Financial Analysis

COMMITMENTS AND CONTINGENCIES Commitments The Company had purchase commitments of $48 at December 27, 2025, primarily related to computer software. The Company enters into fixed-price contracts with suppliers to purchase natural gas to support certain manufacturing processes. The Company had contract purchases of $717 in 2025 and $743 in 2024. At December 27, 2025, the Company has commitments to purchase natural gas of $179 for 2026. Contingencies The Company assesses its exposure related to legal matters, including those pertaining to product liability, safety and health matters and other items that arise in the regular course of its business. If the Company determines that it is probable a loss has been incurred, the amount of the loss, or an amount within the range of loss, that can be reasonably estimated will be recorded. There are no pending or threatened legal matters for which a reasonably estimated range of losses can be determined except as described below, and accordingly, the Company has not identified any such legal matters that could have a material adverse effect on its consolidated results of operations, financial position or cash flows. Legal Proceedings As previously disclosed, the Company is currently defending five lawsuits based generally on alleged damages related to historical use of certain products alleged to have contained PFAS chemicals in its manufacturing processes. During the fourth quarter, the Company engaged in settlement discussions with the …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates the Companys revenue by end-user markets: 2025 2024 Residential floorcovering products $ 254,234 $ 261,108 Other services 3,195 3,918 Total net sales $ 257,429 $ 265,026 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"STOCK PLANS AND STOCK COMPENSATION EXPENSE The Company recognizes compensation expense relating to share-based payments based on the fair value of the equity instrument issued and records such expense in selling and administrative expenses in the Company's Consolidated Statements of Operations. The Company's stock compensation expense was $240 in 2025 and $494 in 2024. Omnibus Equity Incentive Plan On May 4, 2022, the Company's shareholders' approved and adopted the Company's Omnibus Equity Incentive Plan (the ""Omnibus Equity Incentive Plan"" or the ""2022 Plan"") which provides for the issuance of a maximum of 1,300,000 shares of Common Stock and/or Class B Common Stock for the grant of options, and/or other stock-based or stock-denominated awards to employees, officers, directors and agents of the Company and its participating subsidiaries. There are 490,238 shares remaining under the 2022 Plan. 2016 Incentive Compensation Plan On May 3, 2016, the Company's shareholders' approved and adopted the Company's 2016 Incentive Compensation Plan (the ""2016 Incentive Compensation Plan"") which provided for the issuance of a maximum of 800,000 shares of Common Stock and/or Class B Common Stock for the grant of options, and/or other stock-based or stock-denominated awards to employees, officers, directors, and agents of the Company and its participating subsidiaries. The 2016 Incentive Compensation Plan and the allocation of shares thereunder superseded and replaced The Dixie Group …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS Fair value is defined as the exchange value of an asset or a liability in an orderly transaction between market participants. The fair value guidance outlines a valuation framework and establishes a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and disclosures. The hierarchy consists of three levels as follows: Level 1 - Quoted market prices in active markets for identical assets or liabilities as of the reported date; Level 2 - Other than quoted market prices in active markets for identical assets or liabilities, quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and other than quoted prices for assets or liabilities and prices that are derived principally from or corroborated by market data by correlation or other means; and Level 3 - Measurements using management's best estimate of fair value, where the determination of fair value requires significant management judgment or estimation. The carrying amounts and estimated fair values of the Company's financial instruments are summarized as follows: 2025 2024 Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and cash equivalents $ 3,204 $ 3,204 $ 19 $ 19 Restricted cash 3,865 3,865 Financial liabilities: Long-term debt, including current portion 81,434 76,894 81,892 73,249 Finance leases, including current porti …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"INCOME TAXES In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2023-09, Improvements to Income Tax Disclosures (Topic 740) , which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. The new guidance requires consistent categorization and greater disaggregation of information in the rate reconciliation, as well as further disaggregation of income taxes paid. This change was effective for annual periods beginning after December 15, 2024. The Company adopted this ASU in 2025 and applied it on a prospective basis to annual financial statements. The Company did not adjust prior periods as permitted. The provision (benefit) for income taxes on income (loss) from continuing operations consists of the following: 2025 2024 Current Federal $ 1 $ (51) State 72 22 Total current 73 (29) Deferred Federal State Total deferred Income tax provision (benefit) $ 73 $ (29) The reconciliation of the tax provision (benefit) at the U.S. federal statutory rate to income tax expense (benefit) is presented in the following table. 2025 2024 U.S. federal statutory tax rate $ (1,512) 21.00 % $ (2,570) 21.00 % State and local income tax, net of federal income tax effect (1) 57 (0.79) % 17 (0.14) % Tax Credits Federal tax credits (209) 2.90 % (220) 1.80 % State tax credits % (22) 0.18 % Change in valuation allowance 1,630 (22.63) % 2,573 (21.02) % Nontaxable or nondeduct …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES Leases as Lessee Balance sheet information related to right-of-use assets and liabilities is as follows: Balance Sheet Location 2025 2024 Operating Leases: Operating lease right-of-use assets Operating lease right-of-use assets $ 23,649 $ 25,368 Current portion of operating lease liabilities Current portion of operating lease liabilities $ 4,553 $ 3,804 Noncurrent portion of operating lease liabilities Operating lease liabilities 20,200 22,295 Total operating lease liabilities $ 24,753 $ 26,099 Finance Leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 381 $ 498 Current portion of finance lease liabilities Current portion of long-term debt $ 150 $ 142 Noncurrent portion of finance lease liabilities Long-term debt 154 314 Total financing lease liabilities $ 304 $ 456 Lease cost recognized in the consolidated financial statements is summarized as follows: 2025 2024 Operating lease cost $ 6,311 $ 5,803 Variable lease cost 806 819 Total lease cost $ 7,117 $ 6,622 Finance lease cost: Amortization of lease assets $ 98 $ 54 Interest on lease liabilities 21 14 Total finance lease costs $ 119 $ 68 Other supplemental information related to leases is summarized as follows: 2025 2024 Weighted average remaining lease term (in years): Operating leases 5.31 6.35 Finance leases 1.98 2.96 Weighted average discount rate: Operating leases 7.29 % 6.82 % Finance leases 5.62 % 5.58 % Cash paid for amounts included in the measurement of lease liabilities: Operati …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"LONG-TERM DEBT AND CREDIT ARRANGEMENTS Long-term debt consists of the following: 2025 2024 Revolving credit facility - Fifth Third Bank $ $ 50,000 Revolving credit facility - MidCap Financial IV Trust 52,706 Term loans 19,822 21,960 Notes payable - other 10,883 11,163 Finance lease obligations 304 456 Deferred financing costs, net (1,977) (1,231) Total debt 81,738 82,348 Less: current portion of long-term debt 56,642 53,818 Long-term debt $ 25,096 $ 28,530 Revolving Credit Facility - Fifth Third Bank On October 30, 2020, the Company entered into a $75,000 Senior Secured Revolving Credit Facility with Fifth Third Bank National Association as lender. The loan was secured by a first priority security interest on all accounts receivable, cash, and inventory, and provided for borrowing limited by certain percentages of values of the accounts receivable and inventory. The revolving credit facility was due to mature on October 30, 2025; however, on February 25, 2025, the Company refinanced its senior revolving credit facility with MidCap Financial IV Trust and the Company's existing revolving credit facility with Fifth Third was terminated in accordance with its terms. The Company recognized a $66 loss on the extinguishment of the Fifth Third debt which was included in other expense, net in the Company's consolidated statement of operations. Under the Fifth Third revolving credit facility, at the Company's election, advances of the revolving credit facility bore interest at annual …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Adopted Accounting Standards In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2023-09, Improvements to Income Tax Disclosures (Topic 740) , which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. The new guidance requires consistent categorization and greater disaggregation of information in the rate reconciliation, as well as further disaggregation of income taxes paid. This change is effective for annual periods beginning after December 15, 2024. The Company adopted this ASU in 2025 and applied it on a prospective basis to annual financial statements. The Company did not adjust prior periods as permitted. The adoption of this ASU did not have a material impact on its financial statements and related disclosures (See Note 13). Accounting Standards Yet to Be Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires disclosures about certain categories of expenses (including purchases of inventory, employee compensation, depreciation and intangible asset amortization) that are included in the expense captions presented on the face of the income statement, as well as disclosures about selling expenses. This new guidance is intended to provide investors with more detailed expense …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"FACILITY CONSOLIDATION AND SEVERANCE EXPENSES, NET 2022 Consolidation of East Coast Manufacturing Plan During 2022, the Company implemented a plan to consolidate its East Coast manufacturing in order to reduce its manufacturing costs. Under this plan, the Company will consolidate its East Coast tufting operations into one plant in North Georgia and relocate the distribution of luxury vinyl flooring from its Saraland, Alabama facility to its Atmore, Alabama facility. Costs for the plan will include machinery and equipment relocation, inventory relocation, staff reductions and unabsorbed fixed costs during conversion of the Atmore facility. Costs related to the facility consolidation plan is summarized as follows: As of December 27, 2025 Accrued Balance at December 28, 2024 2025 Expenses (1) 2025 Cash Payments Accrued Balance at December 27, 2025 Total Costs Incurred to Date Total Expected Costs Consolidation of East Coast Manufacturing Plan $ $ 349 $ 349 $ $ 8,482 $ 8,685 Asset Impairments/Non-cash items $ $ 200 $ $ $ 2,826 $ 3,300 Accrued Balance at December 30, 2023 2024 Expenses (1) 2024 Cash Payments Accrued Balance at December 28, 2024 Consolidation of East Coast Manufacturing Plan $ 36 $ 418 $ 454 $ Asset Impairments/Non-cash items $ $ 909 $ $ (1) Costs incurred under these plans are classified as "" facility consolidation and severance expenses, net "" in the Company's Consolidated Statements of Operations." …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Disaggregation of Revenue from Contracts with Customers The following table disaggregates the Companys revenue by end-user markets: 2025 2024 Residential floorcovering products $ 254,234 $ 261,108 Other services 3,195 3,918 Total net sales $ 257,429 $ 265,026 Residential floorcovering products. Residential floorcovering products include broadloom carpet, rugs, luxury vinyl flooring and engineered hardwood. These products are sold into the designer, retailer, mass merchant and builder markets. Other services. Other services include carpet yarn processing and carpet dyeing services. Contract Balances Other than receivables that represent an unconditional right to consideration, which are presented separately (See Note 4), the Company does not recognize any contract assets which give conditional rights to receive consideration, as the Company does not incur costs to obtain customer contracts that are recoverable. The Company may receive cash payments from customers in advance of the Companys performance for limited production run orders resulting in contract liabilities. These contract liabilities are classified in accrued expenses in the consolidated balance sheets based on the timing of when the Company expects to recognize revenue, which is typically less than a year. The net decrease or increase in the contract liabilities is primarily driven by order activity for limited runs requiring deposits offset by the recognition of revenue and the application of deposit on t …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT REPORTING Based on applicable accounting standards, the Company has determined that it has one reportable segment, Floorcovering. The Floorcovering segment derives revenues from customers through the sale of residential floorcovering products which include broadloom carpet, rugs, luxury vinyl flooring and engineered hardwood. These products are sold into the designer, retailer, mass merchant and builder markets. The Company derives revenues primarily in the United States and Canada and manages the business activities on a consolidated basis. No customer accounted for more than 10% of net sales in 2025 or 2024, nor did the Company make a significant amount of sales to foreign countries outside of Canada during 2025 or 2024. The accounting policies of the Floorcovering segment are the same as those described in the summary of significant accounting policies. The chief operating decision maker (""CODM""), which is the Company's Chief Executive Officer, assesses performance of the Floorcovering segment and decides how to allocate resources based on segment operating income (loss). The CODM uses segment operating income (loss) to monitor budget versus actual results and is used in assessing the performance of the segment. The measure of segment assets is reported on the balance sheet as total assets. The following table outlines information about the reported segment including net sales, significant segment expenses, and segment operating income (loss) for fiscal years 20 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENT On March 12, 2026, the Company granted 247,458 shares of restricted stock to certain key employees of the Company. The grant-date fair value of the awards was $105, or $0.425 per share, and will be recognized as stock compensation expense over a weighted-average period of 5.7 years from the date the awards were granted. Each award is subject to a continued service condition. The fair value of each share of restricted stock awarded was equal to the market value of a share of the Company's Common Stock on the grant date. On March 24, 2026, the Company entered into its First Amendment to its Senior Secured Revolving Credit Facility (the Amendment). The Amendment, among other things, amends the Defined Periods for a certain financial covenant and amends availability requirements and provides for the payment of an amendment fee. Under the Amendment, the lenders amended the springing minimum trailing twelve-month EBITDA covenant such that the covenant will not be tested for the Defined Periods ending August 30, 2025, November 1, 2025, November 29, 2025, December 27, 2025, January 31, 2026 and February 28, 2026. Accordingly, during these Defined Periods, the springing EBITDA test is not applicable. The Amendment does not otherwise change the minimum trailing twelve-fiscal-month EBITDA requirement of $8,969 for each Defined Period ending after February 28, 2026. The Amendment also adds a new minimum Availability requirement that applies at all times, including when t …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Contingencies The Company assesses its exposure related to legal matters, including those pertaining to product liability, safety and health matters and other items that arise in the regular course of its business. If the Company determines that it is probable a loss has been incurred, the amount of the loss, or an amount within the range of loss, that can be reasonably estimated will be recorded. There are no pending or threatened legal matters for which a reasonably estimated range of losses can be determined except as described below, and accordingly, the Company has not identified any such legal matters that could have a material adverse effect on its consolidated condensed results of operations, financial position or cash flows. Legal Proceedings As previously disclosed, the Company is currently defending five lawsuits based generally on alleged damages related to historical use of certain products alleged to have contained PFAS chemicals in its manufacturing processes. Following the end of the quarter, the Company engaged in settlement discussions with the plaintiffs in four of these pending claims. These pending matters are those styled: Moss Land Company, LLC, et al. v. City of Calhoun, et al. , in the Superior Court of Gordon County, Georgia, Case No. 24CV73929; The City of Calhoun, Georgia v. Daikin America, Inc., et al. , in the Superior County of Gordon County, Georgia, Case No. 24CV73929; William Hartwell Brooks v. City of Calhoun, G …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates the Companys revenue by end-user markets for the three and nine month periods ended September 27, 2025 and September 28, 2024: Three Months Ended Nine Months Ended September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024 Residential floorcovering products $ 61,684 $ 63,931 $ 191,397 $ 197,836 Other services 695 946 2,545 2,802 Total net sales $ 62,379 $ 64,877 $ 193,942 $ 200,638 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

STOCK-BASED COMPENSATION EXPENSE The Company recognizes compensation expense relating to share-based payments based on the fair value of the equity instrument issued and records such expense in selling and administrative expenses in the Company's consolidated condensed statements of operations. The Company's stock compensation expense was $33 and $119 for the three months ended September 27, 2025 and September 28, 2024, respectively and $195 and $378 for the nine months ended September 27, 2025 and September 28, 2024, respectively. On May 7, 2025, the Company issued 32,000 shares of restricted stock to the Company's non-employee directors. The grant-date fair value of the awards was $22, or $0.69 per share, and is expected to be recognized as stock compensation expense over a weighted-average period of 1.0 year from the date the awards were granted. Each award is subject to a continued service condition. The fair value of each restricted stock awarded was equal to the market value of a share of the Company's Common Stock on the grant date.

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock

FAIR VALUE MEASUREMENTS Fair value is defined as the exchange value of an asset or a liability in an orderly transaction between market participants. The fair value guidance outlines a valuation framework and establishes a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and disclosures. The hierarchy consists of three levels as follows: Level 1 - Quoted market prices in active markets for identical assets or liabilities as of the reported date; Level 2 - Other than quoted market prices in active markets for identical assets or liabilities, quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and other than quoted prices for assets or liabilities and prices that are derived principally from or corroborated by market data by correlation or other means; and Level 3 - Measurements using management's best estimate of fair value, where the determination of fair value requires significant management judgment or estimation. The carrying amounts and estimated fair values of the Company's financial instruments are summarized as follows: September 27, 2025 December 28, 2024 Carrying Fair Carrying Fair Amount Value Amount Value Financial assets: Cash and cash equivalents $ 3,438 $ 3,438 $ 19 $ 19 Restricted cash 3,886 3,886 Financial liabilities: Long-term debt, including current portion $ 81,089 $ 69,946 $ 81,892 $ 73,249 Fina …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"INCOME TAXES TE 13 - INCOME TAXES The tax rate for the three and nine months ending September 27, 2025 was a benefit rate of 0.57% and an effective tax rate of 1.31%, respectively and the tax rate for the three and nine months ending September 28, 2024 was a benefit rate of 0.11% and an effective tax rate of 0.30%, respectively. Because the Company maintains a full valuation allowance against its deferred income tax balances, the Company is only able to recognize refundable credits and a small amount of state taxes in the tax expense for the three and nine months of 2025. The Company is in a net deferred tax liability position of $91 and $91 at September 27, 2025 and December 28, 2024, respectively, which is included in other long-term liabilities in the Company's consolidated condensed balance sheets. The Company accounts for uncertainty in income tax positions according to FASB guidance relating to uncertain tax positions. Unrecognized tax benefits were $570 and $560 at September 27, 2025 and December 28, 2024, respectively. Such benefits, if recognized, would affect the Company's effective tax rate. There were no significant interest or penalties accrued as of September 27, 2025 and December 28, 2024. The Company and its subsidiaries are subject to United States federal income taxes, as well as income taxes in a number of state jurisdictions. The tax years subsequent to 2021 remain open to examination for U.S. federal income taxes. The majority of state jurisdictions rema …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES Leases as Lessee Balance sheet information related to right-of-use assets and liabilities is as follows: Balance Sheet Location September 27, 2025 December 28, 2024 Operating Leases: Operating lease right-of-use assets Operating lease right-of-use assets $ 24,739 $ 25,368 Current portion of operating lease liabilities Current portion of operating lease liabilities $ 4,451 $ 3,804 Noncurrent portion of operating lease liabilities Operating lease liabilities 21,412 22,295 Total operating lease liabilities $ 25,863 $ 26,099 Finance Leases: Finance lease right-of-use assets Property, plant, and equipment, net $ 405 $ 498 Current portion of finance lease liabilities Current portion of long-term debt $ 148 $ 142 Noncurrent portion of finance lease liabilities Long-term debt 195 314 Total financing lease liabilities $ 343 $ 456 Lease cost recognized in the consolidated condensed financial statements is summarized as follows: Three Months Ended Nine Months Ended September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024 Operating lease cost $ 1,638 $ 1,433 $ 4,757 $ 4,370 Finance lease cost: Amortization of lease assets $ 24 $ 4 $ 73 $ 11 Interest on lease liabilities 5 2 17 6 Total finance lease costs $ 29 $ 6 $ 90 $ 17 Other supplemental information related to leases is summarized as follows: September 27, 2025 September 28, 2024 Weighted average remaining lease term (in years): Operating leases 5.52 6.55 Finance leases 2.22 3.92 Weighted average discount ra …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

LONG-TERM DEBT AND CREDIT ARRANGEMENTS Long-term debt consists of the following: September 27, 2025 December 28, 2024 Revolving credit facility - Fifth Third Bank $ $ 50,000 Revolving credit facility - MidCap Financial IV Trust 53,084 Term loans 20,363 21,960 Notes payable - other 9,749 11,163 Finance lease obligations 343 456 Deferred financing costs, net (2,107) (1,231) Total debt 81,432 82,348 Less: current portion of long-term debt 55,893 53,818 Long-term debt $ 25,539 $ 28,530 Revolving Credit Facility - Fifth Third Bank On October 30, 2020, the Company entered into a $75,000 Senior Secured Revolving Credit Facility with Fifth Third Bank National Association as lender. The loan was secured by a first priority security interest on all accounts receivable, cash, and inventory, and provides for borrowing limited by certain percentages of values of the accounts receivable and inventory. The revolving credit facility was due to mature on October 30, 2025; however, on February 25, 2025, the Company refinanced its senior revolving credit facility with MidCap Financial IV Trust and the Companys existing revolving credit facility with Fifth Third was terminated in accordance with its terms. The Company recognized a $66 loss on the extinguishment of the Fifth Third debt which was included in other expense, net in the Company's consolidated condensed statements of operations. Under the Fifth Third revolving credit facility, at the Company's election, advances of the revolving credi …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Accounting Standards Yet to Be Adopted In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2023-09, Improvements to Income Tax Disclosures (Topic 740) , which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. The new guidance requires consistent categorization and greater disaggregation of information in the rate reconciliation, as well as further disaggregation of income taxes paid. This change is effective for annual periods beginning after December 15, 2024. This change will apply on a prospective basis to annual financial statements for periods beginning after the effective date. However, retrospective application in all prior periods presented is permitted. The Company does not expect the adoption of this ASU to have a material impact on its financial statements and related disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires disclosures about certain categories of expenses (including purchases of inventory, employee compensation, depreciation and intangible asset amortization) that are included in the expense captions presented on the face of the income statement, as well as disclosures about selling expenses. This new guidance is intended to provide investors with …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

EMPLOYEE BENEFIT PLANS Defined Contribution Plans The Company sponsors a 401(k) defined contribution plan that covers approximately 98% of the Company's current associates. This plan includes a mandatory Company match on the first 1% of participants' contributions. The Company matches the next 2% of participants' contributions if the Company meets prescribed earnings levels. The plan also provides for additional Company contributions above the 3% level if the Company attains certain additional performance targets. Matching contribution expense for this 401(k) plan was $83 and $92 for the three months ended September 27, 2025 and September 28, 2024, respectively and $255 and $277 for the nine months ended September 27, 2025 and September 28, 2024, respectively. Additionally, the Company sponsors a 401(k) defined contribution plan that covers associates at one facility who are under a collective-bargaining agreement. The number of associates under the plan represents approximately 2% of the Company's total current associates. Under this plan, the Company generally matches participants' contributions, on a sliding scale, up to a maximum of 2.75% of the participant's earnings. Matching contribution expense for the collective-bargaining 401(k) plan was $1 and $1 for the three months ended September 27, 2025 and September 28, 2024, respectively and $3 and $3 for the nine months ended September 27, 2025 and September 28, 2024, respectively. Non-Qualified Retirement Savings Plan The …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"FACILITY CONSOLIDATION AND SEVERANCE EXPENSES, NET 2022 Consolidation of East Coast Manufacturing Plan During 2022, the Company implemented a plan to consolidate its East Coast manufacturing in order to reduce its manufacturing costs. Under this plan, the Company consolidated its East Coast tufting operations into one plant in North Georgia, relocated the distribution of luxury vinyl flooring from its Saraland, Alabama facility to its Atmore, Alabama facility and identified space in its Saraland, Alabama and Atmore, Alabama facilities as available for lease or sublease. Costs for the plan include machinery and equipment relocation, inventory relocation, staff reductions and unabsorbed fixed costs during conversion of the Atmore facility. Costs related to the facility consolidation plans are summarized as follows: As of September 27, 2025 Accrued Balance at December 28, 2024 2025 Expenses To Date (1) 2025 Cash Payments Accrued Balance at September 27, 2025 Total Costs Incurred To Date Total Expected Costs Consolidation of East Coast Manufacturing Plan $ $ 263 $ 263 $ $ 8,396 $ 8,478 Asset Impairments/Non-Cash Items $ $ 86 $ $ $ 2,712 $ 2,912 Accrued Balance at December 30, 2023 2024 Expenses To Date (1) 2024 Cash Payments Accrued Balance at September 28, 2024 Consolidation of East Coast Manufacturing Plan $ 36 $ 326 $ 359 $ 3 Asset Impairments/Non-Cash Items $ $ 446 $ $ (1) Costs incurred under these plans are classified as ""facility consolidation and severance expenses, net …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE Revenue Recognition Policy The Company derives its revenues primarily from the sale of floorcovering products and processing services. Revenues are recognized when control of these products or services is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products and services. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. Shipping and handling fees charged to customers are reported within revenue. When the Company transfers control of its products to the customer prior to the related shipping and handling activities, the Company has adopted a policy of accounting for shipping and handling activities as a fulfillment cost rather than a performance obligation. Incidental items that are immaterial in the context of the contract are recognized as expense. While the Company pays sales commissions to certain personnel, the Company has not capitalized these costs as costs to obtain a contract as the Company has elected to expense costs as incurred when the expected amortization period is one year or less. The Company does not have any significant financing components as payment is received at or shortly after the point of sale. The Company determined revenue recognition through the following steps: Identification of the contract with a customer Identification of the performance obligations in the contract Determ …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT REPORTING Based on applicable accounting standards, the Company has determined that it has one reportable segment, Floorcovering. The Floorcovering segment derives revenues from customers through the sale of residential floorcovering products which include broadloom carpet, rugs, luxury vinyl flooring and engineered hardwood. These products are sold into the designer, retailer, mass merchant and builder markets. The Company derives revenues primarily in the United States and Canada and manages the business activities on a consolidated basis. No customer accounted for more than 10% of net sales in 2025 or 2024, nor did the Company make a significant amount of sales to foreign countries outside of Canada during 2025 or 2024. The accounting policies of the Floorcovering segment are the same as those described in the summary of significant accounting policies. The chief operating decision maker (""CODM""), which is the Company's Chief Executive Officer, assesses performance of the Floorcovering segment and decides how to allocate resources based on segment operating income (loss). The CODM uses segment operating income (loss) to monitor budget versus actual results and is used in assessing the performance of the segment. The measure of segment assets is reported on the balance sheet as total assets. The following table outlines information about the reported segment including net sales, significant segment expenses, and segment operating income (loss) for the three and n …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing