What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 75 added, 48 removed, 236 unchanged (34% of the section changed)

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Note Regarding Forward-Looking Statements

All statements other than statements of historical fact included in this Form 10-Q including, without limitation, statements in this MD&A regarding our financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements within the meaning of Section 21E of the Exchange Act.

When used in this Form 10-Q, words such as "expect," “anticipate,” "estimate," "outlook," "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should," and “believe,” and other variations or similar terminology and expressions identify forward-looking statements.

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the potential effects of inflationary pressures, tariffs or the imposition of new tariffs, trade wars, barriers or restrictions, or threats of such actions, changes in interest rates, labor market shortages and supply chain issues;

instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of new or proposed legislation or regulatory, trade or other policies in or impacting the U.S., the conflict between Russia and Ukraine, the conflicts in Israel, Gaza and Iran, as well as any related uncertainty in the surrounding region, and the possible expansion of such conflicts;

instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of new or proposed legislation or regulatory, trade or other policies in or impacting the U.S., the conflict between Russia and Ukraine, the conflicts in the Middle East, as well as any related uncertainty in the surrounding region, and the possible expansion of such conflicts;

the effect of any of the foregoing on our customers’ demand for our products and our suppliers’ ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.;

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We internally polymerize caprolactam into Aegis® Nylon 6 Resin, and we also market and sell the caprolactam that is not consumed internally to customers who use it to manufacture polymer resins to produce fibers, compounds and other nylon products.

Our Hopewell, VA manufacturing facility is one of the world’s largest single-site producers of caprolactam as of March 31, 2026.

Our Hopewell, VA manufacturing facility is one of the world’s largest single-site producers of caprolactam as of June 30, 2026.

• Plant Nutrients – Our ammonium sulfate is used by customers as a fertilizer containing nitrogen and sulfur, two key plant nutrients.

Ammonium sulfate fertilizer is derived from the integrated operations at the Hopewell manufacturing facility.

Because of our Hopewell facility’s size, scale and technology design, we are the world’s largest single-site producer of ammonium sulfate fertilizer as of March 31, 2026.

Because of our Hopewell facility’s size, scale and technology design, we are the world’s largest single-site producer of ammonium sulfate fertilizer as of June 30, 2026.

We market and sell ammonium sulfate primarily to North American and South American distributors, farm cooperatives and retailers to fertilize crops.

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Additional end-products for intermediates include automotive components, and water treatment and pharmaceutical intermediates.

The primary raw material used in our manufacturing process is cumene, which is produced from benzene and propylene.

We purchase cumene from multiple suppliers to ensure stability of supply and optimal terms.

Other important raw materials used in our manufacturing process are natural gas and sulfur, which are used to produce caprolactam and ammonium sulfate.

We purchase natural gas and sulfur from a diverse set of suppliers.

Historically, we have been able to renew contracts with our suppliers and obtain sufficient quantities of cumene, sulfur, natural gas and any other key raw materials.

Global supply and demand can significantly impact the price of our key raw materials, and historically prices have been cyclical.

Prices for our key raw materials are typically on a monthly settlement basis for benzene, propylene and natural gas, or on a quarterly settlement basis for sulfur.

We mitigate our exposure to commodity price risk primarily through the use of medium- and long-term, formula-based price contracts with our suppliers and formula-based price agreements with customers which structurally pass through increases or decreases in raw material costs.

While formula or index-based pricing agreements are more common for benzene and propylene across our Nylon Solutions and Chemical Intermediates portfolio, a portion of our natural gas and sulfur exposure is also structurally passed through in certain customer agreements.

Sales in our Plant Nutrients business line are priced on a freely negotiated basis.

Global demand for Nylon 6 resin spans a variety of end-uses such as textiles, engineered plastics, industrial filament, food and industrial films, and carpet.

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Our results of operations are primarily driven by production volume and the spread between the sales prices of our products and the costs of the underlying raw materials built into market-based and value-based pricing models.

The global prices for nylon resin typically track a spread over the price of caprolactam, which in turn tracks as a spread over benzene because the key feedstock materials for caprolactam, phenol or cyclohexane, are derived from benzene.

The global prices for nylon resin typically track as a spread over the price of caprolactam, which in turn tracks as a spread over benzene because the key feedstock materials for caprolactam, phenol or cyclohexane, are derived from benzene.

This price spread has historically experienced cyclicality as a result of global changes in supply and demand.

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Our ammonium sulfate fertilizer experiences quarterly sales seasonality reflecting both geographical and product sales mix considerations based on the timing and length of the growing seasons in North and South America.

The North American fertilizer season typically runs from July, when the value chain begins restocking fertilizer, through June of the following year, when most application for the year’s planting is completed.

The North American fertilizer year typically runs from July, when the value chain begins restocking fertilizer, through June of the following year, when most application for the year’s planting is completed.

The new season fill begins in the third quarter and proceeds sequentially into the following spring, which is the peak period for crop fertilizer application.

As a result of this pattern, North American ammonium sulfate demand and pricing, particularly for our higher-value granular product, are typically strongest in

the first half of the year through application for the spring crop and then decline in the second half of the year.

Ammonium sulfate industry prices in the corn belt have declined approximately 12% from the second quarter to the third quarter, on average, since 2016.

As a result of this pattern, North American ammonium sulfate demand and pricing, particularly for our higher-value granular product, are typically strongest in the first half of the year through application for the spring crop and then decline in the second half of the year.

Due to the ammonium sulfate fertilizer sales cycle, we occasionally build up higher inventory balances because our production is continuous throughout the year and not tied to seasonal demand for fertilizers.

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Recent Developments

Appointment of Senior Vice President and Chief Financial Officer

On April 13, 2026, the Company announced that its Board of Directors (the "Board") appointed Patrick C.

Day as Senior Vice President and Chief Financial Officer, effective as of April 27, 2026, to succeed Christopher Gramm who had been serving as Interim Chief Financial Officer.

Effective as of such date, Mr.

Gramm returned to serving in his role as Vice President of Corporate Finance and Strategic Financial Planning and Analysis for the Company.

Anti-Dumping Duty Petition - Acetone

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Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Sales $ 421,284 $ 410,022 $ 825,468 $ 787,813

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Three Months Ended

March 31, 2026

Sales increased in the three months ended March 31, 2026 compared to the prior year period by $26.4 million (approximately 7%) due primarily to (i) higher volume driven primarily by Chemical Intermediates sales (approximately 6%) and (ii) favorable market-based pricing (approximately 3%) primarily driven by an increase in Plant Nutrients reflecting higher nitrogen pricing amid increased sulfur input costs, partially offset by lower raw material pass through pricing following a net cost decrease in benzene and propylene (inputs to cumene which is a key feedstock to our products) (approximately 2%).

June 30, 2026 Six Months Ended

June 30, 2026

Volume (14.8)% (4.8)%

Price 17.5% 9.6%

Sales increased in the three months ended June 30, 2026 compared to the prior year period by $11.3 million (approximately 3%) due primarily to (i) favorable raw material pass through pricing following a net cost increase in benzene and propylene (inputs to cumene which is a key feedstock to our products) (approximately 13%) and (ii) favorable market-based pricing (approximately 5%) primarily driven by an increase in Plant Nutrients reflecting higher nitrogen pricing amid increased sulfur input costs, partially offset by lower volume (approximately 15%) driven primarily by lower in-season Plant Nutrients sales as a result of reduced grower application of nutrients.

Sales increased in the six months ended June 30, 2026 compared to the prior year period by $37.7 million (approximately 5%) due primarily to (i) favorable raw material pass through pricing following a net cost increase in benzene and propylene (inputs to cumene which is a key feedstock to our products) (approximately 6%) and (ii) favorable market-based pricing (approximately 4%) primarily driven by an increase in Plant Nutrients reflecting higher nitrogen pricing amid increased sulfur input costs, partially offset by lower volume (approximately 5%) driven primarily by lower in-season Plant Nutrients sales as a result of reduced grower application of nutrients.

Organization, Operations and Basis of Presentation of Notes to the Condensed Consolidated Financial Statements for discussion of the additional reporting days in the current year period resulting from our normal quarterly closing procedures.

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Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Cost of goods sold $ 390,183 $ 351,308 $ 790,565 $ 675,628

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Gross Margin percentage 7.4% 14.3% 4.2% 14.2%

Costs of goods sold increased in the three months ended March 31, 2026 compared to the prior year period by $76.1 million (approximately 23%) due primarily to (i) increased raw material costs (approximately 8%) driven by sulfur, (ii) $26 million of insurance proceeds (approximately 8% in the prior year period which did not recur in the current year period), (iii) increased sales volume (approximately 4%) and (iv) increased plant costs (approximately 4%) driven primarily by utility costs and winter storm related expenses.

Gross margin percentage decreased in the three months ended March 31, 2026 compared to the prior year period (approximately 13%) due primarily to (i) absence of insurance proceeds (approximately 6%), (ii) the impact of pricing, net of raw material costs (approximately 5%) and (iii) increased plant costs driven primarily by utility costs and winter storm related expenses (approximately 3%).

Costs of goods sold increased in the three months ended June 30, 2026 compared to the prior year period by $38.9 million (approximately 11%) due primarily to (i) increased raw material costs (approximately 20%) driven by an increase in the prices of benzene (11%), sulfur (8%), and propylene (3%) and (ii) lower production rates and timing of plant turnaround spend (approximately 3%), partially offset by decreased sales volume (approximately 12%).

Costs of goods sold increased in the six months ended June 30, 2026 compared to the prior year period by $114.9 million (approximately 17%) due to (i) increased raw material costs (approximately 14%) driven by an increase in the prices of sulfur (8%), benzene (5%), and propylene (1%), (ii) increased plant costs (approximately 3%) driven primarily by utility costs and winter storm related expenses and (iii) $26 million of insurance proceeds (approximately 4% in the prior year period which did not recur in the current year period), partially offset by decreased sales volume (approximately 4%).

Gross margin percentage decreased in the three months ended June 30, 2026 compared to the prior year period (approximately 7%) due primarily to (i) lower production rates and timing of plant turnaround spend (approximately 3%) and (ii) the impact of pricing, which largely offset raw material cost increases (approximately 2%).

Gross margin percentage decreased in the six months ended June 30, 2026 compared to the prior year (approximately 10.0%) period due to (i) the impact of pricing, net of raw material costs (approximately 4%), (ii) increased plant costs (approximately 3%) and (iii) absence of insurance proceeds (approximately 3%).

Selling, General and Administrative Expenses

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Selling, general and administrative expenses $ 22,054 $ 25,416 $ 44,572 $ 48,825

Percentage of Sales 5.2% 6.2% 5.4% 6.2%

Selling, general and administrative expenses decreased by $0.9 million in the three months ended March 31, 2026 compared to the prior year period due primarily to the completion of the investment to upgrade our enterprise resource planning system in 2025.

Selling, general and administrative expenses decreased by $3.4 million and $4.3 million in the three and six months ended June 30, 2026 respectively, compared to the prior year periods due primarily to the completion of the investment to upgrade our enterprise resource planning system in 2025 and the execution of enterprise cost savings initiatives.

Income Tax Expense (Benefit)

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Income tax expense (benefit) $ 3,406 $ 279 $ (1,725) $ 5,864

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The Company’s provision (benefit) for income taxes in interim periods is computed by applying an estimated annual effective tax rate against Income (loss) before taxes for the period in addition to recording any tax effects of discrete items for the quarter.

The Company’s effective tax rate for the three months ended March 31, 2026 and 2025 differed from the U.S.

federal statutory rate due to state taxes and executive compensation deduction limitations which generally increase the rate, offset by research tax credits and the foreign-derived deduction eligible income (FDDEI) deduction (formerly known as the foreign-derived intangible income (FDII) deduction) that generally decrease the rate.

During the three months ended March 31, 2025, discrete tax adjustments recorded in the quarter related to Internal Revenue Code (IRC) Section 45Q tax credits of $1.8 million, offset slightly by state tax legislation changes, resulted in a net 5.8% decrease in the Effective tax rate.

The Company’s effective tax rate for the three months ended March 31, 2026 was higher than the prior year period due primarily to the discrete tax adjustments related to IRC Section 45Q tax credits and state tax legislative changes in the prior year quarter described above.

The Company’s effective tax rate for the three and six months ended June 30, 2026 and 2025 differed from the U.S.

federal statutory rate primarily due to state taxes and executive compensation deduction limitations which generally increase the rate, offset by research tax credits that generally decrease the rate.

These adjustments have the inverse impact on the effective tax rate in periods with a loss before taxes.

Changes in our forecasted earnings and taxable income between the first and second quarter have impacted our effective tax rate for the three and six months ended June 30, 2026.

Additionally, discrete tax adjustments recorded in the first and second quarter of 2025 related to Internal Revenue Code (IRC) Section 45Q tax credits of $1.8 million and $7.9 million, respectively, offset slightly by state tax legislation changes, resulted in a net 24.7% and 15.7% decrease in the rate for the three and six months ended June 30, 2025, respectively.

The Company’s effective tax rate for the three and six months ended June 30, 2026 was higher than the prior year periods due primarily to discrete tax adjustments related to IRC Section 45Q tax credits recorded in the prior year periods that decreased the effective tax rate and also from the impact of changes to the Company's forecasted earnings and taxable income in the current year periods as described above.

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted into law which includes numerous tax provisions affecting businesses, including the reinstatement of full expensing of domestic research and experimental expenditures, modification of the limitation on business interest and making permanent full expensing for certain business property.

Several of the major business provisions in the Act became effective in 2025 while other business tax changes are effective for the 2026 tax year.

The major business provisions in the Act reduced our cash taxes in 2025 and are expected to reduce our cash taxes in 2026 and future periods.

The major business provisions in the Act reduced our cash taxes in 2025 and are expected to reduce our cash taxes in future periods.

Net Income (Loss)

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Net income (loss) $ 3,248 $ 31,371 $ (12,298) $ 54,715

As a result of the factors described above, Net income (loss) was ($15.5) million for the three months ended March 31, 2026 as compared to $23.3 million in the corresponding prior year period.

As a result of the factors described above, Net income (loss) was $3.2 million and ($12.3) million for the three and six months ended June 30, 2026, respectively, as compared to $31.4 million and $54.7 million in the corresponding prior year period.

Non-GAAP Measures

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Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Net income (loss) $ 3,248 $ 31,371 $ (12,298) $ 54,715

Non-cash stock-based compensation 1,833 2,309 3,878 4,287

Non-recurring, unusual or extraordinary expense — —

Non-cash amortization from acquisitions 531 531 1,063 1,063

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Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Net income (loss) $ 3,248 $ 31,371 $ (12,298) $ 54,715

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(Dollars in thousands, unless otherwise noted)

We believe that cash balances and operating cash flows, together with available capacity under our credit agreement, as utilized in the first quarter of 2026, will provide adequate funds to support our current short-term operating objectives as well as our longer-term strategic plans, subject to the risks and uncertainties outlined below, in our "Note Regarding Forward-Looking Statements" above, and in the risk factors previously disclosed in Item 1A of Part I of our 2025 Form 10-K.

Our principal

source of liquidity is our cash flow generated from operating activities, which is expected to provide us with the ability to meet the majority of our short-term funding requirements for the next twelve months and beyond.

Our cash flows are affected by capital requirements and production volume, which may be materially impacted by unanticipated events such as unplanned downtime, material disruptions at our production facilities, the prices of our raw materials, general economic and industry trends and customer demand.

We believe that cash balances and operating cash flows, together with available capacity under our credit agreement, as utilized in the second quarter of 2026, will provide adequate funds to support our current short-term operating objectives as well as our longer-term strategic plans, subject to the risks and uncertainties outlined below, in our "Note Regarding Forward-Looking Statements" above, and in the risk factors previously disclosed in Item 1A of Part I of our 2025 Form 10-K.

Our principal source of liquidity is our cash flow generated from operating activities, which is expected to provide us with the ability to meet the majority of our short-term funding requirements for the next twelve months and beyond.

Our cash flows are affected by capital requirements and production volume, which may be materially impacted by unanticipated events such as material disruptions at our production facilities, the prices of our raw materials, general economic and industry trends and customer demand.

The Company applies a proactive and disciplined approach to working capital management to optimize cash flow and to enable capital allocation options in support of the Company’s strategy.

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Our ability to fund our capital needs, however, will depend on our ongoing ability to generate cash from operations and access to credit and capital markets, both of which are subject to the risk factors previously disclosed in Item 1A of Part I of our 2025 Form 10-K, as well as general economic, financial, competitive, regulatory and other factors that are beyond our control.

As of the end of the first quarter of 2026, the Company had approximately $17.6 million of cash on hand with approximately $229 million of additional capacity available under the revolving credit facility.

As of the end of the second quarter of 2026, the Company had approximately $7.2 million of cash on hand with approximately $224 million of additional capacity available under the revolving credit facility.

The Company’s Consolidated Leverage Ratio financial covenant of its credit facility allows it to net up to $75 million of cash with debt.

Capital expenditures are expected to be approximately $75 million to $95 million in 2026 compared to $116 million in 2025, reflecting a risk-based prioritization of base investments and enterprise programs with continued progression of growth programs including our SUSTAIN program.

Capital expenditures are expected to

be approximately $75 million to $95 million in 2026 compared to $116 million in 2025, reflecting a risk-based prioritization of base investments and enterprise programs with continued progression of growth programs including our SUSTAIN program.

We assumed from Honeywell International Inc.

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Although we have ongoing environmental remedial obligations at certain of our facilities, in the past three years, the associated remediation costs have not been material, and we do not expect our known remediation costs to have a material adverse effect on the Company's consolidated financial position or results of operations.

We expect that our primary cash requirements for 2026 will be to fund costs associated with ongoing operations, capital expenditures, and amounts related to other contractual obligations.

The Company made no cash contributions to the defined benefit pension plan during the three months ended March 31, 2026 as there were no funding requirements for the period.

We expect that our primary cash requirements for 2026 will be to fund costs associated with ongoing operations, capital expenditures, dividends, and amounts related to other contractual obligations.

The Company made no cash contributions to the defined benefit pension plan during the six months ended June 30, 2026 as there were no funding requirements for the period.

Subsequent to June 30, 2026, the Company made a $1.1 million cash contribution to the defined benefit pension plan.

Additional contributions may be made in future periods sufficient to satisfy pension funding requirements in those periods or on a discretionary basis.

As of March 31, 2026, the Company has repurchased a total of 6,386,289 shares of common stock life-to-date, including 1,140,833 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $195.4 million at a weighted average market price of $30.59 per share.

As of March 31, 2026, approximately $62.0 million remained available for share repurchases under the current authorization approved by the Board on February 17, 2023.

During the period April 1, 2026 through May 1, 2026, no additional shares were repurchased for tax withholding obligations or under the currently authorized repurchase program.

As of June 30, 2026, the Company has repurchased a total of 6,391,880 shares of common stock life-to-date, including 1,146,424 shares withheld to cover tax withholding obligations in connection with the vesting of awards, for an aggregate of $195.5 million at a weighted average market price of $30.58 per share.

As of June 30, 2026, approximately $62.0 million remained available for share repurchases under the current authorization approved by the Board on February 17, 2023.

The Company has not repurchased any shares under the currently authorized repurchase program since June 2024.

During the period July 1, 2026 through July 31, 2026, no additional shares were repurchased for tax withholding obligations or under the repurchase program.

Repurchases may be made from time to time on the open market in accordance with Rule 10b-18 of the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Exchange Act.

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The par value of the shares repurchased is applied to Treasury stock and the excess of the purchase price over par value is applied to Additional paid-in capital.

As of March 31, 2026, the Company did not have any off-balance sheet arrangements as described in Instruction 8 to Item 303(b) of Regulation S-K and did not have any material changes in the commitments or contractual obligations detailed in the 2025 Form 10-K (see Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" under "Liquidity and Capital Resources - Liquidity").

As of June 30, 2026, the Company did not have any off-balance sheet arrangements as described in Instruction 8 to Item 303(b) of Regulation S-K and did not have any material changes in the commitments or contractual obligations detailed in the 2025 Form 10-K (see Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" under "Liquidity and Capital Resources - Liquidity").

The Company has not guaranteed any debt or commitments of other entities or entered into any options on non-financial assets.

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5/8/2026 5/19/2026 6/2/2026 $0.16 $4.3

2/20/2026 3/9/2026 3/23/2026 $0.16 $4.3

The timing, declaration, amount and payment of future dividends to stockholders, if any, will fall within the discretion of our Board.

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If the Company does not comply with the covenants in the Credit Agreement, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding under the Revolving Credit Facility.

We were in compliance with all of our covenants at March 31, 2026 and through the date of the filing of this Form 10-Q.

We were in compliance with all of our covenants at June 30, 2026 and through the date of the filing of this Form 10-Q.

On October 23, 2025, the Company entered into Amendment No.

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We had a borrowed balance of $215 million under the Revolving Credit Facility at December 31, 2025.

We borrowed an incremental net amount of $55 million during the three months ended March 31, 2026, bringing the balance under the Revolving Credit Facility to $270 million, and available credit for use of approximately $229 million as of March 31, 2026.

We borrowed an incremental net amount of $60 million during the six months ended June 30, 2026, bringing the balance under the Revolving Credit Facility to $275 million, and available credit for use of approximately $224 million as of June 30, 2026.

We expect that Cash provided by operating activities will fund future interest payments on the Company's outstanding indebtedness.

Cash Flow Summary

Three Months Ended

Six Months Ended

Cash provided by (used for):

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Net change in cash and cash equivalents $ (12,549) $ (1,118)

Cash provided by operating activities decreased by $26.8 million for the three months ended March 31, 2026 versus the prior year period due primarily to (i) a $38.9 million decrease in Net income, (ii) a $10.2 million unfavorable impact from Accrued liabilities and (iii) an unfavorable impact of $7.5 million from Deferred income taxes.

These net unfavorable impacts were partially offset by a $30.3 million favorable cash impact from working capital (comprised of Accounts and other receivables, Inventories, Accounts payable and Deferred income and customer advances).

Cash used for investing activities decreased by $0.6 million for the three months ended March 31, 2026 versus the prior year period due primarily to the timing of cash payments on capital expenditures following prior quarter outages and disciplined spending on replacement maintenance while maintaining progress on growth and other enterprise programs.

Cash provided by financing activities increased by $35.2 million for the three months ended March 31, 2026 versus the prior year period due primarily to net borrowings of $55.0 million during the three months ended March 31, 2026 compared to net borrowings of $20.0 million during the prior year period.

Cash provided by operating activities decreased by $37.8 million for the six months ended June 30, 2026 versus the prior year period due primarily to a $67.0 million decrease in Net income partially offset by a $20.1 million favorable cash impact from disciplined working capital performance (comprised of Accounts and other receivables, Inventories, Accounts payable and Deferred income and customer advances) and the favorable cash impact of $15.8 million from Taxes receivable and Income taxes payable combined, driven by the timing of tax payments.

Cash used for investing activities decreased by $11.3 million for the six months ended June 30, 2026 versus the prior year period due primarily to disciplined spending on replacement maintenance while maintaining progress on growth and other enterprise programs.

Cash provided by financing activities increased by $15.1 million for the six months ended June 30, 2026 versus the prior year period due primarily to net borrowings of $60.0 million during the six months ended June 30, 2026 compared to net borrowings of $45.0 million during the prior year period.

Capital Expenditures

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The following table summarizes ongoing and expansion capital expenditures:

Three Months Ended

March 31, 2026

Six Months Ended

June 30, 2026

Capital expenditures in Accounts payable at December 31, 2025

Purchases of property, plant and equipment 39,281

Capital expenditures in Accounts payable at March 31, 2026

Capital expenditures in Accounts payable at June 30, 2026

Cash paid for capital expenditures $ 56,650

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis