Note 12 - Leases

6 Months Ended

Jun. 30, 2026

Lessee, Finance and Operating Leases [Text Block]

Note 12 Leases

As of June 30, 2026, the balance of our right-of-use (“ROU”) assets was $5.0 million, net, and total lease liabilities of $5.1 million (consisting of $1.5 million current and $3.6 million non-current), included in current portion, lease liability and lease liability net of current portion.

In connection with the acquisitions of Carolina Stone ( August 22, 2025) and Fraser Canyon Holdings/CSI ( December 1, 2025), the Company assumed operating leases for distribution, showroom, and warehouse facilities. The Carolina Stone leases include: (i) approximately 13,500 square feet at 10306 Globe Road, Morrisville, NC, extended through May 31, 2027, at approximately $154,560 annually, and (ii) approximately 28,000 square feet at 901 Tulip Drive, Gastonia, NC, through June 30, 2029, at a starting annual base rent of $130,200 escalating at 3.5% annually. CSD entered into five new lease agreements, including the 401 North premises operating lease effective July 1, 2026.

Moreover, the CSI leases include: (i) approximately 31,418 square feet at 27524–51A Avenue, Langley, BC, through July 31, 2030, at approximately CAD $627,024 annually, and (ii) approximately 30,000 square feet at 45 Fenmar Drive, North York, ON, through November 30, 2026, with a five-year extension option not yet exercised. Operating lease ROU assets of $906.0 thousand and corresponding lease liabilities were recognized at fair value upon the Carolina Stone acquisition date (see Note 4). Fraser Canyon/CSI ROU assets and lease liabilities are included in the purchase price allocation and totaled approximately $2.1 million.

The maturity of our lease liabilities as of June 30, 2026 is as follows in (“000’s”):

Year	*Finance*			*Operating*
2027	$	260		$	1,481
2028		168			1,003
2029		73			884
2030		37			742
2031		21			296
Thereafter		—			607
Total undiscounted Lease Payments		559			5,013
Less: Present value discount		(39	)		(465	)
Total Lease Liability	$	520		$	4,548

Lease expense recognized on our leases for the three and six months ended June 30, 2026 and 2025 is as follows in (“000’s”):

	*Six Months Ended*		*Six Months Ended*		*Three months Ended*		*Three months Ended*
	*June 30,*		*June 30,*		*June 30,*		*June 30,*
	*2026*		*2025*		*2026*		*2025*
Finance leases
Amortization expense	$	133	$	72	$	69	$	41
Interest expense		11		6		6		3
Operating leases
Straight-line rent expense		893		395		428		197
Total lease expense	$	1,037	$	473	$	503	$	241

The following summarizes additional information related to our leases for the six months ended June 30, 2026 is as follows in (“000’s”):

	*Six Months Ended*						*Six Months Ended*
	*June 30, 2026*						*June 30, 2025*
	*Finance*			*Operating*			*Finance*			*Operating*
Weighted-average remaining lease terms (years)		2.7			5.1			2.3			5.7
Weighted-average discount rate		5.44	%		4.02	%		3.51	%		3.47	%
ROU assets obtained in exchange for new lease liabilities	$	210		$	356		$	180		$	1,395