What changed in this filing

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Item 1. Financial Statements

2025-04-30 compared with 2024-10-30 · 222 added, 202 removed, 472 unchanged (47% of the section changed)

3 unchanged sentences

(Dollars in thousands)

September 28, 2024

March 29, 2025

December 31, 2024

19 unchanged sentences

(Dollars in thousands, except per share data )

September 28, 2024

March 29, 2025

December 31, 2024

9 unchanged sentences

Product liability accrual

Lease liability (Note 5)

Lease liabilities (Note 5)

Contingent liabilities (Note 13)

23 unchanged sentences

Three Months Ended

Nine Months Ended

September 28,

September 30,

September 28,

September 30,

March 29, 2025

March 30, 2024

Net firearms sales

18 unchanged sentences

Cash dividends per share

See notes to condensed consolidated financial statements.

See notes to condensed consolidated financial

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(Dollars in thousands)

8 unchanged sentences

Repurchase of 79,200 shares of common stock

Balance at September 28, 2024

Balance at March 29, 2025

$ ( 195,022 )

Balance at December 31, 2023

$ ( 157,623 )

Net income and comprehensive income

Common stock issued – compensation plans

Vesting of RSUs

Dividends paid

Unpaid dividends accrued

Recognition of stock-based compensation expense

Repurchase of 75,024 shares of common stock

Balance at March 30, 2024

$ ( 160,842 )

See notes to condensed consolidated financial statements.

2 unchanged sentences

( Dollars in thousands)

Nine Months Ended

September 28,

September 30,

Three Months Ended

March 29, 2025

March 30, 2024

Operating Activities

3 unchanged sentences

Excess and obsolescence inventory reserve

Gain on sale of assets

Deferred income taxes

2 unchanged sentences

Trade accounts payable and accrued expenses

Contract liability with customers

Contract liabilities with customers

Employee compensation and benefits

1 unchanged sentence

Prepaid expenses, other assets and other liabilities

Income taxes payable

Cash provided by operating activities

1 unchanged sentence

Property, plant and equipment additions

Proceeds from sale of assets

Purchases of short-term investments

Proceeds from maturities of short-term investments

Cash (used for) provided by investing activities

Cash provided by investing activities

Financing Activities

3 unchanged sentences

Cash used for financing activities

Decrease in cash and cash equivalents

Increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

14 unchanged sentences

considered necessary for a fair presentation of the results of the interim periods.

Operating results for the three and nine months ended

September 28, 2024 may not be indicative of the results to be expected for the full year ending December 31, 2024.

These financial statements

have been prepared on a basis that is substantially consistent with the accounting principles applied in the Company’s Annual Report

Operating results for the three months ended March

29, 2025 may not be indicative of the results to be expected for the full year ending December 31, 2025.

These financial statements have

been prepared on a basis that is substantially consistent with the accounting principles applied in the Company’s Annual Report

on Form 10-K for the year ended December 31, 2024.

5 unchanged sentences

99 % of sales are from firearms.

Export sales accounted for approximately 5 % and 7 % of total sales for the nine month periods ended September

28, 2024 and September 30, 2023, respectively.

The Company’s design and manufacturing operations are located in the United States

and almost all product content is domestic.

The Company’s firearms are sold through a select number of independent wholesale distributors,

principally to the commercial sporting market.

Export sales accounted for approximately 5 % of total sales for each of the three month periods ended March

29, 2025 and March 30, 2024.

The Company’s design and manufacturing operations are located in the United States and almost all product

content is domestic.

The Company’s firearms are sold through a select number of independent wholesale distributors, principally

to the commercial sporting market.

The Company also manufactures

15 unchanged sentences

In some instances, sales include multiple performance obligations.

The most common of these instances relates to sales

promotion programs under which downstream customers are entitled to receive no charge products based on their purchases of certain of

the Company’s products from the independent distributors.

The most common of these instances relates to sales promotion

programs under which downstream customers are entitled to receive no charge products based on their purchases of certain of the Company’s

products from the independent distributors.

The fulfillment of these no charge products is the Company’s responsibility.

In such instances, the Company allocates the revenue of the promotional sales based on the estimated level of participation in the sales

promotional program and the timing of the shipment of all of the firearms included in the promotional program, including the no charge

Revenue is recognized proportionally as each performance obligation is satisfied, based on the relative customary price of

each product.

Customary prices are generally determined based on the prices charged to the independent distributors.

The net change in

contract liabilities for a given period is reported as an increase or decrease to sales.

instances, the Company allocates the revenue of the promotional sales based on the estimated level of participation in the sales promotional

program and the timing of the shipment of all of the firearms included in the promotional program, including the no charge firearms.

is recognized proportionally as each performance obligation is satisfied, based on the relative customary price of each product.

prices are generally determined based on the prices charged to the independent distributors.

The net change in contract liabilities for

a given period is reported as an increase or decrease to sales.

Fair Value of Financial Instruments:

The carrying amounts of financial

instruments, including cash, short-term investments, accounts receivable, accounts payable and accrued liabilities, approximate fair

value due to the short-term maturity of these items.

instruments, including cash, short-term investments, accounts receivable, accounts payable and accrued liabilities, approximate fair value

due to the short-term maturity of these items.

The Company’s short-term

2 unchanged sentences

price, as reported by the fund, based on the amortized cost of the fund’s securities.

The NAV is used as a practical expedient

to estimate fair value.

The NAV is used as a practical expedient to

estimate fair value.

This practical expedient is not used when it is determined to be probable that the fund will sell the investment

12 unchanged sentences

The final rules will require information about a company’s climate-related risks that have materially

impacted or are reasonably likely to have a material impact on its business strategy, results of operations, or financial condition,

and the actual and potential material impacts of any identified climate-related risks on the company’s strategy, business model

and outlook, as well as relating to assessment, management, oversight and mitigation of such material risks, material climate-related

targets and goals, and material greenhouse gas emissions.

Additionally, certain disclosures related to severe weather events and other

natural conditions will be required in the audited financial statements.

The first phase of the final rule is effective for fiscal years

beginning in 2025.

impacted or are reasonably likely to have a material impact on its business strategy, results of operations, or financial condition, and

the actual and potential material impacts of any identified climate-related risks on the company’s strategy, business model and

outlook, as well as relating to assessment, management, oversight and mitigation of such material risks, material climate-related targets

and goals, and material greenhouse gas emissions.

Additionally, certain disclosures related to severe weather events and other natural

conditions will be required in the audited financial statements.

The first phase of the final rule is effective for fiscal years beginning

Disclosure for prior periods is only required if it was previously disclosed in an SEC filing.

On April 4, 2024, the

SEC voluntarily stayed implementation of the final rule to facilitate the orderly judicial resolution of pending legal challenges to

On April 4, 2024, the SEC voluntarily

stayed implementation of the final rule to facilitate the orderly judicial resolution of pending legal challenges to the rule.

27, 2025, the SEC voted to end its defense of these rules, and sent a letter to the court before which the rules are being challenged

withdrawing its defense of the rules and stating that SEC counsel is no longer authorized to advance the arguments made in the brief that

the SEC had filed.

We are currently evaluating the impact on our disclosures of adopting this new pronouncement.

In November of 2023, the

Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable

Segment Disclosures.” The updated accounting guidance requires enhanced reportable segment disclosures, primarily related to significant

segment expenses which are regularly provided to the chief operating decision maker.

The guidance is effective for fiscal years beginning

after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.

Retrospective application is required

and early adoption is permitted.

The Company is currently evaluating the effect the updated guidance will have on its financial statement

In December of 2023, the

FASB issued ASU 2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.” The updated accounting guidance

requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the effective tax rate reconciliation

and income taxes paid.

The guidance is effective for fiscal years beginning after December 15, 2024.

Prospective application is required,

with retrospective application permitted.

The Company is currently evaluating the effect the updated guidance will have on its financial

statement disclosures.

In December of 2023, the Financial

Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic

Improvements to Income Tax Disclosures.” The updated accounting guidance requires expanded income tax disclosures, including

the disaggregation of existing disclosures related to the effective tax rate reconciliation and income taxes paid.

The guidance is effective

for fiscal years beginning after December 15, 2024.

Prospective application is required, with retrospective application permitted.

Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures.

In November 2024, the FASB

issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic

Disaggregation of Income Statement Expenses (“ASU 2024-03”).” This guidance requires the disaggregation of

certain expense captions into specified categories in disclosures within the notes to the financial statements to provide enhanced transparency

into the expense captions presented on the statement of earnings.

It is effective for annual reporting periods beginning after December

15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted.

Adoption may be applied either prospectively

to financial statements issued for reporting periods after the effective date of ASU 2024-03 or retrospectively to any or all prior periods

presented in the financial statements.

The Company is evaluating the impact of this guidance on the Company’s related disclosures.

NOTE 3 - REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS

The impact of ASC 606 on revenue

recognized during the three and nine months ended September 28, 2024 and September 30, 2023 is as follows:

recognized during the three months ended March 29, 2025 and March 30, 2024 is as follows:

Three Months Ended

Nine Months Ended

September 28,

September 30,

September 28,

September 30,

March 29, 2025

March 30, 2024

Contract liabilities with customers at beginning of period

2 unchanged sentences

Contract liabilities with customers at end of period

As more fully described in

the Revenue Recognition section of Note 2, the deferral of revenue and subsequent recognition thereof relates to certain of the Company’s

As more fully described in the

Revenue Recognition section of Note 2, the deferral of revenue and subsequent recognition thereof relates to certain of the Company’s

sales promotion programs that include the future shipment of free products.

The Company expects the remaining deferred revenue from the

contract liabilities with customers to be recognized in the second quarter of 2025.

Practical Expedients and Exemptions

12 unchanged sentences

Inventories consist of the following:

September 28, 2024

March 29, 2025

December 31, 2024

15 unchanged sentences

table below presents the right-of-use assets and related lease liabilities recognized on the Condensed Consolidated Balance Sheet as of

September 28, 2024:

Balance Sheet Line Item September 28, 2024

March 29, 2025:

Balance Sheet Line Item March 29, 2025

Right-of-use assets Other assets $ 2,219

15 unchanged sentences

paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount

Nine Months Ended

September 28,

2024 September 29,

Three Months Ended

March 29, 2025 March 30, 2024

Cash paid for amounts included in the measurement of lease liabilities $ 180 $ 203

5 unchanged sentences

the undiscounted future minimum lease payments to the total operating lease liabilities recognized on the Condensed Consolidated Balance

Sheet as of September 28, 2024:

Sheet as of March 29, 2025:

Remainder of 2025

15 unchanged sentences

Expenses related to these matching contributions totaled $ 1.2 million and $ 1.2 million for the

three and nine months ended September 28, 2024, respectively, and $ 1.0 million and $ 3.7 million for the three and nine months ended September

30, 2023, respectively.

The Company plans to contribute approximately $ 1.0 million to the plan in matching employee contributions during

the remainder of 2024.

three months ended March 29, 2025 and March 30, 2024, respectively.

The Company plans to contribute approximately $ 3.0 million to the

plan in matching employee contributions during the remainder of 2025.

In addition, the Company provided

supplemental discretionary contributions to the 401(k) plan totaling $ 1.5 million and $ 5.3 million for the three and nine months ended

September 28, 2024, respectively, and $ 1.6 million and $ 5.3 million for the three and nine months ended September 30 , 2023, respectively.

The Company plans to contribute approximately $ 1.5 million in supplemental contributions to the plan during the remainder of 2024.

supplemental discretionary contributions to the 401(k) plan totaling $ 2.0 million and $ 2.0 million for the three months ended March 29,

2025 and March 30, 2024, respectively.

The Company plans to contribute approximately $ 4.5 million in supplemental contributions to the

plan during the remainder of 2025.

NOTE 8 - INCOME TAXES

3 unchanged sentences

The Company’s effective income tax rate was 20.3 %

and 18.9 % for the three and nine months ended September 28, 2024, respectively.

The Company’s effective income tax rate was 8.1 %

and 18.9 % for the three and nine months ended September 30, 2023, respectively.

and 21.7 % for the three months ended March 29, 2025 and March 30, 2024, respectively.

Income tax payments totaled

$ 1.1 million and $ 10.6 million for the three and nine month periods ended September 28, 2024, respectively.

Income tax payments for the

three and nine months ended September 30, 2023 totaled $ 7.3 million and $ 23.8 million, respectively.

$ 2.0 million and $ 0.1 million for the three month periods ended March 29, 2025 and March 30, 2024, respectively.

The Company files income tax

14 unchanged sentences

Three Months Ended

Nine Months Ended

September 28,

September 30,

September 28,

September 30,

March 29, 2025

March 30, 2024

Weighted average number of common shares outstanding – Basic

20 unchanged sentences

The Company reserved 1,000,000 shares for issuance under the 2023 SIP, of which 456,000 shares remain available for

future grants as of September 28, 2024.

Any shares remaining from the 2017 SIP will be available for future grants under the terms of

the 2023 SIP.

As of September 28, 2024, approximately 120,000 shares remained unawarded from the 2017 SIP.

Since the shareholder approval

of the 2023 SIP, no additional awards have been or will be granted under the 2017 SIP.

Previously granted and outstanding awards under

the 2017 SIP will remain subject to the terms of the 2017 SIP.

future grants as of March 29, 2025.

Any shares remaining from the 2017 SIP will be available for future grants under the terms of the

As of March 29, 2025, approximately 120,000 shares remained unawarded from the 2017 SIP.

Since the shareholder approval of the

2023 SIP, no additional awards have been or will be granted under the 2017 SIP.

Previously granted and outstanding awards under the 2017

SIP will remain subject to the terms of the 2017 SIP.

Restricted Stock Units

5 unchanged sentences

awards are subject only to a three-year vesting period.

There were 137,516 restricted stock units issued during the nine months ended

September 28, 2024.

Additionally, the Company awarded its new CEO a one-time award of 40,000 RSUs,

which shall convert into shares of the Company’s Common Stock on a one-to-one basis when vested, a portion of which shall be subject

to time-based vesting and a portion of which shall be subject to performance-based vesting.

There were 238,226 restricted stock units

issued during the three months ended March 29, 2025.

Total compensation costs related to these restricted stock units are $ 9.1 million.

1 unchanged sentence

to all outstanding restricted stock units recognized in the statements of income aggregated $ 2.1 million and $ 1.1 million for the three

and nine months ended September 28, 2024, respectively, and $ 1.6 million and $ 5.0 million for the three and nine months ended September

30, 2023, respectively.

months ended March 29, 2025 and March 30, 2024, respectively.

NOTE 11 - OPERATING SEGMENT INFORMATION

8 unchanged sentences

Three Months Ended

Nine Months Ended

September 28,

September 30,

September 28,

September 30,

March 29, 2025

March 30, 2024

Costs of Goods Sold

Gross Profit (Loss)

Operating Income (Loss)

Income (Loss) Before Income Taxes

Three Months Ended

March 29, 2025

March 30, 2024

Capital Expenditures

September 28,

March 29, 2025

December 31, 2024

Identifiable Assets

3 unchanged sentences

Payments made to the NRA in

the three and nine months ended September 28, 2024 totaled $ 0.1 million and $ 0.5 million, respectively.

Payments made to the NRA in the

three and nine months ended September 30, 2023 totaled $ 0.1 million and $ 0.4 million, respectively.

One of the Company’s Directors

also serves as a Director on the Board of the NRA.

the three months ended March 29, 2025 and March 30, 2024 totaled $ 0.3 million and $ 0.2 million, respectively.

One of the Company’s

Directors also serves as a Director on the Board of the NRA.

The Company is a member of

1 unchanged sentence

Payments made to the NSSF

in the three and nine months ended September 28, 2024 totaled $ 0.1 million and $ 0.3 million, respectively.

Payments made to the NSSF in

the three and nine months ended September 30, 2023 totaled $ 0.1 million and $ 0.3 million, respectively.

One of the Company’s Directors

also serves on the Board of the NSSF.

in the three months ended March 29, 2025 and March 30, 2024 totaled $ 0.1 million and $ 0.2 million, respectively.

One of the Company’s

Directors also serves on the Board of the NSSF.

NOTE 13 - CONTINGENT LIABILITIES

As of September 28, 2024,

the Company was a defendant in eight (8) lawsuits and is aware of certain other claims.

As of March 29, 2025, the

Company was a defendant in eight (8) lawsuits and is aware of certain other claims.

The lawsuits generally fall into four (4) categories:

33 unchanged sentences

On August 12, 2024, the Court denied Defendants’

The Defendants then sought to certify the Order for appeal, which was granted.

On October 2, 2024, Defendants filed a motion with

the Indiana Court of Appeals to accept jurisdiction over the interlocutory appeal, which is being briefed.

On October 16, 2024, the trial

court entered an Order staying all proceeding pending the interlocutory appeal.

The Court granted Defendants’ subsequent request to certify the Order for appeal.

On October 2, 2024, Defendants filed a

motion with the Indiana Court of Appeals to accept jurisdiction over the interlocutory appeal, which was granted over Plaintiff’s

objection on November 1, 2024.

On October 16, 2024, the trial court entered an Order staying all proceeding pending the interlocutory

Briefing of the appeal is underway.

Estados Unidos Mexicanos

11 unchanged sentences

and, on January 22, 2024, the Court of Appeals reversed the District Court’s dismissal and remanded the case for further proceedings.

The Defendants filed a Petition

for Writ of Certiorari seeking review by the United States Supreme Court.

The Defendants also sought a stay of the proceedings pending

a decision on the Petition.

The District Court denied the request for a stay and held that the Defendants should request that the First

Circuit recall its mandate or petition for a stay from the Supreme Court.

On June 17, 2024, the Court heard argument on Ruger’s

(and other Defendants’) Rule 12(b)(2) motion to dismiss for lack of personal jurisdiction.

On August 7, 2024, the Court granted

the motions, dismissing Ruger and some of the other Defendants from the case.

Subsequently, the Supreme Court granted the Defendants’

Petition for Writ of Certiorari.

With the dismissal of Ruger and other Defendants on personal jurisdiction grounds, the remaining Defendants

will prosecute the appeal before the Supreme Court.

The Defendants sought a Stay of Proceedings Pending Review of a Petition for Writ of Certiorari to the United States Supreme Court.

District Court denied the stay and held that the defendants should request that the First Circuit recall its mandate or petition for a

stay from the Supreme Court.

On June 17, 2024, the District

Court heard argument on the pending Rule 12(b)(2) motions to dismiss.

On August 7, 2024, the Court granted the motions, dismissing Ruger

and some of the other Defendants from the case, but did not enter judgement in favor of these Defendants.

Because judgment has not entered

in favor of Ruger, the 30-day period in which Plaintiff may appeal the Court’s August 7, 2024 ruling has not yet begun to run.

Subsequently,

the Supreme Court granted the Defendants’ Petition for Writ of Certiorari.

With the dismissal of Ruger and other Defendants on personal

jurisdiction grounds, the remaining Defendants will prosecute the appeal before the Supreme Court.

Oral argument was held at the Supreme

Court on March 4, 2025.

On December 20, 2022, the

14 unchanged sentences

York State Supreme Court for Monroe County, New York.

The suit names the same defendants and makes essentially the same allegations raised

in Buffalo, discussed in the preceding paragraph.

The suit names a number of firearm manufacturers, distributors, and retailers as

Defendants, including the Company, and purports to state causes of action for violations of Sections 898, 349 and 350 of the New York

General Business Law, as well as common law public nuisance.

The allegations essentially mirror those in Buffalo , discussed in

the preceding paragraph.

Defendants timely removed the matter to the U.S.

District Court for the Western District

District Court for the Western District of New York.

Defendants moved to consolidate

the Buffalo and Rochester cases for pretrial purposes only and also moved to stay the cases pending a decision by the Second

Circuit Court of Appeals in National Shooting Sports Foundation, Inc.

James , which challenges the constitutionality of

the recently enacted N.Y.

the Buffalo and Rochester cases for pretrial purposes only.

Defendants also moved to stay the cases pending a decision by

the Second Circuit Court of Appeals in National Shooting Sports Foundation, Inc.

James , which challenges the constitutionality

of the recently enacted N.Y.

Law §§ 898-a–e.

2 unchanged sentences

Breach of Contract

The Company is a defendant

Sturm, Ruger & Co., a purported class action lawsuit arising out of a data breach at Freestyle Solutions, Inc.,

the vendor who was hosting the Company’s ShopRuger.com website at the time of the breach.

On January 20, 2023, five Plaintiffs filed

an Amended Complaint naming the Company and Freestyle Solutions, Inc.

The Company was named in two

purported class action lawsuits arising out of a data breach at Freestyle Solutions, Inc., the vendor who was hosting the Company’s

ShopRuger.com website at the time of the breach.

Sturm, Ruger & Co., was filed in the U.S.

District Court for Connecticut

on October 4, 2022 and Copeland v.

Sturm, Ruger & Company, et al.

was filed in the U.S.

District Court for New Jersey on October

Copeland also named Freestyle Solutions, Inc.

as a Defendant.

By agreement of the parties, Copeland was dismissed,

without prejudice, and consolidated with Jones in the pending Connecticut case.

On January 20, 2023, five Plaintiffs filed an Amended

Complaint naming the Company and Freestyle Solutions, Inc.

as Defendants.

The Complaint alleges causes of action for negligence,

breach of implied warranties, and unjust enrichment.

The Complaint alleges causes of action for negligence, breach

of implied warranties, and unjust enrichment.

The Company moved to dismiss

3 unchanged sentences

is required to assess the applicability of the limitation of liability clause contained in the Company’s terms and conditions of

The case is proceeding accordingly.

The parties have since participated in a mediation and agreed to a settlement in principle.

Efforts are underway to obtain Court

approval of the settlement.

Unfair Trade Practices

Estate of Suzanne Fountain

Sturm, Ruger & Co., Inc., was filed in Connecticut Superior Court and arises out of the criminal shootings at the King Soopers

supermarket in Boulder, Colorado on March 22, 2021.

On that date, plaintiff’s decedent, Suzanne Fountain, was murdered by 21-year-old

Ahmad Al Aliwi Al-Issa.

The Complaint alleges that the Company’s advertising and marketing

of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices Act and were a substantial factor in bringing about the wrongful

death of Suzanne Fountain.

Sturm, Ruger & Co., Inc., was filed in the Connecticut Superior Court in Stamford and arises out of the criminal shootings

at the King Soopers supermarket in Boulder, Colorado on March 22, 2021.

On that date, plaintiff’s decedent, Suzanne Fountain, was

murdered by 21-year-old Ahmad Al Aliwi Al-Issa.

The Complaint alleges that the Company’s advertising

and marketing of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices Act and were a substantial factor in bringing

about the wrongful death of Suzanne Fountain.

Estate of Neven Stanisic

Sturm, Ruger & Co., Inc., was filed in Connecticut Superior Court on behalf of five plaintiffs.

Like Estate of Suzanne

Fountain , the claims arise from the criminal shooting at the King Soopers supermarket in Boulder, Colorado on March 22, 2021.

decedents were murdered by Ahmad Al Aliwi Al-Issa and Plaintiffs alleged that the Company’s

advertising and marketing of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices Act and were a substantial factor

in causing the wrongful death of plaintiffs’ decedents.

Sturm, Ruger & Co., Inc., was filed in the Connecticut Superior Court in Stamford on behalf of five plaintiffs.

Estate of Suzanne Fountain , the claims arise from the criminal shooting at the King Soopers supermarket in Boulder, Colorado on

March 22, 2021.

Plaintiffs’ decedents were murdered by Ahmad Al Aliwi Al-Issa and Plaintiffs

alleged that the Company’s advertising and marketing of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices Act

and were a substantial factor in causing the wrongful death of plaintiffs’ decedents.

and Stanisic cases were consolidated for discovery purposes only and transferred by the court to the Complex Litigation Docket.

12 unchanged sentences

September 9, 2024, the Court allowed Plaintiffs limited, additional discovery and requested further briefing on the matter.

were briefed fully and, on February 27, 2025, the Court denied the motions.

On March 31, 2025, the Company

filed Motions to Strike on a variety of grounds.

The motions are being briefed.

March 12, 2024, the Company was named as a defendant in FN Herstal, et al.

14 unchanged sentences

amount of money, though aggregate amounts ultimately sought may exceed product liability accruals and applicable insurance coverage.

product liability claims made between July 10, 2000 and August 31, 2024, coverage is provided on an annual basis for losses exceeding

$ 5 million per claim, or an aggregate maximum loss of $ 10 million annually, except for certain new claims which might be brought by governments

or municipalities after July 10, 2000, which are excluded from coverage.

Insurance coverage was not renewed with incumbent carriers effective

September 1, 2024.

Rather, the Company established a wholly-owned captive insurance company for claims made on or after September 1, 2024.

For product liability claims

made between July 10, 2000 and August 31, 2024, insurance coverage was provided on an annual basis for losses exceeding $ 5 million per

claim, or an aggregate maximum loss of $ 10 million annually, except for certain claims brought by governments or municipalities, which

are excluded from coverage.

Insurance coverage was not renewed with incumbent carriers effective September 1, 2024.

Rather, the Company

established a wholly-owned captive insurance company for claims made on or after September 1, 2024.

The Company management monitors

22 unchanged sentences

anticipated possible liability and claims handling expenses on an ongoing basis.

A range of reasonably possible

losses relating to unfavorable outcomes cannot be made.

The dollar amount of damages claimed at December 31, 2023 and December 31, 2022

was de minimis .

The amount claimed at December 31, 2021 was $ 1.1 million and is set forth as an indication of possible maximum

liability the Company might be required to incur in these cases (regardless of the likelihood or reasonable probability of any or all

of this amount being awarded to claimants) as a result of adverse judgments that are sustained on appeal.

Often, a Complaint does not

specify the amount of damages being sought and a range of reasonably possible losses relating to unfavorable outcomes cannot be made.

The dollar amount of damages claimed at December 31, 2024, December 31, 2023 and December 31, 2022 was de minimis .

The amount claimed

at December 31, 2021 was $ 1.1 million and is set forth as an indication of possible maximum liability the Company might be required to

incur in these cases (regardless of the likelihood or reasonable probability of any or all of this amount being awarded to claimants)

as a result of adverse judgments that are sustained on appeal.

NOTE 14 - SUBSEQUENT EVENTS

On October 25,

2024, the Board of Directors authorized a dividend of 11 ¢ per share, for shareholders of record as of November 13, 2024 , payable

on November 27, 2024 .

has evaluated events and transactions occurring subsequent to September 28, 2024 and determined that there were no other unreported events

or transactions that would have a material impact on the Company’s results of operations or financial position.

On April 25, 2025,

the Board of Directors authorized a dividend of 18 ¢ per share, for shareholders of record as of May 16, 2025 , payable on May 30,

The Company has

evaluated events and transactions occurring subsequent to March 29, 2025 and determined that there were no other unreported events or

transactions that would have a material impact on the Company’s results of operations or financial position.

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