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HUDSON TECHNOLOGIES INC

HUDSON TECHNOLOGIES INCHDSN财报

Nasdaq · 可选消费 · 机械、设备及用品批发

Hudson Technologies Inc is a U.S.-based provider of sustainable refrigerant management solutions, offering virgin and reclaimed refrigerants, refrigerant recovery, reclamation, and compliance support services. It primarily serves the North American market, with core customers across the HVAC, commercial refrigeration, and industrial cooling sectors, focusing on supporting clients' transition to low-GWP refrigerant alternatives.

What changed in HUDSON TECHNOLOGIES INC's 10-K — 2024 vs 2025

Top changes in HUDSON TECHNOLOGIES INC's 2025 10-K

87 paragraphs added · 88 removed · 59 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

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The AIM Act directs the EPA to address the reduction in virgin HFCs and provides authority to do so in three respects: 1) phase down the production and consumption of listed HFCs, 2) manage these HFCs and their substitutes including reclamation of refrigerants, and 3) facilitate the transition to next-generation technologies.
The AIM Act directs the EPA to address the reduction in virgin HFCs and provides authority to do so in three respects: 1) phase down the production and consumption of listed HFCs, 2) facilitate the transition to next-generation technologies, and 3) manage these HFCs and their substitutes including reclamation of refrigerants.
The Company’s staff have trained more than 4,000 industrial plant personnel in the US and internationally and have developed, and are currently delivering, training curriculums in 12 different countries. Carbon Offset Projects CFC refrigerants are ozone depleting substances and are also highly weighted greenhouse gases that contribute to global warming and climate change.
The Company’s staff have trained more than 4,000 industrial plant personnel in the US and internationally and have developed, and are currently delivering, training curriculums in 12 different countries. Carbon Offset Projects CFC refrigerants are ozone depleting substances and are also highly weighted greenhouse gases that are believed to contribute to global warming and climate change.
Under the agreement, Hudson will be the exclusive supplier of certified reclaimed refrigerants to Lennox for the aftermarket support of their residential HVAC systems. Marketing Marketing programs are conducted through the efforts of the Company’s executive officers, marketing personnel and Company sales personnel.
Under the agreement, Hudson will be the exclusive supplier of certified reclaimed refrigerants to Lennox for the aftermarket support of their residential HVAC systems. 6 Table of Contents Marketing Marketing programs are conducted through the efforts of the Company’s executive officers, marketing personnel and Company sales personnel.
These patents will expire between April 2025 and December 2036. There can be no assurance as to the breadth or degree of protection that patents may afford the Company, that any patent applications will result in issued patents or that patents will not be circumvented or invalidated.
These patents will expire between August 2026 and December 2036. There can be no assurance as to the breadth or degree of protection that patents may afford the Company, that any patent applications will result in issued patents or that patents will not be circumvented or invalidated.
In July 2016 the Company was awarded, as prime contractor, a five-year contract, together with a five-year renewal option which was exercised in July 2021, by the United States Defense Logistics Agency (“DLA”) for the management, supply, and sale of refrigerants, compressed gases, cylinders and related services.
In July 2016 the Company was awarded, as prime contractor, a five-year contract, together with a five-year renewal option which was exercised in July 2021, by the United States Defense Logistics Agency (“DLA”) for the management, supply, and sale of refrigerants, compressed gases, cylinders and related services. The Company’s current contract with DLA expires in July 2026.
The Company employs twelve persons engaged full-time in quality control and to monitor the Company’s operations for regulatory compliance. Human Capital Resources On January 31, 2025, the Company had 238 full time employees including air conditioning and refrigeration technicians, chemists, engineers, sales and administrative personnel. None of the Company’s employees are represented by a union.
The Company employs twelve persons engaged full-time in quality control and to monitor the Company’s operations for regulatory compliance. Human Capital Resources On February 18, 2026, the Company had 281 full time employees including air conditioning and refrigeration technicians, chemists, engineers, sales and administrative personnel. None of the Company’s employees are represented by a union.
On September 20, 2024, the EPA announced the latest actions to phase down HFCs under the AIM Act: 1) Final Refrigerant Management Rule – The rule requires better management and reuse of existing HFCs, including by reducing wasteful leaks from equipment and supporting HFC recycling and reclamation.
Reclamation is not subject to the allowance system or restricted from use. On September 20, 2024, the EPA announced the latest actions to phase down HFCs under the AIM Act: Final Refrigerant Management Rule – The rule requires better management and reuse of existing HFCs, including by reducing wasteful leaks from equipment and supporting HFC recycling and reclamation.
Competition The Company competes primarily on the basis of the performance of its proprietary high volume, high-speed equipment used in its operations, the breadth of services offered by the Company, including proprietary RefrigerantSide® Services and other on-site services, and price, particularly with respect to refrigerant sales.
The Company’s executive officers devote significant time and effort to customer relationships. Competition The Company competes primarily on the basis of the performance of its proprietary high volume, high-speed equipment used in its operations, the breadth of services offered by the Company, including proprietary RefrigerantSide® Services and other on-site services, and price, particularly with respect to refrigerant sales.
AIM Act The United States Environmental Protection Agency (“EPA”) issued several final rules establishing the framework to allocate allowances for virgin production and consumption of hydrofluorocarbon refrigerants (“HFCs”) that currently provide allowances through 2029. The EPA is responsible for the administration of the HFC phase down enacted by Congress under the AIM Act.
AIM Act The United States Environmental Protection Agency (“EPA”) issued several final rules establishing the framework to allocate allowances for production and consumption of newly manufactured hydrofluorocarbon refrigerants (“HFCs”) and has provided allowances through 2029. The EPA is responsible for the administration of the HFC phase down enacted by Congress under the American Innovation and Manufacturing Act (the “AIM Act”).
The Company’s engineers who developed and support SmartEnergy OPS® are recognized as Energy Experts and Qualified Best Practices Specialists by the United States Department of Energy (“DOE”) in the areas of Steam and Process Heating under the DOE “Best Practices” program, and are the Lead International Energy Experts for steam, chillers and refrigeration systems for the United 5 Table of Contents Nations Industrial Development Organization (“UNIDO”).
ChillSmart® provides a very effective predictive maintenance tool and helps our customers to identify the operating chillers that cause higher operating costs. 5 Table of Contents The Company’s engineers who developed and support SmartEnergy OPS® are recognized as Energy Experts and Qualified Best Practices Specialists by the United States Department of Energy (“DOE”) in the areas of Steam and Process Heating under the DOE “Best Practices” program, and are the Lead International Energy Experts for steam, chillers and refrigeration systems for the United Nations Industrial Development Organization (“UNIDO”).
Hudson employs various marketing methods, including digital marketing, segment targeted outreach, social media, trade and industry events, webinars, in-person solicitation, print advertising, response to quotation requests and the internet through the Company’s website (www.hudsontech.com).
Hudson employs various marketing methods, including digital marketing, segment targeted outreach, social media, trade and industry events, webinars, in-person solicitation, print advertising, response to quotation requests and the internet through the Company’s website (www.hudsontech.com). Information on the Company’s website is not part of this report. The Company’s sales personnel are compensated on a combination of a base salary and commission.
Lastly, the Company’s ChillSmart® offering, which combines the system optimization with the Company’s Chiller Chemistry ® offering, provides a snapshot of a packaged chiller’s operating efficiency and health. ChillSmart® provides a very effective predictive maintenance tool and helps our customers to identify the operating chillers that cause higher operating costs.
Lastly, the Company’s ChillSmart® offering, which combines the system optimization with the Company’s Chiller Chemistry ® offering, provides a snapshot of a packaged chiller’s operating efficiency and health.
Reclamation is critical to maintaining necessary HFC supply levels for the installed base of operating systems to ensure an orderly phasedown so that systems owners are able to recognize the full economic value of their systems through end of life. Reclamation is not subject to the allowance system or restricted from use.
Additionally, the EPA issued a final Refrigerant Management Rule implementing Subsection (h) of the AIM Act in 2024. Reclamation is critical to maintaining necessary HFC supply levels for the installed base of operating systems to ensure an orderly phasedown so that systems owners are able to recognize the full economic value of their systems through end of life.
For the year ended December 31, 2024, there was one customer accounting for greater than 10% of the Company’s revenues and one customer accounted for over 10% of the outstanding accounts receivable at December 31, 2024.
For the years ended December 31, 2025, 2024 and 2023, the United States Defense Logistics Agency (the “DLA”) accounted for greater than 10% of the Company’s revenue and over 10% of the outstanding accounts receivable at December 31, 2025 and 2024.
Hudson received allocation allowances for calendar years 2023 and 2024 equal to approximately 1% of the total HFC consumption allowances, with allowances for future periods to be determined at a later date. In addition, the EPA has finalized its technology transition rule, requiring the manufacturing and installation of lower global warming potential (“GWP”) systems commencing in 2025 and beyond.
The AIM Act introduced a stepdown of 10% from baseline levels in 2022 and 2023 and establishes a cumulative 40% reduction in the baseline for 2024 through 2029. Hudson received allocation allowances for calendar years 2024 and 2025 equal to approximately 1% of the total HFC consumption allowances, with allowances for future periods to be determined at a later date.
Removed
Congress required that the EPA consider ways to promote reclamation in all phases of its implementation of the AIM Act. The AIM Act introduced a stepdown of 10% from baseline levels in 2022 and 2023, and establishes a cumulative 40% reduction in the baseline for 2024 through 2029.
Added
There are no restrictions placed on the reclamation of HFC refrigerants.
Removed
For the year ended December 31, 2023, there was one customer accounting for greater than 10% of the Company’s revenues and one customer accounted for over 10% of the outstanding accounts receivable at December 31, 2023.
Added
In addition, the EPA has finalized the Technology Transition (“TT”) Rule in 2023, but the Trump administration decided to reconsider the TT rule by issuing a proposed new TT rule in 2025 with a final TT rule expected in third quarter of 2026.
Removed
For the year ended December 31, 2022, there was no customer that accounted for 10% of the Company’s revenues, but one customer accounted for over 10% of the outstanding accounts receivable at December 31, 2022.
Added
In October 2025, the DLA awarded a new five-year contract with a five-year renewal option to the Company (the “2025 DLA Contract”). Following issuance of the new contract, a competitor filed a bid protest at the U.S. Court of Federal Claims, challenging the DLA’s evaluation of proposals and the contract award to the Company.
Removed
Information on the Company’s website is not part of this report. 6 Table of Contents The Company’s sales personnel are compensated on a combination of a base salary and commission. The Company’s executive officers devote significant time and effort to customer relationships.
Added
In response, the DLA is reviewing its evaluation to determine whether corrective action is necessary and has rescinded the 2025 DLA Contract award during this process. While the bid protest and corrective action is pending, the Company will continue providing logistics support under its existing contract which runs through July 2026.
Added
Revenue from DLA totaled $38.2 million, $35.5 million and $53.0 million for the years ended December 31, 2025, 2024 and 2023. Accounts receivable from the DLA were $4.3 million and $3.5 million as of December 31, 2025, and 2024, respectively.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Changes in government regulations relating to the emission of refrigerants into the atmosphere could have a material adverse effect on us. Failure by government authorities to otherwise continue to enforce existing regulations or significant relaxation of regulatory requirements could also adversely affect demand for our services and products. Our business is subject to significant regulatory compliance burdens.
Changes in government regulations relating to the emission of refrigerants into the atmosphere could have a material adverse effect on us. Failure by government authorities to otherwise continue to enforce existing regulations or significant relaxation of regulatory requirements could also adversely affect demand for and supply of our services and products. Our business is subject to significant regulatory compliance burdens.
Our existing credit facility, consisting of an asset-based lending facility of up to $75 million from Wells Fargo Bank, National Association (“Wells Fargo Bank”) and other lenders, is secured by substantially all of our assets and contains formulas that limit the amount of our future borrowings under that facility.
Our existing credit facility, consisting of an asset-based lending facility of up to $40 million from Wells Fargo Bank, National Association (“Wells Fargo Bank”) and other lenders, is secured by substantially all of our assets and contains formulas that limit the amount of our future borrowings under that facility.
Cybersecurity threats are evolving and include, but are not limited to, malicious software, cyber espionage, attempts to gain unauthorized access to our 10 Table of Contents sensitive information, including that of our customers, suppliers, and subcontractors, and other electronic security breaches that could lead to disruptions in mission critical systems, unauthorized release of confidential or otherwise protected information, and corruption of data.
Cybersecurity threats are evolving and include, but are not limited to, malicious software, cyber espionage, attempts to gain unauthorized access to our sensitive information, including that of our customers, suppliers, and subcontractors, and other electronic security breaches that could lead to disruptions in mission critical systems, unauthorized release of confidential or otherwise protected information, and corruption of data.
Our failure to obtain and resell sufficient quantities of virgin refrigerants on commercially reasonable terms, or at all, or to obtain, reclaim and resell sufficient quantities of used refrigerants would have a material adverse effect on our operating margins and results of operations. 11 Table of Contents Issues relating to potential global warming and climate change could have an impact on our business.
Our failure to obtain and resell sufficient quantities of virgin refrigerants on commercially reasonable terms, or at all, or to obtain, reclaim and resell sufficient quantities of used refrigerants would have a material adverse effect on our operating margins and results of operations. Issues relating to potential global warming and climate change could have an impact on our business.
We have processes in place to monitor exposures to these risks and engage in strategies to manage these risks. If these controls and strategies are not successful in mitigating our exposure to these fluctuations, we could be materially and adversely affected. Our existing and future debt obligations could impair our liquidity and financial condition.
We have processes in place to monitor exposures to these risks and engage in strategies to manage these risks. If these controls and strategies are not successful in mitigating our exposure to these fluctuations, we could be materially and adversely affected. 9 Table of Contents Our existing and future debt obligations could impair our liquidity and financial condition.
Moreover, the terms of our credit facility also include financial and negative 9 Table of Contents covenants that, among other things, may limit our ability to incur additional indebtedness.
Moreover, the terms of our credit facility also include financial and negative covenants that, among other things, may limit our ability to incur additional indebtedness.
If we are unable to maintain our listing on NASDAQ, the market liquidity of our common stock may be severely limited. Our management has significant control over our affairs. Currently, our officers and directors collectively beneficially own approximately 8.0% of our outstanding common stock.
If we are unable to maintain our listing on NASDAQ, the market liquidity of our common stock may be severely limited. 12 Table of Contents Our management has significant control over our affairs. Currently, our officers and directors collectively beneficially own approximately 3.1% of our outstanding common stock.
In addition, we may not be able to successfully integrate any assets, liabilities, customers, systems or management personnel we may acquire into our operations and we may not be able to realize related revenue synergies and cost savings within expected time frames.
In addition, we may not be able to successfully integrate any assets, liabilities, customers, systems or management personnel we may acquire into our operations and we may not be able to realize related revenue synergies and cost savings within expected time frames. There can be no assurance that we will be able to successfully integrate any prior or future acquisition.
Our failure to comply with applicable laws, rules or regulations or permit requirements could subject us to civil remedies, including substantial fines, penalties and injunctions, as well as possible criminal sanctions, which would, if of significant magnitude, materially adversely impact our operations and future financial condition.
Our failure to comply with applicable laws, rules or regulations or permit requirements could subject us to civil remedies, including substantial fines, penalties and injunctions, as well as possible criminal sanctions, which would, if of significant magnitude, materially adversely impact our operations and future financial condition. 11 Table of Contents A number of factors could negatively impact the price and/or availability of refrigerants, which would, in turn, adversely affect our business and financial condition.
Our information technology systems, processes, and sites may suffer interruptions, failures, or attacks which could affect our ability to conduct business. Our information technology systems provide critical data connectivity, information and services for internal and external users.
The loss of DLA as a customer could have a material adverse effect on our financial position and results of operations. Our information technology systems, processes, and sites may suffer interruptions, failures, or attacks which could affect our ability to conduct business. Our information technology systems provide critical data connectivity, information and services for internal and external users.
A number of factors could negatively impact the price and/or availability of refrigerants, which would, in turn, adversely affect our business and financial condition. Refrigerant sales continue to represent a significant majority of our revenues.
Refrigerant sales continue to represent a significant majority of our revenues.
Removed
Our contract with DLA expires in July 2026. For the years ended December 31, 2024, 2023 and 2022, the DLA accounted for 15%, 18% and 8% of our revenues. The loss of DLA as a customer could have a material adverse effect on our financial position and results of operations.
Added
Our contract with DLA expires in July 2026. In October 2025, the DLA awarded a new five-year contract with a five-year renewal option to the Company (the “2025 DLA Contract”). Following issuance of the new contract, a competitor filed a bid protest at the U.S.
Removed
There can be no assurance that we will be able to successfully integrate any prior or future acquisition. 12 Table of Contents
Added
Court of Federal Claims, challenging the DLA’s evaluation of proposals and the contract award to the Company. In response, the DLA is reviewing its evaluation to determine whether corrective action is necessary and has rescinded the 2025 DLA Contract award during this process.
Added
While the bid protest and corrective action is pending, the Company will continue providing logistics support under its existing contract which runs through July 2026. 10 Table of Contents For the years ended December 31, 2025, 2024 and 2023, the DLA accounted for 15%, 15% and 18% of our revenues.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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The Director of IT then formulates and oversees a response to contain, eradicate and resolve incidents in accordance with the Company’s incident response plan. Management is responsible for reporting incidents to the appropriate authorities as necessary and engaging senior leadership on all material incidents. ​
The Director of IT then formulates and oversees a response to contain, eradicate and resolve incidents in accordance with the Company’s incident response plan. Management is responsible for reporting incidents to the appropriate authorities as necessary and engaging senior leadership on all material incidents. ​ 14 Table of Contents
The Board also receives prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed. 13 Table of Contents Management plays a crucial role in assessing and managing material risks from cybersecurity threats.
The Board also receives prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed. Management plays a crucial role in assessing and managing material risks from cybersecurity threats.
Depending on the environment, we implement and maintain various technical, physical, and organizational measures, processes, standards, and/or policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including risk assessments, incident detection and response, vulnerability management, disaster recovery and business continuity plans, internal controls within our accounting and financial reporting functions, encryption of data, network security controls, access controls, physical security, asset management, systems monitoring, vendor risk management program, employee training, and penetration testing.
Depending on the environment, we implement and maintain various technical, physical, and organizational measures, processes, standards, and/or policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including risk assessments, incident detection and response, vulnerability management, disaster recovery and business continuity plans, internal controls within our accounting and financial reporting functions, encryption of data, network security controls, access controls, physical security, asset management, systems monitoring, vendor risk management program, employee training, and penetration testing. 13 Table of Contents We work with third parties from time to time that assist us to identify, assess, and manage cybersecurity risks, including professional services firms, consulting firms, threat intelligence service providers, and penetration testing firms.
We seek to engage reliable, reputable service providers that maintain cybersecurity programs.
To operate our business, we utilize certain third-party service providers to perform a variety of functions. We seek to engage reliable, reputable service providers that maintain cybersecurity programs.
Removed
We work with third parties from time to time that assist us to identify, assess, and manage cybersecurity risks, including professional services firms, consulting firms, threat intelligence service providers, and penetration testing firms. To operate our business, we utilize certain third-party service providers to perform a variety of functions.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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The stockholder return shown in the graph below is not necessarily indicative of future performance, and we do not make or endorse any predictions as to future stockholder returns. ​ ​ 15 Table of Contents The above Stock Price Performance Graph and related information shall not be deemed “soliciting material” or to be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that we specifically incorporate it by reference into such filing.
The stockholder return shown in the graph below is not necessarily indicative of future performance, and we do not make or endorse any predictions as to future stockholder returns. ​ ​ The above Stock Price Performance Graph and related information shall not be deemed “soliciting material” or to be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that we specifically incorporate it by reference into such filing. 16 Table of Contents Issuer Purchases of Equity Securities HUDSON TECHNOLOGIES, INC.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s common stock trades on the NASDAQ Capital Market under the symbol “HDSN”. The number of record holders of the Company’s common stock was approximately 84 as of March 3, 2025.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Company’s common stock trades on the NASDAQ Capital Market under the symbol “HDSN”. The number of record holders of the Company’s common stock was approximately 79 as of March 5, 2026.
ISSUER PURCHASES OF EQUITY SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Approximate ​ ​ ​ ​ ​ ​ ​ ​ ​ Dollar Value of ​ ​ ​ ​ ​ ​ Total Number of ​ Shares that May ​ ​ ​ ​ ​ ​ Shares Purchased ​ Yet be Purchased ​ ​ Total Number ​ ​ ​ as Part of Publicly ​ Under the ​ ​ of Shares ​ Average Price Paid ​ Announced ​ Program (millions Period Purchased (1) Per Share Program of dollars) (2) October 1-31, 2024 — ​ — — ​ $ 17.4 November 1-30, 2024 409,468 ​ $ 6.08 409,468 ​ $ 14.9 December 1-31, 2024 ​ 508,580 ​ $ 5.90 508,580 ​ $ 10.0 Total 918,048 ​ $ 5.98 ​ 918,048 ​ $ 10.0 ​ (1) On August 6, 2024, the Company announced that its Board of Directors approved a share repurchase program pursuant to which the Company may purchase up to $10 million in shares of the Company’s common stock during 2024 and 2025 (the “Repurchase Program”).
ISSUER PURCHASES OF EQUITY SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​Approximate ​ ​ ​ ​ ​ ​ ​ ​ ​ Dollar Value of ​ ​ ​ ​ ​ ​ Total Number of ​ Shares that May ​ ​ ​ ​ ​ ​ Shares Purchased ​ Yet be Purchased ​ ​ Total Number ​ ​ ​ as Part of Publicly ​ Under the ​ ​ of Shares ​ Average Price Paid ​ Announced ​ Program (millions Period ​ ​ ​ Purchased (1) ​ ​ ​ Per Share * ​ ​ ​ Program ​ ​ ​ of dollars) (2) (3) October 1-31, 2025 — ​ — — ​ $ 4.2 November 1-30, 2025 608,000 ​ $ 6.90 608,000 ​ $ 0.0 December 1-31, 2025 ​ 1,342,981 ​ $ 7.45 1,342,981 ​ $ 20.0 Total 1,950,981 ​ $ 7.27 ​ 1,950,981 ​ $ 20.0 ​ (1) On August 6, 2024, the Company announced that its Board of Directors approved a share repurchase program pursuant to which the Company may purchase up to $10 million in shares of the Company’s common stock during 2024 and 2025 (the “Repurchase Program”).
Stock Price Performance Graph The following graph illustrates a comparison of the total cumulative five-year stockholder return of a $100 investment in our common stock on December 31, 2019, to two indices: the NASDAQ Composite Index and the Nasdaq Industrial Index.
In addition, the Company has a credit facility with Wells Fargo Bank, National Association, which among other things, restricts the Company’s ability to declare or pay any cash dividends on its capital stock. 15 Table of Contents Stock Price Performance Graph The following graph illustrates a comparison of the total cumulative five-year stockholder return of a $100 investment in our common stock on December 31, 2020, to two indices: the NASDAQ Composite Index and the Nasdaq Industrial Index.
Removed
In addition, the Company has a credit facility with Wells Fargo Bank, National Association among other things, restricts the Company’s ability to declare or pay any cash dividends on its capital stock.
Added
(3) On December 1, 2025, the Company announced that its Board of Directors approved an increase to the Company’s share repurchase authorization pursuant to which the Company could purchase up to $20 million in shares of the Company’s common stock during calendar year 2025, an increase from up to $10 million of outstanding common stock previously authorized for 2025.
Removed
Issuer Purchases of Equity Securities HUDSON TECHNOLOGIES, INC.
Added
Furthermore, the Board of Directors authorized the Company to repurchase up to $20 million of outstanding common stock in calendar year 2026. *Average Price Paid Per Share does not include commissions ​

Item 7. Management's Discussion & Analysis

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

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The Second Amendment amends the provision relating to permitted stock repurchases by the Company, to permit stock repurchases in an amount not to exceed $10 million per calendar year in each of 2024 and 2025 and $5 million in any calendar year thereafter during the term of the Amended Wells Fargo Facility, upon satisfaction of certain conditions, subject to an aggregate cap of $25 million.
The Second Amendment amended the provision relating to permitted stock repurchases by the Company, to permit stock repurchases in an amount not to exceed $10 million per calendar year in each of 2024 and 2025 and $5 million in any calendar year thereafter during the term of the Amended Wells Fargo Facility, upon satisfaction of certain conditions, subject to an aggregate cap of $25 million.
The Company’s ability to sell and replace its inventory on a timely basis and the prices at which it can be sold are subject, among other things, to current market conditions and the nature of supplier or customer arrangements and the Company’s ability to source CFC and HCFC based refrigerants (which are no longer being produced) and HFC refrigerants (virgin production currently in the process of being phased down) and HFO refrigerants.
The Company’s ability to sell and replace its inventory on a timely basis and the prices at which it can be sold are subject, among other things, to current market conditions and the nature of supplier or customer arrangements and the Company’s ability to source CFC and HCFC based refrigerants (which are no longer being produced) and HFC refrigerants (with newly manufactured production currently in the process of being phased down) and HFO refrigerants.
Management’s Discussion and Analysis of Financial Condition and Results of Operations for the year ended December 31, 2023 as compared to the year ended December 31, 2022 is contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2024.
Management’s Discussion and Analysis of Financial Condition and Results of Operations for the year ended December 31, 2024 as compared to the year ended December 31, 2023 is contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2025.
The Amended Wells Fargo Facility also contains a sublimit of $9 million for swing line loans and $2 million for letters of credit. The Company currently has a $0.9 million letter of credit outstanding. The FILO Tranche was repaid in full in July 2023 and may not be reborrowed.
The Amended Wells Fargo Facility also initially contained a sublimit of $9 million for swing line loans and $2 million for letters of credit. The Company currently has $1.3 million of letters of credit outstanding. The FILO Tranche was repaid in full in July 2023 and may not be reborrowed.
The Amended Wells Fargo facility amended and restated the prior Wells Fargo Facility entered into on December 19, 2019. 19 Table of Contents Under the terms of the Amended Wells Fargo Facility, the Borrowers: (i) immediately borrowed $15 million in the form of a “first in last out” term loan (the “FILO Tranche”) and (ii) may borrow from time to time, up to $75 million at any time consisting of revolving loans (the “Revolving Loans”) in a maximum amount up to the lesser of $75 million and a borrowing base that is calculated based on the outstanding amount of the Borrowers’ eligible receivables and eligible inventory, as described in the Amended Wells Fargo Facility.
Under the terms of the Amended Wells Fargo Facility, the Borrowers: (i) immediately borrowed $15 million in the form of a “first in last out” term loan (the “FILO Tranche”) and (ii) could initially borrow from time to time, up to $75 million at any time consisting of revolving loans (the “Revolving Loans”) in a maximum amount up to the lesser of $75 million and a borrowing base that is calculated based on the outstanding amount of the Borrowers’ eligible receivables and eligible inventory, as described in the Amended Wells Fargo Facility.
USA Refrigerants is a leading refrigerant distributor and distributes, reclaims and packages refrigerant gases for a variety of end uses.
Refrigerants Inc. is a leading refrigerant distributor and distributes, reclaims and packages refrigerant gases for a variety of end uses. Potential benefits of the Refrigerants, Inc.
(collectively, the “USA Refrigerants Acquisition”). The consideration for the USA Refrigerants Acquisition was approximately $20.7 million in cash, paid at the closing, and provides for a further contingent payment of up to $2.0 million payable, to the extent earned, approximately 18 months from the closing date.
The consideration for Refrigerants Inc. acquisition was approximately $2.2 million in cash, paid at the closing, and provides for a further contingent payment of up to $2.0 million payable, to the extent earned, approximately 17 and 29 months from the closing date.
Net cash used in investing activities for 2024 was $26.0 million when compared to the net cash used in investing activities of $3.6 million for the comparable 2023 period, mainly due to the recent acquisition of USA Refrigerants as previously discussed and timing of capital expenditures related to capitalization of the Company’s ERP system.
Net cash used in investing activities for the year ended December 31, 2025 was $7.3 million when compared to the net cash used in investing activities of $26.0 million for the comparable 2024 period, mainly due to the 2025 acquisition of Refrigerants Inc and 2024 acquisition of USA Refrigerants as previously discussed and timing of capital expenditures.
For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the United States’ largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute (“AHRI”) standard for reuse as certified EMERALD Refrigerants™.
For nearly three decades, we have demonstrated our commitment to our customers and the environment by becoming one of the United States’ largest refrigerant reclaimers through multimillion dollar investments in the plants and advanced separation technology required to recover a wide variety of refrigerants and restoring them to Air-Conditioning, Heating, and Refrigeration Institute (“AHRI”) standard for reuse as certified EMERALD Refrigerants™. 18 Table of Contents The Company’s products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and RefrigerantSide® Services performed at a customer’s site, consisting of system decontamination to remove moisture, oils and other contaminants.
The Amended Wells Fargo Facility also contains customary non-financial covenants relating to the Company and the Borrowers, including limitations on the Borrowers’ ability to pay dividends on common stock or preferred stock, and also includes certain events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other obligations, events of bankruptcy and insolvency, certain ERISA events, judgments in excess of specified amounts, impairments to guarantees and a change of control. 20 Table of Contents The Company evaluated the Amended Wells Fargo Facility in accordance with the provisions of ASC 470-50 to determine if the amendment and restatement was a modification or an extinguishment of debt and concluded that the amendment and restatement was a modification of the original revolving credit facility for accounting purposes.
The FCCR covenant ceases after the Borrowers have been in compliance therewith for two consecutive months. 21 Table of Contents The Amended Wells Fargo Facility also contains customary non-financial covenants relating to the Company and the Borrowers, including limitations on the Borrowers’ ability to pay dividends on common stock or preferred stock, and also includes certain events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to other obligations, events of bankruptcy and insolvency, certain ERISA events, judgments in excess of specified amounts, impairments to guarantees and a change of control.
Liquidity and Capital Resources At December 31, 2024, the Company had working capital, which represents current assets less current liabilities, of $147.7 million, an increase of $1.3 million from the working capital of $146.4 million at December 31, 2023. The increase in working capital is primarily attributable to a rise in cash.
Liquidity and Capital Resources At December 31, 2025, the Company had working capital, which represents current assets less current liabilities, of $146.2 million, a decrease of $1.5 million from the working capital of $147.7 million at December 31, 2024.
For the year ended December 31, 2024, the DLA accounted for greater than 10% of the Company’s revenues and over 10% of the outstanding accounts receivable at December 31, 2024. For the year ended December 31, 2023, the DLA accounted for greater than 10% of the Company’s revenues and over 10% of the outstanding accounts receivable at December 31, 2023.
For the years ended December 31, 2025, 2024 and 2023, the United States Defense Logistics Agency (the “DLA”) accounted for greater than 10% of the Company’s revenue and over 10% of the outstanding accounts receivable at December 31, 2025 and 2024.
Potential benefits of the USA Refrigerants Acquisition include (i) providing a broader customer network which will provide the Company with increased access to refrigerant for reclamation and strengthen the Company’s refrigerant distribution capabilities; (ii) adding incremental access to recovered pounds of refrigerants for sale for future periods to support the growth in reclamation; and (iii) enhancing the Company’s geographic footprint in the United States. ​ Results of Operations Year ended December 31, 2024 as compared to the year ended December 31, 2023 Revenues for the year ended December 31, 2024 were $237.1 million, a decrease of $51.9 million or 18% from the $289.0 million reported during the comparable 2023 period.
Acquisition include (i) providing a broader customer network which will provide the Company with increased access to refrigerant for reclamation and strengthen the Company’s refrigerant distribution capabilities; (ii) adding incremental access to recovered pounds of refrigerants for sale for future periods to support the growth in reclamation; and (iii) enhancing the Company’s geographic footprint in the United States.
Income tax expense for federal and state income tax purposes was determined by applying statutory income tax rates to pre-tax income after adjusting for certain items. 18 Table of Contents Net income for the year ended December 31, 2024 was $24.4 million, a decrease of $27.8 million from the $52.2 million of net income reported during the comparable 2023 period, primarily due to lower sales prices of certain refrigerants sold, and higher SG&A costs, as described above.
Net income for the year ended December 31, 2025 was $16.7 million, a decrease of $7.7 million from the $24.4 million of net income reported during the comparable 2024 period, primarily due to lower average selling prices for certain refrigerants, and higher freight costs. and higher SG&A costs, as described above.
Selling, general and administrative (“SG&A”) expenses for the year ended December 31, 2024 were $33.0 million, an increase of $2.5 million from the $30.5 million reported during the comparable 2023 period. The increase in SG&A was primarily due to increased personnel cost, professional fees and acquisition costs with approximately $0.7 million considered non-recurring charges.
The decrease of $3.6 million gross profit and the decline in gross margin were primarily due to lower average selling prices for certain refrigerants, and higher freight costs. Selling, general and administrative (“SG&A”) expenses for the year ended December 31, 2025 were $40.2 million, an increase of $7.2 million from the $33.0 million reported during the comparable 2024 period.
Revolving Credit Facility On March 2, 2022, Hudson Technologies Company (“HTC”) and Hudson Holdings, Inc. (“Holdings”), as borrowers (collectively, the “Borrowers”), and Hudson Technologies, Inc.
At December 31, 2025, cash and cash equivalents were $39.5 million, or approximately $30.6 million lower than the $70.1 million of cash and cash equivalents at December 31, 2024. 20 Table of Contents Revolving Credit Facility On March 2, 2022, Hudson Technologies Company (“HTC”) and Hudson Holdings, Inc. (“Holdings”), as borrowers (collectively, the “Borrowers”), and Hudson Technologies, Inc.
Reliance on Suppliers and Customers The Company participates in an industry that is highly regulated, and changes in the regulations affecting our business could affect our operating results. Currently the Company purchases virgin HCFC and HFC refrigerants and reclaimable, primarily HCFC and CFC, refrigerants from suppliers and its customers.
Currently the Company purchases virgin HCFC and HFC refrigerants and reclaimable, primarily HCFC and CFC, refrigerants from suppliers and its customers.
Amortization expense for the year ended December 31, 2024 was $3.4 million, an increase of $0.6 million from $2.8 million reported during the comparable 2023 period. The increase in amortization was primarily due to the recent acquisition of USA Refrigerants as described above. Interest expense (income) was ($0.5) million, compared to the $8.4 million reported during the comparable 2023 period.
Results of Operations Year ended December 31, 2025 as compared to the year ended December 31, 2024 Revenues for the year ended December 31, 2025 were $246.6 million, an increase of $9.5 million or 4% from the $237.1 million reported during the comparable 2024 period.
Inventory and trade receivables are principal components of current assets. At December 31, 2024, the Company had inventory of $96.2 million, a decrease of $58.3 million from $154.5 million at December 31, 2023.
The decrease in working capital is primarily attributable to the decrease in cash and increase in accounts payable due to higher inventory purchases at year end. Inventories and trade receivables are principal components of current assets. At December 31, 2025, the Company had inventories of $135.9 million, an increase of $39.7 million from $96.2 million at December 31, 2024.
At December 31, 2024, the Company had trade receivables, net of credit losses, of $13.6 million, a decrease of $11.6 million from $25.2 million at December 31, 2023, mainly due to timing. The Company’s trade receivables are concentrated with various wholesalers, brokers, contractors and end-users within the refrigeration industry that are primarily located in the continental United States.
The Company’s trade receivables are concentrated with various wholesalers, brokers, contractors and end-users within the refrigeration industry that are primarily located in the continental United States. The Company has historically financed its working capital requirements through cash flows from operations, debt, and the issuance of equity securities.
The Company has historically financed its working capital requirements through cash flows from operations, debt, and the issuance of equity securities. Net cash provided by operating activities for the year ended December 31, 2024 was $91.8 million, when compared to the net cash provided by operating activities of $58.5 million for the comparable 2023 period.
Net cash used in operating activities for the year ended December 31, 2025 was $3.2 million, when compared to the net cash provided by operating activities of $91.8 million for the comparable 2024 period. The variance is primarily due to increased inventory purchases, timing of accounts receivable, accounts payable and accrued expenses.
During the third quarter of 2023, the Company repaid in full the remaining $32.5 million principal balance outstanding under its Term Loan Facility. Other income for the year ended December 31, 2024 was $2.3 million. This amount includes proceeds from litigation settlement of $1.8 million and $0.5 million from the lease opt-out related to the Smyrna, Georgia facility lease.
Other income of $2.3 million for the same period in 2024 was primarily driven by $1.8 million from litigation settlement proceeds and $0.5 million from a lease opt-out associated with the Atlanta facility. Income tax expense for 2025 was $6.0 million compared to income tax expense of $7.6 million for 2024.
Net cash used in financing activities for 2024 was $8.2 million, compared with net cash used in financing activities of $47.8 million for 2023. The change is primarily because in 2023, the Company paid off $47.2 million of its debt as compared to no debt repayment in 2024.
Net cash used in financing activities for the year ended December 31, 2025 was $20.2 million, compared with net cash used in financing activities of $8.2 million for 2024. During the year 2025, the Company repurchased 2,890,240 of its common stock for $20.0 million, compared with the repurchase of 1,244,076 shares for $8.1 million in 2024.
Removed
The Company’s products and services are primarily used in commercial air conditioning, industrial processing and refrigeration systems, and include refrigerant and industrial gas sales, refrigerant management services consisting primarily of reclamation of refrigerants and 17 Table of Contents RefrigerantSide® Services performed at a customer’s site, consisting of system decontamination to remove moisture, oils and other contaminants.
Added
Primary users include the US Army, Navy, Air Force, Marine Corps and Coast Guard. Our contract with DLA expires in July 2026. In October 2025, the DLA awarded a new five-year contract with a five-year renewal option to the Company (the “2025 DLA Contract”). Following issuance of the new contract, a competitor filed a bid protest at the U.S.
Removed
Primary users include the US Army, Navy, Air Force, Marine Corps and Coast Guard. Our contract with DLA expires in July 2026. Recent Acquisition On June 6, 2024, the Company’s subsidiary Hudson Technologies Company completed the acquisition of substantially all the business assets of USA United Suppliers of America, Inc. (d/b/a USA Refrigerants) (“USA Refrigerants”) and B&B Jobber Services, Inc.
Added
Court of Federal Claims, challenging the DLA’s evaluation of proposals and the contract award to the Company. In response, the DLA is reviewing its evaluation to determine whether corrective action is necessary and has rescinded the 2025 DLA Contract award during this process.
Removed
The decrease was primarily attributable to lower selling prices of certain refrigerants sold. Cost of sales for the year ended December 31, 2024 was $171.4 million or 72% of sales. Cost of sales for the year ended December 31, 2023 was $177.5 million or 61% of sales.
Added
While the bid protest and corrective action is pending, the Company will continue providing logistics support under its existing contract which runs through July 2026. Recent Acquisition On December 16, 2025, the Company’s subsidiary Hudson Technologies Company completed the acquisition of substantially all the business assets of Denver Refrigerants Inc. (d/b/a Refrigerants Inc.).
Removed
The increase in the cost of sales percentage from 61% to 72% is primarily due to lower revenue as a result of lower selling prices of certain refrigerants, as well as the impact of additional inventory reserve.
Added
The increase was primarily attributable to higher sales volumes which was partially offset by lower average selling prices of refrigerant sold during the period.
Removed
Income tax expense for 2024 was $7.6 million compared to income tax expense of $17.6 million for 2023.
Added
Gross profit and gross margin for the year ended December 31, 2025, were $62.1 million and 25.2% respectively, a decrease of $3.6 million and 2.5% respectively from the $65.7 million and 27.7% reported during the comparable 2024 period.
Removed
The increase is due to timing of accounts receivable, accounts payable and accrued expenses.
Added
The 2025 SG&A expenses included $4.0 million of severance expense. The increase in SG&A also reflected increased personnel costs amongst other higher costs. Amortization expense for the years ended December 31, 2025 and 2024 was $3.3 million and $3.4 million, respectively.
Removed
During the year 2024, the Company repurchased 1,244,076 shares of its common stock, at a cost of $8.1 million. At December 31, 2024, cash and cash equivalents were $70.1 million, or approximately $57.7 million higher than the $12.4 million of cash and cash equivalents at December 31, 2023.
Added
Net interest income for the year ended December 31, 2025 was 2.5 million, compared to the net interest income of $0.5 million reported during the comparable 2024 period reflecting the Company’s unlevered balance sheet and higher cash position throughout the year. 19 Table of Contents Other income for the year ended December 31, 2025, was $1.6 million, compared to $2.3 million reported during the same period in 2024.
Removed
Interest charges with respect to the FILO Tranche were computed on the actual principal amount of FILO Tranche loans outstanding at a rate per annum equal to (A) with respect to Base Rate FILO Tranche loans, the sum of (i) a rate per annum equal to the higher of (1) 1.0%, (2) the federal funds rate plus 0.5%, (3) one month term SOFR plus 1.0%, and (4) the prime commercial lending rate of Wells Fargo, plus (ii) 6.5% and (B) with respect to SOFR FILO Tranche loans, the sum of the applicable SOFR rate plus 7.50%.
Added
In the third quarter of 2025, the Company recognized $1.6 million in other income from the reversal of earn-out liabilities related to the 2024 acquisition of USA Refrigerants.
Removed
The FCCR covenant ceases after the Borrowers have been in compliance therewith for two consecutive months.
Added
Income tax expense for federal and state income tax purposes was determined by applying statutory income tax rates to pre-tax income after adjusting for certain items.
Removed
As a result, the Company capitalized an additional $0.9 million of deferred financing costs in connection with the amendment and restatement, which, along with the $0.2 million of remaining deferred financing costs of the original revolving facility, is being amortized over the five year term of the Amended Wells Fargo Facility.
Added
At December 31, 2025, the Company had trade receivables, net of credit losses, of $17.1 million, an increase of $3.5 million from $13.6 million at December 31, 2024, mainly due to increased sales. The Company typically generates its most significant revenue during the second and third quarters of any given year.
Removed
Termination of 2022 Term Loan Facility On March 2, 2022, Hudson Technologies Company (“HTC”), an indirect subsidiary of Hudson Technologies, Inc.
Added
The Amended Wells Fargo facility amended and restated the prior Wells Fargo Facility entered into on December 19, 2019.
Removed
(the “Company”), and the Company’s subsidiary Hudson Holdings, Inc., as borrowers (collectively, the “Borrowers”), and the Company, as guarantor, became obligated under a Credit Agreement (the “Term Loan Facility”) with TCW Asset Management Company LLC, as administrative agent (“Term Loan Agent”) and the lender parties thereto (the “Term Loan Lenders”).
Added
On June 23, 2025, the Borrowers and the Company entered into a Third Amendment to Amended and Restated Credit Agreement (the “Third Amendment”) with Wells Fargo and the lenders under the Amended Wells Fargo Facility.
Removed
Under the terms of the Term Loan Facility, the Borrowers immediately borrowed $85 million pursuant to a term loan (the “Term Loan”), which had a maturity date in March 2027.
Added
The Third Amendment reduced the amount of Revolving Loans that may be made under the Amended Wells Fargo Facility from $75 million to $40 million, and also provided for the reduction of the letter of credit sublimit from $2 million to $1.5 million.
Removed
Amounts borrowed under the Term Loan Facility were used by the Borrowers to repay the outstanding principal amount and related fees and expenses under a prior term loan facility and for other corporate purposes. The Company paid approximately $4.3 million of term loan deferred financing costs.
Added
The Third Amendment also amended certain other thresholds and sub-limits in the Amended Wells Fargo Facility, as further specified therein. On November 25, 2025, the Borrowers and the Company entered into a Fourth Amendment to Amended and Restated Credit Agreement (the “Fourth Amendment”) with Wells Fargo and the lenders under the Amended Wells Fargo Facility.
Removed
During the third quarter of 2023, the Company repaid in full the remaining principal balance outstanding under the Term Loan Facility and the FILO Tranche. The Company was in compliance with all covenants under the Amended Wells Fargo Facility as of December 31, 2024.
Added
The Fourth Amendment amended the provision relating to permitted stock repurchases by the Company, to permit stock repurchases in an amount not to exceed $20 million per calendar year in each of 2025 and 2026 and $5 million in any calendar year thereafter during the term of the Wells Fargo Facility, upon satisfaction of certain conditions, and made certain other technical changes.
Removed
The Company’s ability to comply with these covenants in future quarters may be affected by events beyond the Company’s control, including general economic conditions, weather conditions, regulations and refrigerant pricing. Therefore, the Company cannot make any assurance that it will continue to be in compliance during future periods.
Added
At December 31, 2025, the Company had borrowing availability of approximately $40 million from the Amended Wells Fargo Facility and no balance was outstanding.
Removed
The Company believes that it will be able to satisfy its working capital requirements for the foreseeable future from anticipated cash flows from operations and available funds under the Amended Wells Fargo Facility.
Added
The Company was in compliance with all covenants under the Amended Wells Fargo Facility as of December 31, 2025. 22 Table of Contents Reliance on Suppliers and Customers The Company participates in an industry that is highly regulated, and changes in the regulations affecting our business could affect our operating results.
Removed
Any unanticipated expenses, including, but not limited to, an increase in the cost of refrigerants purchased by the Company, an increase in operating expenses or failure to achieve expected revenues from the Company’s RefrigerantSide(R) Services and/or refrigerant sales or additional expansion or acquisition costs that may arise in the future would adversely affect the Company’s future capital needs.
Added
Revenue from DLA totaled $38.2 million, $35.5 million and $53.0 million for the years ended December 31, 2025, 2024 and 2023. Accounts receivable from the DLA were $4.3 million and $3.5 million as of December 31, 2025, and 2024, respectively.
Removed
There can be no assurance that any of the Company’s proposed or future plans will be successful, and as such, the Company may require additional capital sooner than anticipated, which capital may not be available on acceptable terms, or at all. 21 Table of Contents Inflation Inflation, historically or the recent increase, has not had a material impact on the Company’s operations.
Removed
For the year ended December 31, 2022, no customer accounted for 10% of the Company’s revenues; however, the DLA accounted for over 10% of the outstanding accounts receivable at December 31, 2022.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

2 edited+0 added−0 removed1 unchanged
To the extent that the Company is unable to source sufficient quantities of refrigerants or is unable to obtain refrigerants on commercially reasonable terms, or 22 Table of Contents experiences a decline in demand and/or price for refrigerants sold by the Company, the Company could realize reductions in revenue from refrigerant sales or write downs of inventory, which could have a material adverse effect on our consolidated results of operations.
To the extent that the Company is unable to source sufficient quantities of refrigerants or is unable to obtain refrigerants on commercially reasonable terms, or experiences a decline in demand and/or price for refrigerants sold by the Company, the Company could realize reductions in revenue from refrigerant sales or write downs of inventory, which could have a material adverse effect on our consolidated results of operations. 23 Table of Contents
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Interest Rate Sensitivity We are exposed to market risk from fluctuations in interest rates on the Amended Wells Fargo Facility. The Amended Wells Fargo Facility is a $75 million secured facility with a $0.0 million outstanding balance as of December 31, 2024.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk Interest Rate Sensitivity We are exposed to market risk from fluctuations in interest rates on the Amended Wells Fargo Facility. The Amended Wells Fargo Facility is a $40 million secured facility with a $0.0 million outstanding balance as of December 31, 2025.

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