ADMA BIOLOGICS, INC. 10-Q

Item 1. Financial Statements. ADMA BIOLOGICS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2025 2024 (Unaudited) (In thousands, except share data) ASSETS Current assets: Cash and cash equivalents $ 90,285 $ 103,147 Accounts receivable, net 109,726 49,999 Inventories, net 191,464 170,235 Prepaid expenses and other current assets 8,088 8,029 Total current assets 399,563 331,410 Property and equipment, net 57,501 54,707 Intangible assets, net 527 460 Goodwill 3,530 3,530 Deferred tax assets, net 79,235 84,280 Right-to-use assets 8,961 8,634 Deposits and other assets 9,063 5,657 TOTAL ASSETS $ 558,380 $ 488,678 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 29,769 $ 20,219 Accrued expenses and other current liabilities 43,902 33,962 Current portion of deferred revenue 143 143 Current portion of lease obligations 1,127 1,218 Total current liabilities 74,941 55,542 Senior notes payable, net of discount 73,397 72,337 Deferred revenue, net of current portion 1,476 1,547 End of term fee 938 1,313 Lease obligations, net of current portion 9,301 8,561 Other non-current liabilities 2 360 TOTAL LIABILITIES 160,055 139,660 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred Stock, $ 0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding - - Common Stock - voting, $ 0.0001 par value, 300,000,000 shares authorized, June 30, 2025: 239,383,545 issued and 238,567,308 outstanding; December 31, 2024: 236,620,545 issued and outstanding 24 24 Treasury stock, at cost, 816,237 and 0 shares as of June 30, 2025 and December 31, 2024, respectively ( 15,148 ) - Additional paid-in capital 660,909 657,577 Accumulated deficit ( 247,460 ) ( 308,583 ) TOTAL STOCKHOLDERS' EQUITY 398,325 349,018 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 558,380 $ 488,678 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months ended June 30, Six Months ended June 30, 2025 2024 2025 2024 (In thousands, except share and per share data) REVENUES $ 121,984 $ 107,191 $ 236,786 $ 189,066 Cost of product revenue 54,757 49,738 108,463 92,505 Gross profit 67,227 57,453 128,323 96,561 OPERATING EXPENSES: Research and development 1,031 560 1,858 1,010 Plasma center operating expenses 1,152 942 2,438 1,947 Amortization of intangible assets 32 142 57 335 Selling, general and administrative 22,214 16,608 46,292 32,247 Total operating expenses 24,429 18,252 50,645 35,539 INCOME FROM OPERATIONS 42,798 39,201 77,678 61,022 OTHER INCOME (EXPENSE): Interest income 400 449 1,008 833 Interest expense ( 1,834 ) ( 3,783 ) ( 3,809 ) ( 7,552 ) Loss on extinguishment of debt ( 1,159 ) - ( 1,159 ) - Other expense ( 108 ) ( 16 ) ( 172 ) ( 51 ) Other expense, net ( 2,701 ) ( 3,350 ) ( 4,132 ) ( 6,770 ) INCOME BEFORE INCOME TAXES 40,097 35,851 73,546 54,252 Provision for income taxes 5,878 3,789 12,424 4,384 NET INCOME $ 34,219 $ 32,062 $ 61,122 $ 49,868 BASIC EARNINGS PER COMMON SHARE $ 0.14 $ 0.14 $ 0.26 $ 0.22 DILUTED EARNINGS PER COMMON SHARE $ 0.14 $ 0.13 $ 0.25 $ 0.21 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 241,490,715 232,417,645 238,309,156 230,646,246 Diluted 248,608,460 242,167,072 245,750,155 239,645,940 The accompanying notes are an integral part of these condensed consolidated financial statements . 2 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) (In thousands, except share data) For the Three and Six Months Ended June 30, 2025 Additional Total Common Stock Paid-in Accumulated Treasury Stockholders' Shares Amount Capital Deficit Stock Equity Balance at December 31, 2024 236,620,545 $ 24 $ 657,577 $ ( 308,583 ) $ - $ 349,018 Stock-based compensation - - 4,624 - - 4,624 Cashless exercise of warrants 866,302 - - - - - Vesting of Restricted Stock Units, net of shares withheld for taxes 1,016,005 - ( 7,228 ) - - ( 7,228 ) Exercise of stock options 29,400 - 101 - - 101 Net income - - - 26,904 - 26,904 Balance at March 31, 2025 238,532,252 24 655,074 ( 281,679 ) - 373,419 Stock-based compensation - - 4,963 - - 4,963 Cashless exercise of warrants - - - - - - Vesting of Restricted Stock Units, net of shares withheld for taxes 105,543 - ( 1,192 ) - - ( 1,192 ) Exercise of stock options 745,750 - 2,064 - - 2,064 Acquisition of treasury stock - - - - ( 15,148 ) ( 15,148 ) Net income - - - 34,219 - 34,219 Balance at June 30, 2025 239,383,545 $ 24 $ 660,909 $ ( 247,460 ) $ ( 15,148 ) $ 398,325 For the Three and Six Months Ended June 30, 2024 Additional Total Common Stock Paid-in Accumulated Treasury Stockholders' Shares Amount Capital Deficit Stock Equity Balance at December 31, 2023 226,063,032 $ 23 $ 641,439 $ ( 506,256 ) $ - $ 135,206 Stock-based compensation - - 2,141 - - 2,141 Cashless exercise of warrants 4,545,503 - - - - - Vesting of Restricted Stock Units, net of shares withheld for taxes 774,889 - ( 2,476 ) - - ( 2,476 ) Exercise of stock options 386,341 - 1,029 - - 1,029 Net income - - - 17,806 - 17,806 Balance at March 31, 2024 231,769,765 23 642,133 ( 488,450 ) - 153,706 Stock-based compensation - - 2,863 - - 2,863 Cashless exercise of warrants 937,507 - - - - - Vesting of Restricted Stock Units, net of shares withheld for taxes 171,408 - ( 693 ) - - ( 693 ) Exercise of stock options 148,056 - 331 - - 331 Net income - - - 32,062 - 32,062 Balance at June 30, 2024 233,026,736 $ 23 $ 644,634 $ ( 456,388 ) $ - $ 188,269 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, 2025 2024 (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 61,122 $ 49,868 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,027 4,161 Loss on disposal of fixed assets - 24 Deferred income tax provision 5,045 - Stock-based compensation 9,587 5,004 Amortization of debt discount 350 480 Loss on extinguishment of debt 1,159 - Amortization of license revenue ( 71 ) ( 71 ) Changes in operating assets and liabilities: Accounts receivable ( 59,726 ) ( 2,692 ) Inventories ( 21,229 ) ( 6,904 ) Prepaid expenses and other current assets ( 2,095 ) ( 190 ) Deposits and other assets ( 306 ) ( 68 ) Accounts payable 9,409 ( 1,410 ) Accrued expenses ( 5,206 ) ( 5,193 ) Other current and non-current liabilities ( 602 ) 419 Net cash provided by operating activities 1,464 43,428 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment ( 7,123 ) ( 4,413 ) Acquisition of intangible assets ( 124 ) ( 314 ) Net cash used in investing activities ( 7,247 ) ( 4,727 ) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on term loan ( 30,000 ) - Proceeds from issuance on revolver 30,000 - Prepayment penalties on repayment of debt ( 450 ) - Taxes paid on vested restricted stock units ( 8,419 ) ( 3,169 ) Net proceeds from the exercise of stock options 2,165 1,360 Payment of end of term fee ( 375 ) - Net cash used in financing activities ( 7,079 ) ( 1,809 ) Net (decrease) increase in cash and cash equivalents ( 12,862 ) 36,892 Cash and cash equivalents - beginning of period 103,147 51,352 Cash and cash equivalents - end of period $ 90,285 $ 88,244 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. ORGANIZATION AND BUSINESS ADMA Biologics, Inc. (“ADMA” or the “Company”) is a U.S. based, end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty biologics for the treatment of immunodeficient patients at risk for infection and others at risk for certain infectious diseases. The Company’s targeted patient populations include immune-compromised individuals who suffer from an underlying immune deficiency disorder or who may be immune-suppressed for medical reasons. ADMA operates through its wholly owned subsidiaries ADMA BioManufacturing, LLC (“ADMA BioManufacturing”) and ADMA BioCenters Georgia Inc. (“ADMA BioCenters”). ADMA BioManufacturing was formed in January 2017 to facilitate the acquisition of certain assets held by the Company’s former third-party contract manufacturer, which included the U.S. Food and Drug Administration (“FDA”)-licensed BIVIGAM and Nabi-HB immunoglobulin products, and an FDA-licensed plasma fractionation manufacturing facility located in Boca Raton, FL (the “Boca Facility”). ADMA BioCenters is the Company’s source plasma collection business with ten plasma collection facilities located throughout the United States, all of which hold an approved license with the FDA. The Company has three FDA-approved products, all of which are currently marketed and commercially available: (i) ASCENIV (Immune Globulin Intravenous, Human – slra 10% Liquid), an intravenous immune globulin (“IVIG”) product indicated for the treatment of Primary Humoral Immunodeficiency (“PI”), also known as Primary Immunodeficiency Disease (“PIDD”) or Inborn Errors of Immunity, for which the Company received FDA approval in April 2019 and commenced first commercial sales in October 2019; (ii) BIVIGAM (Immune Globulin Intravenous, Human), an IVIG product indicated for the treatment of PI, and for which the Company received FDA approval in May 2019 and commenced commercial sales in August 2019; and (iii) Nabi-HB (Hepatitis B Immune Globulin, Human), which is indicated for the treatment of acute exposure to blood containing Hepatitis B surface antigen (“HBsAg”) and other listed exposures to Hepatitis B. In addition to its commercially available immunoglobulin products, the Company generates revenues from the sale of intermediates that result from the immunoglobulin production process and from time to time provides contract manufacturing and laboratory services for certain clients. The Company seeks to develop a pipeline of plasma-derived therapeutics, and its products and product candidates are intended to be used by physician specialists focused on caring for immune-compromised patients with or at risk for certain infectious diseases. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation and basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (the “FASB”). The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the annual audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2024 included in the 2024 10-K. All intercompany balances and transactions have been eliminated in consolidation. The preparation of our interim consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. We have made reasonable estimates and judgments of such items within our financial statements and there may be changes to those estimates in future periods. During the three and six months ended June 30, 2025 and 2024, comprehensive income was equal to the net income amounts presented for the respective periods in the accompanying condensed consolidated statements of operations. Results for interim periods are not necessarily indicative of the results that may be expected for the full fiscal year. 5 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include rebates deducted from gross revenues and estimates related to the Company’s effective tax rate. Accounts Receivable Accounts receivable is reported at realizable value, net of allowances for customer credits and credit losses in the amount of $ 0.2 million at June 30, 2025 and December 31, 2024. The Company extends credit to its customers based upon an evaluation of each customer’s financial condition and credit history. Evaluations of the financial condition, payment history and associated credit risk of customers are performed on an ongoing basis. Based on these evaluations, the Company has concluded that its credit risk is minimal. At June 30, 2025 and December 31, 2024, three customers accounted for an aggregate of approximately 95 % and 91 %, respectively, of the Company’s total accounts receivable. Inventories Raw materials inventory consists of various materials purchased from suppliers, including normal source plasma and Respiratory Syncytial Virus (“RSV”) high titer plasma, used in the production of the Company’s products. Work-in-process and finished goods inventories (see Note 3) reflect the cost of raw materials as well as costs for direct and indirect labor, primarily salaries, wages and benefits for applicable employees, as well as an allocation of overhead costs related to the Boca Facility including utilities, property taxes, general repairs and maintenance, consumable supplies and depreciation. The Boca Facility overhead allocation to inventory is generally based upon the estimated square footage of the Boca Facility that is used in the production of the Company’s FDA-approved products relative to the total square footage of the facility. Inventories, including plasma intended for resale and plasma intended for internal use in the Company’s manufacturing, commercialization or research and development activities, are carried at the lower of cost or net realizable value determined by the first-in, first-out method. Net realizable value is generally determined based upon the consideration the Company expects to receive when the inventory is sold, less costs to deliver the inventory to the recipient. The estimates for net realizable value of inventory are based on contractual terms or upon historical experience and certain other assumptions, and the Company believes that such assumptions are reasonable. Inventory is periodically reviewed to ensure that its carrying value does not exceed its net realizable value, and adjustments are recorded to write down such inventory, with a corresponding charge to cost of product revenue, when the carrying value or historical cost exceeds its estimated net realizable value. Goodwill Goodwill represents the excess of purchase price over the fair value of net assets acquired by the Company. Goodwill at June 30, 2025 and December 31, 2024 was $ 3.5 million. All of the Company’s goodwill is attributable to its ADMA BioManufacturing business segment. The Company did no t record any impairment charges related to goodwill for the three and six months ended June 30, 2025 and 2024. Revenue Recognition Revenues are comprised of (i) revenues from the sale of the Company’s immunoglobulin products, ASCENIV, BIVIGAM and Nabi-HB, (ii) product revenues from the sale of human plasma collected through the Company’s Plasma Collection Centers business segment, (iii) contract manufacturing and laboratory services revenue, (iv) revenues from the sale of intermediates; and (v) license and other revenues primarily attributable to the out-licensing of ASCENIV to Biotest AG (“Biotest”) in 2012 to market and sell this product in Europe and selected countries in North Africa and the Middle East. Biotest has provided the Company with certain services and financial payments in accordance with the related Biotest license agreement and is obligated to pay the Company certain amounts in the future if certain milestones are achieved. Deferred revenue is amortized into income over the term of the Biotest license, representing a period of approximately 21 years. 6 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Product revenue is recognized when the customer is deemed to have control over the product. Control is determined based on when the product is shipped or delivered, depending on the sales terms, and title passes to the customer. Revenue is recorded in an amount that reflects the consideration the Company expects to receive in exchange. Revenue from the sale of the Company’s immunoglobulin products is recognized when the product reaches the customer’s destination, and is recorded net of estimated rebates, wholesaler distribution and related fees, customer incentives, including prompt pay discounts, wholesaler chargebacks, group purchasing organization fees and reimbursements for patient assistance. These estimates are based on historical experience and certain other assumptions, and while the Company believes that such estimates are reasonable, they are subject to change based on future experience and other factors. For revenues associated with contract manufacturing and the sale of intermediates, control transfers to the customer and the performance obligation is satisfied when the customer takes possession of the product from the Boca Facility or from a third-party warehouse that is utilized by the Company. Product revenues from the sale of human plasma collected at the Company’s plasma collection centers are recognized at the time control of the product has been transferred to the customer, which generally occurs at the time of shipment. Product revenues are recognized at the time of delivery if the Company retains control of the product during shipment. For the three and six months ended June 30, 2025, three customers represented an aggregate of approximately 88 % and 81 %, respectively, of the Company’s consolidated revenues. For the three and six months ended June 30, 2024, two customers represented an aggregate of approximately 71 % of the Company’s consolidated revenues. Cost of Product Revenue Cost of product revenue includes costs associated with the manufacturing of the Company’s FDA-approved products, intermediates and the collection of human source plasma, depreciation of the production equipment, as well as expenses related to conformance batch production, process development and scientific and technical operations when these operations are attributable to marketed products. When the activities of these operations are attributable to new products or processes in development, the expenses are classified as research and development expenses. Earnings/loss Per Common Share For the three and six months ended June 30, 2025 and 2024, basic and diluted earnings per share are calculated as follows: Three Months ended June 30, Six Months ended June 30, 2025 2024 2025 2024 Net income available to common stockholders ($000's) (numerator) $ 34,219 $ 32,062 $ 61,122 $ 49,868 Weighted-average number of common shares (denominator) 241,490,715 232,417,645 238,309,156 230,646,246 Basic earnings per common share $ 0.14 $ 0.14 $ 0.26 $ 0.22 Weighted-average number of common shares 241,490,715 232,417,645 238,309,156 230,646,246 Potential shares of common stock arising from outstanding stock options 3,760,947 3,716,289 4,036,608 3,158,952 Potential shares of common stock arising from outstanding warrants - 2,803,564 28,671 3,975,656 Potential shares of common stock arising from outstanding RSUs 3,356,798 3,229,574 3,375,720 1,865,086 Total shares - diluted (denominator) 248,608,460 242,167,072 245,750,155 239,645,940 Diluted earnings per common share $ 0.14 $ 0.13 $ 0.25 $ 0.21 For the three and six months ended June 30, 2025 and 2024, there were no shares with an anti-dilutive effect that needed to be excluded from the earnings per share computation. 7 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This Update requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid and became effective for public business entities for fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact that this Update may have on the Company’s consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40). The amendments in this Update require disclosure, in the notes to the financial statements, of specified information about certain costs and expenses, including but not limited to, purchases of inventory, employee compensation and selling expense. This Update becomes effective for fiscal years beginning after December 15, 2026. The Company is currently evaluating the impact that this Update may have on the Company’s consolidated financial statements. 3. INVENTORIES The following table provides the components of inventories: June 30, 2025 December 31, 2024 (In thousands) Raw materials $ 100,373 $ 60,473 Work-in-process 43,173 61,641 Finished goods 47,918 48,121 Total inventories, net $ 191,464 $ 170,235 Raw materials includes plasma and other materials expected to be used in the production of ASCENIV, BIVIGAM and Nabi-HB. These materials will be consumed in the production of goods expected to be available for sale or otherwise have alternative uses that provide a probable future benefit. Work-in-process inventory primarily consists of bulk drug substance and unlabeled filled vials of the Company’s immunoglobulin products. Finished goods inventory is comprised of immunoglobulin product inventory and related intermediates that are available for commercial sale, as well as plasma collected at the Company’s plasma collection centers that is expected to be sold to third-party customers. 4. PROPERTY AND EQUIPMENT Property and equipment and related accumulated depreciation are summarized as follows: June 30, 2025 December 31, 2024 (In thousands) Manufacturing and laboratory equipment $ 27,348 $ 21,305 Office equipment and computer software 6,414 5,772 Furniture and fixtures 6,205 5,840 Construction in process 4,096 8,149 Leasehold improvements 21,138 21,066 Land 4,339 4,339 Buildings and building improvements 25,483 21,788 95,023 88,259 Less: Accumulated depreciation ( 37,522 ) ( 33,552 ) Total property and equipment, net $ 57,501 $ 54,707 8 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The Company recorded depreciation expense on property and equipment for the three and six months ended June 30, 2025 of $ 2.0 million and $ 4.0 million, respectively, and $ 1.9 million and $ 3.8 million for the three and six months ended June 30, 2024, respectively. 5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities at June 30, 2025 and December 31, 2024 are as follows: June 30, 2025 December 31, 2024 (In thousands) Accrued rebates $ 4,173 $ 4,155 Accrued distribution fees 11,389 11,565 Accrued incentives 3,065 5,892 Accrued interest 1,269 2,857 Accrued testing 389 827 Accrued payroll and other compensation 3,426 3,332 Income taxes payable 2,700 3,481 Other 17,491 1,853 Total accrued expenses and other current liabilities $ 43,902 $ 33,962 As of June 30, 2025, Other accrued expenses include liability of $ 15.1 million related to share repurchases ( none as of December 31, 2024), further discussed in Note 7. 6. DEBT A summary of outstanding senior notes payable is as follows: June 30, 2025 December 31, 2024 (In thousands) Term loan $ 2,500 $ 32,500 Revolving credit facility 72,500 42,500 Less: Debt discount ( 1,603 ) ( 2,663 ) Senior notes payable $ 73,397 $ 72,337 On December 18, 2023 (the “Ares Closing Date”), the Company and all of its subsidiaries entered into a new senior secured credit facility (the “Ares Credit Agreement”) with Ares Capital Corporation and certain credit funds affiliated with Ares Capital Corporation (collectively, “Ares”). The Ares Credit Agreement provided for a total of $ 135.0 million in senior secured credit facilities (the “Ares Credit Facility”) consisting of (i) a term loan in the aggregate principal amount of $ 62.5 million and (ii) a revolving credit facility in the aggregate principal amount of $ 72.5 million (collectively, the “Ares Loans”), both of which were fully drawn on the Ares Closing Date. The Ares Credit Facility has a maturity date of December 20, 2027 (the “Ares Maturity Date”). Borrowings under the term loan bear interest at the adjusted Term SOFR for a three‑month tenor in effect on the day that is two business days prior to the first day of the applicable calendar quarter plus 6.50 % (the “Initial SOFR Term Loan Applicable Margin”). Borrowings under the revolving facility bear interest at the adjusted Term SOFR for a three‑month tenor in effect on the day that is two business days prior to the first day of the applicable calendar quarter plus 3.75 % (the “SOFR Revolving Facility Applicable Margin”). As of June 30, 2025 and December 31, 2024, the interest rate on the term loan was approximately 10.81 % and 10.85 %, respectively, and the interest rate on the revolving facility was approximately 8.05 % and 8.34 %, respectively. 9 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) On the Ares Maturity Date, the Company is required to pay Ares the entire outstanding principal amount underlying the Ares term loan and revolving loan (together, the “Ares Loans”) and any accrued and unpaid interest thereon. Prior to the Ares Maturity Date, there are no scheduled principal payments on the Ares Loans. After giving effect to the principal payments made during the year ended December 31, 2024 and six months ended June 30, 2025, the Company is required to make quarterly interest payments to Ares of approximately $ 1.6 million. The Company may prepay the outstanding principal under the revolving facility, together with any accrued but unpaid interest on the prepaid principal amount, at any time and from time to time upon three business days ’ prior written notice with no prepayment premium. However, in the event the Company pays down an aggregate amount under the revolving facility that is greater than 50 % of the $ 72.5 million commitment amount, or $ 36,250,000 , the Company will still be required to pay an amount of interest on the revolving facility that would have been payable had $ 36,250,000 been outstanding, through the Ares Maturity Date. The Company may prepay the outstanding principal on the term loan, together with any accrued but unpaid interest on the prepaid principal amount, at any time and from time to time upon three business days ’ prior written notice, subject to the payment to Ares of a prepayment premium equal to (i) 1.5 % of the prepaid principal amount, if prepaid after the first anniversary of the Ares Closing Date and on or prior to the second anniversary of the Ares Closing Date or (ii) 1.0 % of the prepaid principal amount, if prepaid on or prior to the third anniversary of the Ares Closing Date. In May 2025, the Company repaid $ 30.0 million against the term loan using a draw of $ 30.0 million against the revolving credit facility made in May 2025, as a result of which, the Company recorded debt extinguishment losses of $ 1.2 million during the three and six months ended June 30, 2025. All of the Company’s obligations under the Ares Credit Agreement are secured by a first-priority lien and security interest in substantially all of the Company’s tangible and intangible assets, including intellectual property and all of the equity interests in the Company’s subsidiaries. The Ares Credit Agreement contains certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar debt financings. The negative covenants include certain financial covenants, including maximum total leverage ratios and a $ 15.0 million minimum liquidity covenant, and also restrict or limit the Company’s ability and the ability of the Company’s subsidiaries to, among other things and subject to certain exceptions contained in the Ares Credit Agreement, incur new indebtedness; create liens on assets; engage in certain fundamental corporate changes, such as mergers or acquisitions, or changes to the Company’s or the Company’s subsidiaries’ business activities; make certain Investments or Restricted Payments (each as defined in the Ares Credit Agreement); engage in certain affiliate transactions; or enter into, amend or terminate any other agreements that have the impact of restricting the Company’s ability to make loan repayments under the Ares Credit Agreement. As of June 30, 2025, the Company was in compliance with all of the covenants contained in the Ares Credit Agreement. Events of Default on the Ares Loans include, among others, non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments, cross-defaults to material contracts and events constituting a change of control. If there is an event of default, the Company will incur an increase in the rate of interest on the Ares Loans of 2 % per annum. 7. STOCKHOLDERS’ EQUITY Treasury Stock In May 2025, the Company’s board of directors (the “Board”) authorized a share repurchase program of up to $ 500.0 million of the Company’s outstanding shares of common stock (the “Repurchase Program”). The Repurchase Program does not obligate the Company to acquire any particular amount of its common stock, and may be modified, suspended, or terminated at any time at the Company’s discretion. The Repurchase Program has no expiration date. A summary of common stock repurchase activity under the Repurchase Program is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2025 2024 2025 2024 Shares repurchased 816 n/a 816 n/a Total cost of shares repurchased $ 15,148 n/a $ 15,148 n/a The repurchased shares are included in treasury stock in our condensed consolidated balance sheet. 10 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Preferred Stock The Company is currently authorized to issue up to 10 million shares of preferred stock, $ 0.0001 , par value per share. There were no shares of preferred stock outstanding at June 30, 2025 and December 31, 2024. Common Stock As of June 30, 2025 and December 31, 2024, the Company was authorized to issue 300,000,000 shares of its common stock, $ 0.0001 par value per share, and 238,567,308 and 236,620,545 shares of common stock were outstanding as of June 30, 2025 and December 31, 2024, respectively. After giving effect to shares reserved for the issuance of warrants and for awards issued under the Company’s equity incentive plans, 37.5 million shares of common stock were available for issuance as of June 30, 2025. Warrants On January 7, 2025, affiliates of a former noteholder of the Company exercised warrants to purchase an aggregate of 966,554 shares of common stock on a cashless basis, and the Company issued 866,302 shares of common stock to these entities. On January 10, 2024, a former noteholder of the Company exercised a warrant to purchase 4 million shares of the Company’s common stock on a cashless basis and the Company issued 1,977,514 shares of common stock to this noteholder. On March 8, 2024, affiliates of a former noteholder exercised warrants to purchase an aggregate of 3,388,681 shares of the Company’s common stock on a cashless basis and the Company issued 2,482,205 shares of common stock to such noteholders. On March 14, 2024, an entity associated with another former noteholder of the Company exercised a warrant to purchase 169,651 shares of the Company’s common stock on a cashless basis and the Company issued 85,784 shares of common stock to this entity. On February 24, 2024, a warrant to purchase 34,800 shares of the Company’s common stock held by a former noteholder of the Company expired in accordance with its terms. At June 30, 2024 and December 31, 2023, the Company had outstanding warrants to purchase an aggregate of 3,122,350 and 12,502,906 shares, respectively, of common stock, with weighted-average exercise prices of $ 2.08 and $ 2.32 per share, respectively, with expiration dates ranging between October 2024 and May 2030. There were no outstanding warrants as of June 30, 2025 and outstanding warrants to purchase 966,554 shares of common stock as of December 31, 2024. Equity Incentive Plans The fair value of stock options granted under the Company’s equity incentive plans was determined on the date of grant using the Black-Scholes option valuation model. The Black-Scholes model was developed for use in estimating the fair value of publicly traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of certain subjective assumptions including the expected stock price volatility. The stock options granted to employees and directors have characteristics significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the fair value estimate. The following assumptions were used to determine the fair value of options granted during the six months ended June 30, 2025 and 2024: Six Months Ended June 30, 2025 2024 Expected term 5.5 - 6.3 years 5.5 - 6.3 years Volatility 66 % 66 % Dividend yield 0.0 0.0 Risk-free interest rate 4.40 % 4.29 - 4.34 % A summary of the Company’s option activity under the Company’s equity incentive plans and related information is as follows: 11 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Shares Weighted- Average Exercise Price Options outstanding, vested and expected to vest at December 31, 2024 5,141,516 $ 3.90 Forfeited ( 203,985 ) $ 3.20 Expired ( 2,164 ) $ 2.34 Granted 683,720 $ 16.10 Exercised ( 802,544 ) $ 3.60 Options outstanding, vested and expected to vest at June 30, 2025 4,816,543 $ 5.80 Options exercisable 2,627,230 $ 3.50 As of June 30, 2025, the Company had $ 11.1 million of unrecognized compensation expense related to options granted under the Company’s equity incentive plans, which is expected to be recognized over a weighted-average period of 2.9 years. The Company’s RSUs generally vest annually over a period of four years for employees and semi-annually over a period of one year for directors. A summary of the Company’s unvested RSU activity and related information is as follows: Shares Weighted- Average Grant Date Fair Value Balance at December 31, 2024 5,745,990 $ 5.50 Granted 1,775,774 $ 16.30 Vested ( 1,620,430 ) $ 4.25 Forfeited ( 403,492 ) $ 7.53 Balance at June 30, 2025 5,497,842 $ 9.20 As of June 30, 2025, the Company had $ 44.4 million of unrecognized compensation expense related to unvested RSUs granted under the Company’s equity incentive plans, which is expected to be recognized over a weighted-average period of 3.2 years. Total stock-based compensation expense for all awards granted under the Company’s equity incentive plans for the three and six months ended June 30, 2025 and 2024 was as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2025 2024 2025 2024 Research and development $ 51 $ 24 $ 90 $ 41 Plasma center operating expenses 101 48 178 87 Selling, general and administrative 3,955 2,405 7,828 4,246 Cost of product revenue 856 386 1,491 630 Total stock-based compensation expense $ 4,963 $ 2,863 $ 9,587 $ 5,004 8. RELATED PARTY TRANSACTIONS The Company leases an office building and equipment from Areth, LLC (“Areth”) pursuant to an agreement for services effective as of January 1, 2016, as amended from time to time, and pays monthly rent on this facility in the amount of $ 10,000 . Either party may terminate the agreement by providing the other party with one year’s prior written notice. Rent expense for the three and six months ended June 30, 2025 and 2024 amounted to $ 30,000 and $ 60,000 , respectively. Areth is a company controlled by Dr. Jerrold B. Grossman, the Vice Chairman of the Board, and Adam S. Grossman, the Company’s President and Chief Executive Officer. The Company also reimburses Areth for office, warehousing and building related (common area) expenses, equipment and certain other operational expenses, which were not material to the consolidated financial statements for the three and six months ended June 30, 2025 and 2024. 12 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) During the six months ended June 30, 2025 and 2024, the Company purchased certain specialized equipment and repair services used for the collection and processing of source plasma from GenesisBPS in the amount of $ 0.1 million. Genesis is owned by Dr. Grossman and Adam Grossman. 9. COMMITMENTS AND CONTINGENCIES General Legal Matters From time to time, the Company is or may become subject to certain legal proceedings and claims arising in connection with the normal course of its business. Management does not expect that the outcome of any such claims or actions will have a material effect on the Company’s liquidity, results of operations or financial condition. Vendor Commitments Pursuant to the terms of a plasma purchase agreement dated as of November 17, 2011 (the “2011 Plasma Purchase Agreement”), the Company agreed to purchase from its former contract manufacturer an annual minimum volume of source plasma containing antibodies to RSV to be used in the manufacture of ASCENIV. The Company must purchase a to-be-determined and agreed upon annual minimum volume from the counterparty, and under the original 2011 Plasma Purchase Agreement the Company was permitted to also collect high-titer RSV plasma from up to five wholly owned ADMA plasma collection facilities. During 2015, the Company amended the 2011 Plasma Purchase Agreement to (i) allow the Company to collect its raw material RSV high-titer plasma from any number of wholly owned ADMA plasma collection facilities and (ii) allow the Company to purchase its raw material RSV high-titer plasma from other third-party collection organizations, in each case, provided that the annual minimum volumes from the Company’s former contract manufacturer were met, thus allowing the Company to expand its reach for raw material supply as it executes its commercialization plans for ASCENIV. On December 10, 2018, the Company’s former contract manufacturer assigned its rights and obligations under the 2011 Plasma Purchase Agreement to Grifols Worldwide Operations Limited (“Grifols”) as its successor-in-interest, effective January 1, 2019. Effective October 1, 2024, the Company entered into an Amended and Restated Plasma Purchase Agreement with Grifols (the “A&R Grifols Agreement”) with a term expiring in September 2039 , after which it may be renewed for two additional multi-year periods if agreed to by the parties. Pursuant to the A&R Grifols Agreement, Grifols supplies, on a non-exclusive basis, to ADMA BioManufacturing a minimum of 35,000 liters of RSV plasma annually to be used in the manufacture of ASCENIV, with an escalating price per liter depending on the volume supplied in a given 12 -month period, with a minimum annual price increase every 12 months. Additionally, Grifols will be entitled to receive a fixed bonus payment if a specified liter amount of high-titer plasma is supplied to the Company in any 12 -month period during the term of the A&R Grifols Agreement. Effective August 6, 2024, the Company entered into a Plasma Purchase Agreement with KEDPlasma LLC (“KEDPlasma”) with a term expiring in July 2031 , after which it may be renewed for an additional five-year period if agreed to by the parties (the “KEDPlasma Agreement”). Pursuant to the KEDPlasma Agreement, KEDPlasma supplies, on a non-exclusive basis, to ADMA BioManufacturing a minimum of 35,000 liters of RSV plasma annually commencing with the 12 -month period ending July 31, 2026, with an escalating price per liter depending on the volume supplied in a given 12 -month period. The price per liter of high-titer plasma supplied pursuant to the KEDPlasma Agreement is also scheduled to increase on an annual basis. Additionally, KEDPlasma will be entitled to receive a fixed bonus payment if a specified liter amount of RSV plasma is supplied to the Company in any 12 -month period during the term of the KEDPlasma Agreement. On June 6, 2017, the Company entered into a Plasma Supply Agreement with its former contract manufacturer, pursuant to which the counterparty supplies, on an exclusive basis subject to certain exceptions, to ADMA BioManufacturing an annual minimum volume of hyperimmune plasma that contain antibodies to the Hepatitis B virus for the manufacture of Nabi-HB. The Plasma Supply Agreement has a 10 -year term. On July 19, 2018, the Plasma Supply Agreement was amended to provide, among other things, that in the event the counterparty elects not to supply in excess of ADMA BioManufacturing’s specified amount of Hepatitis B plasma and ADMA BioManufacturing is unable to secure Hepatitis B plasma from a third party at a price that is within a low double- digit percentage of the price that ADMA BioManufacturing pays to the counterparty, then the counterparty shall reimburse ADMA BioManufacturing for the difference in price ADMA BioManufacturing incurs. On December 10, 2018, the Company’s former contract manufacturer assigned its rights and obligations under the Plasma Supply Agreement to Grifols, effective January 1, 2019. 13 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Post-Marketing Commitments In connection with the FDA’s approval of ASCENIV on April 1, 2019, the Company is required to perform a pediatric study to evaluate the safety and efficacy of ASCENIV in children and adolescents. For the three and six months ended June 30, 2025, the Company incurred expenses related to this study in the amount of $ 0.3 million and $ 0.9 million, respectively. For the three and six months ended June 30, 2024, the Company incurred expenses related to this study in the amount of $ 0.4 million and $ 0.7 million, respectively. The study has been completed, and the Company submitted the ASCENIV pediatric indication for approval to the FDA during the second quarter of 2025. Other Commitments In the normal course of business, the Company enters into contracts that contain a variety of indemnifications with its employees, licensors, suppliers and service providers. Further, the Company indemnifies its directors and officers who are, or were, serving at the Company’s request in such capacities. The Company’s maximum exposure under these arrangements is unknown as of June 30, 2025. The Company does not anticipate recognizing any significant losses relating to these arrangements. 10. SEGMENTS The Company is engaged in the manufacture, marketing and development of specialty plasma-derived biologics. The Company’s ADMA BioManufacturing operating segment reflects the Company’s immunoglobulin manufacturing, commercial and development operations in Boca Raton, FL. The Plasma Collection Centers operating segment consists of ten plasma collection facilities located throughout the United States, all of which are operational, collecting plasma and currently hold FDA licenses. The Company defines its operating segments as those business units whose operating results are regularly reviewed by the chief operating decision maker (“CODM”) to analyze performance and allocate resources. While not considered an operating segment, the Corporate information included in the tables below consists of certain unallocated general and administrative overhead expenses and interest expense on the Company’s senior debt (see Note 6). The Company’s CODM is its President and Chief Executive Officer. For the Company’s two operating segments, the CODM uses income/loss before taxes as the measure of segment profit to determine the allocation of resources for each segment. Summarized financial information concerning reportable segments is shown in the following tables: 14 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Three Months Ended June 30, 2025 (in thousands) ADMA BioManufacturing Plasma Collection Centers Total Revenues $ 121,948 $ - $ 121,948 Cost of product revenue 54,757 - 54,757 Research and development 1,031 - 1,031 Plasma center operating expenses - 1,152 1,152 Selling, marketing and distribution 5,868 - 5,868 Amortization of intangible assets 32 - 32 General and administrative expense 14,941 - 14,941 Other expense, net ( 108 ) - ( 108 ) Income (loss) before taxes 45,211 ( 1,152 ) 44,059 Expenditures for additions to long-lived assets 2,034 ( 7 ) 2,027 Total assets 368,229 29,161 397,390 Reconciliation of revenues: Segment revenue $ 121,948 License revenue 36 Consolidated revenues $ 121,984 Reconciliation of selling, general and administrative expense: Segment selling, marketing and distribution expense $ 5,868 Segment general and administrative expense 14,941 Corporate general and administrative expense (a) 1,405 Consolidated selling, general and administrative expense $ 22,214 Reconciliation of income before taxes: Segment income before taxes $ 44,059 License revenue 36 Unallocated interest expense, primarily related to interest on senior debt (see Note 6) ( 1,834 ) Unallocated interest income 400 Loss on extinguishment of debt ( 1,159 ) Corporate general and administrative expense (a) ( 1,405 ) Consolidated income before taxes $ 40,097 Reconciliation of total assets: Total segment assets $ 397,390 Corporate (b) 160,990 Consolidated total assets $ 558,380 (a) - Primarily includes compensation expense, including stock-based compensation expense, for certain executive officers and consultants, insurance, legal and investor relations expenses and accounting and tax fees that are not allocated to the Company's operating segments. (b) - Primarily consists of cash and deferred tax assets. 15 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Six Months Ended June 30, 2025 (in thousands) ADMA BioManufacturing Plasma Collection Centers Total Revenues $ 235,665 $ 1,050 $ 236,715 Cost of product revenue 107,814 649 108,463 Research and development 1,858 - 1,858 Plasma center operating expenses - 2,438 2,438 Selling, marketing and distribution 11,911 - 11,911 Amortization of intangible assets 57 - 57 General and administrative expense 30,024 - 30,024 Other expense, net ( 172 ) - ( 172 ) Income (loss) before taxes 83,829 ( 2,037 ) 81,792 Expenditures for additions to long-lived assets 6,733 14 6,747 Total assets 368,229 29,161 397,390 Reconciliation of revenues: Segment revenue $ 236,715 License revenue 71 Consolidated revenues $ 236,786 Reconciliation of selling, general and administrative expense: Segment selling, marketing and distribution expense $ 11,911 Segment general and administrative expense 30,024 Corporate general and administrative expense (a) 4,357 Consolidated selling, general and administrative expense $ 46,292 Reconciliation of income (loss) before taxes: Segment income before taxes $ 81,792 License revenue 71 Unallocated interest expense, primarily related to interest on senior debt (see Note 6) ( 3,809 ) Unallocated interest income 1,008 Loss on extinguishment of debt ( 1,159 ) Corporate general and administrative expense (a) ( 4,357 ) Consolidated income before taxes $ 73,546 Reconciliation of total assets: Total segment assets $ 397,390 Corporate (b) 160,990 Consolidated total assets $ 558,380 (a) - Primarily includes compensation expense, including stock-based compensation expense, for certain executive officers and consultants, insurance, legal and investor relations expenses and accounting and tax fees that are not allocated to the Company's operating segments. (b) - Primarily consists of cash and deferred tax assets. 16 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Three Months Ended June 30, 2024 (in thousands) ADMA BioManufacturing Plasma Collection Centers Total Revenues $ 106,183 $ 972 $ 107,155 Cost of product revenue 48,471 1,267 49,738 Research and development 560 - 560 Plasma center operating expenses - 942 942 Selling, marketing and distribution 4,504 - 4,504 Amortization of intangible assets 142 - 142 General and administrative expense 5,791 - 5,791 Other expense, net ( 13 ) ( 3 ) ( 16 ) Income (loss) before taxes 46,702 ( 1,240 ) 45,462 Expenditures for additions to long-lived assets 1,210 58 1,268 Total assets 258,094 33,607 291,701 Reconciliation of revenues: Segment revenue $ 107,155 License revenue 36 Consolidated revenues $ 107,191 Reconciliation of selling, general and administrative expense: Segment selling, marketing and distribution expense $ 4,504 Segment general and administrative expense 5,791 Corporate general and administrative expense (a) 6,313 Consolidated selling, general and administrative expense $ 16,608 Reconciliation of income (loss) before taxes: Segment income before taxes $ 45,462 License revenue 36 Unallocated interest expense, primarily related to interest on senior debt (see Note 6) ( 3,783 ) Unallocated interest income 449 Corporate general and administrative expense (a) ( 6,313 ) Consolidated income before taxes $ 35,851 Reconciliation of total assets: Total segment assets $ 291,701 Corporate (b) 84,698 Consolidated total assets $ 376,399 (a) - Primarily includes compensation expense, including stock-based compensation expense, for certain executive officers and consultants, insurance, legal and investor relations expenses and accounting and tax fees that are not allocated to the Company's operating segments. (b) - Primarily consists of cash and deferred tax assets. 17 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Six Months Ended June 30, 2024 (in thousands) ADMA BioManufacturing Plasma Collection Centers Total Revenues $ 186,297 $ 2,698 $ 188,995 Cost of product revenue 89,462 3,043 92,505 Research and development 1,010 - 1,010 Plasma center operating expenses - 1,947 1,947 Selling, marketing and distribution 8,935 - 8,935 Amortization of intangible assets 335 - 335 General and administrative expense 11,140 - 11,140 Other expense, net ( 47 ) ( 4 ) ( 51 ) Income (loss) before taxes 75,368 ( 2,296 ) 73,072 Expenditures for additions to long-lived assets 4,338 75 4,413 Total assets 258,094 33,607 291,701 Reconciliation of revenues: Segment revenue $ 188,995 License revenue 71 Consolidated revenues $ 189,066 Reconciliation of selling, general and administrative expense: Segment selling, marketing and distribution expense $ 8,935 Segment general and administrative expense 11,140 Corporate general and administrative expense (a) 12,172 Consolidated selling, general and administrative expense $ 32,247 Reconciliation of income (loss) before taxes: Segment income before taxes $ 73,072 License revenue 71 Unallocated interest expense, primarily related to interest on senior debt (see Note 6) ( 7,552 ) Unallocated interest income 833 Corporate general and administrative expense (a) ( 12,172 ) Consolidated income before taxes $ 54,252 Reconciliation of total assets: Total segment assets $ 291,701 Corporate (b) 84,698 Consolidated total assets $ 376,399 (a) - Primarily includes compensation expense, including stock-based compensation expense, for certain executive officers and consultants, insurance, legal and investor relations expenses and accounting and tax fees that are not allocated to the Company's operating segments. (b) - Primarily consists of cash and deferred tax assets. 18 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Net revenues according to geographic area, based on the location of where the product is shipped, were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2025 2024 2025 2024 United States $ 121,984 $ 102,726 $ 232,714 $ 180,717 International - 4,465 4,072 8,349 Total revenues $ 121,984 $ 107,191 $ 236,786 $ 189,066 11. LEASE OBLIGATIONS The Company leases certain properties and equipment for its ADMA BioCenters and ADMA BioManufacturing subsidiaries, which leases provide the right to use the underlying assets and require lease payments through the respective lease terms which expire at various dates through 2033. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease. Right-to-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of the lease payments is determined using the Company’s incremental borrowing rate. The Company’s lease expense is recognized on a straight-line basis over the lease term and is reflected in Plasma center operating expenses and selling, general and administrative expenses. Aggregate lease expense for the Company’s leases for the three months ended June 30, 2025 and 2024 was approximately $ 0.6 million, and aggregate lease expense for the six months ended June 30, 2025 and 2024 was $ 1.2 million. Cash paid for the Company’s leases for the three months ended June 30, 2025 and 2024 was also approximately $ 0.6 million, and cash paid for the six months ended June 30, 2025 and 2024 was approximately $ 1.2 million. The Company has aggregate lease liabilities of $ 10.4 million and $ 9.8 million as of June 30, 2025 and December 31, 2024, respectively, which are comprised primarily of the leases for the Company’s plasma collection centers and a warehouse lease for raw material storage related to the Company’s immunoglobulin manufacturing operations. As of June 30, 2025, the Company’s operating leases have a weighted-average remaining term of 6.4 years. Scheduled payments under the Company’s lease obligations are as follows ( in thousands ): Remainder of 2025 $ 1,228 Year ended December 31, 2026 2,403 2027 2,376 2028 2,433 2029 2,463 2030 2,201 Thereafter 2,296 Total payments 15,400 Less: imputed interest ( 4,972 ) Current portion ( 1,127 ) Balance at June 30, 2025 $ 9,301 19 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 12. INCOME TAXES The Company uses the estimated annual effective tax rate approach as prescribed by ASC 740-270, Interim Reporting, to calculate its interim provision for income taxes. Three Months Ended June 30, Six Months Ended June 30, (in thousands, except percentages) 2025 2024 2025 2024 Provision for income taxes $ 5,878 $ 3,789 $ 12,424 $ 4,384 Effective tax rate 14.7 % 10.6 % 16.9 % 8.1 % The effective tax rate for the three and six months ended June 30, 2025, differed from the federal statutory rate primarily due to the excess tax benefits on stock-based compensation. The effective tax rate for the three and six months ended June 30, 2024 differed from the federal statutory tax rate primarily due to the valuation allowance maintained on the Company's federal and state net deferred tax assets until December 31, 2024. 13. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Supplemental cash flow information for the six months ended June 30, 2025 and 2024 is as follows: 2025 2024 (In thousands) SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest $ 4,957 $ 3,843 Cash paid for income taxes $ 6,890 $ 1,550 Noncash Financing and Investing Activities: Equipment acquired reflected in accounts payable and accrued liabilities $ 1,025 $ 207 Purchases of treasury shares reflected in accrued liabilities $ 15,148 $ - Operating lease right-of-use assets obtained in exchange for operating lease obligations $ 1,236 $ - 14. SUBSEQUENT EVENTS Infrastructure Expansion In July 2025, the Company acquired real estate in Boca Raton, FL consisting of 5 acres of land and a building for a total purchase price of $ 12.6 million, which is inclusive of deposits aggregating $ 0.5 million made in May 2025. This real estate purchase is intended to allow the Company to expand its production operations and related activities as well as provide for certain redundancies for ambient and cold-chain storage of raw materials, work in process and finished goods inventory. Debt Refinancing On August 5, 2025 (the “JPM Closing Date”), the Company and all of the Company’s subsidiaries entered into a Credit Agreement (the “JPM Credit Agreement”) with the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The JPM Credit Agreement provides for $ 300 million of senior secured credit facilities, consisting of (a) a term loan in the aggregate principal amount of $ 75 million (the “JPM Term Loan Facility”) and (b) a revolving credit facility in the aggregate principal amount of $ 225 million (the “JPM Revolving Facility”). The Company may also request, subject to customary conditions, additional incremental revolving commitments or term loans in an aggregate principal amount not to exceed $ 100 million (together with the JPM Term Loan Facility and the JPM Revolving Facility, the “JPM Credit Facilities”). The JPM Term Loan Facility has a maturity date of August 5, 2028 (the “JPM Term Maturity Date”) and the JPM Revolving Facility has a maturity date of August 5, 2028 or any earlier date on which the commitments under the JPM Revolving Facility are reduced to zero or otherwise terminated pursuant to the terms of the JPM Credit Agreement (the “JPM Revolving Maturity Date”). 20 Index ADMA BIOLOGICS, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) On the JPM Closing Date, the Company used the proceeds of the JPM Credit Facilities to terminate and pay in full all of the outstanding obligations under the Ares Credit Facility, including the outstanding principal of all loans, all accrued and unpaid interest thereon, and any unpaid fees, charges, premiums (including prepayment premiums) and costs, and expenses related thereto. The Company expects to recognize debt extinguishment losses of approximately $ 2.0 million as a result of this repayment. The Company may also use the proceeds of the JPM Credit Facilities to finance share repurchases and for working capital and general corporate purposes. Interest on borrowings under the JPM Credit Facilities will accrue at an applicable rate equal to (i) an alternate base rate plus an applicable spread (each such borrowing, an “ABR Borrowing”) or (ii) Term SOFR plus an applicable spread (each such borrowing, a “Term Benchmark Borrowing”), in each case based on the lower of the applicable rates set forth in the JPM Credit Agreement, which are based on the Company’s total leverage ratio. These applicable spreads range from 150 basis points to 200 basis points over the alternate base rate and 250 basis points to 300 basis points over Term SOFR, in each case, as determined in accordance with the provisions of the JPM Credit Agreement. The Company has agreed to pay a commitment fee at specified rates set forth in the JPM Credit Agreement, which, based on the Company’s total leverage ratio, ranges from 30 basis points to 35 basis points on the daily amount of the undrawn portion of the aggregate commitments of the lenders under the JPM Revolving Facility. At the Company’s request, each borrowing initially shall be either an ABR Borrowing or a Term Benchmark Borrowing, and the Company may thereafter elect to convert any such borrowing to a different type. During the occurrence and continuance of an Event of Default (as defined in the JPM Credit Agreement), all borrowings shall accrue interest at a rate per annum equal to 2 % plus the applicable rate. On the JPM Revolving Maturity Date, the Company will repay the unpaid principal amount outstanding under the JPM Revolving Facility. Under the JPM Term Loan Facility, the Company will make principal payments in accordance with and on the dates specified in the amortization schedule set forth in the JPM Credit Agreement, with the remaining unpaid principal amount to be paid in full on the JPM Term Maturity Date. The Company may prepay at any time and from time to time any borrowing in whole or in part, without premium or penalty (other than, if applicable, any break funding expenses), subject to customary notice requirements. All of the Company’s obligations under the JPM Credit Agreement are secured by a first-priority lien and security interest in substantially all of the tangible and intangible assets, including intellectual property and equity interests, of the Company and all of its subsidiaries. The JPM Credit Agreement contains certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The negative covenants include certain financial covenants, including a maximum total leverage ratio of 2.50 to 1.00 and a minimum fixed charge coverage ratio of 1.20 to 1.00. The negative covenants also restrict or limit the Company’s ability and the ability of the Company’s subsidiaries to, among other things and subject to certain exceptions contained in the JPM Credit Agreement, incur new indebtedness; create liens on assets; engage in certain fundamental corporate changes; make certain investments; dispose of certain assets; engage in sale and leaseback transactions or swap agreements; make certain Restricted Payments (as defined in the JPM Credit Agreement); engage in certain affiliate transactions; enter into any other agreements that have the impact of restricting the Company’s ability to make loan repayments under the JPM Credit Agreement; or amend certain material documents. 21 Index