15. Subsequent Events

From October 2025 through March 2026, the Company and FGI Worldwide, LLC (“FGI”) entered into multiple forbearance agreements and amendments to the Credit Agreement, which temporarily waived existing covenant defaults and imposed additional operational and reporting requirements while the Company pursued strategic and financing alternatives. On March 17, 2026, the Company repaid in full and extinguished its revolving credit facility with FGI Worldwide, LLC using proceeds from a new senior secured revolving credit facility. Upon repayment, the FGI Credit Agreement was terminated and the Company was released from all remaining obligations.

As a result of the extinguishment, the Company recognized a loss on extinguishment of debt of approximately $0.4M, which primarily consisted of the write-off of an early termination fee of $225,000 and unamortized deferred financing costs of $136,000.

 On March 17, 2026, the Company entered into a $12.5 million senior secured revolving credit facility with Altriarch Holdings SPV, LLC and repaid in full its prior $15.0 million credit agreement with FGI Worldwide, LLC. The new facility matures in 2029 and is subject to customary terms and conditions. See Note 9, Debt, for additional information.

In accordance with an agreement with S.C.E. Partners (“SCE”) dated May 15, 2023 and amended on July 15, 2024, the Company issued an additional 49,998 common shares to SCE on July 15, 2025 and recorded stock-based compensation expense of less than $0.1 million in general and administrative expense.

The Company has evaluated all subsequent events through the date these financial statements were issued. Except for the events described above, no other material subsequent events requiring disclosure or adjustment were identified.