Revenue Performance - For the three months ended March 31, 2025, total revenue was $12,169,711, a decrease of approximately $3,066,181 compared to $15,235,892 for the same period in 2024[142]. - Revenue from the entertainment publicity and marketing segment increased to $12,077,678, representing 99.2% of total revenue, compared to 78.0% in the prior year[137]. - Revenue from content production decreased to $92,033, down approximately $3,329,108 from $3,421,141 in the previous year, primarily due to the revenue from The Blue Angels documentary[143]. Expense Analysis - Total expenses for the three months ended March 31, 2025, were $13,943,238, a decrease of approximately $1,128,114 from $15,071,352 in 2024[144]. - Direct costs decreased significantly to $344,414, down approximately $1,974,813 from $2,319,227 in the prior year, attributed to the amortization of production costs for The Blue Angels[144]. - Payroll and benefits expenses increased to $10,304,233, an increase of approximately $729,982 compared to $9,574,251 in the previous year, mainly due to the inclusion of Elle's payroll expenses[145]. - Selling, general and administrative expenses decreased to $1,772,444, down approximately $204,546 from $1,976,990 in the prior year, primarily due to reduced office rent expenses[146]. - Legal and professional fees decreased by $133 thousand for the three months ended March 31, 2025, primarily due to cost savings from bringing financial reporting in-house[149]. - Depreciation and amortization increased by $38 thousand for the three months ended March 31, 2025, compared to the same period in 2024[148]. Net Loss and Cash Flow - Net loss was approximately $2.3 million or ($0.21) per share for the three months ended March 31, 2025, compared to a net loss of approximately $0.3 million or ($0.04) per share for the same period in 2024[155]. - Cash used in operating activities was $1.7 million for the three months ended March 31, 2025, an increase of $0.5 million from the prior year[158]. - Cash flows provided by financing activities for the three months ended March 31, 2025 were $586 thousand, primarily from proceeds of convertible notes payable[160]. Debt and Financing - Total debt amounted to $23.0 million as of March 31, 2025, an increase of $597.1 thousand from December 31, 2024[161]. - The company issued six convertible notes payable during the three months ended March 31, 2025, receiving proceeds of $775,000[165]. - The company recorded a gain in fair value of $20 thousand for the convertible note payable at fair value for the three months ended March 31, 2025[171]. - The Socialyte Promissory Note, amounting to $3 million, matured on September 30, 2023, with no interest payments made during the three months ended March 31, 2025[176]. - As of March 31, 2025, the aggregate principal balance of DE LLC Notes was $2,242,873, with accrued interest of $434,066[180]. - The company issued three nonconvertible promissory notes totaling $983,112 to Mr. Donald Scott Mock, with accrued interest of $114,995 as of March 31, 2025[181]. - Interest expense related to DE LLC Notes and Mock Notes was $79,882 for the three months ended March 31, 2025, compared to $46,121 for the same period in 2024[182]. - The BankUnited Loan Agreement includes a $5,800,000 secured term loan, a $750,000 revolving line of credit, and a $400,000 commercial card[183]. - The Second Bank United Loan Agreement for $2.0 million was established to finance the acquisition of Elle Communications, LLC, maturing in December 2027[184]. - The First BKU Term Loan has an interest rate of 8.10% and a 5-year amortization schedule, while the Second BKU Term Loan has a 7.10% interest rate with a 3-year amortization[185]. - As of March 31, 2025, current liabilities were $1,708,051 and noncurrent liabilities were $4,349,537 related to the First and Second BKU Term Loans[187]. - The BankUnited Credit Facility requires a minimum debt service coverage ratio of 1.25:1.00 and a maximum funded debt/EBITDA ratio of 3.00:1.00[189]. - Amortization of debt origination costs under the Bank United Credit Facility amounted to approximately $7,012 for the three months ended March 31, 2025[188]. - The company recorded interest expense of $7,550 related to the BKU Line of Credit for the three months ended March 31, 2025[186]. Strategic Initiatives - The company has established an acquisition strategy to identify and acquire complementary businesses to enhance profits and cash flow, although no active negotiations are currently in place[127]. - The company plans to enter into Venture investments during 2025, focusing on developing internally owned assets in entertainment content, live events, and consumer products[128]. - Acquisition costs for the three months ended March 31, 2025, were $416,171, related to payments to Special Projects Sellers, with no acquisition costs recorded in the prior year[147].

Financial Performance - For the three months ended March 31, 2025, Arteris generated revenue of $16.5 million and reported a net loss of $8.1 million, with a net loss per share of $0.20[80]. - Total revenue for the three months ended March 31, 2025, was $16.532 million, a 28% increase from $12.947 million in the same period of 2024[112]. - Licensing, support, and maintenance revenue increased by $3.596 million, or 31%, to $15.335 million for the three months ended March 31, 2025, compared to $11.739 million in 2024[114]. - Gross profit margin improved to 91% for the three months ended March 31, 2025, compared to 89% in the same period of 2024[113]. - Net loss for the three months ended March 31, 2025, was $8.121 million, a decrease from a net loss of $9.403 million in 2024[112]. - Cost of revenue increased slightly by $58,000, or 4%, to $1.526 million for the three months ended March 31, 2025, compared to $1.468 million in 2024[115]. - Other income (expense), net decreased by $218,000, or 23%, to $718,000 for the three months ended March 31, 2025, from $936,000 in 2024[121]. - Provision for income taxes decreased by $102,000, or 28%, to $268,000 for the three months ended March 31, 2025, compared to $370,000 in 2024[123]. - Loss from equity method investment was $815,000 for the three months ended March 31, 2025, compared to $759,000 in 2024, reflecting a 7% increase[122]. Revenue Sources and Growth - As of March 31, 2025, the Annual Contract Value (ACV) was $62.1 million, an increase from $53.5 million as of March 31, 2024, while total ACV plus royalties reached $66.8 million, up from $58.2 million[92]. - 60.1% of revenue for the three months ended March 31, 2025, was derived from international sales, with 25.1% specifically from customers in China[88]. - The company anticipates continued growth driven by increasing complexity in System-on-Chip (SoC) designs, particularly in markets such as automotive and AI[78]. - The company aims to evaluate growth opportunities through potential acquisitions of other businesses[87]. Expenses and Investments - Research and development (R&D) expenses rose by $1.027 million, or 9%, to $11.862 million for the three months ended March 31, 2025, from $10.835 million in 2024[116]. - Sales and marketing (S&M) expenses increased by $1.073 million, or 20%, to $6.529 million for the three months ended March 31, 2025, compared to $5.456 million in 2024[118]. - Research and development expenses are expected to increase in absolute terms, reflecting ongoing investments in technology and product development[86]. Cash Flow and Liquidity - As of March 31, 2025, the company had $42.3 million in cash and cash equivalents, with $12.8 million in long-term investments[124]. - For the three months ended March 31, 2025, net cash provided by operating activities was $2.9 million, despite a net loss of $8.1 million[128]. - The company experienced a $10.3 million decrease in accounts receivable for the three months ended March 31, 2025[128]. - Net cash used in investing activities for the three months ended March 31, 2025 was $0.1 million, primarily due to purchases of available-for-sale securities[130]. - Net cash provided by financing activities for the three months ended March 31, 2024 was less than $0.1 million, primarily from stock option exercises[133]. - The company believes its current cash and cash equivalents will be sufficient to meet liquidity requirements for at least the next 12 months[125]. Industry Context - The semiconductor industry is characterized by cyclical trends, which can significantly impact revenue and customer demand for Arteris' products[90]. - Arteris' interconnect IP solutions are critical for enabling sophisticated applications across various markets, including automotive and consumer electronics[79]. Other Information - The company had no off-balance sheet financing arrangements during the periods presented[134]. - Non-cash charges for the three months ended March 31, 2025 included stock-based compensation of $4.3 million[128]. - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay the adoption of certain accounting standards[138].

Financial Performance - Cash and cash equivalents totaled $79.4 million as of December 31, 2024, compared to $49.9 million at December 31, 2023, representing a 59% increase[9] - Research and development expenses for the year ended December 31, 2024, were $48.7 million, a decrease of approximately 10% from $53.9 million for the year ended December 31, 2023[9] - General and administrative expenses increased to $56.0 million for the year ended December 31, 2024, from $20.6 million in 2023, marking an increase of approximately 172%[9] - The net loss for the year ended December 31, 2024, was $105.6 million, or $0.76 per share, compared to a net loss of $119.8 million, or $1.42 per share, for the year ended December 31, 2023[9] - Total revenue for the year ended December 31, 2024, was $455,000, a significant decrease from $9.99 million in 2023[16] - The accumulated deficit increased to $574.2 million as of December 31, 2024, compared to $468.6 million as of December 31, 2023[14] Regulatory and Strategic Developments - The company received a Complete Response Letter from the FDA regarding the New Drug Application for govorestat for Classic Galactosemia, and is evaluating its response[3] - The company is focused on preparing for potential regulatory interactions regarding govorestat in both Classic Galactosemia and SORD Deficiency[2] - The company appointed key senior executives to enhance its regulatory, medical, and quality affairs capabilities, including Todd F. Baumgartner as Chief Regulatory Officer[3] Asset Management - The total assets increased to $86.7 million as of December 31, 2024, from $54.8 million as of December 31, 2023[14]

Financial Performance - Net sales increased by 4.5% to $10.0 million compared to $9.6 million in Q1 2024[5] - Gross profit remained flat at $3.4 million, with a gross margin of 33.9%, down from 35.6% in the previous year[7] - Operating loss increased to $1.7 million, compared to a loss of $0.7 million in Q1 2024[9] - The company reported a net loss of $2,031 million for the three months ended March 31, 2025, compared to a net loss of $1,673 million for the same period in 2024, representing an increase in loss of approximately 21.5%[30] - Modified EBITDA loss was $1.6 million, worsening from a loss of $0.4 million in the same quarter last year[10] - Modified EBITDA for the three months ended March 31, 2025, was $(1,634) million, a significant decline from $(370) million in the same period of 2024, indicating a deterioration in operational performance[30] Cash Flow and Liquidity - Cash used in operating activities was approximately $5.4 million, up from $2.4 million in Q1 2024[11] - As of March 31, 2025, the company had approximately $4.9 million in cash, down from $10.4 million at the end of 2024[11] - Net cash used in operating activities increased to $(5,362) million for the three months ended March 31, 2025, compared to $(2,395) million in the prior year, reflecting a worsening cash flow situation[29] - Cash at the end of the period was $4,862 million, a decrease from $10,391 million at the beginning of the period, highlighting liquidity challenges[29] - Cash paid for interest decreased to $199 million from $318 million year-over-year, indicating a potential reduction in debt obligations or interest rates[29] - The company incurred interest expenses of $289 million for the three months ended March 31, 2025, a decrease from $1,023 million in the prior year, indicating a reduction in debt servicing costs[30] Operational Efficiency and Management - Delivery and handling costs were $1.6 million, representing 16.2% of net sales, compared to 15.7% in Q1 2024[8] - Selling, general and administrative expenses rose to $3.5 million from $2.6 million, driven by investments in growth initiatives[9] - The company aims to improve operational efficiency, reducing short shipments from approximately 20% to roughly 2% by April 2025[3] - Total EBITDA adjustments for the three months ended March 31, 2025, amounted to $397 million, down from $1,303 million in the same period of 2024, suggesting increased operational inefficiencies[30] - The company experienced a decrease in accounts receivable by $125 million, while inventory saw a significant decrease of $4,194 million, indicating potential issues with sales or inventory management[29] - The company reported a significant write-down in inventory of $25 million, compared to $783 million in the previous year, reflecting improved inventory management practices[29] Investment Activities - The company’s cash flows from investing activities were $(74) million for the three months ended March 31, 2025, compared to $(18) million in the prior year, indicating increased investment activity despite cash flow challenges[29] - New product launches include functional beverages, which are expected to drive growth in 2025[2]

Financial Performance - Total revenue for Q1 2025 was $8.485 million, a 11.1% increase from $7.639 million in Q1 2024[20] - Product revenue increased to $5.291 million in Q1 2025, up 45.5% from $3.635 million in Q1 2024[20] - Gross profit for Q1 2025 was $5.132 million, compared to $4.525 million in Q1 2024, reflecting a gross margin improvement[20] - Net loss for Q1 2025 was $6.026 million, compared to a net loss of $4.146 million in Q1 2024, indicating increased operational costs[20] - Total revenue for the three months ended March 31, 2025, was $8.485 million, an increase of 11.1% compared to $7.639 million for the same period in 2024[71] Research and Development - Research and development costs rose to $3.379 million in Q1 2025, up 28.8% from $2.625 million in Q1 2024[20] - Research and development share-based compensation increased to $484,000 in Q1 2025, up from $337,000 in Q1 2024, reflecting a 43.7% rise[94] Cash and Liquidity - Cash and cash equivalents decreased to $12.387 million at the end of Q1 2025 from $20.104 million at the end of Q4 2024[25] - Cash and cash equivalents were $12.4 million as of March 31, 2025, down from $20.1 million at December 31, 2024, reflecting a decrease of 38.3%[78] - The company has evaluated its ability to continue as a going concern and determined that existing cash balances are sufficient to support operations for at least the next twelve months[34] Assets and Liabilities - Total assets decreased to $30.070 million as of March 31, 2025, down from $39.189 million as of December 31, 2024[18] - Total liabilities decreased to $10.083 million as of March 31, 2025, down from $13.800 million as of December 31, 2024[18] Customer and Revenue Recognition - The company recognizes revenue primarily from product sales, including neurosurgery navigation products and service revenue from development services and consultation[43] - As of March 31, 2025, one customer accounted for 12% of accounts receivable, while two customers represented 24% of accounts receivable as of December 31, 2024[61] - A pharmaceutical customer accounted for 9% of total sales for the three-month periods ended March 31, 2025, and 2024[62] - The company recognized approximately $0.8 million of revenue from deferred revenue during the three months ended March 31, 2025[75] Offerings and Financing - The company completed a follow-on public offering in March 2024, raising approximately $16.2 million from the sale of 2,653,848 shares of common stock[36] - The company has an At-the-Market Equity Offering Sales Agreement allowing for the sale of up to $50 million in common stock, but no shares have been issued under this agreement as of March 31, 2025[36] - The company repaid the remaining $10 million under a Securities Purchase Agreement in August 2024, which had raised gross proceeds of $25 million[37] - The company completed a public offering in March 2024, raising net proceeds of approximately $16.2 million from the sale of 2,653,848 shares at a price of $6.50 per share[91] - The company has not issued any shares under the At-The-Market (ATM) Agreement, which allows for sales of up to $50 million in common stock[92] - The company may sell notes up to an aggregate principal amount of $105 million under a note purchase agreement, with a minimum interest rate of 8.25%[106] Inventory and Deferred Revenue - Inventory totaled $6.689 million as of March 31, 2025, compared to $6.966 million at December 31, 2024, a decline of 4.0%[80] - Deferred revenues decreased to $1.975 million as of March 31, 2025, down from $2.557 million at December 31, 2024, indicating a reduction of 22.7%[75] - The company expects to recognize approximately 79% of the remaining performance obligations, valued at $1.7 million, over the next twelve months[76] Stock and Compensation - Share-based compensation expense for Q1 2025 totaled $1,908,000, an increase of 27% from $1,504,000 in Q1 2024[94] - The total unrecognized compensation expense as of March 31, 2025, is $13,499,000, with a weighted-average recognition period of 1.99 years[96] - The company has 1,352,615 stock options outstanding as of March 31, 2025, with an average exercise price of $6.16 and an intrinsic value of $8,897,000[97] - Restricted Stock Units (RSUs) granted in Q1 2025 totaled 541,771, with an average grant date fair value of $13.55[100] Business Operations - The company operates in one reportable segment, primarily generating revenue in the United States[101] - The company has not recorded significant foreign currency sales and does not currently engage in hedging transactions[158] - The company has over 60 biologics and drug delivery customers currently evaluating or using its products and services[32] - The ClearPoint Prism Neuro Laser Therapy System was commercialized in 2022, marking a significant product development milestone[31] Accounting Standards - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2023-07 and ASU 2023-09[65][68]

Financial Performance - Net sales for the three months ended March 31, 2025, were $0.6 million, a decrease of $0.2 million (27%) compared to $0.8 million for the same period in the prior year, primarily due to lower demand for tissue products [106]. - Cost of products sold during the same period was $0.2 million, a decrease of $0.3 million (56%) compared to $0.5 million for the same period in the prior year, attributed to reduced net sales and changes in product mix [107]. - Loss before income taxes from continuing operations was $21.9 million for Q1 2025, an increase of $5.8 million (36%) compared to Q1 2024 [112]. - Net cash used in operating activities during Q1 2025 was $21.5 million, an increase of $6.0 million (38%) compared to $15.5 million in Q1 2024 [119]. - Cash and cash equivalents as of March 31, 2025, were $49.0 million, down from $70.5 million as of December 31, 2024 [115]. - The accumulated deficit as of March 31, 2025, was $298.3 million, up from $276.4 million as of December 31, 2024 [114]. Research and Development - R&D expenses increased to $16.5 million, an increase of $4.9 million (42%) compared to $11.6 million for the same period in the prior year, driven by upscaling manufacturing capabilities and preparatory activities for the Pivotal Trial [108]. - The company anticipates requiring substantial additional funds to achieve long-term goals and complete R&D of current products [116]. - The company expects to continue incurring substantial losses in the near future until regulatory approval is obtained for its products [116]. Operational Activities - The company has treated over 100 patients with the DurAVR® THV system across the United States, Canada, and Europe as of March 31, 2025 [85]. - The company is expanding global manufacturing capacity to support the PARADIGM Trial, aiming to increase capacity to at least three times the 2024 levels [96]. Capital and Financing - The initial public offering on December 12, 2024, raised net proceeds of $80.0 million after deducting underwriting discounts and expenses [86]. - Capital commitments relating to property leases were $1.3 million as of March 31, 2025 [115]. - The company had commitments to purchase $0.2 million of plant and equipment as of March 31, 2025 [124]. Other Income and Expenses - Selling, general and administrative expenses decreased to $5.7 million, a reduction of $0.8 million (13%) compared to $6.5 million for the same period in the prior year, mainly due to lower costs associated with the initial public offering [109]. - Other non-operating income decreased to $0.1 million, a decline of $0.3 million (78%) compared to $0.4 million for the same period in the prior year, primarily due to the recognition of additional government grants in the previous year [110]. - Net foreign exchange losses were $0.2 million, a change of $1.5 million (118%) compared to net foreign exchange gains of $1.2 million for the same period in the prior year, influenced by fluctuations in foreign exchange rates [111]. Cash Flow Activities - Net cash provided by investing activities during Q1 2025 was $1.1 million, a change of $1.8 million (255%) compared to cash outflows of $0.7 million in Q1 2024 [120]. - Net cash used in financing activities during Q1 2025 was $1.1 million, a change of $2.6 million (170%) compared to cash inflows of $1.6 million in Q1 2024 [121].

Financial Performance - Revenue for Q1 2025 was $239,486,000, a decrease of 16.9% compared to $288,097,000 in Q1 2024[18] - Gross profit increased to $21,480,000, up 5.2% from $20,421,000 in the same period last year[18] - Net loss attributable to Southland Stockholders was $4,552,000, compared to a loss of $406,000 in Q1 2024[18] - Basic net loss per share attributable to common stockholders was $(0.08), compared to $(0.01) in Q1 2024[18] - Comprehensive loss attributable to Southland Stockholders was $4,881,000, compared to a loss of $778,000 in Q1 2024[19] - For the three months ended March 31, 2025, Southland Holdings reported a net loss of $2.786 million compared to a net income of $0.525 million for the same period in 2024[25] - EBITDA for Q1 2025 was $10.08 million, down from $10.95 million in Q1 2024[169] - Basic and diluted net loss per share for the three months ended March 31, 2025, is $(0.08), compared to $(0.01) for the same period in 2024[130] Assets and Liabilities - Total current assets as of March 31, 2025, were $884,954,000, slightly up from $881,652,000 as of December 31, 2024[17] - Total liabilities increased to $1,030,271,000 from $1,028,240,000 at the end of 2024[17] - Cash and cash equivalents decreased to $65,052,000 from $72,185,000 at the end of 2024[17] - Total stockholders' equity decreased to $159,130,000 from $163,658,000 as of December 31, 2024[17] - Long-term debt as of March 31, 2025, was $241,309,000, down from $255,625,000 as of December 31, 2024[79] - Total debt as of March 31, 2025, was $288.1 million, with $46.8 million due within the next twelve months[179] Revenue Segmentation - Civil segment revenue increased to $102.916 million, accounting for 43.0% of total revenue, compared to $84.273 million or 29.3% in the prior year[76] - Transportation segment revenue decreased to $136.570 million, representing 57.0% of total revenue, down from $203.824 million or 70.7% in the same period of 2024[76] - Revenue earned outside of the United States was 15% for the three months ended March 31, 2025, down from 26% in the same period of 2024[78] Costs and Expenses - Total cost of construction for the three months ended March 31, 2025, was $218.006 million, down from $267.676 million in the same period of 2024, a decrease of approximately 18.5%[77] - Selling, general, and administrative expenses for the three months ended March 31, 2025, were $16.5 million, an increase of $2.1 million, or 14.4%, compared to the same period in 2024[155] - Interest expense for the three months ended March 31, 2025, was $8.9 million, an increase of $3.2 million, or 56.9%, compared to the same period in 2024[156] Cash Flow - Net cash provided by operating activities was $6.429 million, a significant improvement from a net cash used of $9.897 million in the prior year[25] - Total cash, cash equivalents, and restricted cash at the end of the period was $81.116 million, down from $87.561 million at the beginning of the period[43] Contractual Obligations - As of March 31, 2025, the Company has $2.5 billion in Remaining Unsatisfied Performance Obligations (RUPO), expecting to recognize approximately 40% as revenue in the next twelve months[114] - Contract assets as of March 31, 2025, total $493.9 million, with costs incurred on uncompleted contracts amounting to $7.7 billion[115] - The Company recorded $487.3 million related to Unresolved Contract Modifications as of March 31, 2025[116] Backlog and Future Outlook - Total contract backlog as of March 31, 2025, was $2.47 billion, down from $2.57 billion at the end of 2024[170] - Civil segment backlog increased to $976.34 million as of March 31, 2025, from $961.21 million at the end of 2024[171] - Transportation segment backlog decreased to $1.49 billion as of March 31, 2025, from $1.61 billion at the end of 2024[171] - The company anticipates further spending on infrastructure related to economic stimulus initiatives, including the Infrastructure Investment and Jobs Act passed in 2021[141] - The company has identified new opportunities in both the Civil and Transportation segments, with a positive outlook for future projects despite existing risks and uncertainties[138] Compliance and Governance - The Company was in compliance with all applicable financial covenants under the Credit Agreement as of March 31, 2025[188] - There were no changes in internal control over financial reporting that materially affected the Company during the fiscal quarter ended March 31, 2025[197] - The Company’s management confirmed the effectiveness of disclosure controls and procedures as of the end of the reporting period[196] - No additional risk factors were identified, and there were no material changes to previously disclosed risk factors as of the fiscal year ended December 31, 2024[201]

Financial Performance - Revenue for Q1 2025 was $239,486,000, a decrease of 16.9% compared to $288,097,000 in Q1 2024[18] - Gross profit increased to $21,480,000, up 5.2% from $20,421,000 in the same period last year[18] - Net loss attributable to Southland Stockholders was $4,552,000, compared to a loss of $406,000 in Q1 2024[18] - Basic net loss per share attributable to common stockholders was $(0.08), compared to $(0.01) in Q1 2024[18] - For the three months ended March 31, 2025, Southland Holdings reported a net loss of $2.786 million compared to a net income of $0.525 million for the same period in 2024[25] - Gross profit for Q1 2025 was $21.5 million, an increase of $1.1 million, or 5.2%, compared to Q1 2024[154] - EBITDA for Q1 2025 was $10.08 million, down from $10.95 million in Q1 2024[169] Assets and Liabilities - Total current assets increased slightly to $884,954,000 from $881,652,000 at the end of 2024[17] - Total liabilities rose to $1,030,271,000, up from $1,028,240,000 at the end of 2024[17] - Cash and cash equivalents decreased to $65,052,000 from $72,185,000 at the end of 2024[17] - Total stockholders' equity decreased to $159,130,000 from $163,658,000 at the end of 2024[17] - Total long-term debt as of March 31, 2025, was $241,309,000, down from $255,625,000 as of December 31, 2024[79] - Total debt as of March 31, 2025, was $288.1 million, with $46.8 million due within the next twelve months[179] Revenue Segmentation - Civil segment revenue increased to $102.9 million, representing 43.0% of total revenue, compared to $84.3 million or 29.3% in the prior year[76] - Transportation segment revenue decreased to $136.6 million, accounting for 57.0% of total revenue, down from $203.8 million or 70.7% in the previous year[76] Costs and Expenses - Total cost of construction for the three months ended March 31, 2025, was $218.0 million, a decrease of 18.6% from $267.7 million in the same period of 2024[77] - Selling, general, and administrative expenses for Q1 2025 were $16.5 million, an increase of $2.1 million, or 14.4%, compared to Q1 2024[155] - Interest expense increased to $8,874,000 from $5,655,000 in Q1 2024[18] - Interest expense for Q1 2025 was $8.9 million, an increase of $3.2 million, or 56.9%, compared to Q1 2024[156] Cash Flow - Cash flows from operating activities generated $6.429 million in Q1 2025, a significant improvement from a cash outflow of $9.897 million in Q1 2024[25] - Net cash provided by operating activities was $6.43 million in Q1 2025, compared to a net cash used of $9.90 million in Q1 2024[176] Backlog and Performance Obligations - Total backlog as of March 31, 2025, was $2.47 billion, down from $2.57 billion at the end of 2024, after recognizing $239.49 million in contract revenue[170] - Civil segment backlog increased to $976.34 million as of March 31, 2025, from $961.21 million at the end of 2024[171] - Transportation segment backlog decreased to $1.49 billion as of March 31, 2025, from $1.61 billion at the end of 2024[171] - As of March 31, 2025, the Company has $2.5 billion in Remaining Unsatisfied Performance Obligations (RUPO), expecting to recognize approximately 40% as revenue in the next twelve months[114] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 10.1%, significantly lower than 36.9% for the same period in 2024[107] - The company is in compliance with all applicable financial covenants under the Credit Agreement as of March 31, 2025[88] - The Company was in compliance with all applicable financial covenants under the Credit Agreement as of March 31, 2025[189] Other Financial Metrics - The company has outstanding surety bonds as of March 31, 2025, as a condition for entering into a substantial portion of its construction contracts[104] - The company has secured notes with interest rates ranging from 0.00% to 12.90%, expiring between December 2025 and March 2033[80] - The company has an outstanding balance of 608,254 Restricted Stock Units (RSUs) as of March 31, 2025, with a weighted-average grant-date fair value of $4.41[127] Management and Governance - An employment agreement with Keith Bassano was established on May 9, 2025, with an annual base salary of $357,000 and a performance bonus targeted between 80% and 200% of the base salary[202] - There were no changes in internal control over financial reporting that materially affected the Company during the fiscal quarter ended March 31, 2025[197] - The Company has established effective disclosure controls and procedures as of the end of the reporting period[196]

Financial Performance - Total revenue for Q1 2025 increased to $0.30 million, up 87.5% from $0.16 million in Q1 2024[5] - Net loss for Q1 2025 was $4.3 million, or $0.40 per share, compared to a net loss of $3.1 million, or $0.32 per share in Q1 2024[5] - Adjusted EBITDA loss for Q1 2025 was $3.9 million, compared to a loss of $2.4 million in Q1 2024, driven by increased investments[9] - Net loss for the three months ended March 31, 2025, was $4,339,467, compared to a net loss of $3,057,577 for the same period in 2024, indicating an increase in losses of about 42%[33] - Net cash flows from operating activities for the three months ended March 31, 2025, were $(5,358,306), compared to $(2,947,528) for the same period in 2024, indicating a worsening cash flow situation[33] Operating Expenses - Operating expenses for Q1 2025 were $4.7 million, compared to $3.3 million in Q1 2024, primarily due to increased headcount investment in sales and R&D[7] - The company incurred stock-based compensation expenses of $454,339 for the three months ended March 31, 2025, down from $722,971 in the same period of 2024, a decrease of about 37.1%[33] Assets and Liabilities - Total current assets decreased from $10,074,427 as of December 31, 2024, to $5,601,296 as of March 31, 2025, representing a decline of approximately 44.8%[31] - Total liabilities remained stable at $2,339,901 as of March 31, 2025, compared to $2,956,188 as of December 31, 2024, reflecting a decrease of about 20.9%[31] - Stockholders' equity decreased from $11,515,189 as of December 31, 2024, to $7,629,853 as of March 31, 2025, a decline of approximately 33.5%[31] Revenue and Bookings - Remaining Performance Obligation (RPO) as of March 31, 2025, was $13.85 million, significantly up from $4.03 million as of March 31, 2024[10] - Gross Booked Annual Recurring Revenue (bARR) for Q1 2025 was $0.01 million, down from $0.10 million in Q1 2024[11] - The company expects to close multiple Fortune 500 and multinational customers in 2025, aiming for an $18 million bookings target[5] Capital and Financing - authID secured nearly $9 million in capital through two financing rounds to enhance its balance sheet and support growth initiatives[4] - The company repaid $245,000 in convertible notes during the three months ended March 31, 2025, indicating ongoing debt management efforts[33] - Cash paid for interest increased from $9,023 in the three months ended March 31, 2024, to $13,137 in the same period of 2025, an increase of approximately 45.5%[33] Strategic Initiatives - The company is advancing partnerships with a Global Fortune 500 biometric hardware provider and a major identity fraud platform, nearing contract negotiations[8] - authID launched efforts into the Public Sector, providing a reusable identity platform for government workforces[8] Deferred Revenue - Deferred revenue increased significantly from $215,237 as of December 31, 2024, to $1,011,448 as of March 31, 2025, representing an increase of approximately 369.5%[31]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Organization) (I.R.S. Employer Identification No.) 1180 Celebration Boulevard, Suite 103, Celebration, FL 34747 (Address of Principal Executive Offices) (Zip Code) For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period ...