On April 1, 2021, Whitmore Manufacturing, LLC (“Whitmore”), a wholly-owned subsidiary of CSW, completed the formation of the joint venture (the “Whitmore JV”) with Pennzoil-Quaker State Company dba SOPUS Products, a wholly-owned subsidiary of Shell Oil Company that comprises Shell’s U.S. lubricants business.

The Whitmore JV is deemed to be a VIE as the equity investors at risk, as a group, lack the characteristics of a controlling financial interest. The major factor that led to the conclusion that the Company is the primary beneficiary of this VIE is that Whitmore has the power to direct the most significant activities due to its ability to direct the manufacturing decisions of the Whitmore JV. Whitmore JV’s total net assets are presented below (in thousands):


	June 30, 2026		March 31, 2026
Cash	$	4,495	$	4,628
Accounts receivable, net	8,526		9,417
Inventories, net	4,909		4,997
Prepaid expenses and other current assets	2,485		2,033
Property, plant and equipment, net	13,886		14,228
Intangible assets, net	3,847		4,049
Other assets	676		725
Total assets	$	38,824	$	40,077

Accounts payable	$	6,380	$	7,250
Accrued and other current liabilities	1,990		2,247
Other long-term liabilities	717		786
Total liabilities	$	9,087	$	10,284

The Whitmore JV’s LLC Agreement contains a put option that gives either member the right to sell its 50% equity interest in the Whitmore JV to the other member at a dollar amount equivalent to 90% of the initiating member's equity interest determined based on the fair market value of the Whitmore JV’s net assets. This put option can be exercised, at either member’s discretion, by providing written notice to the other member during the month of July 2024 and every two years thereafter. No put option notice was provided by either member as of the date of this filing. This redeemable noncontrolling interest is recorded at the higher of the redemption value or carrying value each reporting period. Changes in redeemable noncontrolling interest for the three-month period ended June 30, 2026 were as follows (in thousands):


	June 30, 2026		June 30, 2025
Balance at beginning of the fiscal year	$	18,989	$	20,187

Net income attributable to redeemable noncontrolling interest	21		246



Ending balance	$	19,010	$	20,433