Quarterly Report for Quarter Ending June 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis are intended to help you understand our business, financial condition, results of operations, liquidity, and capital resources. You should read this discussion in conjunction with the Company's consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (this "Report") and in the Form 10-K.

In addition to historical financial analysis, this discussion and analysis contains forward-looking statements based upon current expectations that involve risks, uncertainties, and assumptions, as described under the heading "Cautionary Note Regarding Forward Looking Statements." Actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, risks and uncertainties, including those set forth under "Risk Factors" included elsewhere (or incorporated by reference) in this Report and in the Form 10-K. Unless the context otherwise requires, references in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" to "OneMedNet", "we", "us", "our," and "the Company" are intended to mean the business and operations of OneMedNet Corporation and its consolidated subsidiary following the completion of the business combination on November 7, 2023 involving OneMedNet Solutions Corporation (formerly named OneMedNet Corporation) ("Legacy ONMD"), with Legacy ONMD surviving as a wholly owned subsidiary of Data Knights Acquisition Corp. ("Data Knights") (the "Business Combination").

Company Overview

We provide innovative solutions that unlock the significant value contained within the clinical image archives of healthcare providers. Employing our OneMedNet iRWD™ solution, which securely de-identifies, searches, and curates a data archive locally, bringing a wealth of internal and third-party research opportunities to providers. By leveraging our extensive federated provider network, together with our technology and in-house clinical expertise, OneMedNet is positioned to meet the most rigorous Real World Data life science requirements.

Key Components of Consolidated Statements of Operations

Revenue

The Company generates revenue from two streams: (1) iRWD, which provides regulatory grade imaging and clinical data in the pharmaceutical, device manufacturing, contract research organizations, and AI markets and (2) BEAM, which is a medical imaging exchange platform between hospital/healthcare systems, imaging centers, physicians and patients. iRWD is sold on a fixed fee basis based on the number of data units and the cost per data unit committed to in the customer contract. Revenue is recognized when the data is delivered to the customer. BEAM revenue is subscription-based revenue that is recognized ratably over the subscription period committed to by the customer. The Company invoices its BEAM customers quarterly or annually in advance with the customer contracts automatically renewing unless the customer issues a cancellation notice.

The Company excludes from revenue taxes collected from a customer that are assessed by a governmental authority and imposed on and concurrent with a specific revenue-producing transaction. The transaction price for the products is the invoiced amount. Advanced billings from contracts are deferred and recognized as revenue when earned. Deferred revenue consists of payments received in advance of performance under the contract. Such amounts are generally recognized as revenue over the contractual period. The Company receives payments from customers based upon contractual billing schedules. Accounts receivable is recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts typically range from zero to 90 days, with typical terms of 30 days.

Cost of Revenue

Our cost of revenue is composed of our distinct performance obligations of hosting, labor, and data cost.

General and Administrative

General and administrative functions include finance, legal, operations, human resources, and information technology support. These functions include costs for items such as salaries and benefits and other personnel-related costs, maintenance and supplies, professional fees for external legal, accounting, and other consulting services, and depreciation expense.

Research and Development

Costs incurred in the research and development of our products are expensed as incurred. Research and development costs include personnel, contracted services, materials, and indirect costs involved in the design and development of new products and services, as well as hosting expense.

Sales and Marketing

Our sales and marketing costs consist of labor and tradeshow costs.

Interest Expense

Interest expense consists of interest incurred on our outstanding debt facilities, including loans with related parties, deferred underwriter fees and insurance premiums paid in exchange for a note payable.

Other (Income) Expenses, Net

Other (income) expenses, net, primarily includes the change in fair value of PIPE Notes and change in fair value of Yorkville Note (as defined below) for which we have elected the fair value option of accounting. Convertible notes payable, which include the Yorkville Note and PIPE Notes issued to related parties, including accrued interest and contingently issuable warrants, contain embedded derivatives, including settlement of the contingent conversion features, which require bifurcation and separate accounting. Accordingly, we have elected to measure the entire contingently convertible debt instruments, including accrued interest, at fair value. These debt instruments were initially recorded at fair value as liabilities and are subsequently re-measured at fair value on our condensed consolidated balance sheet at the end of each reporting period and at settlement, as applicable. Other income or expenses, net, also includes changes in fair value of warrants which are treated as liability instruments measured at fair value for accounting purposes, initially recorded at fair value and subsequently re-measured to fair value on our condensed consolidated balance sheets at the end of each reporting period. The changes in the fair value of these debt and liability instruments are recorded in changes in fair value, included as a component of other (income) expenses, net, in the condensed consolidated statements of operations.

Other (income) expenses, net, also includes change in fair value and realized gains of our Bitcoin holdings, gain on troubled debt restructuring and foreign exchange and tax expenses related to the Company's operations and revenue outside of the United States. Gain on troubled debt restructuring includes the gains on account of restructuring of loans from lenders and gains on account of concluded negotiations with vendors for reduction in outstanding liabilities.

Results of Operations

Comparison of the Three Months Ended June 30, 2025 and 2024

The following table sets forth our condensed consolidated statements of operations data for the periods presented:

		Three Months Ended June 30,								Change
		2025				2024				$				%
Revenue
Subscription revenue		$	47			$	141			$	(94	)			-67	%
Web imaging revenue			108				86				22				26	%
Total revenue			155				227				(72	)			-32	%
Cost of revenue			396				329				67				20	%
Gross margin			(241	)			(102	)			(139	)			136	%
Operating expenses
General and administrative			1,183				1,716				(533	)			-31	%
Sales and marketing			257				253				4				2	%
Research and development			382				383				(1	)			0	%
Total operating expenses			1,822				2,352				(530	)			-23	%
Loss from operations			(2,063	)			(2,454	)			391				-16	%
Other (income) expense, net
Interest expense			22				41				(19	)			-46	%
Change in fair value of warrants			-				6				(6	)			-100	%
Change in fair value of PIPE Notes			(1,088	)			52				(1,140	)			-2192	%
Change in fair value of Yorkville Note			(34	)			823				(857	)			-104	%
Change in fair value of crypto assets - Bitcoin			174				-				174				N/A
Realized gain on sale of crypto assets - Bitcoin			(314	)			-				(314	)			N/A
Change in fair value of derivative liability			(110	)			160				(270	)			-169	%
Gain on troubled debt restructurings			(3,707	)			-				(3,707	)			N/A
Stock warrant expense			-				33				(33	)			-100	%
Other (income) expense			12				20				(8	)			-40	%
Total other (income) expense, net			(5,045	)			1,135				(6,180	)			-544	%
Net income (loss)		$	2,982			$	(3,589	)		$	6,571				-183	%

Revenue

		Three Months Ended June 30,								Change
		2025				2024				$				%
Subscription revenue (Beam)		$	47			$	141			$	(94	)			-67	%
Web imaging revenue (Real-World Data)			108				86				22				26	%
Total		$	155			$	227			$	(72	)			-32	%

Our revenue is comprised of sales made from our subscription revenue (BEAM) and from our web imaging (iRWD). For the three months ended June 30, 2025, overall revenue decreased by 32%. The primary driver for the decrease in subscription revenue was due to the planned decommissioning of the BEAM platform, which occurred on May 31, 2025. When we made the decision to move away from the BEAM platform to focus on iRWD sales, we stopped renewals for our customers leading to a $0.1 million decrease for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. The primary driver for the increase in web imaging revenue was due to our enhanced focus on iRWD sales leading to increased customer deliveries during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024.

Cost of Revenue

		Three Months Ended June 30,
		2025				2024
Cost of revenue			396				329
% of revenue			255	%			145	%

For the three months ended June 30, 2025, our cost of revenue as a percentage of revenue increased by 110% compared to the prior year period. The increase is primarily driven by the transition away from the BEAM platform, which was decommissioned in May 2025. This has resulted in lower subscription revenue without the benefit of cost savings for the entire comparative period. The increase is also driven by higher iRWD data and personnel costs to support anticipated iRWD sales growth.

General and Administrative

Our general and administrative expenses decreased $0.5 million, or 31%, to $1.2 million for the three months ended June 30, 2025, from $1.7 million for the three months ended June 30, 2024. The decrease is primarily due to a one-time commitment fee of $0.5 million paid to Yorkville for the SEPA during the three months ended June 30, 2024.

Sales and Marketing

Sales and marketing expenses for the three months ended June 30, 2025 were generally consistent with sales and marketing expenses for the three months ended June 30, 2024.

Research and Development

Research and development expenses for the three months ended June 30, 2025, were generally consistent with research and development expenses for the three months ended June 30, 2024.

Interest Expense

Our interest expense decreased $19 thousand, or 46%, to $22 thousand for the three months ended June 30, 2025, from $41 thousand during the three months ended June 30, 2024. The decrease is primarily due to lower interest expense on (i) loans made by related parties (Management and Directors) which got converted into shares of our Common Stock in June 2025 (see Note 6), (ii) the portion of deferred underwriter fees relating to the Business Combination that was payable in cash which got settled in June 2025 (see Note 7) and (iii) our line of credit borrowing which was fully paid off in the fourth quarter of 2024.

Change in Fair Value of Warrants

At the closing of the Business Combination in 2023, we issued warrants in connection with the PIPE financing and separately assumed certain private warrants from Data Knights. We determined that these warrants should be accounted for as liabilities, which are adjusted to fair value at the end of each reporting period. The decrease in fair value of warrants for the three months ended June 30, 2025 was mainly due to the resulting fluctuations in the market price of shares of our Common Stock.

Change in Fair Value of PIPE Notes

At the closing of the Business Combination in 2023, we issued PIPE Notes that are convertible into shares of Common Stock and carried at fair value. The change in fair value is mainly due to the resulting fluctuations in the market price of shares of our Common Stock. During the three months ended June 30, 2025, all holders of PIPE Notes provided notice to convert all outstanding principal and accrued interest outstanding into shares of our Common Stock. As such, the decrease in fair value of PIPE Notes during the three months ended June 30, 2025 represents the final mark-to-market adjustment prior to conversion of the PIPE Notes.

Change in Fair Value of Yorkville Note

In June 2024, we issued the Yorkville Note which is convertible into shares of Common Stock and carried at fair value. The decrease in fair value of Yorkville Note is mainly due to the resulting fluctuations in the market price of shares of our Common Stock. During the three months ended June 30, 2025, the Yorkville Note matured, and the outstanding principal balance was either converted into shares of our Common Stock or repaid in cash. As such, the change in fair value during the three months ended June 30, 2025 represents the final mark-to-market adjustments prior to maturity of the Yorkville Note.

Change in Fair Value of Bitcoin

The change in fair value of Bitcoin during the three months ended June 30, 2025 relates to the mark-to-market adjustment of Bitcoin, which we began strategically investing in using excess cash from our private placement transactions in the third quarter of 2024. As of June 30, 2024, we did not have any Bitcoin holdings.

Realized Gain on Sale of Crypto Assets - Bitcoin

The realized gain on sale of crypto assets - Bitcoin during the three months ended June 30, 2025 reflects the increase in the price of Bitcoin upon sale compared to its purchase price. As of June 30, 2024, we did not have any Bitcoin holdings.

Change in Fair Value of Derivative Liability

The change in fair value of derivative liability represents the remeasurement adjustment of the SEPA put option with Yorkville. The fair value is primarily driven by expected sales of our Common Stock to Yorkville and projections on the future path of the Company's stock price during the commitment period.

During the three months ended June 30, 2025, we received gross cash proceeds of $3.7 million in connection with private placements with institutional investors and investments from related parties. As such, we no longer expect to draw on the SEPA and the liability was adjusted to a fair value of $0 leading to a change in fair value of $(0.1) million during the three months ended June 30, 2025.

During the three months ended June 30, 2024, we had recently entered into the SEPA arrangement and expected to draw on the facility to fund operations as needed. As such, the change in fair value of $0.2 million represents the issuance date fair value of the SEPA, which was driven by expected draws on the facility during the commitment period.

Gain on Troubled Debt Restructurings

Gain on troubled debt restructuring during the three months ended June 30, 2025 was primarily driven by our settlement of deferred underwriter fees which resulted in a gain of $2.7 million (see Note 7). In addition, we restructured trade payables with three separate vendors leading to an additional gain of $0.9 million (see Note 5). During the three months ended June 30, 2024, we did not restructure any of our debt or trade payables.

Comparison of the Six Months Ended June 30, 2025 and 2024

The following table sets forth our condensed consolidated statements of operations data for the periods presented:

		Six Months Ended June 30,								Change
		2025				2024				$				%
Revenue
Subscription revenue		$	105			$	342			$	(237	)			-69	%
Web imaging revenue			187				134				53				40	%
Total revenue			292				476				(184	)			-39	%
Cost of revenue			737				646				91				14	%
Gross margin			(445	)			(170	)			(275	)			162	%
Operating expenses
General and administrative			2,615				3,073				(458	)			-15	%
Sales and marketing			542				483				59				12	%
Research and development			749				828				(79	)			-10	%
Total operating expenses			3,906				4,384				(478	)			-11	%
Loss from operations			(4,351	)			(4,554	)			203				-4	%
Other (income) expense, net
Interest expense			52				83				(31	)			-37	%
Change in fair value of warrants			3				(1	)			4				-400	%
Change in fair value of PIPE Notes			(1,221	)			33				(1,254	)			-3800	%
Change in fair value of Yorkville Note			(64	)			823				(887	)			-108	%
Change in fair value of crypto assets - Bitcoin			837				-				837				N/A
Realized gain on sale of crypto assets - Bitcoin			(844	)			-				(844	)			N/A
Change in fair value of derivative liability			(434	)			160				(594	)			-371	%
Gain on troubled debt restructurings			(3,707	)			-				(3,707	)			N/A
Stock warrant expense			-				33				(33	)			-100	%
Other (income) expense			(53	)			13				(66	)			-508	%
Total other (income) expense, net			(5,431	)			1,144				(6,575	)			-575	%
Net income (loss)		$	1,080			$	(5,698	)		$	6,778				-119	%

Revenue

		Six Months Ended June 30,								Change
		2025				2024				$				%
Subscription revenue (Beam)		$	105			$	342			$	(237	)			-69	%
Web imaging revenue (Real-World Data)			187				134				53				40	%
Total		$	292			$	476			$	(184	)			-39	%

Our revenue is comprised of sales made from our subscription revenue (BEAM) and from our web imaging (iRWD). For the six months ended June 30, 2025, overall revenue decreased by 39%. The primary driver for the decrease in subscription revenue was due to the planned decommissioning of the BEAM platform, which occurred on May 31, 2025. When we made the decision to move away from the BEAM platform to focus on iRWD sales, we stopped renewals for our customers leading to a $0.2 million decrease for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The primary driver for the increase in web imaging revenue was due to our enhanced focus on iRWD sales leading to increased customer deliveries during the six months ended June 30, 2025, as compared to the three months ended June 30, 2024.

Cost of Revenue

		Six Months Ended June 30,
		2025				2024
Cost of revenue			737				646
% of revenue			252	%			136	%

For the six months ended June 30, 2025, our cost of revenue as a percentage of revenue increased by 117% compared to the prior year period. The increase is primarily driven by the transition away from the BEAM platform, which was decommissioned in May 2025. This has resulted in lower subscription revenue without the benefit of cost savings for the entire comparative period. The increase is also driven by higher iRWD data and personnel costs to support anticipated iRWD sales growth.

General and Administrative

Our general and administrative expenses decreased $0.5 million, or 15%, to $2.6 million for the six months ended June 30, 2025, from $3.1 million for the six months ended June 30, 2024. The decrease is primarily due to a one-time commitment fee of $0.5 million paid to Yorkville for the SEPA during the three months ended June 30, 2024.

Sales and Marketing

Our sales and marketing expense increased $59 thousand, or 12%, to $542 thousand for the six months ended June 30, 2025, from $483 thousand for the six months ended June 30, 2024. The increase is primarily due to an increase in personnel costs of $187 thousand which is driven by increased headcount to support iRWD sales growth. This increase is partially offset by a decrease of $83 thousand in consulting expenses as we bring sales and marketing personnel in-house, and a decrease of $46 thousand in trade shows and other miscellaneous expenses.

Research and Development

Our research and development expense decreased $0.1 million, or 10%, to $0.7 million for the six months ended June 30, 2025, from $0.8 million for the six months ended June 30, 2024. The decrease is primarily due to a decrease in personnel costs of $0.1 million which is driven by the focus on iRWD sales growth and less resources being allocated to research and development efforts.

Interest Expense

Our interest expense decreased $31 thousand, or 37%, to $52 thousand for the three months ended June 30, 2025, from $83 thousand during the three months ended June 30, 2024. The decrease is primarily due to lower interest expense on (i) loans made by related parties (Management and Directors) which got converted into shares of our Common Stock in June 2025 (see Note 6), (ii) the portion of deferred underwriter fees relating to the Business Combination that was payable in cash which got settled in June 2025 (see Note 7) and (iii) our line of credit borrowing which was fully paid off in the fourth quarter of 2024.

Change in Fair Value of Warrants

At the closing of the Business Combination in 2023, we issued warrants in connection with the PIPE financing and separately assumed certain private warrants from Data Knights. We determined that these warrants should be accounted for as liabilities, which are adjusted to fair value at the end of each reporting period. The increase in fair value of warrants for the six months ended June 30, 2025, compared to the prior period, was mainly due to the resulting fluctuations in the market price of shares of our Common Stock.

Change in Fair Value of PIPE Notes

At the closing of the Business Combination in 2023, we issued PIPE Notes that are convertible into shares of Common Stock and carried at fair value. The change in fair value is mainly due to the resulting fluctuations in the market price of shares of our Common Stock. During the six months ended June 30, 2025, all holders of PIPE Notes provided notice to convert all outstanding principal and accrued interest outstanding into shares of our Common Stock. As such, the decrease in fair value of PIPE Notes during the six months ended June 30, 2025 represents the final mark-to-market adjustment prior to conversion of the PIPE Notes.

Change in Fair Value of Yorkville Note

In June 2024, we issued the Yorkville Note which is convertible into shares of Common Stock and carried at fair value. The change in fair value is mainly due to the resulting fluctuations in the market price of shares of our Common Stock. During the six months ended June 30, 2025, the Yorkville Note matured, and the outstanding principal balance was either converted into shares of our Common Stock or repaid in cash. As such, the decrease in fair value of Yorkville Note during the six months ended June 30, 2025 represents the final mark-to-market adjustments prior to maturity of the Yorkville Note.

Change in Fair Value of Bitcoin

The change in fair value of Bitcoin during the six months ended June 30, 2025 relates to the mark-to-market adjustment of Bitcoin, which we began strategically investing in using excess cash from our private placement transactions in the third quarter of 2024. As of June 30, 2024, we did not have any Bitcoin holdings.

Realized Gain on Sale of Crypto Assets - Bitcoin

The realized gain on sale of crypto assets - Bitcoin during the six months ended June 30, 2025 reflects the increase in the price of Bitcoin upon sale compared to its purchase price. As of June 30, 2024, we did not have any Bitcoin holdings.

Change in Fair Value of Derivative Liability

The change in fair value of derivative liability represents the remeasurement adjustment of the SEPA put option with Yorkville. The fair value is primarily driven by expected sales of our Common Stock to Yorkville and projections on the future path of the Company's stock price during the commitment period.

During the six months ended June 30, 2025, we received gross cash proceeds of $3.7 million in connection with private placements with institutional investors and investments from related parties. As such, we no longer expect to draw on the SEPA and the liability was adjusted to a fair value of $0, leading to a change in fair value of $(0.4) million during the six months ended June 30, 2025.

During the six months ended June 30, 2024, we had recently entered into the SEPA arrangement and expected to draw on the facility to fund operations as needed. As such, the change in fair value of $0.2 million represents the issuance date fair value of the SEPA, which was driven by expected draws on the facility during the commitment period.

Gain on Troubled Debt Restructurings

Gain on troubled debt restructuring during the six months ended June 30, 2025 was primarily driven by our settlement of deferred underwriter fees which resulted in a gain of $2.7 million (see Note 7). In addition, we restructured trade payables with three separate vendors leading to an additional gain of $0.9 million (see Note 5). During the three months ended June 30, 2024, we did not restructure any of our debt or trade payables.

Liquidity and Capital Resources

As of June 30, 2025, our principal sources of liquidity were proceeds from related party investors and private placement transactions and cash received from customers.

The following table shows net cash and cash equivalents used in operating activities, net cash and cash equivalents used in investing activities, and net cash and cash equivalents provided by financing activities during the periods presented:

		Six Months Ended June 30,
		2025				2024
Net cash provided by (used in)
Operating activities		$	(4,232	)		$	(3,053	)
Investing activities			1,250				(7	)
Financing activities			2,932				3,720

Operating Activities

Our net cash and cash equivalents used in operating activities consists of net income (loss) adjusted for certain non-cash items, including depreciation and amortization, stock-based compensation expense, changes in fair value of liability classified financial instruments, as well as changes in operating assets and liabilities. The primary changes in working capital items, such as the changes in accounts receivable and deferred revenue, result from the difference in timing of payments from our customers related to contract performance obligations. This may result in an operating cash flow source or use for the period, depending on the timing of payments received as compared to the fulfillment of the performance obligation.

During the six months ended June 30, 2025, we used $4.2 million of cash in operating activities, primarily resulting from non-cash charges of $4.9 million and cash used in our operating assets and liabilities of $0.4 million, offset by our net income of $1.1 million.

During the six months ended June 30, 2024, we used $3.1 million of cash in operating activities, primarily resulting from our net loss of $5.7 million, offset by non-cash charges of $1.4 million and cash provided by changes in our operating assets and liabilities of $1.3 million.

Investing Activities

Our investing activities have consisted primarily of property and equipment purchases and Bitcoin purchases and sales.

During the six months ended June 30, 2025, net cash provided by investing activities was $1.3 million, which primarily consisted of Bitcoin activity comprised of $3.5 million in sales, offset by $2.2 million of purchases.

During the six months ended June 30, 2024, net cash used in investing activities was $7 thousand, consisting of purchases of property and equipment.

Financing Activities

During the six months ended June 30, 2025, net cash provided by financing activities was $2.9 million, which consisted of $2.5 million and $1.2 million of proceeds from a private placement and related party investments, respectively, offset by $0.8 million of repayments on outstanding debt facilities.

During the six months ended June 30, 2024, net cash provided by financing activities was $3.7 million, which primarily consisted $1.9 million of net proceeds from shareholder loans, $1.4 million of net proceeds under the Yorkville Note and $0.5 million of proceeds under our line of credit borrowing.

Contractual Obligations and Commitments and Going Concern Outlook

Currently, management does not believe that our cash and cash equivalents is sufficient to meet our foreseeable cash needs for at least the next 12 months. Our foreseeable cash needs, in addition to our recurring operating expenses, include our expected capital expenditures to support the expansion of our infrastructure and workforce, interest expense and minimum contractual obligations. Management intends to raise cash for operations through debt and equity offerings. As a result of the Company's recurring loss from operations and the need for additional financing to fund its operating and capital requirements there is uncertainty regarding the Company's ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company's ability to continue as a going concern.

Our future capital requirements will depend on many factors, including our growth rate, the timing and extent of spending to support research and development efforts, the expansion of sales and marketing activities, the introduction of new and enhanced product and service offerings, and the cost of any future acquisitions of technology or businesses. In the event that additional financing is required from outside sources, we may be unable to raise the funds on acceptable terms, if at all.

The following table summarizes our current and long-term material cash requirements as of June 30, 2025:

						Payments due in:
		Total				Less than 1 year				1-3 years
Accounts payable & accrued expenses		$	5,247			$	5,247			$	-
Loan extensions			400				400				-
		$	5,647			$	5,647			$	-

Critical Accounting Policies and Estimates

Our management's discussion and analysis of financial condition and results of operations is based on our condensed consolidated financial statements which have been prepared in accordance with GAAP. In preparing our financial statements, we make estimates, assumptions, and judgments that can have a significant impact on our reported revenue, results of operations, and net income or loss, as well as on the value of certain assets and liabilities on our balance sheet during and as of the reporting periods. These estimates, assumptions, and judgments are necessary because future events and their effects on our results of operations and the value of our assets cannot be determined with certainty and are made based on our historical experience and on other assumptions that we believe to be reasonable under the circumstances. These estimates may change as new events occur or additional information is obtained, and we may periodically be faced with uncertainties, the outcomes of which are not within our control and may not be known for a prolonged period of time. Because the use of estimates is inherent in the financial reporting process, actual results could differ from those estimates.

For a discussion of our critical accounting estimates, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Form 10-K, the notes to our audited financial statements appearing in the Form 10-K, and the notes to the financial statements appearing elsewhere in this Report. Except as described in this Report, there have been no material changes to these critical accounting policies and estimates through June 30, 2025 from those discussed in the Form 10-K.

Recently Issued and Adopted Accounting Pronouncements

A description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2 to our condensed consolidated financial statements included elsewhere in this Report.