Business
Paragon Technologies Reports First Quarter 2025 Results
Paragon Technologies Reports First Quarter 2025 Results.
About this update from Paragon Technologies, Inc.
[{"type":"text","content":"\r\n\r\n \r\n \r\n Paragon Technologies Reports First Quarter 2025 Results\r\n \r\n \r\n\r\n\r\nParagon Technologies Reports First Quarter 2025 Results\r\n\r\n\r\n\r\n\r\n\r\nAddresses Litigation Impact and Strategic Plan Progress EASTON, PA / ACCESS Newswire / May 13, 2025 / Paragon Technologies, Inc. (OTC PINK:PGNT), a diversified holding company, today announced its financial results for the first quarter ended March 31, 2025.\r\n For the first quarter of the year, Paragon's revenues increased by roughly 10% to $34.6 million with increased revenue at both SI and SEDC. Net income declined by approximately $0.7 million from the prior year's first quarter primarily due to legal expenditures of approximately $1.1 million related to the litigation initiated by former Chairman and CEO Hesham Gad last November. While the case was settled by the current board to limit these unnecessary expenditures, the company estimates the second quarter impact of this litigation will be in excess of $2 million. The Company also expects to incur a charge due to self-reporting the misclassification of Mr. Gad as an independent contractor during most of his tenure as CEO.\r\n The board has initiated proceedings against the company's former legal counsel to recover the costs associated with the Gad litigation as it contends that the litigation was attributable to faulty legal advice provided by the company's former legal counsel.\r\n Sam Weiser, Interim CEO at Paragon commented, \"At SI Systems several operational improvements are underway that are designed to benefit shareholders in coming quarters. First, SI added two dedicated professionals in the first quarter who have restarted outbound sales calls to both our installed base and to targeted prospects. This effort is especially critical as our backlog continues to decline. In addition, SI has added two additional software professionals dedicated to a project designed to rewrite the company's operating software for its dispensing equipment; a project expected to be completed in the first half of 2026. This project is necessary as previous management terminated or drove away experienced SI professionals with the institutional knowledge related to the software's operation. As such, the current project is designed first to document the current code prior to the second phase where the operating system ...