Note 15 – Insurance Recovery

During the three and nine months ended January 31, 2026, the Company recognized an insurance recovery of $500,000 related to reimbursement of legal defense costs incurred in connection with ongoing investigations by the U.S. Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”. These matters relate to subpoenas and testimony requests issued to the Company and certain current and former officers and employees.

The reimbursement was received under the Company’s management liability insurance policy covering the policy period June 23, 2023 through June 23, 2024. Under the terms of the policy, the Company is responsible for a retention of $150,000, after which the insurer agreed to reimburse certain defense costs, subject to a $500,000 aggregate sublimit applicable to these matters. During the nine months ended January 31, 2026, the insurer approved payment of the $500,000 aggregate sublimit for allowable defense costs incurred.

The Company recorded the $500,000 reimbursement as insurance recovery within other income in the condensed consolidated statements of operations for the three and nine months ended January 31, 2026. The SEC and FINRA investigations remain ongoing, and the Company continues to cooperate with the respective authorities.