Envela Corp 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Unless the context indicates otherwise for one of our specific operating segments, references to “we,” “us,” “our,” the “Company” and “Envela” refer to the consolidated business operations of Envela Corporation, and all of its direct and indirect subsidiaries. Forward-Looking Statements This Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (this “Form 10-Q”), including but not limited to: (i) the section of this Form 10-Q entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations;” (ii) information concerning our business prospects or future financial performance, anticipated revenues, expenses, profitability or other financial items; and (iii) our strategies, plans and objectives, together with other statements that are not historical facts, includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements generally can be identified by the use of forward-looking terminology, such as “may,” “will,” “would,” “expect,” “intend,” “could,” “estimate,” “should,” “anticipate”, “potential,” “continue,” “deploy” or “believe.” We intend that all forward-looking statements be subject to the safe harbors created by these laws. All statements other than statements of historical information provided herein are forward-looking based on current expectations regarding important risk factors. Many of these risks and uncertainties are beyond our ability to control, and, in many cases, we cannot predict all of the risks and uncertainties that could cause our actual results to differ materially from those expressed in the forward-looking statements. Actual results could differ materially from those expressed in the forward-looking statements, and readers should not regard those statements as a representation by us or any other person that the results expressed in the statements will be achieved. Important risk factors that could cause results or events to differ from current expectations are described under the section entitled “Risk Factors” in the Company’s 2024 Annual Report and any material updates are described under the section of this Form 10-Q entitled “Risk Factors” and elsewhere in this Form 10-Q. These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the operations, performance, development and results of our business. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to release publicly the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date thereon, including without limitation, changes in our business strategy or planned capital expenditures, or store growth plans, or to reflect the occurrence of unanticipated events. Introduction This section includes a discussion of our operations for the three and nine months ended September 30, 2025 and 2024. The following discussion and analysis provide information that management believes is relevant to an assessment and understanding of our financial condition and results of operations. The discussion should be read in conjunction with the Company’s 2024 Annual Report, the unaudited condensed consolidated financial statements, and the related Notes thereto included in Part I, Item 1 of this report. Critical Accounting Policies and Estimates There were no material changes to our critical accounting policies and estimates as described in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of the Company’s 2024 Annual Report. Economic Conditions Impacts of Government Legislation On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, which includes significant changes to federal tax law and other regulatory provisions that may impact the Company. We have evaluated the provisions of the new law and its potential effects on our effective tax rate, financial position, results of operations, and cash flows. OBBBA allows businesses to immediately deduct the full cost of qualifying assets in the year they are placed in service, rather than spreading the deduction over several years, and is effective for property acquired and placed in service after January 19, 2025. OBBBA also requires the businesses to recognize the effect of the tax law changes in the period of enactment, such 30 Table of Contents as remeasuring estimated U.S. deferred tax assets and liabilities. The Company intends to utilize bonus depreciation, effectively reducing taxable income in the respective period of taxation and the cash deployed to settle such obligations. There was no material impact on the effective tax rate, financial position, results of operations, or cash flows during the three and nine months ended September 30, 2025. In future fiscal periods, the impact of OBBBA is contingent on the continued election of bonus depreciation and the amount of qualifying assets acquired by the Company. Impacts of High Interest Rates and Inflation The U.S. and other world economies are currently experiencing high interest rates and elevated levels of inflation, coupled with commodity price risk, mainly associated with variations in the market price of precious metals and diamonds, which have the potential to impact consumer discretionary spending behavior. Furthermore, adverse macroeconomic conditions can also impact demand for resale personal technology assets. To counterbalance economic cycles that impact market selling prices and/or underlying operating costs, we adjust the inbound purchase price of commodity-based products, luxury hard assets, and resale technology. We continuously monitor our inventory positions and associated working capital to respond to market conditions and to meet seasonal business cycles and expansionary plans. These economic cycles may from time to time require the business to utilize its line of credit or seek additional capital. Impacts of Tariffs The U.S. government has recently adopted new approaches to trade policy, and announced tariffs on certain foreign goods, certain global tariffs and the possibility of significant additional tariff increases or expansions of tariffs. Specifically, under Section 232 of the Trade Expansion Act of 1962 tariffs were applied to the importation of aluminum, copper, steel, and select derivative products, but excluded gold and silver. The impact of such tariffs and retaliatory tariffs by other countries in response to such tariffs continues to evolve and requires regular monitoring and evaluation. The deemed impacts of tariffs on each of our reportable segments are detailed below: Consumer Segment The consumer segment does not source inventory from or sell it into international markets, so it is not directly impacted by tariffs. However, global market uncertainty caused by tariffs can increase commodity costs on safe-haven metals such as gold and silver, which may increase working capital requirements. The Company mitigates increased working capital requirements by monitoring its inventory position and turnover, and maintaining disciplined buying practices to maintain margin. Commercial Segment The commercial segment periodically purchases limited quantities of personal technology assets for resale and replacement parts from international markets. Tariffs may increase costs for original equipment manufacturers, retailers, and parts distributors and, as a result, may require the Company to pay more for the purchase of personal technology assets for resale and replacement parts, thus increasing the Company’s required working capital requirements. The Company mitigates increased working capital requirements by monitoring its inventory position and turnover, maintaining disciplined buying practices, and using optimal domestic and international sales channels to maintain margins. There can be no assurance that the measures we have adopted will be successful in mitigating the aforementioned risks. Our Business Envela serves as a holding company, conducting its operations via subsidiaries engaged in various businesses and activities within the recommerce and recycling sectors. The products and services we offer are delivered by our subsidiaries under their distinct brands, rather than directly by Envela itself. Significant business activities within our reportable segments are detailed below: 31 Table of Contents Consumer Segment Our consumer segment primarily operates in the jewelry industry, specializing in the online and brick-and-mortar sale of authenticated high-end luxury goods, including pre-owned fine jewelry, diamonds and gemstones, luxury watches, along with secondary market bullion. We incorporate recycled diamonds and gemstones into our new designs meaning they were previously set and unset, producing a low-carbon and ethical origin product. The Company caters to consumers seeking environmentally responsible options for engagement rings, wedding bands, and other fine jewelry at accessible prices. Our profound commitment to extending the lifespan of luxury goods stems from our understanding that well-crafted items have an enduring quality, enabling them to maintain their beauty and value as they are passed from one owner to another. Commercial Segment Our commercial segment specializes in the de-manufacturing of end-of-life electronic assets to reclaim commodities and other materials, while also engaging in the ITAD industry. The separated commodities, including metals, plastics, and glass, are sold to downstream processors where they are further processed and reintroduced into new products. ITAD services maximize the residual value of retired IT assets by adhering to a reuse-first philosophy and ensuring equipment is refurbished and re-marketed after data sanitization. The Company offers services that manage the entire lifecycle of technology products to ensure data security, regulatory compliance, and environmental sustainability. We are proud of our role in supporting a circular economy through the responsible reuse and recycling of electronic devices. Segment Activities The Company believes it is well positioned to take advantage of its overall capital structure. Consumer Segment Our strategy is to expand the number of locations we operate by opening new locations throughout the U.S. Likewise, we continue to evaluate opportunities related to complementary product and service offerings for our stores and online business. Commercial Segment Our strategy is to expand both organically and through acquisitions. The Company has taken considerable steps to bolster its management team and operating systems to position itself for growth. Our production facilities are capable of managing the expansion of existing relationships and consolidation of acquisition targets within relative geographic proximity to our existing facilities. ​ 32 Table of Contents Results of Operations Comparison of the Three Months Ended September 30, 2025 and 2024 The following table depicts our disaggregated condensed consolidated statements of income for the three months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2025 ​ 2024 ​ Consumer Commercial Consolidated % of Sales (1) Consumer Commercial Consolidated % of Sales (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales ​ $ 45,068,036 ​ $ 12,321,375 ​ $ 57,389,411 100.0 % $ 33,756,600 ​ $ 13,142,959 ​ $ 46,899,559 100.0 % Cost of goods sold ​ 39,866,966 ​ $ 4,454,515 ​ 44,321,481 77.2 % 29,840,285 ​ 5,595,035 ​ 35,435,320 75.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin ​ 5,201,070 ​ 7,866,860 ​ 13,067,930 22.8 % 3,916,315 ​ 7,547,924 ​ 11,464,239 24.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expenses: ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ 3,827,882 ​ 4,565,996 ​ 8,393,878 14.6 % 3,925,981 ​ 5,103,007 ​ 9,028,988 19.3 % Depreciation and amortization ​ 203,349 ​ 269,175 ​ 472,524 0.8 % 150,657 ​ 264,122 ​ 414,779 0.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ 4,031,231 ​ 4,835,171 ​ 8,866,402 15.4 % 4,076,638 ​ 5,367,129 ​ 9,443,767 20.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ​ 1,169,839 ​ 3,031,689 ​ 4,201,528 7.3 % (160,323) ​ 2,180,795 ​ 2,020,472 4.3 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense): ​ ​ ​ ​ ​ ​ ​ Other income ​ 104,863 ​ 128,779 ​ 233,642 0.4 % 62,502 ​ 277,849 ​ 340,351 0.7 % Interest expense ​ (53,429) ​ (52,328) ​ (105,757) (0.2) % (51,486) ​ (54,653) ​ (106,139) (0.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ 1,221,273 ​ 3,108,140 ​ 4,329,413 7.5 % (149,307) ​ 2,403,991 ​ 2,254,684 4.8 % Income tax (expense) benefit ​ (274,139) ​ (698,354) ​ (972,493) (1.7) % 122,464 ​ ​ (692,109) ​ (569,645) (1.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 947,134 ​ $ 2,409,786 ​ $ 3,356,920 5.8 % $ (26,843) ​ $ 1,711,882 ​ $ 1,685,039 3.6 % (1) The “% of Sales” figures present the proportion of each line item to the total consolidated sales for the respective period, which management believes is relevant to an assessment and understanding of our financial condition and results of operations. Due to rounding, percentages presented may not add up precisely to the totals provided. The individual segments reported the following for the three months ended September 30, 2025 and 2024: Sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Change ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 57,389,411 ​ $ 46,899,559 ​ $ 10,489,852 22.4 % % of consolidated sales ​ 100.0 % 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 45,068,036 ​ $ 33,756,600 ​ $ 11,311,436 33.5 % % of consumer sales ​ 100.0 % 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 12,321,375 ​ $ 13,142,959 ​ $ (821,584) (6.3) % % of commercial sales ​ 100.0 % 100.0 % ​ ​ Consolidated Sales increased by $10,489,852, or 22.4%, during the three months ended September 30, 2025, to $57,389,411, as compared to $46,899,559 during the same period in Fiscal 2024. 33 Table of Contents Consumer Segment Sales in the consumer segment increased by $11,311,436, or 33.5%, during the three months ended September 30, 2025, to $45,068,036, as compared to $33,756,600 during the same period in Fiscal 2024. The change was primarily attributed to higher transaction volumes, supported by record precious metals pricing, but was partially offset by moderate softness in certain customer-facing verticals. Overall performance benefited from favorable supply flows and strong customer engagement, when compared to the same period in Fiscal 2024. ​ Commercial Segment Sales in the commercial segment decreased by $821,584, or 6.3%, during the three months ended September 30, 2025, to $12,321,375, as compared to $13,142,959 during the same period in Fiscal 2024. The change was primarily attributed to less revenue from: ITAD revenue share settlements, electronic scrap grades and associated recoveries, and personal technology assets sourced from our trade-in programs, which were partially offset by increased service revenue from product returns and secured processing of end-of-life assets. Our overall service-related verticals continue to grow and become a greater component of our revenue mix. Cost of Goods Sold ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Change ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 44,321,481 ​ $ 35,435,320 ​ $ 8,886,161 25.1 % % of consolidated sales ​ 77.2 % 75.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 39,866,966 ​ $ 29,840,285 ​ $ 10,026,681 33.6 % % of consumer sales ​ 88.5 % 88.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 4,454,515 ​ $ 5,595,035 ​ $ (1,140,520) (20.4) % % of commercial sales ​ 36.2 % 42.6 % ​ ​ Consolidated Cost of goods sold increased by $8,886,161, or 25.1%, during the three months ended September 30, 2025, to $44,321,481, as compared to $35,435,320 during the same period in Fiscal 2024. Consumer Segment Cost of goods sold in the consumer segment increased by $10,026,681, or 33.6%, during the three months ended September 30, 2025, to $39,866,966, as compared to $29,840,285 during the same period in Fiscal 2024. The change was primarily attributed to the aforementioned higher sales volumes and rising gold prices compared to the same period in Fiscal 2024. Cost of goods sold as a percentage of sales was 88.5% during the three months ended September 30, 2025, as compared to 88.4% during the three months ended September 30, 2024. The change was immaterial, indicating a similar impact of product mix compared to the same period in Fiscal 2024. Commercial Segment Cost of goods sold in the commercial segment decreased by $1,140,520, or 20.4%, during the three months ended September 30, 2025, to $4,454,515, as compared to $5,595,035 during the same period in Fiscal 2024. The change was primarily attributed to the aforementioned impact from less ITAD revenue share settlements and incrementally from electronic scrap grades and associated recoveries along with personal technology assets sourced from our trade-in programs. 34 Table of Contents Cost of goods sold as a percentage of sales was 36.2% during the three months ended September 30, 2025, as compared to 42.6% during the three months ended September 30, 2024. The change was primarily attributed to favorable margins from our ITAD revenue share settlements, albeit on lower overall sales, and was partially offset by less favorable margins from electronic scrap grades and associated recoveries. Our margins on the sale of personal technology assets were stable compared to the same period in Fiscal 2024. Gross Margin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Change ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 13,067,930 ​ $ 11,464,239 ​ $ 1,603,691 14.0 % % of consolidated sales ​ 22.8 % 24.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 5,201,070 ​ $ 3,916,315 ​ $ 1,284,755 32.8 % % of consumer sales ​ 11.5 % 11.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 7,866,860 ​ $ 7,547,924 ​ $ 318,936 4.2 % % of commercial sales ​ 63.8 % 57.4 % ​ ​ Consolidated Gross margin increased by $1,603,691, or 14.0%, during the three months ended September 30, 2025, to $13,067,930, as compared to $11,464,239 during the same period in Fiscal 2024. Consumer Segment Gross margin in the consumer segment increased by $1,284,755, or 32.8%, during the three months ended September 30, 2025, to $5,201,070, as compared to $3,916,315 during the same period in Fiscal 2024. The net impact of the aforementioned increase in sales of $11,311,436 and increase in cost of goods sold of $10,026,681 resulted in the $1,284,755 increase in gross margin. Commercial Segment Gross margin in the commercial segment increased by $318,936, or 4.2%, during the three months ended September 30, 2025, to $7,866,860, as compared to $7,547,924 during the same period in Fiscal 2024. The net impact of the aforementioned decrease in sales of $821,584 and decrease in cost of goods sold $1,140,520 resulted in the $318,936 increase in gross margin. Selling, General and Administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Change ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 8,393,878 ​ $ 9,028,988 ​ $ (635,110) (7.0) % % of consolidated sales ​ 14.6 % 19.3 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 3,827,882 ​ $ 3,925,981 ​ $ (98,099) (2.5) % % of consumer sales ​ 8.5 % 11.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 4,565,996 ​ $ 5,103,007 ​ $ (537,011) (10.5) % % of commercial sales ​ 37.1 % 38.8 % ​ ​ 35 Table of Contents Consolidated Selling, general and administrative expense decreased by $635,110, or 7.0%, during the three months ended September 30, 2025, to $8,393,878, as compared to $9,028,988 during the same period in Fiscal 2024. Consumer Segment Selling, general and administrative expense in the consumer segment decreased by $98,099, or 2.5%, during the three months ended September 30, 2025, to $3,827,882, as compared to $3,925,981 during the same period in Fiscal 2024. The change was primarily attributed to a reduction in costs associated with store onboarding and initial marketing that occurred in the same period in Fiscal 2024 along with select reductions in production human-capital costs, partially offset by full cost structures related to our new stores. Commercial Segment Selling, general and administrative expense in the commercial segment decreased by $537,011, or 10.5%, during the three months ended September 30, 2025, to $4,565,996, as compared to $5,103,007 during the same period in Fiscal 2024. The change was primarily attributed to a reduction in variable-cost production expenses, of which human-capital costs were a significant component, along with a reduction in lease costs from the closure of our Arizona ITAD facility, which occurred in the latter part of the second quarter of Fiscal 2025. We began diverting inbound asset flow prior to closure, and we fully absorbed the asset flow from the former Arizona ITAD facility into our Texas ITAD facility in the third quarter of 2025. Depreciation and Amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, Change ​ ​ 2025 2024 ​ Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 472,524 ​ $ 414,779 ​ $ 57,745 ​ 13.9 % % of consolidated sales ​ 0.8 % 0.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 203,349 ​ $ 150,657 ​ $ 52,692 35.0 % % of consumer sales ​ 0.5 % 0.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 269,175 ​ $ 264,122 ​ $ 5,053 1.9 % % of commercial sales ​ 2.2 % 2.0 % ​ ​ Consolidated Depreciation and amortization expense increased by $57,745, or 13.9%, during the three months ended September 30, 2025, to $472,524, as compared to $414,779 during the same period in Fiscal 2024. Consumer Segment Depreciation and amortization expense in the consumer segment increased by $52,692, or 35.0%, during the three months ended September 30, 2025, to $203,349, as compared to $150,657 during the same period in Fiscal 2024. The change was primarily attributed to the depreciation of assets placed into service related to our new retail stores. Commercial Segment Depreciation and amortization expense in the commercial segment increased by $5,053, or 1.9%, during the three months ended September 30, 2025, to $269,175, as compared to $264,122 during the same period in Fiscal 2024. The change was primarily attributed to the allocation of corporate depreciation and amortization expense. 36 Table of Contents Other Income (Expense) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, Change ​ ​ 2025 2024 ​ Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 233,642 ​ $ 340,351 ​ $ (106,709) (31.4) % % of consolidated sales ​ 0.4 % 0.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 104,863 ​ $ 62,502 ​ $ 42,361 67.8 % % of consumer sales ​ 0.2 % 0.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 128,779 ​ $ 277,849 ​ $ (149,070) (53.7) % % of commercial sales ​ 1.0 % 2.1 % ​ ​ ​ Consolidated Other income decreased by $106,709, or 31.4%, during the three months ended September 30, 2025, to $233,642, as compared to $340,351 during the same period in Fiscal 2024. Consumer Segment Other income in the consumer segment increased by $42,361, or 67.8%, during the three months ended September 30, 2025, to $104,863, as compared to $62,502 during the same period in Fiscal 2024. The change was primarily attributable to the proportionate share of earned dividend and interest income. While our earned interest rate has reduced, our overall cash balances are higher, resulting in incrementally higher earned income on excess cash balances. Excess cash balances are now aggregated at the corporate level to optimize earnings as opposed to being held at the segment level. This resulted in higher segment earned income on excess cash balances. Further, the same period in Fiscal 2024 included the proportionate share of income from a settlement for repairs related to our corporate headquarters. The impact of dividend and interest income is referenced below. Dividend income comprised $42,186 and $0 of other income during the three months ended September 30, 2025 and 2024, respectively. Interest income comprised $63,301 and $2 of other income during the three months ended September 30, 2025 and 2024, respectively. Commercial Segment Other income in the commercial segment decreased by $149,070, or 53.7%, during the three months ended September 30, 2025, to $128,779, as compared to $277,849 during the same period in Fiscal 2024. The change was primarily attributable to the proportionate share of earned dividend and interest income. While our earned interest rate has reduced, our overall cash balances are higher, resulting in incrementally higher earned income on excess cash balances. Excess cash balances are now aggregated at the corporate level to optimize earnings as opposed to being held at the segment level. This resulted in lower segment earned income on excess cash balances. Further, the same period in Fiscal 2024 included the proportionate share of income from a settlement for repairs related to our corporate headquarters. The impact of dividend and interest income is referenced below. Dividend income comprised $43,029 and $0 other income during the three months ended September 30, 2025, and 2024, respectively. Interest income comprised $65,646 and $203,251 of other income during the three months ended September 30, 2025 and 2024, respectively. 37 Table of Contents Interest Expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, Change ​ ​ 2025 2024 ​ Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ (105,757) ​ $ (106,139) ​ $ 382 (0.4) % % of consolidated sales ​ (0.2) % (0.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ (53,429) ​ $ (51,486) ​ $ (1,943) 3.8 % % of consumer sales ​ (0.1) % (0.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ (52,328) ​ $ (54,653) ​ $ 2,325 (4.3) % % of commercial sales ​ (0.4) % (0.4) % ​ ​ Consolidated Interest expense decreased by $382, or 0.4%, during the three months ended September 30, 2025, to $105,757, as compared to $106,139 during the same period in Fiscal 2024. Consumer Segment Interest expense in the consumer segment increased by $1,943, or 3.8%, during the three months ended September 30, 2025, to $53,429, as compared to $51,486 during the same period in Fiscal 2024. There was no material change in debt amortization from the same period in Fiscal 2024, and as such, no discussion point. Commercial Segment Interest expense in the commercial segment decreased by $2,325, or 4.3%, during the three months ended September 30, 2025, to $52,328, as compared to $54,653 during the same period in Fiscal 2024. There was no material change in debt amortization from the same period in Fiscal 2024, and as such, no discussion point. Income Tax (Expense) Benefit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, Change ​ ​ 2025 2024 ​ Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ (972,493) ​ $ (569,645) ​ $ (402,848) 70.7 % % of consolidated sales ​ (1.7) % (1.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ (274,139) ​ $ 122,464 ​ $ (396,603) NM ​ % of consumer sales ​ (0.6) % 0.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ (698,354) ​ $ (692,109) ​ $ (6,245) 0.9 % % of commercial sales ​ (5.7) % (5.3) % ​ ​ NM – Not Meaningful ​ Consolidated Income tax expense increased by $402,848, or 70.7%, during the three months ended September 30, 2025, to $972,493, as compared to $569,645 during the same period in Fiscal 2024. Currently, the Company has a deferred tax liability reflecting a future obligation to pay taxes. The Company has a federal tax rate of approximately 21.0%, in addition to other state and local taxes, on net income. The effective income tax rate was 22.5% and 25.3% for the three months ended September 30, 2025 and 2024, respectively. Differences between our effective income tax rate and the U.S. federal statutory rate are the result of state taxes and non-deductible expenses, as was the Company’s case for the three months ended September 30, 2025 and 2024. 38 Table of Contents Net Income (Loss) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, Change ​ ​ 2025 2024 ​ Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 3,356,920 ​ $ 1,685,039 ​ $ 1,671,881 99.2 % % of consolidated sales ​ 5.8 % 3.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 947,134 ​ $ (26,843) ​ $ 973,977 NM ​ % of consumer sales ​ 2.1 % (0.1) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 2,409,786 ​ $ 1,711,882 ​ $ 697,904 40.8 % % of commercial sales ​ 19.6 % 13.0 % ​ ​ NM – Not Meaningful Consolidated Net income increased by $1,671,881, or 99.2%, during the three months ended September 30, 2025, to $3,356,920, as compared to $1,685,039 during the same period in Fiscal 2024. Refer to the aforementioned attributes discussed within the Comparison of the Three Months Ended September 30, 2025 and 2024 for further details. Consumer Segment Net income (loss) increased in the consumer segment by $973,977, during the three months ended September 30, 2025, to net income of $947,134, as compared to net loss of $26,843 during the same period in Fiscal 2024. Refer to the aforementioned attributes discussed within the Comparison of the Three Months Ended September 30, 2025 and 2024 for further details. Commercial Segment Net income increased in the commercial segment by $697,904, or 40.8%, during the three months ended September 30, 2025, to $2,409,786, as compared to $1,711,882 during the same period in Fiscal 2024. Refer to the aforementioned attributes discussed within the Comparison of the Three Months Ended September 30, 2025 and 2024 for further details. Earnings Per Share The following table depicts the Company’s earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, Change ​ ​ 2025 2024 ​ Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 0.13 ​ $ 0.06 ​ $ 0.07 116.7 % ​ Consolidated Basic and diluted earnings per share attributable to holders of our Common Stock increased by $0.07, or 116.7%, during the three months ended September 30, 2025, to $0.13, as compared to $0.06 during the same period in Fiscal 2024. 39 Table of Contents Comparison of the nine months ended September 30, 2025 and 2024 The following table depicts our disaggregated condensed consolidated statements of income for the nine months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ 2025 2024 ​ ​ Consumer Commercial Consolidated % of Sales (1) Consumer Commercial Consolidated % of Sales (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sales ​ $ 125,012,398 ​ $ 35,509,675 ​ $ 160,522,073 100.0 % $ 93,972,645 ​ $ 38,081,696 ​ $ 132,054,341 100.0 % Cost of goods sold ​ 110,942,439 ​ 12,155,757 ​ 123,098,196 76.7 % 82,485,812 ​ 16,394,149 ​ 98,879,961 74.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross margin ​ 14,069,959 ​ 23,353,918 ​ 37,423,877 23.3 % 11,486,833 ​ 21,687,547 ​ 33,174,380 25.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expenses: ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative ​ 11,451,215 ​ 14,018,992 ​ 25,470,207 15.9 % 11,186,939 ​ 14,597,073 ​ 25,784,012 19.5 % Depreciation and amortization ​ 579,585 ​ 798,691 ​ 1,378,276 0.9 % 356,851 ​ 763,760 ​ 1,120,611 0.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ​ 12,030,800 ​ 14,817,683 ​ 26,848,483 16.8 % 11,543,790 ​ 15,360,833 ​ 26,904,623 20.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ​ 2,039,159 ​ 8,536,235 ​ 10,575,394 6.5 % (56,957) ​ 6,326,714 ​ 6,269,757 4.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other income (expense): ​ ​ ​ ​ ​ ​ ​ Other income ​ 261,870 ​ 571,628 ​ 833,498 0.5 % 78,510 ​ 725,786 ​ 804,296 0.6 % Interest expense ​ (161,469) ​ (156,837) ​ (318,306) (0.2) % (171,584) ​ (164,550) ​ (336,134) (0.3) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ 2,139,560 ​ 8,951,026 ​ 11,090,586 6.9 % (150,031) ​ 6,887,950 ​ 6,737,919 5.1 % Income tax (expense) benefit ​ (479,961) ​ (2,007,959) ​ (2,487,920) (1.5) % 33,706 ​ (1,614,868) ​ (1,581,162) (1.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ​ $ 1,659,599 ​ $ 6,943,067 ​ $ 8,602,666 5.4 % $ (116,325) ​ $ 5,273,082 ​ $ 5,156,757 3.9 % (1) The “% of Sales” figures present the proportion of each line item to the total consolidated sales for the respective period, which management believes is relevant to an assessment and understanding of our financial condition and results of operations. Due to rounding, percentages presented may not add up precisely to the totals provided. The individual segments reported the following for the nine months ended September 30, 2025 and 2024: Sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Change ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 160,522,073 ​ $ 132,054,341 ​ $ 28,467,732 21.6 % % of consolidated sales ​ 100.0 % 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 125,012,398 ​ $ 93,972,645 ​ $ 31,039,753 33.0 % % of consumer sales ​ 100.0 % 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 35,509,675 ​ $ 38,081,696 ​ $ (2,572,021) (6.8) % % of commercial sales ​ 100.0 % 100.0 % ​ ​ Consolidated Sales increased by $28,467,732 or 21.6%, during the nine months ended September 30, 2025, to $160,522,073, as compared to $132,054,341 during the same period in Fiscal 2024. 40 Table of Contents Consumer Segment Sales in the consumer segment increased by $31,039,753, or 33.0%, during the nine months ended September 30, 2025, to $125,012,398, as compared to $93,972,645 during the same period in Fiscal 2024. The change was primarily attributed to the stronger volumes and pricing on precious metals transactions that have been consistent throughout Fiscal 2025 as well as stronger contributions from our historical and new retail store footprint. Commercial Segment Sales in the commercial segment decreased by $2,572,021, or 6.8%, during the nine months ended September 30, 2025, to $35,509,675, as compared to $38,081,696 during the same period in Fiscal 2024. The change was primarily attributed to less revenue from: ITAD revenue share settlements, electronic scrap grades and associated recoveries, and personal technology assets sourced from our trade-in programs, which were partially offset by increased service revenue from our product returns and secured processing of end-of-life assets. Our overall service-related verticals continue to grow and become a greater component of our revenue mix. The aforementioned impact on sales has been relatively consistent throughout the year, representing a continued shift to a greater proportional share of service revenue in our sales mix. Cost of Goods Sold ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, Change ​ ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 123,098,196 ​ $ 98,879,961 ​ $ 24,218,235 24.5 % % of consolidated sales ​ 76.7 % 74.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 110,942,439 ​ $ 82,485,812 ​ $ 28,456,627 34.5 % % of consumer sales ​ 88.7 % 87.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 12,155,757 ​ $ 16,394,149 ​ $ (4,238,392) (25.9) % % of commercial sales ​ 34.2 % 43.0 % ​ ​ Consolidated Cost of goods sold increased by $24,218,235, or 24.5%, during the nine months ended September 30, 2025, to $123,098,196, as compared to $98,879,961 during the same period in Fiscal 2024. Consumer Segment Cost of goods sold in the consumer segment increased by $28,456,627, or 34.5%, during the nine months ended September 30, 2025, to $110,942,439, as compared to $82,485,812 during the same period in Fiscal 2024. The change was primarily attributed to the aforementioned higher sales volumes and rising gold prices compared to the same period in Fiscal 2024. Cost of goods sold as a percentage of sales was 88.7% during the nine months ended September 30, 2025, as compared to 87.8% during the nine months ended September 30, 2024. The change was primarily attributed to a greater mix of lower margin wholesale precious metals transactions in our overall cost of goods sold and incrementally from product mix at our retail stores. Commercial Segment Cost of goods sold in the commercial segment decreased by $4,238,392, or 25.9%, during the nine months ended September 30, 2025, to $12,155,757, as compared to $16,394,149 during the same period in Fiscal 2024. The change was primarily attributed to the impact from less ITAD revenue share settlements and incrementally from the recognition of costs associated with the sale of trade-in related personal technology assets. While sales decreased on our electronic scrap grades and associated recoveries, it did not correspondingly decrease the recognition of costs as a result of the mix of assets being sold. 41 Table of Contents Cost of goods sold as a percentage of sales was 34.2% during the nine months ended September 30, 2025, as compared to 43.0% during the nine months ended September 30, 2024. The change was primarily attributed to favorable margins on ITAD revenue share settlements and trade-in product mix, which was partially offset by lower margins associated with sales associated with our sales of electronic waste and associated recoveries. Gross Margin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Change ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 37,423,877 ​ $ 33,174,380 ​ $ 4,249,497 12.8 % % of consolidated sales ​ 23.3 % 25.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 14,069,959 ​ $ 11,486,833 ​ $ 2,583,126 22.5 % % of consumer sales ​ 11.3 % 12.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 23,353,918 ​ $ 21,687,547 ​ $ 1,666,371 7.7 % % of commercial sales ​ 65.8 % 57.0 % ​ ​ Consolidated Gross margin increased by $4,249,497, or 12.8%, during the nine months ended September 30, 2025, to $37,423,877, as compared to $33,174,380 during the same period in Fiscal 2024. Consumer Segment Gross margin in the consumer segment increased by $2,583,126, or 22.5%, during the nine months ended September 30, 2025, to $14,069,959, as compared to $11,486,833 during the same period in Fiscal 2024. The net impact of the aforementioned increase in sales of $31,039,753 and increase in cost of goods sold of $28,456,627 resulted in the $2,583,126 increase in gross margin. Commercial Segment Gross margin in the commercial segment increased by $1,666,371, or 7.7%, during the nine months ended September 30, 2025, to $23,353,918, as compared to $21,687,547 during the same period in Fiscal 2024. The net impact of the aforementioned decrease in sales of $2,572,021 and decrease in cost of goods sold of $4,238,392 resulted in the $1,666,371 increase in gross margin. Selling, General and Administrative ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Change ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 25,470,207 ​ $ 25,784,012 ​ $ (313,805) (1.2) % % of consolidated sales ​ 15.9 % 19.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 11,451,215 ​ $ 11,186,939 ​ $ 264,276 2.4 % % of consumer sales ​ 9.2 % 11.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 14,018,992 ​ $ 14,597,073 ​ $ (578,081) (4.0) % % of commercial sales ​ 39.5 % 38.3 % ​ ​ Consolidated Selling, general and administrative expense decreased by $313,805, or 1.2%, during the nine months ended September 30, 2025, to $25,470,207, as compared to $25,784,012 during the same period in Fiscal 2024. 42 Table of Contents Consumer Segment Selling, general and administrative expense in the consumer segment increased by $264,276, or 2.4%, during the nine months ended September 30, 2025, to $11,451,215, as compared to $11,186,939 during the same period in Fiscal 2024. The change was primarily attributed to the full cost structures related to our new stores and partially offset by a reduction in costs associated with store onboarding and initial marketing that occurred in the same period in Fiscal 2024 along with select reductions in production human-capital costs. Commercial Segment Selling, general and administrative expense in the commercial segment decreased by $578,081, or 4.0%, during the nine months ended September 30, 2025, to $14,018,992, as compared to $14,597,073 during the same period in Fiscal 2024. The change was primarily attributed to a reduction in variable-cost production expenses of which human-capital costs were a significant component along with a reduction in lease costs from the closure of our Arizona ITAD facility, which occurred in the later part of the second quarter of Fiscal 2025. We began diverting inbound asset flow prior to closure and we fully absorbed the asset flow from the former Arizona ITAD facility into our Texas ITAD facility in the third quarter of 2025. Depreciation and Amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Change ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 1,378,276 ​ $ 1,120,611 ​ $ 257,665 23.0 % % of consolidated sales ​ 0.9 % 0.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 579,585 ​ $ 356,851 ​ $ 222,734 62.4 % % of consumer sales ​ 0.5 % 0.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 798,691 ​ $ 763,760 ​ $ 34,931 4.6 % % of commercial sales ​ 2.2 % 2.0 % ​ ​ Consolidated Depreciation and amortization expense increased by $257,665, or 23.0%, during the nine months ended September 30, 2025, to $1,378,276, as compared to $1,120,611 during the same period in Fiscal 2024. Consumer Segment Depreciation and amortization expense in the consumer segment increased by $222,734, or 62.4%, during the nine months ended September 30, 2025, to $579,585, as compared to $356,851 during the same period in Fiscal 2024. The change was primarily attributed to the depreciation of assets placed into service related to our new retail stores. Commercial Segment Depreciation and amortization expense in the commercial segment increased by $34,931, or 4.6%, during the nine months ended September 30, 2025, to $798,691, as compared to $763,760 during the same period in Fiscal 2024. There was no material impact from assets capitalized or reaching maturity in each comparative period, and as such, no discussion point. 43 Table of Contents Other Income (Expense) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Change ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ 833,498 ​ $ 804,296 ​ $ 29,202 ​ 3.6 % % of consolidated sales ​ 0.5 % 0.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 261,870 ​ $ 78,510 ​ $ 183,360 233.5 % % of consumer sales ​ 0.2 % 0.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 571,628 ​ $ 725,786 ​ $ (154,158) (21.2) % % of commercial sales ​ 1.6 % 1.9 % ​ ​ Consolidated Other income increased by $29,202, or 3.6%, during the nine months ended September 30, 2025, to $833,498, as compared to $804,296 during the same period in Fiscal 2024. Consumer Segment Other income in the consumer segment increased by $183,360, or 233.5%, during the nine months ended September 30, 2025, to $261,870, as compared to $78,510 during the same period in Fiscal 2024. The change was primarily attributable to the proportionate share of earned dividend and interest income. While our earned interest rate has reduced, our overall cash balances are higher, resulting in incrementally higher earned income on excess cash balances. Excess cash balances are now aggregated at the corporate level to optimize earnings as opposed to being held at the segment level. This resulted in higher segment earned income on excess cash balances. The segment also received an employee retention credit in Fiscal 2025, and Fiscal 2024 included the proportionate share of income from a settlement for repairs related to our corporate headquarters. The impact of dividend and interest income is referenced below. Dividend income comprised $51,069 and $0 of other income during the nine months ended September 30, 2025 and 2024, respectively. Interest income comprised $114,339 and $10 of other income during the nine months ended September 30, 2025 and 2024, respectively. Commercial Segment Other income in the commercial segment decreased by $154,158, or 21.2%, during the nine months ended September 30, 2025, to $571,628, as compared to $725,786 during the same period in Fiscal 2024. The change was primarily attributable to the proportionate share of earned dividend and interest income. While our earned interest rate has reduced, our overall cash balances are higher, resulting in incrementally higher earned income on excess cash balances. Excess cash balances are now aggregated at the corporate level to optimize earnings as opposed to being held at the segment level. This resulted in lower segment earned income on excess cash balances. Further, the same period in Fiscal 2024 included the proportionate share of income from a settlement for repairs related to our corporate headquarters. The impact of dividend and interest income is referenced below. Dividend income comprised $172,596 and $0 of other income during the nine months ended September 30, 2025 and 2024, respectively. Interest income comprised $340,404 and $599,774 of other income during the nine months ended September 30, 2025 and 2024, respectively. 44 Table of Contents Interest Expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Change ​ 2025 2024 Amount % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated ​ $ (318,306) ​ $ (336,134) ​ $ 17,828 ​ (5.3) % % of consolidated sales ​ (0.2) % (0.3) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ (161,469) ​ $ (171,584) ​ $ 10,115 (5.9) % % of consumer sales ​ (0.1) % (0.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ (156,837) ​ $ (164,550) ​ $ 7,713 (4.7) % % of commercial sales ​ (0.4) % (0.4) % ​ ​ Consolidated Interest expense decreased by $17,828, or 5.3%, during the nine months ended September 30, 2025, to $318,306, as compared to $336,134 during the same period in Fiscal 2024. Consumer Segment Interest expense in the consumer segment decreased by $10,115, or 5.9%, during the nine months ended September 30, 2025, to $161,469, as compared to $171,584 during the same period in Fiscal 2024. There was no material change in debt amortization from the same period in Fiscal 2024, and as such, no discussion point. Commercial Segment Interest expense in the commercial segment decreased by $7,713, or 4.7%, during the nine months ended September 30, 2025, to $156,837, as compared to $164,550 during the same period in Fiscal 2024. There was no material change in debt amortization from the same period in Fiscal 2024, and as such, no discussion point. Income Tax (Expense) Benefit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Change ​ ​ 2025 ​ 2024 ​ Amount ​ % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ (2,487,920) $ (1,581,162) $ (906,758) 57.3 % % of consolidated sales ​ (1.5) % (1.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ (479,961) ​ $ 33,706 ​ $ (513,667) NM ​ % of consumer sales ​ (0.4) % 0.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ (2,007,959) ​ $ (1,614,868) ​ $ (393,091) 24.3 % % of commercial sales ​ (5.7) % (4.2) % ​ ​ NM – Not Meaningful ​ Consolidated Income tax expense increased by $906,758, or 57.3%, during the nine months ended September 30, 2025, to $2,487,920, as compared to $1,581,162 during the same period in Fiscal 2024. Currently, the Company has a deferred tax liability reflecting a future obligation to pay taxes. The Company has a federal tax rate of approximately 21.0%, in addition to other state and local taxes, on net income. The effective income tax rate was 22.4% and 23.5% for the nine months ended September 30, 2025 and 2024, respectively. Differences between our effective income tax rate and the U.S. federal statutory rate are the result of state taxes and non-deductible expenses, as was the Company’s case for the nine months ended September 30, 2025 and 2024. 45 Table of Contents Net Income (Loss) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Change ​ ​ 2025 ​ 2024 ​ Amount ​ % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ 8,602,666 $ 5,156,757 $ 3,445,909 66.8 % % of consolidated sales ​ 5.4 % 3.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consumer ​ $ 1,659,599 ​ $ (116,325) ​ $ 1,775,924 NM ​ % of consumer sales ​ 1.3 % (0.1) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial ​ $ 6,943,067 ​ $ 5,273,082 ​ $ 1,669,985 31.7 % % of commercial sales ​ 19.6 % 13.8 % ​ ​ NM – Not Meaningful Consolidated Net income increased by $3,445,909, or 66.8%, during the nine months ended September 30, 2025, to $8,602,666, as compared to $5,156,757 during the same period in Fiscal 2024. Consumer Segment Net income (loss) increased in the consumer segment by $1,775,924, during the nine months ended September 30, 2025, to net income of $1,659,599, as compared to net loss of $116,325 during the same period in Fiscal 2024. Refer to the aforementioned attributes discussed within the Comparison of the Nine Months Ended September 30, 2025 and 2024 for further details. Commercial Segment Net income increased in the commercial segment by $1,669,985, or 31.7%, during the nine months ended September 30, 2025, to $6,943,067, as compared to $5,273,082 during the same period in Fiscal 2024. Refer to the aforementioned attributes discussed within the Comparison of the Nine Months Ended September 30, 2025 and 2024 for further details. Earnings Per Share The following table depicts the Company’s earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Change ​ ​ 2025 ​ 2024 ​ Amount ​ % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Consolidated $ 0.33 $ 0.20 $ 0.13 65.0 % ​ Consolidated Basic and diluted earnings per share attributable to holders of our Common Stock increased by $0.13, or 65.0%, during the nine months ended September 30, 2025, to $0.33, as compared to $0.20 during the same period in Fiscal 2024. 46 Table of Contents Non-U.S. GAAP Financial Measures Within this management discussion and analysis, we use supplemental measures of our financial performance, which are derived from our consolidated financial information, but which are not presented in our consolidated financial statements prepared in accordance with U.S. GAAP. When evaluated in conjunction with U.S. GAAP financial measures, the Company believes that these non-U.S. GAAP financial measures add meaningful insight into our financial position, results of operations, liquidity, and ability to meet financial obligations. These non-U.S. GAAP financial measures should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with U.S. GAAP. Each of these non-U.S. GAAP financial measures is not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure for comparing performance among different companies. The Company also presents certain non-U.S. GAAP financial measures and its nearest financial measure utilizing U.S. GAAP for the trailing four quarters period ended September 30, 2025. Management considers the trailing four quarters period ended September 30, 2025, to be helpful in understanding historical financial results, trends, and the calculation of leverage ratios. The non-U.S. GAAP and U.S. GAAP financial measures for the trailing four quarters period ended September 30, 2025, are compared against the most recent fiscal period ended December 31, 2024, which is the nearest twelve-month reporting period under U.S. GAAP. These financial measure comparisons, along with comparisons utilizing three- and nine-month periods for non-U.S. GAAP and its nearest financial measure utilizing U.S. GAAP may differ materially from those reported for the fiscal period ended December 31, 2025. We have included the definitions of our non-U.S. GAAP financial measures and reconciliations to the most comparable U.S. GAAP financial measures in the following tables below. Adjusted EBITDA and Adjusted EBITDAR Adjusted EBITDA is defined as the sum of (i) net income (loss) of the Company, adjusted for additions (deductions) of (ii) interest expense, (iii) other (income) expense, (iv) income tax expense (benefit), and (v) depreciation and amortization. Management considers Adjusted EBITDA to be a key financial measure to assess our overall operating performance. Adjusted EBITDAR is defined as (i) Adjusted EBITDA plus (ii) minimum fixed rent expense for properties occupied under operating leases. Management considers Adjusted EBITDAR to be a key financial measure to assess our overall operating performance, excluding the impact of variability in leasing methods and capital structures. These measures are also inputs into the Company’s leverage ratios. The Company’s Adjusted EBITDA and Adjusted EBITDAR are considered non-U.S. GAAP financial measures and are not calculated in accordance with, or preferable to, “net income” or other financial measures of operating performance calculated in accordance with U.S. GAAP. 47 Table of Contents The following table reconciles Adjusted EBITDA and Adjusted EBITDAR to the most comparable U.S. GAAP financial measure for the three months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2025 ​ 2024 ​ Consumer Commercial Consolidated Consumer Commercial Consolidated Adjusted EBITDA Reconciliation: ​ ​ ​ ​ ​ Net income (loss) ​ $ 947,134 ​ $ 2,409,786 ​ $ 3,356,920 ​ $ (26,843) ​ $ 1,711,882 ​ $ 1,685,039 Addition (deduction): ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 203,349 ​ 269,175 ​ 472,524 ​ 150,657 ​ 264,122 ​ 414,779 Other income ​ (104,863) ​ (128,779) ​ (233,642) ​ (62,502) ​ (277,849) ​ (340,351) Interest expense ​ 53,429 ​ 52,328 ​ 105,757 ​ 51,486 ​ 54,653 ​ 106,139 Income tax expense (benefit) ​ 274,139 ​ 698,354 ​ 972,493 ​ (122,464) ​ 692,109 ​ 569,645 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,373,188 ​ $ 3,300,864 ​ $ 4,674,052 ​ $ (9,666) ​ $ 2,444,917 ​ $ 2,435,251 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDAR Reconciliation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDA ​ $ 1,373,188 ​ $ 3,300,864 ​ $ 4,674,052 ​ $ (9,666) ​ $ 2,444,917 ​ $ 2,435,251 Addition: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rent expense (1) ​ ​ 286,594 ​ ​ 343,992 ​ ​ 630,586 ​ ​ 200,220 ​ ​ 339,654 ​ ​ 539,874 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 1,659,782 ​ $ 3,644,856 ​ $ 5,304,638 ​ $ 190,554 ​ $ 2,784,571 ​ $ 2,975,125 (1) The table below depicts the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable U.S. GAAP financial measure for the three months ended September 30, 2025, and September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2025 ​ 2024 ​ ​ Consumer Commercial Consolidated ​ Consumer Commercial Consolidated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total lease costs, per ASC 842 ​ $ 350,311 ​ $ 421,413 ​ $ 771,724 ​ $ 298,880 ​ $ 547,722 ​ $ 846,602 Less: variable lease cost ​ (62,802) ​ ​ (40,880) ​ (103,682) ​ (56,433) ​ ​ (162,320) ​ (218,753) Less: short-term lease cost ​ ​ (915) ​ ​ (36,541) ​ ​ (37,456) ​ ​ (42,227) ​ ​ (45,748) ​ ​ (87,975) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 286,594 ​ $ 343,992 ​ $ 630,586 ​ $ 200,220 ​ $ 339,654 ​ $ 539,874 ​ ​ 48 Table of Contents The following table reconciles Adjusted EBITDA and Adjusted EBITDAR to the most comparable U.S. GAAP financial measure for the nine months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2025 ​ 2024 ​ Consumer Commercial Consolidated Consumer Commercial Consolidated Adjusted EBITDA Reconciliation: ​ ​ ​ ​ ​ Net income (loss) ​ $ 1,659,599 ​ $ 6,943,067 ​ $ 8,602,666 ​ $ (116,325) ​ $ 5,273,082 ​ $ 5,156,757 Addition (deduction): ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 579,585 ​ 798,691 ​ 1,378,276 ​ 356,851 ​ 763,760 ​ 1,120,611 Other income ​ (261,870) ​ (571,628) ​ (833,498) ​ (78,510) ​ (725,786) ​ (804,296) Interest expense ​ 161,469 ​ 156,837 ​ 318,306 ​ 171,584 ​ 164,550 ​ 336,134 Income tax expense (benefit) ​ 479,961 ​ 2,007,959 ​ 2,487,920 ​ (33,706) ​ 1,614,868 ​ 1,581,162 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 2,618,744 ​ $ 9,334,926 ​ $ 11,953,670 ​ $ 299,894 ​ $ 7,090,474 ​ $ 7,390,368 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDAR Reconciliation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDA ​ $ 2,618,744 ​ $ 9,334,926 ​ $ 11,953,670 ​ $ 299,894 ​ $ 7,090,474 ​ $ 7,390,368 Addition: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rent expense (1) ​ ​ 830,757 ​ ​ 1,007,875 ​ ​ 1,838,632 ​ ​ 506,245 ​ ​ 1,019,625 ​ ​ 1,525,870 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 3,449,501 ​ $ 10,342,801 ​ $ 13,792,302 ​ $ 806,139 ​ $ 8,110,099 ​ $ 8,916,238 (1) The table below depicts the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable U.S. GAAP financial measure for the nine months ended September 30, 2025, and September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ 2025 ​ 2024 ​ ​ Consumer Commercial Consolidated ​ Consumer Commercial Consolidated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total lease costs, per ASC 842 ​ $ 1,041,296 ​ $ 1,460,590 ​ $ 2,501,886 ​ $ 796,403 ​ $ 1,602,836 ​ $ 2,399,239 Less: variable lease cost ​ (180,671) ​ ​ (343,675) ​ (524,346) ​ (170,206) ​ (439,469) ​ (609,675) Less: short-term lease cost ​ ​ (29,868) ​ ​ (109,040) ​ ​ (138,908) ​ ​ (119,952) ​ ​ (143,742) ​ ​ (263,694) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 830,757 ​ $ 1,007,875 ​ $ 1,838,632 ​ $ 506,245 ​ $ 1,019,625 ​ $ 1,525,870 ​ 49 Table of Contents The following table reconciles Adjusted EBITDA and Adjusted EBITDAR to the most comparable U.S. GAAP financial measure for the trailing four quarters ended September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Trailing Four Quarters Ended ​ Year Ended ​ ​ December 31, March 31, ​ June 30, ​ September 30, September 30, ​ December 31, ​ ​ 2024 2025 ​ 2025 ​ 2025 2025 ​ 2024 Adjusted EBITDA Reconciliation: ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 1,600,302 ​ $ 2,493,347 ​ $ 2,752,399 ​ $ 3,356,920 ​ $ 10,202,968 ​ $ 6,757,059 Addition (deduction): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 431,163 ​ 445,341 ​ 460,411 ​ 472,524 ​ ​ 1,809,439 ​ ​ 1,551,774 Other income ​ (233,386) ​ (205,605) ​ (394,251) ​ (233,642) ​ ​ (1,066,884) ​ ​ (1,037,682) Interest expense ​ 111,249 ​ 106,321 ​ 106,228 ​ 105,757 ​ ​ 429,555 ​ ​ 447,383 Income tax expense ​ 410,959 ​ 724,358 ​ 791,069 ​ 972,493 ​ ​ 2,898,879 ​ ​ 1,992,121 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 2,320,287 ​ $ 3,563,762 ​ $ 3,715,856 ​ $ 4,674,052 ​ $ 14,273,957 ​ $ 9,710,655 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDAR Reconciliation: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDA ​ $ 2,320,287 ​ $ 3,563,762 ​ $ 3,715,856 ​ $ 4,674,052 ​ $ 14,273,957 ​ $ 9,710,655 Addition: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rent expense (1) ​ ​ 579,195 ​ ​ 602,493 ​ ​ 605,553 ​ ​ 630,586 ​ ​ 2,417,827 ​ ​ 2,105,065 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 2,899,482 ​ $ 4,166,255 ​ $ 4,321,409 ​ $ 5,304,638 ​ $ 16,691,784 ​ $ 11,815,720 (1) The table below depicts the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable U.S. GAAP financial measure for the trailing four quarter ended September 30, 2025, and September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Trailing Four Quarters Ended ​ Year Ended ​ December 31, March 31, ​ June 30, ​ September 30, September 30, ​ December 31, ​ ​ 2024 2025 ​ 2025 ​ 2025 2025 ​ 2024 Total lease costs, per ASC 842 ​ $ 861,214 ​ $ 878,336 ​ $ 851,827 ​ $ 771,724 ​ $ 3,363,101 ​ $ 3,260,453 Less: variable lease cost ​ (198,286) ​ (205,581) ​ (215,083) ​ (103,682) ​ (722,632) ​ (807,961) Less: short-term lease cost ​ (83,733) ​ (70,262) ​ (31,191) ​ (37,456) ​ (222,642) ​ (347,427) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 579,195 ​ $ 602,493 ​ $ 605,553 ​ $ 630,586 ​ $ 2,417,827 ​ $ 2,105,065 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA Leverage Ratios The Company’s Debt to Adjusted EBITDA Leverage Ratio is defined as the Company’s (i) Debt Obligations divided by (ii) Adjusted EBITDA. Debt Obligations are defined as the sum of amounts outstanding under notes payable balances. The Company’s Net Debt to Adjusted EBITDA Leverage Ratio is defined as the Company’s (i) Net Debt Obligations divided by (ii) Adjusted EBITDA. Net Debt Obligations are defined as the difference between the Company’s (i) Debt Obligations and (ii) Total Cash. Management considers these financial measures to be helpful in understanding the Company’s ability to service Debt Obligations, excluding and including the impact of Total Cash available to service such obligations. 50 Table of Contents The Company’s Debt to Adjusted Leverage Ratio and Net Debt to Adjusted EBITDA Leverage Ratio are considered non-U.S. GAAP financial measures and are not calculated in accordance with, or preferable to, other financial measures utilized to assess our ability to service “notes payable” in accordance with U.S. GAAP. The Company considers the Debt to Net Income Leverage Ratio defined as (i) Debt Obligations divided by (ii) net income to be the representative financial measure of our ability to service “notes payable” utilizing U.S. GAAP derived financial statement balances and is incorporated into the presentation below. The following table reconciles components of the Debt to Adjusted EBITDA Leverage Ratio and Net Debt to Adjusted EBITDA Leverage Ratio for the trailing four quarters ended September 30, 2025 and for the year ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2025 2024 ​ ​ ​ ​ ​ ​ ​ ​ Debt Obligations (a) $ 12,485,632 ​ $ 13,522,179 ​ Total Cash ​ (24,424,414) ​ (20,609,003) ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Debt Obligations (b) $ (11,938,782) ​ $ (7,086,824) ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (1) (c) $ 10,202,968 ​ $ 6,757,059 ​ Adjusted EBITDA (1) (d) $ 14,273,957 ​ $ 9,710,655 ​ ​ ​ ​ ​ ​ ​ ​ ​ Leverage Ratios ​ ​ ​ ​ ​ ​ ​ Debt to Net Income Leverage: (a) divided by (c) ​ ​ 1.22 x ​ 2.00 x ​ ​ ​ ​ ​ ​ ​ ​ Debt to Adjusted EBITDA Leverage: (a) divided by (d) ​ ​ 0.87 x ​ 1.39 x Net Debt to Adjusted EBITDA Leverage: (b) divided by (d) ​ ​ (0.84) x ​ (0.73) x (1) The presentation of net income and Adjusted EBITDAR for September 30, 2025, represents the total amount of net income and Adjusted EBITDAR for the trailing four quarters ended September 30, 2025. ​ Adjusted Debt to Adjusted EBITDAR Leverage and Adjusted Net Debt to Adjusted EBITDAR Leverage Ratios The Company’s Adjusted Debt to Adjusted EBITDAR Leverage Ratio is defined as the Company’s (i) Adjusted Debt Obligations divided by (ii) Adjusted EBITDAR. Adjusted Debt Obligations are defined as the sum of the Company’s (i) Debt Obligations and (ii) operating lease liabilities. The Company’s Adjusted Net Debt to Adjusted EBITDAR Leverage Ratio is defined as the Company’s (i) Adjusted Net Debt Obligations divided by (ii) Adjusted EBITDAR. Adjusted Net Debt Obligations are defined as the difference between the Company’s (i) Adjusted Debt Obligations and (ii) Total Cash. Management considers these financial measures to be helpful in understanding the Company’s ability to service debt and operating lease obligations, excluding and including the impact of Total Cash available to service such obligations. The Company’s Adjusted Debt to Adjusted EBITDAR Leverage Ratio and Adjusted Net Debt to Adjusted EBITDAR Leverage Ratio are considered non-U.S. GAAP financial measures and are not calculated in accordance with, or preferable to, other financial measures utilized to assess our ability to service “notes payable” and “operating lease liabilities” in accordance with U.S. GAAP. The Company considers the Adjusted Debt to Net Income Leverage Ratio, defined as the sum of (i) Debt Obligations and (ii) operating lease liabilities divided by (iii) net income, to be the representative financial measure of our ability to service “notes payable” and “operating leases” utilizing U.S. GAAP derived financial statement balances and is incorporated into the presentation below. 51 Table of Contents The following table reconciles components of the Adjusted Debt to Adjusted EBITDAR Leverage Ratio and Adjusted Net Debt to Adjusted EBITDAR Leverage Ratio for the trailing four quarters ended September 30, 2025 and for the year ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2025 2024 ​ ​ ​ ​ ​ ​ ​ ​ Debt Obligations ​ $ 12,485,632 ​ $ 13,522,179 ​ Operating lease liabilities ​ 10,478,105 ​ 4,847,894 ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted Debt Obligations (a) $ 22,963,737 ​ $ 18,370,073 ​ Total Cash ​ ​ 24,424,414 ​ ​ 20,609,003 ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted Net Debt Obligations (b) $ (1,460,677) ​ $ (2,238,930) ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (1) (c) $ 10,202,968 ​ $ 6,757,059 ​ Adjusted EBITDAR (1) (d) $ 16,691,784 ​ $ 11,815,720 ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted Leverage Ratios ​ ​ ​ ​ ​ ​ ​ Adjusted Debt to Net Income Leverage: (a) divided by (c) ​ ​ 2.25 x ​ 2.72 x ​ ​ ​ ​ ​ ​ ​ ​ Adjusted Debt to Adjusted EBITDAR Leverage: (a) divided by (d) ​ ​ 1.38 x ​ 1.55 x Adjusted Net Debt to Adjusted EBITDAR Leverage: (b) divided by (d) ​ ​ (0.09) x ​ (0.19) x (1) The presentation of net income and Adjusted EBITDAR for September 30, 2025, represents the total amount of net income and Adjusted EBITDAR for the trailing four quarters ended September 30, 2025. ​ Net Cash Net Cash is defined as the difference between the Company’s (i) cash and cash equivalents (“Total Cash”) and (ii) Debt Obligations. Management considers this financial measure to be helpful in understanding the Company’s liquidity. The Company’s Net Cash is considered a non-U.S. GAAP financial measure and is not calculated in accordance with, or preferable to, “cash and cash equivalents” and amounts outstanding under “notes payable” balances or other financial measures of liquidity calculated in accordance with U.S. GAAP. The following table reconciles Net Cash to its comparable U.S. GAAP financial measures: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2025 2024 ​ ​ ​ ​ ​ ​ ​ Total Cash ​ $ 24,424,414 ​ $ 20,609,003 Less: Debt Obligations ​ (12,485,632) ​ (13,522,179) ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 11,938,782 ​ $ 7,086,824 ​ Free Cash Flow Free Cash Flow is defined as the difference between the Company’s (i) net cash provided by operations (“Operating Cash Flow”) and (ii) Capital Expenditures. Management considers this financial measure to be helpful in understanding the amount of Free Cash Flow that the Company can utilize to meet its financing needs. The Company’s Free Cash Flow is considered a non-U.S. GAAP financial measure and is not calculated in accordance with, or preferable to, “net cash provided by operations” or other financial measures of cash flow available to meet financing needs calculated in accordance with U.S. GAAP. 52 Table of Contents The following table reconciles Free Cash Flow to the comparable U.S. GAAP financial measures for the three months ended September 30, 2025 and September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ 2025 2024 ​ ​ ​ ​ ​ ​ ​ Operating Cash Flow ​ $ 2,403,744 ​ $ 3,447,502 Capital Expenditures ​ (205,963) ​ ​ (1,995,696) ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 2,197,781 ​ $ 1,451,806 ​ The following table reconciles Free Cash Flow to the comparable U.S. GAAP financial measures for the nine months ended September 30, 2025 and September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ 2025 2024 ​ ​ ​ ​ ​ ​ ​ Operating Cash Flow ​ $ 6,126,338 ​ $ 6,449,764 Capital Expenditures ​ (1,088,122) ​ (3,257,717) ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 5,038,216 ​ $ 3,192,047 ​ The following table reconciles Free Cash Flow to the comparable U.S. GAAP financial measures for the trailing four quarters ended September 30, 2025 and for the year ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Trailing Four Quarters Ended ​ Year Ended ​ December 31, March 31, ​ June 30, ​ September 30, September 30, ​ December 31, ​ ​ 2024 2025 ​ 2025 ​ 2025 2025 ​ 2024 Operating Cash Flow ​ $ 3,740,876 ​ $ 1,131,057 ​ $ 2,591,537 ​ $ 2,403,744 ​ $ 9,867,214 ​ $ 10,190,640 Capital Expenditures ​ (500,687) ​ (384,987) ​ (497,172) ​ (205,963) ​ (1,588,809) ​ (3,160,608) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 3,240,189 ​ $ 746,070 ​ $ 2,094,365 ​ $ 2,197,781 ​ $ 8,278,405 ​ $ 7,030,032 ​ Liquidity and Capital Resources The following table summarizes the Company’s condensed consolidated statement of cash flows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ Change ​ ​ 2025 ​ 2024 ​ Amount ​ % Net cash provided by (used in): ​ ​ ​ ​ Operating activities ​ $ 6,126,338 ​ $ 6,449,764 ​ $ (323,426) (5.0) % Investing activities ​ (1,085,472) ​ (3,260,717) ​ ​ 2,175,245 (66.7) % Financing activities ​ (1,225,455) ​ (3,290,701) ​ 2,065,246 (62.8) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash and cash equivalents ​ $ 3,815,411 ​ $ (101,654) ​ $ 3,917,065 NM ​ ​ NM – Not Meaningful Operating Activities Cash flows provided by operations decreased by $323,426, or 5.0%, during the nine months ended September 30, 2025, to $6,126,338, as compared to $6,449,764 during the same period in Fiscal 2024. The decrease in cash provided by operations was primarily attributed to an increase in net income, certain non-cash adjustments to reconcile net income to operating cash flow (as detailed in the condensed consolidated statements of cash flows), and the following significant net 53 Table of Contents changes in cash associated with operating assets and liabilities, from the nine months ended September 30, 2024 to the same period during Fiscal 2025: ● Accounts receivable: a $4,271,963 net increase primarily attributed to our consumer segment, resulting from a large wholesale precious metal receivable being present in the same period in Fiscal 2024, which relieved thereafter. ● Inventories: a $2,566,317 net decrease primarily attributed to our consumer segment, resulting from a lesser increase in inventory in Fiscal 2025 than from that incurred in the same period in Fiscal 2024. In the Fiscal 2024 period, the consumer segment had greater purchases of inventory to support the onboarding of our new stores. ● Prepaid expenses: a $499,581 net increase primarily attributed to our commercial segment, resulting from incurring costs in Fiscal 2025 to obtain a contract, which was partially offset by a reduction in prepaid freight associated with our ITAD revenue share settlements in the same period in Fiscal 2024. ● Accrued expenses: a $1,094,859 net decrease primarily attributed to our commercial segment, resulting from a reduction in liabilities associated with unvouchered inventory in Fiscal 2025, which was partially offset by an increase in accrued state and federal income tax expense held on our corporate ledger in Fiscal 2025. ● Other liabilities: a $2,127,818 net decrease primarily attributed to our consumer segment, resulting from a significant increase in customer deposits in Fiscal 2024, which relieved thereafter. ​ Investing Activities Cash flows (used in) investing activities decreased by $2,175,245, or 66.7%, during the nine months ended September 30, 2025, to $1,085,472, as compared to $3,260,717 during the same period in Fiscal 2024. The decrease in cash (used in) investing activities during the nine months ended September 30, 2025, was primarily impacted by more significant capital being deployed on ERP development, new store build-outs, and an associated real estate purchase for one of our Arizona locations in the same period in Fiscal 2024. Fiscal 2025 expenditures have primarily related to improvements to our corporate headquarters and new store-related improvements. Financing Activities Cash flows (used in) financing activities decreased by $2,065,246, or 62.8%, during the nine months ended September 30, 2025, to $1,225,455, as compared to $3,290,701 during the same period in Fiscal 2024. The decrease in cash (used in) financing activities during the nine months ended September 30, 2025, was primarily due to a reduction in share buybacks during Fiscal 2025. This reduction was partially offset by an increase in payments on notes payable in Fiscal 2025. Capital Resources Although the Company has access to a line of credit our primary source of liquidity and capital resources currently consist of cash generated from our operating activities. We do not anticipate the need to fund our operations via the line of credit and we do not have any amounts drawn as of September 30, 2025 . We have historically renewed, extended, or replaced short-term debt as it matures, and management believes that we will be able to continue to do so in the near future. Capital Expenditures In Fiscal 2025, the Company is focused on optimizing our new store performance, along with the continued focus on growing our Commercial business organically and evaluating opportunities for strategic growth. The Company continuously monitors the deployment of capital and primarily funds capital expenditures through cash flow from operating activities. Where appropriate, the Company may use debt financing on select projects. When this occurs, the Company further evaluates future cash flows of the project to ensure the debt tenure and pay-back period are in alignment, as well as the appropriateness of the rate of return. As of September 30, 2025, the Company had no commitments for capital expenditures. 54 Table of Contents Off-Balance Sheet Arrangements We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to our stockholders. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Because we are a “smaller reporting company,” we are not required to disclose the information required by this item.