LAKELAND INDUSTRIES INC 10-Q

Item 1. Financial Statements LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) ($000’s except for share and per share information) Three Months Ended April 30, 2025 2024 Net sales $ 46,746 $ 36,309 Cost of goods sold 31,102 20,125 Gross profit 15,644 16,184 Operating expenses 20,278 13,982 Operating (loss) income ( 4,634 ) 2,202 Other income, net 106 11 Interest expense ( 583 ) ( 172 ) (Loss) income before taxes ( 5,111 ) 2,041 Income tax (benefit) expense ( 1,198 ) 388 Net (loss) income ($ 3,913 ) $ 1,653 Net (loss) income per common share: Basic ($ 0.41 ) $ 0.22 Diluted ($ 0.41 ) $ 0.22 Weighted average common shares outstanding: Basic 9,498,604 7,364,757 Diluted 9,498,604 7,582,449 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 Table of Contents LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (L OSS ) INCOME (UNAUDITED) ($000’s) Three Months Ended April 30, 2025 2024 Net (loss) income ( $ 3,913 ) $ 1,653 Other comprehensive income (loss): Foreign currency translation adjustments 751 158 Comprehensive (loss) income ( $ 3,162 ) $ 1,811 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 Table of Contents LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (000’s except for share information) April 30, January 31, 2025 2025 ASSETS Current assets Cash and cash equivalents $ 18,618 $ 17,476 Accounts receivable, net of allowance for doubtful accounts of $ 1,291 and $ 1,237 at April 30, 2025 and January 31, 202 5 , respectively 27,629 27,607 Inventories 85,823 82,739 Prepaid VAT and other taxes 2,600 2,598 Income tax receivable and other current assets 6,036 6,111 Total current assets 140,706 136,531 Property and equipment, net 14,612 13,948 Operating leases right-of-use assets 13,563 13,917 Deferred tax assets 5,637 6,270 Other assets 380 122 Goodwill 17,082 16,240 Intangible assets, net 26,148 25,503 Total assets $ 218,128 $ 212,531 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 14,650 $ 15,742 Accrued compensation and benefits 5,116 4,501 Other accrued expenses 9,973 8,130 Income tax payable 1,288 1,993 Current portion of loans payable 1,632 939 Current portion of operating lease liabilities 3,608 3,602 Total current liabilities 36,267 34,907 Deferred income taxes 3,505 3,891 Loans payable – long term 24,651 16,426 Long-term portion of operating lease liabilities 10,323 10,681 Total liabilities 74,746 65,905 Commitments and contingencies (Note 11) Stockholders’ equity Preferred stock, $ 0.01 par; authorized 1,500,000 shares ( no ne issued) —   —   Common stock, $ 0.01 par; authorized 20,000,000 shares Issued 10,872,551 and 10,856,812 ; outstanding 9,514,343 and 9,498,604 at April 30, 2025 and January 31, 2025, respectively 109 109 Treasury stock, at cost; 1,358,208 shares at April 30, 2025 and January 31, 2025, respectively ( 19,979 ) ( 19,979 ) Additional paid-in capital 123,339 123,136 Retained earnings 46,122 50,320 Accumulated other comprehensive loss ( 6,209 ) ( 6,960 ) Total stockholders’ equity 143,382 146,626 Total liabilities and stockholders’ equity $ 218,128 $ 212,531 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 5 Table of Contents LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (000’s except for share information) Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Common Stock Treasury Stock Shares Amount Shares Amount Balance, January 31, 2024 8,722,965 $ 87 ( 1,358,208 ) $ ( 19,979 ) $ 79,420 $ 69,282 $ ( 5,360 ) $ 123,450 Net income —  —   —  —   —   1,653 —   1,653 Other comprehensive loss —  —   —  —   —   —   158 158 Dividends —  —   —  —   —   ( 221 ) —   ( 221 ) Stock-based compensation: Restricted stock issued 13,058 —   —  —   —   —   —   —   Restricted stock plan —  —   —  —   198 —   —   198 Return of shares in lieu of payroll withholding —  —   —  —   ( 129 ) —   —   ( 129 ) Balance, April 30, 2024 8,736,023 $ 87 ( 1,358,208 ) $ ( 19,979 ) $ 79,489 $ 70,714 $ ( 5,202 ) $ 125,109 Balance, January 31, 2025 10,856,812 $ 109 ( 1,358,208 ) $ ( 19,979 ) $ 123,136 $ 50,320 $ ( 6,960 ) $ 146,626 Net (loss) —  —   —  —   —   ( 3,913 ) —   ( 3,913 ) Other comprehensive loss —  —   —  —   —   —   751 751 Dividends —  —   —  —   —   ( 285 ) —   ( 285 ) Stock-based compensation: Restricted stock issued 15,739 —   —  —   —   —   —   —   Restricted stock plan —  —   —  —   329 —   —   329 Return of shares in lieu of payroll withholding —  —   —  —   ( 126 ) —   —   ( 126 ) Balance, April 30, 2025 10,872,551 $ 109 ( 1,358,208 ) $ ( 19,979 ) $ 123,339 $ 46,122 $ ( 6,209 ) $ 143,382 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 6 Table of Contents LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) ($000’ S ) Three Months Ended April 30, 2025 2024 Cash flows from operating activities: Net (loss) income ( $ 3,913 ) $ 1,653 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities Deferred income taxes 243 77 Depreciation and amortization 1,138 647 Amortization of step-up in inventory basis 447 —   Stock based and restricted stock compensation 329 198 Equity in loss of equity investment —   101 Change in fair value of earnout consideration —   ( 711 ) (Increase) decrease in operating assets, net of effect of business acquisition Accounts receivable 160 ( 404 ) Inventories ( 3,505 ) 433 Prepaid VAT and other taxes ( 2 ) 541 Other current assets ( 160 ) ( 2,255 ) Increase (decrease) in operating liabilities, net of effect of business acquisition Accounts payable ( 1,117 ) 861 Accrued expenses and other liabilities 1,708 ( 852 ) Operating lease liabilities ( 169 ) 4 Net cash (used in) provided by operating activities ( 4,841 ) 293 Cash flows from investing activities: Purchases of property and equipment ( 1,209 ) ( 466 ) Acquisitions, net of cash acquired —   ( 8,141 ) Investments in convertible debt instruments —   ( 639 ) Net cash (used in) investing activities: ( 1,209 ) ( 9,246 ) Cash flows from financing activities: Term loan borrowings 2,555 —  Term loan repayments ( 237 ) ( 364 ) Credit line - borrowings 6,600 12,300 Dividends paid ( 285 ) ( 221 ) Shares returned to pay employee taxes under restricted stock program ( 126 ) ( 129 ) Net cash provided by financing activities 8,507 11,586 Effect of exchange rate changes on cash and cash equivalents ( 1,315 ) 510 Net increase in cash and cash equivalents 1,142 3,143 Cash and cash equivalents at beginning of period 17,476 25,222 Cash and cash equivalents at end of period $ 18,618 $ 28,365 Supplemental disclosure of cash flow information: Cash paid for interest $ 581 $ 174 Cash paid for taxes $ 643 $ 397 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 7 Table of Contents LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Business Lakeland Industries, Inc. and Subsidiaries, doing business as “Lakeland Fire + Safety” (“Lakeland,” the “Company,” “we,” “our” or “us”), manufacture and sell a comprehensive line of fire services and industrial protective clothing and accessories for the industrial and first responder markets. Our products are sold globally by our in-house sales teams, our customer service group, and authorized independent sales representatives to a strategic global network of selective fire safety and industrial distributors and wholesale partners. Our authorized distributors supply end users, such as integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories and the utilities industry. In addition, we supply federal, state and local governmental agencies and departments, including fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control. Internationally, we sell to a mix of end-users directly and to industrial distributors, depending on the particular country and market. In addition to the United States, sales are made into more than 50 foreign countries, the majority of which were into China, the European Economic Community (“EEC”), Canada, Chile, Argentina, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, Australia, Hong Kong and New Zealand. 2. Basis of Presentation The condensed consolidated financial statements of the Company are unaudited. These condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, that management considers necessary to fairly state the Company’s results. Intercompany accounts and transactions have been eliminated. The results reported in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire fiscal year ending January 31, 2026, or for any future period. The January 31, 2025, Condensed Consolidated Balance Sheet data was derived from the audited Consolidated Balance Sheet but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the years ended January 31, 2025 and 2024, included in our most recent annual report on Form 10-K filed on April 17, 2025. In this Form 10-Q, (a) “FY” means fiscal year; thus, for example, FY26 refers to the fiscal year ending January 31, 2026, (b) “Q” refers to quarter; thus, for example, Q1 FY26 refers to the first quarter of the fiscal year ending January 31, 2026, (c) “Balance Sheet” refers to the unaudited condensed consolidated balance sheet, and (d) “Statement of Operations” refers to the unaudited condensed consolidated statement of operations. Recent Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. Segment Reporting The Company adopted ASU No. 2023-07 (“ASU 2023-07”), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures for the year ended January 31, 2025 and applied it retrospectively for the prior period presented. See “Note 12. Segment Reporting.” 8 Table of Contents Income Taxes In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance requires a public entity to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted, and this guidance should be applied prospectively but there is the option to apply it retrospectively. The Company plans to adopt the provisions of this guidance in conjunction with our Form 10-K for our fiscal year ending January 31, 2026. Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Disaggregation of Income Statement Expenses (“DISE”) . ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. As revised by ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, the provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. With the exception of expanding disclosures to include more granular income statement expense categories, we do not expect the adoption of ASU 2024-03 to have a material effect on our consolidated financial statements taken as a whole. 3. Investments and Acquisitions Acquisition of Veridian On December 16, 2024, the Company acquired 100 % of U.S.-based Veridian Limited (Veridian) for cash consideration of approximately $ 26.1 million subject to post-closing adjustments and customary holdback provisions. Founded in 1992, Veridian is a leading provider of firefighter protective apparel, including fire and rescue garments, gloves and boots. Veridian’s operating results are included in our consolidated financial statements from the acquisition date. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. Veridian’s operating results and assets, including acquired intangibles and goodwill, are reported as part of United States in our geographic segment reporting. 9 Table of Contents The following table summarizes the preliminary fair values of the Veridian assets acquired and liabilities assumed at the date of the acquisition: Net working capital acquired, including cash of $0.5 million $ 8,843 Property, plant and equipment 1,287 Right of use assets 768 Customer relationships 9,950 Trade names 1,400 Goodwill 4,956 Backlog 200 Lease liabilities ( 768 ) Other liabilities assumed ( 568 ) Total net assets acquired $ 26,068 Assets acquired and liabilities assumed in connection with the acquisition were recorded at estimated fair values. Estimated fair values were determined by management, based in part on an independent valuation performed by a third-party valuation specialist. The valuation methods used to determine the estimated fair value of intangible assets included the excess earnings approach for customer relationships using customer inputs and contributory charges, the relief from royalty method for trade names and trademarks and technological know-how. Several significant assumptions and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to produce, tax rates, capital spending, discount rates, attrition rates and working capital changes. Cash flow forecasts were generally based on Veridian’s pre-acquisition forecasts. Identifiable intangible assets with finite lives are subject to amortization over their estimated useful lives. Amortization of Veridian’s identifiable intangible assets will be deductible for tax purposes. Goodwill is calculated as the excess of the purchase price over the estimated fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the estimated fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result from combining the operations of Veridian with our operations. Goodwill related to the Veridian acquisition is deductible for tax purposes. Due to the timing of the completion of the acquisition, the purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding assets acquired and liabilities assumed, and revisions of provisional estimates of fair values, including, but not limited to, the completion of independent appraisals of inventory, contractual relationships, tangible assets and intangible assets. Changes to the purchase price allocation could be significant. The purchase price allocation will be finalized within the measurement period of up to one year from the acquisition date. Acquisition of LHD On July 1, 2024, the Company acquired 100 % of the shares of LHD Group Deutschland GmbH’s fire and rescue business and its subsidiaries in Hong Kong and Australia (collectively, “LHD”) in an all-cash transaction subject to post-closing adjustments and customary holdback provisions. Total consideration was $ 14.8 million, net of $ 1.5 million cash acquired, of which $ 15.5 million was paid to retire LHD’s debt and $ 0.8 million was paid to the seller at closing. LHD is a leading provider of firefighter turnout gear, accessories, and personal protective equipment , as well as decontamination , repair and maintenance services . LHD has 111 employees worldwide and is headquartered in Wesseling, Germany, with operations in Hong Kong and Australia. 1 0 Table of Contents LHD’s operating results are included in our consolidated financial statements from the acquisition date. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. LHD’s operating results and assets, including acquired intangibles and goodwill, are reported as part of Europe in our geographic segment reporting. The following table summarizes the preliminary fair values of the LHD assets acquired and liabilities assumed at the date of the acquisition and reflective of measurement period adjustments: Net working capital acquired, including cash of $1.5 million $ 5,903 Property, plant and equipment 801 Right of use assets 2,905 Customer relationships 5,237 Trade names and trademarks 1,296 Technological know-how 270 Other ( 76 ) Goodwill 7,606 Lease liabilities ( 2,905 ) Other liabilities assumed ( 4,780 ) Total net assets acquired $ 16,257 Assets acquired and liabilities assumed in connection with the acquisition were recorded at estimated fair values. Estimated fair values were determined by management, based in part on an independent valuation performed by a third-party valuation specialist. The valuation methods used to determine the estimated fair value of intangible assets included the excess earnings approach for customer relationships using customer inputs and contributory charges, the relief from royalty method for trade names and trademarks and technological know-how. Several significant assumptions and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to produce, tax rates, capital spending, discount rates, attrition rates and working capital changes. Cash flow forecasts were generally based on LHD’s pre-acquisition forecasts. Identifiable intangible assets with finite lives are subject to amortization over their estimated useful lives. The customer relationships, trade names and trademarks and technological know-how acquired in the LHD transaction are being amortized over periods of 20 years, 10 years and 15 years, respectively, and are not deductible for tax purposes. Goodwill is calculated as the excess of the purchase price over the estimated fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the estimated fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result from combining the operations of LHD with our operations. Goodwill related to the LHD acquisition is not deductible for tax purposes. 1 1 Table of Contents Due to the timing of the completion of the acquisition, the purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding assets acquired and liabilities assumed, and revisions of provisional estimates of fair values, including, but not limited to, the completion of independent appraisals, inventory, contractual relationships, tangible assets and intangible assets. These changes to the purchase price allocation could be significant. The purchase price allocation will be finalized within the measurement period of up to one year from the acquisition date. Acquisition of Jolly On February 5, 2024, the Company acquired 100 % of the shares of Italy and Romania-based Jolly Scarpe S.p.A. and Jolly Scarpe Romania S.R.L. (collectively, “Jolly”) in an all-cash transaction. Total consideration was $ 9.0 million, of which $ 7.5 million was paid to the seller at closing, and $ 1.5 million remained unpaid subject to post-closing adjustments and customary holdback provisions. Jolly is a leading designer and manufacturer of professional footwear for the firefighting, military, police, and rescue markets. The company is headquartered in Montebelluna, Italy, with manufacturing operations in Bucharest, Romania, and has 150 employees. Jolly’s primary customers are based in Europe. Jolly’s operating results are included in our consolidated financial statements from the acquisition date. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. Jolly’s operating results and assets, including acquired intangibles and goodwill, are reported as part of Europe in our geographic segment reporting. The following table summarizes the fair values of the Jolly assets acquired and liabilities assumed at the date of the acquisition and reflective of measurement period adjustments: Net working capital acquired, including cash of $3.0 million and inventory of $6.0 million $ 9,246 Property, plant and equipment 1,277 Right of use assets 1,783 Customer relationships 425 Trade names and trademarks 610 Technological know-how 272 Goodwill 1,363 Lease liabilities ( 1,783 ) Other liabilities assumed, including debt of $3.7 million ( 4,212 ) Total net assets acquired $ 8,981 1 2 Table of Contents Assets acquired and liabilities assumed in connection with the acquisition were recorded at estimated fair values. Estimated fair values were determined by management, based in part on an independent valuation performed by a third-party valuation specialist. The valuation methods used to determine the estimated fair value of intangible assets included the excess earnings approach for customer relationships using customer inputs and contributory charges, the relief from royalty method for trade names and trademarks and technological know-how. Several significant assumptions and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to produce, tax rates, capital spending, discount rates, attrition rates and working capital changes. Cash flow forecasts were generally based on Jolly’s pre-acquisition forecasts. Identifiable intangible assets with finite lives are subject to amortization over their estimated useful lives. The customer relationships, trade names and trademarks and technological know-how acquired in the Jolly transaction are being amortized over periods of 14 years, 10 years and 10 years, respectively, and are not deductible for tax purposes. Goodwill is calculated as the excess of the purchase price over the estimated fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the estimated fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result from combining the operations of Jolly with our operations. Goodwill related to the Jolly acquisition is not deductible for tax purposes. The following unaudited pro forma information presents our combined results as if the Veridian, LHD and Jolly acquisitions had occurred at the beginning of FY25. The unaudited pro forma financial information was prepared to give effect to events that are (1) directly attributable to the acquisition; (2) factually supportable; and (3) expected to have a continuing impact on the combined company’s results. There were no material transactions between the Company, Veridian, LHD and Jolly during the period presented that are required to be eliminated. The unaudited pro forma combined financial information does not reflect cost savings, operating synergies or revenue enhancements that the combined companies may achieve or the costs to integrate the operations or the costs necessary to achieve cost savings, operating synergies or revenue enhancements. Pro forma combined financial information (Unaudited) (in millions, except per share amount) Quarter Ended April 30, 2024 Net sales $ 49.7 Net income $ 1.8 Basic earnings per share $ 0.24 Diluted earnings per share $ 0.23 1 3 Table of Contents The unaudited pro forma combined financial information is presented for information purposes only and is not intended to represent or be indicative of the combined results of operations or financial position that we would have reported had the acquisition been completed as of the date and for the period presented and should not be taken as representative of our consolidated results of operations or financial condition following the acquisition. In addition, the unaudited pro forma combined financial information is not intended to project the future results of the combined company. The unaudited pro forma combined financial information was prepared using the acquisition method of accounting under existing U.S. GAAP. The Company has been treated as the acquirer. 4. Inventories Inventories consist of the following (in $000s): April 30, 2025 January 31, 2025 Raw materials $ 41,742 $ 39,344 Work-in-process 1,655 2,692 Finished goods 46,313 44,158 Excess and obsolete adjustments ( 3,887 ) ( 3,455 ) $ 85,823 $ 82,739 5. Goodwill and Intangible Assets, Net Changes in goodwill during the three months ended April 30, 2025, were as follows (in $000s): Balance at January 31 $ 16,240 Currency translation 842 Balance at April 30 $ 17,082 Changes in intangible assets, net, during the three months ended April 30 , 2025 , were as follows (in $ 000 s): Balance at January 31 $ 25,503 Amortization ( 381 ) Currency translation 1,026 Balance at April 30 $ 26,148 6. Long-Term Debt Revolving Credit Facility On June 25, 2020, the Company entered into a Loan Agreement (the “Original Loan Agreement”) with Bank of America, N.A. (“Lender”), as amended by Amendment No. 1 to the Loan Agreement, dated June 18, 2021 (“Amendment No. 1”), Amendment No. 2 to the Loan Agreement, dated March 3, 2023 (“Amendment No. 2”), Amendment No. 3 to the Loan Agreement, dated November 30, 2023 (“Amendment No. 3”), Amendment No. 4 to the Loan Agreement, dated March 28, 2024 (“Amendment No. 4”), and Amendment No. 5 to the Loan Agreement, dated December 12, 2024 (“Amendment No. 5” and, collectively with Amendment No. 1, Amendment No. 2, Amendment No. 3, and Amendment No. 4, the “Loan Agreement Amendments”; and the Original Loan Agreement, as amended by the Loan Agreement Amendments, the “Amended Loan Agreement”). 14 Table of Contents The Amended Loan Agreement provides the Company with a secured revolving credit facility of up to $ 60.0 million of borrowings from December 12, 2024 through January 31, 2026 and of up to $ 50.0 million of borrowings from February 1, 2026 through January 31, 2027 (in each case, such limits remain subject to a reduction to no less than $40.0 million from the net proceeds of equity issuances if the Company raises capital during such periods). The revolving credit facility includes a $ 10.0 million letter of credit sub-facility. On January 24, 2025, as required by the Amended Loan Agreement, the Company used certain net proceeds of its equity issuance to reduce the principal amount outstanding under the Amended Loan Agreement. As a result thereof, the maximum principal amount under the revolving credit facility was reduced to $ 40 million. The credit facility matures on December 12, 2029. Borrowings under the revolving credit facility bear interest at a rate per annum equal to the sum of (i) the greater of the daily Secured Overnight Financing Rate (“SOFR”) or an index floor of 1% plus (ii) the Applicable Rate (as defined in the Amended Loan Agreement). The Applicable Rate is based upon a funded debt to EBITDA ratio (discussed below) and includes four different levels constituting a SOFR margin range from 1.25 % to 2.00 %. All outstanding principal and unpaid accrued interest under the revolving credit facility is due and payable on the maturity date. On a one-time basis, and subject to there not existing an event of default, the Company may elect to convert up to $ 5.0 million of the then outstanding principal of the revolving credit facility to a term loan facility with an assumed amortization of 15 years and the same interest rate and maturity date as the revolving credit facility. The Amended Loan Agreement provides for a fee on any difference between the line of credit commitment and the amount of credit it actually uses, determined by the daily amount of credit outstanding during the specified period. Such fee is calculated at the Applicable Rate and is payable quarterly. The Company made certain representations and warranties to the Lender in the Amended Loan Agreement that are customary for credit arrangements of this type. The Company also agreed to maintain, as of the end of each fiscal quarter a minimum “basic fixed charge coverage ratio” (as defined in the Amended Loan Agreement) of at least 1.20x and a “funded debt to EBITDA ratio” (as defined in the Amended Loan Agreement) not to exceed 3.5x (with step-downs to 3.25x and 3.0x on February 1, 2026 and February 1, 2027, respectively), in each case for the trailing 12-month period ending with the applicable quarterly reporting period. In addition, the Company has agreed to maintain a springing “asset coverage ratio” (as defined in the Amended Loan Agreement) of at least 1.10x, but only to the extent that the maximum funded debt to EBITDA ratio exceeds 3.25x at any reporting period. The Company was in compliance with all of its debt covenants as of April 30, 2025. The Company also agreed to certain negative covenants under the Amended Loan Agreement that are customary for credit arrangements of this type, including restrictions regarding the ability of the Company and/or its subsidiaries to conduct business, grant liens, make certain investments, make substantial changes in the present executive or management personnel, and incur additional indebtedness, which negative covenants are subject to certain exceptions. Moreover, the Amended Loan Agreement contains restrictions on the Company’s ability to enter into mergers and other business combination transactions and to purchase or acquire other businesses or their assets, although the Company may purchase a business or its assets without the consent of the Lender if the aggregate amount of consideration paid for by the Company is less than $ 26,000,000 for any individual acquisition or $ 36,000,000 on a cumulative basis for all such acquisitions or purchases subsequent to the date of Amendment No. 5. The Amended Loan Agreement also authorizes the Company to enter into additional lines of credit or incur liabilities in connection with the acquisitions of foreign subsidiaries in foreign countries where the Lender lacks a physical presence (such amounts not to exceed $ 10.0 million in the aggregate). The Amended Loan Agreement contains customary events of default that include, among other things (subject to any applicable cure periods and materiality qualifier), non-payment of principal, interest or fees, defaults under related agreements with the Lender, cross-defaults under agreements for other indebtedness, violation of covenants, inaccuracy of representations and warranties, bankruptcy and insolvency events, material judgments and material adverse change. Upon the occurrence of an event of default, the Lender may terminate all loan commitments, declare all outstanding indebtedness owing under the Amended Loan Agreement and related documents to be immediately due and payable, and may exercise its other rights and remedies provided for under the Amended Loan Agreement. 15 Table of Contents In connection with the Amended Loan Agreement, the Company entered into with the Lender (i) a security agreement dated June 25, 2020, pursuant to which the Company granted to the Lender a first priority perfected security interest in substantially all of the personal property and the intangibles of the Company, and (ii) a pledge agreement, dated June 25, 2020, pursuant to which the Company granted to the Lender a first priority perfected security interest in the stock of its subsidiaries (limited to 65 % of those subsidiaries that are considered “controlled foreign subsidiaries” as set forth in the Internal Revenue Code and regulations). The Company’s obligations to the Lender under the Amended Loan Agreement are also secured by a negative pledge evidenced by a Non-encumbrance Agreement covering the real property owned by the Company in Decatur, Alabama. As of April 30, 2025, the Company had no borrowings outstanding on the letter of credit sub-facility and borrowings of $ 19.8 million outstanding under the revolving credit facility , and there was $ 20.2 million of additional available credit under the Loan Agreement. As of January 31, 2025, the Company had no borrowings outstanding on the letter of credit sub-facility and borrowings of $ 13.2 million outstanding under the revolving credit facility , and there was $ 26.8 million of additional available credit under the Loan Agreement. The interest rate on outstanding borrowings was 6.47 % at April 30, 2025 and January 31, 2025. 1 6 Table of Contents Borrowings in UK On December 31, 2014, the Company and Lakeland Industries Europe, Ltd. (“Lakeland UK”), a wholly owned subsidiary of the Company, amended the terms of its existing line of credit facility with HSBC Bank to provide for (i) a one-year extension of the maturity date of the existing financing facility to December 19, 2016, (ii) an increase in the facility limit from £ 1.3 million (approximately USD $ 1.9 million, based on exchange rates at time of closing) to £ 1.5 million (approximately USD $ 2.3 million, based on exchange rates at time of closing), and (iii) a decrease in the annual interest rate margin from 3.46 % to 3.0 %. In addition, pursuant to a letter agreement dated December 5, 2014, the Company agreed that £ 0.4 million (approximately USD $ 0.6 million, based on exchange rates at the time of closing) of the note payable by the UK subsidiary to the Company shall be subordinated in priority of payment to the subsidiary’s obligations to HSBC under the financing facility. This agreement has been subsequently amended with the most recent amendment on March 8, 2022. The cumulative result of the amendments through March 8, 2022 , reflect s a reduction of the service charge to 0.765 %. The agreement can be terminated with three months’ notice. There were no borrowings outstanding under this facility at April 30, 2025 and January 31, 2025. Pacific Borrowings Pacific has a term loan facility with the Bank of New Zealand. The facility includes two term loans. The first term loan of 1.5 million New Zealand dollars matures on December 17, 2025 , carries an interest rate of 2.3 % per annum and requires monthly payments of $ 19,350.27 New Zealand dollars. The second term loan of 0.2 millio n New Zealand dollars matures on November 18, 202 6 , carries an interest rate of 8.07 % per annum and requires monthly payments of 10,545 New Zealand dollars. Total amounts due under the term loans were $ 0.5 million at April 30, 2025 and January 31, 2025. Jolly Borrowings On May 9, 2024, Jolly entered into a term loan agreement for 1.5 million Euros to support working capital requirements with Banca Intesa Spa. The term loan matures on March 31, 2027 , and carries an interest rate of 5.42 %. The term loan is being repaid in 11 quarterly installments of 0.1 million Euros. The loan is guaranteed by SACE S.p.A., the Italian state-owned export credit finance agency. On March 6, 2025, Jolly entered into a term loan agreement for 2.0 million Euros to support working capital requirements with Banca Intesa Spa. The term loan matures on September 30, 2028 , and carries an interest rate with a fixed rate portion of 1.45 % and variable rate portion based on the three-month EURIBOR rate. The interest rate at April 30, 2025 was 3.935 %. The term loan will be repaid in 11 quarterly installments of 0.2 million Euros, beginning September 30, 2025. Interest payments are made quarterly. The loan is guaranteed by SACE S.p.A., the Italian state-owned export credit finance agency. Jolly received an advance of 1.2 million Euros from BNL Bank as an advance on an Italian firefighters contract that will conclude in FY26. Interest on the advance is Euribor plus 1.0%. As of April 30, 2025 and January 31, 2025, the outstanding balance under the term loans was $ 4.9 million and $ 2.5 million, respectively. LHD Borrowings Prior to the Company’s acquisition, LHD secured a federally guaranteed term loan of 0.8 million E uros from Commerzbank AG under the “KfW Quick Loan 2020” program, launched by the German government in 2020 to support small and medium-sized enterprises affected by the COVID-19 crisis. Repayments of the loan, which matures on June 30, 2030, are made in quarterly installments of 25,000 Euros. The loan carries an interest rate of 3 % per annum, with interest payments being due in arrears at the end of each quarter. As of April 30, 2025 and January 31, 2025, the outstanding balance was $ 0.7 million. 1 7 Table of Contents Veridian Borrowings Prior to the Company’s acquisition, in February 2024, Veridian secured a term loan with USBank for a piece of equipment. The loan is for 60 months with monthly payments of approximately $8,000. The interest rate on the loan is 5.13 %. As of April 30, 2025 and January 31, 2025, the outstanding balance was $ 0.3 million and $ 0.4 million, respectively . Approximate maturities on our term loans over the next five years from April 30, 2025, are $1.6 million in FY26, $3.1 million in FY27, $1.2 million in FY28, $0.2 million in FY29, $20.2 million thereafter. 7. Concentration of Risk Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents, and trade receivables. The concentration of credit risk with respect to trade receivables is generally diversified due to the large number of entities comprising the Company’s customer base and their dispersion across geographic areas principally within the United States. The Company routinely addresses the financial strength of its customers and, as a consequence, believes that its receivable credit risk exposure is limited. The Company does not require customers to post collateral. The Company’s foreign financial depositories are Bank of America; China Construction Bank; Bank of China; China Industrial and Commercial Bank; HSBC (UK); Royal Bank of Scotland, Rural Credit Cooperative of Shandong; Postal Savings Bank of China; Punjab National Bank; HSBC in India, Argentina, Australia and UK; Raymond James in Argentina; TD Canada Trust; Banco Itaú S.A., Banco Credito Inversione in Chile; Banco Mercantil Del Norte SA in Mexico; ALFA Bank and Bank Uralsib in Russia, JSC Bank Centercredit in Kazakhstan; Bank of New Zealand in New Zealand; BNL Gruppo Paribas, Banca Monti Dei ‘Paschi and Banca Intesa Spa in Italy; BCR in Romania; NAB in Australia: and Commerzbank AG in Germany. The Company monitors its financial depositories by their credit rating, which varies by country. Additionally , cash balances in banks in the United States are insured by the Federal Deposit Insurance Corporation subject to certain limitations. As of April 30, 2025, approximately $ 3.0 million was included in U.S. bank accounts and approximately $ 15.6 million was included in foreign bank accounts , of which $ 17.8 million was uninsured. As of January 31, 2025, approximately $ 1.3 million was included in U.S. bank accounts and approximately $ 16.2 million was included in foreign bank accounts , of which $ 16.7 million was uninsured. 8. Stockholders’ Equity On June 21, 2017, the stockholders of the Company approved the Lakeland Industries, Inc. 2017 Equity Incentive Plan (the “2017 Plan”). The executive officers and all other employees and directors of the Company, including its subsidiaries, are eligible to participate in the 2017 Plan. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”), except that with respect to all non-employee directors, the Committee shall be deemed to include the full Board. The 2017 Plan provides for the grant of equity-based compensation in the form of stock options, restricted stock, restricted stock units, performance shares, performance units, or stock appreciation rights (“SARs”). An aggregate of 1,240,000 shares of the Company’s common stock are currently authorized for issuance under the 2017 Plan, as amended, subject to adjustment as provided in the 2017 Plan for stock splits, dividends, distributions, recapitalizations and other similar transactions or events. If any shares subject to an award are forfeited, expire, lapse or otherwise terminate without issuance of such shares, such shares shall, to the extent of such forfeiture, expiration, lapse or termination, again be available for issuance under the 2017 Plan. The Company recognized total stock-based compensation costs, which are reflected in operating expenses (in $ 000 ’s): Three Months Ended April 30, 2025 2024 2017 Plan: Total restricted stock and stock option programs $ 329 $ 198 Total income tax expense recognized for stock-based compensation arrangements $ 69 $ 42 1 8 Table of Contents Restricted Stock and Restricted Stock Units Under the 2017 Plan, as described above, the Company awarded performance-based and service-based shares of restricted stock and restricted stock units to eligible employees and directors. The following table summarizes the activity under the 2017 Plan for the three months ended April 30, 2025 and 2024. This table reflects the amount of awards granted and the number of shares that would be vested if the Company were to achieve the maximum performance level under the March 2023, April 2024 and April 2025 grants. Performance- Based Service- Based Total Weighted Average Grant Date Fair Value Outstanding at January 31, 2025 69,670 182,135 251,805 $ 17.36 Awarded —   65,108 65,108 $ 16.14 Vested ( 3,304 ) ( 12,435 ) ( 15,739 ) $ 20.60 Forfeited —   —   —   Outstanding at April 30, 2025 66,366 234,808 301,174 $ 16.93 Performance- Based Service- Based Total Weighted Average Grant Date Fair Value Outstanding at January 31, 2024 82,330 112,890 195,220 $ 16.61 Awarded 12,799 48,461 61,260 $ 18.45 Vested —   ( 20,274 ) ( 20,274 ) $ 17.92 Forfeited ( 4,281 ) ( 14,233 ) ( 18,514 ) Outstanding at April 30, 2024 90,848 126,844 217,692 $ 16.61 The actual number of shares of common stock of the Company, if any, to be earned by the award recipients is determined over a three-year performance measurement period based on measures that include Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) margin, revenue growth, and return on invested capital for the April 2022 grants. Performance measures for the March 2023 grants are revenue growth, EBITDA margin and return on invested capital. The performance measures for the April 2024 grants are aggregate revenue during FY25, FY26, and FY27; EBITDA margin; and free cash flow margin. The performance measures for the April 2025 grants are aggregate revenue during FY26, FY27, and FY28; Adjusted EBITDA; and free cash flow margin. The performance targets have been set for each of the Minimum, Target, and Maximum levels. The actual performance amount achieved is determined by the Committee and may be adjusted for items determined to be unusual in nature or infrequent in occurrence, at the discretion of the Committee. The compensation cost is based on the fair value at the grant date, is recognized over the requisite performance/service period using the straight-line method and is periodically adjusted for the probable number of shares to be awarded. As of April 30, 2025, unrecognized stock-based compensation expense totaled $ 3.5 million pursuant to the 2017 Plan based on outstanding awards under the Plan. This expense is expected to be recognized over approximately t hree years. Stock Repurchase Program On April 7, 2022, the Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $ 5.0 million of its outstanding common stock, which became effective upon the completion of a prior share repurchase program. On December 1, 2022, the Board of Directors authorized an increase in the Company’s stock repurchase program, under which the Company may repurchase up to an additional $ 5.0 million of its outstanding common stock. No shares were repurchased during Q 1 FY 26 , leaving $ 5.0 million remaining under the share repurchase program at April 30 , 2025 . The share repurchase program has no expiration date but may be terminated by the Board of Directors at any time. 19 Table of Contents 9. Income Taxes The Company’s provision for inc ome taxes for the three months ended April 30, 2025 and 2024 is based on the estimated annual effective tax rate, in addition to discrete items. The Company’s effective tax rate for the first quarter of FY26 was 23.4%, which differs from the U.S. federal statutory rate of 21% primarily due to rate differentials in foreign tax jurisdictions. The Company’s effective tax rate for the first quarter of FY25 was 19.0% which differs from the U.S. federal statutory rate of 21%, primarily due to rate differentials in foreign tax jurisdictions and the Global Intangible Low-Taxed Income (“GILTI”) provision and impacts from the final earn-out adjustments related to the Pacific and Eagle acquisitions. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. The valuation allowance was $ 6.8 million and $ 6.6 million as of April 30, 2025 and January 31, 2025, respectively. With the exception of our UK and China subsidiaries for which we accrue relevant deferred tax impacts related to non-indefinitely reinvested cash, we consider the excess of the amount for financial reporting over the tax basis (including undistributed and previously taxed earnings) of investments in our other foreign subsidiaries as of April 30, 2025 to be indefinitely reinvested in the foreign jurisdictions on the basis of our specific plan for reinvestment and estimates that future domestic cash generation will be sufficient to meet future domestic cash needs. Therefore, we have not provided for deferred taxes related to such excess or the relevant portions thereof and disclosed that the determination of any deferred taxes related to this excess is not practicable in those permanently reinvested jurisdictions. We have made no changes to our policy on indefinite reinvestment during the quarter ended April 30, 2025. 2 0 Table of Contents 10. Net (Loss) Income Per Share The following table sets forth the computation of basic and diluted net (loss) income per share as follows (in $000s except share and per share amounts): Three Months Ended April 30, 2025 2024 Numerator: Net (loss) income ( $ 3,913 ) $ 1,653 Denominator: Denominator for basic net (loss) income per share (weighted-average shares which exclude shares in the treasury, 1,358,208 at April 30, 2025 and 2024) 9,498,604 7,364,757 Effect of dilutive securities from restricted stock plan —   217,692 Denominator for diluted net (loss) income per share (adjusted weighted average shares) 9,498,604 7,582,449 Basic net (loss) income per share ( $ 0.41 ) $ 0.22 Diluted net (loss) income per share ( $ 0.41 ) $ 0.22 For the three months ended April 30, 2025, 0.3 million shares of unvested restricted stock awards were excluded from the calculation of diluted earnings per share due to their anti-dilutive effect. There were no shares of unvested restricted stock awards excluded from the calculation of diluted earnings per share for the three months ended April 30, 2024. 2 1 Table of Contents 11. Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and legal counsel assess such contingent liabilities, which inherently involve an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been or is probable of being incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. During the third quarter of FY24, the Company sent a letter to the landlord outlining certain structural defects on the newly constructed facility in Monterrey, Mexico that would inhibit the Company from effectively utilizing the facility for its intended purpose. The Company has initiated discussions with the landlord as to potential remedies that may inform our decision-making process with respect to this property. Changes in our long-term intended use for the building may impact the carrying value of the currently recorded right of use asset. General litigation contingencies The Company is involved in various litigation proceedings arising during the normal course of business which, in the opinion of the management of the Company, will not have a material effect on the Company’s financial position, results of operations or cash flows; however, there can be no assurance as to the ultimate outcome of these matters. As of April 30, 2025 and January 31, 2025, to the best of the Company’s knowledge, there were no significant outstanding claims or litigation. 2 2 Table of Contents 12. Segment Reporting Domestic and international sales from continuing operations are as follows in millions of dollars:  Three Months Ended April 30, 2025 2024 Domestic $ 20.7 $ 14.3 International 26.0 22.0 Total $ 46.7 $ 36.3 The Company is organized into seven geographical operating segments that are based on management responsibilities: US Operations (including Corporate), Europe, Mexico, Asia, Canada, Latin America and Other Foreign. The Company adopted ASU No. 2023-07 (“ASU 2023-07”), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures for the year ended January 31, 2025 and applied it retrospectively for the prior period presented. Gross profit and Operating profit are the measures used by the chief operating decision maker, identified as our President and Chief Executive Officer, to evaluate segment performance and identify opportunities when allocating resources. The accounting principles applied at the reportable segment level in determining the segment measure of profit or loss are the same as those applied at the consolidated financial statement level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation. Our US operations include a facility in Alabama (primarily the distribution to customers of the bulk of our products and the light manufacturing of our chemical, wovens, reflective, and fire products) and facilities in Iowa and Arkansas (fire services). The Company also maintains one manufacturing facility in China (primarily disposable and chemical suit production), a manufacturing facility in Mexico (primarily disposable, reflective, fire and chemical suit production), a manufacturing facility in Vietnam (primarily disposable production), a manufacturing facility in Argentina (primarily wovens and production), a manufacturing facility in Romania (boots), a manufacturing facility in New Zealand (helmets) and two small manufacturing facilities in India. Our China and Vietnam facilities produce a significant portion of the Company’s products. We evaluate the performance of these entities based on gross profit which is defined as net sales less cost of goods sold, and operating profit, which is defined as income before income taxes, interest expense and other income and expenses. We have sales forces in the USA, Canada, Mexico, Europe, Latin America, India, Russia, Kazakhstan, Australia, New Zealand and China, which sell and distribute products shipped from the United States, Mexico, China, Vietnam or India. 23 Table of Contents The table below represents information about reported segments for the three-month periods noted therein: Three Months Ended April 30, 2025 2024 (in millions of dollars) Net Sales US Operations (including Corporate) $ 22.5 $ 15.9 Europe 12.1 6.0 Mexico 1.8 1.6 Asia 12.0 10.4 Canada 2.4 3.0 Latin America 4.3 4.9 Other foreign 4.7 4.5 Less intersegment sales ( 13.1 ) ( 10.0 ) Consolidated sales $ 46.7 $ 36.3 External Sales USA Operations (including Corporate) $ 20.7 $ 14.3 Europe 11.8 6.0 Mexico 1.2 1.1 Asia 3.6 3.3 Canada 2.3 3.0 Latin America 4.1 4.8 Other foreign 3.0 3.8 Consolidated external sales $ 46.7 $ 36.3 Intersegment Sales USA Operations (including Corporate) $ 1.8 $ 1.6 Europe (UK) 0.3 —   Mexico 0.6 0.5 Asia 8.4 7.1 Canada 0.1 —   Latin America 0.2 0.1 Other foreign 1.7 0.7 Consolidated intersegment sales $ 13.1 $ 10.0 24 Table of Contents Three Months Ended April 30, 2025 2024 (in millions of dollars) Cost of Goods Sold: USA Operations (including Corporate) $ 15.3 $ 9.1 Europe 8.9 4.5 Mexico 1.8 1.5 Asia 9.6 8.2 Canada 1.9 1.7 Latin America 2.9 2.2 Other foreign 3.1 2.7 Less intersegment cost of goods sold ( 12.4 ) ( 9.8 ) Consolidated cost of goods sold $ 31.1 $ 20.1 Gross Profit: USA Operations (including Corporate) $ 7.2 $ 6.8 Europe 3.2 1.5 Mexico —   0.1 Asia 2.4 2.2 Canada 0.5 1.3 Latin America 1.4 2.7 Other foreign 1.6 1.8 Less intersegment loss ( 0.7 ) ( 0.2 ) Consolidated gross profit $ 15.6 $ 16.2 Operating Expenses: USA Operations (including Corporate) $ 10.7 $ 7.5 Europe 4.0 1.9 Mexico 0.7 0.5 Asia 1.5 1.2 Canada 0.7 1.0 Latin America 1.6 0.9 Other foreign 1.4 1.3 Less intersegment operating expenses ( 0.3 ) ( 0.3 ) Consolidated operating expenses $ 20.3 $ 14.0 Operating (Loss) Income: USA Operations (including Corporate) $ ( 3.5 ) $ ( 0.7 ) Europe ( 0.8 ) ( 0.4 ) Mexico ( 0.7 ) ( 0.4 ) Asia 0.9 1.0 Canada ( 0.2 ) 0.3 Latin America ( 0.2 ) 1.8 Other foreign 0.2 0.5 Less intersegment loss (income) ( 0.3 ) 0.1 Operating (loss) income ($ 4.6 ) $ 2.2 25 Table of Contents As of April 30, As of January 31, 2025 2025 (in millions of dollars) Total Assets: USA Operations (including Corporate) $ 169.3 $ 167.4 Europe 63.2 60.3 Mexico 14.1 13.7 Asia 47.4 48.0 Canada 6.3 6.4 Latin America 22.9 21.7 Other foreign 19.6 18.3 Less intersegment ( 124.7 ) ( 123.3 ) Consolidated assets $ 218.1 $ 212.5 Total Assets Less Intersegment: USA Operations (including Corporate) $ 87.0 $ 85.6 Europe 57.7 55.3 Mexico 11.6 11.2 Asia 21.4 21.3 Canada 4.3 4.6 Latin America 18.3 18.0 Other foreign 17.8 16.5 Consolidated assets $ 218.1 $ 212.5 Total Goodwill and Intangible Assets USA Operations (including Corporate) $ 17.0 $ 17.1 Europe 24.3 22.7 Other foreign 1.9 1.9 Consolidated goodwill and intangible assets $ 43.2 $ 41.7 26 Table of Contents The table below presents external sales by product line: Three Months Ended April 30, (in millions of dollars) 2025 2024 External Sales by product lines: Disposables $ 13.1 $ 13.2 Chemical 6.1 6.3 Fire 21.0 10.5 Gloves 0.3 0.5 High Visibility 1.0 1.2 High Performance Wear 1.6 1.2 Wovens 3.6 3.4 Consolidated external sales $ 46.7 $ 36.3 27 Table of Contents 13. Subsequent Events Second Quarter Dividend On May 1, 2025, the Company’s Board of Directors declared a quarterly cash dividend. The quarterly dividend of $ 0.03 per share or approximately $ 0.3 million, was paid on May 22, 2025, to stockholders of record as of May 15, 2025. Letter of Intent – Decatur, Alabama Warehouse Facility Subsequent to April 30, 2025, the Company developed a plan to sell our warehouse facility in Decatur, Alabama. On June 6, 2025, the Company entered into a letter of intent to sell the warehouse facility to an unrelated party. The letter of intent includes a short-term lease on one of the existing warehouses. The sale is expected to close in the third quarter of FY26. 28 Table of Contents