What changed in this filing

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Item 1. Financial Statements

2025-11-10 compared with 2025-08-11 · 96 added, 97 removed, 582 unchanged (25% of the section changed)

3 unchanged sentences

(in thousands, except per share data)

September 30,

Current assets:

32 unchanged sentences

Common stock, $ .01 par value, 100,000 shares authorized;

42,978 and 42,621 issued and outstanding, as of June 30, 2025 and December 31, 2024, respectively

42,978 and 42,621 issued and outstanding, as of September 30, 2025 and December 31, 2024, respectively

Additional paid-in capital

6 unchanged sentences

(in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

SALES AND OPERATING REVENUES:

10 unchanged sentences

Total operating expenses

INCOME (LOSS) FROM OPERATIONS

INCOME FROM OPERATIONS

Interest expense (1)

2 unchanged sentences

NET INCOME (LOSS) BEFORE INCOME TAXES

INCOME TAX BENEFIT:

Total income tax benefit

INCOME TAX EXPENSE (BENEFIT):

Total income tax expense (benefit)

NET INCOME (LOSS)

10 unchanged sentences

(in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

33 unchanged sentences

Taxes paid on vesting of RSUs

Net cash used in financing activities

Net cash (used in) provided by financing activities

Increase in cash, cash equivalents, and restricted cash

15 unchanged sentences

Stockholders’

Balance, March 31, 2025

Balance, June 30, 2025

Stock-based compensation

Stock issued on vesting of RSUs

Taxes paid on vesting of RSUs

Balance, June 30, 2025

Balance, September 30, 2025

Balance, December 31, 2024

2 unchanged sentences

Taxes paid on vesting of RSUs

Balance, June 30, 2025

Balance, September 30, 2025

Common Stock Issued

Stockholders’

Balance, March 31, 2024

Stock-based compensation

Stock issued on vesting of RSUs

Taxes paid on vesting of RSUs

Stock issued on redemption of convertible notes

Stock issued in ATM offering

Balance, June 30, 2024

Stock-based compensation

Balance, September 30, 2024

Balance, December 31, 2023

4 unchanged sentences

Stock issued in ATM offering

Balance, June 30, 2024

Balance, September 30, 2024

See accompanying notes to the condensed consolidated financial statements.

18 unchanged sentences

accordingly, certain information and footnote disclosures normally included in generally accepted accounting principles (“GAAP”) financial statements have been condensed or omitted.

The results of operations and cash flows for the three and six months ended June 30, 2025, are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2025.

The results of operations and cash flows for the three and nine months ended September 30, 2025, are not necessarily indicative of the results to be expected for future quarters or for the year ending December 31, 2025.

Our organization and business, the accounting policies we follow, and other information are contained in the notes to our consolidated financial statements filed as part of our 2024 Annual Report on Form 10-K .

30 unchanged sentences

The fair value analysis used assumptions regarding the projected economics of the Coal Operations assets, given prevailing commodity prices and operating expense levels.

For the three and six months ended June 30, 2025, no impairment charges were recorded for long-lived assets.

For the three and nine months ended September 30, 2025, no impairment charges were recorded for long-lived assets.

Inventory is valued at a lower of cost or net realizable value (“NRV”).

As of June 30, 2025, and December 31, 2024, coal inventory includes NRV adjustments of $ 0.1 million and $ 0.3 million, respectively.

As of September 30, 2025, and December 31, 2024, coal inventory includes NRV adjustments of $ 0.1 million and $ 0.3 million, respectively.

During the quarter, as part of the Company’s routine inventory reconciliation process, a downward adjustment of $ 2.6 million was recorded to coal inventory.

On June 27, 2025, the Company executed the Third Amendment (“Third Amendment”) to the Fourth Amended and Restated Credit Agreement, dated as of August 2, 2023 (as amended, the “Credit Agreement”), with PNC Bank, National Association (in its capacity as administrative agent, "PNC"), which was accounted for as a debt modification.

2 unchanged sentences

During the second quarter of 2025, the Company entered into a $ 35.0 million prepaid forward power sales contract, as noted in “Note 7 – Revenue” of which $ 19.0 million of the proceeds were deposited into a money market account with the administrative agent.

The compensating balance is classified as “restricted cash” on the condensed consolidated balance sheets at June 30, 2025.

The compensating balance is classified as “restricted cash” on the condensed consolidated balance sheets at September 30, 2025.

As part of the Third Amendment, the required October 2025 principal payment of $ 6.0 million and the January 2026 principal payment of $ 6.5 million, pursuant to the Term Loan, are both now due in January 2026.

2 unchanged sentences

Furthermore, the Third Amendment defines certain administrative changes which include, among other things modifications to the required timelines related to reporting and the removal of third-party financial advisors.

Bank debt increased by $ 1.0 million during the six months ended June 30, 2025.

Bank debt totaled $ 45.0 million and is comprised of our Term Loan ( $ 19.0 million as of June 30, 2025) and a $ 75.0 million revolver ( $ 26.0 million borrowed as of June 30, 2025) under the Credit Agreement.

On a net basis, bank debt did not change during the nine months ended September 30, 2025.

Bank debt totaled $ 44.0 million as of September 30, 2025 and is comprised of our Term Loan ( $ 19.0 million as of September 30, 2025) and a $ 75.0 million revolver ( $ 25.0 million borrowed as of September 30, 2025) under the Credit Agreement.

Our debt is recorded at amortized cost, which approximates fair value due to the variable interest rates in the agreement and is collateralized primarily by our assets.

As of June 30, 2025, we had additional borrowing capacity of $ 32.8 million under the revolver and total liquidity of $ 42.0 million.

Our additional borrowing capacity is net of $ 16.2 million in outstanding letters of credit as of June 30, 2025 that were required to maintain surety bonds and other credit support obligations .

Liquidity consists of our additional borrowing capacity and cash and cash equivalents.

As of September 30, 2025, we had additional borrowing capacity of $ 33.8 million under the revolver and total liquidity of $ 46.4 million.

Our additional borrowing capacity is net of $ 16.2 million in outstanding letters of credit as of September 30, 2025 that were required to maintain surety bonds and other credit support obligations .

Liquidity consists of our additional borrowing capacity and unrestricted cash and cash equivalents.

The Company is currently in discussions with members of its existing bank group and other lenders to refinance our current Credit Agreement.

The revolving credit facility matures July 31, 2026 and our Term Loan matures March 31, 2026.

The revolving credit facility matures August 2, 2026 and our Term Loan matures March 31, 2026.

The balance of the Term Loan is scheduled to be repaid in January 2026 and March 2026, utilizing restricted cash as set forth in the Third Amendment.

As such, the Term Loan is listed as current on the June 30, 2025 condensed consolidated balance sheet.

While no definitive agreement has been reached as of the reporting date, management believes it is probable that the Credit Agreement will be refinanced on market terms and conditions for similar situated borrowers and consistent with the existing Credit Agreement.

As such, our revolving credit facility and Term Loan are listed as current on the September 30, 2025 condensed consolidated balance sheets.

While no definitive agreement has been reached as of the reporting date, management believes it is probable that the Credit Agreement will be refinanced on market terms and conditions for similarly situated borrowers and consistent with the existing Credit Agreement.

However, there can be no assurance that such efforts will be successful or completed on favorable terms.

3 unchanged sentences

These unamortized bank fees were deferred and are being amortized over the term of the loan.

Unamortized bank fees as of June 30, 2025, and December 31, 2024, were $ 1.9 million and $ 2.5 million, respectively.

Unused borrowing capacity under the facility was $ 32.8 million as of June 30, 2025.

Unamortized bank fees as of September 30, 2025, and December 31, 2024, were $ 1.3 million and $ 2.5 million, respectively.

Unused borrowing capacity under the facility was $ 33.8 million as of September 30, 2025.

Commitment fees on the unused portion of the facility are 0.50 % per annum.

Bank debt, less debt issuance costs, is presented below (in thousands):

September 30,

Current bank debt

11 unchanged sentences

The Debt Service Coverage Ratio requirement was changed to 3.25 to 1.00 as long as the Company maintains the required compensating balance, if not, remains at 1.25 to 1.00.

The Third Amendment removed the First Lien Leverage Ratio while maintaining the minimum liquidity requirement of $ 10.0 million, as defined in the First Amendment to the Credit Agreement.

As of June 30, 2025, we were in compliance with all other covenants defined in the Credit Agreement.

The Third Amendment removed the First Lien Leverage Ratio (as defined in the First Amendment to the Credit Agreement) while maintaining the minimum liquidity requirement of $ 10.0 million.

As of September 30, 2025, we were in compliance with all covenants defined in the Credit Agreement.

Interest Rate

The interest rate on the facility ranges from secured overnight financing rate (“SOFR”) plus 4.00 % to SOFR plus 5.00 %, depending on our Leverage Ratio.

As of June 30, 2025, we were paying SOFR plus 5.00 % on the outstanding bank debt which equates to an all-in rate of 9.43 %.

As of September 30, 2025, we were paying SOFR plus 5.00 % on the outstanding bank debt which equates to an all-in rate of 9.27 %.

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consist of the following for the indicated dates (in thousands):

September 30,

Accounts payable

32 unchanged sentences

Electric Operations

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Delivered energy (including contract liability amortization)

1 unchanged sentence

Coal Operations

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Outside third-party Indiana customers

5 unchanged sentences

We also concluded that the stand-ready obligation to be available to provide electricity is capable of being distinct as each unit of capacity provides an economic benefit to the holder and could be sold by the customer.

During the second quarter of 2025, we entered into a 17-month , $ 35.0 million prepaid physically delivered power contract in which Hallador will provide a total of 971,088 MWh to be delivered at various periods starting in July 2025 through November 2026.

As the total amount paid up-front by the customer differs from the stand-alone selling price of the transferred power, the Company concluded the contract contains a significant financing component.

The contract liability associated with the $ 35.0 million prepayment will be accreted over the agreement term based upon the Company’s incremental borrowing rate which approximates 9.50 %, and the accretion will be separately recognized as interest expense.

During the second quarter of 2025, we entered into a 17-month , $ 35.0 million prepaid physically delivered power contract with energy to be delivered at various periods starting in July 2025 through November 2026.

During the third quarter of 2025, we entered into a 5-month , $ 20.0 million prepaid physically delivered power contract with energy to be delivered January 2027 through May 2027.

As the total amounts paid upfront by the customers differ from the stand-alone selling price of the transferred power, the Company concluded the contracts contain a significant financing component.

The contract liabilities associated with the prepayments will be accreted over the agreement term based upon the Company’s incremental borrowing rates at the time of the contract which approximates 9.50 % and 9.92 % for the respective contracts, and the accretion is separately recognized as interest expense.

Coal Operations

3 unchanged sentences

We consider each ton of coal a separate performance obligation and allocate the transaction price based on the base price per the contract, increased or decreased for quality adjustments.

The following table illustrates the balance of all current Electric and Coal Operations contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of June 30, 2025 and disaggregated by segment and contract duration.

The following table illustrates the balance of all current Electric and Coal Operations contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of September 30, 2025 and disaggregated by segment and contract duration.

Delivered energy revenues

12 unchanged sentences

The following table shows our beginning and ending accounts receivable from contracts with customers balance for the periods presented (in thousands):

September 30,

Accounts receivable from contracts with customers - beginning balance

2 unchanged sentences

The following table reconciles our beginning and ending contract liabilities for the periods presented (in thousands):

September 30,

Total contract liabilities - beginning balance

4 unchanged sentences

Total contract liabilities - ending balance

For the six months ended June 30, 2025 and 2024, we recorded income taxes using an estimated annual effective tax rate based upon projected annual income (loss), forecasted permanent tax differences, discrete items, and statutory rates in states in which we operate.

The effective tax rate for the six months ended June 30, 2025 and 2024, was ~ 0 % due to recording of a full valuation allowance and ~ 23 %, respectively.

For the nine months ended September 30, 2025 and 2024, we recorded income taxes using an estimated annual effective tax rate based upon projected annual income (loss), forecasted permanent tax differences, discrete items, and statutory rates in states in which we operate.

The effective tax rate for the nine months ended September 30, 2025 and 2024, was ~ 0 % due to recording of a full valuation allowance and ~ 24 %, respectively.

Historically, our actual effective tax rates have differed from the statutory effective rate primarily due to the benefit received from statutory percentage depletion in excess of tax basis.

The deduction for statutory percentage depletion does not necessarily change proportionately to changes in income (loss) before income taxes.

On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) was enacted.

The OBBBA includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international), expanding certain Inflation Reduction Act incentives, and accelerating the phase-out of or repealing others.

We have analyzed the provisions within the act and determined that the benefits relating to capital expenditures and deductibility of interest under IRC Section 163(j) will provide cash flow benefits to the company in 2025 by accelerating deductions for tax purposes.

As the material benefits relate to the timing of deductions, there were no material impact affecting the effective tax rate or the valuation allowance determination in the third quarter of 2025.

STOCK COMPENSATION PLANS

Non-vested grants as of December 31, 2024

Vested - weighted average share price on vested date was $ 12.28

Non-vested grants as of June 30, 2025

For the three and six months ended June 30, 2025, our stock compensation expense was $ 0.5 million and $ 1.6 million, respectively.

For the three and six months ended June 30, 2024, our stock compensation expense was $ 1.6 million and $ 2.2 million, respectively.

Non-vested grants as of September 30, 2025

For the three and nine months ended September 30, 2025, our stock compensation expense was $ 0.6 million and $ 2.1 million, respectively.

For the three and nine months ended September 30, 2024, our stock compensation expense was $ 1.1 million and $ 3.3 million, respectively.

Non-vested RSU grants will vest as follows:

The outstanding RSUs have a value of $ 8.1 million based on the June 30, 2025 closing stock price of $ 15.83 .

As noted in our Form 8-K filed with the SEC on June 2, 2025, on May 29, 2025, shareholders approved the Second Amended and Restated 2008 Restricted Stock Unit Plan (the “RSU Plan”) which, (i) increased the number of shares available for issuance by 2,000,000 shares, and (ii) extended the term of the RSU Plan until May 29, 2035.

As of June 30, 2025, unrecognized stock compensation expense to be recognized over the rolling 3 -year vesting period is $ 1.0 million, and we had 2,219,819 RSUs available for future issuance.

As of September 30, 2025, unrecognized stock compensation expense to be recognized over the rolling 3 -year vesting period is $ 6.4 million, and we had 1,897,154 RSUs available for future issuance.

RSUs are not allocated earnings and losses as they are considered non-participating securities.

3 unchanged sentences

The Company records a liability for self-insured risks when a loss is both probable and reasonably estimable.

The Company had no accrual for self-insurance liabilities as of June 30, 2025 or December 31, 2024.

The Company had no accrual for self-insurance liabilities as of September 30, 2025 or December 31, 2024.

The Company also self-insures for workers’ compensation claims under a guaranteed cost program.

Under this program, the Company is responsible for the first $ 1.0 million per claim up to an aggregate of $ 4.0 million annually.

The Company has restricted cash of $ 23.1 million and $ 3.4 million as of June 30, 2025, and December 31, 2024, respectively, which represents cash held and controlled by third parties and is restricted primarily for future workers’ compensation claim payments and the $ 19.0 million compensating balance on our Term Loan (as discussed in “Note 5 – Bank Debt” above).

The Company had $ 5.3 million and $ 4.3 million of workers’ compensation reserve as of June 30, 2025 and December 31, 2024 , respectively, in “accounts payable and accrued liabilities” on the condensed consolidated balance sheets.

The Company has restricted cash of $ 22.8 million and $ 4.9 million as of September 30, 2025, and December 31, 2024, respectively, which represents cash held and controlled by third parties and is restricted primarily for future workers’ compensation claim payments and the $ 19.0 million compensating balance on our Term Loan (as discussed in “Note 5 – Bank Debt” above).

The Company had $ 5.4 million and $ 4.3 million of workers’ compensation reserve as of September 30, 2025 and December 31, 2024 , respectively, in “accounts payable and accrued liabilities” on the condensed consolidated balance sheets.

FAIR VALUE MEASUREMENTS

4 unchanged sentences

Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

We consider active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

We consider active markets as those in which transactions for the assets or liabilities

occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

We have no Level 1 instruments.

9 unchanged sentences

The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents, and restricted cash.

The Company’s cash and cash equivalent and restricted cash balances on deposit with financial institutions total $ 32.4 million and $ 12.2 million as of June 30, 2025 and December 31, 2024, respectively, which exceeded FDIC insured limits.

The Company’s cash and cash equivalent and restricted cash balances on deposit with financial institutions total $ 35.5 million and $ 12.2 million as of September 30, 2025 and December 31, 2024, respectively, which exceeded FDIC insured limits.

The Company regularly monitors these institutions’ financial condition.

4 unchanged sentences

Sunrise Energy, LLC, also plans to develop and explore for oil, natural gas, and coal-bed methane gas reserves on or near our underground coal reserves.

The carrying value of the investment included in our condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, was $ 2.2 million and $ 2.1 million, respectively.

The carrying value of the investment included in our condensed consolidated balance sheets as of September 30, 2025, and December 31, 2024, was $ 2.0 million and $ 2.1 million, respectively.

The Company also owns a 50 % interest in Oaktown Gas, LLC.

Oaktown Gas, LLC operates an emission abatement project through the destruction of gases extracted from the Oaktown mines to generate carbon credits and other emissions offset credits.

The carrying value of the investment included in the condensed consolidated balance sheets as of June 30, 2025, and December 31, 2024, was $ 0.7 million and $ 0.5 million, respectively.

The carrying value of the investment included in the condensed consolidated balance sheets as of September 30, 2025, and December 31, 2024, was $ 0.7 million and $ 0.5 million, respectively.

ORGANIZATIONAL RESTRUCTURING

3 unchanged sentences

This step helped advance our transition from a company primarily focused on coal production to a more resilient and diversified integrated independent power producer (“IPP”).

As part of this initiative, we substantially idled production at our higher cost surface mines, Prosperity Mine and Freelandville Mine, with minimal ongoing production.

As part of this initiative, we substantially idled production at our higher cost surface mines, Prosperity Mine and Freelandville Mine, with minimal

ongoing production.

We also focused our seven units of underground equipment on four units of our lowest cost production at our Oaktown Mine.

5 unchanged sentences

(i) Electric Operations and (ii) Coal Operations.

The Chief Operating Decision Maker (“CODM”), who is the Company’s Chief Executive Officer, reviews and assesses operating performance measures related to our Electric Operations and our Coal Operations segments.

The CODM, who is the Company’s Chief Executive Officer, reviews and assesses operating performance measures related to our Electric Operations and our Coal Operations segments.

Our Electric Operations segment includes the electric power generation facilities of our Merom power plant, which is a two unit, 1080 -megawatt rated coal fired power plant located in Sullivan County, Indiana.

10 unchanged sentences

EBITDA margin is calculated for each segment as follows:

For our Electric Operations segment, EBITDA margin is comprised of delivered energy revenues less certain significant segment expenses, which include (i) variable costs, (ii) other operating and maintenance costs, (iii) costs of purchased power, (iv) utilities, (v) labor and (vi) general and administrative costs.

(i) Variable operating costs are comprised of fuel costs and certain other operating costs, such as limestone and soda ash.

For our Electric Operations segment, EBITDA margin is comprised of delivered energy revenues less certain significant segment expenses, which include (i) variable costs are comprised of fuel costs and certain other operating costs, such as limestone and soda ash, (ii) other operating and maintenance costs, (iii) costs of purchased power, (iv) utilities, (v) labor and (vi) general and administrative costs.

For our Coal Operations segment, EBITDA margin is comprised of coal sales less certain significant segment expenses, which include (i) fuel, (ii) other operating and maintenance costs, (iii) utilities, (iv) labor and (v) general and administrative costs.

2 unchanged sentences

Our CODM reviews variable costs, as defined above, in our Electric Operations segment in order to evaluate the efficiency of that segments operations.

Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the three months ended June 30, 2025 (in thousands):

Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the three months ended September 30, 2025 (in thousands):

Electric Operations

16 unchanged sentences

(2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable as discussed above in (1).

Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the three months ended June 30, 2024 (in thousands):

Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the three months ended September 30, 2024 (in thousands):

Electric Operations

16 unchanged sentences

(2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable as discussed above in (1).

Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the six months ended June 30, 2025 (in thousands):

Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the nine months ended September 30, 2025 (in thousands):

Electric Operations

16 unchanged sentences

(2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable as discussed above in (1).

Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the six months ended June 30, 2024 (in thousands):

Presented below are the Electric and Coal Operations key metrics reviewed by the CODM for the nine months ended September 30, 2024 (in thousands):

Electric Operations

16 unchanged sentences

(2) Other operating and maintenance costs include all other operating and maintenance costs with the exceptions of those costs considered variable as discussed above in (1).

Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the three months ended June 30, 2025 (in thousands):

Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the three months ended September 30, 2025 (in thousands):

Corporate and Other

5 unchanged sentences

Capacity Revenue

Other Operating Revenue

Other Revenue

Coal Sales (Third-Party)

1 unchanged sentence

Operating Revenues

Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the three months ended June 30, 2024 (in thousands):

Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the three months ended September 30, 2024 (in thousands):

Corporate and Other

5 unchanged sentences

Capacity Revenue

Other Operating Revenue

Other Revenue

Coal Sales (Third-Party)

1 unchanged sentence

Operating Revenues

Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the six months ended June 30, 2025 (in thousands):

Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the nine months ended September 30, 2025 (in thousands):

Corporate and Other

5 unchanged sentences

Capacity Revenue

Other Operating Revenue

Other Revenue

Coal Sales (Third-Party)

1 unchanged sentence

Operating Revenues

Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the six months ended June 30, 2024 (in thousands):

Presented below are the Electric and Coal Operations revenues reconciled to our consolidated operating revenues for the nine months ended September 30, 2024 (in thousands):

Corporate and Other

5 unchanged sentences

Capacity Revenue

Other Operating Revenue

Other Revenue

Coal Sales (Third-Party)

1 unchanged sentence

Operating Revenues

Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes for the three months ended June 30, 2025 (in thousands):

Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes for the three months ended September 30, 2025 (in thousands):

Reconciliation of Income (Loss)

15 unchanged sentences

Income (Loss) before Income Taxes

(1) Depreciation, Depletion and Amortization for Coal Operations includes a $ 4.8 million out-of-period adjustment resulting in decreased expense during the second quarter of 2025 due to an overestimate of depreciation, depletion and amortization expense in the first quarter 2025.

Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes for the three months ended June 30, 2024 (in thousands):

Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes for the three months ended September 30, 2024 (in thousands):

Reconciliation of Income (Loss)

18 unchanged sentences

Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before

income taxes for the six months ended June 30, 2025 (in thousands):

income taxes for the nine months ended September 30, 2025 (in thousands):

Reconciliation of Income (Loss)

15 unchanged sentences

Income (Loss) before Income Taxes

Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes for the six months ended June 30, 2024 (in thousands):

Presented below is our reconciliation of EBITDA Margin to the most comparable GAAP account, income (loss) before income taxes for the nine months ended September 30, 2024 (in thousands):

Reconciliation of Income (Loss)

23 unchanged sentences

and Eliminations

Assets at June 30, 2025

Assets at September 30, 2025

Assets at December 31, 2024

Capital Expenditures at June 30, 2025

Capital Expenditures at September 30, 2025

Presented below are our Electric and Coal Operations assets and capital expenditures for the periods presented below (in thousands):

4 unchanged sentences

and Eliminations

Assets at June 30, 2024

Assets at September 30, 2024

Assets at December 31, 2023

Capital Expenditures at June 30, 2024

Capital Expenditures at September 30, 2024

NET INCOME (LOSS) PER SHARE

The following table (in thousands, except per share amounts) sets forth the computation of basic earnings (loss) per share for the periods indicated:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Basic earnings per common share:

3 unchanged sentences

The following table (in thousands, except per share amounts) sets forth the computation of diluted net income (loss) per share:

Three Months Ended June 30,

Six Months Ended June 30,

Three Months Ended September 30,

Nine Months Ended September 30,

Diluted earnings per common share:

6 unchanged sentences

Our Coal Operations subsidiary is party to litigation in which the plaintiffs allege violations of the Fair Labor Standards Act and state law due to alleged failure to compensate for time "donning" and "doffing" equipment and to account for certain bonuses in the calculation of overtime rates and pay.

In January 2025, we agreed to settle with the plaintiffs such litigation for $ 2.8 million, which was recorded in “operating expenses” on our consolidated statements of operations for the year ended December 31, 2024 and is in “accounts payable and accrued liabilities” on our condensed consolidated balance sheets at June 30, 2025.

SUBSEQUENT EVENTS

On July 1, 2025, the Company amended a third party customer’s coal supply sales agreement increasing contractual tons delivered by 0.3 million and 0.1 million, or $ 13.0 million and $ 2.6 million in revenue, for 2025 and 2026, respectively.

On July 4, 2025, the U.S.

H.R.1, an act to provide for reconciliation pursuant to title II of H.

(“the OBBBA”) was enacted.

The OBBBA introduces multiple tax law and other legislative changes, including modifications to income tax provisions such as domestic research and development expenses, capital expenditures, and U.S.

taxation of international earnings;

the repeal or acceleration of the sunset of certain tax credits under the 2022 Inflation Reduction Act and elimination of certain penalties for violations of certain regulatory credit programs.

The Company is analyzing the potential impacts of this legislation on its business and does not anticipate there to be a material impact as a result.

During the third quarter of 2025, $ 2.7 million was transferred into an escrow account while the settlement is pending court approval of the settlement terms.

At September 30, 2025, $ 0.1 million related to the settlements remains in “accounts payable and accrued liabilities” on our condensed consolidated balance sheets at 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