Tatto, Stephan Moskwyn, and Ricky Ylimaki, and also charges these five defendants with conspiring to commit money laundering. The conspiracy defrauded elderly Americans out of more than $21 million.

“These individuals are accused of an elaborate scheme using fear to extort millions of dollars from victims who believed they were helping loved ones in trouble. Today’s arrests are the result of domestic collaboration as well as our critical international partnerships with our colleagues in Canada, Sûreté du Québec and the Royal Canadian Mounted Police. Tackling transnational crime is one of our greatest priorities and we’re working hand-in-hand with our neighbors to dismantle organized criminal groups that threaten our safety and security,” said ICE Homeland Security Investigations Special Agent in Charge New England Michael J. Krol.

“Today’s operation is an excellent example of ICE Canada’s partnership with the Sûreté du Québec and resulted in the disruption of a significant transnational criminal organization. We will continue to partner with the SQ, the Royal Canadian Mounted Police and other law enforcement agencies to identify and dismantle criminal organizations operating throughout North America and abroad that exploit our shared border and vulnerable population for illicit gain,” said ICE HSI Attache for Ottawa Magdalena Sigur.

“The transnational criminal conspiracy described in the Indictment preyed on vulnerable Americans throughout the United States,” observed Acting United States Attorney Michael P. Drescher. “These charges reflect the painstaking investigatory work of the Vermont-based agents from Homeland Security Investigations and the Internal Review Service-Criminal Investigations. In addition, we recognize the extensive investigative assistance provided by Sûreté du Québec and the Royal Canadian Mounted Police.”

“Today’s arrest of Gareth West and his co-conspirators demonstrates IRS-CI’s commitment to protecting the American people from bad actors, no matter where they are hiding.” said Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “West and his associates lead a transnational criminal enterprise with the sole intent of defrauding hundreds of retirees of their life savings by preying on their emotions and deceiving them into thinking that their loved ones were in peril. IRS-CI is committed to continued collaboration with our law enforcement partners, both at home and abroad, to stop and deter anyone who seeks to profit off the hard work of U.S. citizens.”

“For the Quebec Provincial Police and Homeland Security Investigations, transnational criminal organizations are a significant concern that requires close collaboration. Criminal networks operate beyond borders; thus, it is crucial to have strong partnerships among law enforcement. Today’s arrests highlight the efficiency of our joint efforts, demonstrating that our cooperation delivers concrete results in enhancing public safety on both sides of the border,” said Chief Inspector Michel Patenaude

An indictment contains only allegations, and defendants are presumed innocent until and unless proven guilty.

West, Khalid, Tatto, Moskwyn and Ricky Ylimaki face up to 40 years of imprisonment if convicted, and the remaining defendants face up to 20 years of imprisonment if convicted.

The investigation was led by ICE and IRS-CI with the assistance of U.S. Customs and Border Protection and the Quebec Provincial Police (Sûreté du Québec) in Canada. The Royal Canadian Mounted Police conducted the provisional arrests in Canada. Significant assistance was provided by the U.S. Department of Justice Office of International Affairs as well as the International Assistance Group at Justice Canada. This case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.

More information about Organized Crime Drug Enforcement Task Forces

Individuals charged in the indictment:
- Gareth West, a.k.a. “Buddy” and “Muscles,” (38 – Burlington, Ontario)
- Usman Khalid, a.k.a. “Paul” and “Pauly,” (36 – Les Coteaux, Québec)
- Andrew Tatto, a.k.a. “Chevy” and “Truck,” (43 – Pierrefonds, Québec)
- Stephan Moskwyn, a.k.a. “HK,” (42 – Pierrefonds, Québec)
- Ricky Ylimaki, a.k.a. “Ruffles,” (31 – Notre-Dame-de-l’Île-Perrot, Québec)
- Richard Frischman, a.k.a. “Styx,” (31 – Montréal, Québec)
- Adam Lawrence, a.k.a. “Carter,” (41 – Lasalle, Québec)
- Michael Filion, a.k.a. “Elvis,” (45 – Pierrefonds, Québec)
- Jimmy Ylimaki, a.k.a. “Coop,” (35 – Notre-Dame-de-l’Île-Perrot, Québec)
- Nicolas Gonzalez, a.k.a. “Brady,” (27 – Kirkland, Québec)
- Ryan Melanson, a.k.a. “Parker,” (27 – Montréal, Québec)
- Joy Kalafatidis, a.k.a. “Blondie,” (31 – Pointe-Claire, Québec)
- David Arcobelli, a.k.a. “Phil,” (36 – Pierrefonds, Québec)
- Jonathan Massouras, a.k.a. “Borze,” (35 – Dollard-Des Ormeaux, Québec)
- Nicholas Shiomi, a.k.a. “Keanu,” (42 – Montréal, Québec)
- Antonio Iannacci, a.k.a. “DJ,” (33 – Pierrefonds, Québec)
- Jonathan Ouellet, a.k.a. “Sunny,” (29 – Saint-Eustache, Québec)
- Kassey-Lee Lankford, a.k.a. “Lex,” (28 – Vaudreuil-Dorion, Québec)
- Sara Burns, a.k.a. “Ginger,” (31 – Dollard-Des Ormeaux, Québec)
- Justin Polenz, a.k.a. “Happy,” (34 – Montréal, Québec)
- Ryan Thibert, a.k.a. “Toast,” (37 – Vaudreuil-Dorion, Québec)
- Michael Farella, a.k.a. “Honda,” (29 – Sainte-Geneviève, Québec)
- Sebastian Guenole, a.k.a. “Tweeter,” (30 – Pierrefonds, Québec)
- Ryan Bridgman, a.k.a. “Clint,” (37 – Deux-Montagnes, Québec)
- Stephanie-Marie Samaras, a.k.a. “North” (29 – Laval, Québec)
All but two of the above-named individuals were arrested in Canada on March 4. West and Jimmy Ylimaki remain at large.

An additional nine individuals have previously been charged in the District of Vermont in connection with this grandparent scam, including Otmane Khalladi (32 – Miami, Florida), Jean Richard Audate (39 – New York, New York), Philippe Alvarez (34 – Montréal, Québec), Paul Conneh (37 – Guangzhou, China), Dave Leblanc (37 – Greenacres, Florida), Zavier Buchanan (27 – Wellington, Florida), William Comfort (29 – Los Angeles, California), Alejandro Garcia (34 – Miami, Florida), and Enmanuel Castillo (31 – Miami, Florida).

If you or someone you know has been a victim of elder fraud, help is standing by at the National Elder Fraud Hotline (833-FRAUD-11). This hotline is a free resource created by the U.S. Department of Justice, Office for Victims of Crime for people to report fraud against anyone age 60 or older.

View the indictment

MIL OSI USA News –
March 6, 2025
MIL-OSI Australia: Australian Deputy PM: $1.1 billion for a safer, more efficient Western Freeway

Source: Minister of Infrastructure

The Albanese Labor Government is building Australia’s future, boosting our nation’s productivity and connecting our region’s communities by investing in our highway network.

We’re investing $1.1 billion to upgrade Victoria’s Western Freeway – the major highway connecting Melbourne to Adelaide, and our regions to both cities.

This brings our total investment in the Western Freeway corridor to $2.1 billion.

Approximately 86,000 vehicles travel the Western Freeway stretch between Melton and Caroline Springs every single day, with this figure expected to rise to approximately 113,000 by 2031.

It’s a critical transport route for passengers and freight, which links with major freight routes throughout the state including Midland, Sunraysia, Pyrenees, Henty and Wimmera Highways.

The investment will go towards improving capacity and safety along the freeway between Melton and Caroline Springs, with upgrades to be identified and prioritised between the Australian and Victorian governments from the jointly funded business case being finalised by the Victorian Government.

$100 million will be allocated towards planning and early works to upgrade the intersection of the freeway with Brewery Tap Road in Warrenheip.

In addition, we’re providing $6.1 million towards two bridge strengthening upgrades between Stawell and the South Australian border.

The Albanese and Allan Governments will undertake bridge strengthening works at the Dimboola Bridge over the Melbourne-Adelaide Railway Line and Dadswells Bridge over the Mt William Creek Floodplain, reducing transit times and providing better efficiency of freight movements between rural industries and manufacturers, while allowing for industry growth and regional development.

Construction of these bridge upgrades is expected to commence in 2025 and end by 2026.

The Albanese Government remains dedicated to working for all Australians by delivering nationally significant infrastructure projects that enhance productivity and resilience, improve liveability, and promote sustainability. 

Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

“We’re investing in the transport projects that matter most to Victorians, delivering a rail link to Melbourne Airport, fixing our regional and suburban roads, and strengthening our busiest freeways.

“We’re investing $2.1 billion in the Western Freeway corridor, $7 billion in the Melbourne Airport rail link, and $1 billion in a suburban road blitz because we care about our cities, our suburbs and our regions.

“The Liberals and Nationals starved Victorians of infrastructure funding over their decade in government, and we won’t let that happen again.”

Quotes attributable to Federal Member for Gorton Brendan O’Connor:

“Those who regularly travel on this stretch of the Western Freeway know full well how much this $1 billion investment is needed.

“The Liberals ignored this for nine years while the traffic got heavier and the road conditions worsened.

“Only Labor Governments invest in the west.”

MIL OSI News –

March 6, 2025
MIL-OSI Australia: $1.1 billion for a safer, more efficient Western Freeway

Source: Australian Ministers for Regional Development

The Albanese Labor Government is building Australia’s future, boosting our nation’s productivity and connecting our region’s communities by investing in our highway network.

We’re investing $1.1 billion to upgrade Victoria’s Western Freeway – the major highway connecting Melbourne to Adelaide, and our regions to both cities.

This brings our total investment in the Western Freeway corridor to $2.1 billion.

Approximately 86,000 vehicles travel the Western Freeway stretch between Melton and Caroline Springs every single day, with this figure expected to rise to approximately 113,000 by 2031.

It’s a critical transport route for passengers and freight, which links with major freight routes throughout the state including Midland, Sunraysia, Pyrenees, Henty and Wimmera Highways.

The investment will go towards improving capacity and safety along the freeway between Melton and Caroline Springs, with upgrades to be identified and prioritised between the Australian and Victorian governments from the jointly funded business case being finalised by the Victorian Government.

$100 million will be allocated towards planning and early works to upgrade the intersection of the freeway with Brewery Tap Road in Warrenheip.

In addition, we’re providing $6.1 million towards two bridge strengthening upgrades between Stawell and the South Australian border.

The Albanese and Allan Governments will undertake bridge strengthening works at the Dimboola Bridge over the Melbourne-Adelaide Railway Line and Dadswells Bridge over the Mt William Creek Floodplain, reducing transit times and providing better efficiency of freight movements between rural industries and manufacturers, while allowing for industry growth and regional development.

Construction of these bridge upgrades is expected to commence in 2025 and end by 2026.

The Albanese Government remains dedicated to working for all Australians by delivering nationally significant infrastructure projects that enhance productivity and resilience, improve liveability, and promote sustainability. 

Quotes attributable to Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King:

“We’re investing in the transport projects that matter most to Victorians, delivering a rail link to Melbourne Airport, fixing our regional and suburban roads, and strengthening our busiest freeways.

“We’re investing $2.1 billion in the Western Freeway corridor, $7 billion in the Melbourne Airport rail link, and $1 billion in a suburban road blitz because we care about our cities, our suburbs and our regions.

“The Liberals and Nationals starved Victorians of infrastructure funding over their decade in government, and we won’t let that happen again.”

Quotes attributable to Federal Member for Gorton Brendan O’Connor:

“Those who regularly travel on this stretch of the Western Freeway know full well how much this $1 billion investment is needed.

“The Liberals ignored this for nine years while the traffic got heavier and the road conditions worsened.

“Only Labor Governments invest in the west.”

MIL OSI News –

March 6, 2025
MIL-OSI Security: Update 279 – IAEA Director General Statement on Situation in Ukraine

Source: International Atomic Energy Agency – IAEA

The presence of the International Atomic Energy Agency (IAEA) at Ukraine’s nuclear power plants (NPPs) remains an “invaluable asset” for the international community and must be preserved, Director General Rafael Mariano Grossi told Member States after the completion of a delayed team rotation at the Zaporizhzhya Nuclear Power Plant (ZNPP).

“Difficult conditions have in the past month complicated and delayed the latest rotation of experts, which was safely completed in recent days,” Director General Grossi said in his written introductory statement to the IAEA Board of Governors, which is holding its regular March meeting this week.

In December, a drone attack severely damaged an official IAEA vehicle during a rotation, and in February intense military activity forced the cancellation of the most recent planned rotation, which was finally concluded earlier this month. The current team at the ZNPP is the 27th since Director General Grossi established a continued IAEA presence at the site, where nuclear safety and security remains precarious.

Director General Grossi emphasized that “all the IAEA’s activities in Ukraine are being conducted in line with relevant resolutions of the UN General Assembly and of the IAEA policy-making organs”.

At the ZNPP, the IAEA team has continued to hear explosions on most days over the past week, at varying distances.

The IAEA team at the ZNPP was informed that scheduled maintenance of part of the safety system of reactor unit 1 had been completed and returned to service. At the same time, maintenance began at another part of the same reactor’s safety system.

At the Chornobyl site, firefighters have made progress in extinguishing the fire on the roof of the New Safe Confinement (NSC) caused by a drone strike on 14 February. The IAEA team at the site was informed that no smouldering fires had been detected over the past two days. The site continues to use thermal imaging and surveillance drones to monitor the structure.

The Chornobyl site has continued to perform frequent radiation monitoring and report the results to the IAEA team. The IAEA team has also undertaken its own independent monitoring. To date, all monitoring results have shown that there has not been any increase in the normal range of radiation levels measured at the site nor any abnormal readings detected.

The IAEA team at the Chornobyl site also reported multiple air raid alarms during the past week. In addition, the IAEA was informed by the Ukrainian regulator that the site recorded drone flights in the area early on 1 March.

Last week, a team of IAEA experts conducted another round of visits to seven electrical substations identified as critical for nuclear safety and security in Ukraine.

As during the previous visits last year, the team observed the current status of the substations and collected relevant information to assess any potential impacts of attacks in recent months to the safe operation of Ukraine’s nuclear facilities and to identify any further technical assistance that could be provided by the IAEA.

The IAEA teams at Ukraine’s operating NPPs – Khmelnytskyy, Rivne and South Ukraine – have continued to monitor the nuclear safety and security situation at these sites. The teams report hearing air raid alarms on most days, with the team at the Khmelnytskyy NPP having to shelter at the site on Monday. One reactor unit at the same plant last weekend began a planned outage for refuelling and maintenance.

Separately, the IAEA has continued with its comprehensive programme of nuclear safety and security assistance to Ukraine, with three new deliveries of equipment bringing the total number since the start of the armed conflict to 111.

The Hydrometeorological Centre and Hydrometeorological Organizations of the State Emergency Services of Ukraine received survey meters, the Centralised Spent Fuel Storage Facility of Energoatom received thermal imaging cameras and the medical unit of the Khmelnytskyy NPP received medical equipment and supplies. The deliveries were supported with funds provided by the European Union, Norway and the United States.

“We are grateful to all 30 donor states and the European Union for their extrabudgetary contributions, and I encourage those who can, to support the delivery of the comprehensive assistance programme, for which EUR 22 million are still necessary,” Director General Grossi told the Board.

MIL Security OSI –

March 6, 2025

Category: Transport

Budget 2025: Supporting a strong workforce

Budget 2025: Securing our borders

Budget 2025: Investing in post-secondary education

Budget 2025: Building communities

Budget 2025: Supporting trade and diversification

Budget 2025: Investing in business and industry

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Le budget de 2025 relève le défi de l’incertitude en matière de commerce et de sécurité en mettant l’accent sur l’économie.

Budget 2025 : Soutenir une main-d’œuvre solide

Budget 2025 : Assurer la sécurité de nos frontières

Budget 2025 : Investir dans l’enseignement postsecondaire

Budget 2025 : Bâtir des communautés

Budget 2025 : Soutenir le commerce et la diversification

Budget 2025 : Investir dans les entreprises et les industries

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Researchers Connect Satellite and Soil Data to Refine Salt Marsh Carbon Storage Estimates