What changed in this filing

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Item 1. Financial Statements

2026-05-07 compared with 2025-11-07 · 290 added, 386 removed, 407 unchanged (62% of the section changed)

1 unchanged sentence

LEGACY HOUSING CORPORATION

CONDENSED BALANCE SHEETS

(in thousands, except share and per share data)

September 30,

BALANCE SHEETS

(in thousands, except share and per value data)

2026 (unaudited)

Current assets:

Accounts receivable, net

Interest receivable loan portfolios, net

Income tax refund receivable

Dealer financed receivables, net

Consumer loans receivable, current

Notes receivable from mobile home parks (“MHP”), current

Other notes receivable, current

Consumer loans receivable, net

Notes receivable from mobile home parks (“MHP”), net

Other notes receivable, net

Inventories, net

7 unchanged sentences

ROU assets - operating leases

Deferred income taxes, net

Intangible assets, net

Liabilities and Stockholders' Equity

8 unchanged sentences

Operating lease obligation, less current portion

Deferred income taxes, net

Lines of credit

Dealer incentive liability

5 unchanged sentences

Common stock, $ .001 par value, 90,000,000 shares authorized;

24,866,342 and 24,865,906 issued and 23,868,727 and 24,158,311 outstanding at September 30, 2025 and December 31, 2024, respectively

Treasury stock at cost, 997,615 and 707,595 shares at September 30, 2025 and December 31, 2024, respectively

24,866,342 and 24,866,342 issued and 23,781,601 and 23,812,341 outstanding at March 31, 2026 and December 31, 2025, respectively

Treasury stock at cost, 1,084,741 and 1,054,001 shares at March 31, 2026 and December 31, 2025, respectively

Additional paid-in-capital

2 unchanged sentences

Total liabilities and stockholders' equity

See accompanying notes to unaudited interim condensed financial statements.

See accompanying notes to unaudited interim financial statements .

LEGACY HOUSING CORPORATION

CONDENSED STATEMENTS OF INCOME

(in thousands, except share and per share data)

Three months ended September 30,

Nine months ended September 30,

STATEMENTS OF INCOME

(in thousands, except share data)

Three months ended March 31,

Product sales

6 unchanged sentences

Selling, general and administrative expenses

Dealer incentive

Total operating expenses

8 unchanged sentences

Weighted average shares outstanding:

Net income per share:

See accompanying notes to unaudited interim condensed financial statements.

Earnings per share:

See accompanying notes to unaudited interim financial statements.

LEGACY HOUSING CORPORATION

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands, except share data)

2 unchanged sentences

Share based compensation

Proceeds from exercise of stock options

Purchase of treasury stock

Balances, March 31, 2025

Share based compensation

Proceeds from exercise of stock options

Purchase of treasury stock

Balances, June 30, 2024

Share based compensation

Proceeds from exercise of stock options

Purchase of treasury stock

Balances, September 30, 2024

paid-in-capital

3 unchanged sentences

Balances, March 31, 2026

Share based compensation

Purchase of treasury stock

Balances, June 30, 2025

Share based compensation

Purchase of treasury stock

Balances, September 30, 2025

See accompanying notes to unaudited interim condensed financial statements.

(1) Shares are net of treasury shares.

See accompanying notes to unaudited interim financial statements.

LEGACY HOUSING CORPORATION

CONDENSED STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Operating activities:

2 unchanged sentences

Amortization of deferred revenue

Operating lease amortization, net

Amortization of lines of credit cost

Provision for accounts and notes receivable

Gain from sale of assets

Gain from loan settlements

(Gain) or Loss from sale of property

Provision for inventories

Non-cash operating lease expense

Deferred income taxes

Share based compensation expense

Other non cash items

Changes in operating assets and liabilities:

Accounts receivable

Interest receivable, net

Consumer loans activity, net

16 unchanged sentences

Collections from purchased loans

Net cash provided by (used in) investing activities

Net cash used in investing activities

Financing activities:

Proceeds from exercise of stock options

Purchases of treasury stock

2 unchanged sentences

Net cash used in financing activities

Net increase (decrease) in cash

Net increase in cash

Cash at beginning of period

3 unchanged sentences

Cash paid for taxes

See accompanying notes to unaudited interim condensed financial statements.

See accompanying notes to unaudited interim financial statements.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NATURE OF OPERATIONS

3 unchanged sentences

The Company is headquartered in Bedford, Texas.

The Company (1) manufactures and provides for the transport of mobile homes, (2) provides wholesale financing to dealers and mobile home parks, (3) provides retail financing to consumers and (4) is involved in financing and developing new manufactured home communities.

The Company manufactures its mobile homes at plants located in Fort Worth, Texas, Commerce, Texas and Eatonton, Georgia.

The Company relies on a network of dealers to market and sell its mobile homes.

The Company (1) manufactures and provides for the transport of manufactured homes, (2) provides wholesale financing to dealers and mobile home parks, (3) provides retail financing to consumers and (4) is involved in financing and developing new manufactured home communities.

The Company manufactures its homes at plants located in Fort Worth, Texas, Commerce, Texas and Eatonton, Georgia.

The Company relies on a network of dealers to market and sell its manufactured homes.

The Company also sells homes directly to consumers, through its own retail stores, and to dealers and mobile home parks.

Basis of Presentation

The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S.

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the U.S.

Securities and Exchange Commission ("SEC") as required by Regulation S-X, Rule 8-03.

In the opinion of management, the unaudited interim condensed financial statements have been prepared on the same basis as the audited annual financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented.

The results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025, or any other period.

In the opinion of management, the unaudited interim financial statements have been prepared on the same basis as the audited annual financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented.

The results for the three months ending March 31, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026, or any other period.

The accompanying balance sheet as of December 31, 2025 was derived from audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”), filed on March 12, 2026.

3 unchanged sentences

The preparation of our financial statements in conformity with GAAP requires management to make estimates and assumptions.

These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expense during the reporting period.

Significant estimates made in connection with the accompanying financial statements primarily relate to the determination and valuation of notes receivable from mobile home parks, consumer loans receivable, other notes receivable, dealer financed receivables, fair value of financial instruments and income taxes.

Actual results could differ from these estimates.

We have determined that we have one operating and reportable segment.

We define the segment primarily based on how internally reported financial and operating information is regularly reviewed by our chief operating decision maker (“CODM”) to evaluate financial performance, make decisions and allocate resources.

Our CODM is the Chief Executive Officer.

The CODM assesses the Company’s operating and financial performance based on consolidated net income, total revenue and return on investment.

The measures of profitability and expenses reviewed by the CODM are consistent with the financial statements presented in this filing.

The Company determined that it does not have significant segment expenses.

Segment Reporting

The Company has one reportable segment.

All of our activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others.

For example, the sale of manufactured homes includes providing transportation for dealers.

We also provide financing options for customers to facilitate home sales.

Accordingly, all significant operating and strategic decisions by the co-chief operating decision makers, the Executive Chairman and Chief Executive Officer, are based upon analyses of our company as one operating segment.

We generate revenues through the manufacture and sales of manufactured homes and “Tiny Houses” and the related interest income associated with financing these homes sales.

We define the segment primarily based on how internally reported financial and operating information is regularly reviewed by our co-chief operating decision makers (“co-CODMs”) to evaluate financial performance, make decisions and allocate resources.

Our co-CODMs are our Executive Chairman and Chief Executive Officer.

The co-CODMs assess performance for the segment based on net

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

income and total assets that are also reported on the statements of income and balance sheet as net income and total assets, respectively.

The accounting policies of the segment are the same as those described in the summary of significant accounting policies.

The co-CODMs assess our operating and financial performance on a company-wide or consolidated basis.

Revenue Recognition

Product sales primarily consist of sales of mobile homes to consumers and mobile home parks through various sales channels, which include Direct Sales, Commercial Sales, Inventory Finance Sales, and Retail Store Sales.

Product sales primarily consist of sales of manufactured homes to consumers and mobile home parks through various sales channels, which include Direct Sales, Commercial Sales, Inventory Finance Sales, and Retail Store Sales.

Direct Sales include homes sold directly to independent retailers or customers that are not financed by the Company and are not sold under an inventory finance arrangement.

7 unchanged sentences

Accounts Receivable

“Accounts receivable, net” includes receivables from direct sales of mobile homes, sales of parts and supplies to customers, inventory finance fees and interest.

Net accounts receivable includes receivables from direct sales of manufactured homes, sales of parts and supplies to customers, inventory finance fees and interest.

Accounts receivable related to inventory finance fees and interest generally are due upon receipt, and all other accounts receivable generally are due within 30 days .

3 unchanged sentences

The Company establishes an allowance for doubtful accounts for amounts that are deemed to be uncollectible.

At September 30, 2025, December 31, 2024, and December 31, 2023, the allowance for doubtful accounts totaled $ 1,052 , $ 578 , and $ 651 , respectively.

At September 30, 2025, December 31, 2024, and December 31, 2023 accounts receivable, net was $ 4,646 , $ 3,985 , and $ 4,656 , respectively.

At March 31, 2026, December 31, 2025, and December 31, 2024, the allowance for doubtful accounts totaled $ 1.7 million, $ 1.5 million, and $ 0.6 million, respectively.

At March 31, 2026, December 31, 2025, and December 31, 2024 accounts receivable, net was $ 5.1 million, $ 5.5 million, and $ 4.0 million, respectively.

Interest Receivable Loan Portfolios

Interest receivable loan portfolios, net relates to accrued interest for consumer loans receivable, notes receivable from mobile home parks, and other notes receivable.

The interest accrual is calculated within the Company’s loan management system from the date of last customer payment received through the end of the period.

Separately an interest receivable allowance is established for all interest payments past due more than 90 days.

The interest receivable is stated net of the allowance.

At March 31, 2026, December 31, 2025, and December 31, 2024 the interest receivable, net was $ 3.7 million, $ 3.5 million, and $ 3.3 million, respectively.

Leased Property

The Company offers mobile home park operators the opportunity to lease mobile homes for rent in lieu of purchasing the homes for cash or under a longer-term financing agreement.

In this arrangement, the title for the mobile homes remains with the Company, and the lease is accounted for as an operating lease.

The Company offers mobile home park operators the opportunity to lease manufactured homes for rent in lieu of purchasing the homes for cash or under a longer-term financing agreement.

In this arrangement, the title for the manufactured homes remains with the Company, and the lease is accounted for as an operating lease.

Our typical lease agreement is for 96 months or 120 months .

1 unchanged sentence

It provides the lessee with a termination option for a fee, an option to extend the lease and a purchase option at fair market value.

The leased mobile homes are included in other assets on the Company’s balance sheet, capitalized at manufactured cost and depreciated over a 15 year useful life.

Homes returned to the Company upon expiration of the lease or in the event of default are sold by the Company through its standard sales and distribution channels.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

Future minimum lease income under all operating leases for each of the next five years at September 30, 2025, is as follows:

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The leased manufactured homes are included in other assets on the Company’s balance sheet, capitalized at manufactured cost and depreciated over a 15 year useful life.

Homes returned to the Company upon expiration of the lease or in the event of default are sold by the Company through its standard sales and distribution channels.

Future minimum lease income under all operating leases for each of the next five years at March 31, 2026, is as follows (in thousands):

Product Warranties

5 unchanged sentences

The accrued warranty liability is reduced as costs are incurred and the warranty liability balance is included as part of accrued liabilities in the Company’s balance sheet.

The following table summarizes activity within the warranty liability for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30,

Nine Months Ended September 30,

The following table summarizes activity within the warranty liability (in thousands):

Three Months Ended March 31,

Warranty liability, beginning of period

2 unchanged sentences

Warranty liability, end of period

Intangible Assets, Net

Our intangible assets consist of trade name, internally developed software, customer contracts, and non-compete agreements, are considered finite-lived, and are amortized over their useful lives.

Finite-lived intangibles are generally amortized over 1 to 15 years on a straight-line depreciation basis and are reviewed for possible impairment

whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.

Amortization expenses recognized on intangible assets was $ 0.2 million for the three months ended March 31, 2026.

Finite-lived intangible have a weighted average remaining life of 10.1 years.

The following table summarizes intangible asset amortization expense (in thousands):

As of March 31,

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Share-Based Compensation

1 unchanged sentence

Share-based compensation expense is recognized based on an award’s estimated grant date fair value in order to recognize compensation cost for those shares expected to vest.

The Company has elected to record forfeitures as they occur.

Compensation cost is recognized on a straight-line basis over the vesting period of the awards and adjusted as forfeitures occur.

5 unchanged sentences

The volatility is estimated based on the historical volatility of the Company’s common stock.

The expected life of awards granted represents the period of time that the awards are expected to be outstanding based on the “simplified” method, which is allowed for companies that cannot reasonably estimate the expected life of options based on its historical award exercise experience.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

The expected life of awards granted represents the period during which the awards are expected to remain outstanding, based on the “simplified” method, which is allowed for companies that cannot reasonably estimate the expected life of options based on their historical award exercise experience.

The Company does not expect to pay dividends on its common stock.

Pursuant to the Legacy Housing Corporation 2018 Incentive Compensation Plan (the “Plan”), the Company may issue up to 10.0 million equity awards to employees, directors, consultants, and nonemployee service providers in the form of stock options, stock, restricted stock, and stock appreciation rights.

Stock options may be granted with a contractual life of up to ten years .

At September 30, 2025, the Company had 8.7 million shares available for grant under the Plan.

As of September 30, 2025, approximately 1,013,000 options were outstanding, 293,000 options were exercisable, and 720,000 options remained nonvested.

Unrecognized compensation expense related to these options at September 30, 2025 was $ 3,722 and is expected to be recognized over 6.5 years.

Total share based compensation expense for the three months ended September 30, 2025 and 2024 was $ 173 and $ 172 , respectively.

Total share based compensation expense for the nine months ended September 30, 2025 and 2024 was $ 518 and $ 603 , respectively.

The Company does not expect to pay dividends on its common stock.

Fair Value Measurements

The Company accounts for its investments and derivative instruments in accordance with the provisions of Accounting Standards Codification (“ASC”) 820 10, Fair Value Measurement, which among other things provides the framework for measuring fair value.

That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurement) and the lowest priority to unobservable inputs (Level III measurements).

The three levels of fair value hierarchy under ASC 820 10, Fair Value Measurement, are as follows:

Level I Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level II Significant observable inputs other than quoted prices in active markets for which inputs to the valuation methodology include:

(1) Quoted prices for similar assets or liabilities in active markets;

(2) Quoted prices for identical or similar assets or liabilities in inactive markets;

(3) Inputs other than quoted prices that are observable;

and (4) Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability.

Level III Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.

The asset or liability fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The Company’s financial instruments consist primarily of cash, accounts receivable, consumer loans, MHP Notes, other notes, accounts payable, and lines of credit.

The carrying amounts of cash, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement dates of these instruments.

This is considered a Level I valuation technique.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

At March 31, 2026, the Company had 9.2 million shares available for grant under the Plan.

As of March 31, 2026, stock options to purchase approximately 50,000 shares of common stock were outstanding under the Plan at an exercise price of $ 19.85 , and expire on dates ranging from December 2030 to December 2035, none of which are currently exercisable.

Unrecognized compensation expense related to these options at March 31, 2026 was $ 0.4 million and is expected to be recognized over 7.7 years .

Total share-based compensation expense was immaterial for the three months ended March 31, 2026 and 2025.

Recent Accounting Pronouncements

In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848):

Deferral of the Sunset Date of Topic 848.

The amendments in this update extend the transition relief period for reference rate reform from December 31, 2022 to December 31, 2024.

The amendments in ASU 2022-06 apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform.

ASU 2022-06 was effective upon issuance.

The new standard has had no material impact on the Company's financial statements.

In November, 2023 the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

ASU 2023-07 enhances current and interim annual reportable segment disclosures and requires additional disclosures about significant segment expenses.

Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as existing segment disclosures and reconciliation requirements in ASC 280 – Segment Reporting on an interim and annual basis.

We adopted ASU 2023-07 on a retrospective basis for annual periods starting with our Annual Report on Form 10-K for the year ended December 31, 2024.

Pronouncements Issued But Not Yet Adopted

In December 2023, the FASB issued Accounting Standard Update 2023-09, Income taxes (Topic 740):

Improvements to Income Tax Disclosures which requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction.

The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively.

The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

We are currently evaluating the disclosure requirements related to the new standard.

In November 2024, the FASB issued ASU 2024-03 , Income Statement Reporting - Comprehensive Income Expense - Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses .

3 unchanged sentences

The standard updates are to be applied prospectively with the option for retrospective application.

We are currently evaluating the impact of disclosure requirements related to the new standard on our financial statements.

The Company is currently evaluating the impact of the disclosure requirements related to the new standard on its financial statements.

Direct Sales include homes sold directly to independent retailers or customers that are not financed by the Company and are not sold under an inventory finance arrangement.

4 unchanged sentences

Inventory Finance Sales and Retail Store Sales of homes may be financed by the Company or a third party, or they may be paid in cash.

Revenue from product sales is recognized when the performance obligation under the terms of a contract with our customer is satisfied, which typically occurs upon delivery and transfer of title of the home, as this depicts when control of the promised good is transferred to our customers.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

For inventory financed sales, the independent dealer enters into a financing arrangement with the Company and is required to make monthly interest payments.

7 unchanged sentences

The Company has elected to use the practical expedient to expense the incremental costs of obtaining a contract if the amortization period of the asset that the Company would have otherwise recognized is one year or less.

Contract costs, which include commissions incurred related to the sale of homes, are expensed at the point-in-time when the related revenue is recognized.

Warranty costs and contract costs are included in selling, general and administrative expenses in the statements of income.

Warranty and contract costs were $ 489 and $ 474 for the three months ended September 30, 2025 and 2024, respectively.

Warranty and contract costs were $ 1,472 and $ 1,287 for the nine months ended September 30, 2025 and 2024, respectively.

For the three months ended September 30, 2025 and 2024, total cost of product sales included $ 1,798 and $ 1,450 of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales.

For the nine months ended September 30, 2025 and 2024, total cost of product sales included $ 6,005 and $ 4,198 of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales.

Warranty costs are included in selling, general, and administrative expenses, in the statements of income.

Warranty and contract costs were $ 0.3 million and $ 0.5 million for the three months ended March 31, 2026 and 2025, respectively.

For the three months ended March 31, 2026 and 2025, total cost of product sales included $ 1.7 million for both comparison periods consisting of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales.

Other revenue consists of contract deposit forfeitures, consignment fees, commercial lease rents, land sales, service fees and other miscellaneous income.

4 unchanged sentences

Revenue for service fees and miscellaneous income is recognized at a point in time when the performance obligation is satisfied.

Land sales revenue is comprised of sales of land (real property) that was acquired as a result of maintaining or furthering our primary business of producing, selling and financing mobile homes.

For the three and nine months ended September 30, 2025, there were no mobile home park (“MHP”) customers that accounted for more than 5.0 % of our product sales.

For the three months ended September 30, 2024, MHP sales to one independent third party and their affiliates accounted for $ 1,628 or 5.4 % of our product sales.

For the nine months ended September 30, 2024, MHP sales to two independent third party and their affiliates accounted for $ 5,212 or 5.6 % and $ 5,450 or 5.9 % of our product sales, respectively.

Land sales revenue is comprised of sales of land (real property) that was acquired as a result of maintaining or furthering our primary business of producing, selling, and financing manufactured homes.

Land sale revenue for the three months ended March 31, 2026 and 2025 were $ 1.1 million and $ 0.1 million, respectively.

For the three months ended March 31, 2026, there was one mobile home park (“MHP”) customer that accounted for more than 5.0 % of our total product sales.

Their MHP sales accounted for $ 1.4 million or 6.6 % of our total product sales.

For the three months ended March 31, 2025, there were no MHP customers that accounted for more than 5.0 % of our total product sales.

During the three months ended March 31, 2026, the Company received a non-refundable advance deposit of approximately $ 7.1 million from a single customer in connection with a large order of manufactured homes intended for use as workforce housing.

Production of the related units commenced during the first quarter of 2026, however no units had shipped and no revenue had been recognized in respect of the deposit as of March 31, 2026.

The deposit is included in customer deposits on the accompanying balance sheet.

Deliveries are expected to begin during the second quarter of 2026, and the Company expects to recognize substantially all of the related product sales revenue during the remainder of 2026 upon delivery and transfer of title of the units.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Disaggregation of Revenue.

The following table summarizes customer contract revenues disaggregated by the source of the revenue for the three and nine months ended September 30, 2025 and 2024:

The following table summarizes customer contract revenues disaggregated by the source of the revenue (in thousands):

Three months ended

Nine months ended

September 30,

Product sales:

13 unchanged sentences

CONSUMER LOANS RECEIVABLE

Consumer loans receivable result from financing transactions entered into with retail consumers of mobile homes sold through independent retailers and company-owned retail locations.

Consumer loans receivable generally consist of the sales price and any additional financing fees, less the buyer’s down payment.

Interest income is recognized monthly per the terms of the financing agreements.

The average contractual interest rate per loan was approximately 13.1 % as of September 30, 2025 and December 31, 2024.

Consumer loans receivable result from financing transactions entered into with retail consumers of manufactured homes sold through independent retailers and company-owned retail locations.

Consumer loans receivable generally consists of the sales price and any additional financing fees, less the buyer’s down payment.

Interest income is recognized monthly per the terms of the financing agreement.

The average contractual interest rate per loan was approximately 13.1 % for March 31, 2026 and December 31, 2025.

Consumer loans receivable have maturities that range from 3 to 30 years .

2 unchanged sentences

The Company may also receive escrow payments for property taxes and insurance included in its consumer loan collections.

The liabilities associated with these escrow collections totaled $ 13,551 and $ 11,623 as of September 30, 2025 and December 31, 2024, respectively, and are included in escrow liability in the accompanying balance sheets.

The liabilities associated with these escrow collections totaled $ 13.5 million and $ 13.1 million as of March 31, 2026 and December 31, 2025, respectively, and are included in escrow liability in the accompanying balance sheets.

Allowance for Loan Losses—Consumer Loans Receivable

The allowance for loan losses reflects management’s estimate of losses inherent in the consumer loans that may be uncollectible based upon review and evaluation of the consumer loan portfolio as of the date of the balance sheet.

An allowance for loan losses is determined after giving consideration to, among other things, the loan characteristics,

An allowance for loan losses is determined after giving consideration to, among other things, the loan characteristics, including the financial condition of borrowers, the value and liquidity of collateral, delinquency and historical loss experience.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

including the financial condition of borrowers, the value and liquidity of collateral, delinquency and historical loss experience.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The allowance for loan losses is comprised of two components:

23 unchanged sentences

At each reporting period, the fair value of the collateral is adjusted to the lower of the amount recorded at repossession or the estimated sales price less estimated costs to sell, based on current information.

Repossessed homes from the consumer loan portfolio totaled $ 7,956 and $ 3,931 as of September 30, 2025 and December 31, 2024, respectively, and are included in other assets in the accompanying balance sheets.

Consumer loans receivable, net of allowance for loan losses and deferred financing fees, consists of the following:

As of September 30,

Repossessed homes from the consumer loan portfolio totaled $ 10.6 million and $ 8.4 million as of March 31, 2026 and December 31, 2025, respectively, and are included in other assets in the accompanying balance sheets.

Consumer loans receivable, net of allowance for loan losses and deferred financing fees, consists of the following (in thousands):

As of March 31,

As of December 31,

5 unchanged sentences

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

The following table presents a detail of the activity in the allowance for loan losses:

Three months ended September 30,

Nine Months Ended September 30,

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The following table presents a detail of the activity in the allowance for loan losses (in thousands):

Three months ended March 31,

Allowance for loan losses, beginning of period

2 unchanged sentences

Allowance for loan losses, end of period

The following table presents impaired and general reserve for allowance for loan losses:

As of September 30,

As of December 31,

Total consumer loans

Allowance for loan losses

Impaired loans individually evaluated for impairment

Specific reserve against impaired loans

Other loans collectively evaluated for allowance

General allowance for loan losses

A detailed aging of consumer loans receivable that are past due is as follows:

As of September 30,

A detailed aging of consumer loans receivable that are past due is as follows (in thousands):

As of March 31,

As of December 31,

8 unchanged sentences

Loan delinquency reporting generally is based on borrower payment activity relative to the contractual terms of the loan.

The following table disaggregates the outstanding principal balance of consumer loans receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of September 30, 2025:

Year of Origination

4 unchanged sentences

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTES RECEIVABLE FROM MOBILE HOME PARKS

The notes receivable from mobile home parks (“MHP Notes”) relate to mobile homes sold to mobile home parks and financed through notes receivable.

The notes receivable from mobile home parks (“MHP Notes”) relate to manufactured homes sold to mobile home parks and financed through notes receivable.

The MHP Notes have varying maturity dates and require monthly principal and interest payments.

The interest rate on the MHP Notes can be fixed or variable, and the interest rates range from 4.9 % to 17.5 %.

The average interest rate per loan was approximately 8.09 % as of September 30, 2025 and 7.8 % as of December 31, 2024, with maturities that range from 1 to 10 years .

The collateral underlying the MHP Notes are individual mobile homes which can be repossessed and resold.

The average interest rate per loan was approximately 8.2 % as of March 31, 2026 and 8.1 % as of December 31, 2025, with maturities that range from 1 to 10 years .

The collateral underlying the MHP Notes are individual manufactured homes which can be repossessed and resold.

The MHP Notes are generally personally guaranteed by borrowers.

As of September 30, 2025, the Company had concentrations of MHP Notes with three independent third parties and their respective affiliates that equated to 24.1 %, 8.6 % and 10.3 % of the principal balance outstanding, all of which were secured by the mobile homes.

As of December 31, 2024, the Company had concentrations of MHP Notes with three independent third-parties and their respective affiliates that equated to 23.5 %, 14.6 % and 11.4 % of the principal balance outstanding, all of which were secured by the mobile homes.

As of March 31, 2026, the Company had concentrations of MHP Notes with three independent third parties and their respective affiliates that equated to 24.3 %, 11.1 %, and 8.7 % of the principal balance outstanding, all of which were secured by the manufactured homes.

As of December 31, 2025, the Company had concentrations of MHP Notes with three independent third-parties and their respective affiliates that equated to 24.7 %, 9.6 %, and 7.4 % of the principal balance outstanding, all of which were secured by the manufactured homes.

MHP Notes are stated at amounts due from customers, net of allowance for loan losses.

1 unchanged sentence

The Company establishes an allowance composed of specific and general reserve amounts.

As of September 30, 2025 and December 31, 2024, the MHP Notes balance is presented net of unamortized finance fees of $ 962 and $ 1,057 , respectively.

As of March 31, 2026 and December 31, 2025, the MHP Notes balance is presented net of unamortized finance fees of $ 1.0 million and $ 1.1 million, respectively.

The finance fees are amortized over the life of the MHP Notes.

As of September 30, 2025, there were past due balances of $ 702 on MHP Notes.

As of December 31, 2024, there were past due balances of $ 17 on the MHP Notes.

For the three and nine months ended September 30, 2025 and 2024, there were no charge offs recorded for MHP Notes.

Allowance for loan loss for the MHP Notes was $ 979 and $ 654 as of September 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025, there was an impaired balance of $ 410 of MHP Notes.

As of December 31, 2024, there was a minimal impaired balance of MHP Notes.

Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell.

As of March 31, 2026, there were past due balances of $ 0.2 million on MHP Notes.

As of December 31, 2025, there were past due balances of $ 0.6 million on the MHP Notes.

Settlement Agreement

Legacy and numerous entities owned or operated by one individual (the “Makers”) previously entered into several Promissory Notes (the “Notes”) valued at approximately $ 55 million.

In January 2024, the Makers defaulted on, and Legacy accelerated, a portion of the Notes valued at approximately $ 37 million.

The Notes were secured by mobile homes and mobile-home parks located in Texas, Mississippi, and Louisiana, and personally guaranteed by individuals (the “Personal Guarantors”).

During 2024, Legacy filed several lawsuits against the Makers and the Personal Guarantors and aggressively pursued the collateral.

On July 27, 2024, Legacy, the Makers, and the Personal Guarantors entered into a Settlement Agreement and Release (the “Agreement”).

The parties to the Agreement are Legacy, Legacy’s Executive Chairman, Curtis D.

Hodgson (collectively, the “Plaintiffs”), William Rodwell, Cynthia Rodwell, Tony Hartsgrove, Robert T.

Hutson II, Yakov Plotnikov, Eric D.

Wooten (collectively, the “Individual Defendants”), Cleveland MHC, LLC (“Cleveland”), Country Aire Homes of LA, LLC, Forest Hollow, LLC (“Forest Hollow”), Gulf Stream Homes of LA, LLC, Gulf Stream Homes of MS, LLC, Stellar GS Homes, LLC, SINOP GS Homes, LLC, Gulf Stream Manor Phase 2 Homes, LLC, Iowa Homes, LLC, Southern Pointe Homes, LLC, Southern Pointe Investments, LLC, Southern Pointe Investments II, LLC, Stellar GS Homes LLC, and Country Aire MHP LLC (collectively, the “Entity Defendants”).

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

As consideration for the mutual releases contained in the Agreement:

● Forest Hollow conveyed clear title, and the undisputed right to possess, all real and personal property located on or at the Forest Hollow Mobile Home Community, 6650 Broad Oak Street, Beaumont, TX 77713 (the “Forest Hollow Mobile Home Community”) to Legacy;

● Cleveland conveyed clear title, and the undisputed right to possess, all real and personal property located on or at the Cleveland Mobile Home Community, 110 Old Hwy 49 S.

Richland, MS 39218 (the “Cleveland Mobile Home Community”) to Legacy;

● Cleveland and Forest Hollow assigned all intangible assets, including all leases, contracts, and goodwill applicable or related to the real and personal property located on or at the Forest Hollow Mobile Home Community and the Cleveland Mobile Home Community to Legacy;

● The Individual and Entity Defendants irrevocably waived any and all claims related to existing deposits;

● Legacy refinanced the Entity and Individual Defendants’ remaining debt, pursuant to a new two-year , $ 48.6 million Promissory Note (the “New Note”).

The New Note bears interest at a fixed rate of 7.9 % , requires monthly payments of interest only for twenty-four months , and matures in July, 2026.

● Payments due on the New Note are current as of September 30, 2025.

The New Note is secured by a first priority interest in more than 1,000 mobile homes and two mobile-home parks located in Louisiana, and personal guarantees signed by the Individual Defendants.

The New Note is secured by the same Louisiana collateral as the old Notes, while providing additional legal efficiencies.

The Individual Defendants have personally guaranteed the New Note to the same extent they personally guaranteed the Entity Defendants’ prior debt.

The Company presents the entire New Note on the accompanying balance sheets under the heading Notes receivable from mobile home parks (“MHP”), and interest income associated with the New Note is presented on the accompanying statement of income under the heading Consumer, MHP and dealer loans interest.

Prior to the three months ending September 30, 2024, the Company classified the old Notes as MHP notes and other notes.

The Company sold the Forest Hollow Mobile Home Community in December, 2024.

The Company recorded the fair value of the real property from Cleveland on the accompanying balance sheets under the heading Property, plant and equipment, net and the fair value of the personal property from Cleveland on the accompanying balance sheets under the heading Other assets.

The Company recorded a gain of $ 5.4 million in 2024 on the settlement agreement and transactions related to the Cleveland Mobile Home Community and the Forest Hollow Mobile Home Community.

The Company evaluated the recoverability of the New Note as of September 30, 2025 and determined a provision for expected loan losses is not necessary based on the analysis of the fair value of underlying collateral.

Notes receivable from mobile home parks, net of allowance for loan losses and deferred financing fees, consisted of the following at September 30, 2025, December 31, 2024, and December 31, 2023:

As of September 30,

In 2024, the Company and various borrowers and guarantors (the “Makers”) entered into a Settlement Agreement and Release (the “Agreement”) to resolve disputes related to previously existing promissory notes with an aggregate principal balance of approximately $ 55.0 million, of which approximately $ 37.0 million had been accelerated following default.

As consideration under the Agreement, the Makers conveyed to the Company clear title to the Forest Hollow Mobile Home Community in Beaumont, Texas and the Cleveland Mobile Home Community in Richland, Mississippi, together with related personal property and intangible assets, and the parties executed a new $ 48.6 million promissory note (the “New Note”) bearing a fixed interest rate of 7.9 %, requiring monthly interest-only payments for twenty-four months and maturing in July 2026.

The New Note is secured by a first-priority interest in more than 1,000 manufactured homes and two mobile-home parks located in Louisiana and is personally guaranteed by the individual borrowers.

As of March 31, 2026, the Company evaluated the recoverability of the New Note and based on an analysis of the fair value of the underlying collateral, the current payment status of the borrowers, and other relevant credit quality indicators, determined that a provision for expected loan losses on the New Note was not necessary.

Notes receivable from mobile home parks, net of allowance for loan losses and deferred financing fees, consisted of the following (in thousands):

As of March 31,

As of December 31,

4 unchanged sentences

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

The following table presents a detail of the activity in the allowance for loan losses for the three and nine months ended September 30, 2025 and 2024:

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The following table presents a detail of the activity in the allowance for loan losses (in thousands):

Three months ended

Nine months ended

September 30,

Allowance for loan losses, beginning of period

Provision for loan losses

(Charge offs) recoveries

Allowance for loan losses, end of period

The following table presents impaired and general reserve for allowance for loan losses at September 30, 2025 and December 31, 2024:

As of September 30,

As of December 31,

Total MHP loans

Allowance for loan losses

Impaired loans individually evaluated for impairment

Specific reserve against impaired loans

Other loans collectively evaluated for allowance

General allowance for loan losses

We evaluate the credit quality of our MHP portfolio based on the aging status of the loan and by payment activity.

Loan delinquency reporting is generally based upon borrower payment activity relative to the contractual terms of the loan.

The following table disaggregates the outstanding principal balance of MHP receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of September 30, 2025:

Year of Origination

4 unchanged sentences

OTHER NOTES RECEIVABLE

Other notes receivable relate to notes issued to mobile home park owners and dealers and are not directly tied to the sale of mobile homes.

Other notes receivable relate to notes issued to mobile home park owners and dealers and are not directly tied to the sale of manufactured homes.

These other notes have varying maturity dates and generally require monthly principal and interest payments.

They are collateralized by mortgages on real estate, mobile homes that we have financed for which the borrower uses as offices, as well as vehicles.

They are collateralized by mortgages on real estate, manufactured homes that we have financed for which the borrower uses as offices, as well as vehicles.

These notes typically are personally guaranteed by the borrowers.

1 unchanged sentence

The Company reserves for estimated losses on the other notes based on current economic conditions that may affect the borrower’s ability to pay, the borrower’s financial strength, and historical loss experience.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

As of September 30, 2025, the Company had concentrations of other notes receivable with three independent third-parties and their respective affiliates that equated to 56.6 %, 11.3 % and 9.5 % of the principal balance outstanding, all of which were secured by the mobile homes.

As of December 31, 2024, the Company had concentrations of other notes receivable with three independent third-parties and their respective affiliates that equated to 33.7 %, 22.7 % and 10.5 % of the principal balance outstanding, all of which were secured by the mobile homes.

As of September 30, 2025, there were past due balances of $ 154 on other notes.

As of December 31, 2024, there were past due balances of $ 1,357 on other notes.

For the three and nine months ended September 30, 2025, there were $ 276 in charge offs recorded for other notes.

For the three and nine months ended September 30, 2024, there were no charge offs recorded for other notes.

Allowance for loan loss for the other notes was $ 209 and $ 364 as of September 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025 and December 31, 2024, the impaired balance of other notes was $ 57 and $ 141 , respectively.

As of March 31, 2026, the Company had concentrations of other notes receivable with three independent third-parties and their respective affiliates that equated to 53.0 %, 10.2 %, and 9.0 % of the principal balance outstanding, all of which were secured by the manufactured homes.

As of December 31, 2025, the Company had concentrations of other notes receivable with three independent third-parties and their respective affiliates that equated to 54.9 %, 10.6 %, and 9.2 % of the principal balance outstanding, all of which were secured by the manufactured homes.

As of March 31, 2026, there were past due balances of $ 0.2 million on other notes.

As of December 31, 2025, there were past due balances of $ 0.2 million on other notes.

For the three months ended March 31, 2026 and 2025, there were no charge offs recorded for other notes .

Allowance for loan loss for the other notes was $ 0.2 million as of March 31, 2026 and December 31, 2025.

As of March 31, 2026 and December 31, 2025, the impaired balance of other notes was $ 0.1 million.

Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell.

Other notes receivable, net of allowance for loan losses and deferred financing fees, consisted of the following at September 30, 2025, December 31, 2024 and December 31, 2023:

As of September 30,

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

Other notes receivable, net of allowance for loan losses and deferred financing fees, consisted of the following (in thousands):

As of March 31,

As of December 31,

3 unchanged sentences

Allowance for loan losses

The following table presents a detail of the activity in the allowance for loan losses for the three and nine months ended September 30, 2025 and 2024:

The following table presents a detail of the activity in the allowance for loan losses (in thousands):

Three months ended

Nine months ended

September 30,

Allowance for loan losses, beginning of period

Provision for loan losses

(Charge offs) recoveries

Allowance for loan losses, end of period

The following table presents impaired and general reserve for allowance for loan losses at September 30, 2025 and December 31, 2024:

As of September 30,

As of December 31,

Total Other notes receivable

Allowance for loan losses

Impaired loans individually evaluated for impairment

Specific reserve against impaired loans

Other notes receivable collectively evaluated for allowance

General allowance for loan losses

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

We evaluate the credit quality of our Other notes receivable portfolio based on the aging status of the loan and by payment activity.

Loan delinquency reporting generally is based on borrower payment activity relative to the contractual terms of the loan.

The following table disaggregates the outstanding principal balance of Other notes receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of September 30, 2025:

Year of Origination

4 unchanged sentences

DEALER FINANCED RECEIVABLES

Dealer finance receivable are receivables for loans that we make to independent retailers, or dealers, for the purchase of mobile homes so that dealers can then market them for sale to consumers.

Dealer financed receivables are receivables for loans that we make to independent retailers, or dealers, for the purchase of manufactured homes so that dealers can then market them for sale to consumers.

The loans are part of our inventory finance program.

In late 2022 and early 2023, the Company transitioned many of its dealers from a traditional consignment arrangement to an inventory finance arrangement.

The terms of the financing typically include a three year term, a monthly interest payment, an annual curtailment payment and require the retailer to pay the principal amount of the loan to the Company upon the earlier of the sale of the home by the retailer to its customer or the end of the term.

Dealer financed notes receivable, net of allowance for loan losses, consisted of the following at September 30, 2025, December 31, 2024 and December 31, 2023:

As of September 30,

Dealer financed notes receivable, net of allowance for loan losses, consisted of the following at March 31, 2026, December 31, 2025 and December 31, 2024 (in thousands):

As of March 31,

As of December 31,

2 unchanged sentences

Allowance for loan losses

The following table presents a detail of the activity in the allowance for loan losses for the three and nine months ended September 30, 2025 and 2024:

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The following table presents a detail of the activity in the allowance for loan losses (in thousands):

Three months ended

Nine months ended

September 30,

Allowance for loan losses, beginning of period

Provision for loan losses

(Charge offs) recoveries

Allowance for loan losses, end of period

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

The allowance for loan losses reflects management’s estimate of losses inherent in the dealer loans that may be uncollectible based on review and evaluation of the dealer loan portfolio as of the date of the balance sheet.

An allowance for loan losses is determined after considering, among other things, the loan characteristics, the financial condition of the dealer and the value and liquidity of collateral.

We evaluate the credit quality of our dealer financed receivables based on the length of time the Company’s collateral has remained unsold by the dealer in dealer inventory.

This table reflects the age of the loan receivable due (in thousands):

Year of Origination

% of Portfolio

< 1 year on lot

1-2 years on lot

2-3 years on lot

> 3 years on lot

INVENTORIES, NET

Inventories, net consisted of the following at September 30, 2025 and December 31, 2024:

As of September 30,

Inventories, net consisted of the following (in thousands):

As of March 31,

As of December 31,

2 unchanged sentences

Finished goods, net

Finished goods includes an allowance of $ 811 and $ 688 as of September 30, 2025 and December 31, 2024, respectively.

Finished goods includes an allowance of $ 534 and $ 559 as of March 31, 2026 and December 31, 2025, respectively.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following at September 30, 2025 and December 31, 2024:

As of September 30,

Property, plant and equipment consisted of the following (in thousands):

As of March 31,

As of December 31,

5 unchanged sentences

Total property, plant and equipment

Depreciation expense was $ 396 and $ 481 for the three months ended September 30, 2025 and 2024, respectively, and includes depreciation expense for leased mobile homes.

Depreciation expense also includes $ 164 and $ 168 as a component of cost of product sales for the three months ended September 30, 2025 and 2024, respectively.

Depreciation expense was $ 1,186 and $ 1,337 for the nine months ended September 30, 2025 and 2024, respectively, and includes depreciation expense for leased mobile homes.

Depreciation expense also includes $ 495 and $ 494 as a component of the cost of product sales for the nine months ended September 30, 2025 and 2024 respectively.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

Other assets consisted of the following at September 30, 2025 and December 31, 2024:

As of September 30,

Depreciation expense was $ 0.4 million for the three months ended March 31, 2026 and 2025, and includes depreciation expense for leased manufactured homes.

Depreciation expense also includes $ 0.3 million and $ 0.2 million as a component of cost of product sales for the three months ended March 31, 2026 and 2025, respectively.

Other assets consisted of the following (in thousands):

As of March 31,

As of December 31,

Repossessed homes

Repossessed homes balance as of September 30, 2025 includes $ 7,956 for homes repossessed from the consumer loan portfolio, $ 1,198 for homes repossessed from the MHP loan portfolio, and $ 558 for homes repossessed from the development loan portfolio.

Repossessed homes balance as of December 31, 2024 includes $ 3,931 for homes repossessed from the consumer loan portfolio and $ 1,198 for homes repossessed from the MHP loan portfolio.

Investment in Corpus AmeriCasa

Repossessed homes, net of allowances, as of March 31, 2026 include $ 10.6 million for homes repossessed from the consumer loan portfolio, $ 1.8 million for homes repossessed from the MHP loan portfolio, and $ 2.2 million for homes repossessed from dealers.

Repossessed homes, net of allowances, as of December 31, 2025 include $ 8.4 million for homes repossessed from the consumer loan portfolio, $ 1.8 million for homes repossessed from the MHP loan portfolio, and $ 2.4 million for homes repossessed from dealers.

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

ACCRUED LIABILITIES

Accrued liabilities consisted of the following at September 30, 2025 and December 31, 2024:

As of September 30,

Accrued liabilities consisted of the following (in thousands):

As of March 31,

As of December 31,

4 unchanged sentences

Federal and state income taxes

Unclaimed Property

Total accrued liabilities

LINES OF CREDIT

On July 28, 2023, the Company entered into a new Credit Agreement (the “Revolver”), by and among the Company as borrower, the financial institutions from time to time party thereto, as lenders, and Prosperity Bank as administrative agent.

Subsequently, the Company repaid in full the balance due on its prior line of credit with Capital One, N.A.

and all commitments under this prior line of credit were terminated.

The Revolver provides for a four-year senior secured revolving credit facility with an initial commitment of $ 50,000 and an additional $ 25,000 commitment under an accordion feature.

The Revolver is secured by the Company’s consumer loans receivables.

The Company has a Credit Agreement (the “Revolver”), by and among the Company as borrower, the financial institutions from time to time party thereto, as lenders, and Prosperity Bank as administrative agent.

The Revolver provides for a four-year senior secured revolving credit facility with an initial commitment of $ 50.0 million and an additional $ 25.0 million commitment under an accordion feature.

The Revolver is secured by the Company’s consumer loans receivables and all escrow accounts associated with the consumer loans receivables.

At the Company's option, borrowings will bear interest at a per annum rate equal to, (i) Term Secured Overnight Financing Rate (“SOFR”) plus an applicable margin of 2.5 % or 2.75 % based upon the Company's average quarterly borrowings under the Revolver or (ii) a base rate plus an applicable margin of 2.5 % or 2.75 % based upon the Company's average quarterly borrowings under the Revolver.

The Company paid certain arrangement fees and other fees in connection with the Revolver of approximately $ 0.3 million, which were capitalized as unamortized debt issuance costs and included within prepaids and other current assets in the accompanying balance sheets and are amortized to interest expense over the life of the Revolver.

The Revolver matures July 28, 2027.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

For the three months ended September 30, 2025 and 2024, interest expense under the Revolver was $ 2 and $ 175 respectively.

For the nine months ended September 30, 2025 and 2024, interest expense under the Revolver was $ 3 and $ 686 respectively.

The outstanding balance of the Revolver as of September 30, 2025 and December 31, 2024 was $ 0 and $ 0 respectively.

The interest rate in effect as of September 30, 2025 and December 31, 2024 for the Revolver was 7.25 % and 7.61 %, respectively.

The amount of available credit under the Revolver was $ 50,000 and $ 50,000 as of September 30, 2025 and December 31, 2024, respectively.

For the three months ended March 31, 2026 and 2025, interest expense under the Revolver was $ 11 thousand and $ 0 respectively.

The outstanding balance of the Revolver as of March 31, 2026 and December 31, 2025 was $ 0.9 million and $ 0 respectively.

The interest rate in effect as of March 31, 2026 and December 31, 2025 for the Revolver was 6.13 % and 6.69 %, respectively.

The amount of available credit under the Revolver was $ 49.1 million and $ 50 million as of March 31, 2026 and December 31, 2025, respectively.

The Revolver requires the Company to comply with certain financial and non-financial covenants.

As of September 30, 2025, the Company was in compliance with all financial covenants, including that it maintain a maximum leverage ratio of no more than 1.00 to 1.00 and a minimum fixed charge coverage ratio of no less than 1.75 to 1.00.

The provision for income tax expense for the three and nine months ended September 30, 2025 was $ 1,612 and $ 7,145 respectively.

The effective tax rate for the three and nine months ended September 30, 2025 was 15.7 % and 17.5 %, respectively.

These rates differ from the federal statutory rate of 21 % primarily due to a federal tax credit for the sale of energy efficient homes under the Internal Revenue Code §45L and to a $ 5.0 million federal tax credit purchased by the Company at a discount in the second and third quarters and applied to the current year, both partially offset by state income taxes.

The provision for income tax expense for the three and nine months ended September 30, 2024 was $ 3,522 and $ 10,502 respectively.

The effective tax rate for the three and nine months ended September 30, 2024 was 18.2 % This rate differs from the federal statutory rate of 21 % primarily due to a federal tax credit for the sale of energy efficient homes under the Internal Revenue Code §45L, partially offset by state income taxes.

As of March 31, 2026, the Company was in compliance with all financial covenants, including that it maintains a maximum leverage ratio of no more than 1.00 to 1.00 and a minimum fixed charge coverage ratio of no less than 1.75 to 1.00.

As part of the acquisition of AmeriCasa, we assumed a line of credit with 21st Mortgage in the amount of $ 1.3 million at the time of the acquisition.

As of December 31, 2025, the balance of the line of credit was $ 1.2 million which we paid off in January 2026.

The provision for income tax expense for the three months ended March 31, 2026 and 2025 was $ 2.1 million and $ 2.5 million respectively.

The Company's effective tax rate for the three month period ended March 31, 2026 was 16.1 %.

The primary drivers of the variance from the federal statutory tax rate of 21.0 % were the Federal Energy Efficient Home Improvement credit and a discount for transferable tax credits purchased during the quarter ended March

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The Company's effective tax rate for the three month period ended March 31, 2025 was 19.3 %.

The primary driver of the variance from the federal statutory tax rate of 21.0 % was the Federal Energy Efficient Home Improvement credit, which was partially offset by state income taxes.

The §45L tax credit was initially established under the Federal Energy Policy Act of 2005 and ends June 30, 2026 pursuant to the One, Big, Beautiful Bill Act of 2025.

4 unchanged sentences

The Company will adjust its self-insured medical benefits reserve based on actual experience, estimated costs and changes to assumptions.

As of September 30, 2025 and December 31, 2024, the Company accrued a $ 772 and $ 861 liability for incurred but not reported claims, respectively.

These accrued amounts are included in accrued liabilities on the accompanying balance sheets.

As of March 31, 2026 and December 31, 2025, the Company accrued a $ 0.2 million and $ 0.8 million liability for incurred but not reported claims, respectively.

These accrued amounts are included in accrued liabilities on the accompanying balance sheet.

The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for independent retailers of its products.

2 unchanged sentences

The Company believes that risk of loss is mitigated due to the resale value of the repurchased homes and the fact that the agreements are spread over many retailers.

The maximum amount for which the Company was liable under such agreements approximated $ 713 and $ 805 at September 30, 2025 and December 31, 2024 respectively without reduction for the resale value of the homes.

The Company considers its obligations on current contracts to be immaterial and accordingly has not recorded any reserve for repurchase commitment as of September 30, 2025 and December 31, 2024.

The maximum amount for which the Company was liable under such agreements approximated $ 1.4 million and $ 0.8 million at March 31, 2026 and December 31, 2025 respectively without reduction for the resale value of the homes.

The Company considers its obligations on current contracts to be immaterial and accordingly has not recorded any reserve for repurchase commitment as of March 31, 2026 and December 31, 2025.

The Company leases facilities under operating leases that typically have 10 year terms.

These leases usually offer the Company a right of first refusal that affords the Company the option to purchase the leased premises under certain terms in the event the landlord attempts to sell the leased premises to a third party.

Rent expense for the three months ended September 30, 2025 and 2024 was $ 114 and $ 160 respectively.

Rent expense for the nine months ended September 30, 2025 and 2024 was $ 398 and $ 480 respectively.

Rent expense for the three months ended March 31, 2026 and 2025 was $ 0.2 million and $ 0.1 million respectively.

The Company also subleases properties to third parties, ranging from 3-year to 11-year terms with various renewal options.

Rental income from the subleased properties for the three months ended September 30, 2025 and 2024 was approximately $ 26 and $ 17 respectively.

Rental income

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

from the subleased properties for the nine months ended September 30, 2025 and 2024 was approximately $ 69 and $ 131 respectively.

Rental income from the subleased properties for the three months ended March 31, 2026 and 2025 was immaterial.

Legal Matters

Legal Proceedings

The Company is party to certain legal proceedings that arise in the ordinary course of business and are incidental to its business.

Certain of the claims pending against the Company in these proceedings allege, among other things, breach of contract and warranty, product liability, and personal injury.

The Company has determined that it is probable that it has some liability related to the claims.

The Company has included legal reserves of $ 855 and $ 328 as of September 30, 2025 and December 31, 2024, respectively, in accrued liabilities on the accompanying balance sheets.

Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened litigation or claims will have a material adverse effect on the Company’s financial position, liquidity or results of operations.

However, future events or circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company’s financial position, liquidity or results of operations in any future reporting periods.

The Company has determined that it is probable that it has some liability related to such claims.

The Company has included legal reserves of $ 1.0 million as of March 31, 2026 and December 31, 2025, in accrued liabilities on the accompanying balance sheets.

Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened ordinary course litigation or claims will have a material adverse effect on the Company's financial position, liquidity, or results of operations.

However, future events or circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company's financial position, liquidity, or results of operations in any future reporting.

AmeriCasa Litigation

On March 13, 2026, the Company filed an Original Petition in the District Court of Tarrant County, Texas against the seller entities and certain individuals related to the Company's November 2025 acquisition of substantially all

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

of the assets of AmeriCasa Solutions, LLC and its affiliates.

The Company's claims relate principally to alleged misrepresentations and omissions made in connection with the acquisition and to the alleged post-closing misappropriation of receipts attributable to the acquired assets.

A description of the proceeding is included in Part II, Item 1, Legal Proceedings, of this Quarterly Report on Form 10-Q.

For information regarding events occurring subsequent to March 31, 2026 related to this matter, see Note 17 — Subsequent Events.

The litigation is not material to the Company's financial position, liquidity, or results of operations.

The Company has not accrued a loss contingency with respect to this matter.

The acquired assets remain within the measurement period under ASC 805, Business Combinations, and the Company continues to evaluate the facts and circumstances surrounding the acquisition, including information that may become available through the litigation, for purposes of finalizing its acquisition accounting and assessing recoverability of the acquired assets.

An adverse outcome in the litigation, or further developments concerning the underlying facts, could result in an adjustment to the provisional amounts recorded in connection with the acquisition, or both, in a future period.

For information regarding receivables and payables between the Company and the Seller arising from post-closing operations of the acquired business, see Note 16 — Related Party Transactions.

FAIR VALUE MEASUREMENTS

The following table shows the estimated fair market value and book value of our consumer loan portfolio, MHP notes and other notes, net of allowances, loan discount fees and deferred financing fees, as of September 30, 2025 and December 31, 2024:

As of September 30,

The Company accounts for its investments and derivative instruments in accordance with the provisions of “ASC 820-10, Fair Value Measurement, which among other things provides the framework for measuring fair value.

That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

The three levels of fair value hierarchy under ASC 820-10, Fair Value Measurement, are as follows:

Level I Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level II Significant observable inputs other than quoted prices in active markets for which inputs to the valuation methodology include:

(1) Quoted prices for similar assets or liabilities in active markets;

(2) Quoted prices for identical or similar assets or liabilities in inactive markets;

(3) Inputs other than quoted prices that are observable;

and (4) Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability.

Level III Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.

The asset or liability fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The Company’s financial instruments consist primarily of cash, accounts receivable, consumer loans, MHP Notes, other notes, accounts payable, and lines of credit.

This is considered a Level I valuation technique.

The following table shows the estimated fair

LEGACY HOUSING CORPORATION

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

market value and book value of our consumer loan portfolio, MHP Notes and other notes, net of allowances, loan discount fees and deferred financing fees (in thousands):

As of March 31,

As of December 31,

11 unchanged sentences

This is considered a Level III valuation technique.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

EARNINGS PER SHARE

4 unchanged sentences

Three months ended

Nine months ended

September 30,

Net income (in 000's)

5 unchanged sentences

Earnings per share

In November 2022, our Board of Directors approved a share repurchase program to authorize the repurchase of up to $ 10.0 million of the Company’s common stock.

On August 6, 2024, our Board of Directors authorized the repurchase of an additional $ 10.0 million of the Company’s common stock under the share repurchase program.

We repurchased 262,530 shares of common stock for $ 5,398 in the open market during the year ended December 31, 2024.

We repurchased 29,385 shares of common stock for $ 675 in the open market during the three months ended March 31, 2025.

We repurchased 260,635 shares of common stock for $ 5,817 in the open market during the three months ended June 30, 2025.

No shares were repurchased during the three months ended September 30, 2025.

As of September 30, 2025, we had a remaining authorization of approximately $ 8,110 .

We repurchased 29,385 shares of common stock for $ 0.7 million in the open market during the three months ended March 31, 2025.

We repurchased 346,406 shares of common stock for $ 7.6 million in the open market during the year ended December 31, 2025.

The November 2022 share repurchase program expired on October 31, 2025.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

On February 6, 2026, the Board of Directors authorized a stock repurchase program (the "Repurchase Program") under which the Company may repurchase up to $ 10.0 million of its outstanding common stock from time to time through February 28, 2029.

Repurchases may be made in the open market or through privately negotiated transactions, with the timing, manner, price and volume of any repurchases determined by the Company's Executive Chairman and Chief Executive Officer, or either of them, in their sole discretion, based on market conditions, the Company's cash reserves and cash flow, and the relative attractiveness of alternative uses of capital for operations, growth and share repurchases.

During the three months ended March 31, 2026, the Company repurchased 30,740 shares of its common stock under the Repurchase Program at an aggregate cost of approximately $ 0.6 million, or an average price of $ 18.63 per share, leaving approximately $ 9.4 million available for future repurchases under the Repurchase Program.

Open market repurchases under the Repurchase Program are intended to be made in compliance with the non-exclusive safe harbor conditions of Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

The Repurchase Program does not obligate the Company to acquire any particular amount of common stock, has no expiration date prior to February 28, 2029, and may be suspended, modified or discontinued at any time without prior notice.

Shares repurchased under the program will be held as treasury shares.

The Company has determined that repurchases under the Repurchase Program are permitted under the terms of its existing bank credit facilities and other indebtedness.

RELATED PARTY TRANSACTIONS

Bell Mobile Homes (“Bell”), a retailer owned by one of the Company’s significant stockholders, purchases manufactured homes from the Company.

Accounts receivable balances due from Bell were $ 269 and $ 115 as of September 30, 2025 and December 31, 2024, respectively.

Accounts payable balances due to Bell were $ 53 and $ 58 as of September 30, 2025 and December 31, 2024, respectively.

Home sales to Bell were $ 1,168 and $ 1,700 for the three months ended September 30, 2025 and 2024, respectively.

Home sales to Bell were $ 2,715 and $ 4,131 for the nine months ended September 30, 2025 and 2024, respectively.

Accounts receivable balances due from Bell were $ 0.2 million and $ 0.6 million as of March 31, 2026 and December 31, 2025, respectively.

Accounts payable balances due to Bell were immaterial as of March 31, 2026 and December 31, 2025, respectively.

Home sales to Bell were $ 1.0 million and $ 0.4 million for the three months ended March 31, 2026 and 2025, respectively.

Shipley Bros., Ltd.

and Crazy Red’s Mobile Homes (together, “Shipley”), retailers owned by one of the Company’s significant shareholders, purchase manufactured homes from the Company.

Accounts receivable balances due from Shipley were $ 207 and $ 78 as of September 30, 2025 and December 31, 2024, respectively.

Accounts payable balances due to Shipley were $ 12 and $ 22 as of September 30, 2025 and December 31, 2024, respectively.

Home sales to Shipley were $ 324 and $ 452 for the three months ended September 30, 2025 and 2024, respectively.

Home sales to Shipley were $ 1,521 and $ 2,113 for the nine months ended September 30, 2025 and 2024, respectively.

Accounts receivable balances due from Shipley were $ 0.1 million as of March 31, 2026 and December 31, 2025, respectively.

Accounts payable balances due to Shipley were immaterial as of March 31, 2026 and December 31, 2025, respectively.

Home sales to Shipley were $ 0.1 million and $ 0.4 million for the three months ended March 31, 2026 and 2025, respectively.

AmeriCasa Solutions, LLC and its affiliates ("AmeriCasa") are the seller entities from which the Company acquired substantially all of the assets of AmeriCasa's business in November 2025 pursuant to the Asset and Membership Interest Purchase Agreement dated October 30, 2025, as amended.

The Company and AmeriCasa continue to reconcile amounts arising from operations of the acquired business between the November 1, 2025 effective date and March 31, 2026.

As of March 31, 2026, the Company had recorded approximately $ 1.0 million in accounts receivable from AmeriCasa, included in accounts receivable, net, and approximately $ 0.8 million payable to AmeriCasa, included in accrued liabilities, on the accompanying balance sheet.

These amounts do not include any amounts held in escrow or subject to purchase-price holdbacks under the Asset and Membership Interest Purchase Agreement.

Realization of the recorded receivable and the ultimate amount of any payable to AmeriCasa are subject to the matters described in Note 13 — Commitments and Contingencies and Part II, Item 1 — Legal Proceedings of this Quarterly Report.

SUBSEQUENT EVENTS

On September 27, 2025, Robert Duncan Bates, President and Chief Executive Officer of the Company, submitted his resignation, effective October 10, 2025.

Bates’ resignation was a personal decision and is not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices.

Effective October 1, 2025, Kenneth E.

Shipley, Co-founder, Executive Vice President, and a member of the Board of Directors, assumed the role of Chief Executive Officer on an interim basis while the Company searches for a permanent replacement.

On October 6, 2025, Jeffrey M.

Fiedelman, Chief Financial Officer, submitted his resignation, effective October 10, 2025.

Fiedelman’s resignation was a personal decision and is not the result of any disagreement with the Company regarding financial operations, policies, or procedures.

On October 7, 2025, the Board of Directors appointed Ronald C.

Arrington, a former CFO, as Interim Chief Financial Officer.

The Company's General Counsel also resigned concurrent with these transitions.

The Board is currently evaluating both permanent and interim replacements for these senior management roles.

Asset Acquisition of AmeriCasa Solutions LLC and certain affiliated entities

On October 30, 2025, the Company entered into an Asset and Membership Interest Purchase Agreement (the “Agreement”) with AmeriCasa Solutions LLC and certain affiliated entities (collectively, the “Seller Entities”).

Pursuant to the terms of the Agreement, the Company agreed to acquire substantially all of the assets and certain membership interests related to the Seller Entities’ business (the “Business”).

The Business consists of the sale and distribution of manufactured housing, related real property leasing and sales, financing and insurance services, and the operation of the “FutureHomeX” cloud-based SaaS platform for manufactured home retailers and communities.

Under the Agreement, the Company will acquire intellectual property, real property, inventory, accounts receivable arising after closing, assigned contracts, permits and goodwill, and 28.75 % of the membership interests in AmeriCasa-Corpus Christi, LLC, free and clear of all encumbrances other than permitted encumbrances.

Certain assets, including cash, specified accounts receivable, excluded contracts, benefit plans and other items set forth in the Agreement, are excluded from the transaction.

The Company will assume only specified liabilities, including certain trade payables and liabilities under assigned contracts arising after the closing, as well as other liabilities set forth in the Agreement.

All other liabilities, including those related to taxes for pre-closing periods, benefit plans, excluded assets and pre-closing actions, will remain with the Seller Entities.

The Company has evaluated subsequent events through May 7, 2026, the date these unaudited financial statements were available to be issued.

Other than the matter described below, the Company is not aware of any subsequent events that would require recognition or disclosure in these unaudited financial statements.

LEGACY HOUSING CORPORATION

NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

(dollars in thousands)

The aggregate purchase price consists of (i) $ 12,000 in cash, (ii) 92 % of the principal amount of all notes receivable of the Seller Entities not more than 40 days past due as of closing, payable in cash, and (iii) the assumption of the Assumed Liabilities (collectively, the “Purchase Price”).

The Purchase Price will be allocated among the Purchased Assets as set forth in an allocation schedule to be agreed upon at closing.

The closing of the transaction is subject to customary conditions, including the accuracy of representations and warranties, performance of covenants, receipt of required consents and permits, absence of material adverse effect, delivery of closing deliverables and release of encumbrances on the purchased assets.

The Agreement may be terminated under certain circumstances, including by mutual consent, failure to satisfy closing conditions by the outside date of November 28, 2025, or the existence of legal prohibitions on consummation of the transaction.

For SEC reporting purposes, this acquisition is not considered to be significant.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

AmeriCasa Litigation — Subsequent Developments

As described in Note 13 — Commitments and Contingencies and in Part II, Item 1, Legal Proceedings, of this Quarterly Report on Form 10-Q, on March 13, 2026, the Company filed an action in the District Court of Tarrant County, Texas against the seller entities and certain individuals related to the Company's November 2025 acquisition of substantially all of the assets of AmeriCasa Solutions, LLC and its affiliates.

On April 7, 2026, the Company filed an Amended Petition and Application for Temporary Restraining Order, Temporary Injunction, and Permanent Injunction.

On April 10, 2026, the District Court declined to issue the temporary restraining order, citing the availability of an adequate remedy at law.

The Company's application for temporary and permanent injunctive relief, along with its claims for damages and other relief, remains pending.

On April 16, 2026, the seller defendants removed the matter to the Texas Business Court, Eighth Division (Cause No.

26-BC08B-0013), where it is now pending.

On April 20, 2026, the seller defendants filed an answer asserting affirmative defenses and counterclaims against the Company.

The counterclaims allege breach of contract (including alleged underpayment of the purchase price under the Asset and Membership Interest Purchase Agreement and alleged failure to honor assumed contracts), unjust enrichment, constructive termination of Norman Newton’s employment, and fraud, and seek monetary damages stated as $ 1.0 million or more, exemplary damages, and attorneys' fees.

The Company believes the counterclaims are without merit and intends to defend against them.

The Company does not believe that the counterclaims, even if resolved adversely to the Company, would result in a loss that is material to the Company's financial position, liquidity, or results of operations.

The Company has not accrued a loss contingency with respect to the counterclaims.

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

What changed 10-Q

Item 1. Financial Statements