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Item 1. Financial Statements

2025-11-04 compared with 2025-08-05 · 204 added, 145 removed, 414 unchanged (46% of the section changed)

3 unchanged sentences

Three Months Ended

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Nine Months Ended

September 27,

September 28,

September 27,

September 28,

$ 191,437,750

9 unchanged sentences

( 3,739,214 )

( 2,661,284 )

Selling and administrative expenses

7 unchanged sentences

( 2,049,655 )

Other income (expense)

Other expenses, net

Income from continuing operations before income taxes

9 unchanged sentences

$ ( 2,750,844 )

(Loss) gain on classification as held for sale

( 23,087,775 )

Income from disposal of discontinued unit

Income tax (expense) benefit

Income (Loss) from discontinued operations

( 23,087,775 )

Income tax benefit (expense)

Net (Loss) income on discontinued operations

$ ( 19,966,243 )

$ ( 21,517,715 )

Net income (loss)

$ ( 15,297,445 )

$ ( 9,842,000 )

Earnings per share from continuing operations:

Earnings (Loss) per share from discontinued operations:

Total earnings per share:

(Loss) earnings per share from discontinued operations:

Total earnings (loss) per share:

Cash dividends per share:

3 unchanged sentences

Three Months Ended

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Other comprehensive income:

Nine Months Ended

September 27,

September 28,

September 27,

September 28,

Net income (loss)

$ ( 15,297,445 )

$ ( 9,842,000 )

Other comprehensive income (loss):

Change in foreign currency translation

Change in fair value of foreign currency swap

Change in pension and postretirement benefit costs, net of taxes:

Change in pension and postretirement benefit costs, net of taxes of:

2025 - $60,963 and $182,888 respectively;

2024 - $71,355 and $214,065 respectively

Total other comprehensive income (loss)

Comprehensive income (loss)

$ ( 15,535,258 )

$ ( 10,063,906 )

Total other comprehensive income

Comprehensive income

See accompanying notes.

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

June 28, 2025

December 28, 2024

September 27,

Current Assets

3 unchanged sentences

2025 - $ 584,372 ;

2024 - $ 530,560

Current portion of notes receivable

11 unchanged sentences

Right of Use Assets

Other Long Term Assets

Total Other Assets

3 unchanged sentences

THE EASTERN COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

June 28, 2025

December 28, 2024

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

September 27,

LIABILITIES AND SHAREHOLDERS’ EQUITY

9 unchanged sentences

Total Current Liabilities

Other long-term liabilities

Operating lease liability, less current portion

3 unchanged sentences

Accrued pension cost

Other long-term liabilities

Total Liabilities

33 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended

June 28, 2025

June 29, 2024

Nine Months Ended

September 27,

September 28,

Operating Activities

Income (Loss) from discontinued operations

Net income (loss)

$ ( 9,842,000 )

Gain (Loss) from discontinued operations

( 21,517,715 )

Income from continuing operations

Adjustments to reconcile net income to net cash provided by operating activities:

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

Reduction in carrying amount of ROU assets

Unrecognized pension and postretirement (benefit) expense

Unrecognized pension and postretirement benefits

Loss on sale of equipment and other assets

4 unchanged sentences

( 11,739,823 )

( 5,266,259 )

Prepaid expenses and other

Accounts payable

( 3,274,997 )

Accrued compensation

7 unchanged sentences

Marketable securities

Business Acquisition

Payments received from notes receivable

Proceeds from sale of discontinued operations

Proceeds from sale of equipment

Purchases of property, plant, and equipment

7 unchanged sentences

( 2,365,500 )

Proceeds(payments) on short term borrowings (revolver)

Financing leases, net

1 unchanged sentence

( 2,975,152 )

( 1,916,130 )

Dividends paid

3 unchanged sentences

( 12,628,155 )

( 3,419,670 )

Discontinued Operations

Cash used in operating activities

Cash used in discontinued operations

Cash provided by operating activities

Cash used in investing activities

Cash provided by discontinued operations

Effect of exchange rate changes on cash

9 unchanged sentences

See accompanying notes

THE EASTERN COMPANY AND SUBSIDIARIES

THE EASTERN COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 28, 2025

September 27, 2025

Note A – Basis of Presentation

7 unchanged sentences

The Company’s fiscal year is a 52-53-week fiscal year ending on the Saturday nearest to December 31.

References in this Quarterly Report on Form 10-Q for the quarterly period ended June 28, 2025 (this “Form 10-Q”) to 2024, the 2024 fiscal year or fiscal 2024 mean the 52-week period ended on December 28, 2024, and references to 2025, the 2025 fiscal year or fiscal 2025 mean the 53-week period ending on January 3, 2026.

References in this Quarterly Report on Form 10-Q for the quarterly period ended September 27, 2025 (this “Form 10-Q”) to 2024, the fiscal year 2024 or fiscal 2024 mean the 52-week period ended on December 28, 2024, and references to 2025, fiscal year 2025 or fiscal 2025 mean the 53-week period ending on January 3, 2026.

In a 52-week fiscal year, each quarter has 13 weeks.

References to the second quarter of 2024, the second fiscal quarter of 2024 or the three months ended June 29, 2024, mean the 13-week period from March 31, 2024 to June 29, 2024.

References to the second quarter of 2025, the second fiscal quarter of 2025 or the three months ended June 28, 2025, mean the 13-week period from March 30, 2025 to June 28, 2025.

References to the first six months of 2024 or the six months ended June 29, 2024 mean the period from December 31, 2023 to June 29, 2024.

References to the first six months of 2025 or the six months ended June 28, 2025 mean the period from December 29, 2024 to June 28, 2025.

In a 53-week fiscal year, the first three quarters each have 13 weeks, and the fourth quarter has 14 weeks.

References to the third quarter of 2024, the third fiscal quarter of 2024 or the three months ended September 28, 2024 mean the 13-week period from June 30, 2024 to September 28, 2024.

References to the third quarter of 2025, the third fiscal quarter of 2025 or the three months ended September 27, 2025, mean the 13-week period from June 29, 2025 to September 27.

References to the first nine months of 2024 or the nine months ended September 28, 2024 mean the period from December 31, 2023 to September 28, 2024.

References to the first nine months of 2025 or the nine months ended September 27, 2025 mean the period from December 29, 2024 to September 27, 2025.

Certain amounts in the 2024 financial statements have been reclassified to conform with the 2025 presentation with no impact or change to previously reported net income or shareholders’ equity.

See Note B, Discontinued Operations , for additional information.

Note B – Discontinued Operations

In the third quarter of 2024, we determined that the business of Big 3 Precision Mold Services, Inc.

(“Big 3 Mold”) meets the criteria to be held for sale and that the assets held for sale qualify for discontinued operations.

(“Big 3 Mold”) met the criteria to be held for sale and that the assets held for sale qualified for discontinued operations.

As such, the financial results of the Big 3 Mold business are reflected in our unaudited condensed consolidated statements of operations as discontinued operations for all periods presented.

2 unchanged sentences

ISBM, which is located in Centralia, Illinois, is an injection stretch blow mold toolmaker.

Summarized Financial Information of Discontinued Operations

The following table represents (loss) income from discontinued operations, net of tax, for the periods presented:

Three Months Ended

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Nine Months Ended

September 27,

September 28,

September 27,

September 28,

Cost of products sold

1 unchanged sentence

( 1,653,484 )

( 8,402,175 )

Selling and administrative expenses

Income from disposal of discontinued Unit

Operating Income (Loss)

( 1,145,232 )

( 3,483,904 )

(Loss) income from disposal of discontinued operations

( 23,087,775 )

Operating (loss) income

( 23,677,345 )

( 25,326,205 )

Interest expense

Income (Loss) from discontinued operations before income taxes

(Loss) income from discontinued operations before income taxes

( 23,854,765 )

Income tax (expense) benefit

Income (Loss) from discontinued operations, net of tax

( 25,838,619 )

Income tax benefit (expense)

(Loss) income from discontinued operations, net of tax

$ ( 19,966,243 )

$ ( 21,517,715 )

The following table represents the assets and liabilities of discontinued operations as of the dates presented:

September 27,

Accounts receivable

Prepaid expenses

Right of use assets

Total assets of discontinued operations

Current assets of discontinued operations¹

Total assets of discontinued operations

Accounts payable

Accrued compensation and other accrued expenses

Current portion of lease liability

Other long-term liabilities

Total liabilities of discontinued operations

Current liabilities of discontinued operations¹

Total liabilities of discontinued operations

¹ The total assets and liabilities of discontinued operations are presented as current in the December 28, 2024 balance sheet as we sold the discontinued operations and collect proceeds within one year.

Note C – Earnings Per Share

1 unchanged sentence

Three Months Ended

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Nine Months Ended

September 27,

September 28,

September 27,

September 28,

Weighted average shares outstanding

2 unchanged sentences

Denominator for diluted earnings per share

Note D – Fair Value of Derivative Instruments

The following table presents the effect of the Company’s derivative instruments designated as cash flow hedges under Accounting Standards Codification (“ASC”) Topic 815, “Hedge Accounting Improvements,” in its unaudited Condensed Consolidated Statements of Operations for the six months ended June 28, 2025:

Note D – Fair Value of Instruments

Derivative Instruments

11 unchanged sentences

and inputs derived principally from, or corroborated by, observable market data by correlation or other means.

As of June 28, 2025, the Company classified its derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of its derivative instruments.

As of September 27, 2025, the Company classified its derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of its derivative instruments.

Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

3 unchanged sentences

unobservable.

The following tables present the fair value of the Company’s derivative instruments as they appear in its Condensed Consolidated Balance Sheets as of June 28, 2025, and December 28, 2024:

Location in Condensed Consolidated Balance Sheets

June 28, 2025

December 28, 2024

The following tables present the fair value of the Company’s derivative instruments as they appear in its Condensed Consolidated Balance Sheets as of September 27, 2025, and December 28, 2024:

Location in Condensed

Consolidated Balance Sheets

September 27,

Derivative Assets:

1 unchanged sentence

Other current assets

Designated foreign currency hedge contracts

Other long-term assets

Derivative Liabilities:

3 unchanged sentences

Inventories consist of the following components:

June 28, 2025

December 28, 2024

September 27,

Raw material and component parts

3 unchanged sentences

Note F - Goodwill

The aggregate carrying amount of goodwill is approximately $ 58.6 million as of June 28, 2025.

No impairment was recognized in the second quarter of 2025.

The aggregate carrying amount of goodwill is approximately $ 58.6 million as of September 27, 2025.

No impairment was recognized in the third quarter of 2025.

The Company evaluates its reporting units for impairment annually in December, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

5 unchanged sentences

Note G – Leases

The Company presents right-of-use (ROU) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months, in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-02, “Leases”.

The Company presents right-of-use (ROU) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months, in accordance with the Financial Accounting Staoard (“FASB”) Accounting Standards Update (“ASU”) 2016-02, “Leases”.

The Company accounts for non-lease components as part of the lease component to which they relate.

9 unchanged sentences

All options to extend, when it is reasonably certain the option will be exercised, have been included in the calculation of the ROU asset and lease liability.

Currently, the Company has 18 operating leases with a lease liability of $ 17.4 million and 6 finance leases with a lease liability of $ 3.6 million as of June 28, 2025.

Currently, the Company has 17 operating leases with lease liabilities of $ 16.7 million and 6 finance leases with lease liabilities of $ 3.4 million as of September 27, 2025.

The terms and conditions of the leases are determined by the individual agreements.

2 unchanged sentences

There are no leases that have not yet commenced that could create significant rights and obligations for the Company.

The future payments (in millions) due under non-cancelable operating and finance leases as of June 28, 2025 are as follows:

The future payments (in millions) due under non-cancelable operating and finance leases as of September 27, 2025 are as follows:

Less effects of discounting

Lease liabilities recognized

As of June 28, 2025 the weighted average lease term for all operating and finance leases is 5.8 and 5.8 years, respectively.

As of September 27, 2025 the weighted average lease term for all operating and finance leases is 5.6 and 5.6 years, respectively.

The weighted average discount rate associated with operating and finance leases was 6.8 % and 6.4 %, respectively.

Note H – Debt

On June 16, 2023, the Company entered into a credit agreement with the lending institutions named therein (the "Lenders"), TD Bank, N.A., as an LC issuer, the swing line lender and as the administrative agent, TD Securities (USA) LLC, as sole arranger and sole bookrunner, and Bank of America, N.A.

and Wells Fargo Bank, National Association, as co-syndication agents (the “Credit Agreement”), that included a $ 60 million term portion and a $ 30 million revolving commitment portion.

On June 16, 2023, the Company entered into a credit agreement with the lending institutions named therein, TD Bank, N.A., as an LC issuer, the swing line lender and as the administrative agent, TD Securities (USA) LLC, as sole arranger and sole bookrunner, and Bank of America, N.A.

and Wells Fargo Bank, National Association, as co-syndication agents (the “TD Bank Credit Agreement”), that included a $ 60 million term portion and a $ 30 million revolving commitment portion.

In April 2025, the Company entered into an amendment to the Credit Agreement that increased the revolving commitment portion to $ 50 million.

The term loan portion of the credit facility requires quarterly principal payments of (i) $ 750,000 beginning on September 30, 2023 through June 30, 2025, (ii) $ 1,125,000 beginning on September 30, 2025 through June 30, 2027, and (iii) $ 1,500,000 beginning on September 30, 2027 through March 31, 2028, with the balance of the term loan payable on the maturity date of June 16, 2028 .

Amounts outstanding under the revolving portion of the credit facility are generally due and payable on the expiration date of the Credit Agreement (June 16, 2028).

The Company can elect to prepay some or all of the outstanding balance from time to time without penalty.

A commitment fee is payable on the unused portion of the revolving credit facility based on the Company’s consolidated ratio of net debt to adjusted EBITDA from time to time.

Currently, the commitment fee is 0.25 %.

The Company has no borrowings outstanding under the revolving commitment portion of the credit facility as of June 28, 2025.

The term loan portion of the credit facility required quarterly principal payments of (i) $ 750,000 beginning on September 30, 2023 through June 30, 2025, (ii) $ 1,125,000 beginning on September 30, 2025 through June 30, 2027, and (iii) $ 1,500,000 beginning on September 30, 2027 through March 31, 2028, with the balance of the term loan payable on the maturity date of June 16, 2028 .

Amounts outstanding under the revolving portion of the credit facility were generally due and payable on the expiration date of the TD Bank Credit Agreement (June 16, 2028).

The Company could elect to prepay some or all of the outstanding balance from time to time without penalty.

A commitment fee was payable on the unused portion of the revolving credit facility based on the Company’s consolidated ratio of net debt to adjusted EBITDA from time to time.

The commitment fee was 0.25 % as of September 27, 2025.

The Company had no borrowings outstanding under the revolving commitment portion of the credit facility as of September 27, 2025.

The term loan bears interest at a variable rate based on the Term Secured Overnight Financing Rate (“SOFR”), plus an adjustment of ten basis points, plus an applicable margin of 1.87 5% to 2.62 5%, depending on the Company’s senior net leverage ratio.

Borrowings under the revolving portion bear interest at a variable rate based on, at the Company’s election, a base rate plus an applicable margin of 0.87 5% to 1.62 5% or SOFR, plus an adjustment of ten basis points, plus an applicable margin of 1.875% to 2.625%, with such margins determined based on the Company’s senior net leverage ratio.

The Company’s obligations under the Credit Agreement are secured by a lien on certain of the Company’s and its subsidiaries’ assets pursuant to a Pledge and Security Agreement, dated as of June 16, 2023, with TD Bank N.A., as administrative agent.

The Company’s loan covenants under the Credit Agreement require the Company to maintain a senior net leverage ratio not to exceed 3.5 to 1.

In addition, the Company is required to maintain a fixed charge coverage ratio to be not less than 1.25 to 1 .

The Company was in compliance with all its covenants under the Credit Agreement on June 28, 2025, and through the date of filing this Form 10-Q.

Borrowings under the revolving portion bore interest at a variable rate based on, at the Company’s election, a base rate plus an applicable margin of 0.87 5% to 1.62 5% or SOFR, plus an adjustment of ten basis points, plus an applicable margin of 1.875% to 2.625%, with such margins determined based on the Company’s senior net leverage ratio.

The Company’s obligations under the TD Bank Credit Agreement were secured by a lien on certain of the Company’s and its subsidiaries’ assets pursuant to a Pledge and Security Agreement, dated as of June 16, 2023, with TD Bank N.A., as administrative agent.

The Company’s loan covenants under the TD Bank Credit Agreement required the Company to maintain a senior net leverage ratio not to exceed 3.5 to 1.

In addition, the Company was required to maintain a fixed charge coverage ratio to be not less than 1.25 to 1 .

Following the end of the third quarter of 2025, the Company terminated the TD Bank Credit Agreement and entered into a new credit agreement, as discussed further below.

The Company was in compliance with all its covenants under the TD Bank Credit Agreement on September 27, 2025 and through the date of such termination.

New Credit Agreement

On October 28, 2025, the Company entered into a credit agreement with the lenders from time to time party thereto, and Citizens Bank, N.A., as the administrative agent, as an LC issuer, and as the swing line lender (the “Citizens Credit Agreement”).

The Citizens Credit Agreement provides for the extension of credit to the Company in the form of revolving loans, swing line loans and letters of credit, at any time and from time to time during the term of the Citizens Credit Agreement.

The Citizens Credit Agreement provides the Company with a $ 100 million five-year senior secured revolving credit facility.

Revolving loans under the Citizens Credit Agreement bear interest, at the election of the Company, at (a) term SOFR for a tenor equivalent to the applicable interest period, subject to a 0% floor, plus an applicable margin varying from 1.375% to 2.125% based on the Company’s Senior Net Leverage Ratio (as defined in the Citizens Credit Agreement) from time to time (such loans being referred to as “SOFR Loans”), (b) an alternate base rate equal to the greatest of (i) the prime rate, (ii) the federal funds rate plus 0.50% per annum, and (iii) the daily term SOFR for a one-month interest period (“Daily SOFR”) plus 1.00%, in each case subject to a 0% floor, plus an applicable margin varying from 0.37 5% to 1.12 5% based on the Company’s Senior Net Leverage Ratio (such loans being referred to as “ABR Loans”), or (C) Daily SOFR, subject to a 0% floor, plus an applicable margin varying from 1.37 5% to 2.12 5% based on the Company’s Senior Net Leverage Ratio (such loans being referred to as “Daily SOFR Loans”).

Swing line loans under the Citizens Credit Agreement bear interest at the alternate base rate plus the margin applicable to ABR Loans, as described above.

Currently, the Company’s margin is 1.375% for SOFR Loans.

Interest on SOFR Loans is payable on the last day of each interest period, and if the interest period is longer than three months, on each successive three-month anniversary of the commencement of the interest period.

Interest on ABR Loans and Daily SOFR Loans is payable quarterly in arrears on the last business day of each of March, June, September and December.

Amounts outstanding under the Citizens Credit Agreement are generally due and payable on the expiration date of the Citizens Credit Agreement ( October 28, 2030 ) or the earlier termination of the revolving commitments thereunder.

The Company can elect to prepay some or all of the outstanding balance from time to time without penalty.

The Citizens Credit Agreement requires the Company to comply with various covenants, including among other things, financial covenants to maintain a senior net leverage ratio not to exceed 3.50 to 1.00, subject to a temporary step-up to 4.00 to 1 upon consummation of a material acquisition, and an interest coverage ratio not less than 3.00 to 1.00 .

The Company was in compliance with all its covenants under the Citizens Credit Agreement at all times from entry into the Citizens Credit Agreement through the date of filing this Form 10-Q.

The Company’s obligations under the Citizens Credit Agreement are guaranteed by certain of the Company’s subsidiaries and are secured by a lien on substantially all assets of the Company and its subsidiaries.

The Company has $ 64 million available on its line of credit under the Citizens Credit Agreement as of the date of filing this Form 10-Q.

Note I - Stock Options and Awards

3 unchanged sentences

Restricted stock unit awards may be granted to participants under the 2020 Plan with restrictions determined by the Compensation Committee of the Board.

During the first six months of fiscal 2025 and 2024, the Company granted stock awards with respect to 35,856 and 38,448 shares of Company common stock, respectively, that were subject to the meeting of performance measurements or time- based.

For the first six months of fiscal years 2025 and 2024, the Company used fair market value to determine the associated expense with stock awards.

During the first nine months of fiscal 2025 and 2024, the Company granted stock awards with respect to 37,728 and 38,448 shares of Company common stock, respectively, that were subject to the meeting of performance measurements or time- based.

For the first nine months of fiscal years 2025 and 2024, the Company used fair market value to determine the associated expense with stock awards.

Incentive stock options granted under the 2020 Plan must have exercise prices that are not less than 100% of the fair market value of the Company’s common stock on the dates the stock options are granted.

Under the 2020 Plan, non-qualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Board.

The Company issued 48,240 and 53,568 options during the first six months of fiscal 2025 and 2024, respectively.

For the first six months of fiscal 2025, the Company used several assumptions which included an expected term of three years, volatility deviation of 40.34 % and a risk-free rate of 4.34 % to determine the expense associated with options.

For the first six months of fiscal 2024, the Company used several assumptions which included an expected term of three years, volatility deviation of 38.30 % and a risk-free rate of 4.51 % to determine the expense associated with options.

Stock-based compensation expense (income), including forfeitures, in connection with SARs and stock awards previously granted to employees was approximately $ 147,000 and $( 20,000 ) in the second quarter of 2025 and the second quarter of 2024, respectively, and was approximately $( 6,000 ) and $ 414,000 in the first six months of fiscal years 2025 and 2024, respectively.

As of June 28, 2025, there were 874,096 shares of Company common stock reserved and available for future grant under the 2020 Plan.

The Company issued 50,688 and 53,568 options during the first nine months of fiscal 2025 and 2024, respectively.

For the first nine months of fiscal 2025, the Company used several assumptions which included an expected term of three years, volatility deviation of 42.54 % and 40.34 % and a risk-free rate of 3.73 % and 4.34 % to determine the expense associated with options.

For the first nine months of fiscal 2024, the Company used several assumptions which included an expected term of three years, volatility deviation of 38.30 % and a risk-free rate of 4.51 % to determine the expense associated with options.

Stock-based compensation expense, including forfeitures, in connection with stock options and stock awards previously granted to employees was approximately $ 138,000 and $ 168,000 in the third quarter of 2025 and the third quarter of 2024, respectively, and was approximately $ 132,000 and $ 582,000 in the first nine months of fiscal years 2025 and 2024, respectively.

As of September 27, 2025, there were 783,232 shares of Company common stock reserved and available for future grant under the 2020 Plan.

The following tables set forth the outstanding stock options for the period specified:

Six Months Ended

June 28, 2025

December 30, 2024

Weighted Average Exercise Price

Nine Months Ended

September 27,

Weighted Average

Exercise Price

Weighted Average

Exercise Price

Outstanding at beginning of period

Outstanding at end of period

SARs Outstanding and Exercisable

Stock Options Outstanding and Exercisable

Range of Exercise Prices

Outstanding as of

June 28, 2025

September 27, 2025

Weighted Average Remaining Contractual Life

Weighted Average Exercise Price

June 28, 2025

September 27, 2025

Weighted Average Remaining Contractual Life

1 unchanged sentence

$ 21.52 - $ 28.69

The following table set forth the outstanding stock awards for the period specified:

Six Months Ended

June 28, 2025

December 28, 2024

The following table sets forth the outstanding stock awards for the period specified:

Nine Months Ended

September 27,

Outstanding at beginning of period

Outstanding at end of period

As of June 28, 2025, outstanding stock options and stock awards had an intrinsic value of $ 1,200,000 .

As of September 27, 2025, outstanding stock options and stock awards had an intrinsic value of $ 1,283,000 .

Note J – Share Repurchase Program

On April 30, 2025, the Board had approved a new share repurchase program authorizing the Company to repurchase up to 400,000 shares of the Company’s common stock over a five-year term expiring in April 2030.

Current authorization for 200,000 shares expiring August 29, 2025.

On April 30, 2025, the Board approved a share repurchase program authorizing the Company to repurchase up to 400,000 shares of the Company’s common stock over a five-year term expiring in April 2030.

The Company’s share repurchase program does not obligate it to acquire the Company’s common stock at any specific cost per share.

Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

Below is a summary of the Company’s share repurchases during the second quarter of 2025 under the share repurchase program.

Below is a summary of the Company’s share repurchases during the third quarter of 2025 under the share repurchase program.

Total Number of Shares Purchased

2 unchanged sentences

Maximum Number of Shares that may yet be Purchased Under the Plans or Programs

April 30, 2025 - May 3, 2025

May 4, 2025 - May 31, 2025

June 1, 2025 - June 28, 2025

June 29, 2025 – August 2, 2025

August 3, 2025 – August 30, 2025

August 31, 2025 – September 27, 2025

Note K – Revenue Recognition

The Company’s revenues result from the sale of goods and services and reflect the consideration to which the Company expects to be entitled.

The Company records revenues in accordance with FASB Topic 606, “Revenue from Contracts with Customers.” The Company has defined purchase orders as contracts in accordance with ASC Topic 606.

The Company records revenues in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers.” The Company has defined purchase orders as contracts in accordance with ASC Topic 606.

For its customer contracts, the Company identifies its performance obligations, which are delivering goods or services, determines the transaction price, allocates the contract transaction price to the performance obligations (when applicable), and recognizes the revenue when (or as) the performance obligation is transferred to the customer.

11 unchanged sentences

income tax examinations by foreign tax authorities for years prior to 2018.

The total amount of unrecognized tax benefits could increase or decrease within the next 12 months for several reasons, including the closure of federal, state, and foreign tax years by expiration of the statute of limitations and the recognition and measurement considerations under FASB ASC Topic 740, “Income Taxes.” There have been no significant changes to the value of unrecognized tax benefits during the six months ended June 28, 2025.

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (“OBBBA”), which resulted in many tax extensions and other rule changes, including the following which we believe will have an effect on our tax provision in 2025 or 2026:

12 unchanged sentences

and this research deduction may have an effect on the Section 163(j) limitation.

The Company is unable at this time to estimate the full impact of the OBBBA on its future interim and annual financial statements due to the complexity of the changes in the OBBBA and uncertainty regarding the effect of anticipated guidance from the U.S.

The Company is unable at this time to estimate the full impact of the OBBBA on its future interim and annual financial statements due to the complexity of the changes in the OBBBA, the elective nature of certain OBBBA tax benefits, and potential future guidance from the U.S.

Department of the Treasury.

5 unchanged sentences

The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements.

Significant disclosures relating to these benefit plans for the second quarter and first six months of fiscal years 2025 and 2024 are as follows:

Significant disclosures relating to these benefit plans for the third quarter and first nine months of fiscal years 2025 and 2024 are as follows:

Pension Benefits

Three Months Ended

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Nine Months Ended

September 27,

September 28,

September 27,

September 28,

Interest cost

4 unchanged sentences

( 3,297,103 )

Amortization of prior service cost

Amortization of the net loss

Net periodic benefit cost (benefit)

Net periodic benefit cost

What changed 10-Q

Item 1. Financial Statements