What changed in this filing

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Item 1. Financial Statements

2025-08-07 compared with 2025-05-06 · 139 added, 82 removed, 622 unchanged (26% of the section changed)

3 unchanged sentences

Three Months Ended

Six Months Ended

Operating expenses:

7 unchanged sentences

Other income and expense, net

Loss on debt extinguishment

Income before income taxes

Provision for income taxes

Provision for (benefit from) income taxes

Net income per share:

4 unchanged sentences

Three Months Ended

Six Months Ended

Other comprehensive income (loss), net of tax:

Net unrealized gain (losses) on available-for-sale debt securities

Net unrealized gain (losses) on marketable securities

Other comprehensive income (loss), net of tax

53 unchanged sentences

(in thousands)

Three Months Ended

March 31, 2025

March 31, 2024

Six Months Ended

June 30, 2025

June 30, 2024

Cash flows from operating activities:

3 unchanged sentences

Deferred income taxes

Loss on debt extinguishment

Amortization of debt issuance costs

25 unchanged sentences

Income taxes paid, net of refunds

Unpaid purchases of property and equipment at the end of the period

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3 unchanged sentences

Treasury Stock

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Paid-In Capital

Other Comprehensive Income

Retained Earnings

Stockholders' Equity

Balance at April 1, 2025

Other comprehensive income

Cash dividends paid on common stock ($ 0.05 per share)

Issuance of common stock in connection with exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Issuance of restricted stock, net of shares canceled

Withholding taxes related to net share settlement of restricted awards

Stock-based compensation expense

Balance at June 30, 2025

Total Company Stockholders' Equity

Treasury Stock

Six Months Ended June 30,

Paid-In Capital

Other Comprehensive Income (Loss)

5 unchanged sentences

Issuance of common stock in connection with exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Issuance of restricted stock, net of shares canceled

2 unchanged sentences

Stock-based compensation expense

Balance at March 31, 2025

Balance at June 30, 2025

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3 unchanged sentences

Treasury Stock

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Paid-In Capital

Comprehensive Loss

Stockholders' Equity

Balance at April 1, 2024

Other comprehensive loss

Cash dividends paid on common stock ($ 0.05 per share)

Issuance of common stock in connection with exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Issuance of restricted stock, net of shares canceled

Withholding taxes related to net share settlement of restricted awards

Stock-based compensation expense

Balance at June 30, 2024

Total Company Stockholders' Equity

Treasury Stock

Six Months Ended June 30, 2024

Paid-In Capital

Comprehensive Loss

Stockholders' Equity

Balance at January 1, 2024

2 unchanged sentences

Issuance of common stock in connection with exercise of stock options

Issuance of common stock in connection with employee stock purchase plan

Issuance of restricted stock, net of shares canceled

1 unchanged sentence

Stock-based compensation expense

Balance at March 31, 2024

Balance at June 30, 2024

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6 unchanged sentences

The Company’s consolidated financial statements include the accounts of Adeia Inc.

and our wholly-owned subsidiaries.

and its wholly-owned subsidiaries.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S.

1 unchanged sentence

In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly the financial position of the Company and its results of operations and cash flows as of and for the periods presented.

The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025 or any future period and the Company makes no representations related thereto.

The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2025 or any future period and the Company makes no representations related thereto.

The Company’s fiscal year ends on December 31 and employs a calendar month-end reporting period for its quarterly reporting.

1 unchanged sentence

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

There have been no significant changes in the Company’s significant accounting policies during the three months ended March 31, 2025, as compared to the significant accounting policies described in the Form 10-K.

There have been no significant changes in the Company’s significant accounting policies during the three and six months ended June 30, 2025, as compared to the significant accounting policies described in the Form 10-K.

Use of Estimates

48 unchanged sentences

IP License Arrangements

The Company licenses (i) its media patent portfolio (“Media IP licensing”) to multichannel video programming distributors, over-the-top video service providers, consumer electronics manufacturers, social media, and other new media companies and (ii) its semiconductor technologies and associated patent portfolio (“Semiconductor IP licensing”) to memory, logic, sensors, radio frequency component, and foundry companies.

The Company licenses (i) its media patent portfolio (“Media IP licensing”) to multichannel video programming distributors, over-the-top (“OTT”) video service providers, consumer electronics manufacturers, social media, and other new media companies and (ii) its semiconductor technologies and associated patent portfolio (“Semiconductor IP licensing”) to memory, logic, sensors, radio frequency component, and foundry companies.

The Company generally licenses its IP portfolios under three models:

37 unchanged sentences

Three Months Ended

Six Months Ended

Recurring revenue

4 unchanged sentences

Three Months Ended

Six Months Ended

Semiconductor

6 unchanged sentences

Contract assets were recorded in the Condensed Consolidated Balance Sheets as follows (in thousands):

March 31, 2025

June 30, 2025

December 31, 2024

10 unchanged sentences

It is generally considered to be of high credit quality due to past collection history and the nature of the customers.

The allowance for credit losses at March 31, 2025 and December 31, 2024 wa s $ 0.7 million and is presented as part of accounts receivable, net in the Condensed Consolidated Balance Sheets.

The allowance for credit losses at June 30, 2025 and December 31, 20 24 was $ 0.7 milli on and is presented as part of accounts receivable, net in the Condensed Consolidated Balance Sheets.

Additional Disclosures

1 unchanged sentence

Three Months Ended

Six Months Ended

Revenue recognized in the period from:

1 unchanged sentence

Performance obligations satisfied in previous periods (1)

(1) Performance obligations satisfied in previous periods consist mainly of fees associated with releases for past patent infringement and revenue from past royalties owed pursuant to expired or terminated IP license agreements.

For long-term and multi-year revenue contracts, the Company recorded revenue from the releases for past infringement during the three months ended March 31, 2025 and 2024 and expects to record revenue from the prospective license in future periods.

(1) Performance obligations satisfied in previous periods consist mainly of fees associated with releases for past patent infringement, settlements of litigation during the period, and revenue from past royalties owed pursuant to expired or terminated IP license agreements.

For long-term and multi-year revenue contracts, the Company recorded revenue from the releases for past infringement during the three months and six months ended June 30, 2025 and 2024 and expects to record revenue from the prospective license in future periods.

Remaining revenue under contracts with performance obligations represents the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) under certain of the Company’s fixed fee arrangements (in thousands).

March 31, 2025

June 30, 2025

Revenue from contracts with performance obligations expected to be satisfied in:

2 unchanged sentences

Other current assets consisted of the following (in thousands):

March 31, 2025

June 30, 2025

December 31, 2024

4 unchanged sentences

Property and equipment, net, consisted of the following (in thousands):

March 31, 2025

June 30, 2025

December 31, 2024

5 unchanged sentences

Other long-term assets consisted of the following (in thousands):

March 31, 2025

June 30, 2025

December 31, 2024

2 unchanged sentences

Accrued liabilities consisted of the following (in thousands):

March 31, 2025

June 30, 2025

December 31, 2024

7 unchanged sentences

Other long-term liabilities consisted of the following (in thousands):

March 31, 2025

June 30, 2025

December 31, 2024

6 unchanged sentences

Under ASU 2016-01 (Topic 321), equity securities are measured at fair value with unrealized gains and losses recognized in other income and expense, net, in the Condensed Consolidated Statements of Income.

The following is a summary of marketable securities at March 31, 2025 and December 31, 2024 (in thousands):

March 31, 2025

The following is a summary of marketable securities at June 30, 2025 and December 31, 2024 (in thousands):

June 30, 2025

Allowance for Credit Losses

23 unchanged sentences

Total marketable securities

At March 31, 2025 and December 31, 2024, the Company had $ 116.5 million and $ 110.4 million, respectively, in cash and cash equivalents and marketable securities.

At June 30, 2025 and December 31, 2024, the Company h ad $ 116.5 million and $ 110.4 million, respectively, in cash and cash equivalents and marketable securities.

A portion of these amounts was held in marketable securities, as shown above.

The remaining balances of $ 79.6 million and $ 74.0 million at March 31, 2025 and December 31, 2024, respectively, consisted of cash held in operating accounts not included in the tables above.

The remaining balances of $ 79.2 million and $ 74.0 million at June 30, 2025 and December 31, 2024, respectively, consisted of cash held in operating accounts not included in the tables above.

Debt Securities

The gross realized gains and losses on sales of marketable debt securities were immaterial during the three months ended March 31, 2025 and 2024.

Unrealized losses on AFS debt securities were immaterial as of March 31, 2025 and December 31, 2024.

The gross realized gains and losses on sales of marketable debt securities were immaterial during the three and six months ended June 30, 2025 and 2024.

Unrealized losses on AFS debt securities were immaterial as of June 30, 2025 and December 31, 2024.

The Company evaluated whether the decline in fair value has resulted from credit losses or other factors and concluded these amounts were related to temporary fluctuations in value of AFS securities and were due primarily to changes in interest rates and market conditions of the underlying securities.

The Compan y did no t rec ognize a provision for credit losses related to its AFS debt securities during the three months ended March 31, 2025 and 2024, respectively.

The estimated fair value of marketable debt securities by contractual maturity at March 31, 2025 is shown below (in thousands).

The Compan y did no t rec ognize a provision for credit losses related to its AFS debt securities during the three and six months ended June 30, 2025 and 2024, respectively.

The estimated fair value of marketable debt securities by contractual maturity at June 30, 2025 is shown below (in thousands).

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call or prepayment penalties.

14 unchanged sentences

The Company calculates the fair value of its Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs.

There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2024 and March 31, 2025.

The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of March 31, 2025 (in thousands):

There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2024 and June 30, 2025.

The following sets forth the fair value, and classification within the hierarchy, of the Company’s assets required to be measured at fair value on a recurring basis as of June 30, 2025 (in thousands):

Active Markets

25 unchanged sentences

The carrying amounts and estimated fair values are as follows (in thousands):

March 31, 2025

June 30, 2025

December 31, 2024

Long-term debt, net (1)

(1) Carrying amount s of long-term debt are net of unamortized debt discount and issuance costs of $ 10.8 million and $ 11.6 million as of March 31, 2025 and December 31, 2024, respectively.

(1) Carrying amounts of long-term debt are net of unamortized debt discount and issuance costs of $ 10.0 million and $ 11.6 million as of June 30, 2025 and December 31, 2024, respectively.

See “Note 8 – Debt ” fo r additional information.

2 unchanged sentences

NOTE 7 – GOODWILL AND IDENTIFIED INTANGIBLE ASSETS

The carrying value of goodwill at March 31, 2025 and December 31, 2024 wa s $ 313.7 million.

There were no changes t o the carrying value of goodwill from January 1, through March 31, 2025.

The carrying value of goodwill at June 30, 2025 and December 31, 2024 wa s $ 313.7 million.

There were no changes t o the carrying value of goodwill from January 1, through June 30, 2025.

Goodwill at each reporting unit is evaluated for potential impairment annually, as of the beginning of the fourth quarter, and whenever events or changes in circumstances indicate the carrying amount of goodwill may not be recoverable.

The process of evaluating goodwill for potential impairment is subjective and requires significant estimates, assumptions and judgments particularly related to the identification of reporting units, the assignment of assets and liabilities to reporting units and estimating the fair value of each reporting unit.

No impairment charges were recognized during the three months ended March 31, 2025 and 2024.

No impairment charges were recognized during the three and six months ended June 30, 2025 and 2024.

Identified Intangible Assets

Identified intangible assets consisted of the following (in thousands):

March 31, 2025

June 30, 2025

December 31, 2024

5 unchanged sentences

Total intangible assets

As of March 31, 2025, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands):

As of June 30 , 2025, the estimated future amortization expense of total finite-lived intangible assets was as follows (in thousands):

2025 (remaining 6 months)

1 unchanged sentence

The outstanding amounts of debt were as follows (in thousands):

March 31, 2025

June 30, 2025

December 31, 2024

30 unchanged sentences

The 2020 Credit Agreement, as amended, requires the Company to maintain a total net leverage ratio of no greater than 3.00x in order to access a basket from which to make restricted payments (such as dividend payments and share repurchases).

The Company was in compliance with all requirements under the 2020 Credit Agreement as of March 31, 2025.

The Company was in compliance with all requirements under the 2020 Credit Agreement as of June 30, 2025.

The 2020 Credit Agreement, as amended, also requires the Company to continue to make cash payments on an annual basis based on certain leverage ratios and excess cash flow generated for the immediately preceding fiscal year.

1 unchanged sentence

Interest Expense and Expected Principal Payments

At March 31, 2025 , the Company had $ 470.0 million in total debt outstanding.

At June 30, 2025, the Company had $ 458.9 million in total debt outstanding.

There were also $ 10.0 million of unamortized debt discount and issuance costs recorded as a reduction from the carrying amount of the debt.

The interest rate on the Term Loan B as of March 31, 2025 , including the amortization of debt discount and issuance costs, was 7.9 % and interest is payable monthly.

Interest expense was $ 9.3 million and $ 14.0 million for the three months ended March 31, 2025 and 2024 , respectively.

Amortized debt discount and issuance costs, which were included in interest expense, amounted to $ 0.8 million for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, future minimum principal payments for long-term debt, excluding any additional principal payment required by the excess cash flow provision, are summarized as follows (in thousands):

The interest rate on the Term Loan B as of June 30, 2025, including the amortization of debt discount and issuance costs, was 7.8 % and interest is payable monthly.

Interest expense was $ 8.9 million and $ 18.2 million for the three and six months ended June 30, 2025, respectively.

Interest expense was $ 12.9 million and $ 25.4 million for the three and six months ended June 30, 2024, respectively.

Amortized debt discount and issuance costs, which were included in interest expense, amounted to $ 0.8 million and $ 1.7 million for the three and six months ended June 30, 2025, respectively, and $ 0.9 million and $ 1.6 million for the three and six months ended June 30, 2024, respectively.

As of June 30 , 2025, future minimum principal payments for long-term debt, excluding any additional principal payment required by the excess cash flow provision, are summarized as follows (in thousands):

2025 (remaining 6 months)

2 unchanged sentences

Three Months Ended

Six Months Ended

Weighted average shares of common stock outstanding

16 unchanged sentences

stock awards, restricted stock awards, restricted stock units, performance awards and dividend equivalents) prior to May 9, 2024 are counted against shares available for issuance on a 1.5 to 1 ratio).

As of March 31, 2025, there wer e approximately 5.8 mi llion shares reserved for future grants under the 2020 EIP.

As of June 30, 2025, there wer e approximately 5.0 million shares reserved for future grants under the 2020 EIP.

The 2020 EIP provides for option grants designed as either incentive stock options or non-statutory options.

13 unchanged sentences

Options canceled / forfeited / expired

Balance at March 31, 2025

Vested and exercisable at March 31, 2025

Balance at June 30, 2025

Vested and exercisable at June 30, 2025

Restricted Stock Awards

Information with respect to outstanding restricted stock units (including both time-based vesting and performance-based vesting) as of March 31, 2025 is as follows (in thousands, except per share amounts):

Information with respect to outstanding restricted stock units (including both time-based vesting and performance-based vesting) as of June 30, 2025 is as follows (in thousands, except per share amounts):

Restricted Stock Awards

5 unchanged sentences

Awards canceled / forfeited

Balance at March 31, 2025

Balance at June 30, 2025

Performance Awards

15 unchanged sentences

At the 2022 Annual Stockholders Meeting on April 29, 2022, the Company’s stockholders approved an amendment to the 2020 ESPP and increased by 6.0 million the number of shares reserved for issuance.

As of March 31, 2025, the re were approximately 5.0 million shares reserved for grant under the Company’s 2020 ESPP.

As of June 30, 2025, the re were approximately 4.9 million shares reserved for grant under the Company’s 2020 ESPP.

Stockholders of the Company’s common stock are entitled to receive dividends when declared by the Company’s Board of Directors (the “Board”).

During the periods ended March 31, 2025 and 2024, quarterly dividends declared were $ 0.05 per common share, respectively.

During the periods ended June 30, 2025 and 2024, quarterly dividends declared were $ 0.05 per common share, respectively.

The capacity to pay dividends in the future depends on many factors, including the Company’s financial condition, results of operations, capital requirements, capital structure, industry practice and other business conditions that the Board considers relevant.

1 unchanged sentence

In October 2024, the Company’s Board approved an increase of the existing share repurchase authorization up to a total of $ 200.0 million.

During the three months ended March 31, 2025, the Company repurchased a total of approximately 0.8 million shares of common stock, at an average price of $ 13.19 per share for a total cost of $ 10.0 million.

The Company did no t repurchase any shares during the three months ended March 31, 2024.

As of March 31, 2025, the total remaining amount available for repurchase under this plan was $ 170.0 million.

During the six months ended June 30, 2025, the Company repurchased a total of approximately 0.8 million shares of common stock, at an average price of $ 13.19 per share for a total cost of $ 10.0 million.

These purchases occurred during the three months ended March 31, 2025 and no repurchases were made during the three months ended June 30, 2025.

The Company did no t repurchase any shares during the six months ended June 30, 2024.

As of June 30, 2025, the total remaining amount available for repurchase under this plan was $ 170.0 million.

The shares repurchased are recorded as treasury stock and are accounted for under the cost method.

8 unchanged sentences

NOTE 11 – STOCK-BASED COMPENSATION EXPENSE

The effect of recording stock-based compensation (“SBC”) expense for the three months ended March 31, 2025 and 2024 is as follows (in thousands):

The effect of recording stock-based compensation (“SBC”) expense for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands):

Three Months Ended

Six Months Ended

Research and development

1 unchanged sentence

Total stock-based compensation expense

There were no options granted during the three months ended March 31, 2025 and 2024.

The Company uses a Monte Carlo simulation to determine the grant date fair value of performance stock awards subject to market conditions, or market-based PSUs.

There were no market-based PSUs granted during the three months ended March 31, 2024.

For the market-based PSUs granted during the three months ended March 31, 2025, the grant date fair value was estimated using a Monte Carlo simulation and the following assumptions:

Three Months Ended

March 31, 2025

The following assumptions were used to value the restricted stock units subject to market conditions granted during the six months ended June 30, 2025 and 2024:

Expected life (years)

3 unchanged sentences

Grants under the 2020 ESPP occur in June and December, as discussed in “Note 10 – Stockholders’ Equity ”.

There were no ESPP grants during the three months ended March 31, 2025 and 2024.

The following assumptions were used to value the shares for these grants.

Expected life (years)

Risk-free interest rate

Dividend yield

Expected volatility

NOTE 12 – INCOME TAXES

The Company’s income tax provision and effective tax rate for interim periods are based on its estimated annual effective tax rate adjusted for discrete items during the period.

For the three months ended March 31, 2025 and 2024, the Company recorded income tax expense of $ 2.1 million and $ 5.7 million, respectively.

For the three and six months ended June 30, 2025, the Company recorded income tax benefits of $ 9.1 million and $ 7.0 million, respectively.

For the three and six months ended June 30, 2024, the Company recorded income tax expense of $ 2.9 million and $ 8.6 million, respectively.

The effective tax rate varies from the 21 % U.S.

federal tax rate primarily due to stock-based compensation windfall and unrealized benefits associated with South Korea withholding tax refund claims.

The decrease in income tax expense for the three months ended March 31, 2025, as compared to the same period in the prior year was primarily due to stock-based compensation windfall and unrealized benefits associated with South Korea withholding tax refund claims.

federal tax rate primarily due to unrealized benefits associated with South Korea withholding tax refund claims.

The decrease in income tax expense for the three and six months ended June 30, 2025, as compared to the same periods in the prior year was primarily due to unrealized benefits associated with South Korea withholding tax refund claims.

NOTE 13 – LEASES

1 unchanged sentence

The Company’s leases have remaining lease terms of less than three years to eight years , some of which may include options to extend the leases for five years or longer, and some of which may include options to terminate the leases within the next five years or less.

Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets;

Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets;

expense for these leases is recognized on a straight-line basis over the lease term.

4 unchanged sentences

Three Months Ended

Six Months Ended

Fixed lease cost

3 unchanged sentences

Three Months Ended

Six Months Ended

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

March 31, 2025

June 30, 2025

December 31, 2024

3 unchanged sentences

Operating leases

Future minimum lease payments and related lease liabilities as of March 31, 2025 were as follows (in thousands):

Future minimum lease payments and related lease liabilities as of June 30, 2025 were as follows (in thousands):

Operating Lease Payments (1)

11 unchanged sentences

These arrangements primarily include unconditional purchase obligations to service providers.

As of March 31, 2025 , the Company’s total future unconditional purchase obligations were approximately $ 4.9 million, including $ 2.4 million due in the remainder of 2025, $ 1.3 million due in 2026 and $ 1.2 million due thereafter.

As of June 30, 2025, the Company’s total future unconditional purchase obligations were approximately $ 4.8 million, including $ 1.9 million due in the remainder of 2025, $ 1.5 million due in 2026 and $ 1.4 million due thereafter.

Prior to the Separation, Adeia Media LLC, a subsidiary of the Company (“Adeia Media”), and a subsidiary of Xperi Inc.

(“Xperi Sub”) entered into an agreement (the “Specified Agreement”) with a third party pursuant to which Adeia Media guarantees the performance of Xperi Sub under the Specified Agreement, including its payment obligations to such third party.

In connection with the Separation, Adeia Media and Xperi Sub entered into a separate cross business agreement (the “Cross Business Agreement”) effective as of October 1, 2022, under which Adeia Media agreed to make guarantee payments to Xperi Sub in amounts based on certain of its operating expenses and other minimum performance obligations under the Specified Agreement through 2031.

Consequently, on October 1, 2022, the Company recognized a guarantee liability pursuant to ASC 460 “Guarantees” of $ 19.7 million, which represents the fair value of Adeia Media’s projected payments of such operating expenses during the term of the Cross Business Agreement.

Subsequent changes to the carrying value of the guarantee are recognized as part of the Company’s results of operations.

The maximum potential amount of future payments subject to the guarantee is approximately $ 7.5 million per annum between 2025 and 2031 .

As of March 31, 2025 and December 31, 2024, the balance of the guarantee liability wa s $ 17.1 m illion.

As of June 30 , 2025 and December 31, 2024, the balance of the guarantee liability wa s $ 17.1 m illion.

Operating expense reimbursements are capped at a maximum of $ 7.5 million per annum.

To date, such reimbursements have not been material.

Indemnifications

30 unchanged sentences

The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the IP Licensing segment or into other parts of the entity, such as for acquisitions or to return value to stockholders.

The following table presents information with respect to the Company’s IP Licensing segment revenue, significant expenses and income:

The following table presents information with respect to the Company’s IP Licensing segment revenue, significant expenses and income (in thousands):

Three Months Ended

Six Months Ended

Personnel related expense

12 unchanged sentences

Revenue is attributed to geographic locations based on the billing address of each customer.

The table below lists the revenue by geography for the periods indicated (in thousands):

The table below lists the revenue by geography for the periods indicated (in thousands, except for percentages):

Three Months Ended

Six Months Ended

Europe and Middle East

For the three months ended March 31, 2025 and 2024, there wer e two an d three customers, respectively, that each accounted for 10% or more of total revenue.

For the three and six months ended June 30, 2025 and 2024, there were two custo mers that each accounted for 10% or more of total revenue.

The following table sets forth revenue generated from customers which comprise 10% or more of total revenue for the periods indicated:

Three Months Ended

* denotes less than 10% of total revenue.

At March 31, 2025, the Company had one customer repre senting 63 % of aggr egate accounts receivable.

Six Months Ended

At June 30, 2025, the Company had one customer repres enting 63 % of aggr egate accounts receivable.

At December 31, 2024, the Company had two customers representing 52 % and 11 % of aggregate accounts receivable, respectively.

Other Geography Information

At March 31, 2025 and December 31, 2024, property and equipment, net, was all located in the U.S.

At June 30, 2025 and December 31, 2024, property and equipment, net, was all located in the U.S.

NOTE 16 – SUBSEQUENT EVENTS

Declaration of Cash Dividends

On May 1, 2025 , the Board declared a cash dividend of $ 0.05 per share of common stock, payable on June 17, 2025 to the stockholders of record at the close of business on May 27, 2025 .

On July 24, 2025 , the Board declared a cash dividend of $ 0.05 per share of common stock, payable on September 16, 2025 to the stockholders of record at the close of business on August 26, 2025 .

Tax Legislation

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law in the U.S.

which, among other changes, makes permanent certain tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025.

The OBBBA makes changes to certain U.S.

corporate tax provisions, some of which are not effective until 2026 or later.

The Company is currently evaluating its impact on the consolidated financial statements.

As the legislation was signed into law after the close of the second quarter, the impacts will be included in the third quarter financial statements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements