3 unchanged sentences
INTEREST RATE RISK
−Removed: As of December 28, 2025, the Company had $16.4 million of indebtedness that bears interest at a variable rate, comprised of borrowings under the revolving line of credit and a term loan.
+Added: As of June 28, 2026, the Company had $9.6 million of indebtedness that bears interest at a variable rate, comprised of borrowings under the revolving line of credit and a term loan.
Based upon this level of outstanding debt, the Company’s annual net income would decrease by approximately $73 thousand for each increase of one percentage point in the interest rate applicable to the debt.
8 unchanged sentences
The Company’s financial results are closely tied to sales to its top two customers, which represented approximately 57% of the Company’s gross sales in fiscal year 2026.
−Removed: In addition, 50% of the Company’s gross sales in fiscal year 2025 consisted of licensed products, which included 21% of sales associated with the Company’s license agreements with affiliated companies of the Walt Disney Company.
+Added: In addition, 52% of the Company’s gross sales in fiscal year 2026 consisted of licensed products, which included 23% of sales associated with the Company’s license agreements with affiliated companies of Disney.
The Company’s results could be materially impacted by the loss of one or more of these licenses.
+Added: The Company primarily sources products from foreign contract manufacturers, with the largest concentration being in China.
+Added: government has tariffs on imports from certain countries, including China.
+Added: During 2025 and 2026, the U.S.
+Added: government has increased and decreased tariffs which increases volatility in the cost of the products the Company sources from China and affects shipments from the Company’s Chinese-based suppliers.
+Added: Should the U.S.
+Added: government introduce new or additional tariffs, the Company may not be able to timely pass along to its customers any or all increases in tariffs and freight charges.
+Added: Further alterations the Company may make to its business strategy or operations to adapt to the changing tariff environment could be time-consuming and expensive.
+Added: The full impact of additional tariffs may have a material adverse effect on the Company’s business, cash flow, results of operations and financial condition.
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.