Good morning. Welcome to Berner's Fiscal Fourth Quarter and Full Year 2025 Earnings Conference Call. My name is Kevin, and I'll be your operator for today's call. Joining us for today's presentation are the company's CEO, Brian Gads, and CFO, Lori Kearns. Following the remarks, we'll open the call for questions. Earlier today, Berner released results for its fiscal fourth quarter and full year ended November 30, 2025. A copy of the press release is available on the company's website. Before I turn the call over to Brian Gans, Berna Technology's Chief Executive Officer, I'll read the Safe Harbor Statement. Some discussions held today include forward-looking statements. Actual results could differ materially from the statements made today. Please refer to Berna's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligation to update forward-looking statements as a result of new information, future events, or otherwise. As this call will include references to non-GAAP results, please see the press release in the Investor section of our website, ir.berna.com, for further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results. Now, I'll turn the call over to Berna's CEO, Brian Gans. Sir, please proceed.

Thank you, Kevin, and thank you, everyone, for joining us today. This morning, we issued a press release providing our financial results and business highlights for the fiscal fourth quarter and full year ended November 30, 2025. I'll start this morning by turning the call over to our CFO, Laurie Kearns, who will review our financial results for the period. Following her remarks, I'll discuss the operational highlights that drove our 35 $35.2 million in revenue and continued gap and non-gap EBITDA profitability for the fourth quarter. I'll then offer insights into our strategy moving forward before we open the call to questions from our covering research analysts. Laurie? Thank you, Brian, and good

morning, everyone. Let's review our financial results for fiscal Q4 and the full year ended November 30, 2025. Net revenue for Q4 2025 was $35.2 million, a 26% increase from the $28 million reported in the fiscal fourth quarter of 2024. The $7.2 million increase is primarily due to strong dealer and chain store performance, with direct-to-consumer and international channels contributing solid year-over-year growth. The comparison also reflects growth over a particularly strong fiscal fourth quarter of 2024 when demand was elevated around the U.S. election. For the full year 2025, net revenue totaled $118.1 million, up 38% from $85.8 million in 2024. This increase was driven by the company's expanded brand visibility, the broadening physical retail presence, and the successful launch of the Burna CL. Gross profit for Q4 2025 was $21.1 million, or 60% of net revenue, compared to $17.6 million, or 63% of net revenue for Q4 2024. The increase in gross profit was driven by the increase in overall sales. Gross margin decline was primarily due to the greater mix of dealer and chain store sales as well as the continued amortization of startup costs associated with the introduction of the CL launcher and transfer of the ammunition factory from South Africa to Fort Wayne Indiana. For the full year 2025 gross profit was 71.5 million or 61% of net revenue compared to 52.8 million or 62% of net revenue for the same period in 2024. This 18.7 million dollar increase in gross profit was due to the increase in total revenue for the year. The 1% decrease in gross profit margin was once again primarily due to the amortization of product costs associated with the introduction of the groundbreaking new CL launcher and the startup of our new ammunition facility in Fort Wayne, Indiana. Closing the South African operation is expected to save the company $1.5 million in 2026. Berna expects margin improvement in fiscal 2026 as one-time startup costs associated with the new CL launcher and the new ammunition factory are completed. Additionally, we implemented a broad-based price increase of 4% to 5% as of February 1, 2026, and at the same time, we introduced the new Berna CL XL, expanding the number of variants for the high-margin Berna CL launcher. Operating expenses for Q4 2025 were $17.1 million, compared to $13.5 million for Q4 2024. The increase reflected higher advertising expenses and marketing costs to support the rollout of more than 500 additional chain store locations in Q4. The company also increased headcount in its marketing and engineering department as part of its strategic investment in exciting new products and the new markets they will open for Berna. This investment is expected to drive significant growth starting later in 2026 and beyond. For the full year 2025, operating expenses were $59.6 million compared to $46.1 million for the same period in 2024, reflecting a 29% year-over-year increase to support our growth. The $13.5 million increase supported the revenue increase and was used to drive consumer awareness of both Burna and the less lethal product category. At the same time, the company invested in retail, marketing, and engineering. Net income for Q4 2025 was $3.4 million compared to $9.7 million for Q4 2024. This decrease was primarily driven by a 5.6 million dollar income tax benefit that occurred in the prior year period. The tax benefit arose from the release of tax valuation allowances related to net operating loss carry forwards and other tax assets. For the full year 2025, net income was $9.7 million, down from $12.8 million in the prior year period. Excluding the $5.6 million tax benefit from Q4 2024, net income improved by $2.5 million. Adjusted EBITDA, a non-GAAP metric for Q4 2025, totaled $6 million, compared to $5 million in Q4 2024. This brings adjusted EBITDA for the full year 2025 to 16.8 million compared to 11.5 million in the prior year cash cash equivalents and marketable securities at November 30th 2025 totaled 15.5 million compared to 25.7 million at November 30th 2024 inventory at November 30th 25 total $32.7 million compared to $20 million at November 30, 2024. We expect the end of the fiscal first quarter to be a low point in inventory, and then we will begin to build it back up to support the ramping demand. Subsequent to quarter end, the company entered into a $20 million credit facility with Texas Capital Bank. This is made up of a $5 million revolving line of credit and a $15 million delayed term draw. This credit facility is intended to support strategic growth initiatives, including potential acquisitions. I will now pass the call back to Brian for

additional insights into our performance. Brian? Thank you, Lori. Fiscal 2025 was truly a landmark year for Berna. We scaled Berna from a largely direct-to-consumer business model driven by conservative-leaning celebrity endorsers into a more diversified multi-platform model focused on reaching a broader audience through our nationwide dealer base and expanded advertising opportunities. For the year, we achieved a remarkable 38% revenue growth, and we finished the year up 26% in the fourth quarter, even when compared to an extremely strong 2025 Q4 that benefited from the uncertainty surrounding the election last year. The 38% year-over-year growth came on the heels of our extraordinary 100%-plus growth in 2024, demonstrating the continued momentum of Burna and the growing acceptance of less lethal personal safety solutions as a mainstream product category. The strong results we delivered in Q4 capped off what has been an exceptional year of execution across all areas of the business. Let me start by discussing our brick-and-mortar outlets, which have been one of the key drivers of our growth this past year. For 2025, Berna's brick-and-mortar sales increased from $15.2 million in fiscal year 2024 to $31 million in fiscal year 2025, an increase of more than 100%. This represents approximately half of our year-over-year revenue growth in 2025. This increase was the result of strong performance across all areas of Bern's brick-and-mortar dealer base, with our show dealers up 20.9%, our premier dealers up 40.4%, our traditional dealers, which include both chain stores and independent dealers service both directly and through distributors, up 73.4%, and Berna's company-owned retail stores up 186.5%. From a dollar standpoint, the largest contributor to our extremely strong brick-and-mortar performance was our chain store sales. As we expanded from around 200 chain store locations at the start of 2025 to approximately 900 locations by year end. Of particular importance was our partnership with Sportsman's Warehouse, which we kicked off halfway through 2025. What makes Sportsman's so special is the ability for their customers to test fire the complete range of Burnett's handheld launchers as part of our Try Before You Buy campaign. Due to the success of this initiative, Sportsman's is rolling out the Burnett program to all but a handful of their locations this year, giving virtually all of Sportsman's customers the opportunity to test fire the Burnett launchers in 2026. In addition, we will be installing our self-contained shooting pods in a number of additional Sportsman's Warehouse locations, essentially doubling in 2026 the number of stores outfitted with Burnham's custom-enclosed shooting experience. We expect the growth in our brick-and-mortar sales to continue unabated in 2026 due to three factors. First, our sales were heavily back-end loaded, as most of the locations carrying Burna were not online until the third or fourth quarters of 2025. This year, we are starting out with 900 chain stores carrying Burna. Second, we are going deeper with our current roster of dealers as they expand the range of Burna products they offer, including our brand-new Burna CL XL. Third, we are continuing to sign up new dealers as they see the success of our existing dealer base. At SHOT Show, we receive verbal commitments from large chains representing an additional 500-plus locations. For the most part, these chains are in regions of the country where our current dealers do not have significant coverage, including, most importantly, the state of Texas. Two years ago, as we looked to expand our brick-and-mortar footprint, we contemplated rolling out up to 100 company-owned stores. While the five company-owned stores that we currently operate are extremely successful, generating approximately $800,000 in annual revenue on average, setting up these stores is expensive and time-consuming. In addition, finding landlords that will allow us to offer a shooting experience has been difficult. Through our strategic partnerships with big box retailers such as Sportsman's, we have been able to scale rapidly with minimal capital investments and without the hassle of securing and building out new locations. And while our top-line margin is slightly lower, selling through our dealers rather than our company-owned stores, our net margin is similar as there is very little in the way of ongoing operating costs once these stores have been set up and personnel have been hired and trained. The strong performance across these chain stores has been encouraging, particularly during the holiday season, when both Sportsman's and Bass Pro set new weekly sales records for Berna products. In fact, a few of the individual stores are approaching Berna's company-owned stores in terms of top-line revenue. In addition to the iconic chain stores that carry Berna, There are another 600-plus brick-and-mortar locations where customers can purchase Burna launchers. These locations are comprised of independent dealers, premier dealers, show dealers, and company-owned retail stores. Altogether, they bring our total footprint to more than 1,500 retail locations where you can touch, feel, and often shoot a Burna before you buy. And, as I mentioned, we expect that number to grow to approximately 2,000 locations in 2026. With respect to our company-owned retail stores, we rolled out four new locations in the second quarter of 2025. These stores ramped quickly, delivering a strong performance for the year. Our Burna-owned and operated flagship locations in Las Vegas, Scottsdale, Nashville, Salem, and Fort Wayne are generating approximately 800,000 in annualized sales per store on average. These locations, along with our Sportsman's Warehouse and premier dealers, have demonstrated the strength of the experiential retail model and validated the economics of operating our own stores. In addition to the strong economics, these stores have also allowed us to gain valuable information about our customers. While we don't have immediate plans for the wholesale expansion of the company-owned store model, we are open to establishing additional stores in select markets where we do not have adequate representation. We see our company-owned stores as a valuable testbed for merchandising strategies, customer sales techniques, and product launches that we can then share with our premier dealer and strategic retail partners. To support Sportsman's Warehouse and our other dealers that offer a shooting experience, in 2025 we intentionally directed people from our website to our company-owned stores and to authorize Burnett dealers that offer a shooting experience. While this may be considered a cardinal sin in the world of e-commerce and likely had some impact on our Burnett.com growth rate this year, the strategy allowed us to prime the pump by giving our new dealers a kickstart. At the same time, we're able to take advantage of the substantially higher conversion rate at brick-and-mortar locations when customers have an opportunity to test-fire the burnout. As a result of this initiative and the rollout of 600 additional brick-and-mortar locations, brick-and-mortar dealers were the fastest-growing segment of our business in 2025, As I said, growing more than 100% year-over-year and climbing from 17.7% of sales in 2024 to 26.7% of sales in 2025. We expect this to continue throughout 2026 and well into 2027 as brick-and-mortar dealers should remain the fastest-growing domestic consumer segment of our business. Although still a small part of our overall business, international sales also continue to show strong momentum, generating 66% growth from the prior year. With regard to our DTC channels, both Burna.com and Amazon.com continue to show strong momentum throughout the fiscal year, growing by 18.4% despite our try-before-you-buy campaign where we intentionally sent online customers to authorized Berna dealers. Amazon continues to grow faster than Berna.com, clocking in at 46.9% year-over-year growth for the year. This was due in part to the fact that only Berna.com had a dealer locator that urged consumers to try before they buy at one of our company-owned stores or authorized dealer locations. As a result of its faster growth in 2025, Amazon now accounts for 28.6% of our DTC sales, up from 23.2% last year. As we mentioned in the past, we are somewhat agnostic about whether the sale takes place on Amazon.com and Burna.com, as our net margins are somewhat similar due to the savings in advertising, freight, credit card processing fees, and Shopify fees. Also, due to Amazon's quicker delivery times for its prime customers, we typically see a boost in Amazon sales as we get closer to Christmas because they can deliver in time for Christmas for an additional four to five days longer than we can at Berna.com. The overall increase in sales in 2025, especially in the second half of the year, can be attributed in part to the effectiveness of our AI-enabled advertising campaigns, including our now iconic We Don't Sell Bananas commercial. With these ads, we were able to easily modify our content to meet the different requirements of cable and streaming networks where we could not previously advertise. This allowed us to expand the number of channels where we could advertise, allowing for broader distribution to a wider audience. This has resulted in Burna being able to secure a Super Bowl commercial spot in the Pittsburgh market for the game this coming Sunday. This will be the first time we're able to run an ad of this prominence, and we are optimistic that we'll not only generate immediate sales but also build brand awareness. This year, the purpose is to test the effectiveness of advertising in this iconic event in a single regional market. If it proves to be cost-effective, we look to expand our Super Bowl advertising budget significantly in 2027. The Super Bowl ad is just one more example of our willingness to be creative as we look to new ways of getting our message out. Several years ago, when we were banned from advertising on Meta and Google properties, we turned to our celebrity endorsement model with an emphasis on conservative-leaning radio talk show personalities. This program continues to be an important part of our marketing strategy. Our roster has remained relatively unchanged this past year, but we are pleased to welcome back Dan Bongino. Dan stepped away from the podcast during his time with the administration, but prior to his departure, he was one of our highest performing influencers. We are excited to resume work with Dan and his team and believe his return will provide meaningful promotional impact for the brand, especially as we expect him to draw a large audience interested to hear about his time in the administration. As part of our effort to expand our marketing advertisement to broaden our consumer reach, we are exploring product placement opportunities. Berner recently was featured in an unsolicited cameo appearance on the HBO hit I Love LA, underscoring the progress that we have made over the last few years and making Bern a part of the mainstream conversation regarding personal self-defense. This has led to our decision to help finance a small, independent film that will prominently feature our launchers. Viewer of this film will see the product in use in numerous real-life scenarios. More importantly, we'll be able to show the product being used in advertisements that promote the movie, something we cannot do when we advertise the product itself. These advertisements will drive people to the website for the movie, where they will be able to watch the full trailer, listen to interviews with actors discussing the Burna and the value of non-lethal self-defense, and see the products that were used in the film. We view this initiative as a creative way to reach a new audience, leverage on-screen talent, and further expand the awareness of Burna and the less lethal product category. I'd also like to address our manufacturing initiatives this past year. To support our continued growth, we are increasing monthly production by 33%. We temporarily ramped up production early in 2025 to support the launch of the compact launcher. We are now making permanent changes and refinements to our assembly process, moving from an assembly line process to more efficient production cells that allow each employee to perform a greater number of operations. This has improved product quality and boosted morale, which should ultimately result in improved margins, margins which will be further enhanced as we scale production. As a reminder, our Fort Wayne facility has the flexibility to significantly increase output as needed by going to a second or even third shift. With the production cells, we can also easily flex production between the compact launcher, the Berna SD, and Berna LE models based on real-time demand trends. I'm also pleased to report that our new ammo factory in Fort Wayne is now the most advanced payload projectile ammunition factory in the world. We can produce both .61 caliber and .68 caliber ammunition in a lights-off, hermetically sealed clean rooms. With our new capabilities, the highly anticipated 12-gauge payload rounds will be going into production this month. As we continue to refine our proprietary robotic assembly, welding, inspecting, and packing equipment, we are seeing continued productivity gains, and for the first time since we opened the U.S. Ammo Factory, we are generating favorable manufacturing variances. I would now like to speak about our new product development. it. The release of the compact launcher in May was a pivotal moment for burner. This launcher represents the most revolutionary less lethal launcher ever made because of its small form factor and significant stopping power. Never in the history of less lethal weapons has so much stopping power been available in such a small piece of real estate. It is the only truly concealable, less lethal launcher, less lethal launcher on the market today. Anything designed for self-defense, of course, is only a value if you have it when you need it. Most altercations occur outside the home. It was for this reason that we wanted to give our customers something that they could always carry with them, and the concealability of the CL launcher has been the driving force behind its success. We are now excited to announce that we are releasing a second variant of the CL, the CLXL. This slightly larger model is still concealable. It will feature, however, a larger magazine with a 7 plus 1 shot capacity, greater overall shot capacity, and more power than the base CL. With the CLXL, customers can quickly fire 15 shots in rapid succession if necessary. This enhanced version of the CL was developed based on feedback we received from our customers. And as a result, it is no surprise that the CL XL was an overwhelming hit at SHOT Show where we debuted it just a few weeks ago. At Berna, of course, we never sleep as evidenced by the introduction of the CL in May and now the CL XL. We are constantly looking at ways to improve our launchers and our accessories to enhance the user experience towards that end i am pleased to report that just this week we assembled the first production prototype of our next generation launcher and i plan to test fire it next week it is essentially the same size as the cl but will feature a modular design that will allow us to easily install different engines in the same chassis in this way we can offer different different levels of performance of course at different price points using the same chassis in much the same way that Porsche does with its 911 model most importantly this new launcher will have far fewer parts be easier and quicker to assemble and most importantly cost around 40 percent less to produce moving to a single chassis that can accept different engines, we can reach the price point, midpoint, and high-end points of the less lethal market with a single platform. This will significantly simplify factory operations and dramatically reduce component inventory. We plan to start rolling out the price point version of this revolutionary new modular launcher towards the end of 2026, quickly followed by our mid-level and high-level variants. With regard to accessories, every so often I get a call from a Berna customer, a Berna owner, that has used their launcher in a case of self-defense, and yet they get arrested as the assailant claims that the Berna owner attacked them. If there are no witnesses, it becomes the case of he said, she said. To help combat that situation and provide Berna owners with the proof that they acted in self-defense, Berna will be bringing out a Berna cam in late Q2 or Q3 of this year. While there are already cameras that fit on the Picatinny rail of a handgun, these cameras today are very bulky and quite expensive, as they must be able to withstand the rigors of firearm recoil. Since Berna has no recoil, we can make a smaller, less expensive camera that will fit on the picatinny rail of our microcompact CL and sell for less than $200. When a burnt owner needs to defend themselves, they can switch on the camera and capture the encounter on both video and audio if they so desire. If they are pointing their weapon at the ground, the camera will show that, allowing them to refute someone that claims he pointed his weapon at me. We introduced the product to our dealer council members last month, a meeting that I attended, and we received overwhelming and enthusiastic support. We have high hopes for this accessory when we introduce it in late Q2 or early Q3 as we continually look to enhance the user experience. Along the same line, I'm extremely excited about our new subscription-based products that should be the next evolution of Bernard. Regarding the fiscal outlook, as we look ahead to fiscal 2026, we are confident in our ability to continue to deliver strong top-line growth while expanding profitability. Our balance sheet is strong with cash increasing 6.5 million from 9 million at the end of Q3 to 15.5 million at the end of Q4, despite spending over a million dollars buying back our own stock. We expect the cash balance to continue to grow throughout 2026 as sales are projected to increase year over year each quarter and as we work through the inventory that we built up in preparation of the CO launch that occurred halfway through 2025. In addition to our strong and growing cash balance, we just announced a new $20 million credit facility with Texas Capital Bank. $15 million is earmarked specifically for acquisitions, and $5 million is for working capital, should the need arise. While I do not have anything on the acquisition front that I can announce at this time, we are continually looking for strategic opportunities that would help us further our goals with regards to the development of new products, new markets, and new technologies. In conclusion, many of you are familiar with the Rule of 40, whereby growth companies should maintain growth rates and EBITDA margins that when added together exceed 40. It is understood that as companies become larger, growth rates tend to moderate while at the same time EBITDA margins expand. We have been well above the 40 threshold the last couple of years and we expect to be well above this threshold in 2026 as we continue to grow revenues while simultaneously expanding our margins. We exited fiscal 2025 with tremendous momentum, highlighted by the strong demand we saw on Black Friday and Cyber Monday. The timing of these events, falling over the final weekend of fiscal 2025 and into the start of 2026, drove high order volumes and provided a good start for Q1 2026. Building on this strong start, there are several encouraging catalysts that bolster our outlook for fiscal 2026, including our expanded retail footprint as we start the year with more than 1,500 brick-and-mortar locations carrying Burna, strong post-holiday dealer restocking orders, increasing brand awareness driven by both more mainstream advertising placements and new creative ways of reaching the market, and the continued development of new products, including the BurnaCam, our new modular launcher, as well as subscription-based devices as we plan for another strong year. From a profitability standpoint, we are laser-focused on expanding gross margins in 2026. We expect to be able to increase margins by several percentage points due to, one, a more favorable product mix this year as the higher margin compact launcher represents a growing share of our launcher sales. Two, continued manufacturing efficiencies and the economies of scale that will reduce manufacturing costs. And three, the price increases that just went into effect a few days ago. On the operating expense side, while we continue to invest in marketing and selectively add headcount to support new initiatives, we expect to see meaningful leverage as our operating costs are projected to grow at a significantly slower rate than our revenue. We remain in the very early innings of penetrating what we believe is a massive market. Today, there are more than 775,000 Burna launchers in customers' hands, and we believe that the less lethal personal safety category is becoming more universally accepted, and Burna is becoming widely recognized as the leader in the less lethal personal self-defense space. Harvard Business School and Stanford released a study in October that looked at the attitudes of gun owners. Interestingly, they found that fully 43% of gun owners preferred a weapon that would incapacitate and not kill. As such, the burner was mentioned numerous times throughout the study, and we were the only less lethal company to be mentioned. This strong desire for non-lethal options, coupled with Bernard's growing recognition, should allow Bernard to benefit as the less lethal market continues to expand. As we continue to normalize the category, expand our product offerings across multiple price points, and build out a recurring revenue model, we see a clear and compelling path to sustained multi-year growth. In closing, fiscal 2025 was truly a transformational year for Burna. We achieved record revenues, expanded our retail presence to more than 1,500 stores nationwide, successfully released the compact launcher, brought ammunition production onshore, and laid the foundation for new devices that we believe will significantly augment Burna's growth in the years to come. I want to thank our team for their exceptional execution, our retail partners for their continued support, our endorsers and influencers for helping us reach new audience, and most importantly, our customers who have embraced Burna as their personal safety solution of choice. We appreciate your continued support and look forward to the year ahead. Now, before I open this up to Q&A, I want to address a question that I've been asked recently regarding my personal plans. As many of you know, my contract with Berna is up later this year, and I turn 68 next month. First, let me assure everyone that I plan to remain involved for as long as the company needs me. As a significant shareholder, I have and will continue to have for some time a substantial personal and financial stake in the future success of burnout, and I remain 100% committed to the future success of the company. At the same time, the board and I are conducting a process to identify my successor. I am pleased to report that we have made good progress, and as soon as we have something to announce, you will hear it directly from me. I want to emphasize that any future transition, when it occurs, will be smooth and seamless, as I will do whatever is necessary to ensure the company's ongoing success. 2025 was a great year for the company, and I'm doing everything I can to make sure that we keep up the momentum and continue building on the strong foundation we created as we execute our plan and work to make Berner the undisputed world leader in the less lethal space. With that, I am now prepared to take questions from our covering analysts.

Thank you. The company will now be taking questions from the sell-side analysts. If you'd like to be placed in the question queue, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. If you'd like to move your question from the queue, please press star 2. Once again, that's star 1 to be placed in the question queue. Our first question today is coming from Jeremy Hamblin from Craig Hallam Capital. Your line is now live.

Thank you, and congrats on really strong results and a great year in 2025. Turning to 2026, I thought I might start with, you know, the new CL XL launcher and get a sense for, you know, the price point that you're expecting, you know, increased, you know, shock capability, can see the demand for that, but also just understand how does the margin profile for the CLXL compare to, let's say, the CL and your other launcher products?

That's a great question, Jeremy, and thank you very much for your kind remarks. The CL XL has about a five-eighths of an inch extension on it that allows it to accept a 12-gram CO2, which is much more readily available and also provides for greater shock capacity. It also accepts a 7 plus 1 round magazine. Now, that magazine will fit in any CL. So existing owners can buy this 7-plus-1 magazine, and we think that there will be a strong aftermarket demand. In fact, I think most CL owners will probably buy at least one 7-plus-1 round magazine. With this 7-plus-1 round magazine and the 12-gram CO2, you would be able to quickly fire off 15 rounds with two magazines. It will also, because it has a barrel that's five-eighths of an inch longer, propel the projectile at 20 feet per second faster. This will give the projectile more force than the current CL. So for, you know, a launcher that has, you know, a five-eighths of an inch extension on the end of the barrel, you know, all you're paying for is the boost adapter, the slightly longer barrel, which is measured in pennies, and we're creating a 7 plus 1 magazine rather than the 5 round magazine. As a result, there is not a significant cost difference between these two launchers. We plan to introduce this at $579.99, so $30 more than the current CL. As such, the margins will be essentially identical to the current CL. But it is a strong value proposition for the consumer, because if they were to buy the Boost and the extra magazine separately, that would be an $80 increase.

Understood. Okay, and then in terms of, you know, other new products that you're launching this year with the connected devices, can you give us a sense for, you know, how you're expecting to price the connected device products and what you expect the kind of the cost uptake of that initiative to be? and whether or not the potential to look at, you know, acquisition candidates is more or less related to connected devices or some other area of interest?

Yeah, first let me just say that we're really not at the stage where we can talk about the pricing of these products. You know, we are certainly looking at products where maybe we give away the product for free, you know, if there is subscription-based revenue attached to it, but that's premature. In terms of the build versus buy model, I mean, that's something that companies deal with all the time. You know, we have a history of buying. You know, we bought Fox Labs when we wanted to get into the pepper spray business. We bought Mission Less Lethal when we wanted to get into the long gun segment of the market. But we have not made any decisions on build versus buy. We are moving down the development path of these launchers internally. But, you know, if the right strategic opportunity came up, we would certainly consider that.

And then just last one for me, you mentioned really strong reorder rates here. At the start of Q1, you know, you guys are, you know, in the last month of the quarter, and it sounds like you're expecting some pretty solid growth here in the quarter. Typically, there's a seasonality at play in which Q1 is not nearly as strong as Q4. Can we assume that that's likely to be the case again, despite, you know, the clear increase in the number of retail doors that you're going to be selling through?

Yeah, a Q1 is clearly a very soft quarter as people are kind of spent from Christmas. And you're absolutely right. We will have a Q1 that, well, well above last year's Q1 is well below Q4. So it will come in, you know, between Q4 and, you know, below Q4 and above last year's Q1.

Great. Thanks for taking my questions.

I'll hop out of the queue. Thanks so much, Jeremy. Thank you. Next question is coming from Jeff Van Sindarin from B-Riley Security. Your line is now live.

Hi, good morning, everyone, and let me add my congratulations. I guess if we could maybe just kind of expand on, I know you gave us some comments on Q1, but you also gave some comments on gross margin. Maybe just any more color you can give us on what you expect for gross margin trend over the next couple of quarters. And then what do you think is a good range to contemplate for revenue growth for 2026? And then how would you expect EBITDA margins to develop this year considering gross margin expansion and OPEX leverage? I know there's a lot of merit to unpack, but. Yeah, you know what? Since this is such a

difficult question I'm going to hand it over to Laurie and let her answer it.

Hi Jess, we'll start with the gross margin. So I think you know last quarter we talked about that we expected our gross margin you know near the end of 2026 to get up to the 63 to 65 percent range and I think we're still looking at that range. Obviously we'll kind of incrementally grow that throughout the year you know we ended you know the fourth quarter around 60 percent so we expect to see that kind of continually grow. Obviously the price increase helps us and then you know the channel mix is built into some of that. So we know we have the channel mix kind of as a headwind against us, the price increase as a tailwind, but then obviously overcoming some of these manufacturing inefficiencies that we had here last year are helping us go forward. So I think we're still expecting the same range with an increase throughout the year. As far as, I mean, we're not giving revenue guidance, so I'll just say we're not doing that. We do expect to stay in growth mode. We expect, you know, as we've said all along, as we increase our revenue, we expect to expand our EBITDA margins. You know, we continually look for that positive leverage. So you saw this here, right? I mean, our adjusted EBITDA is growing at a faster paced than our revenue is growing. And that's what we want to continue to see going forward

and that we plan to see. Yeah, and just, I mean, as Laurie said, we're not giving guidance. The one little bit of guidance I will give is that, as I said, you know, if you look at our growth rates and adjusted EBITDA margins, we're well above 40. We suspect, project, plan that they'll be well about 4D this year as well.

Okay, that's helpful. Appreciate that. And then is there anything more you could tell us about the modular product plans? And then also, is there a recurring component that might be associated with the CAM product that you're introducing?

First off, the modular product we are extraordinarily excited about. Let me just say that our 61 caliber Barta CL has been extremely popular, and the popularity is growing. Although it is not the majority of our launchers in units, it is in terms of dollars. And if you look at the locations where you can test fire the launcher, the CL is by far our biggest seller. So when people have a chance to actually hold it and fire it, the CL is extremely important. What we've demonstrated is that we can go to a narrower launcher with a 61-caliber round and still be extremely effective. The reason 68-caliber is so popular is this industry started with the conversion of paintball guns. But honestly, you know, 61-caliber makes much more sense. It allows us to create a concealable launcher and still have sufficient stopping power and payload to take down an assailant. Our goal is to come up with a range of the entire range based on our 61 caliber platform. And what we've been working on for the last year or so is a launcher where we... Ladies and gentlemen, reconnecting the speaker line. Please proceed. Okay. I'm sorry. I didn't realize that the line had cut out. Jeff, where did I lose you? Or where did you lose me?

No, you were speaking about the range of products based on the 61-caliber platform, and then you cut off.

Yeah, so, look, what I said is Lockheed and the accounting team are very excited about it because with a single chassis, we will have far fewer components. A lot of these components will be able to be used across the entire platform. So we will have a much simpler inventory, smaller inventory, And the cost, both the BOM, the bill of materials, and the time it takes to build the launcher will be significantly lower. So we expect to be able to see significant savings in the cost of these launchers and significant reduction in the inventory that we need to carry. As I said, the first fireable prototype version is being built this week. I expect to fire it with the team. Next week, I'm sure we'll go through a number of iterations, but we are very confident that we'll be able to release this launcher before the end of 2026. And then I think, you know, in relatively rapid succession, we would come out with the midpoint and high end of the market. But our first goal is to come out with something that's less expensive so that we can address the price point end of the market. while maintaining or, frankly, improving margins.

Did you say, somehow, I thought you said something about a 40% reduction in cost to manufacturing? Did I miss that?

No, you got that absolutely correct. So far, the BOM that we have today is 40% less than the BOM for our current launchers, which are all relatively similar. So, yeah, it's a significant savings. We don't know the exact savings in labor, but we know that it's a much simpler design to build. So we expect to see both a savings in labor and an improvement in first-pass yield. And the improvement in first-pass yield will result in, one, better quality, but, two, more efficiency in terms of producing the launchers. There will be fewer launchers that have to go through a rework.

Great to hear. Thanks for taking my questions. I'll take the rest offline.

Thank you. Thank you. Next question is from Matt Coranda from Roth Capital Partners. Your line is now live.

Several have been asked, but I guess maybe we'll focus on the retail expansion for a moment here. It just sounds like you're focused on both deepening the relationships with existing chain stores that you have, but you also mentioned another, I think, 500 locations, some coming in Texas. Just wanted to hear a little bit about how you think about the contribution of growth in that channel between existing and new partners and how that translates to growth this year. All right. Laura, can you handle that?

Yeah. Hi, Matt. So I think that we're expecting both. We're expecting both this expansion with more chain stores, but also really deepening the chain stores that we have. So as we said, we started the year at just over 200 chain stores. We ended at 900. So the first half of the year, we didn't have most of those stores last year. So we'll see expansion with that. I think also working with all of these retail partners with the new products, getting kind of product and inventory optimized, and making sure that they have the support that they need, whether that be retail stands, you know, whatever information that they need to continue to help with the sell-throughs. So, I think we've got both of those factors going into 2026.

Okay, that makes sense. I wanted to hear a little bit more about the rollout of the camera or connected product that you mentioned and have discussed a little bit. Sounds like potentially mid-year is sort of the timing. Do you need to acquire anything to launch mid-year, or can you do this organically entirely? And then also, I guess maybe, Brian, if you could talk about how this could open up incremental advertising channels for you. I know that you're limited in sort of the channels that you can advertise the launchers on, but would the connected device open

up a new channel for you? First, with regard to the cameras, this is something we've been working on for some period of time. This, of course, will not be built in-house. This is something that we have been commissioning with a third-party vendor specifically designed for the Berna. As I said, there are cameras available today that work with firearms, but they're much bulkier, bigger, bulkier and much, much more expensive. Again, I feel strongly that this will come out either late Q2, May, or sometime June, July. This will not be a connected device. This will be just a camera where you can record something and download it if you want to use it. So we have much greater visibility on that. With regard to connected devices, this is a more complicated area. This is an area that we've not been involved in. The technology is new for us. And although we've made great progress, and I'm hopeful that we'll see this as a contribution for 26, it's premature for us to put a date on when we would be able to release that device. Now, having said that, You're absolutely right. Both the camera and any device, or frankly, any accessory, we can advertise everywhere. So, you know, I'm sure you've all heard the commercial for Life Alert, I've fallen and I can't get up. So these type of devices or cameras, we can advertise, you know, in places we could not advertise the Burna. And I think that it is really important as we look for creative ways to get the word out that we can find new products that will expand our advertising. The other thing that's somewhat interesting about it is that it will allow us to go after the market for consumers that might not buy a weapon and get them into the ecosystem. system. So, you know, we're hopeful that if we could provide something to somebody that wants a panic button, then, you know, maybe down the road, we could sell them a burner. So, yeah, it's something that the team is working on. It's an important strategy for us, but it's premature for us to put a particular date as to when it's going to come out. Okay. Maybe this last one on

the modular launcher uh just wanted to hear a little bit about how that slots in with the existing assortment it sounds like there's probably a lower price point uh one that could could kind of fill out the the existing assortment could you also manufacture the the sdle and cl on that exit like on that chassis on that platform is that how we should be thinking about it as it may replace the the existing assortment over time or is it really just an entirely new platform

It's both. I think that there are going to be certain customers that want the 68 caliber launchers. The rounds have 27% more payload. Just as you see that although 9mm is the most popular handgun, there are still people that want a .44 or a .45. So we would not have any plans to discontinue these launchers, but we do believe that they will be, you know, alongside the launchers. There will be a launcher that's 61 caliber that is priced at relatively the same level as the SD. There'll be a launcher that is 61 caliber that will be priced relatively similar to the LE. And then ultimately, we'll have to make a decision on the CL because that's already a 61 caliber. That is potentially the only launcher where the new platform may be the next gen of the launcher. That said, the CL just came out recently. It's extremely popular. So I think that this still has, you know, a couple-year run ahead of it before we would replace it.

Okay, very clear.

But we do think that these things will augment it. They'll be incremental to our existing line.

Our next question is coming from John Hickner from Lannenberg. Follow me on your line. It's now live.

Hey, can you hear me okay?

We can, John.

Okay. So, hey, congratulations. Nice quarter. Nice year. Can you elaborate a little bit more on this? Most of my questions have all been answered, of course. But talk about the movie a little bit. When do you expect this to come out? Do you have a working title? Is it direct-to-TV?

Okay. So, with regard to the movie, it is expected to come out later this year that said we're not that interested in the success of the film itself we are more interested in the advertising capabilities it provides to us now we do have 1.9 million email subscribers and we will certainly you know push them to see the movie the goal would be for it to be released in a small theatrical release maybe 400 theaters but primarily on one of the streaming services but honestly john we're not really involved in that that's the producer of the the film what we have is the bts the behind the scenes rights so whenever they're filming a scene that involves the burn-up we have our own people there and they're taking video of these stars using the Burna. We then get an opportunity to interview them, and those interviews will be on the movie site. So again, we'll be able to advertise, send people to the movie site where they'll hear about people using the Burna, their experience, their thoughts on less lethal, and there'll also be an ability to see the weapons that were used in the film and then to go to the Burna website. So it is really more of an advertising platform for us. That said, I hope the movie does very, very well.

Okay. Okay. Is there a title?

There's only a working title. And honestly, I can't share that.

Well, the rest of my questions, I'll – oh, one more. You said that you repeated the 40% kind of gross margin or bill of gross margin improvement, but you said something about – oh, I'll never mind. So, sorry.

Yeah.

I'll just take the rest of my questions offline, okay?

Thanks, John.

Thank you. We reached the end of our question and answer session. I'd like to turn the floor back over to Mr. Gantz for any further closing comments.

Yeah, I just want to thank everyone. You know, we really appreciate your continued interest in Berna. And, again, I want to thank our investors, our customers, our vendors, our partners, and very importantly, our employees. This journey is only possible because of their tremendous support and their firm belief in our mission of saving lives. So thank you very much.

Thank you for joining us today for Berna's fiscal fourth quarter and full year 2025 conference call. You may now disconnect.