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What changed in MONARCH CASINO & RESORT INC's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of MONARCH CASINO & RESORT INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+93 added−101 removedSource: 10-K (2025-03-03) vs 10-K (2024-02-28)

Top changes in MONARCH CASINO & RESORT INC's 2024 10-K

93 paragraphs added · 101 removed · 88 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

16 edited+0 added−1 removed112 unchanged
Biggest changeWe believe that the segment will normalize in the near future. We are the only hotel-casino physically connected to the Reno-Sparks Convention Center. In our view, Atlantis is uniquely positioned to capitalize on this segment.
Biggest changeWe selectively seek convention and meeting groups that we believe will materially enhance the Atlantis’ occupancy and daily room rates, as well as those we believe will be more likely to utilize our gaming products. We are the only hotel-casino physically connected to the Reno-Sparks Convention Center. In our view, Atlantis is uniquely positioned to capitalize on this segment.
We believe that some of our competitors have the advantage of having significantly more guest rooms available for sale than we do.
We believe that some of our competitors have the advantage of having significantly more guest rooms available for sale than we do.
The Sky Terrace is a unique structure with a diamond-shaped, blue glass body suspended approximately 55 feet, and spanning 160 feet across South Virginia Street, Reno’s main thoroughfare. The Sky Terrace connects the Atlantis with parking on our 16-acre site across South Virginia Street.
The Sky Terrace is a unique structure with a diamond-shaped, blue glass body suspended approximately 55 feet, and spanning 160 feet across South Virginia Street, Reno’s main surface street thoroughfare. The Sky Terrace connects the Atlantis with parking on our 16-acre site across South Virginia Street.
Monarch Black Hawk has been approved for a restaurant liquor license by both the local Black Hawk licensing authority and the State Division of Liquor Enforcement. ​ In November 2019, Proposition DD was passed with a vote of the people allowing for legalizing sports betting in Colorado, making Colorado one of many states now letting people place bets on sporting events since the Supreme Court ruling struck down a law that banned sports betting in most U.S. states.
Monarch Black Hawk has been approved for a restaurant liquor license by both the local Black Hawk licensing authority and the State Division of Liquor Enforcement. ​ In November 2019, Proposition DD was passed with a vote of the people allowing for legalized sports betting in Colorado, making Colorado one of many states now letting people place bets on sporting events since the Supreme Court ruling struck down a law that banned sports betting in most U.S. states.
Sports betting is allowed in Colorado casinos as well as approved mobile apps provided the bettor is within the State of Colorado while the bet is made. ​ Compliance with Environmental Laws ​ In 2023, the Company did not incur any material capital expenses for maintaining compliance with applicable environmental laws and does not expect to incur such in 2024. ​ Requirements to comply with environmental laws may have an impact on capital expenditures, earnings, and our competitive position in the future.
Sports betting is allowed in Colorado casinos as well as approved mobile apps provided the bettor is within the State of Colorado while the bet is made. ​ Compliance with Environmental Laws ​ In 2024, the Company did not incur any material capital expenses for maintaining compliance with applicable environmental laws and does not expect to incur such in 2025. ​ Requirements to comply with environmental laws may have an impact on capital expenditures, earnings, and our competitive position in the future.
See Item 1A, “RISK FACTORS.” ​ Human Capital ​ As of December 31, 2023, we employed approximately 2,900 employees across both properties. ​ We believe that our team is the most important asset in our organization. Our management focus is on employee retention and we use retention rate to evaluate it.
See Item 1A, “RISK FACTORS.” ​ Human Capital ​ As of December 31, 2024, we employed approximately 2,900 employees across both properties. ​ We believe that our team is the most important asset in our organization. Our management focus is on employee retention and we use retention rate to evaluate it.
Based on information obtained from the December 31, 2023 Gaming Revenue Report published by the Nevada Gaming Control Board, there are approximately 12 casinos in the Reno-Sparks area which each generated more than $12.0 million in annual gaming revenues. ​ We believe that the Atlantis’ primary competition for leisure travelers comes from other large-scale casinos that offer amenities that appeal to middle to upper-middle income guests.
Based on information obtained from the December 31, 2024 Gaming Revenue Report published by the Nevada Gaming Control Board, there are approximately 13 casinos in the Reno-Sparks area which each generated more than $12.0 million in annual gaming revenues. ​ We believe that the Atlantis’ primary competition for leisure travelers comes from other large-scale casinos that offer amenities that appeal to middle to upper-middle income guests.
There is strong competition in the concentrated Black Hawk/Central City area gaming market, which includes approximately 21 casinos as of December 31, 2023, according to the Colorado Division of Gaming report. 8 Table of Contents ​ The Black Hawk and Central City gaming markets are geographically isolated.
There is strong competition in the concentrated Black Hawk/Central City area gaming market, which includes approximately 21 casinos as of December 31, 2024, according to the Colorado Division of Gaming report. 8 Table of Contents ​ The Black Hawk and Central City gaming markets are geographically isolated.
Our marketing efforts are directed toward three broad consumer groups: leisure travelers, conventioneers and Northern Nevada local residents. ​ The Reno/Sparks region is a major gaming and leisure destination with aggregate gaming revenues of approximately $921 million (as reported by the Nevada Gaming Control Board for the twelve months ended December 31, 2023). ​ Our Atlantis revenues and operating income are principally dependent on the level of gaming activity at the Atlantis casino.
Our marketing efforts are directed toward three broad consumer groups: leisure travelers, conventioneers and Northern Nevada local residents. ​ The Reno/Sparks region is a major gaming and leisure destination with aggregate gaming revenues of approximately $936 million (as reported by the Nevada Gaming Control Board for the twelve months ended December 31, 2024). ​ Our Atlantis revenues and operating income are principally dependent on the level of gaming activity at the Atlantis casino.
These state constitutional limitations and the scarcity of available and developable land in Black Hawk create a strong barrier to new entries in the gaming market, limiting the threat of potential new competition. ​ The Black Hawk/Central City area gaming market generated approximately $803 million in gaming revenues for the twelve months ended December 31, 2023, according to the Colorado Division of Gaming. ​ Our Monarch Black Hawk revenues and operating income are primarily dependent on the level of gaming activity in the Black Hawk market.
These state constitutional limitations and the scarcity of available and developable land in Black Hawk create a strong barrier to new entries in the gaming market, limiting the threat of potential new competition. ​ The Black Hawk/Central City area gaming market generated approximately $810 million in gaming revenues for the twelve months ended December 31, 2024, according to the Colorado Division of Gaming. ​ Our Monarch Black Hawk revenues and operating income are primarily dependent on the level of gaming activity in the Black Hawk market.
We develop overall master plans and then aim to execute each phase of the master plan after re-evaluation of the current market conditions and comparison against other capital investment opportunities. ​ 5 Table of Contents We have continuously invested in upgrading our facilities. Capital expenditures were $51.4 million in 2023, $48.4 million in 2022 and $37.8 million in 2021.
We develop overall master plans and then aim to execute each phase of the master plan after re-evaluation of the current market conditions and comparison against other capital investment opportunities. ​ 5 Table of Contents We have continuously invested in upgrading our facilities. Capital expenditures were $43.9 million in 2024, $51.4 million in 2023 and $48.4 million in 2022.
As of December 31, 2023, none of the proposals have been adopted by the state’s electorate or by the legislature.
As of December 31, 2024, none of the proposals have been adopted by the state’s electorate or by the legislature.
The hotel features glass elevators that rise the full 19 and 28 stories of the respective towers providing panoramic views of the Reno area and the Sierra Nevada mountain range. 3 Table of Contents ​ The average occupancy rate, average daily room rate (“ADR”) and revenue per available room (“REVPAR”), calculated by dividing total hotel revenue by total rooms available, at the Atlantis for the following periods were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2023 2022 2021 Occupancy rate ​ 84.50 % ​ 83.30 % ​ 82.10 % ADR ​ $ 157.64 ​ $ 158.54 ​ $ 123.18 ​ REVPAR ​ $ 149.99 ​ $ 149.11 ​ $ 114.85 ​ ​ We continually monitor and adjust hotel room rates based upon demand and other competitive factors. ​ Restaurants and Dining.
The hotel features glass elevators that rise the full 19 and 28 stories of the respective towers providing panoramic views of the Reno area and the Sierra Nevada mountain range. 3 Table of Contents ​ The average occupancy rate, average daily room rate (“ADR”) and revenue per available room (“REVPAR”), calculated by dividing total hotel revenue by total rooms available, at the Atlantis for the following periods were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2024 2023 2022 Occupancy rate ​ 84.10 % ​ 84.50 % ​ 83.30 % ADR ​ $ 162.77 ​ $ 157.64 ​ $ 158.54 ​ REVPAR ​ $ 152.48 ​ $ 149.99 ​ $ 149.11 ​ ​ We continually monitor and adjust hotel room rates based upon demand and other competitive factors. ​ Restaurants and Dining.
During the last three years, capital expenditures related primarily to: the transformation of part of the Monarch Black Hawk legacy facility; the major redesign and upgrade of all hotel rooms in the first and second towers and complete renovation of the high-end suites on the top floors of the third hotel tower at Atlantis; the redesign and upgrade of the Oyster and Sushi Bar Restaurant located in the Sky Terrace at Atlantis; the ongoing capital maintenance spending; and the acquisition of gaming equipment at both of our properties. ​ We have two potential options for expansion at our Atlantis property.
During the last three years, capital expenditures related primarily to: the transformation of part of the Monarch Black Hawk legacy facility; the major redesign and upgrade of all hotel rooms in all towers the first and second towers and complete renovation of the high-end suites on the top floors of the third hotel tower at Atlantis, the remaining 246 rooms are expected to be completed in phases in the first half of 2025; the redesign and upgrade of the Oyster and Sushi Bar Restaurant located in the Sky Terrace at Atlantis; the ongoing capital maintenance spending; and the acquisition of gaming equipment at both of our properties. ​ We have two potential options for expansion at our Atlantis property.
The tower also includes a private concierge lounge and world-class spa and pool deck on its top floor. ​ The average occupancy rate, ADR and REVPAR at the Monarch Black Hawk for the following periods were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2023 2022 2021 ​ Occupancy rate ​ 79.90 % ​ 75.10 % ​ 67.90 % ADR ​ $ 195.20 ​ $ 201.92 ​ $ 182.78 ​ REVPAR ​ $ 168.78 ​ $ 164.91 ​ $ 132.75 ​ ​ Quality.
The tower also includes a private concierge lounge and world-class spa and pool deck on its top floor. ​ The average occupancy rate, ADR and REVPAR at the Monarch Black Hawk for the following periods were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2024 2023 2022 ​ Occupancy rate ​ 80.80 % ​ 79.90 % ​ 75.10 % ADR ​ $ 215.70 ​ $ 195.20 ​ $ 201.92 ​ REVPAR ​ $ 187.23 ​ $ 168.78 ​ $ 164.91 ​ ​ Quality.
Denver metro area median household income in 2021 was 30% higher than the national average ($90,716 vs. $69,717). ​ Commercial gaming in Colorado is constitutionally restricted to three mountain towns – Black Hawk, Central City and Cripple Creek – which in 2023 represented 77%, 8% and 15% of total Colorado gaming revenue, respectively (Colorado Division of Gaming statistical summaries).
Denver metro area median household income in 2023 was 33% higher than the national average ($103,055 vs. $77,719). ​ Commercial gaming in Colorado is constitutionally restricted to three mountain towns – Black Hawk, Central City and Cripple Creek – which in 2024 represented 77%, 7% and 16% of total Colorado gaming revenue, respectively (Colorado Division of Gaming statistical summaries).
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We selectively seek convention and meeting groups that we believe will materially enhance the Atlantis’ occupancy and daily room rates, as well as those we believe will be more likely to utilize our gaming products. This segment was significantly impacted by the COVID-19 pandemic and still has not recovered to the pre-pandemic level.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

28 edited+2 added−5 removed106 unchanged
Biggest changeChanges in discretionary consumer spending or consumer preferences in these, and other geographic markets, brought about by factors such as perceived or actual general economic conditions, the impact of high energy and food costs, the increased cost of travel, the potential for bank failures, decreased disposable consumer income and wealth, or fears of war and future acts of terrorism could further reduce customer demand for the amenities that we offer, thus imposing practical limits on pricing and negatively impacting our results of operations and financial condition. ​ RISING OPERATING COSTS AT OUR GAMING PROPERTIES COULD HAVE A NEGATIVE IMPACT ON OUR BUSINESS ​ The operating expenses associated with our properties could increase due to, among other reasons, the following factors: ● current broad-based inflation on the economy; ● supply chain issues; ● changes in federal, state or local tax or regulations, including state gaming rules and regulations or gaming taxes, could impose additional restrictions or increase our operating costs; ● aggressive marketing and promotional campaigns by our competitors for an extended period of time could force us to increase our expenditures for marketing and promotional campaigns in order to maintain our existing customer base or attract new customers; ● increases in costs of labor; ● expenditures for repairs, maintenance, and to replace equipment necessary to operate our business; ● our reliance on slot play revenues and any additional costs imposed on us from vendors; ● availability and cost of the products and services we provide our customers, including food, beverages, retail items, entertainment, hotel rooms and spa; ● availability and costs associated with insurance; ● price increases for electricity, natural gas and other forms of energy; ● adverse impacts of outbreaks of infectious diseases on our business, construction projects, financial condition and operating results; ● actions by government officials at the federal, state and/or local level with respect to steps to be taken, including, without limitation, temporary or extended shutdowns, travel restrictions, social distancing and shelter-in-place orders, in connection with any infectious disease outbreak; 17 Table of Contents ● our ability to manage guest safety concerns caused by any infectious disease outbreak; ● our ability to effectively manage and control expenses during temporary or extended shutdown periods; ● impact of temporary or extended shutdowns on our ability to maintain compliance with the terms and conditions of our credit facilities and other material contracts; ● construction factors, including delays, disruptions, availability of labor and materials, increased costs of labor and materials, contractor disagreements, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, building permit issues and other regulatory approvals or issues; ● ongoing disagreements over costs of and responsibility for delays and other construction related matters with our Monarch Black Hawk general contractor, PCL Construction Services, Inc., including, as previously reported, the litigation against us and liens by such contractor; ● affirmative and extensive counterclaims for construction defects, breach of contract, breach of warranty, fraud, fraudulent inducement, negligence and other construction related claims that we have filed against the Monarch Black Hawk contractor, PCL Construction Services, Inc., in the above-mentioned litigation in which litigation the parties are currently awaiting the Court’s decision following the trial of the matter in September, October, and November of 2023; ● our potential need to post bonds or other forms of surety to support our legal remedies; ● risks related to development and construction activities (including disputes with and defaults by contractors and subcontractors; construction, equipment or staffing problems and delays; shortages of materials or skilled labor; environmental, health and safety issues; weather and other hazards, site access matters, and unanticipated cost increases); ● our ability to generate sufficient operating cash flow to help finance our expansion plans and subsequent debt reduction; ● changes in laws mandating increases in minimum wages and employee benefits; ● changes in laws and regulations permitting expanded and other forms of gaming in our key markets; ● the effects of local and national economic, credit and capital market conditions on the economy in general and on the gaming industry and our business in particular; ● the effects of labor shortages on our market position, growth and financial results; ● the potential of increases in state and federal taxation to address budgetary and other impacts of the COVID-19 pandemic or other infectious disease outbreaks; ● the potential of increased regulatory and other burdens to address the direct and indirect impacts of COVID-19 pandemic or other infectious disease outbreaks; and ● guest acceptance of our expanded facilities once completed and the resulting impact on our market position, growth and financial results. ​ If our operating expenses increase without any offsetting increase in our revenues, our results of operations would suffer. ​ WIN RATES FOR OUR GAMING OPERATIONS DEPEND ON A VARIETY OF FACTORS, MANY OF WHICH ARE BEYOND OUR CONTROL, AND MAY RESULT IN THE WINNINGS OF OUR GAMING CUSTOMERS EXCEEDING OUR WINNINGS. ​ The gaming industry is characterized by an element of chance, and win rates are affected by a player’s skill and experience, the mix of games played, the financial resources of players, the spread of table limits, the volume of bets played and the amount of time played, among other factors.
Biggest changeChanges in discretionary consumer spending or consumer preferences in these, and other geographic markets, brought about by factors such as perceived or actual general economic conditions, the impact of high energy and food costs, the increased cost of travel, the potential for bank failures, decreased disposable consumer income and wealth, or fears of war and future acts of terrorism could further reduce customer demand for the amenities that we offer, thus imposing practical limits on pricing and negatively impacting our results of operations and financial condition. ​ RISING OPERATING COSTS AT OUR GAMING PROPERTIES COULD HAVE A NEGATIVE IMPACT ON OUR BUSINESS ​ The operating expenses associated with our properties could increase due to, among other reasons, the following factors: ● current broad-based inflation on the economy; ● supply chain issues and potential tariffs; ● changes in federal, state or local tax or regulations, including state gaming rules and regulations or gaming taxes, could impose additional restrictions or increase our operating costs; ● aggressive marketing and promotional campaigns by our competitors for an extended period of time could force us to increase our expenditures for marketing and promotional campaigns in order to maintain our existing customer base or attract new customers; ● increases in costs of labor; ● expenditures for repairs, maintenance, and to replace equipment necessary to operate our business; ● our reliance on slot play revenues and any additional costs imposed on us from vendors; ● availability and cost of the products and services we provide our customers, including food, beverages, retail items, entertainment, hotel rooms and spa; ● availability and costs associated with insurance; ● price increases for electricity, natural gas and other forms of energy; ● adverse impacts of outbreaks of infectious diseases on our business, construction projects, financial condition and operating results; ● actions by government officials at the federal, state and/or local level with respect to steps to be taken, including, without limitation, temporary or extended shutdowns, travel restrictions, social distancing and shelter-in-place orders, in connection with any infectious disease outbreak; ● our ability to manage guest safety concerns caused by any infectious disease outbreak; 17 Table of Contents ● our ability to effectively manage and control expenses during temporary or extended shutdown periods; ● impact of temporary or extended shutdowns on our ability to maintain compliance with the terms and conditions of our credit facilities and other material contracts; ● construction factors, including delays, disruptions, availability of labor and materials, increased costs of labor and materials, contractor disagreements, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, building permit issues and other regulatory approvals or issues; ● ongoing disagreements over costs of and responsibility for delays and other construction related matters with our Monarch Black Hawk general contractor, PCL Construction Services, Inc.
Any expansion of gaming or restriction on or prohibition of our gaming operations or enactment of other adverse regulatory changes could have a material adverse effect on our operating results. ​ NATURAL OR MAN-MADE DISASTERS, AN OUTBREAK OF HIGHLY INFECTIOUS DISEASE, TERRORIST ACTIVITY, GUN VIOLENCE OR WAR MAY HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS, RESULTS OF OPERATIONS AND CASH FLOWS ​ Natural disasters, man-made disasters and outbreaks of highly infectious diseases such as the COVID-19 may result in decreases in travel to and from, and economic activity in, areas in which we operate, and may adversely affect the number of visitors to our properties.
Any expansion of gaming or restriction on or prohibition of our gaming operations or enactment of other adverse regulatory changes could have a material adverse effect on our operating results. ​ NATURAL OR MAN-MADE DISASTERS, AN OUTBREAK OF HIGHLY INFECTIOUS DISEASE, TERRORIST ACTIVITY, GUN VIOLENCE OR WAR MAY HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS, RESULTS OF OPERATIONS AND CASH FLOWS ​ Natural disasters, man-made disasters and outbreaks of highly infectious diseases such as COVID-19 may result in decreases in travel to and from, and economic activity in, areas in which we operate, and may adversely affect the number of visitors to our properties.
If interest rates increase, our debt service obligations under the Fifth Amended Credit Facility will increase even when the amount borrowed remains the same, and our net income and cash flows, including cash available for servicing our indebtedness, would correspondingly decrease. ​ IF WE ARE UNABLE TO OBTAIN FINANCING FOR OUR EXPANSION AND RENOVATION PROJECTS AND OTHER CAPITAL EXPENDITURES, SUCH PROJECTS WILL BE JEOPARDIZED ​ We intend to finance our future expansion and renovation projects, as well as our other capital expenditures, primarily with cash flow from operations and borrowings under our available credit facilities.
If interest rates increase, our debt service obligations under the Sixth Amended Credit Facility will increase even when the amount borrowed remains the same, and our net income and cash flows, including cash available for servicing our indebtedness, would correspondingly decrease. ​ IF WE ARE UNABLE TO OBTAIN FINANCING FOR OUR EXPANSION AND RENOVATION PROJECTS AND OTHER CAPITAL EXPENDITURES, SUCH PROJECTS WILL BE JEOPARDIZED ​ We intend to finance our future expansion and renovation projects, as well as our other capital expenditures, primarily with cash flow from operations and borrowings under our available credit facilities.
Such disagreements have resulted in litigation with our Monarch Black Hawk general contractor, as discussed in this annual report. ​ The disputes with the Monarch Black Hawk Expansion general contractor have resulted in and may continue to result in: ● disputes and claims over the quality and management of the construction; ● disputes and claims over design and construction defects; ● disputes and claims over payments, construction costs, staffing costs, damages and other financial responsibility; and ● disruptions of relationships with the general contractor, subcontractors, vendors and others. ​ In addition, our current and future projects could also experience: ● delays and significant cost increases; ● delays in obtaining or inability to obtain necessary permits, licenses and approvals; ● lack of sufficient, or delays in the availability of, financing; ● shortages of materials; ● shortages of skilled labor, work stoppages or labor disputes; ● poor performance or nonperformance by any third parties on whom we place reliance; ● unforeseen construction scheduling, engineering, environmental, permitting, construction or geological problems, including defective plans and specifications; ● weather interference, floods, fires or other casualty losses; and ● COVID-19 related delays. ​ The completion dates of any of our projects could differ significantly from expectations for construction-related or other reasons. ​ In connection with the expansion of the Monarch Black Hawk and the related disputes described above, our general contractor PCL and certain subcontractors have provided Monarch with notice of purported liens against the Monarch Black Hawk and some subcontractors have recorded such liens.
Such disagreements have resulted in litigation with our Monarch Black Hawk general contractor, as discussed in this annual report. ​ 22 Table of Contents The disputes with the Monarch Black Hawk Expansion general contractor have resulted in and may continue to result in: ● disputes and claims over the quality and management of the construction; ● disputes and claims over design and construction defects; ● disputes and claims over payments, construction costs, staffing costs, damages and other financial responsibility; and ● disruptions of relationships with the general contractor, subcontractors, vendors and others. ​ In addition, our current and future projects could also experience: ● delays and significant cost increases; ● delays in obtaining or inability to obtain necessary permits, licenses and approvals; ● lack of sufficient, or delays in the availability of, financing; ● shortages of materials; ● shortages of skilled labor, work stoppages or labor disputes; ● poor performance or nonperformance by any third parties on whom we place reliance; ● unforeseen construction scheduling, engineering, environmental, permitting, construction or geological problems, including defective plans and specifications; and ● weather interference, floods, fires or other casualty losses. ​ The completion dates of any of our projects could differ significantly from expectations for construction-related or other reasons. ​ In connection with the expansion of the Monarch Black Hawk and the related disputes described above, our general contractor PCL and certain subcontractors have provided Monarch with notice of purported liens against the Monarch Black Hawk and some subcontractors have recorded such liens.
In addition, our existing indebtedness contains certain restrictions on our ability to incur additional indebtedness. ​ OUR EXPANSION AND RENOVATION PROJECTS MAY FACE SIGNIFICANT RISKS INHERENT IN CONSTRUCTION PROJECTS ​ Our development and renovation projects we may undertake will be subject to the many risks inherent in the expansion or renovation of an existing enterprise or construction of a new enterprise, including unanticipated design, construction, regulatory, environmental and operating problems and lack of demand for our projects. ​ 22 Table of Contents We have numerous disagreements with our Monarch Black Hawk general contractor, including disagreements over costs, schedule delays, and other construction related matters.
In addition, our existing indebtedness contains certain restrictions on our ability to incur additional indebtedness. ​ OUR EXPANSION AND RENOVATION PROJECTS MAY FACE SIGNIFICANT RISKS INHERENT IN CONSTRUCTION PROJECTS ​ Our development and renovation projects we may undertake will be subject to the many risks inherent in the expansion or renovation of an existing enterprise or construction of a new enterprise, including unanticipated design, construction, regulatory, environmental and operating problems and lack of demand for our projects. ​ We have numerous disagreements with our Monarch Black Hawk general contractor, including disagreements over costs, schedule delays, and other construction related matters.
The owners of the Arapahoe Racetrack, southeast of Denver, have funded state wide ballot initiatives to allow casino style gaming at the race track. Both measures were voted down by wide margins. As of December 31, 2023, none of the proposals have been adopted by the state’s electorate or by the legislature.
The owners of the Arapahoe Racetrack, southeast of Denver, have funded state wide ballot initiatives to allow casino style gaming at the race track. Both measures were voted down by wide margins. As of December 31, 2024, none of the proposals have been adopted by the state’s electorate or by the legislature.
Although the covenants in our Fifth Amended Credit Facility are subject to various exceptions, we cannot assure you that these covenants will not adversely affect our ability to finance future operations or capital needs or to engage in other activities that may be in our best interest.
Although the covenants in our Sixth Amended Credit Facility are subject to various exceptions, we cannot assure you that these covenants will not adversely affect our ability to finance future operations or capital needs or to engage in other activities that may be in our best interest.
If the state and/or local governments where our properties are located were to increase gaming taxes and fees, our results of operations could be adversely affected. ​ 24 Table of Contents Climate change, climate change regulations and greenhouse gas effects may adversely impact our operations. ​ There is a growing consensus that greenhouse gas (“GHG”) emissions continue to alter the composition of the global atmosphere in ways that are affecting and are expected to continue affecting the global climate.
If the state and/or local governments where our properties are located were to increase gaming taxes and fees, our results of operations could be adversely affected. ​ Climate change, climate change regulations and greenhouse gas effects may adversely impact our operations. ​ There is a growing consensus that greenhouse gas (“GHG”) emissions continue to alter the composition of the global atmosphere in ways that are affecting and are expected to continue affecting the global climate.
Failure to satisfy these requirements could result in an event of default under these debt instruments or material agreements, which would have a material adverse effect on our financial condition, results of operations or cash flows. ​ 27 Table of Contents OUR CAPITAL EXPENDITURES MAY NOT RESULT IN THE EXPECTED IMPROVEMENTS IN OUR BUSINESS OR FINANCIAL RESULTS We have expended a significant amount of capital on our multi-phased Monarch Black Hawk Expansion.
Failure to satisfy these requirements could result in an event of default under these debt instruments or material agreements, which would have a material adverse effect on our financial condition, results of operations or cash flows. ​ OUR CAPITAL EXPENDITURES MAY NOT RESULT IN THE EXPECTED IMPROVEMENTS IN OUR BUSINESS OR FINANCIAL RESULTS We have expended a significant amount of capital on our multi-phased Monarch Black Hawk Expansion.
In addition, during the time that such securities are outstanding, they may adversely affect the terms on which we could obtain additional capital. ​ CERTAIN OF OUR STOCKHOLDERS OWN LARGE INTERESTS IN OUR CAPITAL STOCK AND MAY SIGNIFICANTLY INFLUENCE OUR AFFAIRS ​ John Farahi and Bob Farahi, our officers and directors, together with John’s and Bob’s brother Ben Farahi, beneficially own in the aggregate approximately 32% of our outstanding common stock, inclusive of options held by them which are exercisable within 60 days.
In addition, during the time that such securities are outstanding, they may adversely affect the terms on which we could obtain additional capital. ​ CERTAIN OF OUR STOCKHOLDERS OWN LARGE INTERESTS IN OUR CAPITAL STOCK AND MAY SIGNIFICANTLY INFLUENCE OUR AFFAIRS ​ As of December 31, 2024, John Farahi and Bob Farahi, our officers and directors, together with John’s and Bob’s brother Ben Farahi, beneficially own in the aggregate approximately 32% of our outstanding common stock, inclusive of options held by them which are exercisable within 60 days.
As such, members of the Farahi family, if voting together, have the ability to significantly influence our affairs, including the election of the board of directors and, except as otherwise provided by law, approving or disapproving other matters submitted to a vote of our stockholders, including a merger, consolidation, or sale of assets. ​ 26 Table of Contents WE MAY NOT BE ABLE TO PAY OR MAINTAIN DIVIDENDS AND THE FAILURE TO DO SO WOULD ADVERSELY AFFECT THE MARKET PRICE OF OUR COMMON STOCK. ​ Commencing in the second quarter of 2023, we intend to pay an annual cash dividend, payable in quarterly amounts, on our common stock.
As such, members of the Farahi family, if voting together, have the ability to significantly influence our affairs, including the election of the board of directors and, except as otherwise provided by law, approving or disapproving other matters submitted to a vote of our stockholders, including a merger, consolidation, or sale of assets. ​ WE MAY NOT BE ABLE TO PAY OR MAINTAIN DIVIDENDS AND THE FAILURE TO DO SO WOULD ADVERSELY AFFECT THE MARKET PRICE OF OUR COMMON STOCK. ​ Since the second quarter of 2023, we started to pay an annual cash dividend, payable in quarterly amounts, on our common stock.
Many states have announced or adopted programs to stabilize and reduce GHG emissions and in the past federal legislation has been proposed in Congress. If such legislation is enacted, we could incur increased energy, environmental and other costs and capital expenditures to comply with the limitations.
Many states have announced or adopted programs to stabilize and reduce GHG emissions and in the past federal legislation has been proposed in Congress. 24 Table of Contents ​ If such legislation is enacted, we could incur increased energy, environmental and other costs and capital expenditures to comply with the limitations.
A tightening of such regulations could adversely impact our future expansion opportunities. ​ 25 Table of Contents RISKS RELATING TO OWNERSHIP OF COMMON STOCK ​ OUR COMMON STOCK PRICE MAY FLUCTUATE SUBSTANTIALLY, AND A STOCKHOLDER’S INVESTMENT COULD DECLINE IN VALUE ​ The market price of our common stock may fluctuate substantially due to many factors, such as those described in the Risk Factors described herein and others, including: ​ ● actual or anticipated fluctuations in our results of operations; ● announcements of significant acquisitions or other agreements by us or by our competitors; ● our sale of common stock or other securities in the future; ● trading volume of our common stock; ● conditions and trends in the gaming and destination entertainment industries; ● changes in the estimation of the future size and growth of our markets; ● general economic conditions, including, without limitation, changes in the cost of fuel and air travel; and ● fears of impact on leisure and general travel due to pandemic concerns, include the coronavirus. ​ In addition, the stock market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to companies’ operating performance.
A tightening of such regulations could adversely impact our future expansion opportunities. ​ RISKS RELATING TO OWNERSHIP OF COMMON STOCK ​ OUR COMMON STOCK PRICE MAY FLUCTUATE SUBSTANTIALLY, AND A STOCKHOLDER’S INVESTMENT COULD DECLINE IN VALUE ​ The market price of our common stock may fluctuate substantially due to many factors, such as those described in the Risk Factors described herein and others, including: 25 Table of Contents ● actual or anticipated fluctuations in our results of operations; ● announcements of significant acquisitions or other agreements by us or by our competitors; ● our sale of common stock or other securities in the future; ● trading volume of our common stock; ● conditions and trends in the gaming and destination entertainment industries; ● changes in the estimation of the future size and growth of our markets; ● general economic conditions, including, without limitation, changes in the cost of fuel and air travel; and ● fears of impact on leisure and general travel due to pandemic concerns, include the coronavirus.
These financing strategies may not be affected on satisfactory terms, if at all. 21 Table of Contents COVENANT RESTRICTIONS UNDER OUR FIFTH AMENDED CREDIT FACILITY MAY LIMIT OUR ABILITY TO OPERATE OUR BUSINESS AND ADVERSELY AFFECT OUR RESULTS OF OPERATIONS ​ Our Fifth Amended Credit Facility contains covenants that restrict our ability to, among other things, incur additional debt, make distributions, make investments, grant liens on our assets to secure debt, enter into transactions with affiliates and effect mergers or acquisitions, as well as covenants that relate to our Monarch Black Hawk Expansion.
These financing strategies may not be affected on satisfactory terms, if at all. 21 Table of Contents ​ COVENANT RESTRICTIONS UNDER OUR SIXTH AMENDED CREDIT FACILITY MAY LIMIT OUR ABILITY TO OPERATE OUR BUSINESS AND ADVERSELY AFFECT OUR RESULTS OF OPERATIONS ​ Our Sixth Amended Credit Facility contains covenants that restrict our ability to, among other things, incur additional debt, make distributions, make investments, grant liens on our assets to secure debt, enter into transactions with affiliates and effect mergers or acquisitions.
In addition, certain casualty events, such as public health emergencies, including pandemics such as the COVID-19, labor strikes, nuclear events, acts of war, loss of income due to cancellation of room reservations or conventions due to fear of terrorism, deterioration or corrosion, insect or animal damage and pollution, might not be covered at all under our policies.
In addition, certain casualty events, such as public health emergencies, including infectious disease outbreaks, labor strikes, nuclear events, acts of war, loss of income due to cancellation of room reservations or conventions due to fear of terrorism, deterioration or corrosion, insect or animal damage and pollution, might not be covered at all under our policies.
The risks to which we have a greater degree of exposure include the following: ● changes in local economic and competitive conditions; ● labor supply disruptions or shortages; ● inflationary pressures on labor and supplies; ● disruptions in our supply chain; ● changes in local and state governmental laws and regulations, including gaming laws, rules and regulations, and the way in which those laws, rules and regulations are applied; ● natural and other disasters, including pandemics, epidemics, or outbreaks of infectious or contagious diseases such as the COVID-19 pandemic; ● continuing actions by government officials at the federal, state and/or local level with respect to steps to be taken in connection with the COVID-19 pandemic, including, without limitation, temporary or extended shutdowns, travel restrictions, social distancing and shelter-in-place orders; ● an increase in the cost of maintaining our properties; ● a decline in the number of visitors to Reno or Black Hawk; and 19 Table of Contents ● a decrease in gaming and non-casino activities at our resorts. ​ Any of the factors outlined above could negatively affect our results of operations and our ability to generate sufficient cash flow to make payments or maintain our covenants with respect to our debt. ​ FAILURE OF THE RENO-SPARKS CONVENTION CENTER TO BOOK AND ATTRACT CONVENTION BUSINESS COULD ADVERSELY IMPACT OUR BUSINESS AT THE ATLANTIS ​ The Atlantis is the closest hotel-casino to the Reno-Sparks Convention Center and the enclosed pedestrian sky bridge, that connects the Atlantis directly with the Reno-Sparks Convention Center, has afforded us a distinct competitive advantage in attracting its conventioneers, who typically pay higher average room rates than non-conventioneers.
The risks to which we have a greater degree of exposure include the following: ● changes in local economic and competitive conditions; ● labor supply disruptions or shortages; ● inflationary pressures on labor and supplies; ● disruptions in our supply chain; ● changes in local and state governmental laws and regulations, including gaming laws, rules and regulations, and the way in which those laws, rules and regulations are applied; ● natural and other disasters, including pandemics, epidemics, or outbreaks of infectious or contagious diseases; ● an increase in the cost of maintaining our properties; ● a decline in the number of visitors to Reno or Black Hawk; and ● a decrease in gaming and non-casino activities at our resorts. ​ 19 Table of Contents Any of the factors outlined above could negatively affect our results of operations and our ability to generate sufficient cash flow to make payments or maintain our covenants with respect to our debt. ​ FAILURE OF THE RENO-SPARKS CONVENTION CENTER TO BOOK AND ATTRACT CONVENTION BUSINESS COULD ADVERSELY IMPACT OUR BUSINESS AT THE ATLANTIS ​ The Atlantis is the closest hotel-casino to the Reno-Sparks Convention Center and the enclosed pedestrian sky bridge, that connects the Atlantis directly with the Reno-Sparks Convention Center, has afforded us a distinct competitive advantage in attracting its conventioneers, who typically pay higher average room rates than non-conventioneers.
On February 1, 2023, the Company entered into the Fifth Amended and Restated Credit Agreement (the “Amended Credit Facility”) with Wells Fargo Bank, N.A., as administrative agent, where it amended and restated in its entirety the Fifth Amended Credit Facility.
On December 31, 2024, the Company entered into the Sixth Amended and Restated Credit Agreement (the “Amended Credit Facility”) with Wells Fargo Bank, N.A., as administrative agent, where it amended and restated in its entirety the Fifth Amended Credit Facility.
However, our ability to pay and maintain cash dividends is at the discretion of our board of directors and is based on many factors, including our earnings, liquidity, financial condition, funds from operations, the level of our capital expenditures and future business prospects, our ability to make and finance acquisitions, available acquisition opportunities, anticipated operating cost levels, the level of demand for the products and services offered at our properties, alternate capital deployment opportunities, and any other factors our board of directors considers relevant.
Our ability to pay and maintain cash dividends is at the discretion of our board of directors and is based on many factors, including our earnings, liquidity, financial condition, funds from operations, the level of our capital expenditures and future business prospects, our ability to make and finance acquisitions, available acquisition opportunities, anticipated operating cost levels, the level of demand for the products and services offered at our properties, alternate capital deployment opportunities, and any other factors our board of directors considers relevant. 26 Table of Contents Some of the factors are beyond our control and a change in any such factor could affect our ability to pay or maintain dividends.
A breach of any of the covenants in the agreement governing our Fifth Amended Credit Facility could result in a default under such agreement. Our ability to comply with these covenants may be affected by general economic conditions, industry conditions, and other events beyond our control, including difficulties or delay in the completion of our Monarch Black Hawk Expansion.
A breach of any of the covenants in the agreement governing our Sixth Amended Credit Facility could result in a default under such agreement. Our ability to comply with these covenants may be affected by general economic conditions, industry conditions, and other events beyond our control.
Broad market and industry factors may materially harm the market price of our common stock, regardless of our operating performance. In the past, following periods of volatility in the market price of a company’s securities, stockholder derivative lawsuits and/or securities class action litigation has often been instituted against that company.
In the past, following periods of volatility in the market price of a company’s securities, stockholder derivative lawsuits and/or securities class action litigation has often been instituted against that company.
Our ability to realize the expected returns on these capital investments depends on a number of factors, including, general economic conditions, changes to construction plans and specifications, delays in obtaining or inability to obtain necessary permits, licenses and approvals, disputes with contractors, disruptions to our business caused by construction and other unanticipated circumstances or cost increases.
Our ability to realize the expected returns on these capital investments depends on a number of factors, including, general economic conditions, changes to construction plans and specifications, delays in obtaining or inability to obtain necessary permits, licenses and approvals, disputes with contractors, disruptions to our business caused by construction and other unanticipated circumstances or cost increases. 27 Table of Contents While we believe that the overall budgets for our planned capital expenditures are reasonable, these costs are estimates and the actual costs may be higher than expected.
The interest rate under our Fifth Amended Credit Facility is SOFR (the Secured Overnight Financing Rate) plus a margin ranging from 1.00% to 1.50% or a base rate plus a margin ranging from 0.0% to 0.5. The applicable margins will vary depending on the Company’s leverage ratio.
The interest rate under our Sixth Amended Credit Facility is SOFR (the Secured Overnight Financing Rate) plus a margin of 1.25% or a base rate plus a margin of 0.25%. The applicable margins will vary depending on the Company’s leverage ratio. As a result, we are exposed to interest rate risk.
OUR EXPANSION AND RENOVATION ACTIVITIES MAY DISRUPT OUR OPERATIONS ​ Although we plan our expansion and renovation projects to minimize disruption of our existing business operations, these projects require, from time to time, all or portions of affected existing operations to be closed or disrupted.
Significant delays, cost overruns, or failures of our projects to achieve market acceptance could have a material adverse effect on our business, financial condition and results of operations. ​ OUR EXPANSION AND RENOVATION ACTIVITIES MAY DISRUPT OUR OPERATIONS ​ Although we plan our expansion and renovation projects to minimize disruption of our existing business operations, these projects require, from time to time, all or portions of affected existing operations to be closed or disrupted.
Although we have insurance coverage with respect to some of these disasters or events, we cannot assure you that any such coverage will be sufficient to indemnify us fully against all direct and indirect costs, including any loss of business that could result from substantial damage to, or partial or complete destruction of, any of our properties. ​ WE ARE SUBJECT TO RISKS RELATED TO CORPORATE SOCIAL RESPONSIBILITY. ​ Governments, investors, customers, employees and other stakeholders are increasingly focusing on corporate environmental, social and governance (“ESG”) practices and disclosures, and expectations in this area are rapidly evolving and growing.
Although we have insurance coverage with respect to some of these disasters or events, we cannot assure you that any such coverage will be sufficient to indemnify us fully against all direct and indirect costs, including any loss of business that could result from substantial damage to, or partial or complete destruction of, any of our properties. ​ ​ ITEM 1B.
If we are unable to pay all amounts declared due and payable in the event of a default, the lenders could foreclose on these assets. ​ OUR VARIABLE RATE INDEBTEDNESS SUBJECTS US TO INTEREST RATE RISK, WHICH COULD CAUSE OUR DEBT SERVICE OBLIGATIONS TO INCREASE SIGNIFICANTLY ​ An increase in market interest rates would increase our interest expense arising on our indebtedness.
If an event of default under the agreement governing our Sixth Amended Credit Facility occurs, the lenders thereunder could elect to declare all amounts outstanding thereunder, together with accrued interest, to be immediately due and payable. ​ OUR VARIABLE RATE INDEBTEDNESS SUBJECTS US TO INTEREST RATE RISK, WHICH COULD CAUSE OUR DEBT SERVICE OBLIGATIONS TO INCREASE SIGNIFICANTLY ​ An increase in market interest rates would increase our interest expense arising on our indebtedness.
While we believe that the overall budgets for our planned capital expenditures are reasonable, these costs are estimates and the actual costs may be higher than expected. In addition, we cannot assure you that these investments will be sufficient or that we will realize our expected returns on our capital investments, or any returns at all.
In addition, we cannot assure you that these investments will be sufficient or that we will realize our expected returns on our capital investments, or any returns at all.
We can provide no assurance that any project will be completed on time, if at all, or within established budgets, or that any project will result in increased earnings to us. Significant delays, cost overruns, or failures of our projects to achieve market acceptance could have a material adverse effect on our business, financial condition and results of operations.
We can provide no assurance that any project will be completed on time, if at all, or within established budgets, or that any project will result in increased earnings to us.
As a result, we cannot assure you that we will be able to comply with these covenants. If an event of default under the agreement governing our Amended Credit Facility occurs, the lenders thereunder could elect to declare all amounts outstanding thereunder, together with accrued interest, to be immediately due and payable.
As a result, we cannot assure you that we will be able to comply with these covenants.
Removed
In addition, our Fifth Amended Credit Facility is secured by a first priority security interest in substantially all of our assets.
Added
(“PCL”), including, as previously reported, the litigation against us and liens by such contractor, the court’s decision, issued February 14, 2025, following the trial of the matter in 2023, and our likely appeal of that decision; ● affirmative and extensive counterclaims for construction defects, breach of contract, breach of warranty, fraud, fraudulent inducement, negligence and other construction related claims that we have filed against the Monarch Black Hawk contractor, PCL in the above-mentioned litigation in which the parties recently received the Court’s decision following the trial of the matter in 2023 and the potential appeal of that decision; ● our potential need to post bonds or other forms of surety to support our legal remedies, including in connection with the likely appeal noted above; ● risks related to development and construction activities (including disputes with and defaults by contractors and subcontractors; construction, equipment or staffing problems and delays; shortages of materials or skilled labor; environmental, health and safety issues; weather and other hazards, site access matters, and unanticipated cost increases); ● our ability to generate sufficient operating cash flow to help finance our expansion plans and subsequent debt reduction; ● changes in laws mandating increases in minimum wages and employee benefits; ● changes in laws and regulations permitting expanded and other forms of gaming in our key markets; ● the effects of local and national economic, credit and capital market conditions on the economy in general and on the gaming industry and our business in particular; ● the effects of labor shortages on our market position, growth and financial results; ● the potential of increases in state and federal taxation to address budgetary and other impacts of infectious disease outbreaks; ● the potential of increased regulatory and other burdens to address the direct and indirect impacts of infectious disease outbreaks; and ● guest acceptance of our expanded facilities once completed and the resulting impact on our market position, growth and financial results. ​ If our operating expenses increase without any offsetting increase in our revenues, our results of operations would suffer. ​ WIN RATES FOR OUR GAMING OPERATIONS DEPEND ON A VARIETY OF FACTORS, MANY OF WHICH ARE BEYOND OUR CONTROL, AND MAY RESULT IN THE WINNINGS OF OUR GAMING CUSTOMERS EXCEEDING OUR WINNINGS. ​ The gaming industry is characterized by an element of chance, and win rates are affected by a player’s skill and experience, the mix of games played, the financial resources of players, the spread of table limits, the volume of bets played and the amount of time played, among other factors.
Removed
In addition, SOFR-based loans will incur a 0.10% credit adjustment spread due to the conversion from LIBOR to SOFR as the new benchmark rate. As a result, we are exposed to interest rate risk.
Added
In addition, the stock market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to companies’ operating performance. Broad market and industry factors may materially harm the market price of our common stock, regardless of our operating performance.
Removed
Some of the factors are beyond our control and a change in any such factor could affect our ability to pay or maintain dividends.
Removed
Our reputation and the value of our brand may be significantly affected if we fail to act responsibly in a number of areas including diversity and inclusion, community engagement and philanthropy, 28 Table of Contents environmental sustainability, climate change, responsible gaming, supply chain management, and workplace conduct.
Removed
Our failure to adopt and implement responsible ESG policies could also impact employee engagement and retention and the willingness of customers and our partners to do business with us, which could have a material adverse effect on our business, results of operations and cash flows. ​ ​ ITEM 1B.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe outcomes of these assessments directly inform our cybersecurity strategy and guide the allocation of resources. ​ In response to the recent SEC cybersecurity disclosure rule, we have updated our cybersecurity program to incorporate the requirements to disclose, as appropriate or required and if deemed to be material, such a material incident via a Form 8-K within four (4) business days of determining the occurrence of such a cybersecurity incident. ​ 29 Table of Contents Management’s Role ​ Our chief information officer and our security architect are responsible for day-to-day assessing and managing the cybersecurity risk and threats through internal assessment tools as well as third-party control tests, for audits and evaluation against industry standards and regulations. ​ In addition, we have a management Cybersecurity committee, which is comprised of chief executive officer, chief information officer, corporate director of internal audit and executive vice president of finance.
Biggest changeThe outcomes of these assessments directly inform our cybersecurity strategy and guide the allocation of resources. ​ In response to the recent SEC cybersecurity disclosure rule, we have updated our cybersecurity program to incorporate the requirements to disclose, as appropriate or required and if deemed to be material, such a material incident via a Form 8-K within four (4) business days of determining the occurrence of such a cybersecurity incident. ​ Management’s Role ​ Our chief information officer and our security architect are responsible for day-to-day assessing and managing the cybersecurity risk and threats through internal assessment tools as well as third-party control tests, for audits and evaluation against industry standards and regulations.
At Monarch Casino & Resort, Inc., we understand that the security of our digital assets is essential to safeguarding our critical infrastructure, ensuring the confidentiality and integrity of sensitive information, maintaining business continuity, and fostering trust with our stakeholders. ​ We are developing and implementing a robust and comprehensive cybersecurity program that aligns with industry best practices, regulatory requirements, and our Company’s specific risks in the evolving threat landscape.
At Monarch Casino & Resort, Inc., we understand that the security of our digital assets is essential to safeguarding our critical infrastructure, ensuring the confidentiality and integrity of sensitive information, maintaining business continuity, and fostering trust with our stakeholders. ​ 28 Table of Contents We are developing and implementing a robust and comprehensive cybersecurity program that aligns with industry best practices, regulatory requirements, and our Company’s specific risks in the evolving threat landscape.
The board receives regular updates on cybersecurity program's status and effectiveness by the Cybersecurity committee. The audit committee oversees the cybersecurity program and provides strategic guidance to management, ensuring that our approach to cybersecurity remains robust, proactive, and aligned with our business needs. ​ 30 Table of Contents
The board receives regular updates on cybersecurity program's status and effectiveness by the Cybersecurity committee. The audit committee oversees the cybersecurity program and provides strategic guidance to management, ensuring that our approach to cybersecurity remains robust, proactive, and aligned with our business needs. ​ 29 Table of Contents
Added
Our chief information officer has over twenty-five years leading IT and Cybersecurity teams and continually improve his expertise through cybersecurity classes and collaborate with cybersecurity professionals in hospitality industry. ​ In addition, we have a management Cybersecurity committee, which is comprised of chief executive officer, chief information officer, corporate director of internal audit and executive vice president of finance.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeFinancial Statements and Supplementary Data – Notes to Consolidated Financial Statements, Notes 5 and 12. ​ Black Hawk, Colorado Properties: ​ (a) An approximate 3.4-acre site on which the Monarch Black Hawk is situated including the hotel tower, casino, conference facilities, resort facilities, restaurant facilities and surrounding parking. ​ (b) An approximate 9.0-acre parcel of land with an industrial building, located between Denver and Monarch Casino Resort Spa Black Hawk, in Clear Creek County, Colorado, which is used as a warehouse. ​ Except for the 37,400 square feet and 4.2-acre parcels of real property adjacent to the Atlantis which are referenced above, we own all of our properties. ​ As of December 31, 2023, our Amended Credit Facility is secured by liens on substantially all of our real and personal property. ​
Biggest changeFinancial Statements and Supplementary Data – Notes to Consolidated Financial Statements, Notes 5 and 12. ​ Black Hawk, Colorado Properties: ​ (a) An approximate 3.4-acre site on which the Monarch Black Hawk is situated including the hotel tower, casino, conference facilities, resort facilities, restaurant facilities and surrounding parking. ​ (b) An approximate 9.0-acre parcel of land with an industrial building, located between Denver and Monarch Casino Resort Spa Black Hawk, in Clear Creek County, Colorado, which is used as a warehouse. ​ Except for the 37,400 square feet and 4.2-acre parcels of real property adjacent to the Atlantis which are referenced above, we own all of our properties. ​ ​ ​
PROPERTIE S ​ As of December 31, 2023, our properties consist of: ​ Reno, Nevada Properties : ​ (a) An approximately 13-acre site on which the Atlantis is situated, including the hotel towers, casino, restaurant facilities and surrounding parking. ​ (b) An approximately 16-acre site, adjacent to the Atlantis and connected to the Atlantis by the Sky Terrace, which includes approximately 11 acres of paved parking used for customer, employee and valet parking.
PROPERTIE S ​ As of December 31, 2024, our properties consist of: ​ Reno, Nevada Properties : ​ (a) An approximately 13-acre site on which the Atlantis is situated, including the hotel towers, casino, restaurant facilities and surrounding parking. ​ (b) An approximately 16-acre site, adjacent to the Atlantis and connected to the Atlantis by the Sky Terrace, which includes approximately 11 acres of paved parking used for customer, employee and valet parking.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeITEM 3. LEGAL PROCEEDING S ​ This information is incorporated by reference from Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements, Note 11 of this Form 10-K. ​ ITEM 4. MINE SAFETY DISCLOSURE S ​ Not applicable. 31 Table of Contents PART II ​
Biggest changeITEM 3. LEGAL PROCEEDING S ​ This information is incorporated by reference from Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements, Note 11 of this Form 10-K. ​ ITEM 4. MINE SAFETY DISCLOSURE S ​ Not applicable. 30 Table of Contents PART II ​

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest change(2) In December 2023, under the authority of the Repurchase Plan, the Company purchased 84,503 shares at average price between $59.23 and $59.99 per share on the open market. ​ 32 Table of Contents STOCK PERFORMANCE GRAPH ​ The following chart reflects the cumulative total shareholder return (change in stock price plus reinvested dividends) of a $100 investment in our common stock from the five-year period from December 31, 2018 through December 31, 2023, in comparison to the Standard & Poor’s 500 Composite Stock Index and the Standard & Poor’s 1500 Casinos & Gaming Index.
Biggest changeWhile we intend to continue paying comparable cash dividends quarterly, there can be no assurance that our board of directors will declare dividends at all or on a regular basis or that the amount of our dividends will not change. ​ 31 Table of Contents STOCK PERFORMANCE GRAPH ​ The following chart reflects the cumulative total shareholder return (change in stock price plus reinvested dividends) of a $100 investment in our common stock from the five-year period from December 31, 2019 through December 31, 2024, in comparison to the Standard & Poor’s 500 Composite Stock Index and the Standard & Poor’s 1500 Casinos & Gaming Index.
The board of directors also approved, commencing in the second quarter of 2023, a recurring annual cash dividend of $1.20 per outstanding share of Common Stock to be paid in quarterly amounts. In 2023 we paid $5.90 per share of its outstanding common stock. See Item 8.
The board of directors also approved, commencing in the second quarter of 2023, a recurring annual cash dividend of $1.20 per outstanding share of Common Stock to be paid in quarterly amounts. In 2024 we paid $1.20 per share of its outstanding common stock. See Item 8.
The actual timing, number and value of shares repurchased under the Repurchase Plan will be determined by management at its discretion and will depend on a number of factors, including the market price of our common stock, general market economic conditions and applicable legal requirements. ​ During the fourth quarter ended December 31, 2023, the Company purchased 84,503 shares of Company’s common stock on the open market under the Repurchase Plan.
The actual timing, number and value of shares repurchased under the Repurchase Plan will be determined by management at its discretion and will depend on a number of factors, including the market price of our common stock, general market economic conditions and applicable legal requirements. ​ During the fourth quarter ended December 31, 2024, the Company purchased no shares of the Company’s common stock on the open market under the Repurchase Plan.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIE S ​ Market Information. Our common stock trades on The Nasdaq Stock Market under the symbol MCRI. ​ Stockholders. As of February 15, 2024, there were approximately 61 stockholders of record of our common stock. ​ Dividends.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIE S ​ Market Information. Our common stock trades on The Nasdaq Stock Market under the symbol MCRI. ​ Stockholders. As of February 14, 2025, there were approximately 101 stockholders of record of our common stock. ​ Dividends.
The comparisons are not intended to forecast or be indicative of possible future performance of our common stock. ​ The following performance graph shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act, nor shall this information be incorporated by reference into any future filing under the Securities Act or the Exchange Act, except to the extent that we specifically incorporate it by reference into a filing. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period Ending ​ Index 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 Monarch Casino & Resort, Inc. ​ 100.00 ​ 127.29 ​ 160.51 ​ 193.89 ​ 201.60 ​ 196.32 S&P 500 Index 100.00 131.49 155.68 200.37 164.08 207.21 ​ S&P 1500 Casinos & Gaming Index 100.00 150.30 173.56 171.00 135.35 156.34 ​ ​ Source: S&P Global Market Intelligence © 2024 ​ ​ 33 Table of Contents Repurchases ​ On October 22, 2014, the board of directors of Monarch authorized a stock repurchase plan (the “Repurchase Plan”).
The comparisons are not intended to forecast or be indicative of possible future performance of our common stock. ​ The following performance graph shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act, nor shall this information be incorporated by reference into any future filing under the Securities Act or the Exchange Act, except to the extent that we specifically incorporate it by reference into a filing. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period Ending ​ Index 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Monarch Casino & Resort, Inc. ​ 100.00 ​ 126.10 ​ 152.32 ​ 158.37 ​ 154.22 ​ 178.88 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 ​ S&P 1500 Casinos & Gaming Index 100.00 115.48 113.77 90.05 104.02 97.42 ​ ​ Source: S&P Global Market Intelligence © 2024 ​ ​ 32 Table of Contents Repurchases ​ On October 22, 2014, the board of directors of Monarch authorized a stock repurchase plan (the “Repurchase Plan”).
As of December 31, 2023, we have an authorization to purchase up to 2,815,497 shares under the Repurchase Plan. ​ ​
As of December 31, 2024, we have an authorization to purchase up to 1,950,040 shares under the Repurchase Plan. ​ ​ ITEM 6. RESERVED ​ ​ 33 Table of Contents
Removed
While we intend to pay dividends quarterly, there can be no assurance that our board of directors will declare dividends at all or on a regular basis or that the amount of our dividends will not change. ​ Unregistered Purchases of Equity Securities ​ The following table presents the number and average price of shares purchased in each fiscal month of the fourth quarter of fiscal 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total number of shares purchased (1) Average price paid per share (2) ​ Total number of shares purchased as part of publicly announced plans or programs (1) (2) ​ Maximum number of shares that may yet be purchased under the plans or programs (2) October 1, 2023 - October 31, 2023 ​ 84,503 ​ $ 59.46 ​ 184,503 ​ 2,815,497 November 1, 2023 - November 30, 2023 ​ — ​ — ​ — ​ 2,815,497 December 1, 2023 - December 31, 2023 ​ — ​ — ​ — ​ 2,815,497 Total ​ 84,503 ​ $ 59.46 ​ 184,503 ​ 2,815,497 (1) This amount represents a repurchase pursuant to our Repurchase Plan, see Note 8.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeTherefore, you should not rely on any of these forward-looking statements. ​ Various risks and uncertainties may affect the operation, performance, development and results of our business and could cause future outcomes to change significantly from those set forth in our forward-looking statements, including the following factors: ​ ● our ability to successfully implement our business and growth strategies; ● our ability to successfully defend against and remove the liens recorded against the Monarch Black Hawk by the general contractor and certain subcontractors with respect to the expansion and renovation of the property; ● access to available and reasonable financing on a timely basis; ● our ability to maintain strong working relationships with our regulators, employees, lenders, suppliers, insurance carriers, customers, and other stakeholders; ● impact of any uninsured losses; 35 Table of Contents ● changes in guest visitation or spending patterns due to health or other concerns; ● construction factors, including delays, disruptions, availability of labor and materials, increased costs of labor and materials, contractor disagreements, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, building permit issues and other regulatory approvals or issues; ● ongoing disagreements over costs of and responsibility for delays and other construction related matters with our Monarch Black Hawk general contractor, PCL Construction Services, Inc., including, as previously reported, the litigation against us by such contractor; ● affirmative and extensive counterclaims for construction defects, breach of contract, breach of warranty, fraud, fraudulent inducement, negligence and other construction related claims that we have filed against the Monarch Black Hawk contractor, PCL Construction Services, Inc., in the above-mentioned litigation in which litigation the parties are currently awaiting the Court’s decision following the trial of the matter in September, October, and November of 2023; ● our potential need to post bonds or other forms of surety to support our legal remedies; ● risks related to development and construction activities (including disputes with and defaults by contractors and subcontractors; construction, equipment or staffing problems and delays; shortages of materials or skilled labor; environmental, health and safety issues; weather and other hazards, site access matters, and unanticipated cost increases); ● changes in laws mandating increases in minimum wages and employee benefits; ● changes in laws, rules and regulations permitting expanded and other forms of gaming in our key markets; ● the effects of labor shortages on our market position, growth and financial results; ● current broad-based inflation on the economy, including wage inflation; ● the potential of increases in state and federal taxation to address budgetary and other impacts of the COVID-19 pandemic; ● the potential of increased regulatory and other burdens to address the direct and indirect impacts of the spread of infectious diseases, including COVID-19 pandemic; ● guest acceptance of our expanded facilities at Monarch Black Hawk and the resulting impact on our market position, growth and financial results; ● competition in our target market areas; ● our dependence on two resorts; ● our ability to realize the anticipated benefits of our expansion and renovation projects, including the Monarch Black Hawk Expansion; ● our ability to effectively manage expenses to optimize our margins and operating results; ● risks related to our present indebtedness and future borrowings and our ability to meet our debt obligations and comply with our loan covenants; ● adverse trends in the gaming industries; ● changes in patron demographics; ● general market and economic conditions, including but not limited to, the effects of local and national economic, credit and capital market conditions, housing and energy conditions on the economy in general and on the gaming and lodging industries in particular; ● our ability to generate sufficient operating cash flow to finance our expansion plans and fund working capital; ● the impact of rising interest rates and our ability to refinance debt as it matures at commercially reasonable rates or at all; ● disruptions and shortages in the supply chain; ● ability of large stockholders to influence our affairs; ● our dependence on key personnel; ● the availability of adequate levels of insurance; ● changes in federal, state, and local laws, rules and regulations, including environmental and gaming licenses or legislation and regulations; ● our ability to comply with existing laws and regulations to which we are subject; 36 Table of Contents ● our ability to obtain and maintain gaming and other governmental licenses and regulatory approvals; ● any violations by us of the anti-money laundering laws; ● cybersecurity risks, including misappropriation of customer information or other breaches of information security; ● impact of natural disasters, severe weather, terrorist activity and similar events; ● competitive environment, including increased competition in our target market areas; ● increases in the effective rate of taxation at any of our properties or at the corporate level; ● our ability to successfully estimate the impact of accounting, tax and legal matters; ● risks, uncertainties and other factors described from time to time in this and our other SEC filings and reports; ● the effects of macro and micro economic conditions on employment growth in the economy in general; ● the effects of labor shortages on our ability to grow our business and to expand our market share in each of our key markets; ● our ability to generate sufficient cash flow and manage our expenses to deleverage the Company; and ● the impact of the events occurring in Eastern Europe, including the conflict taking place in Ukraine, and other parts of the world ; ● adverse impacts of the COVID-19 pandemic or other infectious disease outbreak on our business, construction projects, financial condition and operating results; ● actions by government officials at the federal, state and/or local level with respect to steps to be taken, including, without limitation, temporary or extended shutdowns, travel restrictions, social distancing and shelter-in-place orders, in connection with the COVID-19 pandemic or other infectious disease outbreak; ● our ability to manage guest safety concerns caused by COVID-19 or other infectious disease outbreak. ​ For a more detailed description of certain Risk Factors affecting our business, see Item 1A, “Risk Factors.” ​ We undertake no obligation to publicly update or revise any forward-looking statements as a result of future developments, events or conditions, except as required by law.
Biggest changeTherefore, you should not rely on any of these forward-looking statements. ​ Various risks and uncertainties may affect the operation, performance, development and results of our business and could cause future outcomes to change significantly from those set forth in our forward-looking statements, including the following factors: ​ ● our ability to successfully implement our business and growth strategies; ● our ability to successfully defend against and remove the liens recorded against the Monarch Black Hawk by the general contractor and certain subcontractors with respect to the expansion and renovation of the property; ● access to available and reasonable financing on a timely basis; ● our ability to maintain strong working relationships with our regulators, employees, lenders, suppliers, insurance carriers, customers, and other stakeholders; ● impact of any uninsured losses; 34 Table of Contents ● changes in guest visitation or spending patterns due to health or other concerns; ● construction factors, including delays, disruptions, availability of labor and materials, increased costs of labor and materials, contractor disagreements, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters, building permit issues and other regulatory approvals or issues; ● ongoing disagreements over costs of and responsibility for delays and other construction related matters with our Monarch Black Hawk general contractor, PCL including, as previously reported, the litigation against us by such contractor, the court’s decision, issued February 14, 2025, following the trial of the matter in 2023, and our likely appeal of that decision; ● affirmative and extensive counterclaims for construction defects, breach of contract, breach of warranty, fraud, fraudulent inducement, negligence and other construction related claims that we have filed against the Monarch Black Hawk contractor, PCL in the above-mentioned litigation in which litigation the parties recently received the Court’s decision following the trial of the matter in 2023 and likely appeal of that decision; ● our potential need to post bonds or other forms of surety to support our legal remedies, including in connection with the potential appeal noted above; ● risks related to development and construction activities (including disputes with and defaults by contractors and subcontractors; construction, equipment or staffing problems and delays; shortages of materials or skilled labor; environmental, health and safety issues; weather and other hazards, site access matters, and unanticipated cost increases); ● changes in laws mandating increases in minimum wages and employee benefits; ● changes in laws, rules and regulations permitting expanded and other forms of gaming in our key markets; ● the effects of labor shortages on our market position, growth and financial results; ● current broad-based inflation on the economy, including supply and wage inflation; ● the potential of increased regulatory and other burdens to address the direct and indirect impacts of the spread of infectious diseases; ● guest acceptance of our expanded facilities at Monarch Black Hawk and the resulting impact on our market position, growth and financial results; ● competition in our target market areas; ● our dependence on two resorts; ● our ability to realize the anticipated benefits of our expansion and renovation projects, including the Monarch Black Hawk Expansion; ● our ability to effectively manage expenses to optimize our margins and operating results; ● risks related to our present indebtedness and future borrowings and our ability to meet our debt obligations and comply with our loan covenants; ● adverse trends in the gaming industries; ● changes in patron demographics; ● general market and economic conditions, including but not limited to, the effects of local and national economic, credit and capital market conditions, housing and energy conditions on the economy in general and on the gaming and lodging industries in particular; ● our ability to generate sufficient operating cash flow to finance our expansion plans and fund working capital; ● the impact of rising interest rates and our ability to refinance debt as it matures at commercially reasonable rates or at all; ● disruptions and shortages in the supply chain; ● ability of large stockholders to influence our affairs; ● our dependence on key personnel; ● the availability of adequate levels of insurance; ● changes in federal, state, and local laws, rules and regulations, including environmental and gaming licenses or legislation and regulations; ● our ability to comply with existing laws and regulations to which we are subject; 35 Table of Contents ● our ability to obtain and maintain gaming and other governmental licenses and regulatory approvals; ● any violations by us of the anti-money laundering laws; ● cybersecurity risks, including misappropriation of customer information or other breaches of information security; ● impact of natural disasters, severe weather, terrorist activity and similar events; ● competitive environment, including increased competition in our target market areas; ● increases in the effective rate of taxation at any of our properties or at the corporate level; ● our ability to successfully estimate the impact of accounting, tax and legal matters; ● risks, uncertainties and other factors described from time to time in this and our other SEC filings and reports; ● the effects of macro and micro economic conditions on employment growth in the economy in general; ● the effects of labor shortages on our ability to grow our business and to expand our market share in each of our key markets; ● our ability to generate sufficient cash flow and manage our expenses to deleverage the Company; ● the impact of the events occurring in Eastern Europe and other parts of the world, including the conflict taking place in Ukraine and Israel; ● adverse impacts of an infectious disease outbreak on our business, construction projects, financial condition and operating results; ● actions by government officials at the federal, state and/or local level with respect to steps to be taken, including, without limitation, temporary or extended shutdowns, travel restrictions, social distancing and shelter-in-place orders, in connection with an infectious disease outbreak; ● our ability to manage guest safety concerns caused by an infectious disease outbreak; and ● the impact of newly proposed tariffs imposed on goods originating from Mexico, Canada or China. ​ For a more detailed description of certain Risk Factors affecting our business, see Item 1A, “Risk Factors.” ​ We undertake no obligation to publicly update or revise any forward-looking statements as a result of future developments, events or conditions, except as required by law.
Our win and hold percentages are calculated before discounts, commissions, deferring revenue associated with our loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis. ​ 38 Table of Contents Food and Beverage revenue KPI: The main KPIs in managing our food and beverage (“F&B”) operations are covers and average revenue per cover.
Our win and hold percentages are calculated before discounts, commissions, deferring revenue associated with our loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis. ​ 37 Table of Contents Food and Beverage revenue KPI: The main KPIs in managing our food and beverage (“F&B”) operations are covers and average revenue per cover.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. ​ CAPITAL SPENDING AND DEVELOPMENT ​ We seek to continuously upgrade and maintain our facilities in order to present a fresh, high quality product to our guests.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. ​ CAPITAL SPENDING AND DEVELOPMENT ​ We seek to continuously upgrade and maintain our facilities in order to present a fresh, high quality product to our guests.
We use historical data and projections to estimate expected volatility and expected employee behaviors related to option exercises and forfeitures. 43 Table of Contents ​ RECENTLY ISSUED ACCOUNTING STANDARDS ​ A variety of proposed or otherwise potential accounting standards are currently under review and study by standard-setting organizations and certain regulatory agencies.
We use historical data and projections to estimate expected volatility and expected employee behaviors related to option exercises and forfeitures. ​ 42 Table of Contents RECENTLY ISSUED ACCOUNTING STANDARDS ​ A variety of proposed or otherwise potential accounting standards are currently under review and study by standard-setting organizations and certain regulatory agencies.
Intercompany balances and transactions are eliminated. ​ Casino Revenues Casino revenues represent the net win from gaming activity, which is the difference between the amounts won and lost, which represents the transaction price. Jackpots, other than the incremental amount of progressive jackpots, are recognized at the time they are won by customers.
Intercompany balances and transactions are eliminated. ​ 41 Table of Contents Casino Revenues Casino revenues represent the net win from gaming activity, which is the difference between the amounts won and lost, which represents the transaction price. Jackpots, other than the incremental amount of progressive jackpots, are recognized at the time they are won by customers.
To provide an understanding of the methodologies applied, our significant accounting policies are discussed where appropriate in this discussion and analysis and in the Notes to Consolidated Financial Statements. 42 Table of Contents ​ The consolidated financial statements include the accounts of Monarch and its subsidiaries.
To provide an understanding of the methodologies applied, our significant accounting policies are discussed where appropriate in this discussion and analysis and in the Notes to Consolidated Financial Statements. ​ The consolidated financial statements include the accounts of Monarch and its subsidiaries.
Example of forward-looking statements include, among others, statements we make regarding: (i) our belief that we have sufficient liquidity to fund our operations and any remaining renovation projects, litigation costs and ongoing capital expenditures; (ii) our belief that our business is well-positioned to benefit from the continued gaming industry expansion after the pandemic; (iii) our expectation regarding the availability of future acquisition opportunities; (iv) our beliefs regarding the quality of our products and guest services in Reno and Black Hawk; (v) our expectations regarding our guests' acceptance of the expanded casino, new hotel and enhanced amenities at Monarch Casino Resort Spa Black Hawk; (vi) our expectations regarding our future position in, and share of, the high-end segment of the market and the quality of service we provide to our guests; (vii) our expectations regarding the litigation relating to the construction of the Monarch Black Hawk expansion and related liens recorded by the general contractor and certain subcontractors against the Monarch Black Hawk; (viii) our belief regarding the proximity that the Reno-Sparks Convention Center will have for the Atlantis and the normalization of the convention business to pre-pandemic levels; (ix) the continuing strength of our balance sheet and our expected free cash flow; (x) our expectations regarding continuing our dividend payments in the future; (xi) our belief regarding the appeal of the locations of our properties to certain segments of our customers; and (xii) our expectations regarding broad-based employment growth in the Reno market.
Example of forward-looking statements include, among others, statements we make regarding: (i) our belief that we have sufficient liquidity to fund our operations and any remaining renovation projects, litigation costs and ongoing capital expenditures; (ii) our belief that our business is well-positioned to benefit from the continued gaming industry expansion after the pandemic; (iii) our expectation regarding the availability of future acquisition opportunities; (iv) our beliefs regarding the quality of our products and guest services in Reno and Black Hawk; (v) our expectations regarding our guests' acceptance of the casino, hotel and related amenities at Monarch Casino Resort Spa Black Hawk and Atlantis; (vi) our expectations regarding our future position in, and share of, the high-end segment of the market and the quality of service we provide to our guests; (vii) our expectations regarding the litigation and any appeal relating to the construction of the Monarch Black Hawk expansion and related liens recorded by the general contractor and certain subcontractors against the Monarch Black Hawk; (viii) our belief regarding the proximity that the Reno-Sparks Convention Center will have on the Atlantis; (ix) the continuing strength of our balance sheet and our expected free cash flow; (x) our expectations regarding continuing our dividend payments in the future; (xi) our belief regarding the appeal of the locations of our properties to certain segments of our customers; (xii) our expectations regarding broad-based employment growth in the Reno market; and (xiii) our beliefs regarding the impact that Monarch Rewards will have on guest loyalty at each of our properties.
Our hands-on management style focuses on customer service and cost efficiencies. 37 Table of Contents ​ FACTORS IMPACTING OUR RESULTS OF OPERATIONS ​ Our operating results may be affected by, among other things, competitive factors, gaming tax increases, mandated minimum wages, the commencement of new gaming operations, renovations at our facilities, general public sentiment regarding travel and public gatherings, overall economic conditions and governmental policies affecting the disposable income of our patrons, public health conditions including both pandemics such as the global coronavirus (COVID-19) pandemic and localized outbreaks of infectious diseases, terrorism and weather conditions affecting our properties, as well as those matters discussed in Item 1A.
Our hands-on management style focuses on customer service and cost efficiencies. 36 Table of Contents ​ FACTORS IMPACTING OUR RESULTS OF OPERATIONS ​ Our operating results may be affected by, among other things, competitive factors, gaming tax increases, mandated minimum wages, the commencement of new gaming operations, renovations at our facilities, general public sentiment regarding travel and public gatherings, overall economic conditions and governmental policies affecting the disposable income of our patrons, public health conditions including global pandemics and localized outbreaks of infectious diseases, terrorism and weather conditions affecting our properties, as well as those matters discussed in Item 1A.
These expenses are included in Other operating items, net in the Consolidated Statements of Operations. ​ During the year ended December 31, 2023, we decreased the outstanding principal balance under our Amended Credit Facility by $1.5 million to $5.5 million as of December 31, 2023.
These expenses are included in Other operating items, net in the Consolidated Statements of Operations. ​ During the year ended December 31, 2024, we decreased the outstanding principal balance under our Amended Credit Facility by $5.5 million to no balance outstanding as of December 31, 2024.
During 2023 and 2022, we recognized $1.6 million and $2.4 million, respectively, in interest expense, net of interest income. See further discussion of our Amended Credit Facility in the LIQUIDITY AND CAPITAL RESOURCES section below. ​ 40 Table of Contents Comparison of Operating Results for the Years Ended December 31, 2022 and 2021 ​ Refer to ITEM 7.
During 2024 and 2023, we recognized $0.1 million and $1.6 million, respectively, in interest expense, net of interest income. See further discussion of our Amended Credit Facility in the LIQUIDITY AND CAPITAL RESOURCES section below. ​ Comparison of Operating Results for the Years Ended December 31, 2023 and 2022 ​ Refer to ITEM 7.
Purchase obligations of materials and supplies used in the normal operation of our business represent approximately $16.3 million as of December 31, 2023 and all are cancelable by us upon providing a 30-day notice. ​ Amended Credit Facility ​ On February 1, 2023, the Company entered into the Fifth Amended and Restated Credit Agreement (the “Amended Credit Facility”) with Wells Fargo Bank, N.A., as administrative agent.
Purchase obligations of materials and supplies used in the normal operation of our business represent approximately $18.3 million as of December 31, 2024 and all are cancelable by us upon providing a 30-day notice. ​ Amended Credit Facility ​ On December 31, 2024, the Company entered into the Sixth Amended and Restated Credit Agreement (the “Sixth Amended Credit Facility”) with Wells Fargo Bank, N.A., as administrative agent.
Food and beverage operating expense as a percentage of food and beverage revenue in the year ended December 31, 2023 was 72.4% compared to 75.5% over the same period in 2022.
Food and beverage operating expense as a percentage of food and beverage revenue in the year ended December 31, 2024 was 73.7% compared to 72.4% for the same period in 2023.
Net cash used in investing activities during the years ended December 31, 2023 and 2022 consisted primarily of cash used for renovation projects at Atlantis, and for the acquisition of gaming and other equipment at both properties. ​ Financing Activities ​ Net cash used in financing activities of $117.2 million in 2023 represented $112.8 million used for payment of dividends, $5.0 million used for the repurchase of Company common stock under the Repurchase Plan and $1.5 million principal payments under the Amended Credit Facility, offset by $2.1 million of proceeds from stock options exercise, net of payroll taxes from net exercises.
Net cash used in investing activities during the years ended December 31, 2024 and 2023 consisted primarily of cash used for hotel rooms redesign and upgrade project at Atlantis, and for the acquisition of gaming and other equipment at both properties. ​ Financing Activities ​ Net cash used in financing activities of $81.5 million in the year ended December 31, 2024 represented $60.0 million used for the repurchase of Company common stock under the Repurchase Plan, $22.3 million used for payment of dividends, and $5.5 million principal payments under the Amended Credit Facility, offset by $6.2 million of proceeds from stock options exercise, net of payroll taxes from net exercises.
Capital expenditures during the years ended December 31, 2023 and 2022 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 Atlantis ​ $ 43,634 ​ $ 32,058 ​ Monarch Black Hawk ​ 7,762 ​ 16,353 ​ ​ ​ $ 51,396 ​ $ 48,411 ​ ​ During the years ended December 31, 2023 and 2022, capital expenditures related primarily to the major redesign and upgrade of all hotel rooms in the first and second towers and complete renovation of the high-end suites on the top floors of the third hotel tower at Atlantis, the redesign and upgrade of the Oyster and Sushi Bar Restaurant located in the Sky Terrace at Atlantis and the acquisition of gaming equipment at both of our properties. ​ LIQUIDITY AND CAPITAL RESOURCES ​ Our principal sources of liquidity are cash provided by operations and, for capital expansion projects, borrowings available under our Amended Credit Facility. ​ Operating Activities ​ For the year ended December 31, 2023, net cash provided by operating activities totaled $173.0 million, an increase of $33.3 million, or 23.8%, compared to the same period of the prior year.
Capital expenditures during the years ended December 31, 2024 and 2023 were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 2023 Atlantis ​ $ 38,091 ​ $ 43,634 ​ Monarch Black Hawk ​ 5,806 ​ 7,762 ​ ​ ​ $ 43,897 ​ $ 51,396 ​ ​ 39 Table of Contents During the years ended December 31, 2024 and 2023, capital expenditures related primarily to the major redesign and upgrade of all hotel rooms at Atlantis, the redesign and upgrade of the Oyster and Sushi Bar Restaurant located in the Sky Terrace at Atlantis and the acquisition of gaming equipment at both of our properties. ​ LIQUIDITY AND CAPITAL RESOURCES ​ Our principal sources of liquidity are cash provided by operations and, for capital expansion projects, borrowings available under our Amended Credit Facility. ​ Operating Activities ​ For the year ended December 31, 2024, net cash provided by operating activities totaled $140.7 million, a decrease of $32.3 million, or 18.7%, compared to the same period of the prior year.
Net revenue for the years ended December 31, 2023 and 2022 were $501.5 million and $477.9 million, respectively, reflecting an increase of $23.6 million, or 4.9%. ​ 39 Table of Contents Casino revenue increased 4.3% in the year ended December 31, 2023, compared to the same period of 2022.
Net revenue for the years ended December 31, 2024 and 2023 were $522.2 million and $501.5 million, respectively, reflecting an increase of $20.7 million, or 4.1%. ​ Casino revenue increased 4.1% in the year ended December 31, 2024, compared to the same period of 2023.
This increase was primarily due to a $23.8 million federal income tax refund received from IRS, and a $14.4 million change in working capital, of which $12.8 million is from an increase in accounts payable, primarily construction payable, offset by $5.0 million decrease in net income. ​ Investing Activities ​ Net cash used in investing activities totaled $51.2 million and $48.0 million in the years ended December 31, 2023 and 2022, respectively.
This decrease was primarily due to a $24.5 million federal income tax resulting from a refund received from IRS in 2023, $9.8 million decrease in deferred tax liability and $9.7 million decrease in net income, offset by a $7.8 million change in working capital and $4.0 increase in depreciation expense. ​ Investing Activities ​ Net cash used in investing activities totaled $43.8 million and $51.2 million in the years ended December 31, 2024 and 2023, respectively.
As of December 31, 2023, the interest rate was 8.50%, or SOFR plus a 1.00% margin. ​ We believe that the expected cash flows from operating activities and the $93.9 million available under our Amended Credit Facility as of December 31, 2023 will be sufficient to support our current operations, meet our debt obligations and fulfill our capital expenditure plans for the twelve months from the filing of Form 10-K for the year ended December 31, 2023; however, we are surrounded by uncertainty about financial, economic, competitive, regulatory, and other factors, many of which are beyond our control.
We believe that we are in full compliance. ​ As of December 31, 2024, the Company had no outstanding principal balance under the Sixth Amended Credit Facility, a $0.6 million standby letter of credit and $99.4 million remained available for borrowing. ​ We believe that the expected cash flows from operating activities and the $99.4 million available under our Amended Credit Facility as of December 31, 2024 will be sufficient to support our current operations, meet our debt obligations and fulfill our capital expenditure plans for the twelve months from the filing of Form 10-K for the year ended December 31, 2024; however, we are surrounded by uncertainty about financial, economic, competitive, regulatory, and other factors, many of which are beyond our control.
During the year ended December 31, 2022, we recognized $7.3 million in construction litigation expense related to the lawsuit filed by the Monarch Black Hawk Expansion construction project general contractor against the Company and our countersuit against the general contractor, offset by $0.1 million of gain on disposed assets and $0.1 million of insurance claims proceeds.
During the year ended December 31, 2023, we recognized, $6.9 million in construction litigation expense related to the lawsuit filed by the Monarch Black Hawk Expansion construction project general contractor against the Company and our countersuit against the general contractor and $0.2 million in loss on disposal of assets, offset by $1.2 million net proceeds from a sale of a corona virus (“COVID”) closure related insurance claim.
Net cash used in financing activities of $86.5 million in 2022 represented $83.0 million principal payments under the Amended Credit Facility and $6.5 million used for the for repurchase of Company common stock under the Repurchase Plan, offset by $3.0 million of proceeds from stock options exercise, net of payroll taxes from net exercises.
Net cash used in financing activities of $117.2 million in the year ended December 31, 2023 represented $112.8 million used for payment of dividends, $5.0 million used for the repurchase of Company common stock under the Repurchase Plan and $1.5 million principal payments under the Amended Credit Facility, offset by $2.1 million of processed from stock options exercise, net of payroll taxes from net exercises.
The Amended Credit Facility provides for a $100 million line of credit which matures on January 1, 2025. ​ As of December 31, 2023, the Company had an outstanding principal balance of $5.5 million under the Amended Credit Facility, a $0.6 million letter of credit and $93.9 million remained available for borrowing. ​ Borrowings under the Amended Credit Facility are secured by liens on substantially all of the Company’s real and personal property. ​ In addition to other customary covenants for a facility of this nature, as of December 31, 2023, we are required to maintain a Total Leverage Ratio (as defined in the Amended Credit Facility) of no more than 4.0:1 and Fixed Charge Coverage Ratio (as defined in the Amended Credit Facility) of at least 1.15:1.
As of December 31, 2024, the Company had no outstanding principal balance under the Amended Credit Facility, a $0.6 million standby letter of credit and $99.4 million remained available for borrowing. ​ In addition to other customary covenants for a facility of this nature, as of December 31, 2024, the Company is required to maintain a Total Leverage Ratio (as defined in the Sixth Amended Credit Facility) of no more than 1.5:1.0 and Fixed Charge Coverage Ratio (as defined in the Sixth Amended Credit Facility) of at least 1.1:1.0.
Net income and diluted EPS for the years ended December 31, 2023 and 2022, were impacted by: i) the effective tax rate (24.0% in 2023 and 19.8% in 2022), which varied primarily based on the amount of the excess tax benefit on stock compensation and drove a $4.8 million and $0.24 decrease in net income and diluted EPS, respectively; and ii) higher depreciation expense in 2023 compared to 2022, which drove $3.9 million and $0.19 decrease in net income and diluted EPS, respectively.
Net income and diluted EPS for the years ended December 31, 2024 and 2023, were impacted by: i) $27.6 million loss on litigation between Monarch and PCL recognized in the year ended December 31, 2024; ii) higher depreciation expense ($51.4 million and $47.3 million in 2024 and 2023, respectively); offset by i) the effective tax rate (21.6% in 2024 and 24.0% in 2023), based primarily on the amount of the excess tax benefit on stock compensation; ii) lower legal and consulting costs related to the litigation between Monarch and PCL ($0.8 million and $6.9 million in 2024 and 2023, respectively).
Casino operating expense as a percentage of casino revenue increased to 36.4% for the year ended December 31, 2023, compared to 35.1% in 2022, primarily due to increases in labor and slots participation expenses, as well as an increase in promotional allowances at both properties . ​ Food and beverage revenue increased 8.1% in the year ended December 31, 2023 over the same period in 2022, due to a 5.6% increase in average revenue per cover combined with a 2.4% increase in covers.
Casino operating expense as a percentage of casino revenue increased to 37.2% for the year ended December 31, 2024, compared to 36.4% for the same period in 2023, primarily due to increases in labor expense and technology related expense. ​ Food and beverage revenue increased 0.7% in the year ended December 31, 2024 over the same period in 2023, due to a 1.6% increase in average revenue per cover partially offset by a 0.9% decrease in covers.
RevPAR was $159.20 in 2023 and $153.44 in 2022. Hotel operating expense as a percent of the hotel revenue for the year ended December 31, 2023 was 37.2% compared to 35.8% for the same period in 2022. The decrease in the hotel expense margin was primarily due to the decrease in ADR.
RevPAR was $220.28 in the year ended December 31, 2024 and $209.71 for the same period in 2023. Hotel operating expense as a percent of the hotel revenue for the year ended December 31, 2024 was 34.3% compared to 37.2% for the same period in 2023.
We expect to receive the rest of the refund in the next few quarters. 41 Table of Contents We expect that the Company’s cash position in the next several quarters may be negatively impacted by the outstanding construction retention and other payments related to the Monarch Black Hawk Expansion project of $47.6 million, which are reflected in “Construction Accounts Payable” on the balance sheet as of December 31, 2023.
We expect that the Company’s cash position in the next quarters may be negatively impacted by the outstanding payments related to the Monarch Black Hawk Expansion project litigation and the judgment of $74.6 million issued February 14, 2025, which are included in the Current Liability on the balance sheet as of December 31, 2024.
As a percentage of net revenue, SG&A expense increased to 21.1% in 2023 from 20.4% in 2022. ​ Depreciation and amortization expense increased to $47.3 million for the year ended December 31, 2023, as compared to $43.4 million for the same period in 2022 primarily due to the addition of assets related to the redesign and upgrade of the hotel rooms at Atlantis and the Oyster and Sushi Bar Restaurant located on the Sky Terrace at Atlantis. ​ During the year ended December 31, 2023, we recognized $6.9 million in construction litigation expense related to the lawsuit filed by the Monarch Black Hawk Expansion construction project general contractor against the Company and our countersuit against the general contractor and $0.2 million in loss on disposal of assets, offset by $1.2 million net proceeds from a sale of a COVID closure related insurance claim.
As a percentage of net revenue, SG&A expense decreased to 20.7% in the year ended December 31, 2024 from 21.1% in the corresponding prior year period 2023. ​ Depreciation and amortization expense increased to $51.4 million for the year ended December 31, 2024, as compared to $47.3 million for the same period in 2023 primarily due to the addition of assets related to the redesign and upgrade of the hotel rooms at Atlantis, as well as ongoing maintenance capital expenditures at both properties. ​ During the year ended December 31, 2024, we recognized $27.6 million loss relating to the principal judgment on the litigation between Monarch and PCL, $0.8 million in construction litigation expense related to the litigation between Monarch and PCL and $0.2 million in loss on disposal of assets.
The group and convention business is still below the pre-pandemic level. ​ Other revenue increased 14.9% in 2023 compared to 2022 driven primarily by increases in spa and retail revenues, partially offset by a decline in arcade revenue. ​ SG&A expense increased to $105.8 million in the year ended December 31, 2023 from $97.6 million in the same period of 2022 due to: i) a $3.8 million increase in salaries, wages and related employee benefits expense; ii) a $1.1 million increase in property taxes; iii) a $1.1 million increase in utility expense; iv) a $1.1 million increase in repairs and maintenance expense; v) a $0.5 million increase in insurance expense; and vi) a $0.6 million increase in other expenses.
The decrease in the hotel expense margin was primarily due to the increase in ADR and effective cost management. ​ Other revenue increased 13.8% in the year ended December 31, 2024 compared to the same period in 2023 driven primarily by increases in spa and commission revenues. ​ SG&A expense increased to $108.3 million in the year ended December 31, 2024 from $105.8 million in the same period of 2023 due to: i) a $2.6 million increase in salaries, wages and related employee benefits expense; ii) a $0.8 million increase in repairs and maintenance expense; offset by a $0.7 million decrease in utility expense.
In managing the food and beverage operation we use Cost Of Goods Sold (“COGS”) percentage, which represents a percentage of product cost to the food and beverage revenue and is a measurement of commodity prices and menu sales prices. ​ Our management evaluates the KPI as compared to prior periods, the peer group, or market, as well as for any trends. ​ RESULTS OF OPERATIONS ​ Monarch Casino Resort Spa Black Hawk Expansion ​ Our financial results for the years ended December 31, 2023, 2022 and 2021 were positively impacted by the phased opening and ramp up of operations at our newly transformed Monarch Black Hawk.
In managing the food and beverage operation we use Cost Of Goods Sold (“COGS”) percentage, which represents a percentage of product cost to the food and beverage revenue and is a measurement of commodity prices and menu sales prices. ​ Our management evaluates the KPIs as compared to prior periods, the peer group, or market, as well as for any trends. ​ RESULTS OF OPERATIONS ​ Comparison of Operating Results for the Years Ended December 31, 2024 and 2023 ​ For the year ended December 31, 2024, our net income totaled $72.8 million, or $3.84 per diluted share, compared to net income of $82.4 million, or $4.20 per diluted share for the same period of 2023, reflecting a 11.7% decrease in net income and 8.6% decrease in diluted EPS (“Earnings Per Share”).
Food and beverage operating expense as a percentage of food and beverage revenue decreased as a result of cost efficiency and an increase in average revenue per cover as we were actively aligning menu prices with the food and labor costs. ​ Hotel revenue decreased 0.3% in the year ended December 31, 2023 over the same period in 2022 due to a decrease in ADR from $175.07 for the year ended December 31, 2022 to $172.56 for the year ended December 31, 2023, offset by higher hotel occupancy of 84.5% in 2023 compared to 79.9% in 2022.
Food and beverage operating expense as a percentage of food and beverage revenue increased as a result of increase in cost of goods sold. ​ 38 Table of Contents Hotel revenue increased 7.6% in the year ended December 31, 2024 over the same period in 2023 due to an increase in ADR from $172.62 for the year ended December 31, 2023 to $182.48 for the year ended December 31, 2024, combined with slightly higher hotel occupancy of 84.8% in the year ended December 31, 2024 compared to 84.7% for the same period in 2023.
As of December 31, 2023, our Total Leverage Ratio and Fixed Charge Coverage Ratio were 0.04:1 and 46.18:1. ​ The interest rate under the Amended Credit Facility is SOFR (the Secured Overnight Financing Rate) plus a margin ranging from 1.00% to 1.50%, or a base rate (as defined in the Amended Credit Facility) plus a margin ranging from 0.00% to 0.50%.
Additionally, the interest rate under the Sixth Amended Credit Facility is either SOFR (the Secured Overnight Financing Rate) plus a margin of 1.25% or the Base Rate (as defined in the Sixth Amended Credit Facility) plus a margin of 0.25%. The Commitment Fee Percentage (as defined in the Sixth Amended Credit Facility) was revised to be 0.25% per annum .
Removed
The opening began in the fourth quarter of 2020. The new hotel, including a spa and pool on the top floor, were fully opened to the public in the first quarter of 2021.
Added
The Sixth Amended Credit Facility amends and restates the Company’s $100.0 million credit facility, dated as of February 1, 2023 (the “Prior Facility”). ​ 40 Table of Contents The Sixth Amended Credit Facility extends the maturity date to January 1, 2028 and removes the lien on real property under the Prior Facility.
Removed
In May 2021, we opened our new poker room and in mid-December 2021 we opened our new sportsbook, lounge and bar and additional casino space at the legacy part of the building. In February 2022, we completed the Monarch Black Hawk expansion with the opening of a new specialty restaurant.
Added
As of December 31, 2024, the Company’s Total Leverage Ratio and Fixed Charge Coverage Ratio associated with the Prior Facility was 0.0:1.0 and 84.4:1.0. ​ On February 24, 2025, Wells Fargo Bank agreed to waive its right to declaring an event of default under the Sixth Amended Credit Facility arising out of the February 14, 2025 judgment on the litigation between Monarch and PCL, so long as we strictly comply with each and every other provision of the Credit Facility.
Removed
With the opening of our expanded casino floor at the beginning of 2021 and the additional casino space at the legacy building in early 2022, we increased the number of slot machines by approximately 300 and table games by 28, compared to the pre-opening of the Monarch Black Hawk expansion active gaming devices. ​ Comparison of Operating Results for the Years Ended December 31, 2023 and 2022 ​ For 2023, our net income totaled $82.4 million, or $4.20 per diluted share, compared to net income of $87.5 million, or $4.47 per diluted share for the same period of 2022, reflecting a 5.8% decrease in net income and 6.0% decrease in diluted EPS (“Earnings Per Share”).
Removed
The increase in expense is primarily a result of the ramp up of the expanded operation at Monarch Black Hawk, as well as inflation related price increases.
Removed
On January 5, 2023, we received $23.8 million payment from Internal Revenue Service, which included $23.2 million refund and $0.6 million interest income.
Removed
The applicable margins will vary depending on the Company’s leverage ratio. In addition, SOFR-based loans will incur a 0.10% credit adjustment spread due to the conversion from LIBOR to SOFR as the new benchmark rate.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

3 edited+0 added−0 removed0 unchanged
Biggest changeAs of December 31, 2023, we had $5.5 million of outstanding debt under our Amended Credit Facility which bears interest at variable rates. A hypothetical 2% increase in the interest rate on the balance outstanding under the Amended Credit Facility on December 31, 2023 would result in an increase in our annual interest cost of approximately $0.1 million.
Biggest changeAs of December 31, 2024, we had no outstanding debt under our Sixth Amended Credit Facility which bears interest at variable rates.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ​ Market risk is the risk of loss arising from adverse changes in interest rates, foreign currency exchange rates and commodity prices. Our current primary market risk exposure is interest rate risk relating to the short-term floating interest rates on borrowings under our Amended Credit Facility.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ​ Market risk is the risk of loss arising from adverse changes in interest rates, foreign currency exchange rates and commodity prices. Our current primary market risk exposure is interest rate risk relating to the short-term floating interest rates on borrowings under our credit facility.
As of December 31, 2023, we have $93.9 million of available borrowing capacity under our Amended Credit Facility. ​ We do not have any cash or cash equivalents as of December 31, 2023 which are subject to market risk. ​ 44 Table of Contents
As of December 31, 2024, we have $99.4 million of available borrowing capacity under our Sixth Amended Credit Facility. ​ We do not have any cash or cash equivalents as of December 31, 2024 which are subject to market risk. ​ 43 Table of Contents

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