What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-08-05 compared with 2025-05-08 · 125 added, 67 removed, 109 unchanged (64% of the section changed)

18 unchanged sentences

Contact Centers

In our Contact Centers segment (also known as “The Office Gurus”), which operates in El Salvador, Belize, Jamaica, Dominican Republic, and the United States, we provide outsourced, nearshore business process outsourcing, contact and call-center support services to North American customers.

In our Contact Centers segment (also known as “The Office Gurus”), which operates in El Salvador, Belize, Dominican Republic, the United States and Jamaica until its closure on June 15, 2025, we provide outsourced, nearshore business process outsourcing, contact and call-center support services to North American customers.

These services are also provided internally to the Company’s other two operating segments.

5 unchanged sentences

Global Economic and Political Conditions

During 2025, tariffs impacting certain sources of the Company’s materials and production were enacted by the U.S.

government, including, a higher tariff on finished products from China.

We are monitoring these enacted tariffs and the ongoing negotiations between the U.S.

government and the countries in which we manufacture.

See Item 1, “ NOTE 6 – Contingencies and Geographic Supply Concentrations ,” and "Item 1A — Risk Factors — Recently enacted tariffs may have a material adverse impact on our business.

With the enactment of the tariffs and escalating diplomatic tension between the United States and China it is uncertain how inflation and interest rates will be impacted during 2025.

During 2025, higher tariffs and/or new tariffs impacting certain sources of the Company’s materials and production were imposed by the U.S.

Additionally, the U.S.

has trade agreements and/or preferences with certain countries in Africa, through the African Growth and Opportunity Act ("AGOA"), and with Haiti, through the Haitian Hemispheric Opportunity through Partnership Encouragement Act ("HOPE") and the Haiti Economic Lift Program of 2010 ("HELP"), all of which are set to expire on September 30, 2025, if not renewed or extended.

We are monitoring these imposed tariffs, related ongoing negotiations and the status of the trade agreements and preferences involving the U.S.

government and the countries in which we source and/or manufacture products.

See Item 1, “ NOTE 6 – Contingencies and Geographic Supply Concentrations ,” and "Item 1A — Risk Factors — Recently imposed tariffs may have a material adverse impact on our business.

It is uncertain how inflation and interest rates will be impacted during the remainder of 2025 by the imposition of tariffs and other trade-related actions or inactions.

World events, including the Russia-Ukraine War and the ongoing conflict in the Middle East continue to have negative effects on the global economy.

1 unchanged sentence

Prolonged or recurring disruptions or instability in the United States and global economies, and how the world reacts to those disruptions or instability, could have long-term impacts on our business.

These business impacts could negatively affect us in a number of ways, including, but not limited to, reduced demand for our core products and services, declines in to our revenue and profitability, costs associated with complying with new or amended laws and regulations and mitigating the increased cost of the new tariffs affecting our business, declines in our stock price, reduced availability and less favorable terms of future borrowings, negative impacts on the valuation of our pension obligations, reduced credit-worthiness of our customers, and potential impairment of the carrying value of indefinite-lived intangible assets.

These business impacts could negatively affect us in a number of ways, including, but not limited to, reduced demand for our core products and services, declines in our revenue and profitability, costs associated with complying with new or amended laws and regulations and mitigating the increased cost of the new tariffs affecting our business, declines in our stock price, reduced availability and less favorable terms of future borrowings, negative impacts on the valuation of our pension obligations, reduced credit-worthiness of our customers, and potential impairment of the carrying value of indefinite-lived intangible assets.

Results of Operations

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

For the Three Months Ended March 31,

Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

For the Three Months Ended June 30,

Branded Products

16 unchanged sentences

Interest expense, net

(Loss) income before income tax (benefit) expense

Income tax (benefit) expense

Net (loss) income

Income before income tax expense

Income tax expense

(1) Please refer to "Non-GAAP Financial Measure" below for a reconciliation of EBITDA to net (loss) income.

Net (Loss) Income

The Company generated a net loss of ($0.8) million and income of $3.9 million during the three months ended March 31, 2025 and 2024, respectively.

The decrease in net income during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was primarily due to a decrease in net sales and gross margins at our Branded Products and Healthcare Apparel segments, partially offset by a decrease in interest expense.

EBITDA was $3.5 million and $9.6 million during the three months ended March 31, 2025 and 2024, respectively.

The EBITDA decrease was primarily due to the net loss incurred and the decrease in net sales and gross margins at our Branded Products and Healthcare Apparel segments during the three months ended March 31, 2025.

The Company generated net income of $1.6 million and $0.6 million during the three months ended June 30, 2025 and 2024, respectively.

The increase in net income during the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily due to an increase in net sales and gross margins at our Branded Products segment.

EBITDA was $6.1 million and $5.6 million during the three months ended June 30, 2025 and 2024, respectively.

The EBITDA increase was primarily due to the increase in net sales and gross margins at our Branded Products segment during the three months ended June 30, 2025.

For a reconciliation of EBITDA to net income, its most directly comparable financial measure calculated and presented in accordance with GAAP, please read “Non-GAAP Financial Measure” below.

Net sales for the Company decreased 1.3%, or $1.7 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

The decrease was attributable to a decline in net sales in our Branded Products and Healthcare Apparel reportable segments.

Branded Products net sales decreased 0.7%, or $0.6 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

The decrease was primarily due to volume decreases in branded uniform apparel within existing customer accounts.

Healthcare Apparel net sales decreased 6.8%, or $2.0 million, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

Net sales for the Company increased 9.3%, or $12.3 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

The increase was attributable to increases in net sales in our Branded Products and Healthcare Apparel reportable segments.

Branded Products net sales increased 14.0%, or $11.4 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

The increase was attributable to $8.0 million in timing of orders delivered, $3.8 million of organic expansion with existing large enterprise accounts including higher tariffs and $3.1 million increase resulting from revenue generated by 3 Point following the acquisition in December 2024.

Healthcare Apparel net sales increased 6.2%, or $1.7 million, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

The increase was primarily due to volume increases within existing customer accounts.

Contact Centers net sales decreased 3.4% or $0.9 million, before intersegment eliminations for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

The 3.4% decline versus the year-ago quarter reflects continued macroeconomic headwinds, which continue to contribute to client downsizing and client attrition outpacing new customer acquisitions.

Gross margin rate for the Company was 38.4% for the three months ended June 30, 2025 and 38.5% for the three months ended June 30, 2024.

Gross margin rate for our Branded Products segment was 35.6% for the three months ended June 30, 2025 and 34.6% for the three months ended June 30, 2024.

The increase in the gross margin rate was attributable to customer sales mix for the three months ended June 30, 2025.

Gross margin rate for our Healthcare Apparel segment was 35.5% for the three months ended June 30, 2025 and 38.4% for the three months ended June 30, 2024.

The gross margin rate decreased as compared to the prior year period due to higher cost of goods including the recently enacted higher tariff costs in advance of price increases to our customers.

Gross margin rate for our Contact Centers segment was 52.6% for the three months ended June 30, 2025, up slightly from 52.2% for the three months ended June 30, 2024.

Selling and Administrative Expenses

As a percentage of net sales, total selling and administrative expenses was 36.3% for the three months ended June 30, 2025 and 36.9% for the three months ended June 30, 2024.

As a percentage of net sales, selling and administrative expenses for our Branded Products segment was 27.5% for the three months ended June 30, 2025 and 28.3% for the three months ended June 30, 2024.

The rate decrease was primarily related to net sales increases for the three months ended June 30, 2025.

The increase in selling and administrative expenses of $2.5 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was due to $1.6 million higher employee related costs driven by increased sales and gross margin, an adjustment to credit loss reserves of $0.5 million and increased costs resulting from the acquisition of 3Point in December 2024.

As a percentage of net sales, selling and administrative expenses for our Healthcare Apparel segment was 35.7% for the three months ended June 30, 2025 and 37.2% for the three months ended June 30, 2024.

The rate decrease was primarily related to higher sales in the period ended June 30, 2025.

As a percentage of net sales, selling and administrative expenses for our Contact Centers segment was 48.4% for the three months ended June 30, 2025 and 42.4% for the three months ended June 30, 2024.

The rate increase as compared to the prior year period was primarily driven by an increase in credit loss expense.

Selling and administrative expenses for Other, which represents Corporate costs, decreased primarily due to lower supplemental executive retirement plan expenses.

Interest Expense, Net

Interest expense, net decreased to $1.3 million for the three months ended June 30, 2025 from $1.5 million for three months ended June 30, 2024.

This decrease was due to a lower weighted average interest rate on those borrowings from 6.5% for the three months ended June 30, 2024 to 5.6% for the three months ended June 30, 2025.

Income tax expense increased to $0.3 million for the three months ended June 30, 2025 from $0.1 million for the three months ended June 30, 2024.

The effective tax rate was 15.5% and 7.7% for the three months ended June 30, 2025 and 2024, respectively.

Income tax expense and the effective tax rate for the three months ended June 30, 2025 and June 30, 2024 were primarily impacted by the variability in the mix of earnings across the Company’s foreign and domestic operations, subject to various statutory tax rates in those jurisdictions.

The effective tax rate may vary from quarter to quarter due to discrete, unusual or non-recurring items, the resolution of income tax audits, changes in tax laws, the tax impact from employee share-based payments, or other items.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

For the Six Months Ended June 30,

Branded Products

Healthcare Apparel

Contact Centers

Net intersegment eliminations

Consolidated net sales

Gross margin:

Branded Products

Healthcare Apparel

Contact Centers

Net intersegment eliminations

Consolidated gross margin

Selling and administrative expenses:

Branded Products

Healthcare Apparel

Contact Centers

Intersegment Eliminations

Consolidated selling and administrative expenses

Interest expense, net

Income before income tax expense

Income tax expense

(1) Please refer to "Non-GAAP Financial Measure" below for a reconciliation of EBITDA to net (loss) income.

The Company generated net income of $0.8 million and $4.5 million during the six months ended June 30, 2025 and 2024, respectively.

The decrease in net income during the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was primarily due to higher selling and administrative expenses at our Branded Products and Contact Centers segments and lower margins in our Healthcare Apparel segment, partially offset by an increase in gross margin at our Branded Products segment and a decrease in interest expense.

EBITDA was $9.6 million and $15.2 million during the six months ended June 30, 2025 and 2024, respectively.

The EBITDA decrease was primarily due to higher selling and administrative expenses at our Branded Products and Contact Centers segments and lower margins at our Healthcare Apparel segment, partially offset by an increase in gross margin at our Branded Products segment.

For a reconciliation of EBITDA to net income, its most directly comparable financial measure calculated and presented in accordance with GAAP, please read “Non-GAAP Financial Measure” below.

Net sales for the Company increased 3.9% or $10.6 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

The increase was attributable to an increase in net sales in our Branded Products reportable segment.

Branded Products net sales increased 6.4%, or $10.8 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

The increase was attributable to $8.0 million in timing of orders delivered, $7.8 million of organic expansion with existing large enterprise accounts including higher tariffs and $6.2 million increase resulting from revenue generated by 3 Point following the acquisition in December 2024.

These were partially offset by volume decreases in branded uniform apparel from existing customers.

Healthcare Apparel net sales decreased 0.6% or $0.3 million, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

The decrease was primarily due to volume decreases in institutional apparel within existing customer accounts.

Contact Centers net sales increased 2.9% or $0.7 million, before intersegment eliminations for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

The increase was primarily attributable to a mix of sales growth from new and existing customers.

Gross margin rate for the Company was 36.8% for the three months ended March 31, 2025 and 39.8% for the three months ended March 31, 2024.

The gross margin rate decrease was primarily driven by decreases in our Branded Products and Healthcare Apparel reportable segments.

Gross margin rate for our Branded Products segment was 32.0% for the three months ended March 31, 2025 and 36.5% for the three months ended March 31, 2024.

The gross margin rate decreased as compared to the prior year period was primarily driven by sourcing mix resulting in higher product costs and lower pricing to existing customers.

Gross margin rate for our Healthcare Apparel segment was 37.2% for the three months ended March 31, 2025 and 39.4% for the three months ended March 31, 2024.

The gross margin rate decreased as compared to the prior year period primarily due to higher costs of goods during the current period.

Gross margin rate for our Contact Centers segment was 53.6% for the three months ended March 31, 2025 and 53.7% for the three months ended March 31, 2024.

Contact Centers net sales decreased 0.4% or $0.2 million, before intersegment eliminations for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

The 0.4% decline versus the year-ago period reflects continued macroeconomic headwinds, which continue to contribute to client downsizing and client attrition outpacing new customer acquisitions.

Gross margin rate for the Company was 37.6% for the six months ended June 30, 2025 and 39.2% for the six months ended June 30, 2024.

The gross margin rate decrease was primarily driven by our Healthcare Apparel and Branded Products reportable segments.

Gross margin rate for our Branded Products segment was 33.9% for the six months ended June 30, 2025 and 35.6% for the six months ended June 30, 2024.

The gross margin rate decreased as compared to the prior year period due to sourcing mix resulting in higher product costs and lower pricing to existing customers.

Gross margin rate for our Healthcare Apparel segment was 36.3% for the six months ended June 30, 2025 and 38.9% for the six months ended June 30, 2024.

The gross margin rate decreased as compared to the prior year period primarily driven by higher cost of goods including the recently enacted higher tariff costs in advance of price increases to our customers.

Gross margin rate for our Contact Centers segment was 53.1% for the six months ended June 30, 2025, up slightly from 52.9% for the six months ended June 30, 2024.

Selling and Administrative Expenses

As a percentage of net sales, total selling and administrative expenses was 36.5% for the three months ended March 31, 2025 and 35.2% for the three months ended March 31, 2024.

The rate increase was primarily driven by increases in employee related costs, third-party professional services and expenditures related to marketing and advertising activities.

As a percentage of net sales, selling and administrative expenses for our Branded Products segment was 27.1% for the three months ended March 31, 2025 and 26.8% for the three months ended March 31, 2024.

The rate increase was primarily related to lower net sales in the current period.

As a percentage of net sales, selling and administrative expenses for our Healthcare Apparel segment was 34.9% for the three months ended March 31, 2025 and 33.6% for the three months ended March 31, 2024.

The rate increase was primarily related to lower net sales in the current period

As a percentage of net sales, selling and administrative expenses for our Contact Centers segment was 45.1% for the three months ended March 31, 2025 and 44.2% for the three months ended March 31, 2024.

The rate increased as compared to the prior year period driven by an increase in third party professional service fees in the current period.

Selling and administrative expenses for Other, which represents unallocated Corporate costs, increased by $0.6 million, primarily driven by an increase in employee related costs and third party professional services.

As a percentage of net sales, total selling and administrative expenses was 36.4% for the six months ended June 30, 2025 and 36.0% for the six months ended June 30, 2024.

As a percentage of net sales, selling and administrative expenses for our Branded Products segment was relatively flat at 27.3% for the six months ended June 30, 2025 and 27.5% for the six months ended June 30, 2024.

The increase in selling and administrative expenses of $2.6 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was due to $1.9 million higher employee related costs, driven by increased sales and gross margin, an adjustment to credit loss reserves of $0.5 million and increased costs from 3Point acquired in December 2024.

As a percentage of net sales, selling and administrative expenses for our Healthcare Apparel segment was 35.3% for the six months ended June 30, 2025 and 35.3% for the six months ended June 30, 2024.

As a percentage of net sales, selling and administrative expenses for our Contact Centers segment was 46.7% for the six months ended June 30, 2025 and 43.3% for the six months ended June 30, 2024.

The rate increase as compared to the prior year period was primarily driven by an increase in credit loss expense.

Selling and administrative expenses for Other, which represents Corporate costs, increased by $0.3 million, primarily driven by third party professional fees and stock-based compensation expense during the six months ended June 30, 2025.

Interest Expense, Net

Interest expense, net decreased to $1.2 million for the three months ended March 31, 2025 from $1.8 million for three months ended March 31, 2024.

This decrease was due to a lower weighted average interest rate on those borrowings from 6.6% for the three months ended March 31, 2024 to 5.4% for the three months ended March 31, 2025.

Income tax expense decreased to a benefit of $0.1 million for the three months ended March 31, 2025 from expense of $0.7 million for the three months ended March 31, 2024.

The effective tax rate was 16.3% and 14.8% for the three months ended March 31, 2025 and 2024, respectively.

Income tax benefit, expense and the effective tax rate for the three months ended March 31, 2025 and March 31, 2024 was primarily impacted by the variability in the mix of earnings across the Company’s foreign and domestic operations, subject to various statutory tax rates in those jurisdictions.

Interest expense, net decreased to $2.5 million for the six months ended June 30, 2025 from $3.3 million for six months ended June 30, 2024.

This decrease was due to a lower weighted average interest rate on those borrowings from 6.6% for the six months ended June 30, 2024 to 5.6% for the six months ended June 30, 2025.

Income tax expense decreased to $0.1 million for the six months ended June 30, 2025 from $0.7 million for the six months ended June 30, 2024.

The effective tax rate was 14.7% and 13.9% for the six months ended June 30, 2025 and 2024, respectively.

Income tax expense and the effective tax rate for the six months ended June 30, 2025 and June 30, 2024 were primarily impacted by the variability in the mix of earnings across the Company’s foreign and domestic operations, subject to various statutory tax rates in those jurisdictions.

The tax rates were further favorably impacted by the performance of the Company’s compensation plans during the six months ended June 30, 2025 and June 30, 2024.

14 unchanged sentences

Capital expenditures

Capital expenditures were $1.1 million and $0.7 million for the three months ended March 31, 2025 and 2024, respectively.

Capital expenditures were $2.7 million and $2.0 million for the six months ended June 30, 2025 and 2024, respectively.

Sources of Capital and Liquidity

Cash Flows from Operations

Net cash provided by operating activities primarily results from cash collected from customers for our promotional products, branded uniforms, healthcare apparel and accessories, offset by cash payments made for raw materials, salaries and payroll related benefits, leases and other general corporate expenditures.

For the three months ended March 31, 2025, net cash used in operating activities was $2.0 million.

Lower net sales and cash collections, as well as higher costs of goods sold resulted in net cash used in operating activities.

In addition, inventory increased resulting in a use of cash of $2.2 million.

For the three months ended March 31, 2024, net cash provided by operating activities was $9.4 million.

Net cash provided by operating activities primarily results from cash collected from customers for our promotional products, branded uniforms, healthcare apparel and contact centers, offset by cash payments made for raw materials, finished goods, salaries and payroll related benefits, leases and other general corporate expenditures.

For the six months ended June 30, 2025, net cash provided by operating activities was $2.9 million.

Cash collections from customers exceeded aggregate cash payments to vendors, lessors, employees and lenders.

These cash payments included $10.7 million of cash outflows for inventory purchases, up from the prior year primarily due to the timing of purchases.

For the six months ended June 30, 2024, net cash provided by operating activities was $16.3 million.

Cash collections from customers exceeded aggregate cash payments to vendors, lessors, employees and lenders primarily driven by the Company’s collection of receivable balances and increases in cash inflows for inventory.

2 unchanged sentences

The Company has access to a Revolving Credit Facility with a maximum principal amount of $125.0 million and a term loan in the original aggregate principal amount of $75.0 million and the ability to request incremental revolving credit or term loan facilities in an aggregate amount of up to an additional $75.0 million, subject to obtaining additional lender commitments and satisfying certain other conditions.

For the three months ended March 31, 2025, the Company had $19.0 million in borrowings and $8.0 million in payments on the revolving credit facility.

For the three months ended March 31, 2025, the Company had $1.4 million in payments on the term loan.

For the three months ended March 31, 2024, the Company had $7.0 million in borrowings and $10.0 million in payments on the revolving credit facility.

For the three months ended March 31, 2024, the Company had $0.9 million in payments on the term loan.

For the six months ended June 30, 2025, the Company had $57.0 million in borrowings and $41.0 million in payments on the revolving credit facility.

For the six months ended June 30, 2025, the Company had $2.8 million in payments on the term loan.

For the six months ended June 30, 2024, the Company had $10.0 million in borrowings and $24.0 million in payments on the revolving credit facility.

For the six months ended June 30, 2024, the Company had $1.9 million in payments on the term loan.

In the future, the Company may continue to use credit facilities and other secured and unsecured borrowings as a source of liquidity.

2 unchanged sentences

Dividends and Share Repurchase Program

During the three months ended March 31, 2025 and 2024, the Company paid cash dividends of $2.3 million and $2.3 million, respectively.

During the six months ended June 30, 2025 and 2024, the Company paid cash dividends of $4.5 million and $4.7 million, respectively.

The Company anticipates that it will continue to pay dividends in the future as financial conditions permit.

On March 7, 2025, the Board of Directors approved a new stock repurchase plan which authorizes the Company to repurchase up to an additional $17.5 million worth of its common stock.

This plan became effective during the three months ended March 31, 2025 upon the completion of the previous plan approved by the Board of Directors on August 12, 2024, which had authorized the repurchase of up to $10 million of stock.

On June 19, 2025, the “Company entered into a 10b5-1 trading plan (the “Plan”) for the purpose of repurchasing up to a specified number of shares of the Company’s outstanding common stock (the “Repurchase Limit”) in accordance with the $17.5 million share repurchase program previously authorized by the Company’s Board of Directors, which was announced by the Company on March 11, 2025.

The Plan is intended to comply with Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended.

The Plan allows the Company to repurchase shares up to the Repurchase Limit commencing June 20, 2025 and ending on the earlier of the date on which the Repurchase Limit is reached or other events specified in the Plan.

Repurchases of common stock under the Plan will be administered through an independent broker and are subject to certain price, market, volume and timing constraints specified in the Plan.

Critical Accounting Estimates

8 unchanged sentences

The items excluded to calculate EBITDA are significant components in understanding and assessing the Company’s results of operations.

The presentation of the Company’s EBITDA may change from time to time, including as a result of changed business conditions, new accounting pronouncements or otherwise.

If the presentation changes, the Company undertakes to disclose any change between periods and the reasons underlying that change.

The Company’s EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA in the same manner.

The following table reconciles net (loss) income to EBITDA (in thousands):

Three Months Ended March 31,

Net (loss) income

The following table reconciles net income to EBITDA (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

Interest expense, net

Income tax (benefit) expense

Income tax expense

Depreciation and amortization

7 unchanged sentences

the impact of competition;

uncertainties related to a potential trade war, supply disruptions, inflationary environments (including with respect to shipping costs and the cost of finished goods and raw materials and shipping costs), employment levels (including labor shortages), and general economic and political conditions in the areas of the world in which the Company operates or from which it sources its supplies or the areas of the United States of America ( “ U.S.

uncertainties related to tariffs, duties, trade wars and related matters, supply disruptions, inflationary environments (including with respect to shipping costs and the cost of finished goods and raw materials and shipping costs), employment levels (including labor shortages), and general economic and political conditions in the areas of the world in which the Company operates or from which it sources its supplies or the areas of the United States of America ( “ U.S.

” or “ United States ” ) in which the Company ’ s customers are located;

4 unchanged sentences

the Company ’ s ability to maintain effective internal control over financial reporting;

and other factors described in the Company’s filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section herein and in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 .

Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements.

1 unchanged sentence

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 2. Management’s Discussion and Analysis