Blog

First Quarterly Results as a Nasdaq-Listed Company Mark Milestone Period of Growth

INDIANAPOLIS, INDIANA / ACCESS Newswire / August 14, 2025 / Arrive AI (NASDAQ:ARAI), an autonomous delivery network anchored by patented AI-powered Arrive Points™, today reported results for the second quarter of 2025 – its first quarter concluded as a public company.

Q2 2025 Highlights

• IP Leadership: Secured U.S. patent protection for climate-assisted Arrive Points, bringing total issued patents to eight; filed additional patents for climate optimization, adaptive access control and drone landing coordination.

Financial Results

• Positive Cash Flow – ending the quarter with $607,000 cash on hand and nearly full access to the rest of the new $40 million capital facility.

CEO Commentary

“Our second quarter was about turning vision into tangible action,” said CEO Dan O’Toole. “We moved from R&D to putting our Arrive Points into the field, engaging real-world users, and proving our technology is not just innovative; it’s operational. We’re building the nervous system for a new era of automated logistics, one where packages arrive securely, intelligently, and precisely where they are needed.”

O’Toole added, “Our recent capital raise gives us the financial flexibility and runway to execute without near-term liquidity pressure and federal rulemaking plans indicate important flexibility in drone usage is coming. We are committed to our disciplined investment strategy and business model, have the right team, the right technology, and a clear vision to create enduring value for our shareholders. We are continuing to protect our first-position, foundational patent, as well, as we build for scale, impact and legacy.”

Strategic Focus Areas

1. Productization & Operational Excellence: Scaling AP3 units -the company’s patented, temperature-assisted AI-powered smart mailbox endpoints -to lower costs and accelerate repeatable deployments.

2. IP & Partnerships: Expanding patent portfolio and embedding technology through strategic industry alliances.

3. Recurring Revenue Model: Establishing platform-as-a-service agreements where revenue grows with each delivery, data point, and Arrive Point deployed.

2025 Priorities

• AI Innovation: Advancing low-cost, edge AI analytics-such as time-of-flight sensor applications-to optimize delivery efficiency without high computational costs.

“If you’ve believed in our vision and opportunity, you’re going to love where we’re headed,” O’Toole said.

SECOND QUARTER CONFERENCE CALL

The company will host a conference call and webcast today at 4:30 PM Eastern Time to review its results and strategic progress. Please join the webcast live via this link: https://edge.media-server.com/mmc/p/psy2vzvk. Webcast participants will be able to submit questions through the webcast portal. A replay of the call will be accessible on https://www.arriveai.com/investor-relations.

-30-

About Arrive AI
Arrive AI (NASDAQ:ARAI) is a leader in autonomous delivery infrastructure, developing AI-powered Arrive Points™ to serve as secure, climate-assisted endpoints for package delivery by drones, robots, and conventional carriers. Learn more at https://www.arriveai.com and via the company’s press kit.

Media contact: Cheryl Reed, media@arriveai.com

Investor Relations Contact: Alliance Advisors IR, ARAI.IR@allianceadvisors.com

Cautionary Note Regarding Forward Looking Statements

This news release and statements of Arrive AI’s management in connection with this news release or related events contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements (including statements related to the closing, and the anticipated benefits to the Company, of the private placement described herein) related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would”, “optimistic” or “may” and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors which may be beyond our control. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Potential investors should review Arrive AI’s Registration Statement and other filings with the Securities and Exchange Commission, for more complete information, including the risk factors that may affect future results, which are available for review at www.sec.gov. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

ARRIVE AI INC.
CONDENSED BALANCE SHEETS
(Unaudited)

See condensed notes to unaudited financial statements included in Form 10-Q.

ARRIVE AI INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

See condensed notes to unaudited financial statements included in Form 10-Q.

ARRIVE AI INC.
CONDENSED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2025 and 2024 (Unaudited)

See condensed notes to unaudited financial statements included in Form 10-Q.

SOURCE: Arrive AI Inc.

View the original press release on ACCESS Newswire

STONY BROOK, NY / ACCESS Newswire / August 14, 2025 / Applied DNA Sciences, Inc. (NASDAQ:APDN) (“Applied DNA” or the “Company”), a biotechnology company focused on providing nucleic acid production solutions for the biopharmaceutical and diagnostics industries, today reported financial results for its third quarter of fiscal 2025 ended June 30, 2025. The Company’s Form 10-Q for its fiscal third quarter can be viewed on the SEC Filings page of its Investor Relations website. The Company will not host a conference call to discuss these results. Applied DNA investor relations remains available for questions at investors@adnas.com .

Following its previously announced recent restructuring and workforce reductions (“Corporate Actions”), the Company, through its majority-owned LineaRx, Inc. subsidiary, has transitioned to a pure play provider of synthetic DNA and mRNA manufacturing solutions for advanced biotherapeutics, such as gene therapies, personalized medicine, adoptive cell therapies, messenger RNA (mRNA) therapeutics, and DNA vaccines, as well as diagnostic applications that utilize chemically-modified DNA. The Company is commercializing three distinct and complementary technology solutions for DNA production:

• LineaDNA™: A proprietary, cell-free DNA production platform that uses a large-scale PCR process to rapidly and efficiently produce high-fidelity, synthetic DNA as a market-ready alternative to plasmid DNA (pDNA). LineaDNA is applicable to biotherapeutics development and production, serving as the starting material for mRNA therapeutics and vaccines and as a critical component in numerous in vitro diagnostics (IVDs).

• LineaRNAP™: A next-generation T7 RNA polymerase (RNAP) used to transcribe DNA into mRNA. Designed as a direct replacement for wild-type T7 RNAP currently utilized in conventional IVT mRNA systems that use synthetic or pDNA templates, LineaRNAP incorporates a patented DNA-binding domain that delivers high mRNA yields while reducing double-stranded RNA (dsRNA) contamination, the latter a common byproduct in mRNA production.

• LineaIVT™: An integrated system that combines the LineaDNA and LineaRNAP technologies and their respective benefits. For mRNA manufacturers, we believe LineaIVT offers reduced dsRNA contamination and expedited mRNA drug substance production, among other advantages.

Management Commentary

“Our operational activities center on repositioning Applied DNA as a single business that is aligned with our proven core competencies, which underpin our commercially available, cell-free DNA and mRNA manufacturing solutions offerings. With operations now right-sized, coupled with active marketing under the LineaRx brand that is now synonymous with synthetically produced DNA, we look forward to delivering value to shareholders,” stated Judy Murrah, chairperson, president, and CEO of Applied DNA.

Recent Corporate and Operational Updates

Financial

• Monthly net cash burn from operations in the reported quarter declined approximately 19% on a sequential basis and 25% compared to the prior year period due to cost-cutting and optimization initiatives implemented in prior quarters. The Company expects a further reduction in the quarter ending September 30, 2025, reflecting the implementation of Corporate Actions.

Customer Acquisition and Repeat Orders

• Received a multi-gram follow-on order for LineaDNA valued at over $600 thousand from a global manufacturer of IVDs for use in a cancer diagnostic application.

• Added a U.S.-based mRNA contract development manufacturing organization as a customer for LineaDNA IVT templates. This customer is also evaluating LineaRNAP.

• Shipped multiple LineaDNA sequences to a U.S.-based developer of a novel vaccine delivery system.

• Subsequent to quarter-end, sales quotes were provided to a large public biotech and a multinational biotech tools company for LineaDNA to be used in gene editing applications.

Product and Platform Development

• Launched the LineaRx IVT Discovery Kit, which enables potential customers to easily and rapidly evaluate the benefits of LineaDNA and LineaIVT performance against conventional mRNA production methods.

• Launched industry marketing for LineaRNAP as a standalone product based on recent Company data confirming that LineaRNAP can be used in conventional mRNA production workflows to enable higher mRNA yields and integrity with reduced dsRNA as compared with conventional wild-type T7 RNAP. The Company also continues to market LineaRNAP as a component of its integrated LineaIVT solution.

• Initiated ISO 13485 certification, an internationally recognized quality management standard aligned with GMP, to enhance customer trust, expand market opportunities, and elevate LineaRx’s competitive position. The Company expects to be ISO 13485-certified in the first quarter of fiscal 2026.

• Participated in multiple mRNA-focused conferences to engage potential customers and showcase its platforms’ capabilities as part of LineaRx’s ongoing sales and marketing strategy.

Third Quarter Fiscal 2025 Financial Highlights

As part of the Corporate Actions, the Company announced the closure of its MDx Testing Services business segment (Applied DNA Clinical Labs) to focus exclusively on LineaRx. Financial results for the reported and prior periods have been recast to separately report discontinued operations and the results of continuing operations.

In February 2025, the Company announced the wind down of its DNA Tagging and Security Products and Services business segment and continues to terminate business activities in this segment in accordance with customer agreements. Financial results for this segment are included in the results of continuing operations for the reported and prior periods.

Please refer to segment information detailed in the ‘Note H – Segment Information’ section of the Form 10-Q for the period reported for more information.

On March 13, 2025, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-fifty (1:50) reverse stock split of its common stock, par value $0.001 per share, effective March 14, 2025. On May 29, 2025, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-fifteen (1:15) reverse stock split of its common stock, par value $0.001 per share, effective June 2, 2025. All warrant, option, share, and per share information in this press release gives retroactive effect to these reverse stock splits.

Summary Financial Results

• Total revenues: $304 thousand compared to $473 thousand in the third quarter of fiscal 2024.

• Operating loss: $3.7 million, compared to an operating loss of $3.3 million in the prior period.

• Adjusted EBITDA: Negative $3.9 million, compared to negative $3.2 million in the prior period.

• Monthly net cash burn: Monthly net cash burn from operations in the reported period was $934 thousand, compared to $1.15 million in the second quarter of fiscal 2025 and $1.25 million in the prior fiscal year period.

• Cash and cash equivalents as of June 30, 2025: $4.7 million, which includes $723 thousand of proceeds from the exercise of Series A warrants received during the reported period. Additional proceeds totaling $292 thousand were received subsequent to the reported period from the exercise of Series A warrants.

Information about Non-GAAP Financial Measures

As used herein, “GAAP” refers to accounting principles generally accepted in the United States of America. To supplement our condensed consolidated financial statements prepared and presented in accordance with GAAP, this earnings release includes Adjusted EBITDA and monthly net cash burn from operations, which are non-GAAP financial measures as defined in Rule 101 of Regulation G promulgated by the Securities and Exchange Commission. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information presented in accordance with GAAP. We use this non-GAAP financial measure for internal financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons of the performance and results of operations of our core businesses. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the performance of our businesses by excluding non-cash expenses that may not be indicative of our recurring operating results. We believe these non-GAAP financial measures are useful to investors as they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

“EBITDA” – is defined as earnings (loss) before interest expense, income tax expense and depreciation and amortization expense.

“Adjusted EBITDA” – is defined as EBITDA adjusted to exclude (i) stock-based compensation and (ii) other non-cash expenses and non-cash gains/income.

“Monthly net cash burn” – is defined as total monthly cash outflow, including all operating costs, reduced by cash inflow from revenue.

About Applied DNA Sciences

Applied DNA Sciences is a biotechnology company focused on providing nucleic acid production solutions for the biopharmaceutical and diagnostics industries. Through its majority-owned subsidiary, LineaRx, Inc., the Company is commercializing its LineaDNA™, LineaRNAP™, and LineaIVT™ platforms to enable the manufacture of next-generation nucleic acid-based therapies.

Visit adnas.com for more information. Follow us on X and LinkedIn . Join our mailing list .

Forward-Looking Statements

The statements made by Applied DNA in this press release may be “forward-looking” in nature within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe Applied DNA’s future plans, projections, strategies, and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Applied DNA. These forward-looking statements are based largely on the Company’s expectations and projections about future events and future trends affecting our business and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements, including statements regarding its goal to position the Company for long-term growth and value creation and the potential to achieve that goal, including the future success of its LineaDNA, LineaRNAP and LineaIVT technologies. Actual results could differ materially from those projected due to its history of net losses, limited financial resources, unknown future ability to remain compliant with all Nasdaq listing standards, unknown future demand for its biotherapeutics products and services, the unknown amount of revenues and profits that will result from its technologies, the fact that there has never been therapeutic clinical trial material and/or a commercial drug product produced utilizing its technologies, whether its restructuring will position the Company for future growth potential, as well as various other factors detailed from time to time in Applied DNA’s SEC reports and filings, including its Annual Report on Form 10-K filed on December 17, 2024, Forms 10-Q filed on February 13, 2025, May 15, 2025, and August 14, 2025, and other reports it files with the SEC, which are available at www.sec.gov . Applied DNA undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date hereof or to reflect the occurrence of unanticipated events, unless otherwise required by law.

Investor Relations contact: Sanjay M. Hurry, 917-733-5573, sanjay.hurry@adnas.com

Web: www.adnas.com

X: APDN

– Financial Tables Follow –

APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED EBITDA
(unaudited)

SOURCE: Applied DNA Sciences, Inc.

View the original press release on ACCESS Newswire

New York State County Supreme Court, Commercial Division, approves previously announced settlement

MONTREAL, QC / ACCESS Newswire / August 14, 2025 / Vision Marine Technologies Inc. (NASDAQ:VMAR) (“Vision Marine” or the “Company”) today announced that, on August 13, 2025, the New York State County Supreme Court, Commercial Division, formally approved the Company’s settlement of an outstanding legal claim related to certain of its shareholders, which was previously announced on May 16, 2025.

About Vision Marine Technologies Inc.
Vision Marine Technologies Inc. (NASDAQ:VMAR) is a pioneer innovative marine company that offers premium boating experiences across both electric and internal combustion engine (ICE) segments. The Company designs, manufactures, and sells high-performance electric powertrain systems and boats, and operates a multi-brand boat retail and service platform through its Nautical Ventures division. With a vertically integrated model that spans technology, retail, and service, Vision Marine delivers scalable, market-ready solutions that enhance the on-water experience for consumers and commercial operators.

For more information, please visit www.visionmarinetechnologies.com.

Investor and Company Contact:

Bruce Nurse
Investor Relations
(303) 919‑2913
bn@v‑mti.com

SOURCE: Vision Marine Technologies Inc

View the original press release on ACCESS Newswire

Profitability targeted for 2025 third quarter

Completed divestiture of FaZe Media on April 1, 2025

Treasury management strategy launched on July 1, 2025, backed by crypto pioneers, expected to benefit financial results in the 2025 third quarter and beyond

The second half of 2025 positioned for revenue growth, enhanced margins, and reduced operating expenses

FRISCO, TEXAS / ACCESS Newswire / August 14, 2025 / GameSquare Holdings, Inc. (NASDAQ:GAME), (“GameSquare”, or the “Company”), today announced financial results for the three- and six-months ended June 30, 2025.

Justin Kenna, CEO of GameSquare, stated, “2025 is on track to be a transformative year for GameSquare as we aggressively execute against a bold vision aimed at building a leading digital-first platform at the intersection of media, technology, esports, and onchain finance. Since January, we’ve taken decisive actions by divesting our remaining stake in FaZe Media, restructuring our operations to streamline costs, forming a strategic alliance with GGTech Entertainment, and doubling down on high-growth areas across our Experiences, Managed Services, and Technology business units, all to position us for unparalleled success.”

“In July, after months of detailed planning, we launched what we believe is one of the most sophisticated Ethereum-based treasury strategies in the market and backed by crypto industry pioneers including Ryan Zurrer of Dialectic, Robert Leshner of Superstate, and Rhydon Lee of Goff Capital. Our $250 million authorized onchain treasury management program leverages Medici, Dialectic’s proprietary platform that combines machine learning, automated optimization, and multi-layered risk controls. In connection with the launch, we raised approximately $90 million in gross proceeds, which has strengthened our balance sheet and funded the initial phase of our treasury strategy,” Mr. Kenna continued.

“We are currently in active discussions with more than 15 crypto-native organizations seeking partners with proven capabilities to help them reach and engage audiences at scale. GameSquare’s established operating platform positions us uniquely to meet this demand. We believe these relationships will not only deepen our presence in the onchain ecosystem but also generate incremental, high-margin revenue streams. Based on our current pipeline, we expect initial wins to begin in the third quarter and building further into the fourth, creating another powerful growth driver for our business.”

“GameSquare now has the strongest financial position in its history, giving us the flexibility to invest in growth, generate yield from our crypto assets, and opportunistically repurchase our stock. In the second half of the year, we are focused on achieving profitability, benefiting from core revenue growth, improved gross margin, lower operating expenses, and the impact of our restructuring initiatives. We believe the combination of our innovative onchain strategy and the improving performance of our operating businesses positions GameSquare as a powerful platform for long-term value creation,” concluded Mr. Kenna.

GameSquare’s Treasury Management Assets at August 13, 2025:

• Ethereum (“ETH”) Assets: The Company held 15,630.07 ETH, with an original cost basis and market value of $55 million and $74.3 million, respectively, which reflects an average cost per ETH of approximately $3,519, and a market price per ETH of $4,751, respectively.

• Unrealized ETH Gains – As of August 13, 2025, the Company had approximately $19.3 million in unrealized gains on its Ethereum holdings.

• NFT Holdings: As of August 13, 2025, the Company owned CryptoPunk #5577, one of only 24 Ape CryptoPunks in existence, which the Company purchased on July 24, 2025 for $5.15 million. 1OF1 AG, is managing GameSquare’s NFT yield strategy and is targeting annualized yields of 6% to 10%.

• Yield Strategy: GameSquare’s onchain yield strategy with Dialectic commenced August 1, 2025 and is targeting annualized yields of 8% to 14%.

• Total ETH + Cash: The Company had $99 million in ETH, NFT and cash, or $1.00 per share and total debt of just $1.25 million as of August 13, 2025.

Three months ended June 30, 2025, compared to June 30, 2024

• Revenue of $15.9 million, compared to $17.8 million

• Gross profit of $2.4 million, compared to $2.5 million

• Net loss attributable to GameSquare of $3.0 million, compared to a net loss of $11.6 million

• Adjusted EBITDA loss of $3.5 million, compared to a loss of $4.2 million

• Adjusted EBITDA loss was 22.1% of revenue, versus 23.4% of revenue last year

Reported results for the six months ended June 30, 2025, compared to June 30, 2024

• Revenue of $30.6 million, compared to $33.4 million

• Gross profit of $5.8 million, compared to $4.6 million

• Net loss attributable to GameSquare of $8.2 million, compared to a net loss of $16.9 million

• Adjusted EBITDA loss of $6.5 million, compared to a loss of $8.7 million

• Adjusted EBITDA loss was 21.1% of revenue, versus 26.0% of revenue last year

Updated 2025 Outlook

As a result of the strong performance since the launch on July 1, 2025 of GameSquare’s Ethereum-based treasury management strategy, and continued restructuring initiatives aimed at streamlining operations and accelerating the path to profitability the Company expects to reintroduce full-year guidance in the third quarter of 2025.

The Company believes its operating and financial trajectory in the second half of 2025 will be significantly stronger, driven by:

• Launch of Ethereum Yield Strategy – On August 1, 2025, GameSquare began deploying Ethereum holdings through Dialectic’s Medici platform, targeting annualized onchain yields of 8% to 14%.

• Unrealized ETH Gains – As of August 13, 2025, the Company had approximately $19.3 million in unrealized gains on its Ethereum holdings.

• Back-Half Revenue Weighting – Approximately 60% of 2025 core revenue is expected to be generated in the second half of the year, in line with typical seasonal trends. Agency and Teams revenue tends to be more profitable and is expected to improve consolidated gross margin in the second half of the year.

• Pipeline Timing – Opportunities that shifted out of the second quarter are now on track to close in the coming months. GameSquare expects meaningful sequential growth, with third quarter revenue higher than second quarter and fourth quarter building further on that growth, supported by both new wins and expansion with existing partners.

• Restructuring Impact – Ongoing restructuring initiatives are expected to lower operating expenses in the second half of 2025 and the Company has identified an additional $5 million in annualized savings that are expected to begin contributing in the third quarter.

GameSquare remains confident that the combination of an improving operating profile and the contribution from its onchain treasury strategy provides a powerful foundation for long-term growth and shareholder value creation.

Conference Call Details

Justin Kenna, CEO, Lou Schwartz, President, and Mike Munoz CFO are scheduled to host a conference call with the investment community. Analysts and interested investors can join the call via the details below:

Date: August 14, 2025
Time: 5:00 pm ET
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=LyzeEplj

Corporate Contact
Lou Schwartz, President
Phone: (216) 464-6400
Email: ir@gamesquare.com

Investor Relations
Andrew Berger
Phone: (216) 464-6400
Email: ir@gamesquare.com

Media Relations
Chelsey Northern / The Untold
Phone: (254) 855-4028
Email: pr@gamesquare.com

About GameSquare Holdings, Inc.

GameSquare (NASDAQ:GAME) is a cutting-edge media, entertainment, and technology company transforming how brands and publishers connect with Gen Z, Gen Alpha, and Millennial audiences. With a platform that spans award-winning creative services, advanced analytics, and FaZe Clan, one of the most iconic gaming organizations, we operate one of the largest gaming media networks in North America. Complementing our operating strategy, GameSquare operates a blockchain-native Ethereum treasury management program designed to generate onchain yield and enhance capital efficiency, reinforcing our commitment to building a dynamic, high-performing media company at the intersection of culture, technology, and next-generation financial innovation.

To learn more, visit www.gamesquare.com.

Forward-Looking Information

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the Company’s future performance, revenue, growth and profitability; and the Company’s ability to execute on its current and future business plans. These forward-looking statements are provided only to provide information currently available to us and are not intended to serve as and must not be relied on by any investor as, a guarantee, assurance or definitive statement of fact or probability. Forward-looking statements are necessarily based upon a number of estimates and assumptions which include, but are not limited to: the Company’s ability to grow its business and being able to execute on its business plans, the success of Company’s vendors and partners in their provision of services to the Company, the Company being able to recognize and capitalize on opportunities and the Company continuing to attract qualified personnel to supports its development requirements. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the Company’s ability to achieve its objectives, the Company successfully executing its growth strategy, the ability of the Company to obtain future financings or complete offerings on acceptable terms, failure to leverage the Company’s portfolio across entertainment and media platforms, dependence on the Company’s key personnel and general business, economic, competitive, political and social uncertainties. These risk factors are not intended to represent a complete list of the factors that could affect the Company which are discussed in the Company’s most recent MD&A. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. GameSquare assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

GameSquare Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)

GameSquare Holdings, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)

Management’s use of Non-GAAP Measures

This release contains certain financial performance measures, including “EBITDA” and “Adjusted EBITDA,” that are not recognized under accounting principles generally accepted in the United States of America (“GAAP”) and do not have a standardized meaning prescribed by GAAP. As a result, these measures may not be comparable to similar measures presented by other companies. For a reconciliation of these measures to the most directly comparable financial information presented in the Financial Statements in accordance with GAAP, see the section entitled “Reconciliation of Non-GAAP Measures” below.

We believe EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define “EBITDA” as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense.

Adjusted EBITDA

We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define “Adjusted EBITDA” as EBITDA adjusted to exclude extraordinary items, non-recurring items and other non-cash items, including, but not limited to (i) share based compensation expense, (ii) transaction costs related to merger and acquisition activities, (iii) arbitration settlement reserves and other non-recurring legal settlement expenses, (iv) restructuring costs, primarily comprised of employee severance resulting from integration of acquired businesses, (v) impairment of goodwill and intangible assets, (vi) gains and losses on extinguishment of debt, (vii) change in fair value of assets and liabilities adjusted to fair value on a quarterly basis, (viii) gains and losses from discontinued operations, and (ix) net income (loss) attributable to non-controlling interest.

Reconciliation of Non-GAAP Measures

A reconciliation of Adjusted EBITDA to the most directly comparable measure determined under US GAAP is set out below. (Unaudited)

SOURCE: GameSquare Holdings, Inc.

View the original press release on ACCESS Newswire

CEO Allan Evans Shares Q2 2025 Highlights and Provides Strategic Insight into the Company’s Plans

ORLANDO, FL / ACCESS Newswire / August 14, 2025 / Unusual Machines, Inc. (NYSE American:UMAC) (“Unusual Machines” or the “Company”), a manufacturer of NDAA compliant drones and drone components, today announced it filed its Form 10-Q with the U.S. Securities and Exchange Commission for the second quarter of 2025 and provided the following letter to its shareholders from CEO Allan Evans.

Dear Shareholders,

This shareholder letter follows the completion of our second quarter of 2025. It has been another record revenue quarter. We closed a financing for $40M during the quarter and another $48.7M last month. We want to take this opportunity to provide context and deeper insights into our operations and what these represent for Unusual Machines’ future.

Operations Update

Unusual Machines revenue for the second quarter was about $2.12 million which represents a year over year increase for the quarter of approximately 51%. This is our best revenue quarter of all time for the fifth consecutive quarter and was achieved in spite of tariffs creating consumer hesitancy. This was driven by an increase in enterprise sales which represented approximately 31% of our Q2 revenue. We were also able to improve gross margins to 37% which represents our highest quarterly margins to date. We expect the increase in margin and enterprise sales to continue throughout 2025 and extend into 2026. I think GAAP results seem exaggerated as our net loss for the second quarter was approximately $6.9 million driven mostly from expenses related to equity compensation. After non-cash and non-recurring adjustments, our non-GAAP adjusted net loss for the second quarter was approximately $0.8 million (see Table 2).

Cash Position

We prioritize managing our cash position and cash flow. We started the second quarter with $5.0 million and finished the quarter with $38.9 million. We have subsequently raised and additional $44.9M after fees. The breakdown of the cash position change over the quarter (see Table 1) provides greater detail into our expenses. Total expenses were above expectations, as there were costs related to the financings. We still absolutely prioritize prudent spending and are seeking to get to cash flow positive in 2026.

Cap Table Changes

The financings have changed our capitalization table substantially. Unusual Machines now has 30.2 million of shares outstanding and will be approximately 31.1 million shares after we close Rotor Lab with no shareholder to our knowledge owning more than 9.9% of the total. We have over $81 million in cash (which includes the Q3 financing), and $0 in debt. Given the cash position, limited cash burn, improving revenues, and diversified shareholder base; we believe the company is in a very strong position to continue to grow quickly throughout the remainder of 2025.

Regulatory Impacts

The regulatory environment is dynamic. Tariffs have been implemented, paused, changed, and seemed to have settled into a more stable steady state. We were able to adjust to the tariffs in Q2 and with our onshoring push have been able to improve margins in spite of an increase in some overseas goods. Internally, Unusual Machines is placing larger inventory orders to reduce uncertainty and get better component pricing to offset tariff costs.

Externally, the regulatory environment is creating market conditions that strongly favor domestic drone companies. These impacts are likely to influence our business in ways we find challenging to model. While we expect to continue to see consumer sales growth, we expect it to slow down a little. At the same time, we see a major uptick in interest on the enterprise side as other businesses look to us for components and general predictability. We believe the impact of tariffs and regulations will strongly benefit Unusual Machines and expect to see GAAP validation of that expectation in the third quarter and fourth quarters as U.S. Government contracts start to be issued to some of our customers.

Looking Ahead

Our priorities moving forward are clear:

• Grow Revenue: We are being aggressive. We will continue to invest in and expand Rotor Riot’s operations, driving both top-line growth and improved margins while introducing more U.S. made components at competitive prices. We will continue to take advantage of the tariffs to improve gross margins, and we anticipate substantial capital expense outlay as we work to very quickly scale a motor factory in Orlando to complement our factory that we will acquire in Australia once we close the Rotor Lab acquisition.

• Grow the Company: The U.S. government marketplace for drones is accelerating. To keep up with demand growth on the enterprise side – we need to scale the company. We are in the process of expanding our team from 20 employees to 50, are building out the motor factory, and plan on adding Fat Shark headset assembly to a new leased facility in the Orlando area.

• Get to Cash Flow Positive: We plan to grow in a controlled manner with the focus of our efforts driving us toward positive cash flow. Accounting for growth, we expect to need $20-30M in an annual revenue run rate to reach this target and are working toward getting there in 2026 depending on how the enterprise market materializes in the second half of 2025.

We are enthusiastic about the future of Unusual Machines. The company is in a great position to capitalize on enterprise sales and take advantage of the regulatory environment and macroeconomic factors to rapidly scale. We believe the moment is now and are doing everything we can to capture market share. We appreciate you all for the confidence and support in our vision. Please reach out with any questions or comments.

Sincerely,

Allan Evans
CEO of Unusual Machines

Second Quarter Financial Results

• Revenues totaled approximately $2.12 million for the three months ended June 30, 2025 as compared to $1.41 million for the three months ended June 30, 2024 which was a 51% increase for the second quarter year over year.

• Revenues totaled approximately $4.17 million for the six months ended June 30, 2025 as compared to pro forma revenue of $2.52 million for the six months ended June 30, 2024, which represents a 65% increase for the first six months year over year.

• Gross margin for the second quarter was approximately 37%, which improved related to the increase in enterprise sales, increasing costs related to tariffs and expanding certain retail margins. Our gross margin for the first six months of the year is approximately 31%.

• Our loss from operations was approximately $7.2 million for the three months ended June 30, 2025 as compared to an operating loss of $1.6 million for the three months ended June 30, 2024. Included in this is non-cash stock compensation expense of $5.5 million and $0.4 million for the three months ended June 30, 2025 and 2024, respectively.

• Interest income was $0.2 million for the three months ended June 30, 2025 related to interest earned from our May 2025 public offering.

• Net loss attributable to common shareholders for the second quarter 2025 was approximately $6.9 million or $0.32 per share as compared to a net loss of approximately $1.6 million for the second quarter 2024 or $0.16 per share. The decrease primarily relates to the increase in non-cash stock compensation expense incurred in 2025.

• We had approximately $38.9 million of cash as of June 30, 2025 as compared to $3.7 million as of December 31, 2024. The increase in cash primarily relates to the public offering completed in May 2025 and cash exercise of warrants in February 2025. See table 1 for additional details.

For further information concerning our financial results, see the tables attached to this shareholders’ letter.

About Unusual Machines

Unusual Machines manufactures and sells drone components and drones across a diversified brand portfolio, which includes Fat Shark, the leader in FPV (first-person view) ultra-low latency video goggles for drone pilots. The Company also retails small, acrobatic FPV drones and equipment directly to consumers through the curated Rotor Riot e-commerce store. With a changing regulatory environment, Unusual Machines seeks to be a dominant component supplier to the fast-growing multi-billion-dollar US drone industry and the global defense business. According to Fact.MR, the global drone accessories market is currently valued at $17.5 billion and is set to top $115 billion by 2032.

For more information visit Unusual Machines at https://www.unusualmachines.com/.

Safe Harbor Statement

This shareholder letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements include: our expectation that we will improve gross margins, grow the Company and grow our revenues, expand enterprise sales throughout 2025 and extend into 2025, our ability to become cash flow positive and the timing, our ability to achieve rapid growth, our expectation concerning the impact from tariffs and achieve GAAP validation, that we will be successful leasing a new facility and expand our manufacturing footprint and build our headset production capabilities, our ability to anticipate market conditions, and the impact that the uncertain regulatory environment may have on our ability to accurately model for and grow our consumer business. The results expected by some or all of these forward-looking statements may not occur. Factors that affect our ability to achieve these results include our expectation that we will commence operations in our new Orlando manufacturing facility in September 2025, the continued availability of commercial real estate near our Orlando, Florida facilities, the availability of a satisfactory labor pool, potential supply chain issues, the impact from tariffs including inflation, and the Risk Factors contained in our Form 10-Q, filed with the SEC on May 8, 2025, Prospectus Supplement filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025 and in our Form 10-K for the year ended December 31, 2024. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Any forward-looking statement made by us herein speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Contact:

CS Investor Relations
investors@unusualmachines.com

Non-GAAP – Financial Measures

This shareholder letter includes both financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to net income (loss), operating income (loss), and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.

Our management uses and relies on adjusted net loss, which is a non-GAAP financial measure. We believe that management, analysts, and shareholders benefit from referring to the following non-GAAP financial measure to evaluate and assess our core operating results from period-to-period after removing the impact of items that affect comparability. Our management recognizes that the non-GAAP financial measure has inherent limitations because of the excluded items described below.

We have included in Table 2 a reconciliation of our non-GAAP financial measure to the most comparable financial measure calculated in accordance with GAAP. We believe that providing the non-GAAP financial measure, together with reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance.

Table 1

Table 2

Unusual Machines, Inc.
Consolidated Condensed Balance Sheets

Unusual Machines, Inc.
Consolidated Condensed Statement of Operations
For the Three and Six Months Ended June 30, 2025 and 2024
(Unaudited)