What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2025-05-22 compared with 2024-05-23 · 138 added, 122 removed, 1057 unchanged (20% of the section changed)

64 unchanged sentences

Common stock repurchases ( 400,617 ) — ( 54,681,676 ) ( 54,681,676 )

Stock-based compensation (reversal) related to restricted stock, net of cancellations ($ 2,823,774 )

Stock-based compensation (reversal) related to restricted stock, net of forfeitures and cancellations ($ 2,676,053 )

( 189,304 ) ( 22,972,296 ) — ( 22,972,296 )

Stock-based compensation (reversal) related to stock options — ( 3,754,209 ) — ( 3,754,209 )

Stock-based compensation related to stock options

— 607,275 — 607,275

Net income — — 89,741,398 89,741,398

6 unchanged sentences

Common stock repurchases ( 295,201 ) ( 36,505,861 ) ( 36,505,861 )

Stock-based compensation related to restricted stock, net of cancellations ($ 2,543,001 )

Stock-based compensation (reversal) related to restricted stock, net of forfeitures and cancellations ($ 2,823,774 )

( 31,865 ) ( 752,652 ) — ( 752,652 )

Stock-based compensation related to stock options

Stock-based compensation (reversal) related to stock options

— ( 3,754,209 ) — ( 3,754,209 )

Cumulative effect of adoption of ASU 2023-02 — — ( 1,880,346 ) ( 1,880,346 )

Net income — — 77,345,227 77,345,227

9 unchanged sentences

— 2,442,309 — 2,442,309

Cumulative effect of adoption of ASC 326 — — ( 1,880,346 ) ( 1,880,346 )

Net income — — 21,231,990 21,231,990

7 unchanged sentences

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

Loss on assets held for sale — — 38,633

Amortization of intangible assets 3,809,753 4,219,846 4,466,535

Amortization of historic tax credits — — 3,930,753

Accrued unearned interest 1,253,389 ( 1,131,985 ) 3,213,737

2 unchanged sentences

Amortization of debt issuance costs 1,298,513 1,686,563 1,654,916

Amortization of discount on loans acquired in an asset purchase

( 596,966 ) — —

Provision for credit losses 169,215,395 156,973,220 259,463,199

2 unchanged sentences

Gain on asset acquisitions, net of income tax — ( 112,683 ) ( 3,993,168 )

( 112,683 ) ( 3,993,168 ) —

Loss (gain) on sale of property and equipment ( 60,087 ) ( 57,100 ) 11,837

( 57,100 ) 11,837 419,975

Deferred income tax expense (benefit) ( 2,348,230 ) 10,737,604 ( 2,102,085 )

Stock-based compensation (reversal) related to equity classified awards ( 19,688,968 ) ( 1,683,087 ) 9,052,835

( 1,683,087 ) 9,052,835 17,582,995

Gain on company-owned life insurance ( 171,742 ) ( 154,140 ) ( 104,113 )

9 unchanged sentences

Proceeds from sale of property and equipment 550,244 350,174 529,781

Proceeds from the sale of assets held for sale — — 1,104,895

Net cash used in investing activities ( 152,750,703 ) ( 135,137,818 ) ( 180,583,800 )

3 unchanged sentences

Payments for extinguished senior unsecured notes payable ( 87,990,854 ) ( 14,043,159 ) ( 7,171,700 )

Issuance of senior unsecured notes payable — — 300,000,000

Debt issuance costs associated with senior unsecured notes payable — — ( 19,656 )

5 unchanged sentences

Repayment of finance lease — — ( 80,067 )

Net cash provided by (used in) financing activities ( 135,315,023 ) ( 113,697,373 ) 182,934,468

Net cash used in financing activities

( 103,522,063 ) ( 135,315,023 ) ( 113,697,373 )

Net change in cash and cash equivalents ( 2,109,164 ) ( 4,669,475 ) ( 2,727,387 )

5 unchanged sentences

Finance lease ROU assets, net transferred to property and equipment, net $ — $ — $ 402,960

$ — $ 402,960 $ —

Non-cash excise tax on stock repurchases $ 486,112 $ 301,330 $ —

$ 301,330 $ — $ —

See accompanying notes to Consolidated Financial Statements.

21 unchanged sentences

Such reclassifications have no impact on previously reported net income or shareholders' equity.

Business Segments

Segment Reporting

The Company reports operating segments in accordance with FASB ASC Topic 280.

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance.

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the CODM in deciding how to allocate resources and assess performance.

FASB ASC Topic 280 requires that a public enterprise report a measure of segment profit or loss, certain specific revenue and expense items, segment assets, information about the way that the operating segments were determined and other items.

The Company has one reportable segment:

the consumer finance segment.

The other revenue generating activities of the Company, including the sale of insurance products, income tax preparation, and the automobile club, are done within the existing branch network in conjunction with or as a complement to the lending operations.

There is no discrete financial information available for these activities, and they do not meet the criteria under FASB ASC Topic 280 to be considered operating segments.

The accounting policies of the Company's segment are described within this Note 1 to the Consolidated Financial Statements.

The Company's CODM is its CEO.

The CODM utilizes consolidated net income as presented in the Consolidated Statements of Operations to evaluate and measure segment performance and to determine how to allocate resources.

Significant segment expenses are consistent with those presented in the Consolidated Statements of Operations, and segment assets are consistent with those presented in the Consolidated Balance Sheets.

Cash and Cash Equivalents

19 unchanged sentences

Total gross loans $ 1,225,635,918 $ 1,277,149,256

Loans receivable are carried at amortized cost, which is the gross amount outstanding, reduced by unearned interest and insurance income, net of deferred origination fees and direct costs, and an allowance for credit losses.

Fees received and direct costs incurred for the origination of loans are deferred and amortized to interest income over the contractual lives of the loans using the interest method.

Unamortized amounts are recognized in interest income at the time that loans are refinanced or paid in full except for those refinancings that do not constitute a more than minor modification.

Loans are carried at the gross amount outstanding, reduced by unearned interest and insurance income, net of deferred origination fees and direct costs, and an allowance for credit losses.

Net unamortized deferred origination costs were $ 5.5 million and $ 5.0 million as of March 31, 2025 and 2024, respectively.

1 unchanged sentence

Charges for late payments are recognized in interest and fee income when collected.

With the exception of tax advance loans, which are interest free, the Company offers its loans at the prevailing statutory rates for terms not to exceed 60 months.

With the exception of TALs, which are interest free, the Company offers its loans at the prevailing statutory rates for terms not to exceed 60 months.

Management believes that the carrying value approximates the fair value of its loan portfolio.

From time to time, the Company will sell charged off loans receivable, which are accounted for as a sale in accordance with ASC 860, Transfers and Servicing .

See Note 2, “Allowance for Credit Losses and Credit Quality Information," for further information.

See Note 2 to the Consolidated Financial Statements for further information.

Nonaccrual Policy

4 unchanged sentences

Allowance for Credit Losses

Refer to Note 2, “Allowance for Credit Losses and Credit Quality Information”, for information regarding the Company's CECL allowance model and a description of the policies and methodology utilized.

Refer to Note 2 to the Consolidated Financial Statements for information regarding the Company's CECL allowance model and a description of the policies and methodology utilized.

Property and Equipment

11 unchanged sentences

Lease liability is measured as of the lease commencement date based on the present value of the remaining minimum lease payments.

The Company uses its effective annual interest rate as the discount rate when evaluating leases.

Refer to Note 9, "Leases", for further discussion of the discount rate.

The Company uses a discount rate that is based on the Company's incremental borrowing rate on its senior notes payable when evaluating leases.

Refer to Note 9 to the Consolidated Financial Statements for further discussion of the discount rate.

A lease's ROU asset equals its lease liability, net of any prepaid rent.

45 unchanged sentences

Non-filing insurance premiums are charged to certain customers on certain loans in lieu of recording and perfecting the Company's security interest in the assets pledged.

The premiums are passed through to a third-party insurance company, and any recoveries from customers after a receipt of an insurance payment are remitted to the third-party insurance company.

Neither non-filing insurance premiums nor recoveries are reflected in the accompanying Consolidated Statements of Operations (see Note 8).

The premiums are passed through to a third-party insurance company, and any recoveries from customers after a receipt of an insurance payment are remitted to the third-party

insurance company.

Neither non-filing insurance premiums nor recoveries are reflected in the accompanying Consolidated Statements of Operations (see Note 8 to the Consolidated Financial Statements).

Certain losses related to such loans, which are not recoverable through life, accident and health, property, or unemployment insurance claims, are reimbursed through non-filing insurance claims subject to policy limitations.

9 unchanged sentences

Earnings Per Share

Earnings per share (“EPS”) is computed in accordance with FASB ASC Topic 260.

EPS is computed in accordance with FASB ASC Topic 260.

Basic EPS includes no dilution and is computed by dividing net income by the weighted-average number of common shares outstanding for the period.

1 unchanged sentence

Potential common stock included in the diluted EPS computation consists of Service Options and Restricted Stock, which are computed using the treasury stock method.

See Note 11 for the reconciliation of the numerators and denominators for basic and dilutive EPS calculations.

See Note 11 to the Consolidated Financial Statements for the reconciliation of the numerators and denominators for basic and dilutive EPS calculations.

Stock-Based Compensation

5 unchanged sentences

The fair value of non-vested stock awards for the purposes of recognizing stock-based compensation expense is the market price of the stock on the grant date.

The fair value of options is estimated on the grant date using the Black-Scholes option pricing model (see Note 12).

The fair value of options is estimated on the grant date using the Black-Scholes option pricing model (see Note 12 to the Consolidated Financial Statements).

The Company accounts for forfeitures as they occur.

At March 31, 2024, the Company had several share-based employee compensation plans, which are described more fully in Note 12.

At March 31, 2025, the Company had several share-based employee compensation plans, which are described more fully in Note 12 to the Consolidated Financial Statements.

Share Repurchases

On February 12, 2025, the Board of Directors authorized the Company to repurchase up to $ 25.0 million of the Company’s outstanding common stock, inclusive of the amount that remains available for repurchase under prior repurchase authorizations.

As of March 31, 2024, the Company had $ 11.2 million in aggregate remaining repurchase capacity under its current share repurchase program.

As of March 31, 2025, the Company had $ 0.4 million in aggregate remaining repurchase capacity under its current share repurchase program, and on April 30, 2025, the Board of Directors of the Company approved a share repurchase program authorizing the Company to repurchase up to $ 20.0 million of its outstanding common stock, inclusive of any amount that remains available for repurchase under this prior repurchase authorization.

The timing and actual number of shares of common stock repurchased will depend on a variety of factors, including the stock price, corporate and regulatory requirements, restrictions under the revolving credit facility and other market and economic conditions.

The Company’s stock repurchase program may be suspended or discontinued at any time.

On February 18, 2025, in accordance with its share repurchase program, the Company, after approval by the Audit and Compliance Committee, repurchased 162,712 shares for $ 24.0 million from Prescott Associates L.P.

in a privately negotiated transaction.

Prescott Associates L.P.

is an affiliate of Prescott General Partners, LLC, who, along with its affiliates, beneficially own approximately 47.2 % of the Company's common stock.

The $ 147.50 price per share was based upon the prevailing market rate at the time, and the closing market rate at February 18, 2025 was $ 147.16 .

The Company continues to believe stock repurchases are a viable component of the Company’s long-term financial strategy and an excellent use of excess cash when the opportunity arises.

4 unchanged sentences

The Company generally serves individuals with limited access to other sources of consumer credit such as banks, credit unions, other consumer finance businesses and credit card lenders.

Substantially all new customers are

required to submit a listing of personal property that will serve as collateral to secure the loan;

Substantially all new customers are required to submit a listing of personal property that will serve as collateral to secure the loan;

however, the Company does not rely on the value of such collateral in the loan approval process and generally does not perfect its security interest in that collateral.

5 unchanged sentences

Advertising Costs

Advertising costs are expensed when incurred.

Advertising costs are expensed the first time the advertising takes place.

Advertising costs were approximately $ 10.2 million, $ 9.9 million, and $ 6.1 million for fiscal years 2025, 2024, and 2023, respectively.

Recently Adopted Accounting Standards

Troubled Debt Restructurings and Vintage Disclosures

In March 2022, the FASB issued ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures.

The amendments in this update eliminate the accounting guidance for troubled debt restructurings by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.

Additionally, for public business entities, the amendments in this update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost.

The adoption of ASU 2022-02 on April 1, 2023 expanded our write-off disclosures, but had no other impact on the Company’s Consolidated Financial Statements.

Recently Issued Accounting Standards Not Yet Adopted

Improvements to Reportable Segment Disclosures

2 unchanged sentences

The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

The amendments should be applied retrospectively to all prior periods presented in the financial statements.

Management is currently evaluating this ASU to determine its impact on the Company's Consolidated Financial Statements and related disclosures.

The adoption of ASU 2023-07 on March 31, 2025 expanded our segment reporting disclosures, but had no other impact on the Company’s Consolidated Financial Statements.

Recently Issued Accounting Standards Not Yet Adopted

Improvements to Income Tax Disclosures

3 unchanged sentences

The amendments are effective for annual periods beginning after December 15, 2024.

Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance.

Early adoption is permitted

for annual financial statements that have not yet been issued or made available for issuance.

ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted.

Management is currently evaluating this ASU to determine its impact on the Company's Consolidated Financial Statements and related disclosures.

We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on the Consolidated Financial Statements as a result of future adoption.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires additional disclosure, in the notes to financial statements, about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses.

The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, which was clarified by ASU 2025-01, Clarifying the Effective Date .

Early adoption is permitted.

ASU 2024-03 should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this update or (2) retrospectively to any or all prior periods presented in the financial statements.

Management is currently evaluating this ASU to determine its impact on the Company's Consolidated Financial Statements and related disclosures.

We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on the Company's Consolidated Financial Statements and related disclosures as a result of future adoption.

(2) Allowance for Credit Losses and Credit Quality Information

17 unchanged sentences

The accounts of deceased or incarcerated customers are also charged off in the month after they reach 60 days past due on a recency basis, with the exception of deceased customers with credit life insurance.

Subsequent recoveries of amounts charged off, if any, are credited to the allowance.

Subsequent recoveries of amounts charged off, if any, are credited to the allowance for credit losses.

The following tables provide a breakdown of the Company’s gross loans receivable by current payment performance on a recency basis and year of origination at March 31, 2025:

108 unchanged sentences

Gross Charge-offs by Origination

Origination Year

Loans Tax advance loans Total

Origination Year Loans Tax advance loans Total

2020 and prior $ 25,437 $ — $ 25,437

4 unchanged sentences

2025 63,515,257 — 63,515,257

2024 65,038,754 — 65,038,754

Total $ 187,021,165 $ 3,775,067 $ 190,796,232

Gross Charge-offs by Origination

Origination Year

Loans Tax advance loans Total

Origination Year Loans Tax advance loans Total

2019 and prior $ 17,352 $ — $ 17,352

4 unchanged sentences

2024 65,038,754 — 65,038,754

Total $ 209,252,050 $ 1,292,709 $ 210,544,759

Gross Charge-offs by Origination

Origination Year Loans Tax advance loans Total

2018 and prior $ 7,940 $ — $ 7,940

2019 33,698 — 33,698

2020 313,337 — 313,337

2021 4,663,908 18,716 4,682,624

2022 193,167,575 2,473,341 195,640,916

2023 101,668,877 32,753 101,701,630

Total $ 299,855,335 $ 2,524,810 $ 302,380,145

21 unchanged sentences

Management estimates an allowance for each Customer Tenure bucket by performing a historical migration analysis of loans in that bucket for the twelve most recent historical twelve-month migration periods.

Management considers whether current credit conditions might suggest a change is needed to the allowance for credit losses by monitoring trends in first pay success for NBs, 60-89 day delinquencies on a recency basis, FICO scores at origination, percent of loan balances that are paying and percentage of gross loans that are acquired loans.

Management considers whether current credit conditions might suggest a change is needed to the allowance for credit losses by monitoring trends in first pay success for NBs, 60-89 day delinquencies on a recency basis, percent of loan balances that are paying and percentage of gross loans that are acquired loans.

If management determines that historical migration rates should be adjusted to reflect expected credit losses, a qualitative adjustment is made to reflect management's judgment regarding observable changes in recent or expected economic trends and conditions, portfolio composition, or other significant events or conditions that affect the current estimate.

The decrease in the allowance for credit losses from March 31, 2023 to March 31, 2024 was primarily due to lower expected loss rates on performing loans resulting from improvement in net charge-offs and a decrease in the loan portfolio.

Due to the short term nature of the loan portfolio, forecasted changes in macro-economic variables, such as unemployment levels, general inflation and commodity prices, typically do not have a significant impact on loans outstanding at the end of a particular reporting period, unless those changes are particularly severe and sudden in nature.

Therefore, management develops a reasonable and supportable forecast of losses by comparing the most recent six-month loss curves as compared to historical loss curves to see if there are significant changes in borrower behavior that may indicate the historical migration rates should be adjusted.

From time to time, the Company will also make changes, as deemed appropriate, to its NB underwriting guidance.

As a result, management also considers whether a change in its NB underwriting might suggest a change is needed to the allowance for credit losses.

If a change is determined necessary, then the Company has elected to immediately revert back to historical experience past the forecast period.

As of March 31, 2025 and 2024, there were no conditions or other factors considered significant enough to warrant a forecast adjustment.

76 unchanged sentences

60+ months 52,154,586 45,091,589 6,422,145 6,547,368 7,017,026

Tax advance loans 4,590 19,603 — — —

Unearned interest, insurance and fees ( 23,775,911 ) ( 21,517,317 ) — — —

12 unchanged sentences

Fiscal 2024 saw a significant decrease in charge-offs primarily due to the Company's continued focus on credit quality and a conservative approach to its lending operations.

2 Recoveries for the year ended March 31, 2024 and March 31, 2023 include $ 19.3 million and $ 15.8 million, respectively, in proceeds related to the sale of charge-offs, which are included as a component of Provision for credit losses in the Consolidated Statements of Operations.

2 Recoveries for the year ended March 31, 2025, 2024, and 2023 include $ 12.0 million, $ 19.3 million, and $ 15.8 million, respectively, in proceeds related to the sale of charge-offs, which are included as a component of Provision for credit losses in the Consolidated Statements of Operations.

Of the $ 12.0 million in fiscal 2025, $ 1.5 million relates to bulk sales of charge-offs from prior periods and $ 10.5 million relates to recurring sales of charge-offs.

Of the $ 19.3 million in fiscal 2024, $ 5.7 million relates to bulk sales of charge-offs from prior periods and $ 13.6 million relates to recurring sales of charge-offs.

Of the $ 15.8 million in fiscal 2023, $ 8.4 million relates to bulk sales of charge-offs from prior periods and $ 7.4 million relates to recurring sales of charge-offs.

(3) Property and Equipment

17 unchanged sentences

Customer lists $ 55,858,615 $ ( 48,489,153 ) $ 7,369,462 $ 55,730,620 $ ( 44,796,996 ) $ 10,933,624

$ 55,730,620 $ ( 44,796,996 ) $ 10,933,624 $ 55,730,620 $ ( 40,950,350 ) $ 14,780,270

Non-compete agreements 10,534,749 ( 10,509,630 ) 25,119 10,528,143 ( 10,392,034 ) 136,109

10,528,143 ( 10,392,034 ) 136,109 10,528,143 ( 10,018,834 ) 509,309

Total $ 66,393,364 $ ( 58,998,783 ) $ 7,394,581 $ 66,258,763 $ ( 55,189,030 ) $ 11,069,733

11 unchanged sentences

Revolving Credit Facility

On February 28, 2024, the Company amended its revolving credit agreement ("Twelfth Amendment") to (i) change the ratio of Net Income Available for Fixed Charges from not less than 2.25 to 1 to not less than 2.00 to 1 for the quarters ending March 31, 2024, June 30, 2024, September 30, 2024 and December 31, 2024 and (ii) change the ratio of Total Debt to Consolidated Adjusted Net Worth limit to 225 % for the remainder of the Amended and Restated Credit Agreement.

At March 31, 2025, the Company's senior notes payable consisted of a $ 580.0 million senior revolving credit facility, which has an accordion feature permitting the maximum aggregate commitments to increase to $ 730.0 million provided that certain conditions are met.

20 unchanged sentences

During fiscal 2024, the Company repurchased and extinguished $ 15.7 million of its Notes, net of $ 0.2 million unamortized debt issuance costs related to the extinguished debt, on the open market for a reacquisition price of $ 14.1 million.

As a result, the Company recognized a $ 1.6 million and $ 1.8 million gain on extinguishment for the years ended March 31, 2024 and 2023, respectively.

During fiscal 2023, the Company repurchased and extinguished $ 9.0 million of its Notes, net of $ 0.1 million unamortized debt issuance costs related to the extinguished debt, on the open market for a reacquisition price of $ 7.2 million.

As a result, the Company recognized a $ 1.0 million, $ 1.6 million and $ 1.8 million gain on extinguishment for the years ended March 31, 2025, 2024, and 2023, respectively.

In accordance with ASC 470, the Company recognized the gain on extinguishment as a component of interest expense in the Company's Consolidated Statements of Operations.

5 unchanged sentences

(iii) a maximum collateral performance indicator of 26.0 % as of the end of each calendar month;

and (iv) a minimum fixed charges coverage ratio of 2.0 to 1.0 for the fiscal quarters ending December 31, 2023 through December 2024, and 2.25 to 1.0 for each fiscal quarter thereafter, where the ratio for the most recent four consecutive fiscal quarters (other than for the fiscal quarter ended September 30, 2023) must be at least 2.0 to 1.0 in order for the Company to declare dividends or purchase any class or series of its capital stock or other equity.

and (iv) a minimum fixed charges coverage ratio of 2.0 to 1.0 for the fiscal quarters ending December 31, 2023 through December 2024, and 2.25 to 1.0 for each fiscal quarter thereafter, where the ratio for the most recent four consecutive fiscal quarters must be at least 2.0 to 1.0 in order for the Company to declare dividends or purchase any class or series of its capital stock or other equity.

The collateral performance indicator is equal to the sum of (a) a three-month rolling average rate of receivables at least sixty days past due and (b) an eight-month rolling average net charge-off rate.

25 unchanged sentences

Insurance premiums are ceded to the reinsurance subsidiary as written, and revenue is recognized over the life of the related insurance contracts.

As of March 31, 2024, 2023, and 2022, the amount of net written premiums by the reinsurance subsidiary were $ 7.2 million, $ 9.0 million, and $ 9.8 million, respectively, and the amount of earned premiums were $ 8.2 million, $ 9.1 million, and $ 7.6 million, respectively.

For the years ended March 31, 2025, 2024, and 2023, the amount of net written premiums by the reinsurance subsidiary were $ 6.1 million, $ 7.2 million, and $ 9.0 million, respectively, and the amount of earned premiums were $ 7.1 million, $ 8.2 million, and $ 9.1 million, respectively.

The Company maintains a cash reserve for claims in an amount determined by the ceding company, and as of March 31, 2025 and 2024, the cash reserves were $ 4.0 million and $ 4.9 million, respectively.

7 unchanged sentences

Accounting Policies and Matters Requiring Management's Judgment

The Company uses its effective annual interest rate to determine the discount rate when evaluating leases under Topic 842.

Management applies its effective interest rate to leases entered for the entirety of the subsequent year.

For example, fiscal 2023’s annual effective interest rate of 7.1 % was used in the determination of lease type as well as the discount rate when calculating the present value of lease payments for all leases entered into in fiscal 2024.

When evaluating leases under Topic 842, the Company uses its incremental borrowing rate on its senior notes payable to determine the discount rate.

Specifically, Management applies its senior notes payable's effective annual interest rate at the end of the prior fiscal year to leases entered into in the following year.

For example, the senior notes payable's effective annual interest rate of 9.9 % at March 31, 2024 was used as the discount rate when determining the lease type and the present value of lease payments for leases entered into in fiscal 2025.

Based on its historical practice, the Company believes it is reasonably certain to exercise a given option associated with a given office space lease.

11 unchanged sentences

Amortization of ROU assets — — 204,552

— 204,552 407,624

Interest on lease liabilities — — 1,423

Operating lease cost $ 25,244,452 $ 25,291,087 $ 27,408,284

Short-term lease cost — — —

Variable lease cost 3,958,271 3,823,435 3,710,560

7 unchanged sentences

Financing cash flows from finance leases — — 80,067

ROU assets obtained in exchange for new finance lease liabilities

ROU assets obtained in exchange for new operating lease liabilities $ 16,102,245 $ 18,024,157 $ 16,924,511

$ 18,024,157 $ 16,924,511 $ 15,381,953

Weighted-average remaining lease term — finance leases — — 0.4 years

Weighted average remaining lease term — operating leases 6.4 years 6.8 years 7.1 years

Weighted-average discount rate (monthly) — finance leases — % — % 6.0 %

Weighted-average discount rate — operating leases 7.0 % 6.3 % 6.0 %

12 unchanged sentences

(10) Income Taxes

The Company adopted ASU 2023-02, Investments- Equity Method and Joint Ventures , on a modified retrospective basis in March 2023 with an effective date of April 1, 2022.

Prior to the adoption of this pronouncement, the Company recognized its HTC investment under the flow through method over the five-year investment period on a straight-line basis as a component of other expense.

With the adoption of this ASU, the Company recognizes the investment of the HTC under the proportional amortization method which allows the investment to be recognized in proportion to the tax credit as a component of income tax expense.

In fiscal 2023, the Company recorded a cumulative adjustment of $ 1.9 million to the opening balance of retained earnings, which represents the net difference between the investment amortization under the two methods through the April 1, 2022 adoption date.

The Company recognizes the investment of the HTC under the proportional amortization method which allows the investment to be recognized in proportion to the tax credit as a component of income tax expense.

As of March 31, 2025 and 2024, investment in HTC was $ 15.9 million and $ 24.8 million, respectively, which is included as a component of Other assets, net and Accounts payable and accrued expenses in the Consolidated Balance Sheets.

26 unchanged sentences

Expiration of capital loss carryforward — 7,773,559 —

7,773,559 — —

Executive compensation limitation under Section 162(m) 364,892 62,686 732,504

Forfeiture of the $ 20.45 Performance Shares and partial forfeiture of the $ 16.35 Performance Shares

( 2,587,552 ) — —

Excess tax benefits related to equity compensation ( 182,098 ) ( 347,806 ) ( 73,644 )

22 unchanged sentences

Prepaid expenses ( 1,529,317 ) ( 1,662,717 )

( 19,619,875 ) ( 20,072,506 )

ROU assets ( 18,750,736 ) ( 19,619,875 )

Other ( 581,501 ) ( 727,270 )

4 unchanged sentences

Of this $ 6.0 million, $ 0.8 million is expected to be recognized.

Approximately $ 1,000 of the state net operating loss carryforward will expire in 2025 with the remaining carryforward expiring between 2031 and 2042.

The valuation allowance for deferred tax assets decreased by $ 7.1 million for the year ended March 31, 2024 when compared to March 31, 2023.

The state net operating loss carryforward will expire between 2031 and 2043.

The valuation allowance for deferred tax assets increased by $ 0.6 million for the year ended March 31, 2025 when compared to March 31, 2024.

The valuation allowance at March 31, 2025 and 2024 was $ 8.7 million and $ 8.1 million, respectively.

The valuation allowance against the total deferred tax assets as of March 31, 2024 consisted of $ 4.6 million from state net operating loss carryforwards in the amount of $ 73.6 million which expire from 2025 to 2042, a foreign tax credit carryforward of $ 3.3 million arising in relation to the Section 965 calculation ("Transition Tax") during fiscal 2018 which expires in 2028, and $ 0.2 million related to the $ 0.9 million capital loss on the sale of the former headquarters buildings which expire from 2026 to 2027.

The valuation allowance against the total deferred tax assets as of March 31, 2025 consisted of $ 5.2 million from state net operating loss carryforwards in the amount of $ 83 million which expire from 2031 to 2043, a foreign tax credit carryforward of $ 3.3 million arising in relation to the Transition Tax during fiscal 2018 which expires in 2028, and $ 0.2 million related to the $ 0.9 million capital loss on the sale of the former headquarters buildings which expire from 2026 to 2027.

The Company does not expect to generate enough foreign source income, state taxable income in the respective jurisdictions or capital gains in future tax years to realize these tax attributes.

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In order to fully realize the deferred tax asset, the Company will need to generate future taxable income of the appropriate character prior to the expiration of the deferred tax assets governed by the tax code.

As of March 31, 2024, 2023, and 2022, the Company had $ 1.1 million, $ 1.1 million, and $ 2.2 million of total gross unrecognized tax benefits including interest, respectively.

Of these totals, approximately $ 0.9 million, $ 0.9 million, and $ 2.0 million, respectively, represents the amount of net unrecognized tax benefits that are permanent in nature and, if recognized, would affect the annual effective tax rate.

For each of the years ended March 31, 2025, 2024, and 2023, the Company had $ 1.1 million of total gross unrecognized tax benefits including interest.

Of these totals, approximately $ 0.9 million, represents the amount of net unrecognized tax benefits that are permanent in nature and, if recognized, would affect the annual effective tax rate.

A reconciliation of the beginning and ending amount of unrecognized tax benefits at March 31, 2025, 2024, and 2023 are presented below:

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The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense.

As of March 31, 2024, 2023, and 2022, the Company had $ 0.3 million, $ 0.3 million, and $ 0.6 million accrued for gross interest, respectively, of which $ 0.1 million, $ 0.1 million, and $ 0.2 million represented the current period expense for the periods ended March 31, 2024, 2023, and 2022, respectively.

For each of the years ended March 31, 2025, 2024, and 2023, the Company had $ 0.3 million accrued for gross interest, of which $ 0.1 million represented the current period expense for each of the years ended March 31, 2025, 2024, and 2023.

The Company is subject to U.S.

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The executives have no rights under the agreements beyond those of a general creditor of the Company.

For the years ended March 31, 2024, 2023, and 2022, contributions of $ 0.5 million, respectively, were charged to expense related to the SERP.

For each of the years ended March 31, 2025, 2024, and 2023, contributions of $ 0.5 million were charged to expense related to the SERP.

The unfunded liability, which is included as a component of accounts payable and accrued expenses in the Company's Consolidated Balance Sheets was $ 5.3 million and $ 5.5 million as of March 31, 2025 and 2024, respectively.

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Stock-based compensation related to restricted stock is based on the number of shares expected to vest and the fair market value of the common stock on the grant date.

Stock-based compensation related to stock option awards is based on the number of shares expected to vest and the estimated fair value of the awards on the grant date using the the Black-Scholes valuation model.

Stock-based compensation related to stock option awards is based on the number of shares expected to vest and the estimated fair value of the awards on the grant date using the Black-Scholes valuation model.

Under the Black-Scholes valuation method, the assumptions used to determine the fair value are expected volatility, expected life, average risk-free rate, and dividend yield, if any.

The expected stock price volatility is based on the historical volatility of the Company's common stock for a period approximating the expected life.

The expected life represents the period of time that options are expected to be outstanding after the grant date.

The risk-free rate reflects the interest rate at grant date on zero coupon U.S.

governmental bonds having a remaining life similar to the expected option term.

2018 Long-term Incentive Program and Non-Employee Director Awards

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(Percentage of Award)

During the second quarter of fiscal 2025, it was determined that the $ 20.45 Performance Shares performance target was no longer probable of being achieved and that the $ 20.45 Performance Shares would likely be forfeited as of the last day of the performance period in accordance with their terms.

As a result and in accordance with ASC 718, the Company reversed $ 18.5 million in previously recognized stock-based compensation related to the $ 20.45 Performance Shares during the second quarter of fiscal 2025.

On March 31, 2025, 28 % of the unvested $ 16.35 Performance Shares, or 34,415 shares, were forfeited, which resulted in a $ 3.5 million release of previously recognized stock-based compensation expense, resulting in EPS of $ 16.36 per diluted share on a rolling four-quarter basis.

Following the forfeiture, the performance target associated with the remaining 72 % of the $ 16.35 Performance Shares, or 88,497 shares, was achieved, and such shares vested on April 25, 2025 after certification of performance achievement by the Compensation Committee.

The Restricted Stock awards typically vest in three to six equal annual installments, beginning on the first anniversary of the grant date, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

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Such performance target was established by the Compensation Committee and will be measured at the end of each calendar quarter commencing on September 30, 2019.

The Performance Options are eligible to vest over the Option Measurement Period, subject to each respective employee’s continued employment at the Company through the last day of the Option Measurement Period or as otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The Performance Options are eligible to vest over the 2018 Performance Measurement Period, subject to each respective employee’s continued employment at the Company through the last day of the 2018 Performance Measurement Period or as otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The option price is equal to the fair market value of the common stock on the grant date and the Performance Options shall have a 10 -year term.

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$ 25.30 100 %

During the second quarter of fiscal 2024, it was determined that the Performance Option performance target was no longer probable of being achieved.

As a result and in accordance with ASC 718, the Company reversed $ 4.9 million in previously recognized stock-based compensation related to these Performance Options during the second quarter of fiscal 2024.

2024 Long-term Incentive Program and Non-Employee Director Awards

On December 18, 2024, the Compensation Committee and Board approved certain grants of Service Options, Performance Options, Restricted Stock and Performance Shares under the 2017 Plan to certain employee directors, vice presidents of operations, vice presidents, senior vice presidents, and executive officers.

Separately, the Compensation Committee approved certain grants of Restricted Stock to certain non-employee directors of the Company.

Up to 100 % of the shares of restricted stock subject to the Performance Shares will vest, if at all, based on the achievement of certain performance goals established by the Compensation Committee related to company operational performance metrics during the 2024 Performance Share Measurement Period, for which achievement must be certified by the Compensation Committee.

The Performance Shares are eligible to vest over the 2024 Performance Share Measurement Period, subject to each respective employee’s continued employment at the Company through the last day of the 2024 Performance Share Measurement Period or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The Restricted Stock awards fully vest on the first anniversary of the grant date, subject to each respective employee’s continued employment at the Company through the vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The Service Options vest in three equal annual installments, beginning on the first anniversary of the grant date, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The option price is equal to the fair market value of the common stock on the grant date and the Service Options have a 10 -year term.

Up to 100 % of the Performance Options will vest, if at all, based on the achievement of certain performance goals established by the Compensation Committee related to company operational performance metrics during the 2024 Performance Option Measurement Period, for which achievement must be certified by the Compensation Committee.

The Performance Options typically vest in three equal annual installments, beginning on January 30, 2026, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement.

The option price is equal to the fair market value of the common stock on the grant date and the Performance Options have a 10 -year term.

Stock Options

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Expected life 4.5 years 4.6 years 5.8 years

The expected stock price volatility is based on the historical volatility of the Company’s stock for a period approximating the expected life.

The expected life represents the period of time that options are expected to be outstanding after the

The risk-free rate reflects the interest rate at grant date on zero coupon U.S.

governmental bonds having a remaining life similar to the expected option term.

Option activity for the year ended March 31, 2025 was as follows:

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Tax benefit of options exercised $ 235,631 $ 381,433 $ 120,887

$ 120,557 $ 51,103 $ 2,454,039

The total fair value of stock options vested during the years ended March 31, 2025, 2024, and 2023 were $ 2,193,533 , $ 2,466,706 and 2,602,858 , respectively.

As of March 31, 2025, total unrecognized stock-based compensation expense related to non-vested stock options amounted to approximately $ 1.7 million, which is expected to be recognized over a weighted-average period of approximately 2.3 years.

Restricted Stock

Restricted Stock and Performance Shares

During fiscal 2025, the Company granted 71,186 shares of restricted stock (which are equity classified), to certain vice presidents, senior vice presidents, executive officers, and non-employee directors with a grant date weighted average fair value of $ 111.64 per share.

During fiscal 2024, the Company granted 3,993 shares of restricted stock (which are equity classified) to certain vice presidents and senior vice presidents with a grant date weighted average fair value of $ 120.12 per share.

During fiscal 2023, the Company granted 3,250 shares of restricted stock (which are equity classified) to certain vice presidents with a grant date weighted average fair value of $ 129.85 per share.

During fiscal 2022, the Company granted 4,062 shares of restricted stock (which are equity classified) to certain non-employee directors with a grant date weighted average fair value of $ 188.38 per share.

The total fair value of restricted stock vested during the years ended March 31, 2025, 2024, and 2023 were $ 7,293,854 , $ 7,796,666 , and $ 6,721,492 , respectively.

As of March 31, 2025, there was approximately $ 5.7 million of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over the next 0.7 years based on current estimates.

3 Of the 267,947 options outstanding, 41,103 are not yet exercisable based solely on fulfilling a service condition and another 108,865 are not yet exercisable based solely on fulfilling the performance condition described further above.

3 As the $ 25.30 Performance Options performance target was not met as of March 31, 2025, 100 % of the outstanding shares associated with this performance award, or 102,925 shares, were forfeited as of March 31, 2025.

4 Of the 169,154 options outstanding, 15,703 are not yet exercisable based solely on fulfilling a service condition and another 25,500 are not yet exercisable based solely on fulfilling the performance condition associated with the Performance Options granted on December 18, 2024.

A summary of the status of the Company’s restricted stock as of March 31, 2025 and changes during the year ended March 31, 2025, are presented below:

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Stock-based compensation (reversal) related to stock options $ 607,275 $ ( 3,754,209 ) $ 2,442,309

Stock-based compensation (reversal) related to restricted stock

( 20,296,243 ) 2,071,122 6,610,526

Stock-based compensation related to restricted stock 2,071,122 6,610,526 14,109,082

Total stock-based compensation related to equity classified awards $ ( 19,688,968 ) $ ( 1,683,087 ) $ 9,052,835

4 During the second quarter of fiscal 2024, it was determined that the Performance Option performance target was no longer probable of being achieved.

As a result and in accordance with ASC 718, the Company reversed $ 4.9 million in previously recognized stock-based compensation related to these Performance Options.

5 As the $ 20.45 Performance Shares performance target was not met as of March 31, 2025, 100 % of the outstanding shares associated with this performance award, or 185,088 shares, were forfeited as of March 31, 2025.

Additionally, 34,415 of the 122,912 outstanding shares associated with the $ 16.35 Performance Shares performance target were forfeited.

(13) Acquisitions

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Acquisitions:

Number of asset purchases 1 50 50

Total acquisitions 1 50 50

Number of loan portfolios acquired through asset purchases

Purchase price $ 18,947,294 $ 1,978,815 $ 23,131,758

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In an asset purchase, no goodwill is recorded.

When the cost of an asset acquisition is less than the fair value of the net assets acquired, the benefit is allocated to nonmonetary long-lived assets acquired on a relative fair value basis.

However, any assets for which the subsequent application of GAAP would result in an immediate gain (e.g., financial assets, assets held for sale) are not allocated a portion of the cost below fair value.

During the year ended March 31, 2025, the remaining benefit was recorded as a discount on purchase, which is a component of Unearned interest, insurance and fees in the Company's Consolidated Balance Sheets, and amortized over the life of loans receivable acquired, which resulted in a $ 1.0 million discount on loans acquired in asset purchases of which $ 0.6 million was amortized to interest income.

The Company’s acquisitions include tangible assets (generally loans and furniture and equipment) and intangible assets (generally non-compete agreements, customer lists, and goodwill), both of which are recorded at their fair values, which are estimated pursuant to the processes described below.

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Management includes recent acquisition activity compared to historical activity when considering reasonable and supportable forecasts as it relates to assessing the adequacy of the allowance for expected credit losses.

The Company did not acquire any loans that would qualify as PCDs during the period.

The Company did not acquire any loans that would qualify as PCDs during the years ended March 31, 2025, 2024, and 2023.

Furniture and equipment are valued at the specific purchase price as agreed to by both parties at the time of acquisition, which management believes approximates their fair values.

6 For acquisitions of loan portfolios at a discount during the years ended March 31, 2024 and 2023, the Company recorded a $ 154.6 thousand gain before income tax of $ 41.9 thousand and a $ 5.2 million gain before income tax of $ 1.2 million, respectively, which is included as a component of Insurance and other income, net in the Consolidated Statements of Operations.

Non-compete agreements are valued at the stated amount paid to the other party for these agreements, which the Company believes approximates the fair values.

5 For the years ended March 31, 2024 and 2023, the Company recorded a $ 154.6 thousand gain, before income tax of $ 41.9 thousand, and a $ 5.2 million gain, before income tax of $ 1.2 million, respectively, on asset purchases, which are included as a component of Insurance and other income, net in the Consolidated Statements of Operations.

Because the loan portfolios were purchased at a discount and there were no other elements to the transactions that should be accounted for separately, the Company recognized a gain on the excess fair value.

As an immediate gain would be recognized on the acquired loans if the cost below fair value was allocated, it was not determined appropriate to reduce the basis of the acquired net loans receivable.

Customer lists are valued with a valuation model that utilizes the Company’s historical data to estimate the value of any acquired customer lists.

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Senior notes payable 3 262,451,475 262,451,475 223,419,132 223,419,132

There were no other significant assets or liabilities measured at fair value as of March 31, 2024 and 2023.

There were no significant assets or liabilities measured at fair value on a non-recurring basis as of March 31, 2025 and 2024.

(15) Quarterly Information (Unaudited)

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Interest expense 9,769 10,457 11,294 11,190 12,242 12,543 11,690 11,757

Income tax expense (benefit) 2,816 4,839 2,853 11,555 ( 2,162 ) 549 2,097 5,430

Net income (loss) $ 9,539 $ 16,082 $ 16,665 $ 35,058 $ ( 8,566 ) $ ( 637 ) $ 5,806 $ 24,632

Net income (loss) per common share:

Income tax expense

2,980 5,800 2,624 10,840 2,816 4,839 2,853 11,555

$ 9,947 $ 22,129 $ 13,389 $ 44,278 $ 9,539 $ 16,082 $ 16,666 $ 35,058

Net income per common share:

Basic $ 1.82 $ 4.05 $ 2.46 $ 8.33 $ 1.65 $ 2.78 $ 2.89 6.19

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(17) Subsequent Events

On May 15, 2024, the Board of Directors of the Company approved a share repurchase program authorizing the Company to repurchase up to $ 20.0 million of its outstanding common stock inclusive of any amount that remains available for repurchase under prior repurchase authorizations.

On April 25, 2025, 72 % of the shares subject to the $ 16.35 Performance Shares, or 88,497 shares, vested after certification of performance achievement by the Compensation Committee.

On April 30, 2025, the Board of Directors of the Company approved a share repurchase program authorizing the Company to repurchase up to $ 20.0 million of its outstanding common stock inclusive of any amount that remains available for repurchase under prior repurchase authorizations.

The timing and actual number of shares repurchased will depend on a variety of factors, including the stock price, corporate and regulatory requirements, available funds, alternative uses of capital, restrictions under the Revolving Credit Agreement, and other market and economic conditions.

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As described in Notes 1 and 2 to the financial statements, the Company established an allowance for credit losses of $103.3 million as of March 31, 2025, which was estimated using the Company’s current expected credit loss (CECL) model.

The Company’s CECL model estimates the allowance for credit losses for each Customer Tenure bucket using a historical migration analysis for the 12 most recent historical 12-month migration periods.

The Company’s CECL model also includes a reserve at 100% of the outstanding balance of all loans, except for TAL loans, greater than 90 days past due on a recency basis and not written off as of the reporting date, net of a calculated Rehab Rate.

Management considers whether current credit conditions might suggest a change is needed to the allowance for credit losses by monitoring trends in first pay success for new borrowers, 60-89 day delinquencies on a recency basis, FICO scores at origination, percent of loan balances that are paying and percentage of gross loans that are acquired loans as compared to metrics in the historical migration period.

The Company’s CECL model estimates the allowance for credit losses for each Customer Tenure bucket using a historical migration analysis for the twelve most recent historical twelve-month migration periods.

The Company’s CECL model also includes a reserve at 100% of the outstanding balance of all loans, except for tax advance loans, greater than 90 days past due on a recency basis and not written off as of the reporting date, net of a calculated Rehab Rate.

Management considers whether current credit conditions might suggest a change is needed to the allowance for credit losses by monitoring trends in first pay success for new borrowers, 60-89 day delinquencies on a recency basis, percent of loan balances that are paying, and percentage of gross loans that are acquired loans as compared to metrics in the historical migration period.

If management determines that historical migration rates should be adjusted to reflect expected credit losses, a qualitative adjustment is made to reflect management’s judgment regarding observable changes in recent or expected economic trends and conditions, portfolio composition, or other significant events or conditions that affect the current estimate.

Management also utilizes a reasonable and supportable forecast by comparing the most recent six-month loss curves as compared to historical loss curves to see if there are significant changes in borrower behavior that may indicate the historical migration rates should be adjusted.

Management utilized significant judgment in developing reasonable and supportable forecasts and qualitative factors.

We identified the reasonable and supportable forecasts and qualitative factors of the allowance for credit losses as a critical audit matter as auditing management’s judgments of reasonable and supportable forecasts and qualitative factors required a high degree of auditor judgment and increased extent of audit effort.

Our audit procedures related to the Company’s estimate of reasonable and supportable forecasts and qualitative factors of the allowance for credit losses, included the following, among others:

• We obtained an understanding of the relevant controls related to the allowance for credit losses as of March 31, 2024, and tested such controls for design and operating effectiveness, in particular, those controls over (a) quarterly review and approval of the appropriateness of the key assumptions of the CECL model, and (b) the quarterly management review control providing approval of the allowance for credit losses, both of which cover the Company’s estimate of reasonable and supportable forecasts and qualitative factors.

• We evaluated the reasonableness of management’s methodology, including the relevance of data inputs utilized, in determining adjustments for qualitative factors and reasonable and supportable forecasts.

• We tested the completeness and accuracy of data inputs utilized by management in determining adjustments for qualitative factors and reasonable and supportable forecasts by comparing to internal and external source data and documents.

• We evaluated the reasonableness of management’s conclusions regarding adjustments for reasonable and supportable forecasts, and qualitative factors.

Management also utilizes a reasonable and supportable forecast by comparing the most recent six-month loss curves to historical loss curves to see if there are significant changes in borrower behavior that may indicate the historical migration rates should be adjusted.

Management utilized significant judgment in developing qualitative factors and reasonable and supportable forecasts.

We identified the qualitative factors and reasonable and supportable forecasts of the allowance for credit losses as a critical audit matter, as auditing management’s judgments of qualitative factors and reasonable and supportable forecasts required a high degree of auditor judgment and increased extent of audit effort.

Our audit procedures related to the Company’s estimate of qualitative factors and reasonable and supportable forecasts of the allowance for credit losses, included the following, among others:

• We obtained an understanding of the relevant controls related to the allowance for credit losses as of March 31, 2025, and tested such controls for design and operating effectiveness, in particular, those controls over (a) quarterly review and approval of the appropriateness of the key assumptions of the CECL model, and (b) the quarterly management review control providing approval of the allowance for credit losses, both of which cover the Company’s development of qualitative factors and reasonable and supportable forecasts.

• We evaluated the reasonableness of management’s methodology, including the relevance of data inputs utilized, in developing qualitative factors and reasonable and supportable forecasts.

• We tested the completeness and accuracy of data inputs utilized by management in developing qualitative factors and reasonable and supportable forecasts by comparing to internal and external source data and documents.

• We evaluated the reasonableness of management’s conclusions regarding whether adjustments to historical migration rates were necessary for qualitative factors and reasonable and supportable forecasts.

/s/ RSM US LLP

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In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of March 31, 2024 and 2023 and the related consolidated statements of operations, shareholders’ equity and cash flows for each of the three years in the period ended March 31, 2024, and our report dated May 23, 2024 expressed an unqualified opinion.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets as of March 31, 2025 and 2024, and the related consolidated statements of operations, shareholders’ equity and cash flows for each of the three years in the period ended March 31, 2025, and the related notes to the consolidated financial statements and our report dated May 22, 2025 expressed an unqualified opinion.

Basis for Opinion

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(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the consolidated financial statements.

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

5 unchanged sentences

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-K

Item 8. Financial Statements and Supplementary Data