Financial Analysis

"(4) Acquisition On April 3, 2023, the Company acquired 100% of the issued and outstanding equity interests of PetCareRx, a New York corporation and a leading supplier of pet food, pet medications, and supplies. The acquisition was completed pursuant to an Agreement and Plan of Merger (""Merger Agreement"") by and among the Company, Harry Merger Sub, Inc., a New York corporation and a wholly-owned subsidiary of the Company (""Merger Sub""), PetCareRx and Jeanette Loeb (as representative of the PetCareRx equity holders). The Merger Agreement provided for the Companys acquisition of PetCareRx pursuant to the merger of Merger Sub with and into PetCareRx, with PetCareRx as the surviving corporation. The aggregate purchase price consideration was $36.1 million and was funded from the Company's cash on hand. The acquisition of PetCareRx allowed the Company to expand its product catalog, most notably in non-medication products, including food. In addition, PetCareRx brings increased distribution capability and experience, geographic diversity, technology enhancements, additional vendor relationships and a long-tenured and experienced staff. The Company recognized goodwill of approximately $26.7 million, which is calculated as the excess of the consideration exchanged and liabilities assumed as compared to the fair value of the identifiable assets acquired. Goodwill recognized in the transaction represents synergies or scale achieved by significantly increasing the customer base with …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

(14) Commitments and Contingencies Legal Matters and Routine Proceedings The Company has settled complaints that had been filed with various states pharmacy boards in the past. There can be no assurances made that other states will not attempt to take similar actions against the Company in the future. The Company also intends to vigorously defend its trade or service marks. There can be no assurance that the Company will be successful in protecting its trade or service marks. Legal costs related to the above matters are expensed as incurred. From time to time, the Company may be involved in and subject to disputes and legal proceedings, as well as demands, claims and threatened litigation that arise in the ordinary course of its business. These proceedings may include allegations involving business practices, infringement of intellectual property, employment or other matters. The ultimate outcome of any legal proceeding is often uncertain, there can be no assurance that the Company will be successful in any legal proceeding, and unfavorable outcomes could have a negative impact on our results of operations and financial condition. In accordance with ASC Topic 450-20, Loss Contingencies , the Company records a liability in its financial statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews the status of each significant matter each accounting period as additional information is known and adjusts …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

(15) Employee Benefit Plan The Company maintains a 401(k) Savings Plan for eligible employees. The plan is a defined contribution plan that is administered by the Company. All regular, full-time employees are eligible for voluntary participation upon completing 90 days of service and having attained the age of 21. The plan provides for growth in savings through contributions and income from investments. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 , as amended. Plan participants are allowed to contribute a specified percentage of their base salary. The Company matches 100% of the first 4% of the employee's contribution. The matching contribution is funded subsequent to the calendar year. During the fiscal years ended March 31, 2026, 2025, and 2024, the Company recorded $371 thousand, $309 thousand, and $350 thousand, respectively, of 401(k) matching contribution and administration expense to general and administrative expenses. In accordance with the plan documents, the Company can elect to make discretionary contributions, however, none were made during the fiscal years ended March 31, 2026 and March 31, 2025.

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"(11) Share-Based Compensation The Company's incentive equity grants have been made under the following plans: In July 2015, the Companys 2015 Outside Director Equity Compensation Restricted Stock Plan (2015 Director Plan) became effective upon the approval of the plan by the Companys shareholders. The 2015 Director Plan authorized 400,000 shares of the Company's common stock available for issuance under the plan and provides for an automatic increase every year in the amount of shares available for issuance under the plan of 10% of the shares authorized under the plan. In July 2016, the Companys 2016 Employee Equity Compensation Restricted Stock Plan (2016 Employee Plan) became effective upon the approval of the plan by the Companys shareholders. The 2016 Employee Plan authorized 1,000,000 shares of the Company's Common stock available for issuance under the plan. In July 2022, the Companys 2022 Employee Equity Compensation Restricted Stock Plan (2022 Employee Plan) became effective upon the approval of the plan by the Companys shareholders. The 2022 Employee Plan replaced the 2016 Employee Plan, and as of April 2023 no further awards were granted, or will be granted, under the 2016 Employee Plan. The 2022 Employee Plan authorized 1,000,000 shares of the Company's common stock available for issuance. On August 8, 2024, the Company adopted the PetMed Express, Inc. 2024 Omnibus Incentive Plan (the ""2024 Omnibus Plan"") pursuant to which the Company reserved 850,000 shares of …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

(12) Fair Value Measurements The Company carries cash and cash equivalents and investments at fair value in the Consolidated Balance Sheets. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. ASC Topic 820, Fair Value Measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. At March 31, 2026 and 2025 the Company had cash and cash equivalents of $21.4 million and $54.7 million, respectively, which includes investments in money market funds which are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The following tables summarize the assets measured at fair value on a recu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

(9) Income Taxes All income before provision for income taxes is domestic. The components of the income tax provision consist of the following (in thousands): Year Ended March 31, 2026 2025 2024 Current taxes Federal $ $ 343 $ 490 State 14 93 408 Total current income tax provision 14 436 898 Deferred income tax provision (benefit) Federal (45) 4,448 412 State (42) 800 (119) Total deferred taxes (87) 5,248 293 Total income tax provision $ (73) $ 5,684 $ 1,191 We adopted ASU 2023-09 on a prospective basis in fiscal year 2026. The reconciliation of income tax provision computed at the U.S. federal statutory tax rates to income tax expense is as follows (in thousands): Year Ended March 31, 2026 $ % US federal statutory income tax rate (12,046) 21.00 % Domestic federal Nontaxable and nondeductible items Stock-based compensation 203 (0.35) % Executive Compensation 103 (0.18) % Goodwill Impairment 5,598 (9.76) % Other (77) 0.14 % Excess tax benefits on share-based payments (1) % Changes in valuation allowances 6,169 (10.76) % Domestic state and local income taxes, net of federal effect (22) 0.04 % Total $ (73) 0.13 % The differences between the effective income tax rate and the statutory U.S. federal income tax rate are as follows: Year Ended March 31, 2025 2024 Federal rate on income before taxes 21.0 % 21.0 % State income taxes, net of federal tax benefit 45.0 % (4.9) % Non-deductible executive compensation 301.7 % (28.2) % Other permanent differences 9.5 % (1.7) % Restricted stoc …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

(8) Leases The Companys leasing activities primarily consist of real estate leases acquired during the acquisition of PetCareRx for use in the business operations. The leases had initial terms ranging from 5 years to 10 years. Some of the initial lease terms have already matured and the remaining leases have maturity dates ranging through fiscal years 2027 and 2028. The Company assesses whether each lease is an operating lease or a finance lease at the lease commencement date. The Company does not have any material leases, individually or in the aggregate, classified as a finance lease. Variable Lease Costs Certain of the Companys leases require payments for taxes, insurance, and other costs applicable to the property, in addition to the minimum lease payment. These costs are considered variable costs which are based on actual expenses incurred by the lessor. Therefore, these amounts are not included in the calculation of the right-of-use assets and lease liabilities. The Company has lease agreements which provide for fixed and scheduled escalations, which are included in the calculation of the right-of-use assets and lease liabilities. Options to Extend or Terminate Leases The Companys leases may contain an option to extend the lease term for periods from one to five years The exercise of lease renewal options is at the Companys sole discretion. If it is reasonably certain that the Company will exercise such options, the periods covered by such options are included in the le …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Recently Adopted Accounting Standard In December 2023, the Financial Accounting Standards Board (""FASB"") issued Update 2023-09, ""Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This Update applies to all entities that are subject to Topic 740. The amendments in this Update revise income tax disclosures primarily related to the rate reconciliation and income taxes paid information as well as the effectiveness of certain other income tax disclosures. The Update is effective for annual periods beginning after December 15, 2024. As of March 31, 2026, the Company has adopted ASU 2023-09 prospectively and has enhanced its income tax disclosures included herein, to comply with the requirements. The adoption did not have an impact on the Companys financial statements. In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The FASB issued this ASU to update reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. This update became effective with the Companys fiscal year 2025 annual reporting period and with the Companys fiscal year 2026 interim reporting periods. The adoption of this standard did not have a material impact on the Companys condensed consolidated financial statements and resulted in additional segment di …

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(16) Related Party Transaction In fiscal 2024 the Company entered into a master services agreement with Fabric, Inc (Fabric), a privately-held company. Under this agreement, Fabric will provide cloud-based product services to the Company with a one-year term with auto-renewal unless either party provides notice at least 90 days in advance. Per the terms of the agreement, the Company will pay Fabric $115,000 the first year and $100,000 for each potential year thereafter with potential changes in the amounts paid based on actual usage of Fabrics servic es. The Company's former Chief Executive Officer and President, who departed the Company in August 2025, was an equity holder in Fabric and served on Fabric's Board of Directors during her tenure with the Company. Consequently, Fabric is no longer considered a related party to the Company subsequent to her departure. During the fiscal year ended March 31, 2025 the company paid Fabric approximately $105 thousand under this agreement for services rendered. During the fiscal year ended March 31, 2026, the company made no payments to Fabric under this agreement for services rendered while Fabric was considered a related party. As of March 31, 2026 and 2025, there were no amounts owed by the Company to Fabric …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

(2) Revenue Recognition In accordance with ASC Topic 606, Revenue from Contracts with Customers , the Company primarily generates revenue by selling prescription and non-prescription pet medication products, pet food, supplements, supplies, membership fees, and veterinary services. Certain pet supplies offered on the Companys websites are drop shipped to customers. We are the principal in the arrangement, as we control the goods prior to transfer and are responsible for suppler selection, pricing, and returns for damaged or missing product. Revenue contracts contain one performance obligation, which is delivery of the product. The transaction price is adjusted at the date of sale for any applicable sales discounts and an estimate of product returns, which are based on historical patterns, however this is not considered a key judgment. Revenue is recognized when control transfers to the customer at the point in time at which the shipment of the product occurs. This key judgment is determined as the shipping point, which represents the point in time when the Company has a present right to payment, title has transferred to the customer, and the customer has assumed the risks and rewards of ownership. Virtually all the Companys sales are paid by credit cards and the Company usually receives the cash settlement in two to three banking days. Credit card sales minimize the accounts receivable balances relative to sales. Revenue is recorded net of sales tax, discounts and return allo …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

(3) Segment Reporting The Company has a single segment that derives sales from customers through the sale of products which are shipped directly to customers. The accounting policies of the Company's single segment are the same as those described in the Company's Significant Accounting Policies. The Companys chief operating decision maker (CODM) is the Interim Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on consolidated net income (loss) and Adjusted EBITDA. The table below reconciles GAAP net loss reported on the accompanying Consolidated Statements of Operations to Adjusted EBITDA. The CODM uses consolidated net income (loss) and Adjusted EBITDA to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the entity. Adjusted EBITDA is used to monitor budget versus actual results and forecast versus actual results and is utilized when establishing managements compensation in collaboration with the Board of Directors. Adjusted EBITDA should only be considered as supplemental to, and alongside with, other GAAP based financial performance measures, including various cash flow metrics, net income, net margin, and our other GAAP results. The table below provides a summary of significant expense categories regularly provided to the CODM reconciled to Adjusted EBITDA, as well as a reconciliation of net loss to Adjusted EBITDA, for the years ende …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

(10) Shareholders Equity Preferred Stock In April 1998, the Company issued 250,000 shares of its $.001 par value preferred stock at a price of $4.00 per share, less issuance costs of $112 thousand. Each share of the preferred stock is convertible into approximately 4.05 shares of common stock at the election of the shareholder. The shares have a liquidation value of $4.00 per share and may pay dividends at the sole discretion of the Company. The Company does not anticipate paying dividends to the preferred shareholders in the foreseeable future. Each share of preferred stock is entitled to one vote on all matters submitted to a vote of shareholders of the Company. At March 31, 2026 and 2025, 2,500 shares of the convertible preferred stock remained unconverted and outstanding. On December 2, 2024, the Board of Directors (the Board) of the Company adopted a rights agreement and declared a dividend of one right (a Right) for each outstanding share of Company common stock, to shareholders of record at the close of business on December 16, 2024 (the Record Date). The description and terms of the Rights are set forth in a rights agreement, dated as of December 3, 2024 (the Rights Agreement), between the Company and Continental Stock Transfer & Trust Company, a federally chartered trust company, as rights agent. The Board adopted the Rights Agreement to protect the investment of shareholders during a period in which it believes shares of the Company do not reflect the inherent v …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Unsolicited and Non-Binding Acquisition Proposals In December, 2025, the Company received public unsolicited and non-binding acquisition proposals to acquire all of the outstanding shares of the Company at prices ranging from $4 to $4.25 per share in cash, subject to various conditions such as due diligence and the execution of a mutually acceptable definitive agreement, but not subject to any financing contingency. The Companys Board, consistent with its fiduciary duties and in consultation with its financial and legal advisors, are carefully reviewing and considering the acquisition proposals to determine the course of action that it believes is in the best interests of the Company and its stockholders. …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies Legal Matters and Routine Proceedings On April 18, 2024, Plaintiff Timothy Fitchett (Plaintiff) filed an action against the Company in the Court of Common Pleas of Allegheny County, Pennsylvania, on behalf of himself and purportedly on behalf of a class of others similarly situated. Plaintiff alleges that the Company violated Pennsylvanias Unfair Trade Practices and Consumer Protection Law by representing reg. prices for products which the Company allegedly never charged for those products. On May 13, 2024, the Company removed the matter to the U.S. District Court for the Western District of Pennsylvania in Pittsburgh. The Company successfully opposed the Plaintiff's motion to remand the case back to the Court of Common Pleas. On the face of the complaint, Plaintiff is seeking damages for himself in the amount of the allegedly illusory discounts he allegedly believed he was receiving when purchasing products from the Company or, in the alternative, a complete refund of amounts he paid to the Company, and he is also seeking a liability determination for members of the proposed class. The Company denies liability in this matter and intends to defend the action accordingly. The Company cannot determine materiality or estimate a range of potential liability, if any, at this time if the Company were determined to be liable. The Company may from time to time be involved in various other claims and lawsuits in the ordinary course of business, including …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

The following table illustrates sales in those categories: Three Months Ended December 31, Increase (Decrease) Net Sales (in thousands) 2025 % 2024 As Restated % $ % Reorder sales $ 34,020 83.7 % $ 44,174 85.0 % $ (10,154) (23.0) % New order sales 5,030 12.4 % 5,954 11.5 % (924) (15.5) % Membership fees 1,610 4.0 % 1,833 3.5 % (223) (12.2) % Total net sales $ 40,660 100.0 % $ 51,961 100.0 % $ (11,301) (21.7) % Nine Months Ended December 31, Increase (Decrease) Net Sales (in thousands) 2025 % 2024 As Restated % $ % Reorder sales $ 112,733 82.8 % $ 145,687 82.7 % $ (32,954) (22.6) % New order sales 18,607 13.7 % 24,299 13.8 % (5,692) (23.4) % Membership fees 4,864 3.6 % 6,226 3.5 % (1,362) (21.9) % Total net sales $ 136,204 100.0 % $ 176,212 100.0 % $ (40,008) (22.7) %

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"Share-Based Compensation The Company's incentive equity grants have been made under the following plans: In July 2015, the Companys 2015 Outside Director Equity Compensation Restricted Stock Plan (2015 Director Plan) became effective upon the approval of the plan by the Companys shareholders. The 2015 Director Plan authorized 400,000 shares of the Company's common stock available for issuance under the plan and provides for an automatic increase every year in the amount of shares available for issuance under the plan of 10% of the shares authorized under the plan. In July 2016, the Companys 2016 Employee Equity Compensation Restricted Stock Plan (2016 Employee Plan) became effective upon the approval of the plan by the Companys shareholders. The 2016 Employee Plan authorized 1,000,000 shares of the Company's Common stock available for issuance under the plan. In July 2022, the Companys 2022 Employee Equity Compensation Restricted Stock Plan (2022 Employee Plan) became effective upon the approval of the plan by the Companys shareholders. The 2022 Employee Plan replaced the 2016 Employee Plan, and as of April 2023 no further awards were granted, or will be granted, under the 2016 Employee Plan. The 2022 Employee Plan authorized 1,000,000 shares of the Company's common stock available for issuance. On August 8, 2024, the Company adopted the PetMed Express, Inc. 2024 Omnibus Incentive Plan (the 2024 Omnibus Plan) pursuant to which the Company reserved 850,000 shares of common st …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value The Company carries cash and cash equivalents at fair value in the unaudited Condensed Consolidated Balance Sheets. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. ASC Topic 820 ( Fair Value Measurement ) establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. At December 31, 2025 and March 31, 2025, the Company had invested the majority of its $26.9 million and $54.7 million cash and cash equivalents balance in money market funds which are classified within Level 1. …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes For the three months ended December 31, 2025 and 2024, the Company recorded an income tax provision of approximately $11 thousand and an income tax provision of approximately $0.5 million, respectively, and for the nine months ended December 31, 2025 and 2024, the Company recorded an income tax provision of $29 thousand and an income tax provision of $22 thousand, respectively. The effective tax rate for the three months ended December 31, 2025 was approximately (0.1)%, compared to approximately (192.1)% for the three months ended December 31, 2024, and the effective tax rate for the nine months ended December 31, 2025 was approximately (0.1)%, compared to approximately 0.4% for the nine months ended December 31, 2024. The effective tax rate for the three months ended December 31, 2025 differs from the statutory rate primarily as a result of the goodwill impairment and the Company maintaining a valuation allowance against the majority of our deferred tax assets. As of December 31, 2025, the Company maintained a valuation allowance against the majority of our deferred tax assets for which realization cannot be considered more likely than not at this time. Management assesses the need for the valuation allowance on a quarterly basis. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Recently Adopted Accounting Standard In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The FASB issued this ASU to update reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. This update became effective with the Companys fiscal year 2025 annual reporting period and with the Companys fiscal year 2026 interim reporting periods. The adoption of this standard did not have a material impact on the Companys condensed consolidated financial statements and resulted in additional segment disclosures within Footnote 4, Segment Reporting. Accounting Standards Not Yet Adopted In December 2023, the FASB issued Update 2023-09, ""Income Taxes (Topic 740): Improvements to Income Tax Disclosures"". This Update applies to all entities that are subject to Topic 740. The amendments in this Update revise income tax disclosures primarily related to the rate reconciliation and income taxes paid information as well as the effectiveness of certain other income tax disclosures. The Update is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Update should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evalua …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Revenue Recognition In accordance with ASC Topic 606 (""Revenue from Contracts with Customers""), the Company primarily generates revenue by selling prescription and non-prescription pet medication products, pet food, supplements, and supplies, membership fees, and veterinary services. Certain pet supplies offered on the Companys websites are drop shipped to customers. The Company considers itself the principal in the arrangement because the Company controls the specified good before it is transferred to the customer. Revenue contracts contain one performance obligation, which is delivery of the product. Customer care and support is deemed not to be a material right to the contract. The transaction price is adjusted at the date of sale for any applicable sales discounts and an estimate of product returns, which are based on historical patterns, however this is not considered a key judgment. Revenue is recognized when control transfers to the customer at the point in time at which the shipment of the product occurs. This key judgment is determined as the shipping point, which represents the point in time when the Company has a present right to payment, title has transferred to the customer, and the customer has assumed the risks and rewards of ownership. Virtually all the Companys sales are paid by credit cards and the Company usually receives the cash settlement in two to three banking days. Credit card sales minimize the accounts receivable balances relative to sales. Reven …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Reporting The Company has a single segment that derives sales from customers through the sale of products which are shipped directly to customers. The accounting policies of the Company's single segment are the same as those described in the Company's Summary of Significant Accounting Policies. The Companys chief operating decision maker (CODM) is the Interim Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on consolidated net income (loss) and Adjusted EBITDA that is reconciled to GAAP net loss reported on the accompanying Consolidated Statements of Operations below. The CODM uses consolidated net income (loss) and Adjusted EBITDA to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the entity. Adjusted EBITDA is used to monitor budget versus actual results and forecast versus actual results and is utilized when establishing managements compensation in collaboration with the Board of Directors. Consolidated net income (loss) and Adjusted EBITDA should only be considered as supplemental to, and alongside with, other GAAP based financial performance measures, including various cash flow metrics, net income (loss), net margin, and our other GAAP results. The table below provides a summary of significant expense categories regularly provided to the CODM reconciled to Adjusted EBITDA, as well as a reconciliation of Adjusted EBITDA t …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Changes in Shareholders Equity: Changes in Shareholders Equity for the three and nine months ended December 31, 2025 is summarized below (in thousands): Common Stock Additional Paid-In Capital Retained Earnings Share Amounts Beginning balance at March 31, 2025: 20,657 $ 21 $ 18,560 $ 66,544 Net share settlement of restricted stock units 178 (28) Stock based compensation 591 Dividends forfeited 1 Net loss (34,152) Ending balance at June 30, 2025: 20,835 $ 21 $ 19,123 $ 32,393 Net share settlement of restricted stock units 180 (209) Stock based compensation expense 247 Net loss (8,520) Ending balance at September 30, 2025: 21,016 $ 21 $ 19,161 $ 23,873 Net share settlement of restricted stock units 367 Stock based compensation expense 255 Net loss (10,553) Ending balance at December 31, 2025: 21,383 $ 21 $ 19,416 $ 13,320 Changes in Shareholders Equity for the three and nine months ended December 31, 2024 is summarized below (in thousands): Common Stock Additional Paid-In Capital Retained Earnings Share Amounts Beginning balance at March 31, 2024: 21,149 $ 21 $ 25,146 $ 71,555 Cancellation of restricted stock, net (548) Stock based compensation (reversal) (8,204) Dividends forfeited 1,250 Net loss 3,754 Ending balance at June 30, 2024: 20,601 $ 21 $ 16,942 $ 76,559 Issuance of restricted stock, net 62 Stock based compensation expense 573 Dividends declared 4 Net income 2,326 Ending balance at September 30, 2024: 20,663 $ 21 $ 17,515 $ 78,889 Cancellation of restricted stock, ne …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing