SLEEPING GIANT BEVERAGE COMPANY INC.

defined contribution plan covering all eligible employees. Under the plan, employees may contribute up to 90 percent of their eligible annual compensation with the Company making matching contributions on up to 5 percent of eligible employee wages. The Company recognized expense under this plan of $ 32.3 million, $ 28.9 million, and $ 25.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. Share-based employee compensation The Company reserved 2,000,000 shares of common stock for the Company to grant stock options, restricted stock, cash-settled stock appreciation rights ("SARs") and other stock-based awards to certain officers, directors and employees of the Company under the 2022 Long-Term Incentive Plan (the "2022 Plan"). The 2022 Plan is administered by the co

stricted stock. Most of the Company's non-vested restricted stock awards, subject generally to the individual's continued employment or service, are subject to a three-year graded vesting schedule. A summary of the status of non-vested restricted stock grants during the y ears ended December 31, 2025, 2024 and 2023 is presented below: Shares Weighted Average Grant Date Fair Value Per Share Non-vested at December 31, 2022 429,868 $ 109.33 Granted 567,004 93.57 Vested ( 238,020 ) 119.00 Forfeited ( 151,459 ) 94.07 Non-vested at December 31, 2023 607,393 $ 94.64 Granted 223,825 51.12 Vested ( 321,281 ) 92.24 Forfeited ( 145,203 ) 92.91 Non-vested at December 31, 2024 364,734 $ 70.73 Granted 7,672 65.45 Vested ( 172,176 ) 74.60 Forfeited ( 28,989 ) 64.73 Non-vested at December 31, 2025 171,241

er operating expenses in the Airline segment consist of insurance, crew training and travel, legal expense, gains and losses on the sale of flight equipment, and other general and administrative expenses. Other operating expenses in the Sunseeker segment consist of food and beverage cost of goods sold, contract labor, property tax, insurance, and other general and administrative expenses. (2) Other non-operating expenses in the Airline segment consist primarily of a loss on the sale in 2024 of a cost-method investment that arose from the contribution of intellectual property rights to a private company and realized income from equity method investments in all years presented. 89 Note 15 — Impairment & Sale of Sunseeker Resort In fourth quarter 2024, the Company engaged an advisor to conduc

nce of stock options to purchase up to an aggregate of 3,600,000 shares of common stock. Options may be granted for such consideration as determined by the Board of Directors. The vesting schedule and exercise price of these options are tied to the recipient’s ownership level of common stock, the terms generally allow for the reduction in exercise price upon each vesting period and the options generally expire after ten years. The Board of Directors has also authorized the issuance of options to purchase up to 100,000 shares of common stock to be issued at the direction of the Chairman. The Key Employee Equity Partnership Program (“KEEP Program”) provides for the granting of stock options to purchase up to 480,000 shares of common stock to key employees, consultants, directors and officers

gross profit per case increased and gross margin remained constant at 37.0% for both Fiscal 2026 and Fiscal 2025. Shipping and handling costs are included in selling, general and administrative expenses, the classification of which is consistent with many beverage companies. However, our gross margin may not be comparable to companies that include shipping and handling costs in cost of sales. See Note 1-Significant Accounting Policies, of Notes to the Consolidated Financial Statements. Selling, General and Administrative Expenses Selling, general and administrative expenses for Fiscal 2026 decreased $1.3 million to $207.2 million from $208.5 million for Fiscal 2025. The decrease was primarily due to a decrease in administrative and shipping and handling costs, partially offset by an incre