ENCORE MEDICAL DEVICE REPAIR

ent Plan The Company has a 401(k) Savings Plan in the U.S. that qualifies as deferred salary arrangements under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. The Company also has defined contribution plans for eligible employees in other countries. The Company recognized expense of $ 8.7 million, $ 8.3 million, and $ 6.8 million for the years ended December 31, 2025, 2024, and 2023, respectively, in salaries and employee benefits in its consolidated statements of operations. Guarantees Encore’s Certificate of Incorporation and indemnification agreements between the Company and its officers and directors provide that the Company will indemnify and hold harml

% Operating expenses Salaries and employee benefits 458,233 25.9 % 422,910 32.1 % 391,532 32.0 % Cost of legal collections 315,451 17.8 % 259,298 19.7 % 224,252 18.3 % General and administrative expenses 165,948 9.4 % 163,847 12.4 % 144,862 11.8 % Other operating expenses 144,476 8.2 % 130,802 9.9 % 111,179 9.1 % Collection agency commissions 29,287 1.7 % 30,596 2.3 % 35,657 2.9 % Depreciation and amortization 28,760 1.6 % 32,434 2.5 % 41,737 3.4 % Goodwill impairment — — % 100,600 7.6 % 238,200 19.5 % Impairment of assets — — % 18,544 1.4 % 18,726 1.5 % Total operating expenses 1,142,155 64.6 % 1,159,031 87.9 % 1,206,145 98.5 % Income from operations 626,647 35.4 % 157,330 12.1 % 16,535 1.5 % Other expense Interest expense (293,910) (16.6) % (252,545) (19.2) % (201,877) (16.5) % Loss on e