Financial Analysis

NOTE 16 CONTINGENCIES We review the need to accrue for any loss contingency and establish a liability when, in the opinion of management, it is probable that a matter would result in a liability and the amount of loss, if any, can be reasonably estimated. We do not believe that the resolution of any currently pending lawsuits, claims, and proceedings, either individually or in the aggregate, will have a material adverse effect on our results of operations, financial position, or liquidity. However, the outcomes of any currently pending lawsuits, claims, and proceedings cannot be predicted, and therefore, there can be no assurance that this will be the case. There are no loss contingencies subject to reporting for the years ended December 31, 2025 and 2024. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Year Ended December 31, 2025 2024 Sales Gross Margin Margin Sales Gross Margin Margin Consumer $ 192,717,539 $ 22,924,250 11.9 % $ 130,469,468 $ 15,881,870 12.2 % Commercial 48,303,823 31,000,743 64.2 % 49,906,761 28,433,917 57.0 % $ 241,021,362 $ 53,924,993 22.4 % $ 180,376,229 $ 44,315,787 24.6 % …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 14 STOCK-BASED COMPENSATION On June 25, 2025, our shareholders approved the adoption of the 2025 Equity Incentive Plan (the 2025 Plan), effective June 25, 2025. The 2025 Plan provides for the grant of up to 1.1 million shares of Common Stock pursuant to awards granted under the plan. The 2025 Plan will remain in effect for a term of 10 years from the effective date, unless sooner terminated by the Board of Directors. As of December 31, 2025, no awards have been granted under the 2025 Plan. In the 2024 comparative period, there was no stock-based compensation activity under any prior plans. As a result, no stock-based compensation expense was recognized for the years ended December 31, 2025 and 2024. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 17 INCOME TAXES The Companys income from continuing operations before income tax expense for Fiscal 2025 and Fiscal 2024 was $18,723,218 and $8,749,180, respectively, and was derived entirely from domestic operations. The following table summarizes the components of income tax expense, disaggregated by current and deferred, and by federal and state: Year Ended December 31, 2025 2024 Current Federal $ 3,648,001 $ 1,888,771 State and local 281,332 191,544 Sub-total 3,929,333 2,080,315 Deferred Federal $ 196,907 $ (88,194) Sub-total 196,907 (88,194) $ 4,126,240 $ 1,992,121 The following table provides a reconciliation of the Companys federal tax rate to its effective tax rate: Year Ended December 31, 2025 2024 Income tax expense at the federal tax rate $ 3,931,876 21.0 % $ 1,837,328 21.0 % State and local taxes, net of federal income tax effect (1) 222,253 1.2 % 151,320 1.7 % Foreign derived intangible income (44,231) (0.2) % 0.0 % Nontaxable or nondeductible items 9,648 0.1 % 8,415 0.1 % Other 6,694 0.0 % (4,942) (0.1) % $ 4,126,240 22.0 % $ 1,992,121 22.8 % (1) State taxes, net of federal benefit, are predominantly due to activity in Texas, as the majority of the business activity of the Company is from that state. The following table summarizes income taxes paid, net of any refunds received for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 Federal $ 2,570,000 $ 2,090,000 State and local 264,505 180,708 $ 2,834,505 $ 2,270,708 The following …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 11 LEASES The following table depicts the Companys future annual minimum leases payments as of December 31, 2025: Operating Leases Consumer 2026 $ 1,130,777 2027 887,803 2028 652,641 2029 533,234 2030 203,190 Thereafter - Total minimum lease payments 3,407,645 Less: imputed interest (268,790) Sub-total 3,138,855 Commercial 2026 1,280,989 2027 1,453,169 2028 1,476,504 2029 1,535,564 2030 1,596,986 Thereafter 550,061 Total minimum lease payments 7,893,273 Less: imputed interest (1,098,266) Sub-total 6,795,007 Total 9,933,862 Less: current portion 1,937,295 $ 7,996,567 All of the Companys leased facilities, as of December 31, 2025, are non-cancellable. The leases are a combination of triple net leases, for which the Company pays its proportionate share of common area maintenance, property taxes, and property insurance, and modified gross leases, for which the Company directly pays for common area maintenance and property insurance. Lease costs are comprised of a combination of minimum lease payments and variable lease costs. The following table depicts supplemental cash flow information related to operating leases: Year Ended December 31, 2025 2024 Non-cash activities: right-of-use operating lease assets obtained in exchange for new operating lease liabilities $ 7,235,358 $ 2,341,024 The following table depicts the Companys leasing costs for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 Consumer Commercial Consolidated Consumer Commercial Con …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"NOTE 13 DEBT The following table summarizes the details of the Companys long-term debt obligations: Outstanding Balance December 31, December 31, 2025 2024 Consumer Note payable, FSB (1) $ 2,342,485 $ 2,455,043 Note payable, Truist Bank (3) 762,430 801,175 Notes payable, TBT (4,5) 1,486,229 1,979,730 Note payable, Scottsdale Transaction (6) 18,750 50,000 Sub-total 4,609,894 5,285,948 Commercial Note payable, FSB (2) 5,314,741 5,569,171 Note payable, Avail Transaction (7) 166,667 Sub-total 5,314,741 5,735,838 Corporate Line of credit, FSB (8) Note payable, TBT (9) 2,500,393 Sub-total 2,500,393 Total 9,924,635 13,522,179 Less: current portion (7,787,468) (3,591,351) $ 2,137,167 $ 9,930,828 (1) On November 23, 2021, the consumer segment entered into a $2.781 million secured amortizing note payable with Farmers State Bank of Oakley, Kansas (FSB). The note payable bears interest at 3.10% and matures on November 15, 2026. (2) On November 23, 2021, the commercial segment entered into a $6.309 million secured amortizing note payable with FSB. The note payable bears interest at 3.10% and matures on November 15, 2026. (3) On July 9, 2020, the consumer segment entered into a $956 thousand secured amortizing note payable with Truist Bank. The note payable bears interest at 3.65% and matures on July 9, 2030. (4) On September 14, 2020, the consumer segment entered into a $496 thousand secured amortizing note payable with Texas Bank & Trust (TBT). The note payable incurred interest at …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"New Accounting Standards In November 2024, the FASB issued Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which requires an entity to disclose additional information about specific expense categories. The guidance is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption and retrospective application permitted. The Company is currently evaluating the potential impact of adopting this new guidance on the consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). ASU 2025-06 updates the accounting for internal-use software by replacing former stage-based rules with a principles-based framework. Entities will now capitalize costs associated with internal-use software only when management has authorized and committed funding, and it is probable that the project will be completed and the software will be used to perform the intended function. ASU 2025-06 also supersedes website development cost guidance, moving it to ASC 350-40. The guidance is effective for annual and interim periods beginning after December 15, 2027, with early adoption …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 18 DEFINED CONTRIBUTION PLANS The Company sponsors a defined contribution 401(k) plan (DCP). Employee contributions under the DCP are fully vested, with employer matching contributions being subject to a service vesting schedule. In Fiscal 2025 and 2024, the Company contributed $49,633 and $13,472 to the DCP, respectively. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 15 RELATED PARTY TRANSACTIONS The Company has a corporate policy governing the identification, review, consideration, and approval or ratification of transactions with related persons. Under this policy, all related party transactions are identified and approved prior to consummation of the transaction to ensure they are consistent with the Companys best interests and the best interests of its shareholders. The Company utilizes a space owned by a related party, for the secure processing and handling of materials before distribution. No consideration is exchanged between the parties, but the Company estimates that, if costs were incurred, they would be immaterial to its consolidated financial statements. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 9 SEGMENT INFORMATION The CODM uses operating income to evaluate the performance of the overall business, make investing decisions, and allocate resources. The following table depicts the Companys segment results of operations, including significant expenses that are regularly reviewed by the CODM, for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 Consumer Commercial Consolidated Consumer Commercial Consolidated Sales $ 192,717,539 $ 48,303,823 $ 241,021,362 $ 130,469,468 $ 49,906,761 $ 180,376,229 Cost of goods sold 169,793,289 17,303,080 187,096,369 114,587,598 21,472,844 136,060,442 Selling, general and administrative 15,454,592 18,494,881 33,949,473 15,211,970 19,393,162 34,605,132 Depreciation and amortization 791,966 1,074,623 1,866,589 524,510 1,027,264 1,551,774 Operating income $ 6,677,692 $ 11,431,239 $ 18,108,931 $ 145,390 $ 8,013,491 $ 8,158,881 The following table depicts a reconciliation from segment operating income to income before income taxes for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 Consumer Commercial Consolidated Consumer Commercial Consolidated Operating income $ 6,677,692 $ 11,431,239 $ 18,108,931 $ 145,390 $ 8,013,491 $ 8,158,881 Other income 352,295 668,634 1,020,929 104,561 933,121 1,037,682 Interest expense (204,603) (202,039) (406,642) (228,792) (218,591) (447,383) Income before income taxes $ 6,825,384 $ 11,897,834 $ 18,723,218 $ 21,159 $ 8,728,021 $ 8,749,180 Other signi …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 3 ACCOUNTING POLICIES AND ESTIMATES Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include revenue recognition, determining the nature and timing of satisfaction of performance obligations, variable consideration, and other obligations such as product returns and refunds; loss contingencies; the fair value of and/or potential impairment of goodwill and intangible assets for the reporting units; useful lives of our tangible and intangible assets; allowances for credit losses; the market value of, and demand for, our inventory and the potential outcome of uncertain tax positions that have been recognized on our consolidated financial statements or tax returns. Actual results could differ from those estimates and assumptions. Revenue Recognition Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, provides guidance on identifying performance obligations in revenue-generating transactions. The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: (i) identifying the contract with a customer; (ii) identifying the performance obligations in the contract; (iii) determining the transaction price; (iv) allocating the transaction price to the performance obligations in the contract …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 16 CONTINGENCIES We review the need to accrue for any loss contingency and establish a liability when, in the opinion of management, it is probable that a matter would result in a liability and the amount of loss, if any, can be reasonably estimated. We do not believe that the resolution of any currently pending lawsuits, claims, and proceedings, either individually or in the aggregate, will have a material adverse effect on financial position, results of operations, or liquidity. However, the outcomes of any currently pending lawsuits, claims, and proceedings cannot be predicted, and therefore, there can be no assurance that this will be the case. There are no loss contingencies subject to reporting for the three and nine months ended September 30, 2025 and 2024. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Three Months Ended September 30, 2025 2024 Sales Gross Margin Margin Sales Gross Margin Margin Consumer $ 45,068,036 $ 5,201,070 11.5 % $ 33,756,600 $ 3,916,315 11.6 % Commercial 12,321,375 7,866,860 63.8 % 13,142,959 7,547,924 57.4 % $ 57,389,411 $ 13,067,930 22.8 % $ 46,899,559 $ 11,464,239 24.4 % Nine Months Ended September 30, 2025 2024 Sales Gross Margin Margin Sales Gross Margin Margin Consumer $ 125,012,398 $ 14,069,959 11.3 % $ 93,972,645 $ 11,486,833 12.2 % Commercial 35,509,675 23,353,918 65.8 % 38,081,696 21,687,547 57.0 % $ 160,522,073 $ 37,423,877 23.3 % $ 132,054,341 $ 33,174,380 25.1 % …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

NOTE 14 STOCK-BASED COMPENSATION On June 25, 2025, our shareholders approved the adoption of the 2025 Equity Incentive Plan (the 2025 Plan), effective June 25, 2025. The 2025 Plan provides for the grant of up to 1.1 million shares of Common Stock pursuant to awards granted under the plan. The 2025 Plan will remain in effect for a term of 10 years from the effective date, unless sooner terminated by the Board of Directors. As of September 30, 2025, no awards have been granted under the 2025 Plan. In the 2024 comparative period, there was no stock-based compensation activity under any prior plans. As a result, no stock-based compensation expense was recognized for the three and nine months ended September 30, 2025 and 2024. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 11 LEASES The following table depicts the Companys future minimum lease payments as of September 30, 2025: Operating Leases Consumer 2025 $ 202,618 2026 1,186,142 2027 887,803 2028 652,641 2029 533,234 Thereafter 203,189 Total minimum lease payments 3,665,627 Less: imputed interest (304,946) Sub-total 3,360,681 Commercial 2025 310,669 2026 1,387,320 2027 1,453,169 2028 1,476,504 2029 1,535,564 Thereafter 2,147,047 Total minimum lease payments 8,310,273 Less: imputed interest (1,192,849) Sub-total 7,117,424 Total 10,478,105 Less: current portion 1,844,223 $ 8,633,882 All of the Companys leased facilities as of September 30, 2025, are non-cancellable. The leases are a combination of triple net leases, for which the Company pays its proportionate share of common area maintenance, property taxes, and property insurance, and modified gross leases, for which the Company directly pays for common area maintenance and property insurance. Lease costs are comprised of a combination of minimum lease payments and variable lease costs. The following table depicts supplemental cash flow information related to operating leases: Nine Months Ended September 30, 2025 2024 Non-cash activities: right-of-use operating lease assets obtained in exchange for new operating lease liabilities $ 7,235,358 $ 1,562,664 The following table depicts the Companys leasing costs for the three months ended September 30, 2025 and 2024: Three Months Ended September 30, 2025 2024 Consumer Commercial Consolidate …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

NOTE 13 DEBT The following table summarizes the details of the Companys long-term debt obligations: Outstanding Balance September 30, December 31, 2025 2024 Consumer Note payable, FSB (1) $ 2,370,896 $ 2,455,043 Note payable, Truist Bank (3) 772,270 801,175 Notes payable, TBT (4,5) 1,503,752 1,979,730 Note payable, Scottsdale Transaction (6) 50,000 50,000 Sub-total 4,696,918 5,285,948 Commercial Note payable, FSB (2) 5,379,203 5,569,171 Note payable, Avail Transaction (7) 166,667 Sub-total 5,379,203 5,735,838 Corporate Line of credit, FSB (8) Note payable, TBT (9) 2,409,511 2,500,393 Sub-total 2,409,511 2,500,393 Total 12,485,632 13,522,179 Less: current portion (2,945,351) (3,591,351) $ 9,540,281 $ 9,930,828 (1) On November 23, 2021, the consumer segment entered into a $2.781 million secured amortizing note payable with Farmers State Bank of Oakley, Kansas (FSB). The note payable bears interest at 3.10% and matures on November 15, 2026. (2) On November 23, 2021, the commercial segment entered into a $6.309 million secured amortizing note payable with FSB. The note payable bears interest at 3.10% and matures on November 15, 2026. (3) On July 9, 2020, the consumer segment entered into a $956 thousand secured amortizing note payable with Truist Bank. The note payable bears interest at 3.65% and matures on July 9, 2030. (4) On September 14, 2020, the consumer segment entered into a $496 thousand secured amortizing note payable with Texas Bank & Trust (TBT). The note payable …

LongTermDebtTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements In November 2024, the FASB issued Accounting Standards Update (ASU) 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which requires an entity to disclose additional information about specific expense categories. The guidance is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption and retrospective application permitted. The Company is currently evaluating the potential impact of adopting this new guidance on the consolidated financial statements and related disclosures. In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (""ASU 2025-05""), which provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, Revenue from Contracts with Customers. The practical expedient permits an entity to assume that current conditions as of the balance sheet date do not change for the remaining life of the current accounts receivable and current contract assets. The guidance is effective for annual and interim periods beginning after December 15, 2025, with early adoption and prospective application pe …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 15 RELATED PARTY TRANSACTIONS The Company has a corporate policy governing the identification, review, consideration, and approval or ratification of transactions with related persons. Under this policy, all related party transactions are identified and approved prior to consummation of the transaction to ensure they are consistent with the Companys best interests and the best interests of its shareholders. The Company utilizes a space owned by a related party, for the secure processing and handling of materials before distribution. No consideration is exchanged between the parties, but the Company estimates that, if costs were incurred, they would be immaterial to its condensed consolidated financial statements. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 9 SEGMENT INFORMATION The CODM uses operating income to evaluate the performance of the overall business, make investing decisions, and allocate resources. The following table depicts the Companys segment results of operations, including significant expenses that are regularly reviewed by the CODM, for the three months ended September 30, 2025 and 2024: Three Months Ended September 30, 2025 2024 Consumer Commercial Consolidated Consumer Commercial Consolidated Sales $ 45,068,036 $ 12,321,375 $ 57,389,411 $ 33,756,600 $ 13,142,959 $ 46,899,559 Cost of goods sold 39,866,966 4,454,515 44,321,481 29,840,285 5,595,035 35,435,320 Selling, general and administrative 3,827,882 4,565,996 8,393,878 3,925,981 5,103,007 9,028,988 Depreciation and amortization 203,349 269,175 472,524 150,657 264,122 414,779 Operating income (loss) $ 1,169,839 $ 3,031,689 $ 4,201,528 $ (160,323) $ 2,180,795 $ 2,020,472 The following table depicts the reconciliation of the Companys segment operating income to income before income taxes for the three months ended September 30, 2025 and 2024: Three Months Ended September 30, 2025 2024 Consumer Commercial Consolidated Consumer Commercial Consolidated Operating income (loss) $ 1,169,839 $ 3,031,689 $ 4,201,528 $ (160,323) $ 2,180,795 $ 2,020,472 Other income 104,863 128,779 233,642 62,502 277,849 340,351 Interest expense (53,429) (52,328) (105,757) (51,486) (54,653) (106,139) Income (loss) before income taxes $ 1,221,273 $ 3,108,140 $ 4,329,413 $ (149,307) …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 3 ACCOUNTING POLICIES AND ESTIMATES Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include revenue recognition, determining the nature and timing of satisfaction of performance obligations, variable consideration, and other obligations such as product returns and refunds; loss contingencies; the fair value of and/or potential impairment of goodwill and intangible assets for the reporting units; useful lives of our tangible and intangible assets; allowances for credit losses; the market value of, and demand for, our inventory and the potential outcome of uncertain tax positions that have been recognized on our condensed consolidated financial statements or tax returns. Actual results could differ from those estimates and assumptions. Revenue Recognition Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, provides guidance to identify performance obligations for revenue-generating transactions. The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing