WELLS MANNING EITENMILLER & TAYLOR PC

47.00 399,300 6.9 $ 22.89 1 4 . Retirement Plan: The Company maintains a retirement plan for essentially all employees pursuant to Section 401(k) of the Internal Revenue Code. The Company matches a percentage of employee voluntary salary deferrals subject to limitations. The Company may also make discretionary contributions as determined annually by the Company's Board of Directors. The amount expensed under the plan was $ 471,767 and $ 462,445 for the years ended May 31, 2026 and 2025. 15. Fair Value of Financial Instruments: The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short maturity of these instruments. The fair values of short-term investments were determined as described in Note

s effective tax rate. The Company's practice is to recognize interest related to income tax matters in interest income / expense and to recognize penalties in selling, general and administrative expenses. The Company and its subsidiary file consolidated federal and state income tax returns. As of May 31, 2026, the Company had state investment tax credit carryforwards of approximately $546,000 expiring through May 2031. Results of Operations A summary of the period-to-period changes in the principal items included in the consolidated statements of income is shown below: Summary comparison of the years ended May 31, 2026 and 2025 Increase / (Decrease) Sales, net $ (4,643,000) Cost of goods sold $ (1,512,000) Research and development costs $ 332,000 Selling, general and administrative expense

ity requirements, become eligible to make salary deferral contributions on the first day of the month following one calendar month of service. Employees may be eligible to receive employer matching contributions and base contributions, after completion of one year of vesting service and satisfaction of other eligibility requirements. (c) Contributions and Vesting Each year, eligible participants may make salary deferral contributions, subject to certain limitations, from 1 % to 50 % of their certified compensation, as defined in the Plan. Salary deferral contributions are eligible to be matched by the Company after one year of service. Participants age 50 or older can make catch‑up salary deferral contributions each year in accordance with limits set by the Internal Revenue Service (IRS).

h year in accordance with limits set by the Internal Revenue Service (IRS). Catch‑up contributions are generally not eligible for employer matching contributions. Participants are fully vested in their salary deferral contributions. Employer contributions consist of two components: matching contributions and base contributions. To be eligible to receive these contributions, a participant must be employed on December 15 of the plan year, with certain exceptions. Termination of employment on or after normal retirement age, disability, and death are the three exceptions to the December 15 employment rule to be eligible for employer match and base contributions. Matching contributions are equal to 100 % of salary deferral contributions up to 6 % of participant’s eligible certified compensation

, he or she is entitled to distribution of his or her total vested account balance. The nonvested portion is forfeited and serves to reduce future employer contributions, pay Plan administrative expenses, or make corrective adjustments to participants’ accounts. Forfeitures used to offset employer contributions were $ 8,788,290 for the year ended December 31, 2025. The forfeiture account balance was $ 0 for both years ended December 31, 2025 and 2024. (g) Notes Receivable from Participants Two types of loans are available to participants under the Plan: general purpose and principal residence. General purpose loans may be obtained for periods of up to 5 years. Principal residence loans are available only to finance the purchase or construction of the participant’s principal residence and m