NPK 10-Q
National Presto Industries Inc (NPK)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
FORM
______________________________
Commission file number
______________________________
NATIONAL PRESTO INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
| | |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| |
|
| |
|
| | |
| (Address of principal executive offices) | (Zip Code) |
(Registrant’s telephone number, including area code)
______________________________
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| | | |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| |
|
|
|
|
|
|
|
| Large accelerated filer | ☐ | | ☒ | Non-accelerated filer | ☐ | Smaller reporting company | |
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
There were
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
July 5, 2026 and December 31, 2025
(Dollars in thousands)
| July 5, 2026 (Unaudited) | December 31, 2025 | |||||||||||||||
| ASSETS | ||||||||||||||||
| CURRENT ASSETS: | ||||||||||||||||
| Cash and cash equivalents | $ | $ | ||||||||||||||
| Marketable securities | ||||||||||||||||
| Accounts receivable, net | ||||||||||||||||
| Inventories: | ||||||||||||||||
| Finished goods | $ | $ | ||||||||||||||
| Work in process | | |||||||||||||||
| Raw materials | ||||||||||||||||
| Income tax receivable | ||||||||||||||||
| Notes receivable, current | ||||||||||||||||
| Other current assets | ||||||||||||||||
| Total current assets | ||||||||||||||||
| PROPERTY, PLANT AND EQUIPMENT | $ | $ | ||||||||||||||
| Less allowance for depreciation | ||||||||||||||||
| GOODWILL | ||||||||||||||||
| INTANGIBLE ASSETS, net | ||||||||||||||||
| RIGHT-OF-USE LEASE ASSETS | ||||||||||||||||
| DEFERRED INCOME TAXES | ||||||||||||||||
| $ | $ | |||||||||||||||
| The accompanying notes are an integral part of the condensed consolidated financial statements. |
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
July 5, 2026 and December 31, 2025
(Dollars in thousands)
| July 5, 2026 (Unaudited) | December 31, 2025 | |||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||
| LIABILITIES | ||||||||||||||||
| CURRENT LIABILITIES: | ||||||||||||||||
| Accounts payable | $ | $ | ||||||||||||||
| Line of credit | ||||||||||||||||
| Federal and state income taxes | ||||||||||||||||
| Lease liabilities | ||||||||||||||||
| Accrued liabilities | ||||||||||||||||
| Total current liabilities | ||||||||||||||||
| LEASE LIABILITIES - NON-CURRENT | ||||||||||||||||
| FEDERAL AND STATE INCOME TAXES - NON-CURRENT | ||||||||||||||||
| Total liabilities | ||||||||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||||||
| Common stock, $ par value: | ||||||||||||||||
| Authorized: shares | ||||||||||||||||
| Issued: shares | $ | $ | ||||||||||||||
| Paid-in capital | ||||||||||||||||
| Retained earnings | ||||||||||||||||
| Accumulated other comprehensive income | ||||||||||||||||
| Treasury stock, at cost | ||||||||||||||||
| Total stockholders' equity | ||||||||||||||||
| $ | $ | |||||||||||||||
| The accompanying notes are an integral part of the condensed consolidated financial statements. |
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three and Six Months Ended July 5, 2026 and June 29, 2025
(Unaudited)
(In thousands except per share data)
| Three Months Ended |
Six Months Ended |
|||||||||||||||
| 2026 |
2025 |
2026 |
2025 |
|||||||||||||
| Net sales |
$ |
$ |
$ |
$ |
||||||||||||
| Cost of sales |
|
|
|
|
||||||||||||
| Gross profit |
|
|
|
|
||||||||||||
| Selling and general expenses |
|
|
|
|
||||||||||||
| (Gain) on sale of property, plant and equipment |
- |
- |
|
- |
||||||||||||
| Impairment of vendor deposit |
- |
|
- |
|
||||||||||||
| Intangibles amortization |
|
|
|
|
||||||||||||
| Operating profit |
|
|
|
|
||||||||||||
| Other income |
|
|
|
|
||||||||||||
| Earnings before provision for income taxes |
|
|
|
|
||||||||||||
| Provision for income taxes |
|
|
|
|
||||||||||||
| Net earnings |
$ |
$ |
$ |
$ |
||||||||||||
| Weighted average shares outstanding: |
||||||||||||||||
| Basic and diluted |
|
|
|
|
||||||||||||
| Net Earnings per share: |
||||||||||||||||
| Basic and diluted |
$ |
$ |
$ |
$ |
||||||||||||
| Comprehensive income: |
||||||||||||||||
| Net earnings |
$ |
$ |
$ |
$ |
||||||||||||
| Other comprehensive income, net of tax: |
||||||||||||||||
| Unrealized loss on available-for-sale securities |
|
|
|
|
||||||||||||
| Comprehensive income |
$ |
$ |
$ |
$ |
||||||||||||
| Cash dividends declared and paid per common share |
$ |
$ |
$ |
$ |
||||||||||||
| The accompanying notes are an integral part of the condensed consolidated financial statements. |
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended July 5, 2026 and June 29, 2025
(Unaudited)
(Dollars in thousands)
| 2026 |
2025 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net earnings |
$ | $ | ||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||
| Provision for depreciation |
||||||||
| Intangibles amortization |
||||||||
| Non-cash retirement plan expense |
||||||||
| (Gain) on sale of property, plant and equipment |
( |
) | ||||||
| Impairment of vendor deposit |
||||||||
| Other |
||||||||
| Changes in operating accounts: |
||||||||
| Accounts receivable, net |
||||||||
| Inventories |
( |
) | ( |
) | ||||
| Other assets and current assets |
( |
) | ( |
) | ||||
| Accounts payable and accrued liabilities |
||||||||
| Federal and state income taxes |
( |
) | ||||||
| Net cash provided by operating activities |
||||||||
| Cash flows from investing activities: |
||||||||
| Marketable securities - maturities and sales |
||||||||
| Proceeds from note receivable |
||||||||
| Proceeds from sale of property, plant and equipment |
||||||||
| Purchase of property, plant and equipment |
( |
) | ( |
) | ||||
| Net cash used in investing activities |
( |
) | ( |
) | ||||
| Cash flows from financing activities: |
||||||||
| Proceeds from line of credit |
||||||||
| Payments on line of credit |
( |
) | ( |
) | ||||
| Dividends paid |
( |
) | ( |
) | ||||
| Proceeds from sale of treasury stock |
||||||||
| Net cash provided by (used in) financing activities |
( |
) | ||||||
| Net increase (decrease) in cash and cash equivalents |
( |
) | ||||||
| Cash and cash equivalents at beginning of period |
||||||||
| Cash and cash equivalents at end of period |
$ | $ | ||||||
| Supplemental disclosures of cash flow information: |
||||||||
| Cash paid during the year for: |
||||||||
| Interest |
$ | $ | ||||||
| The accompanying notes are an integral part of the condensed consolidated financial statements. |
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Three and Six Months Ended July 5, 2026 and June 29, 2025
(Unaudited)
(In thousands except per share data)
| Shares of Common Stock Outstanding Net of Treasury Shares | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | ||||||||||||||||||||||
| Balance at March 30, 2025 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||||||
| Unrealized loss on available-for-sale securities, net of tax | ( | ) | ( | ) | ||||||||||||||||||||||||
| Other | - | - | ||||||||||||||||||||||||||
| Balance June 29, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Balance April 5, 2026 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||||||
| Unrealized loss on available-for-sale securities, net of tax | ( | ) | ( | ) | ||||||||||||||||||||||||
| Other | 3 | 5 | ( | ) | ||||||||||||||||||||||||
| Balance July 5, 2026 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Shares of Common Stock Outstanding Net of Treasury Shares | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | ||||||||||||||||||||||
| Balance December 31, 2024 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||||||
| Unrealized loss on available-for-sale securities, net of tax | ( | ) | ( | ) | ||||||||||||||||||||||||
| Dividends paid March 17, $ per share regular | ( | ) | ( | ) | ||||||||||||||||||||||||
| Other | 0 | 1 | ||||||||||||||||||||||||||
| Balance June 29, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Balance December 31, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
| Net earnings | ||||||||||||||||||||||||||||
| Unrealized loss on available-for-sale securities, net of tax | ( | ) | ( | ) | ||||||||||||||||||||||||
| Dividends paid March 20, $ per share regular | ( | ) | ( | ) | ||||||||||||||||||||||||
| Other | 13 | |||||||||||||||||||||||||||
| Balance July 5, 2026 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE A – BASIS OF PRESENTATION
The condensed consolidated interim financial statements included herein are unaudited and have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management of the Company, the consolidated interim financial statements reflect all of the adjustments which were of a normal recurring nature necessary for a fair presentation of the results of the interim periods. The condensed consolidated balance sheet as of December 31, 2025 is summarized from audited consolidated financial statements, but does not include all the disclosures contained therein and should be read in conjunction with the 2025 Annual Report on Form 10-K. Interim results for the period are not indicative of those for the year.
NOTE B – REVENUES
The Company’s revenues are derived from contracts and programs that are typically completed within
The Company's contracts in the Defense segment are primarily with the U.S. Department of Defense (DOD) and DOD prime contractors. As a consequence, this segment's business essentially depends on the product needs and governmental funding of the DOD. Substantially all of the work performed by the Defense segment directly or indirectly for the DOD is performed on a fixed-price basis. Under fixed-price contracts, the price paid to the contractor is usually awarded based on competition at the outset of the contract and therefore, with the exception of limited escalation provisions on specific materials, is generally not subject to any adjustments reflecting the actual costs incurred by the contractor.
For the Housewares/Small Appliance and Safety segments, revenue is generally recognized as the completed, ordered product is shipped to the customer from the Company’s warehouses. For the situations in which revenue should be recognized when product is received by the customer, the Company adjusts revenue accordingly. For the Defense segment, revenue is primarily recognized when the customer has legal title and formally documents that it has accepted the products. There are also certain termination clauses in Defense segment contracts that may give rise to an over-time pattern of recognition of revenue in the absence of alternative use of the product.
The timing of revenue recognition, billings, and cash collections results in billed accounts receivable, and customer advances and deposits (contract liabilities) on the Company’s Condensed Consolidated Balance Sheets. For the Defense segment, the Company occasionally receives advances or deposits from certain customers before revenue is recognized, resulting in contract liabilities. These advances or deposits do not represent a significant financing component. As of July 5, 2026 and December 31, 2025, $
NOTE C – EARNINGS PER SHARE
Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share also includes the dilutive effect of additional potential common shares issuable. Unvested stock awards, which contain non-forfeitable rights to dividends whether paid or unpaid (“participating securities”), are included in the number of shares outstanding for both basic and diluted earnings per share calculations.
NOTE D – BUSINESS SEGMENTS
The Company operates in business segments. The Company identifies its segments based on the Company's organization structure, which is primarily by principal products and is the way in which the Company’s Chief Operating Decision Maker (CODM), the Company’s CEO, makes operating decisions, assesses financial performance, and allocates resources. The principal product groups are Housewares/Small Appliances, Defense, and Safety. Sales for all segments are primarily to customers in North America.
The Housewares/Small Appliances segment designs, markets, and distributes housewares and small appliances. The housewares/small appliance products are sold primarily in the United States and Canada directly to retail outlets and also through independent distributors. The Company primarily sources its Housewares/Small Appliances products from non-affiliated suppliers located in the Orient. Sales are seasonal, with the normal peak sales period occurring in the fourth quarter of the year prior to and during the holiday season.
The Defense segment was started in 2001 with the acquisition of AMTEC Corporation, which manufactures precision mechanical and electromechanical assemblies for the U.S. Government and prime contractors. During 2005, and again during 2010, AMTEC Corporation was one of prime contractors selected by the Army to supply all requirements for the 40mm family of practice and tactical ammunition cartridges for a period of years. In 2016, AMTEC was awarded a one-year contract, and in 2017 and 2022, it was awarded third and fourth five-year contracts, respectively as the sole prime contractor. AMTEC's manufacturing plant is located in Janesville, Wisconsin. Since the inception of the Defense segment in 2001, the Company has expanded the segment by making several strategic business acquisitions, and has additional facilities located in East Camden, Arkansas; Antigo, Wisconsin; Clear Lake, South Dakota, and Marshall, Texas. During 2003, the segment was expanded with the acquisition of Spectra Technologies, LLC of East Camden, Arkansas. This facility performs Load, Assemble, and Pack (LAP) operations on ordnance-related products for the U.S. Government and prime contractors. During 2006, the segment was expanded again with the acquisition of certain assets of Amron, LLC of Antigo, Wisconsin, which primarily manufactures cartridge cases used in medium caliber (20-50mm) ammunition. During 2014, the Company continued the expansion of the Defense segment with the purchase of substantially all of the assets of Chemring Energetic Devices, Inc. located in Clear Lake, South Dakota, and all of the real property owned by Technical Ordnance Realty, LLC. The Clear Lake facility manufactures detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials. During 2022, the Company again expanded the Defense segment by acquiring the equity interests of Woodlawn Manufacturing, Ltd. Woodlawn Manufacturing, Ltd, is a high volume manufacturer of precision metal parts and assemblies primarily for the defense and aerospace industry. The Defense segment’s collection of facilities enables the Company to deliver in virtually all aspects of the manufacture of medium caliber training and tactical rounds. Those aspects include the fuze, the detonator, the metal parts (including the cartridge case), and load, assemble and pack of the final round.
The Safety segment was started in 2019 with the acquisition of the assets of OneEvent Technologies, Inc., a business located in Mount Horeb, Wisconsin which focused on protection for buildings, homes, assets, and occupants using a cloud-based learning and an analytics engine that utilizes data from a series of sensing devices to predict, alert, and prevent. Upon purchase, it was combined with Rusoh, Inc. which designed and marketed fire extinguishers. Prior to 2019, Rusoh Inc. had been included in the Company’s Housewares/Small Appliances segment. On July 29, 2022, certain assets were acquired and liabilities were assumed of Knox Safety, Inc., a startup business formed in 2019 with operations in Illinois and North Carolina. Knox Safety designed and sold carbon monoxide detectors for residential use. Subsequent to the acquisition, the acquiring entity legally adopted the corporate name Rely Innovations, Inc. and was added to the segment. Since its acquisition, the Company has introduced smoke detectors and fire extinguishers under the Rely name. To focus the direction of the segment’s business, the Company divested the stock of Rusoh, Inc. on November 14, 2023 and certain assets of OneEvent related to its refrigeration monitoring business on July 31, 2025. The OneEvent intellectual property, however, has been retained.
The Company manages and assesses the performance of its reportable segments by their gross profit and operating profit. As part of the CODM’s review of segment level performance, the CODM reviews these measures of income of each reportable segment, which drives the evaluation of the performance of the Company’s reportable segments and allocation of resources to those segments. The significant segment expense categories included in the table below augment the Company’s understanding of operating results.
In the following summary, operating profit represents earnings before other income and income taxes. The Company's segments operate discretely from each other with no shared owned or leased manufacturing facilities. Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliances segment for all periods presented.
| (in thousands) | ||||||||||||||||
| Housewares / Small Appliances | Defense | Safety | Total | |||||||||||||
| Three months ended July 5, 2026 | ||||||||||||||||
| External net sales | $ | $ | $ | $ | ||||||||||||
| Cost of sales | ||||||||||||||||
| Gross profit (loss) | ( | ) | ||||||||||||||
| Selling and general expenses (1) | ||||||||||||||||
| Depreciation and amortization | ||||||||||||||||
| Operating profit (loss) | ( | ) | ||||||||||||||
| Total assets | ||||||||||||||||
| Capital expenditures | ||||||||||||||||
| Three months ended June 29, 2025 | ||||||||||||||||
| External net sales | $ | $ | $ | $ | ||||||||||||
| Cost of sales | ||||||||||||||||
| Gross profit (loss) | ( | ) | ||||||||||||||
| Selling and general expenses (1) | ||||||||||||||||
| Depreciation and amortization | ||||||||||||||||
| Operating profit (loss) | ( | ) | ( | ) | ||||||||||||
| Total assets | ||||||||||||||||
| Capital expenditures | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Housewares / Small Appliances | Defense | Safety | Total | |||||||||||||
| Six Months Ended July 5, 2026 | ||||||||||||||||
| External net sales | $ | $ | $ | $ | ||||||||||||
| Cost of sales | ||||||||||||||||
| Gross profit (loss) | ( | ) | ||||||||||||||
| Selling and general expenses (1) | ||||||||||||||||
| Depreciation and amortization | ||||||||||||||||
| Operating profit (loss) | ( | ) | ( | ) | ||||||||||||
| Total assets | ||||||||||||||||
| Capital expenditures | ||||||||||||||||
| Six Months Ended June 29, 2025 | ||||||||||||||||
| External net sales | $ | $ | $ | $ | ||||||||||||
| Cost of sales | ||||||||||||||||
| Gross profit (loss) | ( | ) | ||||||||||||||
| Selling and general expenses (1) | ||||||||||||||||
| Depreciation and amortization | ||||||||||||||||
| Operating profit (loss) | ( | ) | ( | ) | ||||||||||||
| Total assets | ||||||||||||||||
| Capital expenditures | ||||||||||||||||
| (1) Excludes depreciation and amortization | ||||||||||||||||
NOTE E - FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company utilizes the methods of fair value as described in FASB ASC 820, Fair Value Measurements and Disclosures, to value its financial assets and liabilities. ASC 820 utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The carrying amounts for cash and cash equivalents, accounts receivable, notes receivable, accounts payable, line of credit, and accrued liabilities approximate fair value due to the immediate or short-term maturity of these financial instruments. See Note F for fair value information on marketable securities.
NOTE F - CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES
The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents. Cash equivalents include money market funds. The Company deposits its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits. Money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820). The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at estimated fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity.
At July 5, 2026 and December 31, 2025, cost for marketable securities was determined using the specific identification method. A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the periods presented is shown in the following table. All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable.
| (In Thousands) | ||||||||||||||||
| MARKETABLE SECURITIES | ||||||||||||||||
| Amortized Cost | Fair Value | Gross Unrealized Gains | Gross Unrealized Losses | |||||||||||||
| July 5, 2026 | ||||||||||||||||
| Certificates of Deposit | $ | $ | $ | |||||||||||||
| Total Marketable Securities | $ | $ | $ | $ | ||||||||||||
| December 31, 2025 | ||||||||||||||||
| Certificates of Deposit | ||||||||||||||||
| Total Marketable Securities | $ | $ | $ | $ | ||||||||||||
Proceeds from maturities and sales of available-for-sale securities totaled $
The contractual maturities of the marketable securities held at July 5, 2026 are as follows: $
NOTE G – OTHER ASSETS
Other Assets includes prepayments and deposits that are made from time to time by the Company for certain materials used in the manufacturing process in the Housewares/Small Appliances and Safety segments. As of July 5, 2026 and December 31, 2025, $
NOTE H – LEASES
The Company accounts for leases under ASC Topic 842, Leases. The Company’s leasing activities include roles as both lessee and lessor. As lessee, the Company’s primary leasing activities include buildings and structures to support its manufacturing operations at one location in its Defense segment, buildings and structures to support its Safety segment, and warehouse space and equipment to support its distribution center operations in its Housewares/Small Appliances segment. As lessor, the Company’s primary leasing activity is comprised of manufacturing and office space located adjacent to its corporate offices. All of the Company’s leases are classified as operating leases.
The Company’s leases as lessee in its Defense segment provide for variable lease payments that are based on changes in the Consumer Price Index. As lessor, the Company’s primary lease also provides for variable lease payments that are based on changes in the Consumer Price Index, as well as on increases in costs of insurance, real estate taxes, and utilities related to the leased space. Generally, all of the Company’s lease contracts include options for extensions and early terminations. The majority of lease terms of the Company’s lease contracts recognized on the balance sheet reflect extension options, while none reflect early termination options.
The Company has determined that the rates implicit in its leases are not readily determinable and therefore, estimates its incremental borrowing rates utilizing quotes from financial institutions for real estate and equipment, as applicable, over periods of time similar to the terms of its leases. The Company has entered into various short-term (12 months or less) leases as lessee and has elected a non-recognition accounting policy, as permitted by ASC Topic 842.
| Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | |||||||||||||
| Summary of Lease Cost (in thousands) | July 5, 2026 | June 29, 2025 | July 5, 2026 | June 29, 2025 | ||||||||||||
| Operating lease cost | $ | $ | $ | $ | ||||||||||||
| Short-term and variable lease cost | ||||||||||||||||
| Total lease cost | $ | $ | $ | $ | ||||||||||||
Operating cash used for operating leases was $
Maturities of operating lease liabilities are as follows:
| Years ending December 31: | (In thousands) | |||
| 2026 (remaining six months) | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| Thereafter | ||||
| Total lease payments | $ | |||
| Less: future interest expense | ||||
| Lease liabilities | $ | |||
Lease income from operating lease payments was $
| Years ending December 31: | (In thousands) | |||
| 2026 (remaining six months) | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| Thereafter | ||||
| Total lease payments | $ | |||
The Company considers risk associated with the residual value of its leased real property to be low, given the nature of the long-term lease agreement, the Company’s ability to control the maintenance of the property, and the creditworthiness of the lessee. The residual value risk is further mitigated by the long-lived nature of the property, and the propensity of such assets to hold their value or, in some cases, appreciate in value.
NOTE I – COMMITMENTS AND CONTINGENCIES
The Company is involved in largely routine litigation incidental to its business. Management believes the ultimate outcome of the litigation will not have a material effect on the Company's consolidated financial position, liquidity, or results of operations.
During the quarter ended July 5, 2026, the Company entered into certain construction agreements with vendors related to the expansion of plant and equipment at its Tech Ord facility in Clear Lake, South Dakota of $
NOTE J – LINE OF CREDIT
The Company has maintained an unsecured line of credit for short term operating cash needs of $
NOTE K – IMPAIRMENT OF VENDOR DEPOSIT
During the quarter ended March 30, 2025, the Company made deposits totaling $
NOTE L – GAIN ON SALE OF PROPERTY PLANT AND EQUIPMENT
On February 10, 2026, the Company sold the warehousing facility in Canton, Mississippi that mainly served the Housewares/Small Appliance segment for $
NOTE M – RECENTLY ISSUED OR ADOPTED ACCOUNTING PRONOUNCEMENTS
The Company assesses the impacts of adopting recently issued accounting standards by the Financial Accounting Standards Board on the Company's financial statements, and updates previous assessments, as necessary, from the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended April 5, 2026.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. As revised by ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, the provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. With the exception of expanding disclosures to include more granular income statement expense categories, the Company does not expect the adoption of ASU 2024-03 to have a material effect on our consolidated financial statements taken as a whole.
NOTE N - SUBSEQUENT EVENT
The Company evaluates events that occur through the financial statement filing date and discloses any material or significant events or transactions.
On February 20, 2026, the United States Supreme Court determined that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were contrary to law. Although the Court of International Trade (CIT) required customs to setup a mechanism for processing IEEPA refunds and the Company filed for refunds under that process, the order is still subject to appeal. In response to the Supreme Court’s ruling, the Trump administration implemented new tariffs, which included a 10% tariff under section 122 of the Trade Act of 1974. That statute deals with balance of trade deficits. That tariff was the subject of litigation and on May 7, the CIT ruled the tariff illegal. The ruling was appealed, and collections of tariffs under section 122 continued until it expired by operation of law on July 25, 2026. Upon its expiration, the Trump administration instituted another new tariff under section 301, with rates ranging from 10% to 12.5%, ostensibly aimed at curtailing the importation of goods made from economies with forced labor, which is also the subject of litigation. The government has announced that there will be additional tariffs based on alternative statutory authorities, resulting in ongoing uncertainty regarding future tariff actions and their possible impact on the Company. The Company is continuing to monitor these developments and evaluate the potential effects on its business, financial condition, and results of operations.
During the quarter ended July 5, 2026, the Company received approximately $
Subsequent to July 5, 2026, the Company received an additional $
The ultimate amount, if any, and timing of additional recoveries remain subject to ongoing legal, regulatory, and administrative proceedings, and additional tariff refunds will be recognized when the applicable recognition criteria have been met.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-looking statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, elsewhere in this Form 10-Q, in the Company’s 2025 Annual Report to Stockholders, in the Proxy Statement for the annual meeting held on May 19, 2026, and in the Company’s press releases and oral statements made with the approval of an authorized executive officer are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are certain important factors that could cause results to differ materially from those anticipated by some of the statements made herein. Investors are cautioned that all forward-looking statements involve risks and uncertainty. In addition to the factors discussed herein and in the Notes to Consolidated Financial Statements, among the other factors that could cause actual results to differ materially are the following: consumer spending and debt levels; interest rates; continuity of relationships with and purchases by major customers; product mix; the benefit and risk of business acquisitions; competitive pressure on sales and pricing; development and market acceptance of new products; increases in material, freight/shipping, tariffs, or production cost which cannot be recouped in product pricing; delays or interruptions in shipping or production; shipment of defective product which could result in product liability claims or recalls; work or labor disruptions stemming from a unionized work force; changes in government requirements, military spending, and funding of government contracts, which could result in, among other things, the modification or termination of existing contracts; dependence on subcontractors or vendors to perform as required by contract; the ability of startup businesses to ultimately have the potential to be successful; the efficient start-up and utilization of capital equipment investments; political actions of federal and state governments which could have an impact on everything from the value of the U.S dollar vis-à-vis other currencies to the availability of affordable labor and energy; and security breaches and disruptions to the Company’s information technology systems. Additional information concerning these and other factors is contained in the Company's Securities and Exchange Commission filings.
Comparison of Second Quarter 2026 and 2025
Readers are directed to Note D to the Consolidated Financial Statements, “Business Segments,” for data on the financial results of the Company’s three business segments for the quarters ended July 5, 2026 and June 29, 2025.
On a consolidated basis, net sales increased by $26,147,000 (22%), gross profit increased by $10,001,000 (54%), selling and general expenses decreased by $698,000 (7%), impairment of vendor deposit decreased $2,701,000, and amortization increased by $82,000 (22%). Other income increased by $284,000 (55%), earnings before provision for income taxes increased by $13,602,000 (206%), and net earnings increased by $10,710,000 (208%). Details concerning these changes can be found in the comments by segment below.
Housewares/Small Appliance net sales decreased by $1,263,000 from $20,346,000 to $19,083,000, or 6%, which was attributable to a decrease in units shipped, approximately 58% was offset in part by increases in pricing. Defense net sales increased by $27,144,000 from $99,813,000 to $126,957,000 or 27%, primarily reflecting an increase in shipments from the segment's backlog.
Notwithstanding the decrease in sales mentioned above, Housewares/Small Appliance gross profit increased $4,228,000 from $480,000 to $4,708,000, primarily reflecting a refund of a portion of the tariffs the segment had paid that the Supreme Court declared unauthorized in its February 2026 decision. By contrast, a portion of the declared unauthorized tariffs were paid during the second quarter of 2025. Tariffs are generally recognized as they are refunded or incurred, reflecting the segment’s LIFO inventory cost valuation method. The balance of the change in gross profit was attributable to an increase in costs incident to the startup of the segment’s new warehousing facility of approximately $450,000. Defense gross profit increased $5,741,000 from $19,200,000 to $24,941,000, primarily reflecting the increase in sales mentioned above. Due to the startup nature of the businesses in the Safety segment and the resulting limited revenues, gross margins were negative in both years.
Selling and general expenses for the Housewares/Small Appliance segment decreased $1,384,000, primarily reflecting an increased allocation of corporate overhead to the Defense segment of $642,000 and decreased cost accruals for self insurance of $770,000. Selling and general expenses for the Defense segment increased $788,000, primarily attributable to the increase in the allocation of corporate overhead. Selling and general expenses for the Safety segment decreased $102,000, primarily reflecting reduced personnel costs.
During the first quarter of 2025, the Company made deposits totaling $2,701,000 with a vendor in its Housewares/Small Appliances segment. On May 29, 2025, the vendor filed for protection in the U.S. Bankruptcy Court in the Northern District of Texas. As recovery of the deposit was deemed unlikely, the Company recorded an impairment of the full deposit during the second quarter of 2025.
Intangibles amortization increased $82,000, reflecting amortization of a trade secret intangible asset used in in the fulfillment of certain contracts in the Defense segment.
The above items were responsible for the change in operating profit.
The $284,000 increase in other income was primarily attributable to an increase in interest income on marketable securities of $125,000 and a decrease in interest expense related to the Company's revolving line of credit of $71,000.
Earnings before provision for income taxes increased $13,602,000 from $6,613,000 to $20,215,000. The provision for income taxes increased from $1,461,000 to $4,353,000, which resulted in an effective income tax rate of 22% for both quarters ended July 5, 2026 and June 29, 2025. Net earnings increased $10,710,000 from $5,152000 to $15,862,000, or 208%.
Comparison of First Six Months 2026 and 2025
Readers are directed to Note D to the Consolidated Financial Statements, “Business Segments,” for data on the financial results of the Company’s three business segments for the first six months ended July 5, 2026 and June 29, 2025.
The Company reports its operations on a fiscal quarter basis in which each quarter contains approximately thirteen weeks and ends on a Sunday, with the exception of the fourth quarter, which ends on December 31. Occasionally, the end dates of the fiscal quarters are adjusted to account for differences that accumulate between the end of the fiscal year and the end of the subsequent first quarter. One such adjustment occurred during the quarter ended April 5, 2026.
On a consolidated basis, net sales increased by $41,157,000 (18%), gross profit increased by $9,368,000 (26%), selling and general expenses increased by $1,380,000 (8%), gain on sale of property, plant and equipment increased $1,707,000, impairment of vendor deposit decreased $2,701,000, and amortization increased by $116,000 (15%). Other income increased by $127,000 (10%), earnings before provision for income taxes increased by $12,407,000 (76%), and net earnings increased by $9,726,000 (76%). Details concerning these changes can be found in the comments by segment below.
Housewares/Small Appliance net sales decreased by $4,691,000 from $42,272,000 to $37,581,000, or 11%, which was attributable to a decrease in units shipped, approximately 45% of which was offset by increases in pricing. The decrease in units shipped was due in large part to startup issues at the segment’s new warehousing facility and a resulting inability to ship during a portion of the first quarter. Defense net sales increased by $45,778,000 from $180,751,000 to $226,529,000 or 25%, primarily reflecting an increase in shipments from the segment's backlog.
Notwithstanding the decrease in sales mentioned above, Housewares/Small Appliance gross profit increased $405,000 from $1,940,000 to $2,345,000, primarily reflecting a refund of a portion of the tariffs the segment had paid that the Supreme Court declared unauthorized in its February 2026 decision. By contrast, a portion of the declared unauthorized tariffs were paid during the first six months of 2025. Tariffs are generally recognized as they are refunded or incurred, reflecting the segment’s LIFO inventory cost valuation method. The balance of the change in gross profit was attributable to an increase in costs incident to the startup of the segment’s new warehousing facility of approximately $2,359,000. Defense gross profit increased $8,901,000 from $36,830,000 to $45,731,000, primarily reflecting the increase in sales mentioned above. Due to the startup nature of the businesses in the Safety segment and the resulting limited revenues, gross margins were negative in both years.
Selling and general expenses for the Housewares/Small Appliance segment decreased $1,199,000, primarily reflecting the increased allocation of corporate overhead to the Defense segment of $1,569,000 and decreased accruals for self-insurance of $114,000, partially offset by increased compensation of $327,000 and legal and professional costs of $159,000. Selling and general expenses for the Defense segment increased $2,825,000, primarily attributable to increases in the allocation of corporate overhead of $1,569,000, personnel costs of $704,000, repairs and maintenance costs of $137,000, and a write off of a note receivable of $208,000. Selling and general expenses for the Safety segment decreased $246,000, primarily reflecting reduced personnel costs of $192,000 and legal and professional costs of $74,000.
The gain on sale of property, plant and equipment stemmed from the February 10, 2026 sale of the Company’s warehousing facility in Canton, Mississippi that mainly served the Housewares/Small Appliance segment. Subsequent to the sale, the Company entered into a short-term lease agreement with the buyer, as it completes its warehousing operations transfer to the new warehousing facility in Nettleton, Mississippi.
During the first quarter of 2025, the Company made deposits totaling $2,701,000 with a vendor in its Housewares/Small Appliances segment. On May 29, 2025, the vendor filed for protection in the U.S. Bankruptcy Court in the Northern District of Texas. As recovery of the deposit was deemed unlikely, the Company recorded an impairment of the full deposit during the second quarter of 2025.
Intangibles amortization increased $116,000, reflecting amortization of a trade secret intangible asset used in the fulfillment of certain contracts in the Defense segment.
The $127,000 increase in other income was primarily attributable to an increase in interest income on marketable securities of $40,000, an increase in rental income of $52,000, and a decrease in interest expense related to the Company's revolving line of credit of $31,000.
Earnings before provision for income taxes increased $12,407,000 from $16,421,000 to $28,828,000. The provision for income taxes increased from $3,659,000 to $6,340,000, which resulted in an effective income tax rate of 22% for both six month periods ended July 5, 2026 and June 29, 2025. Net earnings increased $9,726,000 from $12,762,000 to $22,488,000, or 76%.
Liquidity and Capital Resources
Net cash provided by operating activities was $44,144,000 during the first six months of 2026 as compared to $1,542,000 during the first six months of 2025. The principal factors contributing to the change can be found in the changes in the components of working capital within the Consolidated Statements of Cash Flows. Of particular note during the first six months of 2026 were net earnings of $22,488,000, which included the non-cash depreciation and amortization expenses of $2,980,000 and book gain on the sale of property plant and equipment of $1,707,000. Contributing to the cash provided were a decrease in accounts receivable stemming from cash collections on customer sales and an increase in payable and accrual levels, partially offset by increases in inventory levels and deposits made to vendors included in other current assets. Of particular note during the first six months of 2025 were net earnings of $12,762,000, which included the non-cash impairment of a vendor deposit of $2,701,000 and depreciation and amortization expenses of $2,460,000. Contributing to the cash provided was a decrease in accounts receivable levels stemming from cash collections on customer sales. These were partially offset by a decrease in payable and accrual levels and increases in inventory levels and deposits made to vendors included in other current assets.
Net cash used in investing activities was $933,000 for the first six months of 2026, and $23,062,000 for the first six months of 2025. Significant factors contributing to the change were purchases of property, plant and equipment of $5,449,000 in 2026, as opposed to $25,449,000 in 2025, and proceeds from the sale of property, plant and equipment of $4,510,000 in 2026. Also contributing to the change were net maturities and sales of marketable securities of $6,000 in 2026, in contrast to $1,983,000 in 2025.
Net cash used in financing activities was $30,671,000 for the first six months of 2026, as compared to $5,614,000 cash provided by financing activities for the first six months of 2025. The change primarily relates to net payments on the Company's line of credit in 2026 of $23,624,000, as opposed to net proceeds from the line of credit of $12,636,000 in 2025. Cash flows for both six month periods also reflected the payment of the $1.00 per share regular dividend and the proceeds from the sale of treasury stock to a Company sponsored retirement plan. During 2026 and 2025, the Company incurred interest expense of $44,000 and $75,000 related to its line of credit, respectively.
Working capital increased by $16,500,000 during the first six months of 2026 to $324,611,000 at July 5, 2026 for the reasons stated above. The Company's current ratio was 5.2 to 1.0 and 4.2 to 1.0 at July 5, 2026 and December 31, 2025, respectively.
The Company expects to continue to evaluate acquisition opportunities that align with its business segments and will make further acquisitions, as well as continue to make capital investments in its business segments per existing authorized projects and for additional projects, if the appropriate return on investment is projected.
The Company has sufficient liquidity in the form of operating activities cash flows and a credit facility to meet all of its anticipated capital requirements, to make dividend payments, and to fund future growth through acquisitions and other means.
Critical Accounting Estimates
The Company's discussion and analysis of financial condition and results of operations are based upon its Consolidated Financial Statements. The preparation of the Company's Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amount of reported assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and revenues and expenses during the periods reported. The estimates are based on experience and other assumptions that the Company believes are reasonable under the circumstances, and these estimates are evaluated on an ongoing basis. Actual results may differ from those estimates.
The Company's critical accounting policies are those that materially affect its Consolidated Financial Statements and involve difficult, subjective, or complex judgments by management. The Company reviewed the development and selection of the critical accounting policies and believes the following is the most critical accounting policy that could have an effect on the Company's reported results as it involves the use of significant estimates and assumptions as described above. This critical accounting policy and estimate has been reviewed with the Audit Committee of the Board of Directors. See Note A - Summary of Significant Accounting Policies to the Consolidated Financial Statements included in Part II, Item 8 of the Annual Report on Form 10-K for the year-ended December 31, 2025 filed on March 13, 2026 for more detailed information regarding the Company's critical accounting policies.
Impairment and Valuation of Long-lived Assets
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Long-lived assets consist of property, plant and equipment and intangible assets, including the value of contracts/customer relationships, trademarks and safety certifications, trade secrets, and technology software. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, the amounts of the cash flows and the asset’s residual value, if any. In turn, measurement of an impairment loss requires a determination of fair value, which is based on the best information available. The Company uses internal discounted cash flows estimates, quoted market prices when available, and independent appraisals, as appropriate, to determine fair value. The Company derives the required cash flow estimates from its historical experience and its internal business plans.
The Company recognizes the excess cost of acquired entities over the net amount assigned to the fair value of assets acquired and liabilities assumed as goodwill. Goodwill, at the reporting unit level, is tested for impairment on an annual basis at the start of the fourth quarter and between annual tests whenever an impairment is indicated. The impairment test for goodwill requires the determination of fair value of the reporting units. The Company uses multiples of earnings before interest, taxes, depreciation, and amortization ("EBITDA"), sales, and discounted cash flow models, which are described above, to determine the reporting unit's fair value, as appropriate. The Company uses internal discounted cash flows estimates, quoted market prices when available and independent appraisals, as appropriate, to determine fair value. A number of assumptions and estimates are involved in the application of the discounted cash flow model including revenue projections, projected operating cash flow margins, and discount rates. The Company derives the required cash flow estimates from its historical experience and its internal business plans. The Company also utilizes qualitative analyses to assess goodwill impairment.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company's interest income on cash equivalents and marketable securities is affected by changes in interest rates in the United States. Cash equivalents primarily consist of money market funds. The balance of the Company’s investments is held primarily in certificates of deposits, with a weighted average life of 0.7 years. Accordingly, changes in interest rates have not had a material effect on the Company, and the Company does not anticipate that future exposure to interest rate market risk will be material. The Company uses sensitivity analysis to determine its exposure to changes in interest rates.
The Company has no history of, and does not anticipate in the future, investing in derivative financial instruments. Most transactions with international customers are entered into in U.S. dollars, precluding the need for foreign currency cash flow hedges. As the majority of the Housewares/Small Appliance segment’s suppliers are located in China, periodic changes in the U.S. dollar and Chinese Renminbi (RMB) exchange rates do have an impact on that segment’s product costs. It is anticipated that any potential material impact from fluctuations in the exchange rate will be to the cost of products secured via purchase orders issued subsequent to the revaluation.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The Company’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934 (the “1934 Act”) as of July 5, 2026. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of that date.
There were no changes to internal controls over financial reporting during the quarter ended July 5, 2026 that have materially affected or are reasonably likely to materially affect, the Company's internal control over financial reporting.
See Note I to the Consolidated Financial Statements set forth under Part I - Item 1 above.
Insider Trading Arrangement
officers or directors, as defined in Rule 16a-(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as defined in Regulation S-K Item during the fiscal quarter ended July 5, 2026.
| Exhibit 3(i) |
|
| Exhibit 3(ii) |
|
| Exhibit 9.1 |
|
| Exhibit 9.2 |
|
| Exhibit 9.3 | Voting Trust Agreement Amendment - incorporated by reference from Exhibit 9.3 of the Company's annual report on Form 10-K for the year ended December 31, 2024 |
| Exhibit 31.1 |
|
| Exhibit 31.2 |
|
| Exhibit 32.1 |
|
| Exhibit 32.2 |
|
| Exhibit 101.INS |
eXtensible Business Reporting Language (XBRL) Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| Exhibit 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| Exhibit 101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document |
| Exhibit 101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document |
| Exhibit 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| Exhibit 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| Exhibit 104 | The cover page from this Quarterly Report on Form 10-Q for the quarter ended July 5, 2026, formatted in Inline XBRL and contained in Exhibit 101.INS |
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| |
|
| |
NATIONAL PRESTO INDUSTRIES, INC. |
| |
|
| |
|
| |
/s/ Maryjo Cohen |
| |
Maryjo Cohen, Chair of the Board, |
| |
President, Chief Executive Officer |
| |
(Principal Executive Officer), Director |
| |
|
| |
|
| |
/s/ David J. Peuse |
| |
David J. Peuse, Treasurer and Chief Financial Officer, (Principal |
| |
Financial Officer) |
| |
|
| |
|
| |
Date: August 14, 2026 |