What changed in this filing

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Item 1. Financial Statements

2025-08-08 compared with 2025-05-09 · 229 added, 154 removed, 850 unchanged (31% of the section changed)

3 unchanged sentences

(In thousands, except per share amounts)

March 31, 2025 As of

June 30, 2025 As of

December 31, 2024

27 unchanged sentences

Series A Preferred Stock, $ 0.0001 par value;

315,789.473684 shares authorized, issued and outstanding at March 31, 2025 and December 31, 2024

315,789.473684 shares authorized, issued and outstanding at June 30, 2025 and December 31, 2024

393,376 380,179

2 unchanged sentences

1,000,000,000 shares authorized;

54,722,646 shares issued and outstanding at March 31, 2025;

55,491,476 shares issued and outstanding at June 30, 2025;

54,209,388 shares issued and outstanding at December 31, 2024

4 unchanged sentences

Total liabilities, mezzanine equity and stockholders’ deficit $ 279,038 $ 290,809

1 Includes related party operating lease right-of-use assets of $ 4.8 million and $ 5.1 million as of March 31, 2025 and December 31, 2024, respectively.

2 Includes related party accounts payable of zero and $ 0.1 million as of March 31, 2025 and December 31, 2024, respectively.

3 Includes related party operating lease right-of-use current liabilities of $ 1.3 million as of March 31, 2025 and December 31, 2024.

4 Includes related party operating lease right-of-use noncurrent liabilities of $ 3.4 million and $ 3.8 million as of March 31, 2025 and December 31, 2024, respectively.

1 Includes related party operating lease right-of-use assets of zero and $ 5.1 million as of June 30, 2025 and December 31, 2024, respectively.

2 Includes related party accounts payable of zero and $ 0.1 million as of June 30, 2025 and December 31, 2024, respectively.

3 Includes related party operating lease right-of-use current liabilities of zero and $ 1.3 million as of June 30, 2025 and December 31, 2024, respectively.

4 Includes related party operating lease right-of-use noncurrent liabilities of zero and $ 3.8 million as of June 30, 2025 and December 31, 2024, respectively.

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

3 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended June 30,

2025 2024 2025 2024

$ 30,751 $ 13,014 $ 46,397 $ 18,521

Cost of revenues:

2 unchanged sentences

Total cost of revenues 18,700 9,867 35,907 19,073

Gross loss ( 1,561 ) ( 3,699 )

Gross income (loss) 12,051 3,147 10,490 ( 552 )

Selling, general and administrative expense 2

Operating loss ( 10,151 ) ( 15,309 )

6,524 7,902 15,114 19,512

Operating income (loss) 5,527 ( 4,755 ) ( 4,624 ) ( 20,064 )

Interest expense 3

1 unchanged sentence

Other income 700 144 1,299 1,303

Loss before income taxes ( 15,287 ) ( 20,073 )

Income tax expense ( 251 ) ( 14 )

Net loss $ ( 15,538 ) $ ( 20,087 )

Income (loss) before income taxes 490 ( 10,465 ) ( 14,797 ) ( 30,538 )

Income tax (expense) benefit ( 182 ) 484 ( 433 ) 470

Net income (loss) $ 308 $ ( 9,981 ) $ ( 15,230 ) $ ( 30,068 )

Series A Preferred Stock – adjustment to maximum redemptions value ( 6,636 ) ( 6,196 ) ( 13,197 ) ( 12,385 )

2 unchanged sentences

Weighted average Common Stock outstanding – basic and diluted 53,878,966 48,326,688 53,846,770 47,964,465

1 Includes related party revenues of zero and $ 0.1 million for the three months ended March 31, 2025 and 2024, respectively.

2 Includes related party cost of revenues of $ 1.0 million for the three months ended March 31, 2025 and 2024.

3 Includes related party interest expense of zero and $ 0.3 million for the three months ended March 31, 2025 and 2024, respectively.

1 Includes related party revenues of zero for the three and six months ended June 30, 2025, and $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2024, respectively.

2 Includes related party cost of revenues of $ 0.3 million and $ 1.3 million for the three and six months ended June 30, 2025, respectively, and $ 0.4 million and $ 1.4 million for the three and six months ended June 30, 2024, respectively.

3 Includes related party interest expense of zero for the three and six months ended June 30, 2025, and $ 0.3 million and $ 0.6 million for the three and six months ended June 30, 2024, respectively.

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

BRIDGER AEROSPACE GROUP HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

For the Three Months Ended

Net loss $ ( 15,538 ) $ ( 20,087 )

June 30, For the Six Months Ended June 30,

2025 2024 2025 2024

Net income (loss) $ 308 $ ( 9,981 ) $ ( 15,230 ) $ ( 30,068 )

Other comprehensive (loss) income, net of tax:

3 unchanged sentences

Total other comprehensive (loss) income, net of tax ( 190 ) ( 22 ) ( 406 ) 124

Comprehensive loss $ ( 15,754 ) $ ( 19,941 )

Comprehensive income (loss) $ 118 $ ( 10,003 ) $ ( 15,636 ) $ ( 29,944 )

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

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

For the Six Months Ended June 30, 2025

(In thousands, except share amounts)

Preferred Stock Common Stock Additional

Capital Accumulated Deficit Accumulated Other Comprehensive Income Total Stockholders' Deficit

Series A Preferred Stock Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Income Total Stockholders’ Deficit

Share Value Share Value

7 unchanged sentences

Balance at March 31, 2025 315,789 $ 386,740 54,742,646 $ 6 $ 96,583 $ ( 444,777 ) $ 820 $ ( 347,368 )

Net income — — — — — 308 — 308

Foreign currency translation adjustment — — — — — — ( 63 ) ( 63 )

Unrealized loss on derivative instruments — — — — — — ( 127 ) ( 127 )

Series A Preferred Stock adjustment to maximum redemptions value — 6,636 — — ( 6,636 ) — — ( 6,636 )

Common Stock issued related to Ignis Acquisition — — 617,189 — 1,191 — — 1,191

Repurchased shares for tax withholding — — ( 16,909 ) — ( 32 ) — — ( 32 )

Stock-based compensation — — 148,550 — 1,737 — — 1,737

Balance at June 30, 2025 315,789 $ 393,376 55,491,476 $ 6 $ 92,843 $ ( 444,469 ) $ 630 $ ( 350,990 )

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

BRIDGER AEROSPACE GROUP HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

For the Six Months Ended June 30, 2024

(In thousands, except share amounts)

Series A Preferred Stock Common Stock Additional Paid-in Capital Accumulated Deficit Accumulated Other Comprehensive Income Total Stockholders’ Deficit

Share Value Share Value

Balance at December 31, 2023 315,789 $ 354,840 47,200,504 $ 5 $ 84,771 $ ( 413,672 ) $ 987 $ ( 327,909 )

7 unchanged sentences

Balance at March 31, 2024 315,789 $ 361,029 47,266,165 $ 5 $ 83,953 $ ( 433,759 ) $ 1,133 $ ( 348,668 )

Net loss — — — — — ( 9,981 ) — ( 9,981 )

Unrealized gain on derivative instruments — — — — — — ( 22 ) ( 22 )

Series A Preferred Stock adjustment to maximum redemptions value — 6,196 — — ( 6,196 ) — — ( 6,196 )

Sales of Common Stock through the registered direct offering — — 2,183,366 — 9,169 — — 9,169

Costs related to offerings — — — — ( 336 ) — — ( 336 )

Common Stock issued related to Ignis Acquisition — — 1,079,913 — 5,000 — — 5,000

Common Stock issued related to FMS Acquisition — — 3,728,945 1 19,022 — — 19,023

Repurchased shares for tax withholding — — ( 114,196 ) — ( 466 ) — — ( 466 )

Cancellation of vested restricted stock units — — ( 2,032,545 ) — — — — —

Stock-based compensation — — 1,676,729 — 4,477 — — 4,477

Balance at June 30, 2024 315,789 $ 367,225 53,788,377 $ 6 $ 114,623 $ ( 443,740 ) $ 1,111 $ ( 328,000 )

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

2 unchanged sentences

(In thousands)

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Cash Flows from Operating Activities:

4 unchanged sentences

Stock-based compensation expense 3,728 10,350

Deferred tax benefit — ( 490 )

Change in fair value of the Warrants 1,066 ( 2,132 )

8 unchanged sentences

Accounts payable, accrued expenses and other liabilities 1

( 3,061 ) ( 4,953 )

Net cash used in operating activities ( 16,215 ) ( 25,558 )

3 unchanged sentences

Expenditures for capitalized software ( 626 ) ( 756 )

Cash acquired through acquisition — 2,592

Proceeds from sales of property, plant and equipment 973 505

3 unchanged sentences

Repayments on debt ( 1,621 ) ( 1,466 )

Payment of issuance costs for Common Stock in the at-the-market offering — ( 324 )

Payment of issuance costs for Common Stock in offerings — ( 674 )

Proceeds from issuance of Common Stock in the registered direct offering — 9,169

Proceeds from issuance of Common Stock in the at-the-market offering — 168

Payment of finance lease liability ( 15 ) ( 13 )

Restricted stock units settled in cash ( 342 ) —

Net cash used in financing activities ( 1,159 ) ( 896 )

Cash paid for taxes related to net share settlement of equity awards ( 374 ) ( 466 )

Net cash (used in) provided by financing activities ( 2,010 ) 6,718

Effects of exchange rate changes ( 95 ) —

4 unchanged sentences

Cash and cash equivalents – end of the period $ 17,036 $ 8,526

1 Includes related party accounts payable of zero and $ 0.1 million for the three months ended March 31, 2025 and 2024, respectively.

1 Includes related party accounts payable of zero and $ 0.1 million for the six months ended June 30, 2025 and 2024, respectively.

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

5 unchanged sentences

and its subsidiaries (“Bridger”, “the Company,” “we,” “us” or “our”) provide aerial wildfire surveillance, relief and suppression and aerial firefighting services using next-generation technology and environmentally friendly and sustainable firefighting methods primarily throughout the United States, as well as airframe modification and integration solutions for governmental and commercial customers.

As of March 31, 2025, the Company owns twelve aircraft, including six Viking CL-415EAFs (“Super Scoopers”), four Daher Kodiak 100s (“Daher Kodiaks”), one Twin Commander surveillance platform and one Pilatus PC-12 (“Pilatus”).

As of June 30, 2025, the Company owns twelve aircraft, including six Viking CL-415EAFs (“Super Scoopers”), four Daher Kodiak 100s (“Daher Kodiaks”), one Twin Commander surveillance platform and one Pilatus PC-12 (“Pilatus”).

Principles of Consolidation and Basis of Presentation

3 unchanged sentences

Certain amounts have been reclassified to conform to the current period's presentation.

The information as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 is unaudited.

The information as of June 30, 2025 and for the three and six months ended June 30, 2025 and 2024 is unaudited.

The condensed consolidated balance sheet as of December 31, 2024 was derived from the Company’s audited consolidated financial statements at that date.

In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, except as otherwise disclosed, necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented.

Management also has evaluated the impact of events occurring after March 31, 2025 up to the date of issuance of these condensed financial statements, and these statements contain all necessary adjustments and disclosures resulting from that evaluation.

Management also has evaluated the impact of events occurring after June 30, 2025 up to the date of issuance of these condensed financial statements, and these statements contain all necessary adjustments and disclosures resulting from that evaluation.

The results have been prepared in accordance with the instructions to Form 10-Q and do not necessarily include all information and footnotes necessary for presentation in accordance with GAAP, however, the Company believes that the disclosures are adequate to prevent the information presented from being misleading.

2 unchanged sentences

Securities and Exchange Commission (the “SEC”) on March 14, 2025 (the “Form 10-K”).

Recent Activity

On May 23, 2025, the Company entered into a Purchase and Sale Agreement with an unrelated third party for the sale and leaseback of its hangar and office facilities at the Bozeman Yellowstone International Airport in Belgrade, Montana, with an aggregate preliminary purchase price of approximately $ 46.0 million.

The transaction is expected to close in the third quarter of 2025, and is subject to contractual terms, closing conditions and approvals that are standard and customary for this type of transaction.

Concurrent with the closing of the transaction, the Company will enter into a 10-year market-based lease agreement with the third-party buyer for the hangar and office facilities, which the Company will continue to utilize as the main base for its operations.

As of the date these condensed consolidated financial statements are issued, the transaction is not complete and is awaiting approvals that are more than perfunctory and administrative, and as such, the related assets have not been classified as held for sale for the quarter ended June 30, 2025.

Reverse Recapitalization

21 unchanged sentences

Subsequent to the issuance of the Company’s financial statements for the nine months ended September 30, 2024, the Company’s management identified an error in the classification of cash collected for a note receivable that had previously been included in operating activities but should have been included in investing activities within the Condensed Consolidated Statements of Cash Flows.

As a result, the accompanying Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 has been restated from amounts previously reported.

As a result, the accompanying Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 has been restated from amounts previously reported.

The Company will also correct previously reported financial information for such immaterial errors in future filings, as applicable.

1 unchanged sentence

The following table presents the effects of the correction on all affected line items of the Company’s previously reported Condensed Consolidated Financial Statements presented in this Quarterly Report on Form 10-Q:

For the three months ended March 31, 2024

For the six months ended June 30, 2024

$s in thousands As Previously Reported Impact of Restatement As Restated

5 unchanged sentences

Collection of note receivable $ — $ 3,000 $ 3,000

Net cash (used in) provided by investing activities ( 214 ) 3,000 2,786

Net cash provided by investing activities 1,448 3,000 4,448

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

13 unchanged sentences

NFMS, LLC was determined to be a VIE primarily due to the entity’s lack of sufficient equity investment at risk and the Company was determined to be the primary beneficiary of the VIE primarily attributable to the Company’s responsibility for all decisions related to NFMS, LLC’s expenditures.

Accordingly, NFMS, LLC has been consolidated by the Company for the three months ended March 31, 2025 and 2024 and the year ended December 31, 2024, and all intercompany expenses associated with NFMS, LLC and its service agreement have been eliminated in consolidation.

As of March 31, 2025 and December 31, 2024, NFMS, LLC’s assets and liabilities were immaterial to the Company’s Condensed Consolidated Financial Statements.

Accordingly, NFMS, LLC has been consolidated by the Company for the three and six months ended June 30, 2025 and 2024 and the year ended December 31, 2024, and all intercompany expenses associated with NFMS, LLC and its service agreement have been eliminated in consolidation.

As of June 30, 2025 and December 31, 2024, NFMS, LLC’s assets and liabilities were immaterial to the Company’s Condensed Consolidated Financial Statements.

Bridger Aerospace Europe, S.L.U.

6 unchanged sentences

However, neither entity is consolidated in the Condensed Consolidated Financial Statements as the Company does not have a controlling financial interest in MAB and the Company is not the primary beneficiary of BAE.

Accordingly, neither of these entities have been consolidated in the Condensed Consolidated Financial Statements of the Company for the three months ended March 31, 2025 and 2024 and the year ended December 31, 2024.

Accordingly, neither of these entities have been consolidated in the Condensed Consolidated Financial Statements of the Company for the three and six months ended June 30, 2025 and 2024 and the year ended December 31, 2024.

Refer to “Note 16 – Commitments and Contingencies” included in this Quarterly Report on Form 10-Q for additional details.

7 unchanged sentences

The Company maintains an allowance for doubtful accounts equal to the estimated losses expected to be incurred based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions.

For the three months ended March 31, 2025 and 2024, the Company did not record any bad debt expense as accounts receivables have historically been collected in accordance with the policy and there is no history of write-offs.

For the three and six months ended June 30, 2025 and 2024, the Company did not record any bad debt expense as accounts receivables have historically been collected in accordance with the policy and there is no history of write-offs.

Deferred Offering Costs

Deferred offering costs primarily consist of capitalized legal, accounting and other third-party costs incurred that are related to the Reverse Recapitalization and subsequent securities offerings.

As of March 31, 2025 and December 31, 2024, the Company recorded $ 19.6 million to Stockholders’ deficit in the Condensed Consolidated Balance Sheets.

As of June 30, 2025 and December 31, 2024, the Company recorded $ 19.6 million to Stockholders’ deficit in the Condensed Consolidated Balance Sheets.

Revenue Recognition

36 unchanged sentences

The effect of a contract modification on the transaction price, and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis.

Total cumulative catch-up adjustments were not material for the three months ended March 31, 2025.

Total cumulative catch-up adjustments were not material for the three and six months ended June 30, 2025.

Other revenues

Other revenues primarily consists of training services and lease revenue when we lease our owned aircraft to third parties, typically on an hourly or daily basis.

For the three months ended March 31, 2025 and 2024, we had lease revenue of $ 0.3 million and $ 0.6 million, respectively.

We had training services and lease revenue of $ 3.3 million and $ 3.6 million for the three and six months ended June 30, 2025, respectively, and $ 0.2 million and $ 0.8 million for the three and six months ended June 30, 2024, respectively.

Contract assets & liabilities

11 unchanged sentences

In such instances, the Company has elected the practical expedient to not evaluate whether a significant financing component exists.

Net contract assets are as follows:

Net contract (liabilities) assets are as follows:

$s in thousands As of

March 31, 2025 As of

June 30, 2025 As of

December 31, 2024 Net Change

1 unchanged sentence

Contract liabilities 1,165 858 307

Net contract assets $ 2,122 $ 888 $ 1,234

Net contract (liabilities) assets $ ( 881 ) $ 888 $ ( 1,769 )

Changes in the balances of the Company’s contract assets and liabilities primarily result from timing differences between revenue recognition and customer billings and/or payments.

There were no significant impairment losses related to any receivables or contract assets arising from the Company’s contracts with customers during the three months ended March 31, 2025 and the year ended December 31, 2024.

For the three months ended March 31, 2025, the Company recognized revenues of $ 0.7 million that was previously included in the contract liabilities that existed at December 31, 2024.

There were no significant impairment losses related to any receivables or contract assets arising from the Company’s contracts with customers during the six months ended June 30, 2025 and 2024.

For the six months ended June 30, 2025, the Company recognized revenues of $ 0.8 million that was previously included in the contract liabilities that existed at December 31, 2024.

Remaining performance obligations

The Company calculates revenues from remaining performance obligations as the dollar value of the remaining performance obligations on executed contracts.

As of March 31, 2025, the Company has remaining unsatisfied performance obligations of $ 6.5 million, of which the entire balance is expected to be recognized as revenue within the next twelve months .

As of June 30, 2025, the Company has remaining unsatisfied performance obligations of $ 9.4 million, of which 82 % is expected to be recognized as revenue in the next twelve months and 18 % thereafter.

Contract costs

9 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

$s in thousands 2025 2024 2025 2024

MRO $ 7,890 $ 428

Fire suppression $ 18,075 $ 7,466 $ 23,858 $ 11,347

Aerial surveillance 4,023 3,514 5,734 4,097

MRO 5,356 1,817 13,246 2,245

Other services 3,297 217 3,559 832

Total revenues $ 30,751 $ 13,014 $ 46,397 $ 18,521

Certain amounts have been reclassified to conform to the current period’s presentation.

The following table presents the disaggregation of revenue by geographic area:

For the Three Months Ended

June 30, For the Six Months Ended

$s in thousands 2025 2024 2025 2024

3 unchanged sentences

Concentration Risk

The Company had two customers who individually accounted for 48 % and 38 % of total revenues for the three months ended March 31, 2025, and two customers who individually accounted for 69 % and 19 % of total revenues for the three months ended March 31, 2024.

As of March 31, 2025, one customer accounted for 82 % of trade accounts receivable.

The Company had three customers who individually accounted for 51 %, 23 % and 17 % of total revenues for the three months ended June 30, 2025, and three customers who individually accounted for 47 %, 24 % and 17 % of total revenues for the six months ended June 30, 2025.

The Company had three customers who individually accounted for 61 %, 20 % and 14 % of total revenues for the three months ended June 30, 2024, and three customers who individually accounted for 63 %, 16 % and 15 % of total revenues for the six months ended June 30, 2024.

As of June 30, 2025, two customers accounted for 57 % and 12 % of trade accounts receivable.

As of December 31, 2024, two customers accounted for 42 % and 17 % of trade accounts receivable, respectively.

37 unchanged sentences

The accounting for gains and losses that result from changes in the fair values of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationships.

The changes in fair values of derivatives that have been designated and qualify as cash flow hedges are recorded in Accumulated other comprehensive income and are reclassified into the line item on the Condensed Consolidated Statements of Comprehensive Loss in which the hedged items are recorded in the same period the hedged items affect earnings.

The changes in fair values of derivatives that have been designated and qualify as cash flow hedges are recorded in Accumulated other comprehensive income and are reclassified into the line item on the Condensed Consolidated Statements of Comprehensive Income (Loss) in which the hedged items are recorded in the same period the hedged items affect earnings.

In addition, settlements on cash flow hedges are recorded in the same section of the Condensed Consolidated Statements of Cash Flows as the underlying nature of the hedged item.

35 unchanged sentences

The Company is evaluating the disclosure impact of ASU 2023-09;

however, the standard will not have an impact on the Company’s condensed consolidated financial position, results of operations and/or cash flows.

however, the standard will not have a material impact on the Company’s condensed consolidated financial position, results of operations and/or cash flows.

NOTE 3 – SUPPLEMENTAL CASH FLOW INFORMATION

For the Three Months Ended

For the Six Months Ended

$s in thousands 2025 2024

6 unchanged sentences

Fixed assets in accounts payable — 27

Issuance costs for ATM offering included in accounts payable, accrued expense and other liabilities — 346

Purchase consideration of FMS acquisition paid in Common Stock — 19,023

Purchase consideration of Ignis acquisition paid in Common Stock ( Note 12 )

Offering costs included in accounts payable, accrued expense and other liabilities — 332

NOTE 4 – CASH EQUIVALENTS

Cash equivalents consist of the following:

March 31, 2025 As of

June 30, 2025 As of

December 31, 2024

4 unchanged sentences

Money market fund $ 13,837 $ 13,747

The proceeds from sales of available-for-sale securities and gross realized gains included in earnings for the three months ended March 31, 2025 are zero .

The proceeds from sales of available-for-sale securities and gross realized gains included in earnings for the three months ended March 31, 2024 are $ 1.1 million and $ 16,000 , respectively.

The proceeds from sales of available-for-sale securities and gross realized gains included in earnings for the six months ended June 30, 2025 are zero .

The proceeds from sales of available-for-sale securities and gross realized gains included in earnings for the six months ended June 30, 2024 are $ 1.1 million and $ 16,000 , respectively.

The Company determines gains and losses using the first-in first-out method.

For the three months ended March 31, 2025 and 2024, the Company reclassified out of Accumulated other comprehensive income a loss of zero and $ 30,000 .

For the three and six months ended June 30, 2024, the Company reclassified out of Accumulated other comprehensive income a loss of zero and $ 30,000 , respectively.

NOTE 5 – ACCOUNTS RECEIVABLE

1 unchanged sentence

$s in thousands As of

March 31, 2025 As of

June 30, 2025 As of

December 31, 2024

Unbilled receivable $ 11,898 $ —

Trade accounts receivable 3,843 3,213

1 unchanged sentence

Contract assets 284 1,746

Unbilled receivable 555 —

Total accounts receivable $ 18,325 $ 5,945

Substantially all accounts receivable as of March 31, 2025 and December 31, 2024, are expected to be collected in 2025.

The Company does not believe it has significant exposure to credit risk, as accounts receivable and the related unbilled amounts are primarily from contracts associated with the U.S.

Substantially all accounts receivable as of June 30, 2025 and December 31, 2024, are expected to be collected in 2025.

The Company does not believe it has significant exposure to credit risk, as accounts receivable is primarily from contracts associated with the U.S.

Unbilled receivable consists of earned revenue that has not yet been billed on the Company’s contracts.

4 unchanged sentences

$s in thousands As of

March 31, 2025 As of

June 30, 2025 As of

December 31, 2024

5 unchanged sentences

$s in thousands As of

March 31, 2025 As of

June 30, 2025 As of

December 31, 2024

7 unchanged sentences

$s in thousands As of

March 31, 2025 As of

June 30, 2025 As of

December 31, 2024

12 unchanged sentences

Total property, plant and equipment, net $ 181,775 $ 183,769

For the three months ended March 31, 2025, the Company recorded $ 1.3 million and $ 0.4 million of depreciation expense in Cost of revenues and Selling, general and administrative expense, respectively.

For the three months ended March 31, 2024, the Company recorded $ 0.9 million and $ 0.4 million of depreciation expense in Cost of revenues and Selling, general and administrative expense, respectively.

Aircraft are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.

For the three months ended March 31, 2025 and 2024, the Company recorded no impairment charges.

For the three months ended March 31, 2025, the Company recorded a gain on disposal of assets of $ 0.1 million in Selling, general and administrative expense in the Condensed Consolidated Statements of Operations.

For the three months ended March 31, 2024, the Company recorded a loss on disposal of assets $ 0.3 million in Selling, general and administrative expense in the Condensed Consolidated Statements of Operations.

For the three and six months ended June 30, 2025, the Company recorded $ 3.3 million and $ 4.6 million of depreciation expense in Cost of revenues, respectively, and $ 0.3 million and $ 0.7 million of depreciation expense in Selling, general and administrative expense, respectively.

For the three and six months ended June 30, 2024, the Company recorded $ 1.6 million and $ 2.5 million of depreciation expense in Cost of revenues, respectively, and $ 0.3 million and $ 0.7 million of depreciation expense in Selling, general and administrative expense, respectively.

Asset groups are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.

For the three and six months ended June 30, 2025 and 2024, the Company recorded no impairment charges.

For the three and six months ended June 30, 2025, the Company recorded a gain on disposal of assets of zero and $ 0.1 million in Selling, general and administrative expense in the Condensed Consolidated Statements of Operations.

For the three and six months ended June 30, 2024, the Company recorded losses on disposal of assets of zero and $ 0.2 million, respectively, in Selling, general and administrative expense in the Condensed Consolidated Statements of Operations.

NOTE 9 – ACQUISITION ACTIVITY

66 unchanged sentences

The operating results of the acquisition have been included in the Company’s results of operations from the effective date of the acquisition.

The amounts of revenue and operating loss of FMS included in the Company’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 were $ 1.8 million and $ 0.2 million, respectively.

NOTE 10 – GOODWILL AND INTANGIBLE ASSETS, NET

As of March 31, 2025 and December 31, 2024, goodwill was $ 20.9 million and $ 20.7 million, respectively.

There were no impairment charges recorded for goodwill for the three months ended March 31, 2025 and 2024, respectively.

Changes in the carrying amount of goodwill for the year ended December 31, 2024 were as follows:

As of June 30, 2025 and December 31, 2024, goodwill was $ 20.9 million and $ 20.7 million, respectively.

There were no impairment charges recorded for goodwill for the three and six months ended June 30, 2025 and 2024, respectively.

Changes in the carrying amount of goodwill for the six months ended June 30, 2025 and the year ended December 31, 2024 were as follows:

$s in thousands Goodwill

4 unchanged sentences

Measurement period adjustment 139

As of March 31, 2025 $ 20,888

As of June 30, 2025 $ 20,888

Intangible assets consisted of the following:

As of March 31, 2025

$s in thousands Estimated

(Years) Gross

Amount Accumulated

Amortization Net

Contracts 5.5 $ 3,400 $ ( 464 ) $ 2,936

As of June 30, 2025

$s in thousands Estimated Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount

In-process research and development (“IPR&D”) 5 $ 3,408 $ ( 549 ) $ 2,859

Contracts 5.5 3,400 ( 618 ) 2,782

Trade name 9.5 300 ( 32 ) 268

4 unchanged sentences

As of December 31, 2024

$s in thousands Estimated

(Years) Gross

Amount Accumulated

Amortization Net

$s in thousands Estimated Life (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount

Contracts 5.5 $ 3,400 $ ( 309 ) $ 3,091

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The Company expects to amortize the IPR&D over its useful life of five years when placed into service.

For the three months ended March 31, 2025 and for the year ended December 31, 2024, the Company capitalized costs of $ 0.3 million and $ 1.2 million related to IPR&D, respectively.

Amortization expense for intangible assets and other noncurrent assets was $ 0.3 million and $ 26,000 for the three months ended March 31, 2025 and 2024, respectively.

For the six months ended June 30, 2025 and 2024, the Company capitalized costs of $ 0.6 million and $ 0.8 million related to IPR&D, respectively.

Amortization expense for intangible assets and other noncurrent assets was $ 0.3 million and $ 0.6 million for the three and six months ended June 30, 2025, respectively, and $ 0.1 million for the three and six months ended June 30, 2024.

Amortization expense is included in Selling, general and administrative expense in the Condensed Consolidated Statements of Operations.

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Other noncurrent assets consisted of the following:

$s in thousands As of March 31,

2025 As of December 31,

$s in thousands As of

June 30, 2025 As of

December 31, 2024

Operating lease right-of-use asset $ 9,094 $ 7,951

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$s in thousands As of

March 31, 2025 As of

June 30, 2025 As of

December 31, 2024

Accrued interest expense $ 6,356 $ 6,487

Contingent consideration 2,280 6,219

Deferred revenue 1,165 858

Warrant liabilities 2,132 1,066

Accrued salaries, wages and bonuses 1,758 1,635

Accrued interest expense 1,816 6,487

Deferred underwriting fee payable 1,500 1,500

Warrant liabilities 1,332 1,066

Accrued foreign tax 925 925

Deferred revenue 360 858

Finance right-of-use liability 107 37

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In such case, the Warrant holders will be able to exercise their Warrants on a cashless basis prior to the redemption for a number of shares of our Common Stock determined based on the redemption date and the fair market value of the Common Stock.

As of March 31, 2025 and December 31, 2024, 17,249,874 Public Warrants remain outstanding.

The Public Warrants are liability-classified with a balance of $ 0.9 million and $ 0.7 million, respectively, and a fair value of $ 0.05 and $ 0.04 per warrant as of March 31, 2025 and December 31, 2024, respectively.

As of June 30, 2025 and December 31, 2024, 17,249,874 Public Warrants remain outstanding.

The Public Warrants are liability-classified with a balance of $ 1.4 million and $ 0.7 million, respectively, and a fair value of $ 0.08 and $ 0.04 per warrant as of June 30, 2025 and December 31, 2024, respectively.

Private Placement Warrants

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If the Private Placement Warrants are held by holders other than JCIC Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company in all redemption scenarios and exercisable by the holders on the same basis as the Public Warrants.

As of March 31, 2025 and December 31, 2024, the Company had 9,400,000 outstanding Private Placement Warrants to purchase 9,400,000 shares of Common Stock.

The Private Placement Warrants are liability-classified with a balance of $ 0.5 million and $ 0.4 million, respectively, and a fair value of $ 0.05 and $ 0.04 per warrant as of March 31, 2025 and December 31, 2024, respectively.

As of June 30, 2025 and December 31, 2024, the Company had 9,400,000 outstanding Private Placement Warrants to purchase 9,400,000 shares of Common Stock.

The Private Placement Warrants are liability-classified with a balance of $ 0.8 million and $ 0.4 million, respectively, and a fair value of $ 0.08 and $ 0.04 per warrant as of June 30, 2025 and December 31, 2024, respectively.

Contingent Consideration

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The initial cost was recognized at fair value on the closing date with subsequent changes in estimated fair value recognized as Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations.

As of March 31, 2025 and December 31, 2024, the Company had $ 3.2 million and $ 3.4 million, respectively, in Accrued expenses and other current liabilities and $ 2.9 million and $ 2.8 million, respectively, in Long-term accrued expenses and other noncurrent liabilities in the Condensed Consolidated Balance Sheets.

The change in contingent consideration for the three months ended March 31, 2025 and year ended December 31, 2024 was as follows:

As part of the 2023 Ignis Acquisition, the Company agreed to pay contingent consideration based on the achievement of certain operational milestones.

The final milestone was completed during 2024, which triggered a series of three annual contingent consideration payments.

The first payment was made as of the quarter ended June 30, 2024.

During the second quarter of 2025, the Company issued 617,189 restricted shares of Common Stock to the Ignis shareholders (determined based upon a trailing 120-day volume-weighted average per-share price "VWAP" of the Common Stock for the 120 consecutive trading days ended June 30, 2025).

The shares were issued at fair value, resulting in a total issuance value of approximately $ 1.2 million.

This amount was previously recognized as part of the contingent consideration liability as of March 31, 2025, and the issuance did not result in any additional expense during the period.

The remaining $ 1.9 million of Common Stock consideration will be issued to the Ignis shareholders in 2026, with the price per share determined based upon a trailing 120-day VWAP of the Common Stock at the time of such issuance.

The liability for the remaining contingent consideration has been recorded at fair value and is classified as a current liability on the condensed consolidated balance sheet.

Pursuant to the agreement, the maximum number of shares of Common Stock issuable to the Ignis shareholders as contingent earnout consideration will not exceed 8,399,198 shares in the aggregate.

All of the shares of Common Stock to be issued in the Ignis Acquisition will be subject to transfer restrictions for a 12-month period after each issuance, with 1/12th of the total shares of Common Stock vesting each month over the one-year period after each issuance.

None of the shares of Common Stock issued or issuable in connection with the Ignis Acquisition were registered under the Securities Act on the Ignis Acquisition date in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act.

Recipients of shares of Common Stock in connection with the Ignis Acquisition will have customary resale registration rights with respect to such shares of Common Stock pursuant to the terms and conditions of the Ignis Acquisition.

In addition, as it relates to the 2024 FMS Acquisition and the related earnout, during the current period, based on revised forecasts and updated expectations regarding the acquired business's performance against the applicable earn-out metrics, the Company has reduced the fair value of the contingent consideration liability by $ 2.1 million during the six months ended June 30, 2025.

As of June 30, 2025 and December 31, 2024, the Company had $ 1.9 million and $ 3.4 million, respectively, in Accrued expenses and other current liabilities and $ 0.4 million and $ 2.8 million, respectively, in Long-term accrued expenses and other noncurrent liabilities in the Condensed Consolidated Balance Sheets.

The change in contingent consideration for the six months ended June 30, 2025 and year ended December 31, 2024 was as follows:

$s in thousands 2025 2024

As of Contingent consideration, beginning of period $ 6,219 $ 8,486

Change in fair value of contingent consideration ( 152 ) ( 393 )

Addition of contingent consideration from FMS Acquisition — 2,164

Change in fair value of contingent consideration ( 2,748 ) ( 393 )

Settlement of contingent consideration ( 1,191 ) ( 4,038 )

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The Company had the following interest rate swap designated as a cash flow hedge ($s in thousands):

As of March 31, 2025

As of June 30, 2025

Date Maturity

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Long-term debt

As of March 31, 2025 and December 31, 2024, the Company has $ 160.2 million of fixed rate and $ 47.4 million and $ 48.3 million of variable rate debt outstanding, respectively.

As of June 30, 2025 and December 31, 2024, the Company has $ 160.1 million and $ 160.2 million of fixed rate debt outstanding, respectively, and $ 46.6 million and $ 48.3 million of variable rate debt outstanding, respectively.

The Company estimated the fair value of the fixed rate debt using quoted market prices (Level 2 inputs) within the fair value hierarchy.

When valuing fixed rate debt, the fair value is capped at par value.

The variable rate debt approximates fair value based on the closing or estimated market prices of similar securities comparable to the Company’s debts as of March 31, 2025 and December 31, 2024.

The variable rate debt approximates fair value based on the closing or estimated market prices of similar securities comparable to the Company’s debts as of June 30, 2025 and December 31, 2024.

Debt financing activities and loan agreements are further described in “Note 15 – Long-Term Debt” included in this Quarterly Report on Form 10-Q for additional details.

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The following tables summarize the Company’s assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy:

As of March 31, 2025

As of June 30, 2025

$s in thousands Level 1 Level 2 Level 3

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The inputs used to determine the fair value of long-lived assets are considered Level 3 measurements due to their subjective nature.

As of March 31, 2025, the Company did not have any significant assets or liabilities that were remeasured at fair value on a non-recurring basis in periods subsequent to initial recognition.

As of June 30, 2025, the Company did not have any significant assets or liabilities that were remeasured at fair value on a non-recurring basis in periods subsequent to initial recognition.

NOTE 15 – LONG-TERM DEBT

Long-term debt consisted of the following:

$s in thousands As of March 31,

2025 As of December 31,

$s in thousands As of

June 30, 2025 As of

December 31, 2024

Taxable industrial revenue bonds, dated July 21, 2022, 11.5 % interest rate, maturing September 1, 2027 1

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The Series 2022 Bonds are subject to financial covenants requiring the Company to maintain a debt service coverage ratio (“DSCR”) that exceeds 1.25 x each fiscal quarter, operate in such a manner to produce gross revenues so as to be at all relevant times in compliance with the DSCR covenant and to maintain liquidity of $ 8.0 million in the form of unrestricted cash or investments (excluding margin accounts and retirement accounts) at all times and to be reported.

The Company is in compliance with the DSCR covenant as of March 31, 2025 and management anticipates the Company will remain in compliance with the DSCR covenant at future quarterly measurement periods in the next 12 months.

The Company is in compliance with the $ 8.0 million minimum liquidity requirement as of March 31, 2025.

The Company is in compliance with the DSCR covenant as of June 30, 2025 and management anticipates the Company will remain in compliance with the DSCR covenant at future quarterly measurement periods in the next 12 months.

The Company is in compliance with the $ 8.0 million minimum liquidity requirement as of June 30, 2025.

The Series 2022 Bonds agreements provide that, with regard to covenant violations, other than non-payment of principal or interest, no event of default shall be deemed to have occurred so long as a reasonable course of action to remedy a violation commences within 30 days of non-compliance and management diligently prosecutes the remediation plan to completion.

The LOB loans are subject to financial covenants requiring the Company to maintain a DSCR, generally calculated as the ratio of the net cash flow (as defined in the applicable note agreements) to the amount of interest and servicing fees required to be paid over the succeeding 12 months on the principal amount of the note, as applicable, that will be outstanding on the payment date following such date of determination, that exceeds 1.25 x at the aircraft or entity level and for the Company’s debt to worth ratio to not exceed 5.00 x at the aircraft or entity level.

The Company is in compliance with such financial covenants as of March 31, 2025.

The Company is in compliance with such financial covenants as of June 30, 2025.

Both of the loans with CWB are subject to financial covenants requiring the Company to maintain a DSCR, calculated as the ratio of adjusted EBITDA (as defined in the applicable note agreements) to the amount of interest and principal payments for the fiscal year ending on the compliance date, that exceeds 1.25 x for the Company.

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This is calculated as Total Funded Senior Debt (as defined in the applicable note agreements) less municipal debt, divided by adjusted EBITDA (as defined in the applicable note agreements).

The Company is in compliance with such financial covenants as of March 31, 2025.

Amortization of debt issuance costs was $ 0.3 million and $ 0.2 million for the three months ended March 31, 2025 and 2024, respectively.

The Company is in compliance with such financial covenants as of June 30, 2025.

Amortization of debt issuance costs was $ 0.2 million and $ 0.5 million for the three and six months ended June 30, 2025, respectively, and $ 0.3 million and $ 0.4 million for the three and six months ended June 30, 2024, respectively.

NOTE 16 – COMMITMENTS AND CONTINGENCIES

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If the aircraft are not sold to a third party and MAB’s subsidiary has not otherwise entered into an operating lease with a third party for the aircraft, then the Company must pay MAB’s subsidiary $ 15.0 million.

As of May 30, 2025, the Company has initiated the sales process and continues the return to service work on the remaining Spanish Scoopers.

As of the quarter ended June 30, 2025, no sale has been completed, and the process remains ongoing.

Because the sale price and outcome remain uncertain, the Company is unable to reasonably estimate a potential loss, if any, related to this contingency.

Accordingly, no liability has been recorded in the condensed consolidated financial statements as of June 30, 2025.

The Company will continue to monitor the situation and assess the need for recognition or further disclosure in future periods.

NOTE 17 – MEZZANINE EQUITY

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Shares of Series A Preferred Stock are mandatorily redeemable by the Company on April 25, 2032 at a redemption amount that is equal to the stated value, plus accrued but unpaid interest.

Accrued interest for the Series A Preferred Stock was $ 6.6 million and $ 6.2 million for the three months ended March 31, 2025 and 2024, respectively.

Shares of Series A Preferred Stock are also redeemable upon certain triggering events outside of the control of the Company.

The triggering events include redemption by the holder on or after April 25, 2027, or a fundamental change in the Company’s voting and governance structure such as the sale of the Company or its subsidiaries representing more than 50 % of the Company’s voting stock or a similar liquidity event.

Accrued interest for the Series A Preferred Stock was $ 13.2 million and $ 12.4 million for the six months ended June 30, 2025 and 2024, respectively.

Shares of Series A Preferred Stock are also redeemable upon certain triggering events outside of the control of the Company, including that shares of Series A Preferred Stock may be redeemed by the Company (a) on or after April 25, 2027 or (b) in connection with the consummation of a fundamental change in the Company’s voting and governance structure such as the sale of the Company or its subsidiaries representing more than 50% of the Company’s voting stock or a similar liquidity event.

Shares of Series A Preferred Stock may be redeemed by the holder upon the consummation of a fundamental change, such as the sale of the Company or a similar liquidity event.

Given the conversion feature is considered substantive, the mandatory redemption on April 25, 2032 is not certain and accordingly, the Series A Preferred Stock are classified as mezzanine equity.

As of March 31, 2025, it is probable that the Series A Preferred Stock may become redeemable on April 25, 2032.

As of June 30, 2025, it is probable that the Series A Preferred Stock may become redeemable on April 25, 2032.

The Company has elected to recognize changes in redemption value immediately, adjusting the preferred stock to the maximum redemption value at each reporting date.

Upon Closing, the Series A Preferred Stock had both a carrying value and redemption value of $ 332.7 million, the 50 % multiplier, valued at $ 156.4 million, was removed.

As of March 31, 2025 and December 31, 2024, the Series A Preferred Stock had both a carrying value and redemption value of $ 386.7 million and $ 380.2 million, respectively.

As of June 30, 2025 and December 31, 2024, the Series A Preferred Stock had both a carrying value and redemption value of $ 393.4 million and $ 380.2 million, respectively.

Refer to the table below.

As of March 31, 2025 and December 31, 2024, the fair value of the embedded derivative related to an event of default is zero , as there have been no triggering events.

The Company determined the fair value of the other features requiring bifurcation, both individually and in the aggregate were immaterial at March 31, 2025 and December 31, 2024.

As of June 30, 2025 and December 31, 2024, the fair value of the embedded derivative related to an event of default is zero , as there have been no triggering events.

The Company determined the fair value of the other features requiring bifurcation, both individually and in the aggregate were immaterial at June 30, 2025 and December 31, 2024.

The fair value of these features will be assessed at each reporting date and will be recognized and remeasured at fair value, if material.

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Adjustment to maximum redemptions value — 13,197

Balance as of March 31, 2025 315,789.473684 $ 386,740

Balance as of June 30, 2025 315,789.473684 $ 393,376

Balance as of December 31, 2023 315,789.473684 $ 354,840

Adjustment to maximum redemptions value — 12,385

Balance as of March 31, 2024 315,789.473684 $ 361,029

Balance as of June 30, 2024 315,789.473684 $ 367,225

NOTE 18 – STOCKHOLDERS’ DEFICIT

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Upon vesting of each RSU, the Company will issue one share of Common Stock to the RSU holder.

RSU activity for the three months ended March 31, 2025 and 2024 is as follows:

RSU activity for the six months ended June 30, 2025 and 2024 is as follows:

Awards Weighted average

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Forfeited/Cancelled ( 372,910 ) 4.10

Outstanding as of March 31, 2025 4,413,755 $ 6.43

Outstanding as of June 30, 2025 3,969,372 $ 6.70

Outstanding as of December 31, 2023 6,624,459 $ 8.30

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Forfeited/Cancelled ( 1,673,738 ) 8.29

Outstanding as of March 31, 2024 5,722,283 $ 7.81

The total fair value of RSUs vested during the three months ended March 31, 2025 and 2024 was $ 2.3 million and $ 9.3 million, respectively, based on the closing stock price on the date of vesting.

For the three months ended March 31, 2025 and 2024, the Company recorded stock-based compensation expense related to RSUs of $ 0.3 million and $ 0.4 million, respectively, within Total cost of revenues and $ 1.7 million and $ 5.5 million, respectively, within Selling, general and administrative expense on the Condensed Consolidated Statements of Operations.

As of March 31, 2025, there was $ 15.3 million of unrecognized total compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.6 years.

Outstanding as of June 30, 2024 4,330,458 $ 7.14

The total fair value of RSUs vested during the six months ended June 30, 2025 and 2024 was $ 2.5 million and $ 9.3 million, respectively, based on the closing stock price on the date of vesting.

For the three and six months ended June 30, 2025, the Company recorded stock-based compensation expense related to RSUs of $ 0.3 million and $ 0.6 million, respectively, within Total cost of revenues and $ 1.4 million and $ 3.1 million, respectively, within Selling, general and administrative expense on the Condensed Consolidated Statements of Operations.

For the three and six months ended June 30, 2024, the Company recorded stock-based compensation expense related to RSUs of $ 0.4 million and $ 0.7 million, respectively, within Total cost of revenues and $ 4.1 million and $ 9.6 million, respectively, within Selling, general and administrative expense on the Condensed Consolidated Statements of Operations.

As of June 30, 2025, there was $ 12.3 million of unrecognized total compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.5 years.

Incentive Units

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For the Time-Vesting Incentive Units, compensation cost was recognized over the requisite service period on a straight-line basis.

For the Exit-Vesting Incentive Units, expense will be recognized when a qualifying change of control event is considered probable, which has not occurred as of March 31, 2025.

As of March 31, 2025, 40,404 Exit-Vesting Incentive Units with a weighted-average grant date fair value of $ 0.01 remain outstanding.

For the Exit-Vesting Incentive Units, expense will be recognized when a qualifying change of control event is considered probable, which has not occurred as of June 30, 2025.

As of June 30, 2025, 40,404 Exit-Vesting Incentive Units with a weighted-average grant date fair value of $ 0.01 remain outstanding.

Upon vesting of each Incentive Unit, the Company will issue 0.96246 shares of Common Stock to the Incentive Unit holder.

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The Company also agreed to reimburse the 2025 Agents for certain specified expenses in connection with entering into the 2025 ATM Agreement.

During the three months ended March 31, 2025, the Company did not sell any shares of Common Stock under the 2025 ATM Agreement.

During the six months ended June 30, 2025, the Company did not sell any shares of Common Stock under the 2025 ATM Agreement.

NOTE 19 – RELATED PARTY TRANSACTIONS

For the three months ended March 31, 2025 and 2024, the Company incurred $ 0.6 million in training expenses provided by an entity in which Mr.

Timothy Sheehy, the Company’s founder and former Chief Executive Officer, President and director, has a partial ownership, with zero and $ 0.1 million in related outstanding accounts payable as of March 31, 2025 and December 31, 2024, respectively.

For the three months ended March 31, 2025 and 2024, the Company earned zero and $ 0.1 million, respectively, in revenues related to charter rentals of the Company’s aircraft by the U.S.

As of May 28, 2025, Mr.

Timothy Sheehy, the Company’s founder and former Chief Executive Officer, President and director, has placed his ownership interests in the Company into an independently managed blind trust.

Blind trusts are governed by legal agreements that assign full investment and voting discretion to independent trustees who are neither affiliated with the Company nor under the influence or control of the beneficiaries.

In accordance with ASC 850, the Company evaluated whether the beneficiaries of the blind trusts retain the ability to exercise significant influence over the Company through their ownership or other means.

Based on the structure of the blind trusts, including the absence of decision-making authority or access to information regarding trust-held assets, management has concluded that such trusts do not meet the criteria of a related party under GAAP.

Accordingly, no related party transactions or balances were identified with respect to these blind trusts after the transfer date.

Transactions with the Company prior to the transfer are included in these related party disclosures for the periods presented.

For the three and six months ended June 30, 2025 and 2024, the Company incurred zero and $ 0.6 million in training expenses provided by an entity in which Mr.

Timothy Sheehy has a partial ownership with zero and $ 0.1 million in related outstanding accounts payable as of June 30, 2025 and December 31, 2024, respectively.

The Company earned revenues related to charter rentals of the Company’s aircraft by the U.S.

Senate campaign of Mr.

Timothy Sheehy.

Timothy Sheehy of zero for the three and six months ended June 30, 2025 and $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2024, respectively.

On November 17, 2023, the Company entered into a series of agreements designed to facilitate the purchase and return to service of the Spanish Scoopers originally awarded to our wholly-owned subsidiary, BAE, in September 2023 via a public tender process from the Government of Spain for € 40.3 million.

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Timothy Sheehy.

The Company recorded approximately $ 4.8 million of right-of-use assets, $ 1.3 million of right-of-use current liabilities, and $ 3.4 million of right-of-use noncurrent liabilities as of March 31, 2025, and incurred approximately $ 0.4 million in lease expense for the three months ended March 31, 2025 and 2024.

The Company incurred lease expense of approximately $ 0.3 million and $ 0.7 million for the three and six months ended June 30, 2025, respectively, and $ 0.4 million and $ 0.8 million for the three and six months ended June 30, 2024, respectively.

The Company recorded approximately $ 5.1 million of right-of-use assets, $ 1.3 million of right-of-use current liabilities, and $ 3.8 million of right-of-use noncurrent liabilities as of December 31, 2024.

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The two other related parties of the Company disposed of their holdings as of October 1, 2024.

The Company paid approximately $ 0.6 million in interest to these bond holders during the three months ended March 31, 2024, and incurred approximately $ 0.3 million in interest for the three months ended March 31, 2024.

The Company paid approximately zero and $ 0.6 million in interest to these bond holders during the three and six months ended June 30, 2024, respectively, and incurred approximately $ 0.3 million and $ 0.6 million in interest for the three and six months ended June 30, 2024, respectively.

Refer to “Note 15 – Long-Term Debt” included in this Quarterly Report for additional information on the Series 2022 Bonds.

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Bridger is also subject to taxes in foreign jurisdictions in which it operates.

For the three months ended March 31, 2025, the Company recorded tax expense of $ 0.3 million.

The effective tax rate for the three months ended March 31, 2025 was ( 1.6 )%.

For the three and six months ended June 30, 2025, the Company recorded tax expense of $ 0.2 million and $ 0.4 million, respectively.

The effective tax rate for the three and six months ended June 30, 2025 was ( 1.3 )% and ( 2.9 )%, respectively.

The effective tax rate differs from the statutory rate primarily as a result of having a full valuation allowance in the U.S., a state tax expense accrual in separate company filings with forecasted income, and the impact of forecasted loss in the foreign jurisdiction in which the Company conducts business.

For the three months ended March 31, 2024, the Company recorded a tax expense of $ 14,000 .

The effective tax rate for the three months ended March 31, 2024 was ( 0.7 )%.

The effective tax rate differs from the statutory rate primarily as a result of having a full valuation allowance in the U.S.

and the impact of forecasted loss in the foreign jurisdiction in which the Company conducts business.

For the three and six months ended June 30, 2024, the Company recorded income tax benefit of $ 0.5 million.

The effective tax rate for the three and six months ended June 30, 2024 was 1.6 %.

The Company has assessed the realizability of the net deferred tax assets and in that analysis has considered the relevant positive and negative evidence available to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized.

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federal, state and local income tax returns are currently under examination by the respective taxing authorities.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBBA”).

Among other things, OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation.

Refer to “Note 23 – Subsequent Events” included in this Quarterly Report for additional information on the Company’s consideration of the OBBBA.

NOTE 21 – LOSS PER SHARE

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For the Three Months Ended

June 30, For the Six Months Ended

$s in thousands, except per share amounts 2025 2024 2025 2024

Net loss $ ( 15,538 ) $ ( 20,087 )

Adjustments to Net loss:

Net income (loss) $ 308 $ ( 9,981 ) $ ( 15,230 ) $ ( 30,068 )

Adjustments to Net income (loss):

Series A Preferred Stock—adjustment to maximum redemptions value ( 6,636 ) ( 6,196 ) ( 13,197 ) ( 12,385 )

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For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

Series A Preferred Stock 35,761,440 33,384,123 35,761,440 33,384,123

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These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow revenues and operating margin and the allocation of budget between cost of revenues and selling, general & administrative expenses.

The following table presents selected financial information with respect to the Company’s single operating segment for the three months ended March 31, 2025 and 2024:

The following table presents selected financial information with respect to the Company’s single operating segment for the three and six months ended June 30, 2025 and 2024:

For the Three Months Ended

June 30, For the Six Months Ended June 30,

($s in thousands) 2025 2024 2025 2024

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Total cost of revenues 18,700 9,867 35,907 19,073

Gross loss ( 1,561 ) ( 3,699 )

Depreciation and amortization 1,980 1,290

Gross income (loss) 12,051 3,147 10,490 ( 552 )

Selling, general and administrative expense 6,524 7,902 15,114 19,512

Operating loss ( 10,151 ) ( 15,309 )

Interest income 54 16

Operating income (loss) 5,527 ( 4,755 ) ( 4,624 ) ( 20,064 )

Interest expense ( 5,737 ) ( 5,854 ) ( 11,472 ) ( 11,777 )

Other income 700 144 1,299 1,303

Loss before income taxes ( 15,287 ) ( 20,073 )

Income tax expense ( 251 ) ( 14 )

Net loss $ ( 15,538 ) $ ( 20,087 )

Income (loss) before income taxes 490 ( 10,465 ) ( 14,797 ) ( 30,538 )

Income tax (expense) benefit ( 182 ) 484 ( 433 ) 470

Net income (loss) $ 308 $ ( 9,981 ) $ ( 15,230 ) $ ( 30,068 )

See the Condensed Consolidated Financial Statements for other financial information regarding the Company’s operating segment.

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Additionally, significant expenses, such as cost of revenues and selling, general and administrative expenses, are closely monitored as part of the performance evaluation and resource allocation process.

Total United States revenues were $ 9.7 million and $ 4.5 million for the three months ended March 31, 2025 and 2024, respectively.

Total United States revenues were $ 25.7 million and $ 35.4 million for the three and six months ended June 30, 2025, respectively, and $ 11.2 million and $ 15.7 million for the three and six months ended June 30, 2024, respectively.

Refer to “Note 2 – Summary of Significant Accounting Policies” included in this Quarterly Report on Form 10-Q for additional information about revenue by geographic location.

The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the Condensed Consolidated Balance Sheets were located as follows:

($s in thousands) As of

March 31, 2025 As of

June 30, 2025 As of

December 31, 2024

1 unchanged sentence

Spain 2,098 2,017

NOTE 23 – SUBSEQUENT EVENTS

On July 4, 2025, President Trump signed into law the OBBBA.

Among other things, the OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation.

ASC740, “Income Taxes”, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted.

Consequently, as of the date of enactment, and during the period ended September 30, 2025, the Company will evaluate all deferred tax balances under the newly enacted tax law and identify any other changes required to its financial statements as a result of the OBBBA.

The Company is still evaluating the impact of the OBBBA and the results of such evaluations will be reflected on the Company's Form 10-Q for the quarter ending September 30, 2025 .

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