| Related Party Transactions |
| 12. Related Party Transactions | | Certain of the Company’s subsidiaries lease warehouse and office
space from one or more of the principals (or former principals) of the Company or its subsidiaries. These leases include the following: |
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| | | On October 10, 2016, the Company’s wholly-owned subsidiary, Western
State Design, entered into a lease agreement pursuant to which it leases 17,600 square feet of warehouse and office space from an affiliate
of Dennis Mack, a director and employee of the Company, and Tom Marks, Executive Vice President, Business Development and President of
the West Region of the Company. The lease had an initial term of five years and provides for two successive three-year renewal terms at
the option of the Company. The Company exercised its option to renew the lease for the first three-year renewal term, which commenced
in October 2021, and the second three-year renewal term, which commenced in October 2024. Base rent for the first renewal term was $19,000
per month. Base rent for the second renewal term is $21,000 per month. In addition to base rent, Western State Design is responsible under
the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance. Payments under this lease totaled approximately
$244,000 and $252,000 during fiscal 2025 and fiscal 2024, respectively. |
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| | | On November 1, 2018, the Company’s wholly-owned subsidiary, AAdvantage
Laundry Systems, entered into a lease agreement pursuant to which it leases warehouse and office space from an affiliate of Mike Zuffinetti,
former Chief Executive Officer of AAdvantage. Pursuant to the lease agreement, on January 1, 2019, the lease expanded to cover additional
warehouse space. The lease had an initial term of five years and provides for two successive three-year renewal terms at the option
of the Company. The Company exercised its option to renew the lease for the first three-year renewal term, which commenced in November
2023. Base rent for the initial term was $36,000 per month. Base rent for the first renewal term is $40,000 per month. In addition to
base rent, AAdvantage is responsible under the lease for costs related to real estate taxes, utilities, maintenance, repairs and insurance.
Payments under this lease totaled approximately $480,000 and $464,000 during fiscal 2025 and fiscal 2024, respectively. |
| | | On November 3, 2020, the Company’s wholly-owned subsidiary, Yankee
Equipment Systems, entered into a lease agreement pursuant to which it leases a total of 12,500 square feet of warehouse and office space
from an affiliate of Peter Limoncelli, President of Yankee Equipment Systems. The lease had an initial term of three years and |
| | | provides
for three successive three-year renewal terms at the option of the Company. The Company exercised its option to renew this lease for the
first three-year renewal term, which commenced in November 2023. Base rent for the initial term was $11,000 per month. Base rent for the
first year of the renewal term was $12,500 per month. Base rent for the second year of the renewal term is $12,750 per month. In addition
to base rent, Yankee Equipment Systems is responsible under the lease for costs related to real estate taxes, utilities, maintenance,
repairs and insurance. Payments under this lease totaled approximately $152,000 and $150,000 during fiscal 2025 and fiscal 2024, respectively. |
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